| 1 | 1 | | FIRSTREGULARSESSION |
|---|
| 2 | 2 | | HOUSEBILLNO.576 |
|---|
| 3 | 3 | | 103RDGENERALASSEMBLY |
|---|
| 4 | 4 | | INTRODUCEDBYREPRESENTATIVEDAVIDSON. |
|---|
| 5 | 5 | | 1436H.01I DANARADEMANMILLER,ChiefClerk |
|---|
| 6 | 6 | | ANACT |
|---|
| 7 | 7 | | Torepealsection361.749,RSMo,andtoenactinlieuthereofonenewsectionrelatingto |
|---|
| 8 | 8 | | earnedwageaccessservices,withpenaltyprovisions. |
|---|
| 9 | 9 | | BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: |
|---|
| 10 | 10 | | SectionA.Section361.749,RSMo,isrepealedandonenewsectionenactedinlieu |
|---|
| 11 | 11 | | 2thereof,tobeknownassection361.749,toreadasfollows: |
|---|
| 12 | 12 | | 361.749.1.Asusedinthissection,unlessthecontextclearlyindicatesotherwise,the |
|---|
| 13 | 13 | | 2followingtermsmean: |
|---|
| 14 | 14 | | 3 (1)"Consumer",anyindividual; |
|---|
| 15 | 15 | | 4 (2)"Consumer-directedwageaccessservices",thebusinessofofferingorproviding |
|---|
| 16 | 16 | | 5earnedwageaccessservicesdirectlytoaconsumerbasedontheconsumer'srepresentation |
|---|
| 17 | 17 | | 6andtheprovider'sreasonabledeterminationoftheconsumer'searnedbutunpaidincome; |
|---|
| 18 | 18 | | 7 (3)"Director",thedirectorofthedivisionoffinancewithinthedepartmentof |
|---|
| 19 | 19 | | 8commerceandinsurance; |
|---|
| 20 | 20 | | 9 (4)"Division",theMissouridivisionoffinancewithinthedepartmentofcommerce |
|---|
| 21 | 21 | | 10andinsurance; |
|---|
| 22 | 22 | | 11 (5)"Earnedbutunpaidincome",salary,wages,compensation,orotherincomethata |
|---|
| 23 | 23 | | 12consumeroranemployerhasrepresented,andthataproviderhasreasonablydetermined,has |
|---|
| 24 | 24 | | 13beenearnedorhasaccruedtothebenefitoftheconsumerinexchangefortheconsumer's |
|---|
| 25 | 25 | | 14provisionofservicestotheemployeroronbehalfoftheemployer,includingonanhourly, |
|---|
| 26 | 26 | | 15project-based,piecework,orotherbasisandincludingwheretheconsumerisactingasan |
|---|
| 27 | 27 | | 16independentcontractoroftheemployer,buthasnot,atthetimeofthepaymentofproceeds, |
|---|
| 28 | 28 | | 17beenpaidtotheconsumerbytheemployer; |
|---|
| 29 | 29 | | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
|---|
| 30 | 30 | | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (6)"Earnedwageaccessservices",thebusinessofprovidingconsumer-directedwage |
|---|
| 31 | 31 | | 19accessservices,employer-integratedwageaccessservices,orboth; |
|---|
| 32 | 32 | | 20 (7)"Employer": |
|---|
| 33 | 33 | | 21 (a)Apersonwhoemploysaconsumer;or |
|---|
| 34 | 34 | | 22 (b)Anyotherpersonwhoiscontractuallyobligatedtopayaconsumerearnedbut |
|---|
| 35 | 35 | | 23unpaidincomeinexchangeforaconsumer'sprovisionofservicestotheemployeroron |
|---|
| 36 | 36 | | 24behalfoftheemployer,includingonanhourly,project-based,piecework,orotherbasisand |
|---|
| 37 | 37 | | 25includingwheretheconsumerisactingasanindependentcontractorwithrespecttothe |
|---|
| 38 | 38 | | 26employer. |
|---|
| 39 | 39 | | 27 |
|---|
| 40 | 40 | | 28"Employer"doesnotincludeacustomerofanemployeroranyotherpersonwhoseobligation |
|---|
| 41 | 41 | | 29tomakeapaymentofsalary,wages,compensation,orotherincometoaconsumerisnot |
|---|
| 42 | 42 | | 30basedontheprovisionofservicesbythatconsumerfororonbehalfofsuchperson; |
|---|
| 43 | 43 | | 31 (8)"Employer-integratedwageaccessservices",thebusinessofdeliveringto |
|---|
| 44 | 44 | | 32consumersaccesstoearnedbutunpaidincomethatisbasedonemployment,income,and |
|---|
| 45 | 45 | | 33attendancedataobtaineddirectlyorindirectlyfromanemployer; |
|---|
| 46 | 46 | | 34 (9)"Fee": |
|---|
| 47 | 47 | | 35 (a)Afeeimposedbyaproviderfordeliveryorexpediteddeliveryofproceedstoa |
|---|
| 48 | 48 | | 36consumer; |
|---|
| 49 | 49 | | 37 (b)Asubscriptionormembershipfeeimposedbyaproviderforabonafidegroupof |
|---|
| 50 | 50 | | 38servicesthatincludesearnedwageaccessservices;or |
|---|
| 51 | 51 | | 39 (c)Anamountpaidbyanemployertoaprovideronaconsumer'sbehalf,which |
|---|
| 52 | 52 | | 40entitlestheconsumertoreceiveproceedsatreducedornocosttotheconsumer. |
|---|
| 53 | 53 | | 41 |
|---|
| 54 | 54 | | 42Avoluntarytip,gratuity,ordonationshallnotbedeemedafee; |
|---|
| 55 | 55 | | 43 (10)"Outstandingproceeds",apaymentofproceedstoaconsumerbyaproviderthat |
|---|
| 56 | 56 | | 44hasnotyetbeenrepaidtothatprovider; |
|---|
| 57 | 57 | | 45 (11)"Person",apartnership,corporation,association,soleproprietorship,limited |
|---|
| 58 | 58 | | 46liabilitycompany,ornonprofitorgovernmentalentity; |
|---|
| 59 | 59 | | 47 (12)"Proceeds",apaymentoffundstoaconsumerbyaproviderthatisbasedon |
|---|
| 60 | 60 | | 48earnedbutunpaidincome; |
|---|
| 61 | 61 | | 49 (13)"Provider",apersonwhoisinthebusinessofofferingandprovidingearned |
|---|
| 62 | 62 | | 50wageaccessservicestoconsumers. |
|---|
| 63 | 63 | | 51 2.(1)Nopersonshallengageinthebusinessofearnedwageaccessservicesinthis |
|---|
| 64 | 64 | | 52statewithoutfirstregisteringasanearnedwageaccessservicesproviderwiththedivision. |
|---|
| 65 | 65 | | 53 (2)Theannualregistrationfeeshallbeonethousanddollarspayabletothedivisionas |
|---|
| 66 | 66 | | 54ofthefirstdayofJulyofeachyear.Thedivisionmayestablishabiennialregistration |
|---|
| 67 | 67 | | HB576 2 55arrangement,butinnocaseshalltheregistrationfeebepayableformorethanoneyearata |
|---|
| 68 | 68 | | 56time. |
|---|
| 69 | 69 | | 57 (3)Registrationshallbemadeonformspreparedbythedirectorandshallcontainthe |
|---|
| 70 | 70 | | 58followinginformation: |
|---|
| 71 | 71 | | 59 (a)Name,businessaddress,andtelephonenumberoftheearnedwageaccessservices |
|---|
| 72 | 72 | | 60provider; |
|---|
| 73 | 73 | | 61 (b)Nameandbusinessaddressofcorporateofficersanddirectorsorprincipalsor |
|---|
| 74 | 74 | | 62partners; |
|---|
| 75 | 75 | | 63 (c)Aswornstatementbyanappropriateofficer,principal,orpartneroftheearned |
|---|
| 76 | 76 | | 64wageaccessservicesproviderthat: |
|---|
| 77 | 77 | | 65 a.Theproviderisfinanciallycapableofengaginginthebusinessofearnedwage |
|---|
| 78 | 78 | | 66accessservices;and |
|---|
| 79 | 79 | | 67 b.Ifacorporation,thatthecorporationisauthorizedtotransactbusinessinthisstate. |
|---|
| 80 | 80 | | 68 |
|---|
| 81 | 81 | | 69Ifanymaterialchangeoccursintheinformationcontainedintheregistrationform,arevised |
|---|
| 82 | 82 | | 70statementshallbesubmittedtothedirector. |
|---|
| 83 | 83 | | 71 (4)Acertificateofregistrationshallbeissuedbythedirectorwithinthirtycalendar |
|---|
| 84 | 84 | | 72daysafterthedateonwhichallregistrationmaterialshavebeenreceivedbythedirectorand |
|---|
| 85 | 85 | | 73shallnotbeassignableortransferable,exceptasapprovedbythedirector. |
|---|
| 86 | 86 | | 74 (5)Eachcertificateofregistrationshallremaininfullforceandeffectuntil |
|---|
| 87 | 87 | | 75surrendered,revoked,orsuspended. |
|---|
| 88 | 88 | | 76 3.Thissectionshallnotapplyto: |
|---|
| 89 | 89 | | 77 (1)Abankorsavingsandloanassociationwhosedepositsoraccountsareeligiblefor |
|---|
| 90 | 90 | | 78insurancebytheFederalDepositInsuranceCorporation,orasubsidiaryofsuchabankor |
|---|
| 91 | 91 | | 79savingsandloanassociation; |
|---|
| 92 | 92 | | 80 (2)Acredituniondoingbusinessinthisstate;or |
|---|
| 93 | 93 | | 81 (3)Apersonauthorizedtomakeloansorextensionsofcreditunderthelawsofthis |
|---|
| 94 | 94 | | 82stateortheUnitedStates,whoissubjecttoregulationandsupervisionbythisstateorthe |
|---|
| 95 | 95 | | 83UnitedStates. |
|---|
| 96 | 96 | | 84 4.Eachprovidershall: |
|---|
| 97 | 97 | | 85 (1)Developandimplementpoliciesandprocedurestorespondtoquestionsraisedby |
|---|
| 98 | 98 | | 86consumersandaddresscomplaintsfromconsumersinanexpedientmanner; |
|---|
| 99 | 99 | | 87 (2)Beforeenteringintoanagreementwithaconsumerfortheprovisionofearned |
|---|
| 100 | 100 | | 88wageaccessservices,provideaconsumerwithawrittenpaperorelectronicdocument,which |
|---|
| 101 | 101 | | 89canbeincludedaspartofthecontracttoprovideearnedwageaccessservicesandwhich |
|---|
| 102 | 102 | | 90meetsallofthefollowingrequirements: |
|---|
| 103 | 103 | | 91 (a)Informstheconsumerofhisorherrightsundertheagreement;and |
|---|
| 104 | 104 | | HB576 3 92 (b)Fullyandclearlydisclosesallfeesassociatedwiththeearnedwageaccess |
|---|
| 105 | 105 | | 93services; |
|---|
| 106 | 106 | | 94 (3)Informtheconsumerofthefactofanymaterialchangestothetermsand |
|---|
| 107 | 107 | | 95conditionsoftheearnedwageaccessservicesbeforeimplementingthosechangesforthat |
|---|
| 108 | 108 | | 96consumer; |
|---|
| 109 | 109 | | 97 (4)Provideproceedstoaconsumerbyanymeansmutuallyagreeduponbythe |
|---|
| 110 | 110 | | 98consumerandprovider; |
|---|
| 111 | 111 | | 99 (5)Complywithalllocal,state,andfederalprivacyandinformationsecuritylaws; |
|---|
| 112 | 112 | | 100 (6)Inanycaseinwhichtheproviderwillseekrepaymentofoutstandingproceeds, |
|---|
| 113 | 113 | | 101fees,orotherpayments,includingvoluntarytips,gratuities,orotherdonationsfroma |
|---|
| 114 | 114 | | 102consumer'saccountatadepositoryinstitutionandincludingviaelectronicfundstransfer: |
|---|
| 115 | 115 | | 103 (a)ComplywithapplicableprovisionsofthefederalElectronicFundsTransferAct |
|---|
| 116 | 116 | | 104anditsimplementingregulations;and |
|---|
| 117 | 117 | | 105 (b)Reimbursetheconsumerforthefullamountofanyoverdraftornonsufficient |
|---|
| 118 | 118 | | 106fundsfeesimposedonaconsumerbytheconsumer'sdepositoryinstitutionthatwerecaused |
|---|
| 119 | 119 | | 107bytheproviderattemptingtoseekpaymentofanyoutstandingproceeds,fees,voluntarytips, |
|---|
| 120 | 120 | | 108gratuities,orotherdonationsonadatebefore,orinanincorrectamountfrom,thedateor |
|---|
| 121 | 121 | | 109amountdisclosedtotheconsumer. |
|---|
| 122 | 122 | | 110 |
|---|
| 123 | 123 | | 111Theprovisionsofthissubdivisionshallnotapplywithrespecttopaymentsofoutstanding |
|---|
| 124 | 124 | | 112proceeds,fees,tips,gratuities,orotherdonationsincurredbyaconsumerthroughfraudulent |
|---|
| 125 | 125 | | 113orothermeans;and |
|---|
| 126 | 126 | | 114 (7)Ifaprovidersolicits,charges,orreceivesatip,gratuity,ordonationfroma |
|---|
| 127 | 127 | | 115consumer: |
|---|
| 128 | 128 | | 116 (a)Clearlyandconspicuouslydisclosetotheconsumerimmediatelypriortoeach |
|---|
| 129 | 129 | | 117transactionthatatip,gratuity,ordonationamountmaybezeroandisvoluntary; |
|---|
| 130 | 130 | | 118 (b)Clearlyandconspicuouslydiscloseinitsservicecontractwiththeconsumerand |
|---|
| 131 | 131 | | 119elsewherethattips,gratuities,ordonationsarevoluntaryandthattheofferingofearnedwage |
|---|
| 132 | 132 | | 120accessservices,includingtheamountoftheproceedsaconsumeriseligibletorequestandthe |
|---|
| 133 | 133 | | 121frequencywithwhichproceedsareprovidedtoaconsumer,isnotcontingentonwhetherthe |
|---|
| 134 | 134 | | 122consumerpaysanytip,gratuity,ordonationoronthesizeofanytip,gratuity,ordonation; |
|---|
| 135 | 135 | | 123 (c)Refrainfrommisleadingordeceivingconsumersaboutthevoluntarynatureof |
|---|
| 136 | 136 | | 124suchtips,gratuities,ordonations;and |
|---|
| 137 | 137 | | 125 (d)Refrainfrommakingrepresentationsthattipsorgratuitieswillbenefitany |
|---|
| 138 | 138 | | 126specific,individualperson. |
|---|
| 139 | 139 | | 127 5.(1)Aprovidershallnot: |
|---|
| 140 | 140 | | HB576 4 128 [(1)](a)Sharewithanemployeranyfees,voluntarytips,gratuities,orother |
|---|
| 141 | 141 | | 129donationsthatwerereceivedfromorchargedtoaconsumerforearnedwageaccessservices; |
|---|
| 142 | 142 | | 130 [(2)](b)Chargeinterestforfailuretorepayoutstandingproceeds,fees,voluntary |
|---|
| 143 | 143 | | 131tips,gratuities,orotherdonations; |
|---|
| 144 | 144 | | 132 [(3)](c)Reportanyinformationabouttheconsumerregardingtheinabilityofthe |
|---|
| 145 | 145 | | 133providertoberepaidoutstandingproceeds,fees,voluntarytips,gratuities,orotherdonations |
|---|
| 146 | 146 | | 134toaconsumercreditreportingagencyoradebtcollector; |
|---|
| 147 | 147 | | 135 [(4)](d)Requireaconsumer'screditreportorcreditscoretodetermineaconsumer's |
|---|
| 148 | 148 | | 136eligibilityforearnedwageaccessservices; |
|---|
| 149 | 149 | | 137 [(5)](e)Acceptpaymentfromaconsumerofoutstandingproceeds,fees,voluntary |
|---|
| 150 | 150 | | 138tips,gratuities,orotherdonationsviacreditcardorchargecard;or |
|---|
| 151 | 151 | | 139 [(6)](f)Compelorattempttocompelrepaymentbyaconsumerofoutstanding |
|---|
| 152 | 152 | | 140proceeds,fees,voluntarytips,gratuities,orotherdonationsthroughanyofthefollowing |
|---|
| 153 | 153 | | 141means: |
|---|
| 154 | 154 | | 142 [(a)]a.Asuitagainsttheconsumerinacourtofcompetentjurisdiction; |
|---|
| 155 | 155 | | 143 [(b)]b.Useofathirdpartytopursuecollectionfromtheconsumerontheprovider's |
|---|
| 156 | 156 | | 144behalf;or |
|---|
| 157 | 157 | | 145 [(c)]c.Saleofoutstandingamountstoathird-partycollectorordebtbuyerfor |
|---|
| 158 | 158 | | 146collectionfromtheconsumer. |
|---|
| 159 | 159 | | 147 (2)Theprovisionsofthis[subdivision] subsectionshallnotapplytopaymentsof |
|---|
| 160 | 160 | | 148outstandingproceeds,fees,tips,gratuities,orotherdonationsincurredbyaconsumerthrough |
|---|
| 161 | 161 | | 149fraudulentorothermeansorprecludeaproviderfrompursuinganemployerforbreachofits |
|---|
| 162 | 162 | | 150contractualobligationstotheprovider. |
|---|
| 163 | 163 | | 151 6.Forpurposesofthelawsofthisstate: |
|---|
| 164 | 164 | | 152 (1)Earnedwageaccessservicesofferedandprovidedbyaregisteredprovidershall |
|---|
| 165 | 165 | | 153notbeconsideredtobeanyofthefollowing: |
|---|
| 166 | 166 | | 154 (a)Aviolationofornoncompliancewiththelawsgoverningthesaleorassignmentof |
|---|
| 167 | 167 | | 155oranorderforearnedbutunpaidincome; |
|---|
| 168 | 168 | | 156 (b)Aloanorotherformofcredit,andtheprovidershallnotbeconsideredacreditor |
|---|
| 169 | 169 | | 157oralender; |
|---|
| 170 | 170 | | 158 (c)Moneytransmission,andtheprovidershallnotbeconsideredamoney |
|---|
| 171 | 171 | | 159transmitter; |
|---|
| 172 | 172 | | 160 (2)Fees,voluntarytips,gratuities,orotherdonationsshallnotbeconsideredinterest |
|---|
| 173 | 173 | | 161orfinancecharges. |
|---|
| 174 | 174 | | 162 7.Thedirector,orhisorherdulyauthorizedrepresentative,maymakesuch |
|---|
| 175 | 175 | | 163investigationasisdeemednecessaryand,totheextentnecessaryforthispurpose,may |
|---|
| 176 | 176 | | 164examinetheregistrantoranyotherpersonhavingpersonalknowledgeofthemattersunder |
|---|
| 177 | 177 | | HB576 5 165investigation,andshallhavethepowertocompeltheproductionofallrelevantbooks, |
|---|
| 178 | 178 | | 166records,accounts,anddocumentsbyregistrants. |
|---|
| 179 | 179 | | 167 8.(1)Anearnedwageaccessservicesprovidershallmaintainrecordsofitsearned |
|---|
| 180 | 180 | | 168wageaccessservicestransactionsandshallpreserveitsrecordsforatleasttwoyearsafterthe |
|---|
| 181 | 181 | | 169finaldateonwhichitprovidesproceedstoaconsumer. |
|---|
| 182 | 182 | | 170 (2)Recordsrequiredbythissectionmaybemaintainedelectronically. |
|---|
| 183 | 183 | | 171 9.Thedivisionmaypromulgaterulesasmaybenecessaryfortheadministrationof |
|---|
| 184 | 184 | | 172thissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis |
|---|
| 185 | 185 | | 173createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplies |
|---|
| 186 | 186 | | 174withandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028. |
|---|
| 187 | 187 | | 175Thissectionandchapter536arenonseverableandifanyofthepowersvestedwiththe |
|---|
| 188 | 188 | | 176generalassemblypursuanttochapter536toreview,todelaytheeffectivedate,orto |
|---|
| 189 | 189 | | 177disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof |
|---|
| 190 | 190 | | 178rulemakingauthorityandanyruleproposedoradoptedafterAugust28,2023,shallbeinvalid |
|---|
| 191 | 191 | | 179andvoid. |
|---|
| 192 | 192 | | 180 10.(1)Anyproviderregisteredpursuanttothissectionwhofails,refuses,orneglects |
|---|
| 193 | 193 | | 181tocomplywiththeprovisionsofthissectionorcommitsanycriminalactmayhaveits |
|---|
| 194 | 194 | | 182registrationsuspendedorrevokedbythedirector,afterahearingbeforethedirectoronan |
|---|
| 195 | 195 | | 183orderofthedirectortoshowcausewhysuchorderofsuspensionorrevocationshouldnotbe |
|---|
| 196 | 196 | | 184enteredspecifyingthegroundstherefor,whichshallbeservedontheregistrantatleastten |
|---|
| 197 | 197 | | 185dayspriortothehearing. |
|---|
| 198 | 198 | | 186 (2)Wheneveritshallappeartothedirectorthatanyproviderregisteredpursuantto |
|---|
| 199 | 199 | | 187thissectionisfailing,refusing,orneglectingtomakeagoodfaithefforttocomplywiththe |
|---|
| 200 | 200 | | 188provisionsofthissection,thedirectormayissueanordertoceaseanddesist,whichorder |
|---|
| 201 | 201 | | 189maybeenforceablebyacivilpenaltyofnotmorethanonethousanddollarsperdayforeach |
|---|
| 202 | 202 | | 190daythattheneglect,failure,orrefusalshallcontinue.Thepenaltyshallbeassessedand |
|---|
| 203 | 203 | | 191collectedbythedirector.Indeterminingtheamountofthepenalty,thedirectorshalltakeinto |
|---|
| 204 | 204 | | 192accounttheappropriatenessofthepenaltywithrespecttothegravityoftheviolation,the |
|---|
| 205 | 205 | | 193historyofpreviousviolations,andsuchothermattersasjusticemayrequire. |
|---|
| 206 | 206 | | 194 11.Allrevenuescollectedbyorpaidtothedirectorpursuanttothissectionshallbe |
|---|
| 207 | 207 | | 195forwardedimmediatelytothedirectorofrevenue,whoshalldeposittheminthedivisionof |
|---|
| 208 | 208 | | 196financefund. |
|---|
| 209 | 209 | | 197 12.Anyearnedwageaccessservicesproviderknowinglyandwillfullyviolatingthe |
|---|
| 210 | 210 | | 198provisionsofthissectionshallbeguiltyofaclassAmisdemeanor. |
|---|
| 211 | 211 | | HB576 6 199 13.Ifthereisaconflictbetweentheprovisionsofthissectionandanyotherstate |
|---|
| 212 | 212 | | 200statute,theprovisionsofthissectionshallcontrol. |
|---|
| 213 | 213 | | âś” |
|---|
| 214 | 214 | | HB576 7 |
|---|