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 prohibits an entity from providing earned-wage access services without a license on and after January 1, 2026. Earned-wage access services are services that:
- Deliver consumer access to earned but unpaid income; and
- Provide consumer access to earned but unpaid income that is based on employment, income, or attendance data obtained directly or indirectly from an employer or an employer's payroll service provider.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add article 22 to title
Page 2, Line 35 as follows:
Page 2, Line 4ARTICLE 22
Page 2, Line 5Earned-Wage Access Services
Page 2, Line 65-22-101. Short title.The short title of this article 22 is the
Page 2, Line 7"Earned-Wage Access Services Act".
Page 2, Line 85-22-102. Definitions.As used in this article 22, unless the
Page 2, Line 9context otherwise requires:
Page 2, Line 10(1) "Administrator" means the assistant attorney general
Page 2, Line 11or the attorney general's designee exercising the powers and
Page 2, Line 12performing the duties of the administrator pursuant to part 1 of
Page 2, Line 13article 6 of this title 5.
Page 2, Line 14(2) "Consumer" means an individual who resides in the
Page 2, Line 15state as evidenced by the mailing address or address of
Page 2, Line 16residence provided by the individual or their employer.
Page 2, Line 17(3) "Consumer-directed wage access services" means
Page 2, Line 18services that deliver consumer access to earned but unpaid
Page 2, Line 19income that is based on the consumer's representations and the
Page 2, Line 20provider's reasonable determination of the consumer's earned
Page 2, Line 21but unpaid income.
Page 2, Line 22(4) "Earned but unpaid income" means salary, wages,
Page 2, Line 23compensation, or other income that a consumer or an employer
Page 2, Line 24has represented, and that a provider has reasonably
Page 2, Line 25determined, has been earned or accrued to the benefit of the
Page 2, Line 26consumer by the consumer's provision of services to the
Page 3, Line 1employer or on behalf of the employer, on an hourly,
Page 3, Line 2project-based, piecework, or other basis, or as an independent
Page 3, Line 3contractor, but has not been paid to the consumer by the
Page 3, Line 4employer.
Page 3, Line 5(5) "Earned-wage access services" means
Page 3, Line 6consumer-directed wage access services, employer-integrated
Page 3, Line 7wage access services, or both.
Page 3, Line 8(6) (a) "Employer" means:
Page 3, Line 9(I) A person that employs a consumer; and
Page 3, Line 10(II) Any other person that is contractually obligated to
Page 3, Line 11pay a consumer earned but unpaid income.
Page 3, Line 12(b) "Employer" does not include:
Page 3, Line 13(I) A customer of the employer; or
Page 3, Line 14(II) Any other person whose obligation to make a payment
Page 3, Line 15of salary, wages, compensation, or other income to a consumer
Page 3, Line 16is not based on the provision of services by that consumer for or
Page 3, Line 17on behalf of the person.
Page 3, Line 18(7) "Employer-integrated wage access services" means
Page 3, Line 19services that provide consumer access to earned but unpaid
Page 3, Line 20income that is based on employment, income, or attendance data
Page 3, Line 21obtained directly or indirectly from an employer or an
Page 3, Line 22employer's payroll service provider.
Page 3, Line 23(8) "Fee" means:
Page 3, Line 24(a) A fee imposed by a provider for delivery or expedited
Page 3, Line 25delivery of proceeds to a consumer; and
Page 3, Line 26(b) A subscription or membership fee imposed by a provider
Page 3, Line 27for a bona fide group of services that include earned-wage
Page 4, Line 1access services.
Page 4, Line 2(9) "Licensee" means a provider licensed by the
Page 4, Line 3administrator pursuant to this article 22 to provide
Page 4, Line 4earned-wage access services.
Page 4, Line 5(10) "Outstanding proceeds" means proceeds remitted to
Page 4, Line 6a consumer by a provider that have not yet been repaid to the
Page 4, Line 7provider.
Page 4, Line 8(11) "Person" means a natural person, firm, corporation,
Page 4, Line 9limited liability company, or partnership.
Page 4, Line 10(12) "Proceeds" means a payment to a consumer by a
Page 4, Line 11provider that is based on earned but unpaid income.
Page 4, Line 12(13) (a) "Provider" means a person that provides
Page 4, Line 13earned-wage access services.
Page 4, Line 14(b) "Provider" does not include:
Page 4, Line 15(I) A service provider, including a payroll service
Page 4, Line 16provider, whose role may include verifying available earnings
Page 4, Line 17but that is not contractually obligated to fund any proceeds
Page 4, Line 18delivered as part of an earned-wage access service; or
Page 4, Line 19(II) An employer that offers a portion of salary, wages, or
Page 4, Line 20compensation directly to its employees or independent
Page 4, Line 21contractors before the normally scheduled pay date.
Page 4, Line 225-22-103. Earned-wage access services - license - application
Page 4, Line 23- renewal - fees - rules. (1) Beginning January 1, 2026, a person
Page 4, Line 24shall not provide earned-wage access services or act as a
Page 4, Line 25provider without a license issued by the administrator pursuant
Page 4, Line 26to this article 22.
Page 4, Line 27(2) (a) Each applicant to be a licensee shall submit an
Page 5, Line 1application to the administrator in a form and manner
Page 5, Line 2prescribed by the administrator.
Page 5, Line 3(b) The application must include:
Page 5, Line 4(I) The name, mailing address, and physical location of the
Page 5, Line 5applicant's business;
Page 5, Line 6(II) A license application fee as determined necessary by
Page 5, Line 7the administrator, in an amount not to exceed one thousand
Page 5, Line 8dollars; and
Page 5, Line 9(III) Any other information as determined by the
Page 5, Line 10administrator.
Page 5, Line 11(c) The administrator shall review each application and
Page 5, Line 12determine whether the applicant qualifies for a license.
Page 5, Line 13(3) (a) The administrator shall not issue a license to a
Page 5, Line 14provider unless:
Page 5, Line 15(I) The administrator, upon investigation, finds that the
Page 5, Line 16financial responsibility, character, and fitness of the applicant
Page 5, Line 17and of the applicant's members, managers, partners, officers,
Page 5, Line 18and directors are sufficient so that the administrator believes
Page 5, Line 19that the applicant will operate the business honestly and fairly
Page 5, Line 20within the purposes of this article 22; and
Page 5, Line 21(II) The license application fee is paid.
Page 5, Line 22(b) The administrator may deny an application for a
Page 5, Line 23license based on any of the grounds listed in section 5-22-104.
Page 5, Line 24(4) (a) If the administrator denies an application, upon
Page 5, Line 25written request of the applicant, the administrator shall allow
Page 5, Line 26for a hearing on the question of the applicant's qualifications
Page 5, Line 27for a license.
Page 6, Line 1(b) In order for a hearing to take place pursuant to
Page 6, Line 2subsection (4)(a) of this section, an applicant must request the
Page 6, Line 3hearing not more than sixty days after the administrator has
Page 6, Line 4mailed a written notification to the applicant stating that the
Page 6, Line 5application has been denied and stating the substantive reasons
Page 6, Line 6for the administrator's findings supporting the denial of the
Page 6, Line 7application.
Page 6, Line 8(5) A licensee shall not engage in the business of a
Page 6, Line 9provider under any other name than that stated in the license.
Page 6, Line 10The administrator may by rule establish an administrative
Page 6, Line 11process and fee for a provider name change.
Page 6, Line 12(6) A license is valid for one year. To renew a license, a
Page 6, Line 13licensee shall file a renewal form annually in a form and
Page 6, Line 14manner prescribed by the administrator and include a renewal
Page 6, Line 15fee established by the administrator, not to exceed two hundred
Page 6, Line 16dollars per year. The fee and renewal form is due to the
Page 6, Line 17administrator by April 15 of each year. If a licensee fails to pay
Page 6, Line 18the prescribed renewal fee on or before May 1 of each year, the
Page 6, Line 19licensee shall pay a penalty of five dollars per day per license
Page 6, Line 20beginning May 2 and until the date the payment is postmarked.
Page 6, Line 21If a licensee fails to pay the appropriate renewal and penalty
Page 6, Line 22fees by May 15, the licensee's license automatically expires.
Page 6, Line 235-22-104. License - denial - grounds for discipline. (1) The
Page 6, Line 24administrator may deny an application for a license or take
Page 6, Line 25disciplinary action against a licensee under this article 22 if the
Page 6, Line 26administrator finds that:
Page 6, Line 27(a) The applicant or licensee violated this article 22 or a
Page 7, Line 1rule adopted by the administrator pursuant to this article 22;
Page 7, Line 2(b) Facts or conditions exist that would have clearly
Page 7, Line 3justified the administrator's refusal to grant a license to the
Page 7, Line 4licensee had these facts or conditions been known to exist at the
Page 7, Line 5time the application for the license was made;
Page 7, Line 6(c) The applicant failed to complete a license application;
Page 7, Line 7(d) The applicant or licensee failed to provide information
Page 7, Line 8required by the administrator within a reasonable time as fixed
Page 7, Line 9by the administrator;
Page 7, Line 10(e) The applicant or licensee failed to provide or maintain
Page 7, Line 11proof of financial responsibility;
Page 7, Line 12(f) The applicant or licensee is insolvent;
Page 7, Line 13(g) The applicant or licensee made a false representation
Page 7, Line 14of a material fact or omitted a material fact in a document or
Page 7, Line 15statement filed with the administrator;
Page 7, Line 16(h) The applicant, licensee, or its owners, partners,
Page 7, Line 17members, officers, or directors have been convicted of or
Page 7, Line 18entered a plea of guilty or nolo contendere to:
Page 7, Line 19(I) A crime specified in part 4 of article 4 of title 18 or in
Page 7, Line 20part 1, 2, 3, 5, or 7 of article 5 of title 18;
Page 7, Line 21(II) A crime involving fraud or deceit; or
Page 7, Line 22(III) A crime that is similar to one of the crimes listed in
Page 7, Line 23subsection (1)(h)(I) or (1)(h)(II) of this section under the
Page 7, Line 24jurisdiction of a federal court or a court of another state;
Page 7, Line 25(i) The applicant or licensee failed to make, maintain, or
Page 7, Line 26produce records that comply with section 5-22-105 or any rule
Page 7, Line 27adopted by the administrator to implement section 5-22-105;
Page 8, Line 1(j) The applicant or licensee has been the subject of a
Page 8, Line 2disciplinary action by any state or federal agency;
Page 8, Line 3(k) A final judgment has been entered against the
Page 8, Line 4applicant or licensee for violations of this article 22 or any
Page 8, Line 5state or federal law prohibiting deceptive or unfair trade or
Page 8, Line 6business practices; or
Page 8, Line 7(l) After the administrator commenced an examination or
Page 8, Line 8investigation of the applicant or licensee, the applicant or
Page 8, Line 9licensee failed to, in a timely manner as fixed by the
Page 8, Line 10administrator, take or provide proof of a corrective action
Page 8, Line 11required by the administrator pursuant to section 5-22-106 (5).
Page 8, Line 12(2) In a case where the administrator determines whether
Page 8, Line 13the suspension of a licensee's license is warranted, the
Page 8, Line 14administrator shall make the determination pursuant to the
Page 8, Line 15criteria and procedures outlined in section 24-4-104.
Page 8, Line 16(3) When the administrator denies a license application or
Page 8, Line 17takes disciplinary action pursuant to this section, the
Page 8, Line 18administrator shall notify the applicant or licensee of the
Page 8, Line 19denial or disciplinary action and shall make a record of the
Page 8, Line 20notification. The administrator shall notify the applicant or
Page 8, Line 21licensee by personal service or by mail to the last-known
Page 8, Line 22address of the applicant or licensee as shown on the application
Page 8, Line 23or license or as subsequently furnished in writing to the
Page 8, Line 24administrator.
Page 8, Line 25(4) A licensee may relinquish the license by notifying the
Page 8, Line 26administrator in writing of the relinquishment. A revocation,
Page 8, Line 27suspension, expiration, or relinquishment of a license does not
Page 9, Line 1affect the licensee's liability for acts previously committed nor
Page 9, Line 2impair the administrator's ability to issue a final agency order
Page 9, Line 3or impose discipline against the licensee.
Page 9, Line 4(5) A revocation, suspension, or relinquishment of a
Page 9, Line 5license does not impair or affect the obligation of a preexisting
Page 9, Line 6lawful contract between a licensee and a consumer.
Page 9, Line 7(6) The administrator may reinstate a license, terminate
Page 9, Line 8a suspension, or grant a new license to a person whose license
Page 9, Line 9has been revoked or suspended if no fact or condition then exists
Page 9, Line 10that clearly justifies a refusal to reinstate the license,
Page 9, Line 11terminate the suspension, or grant the new license.
Page 9, Line 12(7) If the administrator finds that one or more of the
Page 9, Line 13conditions stated in subsection (1) of this section exist, the
Page 9, Line 14administrator may do one or more of the following:
Page 9, Line 15(a) Deny the application for licensure;
Page 9, Line 16(b) Revoke the license;
Page 9, Line 17(c) Suspend the license for a period of time;
Page 9, Line 18(d) Issue an order to the licensee to cease and desist from
Page 9, Line 19specific acts;
Page 9, Line 20(e) Impose a penalty of up to a maximum of one thousand
Page 9, Line 21dollars for each violation;
Page 9, Line 22(f) Bar the person from applying for or holding a license
Page 9, Line 23for a period of five years following revocation of their license;
Page 9, Line 24(g) Issue a letter of admonition; or
Page 9, Line 25(h) Impose a penalty of two hundred dollars per day for
Page 9, Line 26failure to make, produce, or retain records required to be
Page 9, Line 27maintained under this article 22 within forty-eight hours after
Page 10, Line 1an administrator's written request. If the administrator has
Page 10, Line 2provided advance written notice of forty-eight hours or more
Page 10, Line 3to a licensee prior to conducting an examination pursuant to
Page 10, Line 4section 5-22-106, the penalty may be imposed without allowing
Page 10, Line 5additional time.
Page 10, Line 6(8) The administrator may impose the grounds for
Page 10, Line 7discipline in subsections (7)(g) and (7)(h) of this section without
Page 10, Line 8a hearing, but the licensee may, within thirty days after the
Page 10, Line 9date the discipline is imposed, file a written notice with the
Page 10, Line 10administrator requesting a hearing. If the request is timely
Page 10, Line 11made, any letter of admonition issued pursuant to subsection
Page 10, Line 12(7)(g) of this section is deemed vacated and the administrator
Page 10, Line 13shall hold a hearing. If, after the hearing, there is a finding that
Page 10, Line 14one or more of the grounds for discipline exist, any or all of the
Page 10, Line 15forms of discipline listed in this section may be imposed.
Page 10, Line 165-22-105. Records - annual reports - rules. (1) Each licensee
Page 10, Line 17shall maintain records in conformity with this section, rules
Page 10, Line 18adopted by the administrator pursuant to this section, and
Page 10, Line 19generally accepted accounting principles and practices in a
Page 10, Line 20manner that will enable the administrator to determine if the
Page 10, Line 21licensee is complying with this article 22. A licensee may, but is
Page 10, Line 22not required to, keep the required records in the licensee's place
Page 10, Line 23of business as long as the administrator is given free access to
Page 10, Line 24the records in the licensee's storage location. A licensee does
Page 10, Line 25not need to preserve records pertaining to an earned-wage
Page 10, Line 26access services transaction made as part of the licensee's
Page 10, Line 27business for more than one year after making the final entry
Page 11, Line 1related to the earned-wage access services transaction.
Page 11, Line 2(2) Each licensee shall file an annual report with the
Page 11, Line 3administrator, on or before April 15 of each year, that includes
Page 11, Line 4all relevant information that the administrator reasonably
Page 11, Line 5requires concerning the business and operations conducted by
Page 11, Line 6the licensee in the state during the preceding calendar year,
Page 11, Line 7including information regarding earned-wage access services
Page 11, Line 8activities. The report must include, at minimum:
Page 11, Line 9(a) The gross revenue attributable to earned-wage access
Page 11, Line 10services;
Page 11, Line 11(b) The total number of transactions in which the licensee
Page 11, Line 12provided proceeds to consumers;
Page 11, Line 13(c) The total number of consumers to whom the licensee
Page 11, Line 14provided proceeds;
Page 11, Line 15(d) The total dollar amount of proceeds the licensee
Page 11, Line 16provided to consumers; and
Page 11, Line 17(e) The total dollar amount of fees the provider received
Page 11, Line 18from consumers.
Page 11, Line 19(3) The administrator shall keep the reports filed
Page 11, Line 20pursuant to this section confidential and not open them to the
Page 11, Line 21public for inspection pursuant to the "Colorado Open Records
Page 11, Line 22Act", part 2 of article 72 of title 24. The administrator may
Page 11, Line 23annually publish and make available to the public an
Page 11, Line 24aggregated and anonymized analysis of the information
Page 11, Line 25submitted by all licensees as required pursuant to this section.
Page 11, Line 26(4) A licensee shall submit a report under oath and in the
Page 11, Line 27form prescribed by the administrator.
Page 12, Line 1(5) If a licensee fails to file an annual report by April 15,
Page 12, Line 2the administrator may impose a penalty of five dollars per day
Page 12, Line 3beginning April 16 and each day thereafter until the date of the
Page 12, Line 4postmark on the filed report. If a licensee fails to file the report
Page 12, Line 5and pay the penalty imposed by May 1 of the same year, the
Page 12, Line 6licensee's license automatically expires.
Page 12, Line 75-22-106. Examinations - investigations. (1) Upon request of
Page 12, Line 8the administrator, a provider shall provide the administrator
Page 12, Line 9with free and reasonable access to the provider's records for
Page 12, Line 10the administrator to examine for the purpose of investigating
Page 12, Line 11possible violations of this article 22 or as a means of lawfully
Page 12, Line 12securing information retained by the provider.
Page 12, Line 13(2) (a) If a provider's records are located outside the
Page 12, Line 14state, the provider shall, at the provider's option, either make
Page 12, Line 15the records available to the administrator at a convenient
Page 12, Line 16location within the state or pay the reasonable and necessary
Page 12, Line 17expenses for the administrator or the administrator's
Page 12, Line 18representative to examine the records at the location where the
Page 12, Line 19records are maintained; except that the provider shall make the
Page 12, Line 20records available for examination at the administrator's office
Page 12, Line 21or at another location the administrator deems appropriate, at
Page 12, Line 22the cost of the provider, if the administrator determines that
Page 12, Line 23the examination of the records at the location where the
Page 12, Line 24records are maintained endangers the safety of the
Page 12, Line 25administrator's representative or that there are not adequate
Page 12, Line 26facilities at the location where the records are maintained to
Page 12, Line 27conduct the examination. The administrator may designate
Page 13, Line 1representatives, including comparable officials of the state in
Page 13, Line 2which the records are located, to inspect the records on the
Page 13, Line 3administrator's behalf.
Page 13, Line 4(b) The administrator may require a provider whose
Page 13, Line 5records are located within the state to make the provider's
Page 13, Line 6records available for examination at the administrator's office
Page 13, Line 7or at another location the administrator deems appropriate, at
Page 13, Line 8the cost of the provider, if the administrator determines that
Page 13, Line 9the examination of the records at the location where the
Page 13, Line 10records are maintained endangers the safety of the
Page 13, Line 11administrator's representative or that there are not adequate
Page 13, Line 12facilities at the location where the records are maintained to
Page 13, Line 13conduct the examination.
Page 13, Line 14(3) The administrator may administer oaths or
Page 13, Line 15affirmations and, upon the administrator's own motion or upon
Page 13, Line 16the request of any party, may subpoena witnesses and compel
Page 13, Line 17their attendance, adduce evidence, and require the production
Page 13, Line 18of any matter that is relevant to the investigation, including
Page 13, Line 19the existence, description, nature, custody, condition, and
Page 13, Line 20location of any books, documents, or other tangible things and
Page 13, Line 21the identity and location of persons having knowledge of
Page 13, Line 22relevant facts or any other matter reasonably calculated to
Page 13, Line 23lead to the discovery of admissible evidence.
Page 13, Line 24(4) If a provider fails to obey a subpoena or to give
Page 13, Line 25testimony without lawful excuse, the administrator may
Page 13, Line 26request an order of compliance from the appropriate district
Page 13, Line 27court.
Page 14, Line 1(5) After the administrator has examined a licensee's
Page 14, Line 2records pursuant to this section, the administrator shall
Page 14, Line 3provide a report of the examination to the licensee and may
Page 14, Line 4require the licensee to take corrective action. The licensee
Page 14, Line 5shall, within a time and in a manner determined by the
Page 14, Line 6administrator, take the corrective action required in the report
Page 14, Line 7and provide proof that the corrective action was taken. The
Page 14, Line 8corrective action required may include refunds of excess
Page 14, Line 9charges and corrections of disclosures required by this article
Page 14, Line 1022. The administrator is not required to allow a licensee to take
Page 14, Line 11corrective action prior to the administrator filing legal or
Page 14, Line 12administrative action for repeated or willful violations of this
Page 14, Line 13article 22.
Page 14, Line 14(6) The administrator shall not disclose the name or
Page 14, Line 15identity of a person whose acts or conduct is under
Page 14, Line 16investigation or examination pursuant to this section or the
Page 14, Line 17facts disclosed in the investigation or examination, except for
Page 14, Line 18disclosures in actions or enforcement proceedings initiated
Page 14, Line 19pursuant to this article 22.
Page 14, Line 205-22-107. Administrative procedures - applicability.Except
Page 14, Line 21as otherwise provided, sections 24-4-102 to 24-4-106 apply to and
Page 14, Line 22govern all rules adopted and all administrative action taken
Page 14, Line 23by the administrator pursuant to this article 22; except that
Page 14, Line 24section 24-4-104 (3) does not apply.
Page 14, Line 255-22-108. Applicability - exceptions. (1) This article 22
Page 14, Line 26applies to a person that acts as a provider for a consumer,
Page 14, Line 27regardless of whether the provider's business is located inside
Page 15, Line 1or outside of the state.
Page 15, Line 2(2) This article 22 does not apply to a federal department
Page 15, Line 3or agency; a state or municipal government; or a corporation
Page 15, Line 4organized under the general banking, savings and loan, or
Page 15, Line 5credit union laws of the state, another state, or the United
Page 15, Line 6States.
Page 15, Line 7(3) Notwithstanding the"Uniform Consumer Credit Code",
Page 15, Line 8articles 1 to 9 of this title 5, or any other law to the contrary:
Page 15, Line 9(a) Earned-wage access services offered and provided by
Page 15, Line 10a licensee in accordance with this article 22 are not:
Page 15, Line 11(I) A violation of or noncompliant with any law
Page 15, Line 12governing:
Page 15, Line 13(A) Deductions from payroll, salary, wages,
Page 15, Line 14compensation, or other income; or
Page 15, Line 15(B) The purchase, sale, or assignment of, or an order for,
Page 15, Line 16earned but unpaid income;
Page 15, Line 17(II) A loan or other form of credit or debt; or
Page 15, Line 18(III) A money transmission.
Page 15, Line 19(b) A licensee is not considered to be a creditor, debt
Page 15, Line 20collector, collection agency, lender, or money transmitter
Page 15, Line 21when providing earned-wage access services.
Page 15, Line 22(c) Fees paid to a licensee in accordance with this article
Page 15, Line 2322 are not interest or finance charges.
Page 15, Line 245-22-109. Actions by provider - required. (1) A provider
Page 15, Line 25shall:
Page 15, Line 26(a) Develop and implement policies and procedures to
Page 15, Line 27respond to questions raised by consumers and address
Page 16, Line 1complaints from consumers in an expedient manner;
Page 16, Line 2(b) If the provider offers a consumer the option to receive
Page 16, Line 3proceeds for a fee, offer to the consumer at least one
Page 16, Line 4reasonable option to obtain proceeds at no cost to the consumer
Page 16, Line 5and clearly explain how to elect the no-cost option;
Page 16, Line 6(c) Before entering into an agreement with a consumer
Page 16, Line 7for the provision of earned-wage access services:
Page 16, Line 8(I) Inform the consumer of their rights under the
Page 16, Line 9agreement; and
Page 16, Line 10(II) Fully and clearly disclose all fees associated with
Page 16, Line 11the earned-wage access services;
Page 16, Line 12(d) Inform the consumer of any material changes to the
Page 16, Line 13terms and conditions of the earned-wage access services before
Page 16, Line 14implementing the changes for the consumer;
Page 16, Line 15(e) Allow the consumer to cancel use of the provider's
Page 16, Line 16earned-wage access services at any time, without incurring a
Page 16, Line 17cancellation fee imposed by the provider;
Page 16, Line 18(f) Comply with all applicable local, state, and federal
Page 16, Line 19privacy and information security laws;
Page 16, Line 20(g) Provide proceeds to a consumer by any means
Page 16, Line 21mutually agreed upon by the consumer and the provider;
Page 16, Line 22(h) If the provider seeks repayment of outstanding
Page 16, Line 23proceeds or payment of fees or other amounts owed in
Page 16, Line 24connection with the activities covered by this article 22 from a
Page 16, Line 25consumer's account at a depository institution, including by
Page 16, Line 26means of electronic funds transfer:
Page 16, Line 27(I) Comply with applicable provisions of the federal
Page 17, Line 1"Electronic Fund Transfer Act", 15 U.S.C. sec. 1693 et seq., and
Page 17, Line 2regulations adopted pursuant to the act; and
Page 17, Line 3(II) Reimburse the consumer for the full amount of any
Page 17, Line 4overdraft or insufficient funds fees imposed on a consumer by
Page 17, Line 5the consumer's depository institution that were caused by the
Page 17, Line 6provider attempting to seek payment of any outstanding
Page 17, Line 7proceeds, fees, or other payments in connection with the
Page 17, Line 8activities covered by this article 22 on a date before, or in an
Page 17, Line 9incorrect amount from, the date or amount disclosed to the
Page 17, Line 10consumer; and
Page 17, Line 11(i) In the provision of consumer-directed wage access
Page 17, Line 12services, allow the consumer to reschedule a date for the
Page 17, Line 13settlement of outstanding proceeds at any time without
Page 17, Line 14incurring an additional fee imposed by the provider.
Page 17, Line 155-22-110. Prohibited acts. (1) A provider shall not:
Page 17, Line 16(a) Share with an employer a portion of any fees that were
Page 17, Line 17received from or charged to a consumer for earned-wage access
Page 17, Line 18services;
Page 17, Line 19(b) Require a consumer's credit report or a credit score
Page 17, Line 20provided or issued by a consumer reporting agency to determine
Page 17, Line 21a consumer's eligibility for earned-wage access services;
Page 17, Line 22(c) Accept payment of outstanding proceeds or fees from
Page 17, Line 23a consumer by means of a credit card or charge card;
Page 17, Line 24(d) Charge a consumer a late fee, a deferral fee, interest,
Page 17, Line 25or any other penalty or charge for failure to pay outstanding
Page 17, Line 26proceeds or fees;
Page 17, Line 27(e) Report to a consumer reporting agency, collection
Page 18, Line 1agency, or debt collector any information about the consumer
Page 18, Line 2regarding the inability of the provider to be repaid outstanding
Page 18, Line 3proceeds or fees;
Page 18, Line 4(f) Solicit, charge, or receive tips, gratuities, or other
Page 18, Line 5donations from a consumer;
Page 18, Line 6(g) Impose a fee in excess of seven dollars for delivery or
Page 18, Line 7expedited delivery of services for fiscal year 2025-26 and, for
Page 18, Line 8each fiscal year thereafter, impose a fee increase by an amount
Page 18, Line 9that is greater than the annual percentage change in the United
Page 18, Line 10States department of labor's bureau of labor statistics
Page 18, Line 11consumer price index, or a successor index, for
Page 18, Line 12Denver-Aurora-Lakewood for all items paid for by urban
Page 18, Line 13consumers;
Page 18, Line 14(h) Enter into an agreement with an employer that would
Page 18, Line 15require a consumer who is an employee of such employer to use
Page 18, Line 16earned-wage access services as a necessary condition of
Page 18, Line 17receiving payment of wages; or
Page 18, Line 18(i) (I) Compel or attempt to compel a consumer to pay
Page 18, Line 19outstanding proceeds or fees to the provider through:
Page 18, Line 20(A) A lawsuit against the consumer in a court of
Page 18, Line 21competent jurisdiction;
Page 18, Line 22(B) The use of a third party to pursue collection from the
Page 18, Line 23consumer on the provider's behalf; or
Page 18, Line 24(C) The sale of outstanding proceeds or fees to a
Page 18, Line 25third-party collector or debt buyer for collection from a
Page 18, Line 26consumer.
Page 18, Line 27(II) The limitations in this subsection (1)(i) do not preclude
Page 19, Line 1a provider from using any of the methods in subsection (1)(i)(I) of
Page 19, Line 2this section to:
Page 19, Line 3(A) Compel payment of outstanding proceeds paid to or
Page 19, Line 4fees incurred by a consumer through fraudulent or other
Page 19, Line 5unlawful means; or
Page 19, Line 6(B) Pursue an employer for breach of its contractual
Page 19, Line 7obligations to the provider.
Page 19, Line 85-22-111. Powers of administrator. (1) In addition to other
Page 19, Line 9powers granted by this article 22, the administrator may:
Page 19, Line 10(a) Receive and act on complaints, take action designed to
Page 19, Line 11obtain voluntary compliance with this article 22, or commence
Page 19, Line 12proceedings on the administrator's initiative;
Page 19, Line 13(b) Counsel persons and groups on their rights and duties
Page 19, Line 14described in this article 22;
Page 19, Line 15(c) Establish programs for the education of consumers
Page 19, Line 16with respect to earned-wage access services;
Page 19, Line 17(d) Make studies appropriate to effectuate the purposes
Page 19, Line 18and policies of this article 22 and make the results of any study,
Page 19, Line 19aggregated for all licensees and nonidentifiable by licensee,
Page 19, Line 20available to the public;
Page 19, Line 21(e) Employ administrative law judges from the office of
Page 19, Line 22administrative courts in the department of personnel to
Page 19, Line 23conduct hearings on any matter related to this article 22; and
Page 19, Line 24(f) Exchange information with another governmental
Page 19, Line 25agency or official that has regulatory authority comparable
Page 19, Line 26to that of the administrator, subject to an appropriate
Page 19, Line 27confidentiality agreement between the administrator and the
Page 20, Line 1other agency or official or as otherwise permitted by law. This
Page 20, Line 2subsection (1)(f) does not allow the exchange of information
Page 20, Line 3with providers.
Page 20, Line 4(2) A person is not liable pursuant to this article 22 for an
Page 20, Line 5act committed or omitted in good faith in conformity with a
Page 20, Line 6rule, regulation, interpretation, or written response to a person
Page 20, Line 7pursuant to a written request on behalf of the identified person
Page 20, Line 8by the administrator.
Page 20, Line 95-22-112. Administrative enforcement - cease and desist -
Page 20, Line 10penalty - rules. (1) The administrator shall enforce this article
Page 20, Line 1122.
Page 20, Line 12(2) The administrator may adopt rules for the
Page 20, Line 13administration and enforcement of this article 22.
Page 20, Line 14(3) After notice and a hearing, the administrator may
Page 20, Line 15order a provider or a person acting on the provider's behalf to
Page 20, Line 16cease and desist from engaging in violations of this article 22 or
Page 20, Line 17any rule or order lawfully made pursuant to this article 22.
Page 20, Line 18The order issued by the administrator may also require the
Page 20, Line 19provider or person to pay a penalty up to one thousand dollars
Page 20, Line 20for each violation.
Page 20, Line 21(4) A respondent aggrieved by an action or order of the
Page 20, Line 22administrator may obtain judicial review of the action or order
Page 20, Line 23in the Colorado court of appeals. The administrator may obtain
Page 20, Line 24an order of the court for enforcement of the administrator's
Page 20, Line 25order in the district court under section 24-4-106. All
Page 20, Line 26proceedings authorized under this section are governed by
Page 20, Line 27sections 24-4-105 and 24-4-106.
Page 21, Line 1(5) With respect to an action brought to enjoin violations
Page 21, Line 2of this article 22, the administrator may apply to the court of
Page 21, Line 3appropriate jurisdiction for a temporary restraining order or a
Page 21, Line 4preliminary injunction against a respondent pending final
Page 21, Line 5determination of proceedings. If the court finds after a hearing
Page 21, Line 6that there is reasonable cause to believe that the respondent is
Page 21, Line 7engaging in or is likely to engage in conduct sought to be
Page 21, Line 8restrained, the court may grant any such temporary restraining
Page 21, Line 9order or preliminary injunction it deems appropriate. The court
Page 21, Line 10may also issue an order or judgment as may be necessary to
Page 21, Line 11restore a consumer who has been affected by such violation,
Page 21, Line 12agreement, or conduct to the consumer's original position or to
Page 21, Line 13compensate a consumer if there is reasonable cause to believe
Page 21, Line 14that sufficient funding to make refunds to the consumer will
Page 21, Line 15not be available at a future date. A bond or other security is
Page 21, Line 16not required of the administrator before relief under this
Page 21, Line 17subsection (5) may be granted.
Page 21, Line 185-22-113. Civil actions by administrator - penalty. (1) The
Page 21, Line 19administrator may bring a civil action against a provider or a
Page 21, Line 20person acting on the provider's behalf to recover a civil penalty
Page 21, Line 21for willfully violating this article 22, and, if the court finds
Page 21, Line 22that the defendant has engaged in a course of repeated and
Page 21, Line 23willful violations of this article 22, the court may assess a civil
Page 21, Line 24penalty of no more than ten thousand dollars per violation. A
Page 21, Line 25civil penalty pursuant to this subsection (1) shall not be imposed
Page 21, Line 26for violations of this article 22 that occur more than four
Page 21, Line 27years before the action is brought.
Page 22, Line 1(2) If the administrator prevails in an action brought
Page 22, Line 2under this section, the administrator may recover reasonable
Page 22, Line 3costs of the investigation and action and may request an order
Page 22, Line 4for reimbursement of reasonable attorney fees.
Page 22, Line 5(3) In an action brought by the administrator under this
Page 22, Line 6article 22, the administrator does not have a right to trial by
Page 22, Line 7jury, but a defendant may request a jury trial under the
Page 22, Line 8Colorado rules of civil procedure.
Page 22, Line 95-22-114. Assurance of discontinuance.If a person files a
Page 22, Line 10complaint with the administrator as described in section
Page 22, Line 115-22-111 or with a court as described in section 5-22-112 that a
Page 22, Line 12provider has engaged in conduct subject to an order by the
Page 22, Line 13administrator or by the court, the administrator or the court
Page 22, Line 14may accept an assurance in writing that the provider will not
Page 22, Line 15engage in the conduct in the future. The administrator may
Page 22, Line 16require the provider as part of the assurance to pay a penalty
Page 22, Line 17up to one thousand dollars for each violation and reimburse the
Page 22, Line 18administrator for the administrator's reasonable costs
Page 22, Line 19incurred in investigating the conduct.
Page 22, Line 20SECTION 2. Act subject to petition - effective date -
Page 22, Line 21applicability. (1) This act takes effect November 1, 2025; except that,
Page 22, Line 22if a referendum petition is filed pursuant to section 1 (3) of article V of
Page 22, Line 23the state constitution against this act or an item, section, or part of this act
Page 22, Line 24within the ninety-day period after final adjournment of the general
Page 22, Line 25assembly, then the act, item, section, or part will not take effect unless
Page 22, Line 26approved by the people at the general election to be held in November
Page 22, Line 272026 and, in such case, will take effect on the date of the official
Page 23, Line 1declaration of the vote thereon by the governor.
Page 23, Line 2(2) This act applies to earned-wage access services provided on
Page 23, Line 3or after November 1, 2025.