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-CHAPTER 98
-Legislative Research Commission PDF Version
+HOUSE OF REPRESENTATIVES
 
-1
-CHAPTER 98
-( SB 219 )
-AN ACT relating to debts.
-Be it enacted by the General Assembly of the Commonwealth of Kentucky:
-Section 1.   KRS 286.9-100 is amended to read as follows:
-(1) (a) Any fee charged by a licensee for cashing a check or entering into a deferred deposit transaction shall
-be disclosed in writing to the bearer of the check prior to cashing the check or entering into a deferred
-deposit transaction, and the fee shall be deemed a service fee and not interest.
-(b) A licensee shall not charge a service fee in excess of fifteen dollars ($15) per one hundred dol lars
-($100) on the face amount of a deferred deposit check. A licensee shall prorate any fee, based upon the
-maximum fee of fifteen dollars ($15) per one hundred dollars ($100). This service fee shall be for a
-period of at least fourteen (14) days.
-(2) Before a licensee shall deposit with any bank or other depository institution a check cashed by the licensee, the
-check shall be endorsed with the actual name under which the licensee is doing business.
-(3) A licensee shall not cash a check payable to a payee  other than a natural person unless the licensee has
-previously obtained appropriate documentation from the board of directors or similar governing body of the
-payee clearly indicating the authority of the natural person or persons cashing the check, draft , or money order
-on behalf of the payee.
-(4) (a) A licensee shall:
-1. Not indicate through advertising, signs, billhead, or otherwise that checks may be cashed without
-identification of the bearer of the check; and
-2. Require any person seeking to cash a c heck to submit reasonable identification as prescribed by
-the commissioner.
-(b) The provisions of this subsection shall not prohibit a licensee from cashing a check simultaneously with
-the verification and establishment of the identity of the presenter by means other than the presentation
-of identification.
-(5) (a) Within two (2) business days after being advised by a financial institution that a payment instrument
-has been altered, forged, stolen, obtained through fraudulent or illegal means, negotiated wi thout proper
-legal authority, or otherwise represents the proceeds of illegal activity, the licensee shall notify the
-commissioner and the prosecutor or law enforcement authority in the county in which the check was
-received.
-(b) If a payment instrument is returned to the licensee by a financial institution for any of the reasons stated
-in paragraph (a) of this subsection, the licensee shall not release the payment instrument without the
-written consent of the prosecutor or law enforcement authority or a court order.
-(6) A licensee shall not alter or delete the date on any payment instrument accepted by the licensee.
-(7) A licensee shall not engage in unfair or deceptive acts, practices, or advertising in the conduct of the licensed
-business.
-(8) A licensee shall not require a customer to provide security for a deferred deposit transaction or require the
-customer to provide a guaranty from another person.
-(9) (a) A licensee shall not have more than two (2) deferred deposit transactions from any one (1) customer at
-any one time.
-(b) 1. Except as provided in subparagraph 2. of this paragraph,  the total proceeds received by a[the]
-customer from all open[of the] deferred deposit transactions shall not exceed six[five] hundred
-dollars ($600)[($500)].
-2. a. Subject to subdivision b. 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
-ACTS OF THE GENERAL ASSEMBLY 2
-negative, the maximum amount of total proceeds permitted under subparagraph 1. of
-this paragraph by the percent change in the nonseasonally adjusted annual average
-Consumer Price Index for all Urban Consumers (CPI -U), U.S. City Average, All Items,
-for the previous calendar year as published by the United States Bureau of Labor
-Statistics, e xcept the amount shall be rounded up to the nearest ten dollar ($10)
-increment.
-b. The commissioner shall not issue an order under subdivision a. of this subparagraph
-that results in the amount of total proceeds permitted under subparagraph 1. of this
-paragraph exceeding eight hundred fifty dollars ($850).
-(10) (a) If the database described in KRS 286.9 -140 is unavailable due to technical difficulties with the
-database, as determined by the commissioner, a licensee shall utilize the process established in t his
-subsection to verify deferred deposit transactions.
-(b) A licensee shall inquire of any customer seeking to enter into a deferred deposit transaction, whether the
-customer has any outstanding deferred deposit transactions from any licensee.
-(c) If the customer represents in writing that the customer has no more than one (1) deferred deposit
-transaction outstanding to any licensee and that the total proceeds received by the customer from the
-outstanding deferred deposit transaction does not equal or exce ed the amount permitted under
-subsection (9)(b) of this section [five hundred dollars ($500)] , a licensee may accept a deferred deposit
-transaction in an amount that, when combined with the customer's other outstanding deferred deposit
-transaction, does not exceed the amount permitted under subsection (9)(b) of this section [five hundred
-dollars ($500) of total proceeds received by the customer].
-(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 anothe r 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.
-(11) A licensee shall not use any device or agreement, including agreements with an affiliate of a licensee, with the
-intent to obtain greater charges than are authorized in this subtitle.
-(12) A licensee shall not agree to hold a deferred deposit transaction for more than six ty (60) days.
-(13) (a) Each deferred deposit transaction shall be made according to a written or electronic agreement that is:
-1. Dated and signed by the customer and the licensee or an authorized agent of the licensee; and
-2. Made available to the commissioner upon request.
-(b) The customer shall receive a copy of the agreement referenced in paragraph (a) of this subsection.
-(c) A customer may enter into an agreement referenced in paragraph (a) of this subsection:
-1. In person at the licensed location; or
-2. If the customer is a citizen of this state, by telephone or other electronic means.
-(14) A licensee or its affiliate shall not for a fee renew, roll over, or otherwise consolidate a deferred deposit
-transaction for a customer.
-(15) An individual who ent ers into a deferred deposit transaction with a licensee shall not be convicted under the
-provisions of KRS 514.040.
-(16) A licensee who enters into a deferred deposit transaction with an individual shall not prosecute or threaten to
-prosecute the individual under the provisions of KRS 514.040.
-(17) Each licensee shall conspicuously display in each of its deferred deposit business locations a sign supplied by
-the commissioner that gives the following notice: "No person who enters into a post -dated or deferred deposit
-transaction with this business establishment will be prosecuted for or convicted of writing cold checks or of
-theft by deception under the provisions of KRS 514.040."
-(18) A licensee shall not enter into a deferred deposit transaction with a cust omer who has two (2) open deferred
-deposit transactions.
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+KENTUCKY GENERAL ASSEMBLY AMENDMENT FORM
 
-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:
-(a) If the database is not fully operational, as determined by the commissioner, the licensee shall verify that
-the customer meets the eligibility requirements for a deferred deposit transaction under this subtitle. The
-licensee shall maintain a database of all of the licensee's transacti ons at all of its locations and search
-that database to meet its obligation under this subtitle; or
-(b) If the database is fully operational, as determined by the commissioner, the licensee shall promptly and
-accurately access the database through an inter net real -time connection, and verify that the customer
-meets the eligibility requirements for a deferred deposit transaction under this subtitle.
-Section 2.   KRS 286.9-140 is amended to read as follows:
-(1) (a) A common database with real -time access thr ough 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 service business licensee to verify whether any deferred deposit transacti ons are
-outstanding for a particular person.
-(b) A deferred deposit service business licensee shall accurately and promptly submit such data into the
-database as may be required by the commissioner before entering into each deferred deposit transaction
-in such format as the commissioner may require by administrative regulation or order, including the
-customer's name, Social Security number or employment authorization alien number, address, driver's
-license number, amount of the transaction, date of transact ion, date that the completed transaction is
-closed, and any additional information required by the commissioner.
-(c) The commissioner may promulgate administrative regulations in accordance with KRS Chapter 13A to
-administer and enforce the provisions of t his subtitle and to assure that the database is used by deferred
-deposit service business licensees in accordance with this subtitle.
-(2) The commissioner shall impose a fee of[not to exceed] three dollars ($3) per transaction for data required to be
-submitted by a deferred deposit service business licensee, which fee may be charged to the customer.
-(3) (a) The commissioner may operate the database or may select and contract with a third -party provider to
-operate the database.
-(b) If the commissioner contra cts with a third -party provider for the operation of the database, all of the
-following apply:
-1. The commissioner shall ensure that the third -party provider selected as the database provider
-operates the database pursuant to the provisions of this subtitle;
-2. The commissioner shall consider cost of service and ability to meet all the requirements of this
-subtitle in selecting a third-party provider as the database provider;
-3. In selecting a third -party provider to act as the database provider, the commis sioner shall give
-strong consideration to the third -party provider's ability to prevent fraud, abuse, and other
-unlawful activities associated with deferred deposit transactions and provide additional tools for
-the administration and enforcement of this subtitle;
-4. The third-party provider shall use the data collected under this subtitle only as prescribed in this
-subtitle and the contract with the department and for no other purpose;
-5. If the third-party provider violates this subtitle, the commissioner may terminate the contract and
-the third-party provider may be barred from becoming a party to any other state contracts;
-6. A person injured by the third-party provider's violation of this subtitle may maintain a civil cause
-of action against the third -party provider and may recover actual damages plus reasonable
-attorney's fees and court costs; and
-7. The commissioner may require that the third -party provider collect the fee assessed in subsection
-(2) of this section from the licensee. The third -party provider shall remit the fee collected from
-the licensee to the commissioner no later than the first day of each month. The third -party
-provider shall deposit any fee collected in a separate escrow account in a federally insured
-financial institution and shall hold the fee deposited in trust for the Commonwealth of Kentucky.
-ACTS OF THE GENERAL ASSEMBLY 4
-(4) The database shall allow a deferred deposit service business licensee accessing the database to do all of the
-following:
-(a) Verify whether a customer has any open deferred deposit tra nsactions with any deferred deposit
-business service licensee that have not been closed;
-(b) Provide information necessary to ensure deferred deposit service business 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; and
-(c) Track and monitor the number of customers who notify a deferred deposit service business licensee of
-violations of this subtitle, the number of times  a deferred deposit service business licensee agreed that a
-violation occurred, the number of times that a deferred deposit service business licensee did not agree
-that a violation occurred, the amount of restitution paid, and any other information the com missioner
-requires by administrative regulation or order.
-(5) While operating the database, the database provider shall do all of the following:
-(a) Establish and maintain a process for responding to transaction verification requests due to technical
-difficulties occurring with the database that prevent the licensee from accessing the database through
-the internet;
-(b) Comply with any applicable federal and state provisions to prevent identity theft;
-(c) Provide accurate and secure receipt, transmission, and storage of customer data; and
-(d) Meet the requirements of this subtitle.
-(6) When the database provider receives notification that a deferred deposit transaction has been closed, the
-database provider shall designate the transaction as c losed in the database immediately, but in no event after
-11:59 p.m. on the day the commissioner or database provider receives notification.
-(7) (a) The database provider shall automatically designate a deferred deposit transaction as closed in the
-database five (5) days after the transaction maturity date unless a deferred deposit service business
-licensee reports to the database provider before that time that the transaction remains open because:
-1. Of the customer's failure to make payment;
-2. The custome r's payment instrument or an electronic redeposit is in the process of clearing the
-banking system;
-3. The customer's payment instrument is being returned to the deferred deposit service business
-licensee for insufficient funds, a closed account, or a stop payment order; or
-4. Of any other factors determined by the commissioner.
-(b) If a deferred deposit service business licensee reports the status of a transaction as open in a timely
-manner, the transaction remains an open transaction until it is closed an d the database provider is
-notified that the transaction is closed.
-(c) 1. Notwithstanding any other law, a licensee may accept, collect, or seek payment on a deferred
-deposit transaction that is designated as closed in the database if the transaction rema ins
-unpaid due to a returned or dishonored payment instrument.
-2. A licensee may exercise all rights and remedies otherwise available under law to enforce
-payment of a deferred deposit transaction referenced in subparagraph 1. of this paragraph if
-the licensee complies with applicable state and federal collection laws.
-3. This paragraph shall apply whether the returned or dishonored payment instrument is within
-or after the time periods prescribed under:
+2026 REGULAR SESSION
+
+Amend printed copy of SB 219/HCS 1
+
+Amendment No. HFA  Rep. Rep. Matt Lockett
+
+Committee Amendment   Signed:
+
+Floor Amendment   LRC Drafter:
+
+Adopted:   Date:
+
+Rejected:   Doc. ID: XXXX
+
+Page 1 of 2
+  On page 9, after line 10, insert the following:
+"(c) 1. Notwithstanding any other law, a licensee may accept, collect, or seek
+payment on a deferred deposit transaction that is designated as closed in the
+database if the transaction remains unpaid due to a returned or dishonored
+payment instrument.
+2. A licensee may exercise all rights and remedies otherwise available under law
+to enforce payment of a deferred deposit transaction referenced in
+subparagraph 1. of this paragraph if the licensee complies with applicable
+state and federal collection laws.
+3. This pa ragraph shall apply whether the returned or dishonored payment
+instrument is within or after the time periods prescribed under:
 a. The Uniform Commercial Code, KRS Chapter 355; or
 b. Federal clearinghouse rules.
 4. Any collection activity permitted under this paragraph shall not:
-a. Constitute a renewal, rollover, or consolidation of a deferred deposit transaction; or
-b. Trigger any additional reporting obligations within the database.
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-Legislative Research Commission PDF Version
+a. Constitute a renewal, rollover, or consolidation of a deferred deposit
+transaction; or
+b. Trigger any additional reporting obligations  within the database."; and
+On page 13, after line 21, insert the following:
+HOUSE OF REPRESENTATIVES Rep. Rep. Matt Lockett
+2026 REGULAR SESSION Doc. ID: XXXX
+Amend printed copy of SB 219/HCS 1
 
-5
-(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 d eposit 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 a nd the specific
-reason each transaction remains open.
-(b) The deferred deposit service business licensee shall also provide to the commissioner a reasonably
-acceptable plan that outlines how the deferred deposit service business licensee will continue to u pdate
-the database after it stops offering deferred deposit transactions.
-(c) The commissioner shall promptly approve or disapprove the plan and immediately notify the deferred
-deposit service business licensee of the commissioner's decision.
-(d) If the plan is disapproved, the deferred deposit service business licensee may submit a new plan or may
-submit a modified plan for the deferred deposit service business licensee to follow.
-(e) If at any time the commissioner reasonably determines that a deferred de posit service business licensee
-that has stopped offering deferred deposit transactions is not updating the database in accordance with
-its approved plan, the commissioner shall immediately close or instruct the database provider to
-immediately close all remaining open transactions of that deferred deposit service business licensee.
-(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 de ferred deposit transaction and describe the
-reason for that determination.
-(b) Only the person seeking the transaction may make a direct inquiry to the database provider to request a
-more detailed explanation of a particular transaction that was the basis for the ineligibility
-determination.
-(c) Any information regarding any person's transaction history is confidential; is not subject to public
-inspection; is not a public record subject to the disclosure requirements of the Kentucky Open Records
-Act, KRS 61.870 to 61.884; is not subject to discovery, subpoena, or other compulsory process, except
-in an administrative or legal action arising under this subtitle; and shall not be disclosed to any person
-other than the commissioner.
-(10) The commissioner m ay access the database only for purposes of an investigation of, examination of, or
-enforcement action concerning an individual database provider, licensee, customer, or other person.
-(11) (a) The commissioner shall investigate violations of and enforce this subtitle.
-(b) The commissioner shall not delegate his or her responsibilities under this subsection to any third -party
-provider.
-(12) The commissioner may, by administrative regulation or order, do all of the following:
-(a) Require that data be retained in the database only as required to ensure deferred deposit service business
-licensee compliance with this subtitle;
-(b) Require that customer transaction data in the database are archived within three hundred sixty -five
-(365) days after the customer tran saction is closed unless needed for a pending enforcement or legal
-action;
-(c) Require that any identifying customer information is deleted from the database when data are archived;
-and
-(d) Require that data in the database concerning a customer transactio n are deleted from the database three
-(3) years after the customer transaction is 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.
-(13) The commissioner may maintain access to data archived under subsection (12) of this section for examination,
-investigation, or legislative or policy review.
-(14) A deferred deposit service business licensee may rely on the information co ntained in the database as accurate
-and is not subject to any administrative penalty or civil liability as a result of relying on inaccurate information
-ACTS OF THE GENERAL ASSEMBLY 6
-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.
-(15) The commissioner may use the database to administer and enforce this subtitle.
-(16) The commissioner may require a database provider to file a report by March 1 of e ach year containing the
-following information:
-(a) The total number and dollar amount of deferred deposit transactions entered into in the calendar year
-ending December 31 of the previous year;
-(b) The total number and dollar amount of deferred deposit tra nsactions outstanding as of December 31 of
-the previous year;
-(c) The total dollar amount of fees collected for deferred deposit transactions as of December 31 of the
-previous year;
-(d) The minimum, maximum, and average dollar amount of deferred deposit tr ansactions entered into, the
-total dollar amount of the net charge -offs and write -offs, and the net recoveries of licensees as of
-December 31 of the previous year;
-(e) The average deferred deposit transaction amount, the average number of transactions, and  the average
-aggregate deferred deposit transaction amount entered into per customer as of December 31 of the
-previous year;
-(f) The average number of days a customer was engaged in a deferred deposit transaction for the previous
-year; and
-(g) An estimate of the average total fees paid per customer for deferred deposit transactions for the
-previous year.
-SECTION 3.   A NEW SECTION OF KRS CHAPTER 425 IS CREATED TO READ AS FOLLOWS:
-(1) An order of attachment or garnishment of earnings on a judgment -debtor em ployee provided to a
-garnishee-employer shall, at a minimum, contain the following information clearly placed on a single page:
-(a) The debtor's name;
-(b) One (1) of the following:
-1. The debtor's last known physical address; or
-2. A statement that the debtor's last known physical address is unknown;
-(c) One (1) of the following:
-1. The debtor's last known mailing address;
-2. A statement that the debtor's last known mailing address is the same as the debtor's last known
-physical address; or
-3. A statement that the debtor's last known mailing address is unknown;
-(d) The amount of the debt that is owed;
-(e) Information sufficient to identify the judgment on which the garnishment or attachment is based;
-(f) The name and contact information of the creditor's agent;
-(g) Where the employer is required to submit remittances; and
-(h) Any optional alternative remittance method.
-(2) (a) To properly match the judgment -debtor employee, a separate addendum may be used to provide
-sensitive identifying information to the  garnishee-employer in a manner that protects the employee's
-information from public inspection.
-(b) A separate addendum used under paragraph (a) of this subsection may include:
-1. The debtor's date of birth;
-2. One (1) of the following:
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-a. The debtor's Social Security number; or
-b. A statement that the debtor's Social Security number is unknown; and
-3. If the debtor's full Social Security number is unknown, any additional identifying information.
-Section 4.   Sections 1 and 2 of this Act apply to deferred  deposit transactions entered on or after the
-effective date of this Act.
-Section 5.   (1) Any provision of an administrative regulation, including 808 KAR 9:010, that conflicts
-with Section 1 or 2 of this Act shall be null, void, and unenforceable.
-(2) Within 90 days of the effective date of this Act, the Kentucky Department of Financial Institutions and
-any other administrative body shall amend, as necessary, any administrative regulations, including 808 KAR 9:010,
-that conflict with Section 1 or 2 of this Act to eliminate the conflict.
-Became law without Governor's signature April 12, 2026.
+Page 2 of 2
+"Section 5.   (1) Any provision of an administrative regulation, including 808 KAR
+9:010, that conflicts with Section 1 or 2 of this Act shall be null, void, and unenforceable.
+(2) Within 90 days of the effective date of this Act, the  Kentucky Department of
+Financial Institutions and any other administrative body shall amend, as necessary, any
+administrative regulations, including 808 KAR 9:010, that conflict with Section 1 or 2 of this Act
+to eliminate the conflict.".