The proposed bill would significantly update the current statutes governing earned wage access services in Arizona by introducing a licensing framework for providers, effective January 1, 2026. Providers would be required to obtain a license from the Department of Insurance and Financial Institutions (DIFI) and adhere to detailed application requirements, including business information and financial responsibility documentation. The bill also mandates that providers maintain a surety bond and comply with operational standards, such as consumer complaint handling and fee disclosures. Key prohibitions would be established, including restrictions on sharing fees with employers and requiring credit reports for service eligibility, while clarifying that earned wage access services are not classified as loans or money transmission.

Additionally, the bill would enhance consumer protection by requiring providers to reimburse consumers for overdraft fees caused by their actions, obtain consent for material changes to terms of service, and limit fees for expedited service delivery. New reporting obligations would be introduced, including annual reports detailing transactions and consumer interactions, while maintaining records for at least five years. The bill also allows DIFI to take disciplinary actions against non-compliant providers and updates the definition of "employer" to include independent contractors. Overall, these changes aim to modernize the regulatory framework, promote accountability, and enhance consumer trust 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