The bill seeks to regulate earned wage access services in Ohio by amending section 1321.21 and enacting new sections 1320.01 through 1320.10 of the Revised Code. It introduces key definitions such as "certificate," "company," "consumer," "earned but unpaid income," and "provider." A significant requirement is that no entity can offer these services without a valid certificate of registration, which necessitates compliance with specific provisions set by the superintendent of financial institutions. The registration process includes background checks for key officers and the payment of various fees, including a nonrefundable investigation fee and an annual registration fee. Additionally, registrants must maintain a minimum net worth and assets, and the superintendent may impose additional fees if the annual registration fees do not cover the estimated expenditures of the consumer finance section.

The bill also outlines specific responsibilities for providers, including the development of consumer complaint procedures and the requirement to offer at least one no-cost option for accessing wages. It prohibits providers from sharing fees with employers and requires full disclosure of all associated fees. Furthermore, it clarifies that earned wage access services will not be classified as loans or credit, thus exempting them from certain financial regulations. The legislation establishes a consumer finance fund for collecting fees and penalties, which will support administrative costs and financial literacy education. The existing section 1321.21 is repealed, indicating a comprehensive update to the financial regulatory framework in Ohio.

Statutes affected:
As Introduced: 1321.21