This bill establishes regulatory requirements for earned income access services in New Jersey, defining key terms such as "consumer," "earned but unpaid income," and "earned income access service provider." It mandates that providers enter into contractual agreements with employers (obligors) to verify consumers' earned income and deliver unpaid wages before the scheduled payment date. The bill prohibits obligors from sharing information about their obligations to consumers without consent and outlines conditions under which fees can be charged. Importantly, it clarifies that these services are not classified as loans, provided they adhere to the specified regulations.

To operate legally, earned income access service providers must obtain a license from the Department of Banking and Insurance, which will review applications within 120 days. The bill details grounds for license denial, suspension, or revocation, including fraudulent activity or consumer complaints, and allows the department to establish contracts with the Nationwide Multistate Licensing System and Registry for record-keeping and fee processing. It also includes penalties for violations, with fines up to $5,000 for first offenses and $15,000 for subsequent violations, and grants the department authority to investigate licensees and access their records.

Statutes affected:
Introduced: 17:1C-34