Bill > HB1393

This bill establishes a comprehensive regulatory framework for earned wage access providers (companies that allow workers to access their earned but unpaid wages before their regular payday) in North Dakota. The legislation creates a new chapter in the state's legal code that requires these providers to obtain a license from the Department of Financial Institutions, maintain a minimum net worth of $25,000, submit to background checks, and maintain a $50,000 surety bond. The bill defines key terms like "consumer-directed wage access services" and sets strict requirements for how these providers can operate, including mandating at least one no-cost option for workers to access their wages, prohibiting credit reporting or debt collection practices, and creating a statewide database to track transactions. Providers are prohibited from charging late fees, using credit reports to determine eligibility, or compelling payment through lawsuits or collection agencies. The legislation also establishes penalties for non-compliance, including potential felony charges for operating without a license, and provides protection for consumers by ensuring voluntary nature of tips and donations. The law is set to take effect on January 1, 2025, with a six-month window for existing providers to apply for licensing, and aims to regulate a growing financial technology sector that offers alternative payroll services.