The proposed bill would significantly update current statutes governing earned wage access services in Arizona by introducing a licensing requirement for providers, effective January 1, 2026. Providers would be prohibited from offering services without a license from the Department of Insurance and Financial Institutions (DIFI), which would require detailed applications, including a fee schedule and a surety bond. The bill also establishes operational requirements, such as consumer complaint procedures and clear fee disclosures, while prohibiting practices like sharing fees with employers and requiring credit reports for service eligibility. Additionally, it clarifies that earned wage access services are not classified as loans or money transmissions, thereby exempting them from consumer lending statutes.

Moreover, the bill introduces new reporting requirements for providers, including annual reports detailing revenue and consumer claims, and mandates that providers maintain records for at least five years. It eliminates application and renewal fees for licenses and allows for electronic communication of material changes. The bill also broadens the definition of "employer" to include independent contractors and removes outdated language regarding financial entities. Overall, these updates aim to enhance consumer protection and regulatory oversight in the earned wage access industry, ensuring that providers operate transparently and responsibly.

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