Creates certain requirements for certain earned income access services and related provider contracts.

A1735

ASSEMBLY, No. 1735

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Creates certain requirements for certain earned
income access services and related provider contracts.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning earned income access services,
amending P.L.2005, c.199, and supplementing Title 17 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� (New
section)� As used in P.L.��� , c.�� (C.������� ) (pending before the
Legislature as this bill):

����� �Consumer�
means a natural person working in the State of New Jersey.

����� �Department�
means the Department of Banking and Insurance.

����� �Earned
but unpaid income� means earned income that has not yet been paid to the
consumer by an earned income obligor.

����� �Earned
income� means funds

that a consumer or obligor
has represented, and the earned income access service provider has reasonably
determined based on that representation, have accrued to the benefit of that
consumer for services rendered to an earned income obligor.

����� �Earned
income access service provider� or �provider� means any person that is engaged
in the business of delivering earned but unpaid income to a consumer in New
Jersey through an integration with an employer.� �Earned income access service
provider� shall not include a wage advance provider that does not operate
through an integration with an employer.

����� �Earned
income access services� means the delivery of funds to a consumer that
represent earned but unpaid income and which shall not be considered a loan.

����� "Fees"
means a cost to the consumer for earned income access services required by the
provider.

����� �Nationwide
Multistate Licensing System� means the licensing system owned and operated by
the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference
of State Bank Supervisors, which functions as a system of record for
non-depository, financial services licensing or registration in participating
state agencies, including the District of Columbia and the United States
Territories of Puerto Rico, the US Virgin Islands, and Guam, where it is the
official system for companies and individuals seeking to apply for, amend,
renew, and surrender license authorities.

����� �Obligor�
means an employer or another person who is contractually obligated to pay the
consumer any sum of money on an hourly, project-based, piecework, or other
basis for labor or services provided by the consumer.� �Obligor� shall not
include a customer of an obligor or other third party whose obligation to make
any payment to a consumer is based solely on the consumer�s agency relationship
with the obligor.

�������
�Proceeds� mean the amount of earned but unpaid
income that has been remitted to the consumer by a provider.

����� "Voluntary
payments" means a remittance amount of the consumer�s choosing, paid by
the consumer to the provider, that may or may not be considered revenue by the
provider, and which shall not be subject to any annual percentage rate
calculation.

����� 2.�� (New
section)� a.� An earned income access service provider shall offer earned
income access services through a contractual arrangement with an obligor or a
service provider to an obligor, in which the provider:

����� (1)� reasonably
verifies a consumer�s earned income; and

����� (2)� delivers
earned but unpaid income to the consumer prior to the date on which the obligor
is scheduled to pay the consumer and the amount of the earned but unpaid

income delivered by the provider to the consumer is
reduced or withheld from the consumer�s next payment.

����� b.�� An
obligor shall not share information with an earned income access service
provider pertaining to the obligor�s accrued and expected obligations to the
consumer unless:

����� (1)� the
obligor or service provider to the obligor has entered into a contractual
arrangement for earned income access services with the earned income access
service provider; or

����� (2)� the
consumer consents to sharing that information.

����� c.�� The
imposition of a fee on a consumer who opts to use the services of an earned
income access service provider, and the reduction or withholding from a
consumer�s payment as set forth in subsection a. of this section, shall not
violate section 4 of P.L.1965, c.173 (C.34:11-4.4) or section 13 of P.L.1999,
c.90 (C.34:11-4.14) , or subsection a. of section 41 of P.L.1996, c.157
(C.17:11C-41), provided that the consumer is informed in writing of the right
to receive the full amount of the consumer�s wages, without discount or
expense, if the consumer waits until the regular payment due date.

�������
d.�� If a provider charges interest or finances
charges, or their equivalent, to a consumer who opts to use the services of an
earned income access service provider, determined by the application of a
stated rate over a defined period of time, then the provisions of the civil
usury law, R.S.31:1-1, and the criminal usury law, N.J.S. 2C:21-19, shall
apply.
�
This provision shall not apply to fees and voluntary
payments as defined pursuant to P.L.��� , c.��
(C. ) (pending before the Legislature as this bill).

����� 3.�� (New
section)� a.� Any earned income access services that fail to comply with the
provisions of section 2 of P.L.��� , c.�� (C.������� ) (pending before the
Legislature as this bill) shall be subject to:

����� (1)� the
provisions of the civil usury law, R.S.31:1-1, and the criminal usury law,
N.J.S. 2C:21-19;

����� (2)� any
provisions of Titles 17 or 56 of the Revised Statutes that would otherwise
apply to a loan or credit transaction; and

����� (3)� the
federal "Truth in Lending Act," 15 U.S.C. s.1601 et seq. and the
regulations implementing that act, 12 C.F.R. s.226 et seq., to provide any
disclosures required for closed-end loans.

����� b.�� Earned
income access services that do not comply with section 2 of P.L.��� , c.��
(C.������� ) (pending before the Legislature as this bill) shall be considered
a loan, even if those services are provided without recourse, and any required
fees, other required contributions, or voluntary payments for those services
shall be considered as interest when determining the rate of interest for
purposes of compliance with a law with which an earned income access service
provider is required to comply pursuant to the provisions of this section.

����� c.�� (1)�
(a)� Beginning the effective date of P.L.��� , c.�� (pending before the
Legislature as this bill), a person shall not offer earned income access
services in this State without first obtaining a license from the Department of
Banking and Insurance in accordance with this paragraph and paying the
licensing or renewal fee, as applicable, set by the department.� The department
may issue a license to an applicant pursuant to this paragraph only if the
department is satisfied that the applicant possesses the necessary
organization, expertise, and financial integrity to supply the services sought
to be offered.� A license issued pursuant to this paragraph shall be valid for
a period of one year.

����� (b)� A
license issued pursuant to this paragraph shall not be transferable.

����� (c)� The
department may suspend, revoke or place on probation a licensee with reasonable
notice under any of the following circumstances:

����� (i)�� The
licensee has engaged in fraudulent activity that constitutes a violation of
State or federal law;

����� (ii)� The
department has received consumer complaints that justify an action under this
subparagraph to protect the safety and interests of consumers; or

����� (iii)������������ �
The licensee fails to comply with any requirement set forth in P.L.��� , c.��
(C.������� ) (pending before the Legislature as this bill).

����� (d) The
department is authorized to establish relationships or contracts with the
Nationwide

Multistate Licensing System and Registry, or other entities
designated by the Nationwide Multistate Licensing System and Registry to
collect and maintain records and process transaction fees or other fees related
to licensees or other persons subject to this division.� The department may use
the Nationwide Multistate Licensing System and Registry as a channeling agent
for requesting information from, and distributing information to, the
Department of Justice or any governmental agency.

����� (e)� The
department may at any time investigate the business of all licensees and, for
the purpose of effectuating P.L.��� , c.�� (C.��� ) (pending before the
Legislature as this bill), the department shall have free access, to the books,
papers, and records of the licensee, and shall also have the authority to
examine, under oath, any person whose testimony the department may require
relative to such business. The cost and charges of any such examination or
investigation shall be borne by the licensee.� The examination shall be
conducted in accordance with generally accepted examination procedures and
pursuant to established and objective criteria developed by the department. The
department shall issue to the licensee an itemized invoice setting forth the
number of hours and the work performed in connection with the examination.

����� (2)
�

The application for the license pursuant to P.L.��� , c.�� (C.�������
) (pending before the Legislature as this bill) shall be made in the form and
medium to be prescribed by the department by regulation, utilizing the
Nationwide Multistate Licensing System.

�Each provider shall
include with its renewal a list of the fees charged by the provider.

����� d.�� An
initial application for a license pursuant to P.L.��� ,
c. (C. )
(pending before the Legislature as this bill) shall include:

����� (1)� the
legal name of the applicant, each current or proposed business address of the
applicant, and any fictitious or trade name the applicant uses or plans to use
in conducting its earned income access services with a consumer or obligor;

����� (2)� the
legal name, any former or fictitious name, and the residential and business
address of each executive officer and responsible individual of the applicant,
and each controlling person of the applicant;

����� (3)� a
concise description of the current and former business of the applicant for the
five years before the application is submitted or if the business has operated
for less than five years, for the time the business has operated, including its
products and services;

����� (4)� the
name, address, and telephone number of a person who manages each server the
applicant expects to use in conducting its earned income access services
activity with a consumer or obligor;

����� (5)� a
list of all other states in which the applicant is licensed or registered to
engage in the earned income access services and any license revocation, license
suspension, or other disciplinary action taken against the provider in another
state and any license applications rejected by another state;

����� (6)� a
list of any criminal conviction, deferred prosecution agreement, and pending
criminal proceeding in any jurisdiction against the applicant, any executive
officer, responsible individual, and controlling person of the applicant, and
each person over which the applicant has control;

����� (7)� a
list of any litigation, arbitration, or administrative proceeding in any
jurisdiction in which the applicant, or an executive officer,� responsible
individual, or controlling person of the applicant has been� a party to for the
five years before the application is submitted, determined to be material in
accordance with generally accepted accounting principles and, to the extent the
applicant would be required to disclose the litigation, arbitration, or
administrative proceeding in the applicant�s audited financial statements,
reports to equity owners, and similar statements or reports;

����� (8)� a
list of any bankruptcy or receivership proceeding in any jurisdiction for the
10 years prior to the application�s submission in which the applicant, any
executive officer, responsible individual, or controlling person of the
applicant, or person over which the applicant has control, was a debtor;

����� (9)� the
United States Postal Service address and electronic mail address to which
communications from the department may be sent; the name, United States Postal
Service address, and electronic mail address of the registered agent of the
applicant in this State, if applicable;

����� (10)�
a copy of any certificate of coverage for each liability, casualty,
business-interruption, or cyber-security insurance policy maintained by the
applicant for itself or the applicant�s users;

����� (11)�
a description of the structure or organization of the applicant, including any
parent or subsidiary of the applicant, and whether any parent or subsidiary is
publicly traded;

����� (12)�
if applicable, the date on which and the state in which the applicant is
formed, and a copy of a current certificate of good standing issued by that
state;

����� (13)�
a copy of the applicant�s audited financial statements for the most recent
fiscal year and, if available, for the two-year period next preceding the
submission of the application;

����� (14)�
a copy of the applicant�s unconsolidated financial statements for the current
fiscal year, whether audited or not, and if available, for the two-year period
next preceding the submission of the application;

����� (15)
if a corporation has control of the applicant and the corporation�s equity
interests are publicly traded in the United States, a copy of the audited
financial statement of the corporation for the most recent fiscal year or most
recent report of the corporation filed under section 13 of the �Securities
Exchange Act of 1934,� 15 U.S.C. s.78m;

����� (16)
if a corporation has control of the applicant and the corporation�s equity
interests are publicly traded outside the United States, a copy of the audited
financial statement of the corporation for the most recent documentation
similar to that required in paragraph (15) of this subsection, filed with the
foreign regulator in the domicile of the corporation;

����� (17)�
if available, for each executive officer, responsible individual, or
controlling person of the applicant, for the three years before the application
is submitted, the employment history, and the history of any enforcement action
against those persons or legal proceeding to which those persons were a party.

����� e.�� The
department may conduct a criminal history records check of the applicant, any
controlling persons, executive officers, and responsible individuals of the
applicant and require the applicant to submit the fingerprints of those persons
as part of the application. The department is authorized to exchange
fingerprint data with and receive criminal history record information from the
State Bureau of Identification in the Division of State Police and the Federal
Bureau of Investigation consistent with applicable State and federal laws,
rules and regulations, for the purposes of facilitating determinations
concerning licensure eligibility for the applicant, any controlling persons,
executive officers, and responsible individuals of the applicant. The applicant
shall bear the cost for the criminal history record background check, including
all costs of administering and processing the check. The Division of State
Police shall promptly notify the department in the event any person who was the
subject of a criminal history record background check pursuant to this section,
is arrested for a crime or offense in this State after the date the background
check was performed, whether the person is a prospective new licensee, or
subsequently, a current license holder.

����� f.��� No
license shall be issued by the department to an individual who has, within the
five years preceding the submission of an application for a license, been
convicted of embezzlement, forgery, fraud, or theft.

�������
4.�� (New
section)� A provider shall comply with all of the following requirements:

����� a.�� A
provider shall permit a consumer to cancel participation in an earned income
access program at any time without incurring a charge for doing so.

����� b.�� Before
entering a contract to provide a consumer with earned income access services,
the provider shall provide the consumer with a written paper

or
electronic document.� That document shall meet all of the following
requirements:

����� (1)� inform
the consumer of the consumer�s rights under the earned income access program

����� (2)� include
a statement at the top of the document, which identifies the department as the
regulatory agency overseeing the services performed and provides contact
information for the department through which consumers can submit complaints;

����� (3)� be
written clearly and conspicuously in a minimum 12-point type, or, if provided
electronically, be easily legible; and

����� (4)� be
written in language intended to be understood by a layperson.

����� c.�� A
provider shall deliver funds to the consumer via any means mutually agreeable
to the consumer and the provider.

����� d.�� A
provider shall not require a consumer

to open an account at a particular
depository institution as a condition of providing earned income access
services.

����� e.�� A
provider shall not receive an additional payment to defer collection of the
amount advanced or defer an additional required payment beyond the worker�s
payday

or beyond the date that the consumer is contractually obligated
to repay the consumer�s income-based advance.

����� f.��� A
provider shall not solicit a consumer to delay the delivery of an advance for
the purpose of increasing the total charge the provider may collect.

����� g.�� (1)
The provider shall not rely on a credit report or score in order to determine
the consumer's eligibility for proceeds.

����� (2)� A
provider shall not report a consumer�s repayment or failed repayment of an
earned income advance to any person other than the consumer or obligor
.

����� h.�� If
an obligor fails to meet its payroll obligation or contractual obligation to a
consumer or fails to meet its contractual obligation to a provider, the
consumer shall not be held liable for any resulting failed repayment of an
earned income advance. However, nothing in this subsection shall limit the
remedies available against the obligor.

����� i.��� (1)�
Fees and voluntary payments for earned income access services cannot exceed an
average cap established by the department following receipt of the reports
established pursuant to section 5 of P.L. , c.��
(pending before the Legislature as this bill) and a stakeholder comment period.

����� (2)� If
necessary, the provider shall conduct a reconciliation on an average basis
across all earned income access service consumers annually and refund any
excess fees or voluntary payments in excess of the cap determined by the
department pursuant to paragraph (1) of this subsection within 30 days of the
end of the annual period.� A provider is not prohibited from conducting
reconciliations and issuing refunds more frequently provided those processes
result in full compliance.

����� j.��� Providers
shall comply with National Automated Clearing House Association rules. When a
debit is initiated to a consumer's account for a payment, and the debit is
returned for insufficient or uncollected funds, the debit can be reinitiated up
to two times within one hundred eighty days after the original entry.

����� k.�� The
provider shall not provide to any third-party, including obligors, any
non-public personal information without a consumer�s consent except in
compliance with applicable federal and state law, including but not limited to
the sharing of information agreed to under section 2 of P.L.��� , c.��
(C.������� ) (pending before the Legislature as this bill).

����� l.��� The
provider shall not sell, share, or otherwise disclose personal information that
is solicited or collected from a consumer other than to provide the services.

����� 5.�� (New
section)� A provider shall file an annual report with the commissioner that
includes:

����� a.�� Gross
revenue from fees and voluntary payments received by the provider for the
earned income access service. The provider shall distinguish between revenue
received from consumers and revenue received from third parties providing
services to consumers;

����� b.�� The
total number of earned income access transactions provided to consumers;

����� c.�� The
total dollar amount of proceeds the provider remitted to consumers;

����� d.�� The
total dollar amount of fees and voluntary payments the provider received from
consumers for earned income access services;

����� e.�� The
total number of earned income access transactions for which the provider has
not received any repayment;

����� f.��� The
total dollar amount of proceeds for which the provider has not received any
repayment; and

����� g.�� The
total number of earned income access transactions wholly uncollected from
consumers, and total dollar amount of those proceeds.

����� 6.�� (New
section)� a.� The department shall grant or deny any earned income access
service provider license application within 120 days of a completed application.

����� b.�� The
department may refuse an application for an earned income access services
license or license reciprocity application if:

����� (1)� the
application is incomplete in a material respect;

����� (2)� the
application includes false, misleading, or inaccurate

information;

����� (3)� any
applicant, controlling person, key individual, or responsible individual of an
applicant has engaged in dishonest or unethical practices in a financial
service or in the securities, commodities, banking, insurance, or investment
advisory business; or

����� (4)� Any
material aspect of the license application as represented

by
the application requirements contained in section 3 of P.L.��� , c.�� (C. )
(pending before the Legislature as this bill).

����� c.�� Any
person who violates any provision of P.L.��� , c.�� (C.������� ) (pending
before the Legislature as this bill) shall be liable for a penalty, in addition
to any other penalty imposed by law, of not more than $5,000 for the first
violation and not more than $15,000 for subsequent violations.� The penalty
shall be paid to the department to be used in accordance with P.L.��� , c.��
(C.������� ) (pending before the Legislature as this bill) and shall be
collected pursuant to the �Penalty Enforcement Law of 1999,� P.L.1999, c.274
(C.2A:58-10 et seq.). The court shall also award court costs and
reasonable attorneys' fees to the department.

����� 7.�� (New
section)� a.� An earned income access service provider shall comply with all
applicable federal laws.

����� b.�� In
addition to any other remedies provided by law, a violation of any federal law
or regulation shall be deemed a violation of this section and a basis upon
which the commissioner may take enforcement action pursuant to section 4 of
this act.

����� 8.�� (New
section)� Notwithstanding the provisions of the �Administrative Procedure Act,�
P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the Commissioner of
Banking and Insurance may adopt, immediately upon filing with the Office of
Administrative Law, rules and regulations that the commissioner deems necessary
provide for the licensing of providers under this act, including the
establishment of investigation and licensing fees, and such other rules and
regulations as are necessary or proper to carry out the provisions of this act,
which rules and regulations shall be effective for a period not to exceed 360
days from the date of the filing. The commissioner shall thereafter amend,
adopt, or readopt the rules and regulations in accordance with the requirements
of P.L.1968, c.410 (C.52:14B-1 et seq.).

����� 9.�� Section
2 of
P.L.2005, c.199
(C.17:1C-34) is amended to read
as follows:

����� 2.�� For
the purposes of this act:

����� "Assessment"
means the assessment imposed pursuant to section 3 of this act for the special
functions of the division as provided in that section.

����� "Commissioner"
means the Commissioner of Banking and Insurance.

����� "Department"
means the Department of Banking and Insurance.

����� "Depository
institution" means any entity holding a state charter for a bank, savings
bank, savings and loan association or credit union, irrespective of whether the
entity accepts deposits.

����� "Division"
means the Division of Banking in the Department of Banking and Insurance.

�����
[
"Nationwide Mortgage Licensing System and
Registry" means the mortgage licensing system developed and maintained by
the Conference of State Bank Supervisors and the American Association of
Residential Mortgage Regulators, or their successors, and utilized in this
State pursuant to the provisions of the "New Jersey Residential Mortgage
Lending Act," sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 et
seq.).
]

����� "
Nationwide
Multistate Licensing System� means the licensing system owned and operated by
the State Regulatory Registry, LLC, a wholly-owned subsidiary of the Conference
of State Bank Supervisors, which functions as a system of record for
non-depository, financial services licensing or registration in participating
state agencies, including the District of Columbia and the United States
Territories of Puerto Rico, the US Virgin Islands, and Guam, where it is the
official system for companies and individuals seeking to apply for, amend,
renew, and surrender license authorities.

����� "Other
financial entity" means a person who is licensed or registered pursuant
to:� the "New Jersey Consumer Finance Licensing Act," sections 1
through 49 of P.L.1996, c.157 (C.17:11C-1 et seq.); the "New Jersey
Residential Mortgage Lending Act," sections 1 through 39 of P.L.2009, c.53
(C.17:11C-51 et seq.), other than a financial entity with respect to the
payment of required fees to the Nationwide
[
Mortgage
]

Multistate
Licensing System
[
and Registry
]
as set forth by that nationwide system and
registry; "The Check Cashers Regulatory Act of 1993," P.L.1993, c.383
(C.17:15A-30 et seq.); the "New Jersey Money Transmitters Act,"
P.L.1998, c.14 (C.17:15C-1 et seq.); the "Insurance Premium Finance
Company Act," P.L.1968, c.221 (C.17:16D-1 et seq.); the "Retail
Installment Sales Act of 1960," P.L.1960, c.40 (C.17:16C-1 et seq.); the
"Door-to-Door Retail Installment Sales Act of 1968," P.L.1968, c.223
(C.17:16C-61.1 et seq.); the "Home Repair Financing Act," P.L.1960,
c.41 (C.17:16C-62 et seq.); the "Door-to-Door Home Repair Sales Act of
1968," P.L.1968, c.224 (C.17:16C-95 et seq.); P.L.1979, c.16 (C.17:16G-1
et seq.); the "Foreclosure Rescue Fraud Prevention Act," P.L.2011,
c.146 (C.46:10B-53 et al.);
the �Mortgage Servicers Licensing Act,�
P.L.2019, c.65 (C.17:16F-27 et al.);
the provisions of P.L.2019, c.200
(C.17:16ZZ-1 et al.);
[
or
]
the "pawnbroking law," R.S.45:22-1 et seq
;
or P.L. , c.
(C. ) (pending before the
Legislature as this bill)
.

����� "Regulated
entity" means a depository institution, other financial entity or person
chartered, licensed or registered by the Division of Banking or who should be
chartered, licensed or registered.

(cf:
P.L.2019, c.200, s.17)

����� 10.�
This act shall take effect immediately but shall remain inoperative until the
120th day next following enactment, except the Commissioner of Banking and
Insurance may take any anticipatory administrative action in advance as shall
be necessary for the implementation of this act.

STATEMENT

���� This bill creates certain
requirements for earned income access service providers.

���� Under the bill, �earned income
access services� means the delivery of funds to a consumer that represent
earned but unpaid income and which should not be considered a loan.� �Obligor�
means an employer or another person who is contractually obligated to pay the
consumer any sum of money on an hourly, project-based, piecework, or other
basis for labor or services provided by the consumer.� The bill defines
�consumer� to mean a natural person working in the state of New Jersey.

���� The bill requires an earned
income access service provider to offer earned income access services through a
contractual arrangement with an obligor or a service provider to an obligor, in
which the provider:

���� (1)�� reasonably verifies a
consumer�s earned income; and

���� (2)�� delivers earned but
unpaid income to the consumer prior to the date on which the obligor is
scheduled to pay the consumer and the amount of the earned but unpaid income
delivered by the provider to the consumer is reduced or withheld from the
consumer�s next payment.

���� The bill prohibits an obligor
from sharing information with an earned income access service provider
pertaining to the obligor�s accrued and expected obligations to the consumer
unless:

���� (1)�� the obligor or service
provider to the obligor has entered into a contractual arrangement for earned
income access services with the earned income access service provider; or

���� (2)�� the consumer consents to
sharing that information.

���� Under the bill, if a provider
charges interest or finances charges, or their equivalent, to a consumer who
opts to use the services of an earned income access service provider,
determined by the application of a stated rate over a defined period of time,
then the provisions of the civil usury law and the criminal usury law are to
apply, except that this provision is not to apply to fees and voluntary
payments as defined pursuant to the bill.

���� The bill provides that any
earned income access services that fail to comply with the provisions of the
bill are subject to:

���� (1)�� the provisions of the
civil usury law and the criminal usury law;

���� (2)�� any provisions of Titles
17 or 56 of the Revised Statutes that would otherwise apply to a loan or credit
transaction; and

���� (3)�� the federal "Truth
in Lending Act," 15 U.S.C. s.1601 et seq. and the regulations implementing
that act to provide any disclosures required for closed-end loans.

���� Earned income access services
that do not comply with section 2 of the bill are to be considered a loan, even
if those services are provided without recourse, and any required fees, other
required contributions, or voluntary payments for those services are to be
considered as interest when determining the rate of interest for purposes of
compliance with a law with which an earned income access service provider is
required to comply pursuant to the provisions of the bill.

���� The bill provides that a
person is not to offer earned income access services in this State without
first obtaining a license from the Department of Banking and Insurance in
accordance with the bill and paying the licensing or renewal fee, as
applicable, set by the department.� The department may issue a license to an
applicant only if the department is satisfied that the applicant possesses the
necessary organization, expertise, and financial integrity to supply the
services sought to be offered.� A license is to be valid for a period of one
year, is not to be transferable, and the application for a license is to be
granted or denied within 120 days of completed application.� The department may
suspend, revoke or place on probation a licensee with reasonable notice under
any of the following circumstances:

���� (1)�� The licensee has engaged
in fraudulent activity that constitutes a violation of State or federal law;

���� (2)�� The department has
received consumer complaints that justify an action to protect the safety and
interests of consumers; or

���� (3)�� The licensee fails to
comply with any requirement set forth in the bill.

���� Under the bill, the department
is authorized to establish relationships or contracts with the Nationwide

Multistate
Licensing System and Registry, or other entities designated by the Nationwide
Multistate Licensing System and Registry to collect and maintain records and
process transaction fees or other fees related to licensees or other persons
subject to the bill.� The department may use the Nationwide Multistate
Licensing System and Registry as a channeling agent for requesting information
from, and distributing information to, the Department of Justice or any
governmental agency.

���� The bill authorizes the
department investigate the business of all licensees, have free access, to the
books, papers, and records of any licensee, and examine, under oath, any person
whose testimony the department may require. The cost and charges of any such
examination or investigation are to be borne by the licensee.

���� The bill provides that no
license is to be issued by the department to an individual who has, within the
five years preceding the submission of an application for a license, been
convicted of embezzlement, forgery, fraud, or theft.