REMARKS
Introduction of Intro 1049 on pre-authorization holds for gas purchases
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Council Member Julie Menin reads an opening statement from Majority Whip Brooks Powers introducing Intro 1049, which addresses pre-authorization holds at gas stations. The bill aims to require gas stations to disclose these holds before transactions occur, protecting consumers from unexpected fund inaccessibility.
- Intro 1049 targets unfair practices in gas purchases using credit, debit, or benefit cards
- The bill would require clear disclosure of pre-authorization holds before transactions
- Questions are posed about DCWP's willingness to include specific language in notices through the rulemaking process
Julie Menin
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I'm now gonna read an opening statement from majority whip Brooks Powers who has joined us on Zoom, and then I'm gonna ask a couple questions that she has submitted.
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Thank you for holding this important hearing and for the opportunity to discuss my legislation, intro ten four nine.
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This bill addresses an unfair and often costly practice that too many consumers experience when purchasing gas.
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When a driver pays at the pump with a credit, debit, or a benefit card, gas stations frequently place a pre authorization hold, sometimes exceeding a hundred dollars on their account.
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While this practice may protect merchants, it can have serious unintended consequences for consumers.
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For those using benefit cards, these holds can result in the permanent loss of funds if they are not released before the benefits expire.
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Last year, we heard from a constituent who used their benefit card to purchase just $20 of gas only to have a hundred and $50 held for three days.
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By the time the hold was lifted, the month had ended, and their benefits expired.
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That money was gone.
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No one should lose access to essential resources due to lack of transparency in payment processing.
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Intro ten forty nine would require gas stations to clearly disclose these pre authorization holds before a transaction occurs.
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Consumers deserve to know when their funds might be temporarily inaccessible and this bill ensures that transparency.
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I look forward to hearing from our panelists today and working with my colleagues to advance this critical consumer protection.
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And now I'm gonna go on to read the questions that majority whip Brooks Powers has.
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The first one is, as my bill intro ten forty nine is currently drafted, DCWP would be able to determine what language is included in the notice posted in gas stations.
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One important element of this notice is to ensure consumers know that they can speak to a gas station attendant to avoid paying a preauthorization hold.
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Would DCWP be willing to include the specific language through the rulemaking process if intro ten forty nine is passed?