Bill
HB 5569
If HB 5558 becomes law, earned wage access providers would be licensed and regulated under a dedicated framework and exempt from Michigan’s criminal usury penalties.
Federal/State Context: This bill amends the criminal usury statute (1968 PA 259, MCL 438.41–438.42) to create a specific exemption for earned wage access services, tying its effective date to HB 5558 (Earned Wage Access Services Act).
Main Purpose and Intent
- To exempt licensed earned wage access services from Michigan’s criminal usury framework. In short, when licensed under the Earned Wage Access Services Act, these services would not be subject to the state’s criminal usury prohibitions.
Key Provisions and Changes
- Exemption: Sec. 1a states that the criminal usury act does not apply to business transacted under a license issued pursuant to the Earned Wage Access Services Act (the licensing regime created by HB 5558).
- Tie Bar: The exemption only takes effect if HB 5558 is enacted into law. HB 5569’s operation is contingent on HB 5558’s passage.
- Related Structure (from the companion package): HB 5558 would create a comprehensive licensing regime for earned wage access services, including:
- Definitions for consumer-directed and employer-integrated wage access.
- Licensing requirements, application process, and penalties.
- License fees, surety bonds ($50,000), annual renewals, and non-transferability.
- Consumer protections (fee disclosures, cancellation rights, privacy, no penalties for nonpayment, no coercive collection practices, no tying of tips to access).
- Prohibitions on sharing fees with employers, using credit scores for eligibility, and certain fee mechanics.
- Reporting, recordkeeping, complaint handling, and DIFS enforcement powers (cease-and-desist, suspension, revocation, fines).
- Administrative procedures and costs of interstate investigations.
- Exemption broadening for the wage access sector in related acts (to avoid overlapping regulation).
- Enforcement and Penalties: Under HB 5558 family, violations could trigger fines ($1,000–$10,000 per violation), potential misdemeanor penalties, and orders affecting licensees and executives.
- Fiscal Impact Context: The fiscal note for HB 5558 indicates indeterminate costs to DIFS (licensing, enforcement) and potential revenue from fees and fines, with allocations to the state treasury.
Who Is Affected
- Intended: Earned wage access service providers (licensees) operating in Michigan, whether consumer-directed or employer-integrated.
- Consumers: Michigan residents who use earned wage access services.
- Employers: Entities that participate in or provide data for employer-integrated wage access.
- Regulated Entities Exemptions: Banks, credit unions, savings institutions, payroll service providers not contractually funding proceeds, and certain credit-report disclosures, among others, would be exempt from the licensing regime.
Procedural and Timeline Aspects
- Origination/Referral: Introduced February 24, 2026, referred to Regulatory Reform.
- Effective Date: Not applicable unless HB 5558 is enacted; if HB 5558 passes, HB 5569’s exemption would take effect for earned wage access activity under that act.
- Sunset/Continuity: The exemption is a statutory carve-out; it does not establish a sunset but hinges on HB 5558’s enactment.
Impact Outlook
- If HB 5558 becomes law, earned wage access providers would operate under a dedicated licensing framework with consumer protections, while being shielded from criminal usury penalties.
- The arrangement aims to formalize, regulate, and supervise a growing wage-access market, potentially improving transparency and consumer protections, but it would introduce compliance costs and regulatory oversight for providers.
Compiled from official sources — confirm details with the bill’s official record.
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