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, 2027. This includes an application process, mandatory updates for licensees, and the maintenance of a surety bond. The bill also clarifies that earned wage access services are not classified as loans or money transmissions, thereby exempting them from certain financial regulations. Additionally, it establishes consumer protection policies, annual reporting requirements, and conditions for license suspension or revocation, aiming to enhance regulatory oversight and consumer safety in this sector. Moreover, the bill would expand the definition of a consumer lender to include those providing earned wage access services and would allow existing providers to continue operations while their license applications are processed. It would remove outdated options for consumers regarding default settings for transactions and clarify that certain wage-related statutes do not apply to earned wage access services. By integrating new provisions and deleting obsolete language, the bill seeks to modernize the legal framework, improve clarity, and ensure effective regulation of the earned wage access industry.

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