The proposed bill would significantly update current statutes regarding earned wage access services in Arizona by establishing a licensing framework for providers, effective January 1, 2026. Under the new provisions, no provider can offer these services without a license from the Department of Insurance and Financial Institutions (DIFI). The bill introduces detailed application requirements, including a fee schedule, a surety bond, and an investigation of the applicant's character and financial responsibility. It also mandates operational requirements such as consumer complaint procedures, clear fee disclosures, and the ability for consumers to cancel services without penalties. Additionally, it prohibits practices like sharing fees with employers and requiring credit reports for service eligibility.

Moreover, the bill enhances consumer protections by requiring providers to reimburse consumers for overdraft fees caused by the provider's actions, obtain consent for material changes to terms of service, and limit fees for expedited delivery of proceeds. It also introduces new reporting obligations for providers, including annual reports detailing transactions and claims, while removing confidentiality provisions for these reports. The bill clarifies that earned wage access services are not classified as loans or money transmissions, thereby exempting them from certain financial regulations. Overall, these updates aim to ensure transparency, accountability, and consumer protection in the earned wage access industry.

Statutes affected:
Introduced Version: 6-126, 6-602, 6-1202, 44-281
Senate Engrossed Version: 6-602, 6-1202, 44-281