VT
Vermont House Bill H0099

Vermont 2025-2026 Regular Session

Vermont House Bill H0099 Compare Versions

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11 BILL AS INTRODUCED H.99
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55 VT LEG #379692 v.1
66 H.99 1
77 Introduced by Representatives Marcotte of Coventry, Bosch of Clarendon, 2
88 Carris-Duncan of Whitingham, Cooper of Pownal, Duke of 3
99 Burlington, Graning of Jericho, Micklus of Milton, Olson of 4
1010 Starksboro, Priestley of Bradford, and White of Bethel 5
1111 Referred to Committee on 6
1212 Date: 7
1313 Subject: Commerce and trade; consumer protection 8
1414 Statement of purpose of bill as introduced: This bill proposes to regulate 9
1515 earned wage access services. 10
1616 An act relating to regulating earned wage access services 11
1717 It is hereby enacted by the General Assembly of the State of Vermont: 12
1818 Sec. 1. 8 V.S.A. chapter 75 is added to read: 13
1919 CHAPTER 75. EARNED WAGE ACCESS SERVICES 14
2020 § 2301. DEFINITIONS 15
2121 As used in this chapter: 16
2222 (1)(A) “Biometric data” means data generated from the technological 17
2323 processing of an individual’s unique biological, physical, or physiological 18
2424 characteristics that is linked or reasonably linkable to an individual, including: 19
2525 (i) iris or retina scans; 20 BILL AS INTRODUCED H.99
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2929 VT LEG #379692 v.1
3030 (ii) fingerprints; 1
3131 (iii) facial or hand mapping, geometry, or templates; 2
3232 (iv) vein patterns; 3
3333 (v) voice prints; and 4
3434 (vi) gait or personally identifying physical movement or patterns. 5
3535 (B) “Biometric data” does not include: 6
3636 (i) a digital or physical photograph; 7
3737 (ii) an audio or video recording; or 8
3838 (iii) any data generated from a digital or physical photograph or 9
3939 from an audio or video recording, unless such data is generated to identify a 10
4040 specific individual. 11
4141 (2) “Consumer” means an individual residing in this State. 12
4242 (3) “Direct-to-consumer provider” means a provider that offers or 13
4343 provides earned wage access services directly to consumers based on the 14
4444 consumer’s representations and the provider’s reasonable determination of the 15
4545 consumer’s earned but unpaid income. 16
4646 (4) “Earned but unpaid income” means salary, wages, compensation, or 17
4747 other income that an obligor owes but has not yet paid to a consumer, as 18
4848 reasonably determined by a provider based on information provided by or on 19
4949 behalf of a consumer or obligor. 20 BILL AS INTRODUCED H.99
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5454 (5) “Earned wage access services” means the business of delivering 1
5555 proceeds to consumers prior to the next date on which an obligor is obligated 2
5656 to pay salary, wages, compensation, or other income to a consumer. 3
5757 (6) “Employer-integrated provider” means a provider that offers or 4
5858 provides earned wage access services to a consumer using time and attendance 5
5959 or earnings data for the relevant pay period that is provided directly or 6
6060 indirectly by an obligor or a service provider of the obligor. 7
6161 (7) “Licensee” means a provider who has been issued a license pursuant 8
6262 to this chapter. 9
6363 (8) “Obligor” means a person who is legally obligated to pay salary, 10
6464 wages, compensation, or other income for work that a consumer performs on 11
6565 an hourly, project-based, piecework, or other basis. 12
6666 (9) “Outstanding proceeds” means proceeds transferred to a consumer 13
6767 by a provider and not yet repaid to the provider. 14
6868 (10)(A) “Precise geolocation data” means information derived from 15
6969 technology that can precisely and accurately identify the specific location of a 16
7070 consumer within a radius of 1,850 feet. 17
7171 (B) “Precise geolocation data” does not include: 18
7272 (i) the content of communications; 19
7373 (ii) data generated by or connected to an advanced utility metering 20
7474 infrastructure system; or 21 BILL AS INTRODUCED H.99
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7979 (iii) data generated by equipment used by a utility company. 1
8080 (11) “Proceeds” means an amount of funds a provider transfers to a 2
8181 consumer that is based on earned but unpaid income. 3
8282 (12) “Provider” means a person who is in the business of offering and 4
8383 providing earned wage access services to consumers. 5
8484 § 2302. LICENSE REQUIRED 6
8585 (a) A person shall not provide earned wage access services in this State 7
8686 without first obtaining a license pursuant to this chapter. 8
8787 (b) A person, including a provider’s financial institution as defined in 9
8888 subdivision 10202(5) of this title, but not including a consumer’s financial 10
8989 institution as defined in subdivision 10202(5) of this title or an interbank 11
9090 clearinghouse as defined in 9 V.S.A. § 2481w(a), shall not provide substantial 12
9191 assistance to a provider if the person or the person’s authorized agent receives 13
9292 notice from a regulatory, law enforcement, or similar governmental authority, 14
9393 or knows, or consciously avoids knowing, from its normal monitoring and 15
9494 compliance systems, that the provider is in violation of subsection (a) of this 16
9595 section. 17
9696 (c)(1) Subsection (a) of this section shall not apply to a financial institution, 18
9797 as that term is defined in subdivision 10202(5) of this title, if the financial 19
9898 institution is authorized by law to accept deposits and the deposits are federally 20
9999 insured. 21 BILL AS INTRODUCED H.99
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104104 (2) A financial institution not required to obtain a license pursuant to 1
105105 subdivision (1) of this subsection shall otherwise be held to comply with the 2
106106 provisions required of licensees set forth in this chapter. 3
107107 § 2303. APPLICATION FOR LICENSE 4
108108 An applicant shall include in its application for a license under this chapter: 5
109109 (1) a description of the earned wage access services that the applicant 6
110110 seeks to provide in this State; 7
111111 (2) a statement or indication whether the provider is an 8
112112 employer-integrated provider or a direct-to-consumer provider, or both; 9
113113 (3) a list of other states in which the applicant is licensed or registered to 10
114114 provide earned wage access services; 11
115115 (4) a description of the nature and amount of charges or fees that the 12
116116 applicant may impose for earned wage access services; 13
117117 (5) information concerning any bankruptcy or receivership proceedings 14
118118 affecting the applicant or any person in control of the applicant; and 15
119119 (6) any other information required by the Commissioner, including 16
120120 through the Nationwide Multistate Licensing System and Registry. 17
121121 § 2304. LICENSEE REQUIREMENTS; TERMS OF SERVICE 18
122122 (a) Basic services. A licensee shall make available to each consumer to 19
123123 whom it offers earned wage access services a basic level of service that 20
124124 provides a reasonable option to receive proceeds at no cost to the consumer, 21 BILL AS INTRODUCED H.99
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129129 consistent with any minimum requirements and standards the Commissioner 1
130130 adopts by rule or order. 2
131131 (b) Employer services and additional services. 3
132132 (1) A licensee that is an employer-integrated provider may impose a 4
133133 charge or fee on an obligor who contracts with the licensee in order to: 5
134134 (A) offer basic earned wage access services pursuant to subsection 6
135135 (a) of this section; or 7
136136 (B) provide additional services to consumers who are employees or 8
137137 contractors of the obligor. 9
138138 (2) Subject to the requirements set forth in subdivision 2306(2) of this 10
139139 title, a licensee may offer additional services that may be subject to the 11
140140 following charges or fees: 12
141141 (A) a charge or fee for the optional expedited delivery of proceeds; or 13
142142 (B) a subscription or membership fee for a bona fide group of 14
143143 services that includes earned wage access services. 15
144144 (c) Optional gratuity. A licensee may solicit an optional gratuity from the 16
145145 consumer before finalizing the payment of proceeds, provided that: 17
146146 (1) the licensee complies with subdivision 2306(2) of this title; 18
147147 (2) the licensee provides clear notice that a gratuity is optional; 19
148148 (3) the licensee provides the consumer a clear and accessible option to 20
149149 leave no gratuity; and 21 BILL AS INTRODUCED H.99
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154154 (4) to approve a gratuity, the consumer must affirmatively consent to 1
155155 contributing the gratuity after entering a dollar amount or percentage value. 2
156156 (d) Required disclosures. 3
157157 (1) Before providing a consumer with earned wage access services, a 4
158158 licensee shall provide the consumer with written or electronic notice of the 5
159159 terms and conditions governing its earned wage access services, which the 6
160160 licensee may include as part of its service contract. The notice shall: 7
161161 (A) use language intended to be easily understood by a layperson; 8
162162 (B) state that the Commissioner has jurisdiction over the earned wage 9
163163 access services performed by the licensee; 10
164164 (C) provide both a phone number and a website through which the 11
165165 consumer can submit complaints about the licensee’s earned wage access 12
166166 services to the Commissioner; 13
167167 (D) state that basic earned wage access services are available at no 14
168168 cost to the consumer; and 15
169169 (E) specify the type and amount of charges and fees the licensee may 16
170170 impose for additional earned wage access services. 17
171171 (2) Any time a licensee offers or provides an additional earned wage 18
172172 access service for which it imposes a charge or fee, the licensee shall comply 19
173173 with any disclosure requirements and standards the Commissioner adopts by 20
174174 rule or order. 21 BILL AS INTRODUCED H.99
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179179 (3) A licensee shall clearly show the unique identifier issued to it by the 1
180180 Nationwide Multistate Licensing System and Registry on its internet website, 2
181181 on all solicitations and advertisements directed to consumers, and on any other 3
182182 documents as the Commissioner requires by rule or order. 4
183183 (e) Cancellation of service. A licensee that offers or provides earned wage 5
184184 access services on a recurring basis or as part of a subscription service shall 6
185185 allow a consumer to cancel participation in the service at any time without a 7
186186 cancellation fee. 8
187187 (f) Termination of service. If authorized by the licensee and consumer in 9
188188 their service contract, a licensee may terminate service to a consumer who does 10
189189 not repay outstanding proceeds or pay a charge or fee permitted by law. 11
190190 (g) Reporting. 12
191191 (1) The Commissioner shall require each licensee to submit to the 13
192192 Commissioner an annual report that includes a summary of its earned wage 14
193193 access services for the previous calendar year in a manner and a form as the 15
194194 Commissioner may require. 16
195195 (2) Biennially, beginning on January 15, 2027, the Commissioner shall 17
196196 submit a report to the House Committee on Commerce and Economic 18
197197 Development and the Senate Committee on Economic Development, Housing 19
198198 and General Affairs that shall provide a summary of the regulation and activity 20 BILL AS INTRODUCED H.99
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203203 of earned wage access services using reports the Commissioner received 1
204204 pursuant to subdivision (1) of this subsection. 2
205205 § 2305. NONRECOURSE OBLIGATIONS; PERMISSIBLE COLLECTION 3
206206 (a) Nonrecourse. Except as otherwise provided in subsection (b) of this 4
207207 section, a licensee shall provide earned wage access services on a nonrecourse 5
208208 basis and shall not attempt to collect payment of outstanding proceeds, 6
209209 charges, or fees through any means, including in a civil action or proceeding in 7
210210 any court, through arbitration or other alternative dispute resolution process, or 8
211211 through any third-party actor. 9
212212 (b) Permissible collection. A licensee may collect repayment of 10
213213 outstanding proceeds, charges, or fees as follows: 11
214214 (1) Payroll deduction. 12
215215 (A) Pursuant to written agreements with the consumer and the 13
216216 obligor, a licensee that is an employer-integrated provider may initiate an 14
217217 obligor-facilitated payroll deduction, a direct payment to the provider by or on 15
218218 behalf of an obligor, or an obligor-facilitated assignment of the outstanding 16
219219 proceeds from the consumer’s next paycheck following the date proceeds were 17
220220 paid. 18
221221 (B) A licensee may not make more than four total attempts at a 19
222222 payroll deduction, direct payment, or assignment pursuant to subdivision (A) 20
223223 of this subdivision (1). 21 BILL AS INTRODUCED H.99
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228228 (2) Electronic transfer. 1
229229 (A) A licensee may make as many as four attempts at an electronic 2
230230 transfer of funds from a consumer’s depository account at a financial 3
231231 institution if: 4
232232 (i) the consumer consents to the repayment of outstanding 5
233233 proceeds, charges, or fees through an electronic transfer; 6
234234 (ii) the licensee provides prior notice of the date and the amount of 7
235235 a transfer; 8
236236 (iii) the licensee attempts a transfer only on the date and in the 9
237237 amount specified in the notice; 10
238238 (iv) the licensee complies with all requirements applicable to the 11
239239 payment system it uses to make an electronic transfer, including any applicable 12
240240 National Automated Clearinghouse Association rules; and 13
241241 (v) the licensee uses reasonable care to avoid causing a consumer 14
242242 to incur a fee or penalty for insufficient funds. 15
243243 (B) A licensee who violates subdivision (A) of this subdivision (2) 16
244244 shall reimburse a consumer for any fee or penalty the consumer incurs due to 17
245245 the violation. 18
246246 (3) Periodic invoice. A licensee may submit not more than three 19
247247 periodic written invoices to a consumer for payment. 20 BILL AS INTRODUCED H.99
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252252 (4) Other means. A licensee may use other means of collection that the 1
253253 Commissioner approves by rule or order. 2
254254 (5) Misrepresentation; fraud. A licensee may collect outstanding 3
255255 proceeds, charges, fees, and any other amounts available by law if a consumer 4
256256 provided false information in the course of procuring earned wage access 5
257257 services or received proceeds with the intent to defraud the provider. 6
258258 § 2306. PROHIBITED ACTS AND PRACTICES 7
259259 A licensee shall not: 8
260260 (1) impose or attempt to collect a charge, fee, penalty, or interest: 9
261261 (A) for basic earned wage access services under subsection 2304(a) 10
262262 of this title; 11
263263 (B) for employer services or additional services if not otherwise 12
264264 authorized under subsection 2304(b) of this title; 13
265265 (C) for failure to repay outstanding proceeds or to pay any fee or 14
266266 charge; or 15
267267 (D) to defer the collection of outstanding proceeds beyond the 16
268268 original schedule for collection; 17
269269 (2) present fees authorized under subsection 2304(b) or voluntary 18
270270 gratuities authorized under subsection 2304(c) as default options to a 19
271271 consumer; 20 BILL AS INTRODUCED H.99
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276276 (3) condition the availability or terms of earned wage access services, 1
277277 including the amount of proceeds and the frequency of payments, on: 2
278278 (A) whether the consumer chooses optional additional services; 3
279279 (B) the amount or type of charges or fees the consumer agrees to pay; 4
280280 (C) a requirement that the consumer transfer ownership or control of, 5
281281 or create a security interest in, the consumer’s property as security for the 6
282282 repayment of outstanding proceeds; or 7
283283 (D) a consumer’s credit report or credit score; 8
284284 (4) sell, offer for sale, lease, share, or trade in exchange for anything of 9
285285 value the biometric data or precise geolocation data of a consumer: 10
286286 (A) to that consumer’s obligor; or 11
287287 (B) to any person other than the consumer’s obligor, without having 12
288288 first obtained the affirmative consent of the consumer; 13
289289 (5) commit an unfair or deceptive act in commerce pursuant to 9 V.S.A. 14
290290 chapter 63, including: 15
291291 (A) making a false or deceptive statement or representation, or a 16
292292 fraudulent misrepresentation, to a consumer, the Commissioner, or a 17
293293 government agency; 18
294294 (B) soliciting a consumer to delay repayment of outstanding proceeds 19
295295 for the purpose of increasing the total charges or fees the licensee may collect; 20
296296 and 21 BILL AS INTRODUCED H.99
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301301 (C) any act, practice, or conduct prohibited in connection with the 1
302302 collection of, or attempt to collect, a debt arising out of a consumer transaction 2
303303 under 9 V.S.A. § 2453(a) or any rule adopted by the Attorney General under 3
304304 that subsection; 4
305305 (6) report a consumer’s payment or failed repayment of proceeds or 5
306306 payment of any fee or charge to a consumer reporting agency or debt collector; 6
307307 (7) discriminate against a consumer on the basis of the sex, marital 7
308308 status, race, color, religion, national origin, age, sexual orientation, gender 8
309309 identity, or disability of the consumer, provided that a licensee is not required 9
310310 to do business with a consumer that lacks the legal capacity to contract due to 10
311311 the consumer’s disability or minor age; or 11
312312 (8) transfer proceeds to a consumer in virtual currency or in an 12
313313 instrument denominated in virtual currency without the prior approval of the 13
314314 Commissioner in a writing expressly referencing this subdivision, other than a 14
315315 virtual currency issued or insured by the United States or its agency or 15
316316 instrumentality. 16
317317 § 2307. APPLICABILITY OF OTHER STATE LAWS 17
318318 The provision of earned wage access services by a licensee in accordance 18
319319 with this chapter is not: 19
320320 (1) a loan subject to chapter 73 of this title; 20
321321 (2) a wage assignment under section 2234 or 2235 of this title; 21 BILL AS INTRODUCED H.99
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326326 (3) a money transmission subject to chapter 79 of this title; 1
327327 (4) subject to 9 V.S.A. chapter 4; or 2
328328 (5) a violation of or noncompliance with the laws of this State governing 3
329329 deductions from payroll, salary, wages, compensation, or other income, or the 4
330330 purchase, sale or assignment of, or an order for, earned but unpaid income. 5
331331 § 2308. RULES 6
332332 The Commissioner may adopt rules and orders and issue specific rulings, 7
333333 demands, and findings as are necessary for the administration and the 8
334334 enforcement of this chapter and for the protection of consumers who obtain 9
335335 earned wage access services in this State, including imposing limits and 10
336336 requirements on the amount, type, and disclosure regarding earned wage 11
337337 access services and charges or fees for services. 12
338338 § 2309. PRIVATE RIGHT OF ACTION; CONSUMER PROTECTION ACT 13
339339 (a) A consumer may bring a private right of action for damages caused by a 14
340340 violation of this chapter against a provider that was required to be licensed 15
341341 under this chapter, but was not, at the time the provider offered or provided 16
342342 earned wage access services to the consumer. 17
343343 (b) The powers vested in the Commissioner by this chapter shall be in 18
344344 addition to any other powers or rights of consumers or the Attorney General or 19
345345 others under any other applicable law or rule, including the Vermont 20
346346 Consumer Protection Act and any applicable rules adopted under that Act, 21 BILL AS INTRODUCED H.99
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351351 provided that the Commissioner’s determinations concerning the interpretation 1
352352 and administration of the provisions of this chapter and any rules adopted 2
353353 under this chapter shall carry a presumption of validity. 3
354354 Sec. 2. 8 V.S.A. § 2102 is amended to read: 4
355355 § 2102. APPLICATION FOR LICENSE 5
356356 (a) Application for a license or registration shall be in writing, under oath, 6
357357 and in the form prescribed by the Commissioner, and shall contain the legal 7
358358 name, any fictitious name or trade name, and the address of the residence and 8
359359 place of business of the applicant;, and if the applicant is a partnership 9
360360 corporation, limited liability company, partnership, or other entity, the name 10
361361 and title of each key individual and person in control of the applicant; or an 11
362362 association, of every member thereof, and if a corporation, of each officer and 12
363363 director thereof; also the county and municipality with street and number, if 13
364364 any, where the business is to be conducted; and such further information as the 14
365365 Commissioner may require. 15
366366 (b) At the time of making an application, the applicant shall pay to the 16
367367 Commissioner a fee for investigating the application and a license or 17
368368 registration fee for a period terminating on the last day of the current calendar 18
369369 year. The following fees are imposed on applicants: 19
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375375 (15) For an application for an earned wage access services provider 1
376376 license under chapter 75 of this title, $1,000.00 as a license fee and $1,000.00 2
377377 as an application and investigation fee. 3
378378 * * * 4
379379 Sec. 3. 8 V.S.A. § 2109 is amended to read: 5
380380 § 2109. ANNUAL RENEWAL OF LICENSE 6
381381 (a) On or before December 1 of each year, every licensee shall renew its 7
382382 license or registration for the next succeeding calendar year and shall pay to 8
383383 the Commissioner the applicable renewal of license or registration fee. At a 9
384384 minimum, the licensee or registree shall continue to meet the applicable 10
385385 standards for licensure or registration. At the same time, the licensee or 11
386386 registree shall maintain with the Commissioner any required bond in the 12
387387 amount and of the character as required by the applicable chapter. The annual 13
388388 license or registration renewal fee shall be: 14
389389 * * * 15
390390 (15) For an earned wage access services provider license under chapter 16
391391 75 of this title, $1,200.00. 17
392392 * * * 18
393393 Sec. 4. 8 V.S.A. § 10202(5) is amended to read: 19
394394 (5) “Financial institution” means a financial institution as defined in 20
395395 subdivision 11101(32) of this title, and a credit union, financial institution 21 BILL AS INTRODUCED H.99
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400400 subsidiary, licensed lender, mortgage broker, earned wage access services 1
401401 provider, or sales finance company organized or regulated under the laws of 2
402402 this State, the United States, or any other state or territory. 3
403403 Sec. 5. IMPLEMENTATION; GRACE PERIOD 4
404404 (a) The license requirement set forth in 8 V.S.A. § 2302 applies beginning 5
405405 on January 1, 2026. 6
406406 (b) Notwithstanding subsection (a) of this section, a person providing 7
407407 earned wage access services in this State as of January 1, 2025 may continue 8
408408 providing earned wage access services without a license through December 31, 9
409409 2025, or until its application for a license is denied, if: 10
410410 (1) the provider submits an application for a license before January 1, 11
411411 2026; and 12
412412 (2) the provider otherwise complies with 8 V.S.A. chapter 75. 13
413413 (c) Solely for purposes of 8 V.S.A. § 2309(a), a provider that has complied 14
414414 with subsection (b) of this section shall be deemed to be a licensee during the 15
415415 grace period provided by subsection (b) of this section. 16
416416 Sec. 6. EFFECTIVE DATE 17
417417 This act shall take effect on July 1, 2025. 18