Arkansas 2025 Regular Session

Arkansas House Bill HB1517 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 347 of the Regular Session
3		-	ANS261 03-06-2025 13:38:41 ANS261
4		-
5		-	State of Arkansas As Engrossed: H3/4/25 H3/6/25 1
	2	+	ANS261 02/18/2025 11:04:30 AM ANS261
	3	+	State of Arkansas 1
6	4		95th General Assembly A Bill 2
7	5		Regular Session, 2025 HOUSE BILL 1517 3
8	6		4
9	7		By: Representative Ray 5
10	8		By: Senator Gilmore 6
11	9		7
12	10		For An Act To Be Entitled 8
13	11		AN ACT TO ESTABLISH THE EARNED WAGE ACCESS SERVICES 9
14	12		ACT; AND FOR OTHER PURPOSES. 10
15	13		11
16	14		12
17	15		Subtitle 13
18	16		TO ESTABLISH THE EARNED WAGE ACCESS 14
19	17		SERVICES ACT. 15
20	18		16
21	19		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
22	20		18
23	21		SECTION 1. Arkansas Code Title 23, is amended to add an additional 19
24	22		chapter to read as follows: 20
25	23		21
26	24		CHAPTER 52 22
27	25		CONSUMER PROTECTION 23
28	26		24
29	27		Subchapter 1 — General Provisions 25
30	28		[Reserved.] 26
31	29		27
32	30		Subchapter 2 — Earned Wage Access Services Act 28
33	31		29
34	32		23-52-201. Title. 30
35	33		This subchapter shall be known and may be cited as the "Earned Wage Access 31
36	34		Services Act". 32
37	35		33
38	36		23-52-202. Definitions. 34
39	37		As used in this subchapter: 35
40		-	(1) "Consumer" means a natural person residing in this state; 36 ~~As Engrossed: H3/4/25 H3/6/25~~ HB1517
	38	+	(1) "Consumer" means a natural person residing in this state; 36 HB1517
41	39
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43		-
44		-
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45	41		(2) "Consumer-directed earned wage access services" means the 1
46	42		business of delivering to a consumer access to earned but unpaid income based 2
47	43		on the consumer’s representation and the provider’s reasonable determination 3
48	44		of the consumer’s earned but unpaid income; 4
49	45		(3)(A) "Earned but unpaid income" means salary, wages, 5
50	46		compensation, or other income that a consumer or an employer has represented, 6
51	47		and that a provider has reasonably determined, has been earned or has accrued 7
52	48		to the benefit of the consumer in exchange for the consumer’s provision of 8
53	49		services to an employer or on behalf of an employer. 9
54	50		(B) "Earned but unpaid income" includes: 10
55	51		(i) Services provided on an hourly, project -based, 11
56	52		piecework, or other basis; and 12
57	53		(ii) If the consumer is acting as an independent 13
58	54		contractor of the employer, income that has not at the time of the payment of 14
59	55		proceeds been paid to the consumer by the employer; 15
60	56		(4) "Earned wage access services" means consumer -directed earned 16
61	57		wage access services, employer -integrated earned wage access services, or 17
62	58		both; 18
63	59		(5)(A) "Employer" means a person who employs a consumer or any 19
64	60		other person who is contractually obligated to pay a consumer earned but 20
65	61		unpaid income in exchange for a consumer’s provision of services to the 21
66	62		person or on behalf of the person, including on an hourly, project -based, 22
67	63		piecework, or other basis, and including when the consumer acts as an 23
68	64		independent contractor with respect to the person. 24
69	65		(B) "Employer" does not include a customer of an employer 25
70	66		or any other person whose obligation to make a payment of salary, wages, 26
71	67		compensation, or other income to a consumer is not based on the provision of 27
72	68		services by the consumer for or on behalf of the person; 28
73	69		(6) "Employer-integrated earned wage access services" means the 29
74	70		business of delivering to a consumer access to earned but unpaid income that 30
75	71		is based on employment, income, and attendance data obtained directly or 31
76	72		indirectly from an employer, including without limitation an employer’s 32
77	73		payroll service provider; 33
78	74		(7)(A) "Fee" means a charge imposed by a provider for delivery 34
79	75		or expedited delivery of proceeds to a consumer, a subscription or membership 35
80		-	charge imposed by a provider for a bona fide group of services that include 36 ~~As Engrossed: H3/4/25 H3/6/25~~ HB1517
	76	+	charge imposed by a provider for a bona fide group of services that include 36 HB1517
81	77
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83		-
84		-
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85	79		earned wage access services, or an amount paid by an employer to a provider 1
86	80		on a consumer’s behalf that entitles the consumer to receive proceeds at 2
87	81		reduced or no cost to the consumer. 3
88	82		(B) "Fee" does not mean a voluntary tip, gratuity, or 4
89	83		donation; 5
90	84		(8) "Outstanding proceeds" means a payment of proceeds to a 6
91	85		consumer by a provider that has not yet been repaid to that provider; 7
92	86		(9) "Proceeds” means a payment of funds to a consumer by a 8
93	87		provider that is based on earned but unpaid income; and 9
94	88		(10)(A) "Provider" means a person that is engaged in the 10
95	89		business of offering and providing earned wage access services to a consumer. 11
96	90		(B) "Provider" does not include: 12
97	91		(i) A service provider, including a payroll service 13
98	92		provider, whose role may include verifying the available earnings but who is 14
99	93		not contractually obligated to fund proceeds delivered as part of an earned 15
100		-	wage access service; 16
	94	+	wage access service; or 16
101	95		(ii) An employer that offers a portion of salary, 17
102	96		wages, or compensation directly to an employee or an independent contractor 18
103		-	before the normally scheduled pay date~~; or~~ 19
104		-	~~(iii) An entity that offers or provides earned wage access~~ 20
105		-	services ~~and reports a consumer's payment or nonpayment of outstanding~~ 21
106		-	~~proceeds or fees, voluntary tips, gratuities, or other donations in~~ 22
107		-	~~connection with~~ the ~~earned wage access services to~~ a consumer ~~reporting~~ 23
108		-	~~agency, as defined in~~ the ~~Fair Credit Reporting Act,~~ ~~15 U~~.~~S.C. § 1681 et~~ 24
109		-	~~seq.~~, ~~as it existed on January 1, 2025.~~ 25
110		-	26
111		-	~~23-52-203. Provider~~ earned ~~wage access services — Prohibited practices.~~ 27
112		-	~~(a) A provider may use~~ the ~~mailing address provided by a consumer to~~ 28
113		-	~~determine~~ the ~~consumer’s state of residence for purposes~~ of this ~~subchapter.~~ 29
114		-	(b) ~~A provider shall not be deemed~~ to ~~be engaging in lending, money~~ 30
115		-	~~transmission, or debt collection in this state, or in violation of the laws~~ 31
116		-	~~of this state governing the sale of,~~ ~~assignment of,~~ or an ~~order for earned~~ 32
117		-	~~but unpaid income, if the provider:~~ 33
118		-	(1) ~~Complies with the requirements of this section;~~ 34
119		-	~~(2) Develops~~ and ~~implements policies and procedures~~ to ~~respond~~ 35
120		-	~~to questions raised by~~ a ~~consumer;~~ 36 ~~As Engrossed: H3/4/25 H3/6/25~~ HB1517
	97	+	before the normally scheduled pay date. 19
	98	+	20
	99	+	23-52-203. Provider earned wage access services — Prohibited 21
	100	+	practices. 22
	101	+	(a) A provider may use the mailing address provided by a consumer to 23
	102	+	determine the consumer’s state of residence for purposes of this subchapter. 24
	103	+	(b) A provider shall not be deemed to be engaging in lending, money 25
	104	+	transmission, or debt collection in this state, or in violation of the laws 26
	105	+	of this state governing the sale of, assignment of, or an order for earned 27
	106	+	but unpaid income, if the provider: 28
	107	+	(1) Complies with the requirements of this section; 29
	108	+	(2) Develops and implements policies and procedures to respond 30
	109	+	to questions raised by a consumer; 31
	110	+	(3) Addresses a complaint from a consumer in an expedient 32
	111	+	manner; 33
	112	+	(4) Offers to a consumer at least one (1) reasonable option to 34
	113	+	obtain proceeds at no cost to the consumer and clearly explains how to elect 35
	114	+	the no-cost option under this subdivision (b)(4) whenever it offers a 36 HB1517
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	117	+	consumer the option to receive proceeds for a fee; 1
	118	+	(5) Before entering into an agreement with a consumer for the 2
	119	+	provision of earned wage access services: 3
	120	+	(A) Informs the consumer of the consumer's rights under 4
	121	+	the agreement; and 5
	122	+	(B) Fully and clearly discloses all fees associated with 6
	123	+	the earned wage access services; 7
	124	+	(6) Informs a consumer of a material change to the terms and 8
	125	+	conditions of the earned wage access services before implementing the changes 9
	126	+	for the consumer; 10
	127	+	(7) Allows a consumer to cancel use of the provider’s earned 11
	128	+	wage access services at any time without incurring a cancellation fee imposed 12
	129	+	by the provider; 13
	130	+	(8) Complies with all applicable local, state, and federal 14
	131	+	privacy and information security laws; and 15
	132	+	(9) Provides proceeds to a consumer by any means mutually agreed 16
	133	+	upon by the consumer and the provider. 17
	134	+	(c) If a provider solicits, charges, or receives a tip, gratuity, or 18
	135	+	other donation from a consumer, the provider shall clearly and conspicuously 19
	136	+	disclose: 20
	137	+	(1) To the consumer immediately before each transaction that a 21
	138	+	tip, gratuity, or other donation amount may be zero and is voluntary; and 22
	139	+	(2) In its service contract with the consumer and elsewhere that 23
	140	+	tips, gratuities, or donations are voluntary and that the offering of earned 24
	141	+	wage access services, including the amount of proceeds a consumer is eligible 25
	142	+	to request and the frequency with which proceeds are provided to a consumer, 26
	143	+	is not contingent on whether the consumer pays a tip, gratuity, or other 27
	144	+	donation or on the size of the tip, gratuity, or other donation. 28
	145	+	(d) If a provider seeks repayment of outstanding proceeds or payment 29
	146	+	of fees or other amounts owed, including voluntary tips, gratuities, or other 30
	147	+	donations, in connection with the activities covered by this subchapter, from 31
	148	+	a consumer’s account at a depository institution, including by means of 32
	149	+	electronic fund transfer, the provider shall: 33
	150	+	(1) Comply with applicable provisions of the Electronic Fund 34
	151	+	Transfer Act, 15 U.S.C. 1693 et seq., as it existed on January 1, 2025, and 35
	152	+	regulations adopted under the the Electronic Fund Transfer Act, 15 U.S.C. 36 HB1517
123	153
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	155	+	1693 et seq., as it existed on January 1, 2025; and 1
	156	+	(2)(A) Reimburse the consumer for the full amount of any 2
	157	+	overdraft or nonsufficient funds fees imposed on a consumer by the consumer’s 3
	158	+	depository institution that were caused by the provider's attempting to seek 4
	159	+	payment of any outstanding proceeds, fees, or other payments, in connection 5
	160	+	with the activities covered by this subchapter, including voluntary tips, 6
	161	+	gratuities, or other donations, on a date before, or in an incorrect amount 7
	162	+	from, the date or amount disclosed to the consumer. 8
	163	+	(B) The provider is not subject to the requirements under 9
	164	+	subdivision (d)(2)(A) of this section with respect to payments of outstanding 10
	165	+	proceeds or fees incurred by a consumer through fraudulent or other unlawful 11
	166	+	means. 12
	167	+	(e) A provider shall not: 13
	168	+	(1) Share with an employer a portion of any fees, voluntary 14
	169	+	tips, gratuities, or other donations that were received from or charged to a 15
	170	+	consumer for earned wage access services; 16
	171	+	(2) Require a consumer’s credit report or a credit score 17
	172	+	provided or issued by a consumer reporting agency to determine a consumer’s 18
	173	+	eligibility for earned wage access services; 19
	174	+	(3) Accept payment of outstanding proceeds, fees, voluntary 20
	175	+	tips, gratuities, or other donations from a consumer by means of a credit 21
	176	+	card or charge card; 22
	177	+	(4) Charge a consumer a late fee, deferral fee, interest, or any 23
	178	+	other penalty or charge for failure to pay outstanding proceeds, fees, 24
	179	+	voluntary tips, gratuities, or other donations; 25
	180	+	(5) Report to a consumer reporting agency or debt collector any 26
	181	+	information about the consumer regarding the inability of the provider to be 27
	182	+	repaid outstanding proceeds, fees, voluntary tips, gratuities, or other 28
	183	+	donations; 29
	184	+	(6) Compel or attempt to compel payment by a consumer of 30
	185	+	outstanding proceeds, fees, voluntary tips, gratuities, or other donations to 31
	186	+	the provider by: 32
	187	+	(A) A suit against the consumer in a court of competent 33
	188	+	jurisdiction; 34
	189	+	(B) Use of a third party to pursue collection from the 35
	190	+	consumer on the provider’s behalf; or 36 HB1517
124	191
125		-	(3) Addresses a complaint from a consumer in an expedient 1
126		-	manner; 2
127		-	(4) Offers to a consumer at least one (1) reasonable option to 3
128		-	obtain proceeds at no cost to the consumer and clearly explains how to elect 4
129		-	the no-cost option under this subdivision (b)(4) whenever it offers a 5
130		-	consumer the option to receive proceeds for a fee; 6
131		-	(5) Before entering into an agreement with a consumer for the 7
132		-	provision of earned wage access services: 8
133		-	(A) Informs the consumer of the consumer's rights under 9
134		-	the agreement; and 10
135		-	(B) Fully and clearly discloses all fees associated with 11
136		-	the earned wage access services; 12
137		-	(6) Informs a consumer of a material change to the terms and 13
138		-	conditions of the earned wage access services before implementing the changes 14
139		-	for the consumer; 15
140		-	(7) Allows a consumer to cancel use of the provider’s earned 16
141		-	wage access services at any time without incurring a cancellation fee imposed 17
142		-	by the provider; 18
143		-	(8) Complies with all applicable local, state, and federal 19
144		-	privacy and information security laws; and 20
145		-	(9) Provides proceeds to a consumer by any means mutually agreed 21
146		-	upon by the consumer and the provider. 22
147		-	(c) If a provider solicits, charges, or receives a tip, gratuity, or 23
148		-	other donation from a consumer, the provider shall clearly and conspicuously 24
149		-	disclose: 25
150		-	(1) To the consumer immediately before each transaction that a 26
151		-	tip, gratuity, or other donation amount may be zero and is voluntary; and 27
152		-	(2) In its service contract with the consumer and elsewhere that 28
153		-	tips, gratuities, or donations are voluntary and that the offering of earned 29
154		-	wage access services, including the amount of proceeds a consumer is eligible 30
155		-	to request and the frequency with which proceeds are provided to a consumer, 31
156		-	is not contingent on whether the consumer pays a tip, gratuity, or other 32
157		-	donation or on the size of the tip, gratuity, or other donation. 33
158		-	(d) If a provider seeks repayment of outstanding proceeds or payment 34
159		-	of fees or other amounts owed, including voluntary tips, gratuities, or other 35
160		-	donations, in connection with the activities covered by this subchapter, from 36 As Engrossed: H3/4/25 H3/6/25 HB1517
161		-
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163		-
164		-
165		-	a consumer’s account at a depository institution, including by means of 1
166		-	electronic fund transfer, the provider shall: 2
167		-	(1) Comply with applicable provisions of the Electronic Fund 3
168		-	Transfer Act, 15 U.S.C. 1693 et seq., as it existed on January 1, 2025, and 4
169		-	regulations adopted under the the Electronic Fund Transfer Act, 15 U.S.C. 5
170		-	1693 et seq., as it existed on January 1, 2025; and 6
171		-	(2)(A) Reimburse the consumer for the full amount of any 7
172		-	overdraft or nonsufficient funds fees imposed on a consumer by the consumer’s 8
173		-	depository institution that were caused by the provider's attempting to seek 9
174		-	payment of any outstanding proceeds, fees, or other payments, in connection 10
175		-	with the activities covered by this subchapter, including voluntary tips, 11
176		-	gratuities, or other donations, on a date before, or in an incorrect amount 12
177		-	from, the date or amount disclosed to the consumer. 13
178		-	(B) The provider is not subject to the requirements under 14
179		-	subdivision (d)(2)(A) of this section with respect to payments of outstanding 15
180		-	proceeds or fees incurred by a consumer through fraudulent or other unlawful 16
181		-	means. 17
182		-	(e) A provider shall not: 18
183		-	(1) Share with an employer a portion of any fees, voluntary 19
184		-	tips, gratuities, or other donations that were received from or charged to a 20
185		-	consumer for earned wage access services; 21
186		-	(2) Require a consumer’s credit report or a credit score 22
187		-	provided or issued by a consumer reporting agency to determine a consumer’s 23
188		-	eligibility for earned wage access services; 24
189		-	(3) Accept payment of outstanding proceeds, fees, voluntary 25
190		-	tips, gratuities, or other donations from a consumer by means of a credit 26
191		-	card or charge card; 27
192		-	(4) Charge a consumer a late fee, deferral fee, interest, or any 28
193		-	other penalty or charge for failure to pay outstanding proceeds, fees, 29
194		-	voluntary tips, gratuities, or other donations; 30
195		-	(5) Compel or attempt to compel payment by a consumer of 31
196		-	outstanding proceeds, fees, voluntary tips, gratuities, or other donations to 32
197		-	the provider by: 33
198		-	(A) A suit against the consumer in a court of competent 34
199		-	jurisdiction; 35
200		-	(B) Use of a third party to pursue collection from the 36 As Engrossed: H3/4/25 H3/6/25 HB1517
201		-
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203		-
204		-
205		-	consumer on the provider’s behalf; or 1
206		-	(C) Sale of outstanding proceeds, fees, voluntary tips, 2
207		-	gratuities, or other donations to a third -party collector or debt buyer for 3
208		-	collection from a consumer; 4
209		-	(6) Mislead or deceive a consumer about the voluntary nature of 5
210		-	the tips, gratuities, or donations or represent that the tip, gratuity, or 6
211		-	other donation will benefit a specific individual or group of individuals if 7
212		-	the provider solicits, charges, or receives tips, gratuities, or other 8
213		-	donations from a consumer; and 9
214		-	(7) Advertise, print, display, publish, distribute, or broadcast 10
215		-	or cause to be advertised, printed, displayed, published, distributed, or 11
216		-	broadcast, in any manner, any statement or representation with regard to the 12
217		-	earned wage access services offered by the provider that: 13
218		-	(A) Is false, misleading, or deceptive; or 14
219		-	(B) Omits material information that is necessary to make 15
220		-	the statement or representation not false, misleading, or deceptive. 16
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	193	+	(C) Sale of outstanding proceeds, fees, voluntary tips, 1
	194	+	gratuities, or other donations to a third -party collector or debt buyer for 2
	195	+	collection from a consumer; 3
	196	+	(7) Mislead or deceive a consumer about the voluntary nature of 4
	197	+	the tips, gratuities, or donations or represent that the tip, gratuity, or 5
	198	+	other donation will benefit a specific individual or group of individuals if 6
	199	+	the provider solicits, charges, or receives tips, gratuities, or other 7
	200	+	donations from a consumer; and 8
	201	+	(8) Advertise, print, display, publish, distribute, or broadcast 9
	202	+	or cause to be advertised, printed, displayed, published, distributed, or 10
	203	+	broadcast, in any manner, any statement or representation with regard to the 11
	204	+	earned wage access services offered by the provider that: 12
	205	+	(A) Is false, misleading, or deceptive; or 13
	206	+	(B) Omits material information that is necessary to make 14
	207	+	the statement or representation not false, misleading, or deceptive. 15
	208	+	16
221	209		17
222		-	~~23-52-204. Applicability.~~ 18
223		-	~~This subchapter does not apply to a corporation organized under the~~ 19
224		-	~~general banking laws, savings and loan laws, or credit union laws of this~~ 20
225		-	~~state, any other state, or the United States Government.~~ 21
	210	+	18
	211	+	19
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	213	+	21
226	214		22
227		-	~~/s/Ray~~ 23
	215	+	23
228	216		24
229	217		25
230		-	~~APPROVED: 3/20/25~~ 26
	218	+	26
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