*EH1125.1*
April 11, 2025
ENGROSSED
HOUSE BILL No. 1125
_____
DIGEST OF HB 1125 (Updated April 9, 2025 9:55 am - 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: January 1, 2026.
Teshka, Lehman, Miller K
(SENATE SPONSORS — WALKER K, BALDWIN, RANDOLPH LONNIE M)
January 8, 2025, read first time and referred to Committee on Financial Institutions.
February 4, 2025, amended, reported — Do Pass.
February 6, 2025, read second time, ordered engrossed.
February 7, 2025, engrossed.
February 10, 2025, read third time, passed. Yeas 70, nays 18.
SENATE ACTION
February 20, 2025, read first time and referred to Committee on Insurance and Financial
Institutions.
April 10, 2025, amended, reported favorably — Do Pass.
EH 1125—LS 6811/DI 101 April 11, 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.
ENGROSSED
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 JANUARY 1, 2026]: Sec. 6. (a) Notice shall be given under this
4 section 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
EH 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 JANUARY 1, 2026]: 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
31 JANUARY 1, 2026]:
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
EH 1125—LS 6811/DI 101 4
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:
EH 1125—LS 6811/DI 101 5
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;
EH 1125—LS 6811/DI 101 6
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
EH 1125—LS 6811/DI 101 7
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 is not contractually obligated
26 to fund proceeds delivered as part of the earned wage
27 access services, such as a payroll service provider that
28 verifies a consumer's available earnings.
29 (B) An employer that offers a portion of salary, wages,
30 compensation, or other income directly to its employees or
31 independent contractors before the normally scheduled
32 pay date.
33 (C) An entity that offers or provides earned wage access
34 services and reports a consumer's payment or nonpayment
35 of either outstanding proceeds of the earned wage access
36 services or fees, voluntary tips, gratuities, or other
37 donations in connection with the earned wage access
38 services to a consumer reporting agency (as defined in the
39 Federal Fair Credit Reporting Act (15 U.S.C. 1681 et
40 seq.)).
41 (21) "Small loan" has the meaning set forth in
42 IC 24-4.5-7-104.
EH 1125—LS 6811/DI 101 8
1 Sec. 301. This chapter does not apply to the following:
2 (1) A federally insured depository financial institution, which
3 may provide earned wage access services in Indiana without
4 obtaining a license under this chapter.
5 (2) An individual employed by:
6 (A) a licensee; or
7 (B) a person exempt from the licensing requirements of
8 this chapter;
9 when acting within the scope of employment and under the
10 supervision of the licensee or exempt person as an employee
11 and not as an independent contractor.
12 (3) An employer that offers a portion of salary, wages,
13 compensation, or other income directly to its employees or
14 independent contractors before the normally scheduled pay
15 date.
16 Sec. 302. The director may require any person claiming to be
17 exempt from licensing under section 301 of this chapter to provide
18 information and documentation to the director demonstrating that
19 the person qualifies for the claimed exemption.
20 Sec. 401. (a) To administer and enforce this chapter, the
21 director may, subject to section 402 of this chapter, do any of the
22 following:
23 (1) Enter into agreements or relationships with other
24 government officials or federal and state regulatory agencies
25 and regulatory associations in order to improve efficiencies
26 and reduce regulatory burden by:
27 (A) standardizing methods or procedures; and
28 (B) sharing resources, records, or related information
29 obtained under this chapter.
30 (2) Use, contract for, or employ analytical systems, methods,
31 or software to examine or investigate any person subject to
32 this chapter.
33 (3) Accept, from other state or federal government agencies
34 or officials, licensing, examination, or investigation reports
35 made by those other state or federal government agencies or
36 officials.
37 (4) Accept audit reports made by an independent certified
38 public accountant or another qualified third party auditor for
39 an applicant or licensee and incorporate the audit report in
40 any report of examination or investigation.
41 (b) The department has broad administrative authority to:
42 (1) administer, interpret, and enforce this chapter;
EH 1125—LS 6811/DI 101 9
1 (2) promulgate rules implementing this chapter; and
2 (3) recover the cost of administering and enforcing this
3 chapter by imposing and collecting proportionate and
4 equitable fees and costs associated with applications,
5 examinations, investigations, and other actions required to
6 administer and enforce this chapter.
7 Sec. 402. (a) Except as otherwise provided in this section, the
8 following are confidential:
9 (1) All information or reports obtained by the department
10 from an applicant or licensee.
11 (2) All information contained in or related to an examination,
12 investigation, operating report, or condition report prepared
13 by, on behalf of, or for the use of the department.
14 (3) Financial statements or balance sheets of an applicant or
15 licensee.
16 (b) Subject to the confidentiality provisions contained in
17 IC 5-14-3 and this section, the director may regularly report
18 significant or recurring violations of this chapter to the NMLSR.
19 (c) Subject to the confidentiality provisions contained in
20 IC 5-14-3 and this section, the director may report complaints
21 received regarding licensees to the NMLSR.
22 (d) The director's authority to use the NMLSR under this
23 chapter is subject to the following:
24 (1) Information stored in the NMLSR is subject to the
25 confidentiality provisions of IC 5-14-3 and this section. A
26 person may not:
27 (A) obtain information from the NMLSR, unless the
28 person is authorized to do so by statute;
29 (B) initiate any civil action based on information obtained
30 from the NMLSR if the information is not otherwise
31 available to the person under any other state law; or
32 (C) initiate any civil action based on information obtained
33 from the NMLSR if the person could not have initiated the
34 action based on information otherwise available to the
35 person under any other state law.
36 (2) Documents, materials, and other forms of information in
37 the control or possession of the NMLSR that are confidential
38 under this section and that are:
39 (A) furnished by the director, the director's designee, or a
40 licensee; or
41 (B) otherwise obtained by the NMLSR;
42 are confidential and privileged by law and are not subject to
EH 1125—LS 6811/DI 101 10
1 inspection under IC 5-14-3, subject to subpoena, subject to
2 discovery, or admissible in evidence in any civil action.
3 However, the director may use the documents, materials, or
4 other information available to the director in furtherance of
5 any action brought in connection with the director's duties
6 under this chapter.
7 (3) Disclosure of documents, materials, and information:
8 (A) to the director; or
9 (B) by the director;
10 under this subsection does not result in a waiver of any
11 applicable privilege or claim of confidentiality with respect to
12 the documents, materials, or information.
13 (4) Information provided to the NMLSR is subject to
14 IC 4-1-11.
15 (5) This subsection does not limit or impair a person's right
16 to:
17 (A) obtain information;
18 (B) use information as evidence in a civil action or
19 proceeding; or
20 (C) use information to initiate a civil action or proceeding;
21 if the information may be obtained from the director or the
22 director's designee under any law.
23 (6) The requirements under any federal law or IC 5-14-3
24 regarding the privacy or confidentiality of any information or
25 material provided to the NMLSR, and any privilege arising
26 under federal or state law, including the rules of any federal
27 or state court, with respect to the information or material,
28 continue to apply to the information or material after the
29 information or material has been disclosed to the NMLSR.
30 The information and material may be shared with all state
31 and federal regulatory officials with financial services
32 industry oversight authority without the loss of privilege or
33 the loss of confidentiality protections provided by federal law
34 or IC 5-14-3.
35 (7) Information or material that is subject to a privilege or
36 confidentiality under subdivision (6) is not subject to:
37 (A) disclosure under any federal or state law governing the
38 disclosure to the public of information held by an officer or
39 an agency of the federal government or the respective
40 state; or
41 (B) subpoena, discovery, or admission into evidence, in any
42 private civil action or administrative process, unless with
EH 1125—LS 6811/DI 101 11
1 respect to any privileged information or material held by
2 the NMLSR, the person to whom the information or
3 material pertains waives, in whole or in part, in the
4 discretion of the person, that privilege.
5 (e) Notwithstanding any other provision of law, all information
6 or reports obtained by the director from an applicant or a licensee,
7 whether obtained through reports, applications, examination,
8 audits, investigation, or otherwise, including:
9 (1) all information contained in or related to:
10 (A) examination;
11 (B) investigation;
12 (C) operation; or
13 (D) condition;
14 reports prepared by, on behalf of, or for the use of the
15 director; or
16 (2) financial statements or balance sheets of an applicant or
17 licensee;
18 are confidential and may not be disclosed or distributed outside the
19 department by the director or any officer or employee of the
20 department, except as provided in subsection (b).
21 (f) The director may provide for the release of information to
22 representatives of:
23 (1) financial institution and financial services business
24 supervisory agencies;
25 (2) law enforcement agencies; or
26 (3) prosecutorial agencies or offices;
27 of a state (as defined in IC 28-2-17-19), the United States, or a
28 foreign country. An agency or office that receives information
29 from the director under this subsection shall maintain the
30 confidentiality of the information as described in IC 28-1-2-30.
31 (g) This section does not prohibit the director from releasing to
32 the public a list of persons licensed under this chapter or from
33 releasing aggregated financial data with respect to such licensees.
34 Sec. 403. (a) The director may conduct an examination or
35 investigation of a licensee or otherwise take independent action
36 authorized by this chapter, or by a rule adopted or order issued
37 under this chapter, as reasonably necessary or appropriate to
38 administer and enforce this chapter and rules implementing this
39 chapter. The director may:
40 (1) conduct an examination either onsite or offsite as the
41 director may reasonably require;
42 (2) conduct an examination in conjunction with an
EH 1125—LS 6811/DI 101 12
1 examination conducted by other state agencies or agencies of
2 another state or of the federal government;
3 (3) accept the examination report of another state agency or
4 an agency of another state or of the federal government, or a
5 report prepared by an independent accounting firm, with any
6 such report considered, upon being accepted and for all
7 purposes, as an official report of the director; and
8 (4) summon and examine under oath a key individual or
9 employee of a licensee or authorized delegate and require the
10 person to produce records regarding any matter related to the
11 condition and business of the licensee.
12 (b) A licensee shall provide, and the director shall have full and
13 complete access to, all records the director may reasonably require
14 to conduct a complete examination. The records must be provided
15 at the location and in the format specified by the director. The
16 director may use multistate record production standards and
17 examination procedures when those standards will reasonably
18 achieve the purposes of this subsection.
19 (c) Unless otherwise directed by the director, a licensee shall pay
20 all costs reasonably incurred in connection with an examination of
21 the licensee.
22 (d) The director shall determine the sufficiency of the licensee's
23 records and whether the licensee has made the required
24 information reasonably available.
25 (e) To discover violations of this chapter, the director may
26 investigate and examine the records of any person the director
27 believes is operating without a license, when a license is required
28 under this chapter. The person examined must pay the reasonably
29 incurred costs of the examination.
30 Sec. 404. (a) To efficiently and effectively administer and
31 enforce this chapter and to minimize regulatory burden, the
32 director may participate in multistate supervisory processes
33 established between states and coordinated through the Conference
34 of State Bank Supervisors and any affiliate or successor of that
35 organization for all licensees that hold licenses in Indiana and
36 other states. As a participant in multistate supervision, the director
37 may:
38 (1) cooperate, coordinate, and share information with other
39 state and federal regulators in accordance with section 402 of
40 this chapter;
41 (2) enter into written cooperation, coordination, or
42 information sharing contracts or agreements with
EH 1125—LS 6811/DI 101 13
1 organizations the membership of which is made up of state or
2 federal governmental agencies; and
3 (3) cooperate, coordinate, and share information with
4 organizations the membership of which is made up of state or
5 federal governmental agencies, as long as the organizations
6 agree in writing to maintain the confidentiality and security
7 of the shared information in accordance with section 402 of
8 this chapter.
9 (b) The director may not waive, and nothing in this section
10 constitutes a waiver of, the director's authority to conduct an
11 examination or investigation or to otherwise take independent
12 action authorized by this chapter, or by a rule adopted or order
13 issued under this chapter, to enforce compliance with applicable
14 state or federal law.
15 (c) The performance of a joint examination or investigation, or
16 acceptance of an examination or investigation report, does not
17 waive the director's authority to perform an examination
18 assessment provided for in this chapter.
19 Sec. 501. (a) A person may not:
20 (1) engage in the business of offering or providing earned
21 wage access services; or
22 (2) advertise, solicit, or hold itself out as offering or providing
23 earned wage access services;
24 unless the person is licensed under this chapter.
25 (b) Subsection (a) does not apply to a person that is exempt
26 under section 301 of this chapter and does not engage in the
27 business of offering or providing earned wage access services
28 outside the scope of the exemption.
29 (c) A license issued under section 503 of this chapter is not
30 transferable or assignable without the approval of the department.
31 Sec. 502. (a) To establish consistent licensing between this state
32 and other states, the director may:
33 (1) implement all licensing provisions of this chapter in a
34 manner that is consistent with other states that have adopted:
35 (A) a law containing the same provisions of this chapter; or
36 (B) multistate licensing processes; and
37 (2) participate in nationwide protocols for licensing
38 cooperation and coordination among state regulators if those
39 protocols are consistent with this chapter.
40 (b) To administer and enforce this chapter, the director may
41 establish relationships or contracts with the NMLSR or other
42 entities designated by the NMLSR to enable the director to:
EH 1125—LS 6811/DI 101 14
1 (1) collect and maintain records;
2 (2) coordinate multistate licensing processes and supervision
3 processes;
4 (3) process fees; and
5 (4) facilitate communication between the state and licensees
6 or other persons subject to this chapter.
7 (c) The director may use the NMLSR for all aspects of licensing
8 in accordance with this chapter, including license applications,
9 applications for acquisitions of control, surety bonds, reporting,
10 criminal history background checks, credit checks, fee processing,
11 and examinations.
12 (d) The director may use NMLSR forms, processes, and
13 functionalities in accordance with this chapter. If the NMLSR does
14 not provide functionality, forms, or processes for a provision of this
15 chapter, the director may implement the requirements in a manner
16 that facilitates uniformity with respect to licensing, supervision,
17 reporting, and regulation of licensees that are licensed in multiple
18 jurisdictions.
19 (e) For the purpose of participating in the NMLSR, the director
20 is authorized to waive or modify, in whole or in part, by rule or
21 order, any or all of the requirements for licensure and to establish
22 new requirements as reasonably necessary to participate in the
23 NMLSR.
24 Sec. 503. (a) The department shall receive and act on all
25 applications for licenses to offer or provide earned wage access
26 services. Applications must be made as prescribed by the director.
27 If, at any time, the information or record contained in:
28 (1) an application filed under this section; or
29 (2) a renewal application filed under section 506 of this
30 chapter;
31 is or becomes inaccurate or incomplete in a material respect, the
32 applicant shall promptly file a correcting amendment with the
33 department.
34 (b) A license may not be issued unless the department finds that
35 the professional training and experience, financial responsibility,
36 character, and fitness of:
37 (1) the applicant;
38 (2) each executive officer, director, or manager of the
39 applicant, or any other individual having a similar status or
40 performing a similar function for the applicant; and
41 (3) if known, each person directly or indirectly owning of
42 record or owning beneficially at least ten percent (10%) of the
EH 1125—LS 6811/DI 101 15
1 outstanding shares of any class of equity security of the
2 applicant;
3 are such as to warrant belief that the business will be operated
4 honestly and fairly.
5 (c) The director is entitled to request evidence of compliance
6 with this section at:
7 (1) the time of application;
8 (2) the time of renewal of a license; or
9 (3) any other time considered necessary by the director.
10 (d) Evidence of compliance with this section must include:
11 (1) criminal background checks, as described in section 504 of
12 this chapter, including a national criminal history background
13 check (as defined in IC 10-13-3-12) by the Federal Bureau of
14 Investigation, for any individual described in subsection (b);
15 (2) credit histories as described in section 504 of this chapter;
16 (3) surety bond requirements as described in section 505 of
17 this chapter;
18 (4) a review of licensure actions in Indiana and in other states;
19 and
20 (5) other background checks considered necessary by the
21 director.
22 (e) For purposes of this section and in order to reduce the points
23 of contact that the director has to maintain under this section, the
24 director may use the NMLSR as a channeling agent for requesting
25 and distributing information to and from any source as directed by
26 the director.
27 (f) The department may deny an application under this section
28 if the director of the department determines that the application
29 was submitted for the benefit of, or on behalf of, a person who does
30 not qualify for a license.
31 (g) Upon written request, an applicant is entitled to a hearing,
32 in the manner provided in IC 4-21.5, on the question of the
33 qualifications of the applicant for a license.
34 (h) An applicant shall pay the following fees at the time
35 designated by the department:
36 (1) An initial license fee as established by the department
37 under IC 28-11-3-5, which shall not exceed two thousand five
38 hundred dollars ($2,500). Until the department establishes an
39 initial license fee under IC 28-11-3-5, the initial license fee
40 shall be one thousand five hundred dollars ($1,500).
41 (2) Examination fees as established by the department under
42 IC 28-11-3-5, which shall not exceed one hundred dollars
EH 1125—LS 6811/DI 101 16
1 ($100) per hour. Until the department establishes an
2 examination fee schedule under IC 28-11-3-5 that is
3 applicable to an applicant under this chapter, the examination
4 fee schedule shall be the fee schedule applicable to persons
5 licensed under IC 24-4.5-7.
6 (3) An annual renewal fee as established by the department
7 under IC 28-11-3-5, which shall not exceed two thousand five
8 hundred dollars ($2,500). Until the department establishes an
9 annual renewal fee under IC 28-11-3-5, the annual renewal
10 fee shall be one thousand five hundred dollars ($1,500).
11 (i) A fee as established by the department under IC 28-11-3-5
12 may be charged for each day a fee under subsection (h)(2) or (h)(3)
13 is delinquent. The fee described in this subsection shall not exceed
14 fifty dollars ($50) per day.
15 (j) Except in a transaction approved under section 601 of this
16 chapter, a license issued under this section is not assignable or
17 transferable.
18 (k) If the department of state revenue notifies the department
19 that a person is on the most recent tax warrant list, the department
20 shall not issue or renew the person's license until:
21 (1) the person provides to the department a statement from
22 the department of state revenue that the person's tax warrant
23 has been satisfied; or
24 (2) the department receives a notice from the commissioner of
25 the department of state revenue under IC 6-8.1-8-2(k).
26 Sec. 504. (a) An individual in control of a licensee or an
27 applicant, an individual who seeks to acquire control of a licensee,
28 and each key individual with respect to a licensee or an applicant
29 shall furnish to the department through the NMLSR the following
30 items:
31 (1) The individual's fingerprints for submission to the Federal
32 Bureau of Investigation and the department for purposes of
33 a national criminal history background check.
34 (2) Personal history and experience, in a form and by a
35 medium prescribed by the director, including the following:
36 (A) An independent credit report from a consumer
37 reporting agency unless the individual does not have a
38 Social Security number, in which case a credit report is not
39 required.
40 (B) Information related to any criminal convictions with
41 respect to, or pending charges against, the individual.
42 (C) Information related to any:
EH 1125—LS 6811/DI 101 17
1 (i) regulatory or administrative action; or
2 (ii) civil litigation;
3 involving claims of fraud, misrepresentation, conversion,
4 mismanagement of funds, breach of fiduciary duty, or
5 breach of contract.
6 (b) The director may:
7 (1) waive one (1) or more requirements set forth in subsection
8 (a); or
9 (2) permit an applicant to submit other information instead of
10 meeting one (1) or more of the requirements set forth in
11 subsection (a).
12 Sec. 505. (a) An applicant for an earned wage access services
13 license must provide, and a licensee at all times must maintain,
14 security consisting of a surety bond in a form satisfactory to the
15 director.
16 (b) Subject to subsections (c) and (d), the amount of the required
17 security under this section is the greater of:
18 (1) one hundred thousand dollars ($100,000); or
19 (2) an amount equal to the licensee's average daily provision
20 of proceeds to Indiana consumers, as calculated for the most
21 recently completed calendar quarter, up to a maximum of two
22 hundred fifty thousand dollars ($250,000).
23 (c) A licensee that maintains a bond in the maximum amount of
24 two hundred fifty thousand dollars ($250,000) set forth in
25 subsection (b)(2) is not required to calculate the licensee's average
26 daily provision of proceeds to Indiana consumers for purposes of
27 this section.
28 (d) A licensee may exceed the maximum required bond amount
29 of two hundred fifty thousand dollars ($250,000) set forth in
30 subsection (b)(2).
31 Sec. 506. (a) A license under this chapter shall be renewed
32 annually as follows:
33 (1) An annual renewal fee, as set by the department, shall be
34 paid not later than December 31 of each year.
35 (2) The renewal term is for a period of one (1) year and:
36 (A) begins on January 1 of each year after the initial
37 license term; and
38 (B) expires on December 31 of the year the renewal term
39 begins.
40 (b) A licensee shall submit a renewal report with the renewal
41 fee, in a form and by a medium prescribed by the director. The
42 renewal report must state or contain a description of each material
EH 1125—LS 6811/DI 101 18
1 change in the information submitted by the licensee in its original
2 license application, if such change has not been previously reported
3 to the department.
4 (c) The director may grant an extension of the renewal date for
5 good cause.
6 (d) The director may use the NMLSR to process license
7 renewals, as long as the functionality of the NMLSR for such
8 purpose is consistent with this section.
9 Sec. 507. (a) If a licensee does not continue to meet the
10 qualifications or satisfy the requirements that apply to an applicant
11 for a new earned wage access services license, the department may
12 suspend or revoke the licensee's license in accordance with the
13 procedures established by this chapter or other applicable state
14 law for such suspension or revocation.
15 (b) An applicant for an earned wage access services license must
16 demonstrate that it meets or will meet, and an earned wage access
17 services licensee must at all times meet, the requirements set forth
18 in section 505 of this chapter.
19 Sec. 601. (a) Any person, or group of persons acting in concert,
20 seeking to acquire control of a licensee shall obtain the written
21 approval of the department before acquiring control. An
22 individual:
23 (1) is not considered to acquire control of a licensee; and
24 (2) is not subject to the acquisition of control provisions set
25 forth in this chapter;
26 when that individual becomes a key individual in the ordinary
27 course of business.
28 (b) A person, or group of persons acting in concert, seeking to
29 acquire control of a licensee shall, in cooperation with the licensee,
30 submit:
31 (1) an application in a form and by a medium prescribed by
32 the director; and
33 (2) a nonrefundable fee, as determined by the department,
34 with the request for approval. The nonrefundable fee
35 established under this subdivision shall not exceed two
36 thousand five hundred dollars ($2,500). Until the department
37 establishes the nonrefundable fee under IC 28-11-3-5, the
38 nonrefundable fee shall be one thousand five hundred dollars
39 ($1,500).
40 (c) Upon request, the director may permit a licensee or the:
41 (1) person; or
42 (2) group of persons acting in concert;
EH 1125—LS 6811/DI 101 19
1 seeking to acquire control of the licensee, to submit some or all
2 information required in an application under subsection (b)(1)
3 without using the NMLSR.
4 (d) The application required under subsection (b)(1) must
5 include information required by section 504 of this chapter for any
6 new key individuals that have not previously completed the
7 requirements of section 504 of this chapter for a licensee.
8 (e) Subject to subsection (f), when an application for acquisition
9 of control appears to include all the items, and to address all the
10 matters, that are required for an application for change in control,
11 as determined by the director, the application is considered
12 complete, and the director shall promptly notify the applicant, in
13 a record, of the date on which the application is determined to be
14 complete, and:
15 (1) the department shall approve or deny the application not
16 later than sixty (60) days after the completion date, as
17 determined in accordance with this subsection; or
18 (2) if the application is not approved or denied not later than
19 sixty (60) days after the completion date:
20 (A) the application is considered approved; and
21 (B) the person, or group of persons acting in concert,
22 seeking to acquire control of the licensee is not prohibited
23 from acquiring control.
24 However, the director may for good cause extend the sixty (60) day
25 period described in this subsection.
26 (f) A determination by the director that an application is
27 complete and is accepted for processing means only that the
28 application, on its face, appears to:
29 (1) include all of the items; and
30 (2) address all of the matters;
31 that are required for an application for acquisition of control
32 under this chapter, and is not an assessment of the substance of the
33 application or of the sufficiency of the information provided.
34 (g) When an application is filed and considered complete under
35 subsection (e), the director shall investigate the financial condition
36 and responsibility, financial and business experience, character,
37 and general fitness of the person, or group of persons acting in
38 concert, seeking to acquire control. The department shall approve
39 an acquisition of control under this section if the department finds
40 that all of the following conditions have been met:
41 (1) The requirements set forth in subsections (b) and (d) have
42 been met, as applicable.
EH 1125—LS 6811/DI 101 20
1 (2) Both the:
2 (A) financial condition and responsibility, financial and
3 business experience, competence, character, and general
4 fitness of the person, or group of persons acting in concert,
5 seeking to acquire control; and
6 (B) competence, experience, character, and general fitness
7 of the key individuals and persons that would be in control
8 of the licensee after the acquisition of control;
9 indicate that it is in the interest of the public to permit the
10 person, or group of persons acting in concert, to control the
11 licensee.
12 (h) If an applicant avails itself of, or is otherwise subject to, a
13 multistate licensing process:
14 (1) the director may accept the investigation results of a lead
15 investigative state for the purpose of subsection (g) if the lead
16 investigative state has sufficient staffing, expertise, and
17 minimum standards; or
18 (2) if Indiana is a lead investigative state, the director may
19 investigate the applicant pursuant to subsection (g) and to the
20 time frames established by agreement through the multistate
21 licensing process.
22 (i) The department shall issue a formal written notice of the
23 denial of an application to acquire control not later than thirty (30)
24 days after the decision to deny the application. The department
25 shall set forth in the notice of denial the specific reasons for the
26 denial of the application. An applicant whose application is denied
27 by the department under this subsection may appeal the denial to
28 the department for an administrative review under IC 4-21.5-3.
29 (j) The requirements of subsections (a) and (b) do not apply to
30 any of the following:
31 (1) A person that acts as a proxy for the sole purpose of voting
32 at a designated meeting of the:
33 (A) shareholders;
34 (B) holders of voting shares; or
35 (C) voting interests;
36 of a licensee or a person in control of a licensee.
37 (2) A person that acquires control of a licensee as a
38 conservator or as an officer appointed by a court of
39 competent jurisdiction or by operation of law.
40 (3) A person that is exempt under section 301 of this chapter.
41 (4) A person that the director determines is not subject to
42 subsection (a) based on the public interest.
EH 1125—LS 6811/DI 101 21
1 (5) A public offering of securities of a licensee or of a person
2 in control of a licensee.
3 (6) An internal reorganization of a person in control of the
4 licensee if the ultimate person in control of the licensee
5 remains the same.
6 (k) A person described in subsection (j)(2), (j)(3), (j)(5), or (j)(6),
7 in cooperation with the licensee, shall notify the director not later
8 than fifteen (15) days after the acquisition of control.
9 (l) The requirements of subsections (a) and (b) do not apply to
10 a person that has complied with, and received approval to engage
11 in, the business of offering or providing earned wage access
12 services under this chapter, or that was identified as a person in
13 control in a prior application filed with and approved by the
14 department, if all of the following apply:
15 (1) The person has not:
16 (A) had a license revoked or suspended; or
17 (B) controlled a licensee that has had a license revoked or
18 suspended while the person was in control of the licensee;
19 in the most recent five (5) years.
20 (2) The licensee to be acquired will not implement any
21 material changes to its business plan as a result of the
22 acquisition of control, and if the person acquiring control is a
23 licensee, the person acquiring control also will not implement
24 any material changes to its business plan as a licensee as a
25 result of the acquisition of control.
26 (3) The person provides notice of the acquisition in
27 cooperation with the licensee and attests to meeting the
28 requirements set forth in subdivisions (1) and (2) in a form
29 and by a medium prescribed by the director.
30 If the notice described in subdivision (3) is not disapproved within
31 thirty (30) days after the date on which the notice is determined to
32 be complete by the director, the notice is considered approved.
33 (m) Before filing an application for approval to acquire control
34 of a licensee, a person may request in writing a determination from
35 the director as to whether the person would be considered a person
36 in control of a licensee upon consummation of a proposed
37 transaction. If the director determines that the person would not
38 be a person in control of a licensee, the proposed person and
39 transaction is not subject to the requirements of subsections (a)
40 and (b).
41 (n) If a multistate licensing process includes a determination
42 described in subsection (m), and an applicant avails itself of, or is
EH 1125—LS 6811/DI 101 22
1 otherwise subject to, the multistate licensing process:
2 (1) the director may accept the control determination of a lead
3 investigative state with sufficient staffing, expertise, and
4 minimum standards for the purpose of subsection (m); or
5 (2) if Indiana is a lead investigative state, the director may
6 investigate the applicant pursuant to subsection (m) and to the
7 time frames established by agreement through the multistate
8 licensing process.
9 Sec. 602. (a) A licensee adding or replacing any key individual
10 shall:
11 (1) provide notice in a manner prescribed by the director not
12 later than fifteen (15) days after the effective date of the key
13 individual's appointment; and
14 (2) provide information as required by section 504 of this
15 chapter not later than forty-five (45) days after the effective
16 date of the key individual's appointment.
17 (b) Not later than ninety (90) days after the date on which a
18 notice provided under subsection (a) is determined by the director
19 to be complete, the department may issue a notice of disapproval
20 of a key individual if the competence, experience, character, or
21 integrity of the individual would not be in the best interests of:
22 (1) the public; or
23 (2) the customers of the licensee;
24 so as to permit the individual to be a key individual of such
25 licensee.
26 (c) A notice of disapproval under subsection (b) must contain a
27 statement of the basis for disapproval and shall be sent to the
28 licensee and the disapproved individual. A licensee that receives a
29 notice of disapproval under subsection (b) may appeal the denial
30 to the department for an administrative review under IC 4-21.5-3.
31 (d) If a notice provided under subsection (a) is not disapproved
32 within ninety (90) days after the date on which the notice was
33 determined by the director to be complete, the key individual is
34 considered approved.
35 (e) If a multistate licensing process includes a key individual
36 notice and review and approval process as described in this section,
37 and a licensee avails itself of, or is otherwise subject to, the
38 multistate licensing process:
39 (1) the director may accept the determination of another state
40 if the investigating state has sufficient staffing, expertise, and
41 minimum standards for the purpose of this section; or
42 (2) if Indiana is a lead investigative state, the director may
EH 1125—LS 6811/DI 101 23
1 investigate the applicant pursuant to this section and to the
2 time frames established by agreement through the multistate
3 licensing process.
4 Sec. 701. (a) A provider required to be licensed under this
5 chapter shall maintain records in a manner that will enable the
6 department to determine whether the provider is complying with
7 the provisions of this chapter. The department shall be given free
8 access to the records wherever the records are located. Records
9 concerning any earned wage access services transaction shall be
10 retained for two (2) years after the transaction is initiated. A
11 provider licensed or required to be licensed under this chapter is
12 subject to IC 28-1-2-30.5 with respect to any records maintained by
13 the provider.
14 (b) A provider required to be licensed under this chapter shall
15 file with the department, in the form and manner required by the
16 department, a quarterly composite report relating to all earned
17 wage access services transactions made by the provider in Indiana
18 during the reporting period covered by the report. Information
19 contained in the reports is confidential and may be published only
20 in composite form. The department may impose a fee in an amount
21 fixed by the department under IC 28-11-3-5 for each day that a
22 provider fails to file the report required by this subsection. The fee
23 established under this subsection shall not exceed fifty dollars ($50)
24 per day.
25 Sec. 801. A provider required to be licensed under this chapter
26 shall do the following:
27 (1) Develop and implement policies and procedures to:
28 (A) respond to questions raised by consumers; and
29 (B) address complaints from consumers;
30 in an expedient manner.
31 (2) Whenever the provider offers a consumer the option to
32 receive proceeds for a fee or solicits a tip, gratuity, or other
33 donation:
34 (A) offer that consumer at least one (1) reasonable option
35 to obtain proceeds at no cost;
36 (B) clearly explain to the consumer how to elect each no
37 cost option offered;
38 (C) ensure that any no cost option offered is clearly
39 displayed and is in the same:
40 (i) color;
41 (ii) font;
42 (iii) font size; and
EH 1125—LS 6811/DI 101 24
1 (iv) general location;
2 as any option to obtain proceeds that has a fee associated
3 with it;
4 (D) ensure that any option to obtain proceeds that has a fee
5 associated with the delivery of the proceeds is not the
6 default option;
7 (E) ensure that if a consumer elects to not pay a tip,
8 gratuity, or other donation, any fee amount charged to the
9 consumer as part of an earned wage access services
10 transaction is not increased because of the consumer's
11 decision to not pay a tip, gratuity, or other donation; and
12 (F) ensure that, if a consumer elects a no cost option,
13 initiate the delivery of the proceeds to the consumer not
14 later than one (1) business day after the consumer initiates
15 an earned wage access services transaction with the
16 provider.
17 (3) Before entering into an agreement with a consumer to
18 provide earned wage access services, do both of the following:
19 (A) Inform the consumer of the consumer's rights under
20 the agreement.
21 (B) Fully and clearly disclose all fees associated with the
22 earned wage access services to be provided.
23 (4) Inform the consumer of the fact of or obtain the consent of
24 the consumer to any material changes to the terms and
25 conditions of the earned wage access services before
26 implementing those changes for that consumer.
27 (5) Allow the consumer to cancel use of the provider's earned
28 wage access services:
29 (A) at any time; and
30 (B) without incurring a cancellation fee imposed by the
31 provider.
32 (6) Comply with all applicable local, state, and federal privacy
33 and information security laws.
34 (7) If the provider solicits, charges, or receives a tip, gratuity,
35 or other donation from a consumer:
36 (A) clearly and conspicuously disclose to the consumer
37 immediately before each transaction that a tip, gratuity, or
38 other donation:
39 (i) is voluntary; and
40 (ii) may be in the amount of zero dollars ($0); and
41 (B) clearly and conspicuously disclose in the provider's
42 service contract with the consumer that tips, gratuities, or
EH 1125—LS 6811/DI 101 25
1 other donations are voluntary and that the offering of
2 earned wage access services, including:
3 (i) the amount of proceeds that a consumer is eligible to
4 request;
5 (ii) the frequency with which proceeds are provided to a
6 consumer; and
7 (iii) the level or cost of any service provided to the
8 consumer in connection with an earned wage access
9 services transaction;
10 is not contingent on whether the consumer pays any tip,
11 gratuity, or other donation, or on the amount of the tip,
12 gratuity, or other donation.
13 (8) Provide proceeds to a consumer by any means mutually
14 agreed upon by the provider and the consumer.
15 (9) If the provider seeks repayment of outstanding proceeds
16 or the payment of fees or other amounts owed (including
17 voluntary tips, gratuities, or other donations) in connection
18 with earned wage access services provided under this chapter
19 from a consumer's deposit account, including by means of
20 electronic funds transfer, the provider must do the following:
21 (A) Comply with applicable provisions of the federal
22 Electronic Funds Transfer Act (15 U.S.C. 1693 et seq.).
23 (B) Reimburse the consumer for the full amount of any
24 overdraft or nonsufficient funds fees that are imposed on
25 the consumer by the consumer's depository financial
26 institution if the overdraft or nonsufficient funds fees
27 resulted from the provider's attempt to seek payment of
28 any outstanding proceeds, fees, or other amounts
29 (including voluntary tips, gratuities, or other donations)
30 under this chapter:
31 (i) on a date before; or
32 (ii) in an incorrect amount from;
33 the date or amount disclosed to the consumer. However, a
34 provider is not subject to the requirements of this clause
35 with respect to the payment of any outstanding proceeds,
36 fees, or other amounts incurred by a consumer through
37 fraudulent or other unlawful means.
38 (10) Ensure that the provider's software application does not
39 do any of the following:
40 (A) Subject a user of the software application to unsolicited
41 electronic mail advertisements or surveys, if the user has
42 elected to not receive electronic mail advertisements or
EH 1125—LS 6811/DI 101 26
1 surveys, as required by 15 U.S.C. 7701-7713.
2 (B) Subject a user of the software application to unsolicited
3 electronic advertisements or surveys, based on the
4 individual user's:
5 (i) use of the provider's software application;
6 (ii) location; or
7 (iii) behavior;
8 if the user has elected to not receive the electronic
9 advertisements or surveys.
10 (C) Display an unsolicited electronic notification to a user
11 of the software application unless the user has elected to
12 receive electronic notifications.
13 (D) Access a user's location, except for purposes of
14 verifying that a user is located in Indiana at the time the
15 user creates an account with the provider, unless the user
16 has authorized the provider's software application to
17 access the user's location.
18 (11) Ensure that any data that the provider receives under
19 subdivision (10) is not sold or shared, except as follows:
20 (A) In connection with a law enforcement investigation or
21 legal proceeding.
22 (B) As necessary to provide earned wage access services to
23 the user.
24 (C) The user authorizes the provider to sell or share the
25 data.
26 (12) Sell consumer data to a lender (as defined in
27 IC 24-4.5-7-111) licensed under IC 24-4.5-7.
28 (13) Share consumer data with a lender (as defined in
29 IC 24-4.5-7-111) licensed under IC 24-4.5-7.
30 Sec. 802. A provider required to be licensed under this chapter
31 shall not do any of the following:
32 (1) Share with an employer a portion of any:
33 (A) fees; or
34 (B) voluntary tips, gratuities, or other donations;
35 received from or charged to a consumer for earned wage
36 access services.
37 (2) Use a consumer's credit score from a consumer report (as
38 defined in IC 24-5-24-2) to determine:
39 (A) a consumer's eligibility for earned wage access
40 services;
41 (B) the amount of proceeds that a consumer is eligible to
42 request or receive in an earned wage access services
EH 1125—LS 6811/DI 101 27
1 transaction; or
2 (C) the frequency with which proceeds may be provided to
3 a consumer through earned wage access services
4 transactions.
5 (3) Accept payment of outstanding proceeds, fees, or
6 voluntary tips, gratuities, or other donations by means of a
7 credit card (as defined in IC 24-5-27.5-3).
8 (4) Charge or collect a late fee, a deferral fee, interest, or any
9 other charge or penalty for a consumer's failure to pay
10 outstanding proceeds, fees, or voluntary tips, gratuities, or
11 other donations.
12 (5) Compel or attempt to compel a consumer to pay to the
13 provider any outstanding proceeds, fees, or voluntary tips,
14 gratuities, or other donations through any of the following
15 means:
16 (A) The use of unsolicited outbound telephone calls to the
17 consumer.
18 (B) A suit against the consumer in a court of competent
19 jurisdiction.
20 (C) The use of a third party to pursue collection from the
21 consumer on the provider's behalf.
22 (D) The sale of outstanding amounts to a third party
23 collector or debt buyer for collection from the consumer.
24 However, this subdivision does not preclude a provider from
25 using any of the means set forth in clauses (A) through (D) to
26 pursue payment of outstanding amounts incurred by a
27 consumer through fraudulent or other unlawful means, or
28 from pursuing any available remedies against an employer for
29 breach of the employer's contractual obligations to the
30 provider.
31 (6) If the provider solicits, charges, or receives a tip, gratuity,
32 or other donation from a consumer:
33 (A) mislead or deceive consumers about the voluntary
34 nature of the tips, gratuities, or donations;
35 (B) represent that tips, gratuities, or donations will benefit
36 any specific individuals; or
37 (C) suggest a default tip, gratuity, or other donation
38 amount greater than zero dollars ($0).
39 (7) If the provider also offers small loans to consumers under
40 IC 24-4.5-7:
41 (A) provide proceeds to a consumer who has a small loan
42 outstanding from that provider, as verified by the provider
EH 1125—LS 6811/DI 101 28
1 in accordance with IC 24-4.5-7-404(4); or
2 (B) make a small loan to a consumer who has outstanding
3 proceeds from that provider.
4 Sec. 803. A fee described in section 201(11)(A) of this chapter
5 shall not exceed:
6 (1) an amount; or
7 (2) a percentage of the proceeds delivered to a consumer;
8 that exceeds the limitation set forth in IC 28-8-5-17(a)(2).
9 Sec. 901. (a) A license issued by the department under this
10 chapter may be revoked or suspended by the department if the
11 person fails to:
12 (1) file any renewal form required by the department; or
13 (2) pay any license renewal fee described under section
14 506(a)(1) of this chapter;
15 not later than sixty (60) days after the due date.
16 (b) A person whose license is revoked or suspended under this
17 section may:
18 (1) pay all delinquent fees and apply for a reinstatement of the
19 person's license; or
20 (2) appeal the revocation or suspension to the department in
21 an administrative review under IC 4-21.5-3.
22 Pending the decision resulting from a hearing under IC 4-21.5-3
23 concerning license revocation or suspension, a license remains in
24 force.
25 Sec. 902. Except as otherwise provided, IC 4-21.5 applies to and
26 governs all agency action taken by the department under this
27 chapter. A proceeding for administrative review under IC 4-21.5-3
28 or judicial review under IC 4-21.5-5 must be held in Marion
29 County.
30 Sec. 903. (a) If the department determines, after notice and an
31 opportunity to be heard, that a person has violated this chapter,
32 the department may, in addition to or instead of all other remedies
33 available under this chapter, impose upon the person a civil
34 penalty not greater than ten thousand dollars ($10,000) per
35 violation.
36 (b) A penalty collected under this section shall be deposited into
37 the financial institutions fund established by IC 28-11-2-9.
38 Sec. 904. The director, in the exercise of reasonable judgment,
39 is authorized to compromise, settle, and collect civil penalties from
40 a person for a violation of:
41 (1) a provision of this chapter; or
42 (2) an order issued or promulgated pursuant to this chapter.
EH 1125—LS 6811/DI 101 29
1 Sec. 905. If it appears to the director that a person has
2 committed or is about to commit a violation of a provision of this
3 chapter or an order of the director, the director may apply to a
4 court having jurisdiction for:
5 (1) an order enjoining the person from violating or continuing
6 to violate this chapter or the order; or
7 (2) injunctive or other relief;
8 as the nature of the case may require.
9 Sec. 906. (a) The director may enter into a consent order with
10 a person to resolve a matter arising under this chapter.
11 (b) A consent order must:
12 (1) be signed by the person to whom it is issued or by an
13 authorized representative of that person; and
14 (2) indicate agreement to the terms contained within the
15 consent order.
16 (c) A consent order does not:
17 (1) constitute an admission by a person that a provision of this
18 chapter or an order promulgated or issued under this chapter
19 has been violated; or
20 (2) constitute a finding by the director that the person has
21 violated a provision of this chapter or an order promulgated
22 or issued under this chapter.
23 (d) Notwithstanding the issuance of a consent order, the director
24 may seek civil or criminal penalties or compromise civil penalties
25 concerning matters encompassed by the consent order, unless the
26 consent order by its terms expressly precludes the director from
27 doing so.
28 Sec. 907. (a) A person who knowingly or intentionally makes a
29 material false statement, or omits a material entry, in a document
30 filed or required to be filed under this chapter, with the intent to
31 deceive the recipient of the document, commits a Class C
32 misdemeanor.
33 (b) A person who knowingly or intentionally fails to file a
34 document required to be filed under this chapter, commits a Class
35 D infraction. However, the person commits a Class C infraction for
36 a subsequent offense.
37 Sec. 1001. (a) Rules promulgated by the director or the
38 department under this chapter must be adopted in accordance with
39 IC 4-22-2.
40 (b) At the time the director or department files a notice of
41 proposed adoption, amendment, or repeal of a rule under this
42 chapter for public comment, a copy of the notice must be sent by
EH 1125—LS 6811/DI 101 30
1 first class mail postage prepaid to all licensees and applicants for
2 licenses under this chapter as of the time the notice is sent.
3 Sec. 1002. (a) Notwithstanding any other provision of law,
4 earned wage access services offered or provided by a licensee in
5 accordance with this chapter are not considered to be any of the
6 following:
7 (1) A violation of, or noncompliance with, any Indiana law
8 governing deductions from payroll, salary, wages,
9 compensation, or other income.
10 (2) A violation of, or noncompliance with, any Indiana law
11 governing:
12 (A) the purchase of;
13 (B) the sale or assignment of; or
14 (C) an order for;
15 earned but unpaid income.
16 (3) A loan or other form of credit or debt.
17 (4) Money transmission (as defined in IC 28-8-4.1-201(19)).
18 (b) Notwithstanding any other provision of law, a licensee that
19 offers or provides earned wage access services in accordance with
20 this chapter is not considered to be any of the following solely by
21 reason of offering or providing the earned wage access services:
22 (1) A lender, creditor, credit services organization (as defined
23 in IC 24-5-15-2), or debt collector.
24 (2) A money transmitter for purposes of IC 28-8-4.1.
25 However, this subsection does not exempt a licensee under this
26 chapter from complying with section 802(7) of this chapter, as
27 applicable.
28 (c) Notwithstanding any other provision of law:
29 (1) fees; or
30 (2) voluntary tips, gratuities, or other donations;
31 paid by a consumer to a licensee in accordance with this chapter
32 are not considered to be interest or finance charges and shall not
33 be subject to IC 35-45-7-2.
34 (d) If there is a conflict between the provisions of this chapter
35 and any other Indiana law, the provisions of this chapter control.
36 Sec. 1003. The division of consumer credit within the
37 department is responsible for administering this chapter.
38 SECTION 4. IC 28-11-1-3, AS AMENDED BY P.L.198-2023,
39 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JANUARY 1, 2026]: Sec. 3. (a) The ultimate authority for and the
41 powers, duties, management, and control of the department are vested
42 in the following seven (7) members:
EH 1125—LS 6811/DI 101 31
1 (1) The director of the department, who serves as an ex officio,
2 voting member.
3 (2) The following six (6) members appointed by the governor as
4 follows:
5 (A) Three (3) members must have practical experience at the
6 executive level of a:
7 (i) state chartered bank;
8 (ii) state chartered savings association; or
9 (iii) state chartered savings bank.
10 (B) One (1) member must have practical experience at the
11 executive level as a:
12 (i) lender licensed under IC 24-4.5;
13 (ii) mortgage lender licensed under IC 24-4.4;
14 (iii) registrant under IC 24-7;
15 (iv) licensee under IC 28-1-29;
16 (v) licensee under IC 28-7-5;
17 (vi) licensee under IC 28-8-4.1; or
18 (vii) licensee under IC 28-8-5; or
19 (viii) licensee under IC 28-8-6.
20 (C) One (1) member must have practical experience at the
21 executive level of a state chartered credit union.
22 (D) One (1) member must be appointed with due regard for the
23 consumer, agricultural, industrial, and commercial interests of
24 Indiana.
25 (b) Not more than three (3) members appointed by the governor
26 under subsection (a)(2) after June 30, 2006, may be affiliated with the
27 same political party.
28 SECTION 5. IC 35-52-28-11.1 IS ADDED TO THE INDIANA
29 CODE AS A NEW SECTION TO READ AS FOLLOWS
30 [EFFECTIVE JANUARY 1, 2026]: Sec. 11.1. IC 28-8-6-907 defines
31 a crime concerning financial services.
EH 1125—LS 6811/DI 101 32
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.
_____
COMMITTEE REPORT
Mr. President: The Senate Committee on Insurance and Financial
Institutions, to which was referred House Bill No. 1125, has had the
same under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Replace the effective dates in SECTIONS 1 through 5 with
"[EFFECTIVE JANUARY 1, 2026]".
Page 7, delete lines 25 through 31, begin a new line double block
EH 1125—LS 6811/DI 101 33
indented and insert:
"(A) A service provider that is not contractually obligated
to fund proceeds delivered as part of the earned wage
access services, such as a payroll service provider that
verifies a consumer's available earnings.".
Page 7, between lines 35 and 36, begin a new line double block
indented and insert:
"(C) An entity that offers or provides earned wage access
services and reports a consumer's payment or nonpayment
of either outstanding proceeds of the earned wage access
services or fees, voluntary tips, gratuities, or other
donations in connection with the earned wage access
services to a consumer reporting agency (as defined in the
Federal Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.)).".
Page 7, line 39, delete "institution." and insert "institution, which
may provide earned wage access services in Indiana without
obtaining a license under this chapter.".
Page 15, line 30, delete "IC 28-11-3-5." and insert "IC 28-11-3-5,
which shall not exceed two thousand five hundred dollars
($2,500).".
Page 15, line 34, delete "IC 28-11-3-5." and insert "IC 28-11-3-5,
which shall not exceed one hundred dollars ($100) per hour.".
Page 15, line 40, delete "IC 28-11-3-5." and insert "IC 28-11-3-5,
which shall not exceed two thousand five hundred dollars
($2,500).".
Page 16, line 3, after "delinquent." insert "The fee described in this
subsection shall not exceed fifty dollars ($50) per day.".
Page 18, line 23, after "approval." insert "The nonrefundable fee
established under this subdivision shall not exceed two thousand
five hundred dollars ($2,500).".
Page 23, line 9, after "subsection." insert "The fee established
under this subsection shall not exceed fifty dollars ($50) per day.".
Page 23, line 20, delete "and".
Page 23, line 22, delete "offered." and insert "offered;".
Page 23, between lines 22 and 23, begin a new line double block
indented and insert:
"(C) ensure that any no cost option offered is clearly
displayed and is in the same:
(i) color;
(ii) font;
(iii) font size; and
EH 1125—LS 6811/DI 101 34
(iv) general location;
as any option to obtain proceeds that has a fee associated
with it;
(D) ensure that any option to obtain proceeds that has a fee
associated with the delivery of the proceeds is not the
default option;
(E) ensure that if a consumer elects to not pay a tip,
gratuity, or other donation, any fee amount charged to the
consumer as part of an earned wage access services
transaction is not increased because of the consumer's
decision to not pay a tip, gratuity, or other donation; and
(F) ensure that, if a consumer elects a no cost option,
initiate the delivery of the proceeds to the consumer not
later than one (1) business day after the consumer initiates
an earned wage access services transaction with the
provider.".
Page 23, line 29, after "fact of" insert "or obtain the consent of the
consumer to".
Page 24, line 9, delete "and".
Page 24, line 11, after "consumer;" insert "and
(iii) the level or cost of any service provided to the
consumer in connection with an earned wage access
services transaction;".
Page 24, between lines 39 and 40, begin a new line block indented
and insert:
"(10) Ensure that the provider's software application does not
do any of the following:
(A) Subject a user of the software application to unsolicited
electronic mail advertisements or surveys, if the user has
elected to not receive electronic mail advertisements or
surveys, as required by 15 U.S.C. 7701-7713.
(B) Subject a user of the software application to unsolicited
electronic advertisements or surveys, based on the
individual user's:
(i) use of the provider's software application;
(ii) location; or
(iii) behavior;
if the user has elected to not receive the electronic
advertisements or surveys.
(C) Display an unsolicited electronic notification to a user
of the software application unless the user has elected to
receive electronic notifications.
EH 1125—LS 6811/DI 101 35
(D) Access a user's location, except for purposes of
verifying that a user is located in Indiana at the time the
user creates an account with the provider, unless the user
has authorized the provider's software application to
access the user's location.
(11) Ensure that any data that the provider receives under
subdivision (10) is not sold or shared, except as follows:
(A) In connection with a law enforcement investigation or
legal proceeding.
(B) As necessary to provide earned wage access services to
the user.
(C) The user authorizes the provider to sell or share the
data.
(12) Sell consumer data to a lender (as defined in
IC 24-4.5-7-111) licensed under IC 24-4.5-7.
(13) Share consumer data with a lender (as defined in
IC 24-4.5-7-111) licensed under IC 24-4.5-7.".
Page 25, line 5, after "consumer's" insert "credit score from a".
Page 25, delete lines 22 through 28.
Page 25, line 29, delete "(6)" and insert "(5)".
Page 26, line 6, delete "(7)" and insert "(6)".
Page 26, line 9, delete "donations; or" and insert "donations;".
Page 26, line 11, delete "individuals." and insert "individuals; or
(C) suggest a default tip, gratuity, or other donation
amount greater than zero dollars ($0).".
Page 26, line 12, delete "(8)" and insert "(7)".
Page 26, between lines 18 and 19, begin a new paragraph and insert:
"Sec. 803. A fee described in section 201(11)(A) of this chapter
shall not exceed:
(1) an amount; or
(2) a percentage of the proceeds delivered to a consumer;
that exceeds the limitation set forth in IC 28-8-5-17(a)(2).".
Page 27, delete lines 38 through 42, begin a new paragraph and
insert:
"Sec. 907. (a) A person who knowingly or intentionally makes a
material false statement, or omits a material entry, in a document
filed or required to be filed under this chapter, with the intent to
deceive the recipient of the document, commits a Class C
misdemeanor.
(b) A person who knowingly or intentionally fails to file a
document required to be filed under this chapter, commits a Class
D infraction. However, the person commits a Class C infraction for
EH 1125—LS 6811/DI 101 36
a subsequent offense.".
Page 28, delete lines 1 through 3.
Page 28, line 35, delete "section 802(8)" and insert "section 802(7)".
Page 28, line 41, delete "charges." and insert "charges and shall
not be subject to IC 35-45-7-2.".
and when so amended that said bill do pass.
(Reference is to HB 1125 as printed February 4, 2025.)
BALDWIN, Chairperson
Committee Vote: Yeas 7, Nays 1.
EH 1125—LS 6811/DI 101