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2023 SESSION

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SB 1217 Earned wage access services; the Bureau of SCC to conduct stakeholder process.

Introduced by: T. Montgomery "Monty" Mason | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED SENATE:

Financial institutions; earned wage access services; stakeholder process; report. Directs the Bureau of Financial Institutions of the State Corporation Commission to convene a stakeholder process regarding the provision or offering of earned wage access services that includes representatives from providers of earned wage access services, consumer advocates, and the Office of the Attorney General. The bill requires the Bureau of Financial Institutions to report its findings and recommendations by November 1, 2023.

SUMMARY AS INTRODUCED:

Financial institutions; earned wage access services; licensure requirements; penalties. Prohibits any person from providing earned wage access services without first obtaining a license from the State Corporation Commission. The bill defines "earned wage access services" as the business of delivering proceeds to consumers prior to the date on which an obligor is obligated to pay such consumer's salary, wages, compensation, or other income to the consumer. The bill provides for qualifications for licensure, posting of a bond, annual fees, recordkeeping, reporting, and disclosure requirements. The bill authorizes the Commission to investigate and examine applicants and licensees, to suspend and revoke licenses, and to impose a civil penalty of up to $1,000 for violations of the earned wage access services provisions. The bill provides that any person who engages in earned wage access services without having first obtained a license from the Commission is guilty of a Class 1 misdemeanor. The bill licensure requirements have a delayed effective date of January 1, 2025 and the bill requires any person required to be licensed by the Commission to engage in earned wage access services to submit an application for licensure no later than October 1, 2024.