Bill H.648 proposes comprehensive amendments to Vermont's banking, financial services, insurance, and securities laws, aiming to modernize the regulatory framework and enhance consumer protections. Key changes include the requirement for consumer litigation funding companies to obtain a license instead of mere registration, along with a new fee structure and an updated application process that emphasizes financial responsibility. The bill also introduces provisions for the change of control among licensees, mandates automatic expiration of licenses for mortgage loan originators and consumer litigation funding companies if renewal fees are unpaid by December 1, and enhances confidentiality protections for information obtained during regulatory examinations.

Additionally, the bill clarifies definitions related to money transmission and virtual currency operations, establishing new terms such as "virtual-currency kiosk" and outlining the responsibilities of licensees in this area. It repeals the previous classification of virtual-currency business activity as money transmission, thereby distinguishing it as a separate category. Other amendments include updates to the governance structure of credit unions, modifications to the obligations of borrowers, and enhancements to the criteria for exempt transactions in securities. The bill also introduces the Insurance Regulatory and Supervision Fund to support the financial administration of the Commissioner of Financial Regulation and establishes penalties for violations of the new provisions. Overall, H.648 seeks to strengthen accountability and transparency within Vermont's financial services industry.

Statutes affected:
As Introduced: 8-2102, 8-2103, 8-2107, 8-2109, 8-2110, 8-2117, 8-2252, 8-2260, 8-2503, 8-2506, 8-2507, 8-2519, 8-2573, 8-2571, 8-10101, 8-10201, 8-10202, 8-10203, 8-10204, 8-10205, 8-10206, 8-10301, 8-10402, 8-10403, 8-10404, 8-10405, 8-10504, 8-10505, 8-10601, 8-10701, 8-10702, 8-10703, 8-10704, 8-11101, 8-12201, 8-13402, 8-14301, 8-30101, 8-31304, 8-32204, 8-32301, 8-34101, 9-201, 8-3441, 8-3561, 8-3811, 8-4724, 9-5202, 9-5302, 9-5305, 9-5602, 9-5603(b)(2)(C), 9-5603, 9-5603(b), 9-5604(e), 9-5604, 9-5616, 8-19, 9-5411