The proposed "Earned Wage Access Services Act" establishes a regulatory framework for earned wage access service providers in New Mexico, requiring them to obtain a license from the Financial Institutions Division of the Regulation and Licensing Department. The bill outlines the application process, conditions for license denial or revocation, and exemptions for certain financial institutions. It also mandates annual license renewals, investigations, and penalties for non-compliance, while ensuring that earned wage access services are not classified as loans or money transmission. The legislation aims to protect consumers by enforcing standards of financial responsibility and ethical conduct among providers.

Additionally, the bill introduces new sections that detail the responsibilities of providers, including maintaining accurate records for at least two years, submitting annual financial reports, and informing consumers about their rights and fees. It prohibits misleading advertising and requires transparency regarding tips and fees. The division is granted authority to enforce compliance, including suspending licenses for violations. The bill also ensures that amendments or repeals of the act do not affect existing contracts and establishes penalties for violations, classifying them as petty misdemeanors with fines ranging from $500 to $1,000. The provisions will apply to licensed providers starting October 15, 2025.