SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2105
As Further Amended by House Committee on
Financial Institutions and Pensions

Brief*
HB 2105, as amended, would create the Kansas Earned
Wage Access Services Act (Act) and authorize the Office of
the State Bank Commissioner to regulate earned wage
access services providers. The bill would establish
registration criteria, including annual reporting and business
record 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 and Definitions (Sections 1-2)
The bill would designate the sections of the bill as the
Kansas Earned Wage Access Services Act.
Definitions
The bill would create several definitions for terminology
used in the Act. Among the definitions established in the bill:
● “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.);

____________________
*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
● “Earned wage access services” would mean the
business of providing consumer directed wage
access services or employer-integrated wage
access services;
○ “Consumer directed wage access services”
would mean the business of delivering
proceeds to a consumer prior to the date on
which an obligor is obligated to pay salary,
wages, compensation, or other income to
such consumer 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
proceeds to a consumer prior to the date on
which an obligor is obligated to pay salary,
wages, compensation, or other income to
such consumer, when the provider has
verified the earned but unpaid income of the
consumer through time and attendance or
earnings data for the relevant pay period,
using information provided by an obligor or a
service provider of an obligor;
● “Obligor” would mean an employer or other person
who is contractually or legally obligated to pay a
consumer earned but unpaid income on an hourly,
project-based, piecework, or other basis, including
where the consumer is acting as an independent
contractor;
○ “Obligor” would not include a service provider
of an obligor or another third party that has an
obligation to make any payment to a
consumer based solely on the consumer’s
agency relationship with the obligor;


2- 2105
 ● “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, earned but unpaid income, mandatory
payment, non-mandatory payment, nonrecourse, officer,
outstanding proceeds, owner, person, 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 earned wage access 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, or partner 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 consumer relating to the
applicant’s earned wage access services business;
and
● Any other information the Commissioner may
deem necessary to evaluate the financial
responsibility, financial condition, character,
qualifications, and fitness of the applicant.


3- 2105
Approval and Issuance of Registration
The bill would also require the Commissioner to approve
an application and issue a nontransferrable 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 by the filing of 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 the
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 amount of such fee
would be established by rules and regulations adopted by the
Commissioner.
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).


4- 2105
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 Office of the State Bank
Commissioner;
● 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
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.


5- 2105
Registration Requirements on Registered Providers
(Section 5)
The bill would subject providers registered to the
following requirements:
● The registrant is required to provide all proceeds
on a non-recourse basis and non-mandatory
payments would be treated as non-recourse
payment obligations; and
● Before providing a consumer with earned wage
access services, the registrant would be required
to provide a consumer with written paper or
electronic document, which meet reporting and
disclosure requirements established by the bill,
including terms and conditions of earned wage
access services, the Commissioner’s jurisdiction,
treatment of payments, changes to terms and
conditions, and the discontinuation of services
without financial penalty.
Prohibitions and Restrictions on Registrants (Section 6)
The bill would impose certain restrictions and
prohibitions on persons registered under this act, including:
● Imposing a mandatory payment on a consumer
that directly relates to the provision of earned wage
access services;
● Charging a late fee, interest, or any other penalty
or charge for failure to repay outstanding proceeds;
● Soliciting a consumer to make a non-mandatory
payment after informing the consumer that the
consumer’s request for proceeds was accepted;
and

6- 2105
 ● Reporting a consumer’s payment or failed
repayment of outstanding proceeds to a consumer
credit reporting agency or debt collector.
Non-mandatory Payments (Section 7)
The bill would provide that non-mandatory payments
paid by a consumer to a registrant would not be considered
finance charges.

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, 2028, unless the
Legislature reviews and acts to continue such provision under
a requirement in KORA.
The bill would require registrants to file a written report
with the Commissioner within 15 days of the occurrence of
one of the following events detailing the event and its
expected impact on the registrant’s business:
● Filing for bankruptcy or reorganization by the
registrant;
● Institution of a revocation, suspension, or other
proceeding against the registrant by a
7- 2105
 governmental authority that is related to the
registrant’s earned wage access services business
in any state;
● Addition or loss of any owner, officer, partner, or
director of the registrant;
● A felony conviction of the registrant or the
registrant’s owners, officer, 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 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 earned wage access 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, if the registrant’s records are
located outside Kansas, to the Commissioner
within three calendar days or, at the
8- 2105
 Commissioner’s discretion, pay reasonable and
necessary expenses for the Commissioner to
examine them at the place where such records are
maintained. The bill would also permit records to
be submitted electronically in a manner prescribed
by the Commissioner.
Registration Denial, Suspension, or Revocation;
Opportunity for Hearing (Section 10)
The bill would establish criteria in which the
Commissioner may deny, suspend, revoke, or refuse to
renew a registration if the Commissioner finds, after notice
and opportunity for a hearing in accordance with the
provisions of KAPA. Among the criteria, the Commissioner
could take action if or when:
● The applicant or registrant has repeatedly or
willfully violated any provision, any adopted rules
and regulations, or any order lawfully issued by the
Commissioner pursuant to the Act;
● The applicant or registrant has failed to file and
maintain the required surety;
● The applicant or registrant is insolvent;
● The applicant, registrant, or an employee of the
applicant or registrant has been the subject of any
disciplinary action by the Commissioner or any
other state or federal regulatory agency; or
● Facts or conditions exist that would have justified
the denial of the registration or renewal had such
facts or conditions existed or been known to exist
at the time the application for registration or
renewal was made.


9- 2105
Administration of the Act; Powers Granted to
Commissioner (Section 11)
The bill would authorize the Commissioner to administer
the provisions of the Act and would authorize the
Commissioner to exercise powers as designated, including:
● Adopting, amending, and revocation of rules and
regulations as necessary to carry out the intent of
the Act;
● Making any investigation and examination of the
operations, books, and records of an earned wage
access services provider as the Commissioner
deems necessary;
● Establishing, charging, and collecting fees from
applicants or registrants for reasonable costs of
investigation, examination, and administration of
the Act, in such amounts as the Commissioner may
determine sufficient to meet the agency’s budget
requirements;
● Exchanging information regarding the
administration of this act with any federal agency or
any state that regulates the applicant or registrant;
and
● Requiring fingerprinting of any officer, partner, or
director of an applicant or registrant. The bill would
further specify the Commissioner could not
authorize receipt from a state and national criminal
history record check from a private entity unless
the Kansas Bureau of Investigation or the Federal
Bureau of Investigation is unable to supply the
criminal history record check. Such checks would
be considered confidential and subject to KORA
and its disclosure and legislative review provisions.


10- 2105
 The bill would further specify examination reports and
correspondence regarding such reports would be considered
confidential and not subject to disclosure provisions of KORA.
The Commissioner would be permitted to release
examination reports and correspondence in connection with a
disciplinary proceeding conducted by the Commissioner, a
liquidation proceeding, or a criminal investigation of a
proceeding. The bill would further specify actions the
Commissioner would be permitted to take in order to conduct
examinations, investigations, and proceedings under the Act
and also provide for confidential information contained in
informal agreements.

Violations of the Act; Enforcement Actions (Section 12)
The bill would also prescribe enforcement actions the
Commissioner could take in the event the Commissioner
determines, after notice and opportunity for a hearing
pursuant to KAPA, that a person has engaged, is engaging in,
or is about to engage in an act or practice constituting a
violation of any provision of this act, adopted rules and
regulations, or issued order. These actions would include
directing:
● The person cease and desist from the unlawful act
or practice;
● The person pay a fine not to exceed $5,000 per
incident for the unlawful act or practice and further,
in the instance such violation is committed against
elder or disabled persons (as defined in consumer
protection l