Committee recommends State Bank Commissioner's budget, including new oversight staff for earned-wage-access services

The committee recommended the Office of the State Bank Commissioner’s FY2026 and FY2027 budgets after an agency briefing that emphasized fee-funded oversight needs tied to earned wage access (EWA) services.

Arianna Waddell said the OSBC’s FY2026 revised estimate is about $14.1 million, nearly all supported by the Bank Commissioner Fee Fund. She noted there is no State General Fund support for the agency. The FY2027 enhancement package includes roughly $432,000 and two FTEs overall; one specific enhancement request is approximately $157,000 and two FTEs to support oversight of EWA providers.

Jesse Becker, OSBC director of finance and administration, told the committee that salaries and wages are the agency’s largest expense. "Our number 1 largest expense is salary and wages," he said, and added that contractual services, accreditation and IT are other material operating costs.

Deputy Commissioner Jim Payne described the EWA program’s mechanics and regulatory fit: some providers are employer-integrated (working directly with payroll); others are direct-to-consumer via apps. Payne said the legislature authorized EWA regulation under the Earned Wage Services Act (House Bill 2560) and that companies register and pay fees for the program. Payne emphasized the statute’s consumer-protection structure and said the agency will license and oversee providers under the new authority.

Committee members sought clarity on funding sources and process: staff confirmed the agency’s enhancements are fee-funded and that the governor’s recommendation included the enhancements, although the SBC global motion initially deleted them and the House later restored them in its recommendation.

Senator Reichman moved to recommend the OSBC budgets (including enhancements); the motion was seconded and passed by voice vote. The committee adjourned after the vote.