Committee hears bill to let parents close minors’ peer‑to‑peer accounts amid trafficking concerns

State Representative Liz Linehan urged the Banking Committee on Feb. 27 to give parents a legal path to close and access data from money‑sharing applications opened for children without parental knowledge.

The bill before the committee, Senate Bill 1338, would apply the state’s social‑media account‑closure model to peer‑to‑peer payment services such as Cash App, Venmo and Zelle, and would define transactional records and account‑opening identity as data belonging to the minor and the minor’s parent. Linehan said the measure is intended as a fail‑safe against child grooming and sex trafficking after she described a Connecticut case in which a 15‑year‑old’s account was allegedly opened and sponsored by an unrelated adult and customer‑service staff told the parent they could not release identifying information without a warrant.

Why it matters: Committee members and advocates described the bill as a narrow consumer‑protection change with child‑safety consequences. Linehan said the proposed language would allow parents to close accounts opened for their children and would require money‑sharing apps to treat account transaction histories and the identity of the account opener as data the minor and parent may access.

What speakers told the committee: Linehan said the bill mirrors existing social‑media laws in Connecticut that permit parents to close an account opened for their child and asked the committee to adopt substitute language to cover children under 18 (the draft bill mixed ages of 15 and 16). She also suggested requiring a notarized attestation when an adult sponsors a child’s account and asked that apps be required to provide a transaction itemization and the identity of the person who opened the account.

Committee members asked about law‑enforcement interactions, practical mechanics and the handling of funds. Linehan said the change would let parents access account data and close accounts without seeking a warrant; if an investigation follows, law enforcement could then obtain records via judicial process. On funds, she said the bill does not currently change internal platform rules about how balances are treated; those matters would remain governed by each platform’s terms of service unless changed by future rule or contract.

Concerns and next steps: Senators and representatives on the panel said the concept requires legal alignment with existing federal and state law governing bank accounts, custodial accounts and data access. Members repeatedly invited Linehan to work with staff and industry counsel to refine definitions, proof‑of‑guardianship mechanics and cross‑jurisdictional effects. Linehan acknowledged the concern and said she will work with the committee; she cited white‑paper research from Polaris Project and the National Human Trafficking Hotline included with her written testimony.

Quotes: “This bill is more than a bill about banking data and privacy — it is also a needed fail‑safe for child trafficking,” Representative Liz Linehan said during her opening statement. “The data contained within that app belongs to the sponsored person, the minor child, or their parent.”

Ending: Committee members said they would continue to ask technical questions about proof requirements, parental attestation procedures and how platforms handle balances, and requested substitute language and counsel input before moving the bill. No committee vote took place at the hearing.