Senate committee advances banking housekeeping bill adding elder-protection holds and crypto-kiosk rules

The Georgia Senate Banking Committee voted unanimously to pass House Bill 945, a Department of Banking and Finance housekeeping measure that its sponsor and department attorneys said modernizes technical provisions of state banking law and adds targeted consumer protections.

Representative Weisen, who presented the measure, told the committee it is broadly supported by regulated financial institutions and the Department of Banking and Finance. Amy Patterson, general counsel and deputy commissioner for legal affairs at the department, said the bill is largely technical but includes three policy changes aimed at protecting vulnerable customers.

The most consequential change would allow banks and credit unions that opt in to a new program to place temporary holds on transactions when a trained employee ‘‘reasonably believe[s]’’ an elderly or disabled customer is being financially exploited. ‘‘The initial hold could be for up to 15 days while they’re trying to get the arms around what is this person being abused?,’’ Patterson said. The committee record shows the bill would require notice, documentation and employee training for institutions that choose to participate.

The bill also creates the state’s first explicit regulatory framework for virtual-currency kiosks (what the sponsor described as consumer-facing machines that convert cash to cryptocurrency). Sponsor testimony said the proposal would cap kiosk transaction fees at 18 percent, require prominent consumer disclaimers and limit initial account purchases to $2,500 with higher daily limits only after an account has aged and metadata thresholds are met.

A third change requires annual registration and renewal for litigation financiers authorized under last year’s tort-reform measure; the department would gain authority to run criminal-background checks on ownership changes and issue cease-and-desist orders for unregistered actors.

Committee members asked how the bill’s civil and administrative immunity language would interact with department oversight; Patterson said exam authority remains and regulators would still be able to review policies and take action where institutions do not follow required procedures. In committee debate, members voiced concern that weakening immunity could discourage institutions from opting in, while keeping it may limit some enforcement options. The department stated it is comfortable with the current text.

Senator Harmon moved to pass the bill; Senator Hodges seconded. The committee recorded a unanimous voice vote to advance the measure as written. The committee did not make additional changes during the session.

If enacted, authors said, the bill would give financial institutions a structured tool to protect customers while requiring documentation, training and oversight intended to limit misuse.

The committee record lists no registered public opponents on the sign-up sheet for this bill during today’s session. The department and industry witnesses were listed in support.