SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2105
As Amended by Senate Committee on Financial
Institutions and Insurance

Brief*
HB 2105, as amended, would create the Kansas Earned
Wage Access Services Act (Act) and authorize the Office of
the State Bank Commissioner (OSBC) to regulate earned
wage access services providers. The bill would establish
registration criteria, including annual reporting and business
records requirements, as well as assign powers and duties to
the State Bank Commissioner (Commissioner), including
examination and enforcement, to ensure compliance with the
Act. [Note: “Earned Wage Access” is often abbreviated as
“EWA.”]

Designation, Applicability, and Definitions (Sections 1-2)
The bill would designate the sections of the bill as the
Kansas Earned Wage Access Services Act. The bill would
further specify the Act would not apply to a bank holding
company regulated by the Federal Reserve, a depository
institution regulated by a federal banking agency, or a
subsidiary of either the holding company or depository
institution that directly owns 25 percent of the common stock.
Definitions
The bill would create several definitions for terminology
used in the Act. Among the definitions established in the bill:

____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
● “Consumer” would mean an individual who is a
resident of the state. (Under the bill, a provider may
use the mailing address provided by a consumer to
determine a consumer’s residency.);
● “Earned wage access services” would mean the
business of providing consumer-directed wage
access services or employer-integrated wage
access services, or both;
● “Consumer directed wage access services” would
mean offering or providing earned wage access
services directly to consumers based on the
consumer’s representations and the provider’s
reasonable determination of the consumer’s
earned but unpaid income;
● “Employer-integrated wage access services” would
mean the business of delivering to consumers
access to earned but unpaid income that is based
on employment, income, and attendance data
obtained directly or indirectly from the employer;
● “Fee” would mean a fee imposed by a provider for
delivery or expedited delivery of proceeds to a
consumer or a subscription or a membership fee
imposed by a provider for a bona fide group of
services that include EWA services;
○ A voluntary tip, gratuity, or donation would not
be deemed a fee;
● “Obligor” would mean an employer or other person
who employs a consumer or any other person who
is contractually obligated to pay a consumer
earned but unpaid income in exchange for a
consumer’s provision of services to the employer
or on behalf of the employer on an hourly, project-
based, piecework, or other basis, and including
where the consumer is acting as an independent
contractor;
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 ● “Person” would mean any individual, corporation,
partnership, association, or other commercial
entity; and
● “Provider” would mean a person who is in the
business of offering earned wage access services
to consumers.
The bill would also create definitions for the terms act,
commissioner, director, earned but unpaid income, member,
Nationwide Multistate Licensing System and Registry
(NMLS), nonrecourse, officer, outstanding proceeds, owner,
partner, principal, proceeds, and registrant.

Registration for Persons Engaging in Earned Wage
Access Services Business (Section 3)
The bill would require persons engaging in or willing to
engage in any EWA services business with a consumer to
register with the Commissioner. Such persons would be
required to submit a registration application on forms
prescribed and provided by the Commissioner. The
application would be required to include:
● The applicant’s name, business address, telephone
number, and if any, website address;
● The name and address of each owner, officer,
director, member, partner, or principal of the
applicant;
● A description of the ownership interest of any
officer, director, member, agent, or employee of the
applicant in any affiliate or subsidiary of the
applicant or any entity that provides any service to
the applicant or any consumer relating to the
applicant’s EWA services business; and


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 ● Any other information the Commissioner may
deem necessary to evaluate the financial
responsibility, financial condition, character,
qualifications, and fitness of the applicant.
Application for, Approval, and Issuance of Registration
The bill would also require the Commissioner to approve
an application and issue a nontransferable and
nonassignable registration to the applicant once the
Commissioner receives the complete application and
application fee and determines the financial responsibility,
financial condition, character, qualifications, and fitness
warrants a belief that the applicant’s business will be
conducted competently, honestly, fairly, and in accordance
with applicable state and federal laws.
Registration Expiration; Renewal; Failure to Issue
The bill would provide the earned wage access services
registration would expire on December 31 each year. A
registration would be renewed if the person files a complete
renewal application with the Commissioner at least 30
calendar days prior to the registration’s expiration. The
renewal application would be required to contain all
information the Commissioner requires to determine the
existence and effect of any material change from the
information contained in the applicant’s original application,
annual reports, or prior renewal applications. A nonrefundable
renewal fee would also be charged.
The bill would further provide, if the Commissioner fails
to issue a registration within 60 calendar days after a filed
application is deemed complete, the applicant is permitted to
make written request for a hearing. Upon receipt of this
request, the Commissioner would be required to conduct a
hearing in accordance with the Kansas Administrative
Procedure Act (KAPA).

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Registration, Processing of; Exceptions to
The bill would also require the Commissioner, no later
than January 1, 2025, to prescribe the form and content of an
application for registration to provide EWA.
The bill would allow a person who, as of January 1,
2024, was engaged in the business of providing EWA
services to continue to engage in this business until the
Commissioner has processed the person’s application if such
person has submitted an application within three months after
the Commissioner has prescribed the application’s form and
content and the person has complied with the Act.
The bill would also provide that the Act’s registration
requirements would not apply to individuals acting as
employees or independent contractors of business entities
required to register.

Surety Requirement on Applicants and Registrants
(Section 4)
The bill would require each applicant or registrant to file
with the Commissioner a surety bond in a form acceptable to
the Commissioner. The surety bond would be required to be
issued by a surety or insurance company authorized to
conduct business in this state, securing the applicant’s or
registrant’s faithful performance of all duties and obligations.
The surety bond would be required to:
● Be payable to the OSBC;
● Provide that the bond may not be terminated
without 30 calendar days’ prior written notice to the
Commissioner, that such termination will not affect
the surety’s liability for violations of the Act
occurring prior to the effective date of cancellation,
and principal and surety must be and remain liable
for a period of two years from the date of any
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 action or inaction of principal that gives rise to a
claim under the bond;
● Provide that the bond shall not expire for two years
after the date of surrender, revocation, or expiration
of the applicant’s or registrant’s registration,
whichever occurs first;
● Be available for the recovery of expenses, fines,
and fees levied by the Commissioner and payment
of losses or damages that are determined by the
Commissioner to have been incurred by any
consumer as a result of the applicant’s or
registrant’s failure to comply with requirements of
the Act; and
● Be in the amount of $100,000.
Registration Requirements of Registered Providers
(Section 5)
The bill would subject providers registered in the state
(“registrants”) to the following requirements:
● A registrant must provide all proceeds on a non-
recourse basis and all fees would be treated as
non-recourse payment obligations;
● A registrant must develop and implement policies
and procedures to respond to questions raised by
consumers and address consumer complaints in
an expedient manner;
● Before providing a consumer with EWA services,
the registrant would be required to inform the
consumer of their rights under the agreement, fully
and clearly disclose all fees associated with EWA
services, and fully and clearly describe how the
consumer may obtain proceeds at no cost to such
consumer;
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● A registrant must inform the consumer of any
material changes to the terms and conditions of the
EWA services before implementing any changes;
● The registrant must provide proceeds to a
consumer via any means mutually agreed upon;
● The registrant must allow a consumer to cancel the
use of the provider’s EWA services at any time,
without incurring a cancellation fee or penalty
imposed by the provider;
● The registrant is required to comply with all
applicable federal, state, and local privacy and
information security laws;
● If a registrant solicits, charges, or receives a tip,
gratuity, or other donation from a consumer, the
registrant must disclose:
○ To the consumer immediately prior to each
transaction that a tip, gratuity, or other
donation amount may be zero and is
voluntary; and
○ In its agreement with the consumer that tips,
gratuities, or other donations are voluntary
and that the offering of EWA services is not
contingent on whether the consumer pays
any, nor the size of, tips, gratuities, or other
donations; and
● If a registrant seeks repayment of outstanding
proceeds or payment of fees or other amounts
owed, in connection with EWA services from a
consumer’s depository institution, including by
means of electronic funds transfer, the registrant
must:
○ Inform the consumer when the provider will
make each attempt;

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 ○ Comply with applicable provisions of the
federal Electronic Fund Transfer Act (EFTA)
[15 USC 1693 et seq.] and any adopted EFTA
regulations; and
○ Reimburse the consumer for the full amount
of any overdraft or nonsufficient funds fees
imposed on a consumer by the consumer’s
depository institution that were caused by the
provider attempting to seek payment of any
outstanding proceeds, fees, or other
payments in connection with EWA services on
date before, or in an incorrect amount from,
the date or amount disclosed to the consumer
(a provider would not be subject to this
reimbursement requirement with respect to
payments incurred by a consumer through
fraudulent or other unlawful means).
Prohibitions and Restrictions on Registrants (Section 6)
The bill would impose certain restrictions and
prohibitions on persons registered under the Act, including:
● Compelling or attempting to compel repayment of
outstanding proceeds or payments owed by a
consumer through civil suit brought against the
consumer, use of a third party to pursue collection,
use of outbound telephone calls to attempt
collection, or sale of an outstanding amount to a
third-party debt collector or debt purchaser;
● Charging a late fee, deferral fee, interest, or any
other penalty or charge for failure to repay
outstanding proceeds;
● Charging interest or finance charges or charging
an unreasonable fee to provide expedited delivery
of proceeds to a consumer;

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 ● Misleading or deceiving consumers about the
voluntary nature of tips, gratuities, or other
donations, or making representation that such
contributions will benefit any specific individuals if
the registrant solicits, charges, or receives these
from a consumer; and
● Reporting a consumer’s payment or failed
repayment of outstanding proceeds to a consumer
credit reporting agency or debt collector.
Applicability of Act with State Law (Section 7)
The bill would provide that EWA services provided by a
registrant in accordance with the Act shall not be considered
to be:
● A loan or other form of credit nor would the
registrant be considered a creditor or lender;
● In violation of or noncompliant with the laws of
Kansas governing the sale or assignment of, or an
order for, earned but unpaid income; or
● Money transmission, nor would the registrant be
considered a money transmitter.
The bill would also provide that fees, voluntary tips,
gratuities, or other donations paid to a registrant would not be
considered interest or finance charges. The bill would further
specify that a registrant that provides proceeds to a consumer
in accordance with this act would not be subject to provisions
of the Uniform Consumer Credit Code (UCCC) in connection
with the registrant’s EWA services.


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Conflict with Law
For any conflict between provisions of this act and any
other state statute, the bill would provide that its provisions
control.

Annual Reporting Requirement; Confidential
Information; Maintenance of Business Records
(Sections 8-9)
The bill would require registrants to file an annual report,
on or before April 1 of each year, with the Commissioner
relating to earned wage access services provided by the
registrant in Kansas during the proceeding year.
Confidential Information; Legislative Review; Written Reports
The bill would provide the information contained in the
registrant’s annual report is confidential and not subject to the
Kansas Open Records Act [KORA] (KSA 45-215 et seq.).
This provision would expire on July 1, 2029, unless the
Legislature reviews and acts to continue such exception
under KORA.
The bill would require a written report detailing an event
and its expected impact on the registrant’s business be made
to the Commissioner within 15 days of the occurrence of one
of the following events:
● Filing for bankruptcy or reorganization by the
registrant;
● Institution of a revocation, suspension, or other
proceeding against the registrant by a
governmental authority that is related to the
registrant’s EWA services business in any state;
● Addition or loss of any owner, officer, partner,
member, principal, or director of the registrant;
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 ● A felony conviction of the registrant or the
registrant’s owners, officers, members, principals,
directors, or partners;
● A change in the registrant’s name or legal entity
status; or
● The closing or relocation of the registrant’s
principal place of business.
Failure to Report
The bill would provide that the failure to make any
required report to the Commissioner may subject the
registrant to a late penalty of $100 for each day such report is
overdue.
Business Records
The bill would require registrants to maintain and
preserve complete and adequate business records, including
a general ledger containing all assets, liabilities, capital,
income, and expense accounts for a period of three years.
Additional recordkeeping requirements would include:
● Maintaining and preserving complete and adequate
records of each EWA services contract during the
contract’s term and for a period of five years from
the date on which the registrant last provides
proceeds to the consumer; and
● Providing records to the Commissioner within three
business days of the Commissioner’s request or, at
the Comm