Senate Bill 2496

AN ACT TO CREATE NEW SECTION 75-99-1, MISSISSIPPI CODE OF 1972, TO CREATE THE MISSISSIPPI EARNED WAGE ACCESS SERVICES ACT; TO CREATE NEW SECTION 75-99-3, MISSISSIPPI CODE OF 1972, TO DEFINE TERMS; TO CREATE NEW SECTION 75-99-5, MISSISSIPPI CODE OF 1972, TO SET FORTH REQUIRED AND PROHIBITED ACTS APPLICABLE TO EARNED WAGE ACCESS SERVICES PROVIDERS; TO CREATE NEW SECTION 75-99-7, MISSISSIPPI CODE OF 1972, TO CLARIFY APPLICABILITY OF THE ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following shall be codified as Section 75-99-1, Mississippi Code of 1972:

75-99-1. Short title. This article shall be known and may be cited as the "Mississippi Earned Wage Access Services Act."

SECTION 2. The following shall be codified as Section 75-99-3, Mississippi Code of 1972:

75-99-3. Definitions. The following words and phrases used in this article shall have the following meanings unless the context clearly indicates otherwise:

(a) "Consumer" means a natural person residing in the State of Mississippi. A provider may use the mailing address provided by a consumer or the consumer's employer to determine such consumer's state of residence for purposes of this act.

(b) "Earned but unpaid income" means salary, wages, compensation or other income that a consumer or an employer has represented, and that an earned wage access services provider has reasonably determined, to have been earned or to have accrued to the benefit of the consumer in exchange for the consumer's provision of services to an employer or on behalf of an employer, including on an hourly, project-based, piecework or other basis and including where the consumer is acting as an independent contractor of the employer, but, at the time of the payment of proceeds, have not been paid to the consumer by the employer.

(c) "Earned wage access services" means the business of delivering to consumers access to earned but unpaid income. Earned wage access services may be based on employment, income or attendance data obtained directly or indirectly from an employer or may be based on a consumer's representations and a provider's reasonable determination of the consumer's earned but unpaid income.

(d) "Fee" means a fee imposed by a provider for delivery or expedited delivery of proceeds to a consumer or a subscription or membership fee imposed by a provider for a bona fide group of services that include earned wage access services. A voluntary tip, gratuity or donation shall not be deemed a fee.

(e) "Outstanding proceeds" means proceeds remitted to a consumer by a provider that have not yet been repaid to the provider.

(f) "Proceeds" means a payment of funds to a consumer by a provider that is based on earned but unpaid income.

(g) "Provider" means a person who is engaged in the business of offering and providing earned wage access services to consumers. "Provider" does not include either of the following:

(i) A service provider, such as a payroll service provider, whose role may include verifying the available earnings but who is not contractually obligated to fund proceeds delivered as part of an earned wage access service.

(ii) An employer that offers a portion of salary, wages or compensation directly to its employees or independent contractors prior to the normally scheduled pay date.

SECTION 3. The following shall be codified as Section 75-99-5, Mississippi Code of 1972:

75-99-5. Required and prohibited acts. An earned wage access services provider shall not be deemed to be engaging in lending, money transmission or debt collection in this state and/or in violation of any law governing deductions from payroll, salary, wages, compensation or other income, or the purchase, sale or assignment of or an order for unpaid income, if that provider complies with all of the requirements in paragraphs (a) through (i) of this section and refrains from engaging in any of the prohibited acts described in paragraphs (j) through (q) of this section to wit.

(a) Develops and implements policies and procedures to respond to questions raised by consumers and address complaints from consumers;

(b) Before entering into an agreement with a consumer for the provision of earned wage access services, does all of the following:

(i) Informs the consumer of the consumer's rights under the agreement; and

(ii) Fully and clearly discloses to the consumer all provider-imposed fees or a schedule of fees associated with the provision of earned wage access services;

(c) Informs the consumer of the fact of any material changes to the terms and conditions of the earned wage access services agreement before implementing those changes for that consumer;

(d) Allows the consumer to cancel use of the provider's earned wage access services at any time, without incurring a fee for that cancellation;

(e) Whenever it offers a consumer the option to receive proceeds for a fee or solicits a tip, gratuity or other donation, provides the consumer at least one (1) reasonable option to obtain the same amount of proceeds at no cost and clearly explains how the consumer may select the no-cost option;

(f) Complies with all applicable local, state and federal privacy and information security laws;

(g) Provides proceeds to a consumer via any means mutually agreed upon by the consumer and the provider;

(h) In any case in which a provider seeks repayment of outstanding proceeds, fees, voluntary tips, gratuities or other donations from a consumer's account at a depository institution, including via electronic transfer, does all of the following:

(i) Complies with applicable provisions of the federal Electronic Fund Transfer Act (15 USC § 1693 et seq.) and its implementing regulations; and

(ii) Reimburses the consumer for the full amount of any overdraft or nonsufficient funds fees imposed on that consumer by the consumer's depository institution, which are caused by the provider attempting to seek payment of any outstanding proceeds, fees, voluntary tips, gratuities or other donations on a date before, or in an incorrect amount from, the date or amount disclosed to the consumer. However, this requirement shall not apply with respect to payments of outstanding proceeds, fees, tips, gratuities, or other donations incurred by a consumer through fraudulent means;

(i) In any case in which a provider solicits or receives a tip, gratuity or donation from a consumer, does both of the following:

(i) Clearly and conspicuously discloses to the consumer immediately prior to each transaction that a tip, gratuity or donation amount may be zero and is voluntary; and

(ii) Clearly and conspicuously discloses in its agreement with the consumer that tips, gratuities or donations are voluntary and that the offering of earned wage access services, including the amount of proceeds a consumer is eligible to request and the frequency with which proceeds are provided to a consumer, is not contingent on whether the consumer pays any tip, gratuity or donation or on the size of any tip, gratuity or donation;

(j) Does not compel or attempt to compel repayment by a consumer of outstanding proceeds, fees, voluntary tips, gratuities or other donations through any of the following means:

(i) A civil suit against the consumer in a court of competent jurisdiction;

(ii) Use of unsolicited, outbound telephone calls;

(iii) Use of a third party to pursue collection of outstanding proceeds or payments on the provider's behalf; or

(iv) Sale of outstanding amounts to a third-party debt collector or debt purchaser;

(k) Does not require a consumer's credit report or credit score to determine a consumer's eligibility for earned wage access services;

(l) Does not report any information about the consumer regarding the inability of the provider to be repaid outstanding proceeds, fees, voluntary tips, gratuities or other donations to a consumer reporting agency or a debt collector;

(m) Does not accept payment from a consumer of outstanding proceeds, fees, voluntary tips, gratuities or donations via credit card or charge card;

(n) Does not charge a late fee, deferral fee, interest or any other penalty or charge for failure to repay outstanding proceeds, fees, voluntary tips, gratuities or other donations;

(o) Does not charge interest or finance charges;

(p) Does not condition the amount of proceeds a consumer is eligible to request or the frequency with which a consumer is eligible to request proceeds on whether such consumer pays fees, voluntary tips, gratuities or other donations or on the size of any fee, voluntary tip, gratuity or donation; and

(q) If a provider solicits or accepts voluntary tips, gratuities or other donations, it does not mislead or deceive consumers about the voluntary nature of the tips, gratuities or other donations or make representations that tips, gratuities, or other donations will benefit any specific individuals.

SECTION 4. The following shall be codified as Section 75-99-7, Mississippi Code of 1972:

75-99-7. The provisions of this act shall not apply to any bank, trust company, savings association, savings and loan association, savings bank or credit union which is chartered under the laws of this state or under federal law and domiciled in this state.

SECTION 5. This act shall take effect and be in force from and after July 1, 2025.