LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6811 NOTE PREPARED: Apr 15, 2025
BILL NUMBER: HB 1125 BILL AMENDED: Apr 10, 2025
SUBJECT: Earned Wage Access Services.
FIRST AUTHOR: Rep. Teshka BILL STATUS: As Passed Senate
FIRST SPONSOR: Sen. Walker K
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill establishes within the Indiana Code a new chapter, to be known as the
Indiana Earned Wage Access Act, governing the offering and provision of earned wage access services to
Indiana consumers. It provides that the Act is to be administered by the Division of Consumer Credit within
the Department of Financial Institutions.
The bill 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.
(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.
The bill also makes conforming changes to sections of the Indiana Code codified outside the Act.
Effective Date: January 1, 2026.
Explanation of State Expenditures: Department of Financial Institutions (DFI): The bill would increase
expenditures and workload for the DFI’s Division of Consumer Credit to administer and enforce the Indiana
Earned Wage Access Act. Any increase in expenditures would be offset from the fees and civil penalties
collected and deposited into the Financial Institutions Fund. [The DFI is funded through its own dedicated
fund, the Financial Institutions Fund, which was appropriated $12.5 M in FY 2024 and FY 2025.]
Explanation of State Revenues: Summary - The bill would increase revenue to the Financial Institutions
HB 1125 1 Fund through licensing of earned wage access providers and civil penalties for violations from earned wage
access providers. In addition, an increase in revenue to the state General Fund may occur from an increase
in civil cases and criminal penalties relating to earned wage access providers. Any increases in revenue are
expected to be small.
Additional Information -
Earned Wage Access Licensing: The bill establishes a $1,500 initial license and annual renewal fee for
earned wage access providers and examination fees of $80 per hour until the DFI establishes a schedule of
fees. The increase in revenue to the Financial Institutions Fund would depend on the number of earned wage
access providers that apply for the license, those that apply during the time frame where the DFI has not
adopted a schedule of fees, and the DFI’s established schedule of fees. The increase in revenue is likely to
be small.
The DFI would establish the following schedule of fees for earned wage access providers: (1) an initial
license fee, (2) an examination fee, and (3) renewal fees. Initial license fee and renewal fees vary on
discretion of the DFI. The DFI currently charges fees ranging from $500 to $2,000 for other licenses and
examination fees of $80 per hour. Late exams or late renewals have a $20 per day charge fee. The bill places
the following limits on scheduling of fees: (1) The initial fee may not exceed $2,500. (2) The examination
fee may not exceed $100 per day. (3) The annual renewal fee may not exceed $2,500. (4) A delinquency fee
may not exceed $50 per day.
Civil Penalty: The bill allows the DFI to impose a civil penalty up to $10,000 for a violation of the Indiana
Earned Wage Access Act. The penalty will be deposited into the Financial Institutions Fund. It may increase
revenue to the Financial Institutions Fund to the extent that alleged violations are prosecuted.
Court Fee Revenue: If additional civil cases occur and court fees are collected, revenue to the state General
Fund will increase. The total revenue per case would range between $100 and $122. The amount deposited
will vary depending on whether the case is filed in a court of record or a municipal court. The following
linked document describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and
small claims cases.
Penalty Provision: The bill makes it a Class C misdemeanor for a person under the Indiana Earned Wage
Access Act to knowingly or intentionally make a material false statement or omission in a document with
the intent to deceive the recipient of the document. In addition, the bill makes it a Class D infraction fail to
file a required document and upgraded to a Class C infraction for subsequent violations.
If additional court cases occur and fines are collected, revenue to both the Common School Fund (from fines)
and the state General Fund (from court fees) would increase. The maximum fine for a Class C misdemeanor
and Class C infraction is $500. The maximum judgment for a Class D infraction is $25. The total fee revenue
per case for a misdemeanor would range between $113 and $138 while the total court fee revenue per case
for an infraction would range between $85.50 and $103. The amount of court fees deposited will vary
depending on whether the case is filed in a court of record or a municipal court. The following linked
document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and
civil violation cases.
Explanation of Local Expenditures: Penalty Provision: A Class C misdemeanor is punishable by up to 60
days in jail.
HB 1125 2 Explanation of Local Revenues: Court Fee Revenue: If additional cases occur, revenue will be collected
by certain local units. If the case is filed in a court of record, the county will receive $32 and qualifying
municipalities will receive a share of $3. If the case is filed in a municipal court, the county receives $20,
and the municipality will receive $37. The following linked document describes the fees and distribution of
the revenue: Court fees imposed in civil, probate, and small claims cases.
Penalty Provision: If additional court actions occur and a guilty verdict is entered, more revenue will be
collected by certain local units. If the case is filed in a court of record, the county general fund will receive
$47.40 for a misdemeanor and $33.90 for an infraction and qualifying municipalities will receive a share of
$3.60 for a misdemeanor and $2.10 for an infraction. If the case is filed in a municipal court, the county
receives $30 for a misdemeanor and $20 for an infraction, and the municipality will receive $46 for a
misdemeanor and $33.50 for an infraction. The following linked document describes the fees and distribution
of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
State Agencies Affected: Department of Financial Institutions.
Local Agencies Affected: Trial courts, city and town courts, local law enforcement agencies.
Information Sources: Peoplesoft Financial Data. Legislative Services Agency. Indiana Handbook of Taxes,
Revenues, and Appropriations, FY 2023. Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
HB 1125 3