EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0998*
SENATE BILL 998
I4, I3 4lr1883
CF 4lr2345
By: Senator Klausmeier
Introduced and read first time: February 2, 2024
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Commercial Law – Earned Wage Access Services 2
FOR the purpose of requiring a certain provider of earned wage access services to register 3
with the Commissioner of Financial Regulation; requiring a provider to file a certain 4
surety bond or an irrevocable letter of credit with the Commissioner in a certain 5
manner; regulating providers and earned wage access services; requiring, on or 6
before a certain date each year, a provider to submit a certain report to the 7
Commissioner; authorizing a certain consumer to submit a written complaint to the 8
Commissioner under certain circumstances; conferring on the Commissioner certain 9
investigatory and enforcement authority; establishing certain requirements 10
regarding the confidentiality of certain information and information sharing; 11
authorizing, subject to certain conditions, a provider to provide earned wage access 12
services without being registered with the Commissioner until a certain date; and 13
generally relating to earned wage access services and providers. 14
BY adding to 15
Article – Commercial Law 16
Section 14–4601 through 14–4611 to be under the new subtitle “Subtitle 46. Earned 17
Wage Access Services” 18
Annotated Code of Maryland 19
(2013 Replacement Volume and 2023 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Commercial Law 23
SUBTITLE 46. EARNED WAGE ACCESS SERVICES. 24
14–4601. 25 2 SENATE BILL 998
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(B) “BUSINESS ENTITY ” MEANS A CORPORATION , A LIMITED LIABILITY 3
COMPANY, A PARTNERSHIP , AN ASSOCIATION , OR ANY OTHER COMMERC IAL ENTITY. 4
(C) “COMMISSIONER ” MEANS THE COMMISSIONER OF FINANCIAL 5
REGULATION OF THE MARYLAND DEPARTMENT OF LABOR. 6
(D) (1) “CONSUMER” MEANS AN INDIVIDUAL WHO RESIDES IN THE 7
STATE. 8
(2) “CONSUMER” INCLUDES AN INDIVIDU AL FOR WHOM THE 9
PROVIDER USES A MAIL ING ADDRESS OR STATE OF RESIDENCE PROVIDE D BY THE 10
INDIVIDUAL TO DETERM INE THAT THE INDIVID UAL RESIDES IN THE STATE. 11
(E) “CONSUMER–DIRECTED EARNED WAGE AC CESS SERVICES” MEANS THE 12
BUSINESS OF DELIVERI NG TO A CONSUMER ACCESS TO E ARNED BUT UNPAID 13
INCOME THAT IS BASED ON THE CONSUMER ’S REPRESENTATIONS AN D THE 14
PROVIDER’S REASONABLE DETERMI NATION OF THE CONSUM ER’S EARNED BUT 15
UNPAID INCOME . 16
(F) “EARNED BUT UNPAID INC OME” MEANS SALARY , WAGES, 17
COMPENSATION , OR OTHER INCOME THAT A CONSUMER OR AN EMPLO YER 18
REPRESENTS , AND THAT A PROVIDE R REASONABLY DETERMINE S, HAS BEEN 19
EARNED OR ACCRUED TO THE BENEFIT OF THE C ONSUMER IN EXCHANGE FOR THE 20
CONSUMER ’S PROVISION OF SERVI CES TO OR ON BEHALF OF THE EMPLOYER , 21
INCLUDING ON AN HOUR LY, PROJECT–BASED, PIECEWORK, OR OTHER BASIS AND 22
INCLUDING CIRCUMSTAN CES IN WHICH THE CON SUMER IS ACTING AS A N 23
INDEPENDENT CONTRACT OR OF THE EMPLOYER , BUT HAS NOT, AT THE TIME OF THE 24
PAYMENT OF PROCEEDS , BEEN PAID TO THE CON SUMER BY THE EMPLOYE R. 25
(G) “EARNED WAGE ACCESS SE RVICES” MEANS THE BUSINESS O F 26
PROVIDING CONSUMER –DIRECTED EARNED WAGE ACCESS SERVICES OR 27
EMPLOYER–INTEGRATED EARNED WA GE ACCESS SERV ICES OR BOTH. 28
(H) (1) “EMPLOYER” MEANS: 29
(I) A PERSON WHO EMPLOYS A CONSUMER ; OR 30
(II) ANY OTHER PERSON THAT IS CONTRACTUALLY OBL IGATED 31
TO PAY A CONSUMER EA RNED BUT UNPAID INCO ME. 32 SENATE BILL 998 3
(2) “EMPLOYER” DOES NOT INCLUDE : 1
(I) A CUSTOMER OF AN EMPLOYER; OR 2
(II) ANY OTHER PERSON WHOS E OBLIGATION TO MAKE A 3
PAYMENT OF SALARY , WAGES, COMPENSATION , OR OTHER INCOME TO A CONSUMER 4
IS NOT BASED ON THE PROVISION OF SERVICE S BY THAT CONSUMER F OR OR ON 5
BEHALF OF THE PERSON . 6
(I) “EMPLOYER–INTEGRATED EA RNED WAGE ACCESS SER VICES” MEANS 7
THE BUSINESS OF DELI VERING TO CONSUMERS ACCESS TO EARNED BUT UNPAID 8
INCOME THAT IS BASED ON EMPLOYMENT , INCOME, OR ATTENDANCE DATA 9
OBTAINED DIRECTLY OR INDIRECTLY FROM AN E MPLOYER. 10
(J) (1) “FEE” INCLUDES: 11
(I) A FEE IMPOSED BY A PROVIDER FOR DELIVERY OR 12
EXPEDITED DELIVERY O F PROCEEDS TO A CONS UMER; AND 13
(II) A SUBSCRIPTION OR MEMB ERSHIP FEE IMPOSED B Y A 14
PROVIDER FOR A BONA FIDE GROUP OF SERVIC ES THAT INCLUDES EARNED WAGE 15
ACCESS SERVICES . 16
(2) “FEE” DOES NOT INCLUDE A VOLUNTARY TIP , GRATUITY, OR 17
OTHER DONATION . 18
(K) “NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY” OR 19
“NMLS” HAS THE MEANING STAT ED IN § 1–101 OF THE FINANCIAL INSTITUTIONS 20
ARTICLE. 21
(L) “OUTSTANDING PROCEEDS ” MEANS PROCEEDS REMIT TED TO A 22
CONSUMER BY A PROVIDER THAT H AVE NOT YET BEEN REP AID TO THE PROVIDER . 23
(M) “PERSON” INCLUDES AN INDIVIDU AL, A CORPORATION , A GOVERNMENT 24
OR A GOVERNMENTAL SU BDIVISION OR UNIT , A BUSINESS TRUST , A STATUTORY 25
TRUST, AN ESTATE, A TRUST, A PARTNERSHIP , AN ASSOCIATION , TWO OR MORE 26
PERSONS HAVING A JOI NT OR COMMON INTERES T, AND ANY OTHER LEGAL OR 27
COMMERCIAL ENTITY . 28
(N) “PROCEEDS” MEANS A PAYMENT TO A CONSUMER BY A PROVID ER THAT 29
IS BASED ON EARNED B UT UNPAID INCOME . 30
4 SENATE BILL 998
(O) (1) “PROVIDER” MEANS A BUSINESS ENT ITY THAT IS IN THE 1
BUSINESS OF PROVIDIN G EARNED WAGE ACCESS SERVICES TO CONSUMER S. 2
(2) “PROVIDER” DOES NOT INCLUDE : 3
(I) A SERVICE PROVIDER , SUCH AS A PAYROLL SE RVICE 4
PROVIDER, WHOSE ROLE MAY INCLU DE VERIFYING THE AVA ILABLE EARNINGS BUT 5
IS NOT CONTRACTUALLY OBLIGATED TO FUND ANY PROCEEDS DELIVERED A S PART 6
OF AN EARNED WAGE AC CESS SERVICE; OR 7
(II) AN EMPLOYER THAT OFFE RS A PORTION OF SALA RY, 8
WAGES, OR COMPENSATION DIRE CTLY TO ITS EMPLOYEE S OR INDEPENDENT 9
CONTRACTORS BEFORE THE NORMALLY SCHEDUL ED PAY DATE. 10
(P) “REGISTRANT” MEANS A BUSINESS ENT ITY THAT IS REGISTER ED WITH 11
THE COMMISSIONER UNDER TH IS SUBTITLE AS A PROVIDER. 12
14–4602. 13
A PROVIDER SHALL REGIS TER EACH YEAR WITH T HE COMMISSIONER UNDER 14
THIS SUBTITLE. 15
14–4603. 16
(A) TO REGISTER WITH THE COMMISSIONER , A PROVIDER SHALL : 17
(1) SUBMIT TO THE COMMISSIONER A REGIST RATION ON THE FORM 18
THAT THE COMMISSIONER PROVIDES ; 19
(2) UNLESS GRANTED AN EXE MPTION BY THE COMMISSIONER , FILE 20
WITH THE COMMISSIONER A BOND O R BOND ALTERNATIVE A S REQUIRED UNDER § 21
14–4604 OF THIS SUBTITLE; AND 22
(3) FULFILL ANY OTHER REQ UIREMENTS FOR REGIST RATION. 23
(B) THE REGISTRATION SHAL L INCLUDE ANY INFORM ATION THAT THE 24
COMMISSIONER REQUIRES BY REGULATION . 25
(C) A REGISTRATION IS NOT COMPLETE UNLESS THE REGISTRATION MEETS 26
THE REQUIREMENTS OF SUBSECTIONS (A) AND (B) OF THIS SECTION. 27
(D) EXCEPT AS PROVIDED I N § 14–4610 OF THIS SUBTITLE , ALL FEES AND 28
OTHER REVENUES COLLE CTED UNDER THIS SUBT ITLE SHALL BE DEPOSI TED INTO 29 SENATE BILL 998 5
THE NON–DEPOSITORY SPECIAL FUND ESTABLISHED UNDE R § 2–120 OF THE 1
FINANCIAL INSTITUTIONS ARTICLE. 2
(E) THE COMMISSIONER MAY REQU IRE A PROVIDER TO REGISTER 3
THROUGH NMLS OR THROUGH OTHER MEA NS SPECIFIED BY THE COMMISSIONER 4
BY REGULATION . 5
14–4604. 6
(A) UNLESS THE COMMISSIONER GRANTS A N EXEMPTION IN ACCOR DANCE 7
WITH SUBSECTION (B)(9) OF THIS SECTION AND EXCEPT AS PROVIDED I N 8
SUBSECTION (C) OF THIS SECTION , A PROVIDER SHALL FILE A SURETY BOND OR 9
IRREVOCABLE LETTER O F CREDIT WITH THE COMMISSIONER . 10
(B) (1) THE BOND SHALL RUN TO THE COMMISSIONER , AS OBLIGEE, FOR 11
THE BENEFIT OF : 12
(I) THE STATE; AND 13
(II) ANY CONSUMER WHO IS I NJURED BY A VIOLATIO N OF THIS 14
SUBTITLE COMMITTED B Y A PROVIDER. 15
(2) THE BOND SHALL BE : 16
(I) IN AN AMOUNT NOT EXCE EDING $100,000, AS DETERMINED 17
BY THE COMMISSIONER BY REGUL ATION; 18
(II) ISSUED BY A SURETY COMPANY THAT : 19
1. IS AUTHORIZED TO DO B USINESS IN THE STATE; AND 20
2. HOLDS A CERTIFICATE O F AUTHORITY ISSUED B Y THE 21
MARYLAND INSURANCE COMMISSIONER ; AND 22
(III) CONDITIONED ON THE PROVIDER ’S COMPLIANCE WITH ALL 23
STATE AND FEDERAL LAW S AND REGULATIONS GOVERNING PROVIDERS. 24
(3) THE LIABILITY OF THE SURETY: 25
(I) SHALL BE CONTINUOUS ; 26
(II) MAY NOT BE AGGREGATED OR CUMULATIVE , WHETHER OR 27
NOT THE BOND IS RENE WED, CONTINUED, REPLACED, OR MODIFIED; 28 6 SENATE BILL 998
(III) MAY NOT BE DETERMINED BY ADDING TOGETHER THE 1
PENAL SUM OF THE BON D, OR ANY PART OF THE P ENAL SUM OF THE BOND , IN 2
EXISTENCE AT ANY TWO OR MORE POINTS IN TI ME; 3
(IV) SHALL BE CONSIDERED T O BE ONE CONTINUOUS 4
OBLIGATION, REGARDLESS OF INCREA SES OR DECREASES IN THE PENAL SUM OF 5
THE BOND; 6
(V) MAY NOT BE AFFECTED B Y: 7
1. THE INSOLVENCY OR BAN KRUPTCY OF THE 8
PROVIDER; 9
2. ANY MISREPRESENTATION , BREACH OF WARRANTY , 10
FAILURE TO PAY A PRE MIUM, OR ANY OTHER ACT OR OMISSION OF THE PROV IDER 11
OR AN AGENT OF THE P ROVIDER; OR 12
3. THE SUSPE NSION OF THE PROVIDE R’S 13
REGISTRATION ; 14
(VI) MAY NOT REQUIRE AN AD MINISTRATIVE ENFORCE MENT 15
ACTION BY THE COMMISSIONER AS A PRE REQUISITE TO LIABILI TY; AND 16
(VII) SHALL CONTINUE FOR 3 YEARS AFTER THE LATE R OF THE 17
DATE ON WHICH : 18
1. THE BOND IS CANCELED; OR 19
2. THE PROVIDER , FOR ANY REASON , CEASES TO BE 20
REGISTERED. 21
(4) (I) A BOND MAY BE CANCELED BY THE SURETY OR THE 22
PROVIDER BY GIVING N OTICE OF CANCELLATIO N TO THE COMMISSIONER . 23
(II) NOTICE UNDER SUBPARAG RAPH (I) OF THIS PARAGRAPH 24
SHALL: 25
1. BE IN WRITING; AND 26
2. BE SENT BY CERTIFIED MAIL, RETURN RECEIPT 27
REQUESTED . 28
SENATE BILL 998 7
(III) A CANCELLATION OF A BO ND UNDER THIS PARAGR APH IS 1
NOT EFFECTIVE UNTIL 90 DAYS AFTER THE COMMISSIONER RECEIVES A NOTICE OF 2
CANCELLATION . 3
(5) A CLAIM AGAINST THE BOND MAY BE FILED WITH THE SU RETY BY: 4
(I) A CLAIMANT; OR 5
(II) THE COMMISSIONER FOR THE BENEFIT OF A CLAIMAN T OR 6
THE STATE. 7
(6) IF THE AMOUNT OF CLAI MS AGAINST A BOND EX CEEDS THE 8
AMOUNT OF THE BOND , THE SURETY: 9
(I) SHALL PAY THE A MOUNT OF THE BOND TO THE 10
COMMISSIONER FOR PRO RATA DISTRIBUTION TO CLAIMANTS; AND 11
(II) IS RELIEVED OF LIABIL ITY UNDER THE BOND . 12
(7) IF THE PENAL AMOUNT O F A BOND IS REDUCED BY PAYMENT OF A 13
CLAIM OR JUDGMENT , THE PROVIDER SHALL F ILE A NEW OR ADDITIONAL BOND 14
WITH THE COMMISSIONER . 15
(8) A PENALTY IMPOSED AGAI NST A PROVIDER UNDER § 14–4610 OF 16
THIS SUBTITLE MAY BE PAID FROM THE PROCEE DS OF A BOND REQUIRE D UNDER 17
THIS SECTION. 18
(9) IN GRANTING AN EXEMPT ION FROM THE BONDING REQUIREMENT 19
UNDER SUBSECTION (A) OF THIS SECTION , THE COMMISSIONER SHALL CO NSIDER 20
THE CONDITIONS THE COMMISSIONER ESTABLIS HES BY REGULATION . 21
(10) IN DETERMINING THE AM OUNT OF THE BOND UND ER PARAGRAPH 22
(2)(I) OF THIS SUBSECTION , THE COMMISSIONER SHALL CO NSIDER THE FACTORS 23
THE COMMISSIONER ESTABLIS HES BY REGULATION . 24
(C) (1) INSTEAD OF SATISFYING THE BONDING REQUIREM ENT UNDER 25
SUBSECTION (A) OF THIS SECTION, A PROVIDER MAY FILE WITH THE COMMISSIONER 26
AN IRREVOCABLE LETTE R OF CREDIT FROM A F INANCIAL INSTITUTION INSURED BY 27
THE FEDERAL DEPOSIT INSURANCE CORPORATION . 28
(2) THE IRREVOCABLE LETTE R OF CREDIT SHALL BE IN AN AMOUNT 29
EQUAL TO THE BOND RE QUIRED UNDER SUBSECT ION (B) OF THIS SECTION. 30
8 SENATE BILL 998
(D) THE COMMISSIONER SHALL AD OPT REGULATIONS ESTA BLISHING: 1
(1) THE CONDITIONS UNDER WHICH THE COMMISSIONER MAY GRAN T 2
TO A PROVIDER AN EXEMPTIO N FROM THE BONDING R EQUIREMENT UNDER 3
SUBSECTION (A) OF THIS SECTION; AND 4
(2) THE FACTORS THE COMMISSIONER SHALL CO NSIDER IN 5
DETERMINING THE AMOU NT OF THE BOND UNDER SUBSECTION (B)(2)(I) OF THIS 6
SECTION. 7
14–4605. 8
(A) A PROVIDER REQUIRED TO REGISTER UNDER THIS SUBTITLE SHALL : 9
(1) DEVELOP AND IMPLEMENT POLICIES AND PROCEDU RES TO 10
RESPOND TO QUESTIONS RAISED BY CONSUMERS AND ADDRESS COMPLAIN TS FROM 11
CONSUMERS IN AN EXPE DIENT MANNER; 12
(2) UNDER THE TERMS OF AN Y AGREEMENT FOR THE PR OVISION OF 13
EARNED WAGE ACCESS S ERVICES THAT IS ENTE RED INTO, RENEWED, OR MODIFIED 14
ON OR AFTER OCTOBER 1, 2024, OFFER TO CONSUMERS AT LEAST ONE REASONABLE 15
OPTION TO OBTAIN PRO CEEDS AT NO COST AND CLEARLY EXPLAIN HOW TO ELECT 16
THE NO–COST OPTION; 17
(3) BEFORE ENTERING INTO AN AGREEMENT WITH A CONSUMER FOR 18
THE PROVISION OF EAR NED WAGE ACCESS SERV ICES: 19
(I) INFORM THE CONSUMER O F THE CONSUMER ’S RIGHTS 20
UNDER THE AGREEMENT ; AND 21
(II) FULLY AND CLEARLY DISCLOSE ALL FEES ASSOCIATED 22
WITH THE EARNED WAGE ACCESS SERVICES ; 23
(4) INFORM THE CONSUMER O F ANY MATERIAL CHANG ES TO THE 24
TERMS AND CONDITIONS OF THE EARNED WAGE A CCESS SERVICES BEFOR E 25
IMPLEMENTING TH E CHANGES FOR TH E CONSUMER ; 26
(5) SUBJECT TO SUBSECTION (B) OF THIS SECTION , ALLOW THE 27
CONSUMER TO CANCEL THE USE OF THE PROVIDER ’S EARNED WAGE ACCESS 28
SERVICES AT ANY TIME , WITHOUT INCURRING A CANCELLATION FEE OR PENALTY 29
IMPOSED BY THE PROVI DER; 30
SENATE BILL 998 9
(6) COMPLY WITH ALL APPLI CABLE LOCAL , STATE, AND FEDERAL 1
PRIVACY AND INFORMAT ION SECURITY LAWS ; 2
(7) IF THE PROVIDER SOLICITS , CHARGES, OR RECEIVES A TIP , 3
GRATUITY, OR OTHER DONATION FR OM A CONSUMER , CLEARLY AND 4
CONSPICUOUSLY DISCLO SE: 5
(I) TO THE CONSUMER IMMED IATELY BEFORE EACH 6
TRANSACTION THAT A T IP, GRATUITY, OR OTHER DONATION AM OUNT IS VOLUNTARY 7
AND MAY BE ZERO; AND 8
(II) IN THE PROVIDER ’S SERVICE CONTRACT WIT H THE 9
CONSUMER AND ELSEWHE RE THAT TIPS , GRATUITIES, OR DONATIONS ARE 10
VOLUNTARY , THAT THE OFFERING OF EARNED WA GE ACCESS SERVICES , INCLUDING 11
THE AMOUNT OF PROCEE DS A CONSUMER IS ELI GIBLE TO REQUEST AND THE 12
FREQUENCY WITH WHICH PROCEEDS ARE PROVIDE D TO A CONSUMER , IS NOT 13
CONTINGENT ON : 14
1. WHETHER THE CONSUMER PAYS A TIP, GRATUITY, OR 15
OTHER DONATION ; OR 16
2. ON THE SIZE OF ANY TIP, GRATUITY, OR OTHER 17
DONATION; AND 18
(8) PROVIDE PROCEEDS TO A CONSUMER BY ANY MEAN S MUTUALLY 19
AGREED ON BY THE CON SUMER AND THE PROVID ER. 20
(B) (1) IF A CONSUMER HAS INITIAT ED AN ADVANCE OF PRO CEEDS, A 21
PROVIDER MAY REQUIRE THE EFFECTIVE DATE O F A CANCELLATION OF THE 22
PROVIDER’S EARNED WAGE ACCESS SERVICES TO OCCUR AFTER THE CONSUMER 23
HAS SATISFIED ANY RE PAYMENT OBLIGATION T HE CONSUMER HAS TO T HE 24
PROVIDER, EITHER THROUGH : 25
(I) PAYROLL DEDUCTION ; 26
(II) A PREAUTHORIZED ELECTRO NIC FUNDS TRANSFER F ROM A 27
CONSUMER ’S ACCOUNT OR DEPOSIT ORY INSTITUTION ; OR 28
(III) OTHER MEANS PREVIOUSL Y AGREED TO BY THE C ONSUMER 29
AND THE PROVIDER . 30
10 SENATE BILL 998
(2) NOTHING IN THIS SUBSECTION REQUIRES A PROVIDER TO ALLOW 1
A CONSUMER –INITIATED ADVANCE TO B E CANCELED, REVOKED, SUSPENDED, OR 2
REVERSED AFTER THE C ONSUMER INITIATES TH E ADVANCE. 3
(C) (1) A PROVIDER REQUIRED TO REGISTER UNDER THIS SUBTITLE 4
THAT SEEKS REPAYMENT OF OUTSTAN DING PROCEEDS OR PAY MENT OF FEES OR 5
OTHER AMOUNTS OWED , INCLUDING VOLUNTARY TIPS, GRATUITIES, OR OTHER 6
DONATIONS IN CONNECT ION WITH THE ACTIVIT IES COVERED BY THIS SUBTITLE, 7
FROM A CONSUMER ’S DEPOSITORY INSTITU TION, INCLUDING BY MEANS O F 8
ELECTRONIC FUNDS TRA NSFER, SHALL: 9
(I) COMPLY WITH APPLICABL E PROVISIONS OF THE FEDERAL 10
ELECTRONIC FUNDS TRANSFER ACT, 15 U.S.C. §§ 1693 THROUGH 1693R, AND 11
REGULATIONS ADOPTED UNDER THAT ACT; AND 12
(II) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 13
SUBSECTION, REIMBURSE THE CONSUME R FOR THE FULL AMOUN T OF ANY 14
OVERDRAFT OR INSUFFICIENT FUNDS FEE S IMPOSED ON THE CONSUMER BY THE 15
CONSUMER ’S DEPOSITORY INSTITU TION THAT WERE CAUSE D BY THE PROVIDER 16
ATTEMPTING TO SEEK P AYMENT OF ANY OUTSTA NDING PROCEEDS , FEES, OR OTHER 17
PAYMENTS IN CONNECTI ON WITH THE ACTIVITI ES COVERED BY THIS SUBTITLE, 18
INCLUDING VOLUNTARY TIPS, GRATUITIES, OR OTHER DONATIONS : 19
1. ON A DATE OCCURRING BEFORE THE DATE 20
ORIGINALLY DISCLOSED TO THE CONSUMER ; OR 21
2. IN AN INCORRECT AMOUN T THAT DIFFERS FROM THE 22
AMOUNT ORIGINALLY DISCLOSED TO THE CON SUMER. 23
(2) THE REQUIREMENTS OF PARAGRAPH (1)(II) OF THIS SUBSECTION 24
DO NOT APPLY TO A PR OVIDER WITH RESPECT TO PAYM ENTS OF OUTSTANDING 25
AMOUNTS OR FEES INCU RRED BY A CONSUMER T HROUGH FRAUDULENT OR OTHER 26
UNLAWFUL MEANS . 27
14–4606. 28
(A) A PROVIDER REQUIRED TO REGISTER UNDER THIS SUBTITLE MAY NOT: 29
(1) SHARE WITH AN EMPLOYE R A PORTION OF ANY F EES, VOLUNTARY 30
TIPS, GRATUITIES, OR OTHER DONATIONS T HAT WERE RECEIVED FR OM OR 31
CHARGED TO A CONSUME R FOR EARNED WAGE ACCESS S ERVICES; 32
SENATE BILL 998 11
(2) REQUIRE A CONSUMER ’S CREDIT REPORT OR A CREDIT SCORE 1
PROVIDED OR ISSUED B Y A CONSUMER REPORTI NG AGENCY TO DETERMI NE A 2
CONSUMER ’S ELIGIBILITY FOR EA RNED WAGE ACCESS SER VICES; 3
(3) ACCEPT PAYMENT OF OUT STANDING PROCEEDS , FEES, 4
VOLUNTARY TIPS , GRATUITIES, OR OTHER DONATIONS F ROM A CONSUMER BY 5
MEANS OF A CREDIT CA RD OR CHARGE CARD ; 6
(4) CHARGE A LATE FEE , DEFERRAL FEE , INTEREST, OR ANY OTHER 7
PENALTY OR CHARGE FO R FAILURE TO PAY OUT STANDING PROCEEDS , FEES, 8
VOLUNTARY TIPS , GRATUITIES, OR OTHER DONATIONS ; 9
(5) REPORT TO A CONSUMER REPORTING AGENCY OR DEBT 10
COLLECTOR ANY INFORM ATION ABOUT THE CONS UMER REGARDING THE I NABILITY 11
OF THE PROVIDER TO B E REPAID OUTSTANDING PROCEEDS, FEES, VOLUNTARY TIPS , 12
GRATUITIES, OR OTHER DONATION S; 13
(6) IF THE PROVIDER SOLIC ITS, CHARGES, OR RECEIVES TIPS , 14
GRATUITIES, OR OTHER DONATIONS F ROM A CONSUMER , MISLEAD OR DECEIVE 15
CONSUMERS ABOUT THE VOLUNTARY NATURE OF THE TIPS, GRATUITIES, OR 16
DONATIONS OR MAKE RE PRESENTATIONS THAT T IPS, GRATUITIES, OR OTHER 17
DONATIONS WILL BENEF IT ANY SPECIFIC INDI VIDUALS; OR 18
(7) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , 19
COMPEL OR ATTEMPT TO COMPEL PAYMENT BY A CONSUMER OF OUTSTAND ING 20
PROCEEDS, FEES, VOLUNTARY TIPS , GRATUITIES, OR OTHER DONATIONS T O THE 21
PROVIDER THROUGH : 22
(I) A SUIT AGAINST THE CON SUMER IN A COURT OF 23
COMPETENT JURISDICTI ON; 24
(II) USE OF A THIRD PARTY TO PURSUE COLLECTION FROM THE 25
CONSUMER ON THE PROV IDER’S BEHALF; OR 26
(III) THE SALE OF OUTSTANDING A MOUNTS TO A THIRD –PARTY 27
COLLECTOR OR DEBT BUYER FOR CO LLECTION FROM THE CO NSUMER. 28
(B) SUBSECTION (A)(7) OF THIS SECTION DOES NOT PRECLUDE : 29
(1) THE USE BY A PROVIDER OF ANY OF THE METHOD S SPECIFIED IN 30
SUBSECTION (A)(7) OF THIS SECTION TO COMPEL PAYMENT OF OUTSTANDING 31
AMOUNTS OR FEES INCU RRED BY A CONSUMER T HROUGH FRAUDULENT OR OTHER 32
UNLAWFUL MEANS ; OR 33 12 SENATE BILL 998
(2) A PROVIDER FROM PURSUI NG AN EMPLOYER FOR B REACH OF THE 1
EMPLOYER’S CONTRACTUAL OBLIGATI ONS TO THE PROVIDER . 2
14–4607. 3
(A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW , EARNED WAGE 4
ACCESS SERVICES OFFE RED AND PROVIDED BY A REGISTRANT IN COMP LIANCE 5
WITH THIS SUBTITLE MAY NOT BE CONSIDERED TO BE: 6
(1) A VIOLATION OF OR NONC OMPLIANCE WITH ANY L AW OF THIS 7
STATE GOVERNING THE P URCHASE, SALE OR ASSIGNMENT O F, OR AN ORDER FOR 8
EARNED BUT UNPAID IN COME; 9
(2) A LOAN OR OTHER FORM O F CREDIT OR DEBT ; OR 10
(3) A MONEY TRANSMISSION . 11
(B) NOTWITHSTANDING ANY O THER PROVISION OF LA W, A REGISTRANT IN 12
COMPLIANCE WITH THIS SUBTITLE MAY NOT BE CONSIDERED : 13
(1) A CREDITOR, CREDIT GRANTOR , CREDIT SERVICES BUSI NESS, 14
DEBT COLLECTOR , OR LENDER WITH RESPE CT TO EARNED WAGE ACCESS S ERVICES 15
OFFERED AND PROVIDED ; OR 16
(2) A MONEY TRANSMITTER UNDER ANY STATE LAW. 17
(C) (1) NOTWITHSTANDING ANY O THER PROV ISION OF LAW , FEES, 18
VOLUNTARY TIPS , GRATUITIES, OR OTHER DONATIONS P AID BY A CONSUMER TO A 19
REGISTRANT IN ACCORD ANCE WITH THIS SUBTI TLE MAY NOT BE CONSIDERED 20
INTEREST OR FINANCE CHARGES. 21
(2) IF THERE IS A CONFLIC T BETWEEN THE PROVIS IONS OF THIS 22
SUBTITLE AND ANY OTH ER PROVISION OF LAW , THE PROVISIONS OF TH IS SUBTITLE 23
SHALL PREVAIL . 24
14–4608. 25
(A) ON OR BEFORE JULY 1 EACH YEAR , A PROVIDER REQUIRED TO 26
REGISTER UNDER THIS SUBTITLE SHALL SUBMI T A REPORT TO THE COMMISSIONER 27
THAT INCLUDES ALL OF THE FOLLOWING I NFORMATION RELATED T O EARNED WAGE 28
ACCESS SERVICES THE PROVIDER PROVIDED IN THIS STATE DURING THE 29
IMMEDIATELY PRECEDIN G YEAR: 30 SENATE BILL 998 13
(1) GROSS REVENUE ATTRIBU TABLE TO THE EARNED WAGE ACCESS 1
SERVICES; 2
(2) THE TOTAL NUMBER OF T RANSACTIONS IN WHICH THE PROVIDER 3
PROVIDED PROCEEDS TO CONSUMERS ; 4
(3) THE TOTAL NUMBER OF U NIQUE CONSUMERS TO W HOM THE 5
PROVIDER PROVIDED PR OCEEDS; 6
(4) THE TOTAL DOLLAR AMOU NT OF PROCEEDS THE P ROVIDER 7
PROVIDED TO CONSUMER S; AND 8
(5) THE TOTAL DOLLAR AMOU NT OF FEES , VOLUNTARY TIPS , 9
GRATUITIES, OR OTHER DONATIONS T HE PROVIDER RECEIVED FROM CONSUMERS . 10
(B) FAILURE BY A PROVIDER TO SUBMIT A TIMELY R EPORT AS REQUIRED 11
UNDER SUBSECTION (A) OF THIS SECTION SHALL BE GROUNDS FOR DISCIPLI NARY 12
ACTION BY THE COMMISSIONER . 13
(C) (1) EXCEPT AS PR OVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 14
THE INFORMATION CONTAINED IN THE ANN UAL REPORT UNDER SUB SECTION (A) OF 15
THIS SECTIO N IS CONFIDENTIAL AN D NOT SUBJECT TO PUBLI C COPYING OR 16
INSPECTION UNDER TITLE 4, SUBTITLES 1 THROUGH 5 OF THE GENERAL 17
PROVISIONS ARTICLE. 18
(2) THE COMMISSIONER MAY PREP ARE AND MAKE PUBLICL Y 19
AVAILABLE AN AGGREGA TED AND ANONYMIZED A NALYSIS OF THE INFOR MATION 20
SUBMITTED BY ALL PRO VIDERS UNDER THIS SE CTION. 21
(D) (1) A PROVIDER REQUIRED TO REGISTER UNDER THIS SUBTITLE 22
SHALL: 23
(I) KEEP BOOKS AND RECORD S THAT, IN THE OPINION OF TH E 24
COMMISSIONER , WILL ENABLE THE COMMISSIONER TO DETER MINE WHETHER THE 25
PROVIDER IS IN COMPL IANCE WITH THIS SUBTITLE; AND 26
(II) RETAIN RECORDS RELATE D TO PROCEEDS FOR AT LEAST 2 27
YEARS FOLLOWING THE DATE ON WHICH PROCEEDS ARE PR OVIDED. 28
(2) A PROVIDER MAY KEEP BO OKS AND RECORDS AT A PLACE OF 29
BUSINESS LOCATED OUT SIDE THIS STATE IF THE PROVIDER IS ABLE TO READILY 30 14 SENATE BILL 998
PRODUCE TH E BOOKS AND RECORDS FO R REVIEW BY THE COMMISSIONER ON 1
REASONABLE REQUEST B Y THE COMMISSIONER. 2
14–4609. 3
(A) A CONSUMER WHO HAS REA SON TO BELIEVE THAT THIS SUBTITLE, OR 4
ANY OTHER LAW REGULA TING EARNED WAGE ACC ESS SERVICES , HAS BEEN 5
VIOLATED BY A PERSON SUBJECT TO THIS SUBT ITLE MAY FILE WITH T HE 6
COMMISSIONER A WRITTE N COMPLAINT DESCRIBING THE DETAILS OF THE 7
ALLEGED VIOLATION . 8
(B) THE COMMISSIONER MAY INIT IATE AN INVESTIGATIO N IF THE 9
COMMISSIONER HAS REAS ON TO BELIEVE THAT T HIS SUBTITLE OR ANY OTHER LAW 10
UNDER THE COMMISSIONER ’S JURISDICTION REGUL ATING PROVIDERS HAS BEEN 11
VIOLATED. 12
(C) AFTER RECEIVING A WRITTEN COMPLAINT OR INITIATING AN 13
INVESTIGATION UNDER THIS SECTION, THE COMMISSIONER MAY INSP ECT THE 14
BOOKS, RECORDS, LETTERS, AND CONTRACTS OF A PROVIDER RELATING TO THE 15
SPECIFIC WRITTEN COM PLAINT OR THE ALLEGE D VIOLATION. 16
14–4610. 17
(A) THE COMMISSIONER , IN ADDITION TO TAKIN G ANY OTHER ACTION 18
AUTHORIZED BY LAW , MAY: 19
(1) HOLD A HEARING ON THE COMPLAINT AT A TIME AND PLACE IN 20
THIS STATE REASONABLY CONV ENIENT TO THE PARTIE S INVOLVED; 21
(2) SUBPOENA AND TAKE DEP OSITIONS OF WITNESSE S; 22
(3) CONDUCT INVESTIGATION S THAT THE COMMISSIONER 23
CONSIDERS NECESSARY ; 24
(4) ADMINISTER OATHS ; 25
(5) ISSUE ORDERS FOR COMP LIANCE WITH THIS SUB TITLE; AND 26
(6) ISSUE CEASE AND DESIS T ORDERS IF AFTER A HEARING THE 27
COMMISSIONER FINDS A VIOLATION OF THIS SUBTITLE. 28
SENATE BILL 998 15
(B) (1) INSTEAD OF OR IN ADDI TION TO ANY OTHER AC TION THE 1
COMMISSIONER MAY TAKE UNDER THIS SECTION O R ANY OTHER PROVISIO N OF LAW, 2
THE COMMISSIONER MAY IMPO SE A CIVIL PENALTY N OT EXCEEDING : 3
(I) $1,000 FOR A FIRST VIOLATIO N; AND 4
(II) $2,500 FOR EACH SUBSEQUENT VIOLATION. 5
(2) IN DETERMINING THE AM OUNT OF A CIVIL PENALTY IMPOSE D 6
UNDER THIS SUBSECTIO N, THE COMMISSIONER SHALL CO NSIDER: 7
(I) THE SERIOUSNESS OF TH E VIOLATION; 8
(II) THE GOOD FAITH OF THE VIOLATOR; 9
(III) THE VIOLATOR’S HISTORY OF PREVIOU S VIOLATIONS; 10
(IV) THE DELETERIOUS EFFEC T OF THE VIOLATION O N THE 11
PUBLIC; 12
(V) THE ASSETS AND FINANC IAL STATUS OF THE VI OLATOR; 13
AND 14
(VI) ANY OTHER FACTORS REL EVANT TO THE DETERMI NATION 15
OF THE AMOUNT OF THE FINANCIAL PENALTY. 16
(3) THE COMMISSIONER SHALL PA Y ALL FINES AND PENA LTIES 17
COLLECTED BY THE COMMISSIONER UNDER TH IS SUBSECTION INTO T HE GENERAL 18
FUND OF THE STATE. 19
(C) IF A PERSON FAILS TO COMPLY WITH ANY LAWF UL ORDER OF THE 20
COMMISSIONER OR IF AN Y WITNESS FAILS T O APPEAR AND TESTIFY TO ANY MATTER 21
REGARDING WHICH THE WITNESS MAY BE LAWFU LLY INTERROGATED , ON PETITION 22
OF THE COMMISSIONER SETTING FORTH THE FACTS , THE CIRCUIT COURT OF ANY 23
COUNTY SHALL : 24
(1) COMPEL OBEDIENCE TO T HE REQUIREMENTS OF T HE SUBPOENA 25
OR ORDER; 26
(2) COMPEL THE PRODUCTION OF CONTRACTS , FORMS, FILES, AND 27
OTHER EVIDENCE ; AND 28
16 SENATE BILL 998
(3) ORDER COMPLIANCE WITH ANY LAWFUL ORDER ISS UED BY THE 1
COMMISSIONER . 2
(D) IF A PERSON FAILS , REFUSES, OR NEGLECTS TO COMPL Y WITH THE 3
ORDER OF THE COURT , THE COURT MAY PUNISH THAT PERSON F OR CONTEMPT OF 4
COURT. 5
(E) THE ADMINISTRATIVE PROCEDURE ACT, INCLUDING PROVISIONS FOR 6
JUDICIAL REVIEW OF A FINAL DECISION IN A CONTESTED CASE , APPLIES TO 7
PROCEEDINGS BEFORE T HE COMMISSIONER UNDER THIS SUBTITLE. 8
(F) THE COMMISSIONER SHALL ADOPT REGULATI ONS NECESSARY TO 9
CARRY OUT THIS SUBTITLE. 10
(G) A PROVIDER SHALL PAY T O THE COMMISSIONER A PER –DAY FEE SET BY 11
THE COMMISSIONER FOR EACH OF THE COMMISSIONER ’S EMPLOYEES ENGAGED IN 12
ANY INVESTIGATION OF THE PROVIDER CONDUCT ED UNDER THIS SE CTION THAT 13
THE COMMISSIONER CONSIDER S NECESSARY. 14
14–4611. 15
(A) (1) THE REQUIREMENTS UNDE R ANY FEDERAL LAW AN D TITLE 4, 16
SUBTITLES 1 THROUGH 5 OF THE GENERAL PROVISIONS ARTICLE REGARDING THE 17
PRIVACY OR CONFIDENT IALITY OF INFORMATIO N OR MATERIAL PROVID ED TO 18
NMLS, AND ANY PRIVILEGE AR ISING UNDER FEDERAL OR STATE LAW, INCLUDING 19
THE RULES OF ANY FED ERAL OR STATE COURT WITH RESPECT TO THAT 20
INFORMATION OR MATER IAL, SHALL CONTINUE TO AP PLY TO THAT INFORMAT ION 21
OR MATERIAL AFTER TH E INFORMATION OR MAT ERIAL HAS BEEN DISCLOSED TO 22
NMLS. 23
(2) THE INFORMATION AND M ATERIAL MAY BE SHARE D WITH ALL 24
STATE AND FEDERAL REG ULATORY OFFICIALS HA VING AUTHORITY OVER PERSONS 25
REQUIRED TO BE REGIS TERED UNDER THIS SUB TITLE, INCLUDING THE FINANCIAL 26
CRIMES ENFORCEMENT NETWORK AND THE OFFICE OF FOREIGN ASSETS 27
CONTROL, WITHOUT THE LOSS OF PRIVILEGE OR THE LOS S OF CONFIDENTIALITY 28
PROTECTIONS PROVIDED BY FEDERAL LAW OR TITLE 4, SUBTITLES 1 THROUGH 5 29
OF THE GENERAL PROVISIONS ARTICLE. 30
(B) THE COMMISSIONER MAY : 31
(1) ENTER INTO INFORMATIO N–SHARING AGREEMENTS WI TH ANY 32
FEDERAL OR STATE REG ULATORY AGENCY HAVIN G AUTHORITY OVER PRO VIDERS 33
OR WITH ANY FEDERAL OR STATE LAW ENFORCE MENT AGENCY , INCLUDING THE 34 SENATE BILL 998 17
FINANCIAL CRIMES ENFORCEMENT NETWORK AND THE OFFICE OF FOREIGN 1
ASSETS CONTROL, AND ANY SUCCESSO R TO THESE AGENCIES IF THE AGREEMENTS 2
PROHIBIT THE AGENCIE S FROM DISCLOSING AN Y SHARED INFORMATION WITHOUT 3
PRIOR WRITTEN CONSEN T FROM THE COMMISSIONER REGARDIN G DISCLOSURE OF 4
THE PARTICULAR INFOR MATION; AND 5
(2) EXCHANGE INFORMATION ABOUT A PROVIDER, INCLUDING 6
INFORMATION OBTAINED OR GENERATED DURING AN INVESTIGATION , WITH: 7
(I) ANY FEDERAL OR STATE REGULATORY AGENCY HA VING 8
AUTHORITY OVER PROVI DERS; OR 9
(II) ANY FEDERAL OR STATE LAW ENFORCEMENT AGEN CY. 10
(C) INFORMATION OR MATERI AL THAT IS SUBJECT T O A PRIVILEGE OR 11
CONFIDENTIALITY UNDE R SUBSECTION (A) OF THIS SECTION MAY NOT BE SUBJECT 12
TO: 13
(1) DISCLOSURE UNDER ANY FEDERAL OR STATE LAW GOVERNING 14
THE DISCLOSURE TO TH E PUBLIC OF INFORMAT ION HELD BY AN OFFIC ER OR 15
AGENCY OF THE FEDERA L GOVERNMENT OR A STATE THAT HAS RECEI VED THE 16
INFORMATION OR MATER IAL; OR 17
(2) SUBPOENA, DISCOVERY, OR ADMISSION INTO EV IDENCE, IN ANY 18
PRIVATE CIVIL LITIGA TION OR ADMINISTRATI VE PROCESS, UNLESS, WITH RESPECT 19
TO ANY PRIVILEGE HEL D BY NMLS, THE PERSON TO WHOM T HE INFORMATIO N OR 20
MATERIAL PERTAINS WA IVES, WHOLLY OR PARTLY, THAT PRIVILEGE . 21
(D) ANY PROVISIONS OF TITLE 4, SUBTITLES 1 THROUGH 5 OF THE 22
GENERAL PROVISIONS ARTICLE RELATING TO T HE DISCLOSURE OF ANY 23
INFORMATION OR MATER IAL DESCRIBED IN SUB SECTION (A) OF THIS SECTION THAT 24
ARE INCONSISTENT WIT H SUBSECTION (A) OF THIS SECTION SHAL L BE SUPERSEDED 25
BY THE REQUIREMENTS OF THIS SECTION. 26
(E) THIS SECTION DOES NOT APPLY TO INFORMATION OR MATERIAL 27
RELATING TO PUBLICLY ADJUDICATED DISCIPLI NARY AND ENFORCEMENT ACTIONS 28
AGAINST A PROVIDER THAT IS INC LUDED IN NMLS AND DESIGNATED FOR A CCESS 29
BY THE PUBLIC. 30
SECTION 2. AND BE IT FURTHER ENACTED, That a person required to register 31
with the Commissioner of Financial Regulation of the Maryland Department of Labor as a 32
provider of earned wage access services under § 14–4602 of the Commercial Law Article, 33
as enacted by Section 1 of this Act, may continue to provide earned wage access services, 34 18 SENATE BILL 998
as defined in § 14–4601 of the Commercial Law Article, as enacted by Section 1 of this Act, 1
in the State without being registered as required until April 1, 2025, if the person: 2
(1) was a provider of earned wage access services on or before January 1, 3
2023; 4
(2) has an application for registration pending with the Commissioner; and 5
(3) otherwise complies with the requirements of Title 14, Subtitle 46 of the 6
Commercial Law Article, as enacted by Section 1 of this Act. 7
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2024. 9