Earned wage access services

AN ACT Relating to establishing a new chapter for the licensing 1
and regulation of businesses providing earned wage access services; 2
adding a new chapter to Title 31 RCW; and prescribing penalties.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. DEFINITIONS. The definitions in this 5
section apply throughout this chapter unless the context clearly 6
requires otherwise.7
(1) "Consumer" means any individual who resides in this state. A 8
provider may use the mailing address or state of residence provided 9
by a consumer to determine the consumer's state of residence for 10
purposes of this chapter. 11
(2) "Consumer-directed wage access services" means offering or 12
providing an advance of earned but unpaid income directly to 13
consumers based on the consumer's representations and the provider's 14
reasonable determination of the consumer's earned but unpaid income.15
(3) "Department" means the department of financial institutions 16
as established under chapter 43.320 RCW. 17
(4) "Director" means the director of the department of financial 18
institutions. 19
(5) "Earned but unpaid income" means salary, wages, compensation, 20
or other income that a consumer or an employer has represented, and 21
S-0495.1
SENATE BILL 5328
State of Washington 69th Legislature 2025 Regular Session
By Senators Lovick, Dozier, and Nobles
Read first time 01/17/25. Referred to Committee on Business,
Financial Services & Trade.
p. 1 SB 5328
that a provider has reasonably determined, has been earned or has 1
accrued to the benefit of the consumer in exchange for the consumer's 2
provision of services to the employer or on behalf of the employer, 3
including on an hourly, project-based, piecework, or other basis and 4
including where the consumer is acting as an independent contractor 5
of the employer, but has not, at the time of the payment of proceeds, 6
been paid to the consumer by the employer. 7
(6) "Earned wage access services" means the business of providing 8
consumer-directed wage access services, employer-integrated wage 9
access services, or both. 10
(7) "Employer" means: 11
(a) A person who employs a consumer; or 12
(b) Any other person who is contractually obligated to pay a 13
consumer earned but unpaid income in exchange for a consumer's 14
provision of services to the employer or on behalf of the employer, 15
including on an hourly, project-based, piecework, or other basis and 16
including where the consumer is acting as an independent contractor 17
with respect to the employer. "Employer" does not mean a customer of 18
an employer or any other person whose obligation to make a payment of 19
salary, wages, compensation, or other income to a consumer is not 20
based on the provision of services by that consumer for or on behalf 21
of such person. 22
(8) "Employer-integrated wage access services" means the business 23
of delivering to consumers access to earned but unpaid income that is 24
based on employment, income, or attendance data obtained directly or 25
indirectly from an employer. 26
(9) "Fee" includes: 27
(a) A fee imposed by a provider for delivery or expedited 28
delivery of proceeds to a consumer; 29
(b) A subscription or membership fee imposed by a provider for a 30
bona fide group of services that includes earned wage access 31
services; or 32
(c) An amount paid by an employer to a provider on a consumer's 33
behalf, which entitles the consumer to receive proceeds at a reduced 34
fee or no cost to the consumer. 35
(10) "License" means a license issued under the authority of this 36
chapter. 37
(11) "Licensee" means a person to whom one or more licenses have 38
been issued. 39
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(12) "Nationwide mortgage licensing system" means a licensing 1
system developed and maintained by the conference of state bank 2
supervisors for licensing and registration. 3
(13) "Officer" means an official appointed by an earned wage 4
access services company for the purpose of making business decisions 5
or corporate decisions for the earned wage access services company.6
(14) "Outstanding proceeds" means a payment of proceeds to a 7
consumer by a provider that has not yet been repaid to that provider.8
(15) "Person" means an individual, partnership, association, 9
limited liability company, limited liability partnership, trust, 10
corporation, and any other legal entity. 11
(16) "Principal" means any person who controls, directly or 12
indirectly through one or more intermediaries, alone or in concert 13
with others, a 10 percent or greater interest in a partnership, 14
company, association, corporation, or a limited liability company, 15
and is the owner of a sole proprietorship. 16
(17) "Proceeds" means a payment to a consumer by a provider that 17
is based on earned but unpaid income. 18
(18) "Provider" means: 19
(a) A person who is in the business of offering and providing 20
earned wage access services to consumers. 21
(b) "Provider" does not include any of the following:22
(i) A service provider, such as a payroll service provider, whose 23
role may include verifying the available earnings, but who is not 24
contractually obligated to fund proceeds delivered as part of an 25
earned wage access service; or 26
(ii) An employer that offers a portion of salary, wages, or 27
compensation directly to its employees or independent contractors 28
before the normally scheduled pay date. 29
NEW SECTION. Sec. 2. APPLICATION OF CHAPTER. (1) All offers and 30
provisions of earned wage access services to a consumer by a 31
provider, or persons subject to this chapter, are subject to the 32
authority and restrictions of this chapter.33
(2) This chapter does not apply to any person doing business 34
under, and as permitted by, any law of this state or of the United 35
States relating to banks, savings banks, trust companies, savings and 36
loan or building and loan associations, or credit unions.37
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NEW SECTION. Sec. 3. LICENSE REQUIRED. Beginning July 1, 2026, 1
no person may offer or provide earned wage access services in this 2
state without first obtaining and maintaining a license in accordance 3
with this chapter, except those exempt under section 2 of this act.4
NEW SECTION. Sec. 4. LICENSE— APPLICATION— BACKGROUND CHECKS — 5
FEE— SURETY BOND. (1) A person subject to this chapter shall apply for 6
a license required under this chapter by submitting an application to 7
the nationwide mortgage licensing system and registry or in the form 8
prescribed by the director. The application must contain at least the 9
following information:10
(a) The name and the business addresses of the applicant;11
(b) If the applicant is a partnership, limited liability company, 12
or association, the name of every member; 13
(c) If the applicant is a corporation, the name, residence 14
address, and telephone number of each officer and director;15
(d) The street address, county, and municipality from which 16
business is to be conducted or a statement that the business is to be 17
conducted entirely online; and 18
(e) Other information that the director may require by rule.19
(2)(a) As part of or in connection with an application for any 20
license under this section, or periodically upon license renewal, 21
each officer, director, and principal applicant must furnish 22
identifying information, including: 23
(i) Fingerprints for submission to the Washington state patrol, 24
the federal bureau of investigation, or any governmental agency or 25
entity authorized to receive this information for a state and 26
national criminal history background check; 27
(ii) Personal history; 28
(iii) Experience; 29
(iv) Business record; 30
(v) Purposes; and 31
(vi) Other pertinent facts, as the director may reasonably 32
require. 33
(b) As part of or in connection with an application for a license 34
under this chapter, or periodically upon license renewal, the 35
director may receive criminal history record information that 36
includes nonconviction data as defined in RCW 10.97.030. The 37
department may only disseminate nonconviction data obtained under 38
this section to criminal justice agencies. 39
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(3) At the time of filing an application for a license under this 1
chapter, each applicant shall pay to the director or through the 2
nationwide mortgage licensing system and registry an investigation 3
fee and the license fee in an amount determined by rule by the 4
director to be sufficient to cover the director's costs in 5
administering this chapter. 6
(4) Each applicant must file and maintain a surety bond, approved 7
by the director, executed by the applicant as obligor and by a surety 8
company authorized to do a surety business in this state as surety, 9
whose liability as such surety must not exceed in the aggregate the 10
penal sum of the bond. The penal sum of the bond must be a minimum of 11
$30,000. The bond must run to the state of Washington as obligee for 12
the use and benefit of the state and of any person or persons who may 13
have a cause of action against the obligor under this chapter. The 14
bond must be conditioned that the obligor as licensee will faithfully 15
conform to and abide by this chapter and all the rules adopted under 16
this chapter. The bond must pay to the state and any person or 17
persons having a cause of action against the obligor all moneys that 18
may become due and owing to the state and those persons under this 19
chapter. The bond must be continuous and may be canceled by the 20
surety upon the surety giving written notice to the director of its 21
intent to cancel the bond. The cancellation applies 45 days after the 22
notice is received by the director. Instead of a surety bond, if the 23
applicant is a Washington business corporation, the applicant may 24
maintain unimpaired capital, surplus, and long-term subordinated debt 25
in an amount that at any time its outstanding promissory notes or 26
other evidences of debt, other than long-term subordinated debt, in 27
an aggregate sum do not exceed three times the aggregate amount of 28
its unimpaired capital, surplus, and long-term subordinated debt. The 29
director may define qualifying "long-term subordinated debt" for 30
purposes of this section. 31
(5) The director may waive one or more requirements of this 32
section or permit an applicant to submit other information instead of 33
the required information. 34
NEW SECTION. Sec. 5. LICENSE— DIRECTOR'S DUTIES. (1) The 35
director shall issue and deliver a license to the applicant to offer 36
and provide earned wage access services in accordance with this 37
chapter if, after investigation, the director finds that:38
(a) The applicant has paid all required fees; 39
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(b) The applicant has submitted a complete application in 1
compliance with section 4 of this act; 2
(c) Neither the applicant nor its officers or principals have had 3
a license issued under this section or any other section, in this 4
state or another state, revoked or suspended within the last five 5
years of the date of filing of the application; 6
(d) Neither the applicant nor any of its officers or principals 7
have been convicted of a gross misdemeanor involving dishonesty or 8
financial misconduct or a felony or a violation of the banking laws 9
of this state or of the United States within seven years of the 10
filing of an application; and 11
(e) The financial responsibility, experience, character, and 12
general fitness of the applicant are such as to command the 13
confidence of the community and to warrant a belief that the business 14
will be operated honestly, fairly, and efficiently within the 15
purposes of this chapter. 16
(2) If the director does not find the conditions of subsection 17
(1) of this section have been met, the director may not issue the 18
license. The director shall notify the applicant of the denial and 19
return to the applicant the bond posted and the sum paid by the 20
applicant as a license fee, retaining the investigation fee to cover 21
the costs of investigating the application. The director shall 22
approve or deny every application for license under this chapter 23
within 90 days from the filing of a complete application with the 24
fees and the approved bond. 25
NEW SECTION. Sec. 6. LICENSE— INFORMATION CONTAINED. (1) The 26
license must display the following information:27
(a) The address at which the business is to be conducted or 28
whether the business is to be conducted entirely online;29
(b) The full name of the licensee, and, if the licensee is a 30
copartnership or association, the names of its members; and31
(c) If the licensee is a corporation, the date and place of its 32
incorporation. 33
(2) The license is not transferable or assignable.34
NEW SECTION. Sec. 7. LICENSEE— ASSESSMENT— BOND TIME — TIME OF 35
PAYMENT. A licensee shall, for each license held, on or before the 36
first day of each March, pay to the director an annual assessment as 37
determined by rule by the director. The licensee is responsible for 38
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payment of the annual assessment for the previous calendar year if 1
the licensee had a license for any time during the preceding calendar 2
year, regardless of whether they surrendered their license during the 3
calendar year or whether their license was suspended or revoked. At 4
the same time, the licensee shall file with the director the required 5
bond or otherwise demonstrate compliance with section 4 of this act.6
NEW SECTION. Sec. 8. LICENSING— APPLICATIONS— REGULATION OF 7
LICENSEES— DIRECTOR'S DUTIES AND AUTHORITY — FINES— ORDERS— STATUTE OF 8
LIMITATIONS. (1) The director shall enforce all laws and rules 9
relating to the licensing and regulation of licensees and persons 10
subject to this chapter.11
(2) The director may deny applications for licenses for:12
(a) Failure of the applicant to demonstrate within its 13
application for a license that it meets the requirements for 14
licensing in sections 4 and 5 of this act; 15
(b) Violation of an order issued by the director under this 16
chapter or another chapter administered by the director including, 17
but not limited to, cease and desist orders and temporary cease and 18
desist orders; 19
(c) Revocation or suspension of a license to offer or provide 20
earned wage access services by this state, another state, or by the 21
federal government within five years of the date of submittal of a 22
complete application for a license; or 23
(d) Filing an incomplete application when that incomplete 24
application has been filed with the department for 60 or more days, 25
provided that the director has given notice to the licensee that the 26
application is incomplete, informed the applicant why the application 27
is incomplete, and allowed at least 20 days for the applicant to 28
complete the application. 29
(3) The director may condition, suspend, or revoke a license 30
issued under this chapter if the director finds that:31
(a) The licensee has failed to pay any fee due to the state of 32
Washington, has failed to maintain in effect the bond or permitted 33
substitute required under this chapter, or has failed to comply with 34
any specific order or demand of the director lawfully made and 35
directed to the licensee in accordance with this chapter;36
(b) The licensee, either knowingly or without the exercise of due 37
care, has violated any provision of this chapter or any rule adopted 38
under this chapter; 39
p. 7 SB 5328
(c) A fact or condition exists that, if it had existed at the 1
time of the original application for the license, clearly would have 2
allowed the director to deny the application for the original 3
license; or 4
(d) The licensee failed to comply with any directive, order, or 5
subpoena issued by the director under this chapter.6
(4) The director may condition, revoke, or suspend the license 7
with respect to which grounds for conditioning, revocation, or 8
suspension may occur or exist. 9
(5) The director may impose fines of up to $100 per day, per 10
violation, upon the licensee or other person subject to this chapter 11
for: 12
(a) Any violation of this chapter; or 13
(b) Failure to comply with any directive, order, or subpoena 14
issued by the director under this chapter. 15
(6) The director may issue an order directing the licensee or 16
other person subject to this chapter to: 17
(a) Cease and desist from conducting business in a manner that is 18
injurious to the public or violates any provision of this chapter;19
(b) Take such affirmative action as is necessary to comply with 20
this chapter; 21
(c) Make a refund or restitution to a consumer who is damaged as 22
a result of a violation of this chapter; or 23
(d) Refund all fees received through any violation of this 24
chapter. 25
(7) The director may issue an order removing from office or 26
prohibiting from participation in the affairs of any licensee, or 27
both, any officer, principal, or any person subject to this chapter 28
for: 29
(a) False statements or omission of material information from an 30
application for a license that, if known, would have allowed the 31
director to deny the original application for a license;32
(b) Conviction of a gross misdemeanor involving dishonesty or 33
financial misconduct or a felony; 34
(c) Suspension or revocation of a license to offer or provide 35
earned wage access services in this state or another state;36
(d) Failure to comply with any order or subpoena issued under 37
this chapter; or 38
(e) Failure to obtain a license for activity that requires a 39
license. 40
p. 8 SB 5328
(8) Except to the extent prohibited by another statute, the 1
director may engage in informal settlement of complaints or 2
enforcement actions including, but not limited to, payment to the 3
department for purposes of financial literacy and education programs 4
authorized under RCW 43.320.150. If any person subject to this 5
chapter makes a payment to the department under this section, the 6
person may not advertise such payment. 7
(9) Whenever the director determines that the public is likely to 8
be substantially injured by delay in issuing a cease and desist 9
order, the director may immediately issue a temporary cease and 10
desist order. The order may direct the licensee to discontinue any 11
violation of this chapter, to take such affirmative action as is 12
necessary to comply with this chapter, and may include a summary 13
suspension of the licensee's license and may order the licensee to 14
immediately cease the conduct of business under this chapter. The 15
order becomes effective at the time specified in the order. Every 16
temporary cease and desist order must include a provision that a 17
hearing must be held upon request to determine whether the order will 18
become permanent. Such hearing must be held within 14 days of receipt 19
of a request for a hearing unless otherwise specified in chapter 20
34.05 RCW. 21
(10) A licensee may surrender a license by delivering to the 22
director written notice of surrender, but the surrender does not 23
affect the licensee's civil or criminal liability, if any, for acts 24
committed before the surrender, including any administrative action 25
initiated by the director to suspend or revoke a license, impose 26
fines, compel the payment of restitution to borrowers or other 27
persons, or exercise any other authority under this chapter. The 28
statute of limitations on actions not subject to RCW 4.16.160 that 29
are brought under this chapter by the director is five years.30
(11) The revocation, suspension, or surrender of a license does 31
not impair or affect the obligation of a preexisting lawful contract 32
between the licensee and a consumer. 33
(12) Every license issued under this chapter remains in force and 34
effect until it has been surrendered, revoked, or suspended in 35
accordance with this chapter. However, the director may reinstate 36
suspended licenses or issue new licenses to a licensee whose license 37
or licenses have been revoked if the director finds that the licensee 38
meets all the requirements of this chapter. 39
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(13) A license issued under this chapter expires upon the 1
licensee's failure to comply with the annual assessment requirements 2
in section 7 of this act. The department must provide notice of the 3
expiration to the address of record provided by the licensee. On the 4
15th day after the department provides notice, if the assessment 5
remains unpaid, the license expires. The licensee must receive notice 6
before expiration and have the opportunity to stop the expiration as 7
set forth in rule. 8
NEW SECTION. Sec. 9. LICENSEE'S OBLIGATIONS. A person required 9
to be licensed under this chapter shall comply with the following 10
requirements:11
(1) Develop and implement policies and procedures to respond to 12
questions raised by consumers and address complaints from consumers 13
in an expedient manner; 14
(2) Whenever a provider offers a consumer the option to receive 15
proceeds for a fee, offer that consumer at least one reasonable 16
option to obtain proceeds at no cost and clearly explain how to elect 17
that no-cost option; 18
(3) Before entering into an agreement with a consumer for the 19
provision of earned wage access services, do both of the following:20
(a) Inform the consumer of their rights under the agreement;21
(b) Fully and clearly disclose all fees associated with the 22
earned wage access services; and 23
(c) Inform the consumer of the services and fees associated with 24
subscriptions or memberships that are not provided for in section 25
10(4) of this act; 26
(4) Inform the consumer of any material changes to the terms and 27
conditions of the earned wage access services before implementing 28
those changes for that consumer; 29
(5) Allow the consumer to cancel use of the licensee's earned 30
wage access services at any time, without incurring a cancellation 31
fee imposed by the licensee; 32
(6) Comply with all applicable local, state, and federal privacy 33
and information security laws; 34
(7) If a licensee solicits, charges, or receives a tip, gratuity, 35
or other donation from a consumer, the licensee shall do both of the 36
following: 37
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(a) Clearly and conspicuously disclose to the consumer 1
immediately before each transaction that a tip, gratuity, or other 2
donation amount may be zero and is voluntary; and 3
(b) Clearly and conspicuously disclose in its service contract 4
with the consumer and elsewhere that tips, gratuities, or donations 5
are voluntary and that the offering of earned wage access services, 6
including the amount of proceeds a consumer is eligible to request 7
and the frequency with which proceeds are provided to a consumer, is 8
not contingent on whether the consumer pays any tip, gratuity, or 9
other donation or on the size of the tip, gratuity, or other 10
donation; 11
(8) Provide proceeds to a consumer by any means mutually agreed 12
upon by the consumer and the licensee; 13
(9) If the licensee will seek repayment of outstanding proceeds 14
or payment of fees or other amounts owed, including voluntary tips, 15
gratuities, or other donations, in connection with the activities 16
covered by this chapter, from a consumer's depository institution, 17
including by means of electronic funds transfer, the licensee shall 18
do both of the following: 19
(a) Comply with applicable provisions of the federal electronic 20
funds transfer act, 15 U.S.C. Sec. 1693 et seq., and regulations 21
adopted under that act; and 22
(b) Reimburse the consumer for the full amount of any overdraft 23
or nonsufficient funds fees imposed on a consumer by the consumer's 24
depository institution that were caused by the licensee attempting to 25
seek payment of any outstanding proceeds, fees, or other payments, in 26
connection with the activities covered by this chapter, including 27
voluntary tips, gratuities, or other donations, on a date before, or 28
in an incorrect amount from, the date or amount disclosed to the 29
consumer. However, the licensee is not subject to the requirements of 30
this subsection with respect to payments of outstanding amounts or 31
fees incurred by a consumer through fraudulent or other unlawful 32
means. 33
NEW SECTION. Sec. 10. PROHIBITED ACTS BY LICENSEES. A person 34
required to be licensed under this chapter may not do any of the 35
following:36
(1) Share with an employer a portion of any fees, voluntary tips, 37
gratuities, or other donations that were received from or charged to 38
a consumer for earned wage access services; 39
p. 11 SB 5328
(2) Require a consumer's credit report or a credit score provided 1
or issued by a consumer reporting agency to determine a consumer's 2
eligibility for earned wage access services; 3
(3) Accept payment of outstanding proceeds, fees, voluntary tips, 4
gratuities, or other donations from a consumer by means of a credit 5
card or charge card; 6
(4) Charge a fee for delivery or expedited delivery in excess of 7
$7.00 per earned wage access services transaction; 8
(5) Charge a late fee, deferral fee, interest, or any other 9
penalty or charge for failure to pay outstanding proceeds, fees, 10
voluntary tips, gratuities, or other donations; 11
(6) Report to a consumer reporting agency or debt collector any 12
information about the consumer regarding the inability of the 13
provider to be repaid outstanding proceeds, fees, voluntary tips, 14
gratuities, or other donations; 15
(7)(a) Compel or attempt to compel payment by a consumer of 16
outstanding proceeds, fees, voluntary tips, gratuities, or other 17
donations to the provider through any of the following means:18
(i) Use of unsolicited outbound telephone calls;19
(ii) A suit against the consumer in a court of competent 20
jurisdiction; 21
(iii) Use of a third party to pursue collection from the consumer 22
on the provider's behalf; or 23
(iv) Sale of outstanding amounts to a third-party collector or 24
debt buyer for collection from the consumer. 25
(b) This subsection (7) does not preclude the use by a licensee 26
of any of the foregoing methods to compel payment of outstanding 27
amounts or fees incurred by a consumer through fraudulent or other 28
unlawful means, nor does this subsection preclude a licensee from 29
pursuing an employer for breach of its contractual obligations to the 30
licensee; 31
(8) If the provider solicits, charges, or receives tips, 32
gratuities, or other donations from a consumer, do any of the 33
following: 34
(a) Mislead or deceive consumers about the voluntary nature of 35
the tips, gratuities, or donations; 36
(b) Make representations that tips, gratuities, or other 37
donations will benefit any specific individuals; or38
(c) Present such voluntary payments as a default option to the 39
consumer. 40
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NEW SECTION. Sec. 11. VIOLATIONS. It is a violation of this 1
chapter for a licensee, its officers, board members, or any other 2
person subject to this chapter to:3
(1) Directly or indirectly employ any scheme, device, or artifice 4
to defraud or mislead any consumer; 5
(2) Directly or indirectly engage in any unfair or deceptive 6
practice toward any consumer; 7
(3) Make, in any manner, any false or deceptive statement or 8
representation with regard to the earned wage access services offered 9
and provided by the licensee; 10
(4) Negligently make any false statement or knowingly and 11
willfully make any omission of material fact in connection with any 12
reports filed with the department by a licensee or in connection with 13
any investigation conducted by the department; or 14
(5) Violate any applicable state or federal law relating to the 15
activities governed by this chapter. 16
NEW SECTION. Sec. 12. ADVERTISEMENTS OR PROMOTIONS. A licensee 17
may not advertise, print, display, publish, distribute, or broadcast 18
or cause or permit to be advertised, printed, displayed, published, 19
distributed, or broadcast, in any manner whatsoever, any statement or 20
representation with regard to the terms and conditions of earned wage 21
access services that is false, misleading, or deceptive.22
NEW SECTION. Sec. 13. SUBPOENA AUTHORITY— APPLICATION— CONTENTS23
— NOTICE— FEES. (1) The director or authorized assistants may apply 24
for and obtain a superior court order approving and authorizing a 25
subpoena in advance of its issuance. The application may be made in 26
the county where the subpoenaed person resides or is found, or the 27
county where the subpoenaed documents, records, or evidence are 28
located, or in Thurston county. The application must:29
(a) State that an order is sought under this section;30
(b) Adequately specify the documents, records, evidence, or 31
testimony; and 32
(c) Include a declaration made under oath that an investigation 33
is being conducted for a lawfully authorized purpose related to an 34
investigation within the department's authority and that the 35
subpoenaed documents, records, evidence, or testimony are reasonably 36
related to an investigation within the department's authority.37
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(2) When an application under this section is made to the 1
satisfaction of the court, the court must issue an order approving 2
the subpoena. An order under this subsection constitutes authority of 3
law for the agency to subpoena the documents, records, evidence, or 4
testimony. 5
(3) The director or authorized assistants may seek approval and a 6
court may issue an order under this section without prior notice to 7
any person, including the person to whom the subpoena is directed and 8
the person who is the subject of an investigation. An application for 9
court approval is subject to the fee and process set forth in RCW 10
36.18.012(3). 11
NEW SECTION. Sec. 14. INVESTIGATIONS AND EXAMINATIONS — 12
DIRECTOR'S DUTIES AND POWERS — PRODUCTION OF INFORMATION — COSTS. (1) 13
For the purpose of discovering violations of this chapter or securing 14
information lawfully required under this chapter, the director may at 15
any time, either personally or by designees, investigate or examine 16
the business and, wherever located, the books, accounts, records, 17
papers, documents, files, and other information used in the business 18
of every licensee and of every person subject to this chapter, 19
whether the person acts or claims to act as principal or agent, or 20
under or without the authority of this chapter. The director or 21
designated representative:22
(a) Must have free access to the employees, offices, and places 23
of business, books, accounts, papers, documents, other information, 24
records, files, safes, and vaults of all such persons during normal 25
business hours; 26
(b) May require the attendance of and examine under oath all 27
persons whose testimony may be required about the business or the 28
subject matter of any investigation, examination, or hearing and may 29
require such persons to produce books, accounts, papers, records, 30
files, and any other information the director or designated persons 31
deem relevant to the inquiry; 32
(c) May require by directive, subpoena, or any other lawful means 33
the production of original books, accounts, papers, records, files, 34
and other information; may require that such original books, 35
accounts, papers, records, files, and other information be copied; or 36
may make copies of such original books, accounts, papers, records, 37
files, or other information; and 38
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(d) May issue a subpoena or subpoena duces tecum requiring 1
attendance by any person identified in this section or compelling 2
production of any books, accounts, papers, records, files, or other 3
documents or information identified in this section.4
(2) The director must make such periodic examinations of the 5
affairs, business, office, and records of each licensee as determined 6
by rule. 7
(3) Every licensee examined or investigated by the director or 8
the director's designee must pay to the director the cost of the 9
examination or investigation of each licensed place of business as 10
determined by rule by the director. 11
(4) In order to carry out the purposes of this section, the 12
director may: 13
(a) Retain attorneys, accountants, or other professionals and 14
specialists as examiners, auditors, or investigators to conduct or 15
assist in the conduct of examinations or investigations;16
(b) Enter into agreements or relationships with other government 17
officials or regulatory associations in order to improve efficiencies 18
and reduce regulatory burden by sharing resources, standardized or 19
uniform methods or procedures, and documents, records, information, 20
or evidence obtained under this section; 21
(c) Use, hire, contract, or employ public or privately available 22
analytical systems, methods, or software to examine or investigate 23
the licensee; 24
(d) Accept and rely on examination or investigation reports made 25
by other government officials, within or without this state;26
(e) Accept audit reports made by an independent certified public 27
accountant for the licensee in the course of that part of the 28
examination covering the same general subject matter as the audit and 29
may incorporate the audit report in the report of the examination, 30
report of investigation, or other writing of the director; or31
(f) Assess the licensee the cost of the services in (a) of this 32
subsection. 33
NEW SECTION. Sec. 15. LICENSEE— RECORDKEEPING— DIRECTOR'S ACCESS34
— REPORT REQUIREMENT — FAILURE TO REPORT. (1) The licensee shall keep 35
and use in the business such books, accounts, records, papers, 36
documents, files, and other information as will enable the director 37
to determine whether the licensee is complying with this chapter and 38
with the rules adopted by the director under this chapter. The 39
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director shall have free access to such books, accounts, records, 1
papers, documents, files, and other information wherever located. 2
Every licensee shall preserve the books, accounts, records, papers, 3
documents, files, and other information relevant to an earned wage 4
access services transaction for at least three years. A licensee or 5
person subject to examination or investigation under this chapter may 6
not withhold, abstract, remove, mutilate, destroy, or secrete any 7
books, accounts, records, papers, documents, files, or other 8
information. 9
(2) Each licensee shall, on or before the first day of July of 10
each year, file a report with the director giving relevant 11
information concerning the earned wage access services business and 12
operations of each licensee during the preceding calendar year, 13
including all of the following information: 14
(a) Gross revenue attributable to those earned wage access 15
services; 16
(b) The total number of transactions in which the licensee 17
provided proceeds to consumers; 18
(c) The total number of unique consumers to whom the licensee 19
provided proceeds; 20
(d) The total dollar amount of proceeds the licensee provided to 21
consumers; 22
(e) The total dollar amount of fees, voluntary tips, gratuities, 23
or other donations the licensee received from consumers;24
(f) The total number of transactions in which the proceeds were 25
provided to consumers for which the provider did not receive 26
repayment of any outstanding proceeds; 27
(g) The total dollar amount of transactions described under (f) 28
of this subsection; 29
(h) The total number of transactions in which proceeds were 30
provided to consumers for which the licensee received partial 31
repayment of outstanding proceeds; 32
(i) The total dollar amount of transactions described under (h) 33
of this subsection and the total dollar amount of unpaid outstanding 34
proceeds attributable to those transactions; 35
(j) The total number of transactions in which outstanding 36
proceeds were repaid after the original scheduled repayment date; and37
(k) The total dollar amount of transactions described under (j) 38
of this subsection. 39
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(3) The report must be made under oath and must be in the form 1
prescribed by the director, who shall make and publish annually an 2
analysis and recapitulation of the reports. Every licensee that fails 3
to file the report required by this chapter within the time required 4
under this chapter is subject to a penalty of $50 per day for each 5
day's delay. The attorney general may bring a civil action in the 6
name of the state for recovery of any such penalty.7
NEW SECTION. Sec. 16. DIRECTOR— BROAD ADMINISTRATIVE DISCRETION8
— RULE MAKING — ACTIONS IN SUPERIOR COURT. (1) The director has the 9
power, and broad administrative discretion, to administer and 10
interpret this chapter to facilitate the delivery of earned wage 11
access services to the citizens of this state by persons subject to 12
this chapter. The director shall adopt all rules necessary to 13
administer this chapter and to ensure complete and full disclosure by 14
licensees of earned wage access services transactions governed by 15
this chapter.16
(2) If it appears to the director that a licensee is conducting 17
business in an injurious manner or is violating any provision of this 18
chapter, the director may order or direct the discontinuance of any 19
such injurious or illegal practice. 20
(3) The director or designated persons, with or without prior 21
administrative action, may bring an action in superior court to 22
enjoin the acts or practices that constitute violations of this 23
chapter and to enforce compliance with this chapter or any rule or 24
order made under this chapter. Upon proper showing, injunctive relief 25
or a temporary restraining order must be granted. The director shall 26
not be required to post a bond in any court proceedings.27
(4) For purposes of this section, "conducting business in an 28
injurious manner" means conducting business in a manner that violates 29
any provision of this chapter or that creates the reasonable 30
likelihood of a violation of any provision of this chapter.31
NEW SECTION. Sec. 17. VIOLATION— NO PENALTY PRESCRIBED — GROSS 32
MISDEMEANOR— GOOD FAITH EXCEPTION. (1) A person who violates, or 33
knowingly aids or abets in the violation of any provision of this 34
chapter, for which no penalty has been prescribed, and a person who 35
fails to perform any act that is the person's duty to perform under 36
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this chapter and for which no penalty has been prescribed for failure 1
to do so, is guilty of a gross misdemeanor. 2
(2) A provision imposing civil penalties or criminal liability 3
under this chapter or rule adopted under this chapter does not apply 4
to an act taken or omission made in good faith in conformity with a 5
written notice, interpretation, or examination report of the director 6
or the director's agent. 7
NEW SECTION. Sec. 18. APPLICABILITY. (1) Notwithstanding any 8
other provision of law, earned wage access services offered and 9
provided by a licensee in accordance with this chapter may not be 10
considered to be any of the following:11
(a) A violation of or noncompliance with any law of this state 12
governing deductions from wages or the purchase, sale or assignment 13
of, or an order for, earned but unpaid income; 14
(b) A loan or other form of credit or debt, nor shall the 15
provider be considered a creditor, credit grantor, credit service 16
business, debt collector, or lender with respect thereto; or17
(c) Money transmission, nor shall the provider be considered a 18
money transmitter for purposes of any law of this state.19
(2) Notwithstanding any other provision of law, fees, voluntary 20
tips, gratuities, or other donations paid by a consumer to a licensee 21
in accordance with this chapter shall not be considered interest or 22
finance charges. If there is a conflict between the provisions of 23
this chapter and any other statute, the provisions of this chapter 24
control. 25
NEW SECTION. Sec. 19. APPLICATION OF ADMINISTRATIVE PROCEDURE 26
ACT. The proceedings for denying license applications, issuing cease 27
and desist orders, suspending or revoking licenses, and imposing 28
civil penalties or other remedies under this chapter, and any review 29
or appeal of such action, are governed by the provisions of the 30
administrative procedure act, chapter 34.05 RCW.31
NEW SECTION. Sec. 20. ENFORCEMENT OF CHAPTER — DIRECTOR'S 32
DISCRETION— HEARING— SANCTIONS— RECOVERY OF COSTS. (1) The director or 33
designated persons may, at their discretion, take such action as 34
provided for in this chapter to enforce this chapter. If the person 35
subject to such action does not appear in person or by counsel at the 36
time and place designated for any administrative hearing that may be 37
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held on the action, then the person is deemed to consent to the 1
action. If the person subject to the action consents, or if after 2
hearing the director finds by a preponderance of the evidence that 3
any grounds for sanctions under this chapter exist, then the director 4
may impose any sanction authorized by this chapter.5
(2) The director may recover the state's costs and expenses for 6
prosecuting violations of this chapter including staff time spent 7
preparing for and attending administrative hearings and reasonable 8
attorneys' fees unless, after a hearing, the director determines no 9
violation occurred. 10
NEW SECTION. Sec. 21. SHORT TITLE. This chapter may be known 11
and cited as the Washington state earned wage access services act.12
NEW SECTION. Sec. 22. Sections 1 through 21 of this act 13
constitute a new chapter in Title 31 RCW.14
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