HB0059

HOUSE BILL 59

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Tara L. Lujan

AN ACT

RELATING TO WAGE ACCESS; ENACTING THE EARNED WAGE ACCESS SERVICES ACT; PROVIDING POWERS AND DUTIES OF THE FINANCIAL INSTITUTIONS DIVISION OF THE REGULATION AND LICENSING DEPARTMENT; PROVIDING FOR LICENSURE OF EARNED WAGE ACCESS SERVICES PROVIDERS; PROVIDING FOR DENIAL, SUSPENSION OR REVOCATION OF LICENSES; PROVIDING FOR HEARINGS AND APPEALS; REQUIRING EXAMINATIONS AND INVESTIGATIONS; SETTING CONDITIONS AND RESTRICTIONS; PROVIDING EXEMPTIONS FROM THE ACT; GRANTING EXCLUSIVE JURISDICTION TO THE STATE; REQUIRING ANNUAL REPORTS; PRESCRIBING A PENALTY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. A new Section 58-34-1 NMSA 1978 is enacted to read:

"58-34-1. [NEW MATERIAL] SHORT TITLE.--Chapter 58, Article 34 NMSA 1978 may be cited as the "Earned Wage Access Services Act"."

SECTION 2. A new Section 58-34-2 NMSA 1978 is enacted to read:

"58-34-2. [NEW MATERIAL] DEFINITIONS.--As used in the Earned Wage Access Services Act:

A. "applicant" means a person who applies for a license;

B. "consumer" means a person who resides in New Mexico;

C. "consumer-directed wage access services" means delivering to a consumer access to earned but unpaid income that is based on the consumer's representations and the provider's reasonable determination of the worker's earned but unpaid income;

D. "division" means the financial institutions division of the regulation and licensing department;

E. "director" means the director of the division;

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

G. "earned wage access services" means providing consumer-directed wage access services or employer-integrated wage access services or both;

H. "employer" means a person who employs a consumer or is contractually obligated to pay a consumer earned but unpaid income in exchange for the consumer's provision of services to the employer or on behalf of the employer, including on an hourly, project-based, piecework or other basis and including circumstances in which the consumer is acting as an independent contractor with respect to the employer;

I. "employer" does not mean a customer of an employer or any other person whose obligation to make a payment of salary, wages, compensation or other income to a consumer is not based on the provision of services by that consumer for or on behalf of the person;

J. "employer-integrated wage access services" means delivering access to an advance of earned but unpaid income to a consumer that is based on employment, income or attendance data obtained directly or indirectly from an employer or an employer's payroll service provider;

K. "fee" means:

(1) a fee imposed by a provider for delivery or expedited delivery of proceeds to a consumer; or

(2) a subscription or membership fee imposed by a provider for a bona fide group of services that include earned wage access services;

L. "fee" does not include a voluntary tip, gratuity or other donation;

M. "license" means a permit issued under the authority of the Earned Wage Access Services Act to engage in business as an earned wage access services provider and collect charges therefor strictly in accordance with the provisions of that act. It shall constitute and shall be construed as a grant of a revocable privilege only to be held and enjoyed subject to all the conditions, restrictions and limitations contained in that act and lawful rules promulgated by the director and not otherwise;

N. "licensee" means a person to whom one or more licenses have been issued pursuant to the Earned Wage Access Services Act upon the person's written application electing to become a licensee and consenting to exercise the privilege of a licensee solely in conformity with that act and the lawful rules promulgated by the director under that act and whose name appears on the face of the license;

O. "outstanding proceeds" means proceeds remitted to a consumer by a provider that have not yet been repaid to the provider;

P. "person" means an individual, copartner, association, trust, corporation and any other legal entity;

Q. "proceeds" means a payment to a consumer by a provider that is based on earned but unpaid income; and

R. "provider" or "earned wage access services provider" means a person that is in the business of providing earned wage access services to consumers; provided that "provider" or "earned wage access services provider" does not include:

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

(2) an employer that offers a portion of salary, wages or compensation directly to its employees or independent contractors before the normally scheduled pay date."

SECTION 3. A new Section 58-34-3 NMSA 1978 is enacted to read:

"58-34-3. [NEW MATERIAL] EARNED WAGE ACCESS SERVICES PROVIDER--LICENSE REQUIRED--EXCEPTIONS.--

A. A person shall not engage in business as a provider in this state without first having obtained a license from the division.

B. A banking corporation, savings and loan association or credit union operating under the laws of the United States or of a state is exempt from the licensing requirements of the Earned Wage Access Services Act.

C. Earned wage access services offered and provided by a licensee under the provisions of the Earned Wage Access Services Act shall not be considered:

(1) in violation of or noncompliance with laws governing deductions from wages or the purchase, sale or assignment of, or an order for, earned but unpaid income;

(2) a loan or other form of credit or debt, nor shall the provider be considered a creditor, debt collector or lender with respect thereto; or

(3) money transmission, nor shall the provider be considered a money transmitter with respect thereto."

SECTION 4. A new Section 58-34-4 NMSA 1978 is enacted to read:

"58-34-4. [NEW MATERIAL] PROVIDER LICENSE--APPLICATION FOR ORIGINAL LICENSE--DIVISION POWERS AND DUTIES.--

A. Application for an original license shall be in a form and manner prescribed by the division and shall include:

(1) the address of the applicant's principal place of business within or without New Mexico and whether the business will be conducted online or in-person;

(2) if applicable, the physical location and mailing address where the business is to be conducted in New Mexico;

(3) identification of all parties in interest and the names and addresses of all partners, officers and directors as this will provide the basis for an investigation and findings required by the provisions of this section;

(4) the name of a New Mexico resident who serves as the provider's agent for service of process; provided that if the provider's agent changes, the provider shall notify the division within five working days of the change; and

(5) such other relevant information as the division requires.

B. An application fee for original licensure shall be submitted with the application.

C. Upon the filing of an application, the division shall investigate the facts concerning the application and the requirements of the Earned Wage Access Services Act. The division may request additional information that is relevant or helpful in conducting the application investigation. Upon service of a written notice of a request for additional information, the applicant has twenty days to provide the information unless the division grants a request for a time extension. The applicant shall furnish in writing, under oath, to the director all additional information required by the director that may be relevant or, in the opinion of the director, helpful in conducting the investigation.

D. Failure to comply with the division's requirement for supplemental information or the willful furnishing of false information is sufficient grounds for denial of a license.

E. The division shall grant or deny each application for an original license within sixty days from the filing of the application with the required information and fees, unless the period is extended by written agreement between the applicant and the director.

F. After investigation, the division shall grant a license if it finds that:

(1) the financial responsibility, character and general fitness of the applicant for an original license, including the individual members and beneficiaries of the license if the applicant is a copartnership, association or trust and including the individual officers and directors of the applicant if the applicant is a corporation, are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honestly, fairly and efficiently within the declared purposes and spirit of the Earned Wage Access Services Act;

(2) allowing the applicant to engage in business promotes the convenience and advantage of the community in which the business of the applicant is to be conducted; and

(3) the applicant has available for operation of the business cash or its equivalent in convertible securities or receivables of thirty thousand dollars ($30,000) or any combination of securities and receivables.

G. If the division does not make the findings enumerated in Subsection F of this section, the division shall deny the application, notify the applicant of the denial and retain the application fee. Within thirty days after the denial of licensure, the division shall prepare written investigatory findings as to the reason for denying the license and deliver a copy to the applicant. If licensure is denied, the applicant may request a hearing as provided in the Uniform Licensing Act.

H. The denial of a license after a hearing is a final agency action and may be appealed as provided by Section 39-3-1.1 NMSA 1978."

SECTION 5. A new Section 58-34-5 NMSA 1978 is enacted to read:

"58-34-5. [NEW MATERIAL] LICENSE INFORMATION.--

A. Each license issued pursuant to the Earned Wage Access Services Act is an annual license that expires on July 1 following the issuance of the license unless renewed upon application or suspended or revoked or unless the provider surrenders the license when closing a location or provider's business.

B. Each license shall state:

(1) fully the name of the provider if an individual; the name, date and place of incorporation if a corporation or similar organization; and the names of all copartners and all members and beneficiaries if a copartnership, trust, association or similar organization; and any trade name approved by the division under which the provider is conducting business;

(2) whether the provider's business is conducted online, in-person or a combination of online and in-person; and

(3) the address of the provider's principal place of business within or without New Mexico and each physical location in New Mexico.

C. The license shall be conspicuously posted in the provider's principal place of business and all other locations of the business in New Mexico.

D. If a provider changes its principal place of business or business location in New Mexico, it shall give written notice of the change to the division within fifteen days of the change.

E. Except as a stockholder in a corporation licensed as a provider, a person whose name does not specifically appear on the face of the license shall not have or hold any interest, direct or indirect, in any license or provider and shall not be deemed a licensee or a provider.

F. Every provider shall maintain at all times cash or its equivalent, convertible securities or receivables, or any combination of these, of at least thirty thousand dollars ($30,000)."

SECTION 6. A new Section 58-34-6 NMSA 1978 is enacted to read:

"58-34-6. [NEW MATERIAL] LICENSE RENEWAL--DENIAL--HEARING.--

A. A written application for license renewal shall be filed with the division on or before April 1 of each year for the annual renewal date of July 1. The application shall be in a form and manner required by the division.

B. The division shall investigate the facts and review the files of examinations of the provider made by the division and complaints filed by consumers or other persons, if any. The division shall issue a renewal license to the provider if the division finds that:

(1) no valid complaints of violations or abuses of the Earned Wage Access Services Act or of rules promulgated in accordance with that act have been filed by consumers or other persons;

(2) examinations, if any, of the affairs of the provider indicate that the business has been conducted and operated lawfully and efficiently within the declared purposes and spirit of that act; and

(3) the financial responsibility, experience and general fitness and character of the provider remain such as to command the confidence of the public and to warrant the belief that the business will continue to be operated lawfully and efficiently within the purposes and spirit of that act.

C. If the division finds that the provider does not meet the qualifications for a renewal license enumerated in Subsection A of this section and other provisions of the Earned Wage Access Services Act, the director may grant a temporary extension of the license not exceeding sixty days pending a hearing. The division shall set a date for hearing on the license renewal and shall notify the provider. The notice shall specify the particular complaints, violations or abuses or other reasons for the division's contemplated refusal to renew the license.

D. At the hearing, the attorney or other agent of the division shall produce evidence to establish the truth of the charges in complaints of violations, abuses or other grounds specified in the notice, and the provider shall be accorded the right to produce evidence or other matters of defense. If, after the hearing, the director finds that the complaints of violations, abuses or other grounds specified in the notice are not well-founded, the division shall issue the renewal license. If the director finds that the complaints of violations, abuses or other grounds are well-founded, the director shall deny the renewal application, notify the provider of the denial and return the renewal fee tendered with the application. Within thirty days after the denial of renewal, the division shall prepare written findings and shall deliver a copy of the findings to the provider. The denial of renewal is a final agency action and may be appealed as provided by Section 39-3-1.1 NMSA 1978. The court in its discretion and upon proper showing may order a temporary extension of the license pending disposition of the appeal."

SECTION 7. A new Section 58-34-7 NMSA 1978 is enacted to read:

"58-34-7. [NEW MATERIAL] LICENSE SUSPENSION OR REVOCATION.--

A. The division may suspend or revoke a license for cause. Prior to suspension or revocation, the division shall give written notice by registered mail that states in general the grounds for suspension or revocation and the time and place of a public hearing, which shall be held not less than fifteen days after the returned receipt of mail delivery. The hearing shall be conducted in the same manner as hearings for license denial.

B. After a hearing, the division shall suspend or revoke a license if the director finds that:

(1) the provider has violated a provision of the Earned Wage Access Services Act or a rule promulgated in accordance with that act, either knowingly or without the exercise of due care to prevent a violation; or

(2) facts or conditions existed at the time of the proposed suspension or revocation that, if they had existed at the time of the original application or renewal of the license, clearly would have justified the director in refusing originally to issue the license or later to renew the license.

C. The division may suspend a license during a revocation case if the director finds that, based on preliminary evidence, suspension of the license is necessary to protect the interests of consumers and the public. Upon notice of the division's contemplated action to suspend the license, the provider may request a hearing within three days after notice has been received by registered mail. If the director finds that probable cause for revocation of a license exists and that enforcement of the Earned Wage Access Services Act requires immediate suspension of the license pending investigation, the director may, upon three days' notice by registered mail and a hearing, suspend the license. Suspension of a license pursuant to this subsection shall not exceed thirty days.

D. Whenever the director suspends or revokes a license issued pursuant to the Earned Wage Access Services Act, the director shall enter an order to that effect and immediately notify the licensee in writing by registered mail of the suspension or revocation, which notice shall state the grounds for the action.

E. A provider shall surrender a license by delivering it to the director with written notice of its surrender, but such surrender shall not affect any civil or criminal liability for acts committed prior to surrender.

F. Suspension or revocation of a license shall not impair or affect the obligation of a preexisting lawful contract between the provider and an obligor.

G. The division may reinstate a suspended license or issue a new license to the provider whose license has been revoked if facts or conditions that existed at the time of suspension or revocation have been corrected.

H. False or misleading information willfully and intentionally furnished to the division prior to the issuance of a renewal license is grounds for denial of renewal or suspension or revocation of a license."

SECTION 8. A new Section 58-34-8 NMSA 1978 is enacted to read:

"58-34-8. [NEW MATERIAL] SERVICE OF NOTICE.--When in the Earned Wage Access Services Act provision is made for service of notice by registered mail, such service is deemed complete upon receipt of the notice by the intended recipient. For the purposes of this section, mailing of notice shall be addressed to the person designated as the agent for service of process or the manager or person in charge of the licensed office, if applicable."

SECTION 9. A new Section 58-34-9 NMSA 1978 is enacted to read:

"58-34-9. [NEW MATERIAL] FEES.--The following fees shall be collected and deposited into the division's suspense account as provided in Section 9-16-14 NMSA 1978:

A. application fee, not to exceed one thousand dollars ($1,000);

B. original and annual renewal license fee, not to exceed five hundred dollars ($500);

C. late renewal fee, ten dollars ($10.00) per day for each day the provider fails to file the license renewal application; and

D. annual examination fee, not to exceed two hundred dollars ($200)."

SECTION 10. A new Section 58-34-10 NMSA 1978 is enacted to read:

"58-34-10. [NEW MATERIAL] INVESTIGATIONS--EXAMINATION OF BOOKS, RECORDS AND OTHER INFORMATION--ENTRY TO PREMISES.--

A. To discover violations of the Earned Wage Access Services Act or to secure information lawfully required under that act, the division may investigate the provider's business and may examine the books, papers, records, accounts, written instruments and documents used in the business and including income tax returns or other reports filed with the taxation and revenue department of:

(1) a provider;

(2) a person participating in the provider's business as principal, agent, broker or otherwise; and

(3) a person whom the division has reasonable cause to believe is violating a provision of the Earned Wage Access Services Act, whether the person claims to be within the authority or beyond the scope of that act.

B. To facilitate examinations and investigations by the division and fully disclose the operations and methods of operation of each provider's conduct in New Mexico, the provider shall keep on file as part of the records of the provider all office manuals, communications or directives containing statements of earned wage access services policies to managers and employees.

C. The division shall be given free access to the transactions, books, papers, records, accounts, written instruments and documents of the provider insofar as they pertain to the business licensed pursuant to the Earned Wage Access Services Act and has authority to require the attendance of any person and to examine the person under oath relative to earned wage access services or to the subject matter of any examination, investigation or hearing as provided in that act. Notices to appear before the director for examination under oath may be served by registered mail. If the party notified to appear is the provider, any person named on the face of the license being investigated or an agent, employee or manager of the provider or person and the party fails to appear for examination or refuses to answer questions submitted, the director may, forthwith and without further notice to the provider, suspend the license involved pending compliance with the notice. Upon failure of another person to appear or to answer questions, the director may apply to the district court to compel the attendance and testimony of the person and the production of books, papers, records, accounts, written instruments and documents relating to the business of the licensee. The district court may punish the person for contempt of court in a case of refusal to obey an order of the district court issued to compel the attendance of the person or the production of books, papers, records, accounts, written instruments and documents.

D. Within a reasonable time after the completion of an examination of a provider, the division shall mail to the provider a copy of the report of the examination, together with any comments, exceptions, objections or criticisms concerning the conduct of the provider.

E. For the purposes of this section, a person who advertises, solicits or makes any representation as being willing to engage in business as a provider, except persons or financial institutions expressly excluded from the definition of a provider pursuant to Section 58-34-2 NMSA 1978 or expressly exempted pursuant to Section 58-34-3 NMSA 1978, is presumed to be engaged in the business of a provider and shall be subject to investigation pursuant to this section.

F. The division shall prescribe rules of procedure for all hearings, examinations or investigations provided for in the Earned Wage Access Services Act. The division is not bound by the usual common law or statutory rules of evidence or by any technical or formal rules of procedure or pleading and specification of charges other than as specifically provided in the Earned Wage Access Services Act but may conduct hearings, examinations and investigations in the manner best calculated to ascertain the substantial rights of interested parties.

G. The division has the power to administer oaths, certify official acts and records of the division, issue subpoenas for witnesses in the name of and under the seal of the division and compel the production of papers, books, accounts, records, written instruments and documents. The division shall issue subpoenas at the instance of a party to a hearing before the division upon payment of a fee of two dollars fifty cents ($2.50) for each subpoena so issued.

H. Depositions may be taken with or without a commission, and written interrogatories may be submitted in the same manner and on the same grounds provided by law for the taking of depositions or submission of written interrogatories in civil actions pending in the district courts.

I. Each witness who appears before the division by the director's order shall receive the fees and mileage provided for witnesses in civil actions in the district court. Fees and mileage shall be paid by the state, but no witness subpoenaed at the instance of parties other than the director is entitled to compensation from the state for attendance or mileage unless the director certifies that the witness's testimony is material.

J. Whenever the division has reasonable cause to believe that a person is violating a provision of the Earned Wage Access Services Act, the director may, in addition to all other actions provided for in that act and without prejudice, enter an order requiring the person to desist or to refrain from the violation. An action may be brought on the relation of the attorney general and the division to enjoin the person from engaging in or continuing the violation or from doing any act in furtherance of the violation. In such action, an order or judgment may be entered awarding a preliminary or final injunction as may be deemed proper. In addition to all other means provided by law for the enforcement of a temporary restraining order, temporary injunction or final injunction, the court in which such action is brought shall have power and jurisdiction to impound and to appoint a receiver for the property and business of the defendants, including books, papers, accounts, records, written instruments and documents pertaining to the property and business or so much as the court deems reasonably necessary to prevent further violations of that act through or by means of the use of the property and business. The receiver, when appointed and qualified, shall have powers and duties as to custody, collection, administration, winding up and liquidation of the property and business as are from time to time conferred upon the receiver by the court."

SECTION 11. A new Section 58-34-11 NMSA 1978 is enacted to read:

"58-34-11. [NEW MATERIAL] RECORDS RETENTION.--

A. Each provider shall keep and use in the business such books, accounts and records in accordance with sound accounting practices that enable the division to determine whether the provider is complying with the provisions of the Earned Wage Access Services Act and with the rules promulgated in accordance with that act and orders of the director. Each provider shall preserve the books, accounts and records for at least two years after making the final entry on an earned wage access service transaction.

B. At the time a license is in effect, the division may, upon written notice, require a provider to furnish within twenty days in writing, and under oath if so specified by any written notice issued and served by the director upon the provider, additional information as to ownership; operations; books, papers, accounts, records, written instruments and documents; and affiliation or relationship with any other person as may be helpful in the discharge of the division's duties.

C. False or misleading information willfully furnished to the director by a provider in an annual report or pursuant to a notice or requirement of the director is sufficient grounds for suspension and revocation of the provider's license."

SECTION 12. A new Section 58-34-12 NMSA 1978 is enacted to read:

"58-34-12. [NEW MATERIAL] PROVIDER DUTIES--TIPS, GRATUITIES OR OTHER DONATIONS.--

A. A provider shall do all of the following:

(1) develop and implement policies and procedures to respond to questions raised by consumers and address complaints from consumers in an expedient manner;

(2) when offering a consumer the option to receive proceeds for a fee, offer to the consumer at least one reasonable option to obtain proceeds at no cost to the consumer and clearly explain how to elect that no-cost option;

(3) before entering into an agreement with a consumer for the provision of earned wage access services, do all of the following:

(a) inform the consumer of the consumer's rights under the agreement; and

(b) fully and clearly disclose all fees associated with the earned wage access services;

(4) inform the consumer of any material changes to the terms and conditions of the earned wage access services before implementing those changes for that consumer;

(5) allow the consumer to cancel use of the provider's earned wage access services at any time, without incurring a cancellation fee imposed by the provider;

(6) comply with all applicable federal, state and local privacy and information security laws or ordinances;

(7) if a provider solicits, charges or receives a tip, gratuity or other donation from a consumer, the provider shall do all of the following:

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

(b) clearly and conspicuously disclose in its service contract with the consumer and elsewhere 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 the tip, gratuity or donation;

(8) provide proceeds to a consumer by the means mutually agreed upon by the consumer and the provider; and

(9) if the provider will seek repayment of outstanding proceeds or payment of fees or other amounts owed, including voluntary tips, gratuities or donations from a consumer's account at a depository institution, including by means of electronic fund transfer, the provider shall do all of the following:

(a) comply with applicable provisions of the federal Electronic Fund Transfer Act and regulations promulgated pursuant to that act; and

(b) reimburse the consumer for the full amount of an overdraft or nonsufficient funds fees imposed on a consumer by the consumer's depository institution that were caused by the provider attempting to seek payment of outstanding proceeds, fees or other payments, including voluntary tips, gratuities or other donations, on a date before, or in an incorrect amount from, the date or amount disclosed to the consumer; provided, however, the provider is not subject to the requirements of this paragraph with respect to payments of outstanding proceeds or fees incurred by a consumer through fraudulent or other unlawful means.

B. A provider shall not do any of the following:

(1) share with an employer a portion of any fees, voluntary tips, gratuities or other donations that were received from or charged to a consumer for earned wage access services;

(2) require a consumer's credit report or a credit score provided or issued by a consumer reporting agency to determine a consumer's eligibility for earned wage access services;

(3) accept payment of outstanding proceeds, fees, voluntary tips, gratuities or other donations from a consumer by means of a credit card or charge card;

(4) charge a consumer a late fee, deferral fee, interest or any other penalty or charge for failure to pay outstanding proceeds, fees, voluntary tips, gratuities or other donations;

(5) report to a consumer reporting agency or debt collector any information about the consumer regarding the inability of the provider to be repaid outstanding proceeds, fees, voluntary tips, gratuities or other donations;

(6) compel or attempt to compel payment by a consumer of outstanding proceeds, fees, voluntary tips, gratuities or other donations to the provider through any of the following means:

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

(b) use of a third party to pursue collection from the consumer on the provider's behalf; and

(c) sale of outstanding proceeds, fees, voluntary tips, gratuities or other donations to a third-party collector or debt buyer for collection from a consumer;

(7) if the provider solicits, charges or receives tips, gratuities or other donations from a consumer, mislead or deceive a consumer about the voluntary nature of the tips, gratuities or other donations or represent that they will benefit any specific persons or group of persons; and

(8) charge and receive a fee in excess of seven dollars fifty cents ($7.50) per transaction in connection with a fee described in Subsection K of Section 58-34-2 NMSA 1978.

C. The limitations set forth in Paragraph (6) of Subsection B of this section do not preclude the use by a provider of any of the methods specified in that paragraph to compel payment of outstanding proceeds or fees incurred by a consumer through fraudulent or other unlawful means, nor do they preclude a provider from pursuing an employer for breach of its contractual obligations to the provider.

D. A provider may use the mailing address or state of residence provided to the provider by a person to determine the person's state of residence for purposes of the Earned Wage Access Services Act."

SECTION 13. A new Section 58-34-13 NMSA 1978 is enacted to read:

"58-34-13. [NEW MATERIAL] ANNUAL REPORTS.--

A. Providers shall file with the division each year reports containing at least the following information for the preceding calendar year ending March 31 in an aggregated, nonidentifying consumer manner as specified below:

(1) gross revenue attributable to its earned wage access services;

(2) the total number of transactions in which the provider provided proceeds to consumers;

(3) the total number of unique consumers to whom the provider provided proceeds;

(4) the total dollar amount of proceeds the provider provided to consumers;

(5) the total dollar amount of fees, voluntary tips, gratuities or other donations the provider received from consumers; and

(6) any other information the division reasonably requires.

B. The reports shall be submitted to the division on or before March 31 each year.

C. The reports shall be accompanied by a sworn statement by the provider under penalty of perjury that the report is complete and accurate.

D. A provider that fails to timely submit complete and accurate reports on or before March 31 may:

(1) be fined an amount not to exceed one hundred dollars ($100) per day for each day after March 31 that a complete and accurate report is not filed; and

(2) have a license suspended pursuant to Section 58-34-7 NMSA 1978."

SECTION 14. A new Section 58-34-14 NMSA 1978 is enacted to read:

"58-34-14. [NEW MATERIAL] LIST OF PROVIDERS--COMPLAINTS--DIVISION ANNUAL REPORTS--PUBLICATION.--

A. The division shall:

(1) maintain a list of providers, which list shall be available to interested persons and the public; and

(2) establish a complaint process whereby an aggrieved consumer or other person may file a complaint against a provider.

B. The division shall compile from reports filed by providers an annual report by July 1 of each year containing data regarding earned wage access services conducted by providers, which data shall be aggregated for all providers and nonidentifiable by provider. Annual reports issued by the division shall be transmitted to the governor and the legislature and shall be published on the division's website. Written copies of the annual reports shall be made available upon request. Consistent with state law, the report shall include, at a minimum, nonidentifying aggregated consumer data from the preceding calendar year, including each of the specific categories of information set forth in Subsection A of Section 58-34-12 NMSA 1978."

SECTION 15. A new Section 58-34-15 NMSA 1978 is enacted to read:

"58-34-15. [NEW MATERIAL] EXCLUSIVE JURISDICTION OF STATE.--The state has exclusive jurisdiction and authority regarding the Earned Wage Access Services Act and providers. Political subdivisions of the state are preempted from any regulation of earned wage access services providers by ordinance, resolution or otherwise."

SECTION 16. A new Section 58-34-16 NMSA 1978 is enacted to read:

"58-34-16. [NEW MATERIAL] RULES AND ORDERS.--

A. The division has authority to make reasonable rules or orders for the administration and enforcement of the Earned Wage Access Services Act.

B. On application of a person and payment of the cost, the division shall furnish, under the division's seal and signed by the director or the director's authorized representative, a certified copy of a license, rule or order. In a court or proceeding, the copy shall be prima facie evidence of the fact of the issuance of a license, rule or order."

SECTION 17. A new Section 58-34-17 NMSA 1978 is enacted to read:

"58-34-17. [NEW MATERIAL] ADVERTISING--FALSE CLAIMS--REFERRAL TO STATE SUPERVISION.--A provider or other person subject to the Earned Wage Access Services Act shall not advertise, display, distribute or broadcast or cause or permit to be advertised, displayed, distributed or broadcast in any manner whatsoever a false, misleading or deceptive statement or representation with regard to its earned wage access services. The division may allow or require providers to refer in their advertising to the fact that their business is under state supervision, subject to conditions imposed by the division to prevent erroneous impressions as to the scope or degree of protection provided by the Earned Wage Access Services Act."

SECTION 18. A new Section 58-34-18 NMSA 1978 is enacted to read:

"58-34-18. [NEW MATERIAL] BUSINESS UNDER APPROVED NAME.--A provider shall not conduct earned wage access services as provided by the Earned Wage Access Services Act under any name other than the name approved by the division and stated on the license."

SECTION 19. A new Section 58-34-19 NMSA 1978 is enacted to read:

"58-34-19. [NEW MATERIAL] FINAL ACTIONS APPEALABLE TO DISTRICT COURT.--A provider or other person aggrieved by a final action of the division pursuant to the Earned Wage Access Services Act may file an appeal in the district court as provided by Section 39-3-1.1 NMSA 1978."

SECTION 20. A new Section 58-34-20 NMSA 1978 is enacted to read:

"58-34-20. [NEW MATERIAL] CONTRACTS NOT AFFECTED BY ACT AMENDMENT OR REPEAL.--If the Earned Wage Access Services Act or any part of that act is amended or repealed so as to effect a cancellation or alteration of a license or right of a provider, such amendment or repeal shall not impair or affect the obligation of any preexisting lawful contract between a provider and a consumer."

SECTION 21. A new Section 58-34-21 NMSA 1978 is enacted to read:

"58-34-21. [NEW MATERIAL] DIVISION RECORDS.--The division shall keep a detailed record of all fees, expenses and costs collected by the division and a detailed record of all expenses and disbursements of the division in the administration of the Earned Wage Access Services Act and rules promulgated in accordance with that act."

SECTION 22. A new Section 58-34-22 NMSA 1978 is enacted to read:

"58-34-22. [NEW MATERIAL] VIOLATIONS OF ACT--PENALTY.--

A provider and the several members, beneficiaries, officers, directors, agents and employees of a provider who violate or participate in the violation of any provision of the Earned Wage Access Services Act are guilty of a petty misdemeanor violation and upon conviction shall be punished by a fine of not less than five hundred dollars ($500) or more than one thousand dollars ($1,000)."

SECTION 23. APPLICABILITY.--The provisions of this act apply to earned wage access service providers issued licenses on or after October 15, 2025.

- 32 -