The bill H.99 seeks to regulate earned wage access services in Vermont by establishing a new chapter in the state's statutes, which includes definitions for key terms such as "earned wage access services," "consumer," "provider," and "biometric data." It mandates that all entities providing these services must obtain a license, detailing the application process and necessary disclosures. Licensees are required to offer a basic level of service at no cost to consumers and must adhere to guidelines that protect consumers from unfair charges. The bill also prohibits certain practices by licensees, such as imposing fees for basic services and conditioning service availability on a consumer's financial status.

Additionally, the bill includes provisions for consumer data protection, particularly regarding biometric and geolocation information, requiring consent for data sharing. It establishes a licensing requirement for providers starting January 1, 2026, and outlines various prohibited practices, including making false statements and discriminating against consumers. Consumers are empowered to take private legal action against unlicensed providers, and the Commissioner is tasked with overseeing compliance and reporting on the regulation of these services. Key provisions include a $1,000 application fee and a $1,200 annual renewal fee for licenses, while clarifying that earned wage access services are not classified as loans, thus exempting them from certain financial regulations. A grace period is provided for current providers to operate 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.

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