KS: Joint Advocacy Letter to Kansas Governor Kelly in Support of HB 2560

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Governor Laura Kelly

Statehouse Address

300 S.W. 10th Ave.

Topeka, KS 66612

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Re: Request for Passage of Earned Wage Access Legislation- House Bill 2560

Dear Governor Kelly,

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We the undersigned, representing the premier industry association and companies developing responsible innovations and sound public policy that improve the financial lives of consumers across the country, write to express our strong support for House Bill 2560 (HB 2560) and the Earned Wage Access (EWA) registration structure contained therein. We respectfully request your support for HB 2560.

EWA is a new and innovative industry that empowers workers by allowing them to access the pay they have earned, on their schedule – without waiting until payday. Further, EWA is an important alternative to high-cost predatory and predatory credit products, giving workers the options they need to support their families and improve their financial lives.

We believe that the bill, as passed by the Kansas Legislature, properly balances responsible innovation with a pragmatic, consumer protected regulatory framework that fits the EWA industry. This new legislation establishes clear standards for acceptable EWA services regulated under its registration regime in a manner that reflects the nuances and optionality of the EWA industry while also protecting consumers from irresponsible actors. Specifically, the bill’s provisions requiring strong fee disclosures represented in a clear and transparent manner; and the ability for users to cancel the EWA service at any time present strong consumer protections for Kansans that will ensure they can continue to use EWA services in a safe and secure manner.

Establishing the regulatory framework enumerated in HB 2560 will allow EWA services to flourish in Kansas and help workers access the pay they are entitled to instantly. AFC has publicly advocated for a clear and consistent regulatory framework for EWA that avoids duplicative or diverging requirements and accurately reflects the nuances of the financial service. This bill is the outcome of a year-long negotiation between the Office of the State Bank Commissioner of Kansas, industry, and the Kansas Legislature to ensure that a strong, consumer protected regulatory framework exists in Kansas. Passing HB 2560 would ensure that this regulatory aim is met in Kansas and directly benefit Kansans by giving EWA providers a clear and functional regulatory path to offer their services most effectively.

At every stage of the legislative process, EWA has received broad bipartisan support, with nearly all members of the Kansas Legislature voting in-favor of the bill, passing the House 119-4 and the Senate 35-4. Kansas legislators recognized the significant consumer benefits associated with EWA services and the positive impact that ensuring responsible EWA providers were able to operate in the state would have on their constituents. In fact, our data shows that over 50,000Kansans have used an EWA product, whether offered through their employers, directly through an app, or as part of a financial health subscription service. Signing the bill that now sits on your desk represents an opportunity for you to affirm both the bipartisanship that propelled this bill through the Legislature, as well as a prudent regulatory path forward to ensure responsible innovations, like EWA, continue to serve Kansans effectively.

Therefore, we respectfully request that you sign House Bill 2560 into law and create a clear and effective registration structure for EWA providers that will ensure strong protections for Kansans and help responsible EWA providers offer their services to the benefit of Kansas residents across the state.

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Sincerely,

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Phil Goldfeder

CEO, American Fintech Council

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Tara Rider

VP- Policy and Government Relations, Brigit

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Colin Jones

VP- Risk and Compliance, Cleo

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Joseph N. Garba

Head of External Affairs, Cross River

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Ryan Naples

Director- Public Policy, DailyPay

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David Durant

General Counsel, EarnIn

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Molly Jones

VP- Head of Public Policy, Payactiv

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Kevin Lefton

US Head of Legal and Regulatory Affairs, Wagestream

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Garth McAdam

General Counsel, ZayZoon