Indiana 2025 Regular Session

Indiana House Bill HB1125 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	EH1125.1
2		-	April 11, 2025
3		-	ENGROSSED
	1	+	HB1125.1
	2	+	February 4, 2025
4	3		HOUSE BILL No. 1125
5	4		_____
6		-	DIGEST OF HB 1125 (Updated ~~April 9~~, 2025 9:~~55 am~~ - DI 154)
	5	+	DIGEST OF HB 1125 (Updated February 4, 2025 12:52 pm - DI 154)
7	6		Citations Affected: IC 4-21.5; IC 28-1; IC 28-8; IC 28-11; IC 35-52.
8	7		Synopsis: Earned wage access services. Establishes within the Indiana
9	8		Code a new chapter, to be known as the Indiana Earned Wage Access
10	9		Act (Act), governing the offering and provision of earned wage access
11	10		services to Indiana consumers. Provides that the Act is to be
12	11		administered by the division of consumer credit within the department
13	12		of financial institutions (department). Sets forth provisions that address
14	13		the following: (1) Definitions of terms. (2) Exemptions from the Act's
15	14		requirements. (3) The department's supervisory authority under the Act.
16	15		(4) The licensing of providers of earned wage access services
17	16		(providers). (5) The acquisition of control of a licensee. (6) Reporting
18	17		and record keeping requirements for licensees. (7) Duties of providers
19	18		under the Act. (8) Prohibited acts by providers. (9) The department's
20	19		enforcement authority under the Act. (10) Criminal liability for certain
21	20		prohibited acts. (11) Statutory construction of the Act's provisions.
22	21		Makes conforming changes to sections of the Indiana Code codified
23	22		outside the Act.
24		-	Effective: ~~January~~ 1, ~~2026~~.
	23	+	Effective: July 1, 2025.
25	24		Teshka, Lehman, Miller K
26		-	(SENATE SPONSORS — WALKER K, BALDWIN, RANDOLPH LONNIE M)
27	25		January 8, 2025, read first time and referred to Committee on Financial Institutions.
28	26		February 4, 2025, amended, reported — Do Pass.
29		-	February 6, 2025, read second time, ordered engrossed.
30		-	February 7, 2025, engrossed.
31		-	February 10, 2025, read third time, passed. Yeas 70, nays 18.
32		-	SENATE ACTION
33		-	February 20, 2025, read first time and referred to Committee on Insurance and Financial
34		-	Institutions.
35		-	April 10, 2025, amended, reported favorably — Do Pass.
36		-	EH 1125—LS 6811/DI 101 April 11, 2025
	27	+	HB 1125—LS 6811/DI 101 February 4, 2025
37	28		First Regular Session of the 124th General Assembly (2025)
38	29		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
39	30		Constitution) is being amended, the text of the existing provision will appear in this style type,
40	31		additions will appear in this style type, and deletions will appear in this style type.
41	32		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
42	33		provision adopted), the text of the new provision will appear in this style type. Also, the
43	34		word NEW will appear in that style type in the introductory clause of each SECTION that adds
44	35		a new provision to the Indiana Code or the Indiana Constitution.
45	36		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
46	37		between statutes enacted by the 2024 Regular Session of the General Assembly.
47		-	ENGROSSED
48	38		HOUSE BILL No. 1125
49	39		A BILL FOR AN ACT to amend the Indiana Code concerning
50	40		financial institutions.
51	41		Be it enacted by the General Assembly of the State of Indiana:
52	42		1 SECTION 1. IC 4-21.5-3-6, AS AMENDED BY P.L.241-2023,
53	43		2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
54		-	3 ~~JANUARY~~ 1, ~~2026~~]: Sec. 6. (a) Notice shall be given under this
55		-	4 ~~section~~ concerning the following:
	44	+	3 JULY 1, 2025]: Sec. 6. (a) Notice shall be given under this section
	45	+	4 concerning the following:
56	46		5 (1) A safety order under IC 22-8-1.1.
57	47		6 (2) Any order that:
58	48		7 (A) imposes a sanction on a person or terminates a legal right,
59	49		8 duty, privilege, immunity, or other legal interest of a person;
60	50		9 (B) is not described in section 4 or 5 of this chapter or
61	51		10 IC 4-21.5-4; and
62	52		11 (C) by statute becomes effective without a proceeding under
63	53		12 this chapter if there is no request for a review of the order
64	54		13 within a specified period after the order is issued or served.
65	55		14 (3) A notice of program reimbursement or equivalent
66	56		15 determination or other notice regarding a hospital's
67	57		16 reimbursement issued by the office of Medicaid policy and
68	58		17 planning or by a contractor of the office of Medicaid policy and
69		-	EH 1125—LS 6811/DI 101 2
	59	+	HB 1125—LS 6811/DI 101 2
70	60		1 planning regarding a hospital's year end cost settlement.
71	61		2 (4) A determination of audit findings or an equivalent
72	62		3 determination by the office of Medicaid policy and planning or by
73	63		4 a contractor of the office of Medicaid policy and planning arising
74	64		5 from a Medicaid postpayment or concurrent audit of a hospital's
75	65		6 Medicaid claims.
76	66		7 (5) A license suspension or revocation under:
77	67		8 (A) IC 24-4.4-2;
78	68		9 (B) IC 24-4.5-3;
79	69		10 (C) IC 28-1-29;
80	70		11 (D) IC 28-7-5;
81	71		12 (E) IC 28-8-4.1; or
82	72		13 (F) IC 28-8-5; or
83	73		14 (G) IC 28-8-6.
84	74		15 (6) An order issued by the secretary or the secretary's designee
85	75		16 against providers regulated by the division of aging or the bureau
86	76		17 of disabilities services and not licensed by the Indiana department
87	77		18 of health under IC 16-27 or IC 16-28.
88	78		19 (b) When an agency issues an order described by subsection (a), the
89	79		20 agency shall give notice to the following persons:
90	80		21 (1) Each person to whom the order is specifically directed.
91	81		22 (2) Each person to whom a law requires notice to be given.
92	82		23 A person who is entitled to notice under this subsection is not a party
93	83		24 to any proceeding resulting from the grant of a petition for review
94	84		25 under section 7 of this chapter unless the person is designated as a
95	85		26 party in the record of the proceeding.
96	86		27 (c) The notice must include the following:
97	87		28 (1) A brief description of the order.
98	88		29 (2) A brief explanation of the available procedures and the time
99	89		30 limit for seeking administrative review of the order under section
100	90		31 7 of this chapter.
101	91		32 (3) Any other information required by law.
102	92		33 (d) An order described in subsection (a) is effective fifteen (15) days
103	93		34 after the order is served, unless a statute other than this article specifies
104	94		35 a different date or the agency specifies a later date in its order. This
105	95		36 subsection does not preclude an agency from issuing, under
106	96		37 IC 4-21.5-4, an emergency or other temporary order concerning the
107	97		38 subject of an order described in subsection (a).
108	98		39 (e) If a petition for review of an order described in subsection (a) is
109	99		40 filed within the period set by section 7 of this chapter and a petition for
110	100		41 stay of effectiveness of the order is filed by a party or another person
111	101		42 who has a pending petition for intervention in the proceeding, an
112		-	EH 1125—LS 6811/DI 101 3
	102	+	HB 1125—LS 6811/DI 101 3
113	103		1 administrative law judge shall, as soon as practicable, conduct a
114	104		2 preliminary hearing to determine whether the order should be stayed in
115	105		3 whole or in part. The burden of proof in the preliminary hearing is on
116	106		4 the person seeking the stay. The administrative law judge may stay the
117	107		5 order in whole or in part. The order concerning the stay may be issued
118	108		6 after an order described in subsection (a) becomes effective. The
119	109		7 resulting order concerning the stay shall be served on the parties and
120	110		8 any person who has a pending petition for intervention in the
121	111		9 proceeding. It must include a statement of the facts and law on which
122	112		10 it is based.
123	113		11 SECTION 2. IC 28-1-2-30, AS AMENDED BY P.L.198-2023,
124	114		12 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
125		-	13 ~~JANUARY~~ 1, ~~2026~~]: Sec. 30. (a) As used in this section, "financial
	115	+	13 JULY 1, 2025]: Sec. 30. (a) As used in this section, "financial
126	116		14 institution" means any bank, trust company, corporate fiduciary,
127	117		15 savings association, credit union, savings bank, bank of discount and
128	118		16 deposit, or industrial loan and investment company organized or
129	119		17 reorganized under the laws of this state, and includes licensees and
130	120		18 registrants under IC 24-4.4, IC 24-4.5, IC 24-7, IC 24-12, IC 28-1-29,
131	121		19 IC 28-7-5, IC 28-8-4.1, IC 28-8-5, IC 28-8-6, and 750 IAC 9.
132	122		20 (b) Except as otherwise provided, a member of the department or
133	123		21 the director or deputy, assistant, or any other person having access to
134	124		22 any such information may not disclose to any person, other than
135	125		23 officially to the department, by the report made to it, or to the board of
136	126		24 directors, partners, or owners, or in compliance with the order of a
137	127		25 court, the names of the depositors or shareholders in any financial
138	128		26 institution, or the amount of money on deposit in any financial
139	129		27 institution at any time in favor of any depositor, or any other
140	130		28 information concerning the affairs of any such financial institution.
141	131		29 SECTION 3. IC 28-8-6 IS ADDED TO THE INDIANA CODE AS
142		-	30 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
143		-	31 ~~JANUARY~~ 1, ~~2026~~]:
	132	+	30 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
	133	+	31 1, 2025]:
144	134		32 Chapter 6. Indiana Earned Wage Access Act
145	135		33 Sec. 101. This chapter shall be known as and may be cited as the
146	136		34 Indiana Earned Wage Access Act.
147	137		35 Sec. 201. The following definitions apply throughout this
148	138		36 chapter:
149	139		37 (1) "Consumer" means an individual who:
150	140		38 (A) resides in Indiana, as may be determined by a provider
151	141		39 on the basis of the:
152	142		40 (i) mailing address; or
153	143		41 (ii) state of residence;
154	144		42 provided by the individual; or
155		-	EH 1125—LS 6811/DI 101 4
	145	+	HB 1125—LS 6811/DI 101 4
156	146		1 (B) requests proceeds in Indiana, as may be determined by
157	147		2 a provider by using any legal, readily available commercial
158	148		3 means to determine the location from which the individual
159	149		4 requests proceeds.
160	150		5 (2) "Consumer directed wage access services" means the
161	151		6 business by a provider of delivering to a consumer access to
162	152		7 earned but unpaid income based on:
163	153		8 (A) the consumer's representations of; and
164	154		9 (B) the provider's reasonable determination of;
165	155		10 the consumer's earned but unpaid income.
166	156		11 (3) "Control" means any of the following:
167	157		12 (A) The power to vote, directly or indirectly, at least
168	158		13 twenty-five percent (25%) of the outstanding voting shares
169	159		14 or voting interests of a licensee or of a person in control of
170	160		15 a licensee.
171	161		16 (B) The power to elect or appoint a majority of key
172	162		17 individuals or executive officers, managers, directors,
173	163		18 trustees, or other persons exercising managerial authority
174	164		19 of a person in control of a licensee.
175	165		20 (C) The power to exercise, directly or indirectly, a
176	166		21 controlling influence over the management or policies of a
177	167		22 licensee or of a person in control of a licensee. For
178	168		23 purposes of this clause, a person is presumed to exercise a
179	169		24 controlling influence if the person holds the power to vote,
180	170		25 directly or indirectly, at least ten percent (10%) of the
181	171		26 outstanding voting shares or voting interests of a licensee
182	172		27 or of a person in control of a licensee, subject to the
183	173		28 person's right to rebut the presumption if the person is a
184	174		29 passive investor.
185	175		30 For purposes of this subdivision, the percentage of a person
186	176		31 controlled by any other person is determined by aggregating
187	177		32 the other person's interest with the interest of any other
188	178		33 immediate family member of that person, including the
189	179		34 person's spouse, parents, children, siblings, mothers-in-law
190	180		35 and fathers-in-law, sons-in-law and daughters-in-law, and any
191	181		36 other person who shares the person's home.
192	182		37 (4) "Department" refers to the members of the department of
193	183		38 financial institutions.
194	184		39 (5) "Director" refers to the director of the department
195	185		40 appointed under IC 28-11-2-1.
196	186		41 (6) "Earned but unpaid income", with respect to a consumer,
197	187		42 means salary, wages, compensation, or other income that:
198		-	EH 1125—LS 6811/DI 101 5
	188	+	HB 1125—LS 6811/DI 101 5
199	189		1 (A) the consumer represents, and a provider reasonably
200	190		2 determines, has been earned by, or has accrued to the
201	191		3 benefit of, the consumer in exchange for the consumer's
202	192		4 provision of services to an employer or on behalf of an
203	193		5 employer, including the provision of services by the
204	194		6 consumer:
205	195		7 (i) on an hourly, project based, piecework, or other
206	196		8 basis; and
207	197		9 (ii) regardless of whether the consumer is an employee of
208	198		10 the employer or acts as an independent contractor with
209	199		11 respect to the employer; but
210	200		12 (B) has not, at the time of payment of proceeds to the
211	201		13 consumer by the provider, been paid to the consumer by
212	202		14 the employer.
213	203		15 (7) "Earned wage access services" includes the following:
214	204		16 (A) Consumer directed wage access services.
215	205		17 (B) Employer integrated wage access services.
216	206		18 The term does not include a small loan.
217	207		19 (8) "Employer" means a person that employs a consumer or
218	208		20 that is contractually obligated to pay a consumer earned but
219	209		21 unpaid income. The term does not include:
220	210		22 (A) a customer of the person; or
221	211		23 (B) any other person whose obligation to make a payment
222	212		24 of salary, wages, compensation, or other income to a
223	213		25 consumer is not based on the provision of services by the
224	214		26 consumer for or on behalf of that person.
225	215		27 (9) "Employer integrated wage access services" means the
226	216		28 business by a provider of delivering to a consumer access to
227	217		29 earned but unpaid income on the basis of:
228	218		30 (A) employment;
229	219		31 (B) income; or
230	220		32 (C) attendance;
231	221		33 data obtained directly or indirectly from an employer.
232	222		34 (10) "Federally insured depository financial institution"
233	223		35 means:
234	224		36 (A) a bank;
235	225		37 (B) a credit union;
236	226		38 (C) a savings and loan association;
237	227		39 (D) a trust company;
238	228		40 (E) a corporate fiduciary;
239	229		41 (F) a savings association;
240	230		42 (G) a savings bank;
241		-	EH 1125—LS 6811/DI 101 6
	231	+	HB 1125—LS 6811/DI 101 6
242	232		1 (H) an industrial bank; or
243	233		2 (I) an industrial loan company;
244	234		3 that is organized under the law of the United States or any
245	235		4 state of the United States and that has federally or privately
246	236		5 insured deposits as permitted by state or federal law.
247	237		6 (11) "Fee" includes the following, however denominated:
248	238		7 (A) An amount charged by a provider for:
249	239		8 (i) expedited delivery; or
250	240		9 (ii) other delivery;
251	241		10 of proceeds to a consumer.
252	242		11 (B) A subscription or membership fee imposed by a
253	243		12 provider for a bona fide group of services that include
254	244		13 earned wage access services.
255	245		14 (C) An amount that:
256	246		15 (i) is paid by an employer to a provider on a consumer's
257	247		16 behalf; and
258	248		17 (ii) entitles the consumer to receive proceeds at reduced
259	249		18 or no cost to the consumer.
260	250		19 The term does not include a voluntary tip, gratuity, or
261	251		20 donation paid to a provider.
262	252		21 (12) "Individual" means a natural person.
263	253		22 (13) "Key individual" means an individual ultimately
264	254		23 responsible for establishing or directing policies and
265	255		24 procedures of a licensee, such as an executive officer,
266	256		25 manager, director, or trustee.
267	257		26 (14) "Licensee" means a person licensed under this chapter.
268	258		27 (15) "NMLSR" means the Nationwide Multistate Licensing
269	259		28 System and Registry:
270	260		29 (A) developed by the Conference of State Bank Supervisors
271	261		30 and the American Association of Residential Mortgage
272	262		31 Regulators; and
273	263		32 (B) owned and operated by the State Regulatory Registry,
274	264		33 LLC, or by any successor or affiliated entity;
275	265		34 for the licensing and registry of persons in financial services
276	266		35 industries.
277	267		36 (16) "Outstanding proceeds" means proceeds that:
278	268		37 (A) have been paid to a consumer by a provider; and
279	269		38 (B) have not yet been repaid to the provider.
280	270		39 (17) "Passive investor" means a person that:
281	271		40 (A) does not have the power to elect a majority of key
282	272		41 individuals or executive officers, managers, directors,
283	273		42 trustees, or other persons exercising managerial authority
284		-	EH 1125—LS 6811/DI 101 7
	274	+	HB 1125—LS 6811/DI 101 7
285	275		1 over a person in control of a licensee;
286	276		2 (B) is not employed by and does not have any managerial
287	277		3 duties with respect to the licensee or a person in control of
288	278		4 the licensee;
289	279		5 (C) does not have the power to exercise, directly or
290	280		6 indirectly, a controlling influence over the management or
291	281		7 policies of the licensee or a person in control of the
292	282		8 licensee; and
293	283		9 (D) either:
294	284		10 (i) attests to as facts the characteristics of passivity set
295	285		11 forth in clauses (A) through (C), in a form and by a
296	286		12 medium prescribed by the director; or
297	287		13 (ii) commits to the characteristics of passivity set forth in
298	288		14 clauses (A) through (C) in a written document.
299	289		15 (18) "Person" means any individual, general partnership,
300	290		16 limited partnership, limited liability company, corporation,
301	291		17 trust, association, joint stock corporation, or other corporate
302	292		18 entity, as so identified by the director.
303	293		19 (19) "Proceeds" means a payment that:
304	294		20 (A) is made to a consumer by a provider; and
305	295		21 (B) is based on earned but unpaid income.
306	296		22 (20) "Provider" means a person in the business of offering
307	297		23 and providing earned wage access services to consumers. The
308	298		24 term does not include the following:
309		-	25 (A) A service provider that is not contractually obligated
310		-	26 to fund proceeds delivered as part of the earned wage
311		-	27 access services, such as a payroll service provider that
312		-	28 verifies a consumer's available earnings.
313		-	29 (B) An employer that offers a portion of salary, wages,
314		-	30 compensation, or other income directly to its employees or
315		-	31 independent contractors before the normally scheduled
316		-	32 pay date.
317		-	33 (C) An entity that offers or provides earned wage access
318		-	34 services and reports a consumer's payment or nonpayment
319		-	35 of either outstanding proceeds of the earned wage access
320		-	36 services or fees, voluntary tips, gratuities, or other
321		-	37 donations in connection with the earned wage access
322		-	38 services to a consumer reporting agency (as defined in the
323		-	39 Federal Fair Credit Reporting Act (15 U.S.C. 1681 et
324		-	40 seq.)).
325		-	41 (21) "Small loan" has the meaning set forth in
326		-	42 IC 24-4.5-7-104.
327		-	EH 1125—LS 6811/DI 101 8
328		-	1 Sec. 301. This chapter does not apply to the following:
329		-	2 (1) A federally insured depository financial institution, which
330		-	3 may provide earned wage access services in Indiana without
331		-	4 obtaining a license under this chapter.
332		-	5 (2) An individual employed by:
333		-	6 (A) a licensee; or
334		-	7 (B) a person exempt from the licensing requirements of
335		-	8 this chapter;
336		-	9 when acting within the scope of employment and under the
337		-	10 supervision of the licensee or exempt person as an employee
338		-	11 and not as an independent contractor.
339		-	12 (3) An employer that offers a portion of salary, wages,
340		-	13 compensation, or other income directly to its employees or
341		-	14 independent contractors before the normally scheduled pay
342		-	15 date.
343		-	16 Sec. 302. The director may require any person claiming to be
344		-	17 exempt from licensing under section 301 of this chapter to provide
345		-	18 information and documentation to the director demonstrating that
346		-	19 the person qualifies for the claimed exemption.
347		-	20 Sec. 401. (a) To administer and enforce this chapter, the
348		-	21 director may, subject to section 402 of this chapter, do any of the
349		-	22 following:
350		-	23 (1) Enter into agreements or relationships with other
351		-	24 government officials or federal and state regulatory agencies
352		-	25 and regulatory associations in order to improve efficiencies
353		-	26 and reduce regulatory burden by:
354		-	27 (A) standardizing methods or procedures; and
355		-	28 (B) sharing resources, records, or related information
356		-	29 obtained under this chapter.
357		-	30 (2) Use, contract for, or employ analytical systems, methods,
358		-	31 or software to examine or investigate any person subject to
359		-	32 this chapter.
360		-	33 (3) Accept, from other state or federal government agencies
361		-	34 or officials, licensing, examination, or investigation reports
362		-	35 made by those other state or federal government agencies or
363		-	36 officials.
364		-	37 (4) Accept audit reports made by an independent certified
365		-	38 public accountant or another qualified third party auditor for
366		-	39 an applicant or licensee and incorporate the audit report in
367		-	40 any report of examination or investigation.
368		-	41 (b) The department has broad administrative authority to:
369		-	42 (1) administer, interpret, and enforce this chapter;
370		-	EH 1125—LS 6811/DI 101 9
371		-	1 (2) promulgate rules implementing this chapter; and
372		-	2 (3) recover the cost of administering and enforcing this
373		-	3 chapter by imposing and collecting proportionate and
374		-	4 equitable fees and costs associated with applications,
375		-	5 examinations, investigations, and other actions required to
376		-	6 administer and enforce this chapter.
377		-	7 Sec. 402. (a) Except as otherwise provided in this section, the
378		-	8 following are confidential:
379		-	9 (1) All information or reports obtained by the department
380		-	10 from an applicant or licensee.
381		-	11 (2) All information contained in or related to an examination,
382		-	12 investigation, operating report, or condition report prepared
383		-	13 by, on behalf of, or for the use of the department.
384		-	14 (3) Financial statements or balance sheets of an applicant or
385		-	15 licensee.
386		-	16 (b) Subject to the confidentiality provisions contained in
387		-	17 IC 5-14-3 and this section, the director may regularly report
388		-	18 significant or recurring violations of this chapter to the NMLSR.
389		-	19 (c) Subject to the confidentiality provisions contained in
390		-	20 IC 5-14-3 and this section, the director may report complaints
391		-	21 received regarding licensees to the NMLSR.
392		-	22 (d) The director's authority to use the NMLSR under this
393		-	23 chapter is subject to the following:
394		-	24 (1) Information stored in the NMLSR is subject to the
395		-	25 confidentiality provisions of IC 5-14-3 and this section. A
396		-	26 person may not:
397		-	27 (A) obtain information from the NMLSR, unless the
398		-	28 person is authorized to do so by statute;
399		-	29 (B) initiate any civil action based on information obtained
400		-	30 from the NMLSR if the information is not otherwise
401		-	31 available to the person under any other state law; or
402		-	32 (C) initiate any civil action based on information obtained
403		-	33 from the NMLSR if the person could not have initiated the
404		-	34 action based on information otherwise available to the
405		-	35 person under any other state law.
406		-	36 (2) Documents, materials, and other forms of information in
407		-	37 the control or possession of the NMLSR that are confidential
408		-	38 under this section and that are:
409		-	39 (A) furnished by the director, the director's designee, or a
410		-	40 licensee; or
411		-	41 (B) otherwise obtained by the NMLSR;
412		-	42 are confidential and privileged by law and are not subject to
413		-	EH 1125—LS 6811/DI 101 10
414		-	1 inspection under IC 5-14-3, subject to subpoena, subject to
415		-	2 discovery, or admissible in evidence in any civil action.
416		-	3 However, the director may use the documents, materials, or
417		-	4 other information available to the director in furtherance of
418		-	5 any action brought in connection with the director's duties
419		-	6 under this chapter.
420		-	7 (3) Disclosure of documents, materials, and information:
421		-	8 (A) to the director; or
422		-	9 (B) by the director;
423		-	10 under this subsection does not result in a waiver of any
424		-	11 applicable privilege or claim of confidentiality with respect to
425		-	12 the documents, materials, or information.
426		-	13 (4) Information provided to the NMLSR is subject to
427		-	14 IC 4-1-11.
428		-	15 (5) This subsection does not limit or impair a person's right
429		-	16 to:
430		-	17 (A) obtain information;
431		-	18 (B) use information as evidence in a civil action or
432		-	19 proceeding; or
433		-	20 (C) use information to initiate a civil action or proceeding;
434		-	21 if the information may be obtained from the director or the
435		-	22 director's designee under any law.
436		-	23 (6) The requirements under any federal law or IC 5-14-3
437		-	24 regarding the privacy or confidentiality of any information or
438		-	25 material provided to the NMLSR, and any privilege arising
439		-	26 under federal or state law, including the rules of any federal
440		-	27 or state court, with respect to the information or material,
441		-	28 continue to apply to the information or material after the
442		-	29 information or material has been disclosed to the NMLSR.
443		-	30 The information and material may be shared with all state
444		-	31 and federal regulatory officials with financial services
445		-	32 industry oversight authority without the loss of privilege or
446		-	33 the loss of confidentiality protections provided by federal law
447		-	34 or IC 5-14-3.
448		-	35 (7) Information or material that is subject to a privilege or
449		-	36 confidentiality under subdivision (6) is not subject to:
450		-	37 (A) disclosure under any federal or state law governing the
451		-	38 disclosure to the public of information held by an officer or
452		-	39 an agency of the federal government or the respective
453		-	40 state; or
454		-	41 (B) subpoena, discovery, or admission into evidence, in any
455		-	42 private civil action or administrative process, unless with
456		-	EH 1125—LS 6811/DI 101 11
457		-	1 respect to any privileged information or material held by
458		-	2 the NMLSR, the person to whom the information or
459		-	3 material pertains waives, in whole or in part, in the
460		-	4 discretion of the person, that privilege.
461		-	5 (e) Notwithstanding any other provision of law, all information
462		-	6 or reports obtained by the director from an applicant or a licensee,
463		-	7 whether obtained through reports, applications, examination,
464		-	8 audits, investigation, or otherwise, including:
465		-	9 (1) all information contained in or related to:
466		-	10 (A) examination;
467		-	11 (B) investigation;
468		-	12 (C) operation; or
469		-	13 (D) condition;
470		-	14 reports prepared by, on behalf of, or for the use of the
471		-	15 director; or
472		-	16 (2) financial statements or balance sheets of an applicant or
473		-	17 licensee;
474		-	18 are confidential and may not be disclosed or distributed outside the
475		-	19 department by the director or any officer or employee of the
476		-	20 department, except as provided in subsection (b).
477		-	21 (f) The director may provide for the release of information to
478		-	22 representatives of:
479		-	23 (1) financial institution and financial services business
480		-	24 supervisory agencies;
481		-	25 (2) law enforcement agencies; or
482		-	26 (3) prosecutorial agencies or offices;
483		-	27 of a state (as defined in IC 28-2-17-19), the United States, or a
484		-	28 foreign country. An agency or office that receives information
485		-	29 from the director under this subsection shall maintain the
486		-	30 confidentiality of the information as described in IC 28-1-2-30.
487		-	31 (g) This section does not prohibit the director from releasing to
488		-	32 the public a list of persons licensed under this chapter or from
489		-	33 releasing aggregated financial data with respect to such licensees.
490		-	34 Sec. 403. (a) The director may conduct an examination or
491		-	35 investigation of a licensee or otherwise take independent action
492		-	36 authorized by this chapter, or by a rule adopted or order issued
493		-	37 under this chapter, as reasonably necessary or appropriate to
494		-	38 administer and enforce this chapter and rules implementing this
495		-	39 chapter. The director may:
496		-	40 (1) conduct an examination either onsite or offsite as the
497		-	41 director may reasonably require;
498		-	42 (2) conduct an examination in conjunction with an
499		-	EH 1125—LS 6811/DI 101 12
500		-	1 examination conducted by other state agencies or agencies of
501		-	2 another state or of the federal government;
502		-	3 (3) accept the examination report of another state agency or
503		-	4 an agency of another state or of the federal government, or a
504		-	5 report prepared by an independent accounting firm, with any
505		-	6 such report considered, upon being accepted and for all
506		-	7 purposes, as an official report of the director; and
507		-	8 (4) summon and examine under oath a key individual or
508		-	9 employee of a licensee or authorized delegate and require the
509		-	10 person to produce records regarding any matter related to the
510		-	11 condition and business of the licensee.
511		-	12 (b) A licensee shall provide, and the director shall have full and
512		-	13 complete access to, all records the director may reasonably require
513		-	14 to conduct a complete examination. The records must be provided
514		-	15 at the location and in the format specified by the director. The
515		-	16 director may use multistate record production standards and
516		-	17 examination procedures when those standards will reasonably
517		-	18 achieve the purposes of this subsection.
518		-	19 (c) Unless otherwise directed by the director, a licensee shall pay
519		-	20 all costs reasonably incurred in connection with an examination of
520		-	21 the licensee.
521		-	22 (d) The director shall determine the sufficiency of the licensee's
522		-	23 records and whether the licensee has made the required
523		-	24 information reasonably available.
524		-	25 (e) To discover violations of this chapter, the director may
525		-	26 investigate and examine the records of any person the director
526		-	27 believes is operating without a license, when a license is required
527		-	28 under this chapter. The person examined must pay the reasonably
528		-	29 incurred costs of the examination.
529		-	30 Sec. 404. (a) To efficiently and effectively administer and
530		-	31 enforce this chapter and to minimize regulatory burden, the
531		-	32 director may participate in multistate supervisory processes
532		-	33 established between states and coordinated through the Conference
533		-	34 of State Bank Supervisors and any affiliate or successor of that
534		-	35 organization for all licensees that hold licenses in Indiana and
535		-	36 other states. As a participant in multistate supervision, the director
536		-	37 may:
537		-	38 (1) cooperate, coordinate, and share information with other
538		-	39 state and federal regulators in accordance with section 402 of
539		-	40 this chapter;
540		-	41 (2) enter into written cooperation, coordination, or
541		-	42 information sharing contracts or agreements with
542		-	EH 1125—LS 6811/DI 101 13
543		-	1 organizations the membership of which is made up of state or
544		-	2 federal governmental agencies; and
545		-	3 (3) cooperate, coordinate, and share information with
546		-	4 organizations the membership of which is made up of state or
547		-	5 federal governmental agencies, as long as the organizations
548		-	6 agree in writing to maintain the confidentiality and security
549		-	7 of the shared information in accordance with section 402 of
550		-	8 this chapter.
551		-	9 (b) The director may not waive, and nothing in this section
552		-	10 constitutes a waiver of, the director's authority to conduct an
553		-	11 examination or investigation or to otherwise take independent
554		-	12 action authorized by this chapter, or by a rule adopted or order
555		-	13 issued under this chapter, to enforce compliance with applicable
556		-	14 state or federal law.
557		-	15 (c) The performance of a joint examination or investigation, or
558		-	16 acceptance of an examination or investigation report, does not
559		-	17 waive the director's authority to perform an examination
560		-	18 assessment provided for in this chapter.
561		-	19 Sec. 501. (a) A person may not:
562		-	20 (1) engage in the business of offering or providing earned
563		-	21 wage access services; or
564		-	22 (2) advertise, solicit, or hold itself out as offering or providing
565		-	23 earned wage access services;
566		-	24 unless the person is licensed under this chapter.
567		-	25 (b) Subsection (a) does not apply to a person that is exempt
568		-	26 under section 301 of this chapter and does not engage in the
569		-	27 business of offering or providing earned wage access services
570		-	28 outside the scope of the exemption.
571		-	29 (c) A license issued under section 503 of this chapter is not
572		-	30 transferable or assignable without the approval of the department.
573		-	31 Sec. 502. (a) To establish consistent licensing between this state
574		-	32 and other states, the director may:
575		-	33 (1) implement all licensing provisions of this chapter in a
576		-	34 manner that is consistent with other states that have adopted:
577		-	35 (A) a law containing the same provisions of this chapter; or
578		-	36 (B) multistate licensing processes; and
579		-	37 (2) participate in nationwide protocols for licensing
580		-	38 cooperation and coordination among state regulators if those
581		-	39 protocols are consistent with this chapter.
582		-	40 (b) To administer and enforce this chapter, the director may
583		-	41 establish relationships or contracts with the NMLSR or other
584		-	42 entities designated by the NMLSR to enable the director to:
585		-	EH 1125—LS 6811/DI 101 14
586		-	1 (1) collect and maintain records;
587		-	2 (2) coordinate multistate licensing processes and supervision
588		-	3 processes;
589		-	4 (3) process fees; and
590		-	5 (4) facilitate communication between the state and licensees
591		-	6 or other persons subject to this chapter.
592		-	7 (c) The director may use the NMLSR for all aspects of licensing
593		-	8 in accordance with this chapter, including license applications,
594		-	9 applications for acquisitions of control, surety bonds, reporting,
595		-	10 criminal history background checks, credit checks, fee processing,
596		-	11 and examinations.
597		-	12 (d) The director may use NMLSR forms, processes, and
598		-	13 functionalities in accordance with this chapter. If the NMLSR does
599		-	14 not provide functionality, forms, or processes for a provision of this
600		-	15 chapter, the director may implement the requirements in a manner
601		-	16 that facilitates uniformity with respect to licensing, supervision,
602		-	17 reporting, and regulation of licensees that are licensed in multiple
603		-	18 jurisdictions.
604		-	19 (e) For the purpose of participating in the NMLSR, the director
605		-	20 is authorized to waive or modify, in whole or in part, by rule or
606		-	21 order, any or all of the requirements for licensure and to establish
607		-	22 new requirements as reasonably necessary to participate in the
608		-	23 NMLSR.
609		-	24 Sec. 503. (a) The department shall receive and act on all
610		-	25 applications for licenses to offer or provide earned wage access
611		-	26 services. Applications must be made as prescribed by the director.
612		-	27 If, at any time, the information or record contained in:
613		-	28 (1) an application filed under this section; or
614		-	29 (2) a renewal application filed under section 506 of this
615		-	30 chapter;
616		-	31 is or becomes inaccurate or incomplete in a material respect, the
617		-	32 applicant shall promptly file a correcting amendment with the
618		-	33 department.
619		-	34 (b) A license may not be issued unless the department finds that
620		-	35 the professional training and experience, financial responsibility,
621		-	36 character, and fitness of:
622		-	37 (1) the applicant;
623		-	38 (2) each executive officer, director, or manager of the
624		-	39 applicant, or any other individual having a similar status or
625		-	40 performing a similar function for the applicant; and
626		-	41 (3) if known, each person directly or indirectly owning of
627		-	42 record or owning beneficially at least ten percent (10%) of the
628		-	EH 1125—LS 6811/DI 101 15
629		-	1 outstanding shares of any class of equity security of the
630		-	2 applicant;
631		-	3 are such as to warrant belief that the business will be operated
632		-	4 honestly and fairly.
633		-	5 (c) The director is entitled to request evidence of compliance
634		-	6 with this section at:
635		-	7 (1) the time of application;
636		-	8 (2) the time of renewal of a license; or
637		-	9 (3) any other time considered necessary by the director.
638		-	10 (d) Evidence of compliance with this section must include:
639		-	11 (1) criminal background checks, as described in section 504 of
640		-	12 this chapter, including a national criminal history background
641		-	13 check (as defined in IC 10-13-3-12) by the Federal Bureau of
642		-	14 Investigation, for any individual described in subsection (b);
643		-	15 (2) credit histories as described in section 504 of this chapter;
644		-	16 (3) surety bond requirements as described in section 505 of
645		-	17 this chapter;
646		-	18 (4) a review of licensure actions in Indiana and in other states;
647		-	19 and
648		-	20 (5) other background checks considered necessary by the
649		-	21 director.
650		-	22 (e) For purposes of this section and in order to reduce the points
651		-	23 of contact that the director has to maintain under this section, the
652		-	24 director may use the NMLSR as a channeling agent for requesting
653		-	25 and distributing information to and from any source as directed by
654		-	26 the director.
655		-	27 (f) The department may deny an application under this section
656		-	28 if the director of the department determines that the application
657		-	29 was submitted for the benefit of, or on behalf of, a person who does
658		-	30 not qualify for a license.
659		-	31 (g) Upon written request, an applicant is entitled to a hearing,
660		-	32 in the manner provided in IC 4-21.5, on the question of the
661		-	33 qualifications of the applicant for a license.
662		-	34 (h) An applicant shall pay the following fees at the time
663		-	35 designated by the department:
664		-	36 (1) An initial license fee as established by the department
665		-	37 under IC 28-11-3-5, which shall not exceed two thousand five
666		-	38 hundred dollars ($2,500). Until the department establishes an
667		-	39 initial license fee under IC 28-11-3-5, the initial license fee
668		-	40 shall be one thousand five hundred dollars ($1,500).
669		-	41 (2) Examination fees as established by the department under
670		-	42 IC 28-11-3-5, which shall not exceed one hundred dollars
671		-	EH 1125—LS 6811/DI 101 16
672		-	1 ($100) per hour. Until the department establishes an
673		-	2 examination fee schedule under IC 28-11-3-5 that is
674		-	3 applicable to an applicant under this chapter, the examination
675		-	4 fee schedule shall be the fee schedule applicable to persons
676		-	5 licensed under IC 24-4.5-7.
677		-	6 (3) An annual renewal fee as established by the department
678		-	7 under IC 28-11-3-5, which shall not exceed two thousand five
679		-	8 hundred dollars ($2,500). Until the department establishes an
680		-	9 annual renewal fee under IC 28-11-3-5, the annual renewal
681		-	10 fee shall be one thousand five hundred dollars ($1,500).
682		-	11 (i) A fee as established by the department under IC 28-11-3-5
683		-	12 may be charged for each day a fee under subsection (h)(2) or (h)(3)
684		-	13 is delinquent. The fee described in this subsection shall not exceed
685		-	14 fifty dollars ($50) per day.
686		-	15 (j) Except in a transaction approved under section 601 of this
687		-	16 chapter, a license issued under this section is not assignable or
688		-	17 transferable.
689		-	18 (k) If the department of state revenue notifies the department
690		-	19 that a person is on the most recent tax warrant list, the department
691		-	20 shall not issue or renew the person's license until:
692		-	21 (1) the person provides to the department a statement from
693		-	22 the department of state revenue that the person's tax warrant
694		-	23 has been satisfied; or
695		-	24 (2) the department receives a notice from the commissioner of
696		-	25 the department of state revenue under IC 6-8.1-8-2(k).
697		-	26 Sec. 504. (a) An individual in control of a licensee or an
698		-	27 applicant, an individual who seeks to acquire control of a licensee,
699		-	28 and each key individual with respect to a licensee or an applicant
700		-	29 shall furnish to the department through the NMLSR the following
701		-	30 items:
702		-	31 (1) The individual's fingerprints for submission to the Federal
703		-	32 Bureau of Investigation and the department for purposes of
704		-	33 a national criminal history background check.
705		-	34 (2) Personal history and experience, in a form and by a
706		-	35 medium prescribed by the director, including the following:
707		-	36 (A) An independent credit report from a consumer
708		-	37 reporting agency unless the individual does not have a
709		-	38 Social Security number, in which case a credit report is not
710		-	39 required.
711		-	40 (B) Information related to any criminal convictions with
712		-	41 respect to, or pending charges against, the individual.
713		-	42 (C) Information related to any:
714		-	EH 1125—LS 6811/DI 101 17
715		-	1 (i) regulatory or administrative action; or
716		-	2 (ii) civil litigation;
717		-	3 involving claims of fraud, misrepresentation, conversion,
718		-	4 mismanagement of funds, breach of fiduciary duty, or
719		-	5 breach of contract.
720		-	6 (b) The director may:
721		-	7 (1) waive one (1) or more requirements set forth in subsection
722		-	8 (a); or
723		-	9 (2) permit an applicant to submit other information instead of
724		-	10 meeting one (1) or more of the requirements set forth in
725		-	11 subsection (a).
726		-	12 Sec. 505. (a) An applicant for an earned wage access services
727		-	13 license must provide, and a licensee at all times must maintain,
728		-	14 security consisting of a surety bond in a form satisfactory to the
729		-	15 director.
730		-	16 (b) Subject to subsections (c) and (d), the amount of the required
731		-	17 security under this section is the greater of:
732		-	18 (1) one hundred thousand dollars ($100,000); or
733		-	19 (2) an amount equal to the licensee's average daily provision
734		-	20 of proceeds to Indiana consumers, as calculated for the most
735		-	21 recently completed calendar quarter, up to a maximum of two
736		-	22 hundred fifty thousand dollars ($250,000).
737		-	23 (c) A licensee that maintains a bond in the maximum amount of
738		-	24 two hundred fifty thousand dollars ($250,000) set forth in
739		-	25 subsection (b)(2) is not required to calculate the licensee's average
740		-	26 daily provision of proceeds to Indiana consumers for purposes of
741		-	27 this section.
742		-	28 (d) A licensee may exceed the maximum required bond amount
743		-	29 of two hundred fifty thousand dollars ($250,000) set forth in
744		-	30 subsection (b)(2).
745		-	31 Sec. 506. (a) A license under this chapter shall be renewed
746		-	32 annually as follows:
747		-	33 (1) An annual renewal fee, as set by the department, shall be
748		-	34 paid not later than December 31 of each year.
749		-	35 (2) The renewal term is for a period of one (1) year and:
750		-	36 (A) begins on January 1 of each year after the initial
751		-	37 license term; and
752		-	38 (B) expires on December 31 of the year the renewal term
753		-	39 begins.
754		-	40 (b) A licensee shall submit a renewal report with the renewal
755		-	41 fee, in a form and by a medium prescribed by the director. The
756		-	42 renewal report must state or contain a description of each material
757		-	EH 1125—LS 6811/DI 101 18
758		-	1 change in the information submitted by the licensee in its original
759		-	2 license application, if such change has not been previously reported
760		-	3 to the department.
761		-	4 (c) The director may grant an extension of the renewal date for
762		-	5 good cause.
763		-	6 (d) The director may use the NMLSR to process license
764		-	7 renewals, as long as the functionality of the NMLSR for such
765		-	8 purpose is consistent with this section.
766		-	9 Sec. 507. (a) If a licensee does not continue to meet the
767		-	10 qualifications or satisfy the requirements that apply to an applicant
768		-	11 for a new earned wage access services license, the department may
769		-	12 suspend or revoke the licensee's license in accordance with the
770		-	13 procedures established by this chapter or other applicable state
771		-	14 law for such suspension or revocation.
772		-	15 (b) An applicant for an earned wage access services license must
773		-	16 demonstrate that it meets or will meet, and an earned wage access
774		-	17 services licensee must at all times meet, the requirements set forth
775		-	18 in section 505 of this chapter.
776		-	19 Sec. 601. (a) Any person, or group of persons acting in concert,
777		-	20 seeking to acquire control of a licensee shall obtain the written
778		-	21 approval of the department before acquiring control. An
779		-	22 individual:
780		-	23 (1) is not considered to acquire control of a licensee; and
781		-	24 (2) is not subject to the acquisition of control provisions set
782		-	25 forth in this chapter;
783		-	26 when that individual becomes a key individual in the ordinary
784		-	27 course of business.
785		-	28 (b) A person, or group of persons acting in concert, seeking to
786		-	29 acquire control of a licensee shall, in cooperation with the licensee,
787		-	30 submit:
788		-	31 (1) an application in a form and by a medium prescribed by
789		-	32 the director; and
790		-	33 (2) a nonrefundable fee, as determined by the department,
791		-	34 with the request for approval. The nonrefundable fee
792		-	35 established under this subdivision shall not exceed two
793		-	36 thousand five hundred dollars ($2,500). Until the department
794		-	37 establishes the nonrefundable fee under IC 28-11-3-5, the
795		-	38 nonrefundable fee shall be one thousand five hundred dollars
796		-	39 ($1,500).
797		-	40 (c) Upon request, the director may permit a licensee or the:
798		-	41 (1) person; or
799		-	42 (2) group of persons acting in concert;
800		-	EH 1125—LS 6811/DI 101 19
801		-	1 seeking to acquire control of the licensee, to submit some or all
802		-	2 information required in an application under subsection (b)(1)
803		-	3 without using the NMLSR.
804		-	4 (d) The application required under subsection (b)(1) must
805		-	5 include information required by section 504 of this chapter for any
806		-	6 new key individuals that have not previously completed the
807		-	7 requirements of section 504 of this chapter for a licensee.
808		-	8 (e) Subject to subsection (f), when an application for acquisition
809		-	9 of control appears to include all the items, and to address all the
810		-	10 matters, that are required for an application for change in control,
811		-	11 as determined by the director, the application is considered
812		-	12 complete, and the director shall promptly notify the applicant, in
813		-	13 a record, of the date on which the application is determined to be
814		-	14 complete, and:
815		-	15 (1) the department shall approve or deny the application not
816		-	16 later than sixty (60) days after the completion date, as
817		-	17 determined in accordance with this subsection; or
818		-	18 (2) if the application is not approved or denied not later than
819		-	19 sixty (60) days after the completion date:
820		-	20 (A) the application is considered approved; and
821		-	21 (B) the person, or group of persons acting in concert,
822		-	22 seeking to acquire control of the licensee is not prohibited
823		-	23 from acquiring control.
824		-	24 However, the director may for good cause extend the sixty (60) day
825		-	25 period described in this subsection.
826		-	26 (f) A determination by the director that an application is
827		-	27 complete and is accepted for processing means only that the
828		-	28 application, on its face, appears to:
829		-	29 (1) include all of the items; and
830		-	30 (2) address all of the matters;
831		-	31 that are required for an application for acquisition of control
832		-	32 under this chapter, and is not an assessment of the substance of the
833		-	33 application or of the sufficiency of the information provided.
834		-	34 (g) When an application is filed and considered complete under
835		-	35 subsection (e), the director shall investigate the financial condition
836		-	36 and responsibility, financial and business experience, character,
837		-	37 and general fitness of the person, or group of persons acting in
838		-	38 concert, seeking to acquire control. The department shall approve
839		-	39 an acquisition of control under this section if the department finds
840		-	40 that all of the following conditions have been met:
841		-	41 (1) The requirements set forth in subsections (b) and (d) have
842		-	42 been met, as applicable.
843		-	EH 1125—LS 6811/DI 101 20
844		-	1 (2) Both the:
845		-	2 (A) financial condition and responsibility, financial and
846		-	3 business experience, competence, character, and general
847		-	4 fitness of the person, or group of persons acting in concert,
848		-	5 seeking to acquire control; and
849		-	6 (B) competence, experience, character, and general fitness
850		-	7 of the key individuals and persons that would be in control
851		-	8 of the licensee after the acquisition of control;
852		-	9 indicate that it is in the interest of the public to permit the
853		-	10 person, or group of persons acting in concert, to control the
854		-	11 licensee.
855		-	12 (h) If an applicant avails itself of, or is otherwise subject to, a
856		-	13 multistate licensing process:
857		-	14 (1) the director may accept the investigation results of a lead
858		-	15 investigative state for the purpose of subsection (g) if the lead
859		-	16 investigative state has sufficient staffing, expertise, and
860		-	17 minimum standards; or
861		-	18 (2) if Indiana is a lead investigative state, the director may
862		-	19 investigate the applicant pursuant to subsection (g) and to the
863		-	20 time frames established by agreement through the multistate
864		-	21 licensing process.
865		-	22 (i) The department shall issue a formal written notice of the
866		-	23 denial of an application to acquire control not later than thirty (30)
867		-	24 days after the decision to deny the application. The department
868		-	25 shall set forth in the notice of denial the specific reasons for the
869		-	26 denial of the application. An applicant whose application is denied
870		-	27 by the department under this subsection may appeal the denial to
871		-	28 the department for an administrative review under IC 4-21.5-3.
872		-	29 (j) The requirements of subsections (a) and (b) do not apply to
873		-	30 any of the following:
874		-	31 (1) A person that acts as a proxy for the sole purpose of voting
875		-	32 at a designated meeting of the:
876		-	33 (A) shareholders;
877		-	34 (B) holders of voting shares; or
878		-	35 (C) voting interests;
879		-	36 of a licensee or a person in control of a licensee.
880		-	37 (2) A person that acquires control of a licensee as a
881		-	38 conservator or as an officer appointed by a court of
882		-	39 competent jurisdiction or by operation of law.
883		-	40 (3) A person that is exempt under section 301 of this chapter.
884		-	41 (4) A person that the director determines is not subject to
885		-	42 subsection (a) based on the public interest.
886		-	EH 1125—LS 6811/DI 101 21
887		-	1 (5) A public offering of securities of a licensee or of a person
888		-	2 in control of a licensee.
889		-	3 (6) An internal reorganization of a person in control of the
890		-	4 licensee if the ultimate person in control of the licensee
891		-	5 remains the same.
892		-	6 (k) A person described in subsection (j)(2), (j)(3), (j)(5), or (j)(6),
893		-	7 in cooperation with the licensee, shall notify the director not later
894		-	8 than fifteen (15) days after the acquisition of control.
895		-	9 (l) The requirements of subsections (a) and (b) do not apply to
896		-	10 a person that has complied with, and received approval to engage
897		-	11 in, the business of offering or providing earned wage access
898		-	12 services under this chapter, or that was identified as a person in
899		-	13 control in a prior application filed with and approved by the
900		-	14 department, if all of the following apply:
901		-	15 (1) The person has not:
902		-	16 (A) had a license revoked or suspended; or
903		-	17 (B) controlled a licensee that has had a license revoked or
904		-	18 suspended while the person was in control of the licensee;
905		-	19 in the most recent five (5) years.
906		-	20 (2) The licensee to be acquired will not implement any
907		-	21 material changes to its business plan as a result of the
908		-	22 acquisition of control, and if the person acquiring control is a
909		-	23 licensee, the person acquiring control also will not implement
910		-	24 any material changes to its business plan as a licensee as a
911		-	25 result of the acquisition of control.
912		-	26 (3) The person provides notice of the acquisition in
913		-	27 cooperation with the licensee and attests to meeting the
914		-	28 requirements set forth in subdivisions (1) and (2) in a form
915		-	29 and by a medium prescribed by the director.
916		-	30 If the notice described in subdivision (3) is not disapproved within
917		-	31 thirty (30) days after the date on which the notice is determined to
918		-	32 be complete by the director, the notice is considered approved.
919		-	33 (m) Before filing an application for approval to acquire control
920		-	34 of a licensee, a person may request in writing a determination from
921		-	35 the director as to whether the person would be considered a person
922		-	36 in control of a licensee upon consummation of a proposed
923		-	37 transaction. If the director determines that the person would not
924		-	38 be a person in control of a licensee, the proposed person and
925		-	39 transaction is not subject to the requirements of subsections (a)
926		-	40 and (b).
927		-	41 (n) If a multistate licensing process includes a determination
928		-	42 described in subsection (m), and an applicant avails itself of, or is
929		-	EH 1125—LS 6811/DI 101 22
930		-	1 otherwise subject to, the multistate licensing process:
931		-	2 (1) the director may accept the control determination of a lead
932		-	3 investigative state with sufficient staffing, expertise, and
933		-	4 minimum standards for the purpose of subsection (m); or
	299	+	25 (A) A service provider that:
	300	+	26 (i) provides one (1) or more services in connection with
	301	+	27 earned wage access services; but
	302	+	28 (ii) is not contractually obligated to fund proceeds
	303	+	29 delivered as part of the earned wage access services;
	304	+	30 such as a payroll service provider that verifies a
	305	+	31 consumer's available earnings.
	306	+	32 (B) An employer that offers a portion of salary, wages,
	307	+	33 compensation, or other income directly to its employees or
	308	+	34 independent contractors before the normally scheduled
	309	+	35 pay date.
	310	+	36 (21) "Small loan" has the meaning set forth in
	311	+	37 IC 24-4.5-7-104.
	312	+	38 Sec. 301. This chapter does not apply to the following:
	313	+	39 (1) A federally insured depository financial institution.
	314	+	40 (2) An individual employed by:
	315	+	41 (A) a licensee; or
	316	+	42 (B) a person exempt from the licensing requirements of
	317	+	HB 1125—LS 6811/DI 101 8
	318	+	1 this chapter;
	319	+	2 when acting within the scope of employment and under the
	320	+	3 supervision of the licensee or exempt person as an employee
	321	+	4 and not as an independent contractor.
	322	+	5 (3) An employer that offers a portion of salary, wages,
	323	+	6 compensation, or other income directly to its employees or
	324	+	7 independent contractors before the normally scheduled pay
	325	+	8 date.
	326	+	9 Sec. 302. The director may require any person claiming to be
	327	+	10 exempt from licensing under section 301 of this chapter to provide
	328	+	11 information and documentation to the director demonstrating that
	329	+	12 the person qualifies for the claimed exemption.
	330	+	13 Sec. 401. (a) To administer and enforce this chapter, the
	331	+	14 director may, subject to section 402 of this chapter, do any of the
	332	+	15 following:
	333	+	16 (1) Enter into agreements or relationships with other
	334	+	17 government officials or federal and state regulatory agencies
	335	+	18 and regulatory associations in order to improve efficiencies
	336	+	19 and reduce regulatory burden by:
	337	+	20 (A) standardizing methods or procedures; and
	338	+	21 (B) sharing resources, records, or related information
	339	+	22 obtained under this chapter.
	340	+	23 (2) Use, contract for, or employ analytical systems, methods,
	341	+	24 or software to examine or investigate any person subject to
	342	+	25 this chapter.
	343	+	26 (3) Accept, from other state or federal government agencies
	344	+	27 or officials, licensing, examination, or investigation reports
	345	+	28 made by those other state or federal government agencies or
	346	+	29 officials.
	347	+	30 (4) Accept audit reports made by an independent certified
	348	+	31 public accountant or another qualified third party auditor for
	349	+	32 an applicant or licensee and incorporate the audit report in
	350	+	33 any report of examination or investigation.
	351	+	34 (b) The department has broad administrative authority to:
	352	+	35 (1) administer, interpret, and enforce this chapter;
	353	+	36 (2) promulgate rules implementing this chapter; and
	354	+	37 (3) recover the cost of administering and enforcing this
	355	+	38 chapter by imposing and collecting proportionate and
	356	+	39 equitable fees and costs associated with applications,
	357	+	40 examinations, investigations, and other actions required to
	358	+	41 administer and enforce this chapter.
	359	+	42 Sec. 402. (a) Except as otherwise provided in this section, the
	360	+	HB 1125—LS 6811/DI 101 9
	361	+	1 following are confidential:
	362	+	2 (1) All information or reports obtained by the department
	363	+	3 from an applicant or licensee.
	364	+	4 (2) All information contained in or related to an examination,
	365	+	5 investigation, operating report, or condition report prepared
	366	+	6 by, on behalf of, or for the use of the department.
	367	+	7 (3) Financial statements or balance sheets of an applicant or
	368	+	8 licensee.
	369	+	9 (b) Subject to the confidentiality provisions contained in
	370	+	10 IC 5-14-3 and this section, the director may regularly report
	371	+	11 significant or recurring violations of this chapter to the NMLSR.
	372	+	12 (c) Subject to the confidentiality provisions contained in
	373	+	13 IC 5-14-3 and this section, the director may report complaints
	374	+	14 received regarding licensees to the NMLSR.
	375	+	15 (d) The director's authority to use the NMLSR under this
	376	+	16 chapter is subject to the following:
	377	+	17 (1) Information stored in the NMLSR is subject to the
	378	+	18 confidentiality provisions of IC 5-14-3 and this section. A
	379	+	19 person may not:
	380	+	20 (A) obtain information from the NMLSR, unless the
	381	+	21 person is authorized to do so by statute;
	382	+	22 (B) initiate any civil action based on information obtained
	383	+	23 from the NMLSR if the information is not otherwise
	384	+	24 available to the person under any other state law; or
	385	+	25 (C) initiate any civil action based on information obtained
	386	+	26 from the NMLSR if the person could not have initiated the
	387	+	27 action based on information otherwise available to the
	388	+	28 person under any other state law.
	389	+	29 (2) Documents, materials, and other forms of information in
	390	+	30 the control or possession of the NMLSR that are confidential
	391	+	31 under this section and that are:
	392	+	32 (A) furnished by the director, the director's designee, or a
	393	+	33 licensee; or
	394	+	34 (B) otherwise obtained by the NMLSR;
	395	+	35 are confidential and privileged by law and are not subject to
	396	+	36 inspection under IC 5-14-3, subject to subpoena, subject to
	397	+	37 discovery, or admissible in evidence in any civil action.
	398	+	38 However, the director may use the documents, materials, or
	399	+	39 other information available to the director in furtherance of
	400	+	40 any action brought in connection with the director's duties
	401	+	41 under this chapter.
	402	+	42 (3) Disclosure of documents, materials, and information:
	403	+	HB 1125—LS 6811/DI 101 10
	404	+	1 (A) to the director; or
	405	+	2 (B) by the director;
	406	+	3 under this subsection does not result in a waiver of any
	407	+	4 applicable privilege or claim of confidentiality with respect to
	408	+	5 the documents, materials, or information.
	409	+	6 (4) Information provided to the NMLSR is subject to
	410	+	7 IC 4-1-11.
	411	+	8 (5) This subsection does not limit or impair a person's right
	412	+	9 to:
	413	+	10 (A) obtain information;
	414	+	11 (B) use information as evidence in a civil action or
	415	+	12 proceeding; or
	416	+	13 (C) use information to initiate a civil action or proceeding;
	417	+	14 if the information may be obtained from the director or the
	418	+	15 director's designee under any law.
	419	+	16 (6) The requirements under any federal law or IC 5-14-3
	420	+	17 regarding the privacy or confidentiality of any information or
	421	+	18 material provided to the NMLSR, and any privilege arising
	422	+	19 under federal or state law, including the rules of any federal
	423	+	20 or state court, with respect to the information or material,
	424	+	21 continue to apply to the information or material after the
	425	+	22 information or material has been disclosed to the NMLSR.
	426	+	23 The information and material may be shared with all state
	427	+	24 and federal regulatory officials with financial services
	428	+	25 industry oversight authority without the loss of privilege or
	429	+	26 the loss of confidentiality protections provided by federal law
	430	+	27 or IC 5-14-3.
	431	+	28 (7) Information or material that is subject to a privilege or
	432	+	29 confidentiality under subdivision (6) is not subject to:
	433	+	30 (A) disclosure under any federal or state law governing the
	434	+	31 disclosure to the public of information held by an officer or
	435	+	32 an agency of the federal government or the respective
	436	+	33 state; or
	437	+	34 (B) subpoena, discovery, or admission into evidence, in any
	438	+	35 private civil action or administrative process, unless with
	439	+	36 respect to any privileged information or material held by
	440	+	37 the NMLSR, the person to whom the information or
	441	+	38 material pertains waives, in whole or in part, in the
	442	+	39 discretion of the person, that privilege.
	443	+	40 (e) Notwithstanding any other provision of law, all information
	444	+	41 or reports obtained by the director from an applicant or a licensee,
	445	+	42 whether obtained through reports, applications, examination,
	446	+	HB 1125—LS 6811/DI 101 11
	447	+	1 audits, investigation, or otherwise, including:
	448	+	2 (1) all information contained in or related to:
	449	+	3 (A) examination;
	450	+	4 (B) investigation;
	451	+	5 (C) operation; or
	452	+	6 (D) condition;
	453	+	7 reports prepared by, on behalf of, or for the use of the
	454	+	8 director; or
	455	+	9 (2) financial statements or balance sheets of an applicant or
	456	+	10 licensee;
	457	+	11 are confidential and may not be disclosed or distributed outside the
	458	+	12 department by the director or any officer or employee of the
	459	+	13 department, except as provided in subsection (b).
	460	+	14 (f) The director may provide for the release of information to
	461	+	15 representatives of:
	462	+	16 (1) financial institution and financial services business
	463	+	17 supervisory agencies;
	464	+	18 (2) law enforcement agencies; or
	465	+	19 (3) prosecutorial agencies or offices;
	466	+	20 of a state (as defined in IC 28-2-17-19), the United States, or a
	467	+	21 foreign country. An agency or office that receives information
	468	+	22 from the director under this subsection shall maintain the
	469	+	23 confidentiality of the information as described in IC 28-1-2-30.
	470	+	24 (g) This section does not prohibit the director from releasing to
	471	+	25 the public a list of persons licensed under this chapter or from
	472	+	26 releasing aggregated financial data with respect to such licensees.
	473	+	27 Sec. 403. (a) The director may conduct an examination or
	474	+	28 investigation of a licensee or otherwise take independent action
	475	+	29 authorized by this chapter, or by a rule adopted or order issued
	476	+	30 under this chapter, as reasonably necessary or appropriate to
	477	+	31 administer and enforce this chapter and rules implementing this
	478	+	32 chapter. The director may:
	479	+	33 (1) conduct an examination either onsite or offsite as the
	480	+	34 director may reasonably require;
	481	+	35 (2) conduct an examination in conjunction with an
	482	+	36 examination conducted by other state agencies or agencies of
	483	+	37 another state or of the federal government;
	484	+	38 (3) accept the examination report of another state agency or
	485	+	39 an agency of another state or of the federal government, or a
	486	+	40 report prepared by an independent accounting firm, with any
	487	+	41 such report considered, upon being accepted and for all
	488	+	42 purposes, as an official report of the director; and
	489	+	HB 1125—LS 6811/DI 101 12
	490	+	1 (4) summon and examine under oath a key individual or
	491	+	2 employee of a licensee or authorized delegate and require the
	492	+	3 person to produce records regarding any matter related to the
	493	+	4 condition and business of the licensee.
	494	+	5 (b) A licensee shall provide, and the director shall have full and
	495	+	6 complete access to, all records the director may reasonably require
	496	+	7 to conduct a complete examination. The records must be provided
	497	+	8 at the location and in the format specified by the director. The
	498	+	9 director may use multistate record production standards and
	499	+	10 examination procedures when those standards will reasonably
	500	+	11 achieve the purposes of this subsection.
	501	+	12 (c) Unless otherwise directed by the director, a licensee shall pay
	502	+	13 all costs reasonably incurred in connection with an examination of
	503	+	14 the licensee.
	504	+	15 (d) The director shall determine the sufficiency of the licensee's
	505	+	16 records and whether the licensee has made the required
	506	+	17 information reasonably available.
	507	+	18 (e) To discover violations of this chapter, the director may
	508	+	19 investigate and examine the records of any person the director
	509	+	20 believes is operating without a license, when a license is required
	510	+	21 under this chapter. The person examined must pay the reasonably
	511	+	22 incurred costs of the examination.
	512	+	23 Sec. 404. (a) To efficiently and effectively administer and
	513	+	24 enforce this chapter and to minimize regulatory burden, the
	514	+	25 director may participate in multistate supervisory processes
	515	+	26 established between states and coordinated through the Conference
	516	+	27 of State Bank Supervisors and any affiliate or successor of that
	517	+	28 organization for all licensees that hold licenses in Indiana and
	518	+	29 other states. As a participant in multistate supervision, the director
	519	+	30 may:
	520	+	31 (1) cooperate, coordinate, and share information with other
	521	+	32 state and federal regulators in accordance with section 402 of
	522	+	33 this chapter;
	523	+	34 (2) enter into written cooperation, coordination, or
	524	+	35 information sharing contracts or agreements with
	525	+	36 organizations the membership of which is made up of state or
	526	+	37 federal governmental agencies; and
	527	+	38 (3) cooperate, coordinate, and share information with
	528	+	39 organizations the membership of which is made up of state or
	529	+	40 federal governmental agencies, as long as the organizations
	530	+	41 agree in writing to maintain the confidentiality and security
	531	+	42 of the shared information in accordance with section 402 of
	532	+	HB 1125—LS 6811/DI 101 13
	533	+	1 this chapter.
	534	+	2 (b) The director may not waive, and nothing in this section
	535	+	3 constitutes a waiver of, the director's authority to conduct an
	536	+	4 examination or investigation or to otherwise take independent
	537	+	5 action authorized by this chapter, or by a rule adopted or order
	538	+	6 issued under this chapter, to enforce compliance with applicable
	539	+	7 state or federal law.
	540	+	8 (c) The performance of a joint examination or investigation, or
	541	+	9 acceptance of an examination or investigation report, does not
	542	+	10 waive the director's authority to perform an examination
	543	+	11 assessment provided for in this chapter.
	544	+	12 Sec. 501. (a) A person may not:
	545	+	13 (1) engage in the business of offering or providing earned
	546	+	14 wage access services; or
	547	+	15 (2) advertise, solicit, or hold itself out as offering or providing
	548	+	16 earned wage access services;
	549	+	17 unless the person is licensed under this chapter.
	550	+	18 (b) Subsection (a) does not apply to a person that is exempt
	551	+	19 under section 301 of this chapter and does not engage in the
	552	+	20 business of offering or providing earned wage access services
	553	+	21 outside the scope of the exemption.
	554	+	22 (c) A license issued under section 503 of this chapter is not
	555	+	23 transferable or assignable without the approval of the department.
	556	+	24 Sec. 502. (a) To establish consistent licensing between this state
	557	+	25 and other states, the director may:
	558	+	26 (1) implement all licensing provisions of this chapter in a
	559	+	27 manner that is consistent with other states that have adopted:
	560	+	28 (A) a law containing the same provisions of this chapter; or
	561	+	29 (B) multistate licensing processes; and
	562	+	30 (2) participate in nationwide protocols for licensing
	563	+	31 cooperation and coordination among state regulators if those
	564	+	32 protocols are consistent with this chapter.
	565	+	33 (b) To administer and enforce this chapter, the director may
	566	+	34 establish relationships or contracts with the NMLSR or other
	567	+	35 entities designated by the NMLSR to enable the director to:
	568	+	36 (1) collect and maintain records;
	569	+	37 (2) coordinate multistate licensing processes and supervision
	570	+	38 processes;
	571	+	39 (3) process fees; and
	572	+	40 (4) facilitate communication between the state and licensees
	573	+	41 or other persons subject to this chapter.
	574	+	42 (c) The director may use the NMLSR for all aspects of licensing
	575	+	HB 1125—LS 6811/DI 101 14
	576	+	1 in accordance with this chapter, including license applications,
	577	+	2 applications for acquisitions of control, surety bonds, reporting,
	578	+	3 criminal history background checks, credit checks, fee processing,
	579	+	4 and examinations.
	580	+	5 (d) The director may use NMLSR forms, processes, and
	581	+	6 functionalities in accordance with this chapter. If the NMLSR does
	582	+	7 not provide functionality, forms, or processes for a provision of this
	583	+	8 chapter, the director may implement the requirements in a manner
	584	+	9 that facilitates uniformity with respect to licensing, supervision,
	585	+	10 reporting, and regulation of licensees that are licensed in multiple
	586	+	11 jurisdictions.
	587	+	12 (e) For the purpose of participating in the NMLSR, the director
	588	+	13 is authorized to waive or modify, in whole or in part, by rule or
	589	+	14 order, any or all of the requirements for licensure and to establish
	590	+	15 new requirements as reasonably necessary to participate in the
	591	+	16 NMLSR.
	592	+	17 Sec. 503. (a) The department shall receive and act on all
	593	+	18 applications for licenses to offer or provide earned wage access
	594	+	19 services. Applications must be made as prescribed by the director.
	595	+	20 If, at any time, the information or record contained in:
	596	+	21 (1) an application filed under this section; or
	597	+	22 (2) a renewal application filed under section 506 of this
	598	+	23 chapter;
	599	+	24 is or becomes inaccurate or incomplete in a material respect, the
	600	+	25 applicant shall promptly file a correcting amendment with the
	601	+	26 department.
	602	+	27 (b) A license may not be issued unless the department finds that
	603	+	28 the professional training and experience, financial responsibility,
	604	+	29 character, and fitness of:
	605	+	30 (1) the applicant;
	606	+	31 (2) each executive officer, director, or manager of the
	607	+	32 applicant, or any other individual having a similar status or
	608	+	33 performing a similar function for the applicant; and
	609	+	34 (3) if known, each person directly or indirectly owning of
	610	+	35 record or owning beneficially at least ten percent (10%) of the
	611	+	36 outstanding shares of any class of equity security of the
	612	+	37 applicant;
	613	+	38 are such as to warrant belief that the business will be operated
	614	+	39 honestly and fairly.
	615	+	40 (c) The director is entitled to request evidence of compliance
	616	+	41 with this section at:
	617	+	42 (1) the time of application;
	618	+	HB 1125—LS 6811/DI 101 15
	619	+	1 (2) the time of renewal of a license; or
	620	+	2 (3) any other time considered necessary by the director.
	621	+	3 (d) Evidence of compliance with this section must include:
	622	+	4 (1) criminal background checks, as described in section 504 of
	623	+	5 this chapter, including a national criminal history background
	624	+	6 check (as defined in IC 10-13-3-12) by the Federal Bureau of
	625	+	7 Investigation, for any individual described in subsection (b);
	626	+	8 (2) credit histories as described in section 504 of this chapter;
	627	+	9 (3) surety bond requirements as described in section 505 of
	628	+	10 this chapter;
	629	+	11 (4) a review of licensure actions in Indiana and in other states;
	630	+	12 and
	631	+	13 (5) other background checks considered necessary by the
	632	+	14 director.
	633	+	15 (e) For purposes of this section and in order to reduce the points
	634	+	16 of contact that the director has to maintain under this section, the
	635	+	17 director may use the NMLSR as a channeling agent for requesting
	636	+	18 and distributing information to and from any source as directed by
	637	+	19 the director.
	638	+	20 (f) The department may deny an application under this section
	639	+	21 if the director of the department determines that the application
	640	+	22 was submitted for the benefit of, or on behalf of, a person who does
	641	+	23 not qualify for a license.
	642	+	24 (g) Upon written request, an applicant is entitled to a hearing,
	643	+	25 in the manner provided in IC 4-21.5, on the question of the
	644	+	26 qualifications of the applicant for a license.
	645	+	27 (h) An applicant shall pay the following fees at the time
	646	+	28 designated by the department:
	647	+	29 (1) An initial license fee as established by the department
	648	+	30 under IC 28-11-3-5. Until the department establishes an initial
	649	+	31 license fee under IC 28-11-3-5, the initial license fee shall be
	650	+	32 one thousand five hundred dollars ($1,500).
	651	+	33 (2) Examination fees as established by the department under
	652	+	34 IC 28-11-3-5. Until the department establishes an examination
	653	+	35 fee schedule under IC 28-11-3-5 that is applicable to an
	654	+	36 applicant under this chapter, the examination fee schedule
	655	+	37 shall be the fee schedule applicable to persons licensed under
	656	+	38 IC 24-4.5-7.
	657	+	39 (3) An annual renewal fee as established by the department
	658	+	40 under IC 28-11-3-5. Until the department establishes an
	659	+	41 annual renewal fee under IC 28-11-3-5, the annual renewal
	660	+	42 fee shall be one thousand five hundred dollars ($1,500).
	661	+	HB 1125—LS 6811/DI 101 16
	662	+	1 (i) A fee as established by the department under IC 28-11-3-5
	663	+	2 may be charged for each day a fee under subsection (h)(2) or (h)(3)
	664	+	3 is delinquent.
	665	+	4 (j) Except in a transaction approved under section 601 of this
	666	+	5 chapter, a license issued under this section is not assignable or
	667	+	6 transferable.
	668	+	7 (k) If the department of state revenue notifies the department
	669	+	8 that a person is on the most recent tax warrant list, the department
	670	+	9 shall not issue or renew the person's license until:
	671	+	10 (1) the person provides to the department a statement from
	672	+	11 the department of state revenue that the person's tax warrant
	673	+	12 has been satisfied; or
	674	+	13 (2) the department receives a notice from the commissioner of
	675	+	14 the department of state revenue under IC 6-8.1-8-2(k).
	676	+	15 Sec. 504. (a) An individual in control of a licensee or an
	677	+	16 applicant, an individual who seeks to acquire control of a licensee,
	678	+	17 and each key individual with respect to a licensee or an applicant
	679	+	18 shall furnish to the department through the NMLSR the following
	680	+	19 items:
	681	+	20 (1) The individual's fingerprints for submission to the Federal
	682	+	21 Bureau of Investigation and the department for purposes of
	683	+	22 a national criminal history background check.
	684	+	23 (2) Personal history and experience, in a form and by a
	685	+	24 medium prescribed by the director, including the following:
	686	+	25 (A) An independent credit report from a consumer
	687	+	26 reporting agency unless the individual does not have a
	688	+	27 Social Security number, in which case a credit report is not
	689	+	28 required.
	690	+	29 (B) Information related to any criminal convictions with
	691	+	30 respect to, or pending charges against, the individual.
	692	+	31 (C) Information related to any:
	693	+	32 (i) regulatory or administrative action; or
	694	+	33 (ii) civil litigation;
	695	+	34 involving claims of fraud, misrepresentation, conversion,
	696	+	35 mismanagement of funds, breach of fiduciary duty, or
	697	+	36 breach of contract.
	698	+	37 (b) The director may:
	699	+	38 (1) waive one (1) or more requirements set forth in subsection
	700	+	39 (a); or
	701	+	40 (2) permit an applicant to submit other information instead of
	702	+	41 meeting one (1) or more of the requirements set forth in
	703	+	42 subsection (a).
	704	+	HB 1125—LS 6811/DI 101 17
	705	+	1 Sec. 505. (a) An applicant for an earned wage access services
	706	+	2 license must provide, and a licensee at all times must maintain,
	707	+	3 security consisting of a surety bond in a form satisfactory to the
	708	+	4 director.
	709	+	5 (b) Subject to subsections (c) and (d), the amount of the required
	710	+	6 security under this section is the greater of:
	711	+	7 (1) one hundred thousand dollars ($100,000); or
	712	+	8 (2) an amount equal to the licensee's average daily provision
	713	+	9 of proceeds to Indiana consumers, as calculated for the most
	714	+	10 recently completed calendar quarter, up to a maximum of two
	715	+	11 hundred fifty thousand dollars ($250,000).
	716	+	12 (c) A licensee that maintains a bond in the maximum amount of
	717	+	13 two hundred fifty thousand dollars ($250,000) set forth in
	718	+	14 subsection (b)(2) is not required to calculate the licensee's average
	719	+	15 daily provision of proceeds to Indiana consumers for purposes of
	720	+	16 this section.
	721	+	17 (d) A licensee may exceed the maximum required bond amount
	722	+	18 of two hundred fifty thousand dollars ($250,000) set forth in
	723	+	19 subsection (b)(2).
	724	+	20 Sec. 506. (a) A license under this chapter shall be renewed
	725	+	21 annually as follows:
	726	+	22 (1) An annual renewal fee, as set by the department, shall be
	727	+	23 paid not later than December 31 of each year.
	728	+	24 (2) The renewal term is for a period of one (1) year and:
	729	+	25 (A) begins on January 1 of each year after the initial
	730	+	26 license term; and
	731	+	27 (B) expires on December 31 of the year the renewal term
	732	+	28 begins.
	733	+	29 (b) A licensee shall submit a renewal report with the renewal
	734	+	30 fee, in a form and by a medium prescribed by the director. The
	735	+	31 renewal report must state or contain a description of each material
	736	+	32 change in the information submitted by the licensee in its original
	737	+	33 license application, if such change has not been previously reported
	738	+	34 to the department.
	739	+	35 (c) The director may grant an extension of the renewal date for
	740	+	36 good cause.
	741	+	37 (d) The director may use the NMLSR to process license
	742	+	38 renewals, as long as the functionality of the NMLSR for such
	743	+	39 purpose is consistent with this section.
	744	+	40 Sec. 507. (a) If a licensee does not continue to meet the
	745	+	41 qualifications or satisfy the requirements that apply to an applicant
	746	+	42 for a new earned wage access services license, the department may
	747	+	HB 1125—LS 6811/DI 101 18
	748	+	1 suspend or revoke the licensee's license in accordance with the
	749	+	2 procedures established by this chapter or other applicable state
	750	+	3 law for such suspension or revocation.
	751	+	4 (b) An applicant for an earned wage access services license must
	752	+	5 demonstrate that it meets or will meet, and an earned wage access
	753	+	6 services licensee must at all times meet, the requirements set forth
	754	+	7 in section 505 of this chapter.
	755	+	8 Sec. 601. (a) Any person, or group of persons acting in concert,
	756	+	9 seeking to acquire control of a licensee shall obtain the written
	757	+	10 approval of the department before acquiring control. An
	758	+	11 individual:
	759	+	12 (1) is not considered to acquire control of a licensee; and
	760	+	13 (2) is not subject to the acquisition of control provisions set
	761	+	14 forth in this chapter;
	762	+	15 when that individual becomes a key individual in the ordinary
	763	+	16 course of business.
	764	+	17 (b) A person, or group of persons acting in concert, seeking to
	765	+	18 acquire control of a licensee shall, in cooperation with the licensee,
	766	+	19 submit:
	767	+	20 (1) an application in a form and by a medium prescribed by
	768	+	21 the director; and
	769	+	22 (2) a nonrefundable fee, as determined by the department,
	770	+	23 with the request for approval. Until the department
	771	+	24 establishes the nonrefundable fee under IC 28-11-3-5, the
	772	+	25 nonrefundable fee shall be one thousand five hundred dollars
	773	+	26 ($1,500).
	774	+	27 (c) Upon request, the director may permit a licensee or the:
	775	+	28 (1) person; or
	776	+	29 (2) group of persons acting in concert;
	777	+	30 seeking to acquire control of the licensee, to submit some or all
	778	+	31 information required in an application under subsection (b)(1)
	779	+	32 without using the NMLSR.
	780	+	33 (d) The application required under subsection (b)(1) must
	781	+	34 include information required by section 504 of this chapter for any
	782	+	35 new key individuals that have not previously completed the
	783	+	36 requirements of section 504 of this chapter for a licensee.
	784	+	37 (e) Subject to subsection (f), when an application for acquisition
	785	+	38 of control appears to include all the items, and to address all the
	786	+	39 matters, that are required for an application for change in control,
	787	+	40 as determined by the director, the application is considered
	788	+	41 complete, and the director shall promptly notify the applicant, in
	789	+	42 a record, of the date on which the application is determined to be
	790	+	HB 1125—LS 6811/DI 101 19
	791	+	1 complete, and:
	792	+	2 (1) the department shall approve or deny the application not
	793	+	3 later than sixty (60) days after the completion date, as
	794	+	4 determined in accordance with this subsection; or
	795	+	5 (2) if the application is not approved or denied not later than
	796	+	6 sixty (60) days after the completion date:
	797	+	7 (A) the application is considered approved; and
	798	+	8 (B) the person, or group of persons acting in concert,
	799	+	9 seeking to acquire control of the licensee is not prohibited
	800	+	10 from acquiring control.
	801	+	11 However, the director may for good cause extend the sixty (60) day
	802	+	12 period described in this subsection.
	803	+	13 (f) A determination by the director that an application is
	804	+	14 complete and is accepted for processing means only that the
	805	+	15 application, on its face, appears to:
	806	+	16 (1) include all of the items; and
	807	+	17 (2) address all of the matters;
	808	+	18 that are required for an application for acquisition of control
	809	+	19 under this chapter, and is not an assessment of the substance of the
	810	+	20 application or of the sufficiency of the information provided.
	811	+	21 (g) When an application is filed and considered complete under
	812	+	22 subsection (e), the director shall investigate the financial condition
	813	+	23 and responsibility, financial and business experience, character,
	814	+	24 and general fitness of the person, or group of persons acting in
	815	+	25 concert, seeking to acquire control. The department shall approve
	816	+	26 an acquisition of control under this section if the department finds
	817	+	27 that all of the following conditions have been met:
	818	+	28 (1) The requirements set forth in subsections (b) and (d) have
	819	+	29 been met, as applicable.
	820	+	30 (2) Both the:
	821	+	31 (A) financial condition and responsibility, financial and
	822	+	32 business experience, competence, character, and general
	823	+	33 fitness of the person, or group of persons acting in concert,
	824	+	34 seeking to acquire control; and
	825	+	35 (B) competence, experience, character, and general fitness
	826	+	36 of the key individuals and persons that would be in control
	827	+	37 of the licensee after the acquisition of control;
	828	+	38 indicate that it is in the interest of the public to permit the
	829	+	39 person, or group of persons acting in concert, to control the
	830	+	40 licensee.
	831	+	41 (h) If an applicant avails itself of, or is otherwise subject to, a
	832	+	42 multistate licensing process:
	833	+	HB 1125—LS 6811/DI 101 20
	834	+	1 (1) the director may accept the investigation results of a lead
	835	+	2 investigative state for the purpose of subsection (g) if the lead
	836	+	3 investigative state has sufficient staffing, expertise, and
	837	+	4 minimum standards; or
934	838		5 (2) if Indiana is a lead investigative state, the director may
935		-	6 investigate the applicant pursuant to subsection (m) and to the
	839	+	6 investigate the applicant pursuant to subsection (g) and to the
936	840		7 time frames established by agreement through the multistate
937	841		8 licensing process.
938		-	9 Sec. 602. (a) A licensee adding or replacing any key individual
939		-	10 shall:
940		-	11 (1) provide notice in a manner prescribed by the director not
941		-	12 later than fifteen (15) days after the effective date of the key
942		-	13 individual's appointment; and
943		-	14 (2) provide information as required by section 504 of this
944		-	15 chapter not later than forty-five (45) days after the effective
945		-	16 date of the key individual's appointment.
946		-	17 (b) Not later than ninety (90) days after the date on which a
947		-	18 notice provided under subsection (a) is determined by the director
948		-	19 to be complete, the department may issue a notice of disapproval
949		-	20 of a key individual if the competence, experience, character, or
950		-	21 integrity of the individual would not be in the best interests of:
951		-	22 (1) the public; or
952		-	23 (2) the customers of the licensee;
953		-	24 so as to permit the individual to be a key individual of such
954		-	25 licensee.
955		-	26 (c) A notice of disapproval under subsection (b) must contain a
956		-	27 statement of the basis for disapproval and shall be sent to the
957		-	28 licensee and the disapproved individual. A licensee that receives a
958		-	29 notice of disapproval under subsection (b) may appeal the denial
959		-	30 to the department for an administrative review under IC 4-21.5-3.
960		-	31 (d) If a notice provided under subsection (a) is not disapproved
961		-	32 within ninety (90) days after the date on which the notice was
962		-	33 determined by the director to be complete, the key individual is
963		-	34 considered approved.
964		-	35 (e) If a multistate licensing process includes a key individual
965		-	36 notice and review and approval process as described in this section,
966		-	37 and a licensee avails itself of, or is otherwise subject to, the
967		-	38 multistate licensing process:
968		-	39 (1) the director may accept the determination of another state
969		-	40 if the investigating state has sufficient staffing, expertise, and
970		-	41 minimum standards for the purpose of this section; or
971		-	42 (2) if Indiana is a lead investigative state, the director may
972		-	EH 1125—LS 6811/DI 101 23
973		-	1 investigate the applicant pursuant to this section and to the
974		-	2 time frames established by agreement through the multistate
975		-	3 licensing process.
976		-	4 Sec. 701. (a) A provider required to be licensed under this
977		-	5 chapter shall maintain records in a manner that will enable the
978		-	6 department to determine whether the provider is complying with
979		-	7 the provisions of this chapter. The department shall be given free
980		-	8 access to the records wherever the records are located. Records
981		-	9 concerning any earned wage access services transaction shall be
982		-	10 retained for two (2) years after the transaction is initiated. A
983		-	11 provider licensed or required to be licensed under this chapter is
984		-	12 subject to IC 28-1-2-30.5 with respect to any records maintained by
985		-	13 the provider.
986		-	14 (b) A provider required to be licensed under this chapter shall
987		-	15 file with the department, in the form and manner required by the
988		-	16 department, a quarterly composite report relating to all earned
989		-	17 wage access services transactions made by the provider in Indiana
990		-	18 during the reporting period covered by the report. Information
991		-	19 contained in the reports is confidential and may be published only
992		-	20 in composite form. The department may impose a fee in an amount
993		-	21 fixed by the department under IC 28-11-3-5 for each day that a
994		-	22 provider fails to file the report required by this subsection. The fee
995		-	23 established under this subsection shall not exceed fifty dollars ($50)
996		-	24 per day.
997		-	25 Sec. 801. A provider required to be licensed under this chapter
998		-	26 shall do the following:
999		-	27 (1) Develop and implement policies and procedures to:
1000		-	28 (A) respond to questions raised by consumers; and
1001		-	29 (B) address complaints from consumers;
1002		-	30 in an expedient manner.
1003		-	31 (2) Whenever the provider offers a consumer the option to
1004		-	32 receive proceeds for a fee or solicits a tip, gratuity, or other
1005		-	33 donation:
1006		-	34 (A) offer that consumer at least one (1) reasonable option
1007		-	35 to obtain proceeds at no cost;
1008		-	36 (B) clearly explain to the consumer how to elect each no
1009		-	37 cost option offered;
1010		-	38 (C) ensure that any no cost option offered is clearly
1011		-	39 displayed and is in the same:
1012		-	40 (i) color;
1013		-	41 (ii) font;
1014		-	42 (iii) font size; and
1015		-	EH 1125—LS 6811/DI 101 24
1016		-	1 (iv) general location;
1017		-	2 as any option to obtain proceeds that has a fee associated
1018		-	3 with it;
1019		-	4 (D) ensure that any option to obtain proceeds that has a fee
1020		-	5 associated with the delivery of the proceeds is not the
1021		-	6 default option;
1022		-	7 (E) ensure that if a consumer elects to not pay a tip,
1023		-	8 gratuity, or other donation, any fee amount charged to the
1024		-	9 consumer as part of an earned wage access services
1025		-	10 transaction is not increased because of the consumer's
1026		-	11 decision to not pay a tip, gratuity, or other donation; and
1027		-	12 (F) ensure that, if a consumer elects a no cost option,
1028		-	13 initiate the delivery of the proceeds to the consumer not
1029		-	14 later than one (1) business day after the consumer initiates
1030		-	15 an earned wage access services transaction with the
1031		-	16 provider.
1032		-	17 (3) Before entering into an agreement with a consumer to
1033		-	18 provide earned wage access services, do both of the following:
1034		-	19 (A) Inform the consumer of the consumer's rights under
1035		-	20 the agreement.
1036		-	21 (B) Fully and clearly disclose all fees associated with the
1037		-	22 earned wage access services to be provided.
1038		-	23 (4) Inform the consumer of the fact of or obtain the consent of
1039		-	24 the consumer to any material changes to the terms and
1040		-	25 conditions of the earned wage access services before
1041		-	26 implementing those changes for that consumer.
1042		-	27 (5) Allow the consumer to cancel use of the provider's earned
1043		-	28 wage access services:
1044		-	29 (A) at any time; and
1045		-	30 (B) without incurring a cancellation fee imposed by the
1046		-	31 provider.
1047		-	32 (6) Comply with all applicable local, state, and federal privacy
1048		-	33 and information security laws.
1049		-	34 (7) If the provider solicits, charges, or receives a tip, gratuity,
1050		-	35 or other donation from a consumer:
1051		-	36 (A) clearly and conspicuously disclose to the consumer
1052		-	37 immediately before each transaction that a tip, gratuity, or
1053		-	38 other donation:
1054		-	39 (i) is voluntary; and
1055		-	40 (ii) may be in the amount of zero dollars ($0); and
1056		-	41 (B) clearly and conspicuously disclose in the provider's
1057		-	42 service contract with the consumer that tips, gratuities, or
1058		-	EH 1125—LS 6811/DI 101 25
1059		-	1 other donations are voluntary and that the offering of
1060		-	2 earned wage access services, including:
1061		-	3 (i) the amount of proceeds that a consumer is eligible to
1062		-	4 request;
1063		-	5 (ii) the frequency with which proceeds are provided to a
1064		-	6 consumer; and
1065		-	7 (iii) the level or cost of any service provided to the
1066		-	8 consumer in connection with an earned wage access
1067		-	9 services transaction;
1068		-	10 is not contingent on whether the consumer pays any tip,
1069		-	11 gratuity, or other donation, or on the amount of the tip,
1070		-	12 gratuity, or other donation.
1071		-	13 (8) Provide proceeds to a consumer by any means mutually
1072		-	14 agreed upon by the provider and the consumer.
1073		-	15 (9) If the provider seeks repayment of outstanding proceeds
1074		-	16 or the payment of fees or other amounts owed (including
1075		-	17 voluntary tips, gratuities, or other donations) in connection
1076		-	18 with earned wage access services provided under this chapter
1077		-	19 from a consumer's deposit account, including by means of
1078		-	20 electronic funds transfer, the provider must do the following:
1079		-	21 (A) Comply with applicable provisions of the federal
1080		-	22 Electronic Funds Transfer Act (15 U.S.C. 1693 et seq.).
1081		-	23 (B) Reimburse the consumer for the full amount of any
1082		-	24 overdraft or nonsufficient funds fees that are imposed on
1083		-	25 the consumer by the consumer's depository financial
1084		-	26 institution if the overdraft or nonsufficient funds fees
1085		-	27 resulted from the provider's attempt to seek payment of
1086		-	28 any outstanding proceeds, fees, or other amounts
1087		-	29 (including voluntary tips, gratuities, or other donations)
1088		-	30 under this chapter:
1089		-	31 (i) on a date before; or
1090		-	32 (ii) in an incorrect amount from;
1091		-	33 the date or amount disclosed to the consumer. However, a
1092		-	34 provider is not subject to the requirements of this clause
1093		-	35 with respect to the payment of any outstanding proceeds,
1094		-	36 fees, or other amounts incurred by a consumer through
1095		-	37 fraudulent or other unlawful means.
1096		-	38 (10) Ensure that the provider's software application does not
1097		-	39 do any of the following:
1098		-	40 (A) Subject a user of the software application to unsolicited
1099		-	41 electronic mail advertisements or surveys, if the user has
1100		-	42 elected to not receive electronic mail advertisements or
1101		-	EH 1125—LS 6811/DI 101 26
1102		-	1 surveys, as required by 15 U.S.C. 7701-7713.
1103		-	2 (B) Subject a user of the software application to unsolicited
1104		-	3 electronic advertisements or surveys, based on the
1105		-	4 individual user's:
1106		-	5 (i) use of the provider's software application;
1107		-	6 (ii) location; or
1108		-	7 (iii) behavior;
1109		-	8 if the user has elected to not receive the electronic
1110		-	9 advertisements or surveys.
1111		-	10 (C) Display an unsolicited electronic notification to a user
1112		-	11 of the software application unless the user has elected to
1113		-	12 receive electronic notifications.
1114		-	13 (D) Access a user's location, except for purposes of
1115		-	14 verifying that a user is located in Indiana at the time the
1116		-	15 user creates an account with the provider, unless the user
1117		-	16 has authorized the provider's software application to
1118		-	17 access the user's location.
1119		-	18 (11) Ensure that any data that the provider receives under
1120		-	19 subdivision (10) is not sold or shared, except as follows:
1121		-	20 (A) In connection with a law enforcement investigation or
1122		-	21 legal proceeding.
1123		-	22 (B) As necessary to provide earned wage access services to
1124		-	23 the user.
1125		-	24 (C) The user authorizes the provider to sell or share the
1126		-	25 data.
1127		-	26 (12) Sell consumer data to a lender (as defined in
1128		-	27 IC 24-4.5-7-111) licensed under IC 24-4.5-7.
1129		-	28 (13) Share consumer data with a lender (as defined in
1130		-	29 IC 24-4.5-7-111) licensed under IC 24-4.5-7.
1131		-	30 Sec. 802. A provider required to be licensed under this chapter
1132		-	31 shall not do any of the following:
1133		-	32 (1) Share with an employer a portion of any:
1134		-	33 (A) fees; or
1135		-	34 (B) voluntary tips, gratuities, or other donations;
1136		-	35 received from or charged to a consumer for earned wage
1137		-	36 access services.
1138		-	37 (2) Use a consumer's credit score from a consumer report (as
1139		-	38 defined in IC 24-5-24-2) to determine:
1140		-	39 (A) a consumer's eligibility for earned wage access
1141		-	40 services;
1142		-	41 (B) the amount of proceeds that a consumer is eligible to
1143		-	42 request or receive in an earned wage access services
1144		-	EH 1125—LS 6811/DI 101 27
1145		-	1 transaction; or
1146		-	2 (C) the frequency with which proceeds may be provided to
1147		-	3 a consumer through earned wage access services
1148		-	4 transactions.
1149		-	5 (3) Accept payment of outstanding proceeds, fees, or
1150		-	6 voluntary tips, gratuities, or other donations by means of a
1151		-	7 credit card (as defined in IC 24-5-27.5-3).
1152		-	8 (4) Charge or collect a late fee, a deferral fee, interest, or any
1153		-	9 other charge or penalty for a consumer's failure to pay
1154		-	10 outstanding proceeds, fees, or voluntary tips, gratuities, or
1155		-	11 other donations.
1156		-	12 (5) Compel or attempt to compel a consumer to pay to the
1157		-	13 provider any outstanding proceeds, fees, or voluntary tips,
1158		-	14 gratuities, or other donations through any of the following
1159		-	15 means:
1160		-	16 (A) The use of unsolicited outbound telephone calls to the
1161		-	17 consumer.
1162		-	18 (B) A suit against the consumer in a court of competent
1163		-	19 jurisdiction.
1164		-	20 (C) The use of a third party to pursue collection from the
1165		-	21 consumer on the provider's behalf.
1166		-	22 (D) The sale of outstanding amounts to a third party
1167		-	23 collector or debt buyer for collection from the consumer.
1168		-	24 However, this subdivision does not preclude a provider from
1169		-	25 using any of the means set forth in clauses (A) through (D) to
1170		-	26 pursue payment of outstanding amounts incurred by a
1171		-	27 consumer through fraudulent or other unlawful means, or
1172		-	28 from pursuing any available remedies against an employer for
1173		-	29 breach of the employer's contractual obligations to the
1174		-	30 provider.
1175		-	31 (6) If the provider solicits, charges, or receives a tip, gratuity,
1176		-	32 or other donation from a consumer:
1177		-	33 (A) mislead or deceive consumers about the voluntary
1178		-	34 nature of the tips, gratuities, or donations;
1179		-	35 (B) represent that tips, gratuities, or donations will benefit
1180		-	36 any specific individuals; or
1181		-	37 (C) suggest a default tip, gratuity, or other donation
1182		-	38 amount greater than zero dollars ($0).
1183		-	39 (7) If the provider also offers small loans to consumers under
1184		-	40 IC 24-4.5-7:
1185		-	41 (A) provide proceeds to a consumer who has a small loan
1186		-	42 outstanding from that provider, as verified by the provider
1187		-	EH 1125—LS 6811/DI 101 28
1188		-	1 in accordance with IC 24-4.5-7-404(4); or
1189		-	2 (B) make a small loan to a consumer who has outstanding
1190		-	3 proceeds from that provider.
1191		-	4 Sec. 803. A fee described in section 201(11)(A) of this chapter
1192		-	5 shall not exceed:
1193		-	6 (1) an amount; or
1194		-	7 (2) a percentage of the proceeds delivered to a consumer;
1195		-	8 that exceeds the limitation set forth in IC 28-8-5-17(a)(2).
1196		-	9 Sec. 901. (a) A license issued by the department under this
1197		-	10 chapter may be revoked or suspended by the department if the
1198		-	11 person fails to:
1199		-	12 (1) file any renewal form required by the department; or
1200		-	13 (2) pay any license renewal fee described under section
1201		-	14 506(a)(1) of this chapter;
1202		-	15 not later than sixty (60) days after the due date.
1203		-	16 (b) A person whose license is revoked or suspended under this
1204		-	17 section may:
1205		-	18 (1) pay all delinquent fees and apply for a reinstatement of the
1206		-	19 person's license; or
1207		-	20 (2) appeal the revocation or suspension to the department in
1208		-	21 an administrative review under IC 4-21.5-3.
1209		-	22 Pending the decision resulting from a hearing under IC 4-21.5-3
1210		-	23 concerning license revocation or suspension, a license remains in
1211		-	24 force.
1212		-	25 Sec. 902. Except as otherwise provided, IC 4-21.5 applies to and
1213		-	26 governs all agency action taken by the department under this
1214		-	27 chapter. A proceeding for administrative review under IC 4-21.5-3
1215		-	28 or judicial review under IC 4-21.5-5 must be held in Marion
1216		-	29 County.
1217		-	30 Sec. 903. (a) If the department determines, after notice and an
1218		-	31 opportunity to be heard, that a person has violated this chapter,
1219		-	32 the department may, in addition to or instead of all other remedies
1220		-	33 available under this chapter, impose upon the person a civil
1221		-	34 penalty not greater than ten thousand dollars ($10,000) per
1222		-	35 violation.
1223		-	36 (b) A penalty collected under this section shall be deposited into
1224		-	37 the financial institutions fund established by IC 28-11-2-9.
1225		-	38 Sec. 904. The director, in the exercise of reasonable judgment,
1226		-	39 is authorized to compromise, settle, and collect civil penalties from
1227		-	40 a person for a violation of:
1228		-	41 (1) a provision of this chapter; or
1229		-	42 (2) an order issued or promulgated pursuant to this chapter.
1230		-	EH 1125—LS 6811/DI 101 29
1231		-	1 Sec. 905. If it appears to the director that a person has
1232		-	2 committed or is about to commit a violation of a provision of this
1233		-	3 chapter or an order of the director, the director may apply to a
1234		-	4 court having jurisdiction for:
1235		-	5 (1) an order enjoining the person from violating or continuing
1236		-	6 to violate this chapter or the order; or
1237		-	7 (2) injunctive or other relief;
1238		-	8 as the nature of the case may require.
1239		-	9 Sec. 906. (a) The director may enter into a consent order with
1240		-	10 a person to resolve a matter arising under this chapter.
1241		-	11 (b) A consent order must:
1242		-	12 (1) be signed by the person to whom it is issued or by an
1243		-	13 authorized representative of that person; and
1244		-	14 (2) indicate agreement to the terms contained within the
1245		-	15 consent order.
1246		-	16 (c) A consent order does not:
1247		-	17 (1) constitute an admission by a person that a provision of this
1248		-	18 chapter or an order promulgated or issued under this chapter
1249		-	19 has been violated; or
1250		-	20 (2) constitute a finding by the director that the person has
1251		-	21 violated a provision of this chapter or an order promulgated
1252		-	22 or issued under this chapter.
1253		-	23 (d) Notwithstanding the issuance of a consent order, the director
1254		-	24 may seek civil or criminal penalties or compromise civil penalties
1255		-	25 concerning matters encompassed by the consent order, unless the
1256		-	26 consent order by its terms expressly precludes the director from
1257		-	27 doing so.
1258		-	28 Sec. 907. (a) A person who knowingly or intentionally makes a
1259		-	29 material false statement, or omits a material entry, in a document
1260		-	30 filed or required to be filed under this chapter, with the intent to
1261		-	31 deceive the recipient of the document, commits a Class C
1262		-	32 misdemeanor.
1263		-	33 (b) A person who knowingly or intentionally fails to file a
1264		-	34 document required to be filed under this chapter, commits a Class
1265		-	35 D infraction. However, the person commits a Class C infraction for
1266		-	36 a subsequent offense.
1267		-	37 Sec. 1001. (a) Rules promulgated by the director or the
1268		-	38 department under this chapter must be adopted in accordance with
1269		-	39 IC 4-22-2.
1270		-	40 (b) At the time the director or department files a notice of
1271		-	41 proposed adoption, amendment, or repeal of a rule under this
1272		-	42 chapter for public comment, a copy of the notice must be sent by
1273		-	EH 1125—LS 6811/DI 101 30
1274		-	1 first class mail postage prepaid to all licensees and applicants for
1275		-	2 licenses under this chapter as of the time the notice is sent.
1276		-	3 Sec. 1002. (a) Notwithstanding any other provision of law,
1277		-	4 earned wage access services offered or provided by a licensee in
1278		-	5 accordance with this chapter are not considered to be any of the
1279		-	6 following:
1280		-	7 (1) A violation of, or noncompliance with, any Indiana law
1281		-	8 governing deductions from payroll, salary, wages,
1282		-	9 compensation, or other income.
1283		-	10 (2) A violation of, or noncompliance with, any Indiana law
1284		-	11 governing:
1285		-	12 (A) the purchase of;
1286		-	13 (B) the sale or assignment of; or
1287		-	14 (C) an order for;
1288		-	15 earned but unpaid income.
1289		-	16 (3) A loan or other form of credit or debt.
1290		-	17 (4) Money transmission (as defined in IC 28-8-4.1-201(19)).
1291		-	18 (b) Notwithstanding any other provision of law, a licensee that
1292		-	19 offers or provides earned wage access services in accordance with
1293		-	20 this chapter is not considered to be any of the following solely by
1294		-	21 reason of offering or providing the earned wage access services:
1295		-	22 (1) A lender, creditor, credit services organization (as defined
1296		-	23 in IC 24-5-15-2), or debt collector.
1297		-	24 (2) A money transmitter for purposes of IC 28-8-4.1.
1298		-	25 However, this subsection does not exempt a licensee under this
1299		-	26 chapter from complying with section 802(7) of this chapter, as
1300		-	27 applicable.
1301		-	28 (c) Notwithstanding any other provision of law:
1302		-	29 (1) fees; or
1303		-	30 (2) voluntary tips, gratuities, or other donations;
1304		-	31 paid by a consumer to a licensee in accordance with this chapter
1305		-	32 are not considered to be interest or finance charges and shall not
1306		-	33 be subject to IC 35-45-7-2.
1307		-	34 (d) If there is a conflict between the provisions of this chapter
1308		-	35 and any other Indiana law, the provisions of this chapter control.
1309		-	36 Sec. 1003. The division of consumer credit within the
1310		-	37 department is responsible for administering this chapter.
1311		-	38 SECTION 4. IC 28-11-1-3, AS AMENDED BY P.L.198-2023,
1312		-	39 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1313		-	40 JANUARY 1, 2026]: Sec. 3. (a) The ultimate authority for and the
1314		-	41 powers, duties, management, and control of the department are vested
1315		-	42 in the following seven (7) members:
1316		-	EH 1125—LS 6811/DI 101 31
1317		-	1 (1) The director of the department, who serves as an ex officio,
1318		-	2 voting member.
1319		-	3 (2) The following six (6) members appointed by the governor as
1320		-	4 follows:
1321		-	5 (A) Three (3) members must have practical experience at the
1322		-	6 executive level of a:
1323		-	7 (i) state chartered bank;
1324		-	8 (ii) state chartered savings association; or
1325		-	9 (iii) state chartered savings bank.
1326		-	10 (B) One (1) member must have practical experience at the
1327		-	11 executive level as a:
1328		-	12 (i) lender licensed under IC 24-4.5;
1329		-	13 (ii) mortgage lender licensed under IC 24-4.4;
1330		-	14 (iii) registrant under IC 24-7;
1331		-	15 (iv) licensee under IC 28-1-29;
1332		-	16 (v) licensee under IC 28-7-5;
1333		-	17 (vi) licensee under IC 28-8-4.1; or
1334		-	18 (vii) licensee under IC 28-8-5; or
1335		-	19 (viii) licensee under IC 28-8-6.
1336		-	20 (C) One (1) member must have practical experience at the
1337		-	21 executive level of a state chartered credit union.
1338		-	22 (D) One (1) member must be appointed with due regard for the
1339		-	23 consumer, agricultural, industrial, and commercial interests of
1340		-	24 Indiana.
1341		-	25 (b) Not more than three (3) members appointed by the governor
1342		-	26 under subsection (a)(2) after June 30, 2006, may be affiliated with the
1343		-	27 same political party.
1344		-	28 SECTION 5. IC 35-52-28-11.1 IS ADDED TO THE INDIANA
1345		-	29 CODE AS A NEW SECTION TO READ AS FOLLOWS
1346		-	30 [EFFECTIVE JANUARY 1, 2026]: Sec. 11.1. IC 28-8-6-907 defines
1347		-	31 a crime concerning financial services.
1348		-	EH 1125—LS 6811/DI 101 32
	842	+	9 (i) The department shall issue a formal written notice of the
	843	+	10 denial of an application to acquire control not later than thirty (30)
	844	+	11 days after the decision to deny the application. The department
	845	+	12 shall set forth in the notice of denial the specific reasons for the
	846	+	13 denial of the application. An applicant whose application is denied
	847	+	14 by the department under this subsection may appeal the denial to
	848	+	15 the department for an administrative review under IC 4-21.5-3.
	849	+	16 (j) The requirements of subsections (a) and (b) do not apply to
	850	+	17 any of the following:
	851	+	18 (1) A person that acts as a proxy for the sole purpose of voting
	852	+	19 at a designated meeting of the:
	853	+	20 (A) shareholders;
	854	+	21 (B) holders of voting shares; or
	855	+	22 (C) voting interests;
	856	+	23 of a licensee or a person in control of a licensee.
	857	+	24 (2) A person that acquires control of a licensee as a
	858	+	25 conservator or as an officer appointed by a court of
	859	+	26 competent jurisdiction or by operation of law.
	860	+	27 (3) A person that is exempt under section 301 of this chapter.
	861	+	28 (4) A person that the director determines is not subject to
	862	+	29 subsection (a) based on the public interest.
	863	+	30 (5) A public offering of securities of a licensee or of a person
	864	+	31 in control of a licensee.
	865	+	32 (6) An internal reorganization of a person in control of the
	866	+	33 licensee if the ultimate person in control of the licensee
	867	+	34 remains the same.
	868	+	35 (k) A person described in subsection (j)(2), (j)(3), (j)(5), or (j)(6),
	869	+	36 in cooperation with the licensee, shall notify the director not later
	870	+	37 than fifteen (15) days after the acquisition of control.
	871	+	38 (l) The requirements of subsections (a) and (b) do not apply to
	872	+	39 a person that has complied with, and received approval to engage
	873	+	40 in, the business of offering or providing earned wage access
	874	+	41 services under this chapter, or that was identified as a person in
	875	+	42 control in a prior application filed with and approved by the
	876	+	HB 1125—LS 6811/DI 101 21
	877	+	1 department, if all of the following apply:
	878	+	2 (1) The person has not:
	879	+	3 (A) had a license revoked or suspended; or
	880	+	4 (B) controlled a licensee that has had a license revoked or
	881	+	5 suspended while the person was in control of the licensee;
	882	+	6 in the most recent five (5) years.
	883	+	7 (2) The licensee to be acquired will not implement any
	884	+	8 material changes to its business plan as a result of the
	885	+	9 acquisition of control, and if the person acquiring control is a
	886	+	10 licensee, the person acquiring control also will not implement
	887	+	11 any material changes to its business plan as a licensee as a
	888	+	12 result of the acquisition of control.
	889	+	13 (3) The person provides notice of the acquisition in
	890	+	14 cooperation with the licensee and attests to meeting the
	891	+	15 requirements set forth in subdivisions (1) and (2) in a form
	892	+	16 and by a medium prescribed by the director.
	893	+	17 If the notice described in subdivision (3) is not disapproved within
	894	+	18 thirty (30) days after the date on which the notice is determined to
	895	+	19 be complete by the director, the notice is considered approved.
	896	+	20 (m) Before filing an application for approval to acquire control
	897	+	21 of a licensee, a person may request in writing a determination from
	898	+	22 the director as to whether the person would be considered a person
	899	+	23 in control of a licensee upon consummation of a proposed
	900	+	24 transaction. If the director determines that the person would not
	901	+	25 be a person in control of a licensee, the proposed person and
	902	+	26 transaction is not subject to the requirements of subsections (a)
	903	+	27 and (b).
	904	+	28 (n) If a multistate licensing process includes a determination
	905	+	29 described in subsection (m), and an applicant avails itself of, or is
	906	+	30 otherwise subject to, the multistate licensing process:
	907	+	31 (1) the director may accept the control determination of a lead
	908	+	32 investigative state with sufficient staffing, expertise, and
	909	+	33 minimum standards for the purpose of subsection (m); or
	910	+	34 (2) if Indiana is a lead investigative state, the director may
	911	+	35 investigate the applicant pursuant to subsection (m) and to the
	912	+	36 time frames established by agreement through the multistate
	913	+	37 licensing process.
	914	+	38 Sec. 602. (a) A licensee adding or replacing any key individual
	915	+	39 shall:
	916	+	40 (1) provide notice in a manner prescribed by the director not
	917	+	41 later than fifteen (15) days after the effective date of the key
	918	+	42 individual's appointment; and
	919	+	HB 1125—LS 6811/DI 101 22
	920	+	1 (2) provide information as required by section 504 of this
	921	+	2 chapter not later than forty-five (45) days after the effective
	922	+	3 date of the key individual's appointment.
	923	+	4 (b) Not later than ninety (90) days after the date on which a
	924	+	5 notice provided under subsection (a) is determined by the director
	925	+	6 to be complete, the department may issue a notice of disapproval
	926	+	7 of a key individual if the competence, experience, character, or
	927	+	8 integrity of the individual would not be in the best interests of:
	928	+	9 (1) the public; or
	929	+	10 (2) the customers of the licensee;
	930	+	11 so as to permit the individual to be a key individual of such
	931	+	12 licensee.
	932	+	13 (c) A notice of disapproval under subsection (b) must contain a
	933	+	14 statement of the basis for disapproval and shall be sent to the
	934	+	15 licensee and the disapproved individual. A licensee that receives a
	935	+	16 notice of disapproval under subsection (b) may appeal the denial
	936	+	17 to the department for an administrative review under IC 4-21.5-3.
	937	+	18 (d) If a notice provided under subsection (a) is not disapproved
	938	+	19 within ninety (90) days after the date on which the notice was
	939	+	20 determined by the director to be complete, the key individual is
	940	+	21 considered approved.
	941	+	22 (e) If a multistate licensing process includes a key individual
	942	+	23 notice and review and approval process as described in this section,
	943	+	24 and a licensee avails itself of, or is otherwise subject to, the
	944	+	25 multistate licensing process:
	945	+	26 (1) the director may accept the determination of another state
	946	+	27 if the investigating state has sufficient staffing, expertise, and
	947	+	28 minimum standards for the purpose of this section; or
	948	+	29 (2) if Indiana is a lead investigative state, the director may
	949	+	30 investigate the applicant pursuant to this section and to the
	950	+	31 time frames established by agreement through the multistate
	951	+	32 licensing process.
	952	+	33 Sec. 701. (a) A provider required to be licensed under this
	953	+	34 chapter shall maintain records in a manner that will enable the
	954	+	35 department to determine whether the provider is complying with
	955	+	36 the provisions of this chapter. The department shall be given free
	956	+	37 access to the records wherever the records are located. Records
	957	+	38 concerning any earned wage access services transaction shall be
	958	+	39 retained for two (2) years after the transaction is initiated. A
	959	+	40 provider licensed or required to be licensed under this chapter is
	960	+	41 subject to IC 28-1-2-30.5 with respect to any records maintained by
	961	+	42 the provider.
	962	+	HB 1125—LS 6811/DI 101 23
	963	+	1 (b) A provider required to be licensed under this chapter shall
	964	+	2 file with the department, in the form and manner required by the
	965	+	3 department, a quarterly composite report relating to all earned
	966	+	4 wage access services transactions made by the provider in Indiana
	967	+	5 during the reporting period covered by the report. Information
	968	+	6 contained in the reports is confidential and may be published only
	969	+	7 in composite form. The department may impose a fee in an amount
	970	+	8 fixed by the department under IC 28-11-3-5 for each day that a
	971	+	9 provider fails to file the report required by this subsection.
	972	+	10 Sec. 801. A provider required to be licensed under this chapter
	973	+	11 shall do the following:
	974	+	12 (1) Develop and implement policies and procedures to:
	975	+	13 (A) respond to questions raised by consumers; and
	976	+	14 (B) address complaints from consumers;
	977	+	15 in an expedient manner.
	978	+	16 (2) Whenever the provider offers a consumer the option to
	979	+	17 receive proceeds for a fee or solicits a tip, gratuity, or other
	980	+	18 donation:
	981	+	19 (A) offer that consumer at least one (1) reasonable option
	982	+	20 to obtain proceeds at no cost; and
	983	+	21 (B) clearly explain to the consumer how to elect each no
	984	+	22 cost option offered.
	985	+	23 (3) Before entering into an agreement with a consumer to
	986	+	24 provide earned wage access services, do both of the following:
	987	+	25 (A) Inform the consumer of the consumer's rights under
	988	+	26 the agreement.
	989	+	27 (B) Fully and clearly disclose all fees associated with the
	990	+	28 earned wage access services to be provided.
	991	+	29 (4) Inform the consumer of the fact of any material changes
	992	+	30 to the terms and conditions of the earned wage access services
	993	+	31 before implementing those changes for that consumer.
	994	+	32 (5) Allow the consumer to cancel use of the provider's earned
	995	+	33 wage access services:
	996	+	34 (A) at any time; and
	997	+	35 (B) without incurring a cancellation fee imposed by the
	998	+	36 provider.
	999	+	37 (6) Comply with all applicable local, state, and federal privacy
	1000	+	38 and information security laws.
	1001	+	39 (7) If the provider solicits, charges, or receives a tip, gratuity,
	1002	+	40 or other donation from a consumer:
	1003	+	41 (A) clearly and conspicuously disclose to the consumer
	1004	+	42 immediately before each transaction that a tip, gratuity, or
	1005	+	HB 1125—LS 6811/DI 101 24
	1006	+	1 other donation:
	1007	+	2 (i) is voluntary; and
	1008	+	3 (ii) may be in the amount of zero dollars ($0); and
	1009	+	4 (B) clearly and conspicuously disclose in the provider's
	1010	+	5 service contract with the consumer that tips, gratuities, or
	1011	+	6 other donations are voluntary and that the offering of
	1012	+	7 earned wage access services, including:
	1013	+	8 (i) the amount of proceeds that a consumer is eligible to
	1014	+	9 request; and
	1015	+	10 (ii) the frequency with which proceeds are provided to a
	1016	+	11 consumer;
	1017	+	12 is not contingent on whether the consumer pays any tip,
	1018	+	13 gratuity, or other donation, or on the amount of the tip,
	1019	+	14 gratuity, or other donation.
	1020	+	15 (8) Provide proceeds to a consumer by any means mutually
	1021	+	16 agreed upon by the provider and the consumer.
	1022	+	17 (9) If the provider seeks repayment of outstanding proceeds
	1023	+	18 or the payment of fees or other amounts owed (including
	1024	+	19 voluntary tips, gratuities, or other donations) in connection
	1025	+	20 with earned wage access services provided under this chapter
	1026	+	21 from a consumer's deposit account, including by means of
	1027	+	22 electronic funds transfer, the provider must do the following:
	1028	+	23 (A) Comply with applicable provisions of the federal
	1029	+	24 Electronic Funds Transfer Act (15 U.S.C. 1693 et seq.).
	1030	+	25 (B) Reimburse the consumer for the full amount of any
	1031	+	26 overdraft or nonsufficient funds fees that are imposed on
	1032	+	27 the consumer by the consumer's depository financial
	1033	+	28 institution if the overdraft or nonsufficient funds fees
	1034	+	29 resulted from the provider's attempt to seek payment of
	1035	+	30 any outstanding proceeds, fees, or other amounts
	1036	+	31 (including voluntary tips, gratuities, or other donations)
	1037	+	32 under this chapter:
	1038	+	33 (i) on a date before; or
	1039	+	34 (ii) in an incorrect amount from;
	1040	+	35 the date or amount disclosed to the consumer. However, a
	1041	+	36 provider is not subject to the requirements of this clause
	1042	+	37 with respect to the payment of any outstanding proceeds,
	1043	+	38 fees, or other amounts incurred by a consumer through
	1044	+	39 fraudulent or other unlawful means.
	1045	+	40 Sec. 802. A provider required to be licensed under this chapter
	1046	+	41 shall not do any of the following:
	1047	+	42 (1) Share with an employer a portion of any:
	1048	+	HB 1125—LS 6811/DI 101 25
	1049	+	1 (A) fees; or
	1050	+	2 (B) voluntary tips, gratuities, or other donations;
	1051	+	3 received from or charged to a consumer for earned wage
	1052	+	4 access services.
	1053	+	5 (2) Use a consumer's consumer report (as defined in
	1054	+	6 IC 24-5-24-2) to determine:
	1055	+	7 (A) a consumer's eligibility for earned wage access
	1056	+	8 services;
	1057	+	9 (B) the amount of proceeds that a consumer is eligible to
	1058	+	10 request or receive in an earned wage access services
	1059	+	11 transaction; or
	1060	+	12 (C) the frequency with which proceeds may be provided to
	1061	+	13 a consumer through earned wage access services
	1062	+	14 transactions.
	1063	+	15 (3) Accept payment of outstanding proceeds, fees, or
	1064	+	16 voluntary tips, gratuities, or other donations by means of a
	1065	+	17 credit card (as defined in IC 24-5-27.5-3).
	1066	+	18 (4) Charge or collect a late fee, a deferral fee, interest, or any
	1067	+	19 other charge or penalty for a consumer's failure to pay
	1068	+	20 outstanding proceeds, fees, or voluntary tips, gratuities, or
	1069	+	21 other donations.
	1070	+	22 (5) Report to:
	1071	+	23 (A) a consumer reporting agency (as defined in
	1072	+	24 IC 24-5-24-3); or
	1073	+	25 (B) a debt collector;
	1074	+	26 any information regarding a consumer's failure to repay to
	1075	+	27 the provider any outstanding proceeds, fees, or voluntary tips,
	1076	+	28 gratuities, or other donations.
	1077	+	29 (6) Compel or attempt to compel a consumer to pay to the
	1078	+	30 provider any outstanding proceeds, fees, or voluntary tips,
	1079	+	31 gratuities, or other donations through any of the following
	1080	+	32 means:
	1081	+	33 (A) The use of unsolicited outbound telephone calls to the
	1082	+	34 consumer.
	1083	+	35 (B) A suit against the consumer in a court of competent
	1084	+	36 jurisdiction.
	1085	+	37 (C) The use of a third party to pursue collection from the
	1086	+	38 consumer on the provider's behalf.
	1087	+	39 (D) The sale of outstanding amounts to a third party
	1088	+	40 collector or debt buyer for collection from the consumer.
	1089	+	41 However, this subdivision does not preclude a provider from
	1090	+	42 using any of the means set forth in clauses (A) through (D) to
	1091	+	HB 1125—LS 6811/DI 101 26
	1092	+	1 pursue payment of outstanding amounts incurred by a
	1093	+	2 consumer through fraudulent or other unlawful means, or
	1094	+	3 from pursuing any available remedies against an employer for
	1095	+	4 breach of the employer's contractual obligations to the
	1096	+	5 provider.
	1097	+	6 (7) If the provider solicits, charges, or receives a tip, gratuity,
	1098	+	7 or other donation from a consumer:
	1099	+	8 (A) mislead or deceive consumers about the voluntary
	1100	+	9 nature of the tips, gratuities, or donations; or
	1101	+	10 (B) represent that tips, gratuities, or donations will benefit
	1102	+	11 any specific individuals.
	1103	+	12 (8) If the provider also offers small loans to consumers under
	1104	+	13 IC 24-4.5-7:
	1105	+	14 (A) provide proceeds to a consumer who has a small loan
	1106	+	15 outstanding from that provider, as verified by the provider
	1107	+	16 in accordance with IC 24-4.5-7-404(4); or
	1108	+	17 (B) make a small loan to a consumer who has outstanding
	1109	+	18 proceeds from that provider.
	1110	+	19 Sec. 901. (a) A license issued by the department under this
	1111	+	20 chapter may be revoked or suspended by the department if the
	1112	+	21 person fails to:
	1113	+	22 (1) file any renewal form required by the department; or
	1114	+	23 (2) pay any license renewal fee described under section
	1115	+	24 506(a)(1) of this chapter;
	1116	+	25 not later than sixty (60) days after the due date.
	1117	+	26 (b) A person whose license is revoked or suspended under this
	1118	+	27 section may:
	1119	+	28 (1) pay all delinquent fees and apply for a reinstatement of the
	1120	+	29 person's license; or
	1121	+	30 (2) appeal the revocation or suspension to the department in
	1122	+	31 an administrative review under IC 4-21.5-3.
	1123	+	32 Pending the decision resulting from a hearing under IC 4-21.5-3
	1124	+	33 concerning license revocation or suspension, a license remains in
	1125	+	34 force.
	1126	+	35 Sec. 902. Except as otherwise provided, IC 4-21.5 applies to and
	1127	+	36 governs all agency action taken by the department under this
	1128	+	37 chapter. A proceeding for administrative review under IC 4-21.5-3
	1129	+	38 or judicial review under IC 4-21.5-5 must be held in Marion
	1130	+	39 County.
	1131	+	40 Sec. 903. (a) If the department determines, after notice and an
	1132	+	41 opportunity to be heard, that a person has violated this chapter,
	1133	+	42 the department may, in addition to or instead of all other remedies
	1134	+	HB 1125—LS 6811/DI 101 27
	1135	+	1 available under this chapter, impose upon the person a civil
	1136	+	2 penalty not greater than ten thousand dollars ($10,000) per
	1137	+	3 violation.
	1138	+	4 (b) A penalty collected under this section shall be deposited into
	1139	+	5 the financial institutions fund established by IC 28-11-2-9.
	1140	+	6 Sec. 904. The director, in the exercise of reasonable judgment,
	1141	+	7 is authorized to compromise, settle, and collect civil penalties from
	1142	+	8 a person for a violation of:
	1143	+	9 (1) a provision of this chapter; or
	1144	+	10 (2) an order issued or promulgated pursuant to this chapter.
	1145	+	11 Sec. 905. If it appears to the director that a person has
	1146	+	12 committed or is about to commit a violation of a provision of this
	1147	+	13 chapter or an order of the director, the director may apply to a
	1148	+	14 court having jurisdiction for:
	1149	+	15 (1) an order enjoining the person from violating or continuing
	1150	+	16 to violate this chapter or the order; or
	1151	+	17 (2) injunctive or other relief;
	1152	+	18 as the nature of the case may require.
	1153	+	19 Sec. 906. (a) The director may enter into a consent order with
	1154	+	20 a person to resolve a matter arising under this chapter.
	1155	+	21 (b) A consent order must:
	1156	+	22 (1) be signed by the person to whom it is issued or by an
	1157	+	23 authorized representative of that person; and
	1158	+	24 (2) indicate agreement to the terms contained within the
	1159	+	25 consent order.
	1160	+	26 (c) A consent order does not:
	1161	+	27 (1) constitute an admission by a person that a provision of this
	1162	+	28 chapter or an order promulgated or issued under this chapter
	1163	+	29 has been violated; or
	1164	+	30 (2) constitute a finding by the director that the person has
	1165	+	31 violated a provision of this chapter or an order promulgated
	1166	+	32 or issued under this chapter.
	1167	+	33 (d) Notwithstanding the issuance of a consent order, the director
	1168	+	34 may seek civil or criminal penalties or compromise civil penalties
	1169	+	35 concerning matters encompassed by the consent order, unless the
	1170	+	36 consent order by its terms expressly precludes the director from
	1171	+	37 doing so.
	1172	+	38 Sec. 907. A person who knowingly or intentionally:
	1173	+	39 (1) makes a material false statement, or omits a material
	1174	+	40 entry, in a document filed or required to be filed under this
	1175	+	41 chapter, with the intent to deceive the recipient of the
	1176	+	42 document; or
	1177	+	HB 1125—LS 6811/DI 101 28
	1178	+	1 (2) fails to file a document required to be filed under this
	1179	+	2 chapter;
	1180	+	3 commits a Class A misdemeanor.
	1181	+	4 Sec. 1001. (a) Rules promulgated by the director or the
	1182	+	5 department under this chapter must be adopted in accordance with
	1183	+	6 IC 4-22-2.
	1184	+	7 (b) At the time the director or department files a notice of
	1185	+	8 proposed adoption, amendment, or repeal of a rule under this
	1186	+	9 chapter for public comment, a copy of the notice must be sent by
	1187	+	10 first class mail postage prepaid to all licensees and applicants for
	1188	+	11 licenses under this chapter as of the time the notice is sent.
	1189	+	12 Sec. 1002. (a) Notwithstanding any other provision of law,
	1190	+	13 earned wage access services offered or provided by a licensee in
	1191	+	14 accordance with this chapter are not considered to be any of the
	1192	+	15 following:
	1193	+	16 (1) A violation of, or noncompliance with, any Indiana law
	1194	+	17 governing deductions from payroll, salary, wages,
	1195	+	18 compensation, or other income.
	1196	+	19 (2) A violation of, or noncompliance with, any Indiana law
	1197	+	20 governing:
	1198	+	21 (A) the purchase of;
	1199	+	22 (B) the sale or assignment of; or
	1200	+	23 (C) an order for;
	1201	+	24 earned but unpaid income.
	1202	+	25 (3) A loan or other form of credit or debt.
	1203	+	26 (4) Money transmission (as defined in IC 28-8-4.1-201(19)).
	1204	+	27 (b) Notwithstanding any other provision of law, a licensee that
	1205	+	28 offers or provides earned wage access services in accordance with
	1206	+	29 this chapter is not considered to be any of the following solely by
	1207	+	30 reason of offering or providing the earned wage access services:
	1208	+	31 (1) A lender, creditor, credit services organization (as defined
	1209	+	32 in IC 24-5-15-2), or debt collector.
	1210	+	33 (2) A money transmitter for purposes of IC 28-8-4.1.
	1211	+	34 However, this subsection does not exempt a licensee under this
	1212	+	35 chapter from complying with section 802(8) of this chapter, as
	1213	+	36 applicable.
	1214	+	37 (c) Notwithstanding any other provision of law:
	1215	+	38 (1) fees; or
	1216	+	39 (2) voluntary tips, gratuities, or other donations;
	1217	+	40 paid by a consumer to a licensee in accordance with this chapter
	1218	+	41 are not considered to be interest or finance charges.
	1219	+	42 (d) If there is a conflict between the provisions of this chapter
	1220	+	HB 1125—LS 6811/DI 101 29
	1221	+	1 and any other Indiana law, the provisions of this chapter control.
	1222	+	2 Sec. 1003. The division of consumer credit within the
	1223	+	3 department is responsible for administering this chapter.
	1224	+	4 SECTION 4. IC 28-11-1-3, AS AMENDED BY P.L.198-2023,
	1225	+	5 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1226	+	6 JULY 1, 2025]: Sec. 3. (a) The ultimate authority for and the powers,
	1227	+	7 duties, management, and control of the department are vested in the
	1228	+	8 following seven (7) members:
	1229	+	9 (1) The director of the department, who serves as an ex officio,
	1230	+	10 voting member.
	1231	+	11 (2) The following six (6) members appointed by the governor as
	1232	+	12 follows:
	1233	+	13 (A) Three (3) members must have practical experience at the
	1234	+	14 executive level of a:
	1235	+	15 (i) state chartered bank;
	1236	+	16 (ii) state chartered savings association; or
	1237	+	17 (iii) state chartered savings bank.
	1238	+	18 (B) One (1) member must have practical experience at the
	1239	+	19 executive level as a:
	1240	+	20 (i) lender licensed under IC 24-4.5;
	1241	+	21 (ii) mortgage lender licensed under IC 24-4.4;
	1242	+	22 (iii) registrant under IC 24-7;
	1243	+	23 (iv) licensee under IC 28-1-29;
	1244	+	24 (v) licensee under IC 28-7-5;
	1245	+	25 (vi) licensee under IC 28-8-4.1; or
	1246	+	26 (vii) licensee under IC 28-8-5; or
	1247	+	27 (viii) licensee under IC 28-8-6.
	1248	+	28 (C) One (1) member must have practical experience at the
	1249	+	29 executive level of a state chartered credit union.
	1250	+	30 (D) One (1) member must be appointed with due regard for the
	1251	+	31 consumer, agricultural, industrial, and commercial interests of
	1252	+	32 Indiana.
	1253	+	33 (b) Not more than three (3) members appointed by the governor
	1254	+	34 under subsection (a)(2) after June 30, 2006, may be affiliated with the
	1255	+	35 same political party.
	1256	+	36 SECTION 5. IC 35-52-28-11.1 IS ADDED TO THE INDIANA
	1257	+	37 CODE AS A NEW SECTION TO READ AS FOLLOWS
	1258	+	38 [EFFECTIVE JULY 1, 2025]: Sec. 11.1. IC 28-8-6-907 defines a
	1259	+	39 crime concerning financial services.
	1260	+	HB 1125—LS 6811/DI 101 30
1349	1261		COMMITTEE REPORT
1350	1262		Mr. Speaker: Your Committee on Financial Institutions, to which
1351	1263		was referred House Bill 1125, has had the same under consideration
1352	1264		and begs leave to report the same back to the House with the
1353	1265		recommendation that said bill be amended as follows:
1354	1266		Page 15, line 30, after "IC 28-11-3-5." insert "Until the department
1355	1267		establishes an initial license fee under IC 28-11-3-5, the initial
1356	1268		license fee shall be one thousand five hundred dollars ($1,500).".
1357	1269		Page 15, line 32, after "IC 28-11-3-5." insert "Until the department
1358	1270		establishes an examination fee schedule under IC 28-11-3-5 that is
1359	1271		applicable to an applicant under this chapter, the examination fee
1360	1272		schedule shall be the fee schedule applicable to persons licensed
1361	1273		under IC 24-4.5-7.".
1362	1274		Page 15, line 34, after "IC 28-11-3-5." insert "Until the department
1363	1275		establishes an annual renewal fee under IC 28-11-3-5, the annual
1364	1276		renewal fee shall be one thousand five hundred dollars ($1,500).".
1365	1277		Page 18, line 15, after "approval." insert "Until the department
1366	1278		establishes the nonrefundable fee under IC 28-11-3-5, the
1367	1279		nonrefundable fee shall be one thousand five hundred dollars
1368	1280		($1,500).".
1369	1281		Page 22, line 34, delete "but not more frequently than annually, a"
1370	1282		and insert "a quarterly".
1371	1283		and when so amended that said bill do pass.
1372	1284		(Reference is to HB 1125 as introduced.)
1373	1285		PIERCE K
1374	1286		Committee Vote: yeas 10, nays 3.
1375		-	_____
1376		-	COMMITTEE REPORT
1377		-	Mr. President: The Senate Committee on Insurance and Financial
1378		-	Institutions, to which was referred House Bill No. 1125, has had the
1379		-	same under consideration and begs leave to report the same back to the
1380		-	Senate with the recommendation that said bill be AMENDED as
1381		-	follows:
1382		-	Replace the effective dates in SECTIONS 1 through 5 with
1383		-	"[EFFECTIVE JANUARY 1, 2026]".
1384		-	Page 7, delete lines 25 through 31, begin a new line double block
1385		-	EH 1125—LS 6811/DI 101 33
1386		-	indented and insert:
1387		-	"(A) A service provider that is not contractually obligated
1388		-	to fund proceeds delivered as part of the earned wage
1389		-	access services, such as a payroll service provider that
1390		-	verifies a consumer's available earnings.".
1391		-	Page 7, between lines 35 and 36, begin a new line double block
1392		-	indented and insert:
1393		-	"(C) An entity that offers or provides earned wage access
1394		-	services and reports a consumer's payment or nonpayment
1395		-	of either outstanding proceeds of the earned wage access
1396		-	services or fees, voluntary tips, gratuities, or other
1397		-	donations in connection with the earned wage access
1398		-	services to a consumer reporting agency (as defined in the
1399		-	Federal Fair Credit Reporting Act (15 U.S.C. 1681 et
1400		-	seq.)).".
1401		-	Page 7, line 39, delete "institution." and insert "institution, which
1402		-	may provide earned wage access services in Indiana without
1403		-	obtaining a license under this chapter.".
1404		-	Page 15, line 30, delete "IC 28-11-3-5." and insert "IC 28-11-3-5,
1405		-	which shall not exceed two thousand five hundred dollars
1406		-	($2,500).".
1407		-	Page 15, line 34, delete "IC 28-11-3-5." and insert "IC 28-11-3-5,
1408		-	which shall not exceed one hundred dollars ($100) per hour.".
1409		-	Page 15, line 40, delete "IC 28-11-3-5." and insert "IC 28-11-3-5,
1410		-	which shall not exceed two thousand five hundred dollars
1411		-	($2,500).".
1412		-	Page 16, line 3, after "delinquent." insert "The fee described in this
1413		-	subsection shall not exceed fifty dollars ($50) per day.".
1414		-	Page 18, line 23, after "approval." insert "The nonrefundable fee
1415		-	established under this subdivision shall not exceed two thousand
1416		-	five hundred dollars ($2,500).".
1417		-	Page 23, line 9, after "subsection." insert "The fee established
1418		-	under this subsection shall not exceed fifty dollars ($50) per day.".
1419		-	Page 23, line 20, delete "and".
1420		-	Page 23, line 22, delete "offered." and insert "offered;".
1421		-	Page 23, between lines 22 and 23, begin a new line double block
1422		-	indented and insert:
1423		-	"(C) ensure that any no cost option offered is clearly
1424		-	displayed and is in the same:
1425		-	(i) color;
1426		-	(ii) font;
1427		-	(iii) font size; and
1428		-	EH 1125—LS 6811/DI 101 34
1429		-	(iv) general location;
1430		-	as any option to obtain proceeds that has a fee associated
1431		-	with it;
1432		-	(D) ensure that any option to obtain proceeds that has a fee
1433		-	associated with the delivery of the proceeds is not the
1434		-	default option;
1435		-	(E) ensure that if a consumer elects to not pay a tip,
1436		-	gratuity, or other donation, any fee amount charged to the
1437		-	consumer as part of an earned wage access services
1438		-	transaction is not increased because of the consumer's
1439		-	decision to not pay a tip, gratuity, or other donation; and
1440		-	(F) ensure that, if a consumer elects a no cost option,
1441		-	initiate the delivery of the proceeds to the consumer not
1442		-	later than one (1) business day after the consumer initiates
1443		-	an earned wage access services transaction with the
1444		-	provider.".
1445		-	Page 23, line 29, after "fact of" insert "or obtain the consent of the
1446		-	consumer to".
1447		-	Page 24, line 9, delete "and".
1448		-	Page 24, line 11, after "consumer;" insert "and
1449		-	(iii) the level or cost of any service provided to the
1450		-	consumer in connection with an earned wage access
1451		-	services transaction;".
1452		-	Page 24, between lines 39 and 40, begin a new line block indented
1453		-	and insert:
1454		-	"(10) Ensure that the provider's software application does not
1455		-	do any of the following:
1456		-	(A) Subject a user of the software application to unsolicited
1457		-	electronic mail advertisements or surveys, if the user has
1458		-	elected to not receive electronic mail advertisements or
1459		-	surveys, as required by 15 U.S.C. 7701-7713.
1460		-	(B) Subject a user of the software application to unsolicited
1461		-	electronic advertisements or surveys, based on the
1462		-	individual user's:
1463		-	(i) use of the provider's software application;
1464		-	(ii) location; or
1465		-	(iii) behavior;
1466		-	if the user has elected to not receive the electronic
1467		-	advertisements or surveys.
1468		-	(C) Display an unsolicited electronic notification to a user
1469		-	of the software application unless the user has elected to
1470		-	receive electronic notifications.
1471		-	EH 1125—LS 6811/DI 101 35
1472		-	(D) Access a user's location, except for purposes of
1473		-	verifying that a user is located in Indiana at the time the
1474		-	user creates an account with the provider, unless the user
1475		-	has authorized the provider's software application to
1476		-	access the user's location.
1477		-	(11) Ensure that any data that the provider receives under
1478		-	subdivision (10) is not sold or shared, except as follows:
1479		-	(A) In connection with a law enforcement investigation or
1480		-	legal proceeding.
1481		-	(B) As necessary to provide earned wage access services to
1482		-	the user.
1483		-	(C) The user authorizes the provider to sell or share the
1484		-	data.
1485		-	(12) Sell consumer data to a lender (as defined in
1486		-	IC 24-4.5-7-111) licensed under IC 24-4.5-7.
1487		-	(13) Share consumer data with a lender (as defined in
1488		-	IC 24-4.5-7-111) licensed under IC 24-4.5-7.".
1489		-	Page 25, line 5, after "consumer's" insert "credit score from a".
1490		-	Page 25, delete lines 22 through 28.
1491		-	Page 25, line 29, delete "(6)" and insert "(5)".
1492		-	Page 26, line 6, delete "(7)" and insert "(6)".
1493		-	Page 26, line 9, delete "donations; or" and insert "donations;".
1494		-	Page 26, line 11, delete "individuals." and insert "individuals; or
1495		-	(C) suggest a default tip, gratuity, or other donation
1496		-	amount greater than zero dollars ($0).".
1497		-	Page 26, line 12, delete "(8)" and insert "(7)".
1498		-	Page 26, between lines 18 and 19, begin a new paragraph and insert:
1499		-	"Sec. 803. A fee described in section 201(11)(A) of this chapter
1500		-	shall not exceed:
1501		-	(1) an amount; or
1502		-	(2) a percentage of the proceeds delivered to a consumer;
1503		-	that exceeds the limitation set forth in IC 28-8-5-17(a)(2).".
1504		-	Page 27, delete lines 38 through 42, begin a new paragraph and
1505		-	insert:
1506		-	"Sec. 907. (a) A person who knowingly or intentionally makes a
1507		-	material false statement, or omits a material entry, in a document
1508		-	filed or required to be filed under this chapter, with the intent to
1509		-	deceive the recipient of the document, commits a Class C
1510		-	misdemeanor.
1511		-	(b) A person who knowingly or intentionally fails to file a
1512		-	document required to be filed under this chapter, commits a Class
1513		-	D infraction. However, the person commits a Class C infraction for
1514		-	EH 1125—LS 6811/DI 101 36
1515		-	a subsequent offense.".
1516		-	Page 28, delete lines 1 through 3.
1517		-	Page 28, line 35, delete "section 802(8)" and insert "section 802(7)".
1518		-	Page 28, line 41, delete "charges." and insert "charges and shall
1519		-	not be subject to IC 35-45-7-2.".
1520		-	and when so amended that said bill do pass.
1521		-	(Reference is to HB 1125 as printed February 4, 2025.)
1522		-	BALDWIN, Chairperson
1523		-	Committee Vote: Yeas 7, Nays 1.
1524		-	EH 1125—LS 6811/DI 101
	1287	+	HB 1125—LS 6811/DI 101