UNOFFICIAL COPY 24 RS BR 1157
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AN ACT relating to earned wage advances. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘SECTION 1. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Consumer" includes an employee; and 6
(b) "Earned wage advance transaction": 7
1. Means: 8
a. An advance of earned wages, salary, commissions, or other 9
compensation for services; or 10
b. Any other advance or payment in money, funds, or credit in 11
exchange for, or that is secured by, a sale, assignment, or order 12
for the payment of earned wages, salary, commissions, or other 13
compensation for services; and 14
2. Does not include: 15
a. A consumer loan made by a consumer loan company under 16
Subtitle 4 of KRS Chapter 286; or 17
b. A deferred deposit transaction entered into by a deferred deposit 18
service business under Subtitle 9 of KRS Chapter 286. 19
(2) An earned wage advance transaction shall be deemed a loan without regard to: 20
(a) The means of collection; 21
(b) Whether the lender has legal recourse against the borrower in the event of 22
nonpayment; or 23
(c) Whether the transaction involves required charges or payments by the 24
consumer. 25
(3) A person shall not: 26
(a) Solicit, offer, or enter into an earned wage advance transaction that 27 UNOFFICIAL COPY 24 RS BR 1157
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requires or permits the payment of any consideration, whether voluntary or 1
required, by a consumer that exceeds the following: 2
1. Three dollars ($3) for the first transaction within a calendar month; 3
2. Two dollars ($2) for the second transaction within a calendar month; 4
3. One dollar ($1) for the third transaction within a calendar month; and 5
4. Zero dollars ($0) for the fourth or any subsequent transaction within a 6
calendar month; or 7
(b) Solicit or accept any gift or gratuity in connection with an earned wage 8
advance transaction. 9
(4) (a) A violation of this section shall be deemed to be an unfair, false, misleading, 10
or deceptive act or practice in the conduct of trade or commerce in violation 11
of KRS 367.170. 12
(b) All of the remedies, powers, and duties provided to the Attorney General or 13
any other person under KRS 367.110 to 367.300, and the penalties provided 14
in KRS 367.990, pertaining to acts and practices declared unlawful by KRS 15
367.170, shall apply with equal force and effect to a violation of this section. 16
(5) (a) The remedies and penalties prescribed in this section shall be cumulative. 17
(b) Nothing in this section shall be construed to limit or restrict the powers, 18
duties, remedies, or penalties available to the Attorney General, the 19
Commonwealth, or any other person under any other statutory or common 20
law. 21
(6) The Attorney General may promulgate administrative regulations in accordance 22
with KRS Chapter 13A necessary to effectuate, or as an aid to the effectuation of, 23
the proper enforcement of this section. 24