House Bill 846, also known as Senate Bill 996, amends Tennessee Code Annotated to introduce regulations for online payment systems. A new section, 47-18-135, defines "online payment system" as any online or mobile platform facilitating currency exchange, excluding those provided by state or national banks, savings and loan associations, or credit unions. The bill mandates that these systems cannot freeze a user's funds without giving a ninety-day written notice of intent. Violations of this provision are classified as unfair or deceptive acts under existing law, specifically referenced in Section 47-18-104.

Additionally, the bill amends Section 47-18-104(b) to include violations of the new section 47-18-135 as a punishable offense. The act 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