A Bill for an Act
Page 1, Line 101Concerning the regulation of earned-wage access services.
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.
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 under 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 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.
- 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 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.
A provider shall not:
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.
Page 4, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 4, Line 2SECTION 1. In Colorado Revised Statutes, add article 22 to title
Page 4, Line 35 as follows:
Page 4, Line 4ARTICLE 22
Page 4, Line 5Earned-wage Access Services
Page 4, Line 65-22-101. Short title.
Page 4, Line 7The short title of this article 22 is the "Earned-wage
Page 5, Line 1Access Services Act".
Page 5, Line 25-22-102. Definitions.
Page 5, Line 3As used in this article 22, unless the context otherwise
Page 5, Line 4requires:
Page 5, Line 5(1) "Administrator" means the assistant attorney general
Page 5, Line 6or the attorney general's designee exercising the powers and
Page 5, Line 7performing the duties of the administrator pursuant to part 1 of
Page 5, Line 8article 6 of this title 5.
Page 5, Line 9(2) "Consumer" means an individual who resides in the
Page 5, Line 10state.
Page 5, Line 11(3) "Consumer-directed wage access services" means
Page 5, Line 12services that deliver consumer access to earned but unpaid
Page 5, Line 13income that is based on the consumer's representations and the
Page 5, Line 14provider's reasonable determination of the consumer's earned
Page 5, Line 15but unpaid income.
Page 5, Line 16(4) "Earned but unpaid income" means salary, wages,
Page 5, Line 17compensation, or other income that has not been paid to a
Page 5, Line 18consumer by the consumer's employer and that the consumer or
Page 5, Line 19an employer has represented and a provider has reasonably
Page 5, Line 20determined has been earned or accrued to the benefit of the
Page 5, Line 21consumer by the consumer's provision of services:
Page 5, Line 22(a) To the employer;
Page 5, Line 23(b) On behalf of the employer; or
Page 5, Line 24(c) As an independent contractor.
Page 5, Line 25(5) "Earned-wage access services" means
Page 5, Line 26consumer-directed wage access services or employer-integrated
Page 5, Line 27wage access services.
Page 6, Line 1(6) (a) "Employer" means:
Page 6, Line 2(I) A person that employs a consumer; or
Page 6, Line 3(II) Another person that is contractually obligated to
Page 6, Line 4pay a consumer earned but unpaid income.
Page 6, Line 5(b) "Employer" does not include:
Page 6, Line 6(I) A customer of the employer; or
Page 6, Line 7(II) Another person whose obligation to make a payment
Page 6, Line 8of salary, wages, compensation, or other income to a consumer
Page 6, Line 9is not based on the provision of services by that consumer for or
Page 6, Line 10on behalf of the person.
Page 6, Line 11(7) "Employer-integrated wage access services" means
Page 6, Line 12services that provide consumer access to earned but unpaid
Page 6, Line 13income that is based on employment, income, or attendance data
Page 6, Line 14obtained from an employer or an employer's payroll service
Page 6, Line 15provider.
Page 6, Line 16(8) "Licensee" means a provider licensed by the
Page 6, Line 17administrator pursuant to this article 22 to provide
Page 6, Line 18earned-wage access services.
Page 6, Line 19(9) "Outstanding proceeds" means proceeds paid to a
Page 6, Line 20consumer by a provider that have not yet been repaid to the
Page 6, Line 21provider.
Page 6, Line 22(10) "Proceeds" means a payment to a consumer by a
Page 6, Line 23provider that is based on earned but unpaid income.
Page 6, Line 24(11) (a) "Provider" means a person that provides
Page 6, Line 25earned-wage access services.
Page 6, Line 26(b) "Provider" does not include:
Page 6, Line 27(I) A service vendor, including a payroll service or a
Page 7, Line 1service that verifies available earnings, that is not
Page 7, Line 2contractually obligated to fund proceeds delivered as part of
Page 7, Line 3an earned-wage access service;
Page 7, Line 4(II) An employer that offers a portion of salary, wages, or
Page 7, Line 5compensation directly to its employees or independent
Page 7, Line 6contractors before the normally scheduled pay date; or
Page 7, Line 7(III) An entity that offers or provides earned-wage access
Page 7, Line 8services and reports a consumer's payment or nonpayment of
Page 7, Line 9outstanding proceeds or service fees solely attributable to the
Page 7, Line 10earned-wage access services to a consumer reporting agency
Page 7, Line 11that compiles and maintains files on consumers on a nationwide
Page 7, Line 12basis, as defined in the federal "Fair Credit Reporting Act", 15
Page 7, Line 13U.S.C. sec. 1681a (p).
Page 7, Line 14(12) "Service fee" means:
Page 7, Line 15(a) A fee imposed by a provider for delivery or expedited
Page 7, Line 16delivery of proceeds to a consumer; or
Page 7, Line 17(b) A subscription or membership fee imposed by a provider
Page 7, Line 18for a bona fide group of services that include earned-wage
Page 7, Line 19access services.
Page 7, Line 205-22-103. Earned-wage access services - license - application
Page 7, Line 21- renewal - fees - rules.
Page 7, Line 22(1) (a) Beginning January 1, 2027, a person shall not
Page 7, Line 23provide earned-wage access services or act as a provider
Page 7, Line 24without a license issued by the administrator in accordance
Page 7, Line 25with this article 22.
Page 7, Line 26(b) Notwithstanding subsection (1)(a) of this section, a
Page 7, Line 27provider that as of January 1, 2027, was engaged in the business
Page 8, Line 1of providing earned-wage access services in Colorado may, until
Page 8, Line 2the administrator has issued or denied a license to the provider,
Page 8, Line 3continue to engage in the business of offering and providing
Page 8, Line 4earned-wage access services in Colorado if the person:
Page 8, Line 5(I) Has submitted a license application within six months
Page 8, Line 6after the administrator prescribes the form and content of the
Page 8, Line 7application; and
Page 8, Line 8(II) Is otherwise in compliance with this article 22.
Page 8, Line 9(2) (a) To be issued a license, an applicant must submit an
Page 8, Line 10application to the administrator in a form and manner
Page 8, Line 11prescribed by the administrator.
Page 8, Line 12(b) The application must include:
Page 8, Line 13(I) The name, mailing address, and physical location of the
Page 8, Line 14applicant's business;
Page 8, Line 15(II) A license application fee set in accordance with
Page 8, Line 16section 5-22-111; and
Page 8, Line 17(III) Any other information as determined by the
Page 8, Line 18administrator.
Page 8, Line 19(c) The administrator shall review each application and
Page 8, Line 20determine whether the applicant qualifies for a license.
Page 8, Line 21(3) (a) The administrator shall not issue a license to an
Page 8, Line 22applicant unless:
Page 8, Line 23(I) The administrator, upon investigation, finds that the
Page 8, Line 24financial responsibility, character, and fitness of the applicant
Page 8, Line 25and of the applicant's members, managers, partners, officers,
Page 8, Line 26and directors are sufficient so that the administrator believes
Page 8, Line 27that the applicant will operate the business honestly and fairly
Page 9, Line 1and in compliance with this article 22; and
Page 9, Line 2(II) The license application fee is paid.
Page 9, Line 3(b) The administrator may deny an application for a
Page 9, Line 4license for a violation described in section 5-22-104.
Page 9, Line 5(4) (a) If the administrator denies an application, upon
Page 9, Line 6written request of the applicant, the administrator shall hold
Page 9, Line 7a hearing on the question of the applicant's qualifications for a
Page 9, Line 8license.
Page 9, Line 9(b) In order for a hearing to take place pursuant to
Page 9, Line 10subsection (4)(a) of this section, an applicant must request the
Page 9, Line 11hearing not more than sixty days after the administrator has
Page 9, Line 12mailed a written notification to the applicant stating that the
Page 9, Line 13application has been denied and stating the substantive reasons
Page 9, Line 14for the administrator's findings supporting the denial of the
Page 9, Line 15application.
Page 9, Line 16(5) A licensee shall not engage in the business of a
Page 9, Line 17provider under any other name than that stated in the license.
Page 9, Line 18The administrator may by rule establish an administrative
Page 9, Line 19process and fee for a provider name change.
Page 9, Line 20(6) A license is valid for one year. To renew a license, a
Page 9, Line 21licensee must file a renewal form annually in a form and
Page 9, Line 22manner prescribed by the administrator and include a renewal
Page 9, Line 23fee established in accordance with section 5-22-111 (3). The fee
Page 9, Line 24and renewal form is due to the administrator on or before April
Page 9, Line 2515 of each year. If a licensee fails to pay the prescribed renewal
Page 9, Line 26fee on or before May 1 of each year, the licensee shall pay a
Page 9, Line 27penalty of five dollars per day per license beginning May 2 and
Page 10, Line 1until the date the payment is made. If a licensee fails to pay the
Page 10, Line 2appropriate renewal and penalty fees on or before May 15, the
Page 10, Line 3licensee's license automatically expires.
Page 10, Line 45-22-104. License - denial - grounds for discipline.
Page 10, Line 5(1) The administrator may deny an application for a
Page 10, Line 6license or take disciplinary action against a licensee under this
Page 10, Line 7article 22 if:
Page 10, Line 8(a) The applicant or licensee violated this article 22 or a
Page 10, Line 9rule adopted by the administrator under this article 22;
Page 10, Line 10(b) Facts or conditions exist that would have justified the
Page 10, Line 11administrator's refusal to grant a license to the licensee had
Page 10, Line 12these facts or conditions been known to exist at the time the
Page 10, Line 13application for the license was made;
Page 10, Line 14(c) The applicant failed to complete a license application;
Page 10, Line 15(d) The applicant or licensee failed to provide information
Page 10, Line 16required by the administrator within a reasonable time as
Page 10, Line 17determined by the administrator;
Page 10, Line 18(e) The applicant or licensee failed to provide or maintain
Page 10, Line 19proof of financial responsibility;
Page 10, Line 20(f) The applicant or licensee is insolvent;
Page 10, Line 21(g) The applicant or licensee made a false representation
Page 10, Line 22of a material fact or omitted a material fact in a document or
Page 10, Line 23statement filed with the administrator;
Page 10, Line 24(h) The applicant, the licensee, or the applicant's or
Page 10, Line 25licensee's members, managers, partners, officers, or directors
Page 10, Line 26have been convicted of or entered a plea of guilty or nolo
Page 10, Line 27contendere to:
Page 11, Line 1(I) A crime specified in part 4 of article 4 of title 18 or in
Page 11, Line 2part 1, 2, 3, 5, or 7 of article 5 of title 18;
Page 11, Line 3(II) A crime involving fraud or deceit; or
Page 11, Line 4(III) A crime of another state or the United States that is
Page 11, Line 5substantially similar to a crime listed in subsection (1)(h)(I) or
Page 11, Line 6(1)(h)(II) of this section;
Page 11, Line 7(i) The provider failed to make, maintain, or produce
Page 11, Line 8records that comply with section 5-22-105 or a rule adopted by
Page 11, Line 9the administrator to implement section 5-22-105;
Page 11, Line 10(j) The applicant or licensee has been the subject of a
Page 11, Line 11disciplinary action by a state or federal agency;
Page 11, Line 12(k) A final judgment has been entered against the
Page 11, Line 13applicant or licensee for violations of this article 22 or a state
Page 11, Line 14or federal law prohibiting deceptive or unfair trade or business
Page 11, Line 15practices; or
Page 11, Line 16(l) After the administrator commenced an examination or
Page 11, Line 17investigation of the provider, the applicant or licensee failed to,
Page 11, Line 18in a timely manner as fixed by the administrator, take or provide
Page 11, Line 19proof of a corrective action required by the administrator
Page 11, Line 20pursuant to section 5-22-106 (5).
Page 11, Line 21(2) If the administrator determines that the suspension or
Page 11, Line 22revocation of a licensee's license is warranted, the
Page 11, Line 23administrator shall make the determination in accordance with
Page 11, Line 24section 24-4-104.
Page 11, Line 25(3) If the administrator denies a license application or
Page 11, Line 26takes disciplinary action pursuant to this section, the
Page 11, Line 27administrator shall notify the applicant or licensee of the
Page 12, Line 1denial or disciplinary action within fifteen days after taking
Page 12, Line 2the action and shall make a record of the notification. The
Page 12, Line 3administrator shall notify the applicant or licensee by a means
Page 12, Line 4reasonably expected to notify the affected applicant or
Page 12, Line 5licensee or by a means acceptable to the applicant or licensee.
Page 12, Line 6(4) A licensee may relinquish their license by notifying the
Page 12, Line 7administrator in writing of the relinquishment. Expiration or
Page 12, Line 8relinquishment of a license does not affect the licensee's
Page 12, Line 9liability for acts previously committed nor impair the
Page 12, Line 10administrator's ability to issue a final agency order or impose
Page 12, Line 11discipline against the licensee.
Page 12, Line 12(5) A revocation, suspension, or relinquishment of a
Page 12, Line 13license does not impair or affect the obligation of a preexisting
Page 12, Line 14lawful contract between a licensee and a consumer.
Page 12, Line 15(6) The administrator may reinstate a license, terminate
Page 12, Line 16a suspension, or grant a new license to a person whose license
Page 12, Line 17has been revoked or suspended if no fact or condition then exists
Page 12, Line 18that justifies a refusal to reinstate the license, terminate the
Page 12, Line 19suspension, or grant the new license.
Page 12, Line 20(7) If the administrator finds that one or more of the
Page 12, Line 21conditions described in subsection (1) of this section exist, the
Page 12, Line 22administrator may do one or more of the following:
Page 12, Line 23(a) Deny the application for licensure;
Page 12, Line 24(b) Revoke the license;
Page 12, Line 25(c) Suspend the license for a period of time;
Page 12, Line 26(d) Issue an order to a provider to cease and desist from
Page 12, Line 27specific acts;
Page 13, Line 1(e) Impose a civil penalty of up to one thousand dollars
Page 13, Line 2for each violation;
Page 13, Line 3(f) Bar the person from applying for or holding a license
Page 13, Line 4for a period of five years following revocation of their license;
Page 13, Line 5(g) Issue a letter of admonition; or
Page 13, Line 6(h) (I) Impose a penalty of two hundred dollars per day
Page 13, Line 7for:
Page 13, Line 8(A) Failure to make or retain records required to be made
Page 13, Line 9or maintained under this article 22; or
Page 13, Line 10(B) Failure to produce records required to be made or
Page 13, Line 11maintained under this article 22 within seventy-two hours after
Page 13, Line 12an administrator's written request.
Page 13, Line 13(II) If the administrator has provided advance written
Page 13, Line 14notice of seventy-two hours or more to a licensee prior to
Page 13, Line 15conducting an examination pursuant to section 5-22-106, the
Page 13, Line 16civil penalty may be imposed without allowing additional time.
Page 13, Line 17(8) For disciplinary action imposed under subsection (7)(g)
Page 13, Line 18or (7)(h) of this section, the administrator may impose discipline
Page 13, Line 19without a hearing, but the licensee may, within thirty days after
Page 13, Line 20the date the discipline is imposed, file a written notice with the
Page 13, Line 21administrator requesting a hearing. If the request is timely
Page 13, Line 22made, a letter of admonition issued pursuant to subsection (7)(g)
Page 13, Line 23of this section is vacated and the administrator shall hold a
Page 13, Line 24hearing within ninety days after the request. If, after the
Page 13, Line 25hearing, the administrator or an administrative law judge finds
Page 13, Line 26that one or more of the grounds for discipline exist, any or all
Page 13, Line 27of the forms of discipline listed in this section may be imposed.
Page 14, Line 15-22-105. Records - annual reports - rules.
Page 14, Line 2(1) (a) A licensee shall maintain records in conformity
Page 14, Line 3with this section, rules adopted by the administrator under this
Page 14, Line 4section, and generally accepted accounting principles and
Page 14, Line 5practices in a manner that will enable the administrator to
Page 14, Line 6determine if the licensee is complying with this article 22.
Page 14, Line 7(b) A licensee may keep required records in any location
Page 14, Line 8so long as the licensee is reasonably able to comply with this
Page 14, Line 9section. A licensee shall give the administrator free and
Page 14, Line 10reasonable access to the records in the licensee's storage
Page 14, Line 11location. A licensee need not preserve records pertaining to an
Page 14, Line 12earned-wage access services transaction made as part of the
Page 14, Line 13licensee's business for more than one year after making the final
Page 14, Line 14entry related to the earned-wage access services transaction.
Page 14, Line 15(2) On or before April 15 of each year, a licensee shall file
Page 14, Line 16an annual report with the administrator that includes all
Page 14, Line 17relevant information, including information regarding
Page 14, Line 18earned-wage access services activities, that this subsection (2)
Page 14, Line 19and the administrator reasonably require concerning the
Page 14, Line 20business and operations conducted by the licensee in the state
Page 14, Line 21during the preceding calendar year. The report must include:
Page 14, Line 22(a) The gross revenue attributable to earned-wage access
Page 14, Line 23services;
Page 14, Line 24(b) The total number of transactions in which the licensee
Page 14, Line 25provided proceeds to consumers;
Page 14, Line 26(c) The total number of consumers to whom the licensee
Page 14, Line 27provided proceeds;
Page 15, Line 1(d) The total dollar amount of proceeds the licensee
Page 15, Line 2provided to consumers; and
Page 15, Line 3(e) The total dollar amount of service fees the provider
Page 15, Line 4received from consumers.
Page 15, Line 5(3) The administrator shall keep the reports filed
Page 15, Line 6pursuant to this section confidential and not open them to the
Page 15, Line 7public for inspection pursuant to "CORA", part 2 of article 72 of
Page 15, Line 8title 24. The administrator may annually publish and make
Page 15, Line 9available to the public an aggregated and anonymized analysis
Page 15, Line 10of the information submitted by all licensees as required in
Page 15, Line 11subsection (2) of this section. The analysis must not include
Page 15, Line 12personally identifying information of a consumer.
Page 15, Line 13(4) A licensee shall submit the report required in
Page 15, Line 14subsection (2) of this section under oath or affirmation and in
Page 15, Line 15the form prescribed by the administrator by rule.
Page 15, Line 16(5) If a licensee fails to file an annual report on or before
Page 15, Line 17April 15, the administrator may impose a penalty of five dollars
Page 15, Line 18per day beginning April 16 and each day thereafter until the
Page 15, Line 19date of the filed report. If a licensee fails to file the report and
Page 15, Line 20pay the penalty imposed on or before May 1 of the same year, the
Page 15, Line 21licensee's license automatically expires.
Page 15, Line 225-22-106. Examinations - investigations.
Page 15, Line 23(1) Upon request of the administrator, a provider shall
Page 15, Line 24give the administrator free and reasonable access to the
Page 15, Line 25provider's records for the administrator to examine for the
Page 15, Line 26purpose of investigating possible violations of this article 22 or
Page 15, Line 27as a means of lawfully securing information retained by the
Page 16, Line 1provider.
Page 16, Line 2(2) (a) (I) If a provider's records are located outside
Page 16, Line 3Colorado, the provider shall, at the provider's option, either
Page 16, Line 4make the records available to the administrator at a
Page 16, Line 5convenient location within the state or pay the reasonable and
Page 16, Line 6necessary expenses for the administrator or the administrator's
Page 16, Line 7representative to examine the records at the location where the
Page 16, Line 8records are maintained. This subsection (2)(a)(I) does not apply
Page 16, Line 9if subsection (2)(a)(II) of this section applies.
Page 16, Line 10(II) The provider shall make, at the cost of the provider,
Page 16, Line 11the provider's records available for examination at the
Page 16, Line 12administrator's office or at another location the administrator
Page 16, Line 13determines is appropriate if the administrator determines that:
Page 16, Line 14(A) The examination of the records at the location where
Page 16, Line 15the records are maintained endangers the safety of the
Page 16, Line 16administrator or the administrator's representative; or
Page 16, Line 17(B) There are not adequate facilities at the location
Page 16, Line 18where the records are maintained to conduct the examination.
Page 16, Line 19(b) The administrator may designate representatives,
Page 16, Line 20including comparable officials of the state in which the records
Page 16, Line 21are located, to inspect the records on the administrator's
Page 16, Line 22behalf.
Page 16, Line 23(c) If a provider's records are located inside Colorado,
Page 16, Line 24the administrator may require a provider to make, at the cost of
Page 16, Line 25the provider, the provider's records available for examination
Page 16, Line 26at the administrator's office or at another location the
Page 16, Line 27administrator determines is appropriate if the administrator
Page 17, Line 1determines that:
Page 17, Line 2(I) The examination of the records at the location where
Page 17, Line 3the records are maintained endangers the safety of the
Page 17, Line 4administrator or the administrator's representative; or
Page 17, Line 5(II) There are not adequate facilities at the location
Page 17, Line 6where the records are maintained to conduct the examination.
Page 17, Line 7(3) The administrator may administer oaths or
Page 17, Line 8affirmations and, upon the administrator's own motion or upon
Page 17, Line 9the request of any party, may subpoena witnesses and compel
Page 17, Line 10their attendance, adduce evidence, and require the production
Page 17, Line 11of any matter that is relevant to the investigation, including
Page 17, Line 12the existence, description, nature, custody, condition, and
Page 17, Line 13location of any books, documents, or other tangible things and
Page 17, Line 14the identity and location of persons having knowledge of
Page 17, Line 15relevant facts or any other matter reasonably calculated to
Page 17, Line 16lead to the discovery of admissible evidence.
Page 17, Line 17(4) If a provider fails to obey a subpoena or to give
Page 17, Line 18testimony without lawful excuse, the administrator may
Page 17, Line 19request an order of compliance from the appropriate district
Page 17, Line 20court.
Page 17, Line 21(5) After the administrator has examined a licensee's
Page 17, Line 22records pursuant to this section, the administrator shall
Page 17, Line 23provide a report of the examination to the licensee and may
Page 17, Line 24require the licensee to take corrective action. The licensee
Page 17, Line 25shall, within a time and in a manner determined by the
Page 17, Line 26administrator, take the corrective action required in the report
Page 17, Line 27and provide proof that the corrective action was taken. The
Page 18, Line 1corrective action required may include refunds of excess
Page 18, Line 2charges and corrections of disclosures required by this article
Page 18, Line 322. The administrator need not allow a licensee to take
Page 18, Line 4corrective action prior to the administrator filing legal or
Page 18, Line 5administrative action for a repeated or willful violation of this
Page 18, Line 6article 22.
Page 18, Line 7(6) The administrator shall not disclose the name or
Page 18, Line 8identity of a person whose acts or conduct is under
Page 18, Line 9investigation or examination pursuant to this section or the
Page 18, Line 10facts disclosed in the investigation or examination, except for
Page 18, Line 11disclosures in actions or enforcement proceedings initiated
Page 18, Line 12pursuant to this article 22.
Page 18, Line 135-22-107. Administrative procedures - applicability.
Page 18, Line 14Except as otherwise provided in this article 22, sections
Page 18, Line 1524-4-102 to 24-4-106 govern rules adopted and administrative
Page 18, Line 16actions taken by the administrator pursuant to this article 22;
Page 18, Line 17except that section 24-4-104 (3) does not apply to this article 22.
Page 18, Line 185-22-108. Applicability - exceptions.
Page 18, Line 19(1) This article 22 applies to a person that acts as a
Page 18, Line 20provider for a consumer, regardless of whether the provider's
Page 18, Line 21business is located inside or outside of Colorado.
Page 18, Line 22(2) This article 22 does not apply to a federal department
Page 18, Line 23or agency; a state or municipal government; or a corporation
Page 18, Line 24organized under the general banking, savings and loan, or
Page 18, Line 25credit union laws of Colorado, another state, or the United
Page 18, Line 26States.
Page 18, Line 27(3) Notwithstanding the "Uniform Consumer Credit Code",
Page 19, Line 1articles 1 to 9 of this title 5:
Page 19, Line 2(a) Earned-wage access services offered and provided by
Page 19, Line 3a licensee in accordance with this article 22 are not:
Page 19, Line 4(I) A violation of or noncompliant with a law governing:
Page 19, Line 5(A) Minimum or overtime wages;
Page 19, Line 6(B) Deductions from payroll, salary, wages,
Page 19, Line 7compensation, or other income; or
Page 19, Line 8(C) The purchase of, sale or assignment of, or an order for
Page 19, Line 9earned but unpaid income;
Page 19, Line 10(II) A loan or other form of credit or debt; or
Page 19, Line 11(III) Money transmission;
Page 19, Line 12(b) A licensee or a provider that is lawfully operating
Page 19, Line 13under section 5-22-103 (1)(b) pending licensure is not a creditor,
Page 19, Line 14debt collector, collection agency, lender, or money
Page 19, Line 15transmitter when providing earned-wage access services; and
Page 19, Line 16(c) Service fees paid in accordance with this article 22 to
Page 19, Line 17a licensee are not interest or finance charges.
Page 19, Line 18(4) (a) Earned-wage access services offered and provided
Page 19, Line 19by a licensee in accordance with this article 22 are not:
Page 19, Line 20(I) A violation of or noncompliant with a law governing:
Page 19, Line 21(A) Deductions from payroll, salary, wages,
Page 19, Line 22compensation, or other income; or
Page 19, Line 23(B) The purchase of, sale or assignment of, or an order for
Page 19, Line 24earned but unpaid income;
Page 19, Line 25(II) A loan or other form of credit or debt, nor shall the
Page 19, Line 26licensee be considered a creditor, debt collector, or lender with
Page 19, Line 27respect to earned-wage access service; or
Page 20, Line 1(III) Money transmission.
Page 20, Line 2(b) A person licensed under this article 22 or a provider
Page 20, Line 3that is lawfully operating under section 5-22-103 (1)(b) pending
Page 20, Line 4licensure is not a money transmitter when providing
Page 20, Line 5earned-wage access services.
Page 20, Line 6(c) Service fees paid in accordance with this article 22 to
Page 20, Line 7a licensee are not interest or finance charges.
Page 20, Line 8(5) If there is a conflict between this article 22 and
Page 20, Line 9another provision of law that concerns earned-wage access
Page 20, Line 10services, this article 22 prevails.
Page 20, Line 115-22-109. Provider duties - residency.
Page 20, Line 12(1) A provider shall:
Page 20, Line 13(a) Develop and implement policies and procedures to
Page 20, Line 14respond to questions raised by consumers and address
Page 20, Line 15complaints from consumers in an expedient manner;
Page 20, Line 16(b) If the provider offers a consumer the option to receive
Page 20, Line 17proceeds for a service fee, offer to the consumer at least one
Page 20, Line 18reasonable option to obtain proceeds at no cost to the consumer
Page 20, Line 19and clearly explain how to elect the no-cost option;
Page 20, Line 20(c) Before entering into an agreement with a consumer
Page 20, Line 21for the provision of earned-wage access services:
Page 20, Line 22(I) Inform the consumer of their rights under the
Page 20, Line 23agreement; and
Page 20, Line 24(II) Fully and clearly disclose all service fees associated
Page 20, Line 25with the earned-wage access services;
Page 20, Line 26(d) Inform the consumer before implementing material
Page 20, Line 27changes to the terms and conditions of the earned-wage access
Page 21, Line 1services agreement;
Page 21, Line 2(e) Allow the consumer to cancel use of the provider's
Page 21, Line 3earned-wage access services at any time without incurring a
Page 21, Line 4cancellation fee imposed by the provider;
Page 21, Line 5(f) Comply with all applicable local, state, and federal
Page 21, Line 6privacy and information security laws;
Page 21, Line 7(g) Provide proceeds to a consumer by the means mutually
Page 21, Line 8agreed upon by the consumer and the provider; and
Page 21, Line 9(h) To be repaid, including by means of electronic funds
Page 21, Line 10transfer, for outstanding proceeds or payment of service fees or
Page 21, Line 11other amounts owed in connection with earned-wage access
Page 21, Line 12services from a consumer's account at a depository institution:
Page 21, Line 13(I) Comply with the federal "Electronic Fund Transfer
Page 21, Line 14Act", 15 U.S.C. sec. 1693 et seq., and regulations adopted
Page 21, Line 15pursuant to the act; and
Page 21, Line 16(II) Reimburse the consumer for the full amount of any
Page 21, Line 17overdraft or insufficient funds fees imposed on a consumer by
Page 21, Line 18the consumer's depository institution that were caused by the
Page 21, Line 19provider attempting to seek payment of outstanding proceeds,
Page 21, Line 20service fees, or other payments in connection with earned-wage
Page 21, Line 21access services on a date before the date disclosed to the
Page 21, Line 22consumer or in an amount different from the amount disclosed
Page 21, Line 23to the consumer.
Page 21, Line 24(2) A provider may use the mailing address or state of
Page 21, Line 25residence provided to the provider by a consumer or a
Page 21, Line 26consumer's employer to determine the consumer's state of
Page 21, Line 27residence for purposes of this article 22.
Page 22, Line 15-22-110. Prohibited acts.
Page 22, Line 2(1) A provider shall not:
Page 22, Line 3(a) Share with an employer a portion of a service fee that
Page 22, Line 4was received from or charged to a consumer for earned-wage
Page 22, Line 5access services;
Page 22, Line 6(b) Require a consumer's credit score provided by a
Page 22, Line 7consumer reporting agency to determine the consumer's
Page 22, Line 8eligibility for earned-wage access services;
Page 22, Line 9(c) Accept payment of outstanding proceeds or service
Page 22, Line 10fees from a consumer by means of a credit card or charge card;
Page 22, Line 11(d) Charge a consumer a late fee, a deferral fee, interest,
Page 22, Line 12or any other penalty or charge for failure to pay outstanding
Page 22, Line 13proceeds or service fees;
Page 22, Line 14(e) Report to a collection agency or to a debt collector
Page 22, Line 15information about the consumer regarding the inability of the
Page 22, Line 16provider to be repaid outstanding proceeds or service fees;
Page 22, Line 17(f) Impose the type of service fee described in section
Page 22, Line 185-22-102 (12)(a) in excess of the following:
Page 22, Line 19(I) Beginning on the effective date of this article 22
Page 22, Line 20through June 30, 2027:
Page 22, Line 21(A) Five dollars for an advance of proceeds equal to or
Page 22, Line 22less than seventy-five dollars; or
Page 22, Line 23(B) Seven dollars and fifty cents for an advance of
Page 22, Line 24proceeds greater than seventy-five dollars; or
Page 22, Line 25(II) On or after July 1, 2027, and each year thereafter, the
Page 22, Line 26amount of the service fee described in subsection (1)(f)(I) of this
Page 22, Line 27section may be increased by but must not exceed an amount that
Page 23, Line 1is greater than the annual percentage change in the United
Page 23, Line 2States department of labor's bureau of labor statistics
Page 23, Line 3consumer price index, or a successor index, for
Page 23, Line 4Denver-Aurora-Lakewood for all items paid for by urban
Page 23, Line 5consumers;
Page 23, Line 6(g) Enter into an agreement with an employer that would
Page 23, Line 7require a consumer who is an employee of the employer to use
Page 23, Line 8earned-wage access services as a necessary condition of
Page 23, Line 9receiving payment of wages;
Page 23, Line 10(h) (I) Compel or attempt to compel a consumer to pay
Page 23, Line 11outstanding proceeds or service fees to the provider through:
Page 23, Line 12(A) A lawsuit against the consumer;
Page 23, Line 13(B) The use of a third party to pursue collection from the
Page 23, Line 14consumer on the provider's behalf; or
Page 23, Line 15(C) The sale of outstanding proceeds or service fees to a
Page 23, Line 16third-party collector or debt buyer for collection from the
Page 23, Line 17consumer.
Page 23, Line 18(II) The limitations in this subsection (1)(h) do not
Page 23, Line 19preclude a provider from using the methods in subsection (1)(h)(I)
Page 23, Line 20of this section to:
Page 23, Line 21(A) Compel payment of outstanding proceeds paid to or
Page 23, Line 22service fees incurred by a consumer through fraudulent or
Page 23, Line 23other unlawful means; or
Page 23, Line 24(B) Pursue an employer for breach of its contractual
Page 23, Line 25obligations to the provider.
Page 23, Line 26(i) Solicit a tip, gratuity, or donation during the portion
Page 23, Line 27of an earned-wage access transaction that begins when a
Page 24, Line 1consumer requests proceeds and ends when the provider
Page 24, Line 2confirms that a transfer of proceeds has been approved and
Page 24, Line 3provides a listing of the fees that will be charged in connection
Page 24, Line 4with that transfer of proceeds.
Page 24, Line 55-22-111. Powers and duties of administrator - fees.
Page 24, Line 6(1) In addition to other powers granted by this article 22,
Page 24, Line 7the administrator may:
Page 24, Line 8(a) Receive and act on complaints, take action designed to
Page 24, Line 9obtain voluntary compliance with this article 22, or commence
Page 24, Line 10proceedings on the administrator's initiative;
Page 24, Line 11(b) Counsel persons and groups on their rights and duties
Page 24, Line 12described in this article 22;
Page 24, Line 13(c) Establish programs for the education of consumers
Page 24, Line 14with respect to earned-wage access services;
Page 24, Line 15(d) Make studies appropriate to effectuate the purposes
Page 24, Line 16and policies of this article 22 and make the results of a study
Page 24, Line 17available to the public if the study has been aggregated for all
Page 24, Line 18licensees and does not contain information to identify licensees
Page 24, Line 19or consumers;
Page 24, Line 20(e) Employ administrative law judges from the office of
Page 24, Line 21administrative courts in the department of personnel to
Page 24, Line 22conduct hearings on a matter related to this article 22; and
Page 24, Line 23(f) Exchange information with another governmental
Page 24, Line 24agency or official that has regulatory authority comparable
Page 24, Line 25to that of the administrator, subject to an appropriate
Page 24, Line 26confidentiality agreement between the administrator and the
Page 24, Line 27other agency or official or as otherwise permitted by law. This
Page 25, Line 1subsection (1)(f) does not allow the exchange of information
Page 25, Line 2with providers.
Page 25, Line 3(2) A person is not liable pursuant to this article 22 for an
Page 25, Line 4act committed or omitted in good faith in conformity with a
Page 25, Line 5rule, administrator's interpretation, or administrator's written
Page 25, Line 6response to a person pursuant to a written request on behalf of
Page 25, Line 7the identified person.
Page 25, Line 8(3) The administrator shall set the license application
Page 25, Line 9fee, renewal fee, and provider name-change fee in an amount
Page 25, Line 10calculated to offset the direct and indirect costs of
Page 25, Line 11administering this article 22.
Page 25, Line 125-22-112. Administrative enforcement - cease and desist -
Page 25, Line 13penalty - rules.
Page 25, Line 14(1) The administrator shall enforce this article 22.
Page 25, Line 15(2) The administrator may adopt rules for the
Page 25, Line 16administration and enforcement of this article 22.
Page 25, Line 17(3) After notice and a hearing, the administrator may
Page 25, Line 18order a provider or a person acting on the provider's behalf to
Page 25, Line 19cease and desist from engaging in violations of this article 22 or
Page 25, Line 20any rule or order lawfully made pursuant to this article 22.
Page 25, Line 21The order issued by the administrator may also require the
Page 25, Line 22provider or person to pay a penalty in an amount of up to one
Page 25, Line 23thousand dollars for each violation of the cease-and-desist
Page 25, Line 24order.
Page 25, Line 25(4) A respondent aggrieved by an action or order of the
Page 25, Line 26administrator may obtain judicial review of the action or order
Page 25, Line 27in the Colorado court of appeals. The administrator may obtain
Page 26, Line 1an order of the court for enforcement of the administrator's
Page 26, Line 2order in the district court under section 24-4-106. All
Page 26, Line 3proceedings authorized under this section are governed by
Page 26, Line 4sections 24-4-105 and 24-4-106.
Page 26, Line 5(5) (a) With respect to an action brought to enjoin
Page 26, Line 6violations of this article 22, the administrator may apply to the
Page 26, Line 7court of appropriate jurisdiction for a temporary restraining
Page 26, Line 8order or a preliminary injunction against a respondent pending
Page 26, Line 9final determination of proceedings. If the court finds after a
Page 26, Line 10hearing that there is reasonable cause to believe that the
Page 26, Line 11respondent is engaging in or is likely to engage in conduct
Page 26, Line 12sought to be restrained, the court may grant a temporary
Page 26, Line 13restraining order or preliminary injunction. The court may also
Page 26, Line 14issue an order or judgment as may be necessary to restore a
Page 26, Line 15consumer who has been affected by a violation, an agreement,
Page 26, Line 16or conduct to the consumer's original position or to compensate
Page 26, Line 17a consumer if there is reasonable cause to believe that
Page 26, Line 18sufficient funding to make refunds to the consumer will not be
Page 26, Line 19available at a future date.
Page 26, Line 20(b) A bond or other security is not required of the
Page 26, Line 21administrator before relief under this subsection (5) may be
Page 26, Line 22granted.
Page 26, Line 235-22-113. Civil actions by administrator - penalty.
Page 26, Line 24(1) The administrator may bring a civil action against a
Page 26, Line 25provider or a person acting on the provider's behalf to recover
Page 26, Line 26a civil penalty for willfully violating this article 22 or for
Page 26, Line 27repeatedly and willfully violating this article 22. If the court
Page 27, Line 1finds that the defendant has willfully violated this article 22,
Page 27, Line 2the court may assess a civil penalty of no more than five
Page 27, Line 3thousand dollars per violation. If the court finds that the
Page 27, Line 4defendant has engaged in a course of repeated and willful
Page 27, Line 5violations of this article 22, the court may assess a civil penalty
Page 27, Line 6of no more than ten thousand dollars per violation. A court
Page 27, Line 7shall not impose a civil penalty pursuant to this subsection (1)
Page 27, Line 8for violations of this article 22 that occur more than four
Page 27, Line 9years before the action is brought.
Page 27, Line 10(2) If the administrator prevails in an action brought
Page 27, Line 11under this section:
Page 27, Line 12(a) The administrator may seek to recover reasonable
Page 27, Line 13costs of the investigation and action and may request an order
Page 27, Line 14for reimbursement of reasonable attorney fees; and
Page 27, Line 15(b) The court may award the administrator reasonable
Page 27, Line 16costs of investigation and order reimbursement of reasonable
Page 27, Line 17attorney fees.
Page 27, Line 18(3) In an action brought by the administrator under this
Page 27, Line 19article 22, the administrator does not have a right to trial by
Page 27, Line 20jury, but a defendant may request, and a court shall grant upon
Page 27, Line 21request, a jury trial under the Colorado rules of civil
Page 27, Line 22procedure.
Page 27, Line 235-22-114. Assurance of discontinuance.
Page 27, Line 24If a person files a complaint with the administrator as
Page 27, Line 25described in section 5-22-111 (1)(a) or with a court as described
Page 27, Line 26in section 5-22-112 that a provider has engaged in conduct that
Page 27, Line 27fails to comply with an order by the administrator or by the
Page 28, Line 1court, the administrator or the court may accept an assurance
Page 28, Line 2in writing that the provider will not engage in the conduct in
Page 28, Line 3the future. The administrator may require the provider as part
Page 28, Line 4of the assurance to pay up to one thousand dollars for each
Page 28, Line 5violation and reimburse the administrator for the
Page 28, Line 6administrator's reasonable costs incurred in investigating the
Page 28, Line 7conduct.
Page 28, Line 8SECTION 2. In Colorado Revised Statutes, 13-4-102, add
Page 28, Line 9(2)(oo) as follows:
Page 28, Line 1013-4-102. Jurisdiction.
Page 28, Line 11(2) The court of appeals has initial jurisdiction to:
Page 28, Line 12(oo) Review final decisions or orders of the administrator
Page 28, Line 13as provided in article 22 of title 5.
Page 28, Line 14SECTION 3. In Colorado Revised Statutes, 24-4-104, amend
Page 28, Line 15(3)(b) as follows:
Page 28, Line 1624-4-104. Licenses - issuance, suspension or revocation,
Page 28, Line 17renewal.
Page 28, Line 18(3) (b) The full investigation requirement specified in subsection
Page 28, Line 19(3)(a) of this section shall not apply to licenses issued under article 22
Page 28, Line 20of title 5; articles 1.1, 9, 10.1, and 11.5 of title 40; or article 2 of title 42.
Page 28, Line 21SECTION 4. Act subject to petition - effective date -
Page 28, Line 22applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 28, Line 23the expiration of the ninety-day period after final adjournment of the
Page 28, Line 24general assembly (August 12, 2026, if adjournment sine die is on May 13,
Page 28, Line 252026); except that, if a referendum petition is filed pursuant to section 1
Page 28, Line 26(3) of article V of the state constitution against this act or an item, section,
Page 28, Line 27or part of this act within such period, then the act, item, section, or part
Page 29, Line 1will not take effect unless approved by the people at the general election
Page 29, Line 2to be held in November 2026 and, in such case, will take effect on the
Page 29, Line 3date of the official declaration of the vote thereon by the governor.
Page 29, Line 4(2) This act applies to conduct occurring on or after the applicable
Page 29, Line 5effective date of this act.