Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4456 Compare Versions

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2	2	HOUSE DOCKET, NO. 4863 FILED ON: 2/5/2024
3	3	HOUSE . . . . . . . . . . . . . . . No. 4456
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Mark J. Cusack
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to financial technology services.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Mark J. Cusack5th Norfolk2/1/2024 1 of 16
16	16	HOUSE DOCKET, NO. 4863 FILED ON: 2/5/2024
17	17	HOUSE . . . . . . . . . . . . . . . No. 4456
18	18	By Representative Cusack of Braintree, a petition (subject to Joint Rule 12) of Mark J. Cusack
19	19	relative to licensing of earned wage access services providers by the Division of Banks.
20	20	Financial Services.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Third General Court
24	24	(2023-2024)
25	25	_______________
26	26	An Act relative to financial technology services.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. The Massachusetts General Laws, as so appearing in the 2022 Official
30	30	2Edition, are hereby amended by inserting after Chapter 140E, the following chapter:-
31	31	3 CHAPTER 140F: Licensing of Earned Wage Access Services Providers
32	32	4 Section 1. Definitions. For the purpose of this chapter, the following terms shall, unless
33	33	5the context indicates otherwise, have the following meanings:
34	34	6 ''Commissioner'', the commissioner of banks.
35	35	7 “Consumer”, any individual. who resides in the commonwealth. A provider may use the
36	36	8mailing address or state of residence provided by a consumer to determine the consumer's state
37	37	9of residence for purposes of this part. 2 of 16
38	38	10 “Consumer-directed wage access services”, the business of offering or providing earned
39	39	11wage access services directly to a consumer based on the consumer’s representation and the
40	40	12provider’s reasonable determination of the consumer’s earned but unpaid income.
41	41	13 “Earned but unpaid income”, salary, wages, compensation, or other income that a
42	42	14consumer or an employer has represented, and that a provider has reasonably determined, has
43	43	15been earned or has accrued to the benefit of the consumer in exchange for the consumer’s
44	44	16provision of services to the employer or on behalf of the employer, including on an hourly,
45	45	17project-based, piecework, or other basis and including where the consumer is acting as an
46	46	18independent contractor of the employer, but has not, at the time of the payment of proceeds, been
47	47	19paid to the consumer by the employer.
48	48	20 “Earned wage access services”, the business of providing consumer-directed wage access
49	49	21services, employer-integrated wage access services, or both.
50	50	22 “Employer”, (1) a person who employs a consumer; or (2) any other person who is
51	51	23contractually obligated to pay a consumer earned but unpaid income in exchange for a
52	52	24consumer’s provision of services to the employer or on behalf of the employer, including on an
53	53	25hourly, project-based, piecework, or other basis and including where the consumer is acting as an
54	54	26independent contractor with respect to the employer. “Employer” does not mean a customer of
55	55	27an employer or any other person whose obligation to make a payment of salary, wages,
56	56	28compensation, or other income to a consumer is not based on the provision of services by that
57	57	29consumer for or on behalf of such person. 3 of 16
58	58	30 “Employer-integrated wage access services”, the business of delivering to consumers
59	59	31access to earned but unpaid income that is based on employment, income, or attendance data
60	60	32obtained directly or indirectly from an employer.
61	61	33 “Fee”, (1) a fee imposed by a provider for delivery or expedited delivery of proceeds to a
62	62	34consumer; (2) a subscription or membership fee imposed by a provider for a bona fide group of
63	63	35services that includes earned wage access services; or (3) an amount paid by an employer to a
64	64	36provider on a consumer’s behalf, which entitles the consumer to receive proceeds at reduced or
65	65	37no cost to the consumer.
66	66	38 ''Multi-state licensing system'', a system involving 1 or more states, the District of
67	67	39Columbia, or the Commonwealth of Puerto Rico for the sharing of regulatory information and
68	68	40the licensing and application processes, by electronic or other means, for mortgage lenders,
69	69	41mortgage brokers, and other financial services providers.
70	70	42 “Outstanding proceeds”, a payment of proceeds to a consumer by a provider that has not
71	71	43yet been repaid to that provider.
72	72	44 “Person”, a business entity other than an individual.
73	73	45 “Provider”, a person who is in the business of offering and providing earned wage access
74	74	46services to consumers.
75	75	47 Section 2. License requirement; exempted entities. No person shall act as an earned wage
76	76	48access services provider without first obtaining a license from the commissioner.
77	77	49 The provisions of this chapter shall not apply to a bank as defined in section one of
78	78	50chapter one hundred and sixty-seven, a national banking association, a federally chartered credit 4 of 16
79	79	51union, a federal savings and loan association, a federal savings bank, or any subsidiary or
80	80	52affiliate of the above, or to any bank, trust company, savings bank, savings and loan association,
81	81	53or credit union organized under the laws of any other state.
82	82	54 The commissioner may adopt, amend or repeal rules and regulations, which may include
83	83	55an adequate capitalization requirement for earned wage access services providers, to aid in the
84	84	56administration and enforcement of this chapter.
85	85	57 Section 3. License application; multi-state licensing system. The application for a license
86	86	58shall be in a form prescribed by the commissioner and shall contain the name and address or
87	87	59addresses where the headquarters of the applicant is located and if the applicant is a partnership,
88	88	60association, corporation, or other form of business organization, the names and addresses of each
89	89	61member, director, principal officer thereof, and, if applicable, any individual acting as a manager
90	90	62of an office location. Such application shall also include a description of the activities of the
91	91	63applicant, in such detail and for such periods as the commissioner may require, as well as such
92	92	64further information as the commissioner may require. The commissioner may require a
93	93	65background investigation of each applicant for a license by means of fingerprint checks by the
94	94	66department of criminal justice information services pursuant to section 172 of chapter 6, and the
95	95	67Federal Bureau of Investigation for state and national criminal history record checks. If the
96	96	68applicant is a partnership, association, corporation or other form of business organization, the
97	97	69commissioner may require such background investigation by means of fingerprint checks on
98	98	70each member, director, principal officer of such applicant, and, if applicable, any individual
99	99	71acting as a manager of an office location. Receipt of criminal history record information by a
100	100	72private entity shall be prohibited. Each application for a license shall be accompanied by an 5 of 16
101	101	73investigation fee. Investigation and license fees shall be determined annually by the
102	102	74commissioner of administration under section 3B of chapter 7.
103	103	75 The commissioner may participate in a multi-state licensing system for the sharing of
104	104	76regulatory information and for the licensing and application, by electronic or other means, of
105	105	77entities engaged in the business of offering or providing earned wage access services. The
106	106	78commissioner may establish requirements for participation by an applicant in a multi-state
107	107	79licensing system which may vary from the provisions of this section and section 5. The applicant
108	108	80shall pay directly to the multi-state licensing system any additional fees relating to participation
109	109	81in the multi-state licensing system.
110	110	82 Section 4. Issuance of license by commissioner; notice of license denial; appeal. Upon
111	111	83the filing of an application for a license, if the commissioner finds that the financial
112	112	84responsibility, character, reputation, integrity and general fitness of the applicant, and of the
113	113	85partners or members thereof if the applicant is a partnership or association, and of the officers,
114	114	86directors and principal employees if the applicant is a corporation, are such as to warrant belief
115	115	87that the business will be operated honestly, fairly, soundly and efficiently in the public interest
116	116	88consistent with the purposes of this chapter, he shall thereupon issue the applicant a license to
117	117	89engage in the business of an earned wage access services provider. If the commissioner shall not
118	118	90so find, he shall not issue a license and he shall notify the applicant of the denial. Within twenty
119	119	91days thereafter, he shall enter upon his records a written decision and findings containing the
120	120	92reasons supporting the denial and shall forthwith give written notice thereof by registered mail to
121	121	93the applicant. Within thirty days after the date of such notice, the applicant may appeal from such
122	122	94denial to the superior court for Suffolk county, sitting in equity. The court shall hear all pertinent
123	123	95evidence and determine the facts and upon the facts as so determined, review said denial and, as 6 of 16
124	124	96justice and equity may require, affirm the same or order the commissioner to issue such license.
125	125	97The commissioner shall approve or deny every application for a license within ninety days after
126	126	98the filing thereof, but any failure of the commissioner to act within such period shall not be
127	127	99deemed to be an approval of any such application.
128	128	100 Section 5. Information on license; changes; notice requirements. Each license shall state
129	129	101the name of the licensee and shall state the address at which the business is to be conducted or
130	130	102shall state that the licensee’s business will be conducted entirely online. If a licensee intends to
131	131	103carry on such business at any place in addition to the address on the license, he shall so notify the
132	132	104commissioner, in writing, at least 30 days prior thereto, and he shall pay a fee for such additional
133	133	105location at a reasonable cost as determined by the commissioner. Such notice shall contain the
134	134	106address of any such additional location and such other information as the commissioner may
135	135	107require; provided, however, that any such business shall at all times be conducted in the name of
136	136	108the licensee as it appears on the license. A copy of such license shall be prominently posted in
137	137	109each place of business of the licensee or, if the licensee conducts business online, shall be posted
138	138	110on the licensee’s internet web site. Such copies for places of business at addresses other than that
139	139	111appearing on the license may be obtained at a reasonable cost, as determined by the
140	140	112commissioner. Such license shall not be transferable or assignable and shall expire annually on a
141	141	113date determined by the commissioner. Any change of location or closing of a place of business
142	142	114of the licensee, either at the address stated on the license or at a place other than said address
143	143	115stated on the license, shall require prior written notice thereof to the commissioner. Such notice
144	144	116shall be in writing setting forth the reason therefor and shall be filed with the commissioner at
145	145	117least thirty days prior to any such relocation or closing. If there shall be any change among the
146	146	118members, officers, partners or directors of any licensee, the licensee shall notify the 7 of 16
147	147	119commissioner in a timely manner of the name, address and occupation of each new member,
148	148	120officer, partner or director, and provide such other information as the commissioner may require.
149	149	121 Section 6. Requirements applicable to persons required to be licensed. A person required
150	150	122to be licensed under this part shall comply with the following requirements:
151	151	123 Develop and implement policies and procedures to respond to questions raised by
152	152	124consumers and address complaints from consumers in an expedient manner.
153	153	125 Whenever it offers a consumer the option to receive proceeds for a fee, offer that
154	154	126consumer at least one reasonable option to obtain proceeds at no cost and clearly explain how to
155	155	127elect that no-cost option.
156	156	128 Before entering into an agreement with a consumer for the provision of earned wage
157	157	129access services, do both of the following: (1) Inform the consumer of his or her rights under the
158	158	130agreement; (2) Inform the consumer that the agreement is not intended to create a legal
159	159	131obligation for the consumer to repay advances; and (3) Fully and clearly disclose all fees
160	160	132associated with the earned wage access services.
161	161	133 Inform the consumer of the fact of any material changes to the terms and conditions of
162	162	134the earned wage access services before implementing those changes for that consumer.
163	163	135 Allow the consumer to cancel use of the provider’s earned wage access services at any
164	164	136time, without incurring a cancellation fee imposed by the provider.
165	165	137 Comply with all applicable local, state, and federal privacy and information security
166	166	138laws. 8 of 16
167	167	139 If a provider solicits, charges, or receives a tip, gratuity, or other donation from a
168	168	140consumer, do both of the following: (1) Clearly and conspicuously disclose to the consumer
169	169	141immediately prior to each transaction that a tip, gratuity, or other donation amount may be zero
170	170	142and is voluntary; (2) Clearly and conspicuously disclose in its service contract with the consumer
171	171	143and elsewhere that tips, gratuities, or donations are voluntary and that the offering of earned
172	172	144wage access services, including the amount of proceeds a consumer is eligible to request and the
173	173	145frequency with which proceeds are provided to a consumer, is not contingent on whether the
174	174	146consumer pays any tip, gratuity, or other donation or on the size of the tip, gratuity, or other
175	175	147donation.
176	176	148 Provide proceeds to a consumer by any means mutually agreed upon by the consumer
177	177	149and the provider.
178	178	150 If the provider will seek repayment of outstanding proceeds or payment of fees or other
179	179	151amounts owed, including voluntary tips, gratuities, or other donations, in connection with the
180	180	152activities covered by this chapter, from a consumer’s depository institution, including by means
181	181	153of electronic funds transfer, do both of the following: (1) Comply with applicable provisions of
182	182	154the federal Electronic Funds Transfer Act, 15 USC 1693 et. seq., and regulations adopted under
183	183	155that Act; and (2) Reimburse the consumer for the full amount of any overdraft or non-sufficient
184	184	156funds fees imposed on a consumer by the consumer's depository institution that were caused by
185	185	157the provider attempting to seek payment of any outstanding proceeds, fees, or other payments, in
186	186	158connection with the activities covered by this chapter, including voluntary tips, gratuities, or
187	187	159other donations, on a date before, or in an incorrect amount from, the date or amount disclosed to
188	188	160the consumer. However, the provider is not subject to the requirements of this subdivision with 9 of 16
189	189	161respect to payments of outstanding amounts or fees incurred by a consumer through fraudulent or
190	190	162other unlawful means.
191	191	163 Section 7. Prohibitions applicable to persons required to be licensed. A person required to
192	192	164be licensed under this part shall not do any of the following:
193	193	165 (a) Share with an employer a portion of any fees, voluntary tips, gratuities, or other
194	194	166donations that were received from or charged to a consumer for earned wage access services.
195	195	167 (b) Require a consumer's credit report or a credit score provided or issued by a consumer
196	196	168reporting agency to determine a consumer's eligibility for earned wage access services.
197	197	169 (c) Accept payment of outstanding proceeds, fees, voluntary tips, gratuities, or other
198	198	170donations from a consumer by means of a credit card or charge card.
199	199	171 (d) Charge a late fee, deferral fee, interest, or any other charge for failure to pay
200	200	172outstanding proceeds, fees, voluntary tips, gratuities, or other donations.
201	201	173 (e) Report to a consumer reporting agency or debt collector any information about the
202	202	174consumer regarding the inability of the provider to be repaid outstanding proceeds, fees,
203	203	175voluntary tips, gratuities, or other donations.
204	204	176 (f) Compel or attempt to compel payment by a consumer of outstanding proceeds, fees,
205	205	177voluntary tips, gratuities, or other donations to the provider through any of the following means:
206	206	178(1) Use of unsolicited outbound telephone calls; (2) A suit against the consumer in a court of
207	207	179competent jurisdiction; (3) Use of a third party to pursue collection from the consumer on the
208	208	180provider’s behalf; or (4) Sale of outstanding amounts to a third party collector or debt buyer for
209	209	181collection from the consumer. However, this subdivision does not preclude the use by a provider 10 of 16
210	210	182of any of the foregoing methods to compel payment of outstanding amounts or fees incurred by a
211	211	183consumer through fraudulent or other unlawful means, nor do they preclude a provider from
212	212	184pursuing an employer for breach of its contractual obligations to the provider.
213	213	185 (g) If the provider solicits, charges, or receives tips, gratuities, or other donations from a
214	214	186consumer, mislead or deceive consumers about the voluntary nature of the tips, gratuities, or
215	215	187donations or make representations that tips, gratuities, or other donations will benefit any
216	216	188specific individuals.
217	217	189 Section 8: License suspension or revocation; notice and hearing. The commissioner may
218	218	190suspend or revoke any license issued pursuant to this chapter if said commissioner finds that:
219	219	191 (i) the licensee has violated any provision of this chapter or any rule or regulation
220	220	192adopted hereunder, or any other law applicable to the conduct of its business; or
221	221	193 (ii) any fact or condition exists which, if it had existed at the time of the original
222	222	194application for such license, would have warranted the commissioner in refusing to issue such
223	223	195license.
224	224	196 Except as provided in section nine, no license shall be revoked or suspended except after
225	225	197notice and a hearing thereon pursuant to chapter thirty A.
226	226	198 A licensee may surrender a license by delivering to the commissioner written notice that
227	227	199it thereby surrenders such license, but such surrender shall not affect the civil or criminal liability
228	228	200of the licensee for acts committed before such surrender.
229	229	201 No revocation, suspension or surrender of any license shall impair or affect the obligation
230	230	202of any pre-existing lawful contract between the licensee and any person. 11 of 16
231	231	203 Section 9: Commissioner's order to cease and desist from unlawful act or practice; prior
232	232	204notice and opportunity for hearing; temporary order. (a) If the commissioner determines, after
233	233	205giving notice of and opportunity for a hearing, that a licensee has engaged in or is about to
234	234	206engage in an act or practice constituting a violation of a provision of this chapter or a rule,
235	235	207regulation or order hereunder, he may order such licensee to cease and desist from such unlawful
236	236	208act or practice and take such affirmative action as in his judgment will effect the purposes of this
237	237	209chapter.
238	238	210 (b) If the commissioner makes written findings of fact that the public interest will be
239	239	211irreparably harmed by delay in issuing an order under subsection (a) he may issue a temporary
240	240	212cease and desist order. Upon the entry of a temporary cease and desist order, the commissioner
241	241	213shall promptly notify, in writing, the licensee affected thereby that such order has been so
242	242	214entered, the reasons therefor, and that within twenty days after the receipt of a written request
243	243	215from such licensee, the matter will be scheduled for hearing to determine whether or not such
244	244	216temporary order shall become permanent and final. If no such hearing is requested and none is
245	245	217ordered by the commissioner, the order shall remain in effect until it is modified or vacated by
246	246	218the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of
247	247	219and opportunity for a hearing to the licensee subject to said order, shall, by written finding of
248	248	220facts and conclusions of law, vacate, modify or make permanent the order.
249	249	221 (c) No order under this section, except an order issued pursuant to subsection (b), may be
250	250	222entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
251	251	223modify an order under this section upon finding that the conditions which required such an order
252	252	224have changed and that it is in the public interest to so vacate or modify. 12 of 16
253	253	225 Any order issued pursuant to this section shall be subject to review as provided in chapter
254	254	226thirty A.
255	255	227 Section 10: Annual report; examination of business records. Each licensee shall annually,
256	256	228on or before a date determined by the commissioner, file a report with the commissioner
257	257	229containing such information as said commissioner may require concerning the business and
258	258	230operations conducted by the licensee in the commonwealth during the preceding calendar year. A
259	259	231licensee neglecting to file such report or failing to amend the same within fifteen days of notice
260	260	232from said commissioner directing the same shall, unless such neglect or failure is due to
261	261	233justifiable cause and not due to wilful neglect, pay to the commonwealth fifty dollars for each
262	262	234day during which such neglect or failure continues.
263	263	235 A licensee shall keep and use such business records in such form and at such location as
264	264	236said commissioner shall, by regulation, determine, which shall enable said commissioner to
265	265	237determine whether such licensee is complying with the provisions of this chapter and any rules
266	266	238or regulations promulgated hereunder by said commissioner and any other law, rule or regulation
267	267	239applicable to the conduct of the business for which it is licensed under this chapter. Such
268	268	240regulations may contain provisions for the suspension or revocation of licenses for violations
269	269	241hereof and for such records to be recorded, copied or reproduced by photographic, photostatic,
270	270	242microfilm, microcard, miniature photographic, electronic, including, but not limited to, optical
271	271	243imaging, or other process which accurately reproduces or forms a durable medium for
272	272	244reproducing the original record or document or in any other form or manner authorized by the
273	273	245commissioner; provided, however, that nothing in this section shall be construed to permit any
274	274	246such licensee to destroy original records or documents. Each such licensee shall preserve all such
275	275	247business records for as long a period as the commissioner shall prescribe by regulation. 13 of 16
276	276	248Notwithstanding the provisions of any general or special law or the Massachusetts Rules of Civil
277	277	249Procedure to the contrary, service of a subpoena for business records upon a licensee, delivered
278	278	250to an office of such licensee located within the commonwealth or delivered to a licensee’s agent
279	279	251for service of process, shall be deemed to have been served at the location, whether within or
280	280	252outside the commonwealth, where the original business records or documents are kept or
281	281	253maintained.
282	282	254 The commissioner may inspect a licensee's relevant records and evidence of compliance
283	283	255with the provisions of this chapter or any rule or regulation issued hereunder and with any other
284	284	256law, rule or regulation applicable to the conduct of the business for which it is licensed under this
285	285	257chapter. For the purposes of such inspection, the commissioner or a representative of the
286	286	258commissioner shall have access to the offices and place of business, books, accounts, papers,
287	287	259records and files of all such licensees. The commissioner, and any person designated by him,
288	288	260may require the attendance and testimony of any person whom the commissioner deems
289	289	261necessary relative to the conduct and operation of such business. The total cost for any such
290	290	262inspection, which shall be paid by the licensee within 30 days after the receipt of an invoice
291	291	263therefore, shall be in accordance with fees determined annually by the commissioner of
292	292	264administration pursuant to section 3B of chapter 7, including expenses for necessary travel
293	293	265outside the commonwealth for the purposes of conducting such inspections.
294	294	266 The commissioner shall adopt regulations implementing the requirements of this section.
295	295	267 The commissioner shall preserve a full record of each such examination of a licensee,
296	296	268including a statement of its condition. All records of investigation and reports of examination by
297	297	269the commissioner, including work papers, information derived from such reports or in response 14 of 16
298	298	270to such reports, and any copies thereof in the possession of any licensee under the supervision of
299	299	271the commissioner, shall be confidential and privileged communications, shall not be subject to
300	300	272subpoena and shall not be a public record under clause Twenty-sixth of section 7 of chapter 4.
301	301	273For the purpose of this paragraph, records of investigation and reports of examinations shall
302	302	274include records of investigation and reports of examinations conducted by any financial
303	303	275institution regulatory agency of the federal government and any other state, and of any foreign
304	304	276government which are considered confidential by such agency or foreign government and which
305	305	277are in possession of the commissioner. In any proceeding before a court, the court may issue a
306	306	278protective order to seal the record protecting the confidentiality of any such record, other than
307	307	279any such record on file with the court or filed in connection with the court proceeding, and the
308	308	280court may exclude the public from any portion of a proceeding at which any such record may be
309	309	281disclosed. Copies of such reports of examination shall be furnished to a licensee for its use only
310	310	282and shall not be exhibited to any other person, organization or agency without prior written
311	311	283approval by the commissioner. The commissioner may, in his discretion, furnish to regulatory
312	312	284agencies of the federal government, of other states, or of foreign countries and any law
313	313	285enforcement agency, such information, reports, inspections and statements relating to the
314	314	286licensees under his supervision.
315	315	287 Section 11: Civil actions filed by the commissioner. The commissioner may enforce the
316	316	288provisions of this chapter, or restrain any violations thereof, by filing a civil action in any court
317	317	289of competent jurisdiction.
318	318	290 Section 12: Penalties. (a) Whenever the commissioner finds that a person has violated
319	319	291section 2 or any rule or regulation promulgated thereunder, the commissioner may, by order, in
320	320	292addition to any other action authorized under this chapter or any rule or regulation made 15 of 16
321	321	293thereunder, impose a penalty upon the person which shall not exceed $1,000, plus the costs of
322	322	294investigation. The penalty provision of this section shall be in addition to, and not in lieu of, any
323	323	295other law applicable to a licensee or other person for violating section 2 or any rule or regulation
324	324	296made thereunder.
325	325	297 (b) Whenever the commissioner finds that any licensee or exempt person under section 2
326	326	298has violated this chapter or any regulation, rule or order adopted thereunder, the commissioner
327	327	299may, by order, in addition to any other action authorized under this chapter or any rule or
328	328	300regulation made thereunder, impose a penalty upon the person which shall not exceed $500 for
329	329	301each violation, plus the costs of investigation.
330	330	302 (c) Any findings or order issued by the commissioner pursuant to this section shall be
331	331	303subject to review as provided in chapter 30A.
332	332	304 Section 13. Applicability of other state laws. (a) Notwithstanding any other provision of
333	333	305law, earned wage access services offered and provided by a licensee in accordance with this
334	334	306chapter shall not be considered to be any of the following: (1) a violation of or noncompliance
335	335	307with any law of this state governing the sale or assignment of, or an order for, earned but unpaid
336	336	308income; (2) a loan or other form of credit or debt, nor shall the provider be considered a creditor,
337	337	309debt collector, or lender with respect thereto; (3) money transmission, nor shall the provider be
338	338	310considered a money transmitter for purposes of any law of this state.
339	339	311 (b) Notwithstanding any other provision of law, fees, voluntary tips, gratuities, or other
340	340	312donations paid by a consumer to a licensee in accordance with this part shall not be considered
341	341	313interest or finance charges. If there is a conflict between the provisions of this chapter and any
342	342	314other state statute, the provisions of this chapter control. 16 of 16
343	343	315 Section 14. Coverage of providers operating in the commonwealth prior to enactment of
344	344	316this chapter. A person who, as of January 1, 2024, was engaged in the business of providing
345	345	317earned wage access services in the commonwealth may, until July 1, 2025, continue to engage in
346	346	318the business of providing earned wage access services in the commonwealth without obtaining a
347	347	319license pursuant to Section 2 if the person submits an application for such a license before
348	348	320January 1, 2025, and otherwise complies with this chapter.