HB945: HB945 Banking and finance; holds on accounts of eligible adults for suspected financial exploitation; provide

26 LC 62 0310S/AP House Bill 945 (AS PASSED HOUSE AND SENATE) By: Representatives Williamson of the 112th, Williams of the 148th, and Chastain of the 7th A BILL TO BE ENTITLED AN ACT To amend Titles 7 and 30 of the Official Code of Georgia Annotated, relating to banking and1 finance and handicapped persons, respectively, so as to provide for holds on accounts of2 eligible adults for suspected financial exploitation; to provide for procedures for placing and3 lifting such holds; to provide for notice to the account holder or trusted contact of the hold;4 to provide for the shortening or extension of a hold; to provid e for training to place holds;5 to require financial institutions to retain records of holds; t o provide for administrative,6 criminal, and civil immunity; to prohibit entities not registered as a merchant acquirer limited7 purpose bank from identifying as such; to provide for the appli cability of certain chapters8 relative to certain entities; to provide for procedures to notify the department of mergers; to9 provide for department objections to mergers; to no longer require independent credit reports10 to be obtained from a consumer reporting agency as defined in t he federal Fair Credit11 Reporting Act; to provide for regulation of virtual currency kiosk owners and operators; to12 require virtual currency kiosk operators to provide disclosures to customers; to provide13 procedures for refunds of virtual currency transactions; to pro vide for fees; to provide for14 daily transaction limits; to provide for a department created formula for bona fide discount15 points; to provide for licensing exemptions for certain financial institutions whose deposits16 are federally insured; to provide for procedures for merchant acquirer limited purpose banks17 to amend their articles; to provide for department investigations related to litigation finance18 H. B. 945 - 1 - 26 LC 62 0310S/AP applicants; to provide for renewal of litigation finance registration; to provide for procedures19 for cease and desist orders for unregistered persons providing litigation finance; to provide20 for judicial hearings to review department decisions regarding litigation finance; to provide21 for registrant disclosures; to provide for access to certain records of a disabled adult or elder22 person; to provide for definitions; to make conforming changes; to provide for construction;23 to provide for related matters; to repeal conflicting laws; and for other purposes.24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:25 SECTION 1.26 Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, is27 amended in Article 1 of Chapter 1, relating to Department of Ba nking and Finance and28 financial institutions generally, by revising paragraph (21) of Code Section 7-1-4, relating29 to definitions, and adding new paragraphs to read as follows:30 "(17.1) 'Disabled adult' means a natural person 18 years of age or older who:31 (A) Is mentally or physically incapacitated as defined in Code Section 16-5-100;32 (B) Has Alzheimer's disease as defined in Code Section 16-5-100; or33 (C) Has dementia as defined in Code Section 16-5-100.34 (17.2) 'Elderly adult' means a natural person 65 years of age or older.35 (17.3) 'Eligible adult' means a disabled adult or an elderly adult."36 "(20.1) 'Financial exploitation' means the wrongful or unauthorized taking, withholding,37 appropriation, or use of money, assets, or property of an eligi ble adult; or any act or38 omission by a person, including through the use of a power of attorney, guardianship, or39 conservatorship of an eligible adult, with the intent to:40 (A) Obtain control over an eligible adult's money, assets, or property through41 deception, intimidation, or undue influence to deprive the elig ible adult of the42 ownership, use, benefit, or possession of such money, assets, or property; or43 H. B. 945 - 2 - 26 LC 62 0310S/AP (B) Divert the eligible adult's money, assets, or property to deprive the eligible adult44 of the ownership, use, benefit, or possession of such money, assets, or property.45 (21) 'Financial institution' means:46 (A) A bank;47 (B) A trust company;48 (C) Reserved;49 (D) A credit union;50 (E) A corporation licensed to engage in the business of money transmission in this state51 on April 1, 1975, or so licensed pursuant to Article 4 of this chapter;52 (F) Business development corporations existing on April 1, 197 5, pursuant to the53 former 'Georgia Business Development Corporation Act of 1972,' approved54 April 3, 1972 (Ga. L. 1972, p. 798), or organized pursuant to Article 6 of this chapter;55 (G) An international bank agency doing business in this state on April 1, 1975, or56 pursuant to the former 'International Bank Agency Act,' approved April 6, 1972 (Ga.57 L. 1972, p. 1140), or authorized to do business in this state pursuant to Article 5 of this58 chapter Reserved;59 (H) In addition, as the context requires, a national bank, savings and loan association,60 or federal credit union for the purpose of the following provisions:61 (i) Code Section 7-1-2, relating to findings of the General Assembly;62 (ii) Code Section 7-1-8, relating to supplementary principles of law applicability of63 common law;64 (iii) Code Section 7-1-37, relating to restrictions on officials and personnel prohibited65 transactions for department officials and personnel;66 (iv) Code Section 7-1-70, relating to disclosure of information;67 (v) Code Section 7-1-90, relating to judicial review of department actions;68 (vi) Code Sections 7-1-111 and 7-1-112, relating to emergency closings and business69 restrictions, respectively;70 H. B. 945 - 3 - 26 LC 62 0310S/AP (vii) Paragraph (3) of subsection (a) of Code Section 7-1-394, relating to criteria to71 be considered in approving new banks;72 (viii) Code Section 7-1-840, relating to criminal prosecutions; and73 (ix) Code Section 7-1-841, relating to application of Title 16 provisions;74 (I) A bank holding company as defined in Code Section 7-1-605 for the purposes of75 Code Sections 7-1-61, 7-1-71, and 7-1-91;76 (J) Banks chartered by states other than Georgia for the purposes of paragraph (10) of77 Code Section 7-1-261, relating to agency relationships;78 (K) Federal credit unions for the purposes of Part 6 of Article 2 of this chapter, relating79 to deposits, safe-deposit agreements, and money received for tr ansmission, and80 Article 8 of this chapter, relating to multiple-party accounts; and81 (L) Banks and credit unions chartered by states other than Geo rgia, national banks,82 federal credit unions, and federal savings and loan association s for the purposes of83 Part 15 of this article and paragraph (1) of Code Section 7-1-650, provided that such84 institutions have federal deposit insurance."85 "(41)(A) 'Trusted contact' means a natural person 18 years of a ge or older who the86 account owner has expressly identified and recorded in a financial institution's books87 and records as the person who may be contacted about either the account or the account88 owner to:89 (i) Address possible financial exploitation or to confirm the specifics of the account90 owner's current contact information or health status;91 (ii) Determine the identity of any conservator, executor, trus tee, or individual or92 entity granted power of attorney over the account holder; or93 (iii) Address any other concern reasonably related to the admi nistration of the94 account.95 (B) Such term may include a joint account owner or an individu al or entity who has96 been granted a power of attorney."97 H. B. 945 - 4 - 26 LC 62 0310S/AP SECTION 2.98 Said title is further amended in said article by adding a new part to read as follows:99 "Part 15100 7-1-239.11.101 (a) A financial institution may permit any customer or member of the financial institution102 who is an eligible adult to designate, upon each account owned wholly or partially by such103 eligible adult, at least one trusted contact in addition to a c o-owner, beneficiary, or104 fiduciary on the account.105 (b) For each such designation, the eligible adult shall provide the trusted contact's name,106 mailing address, and any other contact information that the fin ancial institution may use107 to contact the trusted contact.108 (c) A financial institution may permit a customer or member to designate such trusted109 contact prior to the customer or member becoming an eligible ad ult but may not contact110 such trusted contact until the customer or member becomes an eligible adult.111 (d) The financial institution shall maintain such trusted contact in a record associated with112 each account to which the designation applies.113 (e) A financial institution may establish reasonable procedures to confirm the identity of114 the trusted contact.115 (f) A financial institution shall not require a person designa ted as a trusted contact to116 consent as a precondition of being recorded as a trusted contact on any account.117 (g) Absent a requirement in the account agreement to the contr ary, when contacting a118 trusted contact pursuant to this part, the financial institution may choose to only disclose119 the fact that financial exploitation is suspected.120 H. B. 945 - 5 - 26 LC 62 0310S/AP 7-1-239.12.121 (a) If a financial institution has reasonable cause to suspect that a transaction may involve,122 facilitate, result in, or contribute to financial exploitation, the financial institution may but123 is not required to place a hold on the execution of a financial transaction on an account:124 (1) Of an eligible adult;125 (2) On which the eligible adult is a beneficiary; or126 (3) Of a person suspected of perpetrating the financial exploitation.127 (b) A financial institution may place a hold on the execution of a financial transaction as128 described in subsection (a) of this Code section if the Department of Human Services or129 a law enforcement agency provides information to the financial institution demonstrating130 reasonable cause to suspect that a transaction may involve, facilitate, result in, or contribute131 to financial exploitation.132 7-1-239.13.133 A financial institution that places a hold on an account pursua nt to Code134 Section 7-1-239.12 shall:135 (1) Notify in writing all parties authorized to transact business on the account and any136 trusted contact on the account no later than three business days after the date the hold is137 placed, unless the financial institution reasonably believes th a t t h e s e p e r s o n s h a v e138 engaged in, are engaging in, have attempted to engage in, or will attempt to engage in the139 suspected financial exploitation of the eligible adult. Such n otice may be provided140 electronically and shall include any reason for a delay; and141 (2) Initiate a review of the facts and circumstances that caused the financial institution142 to suspect financial exploitation.143 H. B. 945 - 6 - 26 LC 62 0310S/AP 7-1-239.14.144 (a) Any hold placed on any account pursuant to this part expires on the fifteenth business145 day after the date the hold was placed.146 (b) The financial institution may extend the hold for up to an additional 15 business days147 if the financial institution's review of the available facts or circumstances continues to148 support the reasonable belief that a transaction may involve, f acilitate, result in, or149 contribute to financial exploitation.150 (c) The length of such hold may be shortened or extended at an y time by any court of151 competent jurisdiction.152 (d) Nothing in this Code section prevents a financial institution from terminating a hold153 after communication with parties authorized to transact business on the account or trusted154 contacts or after the review of available facts and circumstances.155 7-1-239.15.156 Before placing a hold in accordance with this part, a financial institution shall:157 (1) Develop training policies or programs reasonably designed to educate employees158 who perform or approve transactions on issues pertaining to financial exploitation;159 (2) Conduct such training policies or programs for employees a nd maintain a written160 record of all such training; and161 (3) Develop, maintain, and enforce written procedures regardin g the manner in which162 suspected financial exploitation is reviewed internally.163 7-1-239.16.164 (a) A financial institution shall create and maintain a record of all holds placed pursuant165 to this part.166 (b) For each hold, such records shall include the:167 (1) Account holder's information;168 H. B. 945 - 7 - 26 LC 62 0310S/AP (2) Date the hold was first placed;169 (3) Facts and circumstances that caused the employee to suspect financial exploitation;170 and171 (4) Resolution of the hold.172 7-1-239.17.173 (a) Absent a reasonable belief of financial exploitation, this part does not otherwise alter174 a financial institution's obligations to all parties authorized to transact business on an175 account.176 (b) When a financial institution exercises its discretion to p lace a hold on a transaction177 pursuant to this part, the payment order for the transaction shall not be deemed as received178 until the financial institution has removed the hold and the transaction has been submitted179 for processing.180 7-1-239.18.181 (a) A financial institution acting in good faith and exercisin g reasonable care to comply182 with this part is immune from any administrative, criminal, or civil liability that might183 otherwise arise from the financial institution's action, inacti on, delay in a disbursement,184 hold, or other transaction in accordance with this part. This immunity from liability185 extends to the officers, directors, and employees of the financial institution.186 (b) Absent the financial institution's employees having actual knowledge of financial187 exploitation and acting with malicious purpose, the financial i nstitution and its officers,188 directors, and employees are immune from administrative, criminal, and civil liability for189 failure to exercise its discretion to place a hold under this part.190 (c) This Code section does not alter, extend, supersede, or di minish any immunity191 otherwise granted to financial institutions.192 H. B. 945 - 8 - 26 LC 62 0310S/AP 7-1-239.19.193 This part does not create new rights or impose new obligations or new duties on a financial194 institution under other applicable law."195 SECTION 3.196 Said title is further amended in Article 2 of Chapter 1, relating to banks and trust companies,197 by revising paragraph (1) of subsection (c) of Code Section 7-1-243, relating to restrictions198 on banking and trust nomenclature, and adding a new subsection to read as follows:199 "(a.2) Except as provided in subsection (c) of this Code section, no person or corporation,200 except a merchant acquirer limited purpose bank as defined in Code Section 7-9-2, shall201 use the term 'MALPB' or any other similar term indicating that the business done is that of202 a merchant acquirer limited purpose bank on any sign at its place of business or elsewhere,203 or on any of its letterheads, blank checks, blank notes, receip ts, certificates, circulars,204 advertisements, or any other written or printed matter."205 "(1) Prevent the use of the words terms 'banks,' 'banker,' 'banking,' 'banker's,' 'trust,'206 'MALPB,' or any similar word term in a context clearly not purporting to refer to a207 banking or a trust business or to a business primarily engaged in merchant acquiring208 activities as defined in Code Section 7-9-2, the lending of money, underwriting or sale209 of securities, acting as a financial planner, financial service provider, investment or trust210 adviser, or acting as a loan broker;"211 SECTION 4.212 Said title is further amended in said article by adding a new Code section to read as follows:213 "7-1-390.2.214 (a) To the extent the provisions of Chapter 2 of Title 14 are consistent with and not in215 conflict with the other provisions of this chapter and the rule s and regulations of the216 H. B. 945 - 9 - 26 LC 62 0310S/AP department, such provisions shall apply to banks and trust comp anies chartered by the217 department pursuant to this chapter and not organized as limited liability companies.218 (b) To the extent the provisions of Chapter 11 of Title 14 are consistent with and not in219 conflict with the other provisions of this chapter and the rule s and regulations of the220 department, such provisions shall apply to banks and trust comp anies chartered by the221 department pursuant to this chapter and organized as limited liability companies."222 SECTION 5.223 Said title is further amended in said article by revising subse ctions (b) and (c) of Code224 Section 7-1-534, relating to approval or disapproval by department and resulting bank or trust225 company not chartered by department, as follows:226 "(b) Except as provided in subsection (c) of this Code section, within Within 90 days after227 receipt of the articles of merger, share exchange, or consolidation, the notice of merger or228 share exchange, merger, share exchange, or consolidation, and the filings required by Code229 Section 7-1-533, or within an additional period of not more tha n 30 days after an230 amendment to the application is received within the initial 90 day period, the department231 shall, in its discretion, approve or disapprove the articles on the basis of its investigation232 and the criteria set forth in subsection (a) of this Code section. Except as provided in Code233 Section 7-1-535, the department shall give the Secretary of Sta te written notice of its234 approval with a copy of the articles of merger, share exchange, or consolidation and a copy235 of the notice of merger or share exchange merger, share exchange, or consolidation236 attached. The department shall also give the parties to the pl an written notice of its237 decision and, in the event of disapproval, a statement in gener al of the reasons for its238 decision. The decision of the department shall be conclusive, except that it may be subject239 to judicial review as provided in Code Section 7-1-90.240 (c)(1) If a merger or consolidation would result in a bank or trust company that would not241 be chartered by the department, prior to the consummation of the merger or consolidation,242 H. B. 945 - 10 - 26 LC 62 0310S/AP the bank or trust company shall: notify the department upon filing an application with the243 appropriate federal or state financial regulator. The notifica tion requirements of this244 subsection shall be satisfied by furnishing the department with a copy of the application or245 applications filed with the applicable bank supervisory agencies seeking approval for the246 proposed transaction and such other information as the department requests. The parties247 to such transaction shall also file with the department a certi ficate of approval of the248 acquisition by the appropriate supervisory agencies prior to co nsummation of the249 transaction. The department may, for good cause shown, object to the transaction by letter250 to the proposed resulting bank or trust company, the Georgia bank or trust company, and251 to the appropriate federal or state financial regulator before consummation of the252 transaction. In the event of such objection, the acquisition cannot be consummated without253 the parties obtaining the approval of the department. Unless the department has objected254 to the transaction, the department shall forward to the Secreta ry of State written255 confirmation that the requirements of this subsection have been satisfied.256 (A) Notify the department of the proposed merger or consolidation;257 (B) Provide such evidence of the adoption of the plan of merger or consolidation as the258 department may request;259 (C) Notify the department of any abandonment or disapproval of the plan of merger260 or consolidation; and261 (D) File with the department and the Secretary of State a certificate of the approval of262 the merger or consolidation by the appropriate regulator.263 (2) Upon receipt of written confirmation from the department that the requirements of264 this subsection have been satisfied, each party to the merger or consolidation, except the265 resulting bank or trust company, shall cease to exist as a separate entity, as provided in266 subsection (c) of Code Section 7-1-536, and its articles shall automatically terminate."267 H. B. 945 - 11 - 26 LC 62 0310S/AP SECTION 6.268 Said title is further amended in Article 3 of Chapter 1, relati ng to credit unions, by adding269 a new Code section to read as follows:270 "7-1-632.1.271 To the extent the provisions of Chapter 3 of Title 14 are consistent with and not in conflict272 with the other provisions of this chapter and the rules and regulations of the department,273 such provisions shall apply to credit unions chartered by the department pursuant to this274 chapter."275 SECTION 7.276 Said title is further amended in Article 4 of Chapter 1, relati ng to money transmission, by277 designating Code Sections 7-1-680 through 7-1-698 as Part 1.278 SECTION 8.279 Said title is further amended in said article by revising subparagraph (A) of paragraph (14)280 of Code Section 7-1-680, relating to definitions regarding money transmission, as follows:281 "(A) Receiving money or monetary value for transmission or tran smitting money or282 monetary value within the United States or to locations abroad by any and all means,283 including, but not limited to:284 (i) An order;285 (ii) A wire;286 (iii) A facsimile; and287 (iv) An electronic transfer; and288 (v) A virtual currency kiosk as defined in Code Section 7-1-699;"289 H. B. 945 - 12 - 26 LC 62 0310S/AP SECTION 9.290 Said title is further amended in said article by revising subpa ragraph (f)(1)(B) of Code291 Section 7-1-689, relating to record keeping, investigation and examination requirements and292 powers, and limitations on civil liability, as follows:293 "(B) Personal history and experience information, including, bu t not limited to,294 independent credit reports obtained from a consumer reporting agency described in the295 federal Fair Credit Reporting Act, 15 U.S.C. Section 1681a;"296 SECTION 10.297 Said title is further amended in said article by repealing and reserving Code Section 7-1-698,298 relating to continuing effectiveness of existing licenses.299 SECTION 11.300 Said title is further amended in said article by adding a new part to read as follows:301 "Part 2302 7-1-699.303 As used in this part, the term:304 (1) 'Existing customer' means a consumer who:305 (A) Is engaging in a virtual currency transaction at a virtual currency kiosk in this state;306 and307 (B) Has been registered as a customer of such operator for more than 72 hours.308 (2) 'New customer' means a consumer who:309 (A) Is engaging in a virtual currency transaction at a virtual currency kiosk in this state;310 and311 (B) Has been registered as a customer of such operator for less than 72 hours.312 H. B. 945 - 13 - 26 LC 62 0310S/AP (3) 'New customer time period' means the first 72 hours after a consumer becomes a new313 customer of a virtual currency kiosk.314 (4)(A) 'Operator' means a person who performs money transmission through a virtual315 kiosk by:316 (i) Facilitating the exchange of fiat currency for virtual currency, virtual currency for317 fiat currency, or virtual currency for other virtual currency; or318 (ii) Directly or indirectly transmitting virtual currency319 (B) An operator may:320 (i) Be an owner; or321 (ii) Enter into a contract with the owner to perform money transmission or initiate322 money transmission at the location of the virtual currency kiosk.323 (5) 'Owner' means a person who owns a virtual currency kiosk.324 (6) 'Virtual currency address' means an alphanumeric identifier representing a destination325 for a transfer of virtual currency that is associated with a virtual currency wallet.326 (7) 'Virtual currency kiosk' means an electronic terminal acti ng as a mechanical agent327 of the operator to enable the operator to:328 (A) Facilitate the exchange of fiat currency for virtual currency, virtual currency for329 fiat currency, or virtual currency for other virtual currency; or330 (B) Directly or indirectly transmit virtual currency.331 (8) 'Virtual currency wallet' means a software application or other mechanism providing332 a means for holding, storing, and transferring virtual currency.333 7-1-699.1.334 (a) The operator shall, in establishing a relationship with a customer and prior to initiating335 an initial virtual currency transaction at a virtual currency kiosk for, or on behalf of or with,336 the customer, disclose in clear, conspicuous, and legible writing in the English language337 H. B. 945 - 14 - 26 LC 62 0310S/AP and if applicable, in the language selected by the customer at the beginning of the338 relationship or transaction, the following:339 (1) A disclosure, which shall be acknowledged by the customer, provided separately340 from the disclosures provided pursuant to paragraphs (2) through (7) of this subsection,341 written prominently and in bold type stating the following: 'WARNING: LOSSES DUE342 TO FRAUDULENT OR ACCIDENTAL TRANSACTIONS MAY NOT BE343 RECOVERABLE AND TRANSACTIONS IN VIRTUAL CURRENCY ARE344 IRREVERSIBLE.';345 (2) Virtual currency is not backed or insured by the government, and accounts and value346 balances are not subject to the Federal Deposit Insurance Corpo ration, National Credit347 Union Administration, or Securities Investor Protection Corporation protections;348 (3) Some virtual currency transactions shall be deemed complet e when recorded on a349 public ledger, which may not be the date or time when the customer initiated the virtual350 currency transaction;351 (4) The value of virtual currency may be derived from the cont inued willingness of352 market participants to exchange fiat currency for virtual curre ncy, which may result in353 the permanent and total loss of the value of a particular curre ncy if the market for that354 virtual currency disappears;355 (5) The volatility and unpredictability of the price of virtua l currency relative to fiat356 currency may result in a significant loss over a short period of time;357 (6) Any bond maintained by the operator for the benefit of the c u s t o m e r s o f s u c h358 operator may not be sufficient to cover all losses incurred by such customers;359 (7) Virtual currency transactions are irreversible and are fre quently used by persons360 seeking to defraud customers, including, but not limited to, a person impersonating a361 customer's loved ones, threatening jail time, stating that a cu stomer's identity has been362 stolen, insisting that a customer withdraw money from the customer's bank account and363 H. B. 945 - 15 - 26 LC 62 0310S/AP purchase cryptocurrency, alleging a customer's personal computer has been hacked, or364 perpetuating or conducting a romance scam; and365 (8) Such other disclosures the department requires by rule.366 (b) Nothing in this Code section shall be construed to prohibit operators from providing367 additional disclosures to customers.368 7-1-699.2.369 The operator shall, when opening an account for a new customer and prior to initiating an370 initial virtual currency transaction at a virtual currency kiosk for, on behalf of, or with such371 customer, disclose in clear, conspicuous, and legible writing in the English language, and,372 if applicable, in the language selected by the customer at the beginning of the relationship373 or transaction, using not less than 24 point sans-serif font, all relevant terms and conditions374 associated with the products, services, and activities of the operator and virtual currency375 generally, including, but not limited to, the following:376 (1) The customer's liability for unauthorized virtual currency transactions;377 (2) The customer's right to stop payment of a preauthorized virtual currency transaction378 and the procedure used to initiate a stop-payment order, if applicable;379 (3) Under what circumstances the operator will, absent a court or government order,380 disclose information concerning the customer's account to third parties;381 (4) The requirement that the operator communicate to the custo mer what customer382 information might be disclosed to third parties;383 (5) The customer's right to receive a receipt for a virtual currency transaction at the time384 of the transaction; and385 (6) Upon any change in the rules or policies of the operator, the customer's right to386 consent to such changed rules or policies prior to performing any transaction after such387 change.388 H. B. 945 - 16 - 26 LC 62 0310S/AP 7-1-699.3.389 The operator shall, prior to each virtual currency transaction initiated at a virtual currency390 kiosk for, on behalf of, or with a customer, disclose to such customer in clear, conspicuous,391 and legible writing in the English language, and, if applicable, in the language selected by392 the customer at the beginning of the relationship or transaction, using not less than 24 point393 sans-serif font, the terms and conditions of the virtual currency transaction, including, but394 not limited to, the following:395 (1) The amount of the transaction;396 (2) Any fees, expenses, and charges borne by the customer, including, but not limited to,397 any applicable exchange rates;398 (3) The type and nature of the virtual currency transaction;399 (4) A warning that, once executed, the virtual currency transa ction is irreversible, if400 applicable;401 (5) A daily virtual currency transaction limit in accordance with this part; and402 (6) The difference in the sale price of the virtual currency c ompared with the current403 market price.404 7-1-699.4.405 The operator shall ensure that if the information contained in the disclosures required by406 Code Sections 7-1-699.1 and 7-1-699.2 changes, any existing customer initiating a virtual407 currency transaction after the date of any change to the disclo sure information shall be408 provided with the updated disclosure information and acknowledg e the same prior to409 completing such virtual currency transaction.410 H. B. 945 - 17 - 26 LC 62 0310S/AP 7-1-699.5.411 The operator shall ensure that each customer acknowledges the receipt of all disclosures412 required under this part. Acknowledgment of such disclosures shall not impact the rights413 of the customer, including, but not limited to, the ability to obtain a refund from an414 operator.415 7-1-699.6.416 (a) The operator shall, upon completion of any virtual currency transaction initiated at a417 virtual currency kiosk, provide the customer with a receipt con taining the following418 information:419 (1) The name of and contact information for the operator, including, but not limited to,420 the operator's business address and a customer service telephone number established by421 the operator to answer questions and register complaints;422 (2) The name of and contact information for the owner, including, but not limited to, the423 owner's business address and a telephone number if the virtual currency kiosk is owned424 by a person other than the operator;425 (3) The name of the customer;426 (4) The type, value, date, and precise time of such virtual currency transaction and each427 virtual currency address;428 (5) The amount of such virtual currency transaction expressed in United States currency;429 (6) The full unique transaction hash or identification number;430 (7) The public virtual currency address of the customer;431 (8) The unique identifier;432 (9) Any fee charged, including, but not limited to, any fee charged directly or indirectly433 by the operator, the owner, or a third party involved in the virtual currency transaction;434 (10) The exchange rate, if applicable;435 (11) Any tax collected by the operator for the virtual currency transaction;436 H. B. 945 - 18 - 26 LC 62 0310S/AP (12) A statement of the liability of the operator for nondelivery or delayed delivery;437 (13) A statement of the refund policy of the operator;438 (14) The email address of the department and a statement disclosing that the operator's439 customers may contact the department with questions or complaints about the operator's440 virtual currency kiosk services; and441 (15) Any additional information the department may require.442 (b) The receipt required by subsection (a) of this Code section:443 (1) Shall be provided in retainable form in the English language and, if applicable, the444 language selected by the customer at the beginning of the relationship or virtual currency445 transaction; and446 (2) May be provided electronically if the customer requests or agrees to receive an447 electronic receipt.448 7-1-699.7.449 The total amount of any fee, commission, spread, or other charges related to a transaction450 initiated at a virtual currency kiosk shall not exceed 18 perce nt of the amount of the fiat451 currency exchanged or transmitted.452 7-1-699.8.453 (a) There is established an aggregated maximum daily transaction limit of $2,500.00 for454 each new customer for transactions initiated at a virtual currency kiosk.455 (b) There is established an aggregated maximum daily transaction limit of $10,000.00 for456 each existing customer for transactions initiated at a virtual currency kiosk.457 7-1-699.9.458 (a) An operator shall issue a refund to:459 H. B. 945 - 19 - 26 LC 62 0310S/AP (1) A new customer for the full amount of all transactions initiated at a virtual currency460 kiosk within the new customer time period upon request of the new customer. In order461 to receive a refund under this paragraph, a new customer shall:462 (A) Have been defrauded, fraudulently induced, or otherwise deceived to engage in the463 virtual currency transactions; and464 (B) Contact the operator and a government or law enforcement agency to inform them465 of the complained of activity within five days of the last transaction to occur during the466 new customer time period.467 (2) A new or existing customer for the full amount of fees initiated at a virtual currency468 kiosk if the customer has been defrauded, fraudulently induced, or otherwise deceived to469 engage in the virtual currency transactions.470 (b) If the conditions of paragraphs (1) and (2) of subsection (a) of this Code section have471 been satisfied, the operator shall issue such refund to the customer within 72 hours of the472 request.473 7-1-699.10.474 Each operator shall:475 (1) Obtain a copy or scan of a government issued identification card that identifies each476 customer of such operator;477 (2) Maintain restrictions that prevent more than one customer of such operator from478 using the same virtual currency wallet;479 (3) Be able to prevent designated virtual currency wallets from being used at any virtual480 currency kiosk owned or operated by such operator;481 (4) Regularly use an established third party that specializes in performing blockchain482 analyses to preemptively perform such analyses to identify and prevent high risk or483 sanctioned virtual currency wallets from being used by customer s at virtual currency484 kiosks operated by such operator;485 H. B. 945 - 20 - 26 LC 62 0310S/AP (5) Define in the operator's policies and procedures a risk based method of monitoring486 customers of such operator on a post-transaction basis;487 (6)(A) Offer during the hours of operation of the virtual curr ency kiosks timely live488 customer support by telephone from a telephone number prominently displayed at or489 on such virtual currency kiosks. During such communication, which shall be recorded490 and maintained by the operator for not less than five years, the operator shall:491 (i) Positively identify the customer;492 (ii) Reconfirm any attestations made by the customer at a virt ual currency kiosk493 operated by the operator;494 (iii) Discuss the transaction; and495 (iv) Discuss types of fraudulent schemes relating to virtual currency;496 (B) Such customer support shall also be available for law enforcement to contact the497 operator;498 (7) Designate and employ a chief compliance officer who shall:499 (A) Be qualified to coordinate and monitor a compliance progra m to ensure500 compliance with this part and all other applicable federal and state laws, rules, and501 regulations;502 (B) Be employed on a full-time basis by such operator; and503 (C) Not own more than 20 percent of the virtual currency kiosk operator that employs504 the chief compliance officer;505 (8) Use covered employees to fulfill the operator's compliance responsibilities under506 federal and state laws, rules, and regulations; and507 (9) Report to the department the locations of each of the oper ator's virtual currency508 kiosks in this state in a form prescribed by the department. Such report shall include, but509 shall not be limited to, the:510 (A) Address of the location of the virtual currency kiosk;511 (B) Name of the business as displayed at the location of the virtual currency kiosk;512 H. B. 945 - 21 - 26 LC 62 0310S/AP (C) Name of the business that signed the lease or other contra ct with the virtual513 currency kiosk for the subject location; and514 (D) Owner of the virtual currency kiosk at such location, if not owned by the operator.515 7-1-699.11.516 Nothing in this part sha ll be construed to waive, change, or ot herwise modify other517 requirements imposed on operators of virtual currency kiosks throughout this title."518 SECTION 12.519 Said title is further amended in Article 4A of Chapter 1, relat ing to cashing of payment520 instruments, by revising subparagraph (f)(1)(B) of Code Section 7-1-706, relating to record521 keeping, investigation and examination requirements and powers, and limitation on civil522 liability, as follows:523 "(B) Personal history and experience information, including, bu t not limited to,524 independent credit reports obtained from a consumer reporting agency described in the525 federal Fair Credit Reporting Act, 15 U.S.C. Section 1681a; and"526 SECTION 13.527 Said title is further amended in Article 13 of Chapter 1, relat ing to licensing of mortgage528 lenders and mortgage brokers, by revising paragraph (5.3) of Code Section 7-1-1000, relating529 to definitions, as follows:530 "(5.3) 'Covered servicer' means a mortgage lender with a servicing portfolio of 2,000 or531 more residential mortgage loans serviced or subserviced for others loans as reported in532 the mortgage lender's aggregate Mortgage Call Report data as of the most recent calendar533 year end, excluding whole loans owned, reverse mortgages that a re serviced or534 subserviced for others, and loans being interim serviced prior to sale."535 H. B. 945 - 22 - 26 LC 62 0310S/AP SECTION 14.536 Said title is further amended in said article by revising subpa ragraph (k)(2)(A) of Code537 Section 7-1-1004, relating to investigation of applicant, requi rements for applicant, and538 denial and revocation of license, as follows:539 "(A) An independent credit report obtained from a consumer repo rting agency540 described in section 603(p) of the Fair Credit Reporting Act, 1 5 U.S.C. Section541 1681a(p); and"542 SECTION 15.543 Said title is further amended in said article by revising parag raph (1) of subsection (c) of544 Code Section 7-1-1008, relating to prohibited acquisitions of shares without prior approval,545 as follows:546 "(1) The acquisition of an interest in a licensee directly or i ndirectly, including an547 acquisition by merger or consolidation by or with a person licensed as a mortgage lender548 or mortgage broker by this article or a person exempt as a mortgage lender or mortgage549 broker from this article under Code Section 7-1-1001;"550 SECTION 16.551 Said title is further amended in said article by revising parag raphs (1) and (2) of552 subsection (b) of Code Section 7-1-1011, relating to annual fees, as follows:553 "(1) As used in this subsection, the term 'collecting agent' means the person listed as the554 secured party on a security deed or other loan document that es tablishes a lien on the555 residential real property taken as collateral at the time of the closing of the mortgage loan556 transaction.557 (2) There shall be imposed on the closing of every mortgage loan subject to regulation558 under this article which, as defined in Code Section 7-1-1000, includes all mortgage loans559 made on residential property, whether or not closed by a mortgage broker or mortgage560 H. B. 945 - 23 - 26 LC 62 0310S/AP lender licensee, a fee of $10.00. The fee shall be paid by the borrower to the collecting561 agent at the time of closing of the mortgage loan transaction. The collecting agent shall562 remit the fee to the department at the time and in the manner specified by regulation of563 the department. Revenue collected by the department pursuant to this subsection shall564 be deposited in the general fund of the state."565 SECTION 17.566 Said title is further amended in Article 14 of Chapter 1, relat ing to foreign banking567 institutions, by revising Code Section 7-1-1132, relating to location and authority of offices568 and relocation, as follows:569 "7-1-1132.570 A Georgia state representative office may engage in the activities authorized by this article571 at each location registered with the department as a representative office. A Georgia state572 representative office may change its location in this state by filing a notification with the573 department containing the street address and mailing address of the new location no less574 than 30 days in advance of relocation. The department may require an application for such575 relocation if the notification raises supervisor supervisory concerns. All relocations shall576 include a notice to customers posted in a conspicuous place of the affected location as well577 as on the bank's website at least 30 days before relocating."578 SECTION 18.579 Said title is further amended in Article 1 of Chapter 3, relati ng to general provisions580 regarding installment loans, by revising paragraphs (1), (2), (3), and (6) of subsection (b) of581 Code Section 7-3-4, relating to licensing requirement and exemptions, as follows:582 "(1) Any state or federally chartered bank, trust company, credit union, savings and loan583 association, savings bank, or industrial bank, provided that ea ch such bank, trust584 company, credit union, savings and loan association, savings bank, or industrial bank has585 H. B. 945 - 24 - 26 LC 62 0310S/AP deposits that are federally insured Businesses chartered or licensed under the authority586 of any law of this state or of the United States as banks, trust companies, savings and loan587 associations, savings banks, or credit unions or to the transactions of such businesses;588 (2) Banks or credit unions chartered under the authority of any state which have deposits589 t h a t a r e f edera l l y i n s u r e d o r t o t h e t r a n s a c t i o n s o f s u c h b u s i nesses A wholly owned590 subsidiary of a state or federally chartered bank, trust company, credit union, savings and591 loan association, savings bank, or industrial bank, provided th at each such bank, trust592 company, credit union, savings and loan association, savings bank, or industrial bank has593 deposits that are federally insured;594 (3) Pawnbrokers, as defined in Code Section 44-12-130, or to t he transactions of595 pawnbrokers;"596 "(6) Any agency, division, or instrumentality of the federal go vernment of the United597 States of America; the government of the State of Georgia or the government of any other598 state; or any county or municipal government in the State of Georgia; and the transactions599 of all such governmental entities;"600 SECTION 19.601 Said title is further amended in Article 5 of Chapter 3, relati ng to regulation by the602 department, by revising subparagraph (d)(2)(B) of Code Section 7-3-40, relating to603 investigations and examinations, payment of fees, and cooperation by licensee, as follows:604 "(B) Personal history and experience information, including, bu t not limited to,605 independent credit reports obtained from a consumer reporting agency described in the606 federal Fair Credit Reporting Act, 15 U.S.C. Section 1681a; and"607 H. B. 945 - 25 - 26 LC 62 0310S/AP SECTION 20.608 Said title is further amended in Chapter 6A, the "Georgia Fair Lending Act," by revising609 paragraph (4) of Code Section 7-6A-2, relating to definitions, as follows:610 "(4) 'Bona fide discount points' means loan discount points kno wingly paid by the611 borrower for the express purpose of reducing, and which in fact do result in a bona fide612 reduction of, the interest rate applicable to the home loan; pr ovided, however, that the613 undiscounted interest rate for the home loan does not exceed by more than one percentage614 point the average prime offer rate as defined in 12 C.F.R. 1026 .35 that applies to a615 comparable transaction, as published by the United States Consumer Financial Protection616 Bureau as of the last date the discounted interest rate for the transaction is set before617 consummation or such other formula adopted or referenced by the department pursuant618 to regulation."619 SECTION 21.620 Said title is further amended in Chapter 9, relating to Georgia merchant acquirer limited621 purpose bank, by revising Code Section 7-9-3, relating to chart ering of merchant acquirer622 limited purpose banks and regulation limited, as follows:623 "7-9-3.624 (a) A corporation that performs merchant acquiring activities or settlement activities in this625 state may elect to obtain a charter from the department. Those corporations chartered by626 the department shall be subject to the provisions of this chapt er and any rules and627 regulations adopted by the department for purposes of regulatin g chartered merchant628 acquirer limited purpose banks. The department shall have no a uthority to regulate a629 corporation performing merchant acquiring activities or settlement activities that has not630 been chartered by the department.631 (b) To the extent the provisions of Chapter 2 of Title 14 are consistent with and not in632 conflict with the other provisions of this chapter and the rule s and regulations of the633 H. B. 945 - 26 - 26 LC 62 0310S/AP department, such provisions shall apply to corporations charter ed by the department634 pursuant to this chapter and not organized as limited liability companies.635 (c) To the extent the provisions of Chapter 11 of Title 14 are consistent with and not in636 conflict with the other provisions of this chapter and the rule s and regulations of the637 department, such provisions shall apply to corporations charter ed by the department638 pursuant to this chapter and organized as limited liability companies."639 SECTION 22.640 Said title is further amended in said chapter by adding a new Code section to read as follows:641 "7-9-10.1.642 (a) A merchant acquirer limited purpose bank may, in the manner provided in this Code643 section, amend its articles at any time in order to make any ch ange which would be644 authorized for inclusion in original articles under this chapter, including without limitation645 an amendment to:646 (1) Adopt a new name permitted to be used under this chapter;647 (2) Renew the term for which it is to exist or to provide for perpetual duration;648 (3) Change, add to, or diminish the statement of its purpose or purposes;649 (4) Increase or diminish the aggregate number of shares which it has authority to issue650 or to reclassify the shares by changing the number, par value, designations, preferences,651 redemption provisions, or relative, participating, optional, or other special rights of the652 shares or the qualifications, limitations, or restrictions of s uch rights, either with or653 without an increase or decrease in the number of shares;654 (5) Restate the articles in their entirety; or655 (6) Change its main office location to a new location.656 (b) Articles restated in their entirety shall state the street address and county of the current,657 instead of the original, main office of the merchant acquirer limited purpose bank.658 H. B. 945 - 27 - 26 LC 62 0310S/AP (c) Articles need not be amended for the addition or change of a registered agent or the659 change of a registered office. The merchant acquirer limited purpose bank shall, however,660 notify in writing the department and the Secretary of State of such changes.661 (d) The articles of amendment shall be filed with the departme nt together with the fee662 required by Code Section 7-1-862. The filing of articles of amendment shall constitute an663 application for a certificate of amendment. If the articles of amendment involve a change664 in the name of a merchant acquirer limited purpose bank, it shall reserve the proposed new665 name under the procedures of Code Section 7-1-131.666 (e) Upon receipt of the articles of amendment, the department shall conduct such667 investigation as it may deem necessary to determine:668 (1) That the articles of amendment and supporting items satisfy the requirements of this669 chapter;670 (2) Where the amendment would grant new powers or status to a merchant acquirer671 limited purpose bank, that the criteria for granting such power s or status as an original672 matter have been satisfied;673 (3) Where the amendment decreases the capital stock of the ins titution, that the674 remaining capital stock will be adequate to support its anticipated business;675 (4) Where the amendment provides for a change to a new location, that the criteria for676 establishing a new office at the new location have been satisfied; and677 (5) That the interests of the shareholders and the public will not be impaired by the678 amendment.679 (f) Within 60 days after the receipt of the articles of amendm ent the department shall680 approve or disapprove the articles of amendment on the basis of its investigation and681 criteria set forth in subsection (e) of this Code section. If the department approves the682 articles of amendment, it shall deliver its written approval to the Secretary of State with a683 copy of the amendment attached and notify the merchant acquirer limited purpose bank of684 its action. If the department disapproves the articles of amen dment, it shall give written685 H. B. 945 - 28 - 26 LC 62 0310S/AP notice to the merchant acquirer limited purpose bank and furnish it a statement generally686 setting out the unfavorable factors influencing the department's decision. The decision of687 the department shall be conclusive, except that it may be subje ct to judicial review as688 provided in Code Section 7-1-90.689 (g) If all fees and charges required by law have been paid and, in the case of a change of690 name, if the proposed new name of the merchant acquirer limited purpose bank continues691 to be reserved or is available on the records of the Secretary of State, upon the receipt by692 the Secretary of State of the written approval of the department, the Secretary of State shall693 immediately issue to the merchant acquirer limited purpose bank a certificate of694 amendment and shall retain a copy thereof along with the approved articles of amendment695 and the written approval of the department.696 (h) As of the issuance of the certificate of amendment by the Secretary of State, each697 amendment shall become effective and the articles shall be deem ed to be amended698 accordingly.699 (i) The certificate of amendment shall be conclusive evidence of the performance of all700 conditions required by this chapter for amendment of articles, except as against the state.701 (j) No amendment shall affect any existing cause of action in favor of or against the702 merchant acquirer limited purpose bank, any pending action in which the merchant acquirer703 limited purpose bank is a party or existing rights of persons other than shareholders. If the704 amendment changes the name of the merchant acquirer limited purpose bank, no action by705 or against the institution shall be abated for that reason."706 SECTION 23.707 Said title is further amended in Chapter 10, relating to litigation financing, by revising Code708 Section 7-10-1, relating to definitions, and adding new paragraphs to read as follows:709 "7-10-1.710 As used in this chapter, the term:711 H. B. 945 - 29 - 26 LC 62 0310S/AP (1) 'Affiliate' or 'affiliated' means a person that directly, or indirectly through one or more712 intermediaries, controls, is controlled by, or is under common control with another713 person.714 (2) 'Commissioner' means the commissioner of banking and finance.715 (3) 'Consumer' means any individual who resides, is present, or is domiciled in this state716 or who is or has standing to become a plaintiff, claimant, or complainant in a civil action,717 administrative proceeding, legal claim, or other legal proceedi ng or in pursuit of any718 claim or cause of action in this state.719 (4) 'Department' means the Department of Banking and Finance.720 (5) 'Entity' means any domestic or foreign corporation, partnership, limited partnership,721 limited liability company, trust, fund, plan, or any other business, enterprise, association,722 or organization of any kind or nature.723 (6) 'Financial institution' means:724 (A) A state or federally chartered bank whose deposits are federally insured;725 (B) A trust company;726 (C) A state or federal savings and loan association whose depo sits are federally727 insured;728 (D) A state or federally chartered credit union whose deposits are federally insured;729 (E) A foreign bank branch or foreign bank agency authorized to do business in this730 state pursuant to Article 14 of Chapter 1 of Title 7; or731 (F) A bank holding company.732 (7) 'Foreign person' means an individual or an entity that is not:733 (A) A citizen of the United States;734 (B) An alien lawfully admitted for permanent residence in the United States;735 (C) An unincorporated association with a majority of members who are citizens of the736 United States or aliens lawfully admitted for permanent residence in the United States;737 or738 H. B. 945 - 30 - 26 LC 62 0310S/AP (D) A corporation that is incorporated in the United States.739 (7)(8) 'Foreign principal' means:740 (A) The government or a government official of any country oth er than the United741 States;742 (B) A political subdivision or political party of a country other than the United States;743 or744 (C) A partnership, associati on, corporation, organization, or other combination of745 persons organized under the laws of or having its principal pla ce of business in a746 country other than the United States whose shares or other ownership interest is owned747 by the government or a government official of a country other than the United States748 or is owned by a political subdivision or political party of a country other than the749 United States.750 (8)(9) 'Legal representative' means any attorney, group of attorneys , or law firm duly751 licensed and authorized to practice law and to represent a cons umer in a civil action,752 administrative proceeding, legal claim, or other legal proceedi ng seeking to recover753 damages in this state.754 (9)(10) 'Litigation financier' means any person engaged in or formed, created, or755 established for the purpose of engaging in any kind of business or economic activity that756 involves providing litigation financing in exchange for consideration of any kind.757 (10)(11)(A) 'Litigation financing agreement' or 'litigation financing' 'Litigation758 financing' or 'litigation financing agreement' means an agreement in which a litigation759 financier agrees to provide financing to a consumer or entity that is or has standing to760 become a party to a civil action, administrative proceeding, legal claim, or other legal761 proceeding seeking to recover monetary damages, or to counsel for such consumer or762 entity, in exchange for a right to receive payment, which right is contingent in any763 respect on the outcome of such action, claim, or proceedings by settlement, judgment,764 or otherwise, or on the outcome of any matter within a portfoli o that includes such765 H. B. 945 - 31 - 26 LC 62 0310S/AP action, claim, or proceedings and involves the same legal repre sentative or affiliated766 representative.767 (B) Such term shall not include:768 (i) An agreement wherein a legal representative consents to provide legal services on769 a contingency fee basis or to advance his or her client's legal costs, and where such770 services or costs are provided by the legal representative in a ccordance with the771 Georgia Rules of Professional Conduct maintained and enforced by the State Bar of772 Georgia;773 (ii) A preexisting contractual obligation to indemnify or defe nd a party to a civil774 action, administrative proceeding, legal claim, or other legal proceeding seeking to775 recover monetary damages, or any other legal proceeding;776 (iii) Any obligation of a health insurer to pay any sums for healthcare for an injured777 person under the terms of a health insurance plan or agreement;778 (iv) Any obligation to repay a financial institution, as such term is defined in Code779 Section 10-5A-1, for loans made directly to a party to a civil action, administ rative780 proceeding, legal claim, or other legal proceeding seeking to r ecover monetary781 damages, or such party's legal representative, provided that such repayment of such782 loan is not contingent upon the outcome of such action, claim, or proceedings, or on783 the outcome of any matter within a portfolio that includes such action, claim, or784 proceedings, and involves the same legal representative or affi liated legal785 representative;786 (v) Funding provided to a nonprofit organization that is funded by private donations,787 represents one or more clients on a pro-bono pro bono, no-cost basis, and seeks only788 injunctive relief on behalf of its clients; provided, however, that the provisions of this789 division shall not be construed to prohibit or otherwise affect any award of costs or790 attorney's fees to such nonprofit organization seeking only injunctive relief on behalf791 H. B. 945 - 32 - 26 LC 62 0310S/AP of a client that such nonprofit organization represents on a pro-bono pro bono, no-cost792 basis, or to such client; or793 (vi) Banks, institutional investors, and persons that provide financing to a litigation794 financier but do not engage in the business of litigation financing; provided, however,795 that this exclusion shall not apply to banks, institutional inv estors, and persons796 affiliated with a litigation financier.797 (11)(12) 'Litigation financing contract' or 'contract' means a written contract798 memorializing the terms and conditions of a litigation financing agreement.799 (12.1) 'Nationwide Multistate Licensing System and Registry' means a licensing system800 developed and maintained by the Conference of State Bank Superv isors and the801 American Association of Residential Mortgage Regulators for the licensing and802 registration of certain persons engaged in nondepository activities.803 (13) 'Person' means an individual or entity.804 (12)(14) 'Sovereign wealth fund' means an investment fund owned or con trolled by a805 foreign principal or an agent of such foreign principal.806 (15) 'Unique identifier' means a number or other identifier as signed by protocols807 established by the Nationwide Multistate Licensing System and Registry."808 SECTION 24.809 Said title is further amended in said chapter by redesignating subsections (f), (g), and (h) of 810 Code Section 7-10-2, relating to registration requirements and regulation by department, as811 subsections (g), (i), and (j), respectively, and by adding new subsections to read as follows:812 "(f) The department shall conduct an investigation of every app licant for registration to813 determine if all conditions for registration set forth in this chapter and the rules and814 regulations of the department have been satisfied."815 "(h) Except as specifically provided in this chapter, all registrations issued pursuant to this816 chapter shall expire on December 31 of each year and each application for renewal shall817 H. B. 945 - 33 - 26 LC 62 0310S/AP be made annually on or before December 1 of each year. A registration may be renewed818 by the filing of an application substantially conforming to the requirements of819 subsection (c) or (d) of this Code section and Code Section 7-1 0-2.1 as specifically820 modified in the department's rules and regulations. An annual registration fee established821 by rule or regulation of the department to defray the cost of supervision shall be paid with822 each renewal application and shall not be refunded or prorated."823 SECTION 25.824 Said title is further amended in said chapter by adding a new Code section to read as follows:825 "7-10-2.1.826 (a) Each applicant for registration under this chapter shall:827 (1) Submit an application in writing, which is made under oath and in such form as the828 department may prescribe;829 (2) Furnish to the Nationwide Multistate Licensing System and Registry the following830 information:831 (A) The legal name and principal office address of the person applying for the832 registration;833 (B) The name, residence, and business address of each director , officer, partner, or834 owner; and835 (C) The location where its initial registered office will be located in this state, if any;836 and837 (3) Submit such other data, financial statements, and pertinen t information as the838 department may require with respect to the applicant, a directo r, officer, partner, or839 owner.840 (b) The application for registration shall be filed together with:841 (1) A fee established by the department through rule or regula tion which shall not be842 refundable;843 H. B. 945 - 34 - 26 LC 62 0310S/AP (2) Items required by other provisions of this chapter includi ng, but limited to, Code844 Sections 7-10-2 and 7-10-3; and845 (3) Other information as may be required by the department.846 (c) The department shall enact rules and regulations regarding the time frame by which all847 persons shall submit an application for registration through th e Nationwide Multistate848 Licensing System and Registry."849 SECTION 26.850 Said title is further amended in said chapter by redesignating subsections (a) through (d) of851 Code Section 7-10-3, relating to denial of registration and pro cedures, as subsections (c)852 through (f), respectively, by revising the introductory languag e of subsection (c), and by853 adding new subsections to read as follows:854 "(a) For the purposes of this Code section, the term 'convictio n data' means a record of855 finding, verdict, or plea of guilty or plea of nolo contendere with regard to any crime,856 regardless of whether an appeal of the conviction has been sought.857 (b) The department shall be authorized to obtain conviction da ta with respect to any858 applicant or registrant and any person who is a director, officer, partner, or owner of any859 applicant or registrant. Criminal history record checks may be requested by the department860 through the Georgia Crime Information Center and the Federal Bu reau of Investigation. 861 The department shall have the authority to receive the results of such checks. In connection862 with an application under this chapter, the department may use the Nationwide Multistate863 Licensing System and Registry as a channeling agent for the submission of fingerprints to864 the Federal Bureau of Investigation and any governmental agency or entity authorized to865 receive such information for a state, national, and international criminal history background866 check and the receipt of such checks by the department. Fees required for a criminal867 history record check by the Georgia Crime Information Center or the Federal Bureau of868 Investigation shall be paid by the applicant or registrant.869 H. B. 945 - 35 - 26 LC 62 0310S/AP (c) The department may deny a registration to act as a litigation financier or deny a870 registered litigation financier's amended registration pursuant to subsection (f)(g) of Code871 Section 7-10-2 if the department finds that:"872 SECTION 27.873 Said title is further amended in said chapter by adding a new Code section to read as follows:874 "7-10-3.1.875 (a) The department may issue an order requiring a person to cease and desist immediately876 from unauthorized activities whenever it shall appear to the department that a person not877 registered under this chapter is engaging in or has engaged in activities requiring878 registration under this chapter. Such cease and desist order shall be final 30 days from the879 date of issuance and there shall be no opportunity for an admin istrative hearing. If the880 proper registration or evidence of exemption is obtained within the 30 day period, the cease881 and desist order shall be rescinded by the department.882 (b) The cease and desist order shall be in writing, sent by re gistered or certified mail or883 statutory overnight delivery, and addressed to the person's bus iness address and, if the884 person is an individual, to the individual's personal address. Any cease and desist order885 sent to a person at its business address and, if an individual, his or her personal address that886 is returned to the department as refused or unclaimed shall be deemed received and887 lawfully served.888 (c) Whenever a person fails to comply with the terms of a fina l order or decision of the889 department issued pursuant to this chapter, the department may, through the attorney890 general and upon three days' notice to such person, petition the principal court for an order891 directing such person to obey the order of the department within the period of time as shall892 be fixed by the court. Upon the filing of such petition, the c ourt shall allow a motion to893 show cause why it should not be granted. After a hearing on the merits or after failure of894 H. B. 945 - 36 - 26 LC 62 0310S/AP such person to appear when ordered, the court shall grant the p etition of the department895 upon a finding that the order of the department was properly issued.896 (d) Any person who violates the terms of any final order or de cision pursuant to this897 chapter shall be liable for a civil penalty not to exceed $1,000.00. Each day the violation898 continues shall constitute a separate offense. In determining the amount of the penalty, the899 department shall take into account the appropriateness of the penalty relative to the size of900 the financial resources of such person, the good faith efforts of such person to comply with901 the order, the gravity of the violation, the history of previous violations by such person, and902 other factors or circumstances that have contributed to the violation. The department may903 at its discretion compromise, modify, or refund any penalty which is subject to imposition904 or has been imposed pursuant to this Code section. Any person assessed as provided in this905 subsection shall have the right to request a hearing into the matter within ten days after the906 notification of the assessment has been served, otherwise the penalty shall be final except907 as to judicial review as provided in Code Section 7-1-90.908 (e) Judicial review of any final order or decision of the department entered pursuant to this909 chapter shall be available solely in the superior court of the county of domicile of the910 department.911 (f) In addition to any other administrative penalties authoriz ed by this chapter, the912 department may prescribe administrative fines for violations of this chapter and any rules913 and regulations promulgated by the department pursuant to this chapter."914 SECTION 28.915 Said title is further amended in said chapter by adding a new s ubsection to Code916 Section 7-10-6, relating to contract requirements, disclosures, and representation by counsel,917 to read as follows:918 "(g) In addition to any applicable disclosure requirements, a litigation financing agreement919 shall clearly display the registrant's name, unique identifier, and business address."920 H. B. 945 - 37 - 26 LC 62 0310S/AP SECTION 29.921 Said title is amended in said chapter by revising Code Section 7-10-10, relating to use of922 nation-wide multistate licensing system and registry, as follows:923 "7-10-10.924 (a) The department is authorized to:925 (1) Participate in the nation-wide multistate licensing system and registry Nationwide926 Multistate Licensing System and Registry in order to facilitate the sharing of information927 and standardization of the registration processes for litigation financiers by electronic or928 other means;929 (2) Enter into operating agreements, information sharing agree ments, interstate930 cooperative agreements, and other contracts necessary for the department's participation931 in the nation-wide multistate licensing system and registry Nationwide Multistate932 Licensing System and Registry;933 (3) Request that the nation-wide multistate licensing system a nd registry Nationwide934 Multistate Licensing System and Registry adopt an appropriate privacy, data security, and935 security breach notification policy that is in full compliance with existing state and936 federal law;937 (4) Disclose or cause to be disclosed without liability via th e nation-wide multistate938 licensing system and registry Nationwide Multistate Licensing System and Registry939 registration information, including, but not limited to, violat ions of this chapter and940 enforcement actions;941 (5) Establish and adopt, by rule or regulation, requirements f or participation by942 registrants in the nation-wide multistate licensing system and registry Nationwide943 Multistate Licensing System and Registry upon the department's determination that each944 new or amended requirement is consistent with both the public interest and the purposes945 of this chapter; and946 H. B. 945 - 38 - 26 LC 62 0310S/AP (6) Pay all fees received from applicants and registrants rela ted to registrations to the947 Office of the State Treasurer; provided, however, that the department may net such fees948 to recover the cost of participation in the nation-wide multist ate licensing system and949 registry Nationwide Multistate Licensing System and Registry.950 (b) Irrespective of its participation in the nation-wide multi state licensing system and951 registry Nationwide Multistate Licensing System and Registry, the department retains full952 and exclusive authority over determinations whether to grant re gistrations to litigation953 financiers under this chapter. Nothing in this Code section shall be construed to reduce this954 authority.955 (c) Applicants and registrants shall be required to pay any ch arges associated with their956 utilization of the nation-wide multistate licensing system and registry Nationwide957 Multistate Licensing System and Registry."958 SECTION 30.959 Title 30 of the Official Code of Georgia Annotated, relating to handicapped persons, is960 amended in Chapter 5, relating to protection of disabled adults and elder persons, by revising961 paragraphs (3) and (4) of subsection (b) of Code Section 30-5-7, relating to confidentiality962 of public records, reasonable access, and redaction in certain circumstances, and by adding963 a new paragraph to read as follows:964 "(3) Agencies participating in joint investigations at the requ est of and with the965 department, or conducting separate investigations of abuse, neglect, or exploitation within966 an agency's scope of authority, unless such records are wholly owned by the federal967 government; and968 (4) Coroners or medical examiners in suspicious death investigations; and969 (5) A financial institution, as defined in Code Section 7-1-4, that has a reasonable belief970 that a financial transaction initiated with such financial institution may involve, facilitate,971 result in, or contribute to the financial exploitation of a dis abled adult or elder person. 972 H. B. 945 - 39 - 26 LC 62 0310S/AP Such financial institution shall have reasonable access only to such records as necessary973 to inform its decision to place a hold on an account pursuant to Code Section 7-1-239.12."974 SECTION 31.975 All laws and parts of laws in conflict with this Act are repealed.976 H. B. 945 - 40 -