HB1113 repeals and replaces Missouri’s existing earned wage access statute with a more detailed regulatory framework for providers of earned wage access services. The bill defines key terms such as consumer, provider, earned but unpaid income, employer-integrated services, and consumer-directed services, and it requires any person engaging in the business in Missouri to register with the Division of Finance. Registration would carry a $1,000 annual fee, require disclosure of business and ownership information, and include a sworn statement that the provider is financially capable and, if a corporation, authorized to do business in the state.
The bill also sets operational rules for providers. It requires written disclosures before a consumer agreement is entered, including rights under the agreement and all fees, and it mandates notice of material changes to terms. Providers must maintain complaint procedures, comply with privacy and information security laws, and follow federal electronic funds transfer rules when seeking repayment from a consumer’s account. The bill specifically treats voluntary tips, gratuities, and donations as optional and requires clear disclosure that they are not required and do not affect access to services.
HB1113 limits what providers may do in collecting repayment. It prohibits sharing consumer fees or tips with employers, charging interest on unpaid proceeds, reporting nonpayment to credit bureaus or debt collectors, requiring a credit report or score for eligibility, accepting credit card or charge card payments for repayment, or using lawsuits, third-party collectors, or debt buyers to collect outstanding amounts. The bill also states that registered earned wage access services are not loans, credit, or money transmission, and that related fees and tips are not interest or finance charges. Banks, credit unions, and certain regulated lenders are exempt from the registration requirements.
The bill’s impact on state law is to create a comprehensive licensing, disclosure, recordkeeping, enforcement, and penalty regime for earned wage access providers in Missouri. It gives the Division of Finance authority to investigate, issue cease-and-desist orders, suspend or revoke registrations, assess civil penalties, and refer knowing and willful violations for class A misdemeanor prosecution. It also provides that, in the event of a conflict with other state statutes, this section controls, making the earned wage access framework the governing law for covered services.
No committee transcript or vote history was provided, so there is no recorded debate or formal vote sentiment to summarize. Based on the bill text alone, the measure appears generally industry-regulatory rather than prohibitive: it permits earned wage access services but imposes consumer-protection rules and state oversight. Likely points of contention include the registration fee, the prohibition on collection practices, the treatment of tips and fees, and the bill’s express classification of these services as not constituting loans or credit, which may affect how providers and consumer advocates view the measure.
HB1113 would replace Missouri’s current earned wage access provision with a new section that regulates providers through mandatory registration, disclosure requirements, recordkeeping, enforcement authority, and penalties. It would affect earned wage access companies, consumers, and the Division of Finance, while exempting banks, credit unions, and certain regulated lenders. The bill also clarifies that covered services are not loans, credit, or money transmission, and that fees and voluntary tips are not interest or finance charges, thereby shaping how these services are treated under state law and limiting the application of other statutes where conflicts arise.
No committee discussion or vote record was provided, so there is no direct evidence of legislative sentiment from hearings or floor action. From the bill text, the overall approach appears supportive of allowing earned wage access services to operate in Missouri, but only under a structured consumer-protection and regulatory framework. The tone suggests a balance between access to short-term wage advances and oversight to prevent abusive fees, misleading tip practices, and aggressive collections.
The main likely points of contention are the scope of regulation and the restrictions placed on providers. Consumer advocates may focus on the bill’s disclosures, repayment safeguards, and limits on collection practices, while industry stakeholders may object to the registration fee, compliance burdens, and the prohibition on using credit scores, credit cards, debt collectors, or lawsuits to recover unpaid amounts. Another possible dispute is the bill’s treatment of earned wage access as neither a loan nor credit, which has legal and policy implications for consumer protections and financial regulation.