FIRSTREGULARSESSION
HOUSEBILLNO.1113
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVECUPPS.
2576H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsection361.749,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
earnedwageaccessservices,withpenaltyprovisions.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section361.749,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection361.749,toreadasfollows:
361.749.1.Asusedinthissection,unlessthecontextclearlyindicatesotherwise,the
2followingtermsmean:
3 (1)"Consumer",anyindividual;
4 (2)"Consumer-directedwageaccessservices",thebusinessofofferingorproviding
5earnedwageaccessservicesdirectlytoaconsumerbasedontheconsumer'srepresentation
6andtheprovider'sreasonabledeterminationoftheconsumer'searnedbutunpaidincome;
7 (3)"Director",thedirectorofthedivisionoffinancewithinthedepartmentof
8commerceandinsurance;
9 (4)"Division",theMissouridivisionoffinancewithinthedepartmentofcommerce
10andinsurance;
11 (5)"Earnedbutunpaidincome",salary,wages,compensation,orotherincomethata
12consumeroranemployerhasrepresented,andthataproviderhasreasonablydetermined,has
13beenearnedorhasaccruedtothebenefitoftheconsumerinexchangefortheconsumer's
14provisionofservicestotheemployeroronbehalfoftheemployer,includingonanhourly,
15project-based,piecework,orotherbasisandincludingwheretheconsumerisactingasan
16independentcontractoroftheemployer,buthasnot,atthetimeofthepaymentofproceeds,
17beenpaidtotheconsumerbytheemployer;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (6)"Earnedwageaccessservices",thebusinessofprovidingconsumer-directedwage
19accessservices,employer-integratedwageaccessservices,orboth;
20 (7)"Employer":
21 (a)Apersonwhoemploysaconsumer;or
22 (b)Anyotherpersonwhoiscontractuallyobligatedtopayaconsumerearnedbut
23unpaidincomeinexchangeforaconsumer'sprovisionofservicestotheemployeroron
24behalfoftheemployer,includingonanhourly,project-based,piecework,orotherbasisand
25includingwheretheconsumerisactingasanindependentcontractorwithrespecttothe
26employer.
27
28"Employer"doesnotincludeacustomerofanemployeroranyotherpersonwhoseobligation
29tomakeapaymentofsalary,wages,compensation,orotherincometoaconsumerisnot
30basedontheprovisionofservicesbythatconsumerfororonbehalfofsuchperson;
31 (8)"Employer-integratedwageaccessservices",thebusinessofdeliveringto
32consumersaccesstoearnedbutunpaidincomethatisbasedonemployment,income,and
33attendancedataobtaineddirectlyorindirectlyfromanemployer;
34 (9)"Fee":
35 (a)Afeeimposedbyaproviderfordeliveryorexpediteddeliveryofproceedstoa
36consumer;
37 (b)Asubscriptionormembershipfeeimposedbyaproviderforabonafidegroupof
38servicesthatincludesearnedwageaccessservices;or
39 (c)Anamountpaidbyanemployertoaprovideronaconsumer'sbehalf,which
40entitlestheconsumertoreceiveproceedsatreducedornocosttotheconsumer.
41
42Avoluntarytip,gratuity,ordonationshallnotbedeemedafee;
43 (10)"Outstandingproceeds",apaymentofproceedstoaconsumerbyaproviderthat
44hasnotyetbeenrepaidtothatprovider;
45 (11)"Person",apartnership,corporation,association,soleproprietorship,limited
46liabilitycompany,ornonprofitorgovernmentalentity;
47 (12)"Proceeds",apaymentoffundstoaconsumerbyaproviderthatisbasedon
48earnedbutunpaidincome;
49 (13)"Provider",apersonwhoisinthebusinessofofferingandprovidingearned
50wageaccessservicestoconsumers.
51 2.(1)Nopersonshallengageinthebusinessofearnedwageaccessservicesinthis
52statewithoutfirstregisteringasanearnedwageaccessservicesproviderwiththedivision.
53 (2)Theannualregistrationfeeshallbeonethousanddollarspayabletothedivisionas
54ofthefirstdayofJulyofeachyear.Thedivisionmayestablishabiennialregistration
HB1113 2 55arrangement,butinnocaseshalltheregistrationfeebepayableformorethanoneyearata
56time.
57 (3)Registrationshallbemadeonformspreparedbythedirectorandshallcontainthe
58followinginformation:
59 (a)Name,businessaddress,andtelephonenumberoftheearnedwageaccessservices
60provider;
61 (b)Nameandbusinessaddressofcorporateofficersanddirectorsorprincipalsor
62partners;
63 (c)Aswornstatementbyanappropriateofficer,principal,orpartneroftheearned
64wageaccessservicesproviderthat:
65 a.Theproviderisfinanciallycapableofengaginginthebusinessofearnedwage
66accessservices;and
67 b.Ifacorporation,thatthecorporationisauthorizedtotransactbusinessinthisstate.
68
69Ifanymaterialchangeoccursintheinformationcontainedintheregistrationform,arevised
70statementshallbesubmittedtothedirector.
71 (4)Acertificateofregistrationshallbeissuedbythedirectorwithinthirtycalendar
72daysafterthedateonwhichallregistrationmaterialshavebeenreceivedbythedirectorand
73shallnotbeassignableortransferable,exceptasapprovedbythedirector.
74 (5)Eachcertificateofregistrationshallremaininfullforceandeffectuntil
75surrendered,revoked,orsuspended.
76 3.Thissectionshallnotapplyto:
77 (1)Abankorsavingsandloanassociationwhosedepositsoraccountsareeligiblefor
78insurancebytheFederalDepositInsuranceCorporation,orasubsidiaryofsuchabankor
79savingsandloanassociation;
80 (2)Acredituniondoingbusinessinthisstate;or
81 (3)Apersonauthorizedtomakeloansorextensionsofcreditunderthelawsofthis
82stateortheUnitedStates,whoissubjecttoregulationandsupervisionbythisstateorthe
83UnitedStates.
84 4.Eachprovidershall:
85 (1)Developandimplementpoliciesandprocedurestorespondtoquestionsraisedby
86consumersandaddresscomplaintsfromconsumersinanexpedientmanner;
87 (2)Beforeenteringintoanagreementwithaconsumerfortheprovisionofearned
88wageaccessservices,provideaconsumerwithawrittenpaperorelectronicdocument,which
89canbeincludedaspartofthecontracttoprovideearnedwageaccessservicesandwhich
90meetsallofthefollowingrequirements:
91 (a)Informstheconsumerofhisorherrightsundertheagreement;and
HB1113 3 92 (b)Fullyandclearlydisclosesallfeesassociatedwiththeearnedwageaccess
93services;
94 (3)Informtheconsumerofthefactofanymaterialchangestothetermsand
95conditionsoftheearnedwageaccessservicesbeforeimplementingthosechangesforthat
96consumer;
97 (4)Provideproceedstoaconsumerbyanymeansmutuallyagreeduponbythe
98consumerandprovider;
99 (5)Complywithalllocal,state,andfederalprivacyandinformationsecuritylaws;
100 (6)Inanycaseinwhichtheproviderwillseekrepaymentofoutstandingproceeds,
101fees,orotherpayments,includingvoluntarytips,gratuities,orotherdonationsfroma
102consumer'saccountatadepositoryinstitutionandincludingviaelectronicfundstransfer:
103 (a)ComplywithapplicableprovisionsofthefederalElectronicFundsTransferAct
104anditsimplementingregulations;and
105 (b)Reimbursetheconsumerforthefullamountofanyoverdraftornonsufficient
106fundsfeesimposedonaconsumerbytheconsumer'sdepositoryinstitutionthatwerecaused
107bytheproviderattemptingtoseekpaymentofanyoutstandingproceeds,fees,voluntarytips,
108gratuities,orotherdonationsonadatebefore,orinanincorrectamountfrom,thedateor
109amountdisclosedtotheconsumer.
110
111Theprovisionsofthissubdivisionshallnotapplywithrespecttopaymentsofoutstanding
112proceeds,fees,tips,gratuities,orotherdonationsincurredbyaconsumerthroughfraudulent
113orothermeans;and
114 (7)Ifaprovidersolicits,charges,orreceivesatip,gratuity,ordonationfroma
115consumer:
116 (a)Clearlyandconspicuouslydisclosetotheconsumerimmediatelypriortoeach
117transactionthatatip,gratuity,ordonationamountmaybezeroandisvoluntary;
118 (b)Clearlyandconspicuouslydiscloseinitsservicecontractwiththeconsumerand
119elsewherethattips,gratuities,ordonationsarevoluntaryandthattheofferingofearnedwage
120accessservices,includingtheamountoftheproceedsaconsumeriseligibletorequestandthe
121frequencywithwhichproceedsareprovidedtoaconsumer,isnotcontingentonwhetherthe
122consumerpaysanytip,gratuity,ordonationoronthesizeofanytip,gratuity,ordonation;
123 (c)Refrainfrommisleadingordeceivingconsumersaboutthevoluntarynatureof
124suchtips,gratuities,ordonations;and
125 (d)Refrainfrommakingrepresentationsthattipsorgratuitieswillbenefitany
126specific,individualperson.
127 5.(1)Aprovidershallnot:
HB1113 4 128 [(1)](a)Sharewithanemployeranyfees,voluntarytips,gratuities,orother
129donationsthatwerereceivedfromorchargedtoaconsumerforearnedwageaccessservices;
130 [(2)](b)Chargeinterestforfailuretorepayoutstandingproceeds,fees,voluntary
131tips,gratuities,orotherdonations;
132 [(3)](c)Reportanyinformationabouttheconsumerregardingtheinabilityofthe
133providertoberepaidoutstandingproceeds,fees,voluntarytips,gratuities,orotherdonations
134toaconsumercreditreportingagencyoradebtcollector;
135 [(4)](d)Requireaconsumer'screditreportorcreditscoretodetermineaconsumer's
136eligibilityforearnedwageaccessservices;
137 [(5)](e)Acceptpaymentfromaconsumerofoutstandingproceeds,fees,voluntary
138tips,gratuities,orotherdonationsviacreditcardorchargecard;or
139 [(6)](f)Compelorattempttocompelrepaymentbyaconsumerofoutstanding
140proceeds,fees,voluntarytips,gratuities,orotherdonationsthroughanyofthefollowing
141means:
142 [(a)]a.Asuitagainsttheconsumerinacourtofcompetentjurisdiction;
143 [(b)]b.Useofathirdpartytopursuecollectionfromtheconsumerontheprovider's
144behalf;or
145 [(c)]c.Saleofoutstandingamountstoathird-partycollectorordebtbuyerfor
146collectionfromtheconsumer.
147 (2)Theprovisionsofthis[subdivision] subsectionshallnotapplytopaymentsof
148outstandingproceeds,fees,tips,gratuities,orotherdonationsincurredbyaconsumerthrough
149fraudulentorothermeansorprecludeaproviderfrompursuinganemployerforbreachofits
150contractualobligationstotheprovider.
151 6.Forpurposesofthelawsofthisstate:
152 (1)Earnedwageaccessservicesofferedandprovidedbyaregisteredprovidershall
153notbeconsideredtobeanyofthefollowing:
154 (a)Aviolationofornoncompliancewiththelawsgoverningthesaleorassignmentof
155oranorderforearnedbutunpaidincome;
156 (b)Aloanorotherformofcredit,andtheprovidershallnotbeconsideredacreditor
157oralender;
158 (c)Moneytransmission,andtheprovidershallnotbeconsideredamoney
159transmitter;
160 (2)Fees,voluntarytips,gratuities,orotherdonationsshallnotbeconsideredinterest
161orfinancecharges.
162 7.Thedirector,orhisorherdulyauthorizedrepresentative,maymakesuch
163investigationasisdeemednecessaryand,totheextentnecessaryforthispurpose,may
164examinetheregistrantoranyotherpersonhavingpersonalknowledgeofthemattersunder
HB1113 5 165investigation,andshallhavethepowertocompeltheproductionofallrelevantbooks,
166records,accounts,anddocumentsbyregistrants.
167 8.(1)Anearnedwageaccessservicesprovidershallmaintainrecordsofitsearned
168wageaccessservicestransactionsandshallpreserveitsrecordsforatleasttwoyearsafterthe
169finaldateonwhichitprovidesproceedstoaconsumer.
170 (2)Recordsrequiredbythissectionmaybemaintainedelectronically.
171 9.Thedivisionmaypromulgaterulesasmaybenecessaryfortheadministrationof
172thissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
173createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplies
174withandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.
175Thissectionandchapter536arenonseverableandifanyofthepowersvestedwiththe
176generalassemblypursuanttochapter536toreview,todelaytheeffectivedate,orto
177disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof
178rulemakingauthorityandanyruleproposedoradoptedafterAugust28,2023,shallbeinvalid
179andvoid.
180 10.(1)Anyproviderregisteredpursuanttothissectionwhofails,refuses,orneglects
181tocomplywiththeprovisionsofthissectionorcommitsanycriminalactmayhaveits
182registrationsuspendedorrevokedbythedirector,afterahearingbeforethedirectoronan
183orderofthedirectortoshowcausewhysuchorderofsuspensionorrevocationshouldnotbe
184enteredspecifyingthegroundstherefor,whichshallbeservedontheregistrantatleastten
185dayspriortothehearing.
186 (2)Wheneveritshallappeartothedirectorthatanyproviderregisteredpursuantto
187thissectionisfailing,refusing,orneglectingtomakeagoodfaithefforttocomplywiththe
188provisionsofthissection,thedirectormayissueanordertoceaseanddesist,whichorder
189maybeenforceablebyacivilpenaltyofnotmorethanonethousanddollarsperdayforeach
190daythattheneglect,failure,orrefusalshallcontinue.Thepenaltyshallbeassessedand
191collectedbythedirector.Indeterminingtheamountofthepenalty,thedirectorshalltakeinto
192accounttheappropriatenessofthepenaltywithrespecttothegravityoftheviolation,the
193historyofpreviousviolations,andsuchothermattersasjusticemayrequire.
194 11.Allrevenuescollectedbyorpaidtothedirectorpursuanttothissectionshallbe
195forwardedimmediatelytothedirectorofrevenue,whoshalldeposittheminthedivisionof
196financefund.
197 12.Anyearnedwageaccessservicesproviderknowinglyandwillfullyviolatingthe
198provisionsofthissectionshallbeguiltyofaclassAmisdemeanor.
HB1113 6 199 13.Ifthereisaconflictbetweentheprovisionsofthissectionandanyotherstate
200statute,theprovisionsofthissectionshallcontrol.
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HB1113 7