This bill establishes the "Washington State Earned Wage Access Services Act," creating a new chapter in Title 31 RCW to regulate businesses offering earned wage access services in Washington State. It defines essential terms and sets forth licensing requirements, mandating that, starting July 1, 2026, no entity may provide these services without a license obtained through the nationwide mortgage licensing system. The application process includes background checks, identification submissions, and a surety bond of at least $30,000. The bill also empowers the director of the Department of Financial Institutions to enforce compliance, issue licenses, and impose penalties for violations, including the ability to deny applications and suspend or revoke licenses.

Additionally, the legislation outlines specific obligations for licensees, such as developing consumer complaint policies, disclosing fees transparently, and providing no-cost options for consumers. It prohibits practices like sharing fees with employers and charging excessive transaction fees, capping them at $5.00. The bill also mandates the immediate suspension of licenses for individuals not compliant with child support orders, with automatic reinstatement upon compliance. It clarifies that earned wage access services are not classified as loans or money transmission, thus exempting them from certain financial regulations. Overall, the bill aims to create a structured and accountable framework for earned wage access services, ensuring consumer protection and adherence to financial responsibilities.