EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 293
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR CRAWFORD.
1100S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 361.749, RSMo, and to enact in lieu thereof one new section relating to earned
wage access services, with penalty provisions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 361.749, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 361.749, 2
to read as follows:3
361.749. 1. As used in this section, unless the 1
context clearly indicates otherwise, the following terms 2
mean: 3
(1) "Consumer", any individual; 4
(2) "Consumer-directed wage access services", the 5
business of offering or providing earned wa ge access 6
services directly to a consumer based on the consumer's 7
representation and the provider's reasonable determination 8
of the consumer's earned but unpaid income; 9
(3) "Director", the director of the division of 10
finance within the department of commerce and insurance; 11
(4) "Division", the Missouri division of finance 12
within the department of commerce and insurance; 13
(5) "Earned but unpaid income", salary, wages, 14
compensation, or other income that a consumer or an employer 15
has represented, and that a provider has reasonably 16
determined, has been earned or has accrued to the benefit of 17
the consumer in exchange for the consumer's provision of 18 SB 293 2
services to the employer or on behalf of the employer, 19
including on an hourly, project -based, piecework, or other 20
basis and including where the consumer is acting as an 21
independent contractor of the employer, but has not, at the 22
time of the payment of proceeds, been paid to the consumer 23
by the employer; 24
(6) "Earned wage access servic es", the business of 25
providing consumer-directed wage access services, employer - 26
integrated wage access services, or both; 27
(7) "Employer": 28
(a) A person who employs a consumer; or 29
(b) Any other person who is contractually obligated to 30
pay a consumer earned but unpaid income in exchange for a 31
consumer's provision of services to the employer or on 32
behalf of the employer, including on an hourly, project - 33
based, piecework, or other basis and including where the 34
consumer is acting as an ind ependent contractor with respect 35
to the employer. 36
"Employer" does not include a customer of an employer or any 37
other person whose obligation to make a payment of salary, 38
wages, compensation, or other income to a consumer is not 39
based on the provision o f services by that consumer for or 40
on behalf of such person; 41
(8) "Employer-integrated wage access services", the 42
business of delivering to consumers access to earned but 43
unpaid income that is based on employment, income, and 44
attendance data obtai ned directly or indirectly from an 45
employer; 46
(9) "Fee": 47
(a) A fee imposed by a provider for delivery or 48
expedited delivery of proceeds to a consumer; 49 SB 293 3
(b) A subscription or membership fee imposed by a 50
provider for a bona fide group of s ervices that includes 51
earned wage access services; or 52
(c) An amount paid by an employer to a provider on a 53
consumer's behalf, which entitles the consumer to receive 54
proceeds at reduced or no cost to the consumer. 55
A voluntary tip, gratuity, or dona tion shall not be deemed a 56
fee; 57
(10) "Outstanding proceeds", a payment of proceeds to 58
a consumer by a provider that has not yet been repaid to 59
that provider; 60
(11) "Person", a partnership, corporation, 61
association, sole proprietorship, limit ed liability company, 62
or nonprofit or governmental entity; 63
(12) "Proceeds", a payment of funds to a consumer by a 64
provider that is based on earned but unpaid income; 65
(13) "Provider", a person who is in the business of 66
offering and providing earned wage access services to 67
consumers. 68
2. (1) No person shall engage in the business of 69
earned wage access services in this state without first 70
registering as an earned wage access services provider with 71
the division. 72
(2) The annual registration fee shall be one thousand 73
dollars payable to the division as of the first day of July 74
of each year. The division may establish a biennial 75
registration arrangement, but in no case shall the 76
registration fee be payable for more than one year a t a time. 77
(3) Registration shall be made on forms prepared by 78
the director and shall contain the following information: 79 SB 293 4
(a) Name, business address, and telephone number of 80
the earned wage access services provider; 81
(b) Name and business address of corporate officers 82
and directors or principals or partners; 83
(c) A sworn statement by an appropriate officer, 84
principal, or partner of the earned wage access services 85
provider that: 86
a. The provider is financially capable of engagin g in 87
the business of earned wage access services; and 88
b. If a corporation, that the corporation is 89
authorized to transact business in this state. 90
If any material change occurs in the information contained 91
in the registration form, a revised statem ent shall be 92
submitted to the director. 93
(4) A certificate of registration shall be issued by 94
the director within thirty calendar days after the date on 95
which all registration materials have been received by the 96
director and shall not be assignabl e or transferable, except 97
as approved by the director. 98
(5) Each certificate of registration shall remain in 99
full force and effect until surrendered, revoked, or 100
suspended. 101
3. This section shall not apply to: 102
(1) A bank or savings and l oan association whose 103
deposits or accounts are eligible for insurance by the 104
Federal Deposit Insurance Corporation, or a subsidiary of 105
such a bank or savings and loan association; 106
(2) A credit union doing business in this state; or 107
(3) A person authorized to make loans or extensions of 108
credit under the laws of this state or the United States, 109 SB 293 5
who is subject to regulation and supervision by this state 110
or the United States. 111
4. Each provider shall: 112
(1) Develop and implement polici es and procedures to 113
respond to questions raised by consumers and address 114
complaints from consumers in an expedient manner; 115
(2) Before entering into an agreement with a consumer 116
for the provision of earned wage access services, provide a 117
consumer with a written paper or electronic document, which 118
can be included as part of the contract to provide earned 119
wage access services and which meets all of the following 120
requirements: 121
(a) Informs the consumer of his or her rights under 122
the agreement; and 123
(b) Fully and clearly discloses all fees associated 124
with the earned wage access services; 125
(3) Inform the consumer of the fact of any material 126
changes to the terms and conditions of the earned wage 127
access services before implementing t hose changes for that 128
consumer; 129
(4) Provide proceeds to a consumer by any means 130
mutually agreed upon by the consumer and provider; 131
(5) Comply with all local, state, and federal privacy 132
and information security laws; 133
(6) In any case in which the provider will seek 134
repayment of outstanding proceeds, fees, or other payments, 135
including voluntary tips, gratuities, or other donations 136
from a consumer's account at a depository institution and 137
including via electronic funds transfer: 138
(a) Comply with applicable provisions of the federal 139
Electronic Funds Transfer Act and its implementing 140
regulations; and 141 SB 293 6
(b) Reimburse the consumer for the full amount of any 142
overdraft or nonsufficient funds fees imposed on a consumer 143
by the consumer's depository institution that were caused by 144
the provider attempting to seek payment of any outstanding 145
proceeds, fees, voluntary tips, gratuities, or other 146
donations on a date before, or in an incorrect amount from, 147
the date or amount disclosed to the consumer. 148
The provisions of this subdivision shall not apply with 149
respect to payments of outstanding proceeds, fees, tips, 150
gratuities, or other donations incurred by a consumer 151
through fraudulent or other means; and 152
(7) If a provider solicits , charges, or receives a 153
tip, gratuity, or donation from a consumer: 154
(a) Clearly and conspicuously disclose to the consumer 155
immediately prior to each transaction that a tip, gratuity, 156
or donation amount may be zero and is voluntary; 157
(b) Clearly and conspicuously disclose in its service 158
contract with the consumer and elsewhere that tips, 159
gratuities, or donations are voluntary and that the offering 160
of earned wage access services, including the amount of the 161
proceeds a consumer is eligible t o request and the frequency 162
with which proceeds are provided to a consumer, is not 163
contingent on whether the consumer pays any tip, gratuity, 164
or donation or on the size of any tip, gratuity, or donation; 165
(c) Refrain from misleading or deceiving co nsumers 166
about the voluntary nature of such tips, gratuities, or 167
donations; and 168
(d) Refrain from making representations that tips or 169
gratuities will benefit any specific, individual person. 170
5. (1) A provider shall not: 171 SB 293 7
[(1)] (a) Share with an employer any fees, voluntary 172
tips, gratuities, or other donations that were received from 173
or charged to a consumer for earned wage access services; 174
[(2)] (b) Charge interest for failure to repay 175
outstanding proceeds, fees, voluntary tips, gratuities, or 176
other donations; 177
[(3)] (c) Report any information about the consumer 178
regarding the inability of the provider to be repaid 179
outstanding proceeds, fees, voluntary tips, gratuities, or 180
other donations to a consumer credit reporting age ncy or a 181
debt collector; 182
[(4)] (d) Require a consumer's credit report or credit 183
score to determine a consumer's eligibility for earned wage 184
access services; 185
[(5)] (e) Accept payment from a consumer of 186
outstanding proceeds, fees, voluntary t ips, gratuities, or 187
other donations via credit card or charge card; or 188
[(6)] (f) Compel or attempt to compel repayment by a 189
consumer of outstanding proceeds, fees, voluntary tips, 190
gratuities, or other donations through any of the following 191
means: 192
[(a)] a. A suit against the consumer in a court of 193
competent jurisdiction; 194
[(b)] b. Use of a third party to pursue collection 195
from the consumer on the provider's behalf; or 196
[(c)] c. Sale of outstanding amounts to a third -party 197
collector or debt buyer for collection from the consumer. 198
(2) The provisions of this [subdivision] subsection 199
shall not apply to payments of outstanding proceeds, fees, 200
tips, gratuities, or other donations incurred by a consumer 201
through fraudulent or oth er means or preclude a provider 202 SB 293 8
from pursuing an employer for breach of its contractual 203
obligations to the provider. 204
6. For purposes of the laws of this state: 205
(1) Earned wage access services offered and provided 206
by a registered provider sha ll not be considered to be any 207
of the following: 208
(a) A violation of or noncompliance with the laws 209
governing the sale or assignment of or an order for earned 210
but unpaid income; 211
(b) A loan or other form of credit, and the provider 212
shall not be considered a creditor or a lender; 213
(c) Money transmission, and the provider shall not be 214
considered a money transmitter; 215
(2) Fees, voluntary tips, gratuities, or other 216
donations shall not be considered interest or finance 217
charges. 218
7. The director, or his or her duly authorized 219
representative, may make such investigation as is deemed 220
necessary and, to the extent necessary for this purpose, may 221
examine the registrant or any other person having personal 222
knowledge of the matters unde r investigation, and shall have 223
the power to compel the production of all relevant books, 224
records, accounts, and documents by registrants. 225
8. (1) An earned wage access services provider shall 226
maintain records of its earned wage access services 227
transactions and shall preserve its records for at least two 228
years after the final date on which it provides proceeds to 229
a consumer. 230
(2) Records required by this section may be maintained 231
electronically. 232
9. The division may promulgate rules a s may be 233
necessary for the administration of this section. Any rule 234 SB 293 9
or portion of a rule, as that term is defined in section 235
536.010, that is created under the authority delegated in 236
this section shall become effective only if it complies with 237
and is subject to all of the provisions of chapter 536 and, 238
if applicable, section 536.028. This section and chapter 239
536 are nonseverable and if any of the powers vested with 240
the general assembly pursuant to chapter 536 to review, to 241
delay the effective dat e, or to disapprove and annul a rule 242
are subsequently held unconstitutional, then the grant of 243
rulemaking authority and any rule proposed or adopted after 244
August 28, 2023, shall be invalid and void. 245
10. (1) Any provider registered pursuant to thi s 246
section who fails, refuses, or neglects to comply with the 247
provisions of this section or commits any criminal act may 248
have its registration suspended or revoked by the director, 249
after a hearing before the director on an order of the 250
director to show cause why such order of suspension or 251
revocation should not be entered specifying the grounds 252
therefor, which shall be served on the registrant at least 253
ten days prior to the hearing. 254
(2) Whenever it shall appear to the director that any 255
provider registered pursuant to this section is failing, 256
refusing, or neglecting to make a good faith effort to 257
comply with the provisions of this section, the director may 258
issue an order to cease and desist, which order may be 259
enforceable by a civil penalty of not more than one thousand 260
dollars per day for each day that the neglect, failure, or 261
refusal shall continue. The penalty shall be assessed and 262
collected by the director. In determining the amount of the 263
penalty, the director shall take into accou nt the 264
appropriateness of the penalty with respect to the gravity 265 SB 293 10
of the violation, the history of previous violations, and 266
such other matters as justice may require. 267
11. All revenues collected by or paid to the director 268
pursuant to this section shall be forwarded immediately to 269
the director of revenue, who shall deposit them in the 270
division of finance fund. 271
12. Any earned wage access services provider knowingly 272
and willfully violating the provisions of this section shall 273
be guilty of a class A misdemeanor. 274
13. If there is a conflict between the provisions of 275
this section and any other state statute, the provisions of 276
this section shall control. 277