SB 219 — AN ACT relating to debts.

UNOFFICIALCHAPTER COPY98 261 RSCHAPTER 98 ( SB 219/EN219 ) AN ACT relating to debts.

(b) The provisions of this subsection shall not prohibit a licensee from cashing a Page 1 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN check simultaneously with the verification and establishment of the identity of the presenter by means other than the presentation of identification.

of this subparagraph, the commissioner shall, on or before July 1 of each year, issue an order increasing, or decreasing if the percent change is negative,Legislative theResearch maximumCommission PagePDF 2Version ofACTS 14OF SB021920.100THE -GENERAL 2258ASSEMBLY -negative, XXXXthe 3/31/2026maximum 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN amount of total proceeds permitted under subparagraph 1.

Page 3 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN (d) If the customer represents in writing that the customer has more than one (1) deferred deposit transaction outstanding to licensees or if the total proceeds received by the customer from the deferred deposit transactions equal or exceed the amount permitted under subsection (9)(b) of this section[five hundred dollars ($500)], a licensee shall not enter into another deferred deposit transaction with that customer until the customer represents to the licensee in writing that the customer qualifies to enter into a new deferred deposit transaction under the requirements set forth in this subtitle.

Page 4 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN (15) An individual who enters into a deferred deposit transaction with a licensee shall not be convicted under the provisions of KRS 514.040.

CHAPTER 98 3 (19) A licensee shall verify a customer's eligibility to enter into a deferred deposit transaction by doing one (1) of the following, as applicable:

(1) (a) A common database with real-time access through an internet connection for deferred deposit service business licensees implemented in accordance with this subtitle shall be accessible to the department and a deferred deposit Page 5 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN service business licensee to verify whether any deferred deposit transactions are outstanding for a particular person.

Page 6 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN 3.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (4) The database shall allow a deferred deposit service business licensee accessing the database to do all of the following:

(b) Provide information necessary to ensure deferred deposit service business Page 7 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN licensee compliance with any requirements imposed by the United States Treasury Office of Foreign Assets Control and United States Treasury Office of Financial Crimes Enforcement Network;

Page 8 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN 2.

Trigger any additional reporting obligationswithinobligations within the database.

PageCHAPTER 998 of5 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN (8) (a) If a deferred deposit service business licensee stops providing deferred deposit transactions, the database provider shall designate all open transactions with that licensee as closed in the database sixty (60) days after the date the deferred deposit service business licensee stops offering deferred deposit transactions, unless the deferred deposit service business licensee reports to the database provider before the expiration of the sixty (60) day period which of its transactions remain open and the specific reason each transaction remains open.

(9) (a) The response to an inquiry to the database provider by a deferred deposit service business licensee shall state only that a person is eligible or ineligible for a new deferred deposit transaction and describe the reason for that Page 10 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN determination.

and (d) Require that data in the database concerning a customer transaction are deleted from the database three (3) years after the customer transaction is Page 11 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN closed or, if any administrative, legal, or law enforcement action is pending, three (3) years after the administrative, legal, or law enforcement action is completed, whichever is later.

(14) A deferred deposit service business licensee may rely on the information contained in the database as accurate and is not subject to any administrative penalty or civil liability as a result of relying on inaccurate information Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY contained in the database, provided the deferred deposit licensee accurately and promptly submits such data as required before entering into a deferred deposit transaction with a customer.

(f) The average number of days a customer was engaged in a deferred deposit Page 12 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN transaction for the previous year;

(2) (a) To properly match the judgment-debtor employee, a separate addendum may be used to provide sensitive identifying information to the garnishee-garnishee-employer employer in a manner that protects the employee's information from public inspection.

Page 13 of 14 SB021920.100 - 2258 - XXXX 3/31/2026 2:56 PM Engrossed UNOFFICIAL COPY 26 RS SB 219/EN (b) A separate addendum used under paragraph (a) of this subsection may include:

CHAPTER 98 7 a.

PageBecame 14law ofwithout 14Governor's SB021920.100signature -April 225812, -2026. XXXX 3/31/2026 2:56 PM Engrossed

Legislative Research Commission PDF Version