Bill H.99 establishes a regulatory framework for earned wage access services in Vermont by introducing a new chapter in the state's statutes. It defines key terms such as "earned wage access services," "consumer," and "provider," and mandates that all entities offering these services must obtain a license. The bill outlines the licensing requirements, which include a description of services, fee structures, and any bankruptcy proceedings related to the applicant. Licensees are required to provide basic services at no cost to consumers, with optional fees for expedited services. Additionally, the bill emphasizes consumer protection by mandating clear disclosures, the right to cancel services without fees, and restrictions on collection practices and the sale of consumer data.

The legislation also specifies prohibited practices for providers, such as making false statements, soliciting repayment delays to increase fees, and discriminating against consumers. It allows consumers to pursue private legal action against unlicensed providers and grants the Commissioner the authority to create rules for enforcement. The bill amends existing laws regarding the licensing application and renewal process, including fee specifications, and provides a grace period for current providers to continue operations without a license until the end of 2025, as long as they apply for a license before the deadline. The act is set to take effect on July 1, 2025, with the licensing requirement commencing on January 1, 2026.

Statutes affected:
As Introduced: 8-2102, 8-2109, 8-10202(5), 8-10202