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 "consumer," "provider," "earned wage access services," and "employer," which clarify the roles of involved entities. A significant provision mandates that no person may offer these services without a valid certificate of registration, which requires compliance with specific rules set by the superintendent of financial institutions. The application process for this certificate includes background checks and the payment of fees, while also establishing criteria for the financial responsibility of applicants. The bill allows registrants to change business locations without reapplying and requires them to notify the division of any changes in their business name or address.

Additionally, the bill emphasizes consumer protections by requiring providers to develop complaint response policies, disclose fees, and allow service cancellations without penalties. It prohibits sharing fees with employers and imposing late fees for non-payment, while clarifying that earned wage access services are not classified as loans, thus exempting them from certain regulations. The bill also creates a consumer finance fund for administrative costs and mandates that a portion of collected fees be allocated to a financial literacy education fund. It repeals the existing section 1321.21, indicating a comprehensive restructuring of the regulatory framework for consumer finance in Ohio.

Statutes affected:
As Introduced: 1321.21