This bill establishes a regulatory framework 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 arrangements with employers to deliver earned but unpaid income to consumers before their scheduled payment dates. The bill prohibits obligors from sharing information about their obligations to consumers without consent and outlines the conditions under which fees can be charged. Additionally, if providers charge interest or finance charges, they must comply with existing usury laws, ensuring that any non-compliance will result in the services being classified as loans.

To operate legally, providers must obtain a license from the Department of Banking and Insurance, which will oversee compliance and consumer protection. The bill specifies that applications must be reviewed within 120 days and outlines conditions for license denial or revocation, including fraudulent activity or consumer complaints. It also allows the department to establish contracts with the Nationwide Multistate Licensing System and Registry for record-keeping and fee processing. Penalties for violations include fines up to $5,000 for first offenses and $15,000 for subsequent violations, and the department is empowered to investigate licensees and access their records to ensure adherence to the new regulations.

Statutes affected:
Introduced: 17:1C-34