,,ib ,union ,calendar ,no4 #fij #aaith ,,congress #b;d ,session ,h4 ,r4 #iccj ,report ,no4 #aai-gij ,,in ,,the ,,house ,,of ,,representatives ,june #ah1 #bjbf,mr4 ,steil introduced the following bill2 which was referred to the ,committee on ,financial ,services ,september #a1 #bjbf,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed,strike out all after the enacting clause and insert the part printed in italic,for text of introduced bill1 see copy of bill as introduced on ,june #ah1 #bjbf ,a ,,bill ,to regulate the business of offering and providing earned wage access services to consumers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,earned ,wage ,access ,consumer ,protection ,act4 #b4 ,earned wage access services 7a7 ,provision of earned wage access services 7#a7 ,no-cost option required 7,a7 ,in general ,if an earned wage access provider offers a consumer the option to receive earned wages in exchange for a fee1 such earned wage access provider shall also offer such consumer the option to obtain the same amount of earned wages at no cost to the consumer4 7,b7 ,transfer time period ,if a consumer elects the no-cost option described in subparagraph 7,a71 the earned wage access provider shall initiate the transfer of earned wages to the consumer within one business day of such election4 7,c7 ,no effect on earned wages ,a consumer's election of the no-cost option described in subparagraph 7,a7 may not impact-- 7i7 the amount of earned wages disbursed to such consumer2 7ii7 the frequency with which such earned wages are disbursed to such consumer2 or 7iii7 the consumer's eligibility to use the provider's earned wage access services4 7#b7 ,required disclosures 7,a7 ,disclosures preceding agreement ,each earned wage access provider shall disclose the following before entering into an agreement with a consumer3 7i7 ,any limits on access to the earned wages a consumer may request from such provider1 including-- 7,i7 any limits on the amount of earned wages a consumer may request from the provider each day1 pay period1 or other time period2 7,,ii7 any limits on the frequency or number of disbursements of earned wages a consumer may request from the provider each day1 pay period1 or other time period2 and 7,,iii7 any limits on the amount of earned wages a consumer may request from the provider that are based on a determination by the provider of the ratio between the amount of earned wages requested by the consumer and the total wages earned by the consumer1 and how such determination is made4 7ii7 ,any fees that such provider may apply1 and the amount of such fees4 7iii7 ,a clear and conspicuous description of how the consumer may obtain earned wages without paying a fee or tip4 7iv7 ,an overview of such provider's use of tips that describes-- 7,i7 whether such provider will accept tips from the consumer and in what amounts2 and 7,,ii7 whether such provider will suggest the consumer provide tips and in what amounts4 7,b7 ,disclosures preceding disbursement of earned wages ,each earned wage access provider shall disclose the following in a clear and conspicuous manner after approving any request from a consumer for access to earned wages but before disbursing such earned wages to such consumer3 7i7 ,the account number such provider has assigned to the consumer1 if applicable4 7ii7 ,the amount of earned wages that will be provided to the consumer by such provider4 7iii7 ,the total amount of any fees applied by such provider for such transaction4 7iv7 ,a list of any tips the consumer has chosen to provide for such transaction4 7v7 ,the amount that such provider expects to receive as payment after disbursing the earned wages1 the date on which such provider expects to receive such amount or a description of when such provider expects to receive such amount1 and the manner in which such provider expects to receive such amount4 7,c7 ,additional disclosures relating to fees and tips ,each earned wage access provider who1 during a calendar year1 has disbursed earned wages and received a fee or tip from a consumer shall provide the consumer ongoing access to the following disclosures3 7i7 ,the total amount of fees and tips that the consumer has already paid in the then-current pay period4 7ii7 ,the total amount of fees and tips that the consumer has already paid in the calendar year-to-date4 7,d7 ,additional disclosures relating to tips ,if an earned wage access provider solicits1 charges1 or receives a tip from a consumer1 such provider-- 7i7 shall clearly and conspicuously disclose to the consumer1 before the provider commences the transaction to which the tip is related1 that such tip-- 7,i7 is voluntary2 7,,ii7 is not a requirement for receiving earned wage access services2 and 7,,iii7 will not impact-- 7aa7 the amount of such earned wages2 7bb7 the frequency with which such earned wages are disbursed to such consumer2 or 7cc7 the consumer's eligibility to use the provider's earned wage access services2 7ii7 may not state that such tip will benefit-- 7,i7 any specific individual2 or 7,,ii7 any group of individuals other than the provider itself2 and 7iii7 may describe1 in general terms1 the benefits or services offered by such provider to consumers4 7,e7 ,changes to terms ,each earned wage access provider shall notify each consumer with which such earned wage access provider has entered an agreement to offer earned wage access services of any material changes to the terms and conditions of service used by such provider not less than-- 7i7 #cj days before such material changes take effect2 or 7ii7 a shorter amount of time before such material changes take effect1 if the consumer has consented to such shorter amount of time4 7#c7 ,consumer attestation before receiving earned wages ,each earned wage access provider shall require a consumer1 prior to the first disbursement of earned wages during each applicable pay period1 to attest that the consumer has not requested disbursement of the same earned wages from another earned wage access provider during that pay period4 7#d7 ,cancellation of services ,if an earned wage access provider makes earned wage access services available to a consumer on a recurring basis1 such earned wage access provider-- 7,a7 shall allow such consumer to discontinue such services if such consumer provides notice to such earned wage access provider that such consumer desires to discontinue such services2 and 7,b7 may not impose any financial penalty or cancellation charge on such consumer as a result of any discontinuation of services4 7#e7 ,dispute process required ,each earned wage access provider shall develop and implement policies and procedures to respond to questions and complaints from consumers relating to-- 7,a7 unauthorized disbursement of earned wages2 7,b7 disbursement of earned wages in an incorrect amount2 7,c7 disbursed earned wages that were not received2 7,d7 payment of disbursed earned wages that was not received or was made in an incorrect amount2 and 7,e7 fees or tips that were not authorized or were made in an incorrect amount4 7#f7 ,compelling payment for disbursed earned wages 7,a7 ,in general ,an earned wage access provider may not seek payment for earned wages disbursed by such provider to a consumer1 including such disbursed earned wages1 or any related fees or tips1 by-- 7i7 filing a civil suit against the consumer2 7ii7 initiating arbitration proceedings against the consumer2 7iii7 using the services of a debt collector 7as such term is defined in section #hjc of the ,fair ,debt ,collection ,practices ,act7 to collect amounts from the consumer2 or 7iv7 selling expected payment to a third-party debt buyer for purposes of debt collection from the consumer4 7,b7 ,exception ,subparagraph 7,a7 shall not apply if an earned wage access provider is seeking payment for earned wages disbursed to a consumer based on information provided by the consumer that the consumer knew was false4 7#g7 ,reimbursement required ,if an earned wage access provider seeks payment of disbursed earned wages1 a fee1 or a tip directly from a deposit account of a consumer1 on a date earlier than1 or in an amount different from1 what was disclosed at the time of authorization and such attempt triggers an overdraft fee or non-sufficient funds fee from the consumer's financial institution 7as defined in section #eji of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhji771 the earned wage access provider shall reimburse such consumer for such fee4 7#h7 ,additional limitations ,an earned wage access provider may not-- 7,a7 share any fees or tips that were received from or charged to a consumer for earned wage access services with the employer of such consumer2 7,b7 accept payment of disbursed earned wages1 fees1 or tips from a consumer through a credit card of the consumer1 unless such credit card is provided to the consumer as a part of the earned wage access service2 7,c7 require a consumer to pay a late fee1 deferral fee1 interest1 or any other penalty or charge as a result of a failure by the consumer to pay disbursed earned wages1 fees1 or tips requested or applied by such provider2 or 7,d7 furnish information to a consumer reporting agency 7as defined in section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a77 about a consumer's earned wage access services activities4 7#i7 ,disclosure to employer ,an earned wage access provider may disclose to an employer with which such provider has a contract relating to earned wage access services the date and amount of a consumer's earned wage access transactions associated with the earned wage access services4 ,subject to applicable privacy laws1 a provider may disclose information necessary to perform under a contract with an employer relating to additional products or services4 7#aj7 ,non-discrimination 7,a7 ,in general ,it shall be unlawful for any earned wage access provider to discriminate against any consumer on the basis of race1 color1 religion1 national origin1 sex 7including on the basis of pregnancy1 childbirth1 or related medical conditions71 marital status1 or age when offering earned wage access services4 7,b7 ,definitions ,in this paragraph-- 7i7 the terms race1 color1 religion1 national origin1 sex1 marital status1 and age have the same meanings1 respectively1 as used in section #gja of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia7 and rules issued thereunder2 and 7ii7 the terms pregnancy1 childbirth1 and related medical conditions have the same meanings1 respectively1 as used in section #gja7k7 of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e7k774 7#aa7 ,consumer data protections ,each earned wage access provider shall be deemed a financial institution for purposes of subtitle ,a of title ,v of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhja et seq474 7#ab7 ,default tip amount 7,a7 ,in general ,an earned wage access provider may not set any default tip amount greater than #j in connection with earned wage access services4 7,b7 ,selection of #j tip ,if a consumer selects a tip amount of #j1 the earned wage access provider may not require the consumer to confirm1 reconfirm1 or otherwise take any additional action with respect to such tip selection as a condition of completing the transaction4 7,c7 ,rule of construction ,nothing in this paragraph may be construed to prohibit the provider from requiring the consumer to confirm the final transaction on a completion screen4 7#ac7 ,earned ,wage ,access ,provider ,attestation ,before each requested disbursement of earned wages for a consumer1 an earned wage access provider shall verify and attest to the consumer that the amount to be disbursed1 together with any prior disbursements during the applicable pay period1 does not exceed the amount of earned wages actually earned and available to the consumer for that applicable pay period4 7b7 ,relation to ,state laws 7#a7 ,preservation of ,state law ,except as provided in paragraph 7#b71 nothing in this ,act may be construed as annulling1 altering1 affecting1 or exempting any person from complying with any ,state law1 except to the extent that a ,state law is inconsistent with the provisions of this ,act1 and then only to the extent of the inconsistency4 7#b7 ,preemption ,no ,state or political subdivision thereof may impose1 maintain1 or enforce any laws1 constitutions1 statutes1 regulations1 orders1 or interpretations with respect to earned wage access services that comply with this ,act that-- 7,a7 treat such services as credit1 a loan1 debt1 or a substantially similar product or service2 7,b7 treat a provider of such services as a creditor1 lender1 or provider of a substantially similar product or service2 or 7,c7 prevent or significantly interfere with the offering or provision of earned wage access services that comply with this ,act4 7#c7 ,savings clause ,nothing in this ,act may be construed to preempt1 displace1 or limit the authority of a ,state or political subdivision thereof to enforce laws of general applicability1 including laws relating to fraud1 deceit1 unfair or deceptive acts or practices1 contracts1 property1 or taxation4 7c7 ,rulemaking ,not later than #ahj days after the date of enactment of this ,act1 the ,bureau shall issue such rules as are necessary to carry out this ,act4 7d7 ,rule of construction ,earned wage access services provided in compliance with this ,act1 and any fees or tips received in connection with such services1 may not be considered credit1 a loan1 debt1 an obligation1 liability1 or consumer credit1 and a person providing such services shall not be considered a creditor or lender1 and such fees or tips shall not be considered interest or a finance charge1 under ,federal law4 7e7 ,definitions ,in this section3 7#a7 ,bureau ,the term ,bureau means the ,bureau of ,consumer ,financial ,protection4 7#b7 ,consumer ,the term consumer means a natural person4 7#c7 ,earned wages 7,a7 ,in general ,the term earned wages means salary1 wages1 compensation1 or other income that a consumer or an employer has represented and that an earned wage access provider has reasonably determined have been earned or have accrued to the benefit of the consumer in exchange for the services provided by the consumer1 but that have not yet been paid to the consumer by an employer4 7,b7 ,services provided ,services provided by the consumer include any services provided-- 7i7 on an hourly1 project-based1 piecework1 salaried1 or other basis2 or 7ii7 when the consumer is acting as a contractor of the employer4 7#d7 ,earned ,wage ,access ,provider 7,a7 ,in general ,the term earned wage access provider means a person who provides earned wage access services to consumers4 7,b7 ,exclusions ,the term earned wage access provider does not include-- 7i7 a person who is not obligated to provide access to earned wages as part of an earned wage access service2 7ii7 an employer that offers a portion of salary1 wages1 or compensation earned by a consumer directly to such consumer prior to a normally scheduled pay date or as such wages are accrued1 irrespective of any scheduled periodic pay cycle2 7iii7 a financial institution 7as defined in section #eji of the ,gramm-,leach-,bliley ,act7 that permits a consumer to access amounts associated with an electronic fund transfer from the consumer's employer or a payroll services vendor of the employer for which the financial institution has received information but which has not yet settled2 or 7iv7 a payroll service vendor in its capacity as a facilitator of wage payments to a consumer by an employer1 exclusive of any earned wage access services that such vendor may provide4 7#e7 ,earned wage access services ,the term earned wage access services means the delivery of earned wages to a consumer based on-- 7,a7 employment1 income1 or attendance data obtained directly or indirectly from the employer of such consumer or a payroll service vendor1 or other vendors1 contracted by the employer of such consumer2 or 7,b7 representations made by the consumer and the reasonable determination of the earned wages of such consumer by an earned wage access provider1 based on information made available or accessible to the provider by the consumer4 7#f7 ,employer ,the term employer-- 7,a7 means a person who employs a consumer1 or any other person who is contractually obligated to pay a consumer salary1 wages1 compensation1 or other income in exchange for services provided to the person or on the person's behalf2 and 7,b7 does not include-- 7i7 a customer of a person2 or 7ii7 a person whose obligation to pay salary1 wages1 compensation1 or other income to a consumer is not based on the services provided for or on behalf of that person4 7#g7 ,fee ,the term fee means-- 7,a7 a fee for delivery1 or expedited delivery1 of proceeds to a consumer2 or 7,b7 a subscription1 participation1 or membership fee for earned wage access services or a group of services that includes earned wage access services4 7#h7 ,payroll service vendor ,the term payroll service vendor means a vendor contracted directly or indirectly by an employer to facilitate payment of employee wages in accordance with ,federal1 ,state1 and local law1 including the ,fair ,labor ,standards ,act of #aich1 or to provide or verify employment1 income1 or attendance data4 7#i7 ,tip ,the term tip means any gratuity1 donation1 or other voluntary payment that is-- 7,a7 made by a consumer to an earned wage access provider2 7,b7 provided gratuitously and without any consequence for nonpayment2 7,c7 not subject to negotiation1 and 7,d7 in an amount determined by the consumer4 7#aj7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 and any territory of the ,united ,states4 #c4 ,conforming amendments 7a7 ,consumer ,financial ,protection ,act of #bjaj ,section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha7 is amended-- 7#a7 in paragraph 7#ab7-- 7,a7 in subparagraph 7,q71 by striking and at the end2 7,b7 in subparagraph 7,r71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,s7 the ,earned ,wage ,access ,consumer ,protection ,act4 2 and 7#b7 in paragraph 7#ae77;,a7-- 7,a7 by redesignating clauses 7x7 and 7xi7 as clauses 7xi7 and 7xii71 respectively2 and 7,b7 by inserting after clause 7ix7 the following3 7x7 providing earned wage access services1 as defined in section #b of the ,earned ,wage ,access ,consumer ,protection ,act2 4 7b7 ,truth in ,lending ,act ,section #ajc of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb7 is amended-- 7#a7 in subsection 7f71 by striking defer its payment and inserting defer its payment1 but does not include earned wage access services as defined in the ,earned ,wage ,access ,consumer ,protection ,act2 and 7#b7 in subsection 7g71 by adding at the end the following3 ,the term creditor does not include earned wage access providers as such term is defined in the ,earned ,wage ,access ,consumer ,protection ,act44 ,september #a1 #bjbf,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed