House Bill 1011 aims to regulate online payment systems in Tennessee by introducing a new section to the Tennessee Code Annotated, specifically Title 47, Chapter 18. The bill defines "online payment system" and "user," establishing that operators of these systems cannot freeze a user's funds without prior written notice, except in cases where there is reasonable belief of financial exploitation, fraud, or other legal violations. In such cases, notice must be provided within thirty days of the funds being frozen, adhering to federal regulations. Additionally, any violation of this new section will be considered an unfair or deceptive act under existing law.

The bill also amends Section 47-18-104(b) to include violations of the newly established section 47-18-136 as a punishable offense. 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