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Minutes for HB2105 - Committee on Financial Institutions and Insurance

Short Title

Enacting the Kansas earned wage access services act, establishing requirements, duties and prohibitions for persons engaged in earned wage access services and providing for the administration of such act by the office of the state bank commissioner.

Minutes Content for Thu, Feb 8, 2024

 

Chairperson Longbine opened the meeting and greeted members, conferees, and guests.  It was noted that Tamera Lawrence, Sr. Assistant Revisor, Revisor of Statutes Office, attended the meeting virtually via Webex. 

 

The Chairperson opened the hearing on HB2105.  He explained that the Committee received HB2105 late last year.  However, the parties continued working through the off-season and arrived at the changes reflected in a balloon amendment that Ms. Ma will be speaking about in conjunction with the Revisor's bill brief, to avoid confusion and for expediency, as HB2105 is a very large bill.

 

Eileen Ma, Assistant Revisor, ROS,  presented the Revisor's Memorandum brief,   (Attachment 1)   in combination with the proposed HB2105 AFAHC amendment.   (Attachment 2)   She responded to a procedural question from Senator Warren seeking to clarify the path of the bill and amendment from the House.  It was established that the bill was already in Senate Financial Institutions and Insurance Committee (FI & I), however, the interested parties from the House believed amendments to the bill would be necessary, in order to pass, and continued to work on them through the off-season.  They arrived at the balloon amendment, which Ms. Ma prepared for use in the current session, should it be necessary.  The Chairperson further clarified that today, the Committee is hearing the bill, but should the Committee decide to work the bill, then the amendment would be ready for consideration at the appropriate time.  Ms. Ma added that the House had neither seen, nor voted on the amendment, so, if passed as amended, it would have to go back to the House.

Jay Scheinman, Government Relations Manager, Activehours, Inc., dba EarnIn, Headquartered in Palo Alto, CA, attended virtually via Webex, and presented oral proponent testimony.  Mr. Scheinman related that EarnIn partners with both large and small companies to provide Earned Wage Access (EWA) services to their employees, and also operate "direct to customer."  This means that anyone with a paycheck can use their services, regardless of employer, no matter how big or small (i.e., Walgreens, Home Depot).  Any employee in the U.S. with a bank account who receives their paycheck via direct deposit can use EarnIn, including employees of small business and public employees.   (Attachment 3)   Mr. Ben LoRocco with Activehours, Inc., Palo Alto, California, dba EarnIn, was also online via Webex to help answer any questions about their services.

 

Ryan Naples, Director of Public Policy, DailyPay, Inc., Headquartered in New York City, NY, also virtually testified via Webex.  He presented oral testimony supporting HB2105.   (Attachment 4)   Mr. Naples told members that his company is the leading provider of employer-integrated on-demand pay nationwide, partnering with over 430 in-state businesses in Kansas (i.e., Target, Hilton).  Also more than 43,000 Marylanders have used DailyPay's EWA service.

Brock Roehler, General Counsel, Office of the Kansas State Bank Commissioner (OSBC), presented oral opponent testimony.  However, Mr. Roehler further stated that the OSBC's position will become neutral on HB2105, as it is his understanding that the list of changes outlined in his testimony are included as part of the amendment to the bill.   (Attachment 5)    Mr. Roehler answered questions from Senators Kloos and Gossage. 

There being no other proponent, opponent, or neutral testimony submitted at this time, Chairperson Longbine closed the hearing on HB2105.

After the hearing was closed, three pieces of late proponent written-only testimony came in via e-mail, which were distributed to members, staff, interested third parties, and were posted with the other testimony on the KLISS FI & I Committee web page:

Janay Eyo, Director of Financial Policy, Chamber of Progress, McLean, Virginia, [email protected]   (Attachment 6)

Phil Goldfeder, CEO, American Fintech Council, Albany, New York   (Attachment 7)

Molly Jones, Head of Public Policy, Payactiv, headquarters in San Jose, California, www.payactive.com/help   (Attachment 8)