Bill > H1119

This bill introduces a comprehensive regulatory framework for Earned Wage Access (EWA) services providers in Massachusetts, establishing a licensing system through the Division of Banks. The bill defines EWA services as a distinct financial service that is not considered a loan, credit, debt, or money transmission, which provides legal clarity and protection for providers. The legislation requires EWA service providers to obtain a license, submit annual reports to the commissioner, and maintain detailed business records that can be inspected by regulatory authorities. The bill outlines specific penalties for non-compliance, with potential fines up to $1,000 for violations, and provides a transition period for existing EWA service providers operating in the commonwealth before January 1, 2025, allowing them to continue operations until July 1, 2026, provided they submit a license application before January 1, 2026. Additionally, the bill stipulates that fees or voluntary tips paid by consumers to EWA providers will not be considered interest or finance charges, and it establishes provisions for confidentiality of investigation records and regulatory oversight. The legislation aims to create a structured and transparent environment for EWA services while protecting both providers and consumers.

Business and Industry

https://malegislature.gov/Bills/194/H1119