As Introduced
135th General Assembly
Regular Session S. B. No. 303
2023-2024
Senators Lang, Craig
A BILL
To amend section 1321.21 and to enact sections 1
1320.01, 1320.02, 1320.03, 1320.04, 1320.05, 2
1320.06, 1320.07, 1320.08, 1320.09, and 1320.10 3
of the Revised Code to regulate the provision of 4
earned wage access services. 5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 1321.21 be amended and sections 6
1320.01, 1320.02, 1320.03, 1320.04, 1320.05, 1320.06, 1320.07, 7
1320.08, 1320.09, and 1320.10 of the Revised Code be enacted to 8
read as follows: 9
Sec. 1320.01. As used in this chapter: 10
(A) "Certificate" means a certificate of registration 11
issued under this chapter. 12
(B) "Company" means a business entity other than an 13
individual or sole proprietorship, including a firm, business 14
trust, partnership, limited liability company, association, 15
corporation, or general partnership. 16
(C) "Consumer" means any individual who resides in this 17
state and has accrued earned but unpaid income. A provider may 18
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use the mailing address or state of residence provided by a 19
consumer to determine the consumer's state of residence for 20
purposes of this chapter. 21
(D) "Consumer-directed wage access services" means the 22
business of delivering to consumers access to earned but unpaid 23
income based on the consumer's representation, and the 24
provider's reasonable determination, of the consumer's earned 25
but unpaid income. 26
(E) "Earned but unpaid income" means salary, wages, 27
compensation, or other income that an individual or an employer 28
has represented, and that a provider has reasonably determined, 29
has been earned or has accrued to the benefit of the individual 30
in exchange for the individual's provision of services to the 31
employer or on behalf of the employer, including services 32
provided on an hourly, project-based, piecework, or other basis, 33
and where the individual acts as an independent contractor of 34
the employer, for which the individual has not been paid by the 35
employer at the time of the payment of proceeds. 36
(F) "Earned wage access services" means the business of 37
providing consumer-directed wage access services, employer- 38
integrated wage access services, or both. 39
(G)(1) "Employer" means a person that employs a consumer, 40
or any other person who is contractually obligated to pay a 41
consumer earned but unpaid income in exchange for a consumer's 42
provision of services to the employer or on behalf of the 43
employer, including services provided on an hourly, project- 44
based, piecework, or other basis and where the consumer acts as 45
an independent contractor with respect to the employer. 46
(2) "Employer" does not mean a customer of an employer or 47
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any other person whose obligation to make a payment of salary, 48
wages, compensation, or other income to a consumer is not based 49
on the provision of services by that consumer for or on behalf 50
of such person. 51
(H) "Employer-integrated wage access services" means the 52
business of delivering to consumers access to earned but unpaid 53
income that is based on employment, income, and attendance data 54
obtained directly or indirectly from an employer. 55
(I) "Fee" means any of the following: 56
(1) An amount charged by a provider for delivery or 57
expedited delivery of proceeds to a consumer; 58
(2) A subscription or membership charge imposed by a 59
provider for a bona fide group of services that includes earned 60
wage access services; 61
(3) An amount paid by an employer to a provider on a 62
consumer's behalf, which entitles the consumer to receive 63
proceeds at reduced or no cost to the consumer. 64
(J) "Key officer" means a chief executive officer, chief 65
financial officer, or chief compliance officer. 66
(K) "Outstanding proceeds" means a payment of proceeds to 67
a consumer by a provider that has not yet been repaid to that 68
provider. 69
(L) "Proceeds" means a payment of money to a consumer by a 70
provider pursuant to an agreement to provide earned wage access 71
services to that consumer. 72
(M) "Provider" means a company who is in the business of 73
offering and providing earned wage access services to consumers. 74
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(N) "Registrant" means a company to whom one or more 75
certificates of registration have been issued under this 76
chapter. 77
(O) "Superintendent of financial institutions" includes 78
the deputy superintendent for consumer finance as provided in 79
section 1181.21 of the Revised Code. 80
Sec. 1320.02. (A) No person shall offer or provide earned 81
wage access services in this state without having a valid 82
certificate of registration under this chapter. Each company 83
issued a certificate of registration is subject to all 84
provisions of this chapter and any associated rules. 85
(B) For the purpose of registering companies under and 86
requiring compliance with this chapter, the superintendent of 87
financial institutions may do both of the following: 88
(1) Require any company registered, or applying for 89
registration, under this chapter to do both of the following: 90
(a) Utilize the nationwide multistate licensing system for 91
application, renewal, amendment, or surrender of a certificate 92
of registration or for any other activity as the superintendent 93
may require; 94
(b) Pay all applicable charges to utilize the nationwide 95
multistate licensing system. 96
(2) Establish requirements as necessary for the use of the 97
nationwide multistate licensing system to meet the purposes of 98
these sections, including: 99
(a) Background checks of key officers for any of the 100
following: 101
(i) Criminal history through fingerprint or other 102
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databases; 103
(ii) Civil or administrative records; 104
(iii) Credit history; 105
(iv) Any other information considered necessary by the 106
nationwide multistate licensing system or the superintendent. 107
(b) Payment of fees to apply for or renew registrations 108
through the nationwide multistate licensing system; 109
(c) Setting or resetting of renewal or reporting dates; 110
(d) Requirements for amending or surrendering a 111
registration or any other such activities as the superintendent 112
considers necessary for participation in the nationwide 113
multistate licensing system. 114
Sec. 1320.03. (A)(1) An application for a certificate of 115
registration under this chapter shall be in writing, under oath, 116
and in the form prescribed by the division of financial 117
institutions. The application shall include an affirmation that 118
the applicant will abide by this chapter and shall contain any 119
information that the division may require. The division shall 120
not issue or renew a certificate of registration under this 121
chapter for an applicant that is a foreign corporation unless 122
that applicant first obtains and maintains a license pursuant to 123
Chapter 1703. of the Revised Code. 124
(2) Upon the filing of the application and the payment by 125
the applicant of a nonrefundable two-hundred-dollar 126
investigation fee and a nonrefundable three-hundred-dollar 127
annual registration fee, the division shall investigate the 128
applicant. If the application involves investigation outside 129
this state, and it appears that the actual expenses of the 130
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investigation will exceed two hundred dollars, the division may 131
require the applicant to advance sufficient funds to pay for 132
those actual expenses. The division shall furnish to the 133
applicant an itemized statement of any expenses in excess of the 134
standard two-hundred-dollar investigation fee which the 135
applicant is required to pay. The division shall not issue a 136
certificate unless all the required fees have been submitted to 137
the division. 138
(3) The investigation required by this section shall 139
include both a civil and criminal records check of the key 140
officers of the applicant and any individual whose identity is 141
required to be disclosed in the application. Where the applicant 142
is a business entity, the superintendent of financial 143
institutions may require a civil and criminal background check 144
of any persons that the superintendent determines have the 145
authority to direct and control the operations of the applicant. 146
(4)(a) Notwithstanding division (L) of section 121.08 of 147
the Revised Code, the superintendent shall obtain a criminal 148
history records check and, as part of that records check, 149
request that criminal record information from the federal bureau 150
of investigation be obtained. To fulfill this requirement, the 151
superintendent of financial institutions shall request the 152
superintendent of the bureau of criminal identification and 153
investigation, or a vendor approved by the bureau, to conduct a 154
criminal records check based on the applicant's fingerprints or, 155
if the fingerprints are unreadable, based on the applicant's 156
social security number, in accordance with section 109.572 of 157
the Revised Code. 158
(b) Any fee required under division (C)(3) of section 159
109.572 of the Revised Code shall be paid by the applicant. 160
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(5) If an application for a certificate of registration 161
does not contain all of the information required under division 162
(A) of this section, and if such information is not submitted to 163
the division within ninety days after the superintendent of 164
financial institutions requests the information in writing, 165
including by electronic transmission or facsimile, the 166
superintendent may consider the application withdrawn. 167
(6) If the division finds that the financial 168
responsibility, experience, and general fitness of the applicant 169
command the confidence of the public and warrant the belief that 170
the business will be operated honestly and fairly in compliance 171
with the purposes of this chapter and the rules adopted 172
thereunder, and that the applicant has the applicable net worth 173
and assets required by division (D) of this section, the 174
division shall issue a certificate of registration to the 175
applicant. The superintendent shall not use a credit score as 176
the sole basis for denying registration under this chapter. 177
(7) Certificates of registration annually expire on the 178
last day of December, unless renewed by the filing of a renewal 179
application and payment of a three-hundred-dollar nonrefundable 180
annual registration fee on or before that date. 181
(8) Registrants shall timely file renewal applications on 182
forms prescribed by the division and provide any further 183
information that the division may require. If a renewal 184
application does not contain all of the information required 185
under this section, and if that information is not submitted to 186
the division within ninety days after the superintendent 187
requests the information in writing, including by electronic 188
transmission or facsimile, the superintendent may consider the 189
application withdrawn. 190
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(9) The superintendent shall not grant a renewal if the 191
applicant's certificate of registration is subject to an order 192
of suspension, revocation, or an unpaid and past due fine or 193
assessment imposed by the superintendent. 194
(10) If the division finds the applicant does not meet the 195
conditions set forth in this section, the division shall issue 196
notice to the applicant of the denial, the grounds for the 197
denial, and the applicant's reasonable opportunity to be heard 198
on the action in accordance with Chapter 119. of the Revised 199
Code. 200
(11) If there is a change of five per cent or more in the 201
ownership of a registrant, the division may make any 202
investigation necessary to determine whether any fact or 203
condition exists that, if it had existed at the time of the 204
original application for a certificate of registration, the fact 205
or condition would have warranted the division to deny the 206
application under division (A)(6) of this section. If such a 207
fact or condition is found, the division may, in accordance with 208
Chapter 119. of the Revised Code, revoke the registrant's 209
certificate. 210
(B)(1) If the annual registration fees collected by the 211
superintendent pursuant to division (A) of this section are less 212
than the estimated expenditures of the consumer finance section 213
of the division of financial institutions in administering this 214
chapter for the following fiscal year, as determined by the 215
superintendent, the superintendent may assess each registrant an 216
additional fee at a rate sufficient to equal in the aggregate 217
the difference between the renewal fees billed and the estimated 218
expenditures. 219
(2) Each registrant shall pay the assessed amount to the 220
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