Washington SB 5328: Concerning clubhouses for persons with mental illness.

Bill Text

AN ACT Relating to the licensing and regulation of businesses 1
providing earned wage access services; amending RCW 31.04.015 and 2
31.04.025; adding a new chapter to Title 31 RCW; and prescribing 3
penalties.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. This act may be known and cited as the 6
Washington state employer-integrated wage access services act.7
NEW SECTION. Sec. 2. The definitions in this section apply 8
throughout this chapter unless the context clearly requires 9
otherwise.10
(1) "Consumer" means any individual who is a resident of or is 11
physically located in this state.12
(2) "Consumer-directed wage access services" means any sum of 13
money advanced directly to a consumer of earned but unpaid income 14
that is based on the consumer's representations and the provider's 15
reasonable determination of the consumer's earned but unpaid income.16
(3) "Department" means the department of financial institutions 17
as established under chapter 43.320 RCW.18
(4) "Director" means the director of the department of financial 19
institutions.20
S-1724.1
SUBSTITUTE SENATE BILL 5328
State of Washington 69th Legislature 2025 Regular Session
By Senate Business, Financial Services & Trade (originally sponsored
by Senators Lovick, Dozier, and Nobles)
READ FIRST TIME 02/20/25.
p. 1 SSB 5328

(5) "Earned but unpaid income" means salary, wages, compensation, 1
or other income that an employer has represented, and that a provider 2
has reasonably determined, has been earned or has accrued to the 3
benefit of the consumer in exchange for the consumer's provision of 4
services to the employer or on behalf of the employer, including on 5
an hourly, project-based, piecework, or other basis and including 6
where the consumer is acting as an independent contractor of the 7
employer, but has not, at the time of the payment of proceeds, been 8
paid to the consumer by the employer.9
(6) "Earned wage access services" means a financial service that 10
provides earned but unpaid income to a consumer.11
(7) "Employer" means:12
(a) A person who employs a consumer; or13
(b) Any other person who is contractually obligated to pay a 14
consumer earned but unpaid income in exchange for a consumer's 15
provision of services to the employer or on behalf of the employer, 16
including on an hourly, project-based, piecework, or other basis and 17
including where the consumer is acting as an independent contractor 18
with respect to the employer. "Employer" does not mean a customer of 19
an employer or any other person whose obligation to make a payment of 20
salary, wages, compensation, or other income to a consumer is not 21
based on the provision of services by that consumer for or on behalf 22
of such person.23
(8) "Employer-integrated wage access services" means any sum of 24
money advanced to a consumer based on earned but unpaid income that 25
is determined from employment, income, or attendance data obtained 26
from an employer of the consumer.27
(9) "License" means a license issued under the authority of this 28
chapter.29
(10) "Licensee" means any person, whether located within or 30
outside of this state, who is required to have a license under this 31
chapter.32
(11) "Nationwide mortgage licensing system and registry" means a 33
licensing system developed and maintained by the conference of state 34
bank supervisors for licensing and registration.35
(12) "Officer" means an official appointed by an employer-36
integrated wage access services company for the purpose of making 37
business decisions or corporate decisions for the employer-integrated 38
wage access services company.39
p. 2 SSB 5328

(13) "Outstanding proceeds" means a payment of proceeds to a 1
consumer by a provider that has not yet been repaid to that provider.2
(14) "Person" means an individual, partnership, association, 3
limited liability company, limited liability partnership, trust, 4
corporation, and any other legal entity.5
(15) "Principal" means any person who controls, directly or 6
indirectly through one or more intermediaries, alone or in concert 7
with others, a 10 percent or greater interest in a partnership, 8
company, association, corporation, or a limited liability company, 9
and is the owner of a sole proprietorship.10
(16) "Proceeds" means a payment to a consumer by a provider that 11
is based on earned but unpaid income.12
(17)(a) "Provider" means a person who is in the business of 13
providing or offering to provide employer-integrated wage access 14
services to consumers or holds himself or herself out as being able 15
to provide or offer to provide employer-integrated wage access 16
services.17
(b) "Provider" does not include any of the following:18
(i) A service provider, such as a payroll service provider, whose 19
role may include verifying the available earnings, but who is not 20
contractually obligated to fund proceeds delivered as part of an 21
earned wage access service; or22
(ii) An employer