NM: Testimony in Support of NW HB 59

TO: New Mexico House Commerce & Economic Development Committee
FROM: Ashley Urisman, Director, State Government Affairs, American Fintech Council (AFC)
DATE: February 3, 2025
SUBJECT: House Bill 59

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 Gallegos and members of the House Commerce & Economic Development Committee for allowing me to testify this afternoon in support of HB 59.

AFC is the premier trade association representing the leading financial technology (Fintech) companies, including the largest providers of Earned Wage Access (EWA) services. 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.

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 through their employers, as stand-alone products, or as part of a subscription. EWA is not a loan and should not be regulated as such. As a distinct financial product, EWA must be governed by distinct regulations. This bill helps shape a regulatory framework for companies to safely and responsibly offer EWA in New Mexico. As such, we are grateful to Representatives Lujan and Cadena for sponsoring this bill.

To date, more than 100,000 New Mexicans have used EWA, and more than 800 employers in the Land of Enchantment offer EWA as a benefit. HB 59 ensures that your constituents can continue to reap the benefits of EWA, while also protected by policies in line with AFC standards. These protections include:

• the availability of a no-cost option for all users;

• the clear disclosure of fees associated with each transaction;

• the ability for users to cancel their service at any time;

• and a first in the nation fee cap on EWA transactions All EWA transactions regulated by this bill are non-recourse, meaning users do not have to repay if they are unable, and users’ credit is not impacted if they fail to repay. Thank you to the New Mexico House of Representatives for taking up this issue. I am happy to answer any questions you may have.

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