Nevada Senate Bill SB290

Nevada 2023 Regular Session

• Introduced: 3/15/23
• Refer: 3/15/23
• Report Pass: 4/24/23
• Refer: 4/24/23
• Report Pass: 5/25/23
• Engrossed: 5/26/23
• Refer: 5/26/23
• Report Pass: 5/31/23
• Enrolled: 6/8/23
• Chaptered: 6/15/23
• Passed: 6/15/23

Caption

Provides for the regulation of employer-integrated earned wage access providers and direct-to-consumer earned wage access providers. (BDR 52-9)

Impact

The implications of SB290 are significant for the financial services landscape in the state. By mandating licensing and creating a regulatory framework for earned wage access services, the bill aims to enhance consumer protections and prevent predatory practices. It requires providers to maintain surety bonds, which will serve as a financial safeguard and strengthen the state's oversight over these financial transactions. Notably, the bill states that these services are not classified as loans or money transfers, thus providing clarity in the realm of financial services law.

Summary

SB290 establishes regulations for earned wage access providers, requiring them to obtain a license from the Commissioner of Financial Institutions. The bill differentiates between employer-integrated earned wage access providers and direct-to-consumer providers, each with specific definitions. It mandates that providers can only operate with this license, ensuring they adhere to set regulations for transparency and accountability in their services to consumers.

Contention

However, the bill has faced contention around its impact on businesses that have historically provided such services without stringent oversight. Critics argue that the licensing requirements may stifle innovation and burden smaller providers who may not have resources to comply with the regulations. Additionally, as the completion of the regulatory framework is linked to the capabilities of the Nationwide Multistate Licensing System and Registry, there are concerns about how quickly the state can implement these changes effectively. The transition period for existing providers until December 2024 without a license is one aspect aimed at easing their compliance with the new regulations.