House Bill 1011 aims to regulate online payment systems in Tennessee by introducing new provisions to the Tennessee Code Annotated. The bill defines "online payment system" and "user," clarifying that the term excludes systems provided by state or national banks, savings and loan associations, or credit unions. It establishes that operators of online payment systems cannot freeze a user's funds without first providing written notice to all users involved in the transaction, unless there is a reasonable belief of financial exploitation, fraud, or other legal violations. In such cases, notice must be given within thirty days of the funds being frozen, adhering to federal regulations.

Additionally, the bill amends Section 47-18-104(b) to include violations of the new section 47-18-136 as unfair or deceptive acts, subject to penalties outlined in the existing law. The act is set to take effect on July 1, 2025, and will apply to contracts or agreements entered into, amended, or renewed on or after that date.

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