Georgia 2025-2026 Regular Session

Georgia Senate Bill SB90 Compare Versions

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11 25 LC 52 0714
22 Senate Bill 90
33 By: Senators Tillery of the 19th and Albers of the 56th
44 A BILL TO BE ENTITLED
55 AN ACT
66 To amend Article 3 of Chapter 19 of Title 15 and Article 1 of Chapter 17 of Title 45 of the
77 1
88 Official Code of Georgia Annotated, relating to the regulation of the practice of law and2
99 general provisions regarding notaries public, respectively, so as to provide for the3
1010 modernization of certain legal, notarial, and court services using electronic means; to allow4
1111 an attorney to conduct a real estate closing for property in this state using electronic means5
1212 under certain conditions; to clarify the definition of the practice of law; to provide for6
1313 definitions; to prohibit witness-only closings; to prohibit the unauthorized practice of law;7
1414 to provide for penalties, liability, remedies, relief, and class action lawsuits; to provide for8
1515 legislative construction; to provide for legislative findings; to provide for certain notarial acts9
1616 to be performed remotely using electronic means when certain requirements are satisfied; to10
1717 provide for requirements and exemptions; to permit the use of an electronic seal of office;11
1818 to provide for criminal penalties and civil liability, including compensatory and other12
1919 damages; to provide for class action lawsuits; to provide for related matters; to provide for13
2020 an effective date; to repeal conflicting laws; and for other purposes.14
2121 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:15
2222 S. B. 90
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2424 PART I
2525 16
2626 Real estate closing using electronic means17
2727 SECTION 1-1.18
2828 The General Assembly recognizes that the Supreme Court of Georgia, in the exercise of its19
2929 authority to govern the practice of law in this state, has issued several opinions addressing20
3030 real estate closings and the practice of law, including, but not limited to, Formal Advisory21
3131 Opinion No. 86-5 (86-R9) (May 12, 1989), Formal Advisory Opinion No. 00-3 (February 11,22
3232 2000), In re: Formal Advisory Opinion No. 00-3 (November 10, 2003), Formal Advisory23
3333 Opinion No. 04-1 (August 6, 2004), In re: Formal Advisory Opinion No. 13-124
3434 (September 22, 2014), UPL Advisory Opinion No. 2003-2 (April 22, 2003), and In re: UPL25
3535 Advisory Opinion No. 2003-2 (November 10, 2003). The General Assembly finds that it is26
3636 in the public's interest to codify the rulings of such opinions on what constitutes the27
3737 unauthorized practice of law as it pertains to real estate closings in this state.28
3838 SECTION 1-2.29
3939 Article 3 of Chapter 19 of Title 15 of the Official Code of Georgia Annotated, relating to the30
4040 regulation of the practice of law, is amended by revising Code Section 15-19-50, relating to31
4141 "practice of law" defined, as follows:32
4242 "15-19-50.33
4343 (a)
4444 The practice of law in this state is defined as:34
4545 (1) Representing litigants in court and preparing pleadings and other papers incident to35
4646 any action or special proceedings in any court or other judicial body;36
4747 (2) Conveyancing, including the transfer of ownership of real property located in this37
4848 state or any act in a real estate closing that constitutes the practice of law;38
4949 (3) The preparation of legal instruments of all kinds whereby a legal right is secured;39
5050 S. B. 90
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5252 (4) The rendering of opinions as to the validity or invalidity of titles to real or personal
5353 40
5454 property;41
5555 (5) The giving of any legal advice; and42
5656 (6) Any action taken for others in any matter connected with the law.43
5757 (b) Nothing in paragraph (2) of subsection (a) of this Code section shall prohibit acts taken
5858 44
5959 by an individual while solely representing himself or herself in the purchase or sale of real45
6060 estate property located in this state."46
6161 SECTION 1-3.47
6262 Said article is further amended by adding new Code sections to read as follows:48
6363 "15-19-50.1.49
6464 As used in this article, the term:50
6565 (1) 'In person electronic notarization' means a notarial act in which: the signatory appears51
6666 in front of and is identified by the notary in the same physical location at the time of52
6767 notarization; the document is presented in a digital format and signed using an electronic53
6868 signature; the notary witnesses the act of signing the document; and the notary uses an54
6969 electronic seal and signature to notarize the document.55
7070 (2) 'Real estate closing using electronic means' refers to the continuous, interconnected56
7171 series of events through which title to real property located in this state is conveyed from57
7272 one party to another party and includes all acts conducted in whole or in part using58
7373 electronic means as provided for in Code Section 15-19-50.2.59
7474 (3) 'Security instrument' means any written document presented for recording for the60
7575 purpose of conveying or creating a lien or encumbrance on real estate for the purpose of61
7676 securing a long-term note secured by real estate.62
7777 (4) 'Technology provider' means an individual or entity that offers the services of a63
7878 tamper-evident technology for electronic notarial acts.64
7979 S. B. 90
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8181 (5) 'Witness-only closing' means a real estate closing in which an attorney presides over65
8282 the execution of deeds of conveyance and other closing documents but purports to do so66
8383 merely as a witness and notary and not as someone who is practicing law.67
8484 15-19-50.2.68
8585 (a) Any witness-only closing shall be unlawful in this state.69
8686 (b) An attorney conducting any real estate closing shall:70
8787 (1) Be licensed and present in this state at the time of such closing;71
8888 (2) Directly supervise and be responsible for the entirety of such closing, including all72
8989 employees, agents, and contractors who assist the attorney with such closing;73
9090 (3) Perform any and all duties otherwise required by law and by the rules and opinions74
9191 of the Supreme Court of Georgia; and75
9292 (4) Comply with subsection (c) of this Code section if conducting a real estate closing76
9393 using electronic means.77
9494 (c) In any real estate closing using electronic means, the participants shall have the78
9595 following duties:79
9696 (1) The attorney shall:80
9797 (A) Obtain consent from all participants to such closing, including any mortgage81
9898 lender, to the use of electronic means to facilitate such closing prior to such closing;82
9999 (B) Utilize two-way audio-video communication technology that is sufficiently secure83
100100 to prevent interference with the authenticity, integrity, and security of all documents for84
101101 such closing;85
102102 (C) Confirm the identity of any signatory through knowledge based authentication or86
103103 the presentation of a government issued form of identification and credential analysis;87
104104 (D) Ensure that two-way audio-video communication technology records such closing88
105105 and that such recording contains the following:89
106106 (i) The date and time of such closing, including any notarial act;90
107107 S. B. 90
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109109 (ii) A description of the documents that are being notarized;91
110110 (iii) An attestation that the attorney is physically located in this state at the time of92
111111 such closing; and93
112112 (iv) A clear image of any government issued identification that was used to verify the94
113113 identity of each participant;95
114114 (E) Conduct only one real estate closing using electronic means at a time;96
115115 (F) Certify that the copy of the electronic record is an accurate copy of such record;97
116116 and98
117117 (G) Retain possession of all electronic documents, a copy of the audio-video recording,99
118118 and other records of such closing for at least six years;100
119119 (2) The witness shall:101
120120 (A)(i) Be in the same physical location as the signatory, able to see, hear, and102
121121 communicate with the signatory, and able to witness the signature; or103
122122 (ii) Be present in this state and able to see, hear, and communicate with the signatory104
123123 and witness the signature through two-way audio-video communication technology;105
124124 (B) Witness the signatory sign the document; and106
125125 (C) Immediately sign the document as a witness; and107
126126 (3) The notary public shall:108
127127 (A) Be the attorney conducting such closing and shall provide his or her bar number109
128128 on each notarized document;110
129129 (B) Be present in this state;111
130130 (C) Be able to see, hear, and communicate with the signatory and witness the signature112
131131 by being in the same physical location for an in person electronic notarization or by113
132132 using two-way audio-video communication technology for a real estate closing using114
133133 electronic means;115
134134 (D) Witness the signatory sign the document; and116
135135 S. B. 90
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137137 (E) Immediately notarize the document using an electronic seal compliant with the117
138138 provisions of Code Section 45-17-6.118
139139 (d) Any person, including, but not limited to, a notary public, a technology provider, a119
140140 mortgage lender or its affiliates, employees, agents, and attorneys, or an attorney or the120
141141 attorney's employee or agent, that aids or abets another person in violating the provisions121
142142 of this Code section shall, upon the first or second conviction, be guilty of a misdemeanor;122
143143 provided, however, that, upon a third or subsequent conviction, such person shall be guilty123
144144 of a felony, punishable by imprisonment of not less than one year nor more than five years,124
145145 a fine of up to $5,000.00, or both."125
146146 SECTION 1-4.126
147147 Said article is further amended by revising subsection (a) of Code Section 15-19-51, relating127
148148 to unauthorized practice of law forbidden, as follows:128
149149 "(a) It shall be unlawful for any person other than a duly licensed attorney at law:129
150150 (1) To practice or appear as an attorney at law for any person other than himself or130
151151 herself in any court of this state or before any judicial body;131
152152 (2) To make it a business to practice as an attorney at law for any person other than132
153153 himself or herself in any of such courts;133
154154 (3) To hold himself or herself out to the public or otherwise to any person as being134
155155 entitled to practice law;135
156156 (4) To render or furnish legal services or advice;136
157157 (5) To furnish attorneys or counsel;137
158158 (6) To render legal services of any kind in actions or proceedings of any nature;138
159159 (7) To assume or use or advertise the title of 'lawyer,' 'attorney,' 'attorney at law,' or139
160160 equivalent terms in any language in such manner as to convey the impression that he or140
161161 she is entitled to practice law or is entitled to furnish legal advice, services, or counsel;141
162162 or142
163163 S. B. 90
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165165 (8) To advertise that either alone or together with, by, or through any person, whether
166166 143
167167 a duly and regularly admitted attorney at law or not, he or she
168168 has, owns, conducts, or144
169169 maintains an office for the practice of law or for furnishing legal advice, services, or145
170170 counsel; or146
171171 (9) To perform any act that constitutes the practice of law under the law or under the147
172172 rules and opinions of the Supreme Court of Georgia."148
173173 SECTION 1-5.149
174174 Said article is further amended by revising Code Section 15-19-58, relating to injunctive150
175175 relief, venue, procedure, and other remedies not curtailed, as follows:151
176176 "15-19-58.152
177177 (a) The Attorney General, any district attorney, Either the State Bar of Georgia, the153
178178 Judicial Council of this state, or any organized bar association of this state is authorized to154
179179 institute in the proper superior court of this state an action or actions seeking injunctive155
180180 relief, civil penalties not to exceed $10,000.00 per violation, restitution for an ascertainable156
181181 loss caused by such violation, and investigative costs, reasonable expenses, and attorney's157
182182 and witness fees, against any person, firm, or corporation, when it determines after an158
183183 investigation determines that such person, firm, or corporation:159
184184 (1) Is engaged in the unauthorized or unlawful practice of law;160
185185 (2) Reserved;161
186186 (3) Is in In violation of Code Section 15-19-55 or rules promulgated by the Supreme162
187187 Court, is orally or by in writing, for a consideration then or afterwards to be charged or163
188188 received by himself or herself or another, offering or tendering to another person, without164
189189 the solicitation of such other person, the services of an attorney at law, resident or165
190190 nonresident of this state, in order for the attorney to institute an action or represent the166
191191 person in the courts of this or any other state or of the United States in the enforcement167
192192 S. B. 90
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194194 or collection by law of any claim, debt, or demand of any such person against another or
195195 168
196196 is suggesting or urging the bringing of the action; or169
197197 (4) Is engaged in the practice of seeking out and proposing to other persons that they170
198198 present and urge through any attorney at law the collection of any claim, debt, or demand171
199199 of such person against another.172
200200 (b) The venue of any action authorized by this Code section shall be determined by the173
201201 constitutional and statutory provisions relating to cases in equity.174
202202 (c) The hearing, interlocutory or final, and the trial of actions authorized by this Code175
203203 section shall be governed by the laws of this state relating to injunctions, as shall appeals176
204204 from orders or judgments therein.177
205205 (d) In any action brought under this Code section, the final judgment, if in favor of the178
206206 plaintiff, shall perpetually enjoin the defendant or defendants from the commission or179
207207 continuance of the act or acts complained of. Restraining orders or temporary injunctions180
208208 may be granted as in other cases in which injunctive relief is sought. Any person who
209209 181
210210 violates the terms of an injunction, judgment, or consent order entered under the provisions182
211211 of this Code section shall forfeit and pay to the state a civil penalty of not more183
212212 than $20,000.00 per violation of such injunction, judgment, or consent order, and184
213213 investigative costs, reasonable expenses, and attorney's and witness fees.185
214214 (e) This Code section and Code Section 15-19-57 shall not repeal or curtail any remedy186
215215 provided in cases of unauthorized or unlawful practice of law, and nothing contained in187
216216 these Code sections shall be construed as abridging the powers of the courts in such188
217217 matters."189
218218 SECTION 1-6.190
219219 Said article is further amended by revising Code Section 15-19-60, relating to consumer191
220220 action for damages for violations, as follows:192
221221 S. B. 90
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223223 "15-19-60.
224224 193
225225 Any consumer who is a party to a one-to-four family residential real estate transaction or
226226 194
227227 a consumer debtor or a trustee of a consumer debtor in a bankruptcy case that involves a195
228228 one-to-four family residential real property who is damaged by a violation of this article196
229229 or a violation of the Supreme Court's rules or opinions governing the unlicensed practice197
230230 of law shall be entitled to maintain a civil action to recover damages, treble damages,198
231231 reasonable attorney's fees, and expenses of litigation. A claim for a violation of this Code199
232232 section shall be asserted in an individual action only and shall not be the subject of a class200
233233 action under Code Section 9-11-23. This Code section shall not prevent the activities201
234234 authorized by Code Section 15-19-52, 15-19-53, 15-19-54, 15-19-59, or 43-40-25.1.202
235235 (a) Any buyer, seller, or borrower that is or was a party to a residential or commercial real203
236236 estate closing in which any person involved in such transaction engaged in conduct204
237237 constituting the unauthorized or unlawful practice of law or a class of such plaintiffs shall205
238238 be entitled to maintain a civil action to recover damages. Such damages shall include, but206
239239 not be limited to:207
240240 (1) Actual monetary losses incurred by the plaintiff or the class of plaintiffs as a result208
241241 of a violation of the provisions this article, or $1,000.00 in damages for each such209
242242 violation, whichever is greater;210
243243 (2) Any expenses paid by the plaintiff or the class of plaintiffs for the services of any211
244244 person or entity that violated the provisions of this article; and212
245245 (3) De minimis or nominal damages incurred by the plaintiff or the class of plaintiffs as213
246246 a result of a violation of the provisions of this article.214
247247 (b) In addition to any other penalties provided for by law, if the court finds that the215
248248 defendant willfully or knowingly violated the provisions of this article, the court may, in216
249249 its discretion, increase the award to an amount equal to not more than three times the217
250250 amount available under paragraph (1) of subsection (a) of this Code section. The court218
251251 shall consider the frequency and persistence of noncompliance by the defendant, the nature219
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254254 of such noncompliance, the extent to which such noncompliance was intentional, the220
255255 number of persons or sales impacted by the violation, the impact of the judgment, and the221
256256 resources of the defendant.222
257257 (c) Any person, including, but not limited to, a notary public, a technology provider, a223
258258 mortgage lender or its affiliates, employees, agents, and attorneys, or an attorney or the224
259259 attorney's employee or agent, that, while participating in a residential or commercial real225
260260 estate closing, engages in conduct that constitutes the unauthorized or unlawful practice of226
261261 law, knowingly aids and abets another person in committing such conduct, or otherwise227
262262 violates the provisions of this article regulating real estate transactions shall be liable for228
263263 damages resulting from such conduct.229
264264 (d) When the loan agreement for a real estate transaction contains an arbitration clause and230
265265 the mortgage lender or such lender's agent engages in conduct that constitutes the231
266266 unauthorized or unlawful practice of law or an unlawful notarial act, the arbitration clause232
267267 shall not be enforceable to the extent it restricts or excludes damages or remedies that233
268268 would be available to the plaintiff in court, including the right to participate in a class234
269269 action.235
270270 (e) The court may provide such equitable relief it deems necessary or proper, including236
271271 invalidating any security instrument in connection with the sale of the real estate property237
272272 at issue executed in violation of the provisions of this article and enjoining the defendants238
273273 from further violations of the provisions of this article.239
274274 (f) In a successful action to enforce the provisions of this article, a court shall award240
275275 plaintiffs costs, including reasonable attorney's fees. When a class of plaintiffs prevails,241
276276 class counsel shall be entitled to the greater of one-third of the class's recovery or the242
277277 number of hours billed at a reasonable hourly rate times a multiplier set by the court in its243
278278 discretion, whichever is greater.244
279279 (g) A person shall not be held liable for damages in any action brought under this article245
280280 if the person shows by a preponderance of the evidence that the violation was not246
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283283 intentional and resulted from a bona fide error notwithstanding the maintenance of247
284284 procedures implemented to avoid such error.248
285285 (h) A cause of action brought under this Code section may be filed in any court of249
286286 competent jurisdiction within this state without regard to the amount in controversy. Such250
287287 cause of action shall be filed within one year from the date on which the violation occurred251
288288 or the date of discovery of the violation, whichever is later.252
289289 (i) This Code section shall not prevent the activities authorized by this article, Chapter 17253
290290 of Title 45, and Code Section 43-40-25.1."254
291291 PART II255
292292 Notarization using electronic means256
293293 SECTION 2-1.257
294294 Article 1 of Chapter 17 of Title 45 of the Official Code of Georgia Annotated, relating to258
295295 general provisions regarding notaries public, is amended by revising Code Section 45-17-9,259
296296 relating to where notarial acts may be exercised, as follows:260
297297 "45-17-9.261
298298 (a) Notarial acts may be exercised in any county in the state, provided that the notary262
299299 public shall be physically located in this state and the notarial act is performed in the263
300300 physical presence of the notary public as provided in subsection (b) of this Code section264
301301 or is performed remotely as provided in subsection (c) of this Code section.265
302302 (b) Any notarial act to be performed in the physical presence of the notary public shall take266
303303 place in the same physical location and at the same time and close enough for the notary267
304304 public to see, hear, communicate with, and exchange tangible identification credentials268
305305 with the individual whose act is being notarized.269
306306 (c) Any notarial act to be performed remotely shall meet the following requirements:270
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309309 (1) The notary public shall use real-time two-way audio-video communication271
310310 technology that allows the parties to see, hear, and communicate with each other and is272
311311 sufficiently secure to prevent interference with the authenticity, integrity, and security of273
312312 the transaction, corruption or loss of the recording of the transaction, and unauthorized274
313313 use of or tampering with the recording, record, and backup record;275
314314 (2) The signatory shall be physically located in the United States or one of its territories276
315315 or military bases or at a United States embassy, consulate, or diplomatic mission location277
316316 and present evidence of his or her identity and location;278
317317 (3) The notary public shall witness the signature;279
318318 (4) The notary public shall document evidence of the acts provided for in paragraphs (1)280
319319 through (3) of this subsection; and281
320320 (5) The notarial act shall not be performed to:282
321321 (A) Create or execute a will, codicil, or testamentary trust; or283
322322 (B) Notarize the signature on any security instrument or document executed for the284
323323 conveyance of real property located in this state, whether or not such security285
324324 instrument or document is recorded, except as provided for in Code Section 15-19-50.2.286
325325 (d) A notary public may use an electronic seal of office to perform a notarial act as287
326326 provided for in subsection (c) of this Code section or to perform an in-person electronic288
327327 notarization in a real estate closing using electronic means as provided for in Code289
328328 Section 15-19-50.2. Such electronic seal of office shall comply with the provisions of290
329329 Code Section 45-17-6."291
330330 SECTION 2-2.292
331331 Said article is further amended by revising Code Section 45-17-20, relating to penalty and293
332332 prosecution of violations of article, as follows:294
333333 S. B. 90
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335335 "45-17-20.
336336 295
337337 (a) Any person who violates subsection (d) of Code Section 45-17-8 shall be guilty of a
338338 296
339339 misdemeanor or performs any notarial act without complying with the provisions of this297
340340 article shall, upon a first or second conviction, be guilty of a misdemeanor; provided,298
341341 however, that, upon a third or subsequent conviction, such person shall be guilty of a299
342342 felony, punishable by imprisonment of not less than one year nor more than five years, a300
343343 fine of up to $5,000.00, or both.301
344344 (b) Any person who performs any notarial service without complying with the provisions302
345345 of this article shall, upon the, including, but not limited to, a notary public, a technology303
346346 provider, a mortgage lender or its affiliates, employees, agents, and attorneys, or an304
347347 attorney or the attorney's employee or agent, that aids or abets another person in violating305
348348 the provisions of this article, including, but not limited to, directing the performance of an306
349349 unauthorized notarial act, shall, upon a first or second conviction, be guilty of a307
350350 misdemeanor and; provided, however, that, upon a third or subsequent conviction, such308
351351 person shall be guilty of a felony, punishable by imprisonment of not less than one year nor309
352352 more than five years, a fine of up to $5,000.00, or both."310
353353 SECTION 2-3.311
354354 Said article is further amended by adding a new Code section to read as follows:312
355355 "45-17-21.313
356356 (a) Any person, including, but not limited to, a notary public, a technology provider, a314
357357 mortgage lender or its affiliates, employees, agents, and attorneys, or an attorney or the315
358358 attorney's employee or agent, that, while participating in a residential or commercial real316
359359 estate closing involving property located in this state, engages in conduct that constitutes317
360360 an unlawful notarial act, knowingly aids and abets another person in committing an318
361361 unlawful notarial act, or otherwise violates the provisions of this article regulating real319
362362 estate transactions shall be liable for damages resulting from such illegal conduct.320
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365365 (b) Any buyer, seller, or borrower that is or was party to a residential or commercial real321
366366 estate closing involving property located in this state in which any person engaged in an322
367367 unlawful notarial act or other violation of the provisions of this article or a class of such323
368368 plaintiffs shall be entitled to maintain a civil action to recover damages. Such damages324
369369 shall include, but not be limited to:325
370370 (1) Actual monetary losses incurred by the plaintiff or class of plaintiffs as a result of a326
371371 violation of the provisions of this article, or $1,000.00 in damages for each such violation,327
372372 whichever is greater;328
373373 (2) Any expenses paid by the plaintiff or class of plaintiffs for the services of any person329
374374 or entity that violated the provisions of this article; and330
375375 (3) De minimis or nominal damages incurred by the plaintiff or class of plaintiffs as a331
376376 result of a violation of the provisions of this article.332
377377 (c) In addition to penalties provided for in this article, if the court finds that the defendant333
378378 willfully or knowingly violated the provisions of this article, the court may, in its334
379379 discretion, increase the award to any amount equal to not more than three times the amount335
380380 available under paragraph (1) of subsection (b) of this Code section.336
381381 (d) When the loan agreement for a real estate transaction contains an arbitration clause and337
382382 the mortgage lender or such lender's agent engages in conduct that constitutes an unlawful338
383383 notarial act, the arbitration clause shall not be enforceable to the extent it restricts or339
384384 excludes damages or remedies that would be available to the plaintiff in court, including340
385385 the right to participate in a class action.341
386386 (e) The court may provide such equitable relief it deems necessary or proper, including342
387387 invalidating any security instrument executed in violation of Code Section 45-17-9 in343
388388 connection with the sale of the real estate property at issue and enjoining the defendants344
389389 from further violations of the provisions of this article.345
390390 (f) In a successful action to enforce the provisions of this article, a court shall award the346
391391 plaintiff costs, including reasonable attorney's fees. When a class of plaintiffs prevails,347
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394394 class counsel shall be entitled to the greater of one-third of the class's recovery or the348
395395 number of hours billed at reasonable hourly rate times a multiplier set by the court in its349
396396 discretion, whichever is greater.350
397397 (g) A cause of action brought under this Code section may be filed in any court of351
398398 competent jurisdiction within this state without regard to the amount in controversy. Such352
399399 cause of action shall be filed within one year from the date on which the violation occurred353
400400 or the date of discovery of the violation, whichever is later."354
401401 PART III355
402402 Effective date and repealer356
403403 SECTION 3-1.357
404404 This Act shall become effective upon its approval by the Governor or upon its becoming law358
405405 without such approval.359
406406 SECTION 3-2.360
407407 All laws and parts of laws in conflict with this Act are repealed.361
408408 S. B. 90
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