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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: COM DPA 5-3-3-0 |
HB 2309: earned wage access; providers; license
Sponsor: Representative Weninger, LD 13
Caucus & COW
Overview
Prescribes requirements for earned wage access services providers (providers), including licensure with the Department of Insurance and Financial Institutions (DIFI).
History
DIFI is responsible for regulating the insurance industry, financial institutions, financial service professionals and business entities. DIFI registers and certifies state-chartered banks and credit unions and licenses financial and insurance professionals, including collection agencies, mortgage brokers, loan originators, premium finance companies and sales finance companies. DIFI conducts examinations on licensees and businesses and investigates fraud, deceptive practices, unprofessional conduct, claim delays and unfair claim settlement practices (Title 6, A.R.S.).
Provisions
Provider Licensure
1. Prohibits a provider, beginning January 1, 2027, located any state, from providing earned wage access services in Arizona unless they have been issued a license by DIFI. (Sec. 3)
2. Requires providers required to be licensed (licensees) to apply for a license on a form and in a manner as prescribed by DIFI. (Sec. 3)
3. Delineates the information that must be included in the application for a provider license. (Sec. 3)
4. Requires licensees to update the information provided in their license application within 15 business days after any material change in that information. (Sec. 3)
5. Requires each licensee to register with and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry. (Sec. 3)
6. Requires licensees to file with DIFI and maintain in force a surety bond that meets specified requirements. (Sec. 3)
7. Authorizes a person that claims against a licensee's bond for a violation of the licensure requirements to maintain an action at law against the provider. (Sec. 3)
8. Limits the surety liability to actual damages which cannot exceed the amount of the bond. (Sec. 3)
9. Provides procedures and requirements for DIFI in issuing or denying a license, including conducting an investigation of the applicant and specified parties relating to the applicant. (Sec. 3)
10. Asserts the provider's license remains in force and effect until DIFI suspends or revokes the license or the provider surrenders the license. (Sec. 3)
11. Requires a licensee to apply for license renewal by December 31 of each year and subjects the applicant to a $25 late fee for each day the renewal application is not received by DIFI. (Sec. 3)
12. Prohibits a licensee from acting as a provider until the license is renewed or a new license is issued. (Sec. 3)
13. Stipulates a provider license automatically expires if DIFI does not receive a renewal application by January 31. (Sec. 3)
14. Prohibits the holder of an expired license from being issued a renewal license. (Sec. 3)
15. Allows the holder of an expired license to be issued a new license. (Sec. 3)
17. Directs providers to conspicuously post the license at its physical place of business, on the provider's website and on any official consumer-facing document, agreement or correspondence. (Sec. 3)
Provider's Requirements
18. Delineates the required policies and procedures to be developed by licensees relating to consumer queries, agreements, fee disclosures, protections, and payments made to consumers. (Sec. 3)
19. Outlines licensee prohibitions relating to fees and gratuities, credit reporting, charging a late fee, compelling payment, and advertising. (Sec. 3)
20. Specifies the restrictions relating to compelling payment does not apply to a provider that is:
a. seeking payment of any outstanding amount or fee that was incurred by a consumer through fraud or other unlawful means that the provider, using reasonably good-faith efforts to determine, reasonably believes are the result of the consumer's conduct; or
b. suing an employer for the employer's breach of the employer's contract with the provider. (Sec. 3)
21. Authorizes a licensee to solicit or receive tips, gratuities or other donations once per transaction and with confirmation of the final transaction on the completion screen. (Sec. 3)
22. Authorizes a licensee to use the mailing address provided by a consumer to verify the consumer's state of residence. (Sec. 3)
Applicability
23. Specifies earned wage access services offered and provided by a licensee in compliance with statutory requirements are not considered:
a. a violation of or noncompliance with statutes governing a sale, assignment or order for earned but unpaid income or other wages;
b. a loan or other form of credit or debt; or
c. money transmissions. (Sec. 3)
24. Adds that fees paid to a licensee in accordance with earned wage access services requirements are not considered interest or finance charges and that the earned wage access services requirements control if there is a conflict with any other statute. (Sec. 3)
25. Specifies a voluntary tip, gratuity or other donation paid by a consumer to a licensee in accordance with the earned wage access services requirements is not considered a finance charge under state law. (Sec. 3)
26. Specifies collection agencies statutes do not apply to proceeds a provider provides to a consumer in accordance with the earned wage access services requirements. (Sec. 3)
27. Excludes, from consumer lender statutes and money transmitter statutes, licensees and earned wage access services transactions. (Sec. 1, 2,)
Reporting Requirements
28. Instructs licensees, by July 1 of each year, to submit an annual report to DIFI that includes outlined information related to earned wage access services. (Sec. 3)
29. Authorizes DIFI to extend the deadline for good cause. (Sec. 3)
30. Allows DIFI to take disciplinary action against a provider for failure to submit a timely annual report. (Sec. 3)
31. Requires licensees to keep such books and records that will enable DIFI to determine compliance with the earned wage access services requirements for at least five years. (Sec. 3)
Miscellaneous
32. Provides the conditions for denial of a license renewal or license suspension or revocation. (Sec. 3)
33. Allows licensees to appeal a denial of a renewal application or suspension or revocation in accordance with the statutory administrative hearing procedures. (Sec. 3)
34. Provides restrictions relating to mergers and acquisition of control. (Sec. 3)
35. Declares failure to comply with earned wage access services requirements is an unlawful practice under the Consumer Fraud statutes and subject to investigation and appropriate action by the Attorney General. (Sec. 3)
36. Authorizes DIFI to adopt rules to implement earned wage access services requirements. (Sec. 3)
37. Defines pertinent terms. (Sec. 3)
38. Makes clarifying changes. (Sec.2)
Amendments
Committee on Commerce
1. Adds a person that delivers earned wage access services and that reports a consumer's payment or nonpayment of any outstanding proceeds, fees and gratuities to a consumer reporting agency to the definition of consumer lender.
2. Permits an applicant who was providing earned wage access services as of January 1, 2026, to continue to provide services if the applicant has applied for a license within six months after the department publishes the application and until the department has processed the application.
3. Removes language allowing the consumer to opt in to different default settings for future transactions relating to the suggested tip.
4. Clarifies a violation of certain statutes governing types of wages do not apply to earned wage access services.
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8. Initials PB HB 2309
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