Regulate Earned-Wage Access Services

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0210.01 Jery Payne x2157 HOUSE BILL 26-1046
House Committees Senate Committees
Finance
A BILL FOR AN ACT
CONCERNING THE REGULATION OF EARNED-WAGE ACCESS SERVICES.101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, A bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill requires a person to obtain a license to provide
earned-wage access services (provider) but allows current providers to
continue providing the services without a license until a license is issued
or denied. The licensing, administrative, and disciplinary functions of the
regulation of providers are performed by the assistant attorney general
(administrator) who administers the "Uniform Consumer Credit Code".
The administrator is given several powers, including adopting rules,
related to this regulation.
HOUSE SPONSORSHIP
Camacho and Duran,
SENATE SPONSORSHIP
Frizell and Mullica,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
License application and issuance standards and procedures are
established. A provider is issued a license if the administrator finds that
the financial responsibility, character, and fitness of the applicant and of
the applicant's members, managers, partners, officers, and directors are
sufficient to demonstrate that the applicant will operate the business
honestly and fairly and in compliance with the bill.
The license fee is set by the administrator to cover the cost of
regulating providers. Administrative procedures are established. A license
is valid for one year, and to renew a license, a licensee must file a renewal
form annually. If a licensee fails to pay the prescribed renewal fee on or
before May 1 of each year, the licensee must pay a penalty of $5 per day
per license until the license is renewed, but if a licensee fails to pay the
appropriate renewal and penalty fees by May 15, the licensee's license
automatically expires.
The administrator may deny an application for a license or take
disciplinary action against a licensee for failing to meet the standards set
in the bill.
To discipline a provider, the administrator may deny an application
for licensure, revoke the license, suspend the license, issue a
cease-and-desist order, impose a civil penalty of up to $1,000 per
violation, bar the person from applying for or holding a license for 5 years
after a revocation, issue a letter of admonition, or impose a penalty of
$200 per day for records violations. A respondent aggrieved by an action
or order of the administrator may obtain judicial review of the action or
order in the Colorado court of appeals.
A licensee is required to maintain records in conformity with the
bill, rules adopted unde r the bill, and generally accepted accounting
principles and practices in a manner that will enable the administrator to
determine if the licensee is complying with the bill. A licensee shall give
the administrator free access to the records in the licensee's storage
location. A licensee need not preserve records pertaining to an
earned-wage access services transaction for more than one year.
Standards are set for this access.
A licensee must file an annual report that includes all relevant
information that the bill and the administrator reasonably require
concerning the business and operations conducted during the preceding
calendar year. Standards are set for the report. The administrator must
keep the report confidential and not open it to the public for inspection
pursuant to the "Colorado Open Records Act". If a licensee fails to file an
annual report by April 15, the administrator may impose a penalty of $5
per day until the report is filed, but if the licensee fails to file the report
and pay this penalty by May 1 of the same year, the licensee's license
automatically expires.
After the administrator has examined a licensee's records, the
administrator shall provide a report of the examination to the licensee and
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may require the licensee to take corrective action. The licensee shall take
the corrective action and provide proof that the corrective action was
taken. The administrator is prohibited from disclosing the name or
identity of a person whose acts or conduct is under investigation or
examination or the facts disclosed in the investigation or examination,
except for disclosures in actions or enforcement proceedings.
A provider has the duty to:
!Develop and implement policies and procedures to respond
to questions raised by consumers and address complaints
from consumers;
! If the provider offers a consumer the option to receive
proceeds for a service fee (proceeds), offer to the consumer
at least one reasonable option to obtain proceeds at no cost
to the consumer and clearly explain how to elect the
no-cost option;
! Make certain disclosures about the earned-wage access
services to the consumer;
! Inform the consumer before implementing material
changes to the terms and conditions of the earned-wage
access services agreement;
! Allow the consumer to cancel use of the earned-wage
access services at any time without incurring a cancellation
fee;
! Provide proceeds to a consumer by the means mutually
agreed upon by the consumer and the provider; and
! To be repaid for outstanding proceeds or payment of
service fees or other amounts owed in connection with
earned-wage access services from a consumer's account at
a depository institution, comply with federal law and
reimburse the consumer for the full amount of any
overdraft or insufficient funds fees imposed on the
consumer that were caused by the provider attempting to
seek payment on a date before the date or in an amount
different from the amount disclosed to the consumer.
A provider shall not:
!Share with an employer a portion of a service fee that was
received from or charged to a consumer for earned-wage
access services;
! Require a consumer's credit score provided by a consumer
reporting agency to determine the consumer's eligibility for
earned-wage access services;
! Accept payment of outstanding proceeds or service fees
from a consumer by means of a credit card or charge card;
! Charge a consumer a late fee, a deferral fee, interest, or any
other penalty or charge for failure to pay outstanding
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proceeds or service fees;
! Report to a collection agency or to a debt collector
information about a consumer regarding the inability of the
provider to be repaid outstanding proceeds or service fees;
! Impose a service fee in excess of $5 for an advance of
proceeds in an amount less than $75 or $7 for an advance
of proceeds in an amount more than $75; except that the
fee may be increased for inflation;
! Enter into an agreement with an employer that would
require a consumer who is an employee of the employer to
use earned-wage access services as a necessary condition
of receiving payment of wages;
! Compel a consumer to pay outstanding proceeds or service
fees to the provider through a lawsuit, the use of a third
party to pursue collection from the consumer, or the sale of
outstanding proceeds to a third-party collector or debt
buyer. The collection limitations do not apply to the act of
compelling payment of outstanding proceeds paid through
fraudulent or other unlawful means or to pursuing an
employer for breach of its contractual obligations to the
provider.
! Solicit a tip, gratuity, or donation during the time between
when a consumer requests proceeds and when the provider
confirms that a transfer of proceeds has been approved and
provides a listing of the fees that will be charged.
The administrator may bring a civil action to recover a civil
penalty of up to $5,000 for willfully violating the bill, and, if the court
finds that the defendant has engaged in a course of repeated and willful
violations, the court may assess a civil penalty of up to $10,000 per
violation. In addition, the administrator may recover reasonable costs of
the investigation and action and may request an order for reimbursement
of reasonable attorney fees.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add article 22 to title2
5 as follows:3
ARTICLE 224
Earned-wage Access Services5
5-22-101. Short title.6
THE SHORT TITLE OF THIS ARTICLE 22 IS THE "EARNED-WAGE7
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ACCESS SERVICES ACT".1
5-22-102. Definitions.2
AS USED IN THIS ARTICLE 22, UNLESS THE CONTEXT OTHERWISE3
REQUIRES:4
(1) "ADMINISTRATOR" MEANS THE ASSISTANT ATTORNEY GENERAL5
OR THE ATTORNEY GENERAL 'S DESIGNEE EXERCISING THE POWERS AND6
PERFORMING THE DUTIES OF THE ADMINISTRATOR PURSUANT TO PART 1 OF7
ARTICLE 6 OF THIS TITLE 5.8
(2) "C ONSUMER" MEANS AN INDIVIDUAL WHO RESIDES IN THE9
STATE.10
(3) "C ONSUMER-DIRECTED WAGE ACCESS SERVICES " MEANS11
SERVICES THAT DELIVER CONSUMER ACCESS TO EARNED BUT UNPAID12
INCOME THAT IS BASED ON THE CONSUMER'S REPRESENTATIONS AND THE13
PROVIDER'S REASONABLE DETERMINATION OF THE CONSUMER'S EARNED14
BUT UNPAID INCOME.15
(4) "E ARNED BUT UNPAID INCOME " MEANS SALARY , WAGES ,16
COMPENSATION, OR OTHER INCOME THAT HAS NOT BEEN PAID TO A17
CONSUMER BY THE CONSUMER'S EMPLOYER AND THAT THE CONSUMER OR18
AN EMPLOYER HAS REPRESENTED AND A PROVIDER HAS REASONABLY19
DETERMINED HAS BEEN EA RNED OR ACCRUED TO THE BENEFIT OF THE20
CONSUMER BY THE CONSUMER'S PROVISION OF SERVICES:21
(a) TO THE EMPLOYER;22
(b) ON BEHALF OF THE EMPLOYER; OR23
(c) AS AN INDEPENDENT CONTRACTOR.24
(5) "E ARNED -WAGE ACCESS SERVICES " MEANS25
CONSUMER-DIRECTED WAGE ACCESS SERVICES OR EMPLOYER-INTEGRATED26
WAGE ACCESS SERVICES.27
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(6) (a) "EMPLOYER" MEANS:1
(I) A PERSON THAT EMPLOYS A CONSUMER; OR2
(II) ANOTHER PERSON THAT IS CONTRACTUALLY OBLIGATED TO3
PAY A CONSUMER EARNED BUT UNPAID INCOME.4
(b) "EMPLOYER" DOES NOT INCLUDE:5
(I) A CUSTOMER OF THE EMPLOYER; OR6
(II) ANOTHER PERSON WHOSE OBLIGATION TO MAKE A PAYMENT7
OF SALARY, WAGES, COMPENSATION, OR OTHER INCOME TO A CONSUMER8
IS NOT BASED ON THE PROVISION OF SERVICES BY THAT CONSUMER FOR OR9
ON BEHALF OF THE PERSON.10
(7) "E MPLOYER-INTEGRATED WAGE ACCESS SERVICES " MEANS11
SERVICES THAT PROVIDE CONSUMER ACCESS TO EARNED BUT UNPAID12
INCOME THAT IS BASED ON EMPLOYMENT, INCOME, OR ATTENDANCE DATA13
OBTAINED FROM AN EMPLOYER OR AN EMPLOYER 'S PAYROLL SERVICE14
PROVIDER.15
(8) "L ICENSEE" MEANS A PROVIDER LICENSED BY THE16
ADMINISTRATOR PURSUANT TO THIS ARTICLE 22 TO PROVIDE17
EARNED-WAGE ACCESS SERVICES.18
(9) "O UTSTANDING PROCEEDS " MEANS PROCEEDS PAID TO A19
CONSUMER BY A PROVIDER THAT HAVE NOT YET BEEN REPAID TO THE20
PROVIDER.21
(10) "P ROCEEDS" MEANS A PAYMENT TO A CONSUMER BY A22
PROVIDER THAT IS BASED ON EARNED BUT UNPAID INCOME.23
(11) (a) "P ROVIDER" MEANS A PERSON THAT PROVIDES24
EARNED-WAGE ACCESS SERVICES.25
(b) "PROVIDER" DOES NOT INCLUDE:26
(I) A SERVICE VENDOR , INCLUDING A PAYROLL SERVICE OR A27
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SERVICE THAT VERIFIES AVAILABLE EARNINGS , THAT IS NOT1
CONTRACTUALLY OBLIGATED TO FUND PROCEEDS DELIVERED AS PART OF2
AN EARNED-WAGE ACCESS SERVICE;3
(II) AN EMPLOYER THAT OFFERS A PORTION OF SALARY, WAGES, OR4
COMPENSATION DIRECTLY TO ITS EMPLOYEES OR INDEPENDENT5
CONTRACTORS BEFORE THE NORMALLY SCHEDULED PAY DATE; OR6
(III) AN ENTITY THAT OFFERS OR PROVIDES EARNED-WAGE ACCESS7
SERVICES AND REPORTS A CONSUMER 'S PAYMENT OR NONPAYMENT OF8
OUTSTANDING PROCEEDS OR SERVICE FEES SOLELY ATTRIBUTABLE TO THE9
EARNED-WAGE ACCESS SERVICES TO A CONSUMER REPORTING AGENCY10
THAT COMPILES AND MAINTAINS FILES ON CONSUMERS ON A NATIONWIDE11
BASIS, AS DEFINED IN THE FEDERAL "FAIR CREDIT REPORTING ACT", 1512
U.S.C. SEC. 1681a (p).13
(12) "SERVICE FEE" MEANS:14
(a) A FEE IMPOSED BY A PROVIDER FOR DELIVERY OR EXPEDITED15
DELIVERY OF PROCEEDS TO A CONSUMER; OR16
(b) A SUBSCRIPTION OR MEMBERSHIP FEE IMPOSED BY A PROVIDER17
FOR A BONA FIDE GROUP OF SERVICES THAT INCLUDE EARNED -WAGE18
ACCESS SERVICES.19
5-22-103. Earned-wage access services - license - application20
- renewal - fees - rules.21
(1) (a) B EGINNING JANUARY 1, 2027, A PERSON SHALL NOT22
PROVIDE EARNED -WAGE ACCESS SERVICES OR ACT AS A PROVIDER23
WITHOUT A LICENSE ISSUED BY THE ADMINISTRATOR IN ACCORDANCE24
WITH THIS ARTICLE 22.25
(b) N OTWITHSTANDING SUBSECTION (1)(a) OF THIS SECTION , A26
PROVIDER THAT AS OF JANUARY 1, 2027, WAS ENGAGED IN THE BUSINESS27
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OF PROVIDING EARNED-WAGE ACCESS SERVICES IN COLORADO MAY, UNTIL1
THE ADMINISTRATOR HAS ISSUED OR DENIED A LICENSE TO THE PROVIDER,2
CONTINUE TO ENGAGE IN THE BUSINESS OF OFFERING AND PROVIDING3
EARNED-WAGE ACCESS SERVICES IN COLORADO IF THE PERSON:4
(I) HAS SUBMITTED A LICENSE APPLICATION WITHIN SIX MONTHS5
AFTER THE ADMINISTRATOR PRESCRIBES THE FORM AND CONTENT OF THE6
APPLICATION; AND7
(II) IS OTHERWISE IN COMPLIANCE WITH THIS ARTICLE 22.8
(2) (a) TO BE ISSUED A LICENSE, AN APPLICANT MUST SUBMIT AN9
APPLICATION TO THE ADMINISTRATOR IN A FORM AND MANNER10
PRESCRIBED BY THE ADMINISTRATOR.11
(b) THE APPLICATION MUST INCLUDE:12
(I) THE NAME, MAILING ADDRESS, AND PHYSICAL LOCATION OF THE13
APPLICANT'S BUSINESS;14
(II) A LICENSE APPLICATION FEE SET IN ACCORDANCE WITH15
SECTION 5-22-111; AND16
(III) A NY OTHER INFORMATION AS DETERMINED BY THE17
ADMINISTRATOR.18
(c) THE ADMINISTRATOR SHALL REVIEW EACH APPLICATION AND19
DETERMINE WHETHER THE APPLICANT QUALIFIES FOR A LICENSE.20
(3) (a) THE ADMINISTRATOR SHALL NOT ISSUE A LICENSE TO AN21
APPLICANT UNLESS:22
(I) THE ADMINISTRATOR, UPON INVESTIGATION, FINDS THAT THE23
FINANCIAL RESPONSIBILITY, CHARACTER, AND FITNESS OF THE APPLICANT24
AND OF THE APPLICANT 'S MEMBERS , MANAGERS , PARTNERS , OFFICERS ,25
AND DIRECTORS ARE SUFFICIENT SO THAT THE ADMINISTRATOR BELIEVES26
THAT THE APPLICANT WILL OPERATE THE BUSINESS HONESTLY AND FAIRLY27
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AND IN COMPLIANCE WITH THIS ARTICLE 22; AND1
(II) THE LICENSE APPLICATION FEE IS PAID.2
(b) T HE ADMINISTRATOR MAY DENY AN APPLICATION FOR A3
LICENSE FOR A VIOLATION DESCRIBED IN SECTION 5-22-104.4
(4) (a) I F THE ADMINISTRATOR DENIES AN APPLICATION , UPON5
WRITTEN REQUEST OF THE APPLICANT, THE ADMINISTRATOR SHALL HOLD6
A HEARING ON THE QUESTION OF THE APPLICANT'S QUALIFICATIONS FOR A7
LICENSE.8
(b) I N ORDER FOR A HEARING TO TAKE PLACE PURSUANT TO9
SUBSECTION (4)(a) OF THIS SECTION, AN APPLICANT MUST REQUEST THE10
HEARING NOT MORE THAN SIXTY DAYS AFTER THE ADMINISTRATOR HAS11
MAILED A WRITTEN NOTIFICATION TO THE APPLICANT STATING THAT THE12
APPLICATION HAS BEEN DENIED AND STATING THE SUBSTANTIVE REASONS13
FOR THE ADMINISTRATOR 'S FINDINGS SUPPORTING THE DENIAL OF THE14
APPLICATION.15
(5) A LICENSEE SHALL NOT ENGAGE IN THE BUSINESS OF A16
PROVIDER UNDER ANY OTHER NAME THAN THAT STATED IN THE LICENSE.17
THE ADMINISTRATOR MAY BY RULE ESTABLISH AN ADMINISTRATIVE18
PROCESS AND FEE FOR A PROVIDER NAME CHANGE.19
(6) A LICENSE IS VALID FOR ONE YEAR . TO RENEW A LICENSE , A20
LICENSEE MUST FILE A RENEWAL FORM ANNUALLY IN A FORM AND21
MANNER PRESCRIBED BY THE ADMINISTRATOR AND INCLUDE A RENEWAL22
FEE ESTABLISHED IN ACCORDANCE WITH SECTION 5-22-111 (3). THE FEE23
AND RENEWAL FORM IS DUE TO THE ADMINISTRATOR ON OR BEFORE APRIL24
15 OF EACH YEAR. IF A LICENSEE FAILS TO PAY THE PRESCRIBED RENEWAL25
FEE ON OR BEFORE MAY 1 OF EACH YEAR , THE LICENSEE SHALL PAY A26
PENALTY OF FIVE DOLLARS PER DAY PER LICENSE BEGINNING MAY 2 AND27
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UNTIL THE DATE THE PAYMENT IS MADE. IF A LICENSEE FAILS TO PAY THE1
APPROPRIATE RENEWAL AND PENALTY FEES ON OR BEFORE MAY 15, THE2
LICENSEE'S LICENSE AUTOMATICALLY EXPIRES.3
5-22-104. License - denial - grounds for discipline.4
(1) T HE ADMINISTRATOR MAY DENY AN APPLICATION FOR A5
LICENSE OR TAKE DISCIPLINARY ACTION AGAINST A LICENSEE UNDER THIS6
ARTICLE 22 IF:7
(a) THE APPLICANT OR LICENSEE VIOLATED THIS ARTICLE 22 OR A8
RULE ADOPTED BY THE ADMINISTRATOR UNDER THIS ARTICLE 22;9
(b) FACTS OR CONDITIONS EXIST THAT WOULD HAVE JUSTIFIED THE10
ADMINISTRATOR'S REFUSAL TO GRANT A LICENSE TO THE LICENSEE HAD11
THESE FACTS OR CONDITIONS BEEN KNOWN TO EXIST AT THE TIME THE12
APPLICATION FOR THE LICENSE WAS MADE;13
(c) THE APPLICANT FAILED TO COMPLETE A LICENSE APPLICATION;14
(d) THE APPLICANT OR LICENSEE FAILED TO PROVIDE INFORMATION15
REQUIRED BY THE ADMINISTRATOR WITHIN A REASONABLE TIME AS16
DETERMINED BY THE ADMINISTRATOR;17
(e) THE APPLICANT OR LICENSEE FAILED TO PROVIDE OR MAINTAIN18
PROOF OF FINANCIAL RESPONSIBILITY;19
(f) THE APPLICANT OR LICENSEE IS INSOLVENT;20
(g) THE APPLICANT OR LICENSEE MADE A FALSE REPRESENTATION21
OF A MATERIAL FACT OR OMITTED A MATERIAL FACT IN A DOCUMENT OR22
STATEMENT FILED WITH THE ADMINISTRATOR;23
(h) T HE APPLICANT , THE LICENSEE , OR THE APPLICANT 'S OR24
LICENSEE'S MEMBERS, MANAGERS, PARTNERS, OFFICERS, OR DIRECTORS25
HAVE BEEN C ONVICTED OF OR ENTERED A PLEA OF GUILTY OR NOLO26
CONTENDERE TO:27
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(I) A CRIME SPECIFIED IN PART 4 OF ARTICLE 4 OF TITLE 18 OR IN1
PART 1, 2, 3, 5, OR 7 OF ARTICLE 5 OF TITLE 18;2
(II) A CRIME INVOLVING FRAUD OR DECEIT; OR3
(III) A CRIME OF ANOTHER STATE OR THE UNITED STATES THAT IS4
SUBSTANTIALLY SIMILAR TO A CRIME LISTED IN SUBSECTION (1)(h)(I) OR5
(1)(h)(II) OF THIS SECTION;6
(i) T HE PROVIDER FAILED TO MAKE , MAINTAIN , OR PRODUCE7
RECORDS THAT COMPLY WITH SECTION 5-22-105 OR A RULE ADOPTED BY8
THE ADMINISTRATOR TO IMPLEMENT SECTION 5-22-105;9
(j) T HE APPLICANT OR LICENSEE HAS BEEN THE SUBJECT OF A10
DISCIPLINARY ACTION BY A STATE OR FEDERAL AGENCY;11
(k) A FINAL JUDGMENT HAS BEEN ENTERED AGAINST THE12
APPLICANT OR LICENSEE FOR VIOLATIONS OF THIS ARTICLE 22 OR A STATE13
OR FEDERAL LAW PROHIBITING DECEPTIVE OR UNFAIR TRADE OR BUSINESS14
PRACTICES; OR15
(l) AFTER THE ADMINISTRATOR COMMENCED AN EXAMINATION OR16
INVESTIGATION OF THE PROVIDER, THE APPLICANT OR LICENSEE FAILED TO,17
IN A TIMELY MANNER AS FIXED BY THE ADMINISTRATOR, TAKE OR PROVIDE18
PROOF OF A CORRECTIVE ACTION REQUIRED BY THE ADMINISTRATOR19
PURSUANT TO SECTION 5-22-106 (5).20
(2) IF THE ADMINISTRATOR DETERMINES THAT THE SUSPENSION OR21
REVOCATION OF A LICENSEE 'S LICENSE IS WARRANTED , THE22
ADMINISTRATOR SHALL MAKE THE DETERMINATION IN ACCORDANCE WITH23
SECTION 24-4-104.24
(3) I F THE ADMINISTRATOR DENIES A LICENSE APPLICATION OR25
TAKES DISCIPLINARY ACTION PURSUANT TO THIS SECTION , THE26
ADMINISTRATOR SHALL NOTIFY THE APPLICANT OR LICENSEE OF THE27
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DENIAL OR DISCIPLINARY ACTION WITHIN FIFTEEN DAYS AFTER TAKING1
THE ACTION AND SHALL MAKE A RECORD OF THE NOTIFICATION . THE2
ADMINISTRATOR SHALL NOTIFY THE APPLICANT OR LICENSEE BY A MEANS3
REASONABLY EXPECTED TO NOTIFY THE AFFECTED APPLICANT OR4
LICENSEE OR BY A MEANS ACCEPTABLE TO THE APPLICANT OR LICENSEE.5
(4) A LICENSEE MAY RELINQUISH THEIR LICENSE BY NOTIFYING THE6
ADMINISTRATOR IN WRITING OF THE RELINQUISHMENT . EXPIRATION OR7
RELINQUISHMENT OF A LICENSE DOES NOT AFFECT THE LICENSEE 'S8
LIABILITY FOR ACTS PREVIOUSLY COMMITTED NOR IMPAIR THE9
ADMINISTRATOR'S ABILITY TO ISSUE A FINAL AGENCY ORDER OR IMPOSE10
DISCIPLINE AGAINST THE LICENSEE.11
(5) A REVOCATION , SUSPENSION , OR RELINQUISHMENT OF A12
LICENSE DOES NOT IMPAIR OR AFFECT THE OBLIGATION OF A PREEXISTING13
LAWFUL CONTRACT BETWEEN A LICENSEE AND A CONSUMER.14
(6) THE ADMINISTRATOR MAY REINSTATE A LICENSE, TERMINATE15
A SUSPENSION, OR GRANT A NEW LICENSE TO A PERSON WHOSE LICENSE16
HAS BEEN REVOKED OR SUSPENDED IF NO FACT OR CONDITION THEN EXISTS17
THAT JUSTIFIES A REFUSAL TO REINSTATE THE LICENSE , TERMINATE THE18
SUSPENSION, OR GRANT THE NEW LICENSE.19
(7) I F THE ADMINISTRATOR FINDS THAT ONE OR MORE OF THE20
CONDITIONS DESCRIBED IN SUBSECTION (1) OF THIS SECTION EXIST , THE21
ADMINISTRATOR MAY DO ONE OR MORE OF THE FOLLOWING:22
(a) DENY THE APPLICATION FOR LICENSURE;23
(b) REVOKE THE LICENSE;24
(c) SUSPEND THE LICENSE FOR A PERIOD OF TIME;25
(d) ISSUE AN ORDER TO A PROVIDER TO CEASE AND DESIST FROM26
SPECIFIC ACTS;27
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(e) IMPOSE A CIVIL PENALTY OF UP TO ONE THOUSAND DOLLARS1
FOR EACH VIOLATION;2
(f) BAR THE PERSON FROM APPLYING FOR OR HOLDING A LICENSE3
FOR A PERIOD OF FIVE YEARS FOLLOWING REVOCATION OF THEIR LICENSE;4
(g) ISSUE A LETTER OF ADMONITION; OR5
(h) (I) I MPOSE A PENALTY OF TWO HUNDRED DOLLARS PER DAY6
FOR:7
(A) FAILURE TO MAKE OR RETAIN RECORDS REQUIRED TO BE MADE8
OR MAINTAINED UNDER THIS ARTICLE 22; OR9
(B) F AILURE TO PRODUCE RECORDS REQUIRED TO BE MADE OR10
MAINTAINED UNDER THIS ARTICLE 22 WITHIN SEVENTY-TWO HOURS AFTER11
AN ADMINISTRATOR'S WRITTEN REQUEST.12
(II) I F THE ADMINISTRATOR HAS PROVIDED ADVANCE WRITTEN13
NOTICE OF SEVENTY -TWO HOURS OR MORE TO A LICENSEE PRIOR TO14
CONDUCTING AN EXAMINATION PURSUANT TO SECTION 5-22-106, THE15
CIVIL PENALTY MAY BE IMPOSED WITHOUT ALLOWING ADDITIONAL TIME.16
(8) FOR DISCIPLINARY ACTION IMPOSED UNDER SUBSECTION (7)(g)17
OR (7)(h) OF THIS SECTION, THE ADMINISTRATOR MAY IMPOSE DISCIPLINE18
WITHOUT A HEARING, BUT THE LICENSEE MAY, WITHIN THIRTY DAYS AFTER19
THE DATE THE DISCIPLINE IS IMPOSED, FILE A WRITTEN NOTICE WITH THE20
ADMINISTRATOR REQUESTING A HEARING . IF THE REQUEST IS TIMELY21
MADE, A LETTER OF ADMONITION ISSUED PURSUANT TO SUBSECTION (7)(g)22
OF THIS SECTION IS VACATED AND THE ADMINISTRATOR SHALL HOLD A23
HEARING WITHIN NINETY DAYS AFTER THE REQUEST . IF, AFTER THE24
HEARING, THE ADMINISTRATOR OR AN ADMINISTRATIVE LAW JUDGE FINDS25
THAT ONE OR MORE OF THE GROUNDS FOR DISCIPLINE EXIST, ANY OR ALL26
OF THE FORMS OF DISCIPLINE LISTED IN THIS SECTION MAY BE IMPOSED.27
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5-22-105. Records - annual reports - rules.1
(1) (a) A LICENSEE SHALL MAINTAIN RECORDS IN CONFORMITY2
WITH THIS SECTION, RULES ADOPTED BY THE ADMINISTRATOR UNDER THIS3
SECTION, AND GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND4
PRACTICES IN A MANNER THAT WILL ENABLE THE ADMINISTRATOR TO5
DETERMINE IF THE LICENSEE IS COMPLYING WITH THIS ARTICLE 22.6
(b) A LICENSEE MAY KEEP REQUIRED RECORDS IN ANY LOCATION7
SO LONG AS THE LICENSEE IS REASONABLY ABLE TO COMPLY WITH THIS8
SECTION. A LICENSEE SHALL GIVE THE ADMINISTRATOR FREE AND9
REASONABLE ACCESS TO THE RECORDS IN THE LICENSEE 'S STORAGE10
LOCATION. A LICENSEE NEED NOT PRESERVE RECORDS PERTAINING TO AN11
EARNED-WAGE ACCESS SERVICES TRANSACTION MADE AS PART OF THE12
LICENSEE'S BUSINESS FOR MORE THAN ONE YEAR AFTER MAKING THE FINAL13
ENTRY RELATED TO THE EARNED-WAGE ACCESS SERVICES TRANSACTION.14
(2) ON OR BEFORE APRIL 15 OF EACH YEAR, A LICENSEE SHALL FILE15
AN ANNUAL REPORT WITH THE ADMINISTRATOR THAT INCLUDES ALL16
RELEVANT INFORMATION , INCLUDING INFORMATION REGARDING17
EARNED-WAGE ACCESS SERVICES ACTIVITIES, THAT THIS SUBSECTION (2)18
AND THE ADMINISTRATOR REASONABLY REQUIRE CONCERNING THE19
BUSINESS AND OPERATIONS CONDUCTED BY THE LICENSEE IN THE STATE20
DURING THE PRECEDING CALENDAR YEAR. THE REPORT MUST INCLUDE:21
(a) THE GROSS REVENUE ATTRIBUTABLE TO EARNED-WAGE ACCESS22
SERVICES;23
(b) THE TOTAL NUMBER OF TRANSACTIONS IN WHICH THE LICENSEE24
PROVIDED PROCEEDS TO CONSUMERS;25
(c) THE TOTAL NUMBER OF CONSUMERS TO WHOM THE LICENSEE26
PROVIDED PROCEEDS;27
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(d) T HE TOTAL DOLLAR AMOUNT OF PROCEEDS THE LICENSEE1
PROVIDED TO CONSUMERS; AND2
(e) THE TOTAL DOLLAR AMOUNT OF SERVICE FEES THE PROVIDER3
RECEIVED FROM CONSUMERS.4
(3) T HE ADMINISTRATOR SHALL KEEP THE REPORTS FILED5
PURSUANT TO THIS SECTION CONFIDENTIAL AND NOT OPEN THEM TO THE6
PUBLIC FOR INSPECTION PURSUANT TO "CORA", PART 2 OF ARTICLE 72 OF7
TITLE 24. THE ADMINISTRATOR MAY ANNUALLY PUBLISH AND MAKE8
AVAILABLE TO THE PUBLIC AN AGGREGATED AND ANONYMIZED ANALYSIS9
OF THE INFORMATION SUBMITTED BY ALL LICENSEES AS REQUIRED IN10
SUBSECTION (2) OF THIS SECTION . THE ANALYSIS MUST NOT INCLUDE11
PERSONALLY IDENTIFYING INFORMATION OF A CONSUMER.12
(4) A LICENSEE SHALL SUBMIT THE REPORT REQUIRED IN13
SUBSECTION (2) OF THIS SECTION UNDER OATH OR AFFIRMATION AND IN14
THE FORM PRESCRIBED BY THE ADMINISTRATOR BY RULE.15
(5) IF A LICENSEE FAILS TO FILE AN ANNUAL REPORT ON OR BEFORE16
APRIL 15, THE ADMINISTRATOR MAY IMPOSE A PENALTY OF FIVE DOLLARS17
PER DAY BEGINNING APRIL 16 AND EACH DAY THEREAFTER UNTIL THE18
DATE OF THE FILED REPORT. IF A LICENSEE FAILS TO FILE THE REPORT AND19
PAY THE PENALTY IMPOSED ON OR BEFORE MAY 1 OF THE SAME YEAR, THE20
LICENSEE'S LICENSE AUTOMATICALLY EXPIRES.21
5-22-106. Examinations - investigations.22
(1) UPON REQUEST OF THE ADMINISTRATOR , A PROVIDER SHALL23
GIVE THE ADMINISTRATOR FREE AND REASONABLE ACCESS TO THE24
PROVIDER'S RECORDS FOR THE ADMINISTRATOR TO EXAMINE FOR THE25
PURPOSE OF INVESTIGATING POSSIBLE VIOLATIONS OF THIS ARTICLE 22 OR26
AS A MEANS OF LAWFULLY SECURING INFORMATION RETAINED BY THE27
HB26-1046-15-
PROVIDER.1
(2) (a) (I) I F A PROVIDER 'S RECORDS ARE LOCATED OUTSIDE2
COLORADO, THE PROVIDER SHALL , AT THE PROVIDER 'S OPTION, EITHER3
MAKE THE RECORDS AVAILABLE TO THE ADMINISTRATOR AT A4
CONVENIENT LOCATION WITHIN THE STATE OR PAY THE REASONABLE AND5
NECESSARY EXPENSES FOR THE ADMINISTRATOR OR THE ADMINISTRATOR'S6
REPRESENTATIVE TO EXAMINE THE RECORDS AT THE LOCATION WHERE THE7
RECORDS ARE MAINTAINED. THIS SUBSECTION (2)(a)(I) DOES NOT APPLY8
IF SUBSECTION (2)(a)(II) OF THIS SECTION APPLIES.9
(II) THE PROVIDER SHALL MAKE, AT THE COST OF THE PROVIDER,10
THE PROVIDER 'S RECORDS AVAILABLE FOR EXAMINATION AT THE11
ADMINISTRATOR'S OFFICE OR AT ANOTHER LOCATION THE ADMINISTRATOR12
DETERMINES IS APPROPRIATE IF THE ADMINISTRATOR DETERMINES THAT:13
(A) THE EXAMINATION OF THE RECORDS AT THE LOCATION WHERE14
THE RECORDS ARE MAINTAINED ENDANGERS THE SAFETY OF THE15
ADMINISTRATOR OR THE ADMINISTRATOR'S REPRESENTATIVE; OR16
(B) T HERE ARE NOT ADEQUATE FACILITIES AT THE LOCATION17
WHERE THE RECORDS ARE MAINTAINED TO CONDUCT THE EXAMINATION.18
(b) T HE ADMINISTRATOR MAY DESIGNATE REPRESENTATIVES ,19
INCLUDING COMPARABLE OFFICIALS OF THE STATE IN WHICH THE RECORDS20
ARE LOCATED , TO INSPECT THE RECORDS ON THE ADMINISTRATOR 'S21
BEHALF.22
(c) IF A PROVIDER 'S RECORDS ARE LOCATED INSIDE COLORADO,23
THE ADMINISTRATOR MAY REQUIRE A PROVIDER TO MAKE, AT THE COST OF24
THE PROVIDER, THE PROVIDER'S RECORDS AVAILABLE FOR EXAMINATION25
AT THE ADMINISTRATOR 'S OFFICE OR AT ANOTHER LOCATION THE26
ADMINISTRATOR DETERMINES IS APPROPRIATE IF THE ADMINISTRATOR27
HB26-1046-16-
DETERMINES THAT:1
(I) THE EXAMINATION OF THE RECORDS AT THE LOCATION WHERE2
THE RECORDS ARE MAINTAINED ENDANGERS THE SAFETY OF THE3
ADMINISTRATOR OR THE ADMINISTRATOR'S REPRESENTATIVE; OR4
(II) T HERE ARE NOT ADEQUATE FACILITIES AT THE LOCATION5
WHERE THE RECORDS ARE MAINTAINED TO CONDUCT THE EXAMINATION.6
(3) T HE ADMINISTRATOR MAY ADMINISTER OATHS OR7
AFFIRMATIONS AND, UPON THE ADMINISTRATOR'S OWN MOTION OR UPON8
THE REQUEST OF ANY PARTY , MAY SUBPOENA WITNESSES AND COMPEL9
THEIR ATTENDANCE, ADDUCE EVIDENCE, AND REQUIRE THE PRODUCTION10
OF ANY MATTER THAT IS RELE VANT TO THE INVESTIGATION , INCLUDING11
THE EXISTENCE , DESCRIPTION , NATURE , CUSTODY , CONDITION , AND12
LOCATION OF ANY BOOKS, DOCUMENTS, OR OTHER TANGIBLE THINGS AND13
THE IDENTITY AND LOCATION OF PERSONS HAVING KNOWLEDGE OF14
RELEVANT FACTS OR ANY OTHER MATTER REASONABLY CALCULATED TO15
LEAD TO THE DISCOVERY OF ADMISSIBLE EVIDENCE.16
(4) I F A PROVIDER FAILS TO OBEY A SUBPOENA OR TO GIVE17
TESTIMONY WITHOUT LAWFUL EXCUSE , THE ADMINISTRATOR MAY18
REQUEST AN ORDER OF COMPLIANCE FROM THE APPROPRIATE DISTRICT19
COURT.20
(5) A FTER THE ADMINISTRATOR HAS EXAMINED A LICENSEE 'S21
RECORDS PURSUANT TO THIS SECTION , THE ADMINISTRATOR SHALL22
PROVIDE A REPORT OF THE EXAMINATION TO THE LICENSEE AND MAY23
REQUIRE THE LICENSEE TO TAKE CORRECTIVE ACTION . THE LICENSEE24
SHALL, WITHIN A TIME AND IN A MANNER DETERMINED BY THE25
ADMINISTRATOR, TAKE THE CORRECTIVE ACTION REQUIRED IN THE REPORT26
AND PROVIDE PROOF THAT THE CORRECTIVE ACTION WAS TAKEN . THE27
HB26-1046-17-
CORRECTIVE ACTION REQUIRED MAY INCLUDE REFUNDS OF EXCESS1
CHARGES AND CORRECTIONS OF DISCLOSURES REQUIRED BY THIS ARTICLE2
22. THE ADMINISTRATOR NEED NOT ALLOW A LICENSEE TO TAKE3
CORRECTIVE ACTION PRIOR TO THE ADMINISTRATOR FILING LEGAL OR4
ADMINISTRATIVE ACTION FOR A REPEATED OR WILLFUL VIOLATION OF THIS5
ARTICLE 22.6
(6) T HE ADMINISTRATOR SHALL NOT DISCLOSE THE NAME OR7
IDENTITY OF A PERSON WHOSE ACTS OR CONDUCT IS UNDER8
INVESTIGATION OR EXAMINATION PURSUANT TO THIS SECTION OR THE9
FACTS DISCLOSED IN THE INVESTIGATION OR EXAMINATION, EXCEPT FOR10
DISCLOSURES IN ACTIONS OR ENFORCEMENT PROCEEDINGS INITIATED11
PURSUANT TO THIS ARTICLE 22.12
5-22-107. Administrative procedures - applicability.13
EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE 22, SECTIONS14
24-4-102 TO 24-4-106 GOVERN RULES ADOPTED AND ADMINISTRATIVE15
ACTIONS TAKEN BY THE ADMINISTRATOR PURSUANT TO THIS ARTICLE 22;16
EXCEPT THAT SECTION 24-4-104 (3) DOES NOT APPLY TO THIS ARTICLE 22.17
5-22-108. Applicability - exceptions.18
(1) T HIS ARTICLE 22 APPLIES TO A PERSON THAT ACTS AS A19
PROVIDER FOR A CONSUMER, REGARDLESS OF WHETHER THE PROVIDER'S20
BUSINESS IS LOCATED INSIDE OR OUTSIDE OF COLORADO.21
(2) THIS ARTICLE 22 DOES NOT APPLY TO A FEDERAL DEPARTMENT22
OR AGENCY; A STATE OR MUNICIPAL GOVERNMENT ; OR A CORPORATION23
ORGANIZED UNDER THE GENERAL BANKING , SAVINGS AND LOAN , OR24
CREDIT UNION LAWS OF COLORADO, ANOTHER STATE , OR THE UNITED25
STATES.26
(3) NOTWITHSTANDING THE "UNIFORM CONSUMER CREDIT CODE",27
HB26-1046-18-
ARTICLES 1 TO 9 OF THIS TITLE 5:1
(a) EARNED-WAGE ACCESS SERVICES OFFERED AND PROVIDED BY2
A LICENSEE IN ACCORDANCE WITH THIS ARTICLE 22 ARE NOT:3
(I) A VIOLATION OF OR NONCOMPLIANT WITH A LAW GOVERNING:4
(A) MINIMUM OR OVERTIME WAGES;5
(B) D EDUCTIONS FROM PAYROLL , SALARY , WAGES ,6
COMPENSATION, OR OTHER INCOME; OR7
(C) THE PURCHASE OF, SALE OR ASSIGNMENT OF, OR AN ORDER FOR8
EARNED BUT UNPAID INCOME;9
(II) A LOAN OR OTHER FORM OF CREDIT OR DEBT; OR10
(III) MONEY TRANSMISSION;11
(b) A LICENSEE OR A PROVIDER THAT IS LAWFULLY OPERATING12
UNDER SECTION 5-22-103 (1)(b) PENDING LICENSURE IS NOT A CREDITOR,13
DEBT COLLECTOR , COLLECTION AGENCY , LENDER , OR MONEY14
TRANSMITTER WHEN PROVIDING EARNED-WAGE ACCESS SERVICES; AND15
(c) SERVICE FEES PAID IN ACCORDANCE WITH THIS ARTICLE 22 TO16
A LICENSEE ARE NOT INTEREST OR FINANCE CHARGES.17
(4) (a) EARNED-WAGE ACCESS SERVICES OFFERED AND PROVIDED18
BY A LICENSEE IN ACCORDANCE WITH THIS ARTICLE 22 ARE NOT:19
(I) A VIOLATION OF OR NONCOMPLIANT WITH A LAW GOVERNING:20
(A) D EDUCTIONS FROM PAYROLL , SALARY , WAGES ,21
COMPENSATION, OR OTHER INCOME; OR22
(B) THE PURCHASE OF, SALE OR ASSIGNMENT OF, OR AN ORDER FOR23
EARNED BUT UNPAID INCOME;24
(II) A LOAN OR OTHER FORM OF CREDIT OR DEBT, NOR SHALL THE25
LICENSEE BE CONSIDERED A CREDITOR, DEBT COLLECTOR, OR LENDER WITH26
RESPECT TO EARNED-WAGE ACCESS SERVICE; OR27
HB26-1046-19-
(III) MONEY TRANSMISSION.1
(b) A PERSON LICENSED UNDER THIS ARTICLE 22 OR A PROVIDER2
THAT IS LAWFULLY OPERATING UNDER SECTION 5-22-103 (1)(b) PENDING3
LICENSURE IS NOT A MONEY TRANSMITTER WHEN PROVIDING4
EARNED-WAGE ACCESS SERVICES.5
(c) SERVICE FEES PAID IN ACCORDANCE WITH THIS ARTICLE 22 TO6
A LICENSEE ARE NOT INTEREST OR FINANCE CHARGES.7
(5) I F THERE IS A CONFLICT BETWEEN THIS ARTICLE 22 AND8
ANOTHER PROVISION OF LAW THAT CONCERNS EARNED -WAGE ACCESS9
SERVICES, THIS ARTICLE 22 PREVAILS.10
5-22-109. Provider duties - residency.11
(1) A PROVIDER SHALL:12
(a) D EVELOP AND IMPLEMENT POLICIES AND PROCEDURES TO13
RESPOND TO QUESTIONS RAISED BY CONSUMERS AND ADDRESS14
COMPLAINTS FROM CONSUMERS IN AN EXPEDIENT MANNER;15
(b) IF THE PROVIDER OFFERS A CONSUMER THE OPTION TO RECEIVE16
PROCEEDS FOR A SERVICE FEE , OFFER TO THE CONSUMER AT LEAST ONE17
REASONABLE OPTION TO OBTAIN PROCEEDS AT NO COST TO THE CONSUMER18
AND CLEARLY EXPLAIN HOW TO ELECT THE NO-COST OPTION;19
(c) B EFORE ENTERING INTO AN AGREEMENT WITH A CONSUMER20
FOR THE PROVISION OF EARNED-WAGE ACCESS SERVICES:21
(I) I NFORM THE CONSUMER OF THEIR RIGHTS UNDER THE22
AGREEMENT; AND23
(II) FULLY AND CLEARLY DISCLOSE ALL SERVICE FEES ASSOCIATED24
WITH THE EARNED-WAGE ACCESS SERVICES;25
(d) I NFORM THE CONSUMER BEFORE IMPLEMENTING MATERIAL26
CHANGES TO THE TERMS AND CONDITIONS OF THE EARNED-WAGE ACCESS27
HB26-1046-20-
SERVICES AGREEMENT;1
(e) A LLOW THE CONSUMER TO CANCEL USE OF THE PROVIDER 'S2
EARNED-WAGE ACCESS SERVICES AT ANY TIME WITHOUT INCURRING A3
CANCELLATION FEE IMPOSED BY THE PROVIDER;4
(f) COMPLY WITH ALL APPLICABLE LOCAL, STATE, AND FEDERAL5
PRIVACY AND INFORMATION SECURITY LAWS;6
(g) PROVIDE PROCEEDS TO A CONSUMER BY THE MEANS MUTUALLY7
AGREED UPON BY THE CONSUMER AND THE PROVIDER; AND8
(h) TO BE REPAID, INCLUDING BY MEANS OF ELECTRONIC FUNDS9
TRANSFER, FOR OUTSTANDING PROCEEDS OR PAYMENT OF SERVICE FEES OR10
OTHER AMOUNTS OWED IN CONNECTION WITH EARNED -WAGE ACCESS11
SERVICES FROM A CONSUMER'S ACCOUNT AT A DEPOSITORY INSTITUTION:12
(I) C OMPLY WITH THE FEDERAL "ELECTRONIC FUND TRANSFER13
ACT", 15 U.S.C. SEC . 1693 ET SEQ ., AND REGULATIONS ADOPTED14
PURSUANT TO THE ACT; AND15
(II) REIMBURSE THE CONSUMER FOR THE FULL AMOUNT OF ANY16
OVERDRAFT OR INSUFFICIENT FUNDS FEES IMPOSED ON A CONSUMER BY17
THE CONSUMER'S DEPOSITORY INSTITUTION THAT WERE CAUSED BY THE18
PROVIDER ATTEMPTING TO SEEK PAYMENT OF OUTSTANDING PROCEEDS ,19
SERVICE FEES, OR OTHER PAYMENTS IN CONNECTION WITH EARNED-WAGE20
ACCESS SERVICES ON A DATE BEFORE THE DATE DISCLOSED TO THE21
CONSUMER OR IN AN AMOUNT DIFFERENT FROM THE AMOUNT DISCLOSED22
TO THE CONSUMER.23
(2) A PROVIDER MAY USE THE MAILING ADDRESS OR STATE OF24
RESIDENCE PROVIDED TO THE PROVIDER BY A CONSUMER OR A25
CONSUMER'S EMPLOYER TO DETERMINE THE CONSUMER 'S STATE OF26
RESIDENCE FOR PURPOSES OF THIS ARTICLE 22.27
HB26-1046-21-
5-22-110. Prohibited acts.1
(1) A PROVIDER SHALL NOT:2
(a) SHARE WITH AN EMPLOYER A PORTION OF A SERVICE FEE THAT3
WAS RECEIVED FROM OR CHARGED TO A CONSUMER FOR EARNED -WAGE4
ACCESS SERVICES;5
(b) R EQUIRE A CONSUMER 'S CREDIT SCORE PROVIDED BY A6
CONSUMER REPORTING AGENCY TO DETERMINE THE CONSUMER 'S7
ELIGIBILITY FOR EARNED-WAGE ACCESS SERVICES;8
(c) A CCEPT PAYMENT OF OUTSTANDING PROCEEDS OR SERVICE9
FEES FROM A CONSUMER BY MEANS OF A CREDIT CARD OR CHARGE CARD;10
(d) CHARGE A CONSUMER A LATE FEE, A DEFERRAL FEE, INTEREST,11
OR ANY OTHER PENALTY OR CHARGE FOR FAILURE TO PAY OUTSTANDING12
PROCEEDS OR SERVICE FEES;13
(e) REPORT TO A COLLECTION AGENCY OR TO A DEBT COLLECTOR14
INFORMATION ABOUT THE CONSUMER REGARDING THE INABILITY OF THE15
PROVIDER TO BE REPAID OUTSTANDING PROCEEDS OR SERVICE FEES;16
(f) I MPOSE THE TYPE OF SERVICE FEE DESCRIBED IN SECTION17
5-22-102 (12)(a) IN EXCESS OF THE FOLLOWING:18
(I) B EGINNING ON THE EFFECTIVE DATE OF THIS ARTICLE 2219
THROUGH JUNE 30, 2027:20
(A) FIVE DOLLARS FOR AN ADVANCE OF PROCEEDS EQUAL TO OR21
LESS THAN SEVENTY-FIVE DOLLARS; OR22
(B) S EVEN DOLLARS AND FIFTY CENTS FOR AN ADVANCE OF23
PROCEEDS GREATER THAN SEVENTY-FIVE DOLLARS; OR24
(II) ON OR AFTER JULY 1, 2027, AND EACH YEAR THEREAFTER, THE25
AMOUNT OF THE SERVICE FEE DESCRIBED IN SUBSECTION (1)(f)(I) OF THIS26
SECTION MAY BE INCREASED BY BUT MUST NOT EXCEED AN AMOUNT THAT27
HB26-1046-22-
IS GREATER THAN THE ANNUAL PERCENTAGE CHANGE IN THE UNITED1
STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS2
CONSUMER PRICE INDEX , OR A SUCCESSOR INDEX , FOR3
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID FOR BY URBAN4
CONSUMERS;5
(g) ENTER INTO AN AGREEMENT WITH AN EMPLOYER THAT WOULD6
REQUIRE A CONSUMER WHO IS AN EMPLOYEE OF THE EMPLOYER TO USE7
EARNED-WAGE ACCESS SERVICES AS A NECESSARY CONDITION OF8
RECEIVING PAYMENT OF WAGES;9
(h) (I) C OMPEL OR ATTEMPT TO COMPEL A CONSUMER TO PAY10
OUTSTANDING PROCEEDS OR SERVICE FEES TO THE PROVIDER THROUGH:11
(A) A LAWSUIT AGAINST THE CONSUMER;12
(B) THE USE OF A THIRD PARTY TO PURSUE COLLECTION FROM THE13
CONSUMER ON THE PROVIDER'S BEHALF; OR14
(C) THE SALE OF OUTSTANDING PROCEEDS OR SERVICE FEES TO A15
THIRD-PARTY COLLECTOR OR DEBT BUYER FOR COLLECTION FROM THE16
CONSUMER.17
(II) T HE LIMITATIONS IN THIS SUBSECTION (1)(h) DO NOT18
PRECLUDE A PROVIDER FROM USING THE METHODS IN SUBSECTION (1)(h)(I)19
OF THIS SECTION TO:20
(A) COMPEL PAYMENT OF OUTSTANDING PROCEEDS PAID TO OR21
SERVICE FEES INCURRED BY A CONSUMER THROUGH FRAUDULENT OR22
OTHER UNLAWFUL MEANS; OR23
(B) P URSUE AN EMPLOYER FOR BREACH OF ITS CONTRACTUAL24
OBLIGATIONS TO THE PROVIDER.25
(i) SOLICIT A TIP, GRATUITY, OR DONATION DURING THE PORTION26
OF AN EARNED -WAGE ACCESS TRANSACTION THAT BEGINS WHEN A27
HB26-1046-23-
CONSUMER REQUESTS PROCEEDS AND ENDS WHEN THE PROVIDER1
CONFIRMS THAT A TRANSFER OF PROCEEDS HAS BEEN APPROVED AND2
PROVIDES A LISTING OF THE FEES THAT WILL BE CHARGED IN CONNECTION3
WITH THAT TRANSFER OF PROCEEDS.4
5-22-111. Powers and duties of administrator - fees.5
(1) IN ADDITION TO OTHER POWERS GRANTED BY THIS ARTICLE 22,6
THE ADMINISTRATOR MAY:7
(a) RECEIVE AND ACT ON COMPLAINTS, TAKE ACTION DESIGNED TO8
OBTAIN VOLUNTARY COMPLIANCE WITH THIS ARTICLE 22, OR COMMENCE9
PROCEEDINGS ON THE ADMINISTRATOR'S INITIATIVE;10
(b) COUNSEL PERSONS AND GROUPS ON THEIR RIGHTS AND DUTIES11
DESCRIBED IN THIS ARTICLE 22;12
(c) E STABLISH PROGRAMS FOR THE EDUCATION OF CONSUMERS13
WITH RESPECT TO EARNED-WAGE ACCESS SERVICES;14
(d) MAKE STUDIES APPROPRIATE TO EFFECTUATE THE PURPOSES15
AND POLICIES OF THIS ARTICLE 22 AND MAKE THE RESULTS OF A STUDY16
AVAILABLE TO THE PUBLIC IF THE STUDY HAS BEEN AGGREGATED FOR ALL17
LICENSEES AND DOES NOT CONTAIN INFORMATION TO IDENTIFY LICENSEES18
OR CONSUMERS;19
(e) EMPLOY ADMINISTRATIVE LAW JUDGES FROM THE OFFICE OF20
ADMINISTRATIVE COURTS IN THE DEPARTMENT OF PERSONNEL TO21
CONDUCT HEARINGS ON A MATTER RELATED TO THIS ARTICLE 22; AND22
(f) E XCHANGE INFORMATION WITH ANOTHER GOVERNMENTAL23
AGENCY OR OFFICIAL THAT HAS REGULATORY AUTHORITY COMPARABLE24
TO THAT OF THE ADMINISTRATOR , SUBJECT TO AN APPROPRIATE25
CONFIDENTIALITY AGREEMENT BETWEEN THE ADMINISTRATOR AND THE26
OTHER AGENCY OR OFFICIAL OR AS OTHERWISE PERMITTED BY LAW. THIS27
HB26-1046-24-
SUBSECTION (1)(f) DOES NOT ALLOW THE EXCHANGE OF INFORMATION1
WITH PROVIDERS.2
(2) A PERSON IS NOT LIABLE PURSUANT TO THIS ARTICLE 22 FOR AN3
ACT COMMITTED OR OMITTED IN GOOD FAITH IN CONFORMITY WITH A4
RULE, ADMINISTRATOR'S INTERPRETATION, OR ADMINISTRATOR'S WRITTEN5
RESPONSE TO A PERSON PURSUANT TO A WRITTEN REQUEST ON BEHALF OF6
THE IDENTIFIED PERSON.7
(3) T HE ADMINISTRATOR SHALL SET THE LICENSE APPLICATION8
FEE, RENEWAL FEE , AND PROVIDER NAME -CHANGE FEE IN AN AMOUNT9
CALCULATED TO OFFSET THE DIRECT AND INDIRECT COSTS OF10
ADMINISTERING THIS ARTICLE 22.11
5-22-112. Administrative enforcement - cease and desist -12
penalty - rules.13
(1) THE ADMINISTRATOR SHALL ENFORCE THIS ARTICLE 22.14
(2) T HE ADMINISTRATOR MAY ADOPT RULES FOR THE15
ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE 22.16
(3) A FTER NOTICE AND A HEARING , THE ADMINISTRATOR MAY17
ORDER A PROVIDER OR A PERSON ACTING ON THE PROVIDER'S BEHALF TO18
CEASE AND DESIST FROM ENGAGING IN VIOLATIONS OF THIS ARTICLE 22 OR19
ANY RULE OR ORDER LAWFULLY MADE PURSUANT TO THIS ARTICLE 22.20
THE ORDER ISSUED BY THE ADMINISTRATOR MAY ALSO REQUIRE THE21
PROVIDER OR PERSON TO PAY A PENALTY IN AN AMOUNT OF UP TO ONE22
THOUSAND DOLLARS FOR EACH VIOLATION OF THE CEASE -AND-DESIST23
ORDER.24
(4) A RESPONDENT AGGRIEVED BY AN ACTION OR ORDER OF THE25
ADMINISTRATOR MAY OBTAIN JUDICIAL REVIEW OF THE ACTION OR ORDER26
IN THE COLORADO COURT OF APPEALS. THE ADMINISTRATOR MAY OBTAIN27
HB26-1046-25-
AN ORDER OF THE COURT FOR ENFORCEMENT OF THE ADMINISTRATOR 'S1
ORDER IN THE DISTRICT COURT UNDER SECTION 24-4-106. ALL2
PROCEEDINGS AUTHORIZED UNDER THIS SECTION ARE GOVERNED BY3
SECTIONS 24-4-105 AND 24-4-106.4
(5) (a) W ITH RESPECT TO AN ACTION BROUGHT TO ENJOIN5
VIOLATIONS OF THIS ARTICLE 22, THE ADMINISTRATOR MAY APPLY TO THE6
COURT OF APPROPRIATE JURISDICTION FOR A TEMPORARY RESTRAINING7
ORDER OR A PRELIMINARY INJUNCTION AGAINST A RESPONDENT PENDING8
FINAL DETERMINATION OF PROCEEDINGS . IF THE COURT FINDS AFTER A9
HEARING THAT THERE IS REASONABLE CAUSE TO BELIEVE THAT THE10
RESPONDENT IS ENGAGING IN OR IS LIKELY TO ENGAGE IN CONDUCT11
SOUGHT TO BE RESTRAINED , THE COURT MAY GRANT A TEMPORARY12
RESTRAINING ORDER OR PRELIMINARY INJUNCTION. THE COURT MAY ALSO13
ISSUE AN ORDER OR JUDGMENT AS MAY BE NECESSARY TO RESTORE A14
CONSUMER WHO HAS BEEN AFFECTED BY A VIOLATION , AN AGREEMENT,15
OR CONDUCT TO THE CONSUMER'S ORIGINAL POSITION OR TO COMPENSATE16
A CONSUMER IF THERE IS REASONABLE CAUSE TO BELIEVE THAT17
SUFFICIENT FUNDING TO MAKE REFUNDS TO THE CONSUMER WILL NOT BE18
AVAILABLE AT A FUTURE DATE.19
(b) A BOND OR OTHER SECURITY IS NOT REQUIRED OF THE20
ADMINISTRATOR BEFORE RELIEF UNDER THIS SUBSECTION (5) MAY BE21
GRANTED.22
5-22-113. Civil actions by administrator - penalty.23
(1) THE ADMINISTRATOR MAY BRING A CIVIL ACTION AGAINST A24
PROVIDER OR A PERSON ACTING ON THE PROVIDER'S BEHALF TO RECOVER25
A CIVIL PENALTY FOR WILLFULLY VIOLATING THIS ARTICLE 22 OR FOR26
REPEATEDLY AND WILLFULLY VIOLATING THIS ARTICLE 22. IF THE COURT27
HB26-1046-26-
FINDS THAT THE DEFENDANT HAS WILLFULLY VIOLATED THIS ARTICLE 22,1
THE COURT MAY ASSESS A CIVIL PENALTY OF NO MORE THAN FIVE2
THOUSAND DOLLARS PER VIOLATION . IF THE COURT FINDS THAT THE3
DEFENDANT HAS ENGAGED IN A COURSE OF REPEATED AND WILLFUL4
VIOLATIONS OF THIS ARTICLE 22, THE COURT MAY ASSESS A CIVIL PENALTY5
OF NO MORE THAN TEN THOUSAND DOLLARS PER VIOLATION . A COURT6
SHALL NOT IMPOSE A CIVIL PENALTY PURSUANT TO THIS SUBSECTION (1)7
FOR VIOLATIONS OF THIS ARTICLE 22 THAT OCCUR MORE THAN FOUR8
YEARS BEFORE THE ACTION IS BROUGHT.9
(2) I F THE ADMINISTRATOR PREVAILS IN AN ACTION BROUGHT10
UNDER THIS SECTION:11
(a) T HE ADMINISTRATOR MAY SEEK TO RECOVER REASONABLE12
COSTS OF THE INVESTIGATION AND ACTION AND MAY REQUEST AN ORDER13
FOR REIMBURSEMENT OF REASONABLE ATTORNEY FEES; AND14
(b) THE COURT MAY AWARD THE ADMINISTRATOR REASONABLE15
COSTS OF INVESTIGATION AND ORDER REIMBURSEMENT OF REASONABLE16
ATTORNEY FEES.17
(3) IN AN ACTION BROUGHT BY THE ADMINISTRATOR UNDER THIS18
ARTICLE 22, THE ADMINISTRATOR DOES NOT HAVE A RIGHT TO TRIAL BY19
JURY, BUT A DEFENDANT MAY REQUEST, AND A COURT SHALL GRANT UPON20
REQUEST, A JURY TRIAL UNDER THE COLORADO RULES OF CIVIL21
PROCEDURE.22
5-22-114. Assurance of discontinuance.23
IF A PERSON FILES A COMPLAINT WITH THE ADMINISTRATOR AS24
DESCRIBED IN SECTION 5-22-111 (1)(a) OR WITH A COURT AS DESCRIBED25
IN SECTION 5-22-112 THAT A PROVIDER HAS ENGAGED IN CONDUCT THAT26
FAILS TO COMPLY WITH AN ORDER BY THE ADMINISTRATOR OR BY THE27
HB26-1046-27-
COURT, THE ADMINISTRATOR OR THE COURT MAY ACCEPT AN ASSURANCE1
IN WRITING THAT THE PROVIDER WILL NOT ENGAGE IN THE CONDUCT IN2
THE FUTURE. THE ADMINISTRATOR MAY REQUIRE THE PROVIDER AS PART3
OF THE ASSURANCE TO PAY UP TO ONE THOUSAND DOLLARS FOR EACH4
VIOLATION AND REIMBURSE THE ADMINISTRATOR FOR THE5
ADMINISTRATOR'S REASONABLE COSTS INCURRED IN INVESTIGATING THE6
CONDUCT.7
SECTION 2. In Colorado Revised Statutes, 13-4-102, add8
(2)(oo) as follows:9
13-4-102. Jurisdiction.10
(2) The court of appeals has initial jurisdiction to:11
(oo) REVIEW FINAL DECISIONS OR ORDERS OF THE ADMINISTRATOR12
AS PROVIDED IN ARTICLE 22 OF TITLE 5.13
SECTION 3. In Colorado Revised Statutes, 24-4-104, amend14
(3)(b) as follows:15
24-4-104. Licenses - issuance, suspension or revocation,16
renewal.17
(3) (b) The full investigation requirement specified in subsection18
(3)(a) of this section shall not apply to licenses issued under ARTICLE 2219
OF TITLE 5; articles 1.1, 9, 10.1, and 11.5 of title 40; or article 2 of title 42.20
SECTION 4. Act subject to petition - effective date -21
applicability. (1) This act takes effect at 12:01 a.m. on the day following22
the expiration of the ninety-day period after final adjournment of the23
general assembly (August 12, 2026, if adjournment sine die is on May 13,24
2026); except that, if a referendum petition is filed pursuant to section 125
(3) of article V of the state constitution against this act or an item, section,26
or part of this act within such period, then the act, item, section, or part27
HB26-1046-28-
will not take effect unless approved by the people at the general election1
to be held in November 2026 and, in such case, will take effect on the2
date of the official declaration of the vote thereon by the governor.3
(2) This act applies to conduct occurring on or after the applicable4
effective date of this act.5
HB26-1046-29-