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Arizona Senate Bill SB1273

Arizona 2024 Regular Session

Arizona Senate Bill SB1273 Compare Versions

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11 REFERENCE TITLE: earned wage access; providers; license State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024 SB 1273 Introduced by Senator Mesnard An Act amending sections 6-101, 6-602 and 6-1202, Arizona Revised Statutes; amending title 6, Arizona Revised Statutes, by adding chapter 18; relating to banks and financial institutions. (TEXT OF BILL BEGINS ON NEXT PAGE)
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6868 amending sections 6-101, 6-602 and 6-1202, Arizona Revised Statutes; amending title 6, Arizona Revised Statutes, by adding chapter 18; relating to banks and financial institutions.
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7878 Be it enacted by the Legislature of the State of Arizona: Section 1. Section 6-101, Arizona Revised Statutes, is amended to read: START_STATUTE6-101. Definitions In this title, unless the context otherwise requires: 1. "Automated teller machine" means an automated device that is established by a bank, savings and loan association or credit union and that facilitates customer-bank communications activities, including taking deposits and disbursing cash drawn against a customer's deposit account or a customer's preapproved loan account, at a location separate from the home office or a branch. 2. "Bank" means a corporation that holds a banking permit issued pursuant to chapter 2 of this title. 3. "Banking office": (a) Means any place of business of the bank at which deposits are received, checks are paid or money is loaned. but (b) Does not include the premises used for computer operations, proofing, record keeping recordkeeping, accounting, storage, maintenance or other administrative or service functions. 4. "Branch" means any banking office other than the principal banking office. 5. "Department" means the department of insurance and financial institutions. 6. "Deputy director" means the deputy director of the financial institutions division of the department. 7. "Director" has the same meaning prescribed in section 20-102. 8. "Division" means the financial institutions division within the department. 9. "Enterprise" means any person under the jurisdiction of the department other than a financial institution. 10. "Federal deposit insurance corporation" includes any successor to the corporation or other agency or instrumentality of the United States that undertakes to discharge the purposes of the corporation. 11. "Financial institution" means banks, trust companies, savings and loan associations, earned wage access providers as prescribed in chapter 18 of this title, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the department. 12. "Home state" means the state that has granted the bank its charter, permit or license to operate. 13. "Host state" means the state in which a financial institution is doing business and not the state that has granted the bank its charter, permit or license to operate. 14. "In-state financial institution" means a state or federal bank, savings bank, savings and loan association or holding company with its home office located in this state. 15. "International banking facility" means a facility that is represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and that is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an edge corporation organized under section 25(a) of the federal reserve act (12 United States Code sections 611 through 631) or an agreement corporation having an agreement or undertaking with the board of governors of the federal reserve system under section 25 of the federal reserve act (12 United States Code sections 601 through 604(a)) that includes only international banking facility time deposits and international banking facility extensions of credit as defined in 12 Code of Federal Regulations part 204. 16. "National credit union administration" includes any successor to the organization or other agency or instrumentality of the United States that undertakes to discharge the purposes of the organization. 17. "Out-of-state bank" means a bank, savings bank or savings and loan association that is approved by the deputy director pursuant to section 6-322 and that has a charter, a permit or any other license to operate that is issued by a state other than this state. 18. "Out-of-state financial institution" means a state or federal bank, savings bank, savings and loan association, earned wage access provider as prescribed in chapter 18 of this title or holding company with its home office in a state other than this state. 19. "Title" includes this title, title 32, chapters 9 and 36 and title 44, chapter 2.1. END_STATUTE Sec. 2. Section 6-602, Arizona Revised Statutes, is amended to read: START_STATUTE6-602. Exemptions A. This chapter does not apply to: 1. A person who does business under any other law of this state, or any other state while regulated by a state agency of that other state, or of the United States, relating to banks, savings banks, trust companies, savings and loan associations, profit sharing and pension trusts, credit unions, insurance companies or receiverships if the consumer lender loan transactions are regulated by the other law or are under the jurisdiction of a court. 2. A person who is licensed as a pawnbroker pursuant to title 44, chapter 11, article 3 to the extent that the person's activities are governed by that article. 3. A person who is not regularly engaged in the business of making consumer lender loans. 4. A person who is licensed pursuant to chapter 9 of this title to the extent that the person's activities are governed by that chapter. 5. A person who is licensed as a earned wage access provider pursuant to chapter 18 of this title. B. The requirements of this chapter do not apply to: 1. Closed end loans of more than $10,000. 2. Advances on open end revolving loans that are not secured by the consumer's principal residence with an agreed on credit limit of more than $10,000, regardless of the amount of any advances on these revolving loans. 3. Advances on open end revolving loans that are secured by the consumer's principal residence with an agreed on credit limit of more than $10,000, regardless of the amount of any advances on these revolving loans. 4. Consumer lender loans that are lawfully made to nonresidents of the state in any other state under and in accordance with a regulatory consumer lender law similar in principle to this chapter. 5. Educational loans that are either: (a) Made, insured or guaranteed pursuant to a program authorized by the United States, this state or any other state. (b) Made by a nonprofit organization that is exempt from taxation under section 501(c)(3) of the internal revenue code to students who attend postsecondary educational institutions in this state. 6. Earned wage access transactions and related payments regulated pursuant to chapter 18 of this title. C. A consumer loan made pursuant to a consumer lender license is not a secondary motor vehicle finance transaction as defined in section 44-281. END_STATUTE Sec. 3. Section 6-1202, Arizona Revised Statutes, is amended to read: START_STATUTE6-1202. Exemptions A. This article does not apply to any of the following: 1. An operator of a payment system that provides processing, clearing or settlement services between or among persons exempted by this section or licensees in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearinghouse transfers, earned wage access transactions regulated pursuant to chapter 18 of this title or similar transfers of money. 2. A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission, provided to the payor by the payee, if all of the following apply: (a) A written agreement exists between the payee and the agent directing the agent to collect and process payments from payors on the payee's behalf. (b) The payee holds the agent out to the public as accepting payments for goods or services on the payee's behalf. (c) Payment for the goods and services is treated as received by the payee on receipt by the agent so that the payor's obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the money to the payee. 3. A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender and the sender's designated recipient, if the entity meets all of the following criteria: (a) Is properly licensed or exempt from the licensing requirements under this article. (b) Provides a receipt, electronic record or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction. (c) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the money to the sender's designated recipient. 4. The United States or a department, an agency or an instrumentality of the United States or its agent. 5. Money transmission by the United States postal service or by an agent of the United States postal service. 6. A state, county, city or town or any other governmental agency or governmental subdivision or instrumentality of a state or its agent. 7. A federally insured depository financial institution, a bank holding company, an office of an international banking corporation, A foreign bank that establishes a federal branch pursuant to 12 United States Code section 3102, a corporation organized as a bank service company pursuant to 12 United States Code sections 1861 through 1867 or a corporation organized pursuant to 12 United States Code sections 611 through 633. 8. An electronic funds transfer of governmental benefits for a federal, state, county or governmental agency by a contractor on behalf of the United States or a department, agency or instrumentality of the United States or on behalf of a state or governmental subdivision, agency or instrumentality of a state. 9. A board of trade designated as a contract market under the commodity exchange act (7 United States Code sections 1 through 26 27f) or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for the board of trade. 10. A registered futures commission merchant under the federal commodities laws to the extent of its operation as a merchant. 11. A person registered as a securities broker or dealer under federal or state securities laws to the extent of the person's operation. 12. An individual employed by a licensee, an authorized delegate or any person exempt from the licensing requirements of this article when acting within the scope of employment and under the supervision of the licensee, authorized delegate or exempt person as an employee and not as an independent contractor. 13. A person expressly appointed as a third-party service provider to or agent of an entity exempt under paragraph 7 of this subsection solely to the extent that both: (a) The service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform. (b) The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations on receipt of the purchaser's or holder's money or monetary value by the service provider or agent. 14. A person exempt by regulation or order if the director finds such exemption to be in the public interest and that regulating the person is not necessary for the purposes of this article. B. The director may require that any person claiming to be exempt from licensing pursuant to this section provide information and documentation to the director demonstrating that the person qualifies for any claimed exemption. END_STATUTE Sec. 4. Title 6, Arizona Revised Statutes, is amended by adding chapter 18, to read: CHAPTER 18 EARNED WAGE ACCESS ARTICLE 1. GENERAL PROVISIONS START_STATUTE6-1801. Definitions In this chapter, unless the context otherwise requires: 1. "business entity" means any corporation, limited liability company, partnership, association or other commercial entity. 2. "consumer" means an individual who resides in this state. 3. "consumer-directed wage access service" means delivering to consumers access to earned but unpaid income that is based on the consumer's representations and the provider's reasonable determination of the consumer's earned but unpaid income. 4. "earned but unpaid income" means salary, wages, compensation or other income that a consumer or an employer has represented and that a provider has reasonably determined has been earned or accrued to the benefit of the consumer in exchange for the consumer's services to the employer or on behalf of the employer, includING: (a) On an hourly, project-based, piecework or other basis. (b) Circumstances in which the consumer is acting as an independent contractor of the employer, but has not, at the time of the payment of proceeds, been paid to the consumer by the employer. 5. "earned wage access service" means providing consumer-directed wage access services or employer-integrated wage access services, or both. 6. "employer": (a) means a person that employs a consumer or any other person that is contractually obligated to pay a consumer earned but unpaid income in exchange for the consumer's provision of services to the employer or on behalf of the employer, including: (i) On an hourly, project-based, piecework or other basis. (ii) Circumstances in which the consumer is acting as an independent contractor with respect to the employer. (b) does not include: (i) a customer of an employer. (ii) any other person whose obligation to make a payment of salary, wages, compensation or other income to a consumer is not based on the provision of services by that consumer for or on behalf of the person. 7. "employer-integrated wage access services" means delivering to consumers access to earned but unpaid income that is based on employment, income or attendance data obtained directly or indirectly from an employer. 8. "fee": (a) means a fee imposed by a provider for delivery or expedited delivery of proceeds to a consumer or a subscription or membership fee imposed by a provider for a bona fide group of services that includes earned wage access services. (b) does not include: (i) voluntary tips. (ii) gratuity. (iii) other donations. 9. "licensee" means a business entity that is licensed by the division under section 6-1802 as a provider. 10. "nationwide mortgage licensing system and registry" means a MORTGAGE licensing system DEVELOPED and maintained by a conference of state bank supervisors and an American association of residential mortgage regulations for the state licensing and registration of licensed loan originators and REGISTERED loan originators or such a system established by the United states director of the bureau of consumer financial protection. 11. "proceeds" means a payment in United States dollars to a consumer by a provider that is based on earned but unpaid income. 12. "provider": (a) means a business entity that provides earned wage access services to consumers. (b) does not include: (i) a service provider, such as a payroll service provider, whose role may include verifying the available earnings but that is not contractually obligated to fund proceeds delivered as part of an earned wage access service. (ii) an employer that offers a portion of salary, wages or compensation directly to its employees or independent contractors before the normally scheduled pay date. END_STATUTE START_STATUTE6-1802. License; application; fees; bond confidentiality; definitions A. A provider, whether located in this state or in another state, may not provide earned wage access services in this state unless the provider has been issued a license by the division. B. A provider required to be licensed under this section shall apply for a license on a form an in a manner as prescribed by the division. The application shall include all of the following information: 1. The name of the provider. 2. The name under which the provider transacts business, if different from paragraph 1 of this subsection. 3. The address of the provider's principal office, which may be outside of this state. 4. The addresses of all of the provider's offices or retail stores, if any, located in this state. 5. If the provider provides earned wage access services at a location that is not an office or retail store in this state, a brief description of the manner in which the provider provides earned wage access services. 6. The address of the provider's designated agent on whom service of process may be made in this state. 7. The provider's federal employer identification number. 8. Any other similar information the division requires to administer this chapter. C. In addition to the application under subsection b of this section, each licensee shall register with and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry. D. Each provider required to be licensed under this section shall update any information provided in its license application within fifteen business days after any material change in that information. E. A provider that submits an application for a license under this section shall pay an application fee in an amount to be DETERMINED by the deputy director. F. A provider required to be licensed under this section shall file with the division and maintain in force a surety bond that is issued by a surety company admitted to do business in this state and that meets all of the following requirements: 1. Is in an amount equal to $25,000. 2. Is in favor of this state for the benefit of any person that is damaged by a violation of this chapter. 3. Is in favor of any person that is damaged by a violation of this chapter. G. A person that claims against a bond described under subsection F of this section for a violation of this chapter may maintain an action at law against the provider that obtained the surety that issued the bond. The surety is liable only for actual damages and not for punitive damages. The aggregate liability of the surety to all persons damaged by a provider's violation of this chapter does not exceed the amount of the bond. H. Once the applicant submits an application and remits payment of the application fee, the division shall conduct a character and general fitness and financial responsibility investigation of the following: 1. The Applicant. 2. The applicant's partners if the provider is a partnership. 3. The applicant's members if the provider is a limited liability company or association. 4. The applicant's officers and directors if the provider is a corporation. I. If the investigation pursuant to SUBSECTION H of this section finds relevant facts that warrant the belief that the Applicant's business will be operated in COMPLIANCE with this chapter, the division shall issue a license, and if not, the division shall deny the application for a license. J. The division may not issue a license to an applicant if any of the following applies: 1. The applicant fails to provide any information required under subsection b of this section. 2. The department of revenue certifies that the applicant is liable for delinquent taxes as prescribed in section 42-1103. K. the provider's license remains in force and effect until the Division suspends or revokes the license in accordance with this chapter or the provider surrenders the license. On or before December 10 of each year, A licensee shall pay a renewal fee established by the division for the next succeeding calendar year. The division may establish rules that provide for the reinstatement of expired licenses that are consistent with the standards established by the nationwide mortgage licensing system and registry. L. A provider may not assign a license unless it is approved by the division or by operation of law in connection with a merger or conversion. M. A provider shall conspicuously post its license at the physical place of business or on the provider's website, if the provider conducts business on a website. N. The division shall keep confidential the information contained in an application for a license under subsection b of this section and any information obtained during the division's character and general fitness and financial RESPONSIBILITY investigation under subsection H of this section, and thAT information is not subject to public copying or public inspection under section 39-121. O. For the purposes of this section: 1. "applicant" means a provider that has submitted an application for a license under subsection b of this section. 2. "director" means a member of the applicant's or licensee's board of directors. 3. "Member", except under paragraph 2 of this subsection, means a person who either: (a) has the right to receive on dissolution. (b) has contributed ten percent or more of the capital contribution of an applicant or licensee that is organized as a limited liability company or association. 4. "officer": (a) Means a person who participates or has authority to participate, other than in the capacity of a director, in major policymaking functions of an applicant or licensee, whether or not the person has an official title. (b) Includes the chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief credit officer and chief compliance officer, each executive vice president or senior vice president and any other person meeting the standard under this paragraph. 5. "partner" means a person that either: (a) has the right to receive on dissolution. (b) has contributed ten percent or more of the capital contribution of an applicant or licensee that is organized as a partnership. END_STATUTE START_STATUTE6-1803. Provider requirements; limitations A. A provider required to be licensed under section 6-1802 shall do all of the following: 1. Develop and implement policies and procedures to respond to questions raised by consumers and address complaints from consumers in an expedient manner. 2. Offer at least one reasonable option to a consumer about how to obtain proceeds at no cost and clearly explain how to elect that no cost option. 3. Before entering into an agreement with a consumer for earned wage access services, do all of the following: (a) inform the consumer of the consumer's rights under the agreement. (b) fully and clearly disclose all fees associated with the earned wage access services. 4. Inform the consumer of any material change to the terms and conditions of the earned wage access services before implementing that change to the consumer. 5. Allow the consumer to cancel use of the provider's earned wage access services at any time without incurring a cancellation fee or penalty. 6. Comply with all local, state and federal privacy and information security laws. 7. If a provider solicits, charges, or receives a tip, gratuity or other donation from a consumer, do all of the following: (a) clearly and conspicuously disclose to the consumer immediately before each transaction that any tip, gratuity or other donation amount may be zero and is voluntary. (b) clearly and conspicuously disclose in its service contract with the consumer and elsewhere that any tip, gratuity or donation is voluntary and that offering earned wage access services, including the amount of proceeds a consumer is eligible to request and the frequency with which proceeds are provided to a consumer, is not contingent on whether the consumer pays any tip, gratuity or other donation or on the size of the tip, gratuity or other donation. 8. Provide proceeds to a consumer by any means mutually agreed on by the consumer and the licensee. 9. If the provider seeks repayment of outstanding proceeds or payment of fees or other amounts owed, including voluntary tips, gratuities or other donations in connection with the activities covered by this chapter from a consumer's account at a depository institution by means of an electronic funds transfer, do all of the following: (a) comply with applicable provisions of the federal electronic fund transfer act as prescribed in 15 United States Code section 1693 and section 1693r and the regulations adopted under 15 United States Code section 1693 and section 1693r. (b) reimburse the consumer for the full amount of any overdraft or non-sufficient fund fees imposed on a consumer by a 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 the activities covered by this chapter, including voluntary tips, gratuities or other donations on a date before, or in an incorrect amount from, the date or amount disclosed to the consumer. The provider is not subject to the requirements in this subsection with respect to payments of outstanding amounts or fees incurred by a consumer through fraudulent or other unlawful means. B. A provider thAt is required to be licensed under section 6-1802 may not do any of the following: 1. Share with an employer a portion of any fees, voluntary tips, gratuities or other donations that were received from or charged to a consumer for earned wage access services. 2. Require a consumer's credit report or a credit score provided or issued by a consumer reporting agency to determine a consumer's eligibility for earned wage access services. 3. Accept payment of outstanding proceeds, fees, voluntary tips, gratuities or other donations from a consumer by means of a credit card or charge card. 4. Charge a late fee or deferral fee, interest or any other penalty or charge for failure to pay outstanding proceeds, fees, voluntary tips, gratuities or other donations. 5. Report to a consumer reporting agency or debt collector any information about the consumer regarding the inability of the provider to be repaid outstanding proceeds, fees, voluntary tips, gratuities or other donations. 6. Compel or attempt to compel payment by a consumer of outstanding proceeds, fees, voluntary tips, gratuities or other donations to the provider through any of the following means: (a) a suit against the consumer in a court of competent jurisdiction. (b) use of a third party to pursue collection from the consumer on the provider's behalf. (c) sale of outstanding amounts to a third-party collector or debt buyer for collection from the consumer. 7. solicit, charge or receive tips, gratuities or other donations from a consumer, mislead or deceive consumers about the voluntary nature of the tips, gratuities or other donations or make representations that the tips, gratuities or other donations will benefit specific individuals. 8. Advertise, print, display, publish, distribute or broadcast or cause to be advertised, printed, displayed, published, distributed or broadcast, in any manner, any statement or representation with regard to the earned wage access services that are offered by the provider that is false, misleading or deceptive, or that omits or states material information that is necessary to make the statements not false, misleading or deceptive. C. The limits set forth in subsection B, subdivision 6 of this section do not apply to a provider that is: 1. seeking payment of any outstanding amount or fee that was incurred by a consumer through fraud or other unlawful means. 2. Suing an employer for breach of the employer's contract to the provider. D. A provider may use the mailing address provided by a consumer to determine the consumer's state of residence for the purposes of this chapter. END_STATUTE START_STATUTE6-1804. Interpretation; applicability A. Notwithstanding any other law, earned wage access services offered and provided by a licensee in compliance with this chapter are not considered any of the following: 1. A violation of or noncompliance with section 23-1068, subsection a or any other law of this state governing a sale, assignment or order for earned but unpaid leave. 2. A loan or other form of credit or debt, and the provider is not considered a creditor, debt collector or lender. 3. Money transmission, and the provider is not considered a money transmitter. B. Notwithstanding any other law, fees paid to a licensee in accordance with this chapter are not considered interest or finance charges. If there is a conflict between this chapter and any other statute, this chapter controls. C. Title 32, chapter 9 does not apply to proceeds a provider provides to a consumer in accordance with this chapter. D. A voluntary tip, gratuity, or other donation paid by a consumer to a licensee in accordance with this chapter are not considered a finance charge. END_STATUTE START_STATUTE6-1805. Annual report; books and records A. On or before july 1 of each year, a provider that is required to be licensed under section 6-1802 shall submit an annual report to the division that includes all of the following information related to earned wage access services that the provider provided in this state during the prior year: 1. Gross revenue that is attributed to earned wage access services. 2. The total number of transactions in which the provider provided proceeds to consumers. 3. The total number of unique consumers to whom the provider provided proceeds. 4. The total dollar amount of proceeds the provider provided to consumers. 5. The total dollar amount of fees, voluntary tips, gratuities or other donations the provider received from consumers. B. The division may take disciplinary action against a provider if the provider fails to submit a timely report as required under this section. C. The division shall keep confidential the information contained in the annual report under subsection a of this section, and that information is not subject to public copying or public inspection under section 39-121. The division may prepare and make publicly available an aggregated and anonymized analysis of the information submitted by all providers under this section. D. A provider required to be licensed under section 6-1802 shall keep such books and records that, in the opinion of the division, will enable the division to determine whether the provider is in compliance with this chapter. END_STATUTE START_STATUTE6-1806. Suspension or revocation of license A. The division may suspend or revoke a provider's license that is issued under this chapter if the division finds any of the following: 1. the provider violated this chapter, any rule adopted under this chapter or any lawful order of the division made under this chapter. 2. The division discovered a fact or condition that would have been grounds to deny the application if the fact or condition had existed at the time the provider submitted an original application. 3. The provider made a material misstatement in an application or in the information provided to the division. 4. The provider failed to pay the annual license fee or to maintain in effect the surety bond required under section 6-1802, subsection g. B. The division shall revoke a provider's license if the department of revenue certifies under section 42-1103 that the provider is liable for delinquent taxes. C. Except as provided in subsection b of this section, the division may not revoke or suspend a provider's license except after a hearing pursuant to section 6-1807. END_STATUTE START_STATUTE6-1807. Violations; civil action; temporary restraining order; hearing; enforcement; civil penalty A. The division may bring a civil action to restrain by temporary or permanent injunction a person from violating this chapter or rules adopted under this chapter or to restrain a person from engaging in false, misleading, deceptive or unconscionable conduct in connection with offering earned wage access services. B. The division may seek a temporary restraining order without written or oral notice to the adverse party. If a court finds that there is reasonable cause to believe that the respondent is engaged in the conduct sought to be restrained and that such conduct violates this chapter or rules adopted under this chapter, the court may grant a temporary restraining order or any temporary relief the court determines is appropriate. A temporary restraining order granted without notice shall expire by its terms within a stated time after entry, not to exceed thirty days, unless within this time it is extended by the court or the party against whom the order is directed consents that it may be extended for a longer period. When a temporary restraining order is granted without notice, the motion for a preliminary injunction shall be set for a hearing at the earliest possible time. On notice to the party who obtained the temporary restraining order without notice, the adverse party may appear and move for dissolution or modification of the temporary restraining order, and the court shall proceed to hear and determine such motion as expeditiously as the ends of justice require. C. The division may recover in a civil action from a person that violates this chapter or rules adopted under this chapter a civil penalty of not less than $100 and not more than $1,000 for each violation. D. In addition to the amount to which the division is entitled under subsection c of this section, the division may recover in a civil action from a person that knowingly or wilfully violates this chapter or rules adopted under this chapter a civil penalty of not less than $1,000 and not more than $10,000 for each violation. END_STATUTE
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8080 Be it enacted by the Legislature of the State of Arizona:
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8282 Section 1. Section 6-101, Arizona Revised Statutes, is amended to read:
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8484 START_STATUTE6-101. Definitions
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8686 In this title, unless the context otherwise requires:
8787
8888 1. "Automated teller machine" means an automated device that is established by a bank, savings and loan association or credit union and that facilitates customer-bank communications activities, including taking deposits and disbursing cash drawn against a customer's deposit account or a customer's preapproved loan account, at a location separate from the home office or a branch.
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9090 2. "Bank" means a corporation that holds a banking permit issued pursuant to chapter 2 of this title.
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9292 3. "Banking office":
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9494 (a) Means any place of business of the bank at which deposits are received, checks are paid or money is loaned. but
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9696 (b) Does not include the premises used for computer operations, proofing, record keeping recordkeeping, accounting, storage, maintenance or other administrative or service functions.
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9898 4. "Branch" means any banking office other than the principal banking office.
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100100 5. "Department" means the department of insurance and financial institutions.
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102102 6. "Deputy director" means the deputy director of the financial institutions division of the department.
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104104 7. "Director" has the same meaning prescribed in section 20-102.
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106106 8. "Division" means the financial institutions division within the department.
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108108 9. "Enterprise" means any person under the jurisdiction of the department other than a financial institution.
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110110 10. "Federal deposit insurance corporation" includes any successor to the corporation or other agency or instrumentality of the United States that undertakes to discharge the purposes of the corporation.
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112112 11. "Financial institution" means banks, trust companies, savings and loan associations, earned wage access providers as prescribed in chapter 18 of this title, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the department.
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114114 12. "Home state" means the state that has granted the bank its charter, permit or license to operate.
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116116 13. "Host state" means the state in which a financial institution is doing business and not the state that has granted the bank its charter, permit or license to operate.
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118118 14. "In-state financial institution" means a state or federal bank, savings bank, savings and loan association or holding company with its home office located in this state.
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120120 15. "International banking facility" means a facility that is represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and that is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an edge corporation organized under section 25(a) of the federal reserve act (12 United States Code sections 611 through 631) or an agreement corporation having an agreement or undertaking with the board of governors of the federal reserve system under section 25 of the federal reserve act (12 United States Code sections 601 through 604(a)) that includes only international banking facility time deposits and international banking facility extensions of credit as defined in 12 Code of Federal Regulations part 204.
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122122 16. "National credit union administration" includes any successor to the organization or other agency or instrumentality of the United States that undertakes to discharge the purposes of the organization.
123123
124124 17. "Out-of-state bank" means a bank, savings bank or savings and loan association that is approved by the deputy director pursuant to section 6-322 and that has a charter, a permit or any other license to operate that is issued by a state other than this state.
125125
126126 18. "Out-of-state financial institution" means a state or federal bank, savings bank, savings and loan association, earned wage access provider as prescribed in chapter 18 of this title or holding company with its home office in a state other than this state.
127127
128128 19. "Title" includes this title, title 32, chapters 9 and 36 and title 44, chapter 2.1. END_STATUTE
129129
130130 Sec. 2. Section 6-602, Arizona Revised Statutes, is amended to read:
131131
132132 START_STATUTE6-602. Exemptions
133133
134134 A. This chapter does not apply to:
135135
136136 1. A person who does business under any other law of this state, or any other state while regulated by a state agency of that other state, or of the United States, relating to banks, savings banks, trust companies, savings and loan associations, profit sharing and pension trusts, credit unions, insurance companies or receiverships if the consumer lender loan transactions are regulated by the other law or are under the jurisdiction of a court.
137137
138138 2. A person who is licensed as a pawnbroker pursuant to title 44, chapter 11, article 3 to the extent that the person's activities are governed by that article.
139139
140140 3. A person who is not regularly engaged in the business of making consumer lender loans.
141141
142142 4. A person who is licensed pursuant to chapter 9 of this title to the extent that the person's activities are governed by that chapter.
143143
144144 5. A person who is licensed as a earned wage access provider pursuant to chapter 18 of this title.
145145
146146 B. The requirements of this chapter do not apply to:
147147
148148 1. Closed end loans of more than $10,000.
149149
150150 2. Advances on open end revolving loans that are not secured by the consumer's principal residence with an agreed on credit limit of more than $10,000, regardless of the amount of any advances on these revolving loans.
151151
152152 3. Advances on open end revolving loans that are secured by the consumer's principal residence with an agreed on credit limit of more than $10,000, regardless of the amount of any advances on these revolving loans.
153153
154154 4. Consumer lender loans that are lawfully made to nonresidents of the state in any other state under and in accordance with a regulatory consumer lender law similar in principle to this chapter.
155155
156156 5. Educational loans that are either:
157157
158158 (a) Made, insured or guaranteed pursuant to a program authorized by the United States, this state or any other state.
159159
160160 (b) Made by a nonprofit organization that is exempt from taxation under section 501(c)(3) of the internal revenue code to students who attend postsecondary educational institutions in this state.
161161
162162 6. Earned wage access transactions and related payments regulated pursuant to chapter 18 of this title.
163163
164164 C. A consumer loan made pursuant to a consumer lender license is not a secondary motor vehicle finance transaction as defined in section 44-281. END_STATUTE
165165
166166 Sec. 3. Section 6-1202, Arizona Revised Statutes, is amended to read:
167167
168168 START_STATUTE6-1202. Exemptions
169169
170170 A. This article does not apply to any of the following:
171171
172172 1. An operator of a payment system that provides processing, clearing or settlement services between or among persons exempted by this section or licensees in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearinghouse transfers, earned wage access transactions regulated pursuant to chapter 18 of this title or similar transfers of money.
173173
174174 2. A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission, provided to the payor by the payee, if all of the following apply:
175175
176176 (a) A written agreement exists between the payee and the agent directing the agent to collect and process payments from payors on the payee's behalf.
177177
178178 (b) The payee holds the agent out to the public as accepting payments for goods or services on the payee's behalf.
179179
180180 (c) Payment for the goods and services is treated as received by the payee on receipt by the agent so that the payor's obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the money to the payee.
181181
182182 3. A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender and the sender's designated recipient, if the entity meets all of the following criteria:
183183
184184 (a) Is properly licensed or exempt from the licensing requirements under this article.
185185
186186 (b) Provides a receipt, electronic record or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction.
187187
188188 (c) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the money to the sender's designated recipient.
189189
190190 4. The United States or a department, an agency or an instrumentality of the United States or its agent.
191191
192192 5. Money transmission by the United States postal service or by an agent of the United States postal service.
193193
194194 6. A state, county, city or town or any other governmental agency or governmental subdivision or instrumentality of a state or its agent.
195195
196196 7. A federally insured depository financial institution, a bank holding company, an office of an international banking corporation, A foreign bank that establishes a federal branch pursuant to 12 United States Code section 3102, a corporation organized as a bank service company pursuant to 12 United States Code sections 1861 through 1867 or a corporation organized pursuant to 12 United States Code sections 611 through 633.
197197
198198 8. An electronic funds transfer of governmental benefits for a federal, state, county or governmental agency by a contractor on behalf of the United States or a department, agency or instrumentality of the United States or on behalf of a state or governmental subdivision, agency or instrumentality of a state.
199199
200200 9. A board of trade designated as a contract market under the commodity exchange act (7 United States Code sections 1 through 26 27f) or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for the board of trade.
201201
202202 10. A registered futures commission merchant under the federal commodities laws to the extent of its operation as a merchant.
203203
204204 11. A person registered as a securities broker or dealer under federal or state securities laws to the extent of the person's operation.
205205
206206 12. An individual employed by a licensee, an authorized delegate or any person exempt from the licensing requirements of this article when acting within the scope of employment and under the supervision of the licensee, authorized delegate or exempt person as an employee and not as an independent contractor.
207207
208208 13. A person expressly appointed as a third-party service provider to or agent of an entity exempt under paragraph 7 of this subsection solely to the extent that both:
209209
210210 (a) The service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform.
211211
212212 (b) The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations on receipt of the purchaser's or holder's money or monetary value by the service provider or agent.
213213
214214 14. A person exempt by regulation or order if the director finds such exemption to be in the public interest and that regulating the person is not necessary for the purposes of this article.
215215
216216 B. The director may require that any person claiming to be exempt from licensing pursuant to this section provide information and documentation to the director demonstrating that the person qualifies for any claimed exemption. END_STATUTE
217217
218218 Sec. 4. Title 6, Arizona Revised Statutes, is amended by adding chapter 18, to read:
219219
220220 CHAPTER 18
221221
222222 EARNED WAGE ACCESS
223223
224224 ARTICLE 1. GENERAL PROVISIONS
225225
226226 START_STATUTE6-1801. Definitions
227227
228228 In this chapter, unless the context otherwise requires:
229229
230230 1. "business entity" means any corporation, limited liability company, partnership, association or other commercial entity.
231231
232232 2. "consumer" means an individual who resides in this state.
233233
234234 3. "consumer-directed wage access service" means delivering to consumers access to earned but unpaid income that is based on the consumer's representations and the provider's reasonable determination of the consumer's earned but unpaid income.
235235
236236 4. "earned but unpaid income" means salary, wages, compensation or other income that a consumer or an employer has represented and that a provider has reasonably determined has been earned or accrued to the benefit of the consumer in exchange for the consumer's services to the employer or on behalf of the employer, includING:
237237
238238 (a) On an hourly, project-based, piecework or other basis.
239239
240240 (b) Circumstances in which the consumer is acting as an independent contractor of the employer, but has not, at the time of the payment of proceeds, been paid to the consumer by the employer.
241241
242242 5. "earned wage access service" means providing consumer-directed wage access services or employer-integrated wage access services, or both.
243243
244244 6. "employer":
245245
246246 (a) means a person that employs a consumer or any other person that is contractually obligated to pay a consumer earned but unpaid income in exchange for the consumer's provision of services to the employer or on behalf of the employer, including:
247247
248248 (i) On an hourly, project-based, piecework or other basis.
249249
250250 (ii) Circumstances in which the consumer is acting as an independent contractor with respect to the employer.
251251
252252 (b) does not include:
253253
254254 (i) a customer of an employer.
255255
256256 (ii) any other person whose obligation to make a payment of salary, wages, compensation or other income to a consumer is not based on the provision of services by that consumer for or on behalf of the person.
257257
258258 7. "employer-integrated wage access services" means delivering to consumers access to earned but unpaid income that is based on employment, income or attendance data obtained directly or indirectly from an employer.
259259
260260 8. "fee":
261261
262262 (a) means a fee imposed by a provider for delivery or expedited delivery of proceeds to a consumer or a subscription or membership fee imposed by a provider for a bona fide group of services that includes earned wage access services.
263263
264264 (b) does not include:
265265
266266 (i) voluntary tips.
267267
268268 (ii) gratuity.
269269
270270 (iii) other donations.
271271
272272 9. "licensee" means a business entity that is licensed by the division under section 6-1802 as a provider.
273273
274274 10. "nationwide mortgage licensing system and registry" means a MORTGAGE licensing system DEVELOPED and maintained by a conference of state bank supervisors and an American association of residential mortgage regulations for the state licensing and registration of licensed loan originators and REGISTERED loan originators or such a system established by the United states director of the bureau of consumer financial protection.
275275
276276 11. "proceeds" means a payment in United States dollars to a consumer by a provider that is based on earned but unpaid income.
277277
278278 12. "provider":
279279
280280 (a) means a business entity that provides earned wage access services to consumers.
281281
282282 (b) does not include:
283283
284284 (i) a service provider, such as a payroll service provider, whose role may include verifying the available earnings but that is not contractually obligated to fund proceeds delivered as part of an earned wage access service.
285285
286286 (ii) an employer that offers a portion of salary, wages or compensation directly to its employees or independent contractors before the normally scheduled pay date. END_STATUTE
287287
288288 START_STATUTE6-1802. License; application; fees; bond confidentiality; definitions
289289
290290 A. A provider, whether located in this state or in another state, may not provide earned wage access services in this state unless the provider has been issued a license by the division.
291291
292292 B. A provider required to be licensed under this section shall apply for a license on a form an in a manner as prescribed by the division. The application shall include all of the following information:
293293
294294 1. The name of the provider.
295295
296296 2. The name under which the provider transacts business, if different from paragraph 1 of this subsection.
297297
298298 3. The address of the provider's principal office, which may be outside of this state.
299299
300300 4. The addresses of all of the provider's offices or retail stores, if any, located in this state.
301301
302302 5. If the provider provides earned wage access services at a location that is not an office or retail store in this state, a brief description of the manner in which the provider provides earned wage access services.
303303
304304 6. The address of the provider's designated agent on whom service of process may be made in this state.
305305
306306 7. The provider's federal employer identification number.
307307
308308 8. Any other similar information the division requires to administer this chapter.
309309
310310 C. In addition to the application under subsection b of this section, each licensee shall register with and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry.
311311
312312 D. Each provider required to be licensed under this section shall update any information provided in its license application within fifteen business days after any material change in that information.
313313
314314 E. A provider that submits an application for a license under this section shall pay an application fee in an amount to be DETERMINED by the deputy director.
315315
316316 F. A provider required to be licensed under this section shall file with the division and maintain in force a surety bond that is issued by a surety company admitted to do business in this state and that meets all of the following requirements:
317317
318318 1. Is in an amount equal to $25,000.
319319
320320 2. Is in favor of this state for the benefit of any person that is damaged by a violation of this chapter.
321321
322322 3. Is in favor of any person that is damaged by a violation of this chapter.
323323
324324 G. A person that claims against a bond described under subsection F of this section for a violation of this chapter may maintain an action at law against the provider that obtained the surety that issued the bond. The surety is liable only for actual damages and not for punitive damages. The aggregate liability of the surety to all persons damaged by a provider's violation of this chapter does not exceed the amount of the bond.
325325
326326 H. Once the applicant submits an application and remits payment of the application fee, the division shall conduct a character and general fitness and financial responsibility investigation of the following:
327327
328328 1. The Applicant.
329329
330330 2. The applicant's partners if the provider is a partnership.
331331
332332 3. The applicant's members if the provider is a limited liability company or association.
333333
334334 4. The applicant's officers and directors if the provider is a corporation.
335335
336336 I. If the investigation pursuant to SUBSECTION H of this section finds relevant facts that warrant the belief that the Applicant's business will be operated in COMPLIANCE with this chapter, the division shall issue a license, and if not, the division shall deny the application for a license.
337337
338338 J. The division may not issue a license to an applicant if any of the following applies:
339339
340340 1. The applicant fails to provide any information required under subsection b of this section.
341341
342342 2. The department of revenue certifies that the applicant is liable for delinquent taxes as prescribed in section 42-1103.
343343
344344 K. the provider's license remains in force and effect until the Division suspends or revokes the license in accordance with this chapter or the provider surrenders the license. On or before December 10 of each year, A licensee shall pay a renewal fee established by the division for the next succeeding calendar year. The division may establish rules that provide for the reinstatement of expired licenses that are consistent with the standards established by the nationwide mortgage licensing system and registry.
345345
346346 L. A provider may not assign a license unless it is approved by the division or by operation of law in connection with a merger or conversion.
347347
348348 M. A provider shall conspicuously post its license at the physical place of business or on the provider's website, if the provider conducts business on a website.
349349
350350 N. The division shall keep confidential the information contained in an application for a license under subsection b of this section and any information obtained during the division's character and general fitness and financial RESPONSIBILITY investigation under subsection H of this section, and thAT information is not subject to public copying or public inspection under section 39-121.
351351
352352 O. For the purposes of this section:
353353
354354 1. "applicant" means a provider that has submitted an application for a license under subsection b of this section.
355355
356356 2. "director" means a member of the applicant's or licensee's board of directors.
357357
358358 3. "Member", except under paragraph 2 of this subsection, means a person who either:
359359
360360 (a) has the right to receive on dissolution.
361361
362362 (b) has contributed ten percent or more of the capital contribution of an applicant or licensee that is organized as a limited liability company or association.
363363
364364 4. "officer":
365365
366366 (a) Means a person who participates or has authority to participate, other than in the capacity of a director, in major policymaking functions of an applicant or licensee, whether or not the person has an official title.
367367
368368 (b) Includes the chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief credit officer and chief compliance officer, each executive vice president or senior vice president and any other person meeting the standard under this paragraph.
369369
370370 5. "partner" means a person that either:
371371
372372 (a) has the right to receive on dissolution.
373373
374374 (b) has contributed ten percent or more of the capital contribution of an applicant or licensee that is organized as a partnership. END_STATUTE
375375
376376 START_STATUTE6-1803. Provider requirements; limitations
377377
378378 A. A provider required to be licensed under section 6-1802 shall do all of the following:
379379
380380 1. Develop and implement policies and procedures to respond to questions raised by consumers and address complaints from consumers in an expedient manner.
381381
382382 2. Offer at least one reasonable option to a consumer about how to obtain proceeds at no cost and clearly explain how to elect that no cost option.
383383
384384 3. Before entering into an agreement with a consumer for earned wage access services, do all of the following:
385385
386386 (a) inform the consumer of the consumer's rights under the agreement.
387387
388388 (b) fully and clearly disclose all fees associated with the earned wage access services.
389389
390390 4. Inform the consumer of any material change to the terms and conditions of the earned wage access services before implementing that change to the consumer.
391391
392392 5. Allow the consumer to cancel use of the provider's earned wage access services at any time without incurring a cancellation fee or penalty.
393393
394394 6. Comply with all local, state and federal privacy and information security laws.
395395
396396 7. If a provider solicits, charges, or receives a tip, gratuity or other donation from a consumer, do all of the following:
397397
398398 (a) clearly and conspicuously disclose to the consumer immediately before each transaction that any tip, gratuity or other donation amount may be zero and is voluntary.
399399
400400 (b) clearly and conspicuously disclose in its service contract with the consumer and elsewhere that any tip, gratuity or donation is voluntary and that offering earned wage access services, including the amount of proceeds a consumer is eligible to request and the frequency with which proceeds are provided to a consumer, is not contingent on whether the consumer pays any tip, gratuity or other donation or on the size of the tip, gratuity or other donation.
401401
402402 8. Provide proceeds to a consumer by any means mutually agreed on by the consumer and the licensee.
403403
404404 9. If the provider seeks repayment of outstanding proceeds or payment of fees or other amounts owed, including voluntary tips, gratuities or other donations in connection with the activities covered by this chapter from a consumer's account at a depository institution by means of an electronic funds transfer, do all of the following:
405405
406406 (a) comply with applicable provisions of the federal electronic fund transfer act as prescribed in 15 United States Code section 1693 and section 1693r and the regulations adopted under 15 United States Code section 1693 and section 1693r.
407407
408408 (b) reimburse the consumer for the full amount of any overdraft or non-sufficient fund fees imposed on a consumer by a 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 the activities covered by this chapter, including voluntary tips, gratuities or other donations on a date before, or in an incorrect amount from, the date or amount disclosed to the consumer. The provider is not subject to the requirements in this subsection with respect to payments of outstanding amounts or fees incurred by a consumer through fraudulent or other unlawful means.
409409
410410 B. A provider thAt is required to be licensed under section 6-1802 may not do any of the following:
411411
412412 1. Share with an employer a portion of any fees, voluntary tips, gratuities or other donations that were received from or charged to a consumer for earned wage access services.
413413
414414 2. Require a consumer's credit report or a credit score provided or issued by a consumer reporting agency to determine a consumer's eligibility for earned wage access services.
415415
416416 3. Accept payment of outstanding proceeds, fees, voluntary tips, gratuities or other donations from a consumer by means of a credit card or charge card.
417417
418418 4. Charge a late fee or deferral fee, interest or any other penalty or charge for failure to pay outstanding proceeds, fees, voluntary tips, gratuities or other donations.
419419
420420 5. Report to a consumer reporting agency or debt collector any information about the consumer regarding the inability of the provider to be repaid outstanding proceeds, fees, voluntary tips, gratuities or other donations.
421421
422422 6. Compel or attempt to compel payment by a consumer of outstanding proceeds, fees, voluntary tips, gratuities or other donations to the provider through any of the following means:
423423
424424 (a) a suit against the consumer in a court of competent jurisdiction.
425425
426426 (b) use of a third party to pursue collection from the consumer on the provider's behalf.
427427
428428 (c) sale of outstanding amounts to a third-party collector or debt buyer for collection from the consumer.
429429
430430 7. solicit, charge or receive tips, gratuities or other donations from a consumer, mislead or deceive consumers about the voluntary nature of the tips, gratuities or other donations or make representations that the tips, gratuities or other donations will benefit specific individuals.
431431
432432 8. Advertise, print, display, publish, distribute or broadcast or cause to be advertised, printed, displayed, published, distributed or broadcast, in any manner, any statement or representation with regard to the earned wage access services that are offered by the provider that is false, misleading or deceptive, or that omits or states material information that is necessary to make the statements not false, misleading or deceptive.
433433
434434 C. The limits set forth in subsection B, subdivision 6 of this section do not apply to a provider that is:
435435
436436 1. seeking payment of any outstanding amount or fee that was incurred by a consumer through fraud or other unlawful means.
437437
438438 2. Suing an employer for breach of the employer's contract to the provider.
439439
440440 D. A provider may use the mailing address provided by a consumer to determine the consumer's state of residence for the purposes of this chapter. END_STATUTE
441441
442442 START_STATUTE6-1804. Interpretation; applicability
443443
444444 A. Notwithstanding any other law, earned wage access services offered and provided by a licensee in compliance with this chapter are not considered any of the following:
445445
446446 1. A violation of or noncompliance with section 23-1068, subsection a or any other law of this state governing a sale, assignment or order for earned but unpaid leave.
447447
448448 2. A loan or other form of credit or debt, and the provider is not considered a creditor, debt collector or lender.
449449
450450 3. Money transmission, and the provider is not considered a money transmitter.
451451
452452 B. Notwithstanding any other law, fees paid to a licensee in accordance with this chapter are not considered interest or finance charges. If there is a conflict between this chapter and any other statute, this chapter controls.
453453
454454 C. Title 32, chapter 9 does not apply to proceeds a provider provides to a consumer in accordance with this chapter.
455455
456456 D. A voluntary tip, gratuity, or other donation paid by a consumer to a licensee in accordance with this chapter are not considered a finance charge. END_STATUTE
457457
458458 START_STATUTE6-1805. Annual report; books and records
459459
460460 A. On or before july 1 of each year, a provider that is required to be licensed under section 6-1802 shall submit an annual report to the division that includes all of the following information related to earned wage access services that the provider provided in this state during the prior year:
461461
462462 1. Gross revenue that is attributed to earned wage access services.
463463
464464 2. The total number of transactions in which the provider provided proceeds to consumers.
465465
466466 3. The total number of unique consumers to whom the provider provided proceeds.
467467
468468 4. The total dollar amount of proceeds the provider provided to consumers.
469469
470470 5. The total dollar amount of fees, voluntary tips, gratuities or other donations the provider received from consumers.
471471
472472 B. The division may take disciplinary action against a provider if the provider fails to submit a timely report as required under this section.
473473
474474 C. The division shall keep confidential the information contained in the annual report under subsection a of this section, and that information is not subject to public copying or public inspection under section 39-121. The division may prepare and make publicly available an aggregated and anonymized analysis of the information submitted by all providers under this section.
475475
476476 D. A provider required to be licensed under section 6-1802 shall keep such books and records that, in the opinion of the division, will enable the division to determine whether the provider is in compliance with this chapter. END_STATUTE
477477
478478 START_STATUTE6-1806. Suspension or revocation of license
479479
480480 A. The division may suspend or revoke a provider's license that is issued under this chapter if the division finds any of the following:
481481
482482 1. the provider violated this chapter, any rule adopted under this chapter or any lawful order of the division made under this chapter.
483483
484484 2. The division discovered a fact or condition that would have been grounds to deny the application if the fact or condition had existed at the time the provider submitted an original application.
485485
486486 3. The provider made a material misstatement in an application or in the information provided to the division.
487487
488488 4. The provider failed to pay the annual license fee or to maintain in effect the surety bond required under section 6-1802, subsection g.
489489
490490 B. The division shall revoke a provider's license if the department of revenue certifies under section 42-1103 that the provider is liable for delinquent taxes.
491491
492492 C. Except as provided in subsection b of this section, the division may not revoke or suspend a provider's license except after a hearing pursuant to section 6-1807. END_STATUTE
493493
494494 START_STATUTE6-1807. Violations; civil action; temporary restraining order; hearing; enforcement; civil penalty
495495
496496 A. The division may bring a civil action to restrain by temporary or permanent injunction a person from violating this chapter or rules adopted under this chapter or to restrain a person from engaging in false, misleading, deceptive or unconscionable conduct in connection with offering earned wage access services.
497497
498498 B. The division may seek a temporary restraining order without written or oral notice to the adverse party. If a court finds that there is reasonable cause to believe that the respondent is engaged in the conduct sought to be restrained and that such conduct violates this chapter or rules adopted under this chapter, the court may grant a temporary restraining order or any temporary relief the court determines is appropriate. A temporary restraining order granted without notice shall expire by its terms within a stated time after entry, not to exceed thirty days, unless within this time it is extended by the court or the party against whom the order is directed consents that it may be extended for a longer period. When a temporary restraining order is granted without notice, the motion for a preliminary injunction shall be set for a hearing at the earliest possible time. On notice to the party who obtained the temporary restraining order without notice, the adverse party may appear and move for dissolution or modification of the temporary restraining order, and the court shall proceed to hear and determine such motion as expeditiously as the ends of justice require.
499499
500500 C. The division may recover in a civil action from a person that violates this chapter or rules adopted under this chapter a civil penalty of not less than $100 and not more than $1,000 for each violation.
501501
502502 D. In addition to the amount to which the division is entitled under subsection c of this section, the division may recover in a civil action from a person that knowingly or wilfully violates this chapter or rules adopted under this chapter a civil penalty of not less than $1,000 and not more than $10,000 for each violation. END_STATUTE