*HB1125.1*
February 4, 2025
HOUSE BILL No. 1125
_____
DIGEST OF HB 1125 (Updated February 4, 2025 12:52 pm - DI 154)
Citations Affected: IC 4-21.5; IC 28-1; IC 28-8; IC 28-11; IC 35-52.
Synopsis: Earned wage access services. Establishes within the Indiana
Code a new chapter, to be known as the Indiana Earned Wage Access
Act (Act), governing the offering and provision of earned wage access
services to Indiana consumers. Provides that the Act is to be
administered by the division of consumer credit within the department
of financial institutions (department). Sets forth provisions that address
the following: (1) Definitions of terms. (2) Exemptions from the Act's
requirements. (3) The department's supervisory authority under the Act.
(4) The licensing of providers of earned wage access services
(providers). (5) The acquisition of control of a licensee. (6) Reporting
and record keeping requirements for licensees. (7) Duties of providers
under the Act. (8) Prohibited acts by providers. (9) The department's
enforcement authority under the Act. (10) Criminal liability for certain
prohibited acts. (11) Statutory construction of the Act's provisions.
Makes conforming changes to sections of the Indiana Code codified
outside the Act.
Effective: July 1, 2025.
Teshka, Lehman, Miller K
January 8, 2025, read first time and referred to Committee on Financial Institutions.
February 4, 2025, amended, reported — Do Pass.
HB 1125—LS 6811/DI 101 February 4, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1125
A BILL FOR AN ACT to amend the Indiana Code concerning
financial institutions.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-21.5-3-6, AS AMENDED BY P.L.241-2023,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 6. (a) Notice shall be given under this section
4 concerning the following:
5 (1) A safety order under IC 22-8-1.1.
6 (2) Any order that:
7 (A) imposes a sanction on a person or terminates a legal right,
8 duty, privilege, immunity, or other legal interest of a person;
9 (B) is not described in section 4 or 5 of this chapter or
10 IC 4-21.5-4; and
11 (C) by statute becomes effective without a proceeding under
12 this chapter if there is no request for a review of the order
13 within a specified period after the order is issued or served.
14 (3) A notice of program reimbursement or equivalent
15 determination or other notice regarding a hospital's
16 reimbursement issued by the office of Medicaid policy and
17 planning or by a contractor of the office of Medicaid policy and
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1 planning regarding a hospital's year end cost settlement.
2 (4) A determination of audit findings or an equivalent
3 determination by the office of Medicaid policy and planning or by
4 a contractor of the office of Medicaid policy and planning arising
5 from a Medicaid postpayment or concurrent audit of a hospital's
6 Medicaid claims.
7 (5) A license suspension or revocation under:
8 (A) IC 24-4.4-2;
9 (B) IC 24-4.5-3;
10 (C) IC 28-1-29;
11 (D) IC 28-7-5;
12 (E) IC 28-8-4.1; or
13 (F) IC 28-8-5; or
14 (G) IC 28-8-6.
15 (6) An order issued by the secretary or the secretary's designee
16 against providers regulated by the division of aging or the bureau
17 of disabilities services and not licensed by the Indiana department
18 of health under IC 16-27 or IC 16-28.
19 (b) When an agency issues an order described by subsection (a), the
20 agency shall give notice to the following persons:
21 (1) Each person to whom the order is specifically directed.
22 (2) Each person to whom a law requires notice to be given.
23 A person who is entitled to notice under this subsection is not a party
24 to any proceeding resulting from the grant of a petition for review
25 under section 7 of this chapter unless the person is designated as a
26 party in the record of the proceeding.
27 (c) The notice must include the following:
28 (1) A brief description of the order.
29 (2) A brief explanation of the available procedures and the time
30 limit for seeking administrative review of the order under section
31 7 of this chapter.
32 (3) Any other information required by law.
33 (d) An order described in subsection (a) is effective fifteen (15) days
34 after the order is served, unless a statute other than this article specifies
35 a different date or the agency specifies a later date in its order. This
36 subsection does not preclude an agency from issuing, under
37 IC 4-21.5-4, an emergency or other temporary order concerning the
38 subject of an order described in subsection (a).
39 (e) If a petition for review of an order described in subsection (a) is
40 filed within the period set by section 7 of this chapter and a petition for
41 stay of effectiveness of the order is filed by a party or another person
42 who has a pending petition for intervention in the proceeding, an
HB 1125—LS 6811/DI 101 3
1 administrative law judge shall, as soon as practicable, conduct a
2 preliminary hearing to determine whether the order should be stayed in
3 whole or in part. The burden of proof in the preliminary hearing is on
4 the person seeking the stay. The administrative law judge may stay the
5 order in whole or in part. The order concerning the stay may be issued
6 after an order described in subsection (a) becomes effective. The
7 resulting order concerning the stay shall be served on the parties and
8 any person who has a pending petition for intervention in the
9 proceeding. It must include a statement of the facts and law on which
10 it is based.
11 SECTION 2. IC 28-1-2-30, AS AMENDED BY P.L.198-2023,
12 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2025]: Sec. 30. (a) As used in this section, "financial
14 institution" means any bank, trust company, corporate fiduciary,
15 savings association, credit union, savings bank, bank of discount and
16 deposit, or industrial loan and investment company organized or
17 reorganized under the laws of this state, and includes licensees and
18 registrants under IC 24-4.4, IC 24-4.5, IC 24-7, IC 24-12, IC 28-1-29,
19 IC 28-7-5, IC 28-8-4.1, IC 28-8-5, IC 28-8-6, and 750 IAC 9.
20 (b) Except as otherwise provided, a member of the department or
21 the director or deputy, assistant, or any other person having access to
22 any such information may not disclose to any person, other than
23 officially to the department, by the report made to it, or to the board of
24 directors, partners, or owners, or in compliance with the order of a
25 court, the names of the depositors or shareholders in any financial
26 institution, or the amount of money on deposit in any financial
27 institution at any time in favor of any depositor, or any other
28 information concerning the affairs of any such financial institution.
29 SECTION 3. IC 28-8-6 IS ADDED TO THE INDIANA CODE AS
30 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
31 1, 2025]:
32 Chapter 6. Indiana Earned Wage Access Act
33 Sec. 101. This chapter shall be known as and may be cited as the
34 Indiana Earned Wage Access Act.
35 Sec. 201. The following definitions apply throughout this
36 chapter:
37 (1) "Consumer" means an individual who:
38 (A) resides in Indiana, as may be determined by a provider
39 on the basis of the:
40 (i) mailing address; or
41 (ii) state of residence;
42 provided by the individual; or
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1 (B) requests proceeds in Indiana, as may be determined by
2 a provider by using any legal, readily available commercial
3 means to determine the location from which the individual
4 requests proceeds.
5 (2) "Consumer directed wage access services" means the
6 business by a provider of delivering to a consumer access to
7 earned but unpaid income based on:
8 (A) the consumer's representations of; and
9 (B) the provider's reasonable determination of;
10 the consumer's earned but unpaid income.
11 (3) "Control" means any of the following:
12 (A) The power to vote, directly or indirectly, at least
13 twenty-five percent (25%) of the outstanding voting shares
14 or voting interests of a licensee or of a person in control of
15 a licensee.
16 (B) The power to elect or appoint a majority of key
17 individuals or executive officers, managers, directors,
18 trustees, or other persons exercising managerial authority
19 of a person in control of a licensee.
20 (C) The power to exercise, directly or indirectly, a
21 controlling influence over the management or policies of a
22 licensee or of a person in control of a licensee. For
23 purposes of this clause, a person is presumed to exercise a
24 controlling influence if the person holds the power to vote,
25 directly or indirectly, at least ten percent (10%) of the
26 outstanding voting shares or voting interests of a licensee
27 or of a person in control of a licensee, subject to the
28 person's right to rebut the presumption if the person is a
29 passive investor.
30 For purposes of this subdivision, the percentage of a person
31 controlled by any other person is determined by aggregating
32 the other person's interest with the interest of any other
33 immediate family member of that person, including the
34 person's spouse, parents, children, siblings, mothers-in-law
35 and fathers-in-law, sons-in-law and daughters-in-law, and any
36 other person who shares the person's home.
37 (4) "Department" refers to the members of the department of
38 financial institutions.
39 (5) "Director" refers to the director of the department
40 appointed under IC 28-11-2-1.
41 (6) "Earned but unpaid income", with respect to a consumer,
42 means salary, wages, compensation, or other income that:
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1 (A) the consumer represents, and a provider reasonably
2 determines, has been earned by, or has accrued to the
3 benefit of, the consumer in exchange for the consumer's
4 provision of services to an employer or on behalf of an
5 employer, including the provision of services by the
6 consumer:
7 (i) on an hourly, project based, piecework, or other
8 basis; and
9 (ii) regardless of whether the consumer is an employee of
10 the employer or acts as an independent contractor with
11 respect to the employer; but
12 (B) has not, at the time of payment of proceeds to the
13 consumer by the provider, been paid to the consumer by
14 the employer.
15 (7) "Earned wage access services" includes the following:
16 (A) Consumer directed wage access services.
17 (B) Employer integrated wage access services.
18 The term does not include a small loan.
19 (8) "Employer" means a person that employs a consumer or
20 that is contractually obligated to pay a consumer earned but
21 unpaid income. The term does not include:
22 (A) a customer of the person; or
23 (B) any other person whose obligation to make a payment
24 of salary, wages, compensation, or other income to a
25 consumer is not based on the provision of services by the
26 consumer for or on behalf of that person.
27 (9) "Employer integrated wage access services" means the
28 business by a provider of delivering to a consumer access to
29 earned but unpaid income on the basis of:
30 (A) employment;
31 (B) income; or
32 (C) attendance;
33 data obtained directly or indirectly from an employer.
34 (10) "Federally insured depository financial institution"
35 means:
36 (A) a bank;
37 (B) a credit union;
38 (C) a savings and loan association;
39 (D) a trust company;
40 (E) a corporate fiduciary;
41 (F) a savings association;
42 (G) a savings bank;
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1 (H) an industrial bank; or
2 (I) an industrial loan company;
3 that is organized under the law of the United States or any
4 state of the United States and that has federally or privately
5 insured deposits as permitted by state or federal law.
6 (11) "Fee" includes the following, however denominated:
7 (A) An amount charged by a provider for:
8 (i) expedited delivery; or
9 (ii) other delivery;
10 of proceeds to a consumer.
11 (B) A subscription or membership fee imposed by a
12 provider for a bona fide group of services that include
13 earned wage access services.
14 (C) An amount that:
15 (i) is paid by an employer to a provider on a consumer's
16 behalf; and
17 (ii) entitles the consumer to receive proceeds at reduced
18 or no cost to the consumer.
19 The term does not include a voluntary tip, gratuity, or
20 donation paid to a provider.
21 (12) "Individual" means a natural person.
22 (13) "Key individual" means an individual ultimately
23 responsible for establishing or directing policies and
24 procedures of a licensee, such as an executive officer,
25 manager, director, or trustee.
26 (14) "Licensee" means a person licensed under this chapter.
27 (15) "NMLSR" means the Nationwide Multistate Licensing
28 System and Registry:
29 (A) developed by the Conference of State Bank Supervisors
30 and the American Association of Residential Mortgage
31 Regulators; and
32 (B) owned and operated by the State Regulatory Registry,
33 LLC, or by any successor or affiliated entity;
34 for the licensing and registry of persons in financial services
35 industries.
36 (16) "Outstanding proceeds" means proceeds that:
37 (A) have been paid to a consumer by a provider; and
38 (B) have not yet been repaid to the provider.
39 (17) "Passive investor" means a person that:
40 (A) does not have the power to elect a majority of key
41 individuals or executive officers, managers, directors,
42 trustees, or other persons exercising managerial authority
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1 over a person in control of a licensee;
2 (B) is not employed by and does not have any managerial
3 duties with respect to the licensee or a person in control of
4 the licensee;
5 (C) does not have the power to exercise, directly or
6 indirectly, a controlling influence over the management or
7 policies of the licensee or a person in control of the
8 licensee; and
9 (D) either:
10 (i) attests to as facts the characteristics of passivity set
11 forth in clauses (A) through (C), in a form and by a
12 medium prescribed by the director; or
13 (ii) commits to the characteristics of passivity set forth in
14 clauses (A) through (C) in a written document.
15 (18) "Person" means any individual, general partnership,
16 limited partnership, limited liability company, corporation,
17 trust, association, joint stock corporation, or other corporate
18 entity, as so identified by the director.
19 (19) "Proceeds" means a payment that:
20 (A) is made to a consumer by a provider; and
21 (B) is based on earned but unpaid income.
22 (20) "Provider" means a person in the business of offering
23 and providing earned wage access services to consumers. The
24 term does not include the following:
25 (A) A service provider that:
26 (i) provides one (1) or more services in connection with
27 earned wage access services; but
28 (ii) is not contractually obligated to fund proceeds
29 delivered as part of the earned wage access services;
30 such as a payroll service provider that verifies a
31 consumer's available earnings.
32 (B) An employer that offers a portion of salary, wages,
33 compensation, or other income directly to its employees or
34 independent contractors before the normally scheduled
35 pay date.
36 (21) "Small loan" has the meaning set forth in
37 IC 24-4.5-7-104.
38 Sec. 301. This chapter does not apply to the following:
39 (1) A federally insured depository financial institution.
40 (2) An individual employed by:
41 (A) a licensee; or
42 (B) a person exempt from the licensing requirements of
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1 this chapter;
2 when acting within the scope of employment and under the
3 supervision of the licensee or exempt person as an employee
4 and not as an independent contractor.
5 (3) An employer that offers a portion of salary, wages,
6 compensation, or other income directly to its employees or
7 independent contractors before the normally scheduled pay
8 date.
9 Sec. 302. The director may require any person claiming to be
10 exempt from licensing under section 301 of this chapter to provide
11 information and documentation to the director demonstrating that
12 the person qualifies for the claimed exemption.
13 Sec. 401. (a) To administer and enforce this chapter, the
14 director may, subject to section 402 of this chapter, do any of the
15 following:
16 (1) Enter into agreements or relationships with other
17 government officials or federal and state regulatory agencies
18 and regulatory associations in order to improve efficiencies
19 and reduce regulatory burden by:
20 (A) standardizing methods or procedures; and
21 (B) sharing resources, records, or related information
22 obtained under this chapter.
23 (2) Use, contract for, or employ analytical systems, methods,
24 or software to examine or investigate any person subject to
25 this chapter.
26 (3) Accept, from other state or federal government agencies
27 or officials, licensing, examination, or investigation reports
28 made by those other state or federal government agencies or
29 officials.
30 (4) Accept audit reports made by an independent certified
31 public accountant or another qualified third party auditor for
32 an applicant or licensee and incorporate the audit report in
33 any report of examination or investigation.
34 (b) The department has broad administrative authority to:
35 (1) administer, interpret, and enforce this chapter;
36 (2) promulgate rules implementing this chapter; and
37 (3) recover the cost of administering and enforcing this
38 chapter by imposing and collecting proportionate and
39 equitable fees and costs associated with applications,
40 examinations, investigations, and other actions required to
41 administer and enforce this chapter.
42 Sec. 402. (a) Except as otherwise provided in this section, the
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1 following are confidential:
2 (1) All information or reports obtained by the department
3 from an applicant or licensee.
4 (2) All information contained in or related to an examination,
5 investigation, operating report, or condition report prepared
6 by, on behalf of, or for the use of the department.
7 (3) Financial statements or balance sheets of an applicant or
8 licensee.
9 (b) Subject to the confidentiality provisions contained in
10 IC 5-14-3 and this section, the director may regularly report
11 significant or recurring violations of this chapter to the NMLSR.
12 (c) Subject to the confidentiality provisions contained in
13 IC 5-14-3 and this section, the director may report complaints
14 received regarding licensees to the NMLSR.
15 (d) The director's authority to use the NMLSR under this
16 chapter is subject to the following:
17 (1) Information stored in the NMLSR is subject to the
18 confidentiality provisions of IC 5-14-3 and this section. A
19 person may not:
20 (A) obtain information from the NMLSR, unless the
21 person is authorized to do so by statute;
22 (B) initiate any civil action based on information obtained
23 from the NMLSR if the information is not otherwise
24 available to the person under any other state law; or
25 (C) initiate any civil action based on information obtained
26 from the NMLSR if the person could not have initiated the
27 action based on information otherwise available to the
28 person under any other state law.
29 (2) Documents, materials, and other forms of information in
30 the control or possession of the NMLSR that are confidential
31 under this section and that are:
32 (A) furnished by the director, the director's designee, or a
33 licensee; or
34 (B) otherwise obtained by the NMLSR;
35 are confidential and privileged by law and are not subject to
36 inspection under IC 5-14-3, subject to subpoena, subject to
37 discovery, or admissible in evidence in any civil action.
38 However, the director may use the documents, materials, or
39 other information available to the director in furtherance of
40 any action brought in connection with the director's duties
41 under this chapter.
42 (3) Disclosure of documents, materials, and information:
HB 1125—LS 6811/DI 101 10
1 (A) to the director; or
2 (B) by the director;
3 under this subsection does not result in a waiver of any
4 applicable privilege or claim of confidentiality with respect to
5 the documents, materials, or information.
6 (4) Information provided to the NMLSR is subject to
7 IC 4-1-11.
8 (5) This subsection does not limit or impair a person's right
9 to:
10 (A) obtain information;
11 (B) use information as evidence in a civil action or
12 proceeding; or
13 (C) use information to initiate a civil action or proceeding;
14 if the information may be obtained from the director or the
15 director's designee under any law.
16 (6) The requirements under any federal law or IC 5-14-3
17 regarding the privacy or confidentiality of any information or
18 material provided to the NMLSR, and any privilege arising
19 under federal or state law, including the rules of any federal
20 or state court, with respect to the information or material,
21 continue to apply to the information or material after the
22 information or material has been disclosed to the NMLSR.
23 The information and material may be shared with all state
24 and federal regulatory officials with financial services
25 industry oversight authority without the loss of privilege or
26 the loss of confidentiality protections provided by federal law
27 or IC 5-14-3.
28 (7) Information or material that is subject to a privilege or
29 confidentiality under subdivision (6) is not subject to:
30 (A) disclosure under any federal or state law governing the
31 disclosure to the public of information held by an officer or
32 an agency of the federal government or the respective
33 state; or
34 (B) subpoena, discovery, or admission into evidence, in any
35 private civil action or administrative process, unless with
36 respect to any privileged information or material held by
37 the NMLSR, the person to whom the information or
38 material pertains waives, in whole or in part, in the
39 discretion of the person, that privilege.
40 (e) Notwithstanding any other provision of law, all information
41 or reports obtained by the director from an applicant or a licensee,
42 whether obtained through reports, applications, examination,
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1 audits, investigation, or otherwise, including:
2 (1) all information contained in or related to:
3 (A) examination;
4 (B) investigation;
5 (C) operation; or
6 (D) condition;
7 reports prepared by, on behalf of, or for the use of the
8 director; or
9 (2) financial statements or balance sheets of an applicant or
10 licensee;
11 are confidential and may not be disclosed or distributed outside the
12 department by the director or any officer or employee of the
13 department, except as provided in subsection (b).
14 (f) The director may provide for the release of information to
15 representatives of:
16 (1) financial institution and financial services business
17 supervisory agencies;
18 (2) law enforcement agencies; or
19 (3) prosecutorial agencies or offices;
20 of a state (as defined in IC 28-2-17-19), the United States, or a
21 foreign country. An agency or office that receives information
22 from the director under this subsection shall maintain the
23 confidentiality of the information as described in IC 28-1-2-30.
24 (g) This section does not prohibit the director from releasing to
25 the public a list of persons licensed under this chapter or from
26 releasing aggregated financial data with respect to such licensees.
27 Sec. 403. (a) The director may conduct an examination or
28 investigation of a licensee or otherwise take independent action
29 authorized by this chapter, or by a rule adopted or order issued
30 under this chapter, as reasonably necessary or appropriate to
31 administer and enforce this chapter and rules implementing this
32 chapter. The director may:
33 (1) conduct an examination either onsite or offsite as the
34 director may reasonably require;
35 (2) conduct an examination in conjunction with an
36 examination conducted by other state agencies or agencies of
37 another state or of the federal government;
38 (3) accept the examination report of another state agency or
39 an agency of another state or of the federal government, or a
40 report prepared by an independent accounting firm, with any
41 such report considered, upon being accepted and for all
42 purposes, as an official report of the director; and
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1 (4) summon and examine under oath a key individual or
2 employee of a licensee or authorized delegate and require the
3 person to produce records regarding any matter related to the
4 condition and business of the licensee.
5 (b) A licensee shall provide, and the director shall have full and
6 complete access to, all records the director may reasonably require
7 to conduct a complete examination. The records must be provided
8 at the location and in the format specified by the director. The
9 director may use multistate record production standards and
10 examination procedures when those standards will reasonably
11 achieve the purposes of this subsection.
12 (c) Unless otherwise directed by the director, a licensee shall pay
13 all costs reasonably incurred in connection with an examination of
14 the licensee.
15 (d) The director shall determine the sufficiency of the licensee's
16 records and whether the licensee has made the required
17 information reasonably available.
18 (e) To discover violations of this chapter, the director may
19 investigate and examine the records of any person the director
20 believes is operating without a license, when a license is required
21 under this chapter. The person examined must pay the reasonably
22 incurred costs of the examination.
23 Sec. 404. (a) To efficiently and effectively administer and
24 enforce this chapter and to minimize regulatory burden, the
25 director may participate in multistate supervisory processes
26 established between states and coordinated through the Conference
27 of State Bank Supervisors and any affiliate or successor of that
28 organization for all licensees that hold licenses in Indiana and
29 other states. As a participant in multistate supervision, the director
30 may:
31 (1) cooperate, coordinate, and share information with other
32 state and federal regulators in accordance with section 402 of
33 this chapter;
34 (2) enter into written cooperation, coordination, or
35 information sharing contracts or agreements with
36 organizations the membership of which is made up of state or
37 federal governmental agencies; and
38 (3) cooperate, coordinate, and share information with
39 organizations the membership of which is made up of state or
40 federal governmental agencies, as long as the organizations
41 agree in writing to maintain the confidentiality and security
42 of the shared information in accordance with section 402 of
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1 this chapter.
2 (b) The director may not waive, and nothing in this section
3 constitutes a waiver of, the director's authority to conduct an
4 examination or investigation or to otherwise take independent
5 action authorized by this chapter, or by a rule adopted or order
6 issued under this chapter, to enforce compliance with applicable
7 state or federal law.
8 (c) The performance of a joint examination or investigation, or
9 acceptance of an examination or investigation report, does not
10 waive the director's authority to perform an examination
11 assessment provided for in this chapter.
12 Sec. 501. (a) A person may not:
13 (1) engage in the business of offering or providing earned
14 wage access services; or
15 (2) advertise, solicit, or hold itself out as offering or providing
16 earned wage access services;
17 unless the person is licensed under this chapter.
18 (b) Subsection (a) does not apply to a person that is exempt
19 under section 301 of this chapter and does not engage in the
20 business of offering or providing earned wage access services
21 outside the scope of the exemption.
22 (c) A license issued under section 503 of this chapter is not
23 transferable or assignable without the approval of the department.
24 Sec. 502. (a) To establish consistent licensing between this state
25 and other states, the director may:
26 (1) implement all licensing provisions of this chapter in a
27 manner that is consistent with other states that have adopted:
28 (A) a law containing the same provisions of this chapter; or
29 (B) multistate licensing processes; and
30 (2) participate in nationwide protocols for licensing
31 cooperation and coordination among state regulators if those
32 protocols are consistent with this chapter.
33 (b) To administer and enforce this chapter, the director may
34 establish relationships or contracts with the NMLSR or other
35 entities designated by the NMLSR to enable the director to:
36 (1) collect and maintain records;
37 (2) coordinate multistate licensing processes and supervision
38 processes;
39 (3) process fees; and
40 (4) facilitate communication between the state and licensees
41 or other persons subject to this chapter.
42 (c) The director may use the NMLSR for all aspects of licensing
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1 in accordance with this chapter, including license applications,
2 applications for acquisitions of control, surety bonds, reporting,
3 criminal history background checks, credit checks, fee processing,
4 and examinations.
5 (d) The director may use NMLSR forms, processes, and
6 functionalities in accordance with this chapter. If the NMLSR does
7 not provide functionality, forms, or processes for a provision of this
8 chapter, the director may implement the requirements in a manner
9 that facilitates uniformity with respect to licensing, supervision,
10 reporting, and regulation of licensees that are licensed in multiple
11 jurisdictions.
12 (e) For the purpose of participating in the NMLSR, the director
13 is authorized to waive or modify, in whole or in part, by rule or
14 order, any or all of the requirements for licensure and to establish
15 new requirements as reasonably necessary to participate in the
16 NMLSR.
17 Sec. 503. (a) The department shall receive and act on all
18 applications for licenses to offer or provide earned wage access
19 services. Applications must be made as prescribed by the director.
20 If, at any time, the information or record contained in:
21 (1) an application filed under this section; or
22 (2) a renewal application filed under section 506 of this
23 chapter;
24 is or becomes inaccurate or incomplete in a material respect, the
25 applicant shall promptly file a correcting amendment with the
26 department.
27 (b) A license may not be issued unless the department finds that
28 the professional training and experience, financial responsibility,
29 character, and fitness of:
30 (1) the applicant;
31 (2) each executive officer, director, or manager of the
32 applicant, or any other individual having a similar status or
33 performing a similar function for the applicant; and
34 (3) if known, each person directly or indirectly owning of
35 record or owning beneficially at least ten percent (10%) of the
36 outstanding shares of any class of equity security of the
37 applicant;
38 are such as to warrant belief that the business will be operated
39 honestly and fairly.
40 (c) The director is entitled to request evidence of compliance
41 with this section at:
42 (1) the time of application;
HB 1125—LS 6811/DI 101 15
1 (2) the time of renewal of a license; or
2 (3) any other time considered necessary by the director.
3 (d) Evidence of compliance with this section must include:
4 (1) criminal background checks, as described in section 504 of
5 this chapter, including a national criminal history background
6 check (as defined in IC 10-13-3-12) by the Federal Bureau of
7 Investigation, for any individual described in subsection (b);
8 (2) credit histories as described in section 504 of this chapter;
9 (3) surety bond requirements as described in section 505 of
10 this chapter;
11 (4) a review of licensure actions in Indiana and in other states;
12 and
13 (5) other background checks considered necessary by the
14 director.
15 (e) For purposes of this section and in order to reduce the points
16 of contact that the director has to maintain under this section, the
17 director may use the NMLSR as a channeling agent for requesting
18 and distributing information to and from any source as directed by
19 the director.
20 (f) The department may deny an application under this section
21 if the director of the department determines that the application
22 was submitted for the benefit of, or on behalf of, a person who does
23 not qualify for a license.
24 (g) Upon written request, an applicant is entitled to a hearing,
25 in the manner provided in IC 4-21.5, on the question of the
26 qualifications of the applicant for a license.
27 (h) An applicant shall pay the following fees at the time
28 designated by the department:
29 (1) An initial license fee as established by the department
30 under IC 28-11-3-5. Until the department establishes an initial
31 license fee under IC 28-11-3-5, the initial license fee shall be
32 one thousand five hundred dollars ($1,500).
33 (2) Examination fees as established by the department under
34 IC 28-11-3-5. Until the department establishes an examination
35 fee schedule under IC 28-11-3-5 that is applicable to an
36 applicant under this chapter, the examination fee schedule
37 shall be the fee schedule applicable to persons licensed under
38 IC 24-4.5-7.
39 (3) An annual renewal fee as established by the department
40 under IC 28-11-3-5. Until the department establishes an
41 annual renewal fee under IC 28-11-3-5, the annual renewal
42 fee shall be one thousand five hundred dollars ($1,500).
HB 1125—LS 6811/DI 101 16
1 (i) A fee as established by the department under IC 28-11-3-5
2 may be charged for each day a fee under subsection (h)(2) or (h)(3)
3 is delinquent.
4 (j) Except in a transaction approved under section 601 of this
5 chapter, a license issued under this section is not assignable or
6 transferable.
7 (k) If the department of state revenue notifies the department
8 that a person is on the most recent tax warrant list, the department
9 shall not issue or renew the person's license until:
10 (1) the person provides to the department a statement from
11 the department of state revenue that the person's tax warrant
12 has been satisfied; or
13 (2) the department receives a notice from the commissioner of
14 the department of state revenue under IC 6-8.1-8-2(k).
15 Sec. 504. (a) An individual in control of a licensee or an
16 applicant, an individual who seeks to acquire control of a licensee,
17 and each key individual with respect to a licensee or an applicant
18 shall furnish to the department through the NMLSR the following
19 items:
20 (1) The individual's fingerprints for submission to the Federal
21 Bureau of Investigation and the department for purposes of
22 a national criminal history background check.
23 (2) Personal history and experience, in a form and by a
24 medium prescribed by the director, including the following:
25 (A) An independent credit report from a consumer
26 reporting agency unless the individual does not have a
27 Social Security number, in which case a credit report is not
28 required.
29 (B) Information related to any criminal convictions with
30 respect to, or pending charges against, the individual.
31 (C) Information related to any:
32 (i) regulatory or administrative action; or
33 (ii) civil litigation;
34 involving claims of fraud, misrepresentation, conversion,
35 mismanagement of funds, breach of fiduciary duty, or
36 breach of contract.
37 (b) The director may:
38 (1) waive one (1) or more requirements set forth in subsection
39 (a); or
40 (2) permit an applicant to submit other information instead of
41 meeting one (1) or more of the requirements set forth in
42 subsection (a).
HB 1125—LS 6811/DI 101 17
1 Sec. 505. (a) An applicant for an earned wage access services
2 license must provide, and a licensee at all times must maintain,
3 security consisting of a surety bond in a form satisfactory to the
4 director.
5 (b) Subject to subsections (c) and (d), the amount of the required
6 security under this section is the greater of:
7 (1) one hundred thousand dollars ($100,000); or
8 (2) an amount equal to the licensee's average daily provision
9 of proceeds to Indiana consumers, as calculated for the most
10 recently completed calendar quarter, up to a maximum of two
11 hundred fifty thousand dollars ($250,000).
12 (c) A licensee that maintains a bond in the maximum amount of
13 two hundred fifty thousand dollars ($250,000) set forth in
14 subsection (b)(2) is not required to calculate the licensee's average
15 daily provision of proceeds to Indiana consumers for purposes of
16 this section.
17 (d) A licensee may exceed the maximum required bond amount
18 of two hundred fifty thousand dollars ($250,000) set forth in
19 subsection (b)(2).
20 Sec. 506. (a) A license under this chapter shall be renewed
21 annually as follows:
22 (1) An annual renewal fee, as set by the department, shall be
23 paid not later than December 31 of each year.
24 (2) The renewal term is for a period of one (1) year and:
25 (A) begins on January 1 of each year after the initial
26 license term; and
27 (B) expires on December 31 of the year the renewal term
28 begins.
29 (b) A licensee shall submit a renewal report with the renewal
30 fee, in a form and by a medium prescribed by the director. The
31 renewal report must state or contain a description of each material
32 change in the information submitted by the licensee in its original
33 license application, if such change has not been previously reported
34 to the department.
35 (c) The director may grant an extension of the renewal date for
36 good cause.
37 (d) The director may use the NMLSR to process license
38 renewals, as long as the functionality of the NMLSR for such
39 purpose is consistent with this section.
40 Sec. 507. (a) If a licensee does not continue to meet the
41 qualifications or satisfy the requirements that apply to an applicant
42 for a new earned wage access services license, the department may
HB 1125—LS 6811/DI 101 18
1 suspend or revoke the licensee's license in accordance with the
2 procedures established by this chapter or other applicable state
3 law for such suspension or revocation.
4 (b) An applicant for an earned wage access services license must
5 demonstrate that it meets or will meet, and an earned wage access
6 services licensee must at all times meet, the requirements set forth
7 in section 505 of this chapter.
8 Sec. 601. (a) Any person, or group of persons acting in concert,
9 seeking to acquire control of a licensee shall obtain the written
10 approval of the department before acquiring control. An
11 individual:
12 (1) is not considered to acquire control of a licensee; and
13 (2) is not subject to the acquisition of control provisions set
14 forth in this chapter;
15 when that individual becomes a key individual in the ordinary
16 course of business.
17 (b) A person, or group of persons acting in concert, seeking to
18 acquire control of a licensee shall, in cooperation with the licensee,
19 submit:
20 (1) an application in a form and by a medium prescribed by
21 the director; and
22 (2) a nonrefundable fee, as determined by the department,
23 with the request for approval. Until the department
24 establishes the nonrefundable fee under IC 28-11-3-5, the
25 nonrefundable fee shall be one thousand five hundred dollars
26 ($1,500).
27 (c) Upon request, the director may permit a licensee or the:
28 (1) person; or
29 (2) group of persons acting in concert;
30 seeking to acquire control of the licensee, to submit some or all
31 information required in an application under subsection (b)(1)
32 without using the NMLSR.
33 (d) The application required under subsection (b)(1) must
34 include information required by section 504 of this chapter for any
35 new key individuals that have not previously completed the
36 requirements of section 504 of this chapter for a licensee.
37 (e) Subject to subsection (f), when an application for acquisition
38 of control appears to include all the items, and to address all the
39 matters, that are required for an application for change in control,
40 as determined by the director, the application is considered
41 complete, and the director shall promptly notify the applicant, in
42 a record, of the date on which the application is determined to be
HB 1125—LS 6811/DI 101 19
1 complete, and:
2 (1) the department shall approve or deny the application not
3 later than sixty (60) days after the completion date, as
4 determined in accordance with this subsection; or
5 (2) if the application is not approved or denied not later than
6 sixty (60) days after the completion date:
7 (A) the application is considered approved; and
8 (B) the person, or group of persons acting in concert,
9 seeking to acquire control of the licensee is not prohibited
10 from acquiring control.
11 However, the director may for good cause extend the sixty (60) day
12 period described in this subsection.
13 (f) A determination by the director that an application is
14 complete and is accepted for processing means only that the
15 application, on its face, appears to:
16 (1) include all of the items; and
17 (2) address all of the matters;
18 that are required for an application for acquisition of control
19 under this chapter, and is not an assessment of the substance of the
20 application or of the sufficiency of the information provided.
21 (g) When an application is filed and considered complete under
22 subsection (e), the director shall investigate the financial condition
23 and responsibility, financial and business experience, character,
24 and general fitness of the person, or group of persons acting in
25 concert, seeking to acquire control. The department shall approve
26 an acquisition of control under this section if the department finds
27 that all of the following conditions have been met:
28 (1) The requirements set forth in subsections (b) and (d) have
29 been met, as applicable.
30 (2) Both the:
31 (A) financial condition and responsibility, financial and
32 business experience, competence, character, and general
33 fitness of the person, or group of persons acting in concert,
34 seeking to acquire control; and
35 (B) competence, experience, character, and general fitness
36 of the key individuals and persons that would be in control
37 of the licensee after the acquisition of control;
38 indicate that it is in the interest of the public to permit the
39 person, or group of persons acting in concert, to control the
40 licensee.
41 (h) If an applicant avails itself of, or is otherwise subject to, a
42 multistate licensing process:
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1 (1) the director may accept the investigation results of a lead
2 investigative state for the purpose of subsection (g) if the lead
3 investigative state has sufficient staffing, expertise, and
4 minimum standards; or
5 (2) if Indiana is a lead investigative state, the director may
6 investigate the applicant pursuant to subsection (g) and to the
7 time frames established by agreement through the multistate
8 licensing process.
9 (i) The department shall issue a formal written notice of the
10 denial of an application to acquire control not later than thirty (30)
11 days after the decision to deny the application. The department
12 shall set forth in the notice of denial the specific reasons for the
13 denial of the application. An applicant whose application is denied
14 by the department under this subsection may appeal the denial to
15 the department for an administrative review under IC 4-21.5-3.
16 (j) The requirements of subsections (a) and (b) do not apply to
17 any of the following:
18 (1) A person that acts as a proxy for the sole purpose of voting
19 at a designated meeting of the:
20 (A) shareholders;
21 (B) holders of voting shares; or
22 (C) voting interests;
23 of a licensee or a person in control of a licensee.
24 (2) A person that acquires control of a licensee as a
25 conservator or as an officer appointed by a court of
26 competent jurisdiction or by operation of law.
27 (3) A person that is exempt under section 301 of this chapter.
28 (4) A person that the director determines is not subject to
29 subsection (a) based on the public interest.
30 (5) A public offering of securities of a licensee or of a person
31 in control of a licensee.
32 (6) An internal reorganization of a person in control of the
33 licensee if the ultimate person in control of the licensee
34 remains the same.
35 (k) A person described in subsection (j)(2), (j)(3), (j)(5), or (j)(6),
36 in cooperation with the licensee, shall notify the director not later
37 than fifteen (15) days after the acquisition of control.
38 (l) The requirements of subsections (a) and (b) do not apply to
39 a person that has complied with, and received approval to engage
40 in, the business of offering or providing earned wage access
41 services under this chapter, or that was identified as a person in
42 control in a prior application filed with and approved by the
HB 1125—LS 6811/DI 101 21
1 department, if all of the following apply:
2 (1) The person has not:
3 (A) had a license revoked or suspended; or
4 (B) controlled a licensee that has had a license revoked or
5 suspended while the person was in control of the licensee;
6 in the most recent five (5) years.
7 (2) The licensee to be acquired will not implement any
8 material changes to its business plan as a result of the
9 acquisition of control, and if the person acquiring control is a
10 licensee, the person acquiring control also will not implement
11 any material changes to its business plan as a licensee as a
12 result of the acquisition of control.
13 (3) The person provides notice of the acquisition in
14 cooperation with the licensee and attests to meeting the
15 requirements set forth in subdivisions (1) and (2) in a form
16 and by a medium prescribed by the director.
17 If the notice described in subdivision (3) is not disapproved within
18 thirty (30) days after the date on which the notice is determined to
19 be complete by the director, the notice is considered approved.
20 (m) Before filing an application for approval to acquire control
21 of a licensee, a person may request in writing a determination from
22 the director as to whether the person would be considered a person
23 in control of a licensee upon consummation of a proposed
24 transaction. If the director determines that the person would not
25 be a person in control of a licensee, the proposed person and
26 transaction is not subject to the requirements of subsections (a)
27 and (b).
28 (n) If a multistate licensing process includes a determination
29 described in subsection (m), and an applicant avails itself of, or is
30 otherwise subject to, the multistate licensing process:
31 (1) the director may accept the control determination of a lead
32 investigative state with sufficient staffing, expertise, and
33 minimum standards for the purpose of subsection (m); or
34 (2) if Indiana is a lead investigative state, the director may
35 investigate the applicant pursuant to subsection (m) and to the
36 time frames established by agreement through the multistate
37 licensing process.
38 Sec. 602. (a) A licensee adding or replacing any key individual
39 shall:
40 (1) provide notice in a manner prescribed by the director not
41 later than fifteen (15) days after the effective date of the key
42 individual's appointment; and
HB 1125—LS 6811/DI 101 22
1 (2) provide information as required by section 504 of this
2 chapter not later than forty-five (45) days after the effective
3 date of the key individual's appointment.
4 (b) Not later than ninety (90) days after the date on which a
5 notice provided under subsection (a) is determined by the director
6 to be complete, the department may issue a notice of disapproval
7 of a key individual if the competence, experience, character, or
8 integrity of the individual would not be in the best interests of:
9 (1) the public; or
10 (2) the customers of the licensee;
11 so as to permit the individual to be a key individual of such
12 licensee.
13 (c) A notice of disapproval under subsection (b) must contain a
14 statement of the basis for disapproval and shall be sent to the
15 licensee and the disapproved individual. A licensee that receives a
16 notice of disapproval under subsection (b) may appeal the denial
17 to the department for an administrative review under IC 4-21.5-3.
18 (d) If a notice provided under subsection (a) is not disapproved
19 within ninety (90) days after the date on which the notice was
20 determined by the director to be complete, the key individual is
21 considered approved.
22 (e) If a multistate licensing process includes a key individual
23 notice and review and approval process as described in this section,
24 and a licensee avails itself of, or is otherwise subject to, the
25 multistate licensing process:
26 (1) the director may accept the determination of another state
27 if the investigating state has sufficient staffing, expertise, and
28 minimum standards for the purpose of this section; or
29 (2) if Indiana is a lead investigative state, the director may
30 investigate the applicant pursuant to this section and to the
31 time frames established by agreement through the multistate
32 licensing process.
33 Sec. 701. (a) A provider required to be licensed under this
34 chapter shall maintain records in a manner that will enable the
35 department to determine whether the provider is complying with
36 the provisions of this chapter. The department shall be given free
37 access to the records wherever the records are located. Records
38 concerning any earned wage access services transaction shall be
39 retained for two (2) years after the transaction is initiated. A
40 provider licensed or required to be licensed under this chapter is
41 subject to IC 28-1-2-30.5 with respect to any records maintained by
42 the provider.
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1 (b) A provider required to be licensed under this chapter shall
2 file with the department, in the form and manner required by the
3 department, a quarterly composite report relating to all earned
4 wage access services transactions made by the provider in Indiana
5 during the reporting period covered by the report. Information
6 contained in the reports is confidential and may be published only
7 in composite form. The department may impose a fee in an amount
8 fixed by the department under IC 28-11-3-5 for each day that a
9 provider fails to file the report required by this subsection.
10 Sec. 801. A provider required to be licensed under this chapter
11 shall do the following:
12 (1) Develop and implement policies and procedures to:
13 (A) respond to questions raised by consumers; and
14 (B) address complaints from consumers;
15 in an expedient manner.
16 (2) Whenever the provider offers a consumer the option to
17 receive proceeds for a fee or solicits a tip, gratuity, or other
18 donation:
19 (A) offer that consumer at least one (1) reasonable option
20 to obtain proceeds at no cost; and
21 (B) clearly explain to the consumer how to elect each no
22 cost option offered.
23 (3) Before entering into an agreement with a consumer to
24 provide earned wage access services, do both of the following:
25 (A) Inform the consumer of the consumer's rights under
26 the agreement.
27 (B) Fully and clearly disclose all fees associated with the
28 earned wage access services to be provided.
29 (4) Inform the consumer of the fact of any material changes
30 to the terms and conditions of the earned wage access services
31 before implementing those changes for that consumer.
32 (5) Allow the consumer to cancel use of the provider's earned
33 wage access services:
34 (A) at any time; and
35 (B) without incurring a cancellation fee imposed by the
36 provider.
37 (6) Comply with all applicable local, state, and federal privacy
38 and information security laws.
39 (7) If the provider solicits, charges, or receives a tip, gratuity,
40 or other donation from a consumer:
41 (A) clearly and conspicuously disclose to the consumer
42 immediately before each transaction that a tip, gratuity, or
HB 1125—LS 6811/DI 101 24
1 other donation:
2 (i) is voluntary; and
3 (ii) may be in the amount of zero dollars ($0); and
4 (B) clearly and conspicuously disclose in the provider's
5 service contract with the consumer that tips, gratuities, or
6 other donations are voluntary and that the offering of
7 earned wage access services, including:
8 (i) the amount of proceeds that a consumer is eligible to
9 request; and
10 (ii) the frequency with which proceeds are provided to a
11 consumer;
12 is not contingent on whether the consumer pays any tip,
13 gratuity, or other donation, or on the amount of the tip,
14 gratuity, or other donation.
15 (8) Provide proceeds to a consumer by any means mutually
16 agreed upon by the provider and the consumer.
17 (9) If the provider seeks repayment of outstanding proceeds
18 or the payment of fees or other amounts owed (including
19 voluntary tips, gratuities, or other donations) in connection
20 with earned wage access services provided under this chapter
21 from a consumer's deposit account, including by means of
22 electronic funds transfer, the provider must do the following:
23 (A) Comply with applicable provisions of the federal
24 Electronic Funds Transfer Act (15 U.S.C. 1693 et seq.).
25 (B) Reimburse the consumer for the full amount of any
26 overdraft or nonsufficient funds fees that are imposed on
27 the consumer by the consumer's depository financial
28 institution if the overdraft or nonsufficient funds fees
29 resulted from the provider's attempt to seek payment of
30 any outstanding proceeds, fees, or other amounts
31 (including voluntary tips, gratuities, or other donations)
32 under this chapter:
33 (i) on a date before; or
34 (ii) in an incorrect amount from;
35 the date or amount disclosed to the consumer. However, a
36 provider is not subject to the requirements of this clause
37 with respect to the payment of any outstanding proceeds,
38 fees, or other amounts incurred by a consumer through
39 fraudulent or other unlawful means.
40 Sec. 802. A provider required to be licensed under this chapter
41 shall not do any of the following:
42 (1) Share with an employer a portion of any:
HB 1125—LS 6811/DI 101 25
1 (A) fees; or
2 (B) voluntary tips, gratuities, or other donations;
3 received from or charged to a consumer for earned wage
4 access services.
5 (2) Use a consumer's consumer report (as defined in
6 IC 24-5-24-2) to determine:
7 (A) a consumer's eligibility for earned wage access
8 services;
9 (B) the amount of proceeds that a consumer is eligible to
10 request or receive in an earned wage access services
11 transaction; or
12 (C) the frequency with which proceeds may be provided to
13 a consumer through earned wage access services
14 transactions.
15 (3) Accept payment of outstanding proceeds, fees, or
16 voluntary tips, gratuities, or other donations by means of a
17 credit card (as defined in IC 24-5-27.5-3).
18 (4) Charge or collect a late fee, a deferral fee, interest, or any
19 other charge or penalty for a consumer's failure to pay
20 outstanding proceeds, fees, or voluntary tips, gratuities, or
21 other donations.
22 (5) Report to:
23 (A) a consumer reporting agency (as defined in
24 IC 24-5-24-3); or
25 (B) a debt collector;
26 any information regarding a consumer's failure to repay to
27 the provider any outstanding proceeds, fees, or voluntary tips,
28 gratuities, or other donations.
29 (6) Compel or attempt to compel a consumer to pay to the
30 provider any outstanding proceeds, fees, or voluntary tips,
31 gratuities, or other donations through any of the following
32 means:
33 (A) The use of unsolicited outbound telephone calls to the
34 consumer.
35 (B) A suit against the consumer in a court of competent
36 jurisdiction.
37 (C) The use of a third party to pursue collection from the
38 consumer on the provider's behalf.
39 (D) The sale of outstanding amounts to a third party
40 collector or debt buyer for collection from the consumer.
41 However, this subdivision does not preclude a provider from
42 using any of the means set forth in clauses (A) through (D) to
HB 1125—LS 6811/DI 101 26
1 pursue payment of outstanding amounts incurred by a
2 consumer through fraudulent or other unlawful means, or
3 from pursuing any available remedies against an employer for
4 breach of the employer's contractual obligations to the
5 provider.
6 (7) If the provider solicits, charges, or receives a tip, gratuity,
7 or other donation from a consumer:
8 (A) mislead or deceive consumers about the voluntary
9 nature of the tips, gratuities, or donations; or
10 (B) represent that tips, gratuities, or donations will benefit
11 any specific individuals.
12 (8) If the provider also offers small loans to consumers under
13 IC 24-4.5-7:
14 (A) provide proceeds to a consumer who has a small loan
15 outstanding from that provider, as verified by the provider
16 in accordance with IC 24-4.5-7-404(4); or
17 (B) make a small loan to a consumer who has outstanding
18 proceeds from that provider.
19 Sec. 901. (a) A license issued by the department under this
20 chapter may be revoked or suspended by the department if the
21 person fails to:
22 (1) file any renewal form required by the department; or
23 (2) pay any license renewal fee described under section
24 506(a)(1) of this chapter;
25 not later than sixty (60) days after the due date.
26 (b) A person whose license is revoked or suspended under this
27 section may:
28 (1) pay all delinquent fees and apply for a reinstatement of the
29 person's license; or
30 (2) appeal the revocation or suspension to the department in
31 an administrative review under IC 4-21.5-3.
32 Pending the decision resulting from a hearing under IC 4-21.5-3
33 concerning license revocation or suspension, a license remains in
34 force.
35 Sec. 902. Except as otherwise provided, IC 4-21.5 applies to and
36 governs all agency action taken by the department under this
37 chapter. A proceeding for administrative review under IC 4-21.5-3
38 or judicial review under IC 4-21.5-5 must be held in Marion
39 County.
40 Sec. 903. (a) If the department determines, after notice and an
41 opportunity to be heard, that a person has violated this chapter,
42 the department may, in addition to or instead of all other remedies
HB 1125—LS 6811/DI 101 27
1 available under this chapter, impose upon the person a civil
2 penalty not greater than ten thousand dollars ($10,000) per
3 violation.
4 (b) A penalty collected under this section shall be deposited into
5 the financial institutions fund established by IC 28-11-2-9.
6 Sec. 904. The director, in the exercise of reasonable judgment,
7 is authorized to compromise, settle, and collect civil penalties from
8 a person for a violation of:
9 (1) a provision of this chapter; or
10 (2) an order issued or promulgated pursuant to this chapter.
11 Sec. 905. If it appears to the director that a person has
12 committed or is about to commit a violation of a provision of this
13 chapter or an order of the director, the director may apply to a
14 court having jurisdiction for:
15 (1) an order enjoining the person from violating or continuing
16 to violate this chapter or the order; or
17 (2) injunctive or other relief;
18 as the nature of the case may require.
19 Sec. 906. (a) The director may enter into a consent order with
20 a person to resolve a matter arising under this chapter.
21 (b) A consent order must:
22 (1) be signed by the person to whom it is issued or by an
23 authorized representative of that person; and
24 (2) indicate agreement to the terms contained within the
25 consent order.
26 (c) A consent order does not:
27 (1) constitute an admission by a person that a provision of this
28 chapter or an order promulgated or issued under this chapter
29 has been violated; or
30 (2) constitute a finding by the director that the person has
31 violated a provision of this chapter or an order promulgated
32 or issued under this chapter.
33 (d) Notwithstanding the issuance of a consent order, the director
34 may seek civil or criminal penalties or compromise civil penalties
35 concerning matters encompassed by the consent order, unless the
36 consent order by its terms expressly precludes the director from
37 doing so.
38 Sec. 907. A person who knowingly or intentionally:
39 (1) makes a material false statement, or omits a material
40 entry, in a document filed or required to be filed under this
41 chapter, with the intent to deceive the recipient of the
42 document; or
HB 1125—LS 6811/DI 101 28
1 (2) fails to file a document required to be filed under this
2 chapter;
3 commits a Class A misdemeanor.
4 Sec. 1001. (a) Rules promulgated by the director or the
5 department under this chapter must be adopted in accordance with
6 IC 4-22-2.
7 (b) At the time the director or department files a notice of
8 proposed adoption, amendment, or repeal of a rule under this
9 chapter for public comment, a copy of the notice must be sent by
10 first class mail postage prepaid to all licensees and applicants for
11 licenses under this chapter as of the time the notice is sent.
12 Sec. 1002. (a) Notwithstanding any other provision of law,
13 earned wage access services offered or provided by a licensee in
14 accordance with this chapter are not considered to be any of the
15 following:
16 (1) A violation of, or noncompliance with, any Indiana law
17 governing deductions from payroll, salary, wages,
18 compensation, or other income.
19 (2) A violation of, or noncompliance with, any Indiana law
20 governing:
21 (A) the purchase of;
22 (B) the sale or assignment of; or
23 (C) an order for;
24 earned but unpaid income.
25 (3) A loan or other form of credit or debt.
26 (4) Money transmission (as defined in IC 28-8-4.1-201(19)).
27 (b) Notwithstanding any other provision of law, a licensee that
28 offers or provides earned wage access services in accordance with
29 this chapter is not considered to be any of the following solely by
30 reason of offering or providing the earned wage access services:
31 (1) A lender, creditor, credit services organization (as defined
32 in IC 24-5-15-2), or debt collector.
33 (2) A money transmitter for purposes of IC 28-8-4.1.
34 However, this subsection does not exempt a licensee under this
35 chapter from complying with section 802(8) of this chapter, as
36 applicable.
37 (c) Notwithstanding any other provision of law:
38 (1) fees; or
39 (2) voluntary tips, gratuities, or other donations;
40 paid by a consumer to a licensee in accordance with this chapter
41 are not considered to be interest or finance charges.
42 (d) If there is a conflict between the provisions of this chapter
HB 1125—LS 6811/DI 101 29
1 and any other Indiana law, the provisions of this chapter control.
2 Sec. 1003. The division of consumer credit within the
3 department is responsible for administering this chapter.
4 SECTION 4. IC 28-11-1-3, AS AMENDED BY P.L.198-2023,
5 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 3. (a) The ultimate authority for and the powers,
7 duties, management, and control of the department are vested in the
8 following seven (7) members:
9 (1) The director of the department, who serves as an ex officio,
10 voting member.
11 (2) The following six (6) members appointed by the governor as
12 follows:
13 (A) Three (3) members must have practical experience at the
14 executive level of a:
15 (i) state chartered bank;
16 (ii) state chartered savings association; or
17 (iii) state chartered savings bank.
18 (B) One (1) member must have practical experience at the
19 executive level as a:
20 (i) lender licensed under IC 24-4.5;
21 (ii) mortgage lender licensed under IC 24-4.4;
22 (iii) registrant under IC 24-7;
23 (iv) licensee under IC 28-1-29;
24 (v) licensee under IC 28-7-5;
25 (vi) licensee under IC 28-8-4.1; or
26 (vii) licensee under IC 28-8-5; or
27 (viii) licensee under IC 28-8-6.
28 (C) One (1) member must have practical experience at the
29 executive level of a state chartered credit union.
30 (D) One (1) member must be appointed with due regard for the
31 consumer, agricultural, industrial, and commercial interests of
32 Indiana.
33 (b) Not more than three (3) members appointed by the governor
34 under subsection (a)(2) after June 30, 2006, may be affiliated with the
35 same political party.
36 SECTION 5. IC 35-52-28-11.1 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2025]: Sec. 11.1. IC 28-8-6-907 defines a
39 crime concerning financial services.
HB 1125—LS 6811/DI 101 30
COMMITTEE REPORT
Mr. Speaker: Your Committee on Financial Institutions, to which
was referred House Bill 1125, has had the same under consideration
and begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 15, line 30, after "IC 28-11-3-5." insert "Until the department
establishes an initial license fee under IC 28-11-3-5, the initial
license fee shall be one thousand five hundred dollars ($1,500).".
Page 15, line 32, after "IC 28-11-3-5." insert "Until the department
establishes an examination fee schedule under IC 28-11-3-5 that is
applicable to an applicant under this chapter, the examination fee
schedule shall be the fee schedule applicable to persons licensed
under IC 24-4.5-7.".
Page 15, line 34, after "IC 28-11-3-5." insert "Until the department
establishes an annual renewal fee under IC 28-11-3-5, the annual
renewal fee shall be one thousand five hundred dollars ($1,500).".
Page 18, line 15, after "approval." insert "Until the department
establishes the nonrefundable fee under IC 28-11-3-5, the
nonrefundable fee shall be one thousand five hundred dollars
($1,500).".
Page 22, line 34, delete "but not more frequently than annually, a"
and insert "a quarterly".
and when so amended that said bill do pass.
(Reference is to HB 1125 as introduced.)
PIERCE K
Committee Vote: yeas 10, nays 3.
HB 1125—LS 6811/DI 101