summary
Introduced
01/21/2025
01/21/2025
In Committee
02/28/2025
02/28/2025
Crossed Over
02/25/2025
02/25/2025
Passed
03/13/2025
03/13/2025
Dead
Signed/Enacted/Adopted
03/25/2025
03/25/2025
Introduced Session
2025 General Session
Bill Summary
General Description: This bill enacts the Earned Wage Access Services Act.
AI Summary
This bill establishes the Earned Wage Access Services Act, which creates a regulatory framework for providers offering early access to earned wages. The bill defines key terms such as "earned wage access services" as payments to consumers based on their representation of earned but unpaid income, and establishes a registration process for providers through the Division of Consumer Protection. Providers must register annually, submit to background checks, and comply with strict consumer protection requirements, including clear fee disclosures, offering at least one no-fee fund transfer option, and allowing consumers to cancel services without penalty. The law prohibits providers from using aggressive collection tactics, charging interest or penalties for non-payment, using credit scores to determine eligibility, or conditioning services on tips or donations. Providers are exempt from certain financial regulations but must follow privacy and information security laws. The Division of Consumer Protection is empowered to enforce the act, with the ability to impose administrative fines up to $2,500 per violation, bring court actions, and potentially revoke a provider's registration for various infractions, such as fraudulent activities or failure to meet regulatory requirements. The bill aims to protect consumers while providing a regulated framework for innovative wage access services, with an effective date of May 7, 2025.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Governor Signed in Lieutenant Governor's office for filing (on 03/25/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
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