Plain English Breakdown
The official bill title and summary confirm the effective date is July 1, 2026, but do not provide specific definitions for key terms like 'eligible adult' or detailed procedures.
HB945: Rules for Holds on Adult Bank Accounts and Litigation Finance
This law allows banks to place holds on accounts of eligible adults if financial exploitation is suspected, removes a requirement for independent credit reports in some cases, and sets rules for stopping unregistered litigation finance providers.
What This Bill Does
- Allows banks to place holds on the bank accounts of eligible adults when they suspect financial exploitation.
- Sets out steps for placing these account holds and lifting them later.
- Removes the rule requiring independent credit reports from consumer reporting agencies in specific cases.
- Creates procedures for issuing cease and desist orders against unregistered people providing litigation finance.
- Allows courts to hold hearings to review state department decisions regarding litigation finance.
Who It Names or Affects
- Banks and financial institutions holding accounts for eligible adults
- Adults whose bank accounts may be held due to suspected exploitation
- People or companies providing funding for lawsuits (litigation finance)
- State departments that regulate banking and litigation finance
Terms To Know
- Eligible Adults
- Adults whose bank accounts may be subject to holds under this law.
- Litigation Finance
- Funding provided for lawsuits, which must now follow new registration and disclosure rules.
Limits and Unknowns
- The official summary does not define exactly who counts as an 'eligible adult' or what specific actions count as financial exploitation.
- The exact steps for placing holds or the details of required disclosures are not listed in this summary text.