This bill establishes a new chapter in Title 31 RCW dedicated to the licensing and regulation of businesses providing earned wage access services in Washington State. It defines essential terms such as "consumer," "provider," and "earned wage access services," and sets forth the licensing requirements that will take effect on July 1, 2026. Entities must obtain a license through the nationwide mortgage licensing system, which involves background checks, fee payments, and maintaining a surety bond of at least $30,000. The bill empowers the director of the Department of Financial Institutions to enforce compliance, issue licenses, and impose penalties for violations, including the authority to deny, suspend, or revoke licenses based on specific conditions.

Additionally, the legislation outlines obligations for licensees, such as developing consumer complaint policies, disclosing fees clearly, and providing no-cost options for consumers. It prohibits practices like sharing fees with employers and charging excessive fees, while capping transaction fees at $5.00. The bill also mandates comprehensive record-keeping and annual reporting by licensees. It includes provisions for immediate license suspension for non-compliance with child support orders and automatic reinstatement upon compliance. The director is granted broad authority to investigate compliance and enforce regulations, with penalties for violations classified as gross misdemeanors. The new chapter will be known as the Washington State Earned Wage Access Services Act, ensuring consumer protection and transparency in the industry.