Bill > HB59

This bill establishes the Earned Wage Access Services Act, creating a comprehensive regulatory framework for companies that provide early access to earned wages in New Mexico. The bill requires providers of such services to obtain a license from the state's Financial Institutions Division, with an initial application fee up to $1,000 and annual renewal fees up to $500. Providers must meet specific requirements, including maintaining at least $30,000 in financial resources, developing consumer complaint procedures, and offering at least one no-cost option for accessing wages. The act prohibits providers from charging excessive fees (no more than $7.50 per transaction), reporting consumers to credit agencies, or requiring credit checks. Providers must also clearly disclose all fees and terms, allow consumers to cancel services at any time, and cannot share fee information with employers. The bill mandates annual reporting to the state, including aggregate data on transactions, revenues, and consumer interactions. Violations can result in license suspension or revocation, and individuals found in violation may face petty misdemeanor charges with fines between $500 and $1,000. The law provides exclusive state jurisdiction over earned wage access services and exempts banks, credit unions, and certain financial institutions from licensing requirements. The provisions will apply to providers licensed on or after October 15, 2025.

Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=59&year=25