CO HB1046

Requires earned-wage access service providers to obtain a license from the administrator beginning January 1, 2027, with existing providers allowed to continue operating while their applications are pending

Caps service fees at $5 for advances of $75 or less and $7.50 for advances over $75, with annual inflation adjustments permitted starting July 2027

Prohibits providers from charging late fees, interest, or penalties for nonpayment; using credit scores to determine eligibility; reporting consumers to collection agencies; or compelling repayment through lawsuits or debt collectors

Mandates consumer protections including at least one no-cost option for receiving proceeds, full disclosure of fees, free cancellation at any time, and reimbursement of any overdraft fees caused by provider errors

Authorizes civil penalties of up to $5,000 per willful violation (or $10,000 for repeated willful violations), with licenses subject to suspension, revocation, or denial for noncompliance