EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1294*
HOUSE BILL 1294
I2, I3 5lr1545
By: Delegate Wilson
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Commercial Law – Credit Regulation – Earned Wage Access and Credit 2
Modernization 3
FOR the purpose of subjecting certain earned wage access products to the Maryland 4
Consumer Loan Law and other provisions that regulate entities that provide 5
consumer credit, revolving credit, and closed end credit; restricting the acceptance of 6
tips by certain lenders under certain circumstances; providing for the licensing or 7
registration of certain entities offering earned wage access products with certain 8
exemptions; regulating earned wage access service agreements; limiting the costs 9
and fees associated with obtaining an earned wage access product; and generally 10
relating to consumer lending and earned wage access. 11
BY repealing and reenacting, with amendments, 12
Article – Commercial Law 13
Section 12–101, 12–301, 12–901, and 12–1001 14
Annotated Code of Maryland 15
(2013 Replacement Volume and 2024 Supplement) 16
BY adding to 17
Article – Commercial Law 18
Section 12–128, 12–318, 12–319, 12–927, and 12–1031; and 12–1501 through 19
12–1507 to be under the new subtitle “Subtitle 15. Earned Wage Access” 20
Annotated Code of Maryland 21
(2013 Replacement Volume and 2024 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GE NERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Commercial Law 25
12–101. 26 2 HOUSE BILL 1294
(a) In this subtitle the following words have the meanings indicated. 1
(b) “Borrower” means a person who borrows money under this subtitle. 2
(c) “Commercial loan” means a loan which is made: 3
(1) Solely to acquire or carry on a business or commercial enterprise; or 4
(2) To any business or commercial organization. 5
(d) “Effective rate of simple interest” means the yield to maturity rate of interest 6
received or to be received by a lender on the face amount of a loan, computed in accordance 7
with § 12–107 of this subtitle. 8
(e) “Interest” means, except as specifically provided in § 12–105 of this subtitle 9
OR § 12–1501 OF THIS TITLE, any compensation directly or indirectly imposed by a lender 10
for the extension of credit for the use or forbearance of money, including any loan fee, 11
origination fee, service and carrying charge, investigator’s fee, time–price differential, and 12
any amount payable as a discount or point or otherwise payable for services. 13
(f) “Lender” means a licensee or a person who makes a loan subject to this 14
subtitle. 15
(g) “Licensee” means a person that is required to be licensed to make loans subject 16
to this subtitle, regardless of whether the person is actually licensed. 17
(h) (1) “Loan” means a loan or an advance of money or credit subject to this 18
subtitle, regardless of whether the loan or advance of money or credit is or purports to be 19
made under this subtitle. 20
(2) “Loan” does not include: 21
(i) A loan or advance of money or credit subject to Subtitle 3 of this 22
title, unless a written election is made under § 12–101.1 of this subtitle; 23
(ii) A plan or loan for which a written election is made under Subtitle 24
3, Subtitle 4, Subtitle 9, or Subtitle 10 of this title; or 25
(iii) An installment sale agreement as defined in § 12–601 of this 26
title. 27
[(h–1)] (I) “Mobile home” has the meaning stated in § 11–501 of the Financial 28
Institutions Article. 29
HOUSE BILL 1294 3
[(i)] (J) “Person” includes an individual, corporation, business trust, statutory 1
trust, estate, trust, partnership, association, two or more persons having a joint or common 2
interest, or any other legal or commercial entity. 3
[(j)] (K) “Point” means a fee, premium, bonus, loan origination fee, service 4
charge, or any other charge equal to 1 percent of the principal amount of a loan which is 5
charged by the lender at or before the time the loan is made as additional compensation for 6
the loan. 7
[(k)] (L) “Simple interest” means interest charged on the principal amount 8
loaned to the borrower. 9
[(l)] (M) “Stated rate of interest” means the annual rate of interest stated in 10
percentage which appears on the face of the bond, draft, mortgage, deed of trust, security 11
agreement, promissory note, or other instrument which evidences the indebtedness. 12
(N) (1) “TIP” MEANS A VOLUNTARY PA YMENT BY A CONSUMER TO A 13
LENDER OR THIRD PART Y WHO PROVIDES OR AR RANGES A LOAN : 14
(I) MADE AT THE TIME OF T HE TRANSACTION IN RE COGNITION 15
OF THE LENDER ’S OR THIRD PARTY ’S PROVISION OR ARRAN GEMENT OF THE LOAN ; 16
(II) MADE AT THE SOLE DISC RETION OF THE CONSUM ER; AND 17
(III) THAT DOES NOT AFFECT THE WILLINGNESS OF T HE LENDER 18
OR THIRD PARTY TO PR OVIDE OR ARRANGE THE LOAN OR ANY FUTURE L OAN OR 19
AFFECT THE TE RMS OF ANY LOAN . 20
(2) “TIP” DOES NOT INCLUDE ANY PAYMENT MADE BY A CONSUMER 21
FOR EXPEDITED PROCES SING OR DISBURSEMENT OR FOR A MEMBERSHIP , 22
REGISTRATION , OR SUBSCRIPTION FEE . 23
[(m)] (O) “Usury” means the charging of interest by a lender in an amount which 24
is greater than that allowed by this subtitle. 25
[(n)] (P) “Wages” means all remuneration paid to any employee for the 26
employee’s employment, including the cash value of all remuneration paid in any medium 27
other than cash. 28
12–128. 29
(A) A LENDER WHO GIVES CONSUMERS AN O PTION TO PROVIDE THE 30
LENDER A TIP SHALL : 31
4 HOUSE BILL 1294
(1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 1
ALLOCATED; AND 2
(2) SET THE DEFAULT TIP AT Z ERO. 3
(B) A LENDER MAY NOT DIREC TLY OR INDIRECTLY SU GGEST THAT 4
PROVIDING A TIP WILL INFLUENCE: 5
(1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 6
CONSUMER AT ANY TIME ; OR 7
(2) THE TERMS OF ANY LOAN OFFERED TO THE CONSU MER BY THAT 8
LENDER. 9
(C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 10
RATE OF INTEREST ABO VE THAT ALLOWED UNDER THIS SUBTITLE MAY NOT BE 11
FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 12
OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 13
AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 14
RECEIVING THE TIP. 15
(D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 16
(1) PROVIDING A TIP DOES NOT INFLUENCE THE LE NDER’S 17
WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 18
(2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 19
BENEFIT OF ANY SPECIFIC EMPLOYEE OF THE LENDER OR ANY OT HER INDIVIDUAL . 20
12–301. 21
(a) In this subtitle the following words have the meanings indicated. 22
(b) “Commissioner” means the Commissioner of Financial Regulation. 23
(C) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 24
[(c)] (D) “Lender” means a licensee or a person who makes a loan subject to this 25
subtitle. 26
[(d)] (E) “Licensee” means a person who is required to be licensed under Title 27
11, Subtitle 2 of the Financial Institutions Article, the Maryland Consumer Loan Law 28
– Licensing Provisions, regardless of whether the person is actually licensed. 29
HOUSE BILL 1294 5
[(e)] (F) (1) “Loan” means any loan or advance of money or credit subject to 1
this subtitle, regardless of whether the loan or advance of money or credit is or purports to 2
be made under this subtitle. 3
(2) “Loan” does not include an installment sale agreement as defined in § 4
12–601 of this title. 5
[(f)] (G) “Person” includes an individual, corporation, business trust, statutory 6
trust, estate, trust, partnership, association, two or more persons having a joint or common 7
interest, or any other legal or commercial entity. 8
(H) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 9
[(g)] (I) “Wages” means all remuneration paid to any employee for the 10
employee’s employment, including the cash value of all remuneration paid in any medium 11
other than cash. 12
12–318. 13
(A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 14
LENDER A TIP SHALL : 15
(1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 16
ALLOCATED; AND 17
(2) SET THE DEFAULT TIP AT Z ERO. 18
(B) A LENDER MAY NOT DIREC TLY OR INDIRECTLY SU GGEST THAT 19
PROVIDING A TIP WILL INFLUENCE: 20
(1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 21
CONSUMER AT ANY TIME ; OR 22
(2) THE TERMS OF ANY LOAN OFFERED TO T HE CONSUMER BY THAT 23
LENDER. 24
(C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 25
RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 26
FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 27
OR THAT PORTION OF T HE TIP NECESSARY TO RED UCE THE RATE OF INTE REST TO 28
AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 29
RECEIVING THE TIP . 30
(D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 31
6 HOUSE BILL 1294
(1) PROVIDING A TIP DOES NOT INFLUENCE THE LE NDER’S 1
WILLINGNESS TO PRO VIDE A LOAN TO THE C ONSUMER AT ANY TIME ; AND 2
(2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 3
BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL. 4
12–319. 5
NOTWITHSTANDING ANY O THER PROVISION OF TH IS TITLE, A LOAN SHALL BE 6
SUBJECT TO THIS SUBT ITLE, WHETHER OR NOT ELECT ED, IF THE LOAN IS 7
CONSUMER –DIRECTED EARNED WAGE ACCESS U NDER SUBTITLE 15 OF THIS TITLE. 8
12–901. 9
(a) In this subtitle the following words have the meanings indicated. 10
(b) “Borrower” means a corporation, partnership, association, government or 11
governmental subdivision or agency, trust, individual, or other entity receiving a loan or 12
other extension of credit under this subtitle. 13
(c) “Commercial loan” and “extension of credit for a commercial purpose” mean 14
an extension of credit made: 15
(1) Solely to acquire an interest in or to carry on a business or commercial 16
enterprise; or 17
(2) To any business or commercial organization. 18
(d) “Consumer borrower” means an individual receiving a loan or other extension 19
of credit under this subtitle for personal, household, or family purposes or an individual 20
receiving a commercial loan or other extension of credit for any commercial purpose not in 21
excess of $75,000, secured by residential real property. 22
(e) “Credit device” means any card, plate, check, draft, identification code, or 23
other means of identification contemplated by the agreement governing the plan. 24
(f) (1) “Credit grantor” means any individual, corporation, business trust, 25
statutory trust, estate, trust, partnership, association, two or more persons having a joint 26
or common interest, or any other legal or commercial entity making a loan or other 27
extension of credit under this subtitle which is incorporated, chartered, or licensed 28
pursuant to State or federal law, the lending operations of which are subject to supervision, 29
examination, and regulation by a State or federal agency or which is licensed under Title 30
12, Subtitle 4 of the Financial Institutions Article or is a retailer. 31
(2) “Credit grantor” includes: 32
HOUSE BILL 1294 7
(i) Any bank, trust company, depository institution, or savings bank 1
having a branch in this State; 2
(ii) Any subsidiary of a bank holding company, as defined in the 3
federal Bank Holding Company Act of 1956, as amended, which is domiciled, doing 4
business, and offering a revolving credit plan involving the issuance of credit devices in this 5
State; and 6
(iii) Any person who acquires or obtains the assignment of a revolving 7
credit plan made under this subtitle. 8
(G) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 9
[(g)] (H) (1) “Loan” means a cash advance to be paid to or for the account of 10
the borrower. 11
(2) “Loan” includes an advance made in accordance with the terms of a 12
shared appreciation agreement. 13
[(h)] (I) “Mobile home” has the meaning stated in § 11–501 of the Financial 14
Institutions Article. 15
[(i)] (J) “Nonconsumer borrower” means any borrower other than a consumer 16
borrower. 17
[(j)] (K) (1) “Outstanding unpaid indebtedness” means on any day the total 18
amount of purchases and loans charged to the borrower’s account under the plan which is 19
outstanding and unpaid at the end of the day, after adding the aggregate amount of any 20
new purchases and loans charged to the account that day and deducting the aggregate 21
amount of any payments and credits applied to the account that day. 22
(2) If the agreement governing the plan permits, “outstanding unpaid 23
indebtedness” may include the amount of any interest, finance charges, and additional 24
charges, including late or delinquency charges, that have accrued in the account and are 25
unpaid at the end of the day. 26
[(k)] (L) “Purchase” means an extension of credit for a purchase of real or 27
personal, tangible or intangible property, or an extension of credit for services, licenses, 28
taxes, official fees, fines, private or governmental obligations, or any other thing of value, 29
including a charitable contribution. 30
[(l)] (M) “Residential real property” means owner–occupied real property having 31
a dwelling on it designated principally as a residence with accommodations for not more 32
than four families. 33
8 HOUSE BILL 1294
[(m)] (N) “Revolving credit plan” or “plan” means a plan that contemplates the 1
extension of credit under an account governed by an agreement between a credit grantor 2
and a borrower under which: 3
(1) The credit grantor permits the borrower and, if the agreement 4
governing the plan permits, persons acting on behalf of or with authorization from the 5
borrower to make purchases or obtain loans from time to time; 6
(2) The amounts of purchases and loans are charged to the borrower’s 7
account; 8
(3) The borrower is required to pay the credit grantor the amounts of all 9
purchases and loans charged to the borrower’s account under the plan but has the privilege 10
of paying amounts due from time to time as agreed; and 11
(4) Interest or finance charges may be charged and collected by the credit 12
grantor from time to time on the amounts due under the plan. 13
[(n)] (O) “Shared appreciation agreement” has the meaning stated in § 11–501 14
of the Financial Institutions Article. 15
(P) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 16
12–927. 17
(A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 18
LENDER A TIP SHALL : 19
(1) DISCLOSE TO T HE CONSUMER TO WHOM THE TIP WILL BE 20
ALLOCATED; AND 21
(2) SET THE DEFAULT TIP AT Z ERO. 22
(B) A LENDER MAY NOT SUGGE ST THAT PROVIDING A TIP WILL INFLUENCE : 23
(1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 24
CONSUMER AT ANY TIME ; OR 25
(2) THE TERMS OF A NY EARNED WAGE ACCES S OFFERED TO THE 26
CONSUMER BY THAT LEN DER. 27
(C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 28
RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 29
FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 30
OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 31 HOUSE BILL 1294 9
AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 1
RECEIVING THE TIP . 2
(D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 3
(1) PROVIDING A TIP DOES NOT INFLUENC E THE LENDER ’S 4
WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 5
(2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 6
BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL. 7
12–1001. 8
(a) In this subtitle the following words have the meanings indicated. 9
(b) (1) “Balloon payment” means any scheduled payment on an installment 10
loan that is more than 2 times the average of all other payments scheduled to repay the 11
installment loan. 12
(2) “Balloon payment” does not include a down payment. 13
(c) “Borrower” means a corporation, partnership, association, government, or 14
governmental subdivision or agency, trust, individual, or other entity receiving a loan or 15
other extension of credit under this subtitle. 16
(d) “Closed end credit” means the extension of credit by a credit grantor to a 17
borrower under an arrangement or agreement which is not a revolving credit plan as 18
defined in Subtitle 9 of this title. 19
(e) “Commercial loan” and “extension of credit for a commercial purpose” mean 20
an extension of credit made: 21
(1) Solely to acquire an interest in or to carry on a business or commercial 22
enterprise; or 23
(2) To any business or commercial organization. 24
(f) “Consumer borrower” means an individual receiving a loan or other extension 25
of credit under this subtitle for personal, household, or family purposes or an individual 26
receiving a commercial loan or other extension of credit for any commercial purpose not in 27
excess of $75,000, secured by residential real property. 28
(g) (1) “Credit grantor” means any individual, corporation, business trust, 29
statutory trust, estate, trust, partnership, association, two or more persons having a joint 30
or common interest, or any other legal or commercial entity making a loan or other 31
extension of credit under this subtitle which is incorporated, chartered, or licensed 32 10 HOUSE BILL 1294
pursuant to State or federal law, the lending operations of which are subject to supervision, 1
examination, and regulation by a State or federal agency or which is licensed under Title 2
12, Subtitle 4 of the Financial Institutions Article or is a retailer. 3
(2) “Credit grantor” includes: 4
(i) Any bank, trust company, depository institution, or savings bank 5
having a branch in this State; 6
(ii) A person not required to be licensed under this subtitle, who is 7
exempt from the licensing provisions of Title 11, Subtitle 5 of the Financial Institutions 8
Article, who makes a loan or extension of credit under this subtitle secured by a secondary 9
mortgage on residential real property; and 10
(iii) Any person who acquires or obtains the assignment of an 11
agreement for an extension of credit made under this subtitle. 12
(h) “Debt cancellation agreement” means an agreement between a credit grantor 13
and a borrower which provides for cancellation of the remaining loan balance in the event 14
of theft or total destruction of the collateral for the loan minus the proceeds of any insurance 15
maintained on the collateral for the loan or, if the borrower does not have insurance, the 16
actual cash value of the collateral at the time of loss, determined as provided in the 17
agreement. 18
(i) “Installment loan” means a loan repayable in scheduled periodic payments of 19
principal and interest. 20
(J) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 21
[(j)] (K) (1) “Loan” means any single extension of closed end credit, whether 22
repayable in installments, on demand, or otherwise and whether extended in one or more 23
advances. 24
(2) “Loan” includes an advance made in accordance with the terms of a 25
shared appreciation agreement. 26
[(k)] (L) “Mechanical repair contract” has the meaning stated in Title 15, 27
Subtitle 3 of the Transportation Article. 28
[(l)] (M) “Mobile home” has the meaning stated in § 11–501 of the Financial 29
Institutions Article. 30
[(m)] (N) “Remaining loan balance”, when used in reference to a debt cancellation 31
agreement, does not include: 32
(1) Any delinquent or deferred payments; 33
HOUSE BILL 1294 11
(2) Past due charges; 1
(3) Late payment charges; 2
(4) Unearned interest; 3
(5) Unearned rental payments; 4
(6) The portion of any financed taxes or charges, including charges for 5
credit life insurance, credit health insurance, credit involuntary unemployment benefit 6
insurance, and mechanical repair contracts, actually refunded to the borrower or credited 7
as a reduction to the loan balance; or 8
(7) By agreement of the parties, the amount of any primary insurance 9
deductible. 10
[(n)] (O) “Residential real property” means owner–occupied real property having 11
a dwelling on it designated principally as a residence with accommodations for not more 12
than four families. 13
[(o)] (P) “Shared appreciation agreement” has the meaning stated in § 11–501 14
of the Financial Institutions Article. 15
(Q) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 16
12–1031. 17
(A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 18
LENDER A TIP SHALL : 19
(1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 20
ALLOCATED; AND 21
(2) SET THE DEFAULT TIP AT Z ERO. 22
(B) A LENDER MAY NOT SUGGE ST THAT PROVIDING A TIP WILL INFLUENCE : 23
(1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 24
CONSUMER AT ANY TIME ; OR 25
(2) THE TERMS OF ANY LOAN OFFERED TO THE CONSU MER BY THAT 26
LENDER. 27
(C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 28
RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 29
FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 30 12 HOUSE BILL 1294
OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 1
AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 2
RECEIVING THE TIP . 3
(D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 4
(1) PROVIDING A TIP DOES NOT INFLUENCE THE LE NDER’S 5
WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 6
(2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 7
BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL . 8
SUBTITLE 15. EARNED WAGE ACCESS. 9
12–1501. 10
(A) IN THIS SUBTITLE THE FOLLOWING TERMS HAVE THE MEANINGS 11
INDICATED. 12
(B) “BANK” HAS THE MEANING STAT ED IN § 1–201 OF THIS ARTICLE. 13
(C) “CONSUMER REPORTING AG ENCY” HAS THE MEANING STAT ED IN § 14
14–1201 OF THIS ARTICLE. 15
(D) “CONSUMER–DIRECTED EARNED WAGE ACCESS ” MEANS DELIVERY TO A 16
CONSUMER OF ACCESS TO UNPAID BUT EARNED WAGES : 17
(1) THAT IS PROVIDED TO A CONSUME R BY A THIRD PARTY W HO DOES 18
NOT HAVE A RELATIONS HIP WITH THE CONSUME R’S EMPLOYER; 19
(2) THAT IS BASED ON EMPL OYMENT, INCOME, OR ATTENDANCE 20
DATA OBTAINED DIRECT LY FROM THE CONSUMER ; AND 21
(3) WHERE THE CONSUMER DO ES NOT PAY THE PROVI DER INTEREST. 22
(E) “EARNED WAGE ” MEANS SALARY, WAGES, COMPENSATION , OR OTHER 23
INCOME EARNED : 24
(1) ON AN HOURLY, PROJECT–BASED, PIECEWORK, OR OTHER BASIS ; 25
OR 26
(2) THROUGH SERVICES REND ERED AS AN INDEPENDE NT 27
CONTRACTOR . 28
HOUSE BILL 1294 13
(F) “EARNED WAGE ACCESS ” MEANS: 1
(1) CONSUMER–DIRECTED EARNED WAGE ACCESS; OR 2
(2) EMPLOYER–INTEGRATED EARNED WA GE ACCESS. 3
(G) “EMPLOYER–INTEGRATED EARNED WA GE ACCESS” MEANS DELIVERY 4
OF UNPAID BUT EARNED WAGE S: 5
(1) THAT ARE PROVIDED TO A CONSUMER DIRECTLY BY A PERSON 6
THE EMPLOYER HAS CON TRACTED TO PROVIDE T HE SERVICE; 7
(2) THAT ARE DETERMINED BASED ON EMPLOYMENT , INCOME, OR 8
ATTENDANCE DATA OBTA INED DIRECTLY OR IND IRECTLY FROM THE CON SUMER’S 9
EMPLOYER, INCLUDING A PAYROLL SERVICE PROVIDER ; AND 10
(3) WHERE THE CONSUMER DO ES NOT PAY THE PROVI DER INTEREST. 11
(H) (1) “FEE” MEANS: 12
(I) A FEE IMPOSED BY A PRO VIDER FOR DELIVERY O R 13
EXPEDITED DELIVERY O F EARNED WAGE ACCESS TO A CONSUMER ; OR 14
(II) A SUBSCRIPTION OR MEMB ERSHIP FEE IMPOSED B Y A 15
PROVIDER FOR A GROUP OF SERVICES THAT INC LUDES EARNED WAGE ACCESS . 16
(2) “FEE” DOES NOT INCLUDE A V OLUNTARY TIP , GRATUITY, OR 17
OTHER DONATION . 18
(I) (1) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS 19
TITLE. 20
(2) “INTEREST” DOES NOT INCLUDE A F EE IMPOSED BY AN EAR NED 21
WAGE ACCESS PROVIDER LICENSED UNDER TITLE 11, SUBTITLE 2 OF THE 22
FINANCIAL INSTITUTIONS ARTICLE. 23
(J) (1) “LOAN” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 24
(2) “LOAN” INCLUDES EARNED WAGE ACCESS, SUBJECT TO THE 25
PROVISIONS OF THIS S UBTITLE. 26
(K) “PAYROLL PERIOD ” MEANS A PERIOD OF TI ME DURING WHICH A 27
CONSUMER EARNS WAGES THAT AN EMPLOYER OWE S TO THE EMPLOYEE AT THE END 28
OF THE PERIOD. 29 14 HOUSE BILL 1294
(L) “PROCEEDS” MEANS A PAYMENT TO A CONSUMER BY A PROVID ER THAT 1
IS BASED ON UNPAID B UT EARNED WAGES . 2
(M) (1) “PROVIDER” MEANS A PERSON WHO P ROVIDES TO CONSUMERS 3
EITHER CONSUMER –DIRECTED EARNED WAGE ACCESS OR EMPLOYER–INTEGRATED 4
EARNED WAGE ACCESS . 5
(2) “PROVIDER” DOES NOT INCLUDE : 6
(I) A SERVICE PROVIDER , SUCH AS A PAYROLL SE RVICE 7
PROVIDER, THAT MAY VERIFY THE AVAILABLE EARNINGS O F A CONSUMER BUT THA T 8
IS NOT CONTRACTUALLY OBLIGA TED TO FUND ANY PROC EEDS DELIVERED AS PA RT 9
OF AN EARNED WAGE AC CESS SERVICE; OR 10
(II) AN EMPLOYER THAT OFFE RS A PORTION OF SALA RY, 11
WAGES, OR OTHER COMPENSATIO N DIRECTLY TO ITS EM PLOYEES OR INDEPENDE NT 12
CONTRACTORS BEFORE A NORMALLY SCHEDULED PAY DATE FOR A PAYROLL 13
PERIOD. 14
(N) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 15
(O) “WAGES” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 16
12–1502. 17
(A) A PERSON MAY NOT ENGAG E IN THE BUSINESS OF PROVIDING 18
EARNED WAGE ACCESS UNLESS THE PERSON IS LICENSED UNDER OR IS EXEMPT 19
FROM THE LICENSING R EQUIREMENTS OF TITLE 11, SUBTITLE 2 OF THE FINANCIAL 20
INSTITUTIONS ARTICLE. 21
(B) FAILURE TO OBTAIN A C ONSUMER LOAN LICENSE SHALL SUBJECT A 22
PROVIDER TO THE ENFO RCEMENT PROVISIONS O F TITLE 11, SUBTITLE 2 OF THE 23
FINANCIAL INSTITUTIONS ARTICLE. 24
(C) AN EARNED WAGE ACCESS PROVIDER LICENSED UN DER TITLE 11, 25
SUBTITLE 2 OF THE FINANCIAL INSTITUTIONS ARTICLE AND SUBJECT T O THIS 26
SUBTITLE IS EXEMPT FROM OTHER PROVISIONS OF STATE LAW GOVERNING 27
LENDING, CREDIT, OR DEBT, INCLUDING THE PROVIS IONS OF SUBTITLE 1, 28
SUBTITLE 3, SUBTITLE 9, AND SUBTITLE 10 OF THIS TITLE. 29
(D) EARNED WAGE ACCESS SE RVICES PROVIDED IN A CCORDANCE WITH 30
THIS SUBTITLE MAY NO T BE CONSIDERED : 31
HOUSE BILL 1294 15
(1) A MONEY TRANSMISSION ; OR 1
(2) A VIOLATION OF OR N ONCOMPLIANCE WITH STATE LAWS 2
GOVERNING DEDUCTIONS FROM PAYROLL , SALARY, WAGES, COMPENSATION , OR 3
OTHER INCOME OR THE PURCHASE, SALE, ASSIGNMENT , OR ORDER FOR UNPAID BUT 4
EARNED WAGES . 5
12–1503. 6
(A) A PROVIDER OF EARNED W AGE ACCESS SHALL : 7
(1) DEVELOP AND IMPLEMENT POLICIES AND PROCEDU RES TO 8
RESPOND TO QUESTIONS RAISED BY CONSUMERS ; 9
(2) ADDRESS COMPLAINTS FR OM CONSUMERS IN AN E XPEDIENT 10
MANNER; 11
(3) WHENEVER THE PROVIDER OFFERS A CONSUMER TH E OPTION TO 12
RECEIVE EARNED WAGE ACCESS SERVICES FOR A FEE OR SOLICIT S AN OPTIONAL 13
TIP, GRATUITY, OR OTHER DONATION , OFFER TO THE CONSUME R AT LEAST ONE 14
REASONABLE OPTION TO OBTAIN EAR NED WAGE ACCESS AT N O COST TO THE 15
CONSUMER ; 16
(4) CLEARLY EXPLAIN TO A CONSUMER HOW TO ELECT A NO–COST 17
OPTION DESCRIBE D IN ITEM (3) OF THIS SUBSECTION; 18
(5) BEFORE ENTERING INTO AN AGREEMENT WITH A CONSUMER FOR 19
THE PROVISION OF EAR NED WAGE ACCESS SERV ICES: 20
(I) INFORM THE CONSUMER O F THE CONSUMER ’S RIGHTS 21
UNDER THE AGREEMENT ; AND 22
(II) FULLY AND CLEARLY DIS CLOSE ALL FEES ASSOCIATED 23
WITH THE EARNED WAGE ACCESS SERVICES ; 24
(6) INFORM A CONSUMER OF ANY MATE RIAL CHANGES TO THE TERMS 25
AND CONDITIONS OF TH E EARNED WAGE ACCESS SERVICES BEFORE IMPL EMENTING 26
THOSE CHANGES FOR TH AT CONSUMER ; 27
(7) ALLOW A CONSUMER TO CANCEL U SE OF THE PROVIDER ’S 28
EARNED WAGE ACCESS S ERVICES AT ANY TIME WITHOUT INCURRING A 29
CANCELLATION FEE IMP OSED BY THE PROVIDER ; 30
16 HOUSE BILL 1294
(8) COMPLY WITH ALL APPLI CABLE LOCAL , STATE, AND FEDERAL 1
PRIVACY AND INFORMAT ION SECURITY LAWS ; 2
(9) IF A PROVIDER SOLICITS , CHARGES, OR RECEIVES A TIP , 3
GRATUITY, OR OTHER DONATION FR OM A CONSUMER : 4
(I) SET THE DEFAULT TIP , IF ANY, AT ZERO; 5
(II) CLEARLY AND CONSPICUO USLY DISCLOSE TO THE 6
CONSUMER IMMEDIATELY PRIOR TO EACH TRANSA CTION THAT ANY TIP P AID BY THE 7
CONSUMER DOES NOT IN URE TO THE DIRECT BE NEFIT OF ANY SPECIFI C EMPLOYEE 8
OF THE PROVIDER OR A NY OTHER INDIVIDUAL ; 9
(III) CLEARLY AND CONSPICUO USLY DISCLOSE TO THE 10
CONSUMER IMMEDIATELY PRIOR TO EACH TRANSA CTION THAT A TIP, GRATUITY, OR 11
OTHER DONATION A MOUNT IS OPTIONAL AND VOLU NTARY; AND 12
(IV) CLEARLY AND CONSPICUO USLY DISCLOSE IN THE 13
PROVIDER’S SERVICE CONTRACT W ITH THE CONSUMER THA T: 14
1. TIPS, GRATUITIES, OR OTHER DONATIONS A RE 15
VOLUNTARY ; AND 16
2. THE OFFERING OF EARNE D WAGE ACCESS SERVIC ES, 17
INCLUDING THE AMOUNT OF PROCEEDS A CONSUM ER IS ELIGIBLE TO RE QUEST AND 18
THE FREQUENCY WITH W HICH PROCEEDS ARE PR OVIDED TO A CONSUMER , IS NOT 19
CONTINGENT ON WHETHE R THE CONSUMER PAYS ANY TIP, GRATUITY, OR OTHER 20
DONATION OR ON THE S IZE OF THE TIP, GRATUITY, OR OTHER DONATION ; 21
(10) PROVIDE PROCEEDS TO A CONSUMER BY ANY MEAN S MUTUALLY 22
AGREED UPON BY THE C ONSUMER AND THE PROV IDER; AND 23
(11) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , IF 24
THE PROVIDER WILL SE EK REPAYMENT OF OUTS TANDING PROCEEDS OR PAYMENT 25
OF FEES OR OTHER AMO UNTS OWED OR INCURRED , INCLUDING VOLUNTARY TIPS, 26
GRATUITIES, OR OTHER DONATIONS , FROM A CONSUMER ’S ACCOUNT AT A BANK IN 27
CONNECTION WITH EARN ED WAGE ACCESS SERVI CES COVERED BY THIS SUBTITLE, 28
INCLUDING BY MEANS O F ELECTRIC FUND TRANSFER: 29
(I) COMPLY WITH THE FEDERAL ELECTRONIC FUND 30
TRANSFER ACT AND REGULATIONS A DOPTED TO IMPLEMENT THE ACT; AND 31
HOUSE BILL 1294 17
(II) REIMBURSE THE CONSUME R WITHIN 5 BUSINESS DAYS FOR 1
THE FULL AMOUNT OF A NY OVERDRAFT OR NONS UFFICIENT FUND FEES IMPOSED 2
ON A CONSUMER BY THE CONSUME R’S BANK THAT WERE CAU SED BY THE PROVIDER 3
ATTEMPTING TO SEEK R EPAYMENT OF ANY OUTS TANDING PROCEEDS OR PAYMENT 4
OF FEES, TIPS, GRATUITIES, OR OTHER DONATIONS I N CONNECTION WITH EA RNED 5
WAGE ACCESS SERVICES COVERED BY THIS SUBT ITLE. 6
(B) SUBSECTION (A)(11) OF THIS SECTION DOES NOT APPLY TO A PROVI DER 7
SEEKING REPAYMENT OF OUTSTANDING PROCEEDS OR PAYMENT OF FEES O R 8
OTHER AMOUNTS OWED T HAT WERE RECEIVED OR INCURRED BY A CONSUM ER 9
THROUGH FRAUDULENT O R OTHER UNLAWFUL MEA NS. 10
12–1504. 11
A PROVIDER OF EARNED WAGE AC CESS MAY NOT: 12
(1) SHARE WITH AN EMPLOYE R ANY FEES, TIPS, OR OTHER CHARGES 13
RECEIVED FROM A CONS UMER FOR EARNED WAGE ACCESS; 14
(2) CONDITION A CONSUMER ’S ABILITY TO OBTAIN EARNED WAGE 15
ACCESS ON THE CONSUM ER’S ABILITY OR WILLING NESS TO PAY THE PROVIDER A 16
TIP; 17
(3) CHARGE A CONSUMER A LATE FEE, INTEREST, OR OTHER 18
PENALTY FOR FAILURE TO PAY ANY PROCEEDS , FEES, OR TIPS; 19
(4) REPORT ANY INFORMATIO N ABOUT A CONSUMER ’S FAILURE TO 20
PAY ANY PROCEEDS , FEES, OR TIPS TO ANY CONSU MER REPORTING A GENCY; 21
(5) OBTAIN A CONSUMER ’S CREDIT REPORT AS A METHOD OF 22
QUALIFYING THE CONSU MER FOR EARNED WAGE ACCESS; 23
(6) RECEIVE INTEREST FROM A CONSUMER ; OR 24
(7) COMPEL OR ATTEMPT TO COMPEL PAYMENT BY A CONSUMER OF 25
ANY PROCEEDS , FEES, TIPS, GRATUITIES, OR OTHER DONATIONS THRO UGH: 26
(I) A CIVIL ACTION AGAINST THE CONSUMER ; 27
(II) THE USE OF A THIRD PA RTY TO PURSUE COLLEC TION FROM 28
THE CONSUMER ON THE PROVIDER’S BEHALF; OR 29
18 HOUSE BILL 1294
(III) THE SALE OR ASSIGNMEN T OF OUTSTANDING AMO UNTS TO 1
A THIRD–PARTY COLLECTOR OR DEBT BUYER FOR CO LLECTION FROM THE 2
CONSUMER . 3
12–1505. 4
A PROVIDER OF EARNED W AGE ACCESS MAY CHARG E A FEE NOT EXCEEDIN G: 5
(1) $5.00 FOR ANY ADVANCE OF P ROCEEDS EQUAL TO OR LESS THAN 6
$75.00; OR 7
(2) $7.50 FOR ANY ADVANCE OF P ROCEEDS GREATER THAN $75.00. 8
12–1506. 9
ON OR BEFORE JULY 1 EACH YEAR, BEGINNING IN 2026, A PROVIDER OF 10
EARNED WAGE ACCESS S HALL SUBMIT A REPORT TO THE OFFICE OF FINANCIAL 11
REGULATION THAT INCLU DES ANY INFORMATION CONSIDERED NECESSARY BY THE 12
COMMISSIONER , AS PRESCRIBED BY REG ULATION, TO ASSESS THE SIZE A ND STATUS 13
OF THE EARNED WAGE ACCESS M ARKET IN THE STATE. 14
12–1507. 15
THE COMMISSIONER MAY ADOP T REGULATIONS TO CAR RY OUT THIS 16
SUBTITLE. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
October 1, 2025. 19