HB2309 - Earned wage access; providers; license

REFERENCE TITLE: earned wage access; providers; license State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026 HB 2309 Introduced by Representative Weninger AN ACT amending sections 6-602 and 6-1202, Arizona Revised Statutes; amending title 6, Arizona Revised Statutes, by adding chapter 18; relating to banks and financial institutions. (TEXT OF BILL BEGINS ON NEXT PAGE) Be it enacted by the Legislature of the State of Arizona: Section 1. Section 6-602, Arizona Revised Statutes, is amended to read: START_STATUTE 6-602. Exemptions A. This chapter does not apply to: 1. A person who does business under any other law of this state, or any other state while regulated by a state agency of that other state, or of the United States, relating to banks, savings banks, trust companies, savings and loan associations, profit sharing and pension trusts, credit unions, insurance companies or receiverships if the consumer lender loan transactions are regulated by the other law or are under the jurisdiction of a court. 2. A person who is licensed as a pawnbroker pursuant to title 44, chapter 11, article 3 to the extent that the person's activities are governed by that article. 3. A person who is not regularly engaged in the business of making consumer lender loans. 4. A person who is licensed pursuant to chapter 9 of this title to the extent that the person's activities are governed by that chapter. 5. A person who is licensed as an earned wage access provider pursuant to chapter 18 of this title. B. The requirements of this chapter do not apply to: 1. Closed end loans of more than $10,000. 2. Advances on open end revolving loans that are not secured by the consumer's principal residence with an agreed on credit limit of more than $10,000, regardless of the amount of any advances on these revolving loans. 3. Advances on open end revolving loans that are secured by the consumer's principal residence with an agreed on credit limit of more than $10,000, regardless of the amount of any advances on these revolving loans. 4. Consumer lender loans that are lawfully made to nonresidents of the state in any other state under and in accordance with a regulatory consumer lender law similar in principle to this chapter. 5. Educational loans that are either: (a) Made, insured or guaranteed pursuant to a program authorized by the United States, this state or any other state. (b) Made by a nonprofit organization that is exempt from taxation under section 501(c)(3) of the internal revenue code to students who attend postsecondary educational institutions in this state. 6. Earned wage access service transactions and related payments regulated pursuant to chapter 18 of this title. C. A consumer loan made pursuant to a consumer lender license is not a secondary motor vehicle finance transaction as defined in section 44-281. END_STATUTE Sec. 2. Section 6-1202, Arizona Revised Statutes, is amended to read: START_STATUTE 6-1202. Exemptions A. This article does not apply to any of the following: 1. An operator of a payment system that provides processing, clearing or settlement services between or among persons exempted by this section or licensees in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearinghouse transfers , earned wage access service transactions regulated pursuant to chapter 18 of this title or similar transfers of money. 2. A person who is appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission, provided to the payor by the payee, if all of the following apply: (a) A written agreement exists between the payee and the agent directing the agent to collect and process payments from payors on the payee's behalf. (b) The payee holds the agent out to the public as accepting payments for goods or services on the payee's behalf. (c) Payment for the goods and services is treated as received by the payee on receipt by the agent so that the payor's obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the money to the payee. 3. A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender and the sender's designated recipient, if the entity meets all of the following criteria: (a) Is properly licensed or exempt from the licensing requirements under this article. (b) Provides a receipt , electronic record or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction. (c) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender , including the obligation to make the sender whole in connection with any failure to transmit the money to the sender's designated recipient. 4. The United States or a department, an agency or an instrumentality of the United States or its agent. 5. Money transmission by the United States postal service or by an agent of the United States postal service. 6. A state, county, city or town or any other governmental agency or governmental subdivision or instrumentality of a state or its agent. 7. A federally insured depository financial institution , a bank holding company, an office of an international banking corporation, A foreign bank that establishes a federal branch pursuant to 12 United States Code section 3102 , a corporation organized as a bank service company pursuant to 12 United States Code sections 1861 through 1867 or a corporation organized pursuant to 12 United States Code sections 611 through 633. 8. An electronic funds transfer of governmental benefits for a federal, state, county or governmental agency by a contractor on behalf of the United States or a department, agency or instrumentality of the United States or on behalf of a state or governmental subdivision, agency or instrumentality of a state. 9. A board of trade that is designated as a contract market under the commodity exchange act (7 United States Code sections 1 through 2 6 27 f) or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for the board of trade. 10. A registered futures commission merchant under the federal commodities laws to the extent of its operation as a merchant. 11. A person who is registered as a securities broker or dealer under federal or state securities laws to the extent of the person's operation. 12. An individual that is employed by a licensee, an authorized delegate or any person exempt from the licensing requirements of this article when acting within the scope of employment and under the supervision of the licensee, authorized delegate or exempt person as an employee and not as an independent contractor. 13. A person that is expressly appointed as a third-party service provider to or agent of an entity exempt under paragraph 7 of this subsection solely to the extent that both: (a) The service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform. (b) The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations on receipt of the purchaser's or holder's money or monetary value by the service provider or agent. 14. A person that is exempt by regulation or order if the director finds such exemption to be in the public interest and that regulating the person is not nece ssary for the purposes of this article. B. The director may require that any person claiming to be exempt from licensing pursuant to this section provide information and documentation to the director demonstrating that the person qualifies for any claimed exemption. END_STATUTE Sec. 3. Title 6, Arizona Revised Statutes, is amended by adding chapter 18, to read: CHAPTER 18 EARNED WAGE ACCESS ARTICLE 1. GENERAL PROVISIONS START_STATUTE 6-1801. Definitions In this chapter, unless the context otherwise requires: 1. "business entity" means any corporation, limited liability company, partnership, association or other commercial entity. 2. "consumer" means an individual who resides in this state. 3. "consumer-directed wage access services" means delivering to consumers access to earned but unpaid income that is based on the consumer's representations and the provider's reasonable determination of the consumer's earned but unpaid income. 4. "earned but unpaid income" means salary, wages, compensation or other income that a consumer or an employer has represented and that a provider has reasonably determined has been earned or accrued to the benefit of the consumer in exchange for the consumer's services to the employer or on behalf of the employer, includING: ( a ) On an hourly, project-based, piecework or other basis. ( b ) Circumstances in which the consumer is acting as an independent contractor of the employer, but has not, at the time of the payment of proceeds, been paid to the consumer by the employer. 5. "earned wage access services" means providing consumer-directed wage access services or employer-integrated wage access services, or both. 6. "employer": ( a ) means a person that employs a consumer or any other person that is contractually obligated to pay a consumer earned but unpaid income in exchange for the consumer's provision of services to the person or on behalf of the person, including: ( i ) On an hourly, project-based, piecework or other basis. ( ii ) Circumstances in which the consumer is acting as an independent contractor. ( b ) does not include: ( i ) a customer of the person . ( ii ) any other person whose obligation to make a payment of salary, wages, compensation or other income to a consumer is not based on the provision of services by that consumer for or on behalf of the person. 7. "employer-integrated wage access services" means delivering to consumers access to earned but unpaid income that is based on employment, income or attendance data obtained directly or indirectly from an employer. 8. "fee": ( a ) means a fee that is imposed by a provider for delivery or expedited delivery of proceeds to a consumer or a subscription or membership fee that is imposed by a provider for a bona fide group of services that includes earned wage access services. ( b ) does not include: ( i ) voluntary tips. ( ii ) gratuities. ( iii ) other donations. 9. "licensee" means a business entity that is licensed by the department under section 6-1802 as a provider. 10. "nationwide mortgage licensing system and registry" means a MORTGAGE licensing system DEVELOPED and maintained by a conference of state bank supervisors and an American association of residential mortgage regulations for the state licensing and registration of licensed loan originators and REGISTERED loan originators or such a system established by the director of the United states bureau of consumer financial protection. 11. "Outstanding proceeds" means proceeds that were remitted to a consumer by a provider and have not yet been repaid to that provider. 12. "proceeds" means a payment in United States dollars to a consumer by a provider that is based on earned but unpaid income. 13. "provider": ( a ) means a business entity that provides earned wage access services to consumers. ( b ) does not include: ( i ) a service provider, such as a payroll service provider, whose role may include verifying the available earnings but that is not contractually obligated to fund proceeds delivered as part of an earned wage access service. ( ii ) an employer that offers a portion of salary, wages or compensation directly to its employees or independent contractors before the normally scheduled pay date. ( iii ) A business entity that offers or provides earned wage access services and that reports a consumer's payment or nonpayment of any outstanding proceeds, fees, voluntary gratuities or other voluntary donations that are attributable to earned wage access services to a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis as defined in the Fair Credit Reporting Act (P.L. 90-321; 84 stat. 1128; 15 united states code section 1681 a ( p )). END_STATUTE START_STATUTE 6-1802. License; application; fees; bond; definitions A. Beginning January 1, 2027, A provider, whether located in this state or in another state, may not provide earned wage access services in this state unless the provider has been issued a license by the department. B. A provider that is required to be licensed under this section shall apply for a license on a form and in a manner as prescribed by the department. The application shall include all of the following information: 1. The name of the provider. 2. The name under which the provider transacts business, if different from paragraph 1 of this subsection. 3. The address of the provider's principal office, which may be outside of this state. 4. The addresses of all of the provider's offices or retail stores, if any, located in this state. 5. If the provider provides earned wage access services at a location that is not an office or retail store in this state, a description of the manner in which the provider provides earned wage access services and the provider's website uniform resource locator. 6. The address of the provider's designated agent on whom service of process may be made in this state. 7. The provider's federal employer identification number. 8. a fee schedule that includes a complete description of all the fees that the PROVIDER CHArGES or may CHARGE to provide access to earned wages. 9. Documentation or other information that demonstrates the character, general fitness and financial responsibility of the following, as applicable: ( a ) The applicant. ( b ) The applicant's partners if the provider is a partnership. ( c ) The applicant's managers and members if the provider is a limited liability company or association. ( d ) The applicant's officers and directors if the provider is a corporation. 10. Any other information the department requires to administer this chapter. C. In addition to the application under subsection b of this section, each licensee shall register with and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry. D. A provider that is required to be licensed under this section shall update any information provided in its license application within fifteen business days after any material change in t [Text truncated for display. Full text available on LegiScan.]