CO: Testimony in Support of CO HB 1020

TO: Colorado House Business Affairs & Labor Committee
FROM: Ashley Urisman, Director, State Government Affairs, American Fintech Council (AFC)
DATE: January 30, 2025
SUBJECT: House Bill 1020

Position: Support.

Testimony:

Good afternoon.

My name is Ashley Urisman, and I am the Director of State Government Affairs for the American Fintech Council (AFC). I want to thank Chair Ricks, Vice-Chair Woodrow and members of the Business Affairs & Labor committee for allowing me to testify this afternoon in support of HB 1020.

AFC is the premier trade association representing the leading financial technology (Fintech) companies, including the largest providers of Earned Wage Access (EWA) services. For those unfamiliar, EWA is an innovative financial tool that empowers workers to access their wages in a way that best fits their lifestyle rather than keeping them tethered to arbitrary payroll cycles. Users can opt to access EWA services offered through their employers, as stand-alone products, or as part of a subscription.

Our mission at AFC is to promote a transparent, inclusive, and customer-centric financial system. We support responsible innovation in financial services and encourage sound public policy. As such, we are grateful to Representatives Camacho, Duran, and Senator Frizell for sponsoring this bill. As a distinct financial product, EWA must be governed by distinct regulations, and this bill helps shape a regulatory framework for companies to safely and responsibly offer EWA in Colorado. You have heard this afternoon that EWA is offered by a variety of companies through a variety of models; we encourage the state of Colorado to give workers the most options to choose which EWA services work best for them.

To date, more than 350,000 Coloradans have used EWA services. More than 2,000 employers in the Centennial State offer EWA as a benefit to their workers. HB 1020 ensures that your constituents can continue to reap the benefits of EWA, while also protected by policies in line with AFC standards. These include the availability of a no-cost option for all EWA users; the clear and transparent disclosure of fees; and the ability for users to cancel their service at any time. All EWA transactions regulated by this bill are non-recourse and users’ credit is not impacted if they fail to repay.

Thank you to the Colorado House of Representatives for taking up this issue. I am happy to answer any questions you may have

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