Senate Bill 996 aims to regulate online payment systems in Tennessee by adding a new section to the Tennessee Code Annotated, specifically Title 47, Chapter 18. The bill defines "online payment system" as any online or mobile platform that facilitates currency exchange over the internet, excluding systems provided by state or national banks, savings and loan associations, or credit unions. A key provision of the bill mandates that these online payment systems must provide users with a ninety-day written notice before freezing their funds. Additionally, any violation of this requirement is classified as an unfair or deceptive act under existing law.

The bill also amends Section 47-18-104(b) by including violations of the new section 47-18-135 as a specific offense. This legislative change is set to take effect on July 1, 2023, and will apply to any contracts or agreements that are entered into, amended, or renewed after that date.

Statutes affected:
Introduced: 47-18-104(b), 47-18-104