WeVote
Log In

Bill

Bill

HB 59

EARNED WAGE ACCESS SERVICES ACT

2025 Regular Session Introduced by Micaela Cadena and 2 co-sponsors

The act requires EWA providers to be licensed and supervised, with consumer disclosures, fee limits, and reporting, to regulate access to earned wages.

action postponed indefinitely
#business&industry #crimes&penalties #licensure
0
WeVote Research Nonpartisan
Bill Summary · HB 59

Summary — HB 59: Earned Wage Access Services Act (EWASA)

Status: Action postponed indefinitely (most recent procedural note)
Introduced: August 15, 2025
Subjects: Business & Industry; Crimes & Penalties; Licensure

Main purpose

Create a regulatory framework requiring earned wage access (EWA) providers to be licensed and supervised, and to impose consumer‑protection, reporting, and operational standards for companies that allow workers to access wages they have earned but not yet been paid.

Key provisions

  • Establishes an Earned Wage Access Services Act and gives the Financial Institutions Division (FID) of the Regulation & Licensing Department authority to license, examine, investigate, and enforce requirements for EWA providers.
  • Licensing and supervisory requirements include:
    • License application and background information;
    • Minimum operating capital and financial reporting;
    • Annual license renewals and periodic examinations;
    • Consumer disclosures and recordkeeping/reporting obligations.
  • Fee limits and rulemaking:
    • The bill caps allowable fees on EWA transactions at $7.50 per transaction (Section cited in fiscal analysis).
    • Prohibits using voluntary tips/gratuities to determine eligibility.
  • Offsets and classifications:
    • The bill specifies that EWA transactions are not classified as loans or credit under the bill text (though regulators raised concerns about that characterization).
  • Exemptions:
    • Banking corporations, savings & loan associations, and credit unions chartered under federal/state law are exempt from the licensing requirement.
    • Providers operating before October 15, 2025, are exempt from the new licensing requirement.
  • Enforcement: FID may examine providers and collect examination fees.

Consumer protections and concerns raised

  • Required consumer disclosures and limits on fee structures are intended to reduce harm from high‑cost advances.
  • The Regulation & Licensing Department (FID) noted the bill’s non‑classification of EWA as credit conflicts with federal Consumer Financial Protection Bureau analyses that characterize EWA advances as credit-like transactions.
  • Fiscal/consumer‑impact concern: a flat $7.50 fee yields very high effective APRs on small advances (examples provided in fiscal note: ~$36% APR on a $1,080 advance weekly; ~77.5% APR on $500; ~154% APR on $250), potentially regressive for low‑income users.

Fiscal & administrative impact

  • Fee revenue ceilings (up to $1,000 application fee; up to $500 new/renewal; up to $200 annual exam) — actual revenue indeterminate and likely minimal, depending on how many providers seek licenses.
  • FID flagged potential staffing and process issues (paper renewals, need to integrate with NMLS) if licensing volume is high.
  • The bill may have an indeterminate fiscal impact on the General Fund and on FID operations.

Who is affected

  • EWA companies (e.g., payroll‑advance platforms) that begin licensing on/after Oct 15, 2025;
  • Consumers/employees who use EWA products;
  • Financial Institutions Division / Regulation & Licensing Department (new regulatory duties);
  • Banks/credit unions (exempt) and providers operating before Oct 15, 2025 (exempt).

Timeline / Effective date

  • The bill text lacked a specific effective date; default rule would make it effective 90 days after adjournment (reference in fiscal note: June 20, 2025 example). Many provisions are stated to apply to licenses issued on or after October 15, 2025.
  • Current legislative status: action postponed indefinitely.

If you want, I can produce a side‑by‑side comparison of this bill’s consumer protections with CFPB guidance and other state EWA statutes.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.