Sections 2-33.5 of this bill establish provisions relating to businesses that deliver to a person money that represents income that the person has earned but that has not yet been paid to the person. Section 9 of this bill defines “employer-integrated earned wage access provider” as a person who provides such a service after verifying the earned income of the user through certain data provided by the user's employer, or a person who provides payroll services to that employer. Section 3.1 of this bill defines a “direct-to-consumer earned wage access provider” as a person who provides such a service after verifying the earned income of the user through certain data that is not provided by the user's employer or a person who provides payroll services to that employer. Section 10.6 of this bill defines “provider” to include an employer-integrated earned wage access provider and a direct-to-consumer earned wage access provider. Section 12 of this bill prohibits a person from engaging in the business of a provider without a license issued by the Commissioner of Financial Institutions. Sections 12-15 of this bill set forth certain requirements for licensure as a provider. Section 16 of this bill requires each holder of a license as a provider to maintain a surety bond. Sections 18-20 of this bill authorize the Commissioner to conduct certain examinations of licensees. Section 21 of this bill requires the Commissioner to: (1) charge a fee for such examinations; (2) employ a certified public accountant to review and conduct independent audits and examinations of licensed providers; and (3) levy an assessment upon each licensed provider to cover the costs related to the employment of the certified public accountant and the performance of the audits and examinations. Sections 10.1, 13.1-13.3 and 18.1 of this bill enact provisions to govern the licensing of providers through the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and operated by the State Regulatory Registry, LLC. Under section 37 of this bill, these provisions relating to the Registry become effective on the date that the Commissioner notifies the Governor and the Director of the Legislative Counsel Bureau that the Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of law relating to the issuance and renewal of licenses through the Registry. (Chapter 347, Statutes of Nevada 2021, at page 2030) Section 13.1 of this bill authorizes the Commissioner to: (1) in furtherance of his or her duties with respect to the issuance and renewal of licenses pursuant to this bill, to participate in the Registry; (2) require an applicant for licensure or a licensee to submit a complete set of fingerprints when the Commissioner determines necessary; and (3) use the services of the Registry to process and to submit the fingerprints to the Federal Bureau of Investigation and certain other federal and state agencies for the purposes of conducting a criminal background check. Section 13.1 also sets forth certain actions that the Commissioner is authorized to take concerning participation in the Registry, including, among others, requiring applicants for or holders of licenses to use the Registry to submit certain information and fees relating to licensure. Section 13.2 of this bill requires each applicant for the issuance of a license and certain other persons to submit a complete set of fingerprints to the Registry. Section 13.3 of this bill: (1) authorizes the Commissioner to issue a license through the Registry; and (2) provides that, to the extent that the Commissioner has delegated his or her duties with respect to the issuance or renewal of licenses as authorized under the provisions of this bill, references to the Commissioner in provisions of existing law governing the issuance or renewal of such licenses are deemed to be references to the Registry. Section 17.1 of this bill authorizes the Commissioner to conduct any necessary investigations and hearings to determine whether any licensee or person has violated any provision of this bill or whether any licensee has conducted himself or herself in a manner which requires the suspension, revocation or denial of renewal of his or her license. In conducting such investigation or hearing, section 17.1 authorizes the Commissioner to: (1) require the attendance and testimony of certain persons; (2) compel the production of certain documents; and (3) collect certain fees from each licensee or person. Section 18.1 of this bill: (1) requires the Commissioner to report to the Registry certain information concerning violations of applicable laws by applicants for licenses and licensees; and (2) authorizes the Commissioner to enter into certain agreements or sharing arrangements with the Conference of State Bank Supervisors, the State Regulatory Registry, LLC, and certain other entities. Sections 22 and 23 of this bill set forth certain procedures for disciplinary actions against a licensee or person who violates the provisions of this bill. Section 25 of this bill sets forth a process for filing complaints against a licensee. Sections 26 and 27 of this bill require a licensee to submit a notice to and obtain the approval of the Commissioner before taking certain actions. Section 28 of this bill requires a licensee to submit certain information to the Commissioner annually. Section 34 of this bill makes conforming changes relating to the confidentiality of the information collected by a governmental agency related to sections 25 and 28. Section 29 of this bill sets forth certain requirements for the operation of a provider. Section 31 of this bill, among other things, prohibits a provider from: (1) sharing certain fees, voluntary tips, gratuities or other donations with an employer; and (2) compelling or attempting to compel payment by a user through certain actions. Section 33 of this bill provides that earned wage access services provided by a provider licensed pursuant to sections 2-33.5 are not a loan or money transmission and are not subject to any provisions of existing law governing loans and money transmitters. Sections 34.5-35.5 of this bill provide that the provisions of existing law governing persons engaged in the business of transmitting money or certain loans do not apply to a provider. Section 32 of this bill authorizes the Commissioner to adopt regulations for the administration and enforcement of sections 2-33.5. Sections 36 and 36.1 of this bill requires the Commissioner to: (1) on or before December 31, 2025, submit a report to the Legislature containing certain information relating to the regulation of earned wage access services; and (2) prescribe the form and content of an application for a license to provide earned wage access services. Section 36.2 of this bill authorizes a person who, as of January 1, 2023, was engaged in the business of providing earned wage access services to continue to engage in that business without obtaining a license pursuant to sections 2-33.5 until December 31, 2024, if the person submits an application for such a license before January 1, 2024.

Statutes affected:
As Introduced: 239.010, 671.020
Reprint 1: 239.010, 604A.250, 671.020, 675.040
Reprint 2: 239.010, 604A.250, 671.020, 675.040
As Enrolled: 239.010, 604A.250, 671.020, 675.040
BDR: 239.010, 671.020