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.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 5-1-301, add (19.5)
Page 2, Line 3as follows:
Page 2, Line 45-1-301. General definitions. In addition to definitions appearing
Page 2, Line 5in subsequent articles, as used in this code, unless the context otherwise
Page 2, Line 6requires:
Page 2, Line 7(19.5) "Employer-integrated wage access service" means
Page 2, Line 8a consumer credit transaction that provides a consumer access
Page 2, Line 9to earned but unpaid income that is based on employment income,
Page 2, Line 10or attendance data obtain directly from an employer or an
Page 2, Line 11employer's payroll service provider.".
Page 2, Line 12SECTION 2. In Colorado Revised Statutes, add 5-2-215 as
Page 2, Line 13follows:
Page 2, Line 145-2-215. Employer-integrated wage access service - consumer
Page 2, Line 15protections - rules. (1) Notwithstanding any other provision of
Page 2, Line 16the code, a person may offer an employer-integrated wage
Page 2, Line 17access service subject to consumer protection rules adopted by
Page 2, Line 18the administrator that ensure safety and affordability. In
Page 2, Line 19adopting the consumer protection rules, the administrator
Page 2, Line 20shall:
Page 2, Line 21(a) Not require that the fee for delivery or expedited
Page 2, Line 22delivery of services be less than three dollars fifty cents;
Page 2, Line 23(b) Not require that a provider disclose the annual
Page 2, Line 24percentage rate of an earned-wage access services transaction
Page 2, Line 25to the employer or consumer; and
Page 2, Line 26(c) Comply with section 5-22-108 (3).
Page 3, Line 1SECTION 3. In Colorado Revised Statutes, add article 22 to title
Page 3, Line 25 as follows:
Page 3, Line 3ARTICLE 22
Page 3, Line 4Earned-Wage Access Services
Page 3, Line 55-22-101. Short title.The short title of this article 22 is the
Page 3, Line 6"Earned-Wage Access Services Act".
Page 3, Line 75-22-102. Definitions.As used in this article 22, unless the
Page 3, Line 8context otherwise requires:
Page 3, Line 9(1) "Administrator" means the assistant attorney general
Page 3, Line 10or the attorney general's designee exercising the powers and
Page 3, Line 11performing the duties of the administrator pursuant to part 1 of
Page 3, Line 12article 6 of this title 5.
Page 3, Line 13(2) "Consumer" means an individual who resides in the
Page 3, Line 14state as evidenced by the mailing address or address of
Page 3, Line 15residence provided by the individual or their employer.
Page 3, Line 16(3) "Consumer-directed wage access services" means
Page 3, Line 17services that deliver consumer access to earned but unpaid
Page 3, Line 18income that is based on the consumer's representations and the
Page 3, Line 19provider's reasonable determination of the consumer's earned
Page 3, Line 20but unpaid income.
Page 3, Line 21(4) "Earned but unpaid income" means salary, wages,
Page 3, Line 22compensation, or other income that a consumer or an employer
Page 3, Line 23has represented, and that a provider has reasonably
Page 3, Line 24determined, has been earned or accrued to the benefit of the
Page 3, Line 25consumer by the consumer's provision of services to the
Page 3, Line 26employer or on behalf of the employer, on an hourly,
Page 3, Line 27project-based, piecework, or other basis, or as an independent
Page 4, Line 1contractor, but has not been paid to the consumer by the
Page 4, Line 2employer.
Page 4, Line 3(5) "Earned-wage access services" means
Page 4, Line 4consumer-directed wage access services, employer-integrated
Page 4, Line 5wage access services, or both.
Page 4, Line 6(6) (a) "Employer" means:
Page 4, Line 7(I) A person that employs a consumer; and
Page 4, Line 8(II) Any other person that is contractually obligated to
Page 4, Line 9pay a consumer earned but unpaid income.
Page 4, Line 10(b) "Employer" does not include:
Page 4, Line 11(I) A customer of the employer; or
Page 4, Line 12(II) Any other person whose obligation to make a payment
Page 4, Line 13of salary, wages, compensation, or other income to a consumer
Page 4, Line 14is not based on the provision of services by that consumer for or
Page 4, Line 15on behalf of the person.
Page 4, Line 16(7) "Employer-integrated wage access services" means
Page 4, Line 17services that provide consumer access to earned but unpaid
Page 4, Line 18income that is based on employment, income, or attendance data
Page 4, Line 19obtained directly or indirectly from an employer or an
Page 4, Line 20employer's payroll service provider.
Page 4, Line 21(8) "Fee" means:
Page 4, Line 22(a) A fee imposed by a provider for delivery or expedited
Page 4, Line 23delivery of proceeds to a consumer; and
Page 4, Line 24(b) A subscription or membership fee imposed by a provider
Page 4, Line 25for a bona fide group of services that include earned-wage
Page 4, Line 26access services.
Page 4, Line 27(9) "Licensee" means a provider licensed by the
Page 5, Line 1administrator pursuant to this article 22 to provide
Page 5, Line 2earned-wage access services.
Page 5, Line 3(10) "Outstanding proceeds" means proceeds remitted to
Page 5, Line 4a consumer by a provider that have not yet been repaid to the
Page 5, Line 5provider.
Page 5, Line 6(11) "Person" means a natural person, firm, corporation,
Page 5, Line 7limited liability company, or partnership.
Page 5, Line 8(12) "Proceeds" means a payment to a consumer by a
Page 5, Line 9provider that is based on earned but unpaid income.
Page 5, Line 10(13) (a) "Provider" means a person that provides
Page 5, Line 11earned-wage access services.
Page 5, Line 12(b) "Provider" does not include:
Page 5, Line 13(I) A service provider, including a payroll service
Page 5, Line 14provider, whose role may include verifying available earnings
Page 5, Line 15but that is not contractually obligated to fund any proceeds
Page 5, Line 16delivered as part of an earned-wage access service; or
Page 5, Line 17(II) An employer that offers a portion of salary, wages, or
Page 5, Line 18compensation directly to its employees or independent
Page 5, Line 19contractors before the normally scheduled pay date.
Page 5, Line 205-22-103. Earned-wage access services - license - application
Page 5, Line 21- renewal - fees - rules. (1) Beginning January 1, 2026, a person
Page 5, Line 22shall not provide earned-wage access services or act as a
Page 5, Line 23provider without a license issued by the administrator pursuant
Page 5, Line 24to this article 22.
Page 5, Line 25(2) (a) Each applicant to be a licensee shall submit an
Page 5, Line 26application to the administrator in a form and manner
Page 5, Line 27prescribed by the administrator.
Page 6, Line 1(b) The application must include:
Page 6, Line 2(I) The name, mailing address, and physical location of the
Page 6, Line 3applicant's business;
Page 6, Line 4(II) A license application fee as determined necessary by
Page 6, Line 5the administrator, in an amount not to exceed six thousand
Page 6, Line 6dollars; and
Page 6, Line 7(III) Any other information as determined by the
Page 6, Line 8administrator.
Page 6, Line 9(c) The administrator shall review each application and
Page 6, Line 10determine whether the applicant qualifies for a license.
Page 6, Line 11(3) (a) The administrator shall not issue a license to a
Page 6, Line 12provider unless:
Page 6, Line 13(I) The administrator, upon investigation, finds that the
Page 6, Line 14financial responsibility, character, and fitness of the applicant
Page 6, Line 15and of the applicant's members, managers, partners, officers,
Page 6, Line 16and directors are sufficient so that the administrator believes
Page 6, Line 17that the applicant will operate the business honestly and fairly
Page 6, Line 18within the purposes of this article 22; and
Page 6, Line 19(II) The license application fee is paid.
Page 6, Line 20(b) The administrator may deny an application for a
Page 6, Line 21license based on any of the grounds listed in section 5-22-104.
Page 6, Line 22(4) (a) If the administrator denies an application, upon
Page 6, Line 23written request of the applicant, the administrator shall allow
Page 6, Line 24for a hearing on the question of the applicant's qualifications
Page 6, Line 25for a license.
Page 6, Line 26(b) In order for a hearing to take place pursuant to
Page 6, Line 27subsection (4)(a) of this section, an applicant must request the
Page 7, Line 1hearing not more than sixty days after the administrator has
Page 7, Line 2mailed a written notification to the applicant stating that the
Page 7, Line 3application has been denied and stating the substantive reasons
Page 7, Line 4for the administrator's findings supporting the denial of the
Page 7, Line 5application.
Page 7, Line 6(5) A licensee shall not engage in the business of a
Page 7, Line 7provider under any other name than that stated in the license.
Page 7, Line 8The administrator may by rule establish an administrative
Page 7, Line 9process and fee for a provider name change.
Page 7, Line 10(6) A license is valid for one year. To renew a license, a
Page 7, Line 11licensee shall file a renewal form annually in a form and
Page 7, Line 12manner prescribed by the administrator and include a renewal
Page 7, Line 13fee established by the administrator. The fee and renewal form
Page 7, Line 14is due to the administrator by April 15 of each year. If a licensee
Page 7, Line 15fails to pay the prescribed renewal fee on or before May 1 of
Page 7, Line 16each year, the licensee shall pay a penalty of five dollars per
Page 7, Line 17day per license beginning May 2 and until the date the payment
Page 7, Line 18is postmarked. If a licensee fails to pay the appropriate renewal
Page 7, Line 19and penalty fees by May 15, the licensee's license automatically
Page 7, Line 20expires.
Page 7, Line 215-22-104. License - denial - grounds for discipline. (1) The
Page 7, Line 22administrator may deny an application for a license or take
Page 7, Line 23disciplinary action against a licensee under this article 22 if the
Page 7, Line 24administrator finds that:
Page 7, Line 25(a) The applicant or licensee violated this article 22 or a
Page 7, Line 26rule adopted by the administrator pursuant to this article 22;
Page 7, Line 27(b) Facts or conditions exist that would have clearly
Page 8, Line 1justified the administrator's refusal to grant a license to the
Page 8, Line 2licensee had these facts or conditions been known to exist at the
Page 8, Line 3time the application for the license was made;
Page 8, Line 4(c) The applicant failed to complete a license application;
Page 8, Line 5(d) The applicant or licensee failed to provide information
Page 8, Line 6required by the administrator within a reasonable time as fixed
Page 8, Line 7by the administrator;
Page 8, Line 8(e) The applicant or licensee failed to provide or maintain
Page 8, Line 9proof of financial responsibility;
Page 8, Line 10(f) The applicant or licensee is insolvent;
Page 8, Line 11(g) The applicant or licensee made a false representation
Page 8, Line 12of a material fact or omitted a material fact in a document or
Page 8, Line 13statement filed with the administrator;
Page 8, Line 14(h) The applicant, licensee, or its owners, partners,
Page 8, Line 15members, officers, or directors have been convicted of or
Page 8, Line 16entered a plea of guilty or nolo contendere to:
Page 8, Line 17(I) A crime specified in part 4 of article 4 of title 18 or in
Page 8, Line 18part 1, 2, 3, 5, or 7 of article 5 of title 18;
Page 8, Line 19(II) A crime involving fraud or deceit; or
Page 8, Line 20(III) A crime that is similar to one of the crimes listed in
Page 8, Line 21subsection (1)(h)(I) or (1)(h)(II) of this section under the
Page 8, Line 22jurisdiction of a federal court or a court of another state;
Page 8, Line 23(i) The applicant or licensee failed to make, maintain, or
Page 8, Line 24produce records that comply with section 5-22-105 or any rule
Page 8, Line 25adopted by the administrator to implement section 5-22-105;
Page 8, Line 26(j) The applicant or licensee has been the subject of a
Page 8, Line 27disciplinary action by any state or federal agency;
Page 9, Line 1(k) A final judgment has been entered against the
Page 9, Line 2applicant or licensee for violations of this article 22 or any
Page 9, Line 3state or federal law prohibiting deceptive or unfair trade or
Page 9, Line 4business practices; or
Page 9, Line 5(l) After the administrator commenced an examination or
Page 9, Line 6investigation of the applicant or licensee, the applicant or
Page 9, Line 7licensee failed to, in a timely manner as fixed by the
Page 9, Line 8administrator, take or provide proof of a corrective action
Page 9, Line 9required by the administrator pursuant to section 5-22-106 (5).
Page 9, Line 10(2) In a case where the administrator determines whether
Page 9, Line 11the suspension of a licensee's license is warranted, the
Page 9, Line 12administrator shall make the determination pursuant to the
Page 9, Line 13criteria and procedures outlined in section 24-4-104.
Page 9, Line 14(3) When the administrator denies a license application or
Page 9, Line 15takes disciplinary action pursuant to this section, the
Page 9, Line 16administrator shall notify the applicant or licensee of the
Page 9, Line 17denial or disciplinary action and shall make a record of the
Page 9, Line 18notification. The administrator shall notify the applicant or
Page 9, Line 19licensee by personal service or by mail to the last-known
Page 9, Line 20address of the applicant or licensee as shown on the application
Page 9, Line 21or license or as subsequently furnished in writing to the
Page 9, Line 22administrator.
Page 9, Line 23(4) A licensee may relinquish the license by notifying the
Page 9, Line 24administrator in writing of the relinquishment. A revocation,
Page 9, Line 25suspension, expiration, or relinquishment of a license does not
Page 9, Line 26affect the licensee's liability for acts previously committed nor
Page 9, Line 27impair the administrator's ability to issue a final agency order
Page 10, Line 1or impose discipline against the licensee.
Page 10, Line 2(5) A revocation, suspension, or relinquishment of a
Page 10, Line 3license does not impair or affect the obligation of a preexisting
Page 10, Line 4lawful contract between a licensee and a consumer.
Page 10, Line 5(6) The administrator may reinstate a license, terminate
Page 10, Line 6a suspension, or grant a new license to a person whose license
Page 10, Line 7has been revoked or suspended if no fact or condition then exists
Page 10, Line 8that clearly justifies a refusal to reinstate the license,
Page 10, Line 9terminate the suspension, or grant the new license.
Page 10, Line 10(7) If the administrator finds that one or more of the
Page 10, Line 11conditions stated in subsection (1) of this section exist, the
Page 10, Line 12administrator may do one or more of the following:
Page 10, Line 13(a) Deny the application for licensure;
Page 10, Line 14(b) Revoke the license;
Page 10, Line 15(c) Suspend the license for a period of time;
Page 10, Line 16(d) Issue an order to the licensee to cease and desist from
Page 10, Line 17specific acts;
Page 10, Line 18(e) Impose a penalty of up to a maximum of one thousand
Page 10, Line 19dollars for each violation;
Page 10, Line 20(f) Bar the person from applying for or holding a license
Page 10, Line 21for a period of five years following revocation of their license;
Page 10, Line 22(g) Issue a letter of admonition; or
Page 10, Line 23(h) Impose a penalty of two hundred dollars per day for
Page 10, Line 24failure to make, produce, or retain records required to be
Page 10, Line 25maintained under this article 22 within forty-eight hours after
Page 10, Line 26an administrator's written request. If the administrator has
Page 10, Line 27provided advance written notice of forty-eight hours or more
Page 11, Line 1to a licensee prior to conducting an examination pursuant to
Page 11, Line 2section 5-22-106, the penalty may be imposed without allowing
Page 11, Line 3additional time.
Page 11, Line 4(8) The administrator may impose the grounds for
Page 11, Line 5discipline in subsections (7)(g) and (7)(h) of this section without
Page 11, Line 6a hearing, but the licensee may, within thirty days after the
Page 11, Line 7date the discipline is imposed, file a written notice with the
Page 11, Line 8administrator requesting a hearing. If the request is timely
Page 11, Line 9made, any letter of admonition issued pursuant to subsection
Page 11, Line 10(7)(g) of this section is deemed vacated and the administrator
Page 11, Line 11shall hold a hearing. If, after the hearing, there is a finding that
Page 11, Line 12one or more of the grounds for discipline exist, any or all of the
Page 11, Line 13forms of discipline listed in this section may be imposed.
Page 11, Line 145-22-105. Records - annual reports - rules. (1) Each licensee
Page 11, Line 15shall maintain records in conformity with this section, rules
Page 11, Line 16adopted by the administrator pursuant to this section, and
Page 11, Line 17generally accepted accounting principles and practices in a
Page 11, Line 18manner that will enable the administrator to determine if the
Page 11, Line 19licensee is complying with this article 22. A licensee may, but is
Page 11, Line 20not required to, keep the required records in the licensee's place
Page 11, Line 21of business as long as the administrator is given free access to
Page 11, Line 22the records in the licensee's storage location. A licensee does
Page 11, Line 23not need to preserve records pertaining to an earned-wage
Page 11, Line 24access services transaction made as part of the licensee's
Page 11, Line 25business for more than one year after making the final entry
Page 11, Line 26related to the earned-wage access services transaction.
Page 11, Line 27(2) Each licensee shall file an annual report with the
Page 12, Line 1administrator, on or before April 15 of each year, that includes
Page 12, Line 2all relevant information that the administrator reasonably
Page 12, Line 3requires concerning the business and operations conducted by
Page 12, Line 4the licensee in the state during the preceding calendar year,
Page 12, Line 5including information regarding earned-wage access services
Page 12, Line 6activities. The report must include, at minimum:
Page 12, Line 7(a) The gross revenue attributable to earned-wage access
Page 12, Line 8services;
Page 12, Line 9(b) The total number of transactions in which the licensee
Page 12, Line 10provided proceeds to consumers;
Page 12, Line 11(c) The total number of consumers to whom the licensee
Page 12, Line 12provided proceeds;
Page 12, Line 13(d) The total dollar amount of proceeds the licensee
Page 12, Line 14provided to consumers; and
Page 12, Line 15(e) The total dollar amount of fees the provider received
Page 12, Line 16from consumers.
Page 12, Line 17(3) The administrator shall keep the reports filed
Page 12, Line 18pursuant to this section confidential and not open them to the
Page 12, Line 19public for inspection pursuant to the "Colorado Open Records
Page 12, Line 20Act", part 2 of article 72 of title 24. The administrator may
Page 12, Line 21annually publish and make available to the public an
Page 12, Line 22aggregated and anonymized analysis of the information
Page 12, Line 23submitted by all licensees as required pursuant to this section.
Page 12, Line 24(4) A licensee shall submit a report under oath and in the
Page 12, Line 25form prescribed by the administrator.
Page 12, Line 26(5) If a licensee fails to file an annual report by April 15,
Page 12, Line 27the administrator may impose a penalty of five dollars per day
Page 13, Line 1beginning April 16 and each day thereafter until the date of the
Page 13, Line 2postmark on the filed report. If a licensee fails to file the report
Page 13, Line 3and pay the penalty imposed by May 1 of the same year, the
Page 13, Line 4licensee's license automatically expires.
Page 13, Line 55-22-106. Examinations - investigations. (1) Upon request of
Page 13, Line 6the administrator, a provider shall provide the administrator
Page 13, Line 7with free and reasonable access to the provider's records for
Page 13, Line 8the administrator to examine for the purpose of investigating
Page 13, Line 9possible violations of this article 22 or as a means of lawfully
Page 13, Line 10securing information retained by the provider.
Page 13, Line 11(2) (a) If a provider's records are located outside the
Page 13, Line 12state, the provider shall, at the provider's option, either make
Page 13, Line 13the records available to the administrator at a convenient
Page 13, Line 14location within the state or pay the reasonable and necessary
Page 13, Line 15expenses for the administrator or the administrator's
Page 13, Line 16representative to examine the records at the location where the
Page 13, Line 17records are maintained; except that the provider shall make the
Page 13, Line 18records available for examination at the administrator's office
Page 13, Line 19or at another location the administrator deems appropriate, at
Page 13, Line 20the cost of the provider, if the administrator determines that
Page 13, Line 21the examination of the records at the location where the
Page 13, Line 22records are maintained endangers the safety of the
Page 13, Line 23administrator's representative or that there are not adequate
Page 13, Line 24facilities at the location where the records are maintained to
Page 13, Line 25conduct the examination. The administrator may designate
Page 13, Line 26representatives, including comparable officials of the state in
Page 13, Line 27which the records are located, to inspect the records on the
Page 14, Line 1administrator's behalf.
Page 14, Line 2(b) The administrator may require a provider whose
Page 14, Line 3records are located within the state to make the provider's
Page 14, Line 4records available for examination at the administrator's office
Page 14, Line 5or at another location the administrator deems appropriate, at
Page 14, Line 6the cost of the provider, if the administrator determines that
Page 14, Line 7the examination of the records at the location where the
Page 14, Line 8records are maintained endangers the safety of the
Page 14, Line 9administrator's representative or that there are not adequate
Page 14, Line 10facilities at the location where the records are maintained to
Page 14, Line 11conduct the examination.
Page 14, Line 12(3) The administrator may administer oaths or
Page 14, Line 13affirmations and, upon the administrator's own motion or upon
Page 14, Line 14the request of any party, may subpoena witnesses and compel
Page 14, Line 15their attendance, adduce evidence, and require the production
Page 14, Line 16of any matter that is relevant to the investigation, including
Page 14, Line 17the existence, description, nature, custody, condition, and
Page 14, Line 18location of any books, documents, or other tangible things and
Page 14, Line 19the identity and location of persons having knowledge of
Page 14, Line 20relevant facts or any other matter reasonably calculated to
Page 14, Line 21lead to the discovery of admissible evidence.
Page 14, Line 22(4) If a provider fails to obey a subpoena or to give
Page 14, Line 23testimony without lawful excuse, the administrator may
Page 14, Line 24request an order of compliance from the appropriate district
Page 14, Line 25court.
Page 14, Line 26(5) After the administrator has examined a licensee's
Page 14, Line 27records pursuant to this section, the administrator shall
Page 15, Line 1provide a report of the examination to the licensee and may
Page 15, Line 2require the licensee to take corrective action. The licensee
Page 15, Line 3shall, within a time and in a manner determined by the
Page 15, Line 4administrator, take the corrective action required in the report
Page 15, Line 5and provide proof that the corrective action was taken. The
Page 15, Line 6corrective action required may include refunds of excess
Page 15, Line 7charges and corrections of disclosures required by this article
Page 15, Line 822. The administrator is not required to allow a licensee to take
Page 15, Line 9corrective action prior to the administrator filing legal or
Page 15, Line 10administrative action for repeated or willful violations of this
Page 15, Line 11article 22.
Page 15, Line 12(6) The administrator shall not disclose the name or
Page 15, Line 13identity of a person whose acts or conduct is under
Page 15, Line 14investigation or examination pursuant to this section or the
Page 15, Line 15facts disclosed in the investigation or examination, except for
Page 15, Line 16disclosures in actions or enforcement proceedings initiated
Page 15, Line 17pursuant to this article 22.
Page 15, Line 185-22-107. Administrative procedures - applicability.Except
Page 15, Line 19as otherwise provided, sections 24-4-102 to 24-4-106 apply to and
Page 15, Line 20govern all rules adopted and all administrative action taken
Page 15, Line 21by the administrator pursuant to this article 22; except that
Page 15, Line 22section 24-4-104 (3) does not apply.
Page 15, Line 235-22-108. Applicability - exceptions. (1) This article 22
Page 15, Line 24applies to a person that acts as a provider for a consumer,
Page 15, Line 25regardless of whether the provider's business is located inside
Page 15, Line 26or outside of the state.
Page 15, Line 27(2) This article 22 does not apply to a federal department
Page 16, Line 1or agency; a state or municipal government; or a corporation
Page 16, Line 2organized under the general banking, savings and loan, or
Page 16, Line 3credit union laws of the state, another state, or the United
Page 16, Line 4States.
Page 16, Line 5(3) Notwithstanding the"Uniform Consumer Credit Code",
Page 16, Line 6articles 1 to 9 of this title 5, or any other law to the contrary:
Page 16, Line 7(a) Earned-wage access services offered and provided by
Page 16, Line 8a licensee in accordance with this article 22 are not:
Page 16, Line 9(I) A violation of or noncompliant with any law
Page 16, Line 10governing:
Page 16, Line 11(A) Deductions from payroll, salary, wages,
Page 16, Line 12compensation, or other income; or
Page 16, Line 13(B) The purchase, sale, or assignment of, or an order for,
Page 16, Line 14earned but unpaid income;
Page 16, Line 15(II) A loan or other form of credit or debt; or
Page 16, Line 16(III) A money transmission.
Page 16, Line 17(b) A licensee is not considered to be a creditor, debt
Page 16, Line 18collector, collection agency, lender, or money transmitter
Page 16, Line 19when providing earned-wage access services.
Page 16, Line 20(c) Fees paid to a licensee in accordance with this article
Page 16, Line 2122 are not interest or finance charges.
Page 16, Line 225-22-109. Actions by provider - required. (1) A provider
Page 16, Line 23shall:
Page 16, Line 24(a) Develop and implement policies and procedures to
Page 16, Line 25respond to questions raised by consumers and address
Page 16, Line 26complaints from consumers in an expedient manner;
Page 16, Line 27(b) If the provider offers a consumer the option to receive
Page 17, Line 1proceeds for a fee, offer to the consumer at least one
Page 17, Line 2reasonable option to obtain proceeds at no cost to the consumer
Page 17, Line 3and clearly explain how to elect the no-cost option;
Page 17, Line 4(c) Before entering into an agreement with a consumer
Page 17, Line 5for the provision of earned-wage access services:
Page 17, Line 6(I) Inform the consumer of their rights under the
Page 17, Line 7agreement; and
Page 17, Line 8(II) Fully and clearly disclose all fees associated with
Page 17, Line 9the earned-wage access services;
Page 17, Line 10(d) Inform the consumer of any material changes to the
Page 17, Line 11terms and conditions of the earned-wage access services before
Page 17, Line 12implementing the changes for the consumer;
Page 17, Line 13(e) Allow the consumer to cancel use of the provider's
Page 17, Line 14earned-wage access services at any time, without incurring a
Page 17, Line 15cancellation fee imposed by the provider;
Page 17, Line 16(f) Comply with all applicable local, state, and federal
Page 17, Line 17privacy and information security laws;
Page 17, Line 18(g) Provide proceeds to a consumer by any means
Page 17, Line 19mutually agreed upon by the consumer and the provider;
Page 17, Line 20(h) If the provider seeks repayment of outstanding
Page 17, Line 21proceeds or payment of fees or other amounts owed in
Page 17, Line 22connection with the activities covered by this article 22 from a
Page 17, Line 23consumer's account at a depository institution, including by
Page 17, Line 24means of electronic funds transfer:
Page 17, Line 25(I) Comply with applicable provisions of the federal
Page 17, Line 26"Electronic Fund Transfer Act", 15 U.S.C. sec. 1693 et seq., and
Page 17, Line 27regulations adopted pursuant to the act; and
Page 18, Line 1(II) Reimburse the consumer for the full amount of any
Page 18, Line 2overdraft or insufficient funds fees imposed on a consumer by
Page 18, Line 3the consumer's depository institution that were caused by the
Page 18, Line 4provider attempting to seek payment of any outstanding
Page 18, Line 5proceeds, fees, or other payments in connection with the
Page 18, Line 6activities covered by this article 22 on a date before, or in an
Page 18, Line 7incorrect amount from, the date or amount disclosed to the
Page 18, Line 8consumer; and
Page 18, Line 9(i) In the provision of consumer-directed wage access
Page 18, Line 10services, allow the consumer to reschedule a date for the
Page 18, Line 11settlement of outstanding proceeds at any time without
Page 18, Line 12incurring an additional fee imposed by the provider.
Page 18, Line 135-22-110. Prohibited acts. (1) A provider shall not:
Page 18, Line 14(a) Share with an employer a portion of any fees that were
Page 18, Line 15received from or charged to a consumer for earned-wage access
Page 18, Line 16services;
Page 18, Line 17(b) Require a consumer's credit report or a credit score
Page 18, Line 18provided or issued by a consumer reporting agency to determine
Page 18, Line 19a consumer's eligibility for earned-wage access services;
Page 18, Line 20(c) Accept payment of outstanding proceeds or fees from
Page 18, Line 21a consumer by means of a credit card or charge card;
Page 18, Line 22(d) Charge a consumer a late fee, a deferral fee, interest,
Page 18, Line 23or any other penalty or charge for failure to pay outstanding
Page 18, Line 24proceeds or fees;
Page 18, Line 25(e) Report to a consumer reporting agency, collection
Page 18, Line 26agency, or debt collector any information about the consumer
Page 18, Line 27regarding the inability of the provider to be repaid outstanding
Page 19, Line 1proceeds or fees;
Page 19, Line 2(f) Solicit, charge, or receive tips, gratuities, or other
Page 19, Line 3donations from a consumer;
Page 19, Line 4(g) Impose a fee in excess of seven dollars for delivery or
Page 19, Line 5expedited delivery of services for fiscal year 2025-26 and, for
Page 19, Line 6each fiscal year thereafter, impose a fee increase by an amount
Page 19, Line 7that is greater than the annual percentage change in the United
Page 19, Line 8States department of labor's bureau of labor statistics
Page 19, Line 9consumer price index, or a successor index, for
Page 19, Line 10Denver-Aurora-Lakewood for all items paid for by urban
Page 19, Line 11consumers;
Page 19, Line 12(h) Enter into an agreement with an employer that would
Page 19, Line 13require a consumer who is an employee of such employer to use
Page 19, Line 14earned-wage access services as a necessary condition of
Page 19, Line 15receiving payment of wages; or
Page 19, Line 16(i) (I) Compel or attempt to compel a consumer to pay
Page 19, Line 17outstanding proceeds or fees to the provider through:
Page 19, Line 18(A) A lawsuit against the consumer in a court of
Page 19, Line 19competent jurisdiction;
Page 19, Line 20(B) The use of a third party to pursue collection from the
Page 19, Line 21consumer on the provider's behalf; or
Page 19, Line 22(C) The sale of outstanding proceeds or fees to a
Page 19, Line 23third-party collector or debt buyer for collection from a
Page 19, Line 24consumer.
Page 19, Line 25(II) The limitations in this subsection (1)(i) do not preclude
Page 19, Line 26a provider from using any of the methods in subsection (1)(i)(I) of
Page 19, Line 27this section to:
Page 20, Line 1(A) Compel payment of outstanding proceeds paid to or
Page 20, Line 2fees incurred by a consumer through fraudulent or other
Page 20, Line 3unlawful means; or
Page 20, Line 4(B) Pursue an employer for breach of its contractual
Page 20, Line 5obligations to the provider.
Page 20, Line 65-22-111. Powers of administrator. (1) In addition to other
Page 20, Line 7powers granted by this article 22, the administrator may:
Page 20, Line 8(a) Receive and act on complaints, take action designed to
Page 20, Line 9obtain voluntary compliance with this article 22, or commence
Page 20, Line 10proceedings on the administrator's initiative;
Page 20, Line 11(b) Counsel persons and groups on their rights and duties
Page 20, Line 12described in this article 22;
Page 20, Line 13(c) Establish programs for the education of consumers
Page 20, Line 14with respect to earned-wage access services;
Page 20, Line 15(d) Make studies appropriate to effectuate the purposes
Page 20, Line 16and policies of this article 22 and make the results of any study,
Page 20, Line 17aggregated for all licensees and nonidentifiable by licensee,
Page 20, Line 18available to the public;
Page 20, Line 19(e) Employ administrative law judges from the office of
Page 20, Line 20administrative courts in the department of personnel to
Page 20, Line 21conduct hearings on any matter related to this article 22; and
Page 20, Line 22(f) Exchange information with another governmental
Page 20, Line 23agency or official that has regulatory authority comparable
Page 20, Line 24to that of the administrator, subject to an appropriate
Page 20, Line 25confidentiality agreement between the administrator and the
Page 20, Line 26other agency or official or as otherwise permitted by law. This
Page 20, Line 27subsection (1)(f) does not allow the exchange of information
Page 21, Line 1with providers.
Page 21, Line 2(2) A person is not liable pursuant to this article 22 for an
Page 21, Line 3act committed or omitted in good faith in conformity with a
Page 21, Line 4rule, regulation, interpretation, or written response to a person
Page 21, Line 5pursuant to a written request on behalf of the identified person
Page 21, Line 6by the administrator.
Page 21, Line 75-22-112. Administrative enforcement - cease and desist -
Page 21, Line 8penalty - rules. (1) The administrator shall enforce this article
Page 21, Line 922.
Page 21, Line 10(2) The administrator may adopt rules for the
Page 21, Line 11administration and enforcement of this article 22.
Page 21, Line 12(3) After notice and a hearing, the administrator may
Page 21, Line 13order a provider or a person acting on the provider's behalf to
Page 21, Line 14cease and desist from engaging in violations of this article 22 or
Page 21, Line 15any rule or order lawfully made pursuant to this article 22.
Page 21, Line 16The order issued by the administrator may also require the
Page 21, Line 17provider or person to pay a penalty up to one thousand dollars
Page 21, Line 18for each violation.
Page 21, Line 19(4) A respondent aggrieved by an action or order of the
Page 21, Line 20administrator may obtain judicial review of the action or order
Page 21, Line 21in the Colorado court of appeals. The administrator may obtain
Page 21, Line 22an order of the court for enforcement of the administrator's
Page 21, Line 23order in the district court under section 24-4-106. All
Page 21, Line 24proceedings authorized under this section are governed by
Page 21, Line 25sections 24-4-105 and 24-4-106.
Page 21, Line 26(5) With respect to an action brought to enjoin violations
Page 21, Line 27of this article 22, the administrator may apply to the court of
Page 22, Line 1appropriate jurisdiction for a temporary restraining order or a
Page 22, Line 2preliminary injunction against a respondent pending final
Page 22, Line 3determination of proceedings. If the court finds after a hearing
Page 22, Line 4that there is reasonable cause to believe that the respondent is
Page 22, Line 5engaging in or is likely to engage in conduct sought to be
Page 22, Line 6restrained, the court may grant any such temporary restraining
Page 22, Line 7order or preliminary injunction it deems appropriate. The court
Page 22, Line 8may also issue an order or judgment as may be necessary to
Page 22, Line 9restore a consumer who has been affected by such violation,
Page 22, Line 10agreement, or conduct to the consumer's original position or to
Page 22, Line 11compensate a consumer if there is reasonable cause to believe
Page 22, Line 12that sufficient funding to make refunds to the consumer will
Page 22, Line 13not be available at a future date. A bond or other security is
Page 22, Line 14not required of the administrator before relief under this
Page 22, Line 15subsection (5) may be granted.
Page 22, Line 165-22-113. Civil actions by administrator - penalty. (1) The
Page 22, Line 17administrator may bring a civil action against a provider or a
Page 22, Line 18person acting on the provider's behalf to recover a civil penalty
Page 22, Line 19for willfully violating this article 22, and, if the court finds
Page 22, Line 20that the defendant has engaged in a course of repeated and
Page 22, Line 21willful violations of this article 22, the court may assess a civil
Page 22, Line 22penalty of no more than ten thousand dollars per violation. A
Page 22, Line 23civil penalty pursuant to this subsection (1) shall not be imposed
Page 22, Line 24for violations of this article 22 that occur more than four
Page 22, Line 25years before the action is brought.
Page 22, Line 26(2) If the administrator prevails in an action brought
Page 22, Line 27under this section, the administrator may recover reasonable
Page 23, Line 1costs of the investigation and action and may request an order
Page 23, Line 2for reimbursement of reasonable attorney fees.
Page 23, Line 3(3) In an action brought by the administrator under this
Page 23, Line 4article 22, the administrator does not have a right to trial by
Page 23, Line 5jury, but a defendant may request a jury trial under the
Page 23, Line 6Colorado rules of civil procedure.
Page 23, Line 75-22-114. Assurance of discontinuance.If a person files a
Page 23, Line 8complaint with the administrator as described in section
Page 23, Line 95-22-111 or with a court as described in section 5-22-112 that a
Page 23, Line 10provider has engaged in conduct subject to an order by the
Page 23, Line 11administrator or by the court, the administrator or the court
Page 23, Line 12may accept an assurance in writing that the provider will not
Page 23, Line 13engage in the conduct in the future. The administrator may
Page 23, Line 14require the provider as part of the assurance to pay a penalty
Page 23, Line 15up to one thousand dollars for each violation and reimburse the
Page 23, Line 16administrator for the administrator's reasonable costs
Page 23, Line 17incurred in investigating the conduct.
Page 23, Line 18SECTION 4. Act subject to petition - effective date -
Page 23, Line 19applicability. (1) This act takes effect November 1, 2025; except that,
Page 23, Line 20if a referendum petition is filed pursuant to section 1 (3) of article V of
Page 23, Line 21the state constitution against this act or an item, section, or part of this act
Page 23, Line 22within the ninety-day period after final adjournment of the general
Page 23, Line 23assembly, then the act, item, section, or part will not take effect unless
Page 23, Line 24approved by the people at the general election to be held in November
Page 23, Line 252026 and, in such case, will take effect on the date of the official
Page 23, Line 26declaration of the vote thereon by the governor.
Page 24, Line 1(2) This act applies to earned-wage access services provided on
Page 24, Line 2or after November 1, 2025.