EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1294*
HOUSE BILL 1294
I2, I3 5lr1545
By: Delegate Wilson Delegates Wilson and Amprey
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 4, 2025
CHAPTER ______
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, and 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, and 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
2 HOUSE BILL 1294
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Commercial Law 3
12–101. 4
(a) In this subtitle the following words have the meanings indicated. 5
(b) “Borrower” means a person who borrows money under this subtitle. 6
(c) “Commercial loan” means a loan which is made: 7
(1) Solely to acquire or carry on a business or commercial enterprise; or 8
(2) To any business or commercial organization. 9
(d) “Effective rate of simple interest” means the yield to maturity rate of interest 10
received or to be received by a lender on the face amount of a loan, computed in accordance 11
with § 12–107 of this subtitle. 12
(e) “Interest” means, except as specifically provided in § 12–105 of this subtitle 13
OR § 12–1501 OF THIS TITLE, any compensation directly or indirectly imposed by a lender 14
for the extension of credit for the use or forbearance of money, including any loan fee, 15
origination fee, service and carrying charge, investigator’s fee, time–price differential, and 16
any amount payable as a discount or point or otherwise payable for services. 17
(f) “Lender” means a licensee or a person who makes a loan subject to this 18
subtitle. 19
(g) “Licensee” means a person that is required to be licensed to make loans subject 20
to this subtitle, regardless of whether the person is actually licensed. 21
(h) (1) “Loan” means a loan or an advance of money or credit subject to this 22
subtitle, regardless of whether the loan or advance of money or credit is or purports to be 23
made under this subtitle. 24
(2) “Loan” does not include: 25
(i) A loan or advance of money or credit subject to Subtitle 3 of this 26
title, unless a written election is made under § 12–101.1 of this subtitle; 27
(ii) A plan or loan for which a written election is made under Subtitle 28
3, Subtitle 4, Subtitle 9, or Subtitle 10 of this title; or 29
(iii) An installment sale agreement as defined in § 12–601 of this 30
title. 31 HOUSE BILL 1294 3
[(h–1)] (I) “Mobile home” has the meaning stated in § 11–501 of the Financial 1
Institutions Article. 2
[(i)] (J) “Person” includes an individual, corporation, business trust, statutory 3
trust, estate, trust, partnership, association, two or more persons having a joint or common 4
interest, or any other legal or commercial entity. 5
[(j)] (K) “Point” means a fee, premium, bonus, loan origination fee, service 6
charge, or any other charge equal to 1 percent of the principal amount of a loan which is 7
charged by the lender at or before the time the loan is made as additional compensation for 8
the loan. 9
[(k)] (L) “Simple interest” means interest charged on the principal amount 10
loaned to the borrower. 11
[(l)] (M) “Stated rate of interest” means the annual rate of interest stated in 12
percentage which appears on the face of the bond, draft, mortgage, deed of trust, security 13
agreement, promissory note, or other instrument which evidences the indebtedness. 14
(N) (1) “TIP” MEANS A VOLUNTARY PA YMENT BY A CONSUMER TO A 15
LENDER OR THIRD PART Y WHO PROVIDES OR AR RANGES A LO AN: 16
(I) MADE AT THE TIME OF T HE TRANSACTION IN RE COGNITION 17
OF THE LENDER ’S OR THIRD PARTY ’S PROVISION OR ARRAN GEMENT OF THE LOAN ; 18
(II) MADE AT THE SOLE DISC RETION OF THE CONSUM ER; AND 19
(III) THAT DOES NOT AFFECT THE WILLINGNESS OF T HE LENDER 20
OR THIRD PARTY TO PROVI DE OR ARRANGE THE LO AN OR ANY FUTURE LOA N OR 21
AFFECT THE TERMS OF ANY LOAN. 22
(2) “TIP” DOES NOT INCLUDE ANY PAYMENT MADE BY A CO NSUMER 23
FOR EXPEDITED PROCES SING OR DISBURSEMENT OR FOR A MEMBERSHIP , 24
REGISTRATION , OR SUBSCRIPTION FEE . 25
[(m)] (O) “Usury” means the charging of interest by a lender in an amount which 26
is greater than that allowed by this subtitle. 27
[(n)] (P) “Wages” means all remuneration paid to any employee for the 28
employee’s employment, including the cash value of all remuneration paid in any medium 29
other than cash. 30
12–128. 31
4 HOUSE BILL 1294
(A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 1
LENDER A TIP SHALL : 2
(1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 3
ALLOCATED; AND 4
(2) SET THE DEFAULT TIP AT Z ERO. 5
(B) A LENDER MAY NOT DIRECTLY OR INDIRECTLY SUGGEST T HAT 6
PROVIDING A TIP WILL INFLUENCE: 7
(1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 8
CONSUMER AT ANY TIME ; OR 9
(2) THE TERMS OF ANY LOAN OFFERED TO THE CONSU MER BY THAT 10
LENDER. 11
(C) A LENDER WHO RECEIVES A TIP THAT WOULD OTHER WISE CREATE A 12
RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 13
FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 14
OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 15
AN AMOUNT A LLOWED UNDER THIS SU BTITLE WITHIN 30 CALENDAR DAYS AFTER 16
RECEIVING THE TIP . 17
(D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 18
(1) PROVIDING A TIP DOES NOT INFLUENCE THE LE NDER’S 19
WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 20
(2) ANY TIP PAID BY THE CONSUMER DOES NOT INURE TO TH E DIRECT 21
BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL. 22
12–301. 23
(a) In this subtitle the following words have the meanings indicated. 24
(b) “Commissioner” means the Commissioner of Financial Regulation. 25
(C) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 26
[(c)] (D) “Lender” means a licensee or a person who makes a loan subject to this 27
subtitle. 28
HOUSE BILL 1294 5
[(d)] (E) “Licensee” means a person who is required to be licensed under Title 1
11, Subtitle 2 of the Financial Institutions Article, the Maryland Consumer Loan Law 2
– Licensing Provisions, regardless of whether the person is actually licensed. 3
[(e)] (F) (1) “Loan” means any loan or advance of money or credit subject to 4
this subtitle, regardless of whether the loan or advance of money or credit is or purports to 5
be made under this subtitle. 6
(2) “Loan” does not include an installment sale agreement as defined in § 7
12–601 of this title. 8
[(f)] (G) “Person” includes an individual, corporation, business trust, statutory 9
trust, estate, trust, partnership, association, two or more persons having a joint or common 10
interest, or any other legal or commercial entity. 11
(H) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 12
[(g)] (I) “Wages” means all remuneration paid to any employee for the 13
employee’s employment, including the cash value of all remuneration paid in any medium 14
other than cash. 15
12–318. 16
(A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 17
LENDER A TIP SHALL: 18
(1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 19
ALLOCATED; AND 20
(2) SET THE DEFAULT TIP AT Z ERO. 21
(B) A LENDER MAY NOT DIREC TLY OR INDIRECTLY SU GGEST THAT 22
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 THE LENDE R RETURNS ALL OF THE TIP 30
OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 31 6 HOUSE BILL 1294
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 INFLUENCE THE LE NDER’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
12–319. 8
NOTWITHSTANDING ANY O THER PROVISION OF TH IS TITLE, A LOAN SHALL BE 9
SUBJECT TO THIS SUBT ITLE, WHETHER OR NOT ELECT ED, IF THE LOAN IS 10
CONSUMER –DIRECTED EARNED WAGE ACCESS UNDER SUBTITLE 15 OF THIS TITLE. 11
12–901. 12
(a) In this subtitle the following words have the meanings indicated. 13
(b) “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
(c) “Commercial loan” and “extension of credit for a commercial purpose” mean 17
an extension of credit made: 18
(1) Solely to acquire an interest in or to carry on a business or commercial 19
enterprise; or 20
(2) To any business or commercial organization. 21
(d) “Consumer borrower” means an individual receiving a loan or other extension 22
of credit under this subtitle for personal, household, or family purposes or an individual 23
receiving a commercial loan or other extension of credit for any commercial purpose not in 24
excess of $75,000, secured by residential real property. 25
(e) “Credit device” means any card, plate, check, draft, identification code, or 26
other means of identification contemplated by the agreement governing the plan. 27
(f) (1) “Credit grantor” means any individual, corporation, business trust, 28
statutory trust, estate, trust, partnership, association, two or more persons having a joint 29
or common interest, or any other legal or commercial entity making a loan or other 30
extension of credit under this subtitle which is incorporated, chartered, or licensed 31
pursuant to State or federal law, the lending operations of which are subject to supervision, 32 HOUSE BILL 1294 7
examination, and regulation by a State or federal agency or which is licensed under Title 1
12, Subtitle 4 of the Financial Institutions Article or is a retailer. 2
(2) “Credit grantor” includes: 3
(i) Any bank, trust company, depository institution, or savings bank 4
having a branch in this State; 5
(ii) Any subsidiary of a bank holding company, as defined in the 6
federal Bank Holding Company Act of 1956, as amended, which is domiciled, doing 7
business, and offering a revolving credit plan involving the issuance of credit devices in this 8
State; and 9
(iii) Any person who acquires or obtains the assignment of a revolving 10
credit plan made under this subtitle. 11
(G) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 12
[(g)] (H) (1) “Loan” means a cash advance to be paid to or for the account of 13
the borrower. 14
(2) “Loan” includes an advance made in accordance with the terms of a 15
shared appreciation agreement. 16
[(h)] (I) “Mobile home” has the meaning stated in § 11–501 of the Financial 17
Institutions Article. 18
[(i)] (J) “Nonconsumer borrower” means any borrower other than a consumer 19
borrower. 20
[(j)] (K) (1) “Outstanding unpaid indebtedness” means on any day the total 21
amount of purchases and loans charged to the borrower’s account under the plan which is 22
outstanding and unpaid at the end of the day, after adding the aggregate amount of any 23
new purchases and loans charged to the account that day and deducting the aggregate 24
amount of any payments and credits applied to the account that day. 25
(2) If the agreement governing the plan permits, “outstanding unpaid 26
indebtedness” may include the amount of any interest, finance charges, and additional 27
charges, including late or delinquency charges, that have accrued in the account and are 28
unpaid at the end of the day. 29
[(k)] (L) “Purchase” means an extension of credit for a purchase of real or 30
personal, tangible or intangible property, or an extension of credit for services, licenses, 31
taxes, official fees, fines, private or governmental obligations, or any other thing of value, 32
including a charitable contribution. 33
8 HOUSE BILL 1294
[(l)] (M) “Residential real property” means owner–occupied real property having 1
a dwelling on it designated principally as a residence with accommodations for not more 2
than four families. 3
[(m)] (N) “Revolving credit plan” or “plan” means a plan that contemplates the 4
extension of credit under an account governed by an agreement between a credit grantor 5
and a borrower under which: 6
(1) The credit grantor permits the borrower and, if the agreement 7
governing the plan permits, persons acting on behalf of or with authorization from the 8
borrower to make purchases or obtain loans from time to time; 9
(2) The amounts of purchases and loans are charged to the borrower’s 10
account; 11
(3) The borrower is required to pay the credit grantor the amounts of all 12
purchases and loans charged to the borrower’s account under the plan but has the privilege 13
of paying amounts due from time to time as agreed; and 14
(4) Interest or finance charges may be charged and collected by the credit 15
grantor from time to time on the amounts due under the plan. 16
[(n)] (O) “Shared appreciation agreement” has the meaning stated in § 11–501 17
of the Financial Institutions Article. 18
(P) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 19
12–927. 20
(A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 21
LENDER A TIP SHALL : 22
(1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 23
ALLOCATED; AND 24
(2) SET THE DEFAULT TIP A T ZERO. 25
(B) A LENDER MAY NOT SUGGE ST THAT PROVIDING A TIP WILL INFLUENCE : 26
(1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 27
CONSUMER AT ANY TIME ; OR 28
(2) THE TERMS OF ANY EARN ED WAGE ACCESS OFFER ED TO THE 29
CONSUMER BY THAT LEN DER. 30
HOUSE BILL 1294 9
(C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 1
RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 2
FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS ALL O F THE TIP 3
OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 4
AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 5
RECEIVING THE TIP . 6
(D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 7
(1) PROVIDING A T IP DOES NOT INFLUENC E THE LENDER ’S 8
WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 9
(2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 10
BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL. 11
12–1001. 12
(a) In this subtitle the following words have the meanings indicated. 13
(b) (1) “Balloon payment” means any scheduled payment on an installment 14
loan that is more than 2 times the average of all other payments scheduled to repay the 15
installment loan. 16
(2) “Balloon payment” does not include a down payment. 17
(c) “Borrower” means a corporation, partnership, association, government, or 18
governmental subdivision or agency, trust, individual, or other entity receiving a loan or 19
other extension of credit under this subtitle. 20
(d) “Closed end credit” means the extension of credit by a credit grantor to a 21
borrower under an arrangement or agreement which is not a revolving credit plan as 22
defined in Subtitle 9 of this title. 23
(e) “Commercial loan” and “extension of credit for a commercial purpose” mean 24
an extension of credit made: 25
(1) Solely to acquire an interest in or to carry on a business or commercial 26
enterprise; or 27
(2) To any business or commercial organization. 28
(f) “Consumer borrower” means an individual receiving a loan or other extension 29
of credit under this subtitle for personal, household, or family purposes or an individual 30
receiving a commercial loan or other extension of credit for any commercial purpose not in 31
excess of $75,000, secured by residential real property. 32
10 HOUSE BILL 1294
(g) (1) “Credit grantor” means any individual, corporation, business trust, 1
statutory trust, estate, trust, partnership, association, two or more persons having a joint 2
or common interest, or any other legal or commercial entity making a loan or other 3
extension of credit under this subtitle which is incorporated, chartered, or licensed 4
pursuant to State or federal law, the lending operations of which are subject to supervision, 5
examination, and regulation by a State or federal agency or which is licensed under Title 6
12, Subtitle 4 of the Financial Institutions Article or is a retailer. 7
(2) “Credit grantor” includes: 8
(i) Any bank, trust company, depository institution, or savings bank 9
having a branch in this State; 10
(ii) A person not required to be licensed under this subtitle, who is 11
exempt from the licensing provisions of Title 11, Subtitle 5 of the Financial Institutions 12
Article, who makes a loan or extension of credit under this subtitle secured by a secondary 13
mortgage on residential real property; and 14
(iii) Any person who acquires or obtains the assignment of an 15
agreement for an extension of credit made under this subtitle. 16
(h) “Debt cancellation agreement” means an agreement between a credit grantor 17
and a borrower which provides for cancellation of the remaining loan balance in the event 18
of theft or total destruction of the collateral for the loan minus the proceeds of any insurance 19
maintained on the collateral for the loan or, if the borrower does not have insurance, the 20
actual cash value of the collateral at the time of loss, determined as provided in the 21
agreement. 22
(i) “Installment loan” means a loan repayable in scheduled periodic payments of 23
principal and interest. 24
(J) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 25
[(j)] (K) (1) “Loan” means any single extension of closed end credit, whether 26
repayable in installments, on demand, or otherwise and whether extended in one or more 27
advances. 28
(2) “Loan” includes an advance made in accordance with the terms of a 29
shared appreciation agreement. 30
[(k)] (L) “Mechanical repair contract” has the meaning stated in Title 15, 31
Subtitle 3 of the Transportation Article. 32
[(l)] (M) “Mobile home” has the meaning stated in § 11–501 of the Financial 33
Institutions Article. 34
HOUSE BILL 1294 11
[(m)] (N) “Remaining loan balance”, when used in reference to a debt cancellation 1
agreement, does not include: 2
(1) Any delinquent or deferred payments; 3
(2) Past due charges; 4
(3) Late payment charges; 5
(4) Unearned interest; 6
(5) Unearned rental payments; 7
(6) The portion of any financed taxes or charges, including charges for 8
credit life insurance, credit health insurance, credit involuntary unemployment benefit 9
insurance, and mechanical repair contracts, actually refunded to the borrower or credited 10
as a reduction to the loan balance; or 11
(7) By agreement of the parties, the amount of any primary insurance 12
deductible. 13
[(n)] (O) “Residential real property” means owner–occupied real property having 14
a dwelling on it designated principally as a residence with accommodations for not more 15
than four families. 16
[(o)] (P) “Shared appreciation agreement” has the meaning stated in § 11–501 17
of the Financial Institutions Article. 18
(Q) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 19
12–1031. 20
(A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 21
LENDER A TIP SHALL : 22
(1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 23
ALLOCATED; AND 24
(2) SET THE DEFAULT TIP A T ZERO. 25
(B) A LENDER MAY NOT SUGGE ST THAT PROVIDING A TIP WILL INFLUENCE : 26
(1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 27
CONSUMER AT ANY TIME ; OR 28
12 HOUSE BILL 1294
(2) THE TERMS OF ANY LOAN OFFERED TO THE CONSU MER BY THAT 1
LENDER. 2
(C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 3
RATE OF INTEREST ABO VE THAT ALLOWED UNDER THIS S UBTITLE MAY NOT BE 4
FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 5
OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 6
AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 7
RECEIVING THE TIP. 8
(D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 9
(1) PROVIDING A TIP DOES NOT INFLUENCE THE LE NDER’S 10
WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 11
(2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 12
BENEFIT OF ANY SPECIFIC EMPLOYE E OF THE LENDER OR A NY OTHER INDIVIDUAL . 13
SUBTITLE 15. EARNED WAGE ACCESS. 14
12–1501. 15
(A) IN THIS SUBTITLE THE FOLLOWING TERMS HAVE THE MEANINGS 16
INDICATED. 17
(B) “BANK” HAS THE MEANING STAT ED IN § 1–201 OF THIS ARTICLE. 18
(C) “CONSUMER REPORTING AG ENCY” HAS THE MEANING STAT ED IN § 19
14–1201 OF THIS ARTICLE. 20
(D) “CONSUMER–DIRECTED EARNED WAGE ACCESS” MEANS DELIVERY TO A 21
CONSUMER OF ACCESS T O UNPAID BUT EARNED WAGES: 22
(1) THAT IS PROVIDED TO A CONSUMER BY A THIRD PARTY WHO DOE S 23
NOT HAVE A RELATIONS HIP WITH THE CONSUME R’S EMPLOYER; 24
(2) THAT IS BASED ON EMPL OYMENT, INCOME, OR ATTENDANCE 25
DATA OBTAINED DIRECT LY FROM THE CONSUMER ; AND 26
(3) WHERE THE CONSUMER DO ES NOT PAY THE PROVI DER INTEREST. 27
(E) “EARNED WAGE ” MEANS SALARY , WAGES, COMPENSATION , OR OTHER 28
INCOME EARNED : 29
HOUSE BILL 1294 13
(1) ON AN HOURLY, PROJECT–BASED, PIECEWORK, OR OTHER BASIS ; 1
OR 2
(2) THROUGH SERVICES REND ERED AS AN INDEPENDE NT 3
CONTRACTOR . 4
(F) “EARNED WAGE ACCESS ” MEANS: 5
(1) CONSUMER–DIRECTED EARNED WAGE ACCESS; OR 6
(2) EMPLOYER–INTEGRATED EARNED WA GE ACCESS. 7
(G) “EMPLOYER–INTEGRATED EARNED WA GE ACCESS” MEANS DELIVERY 8
OF UNPAID BUT EARNED WAGES: 9
(1) THAT ARE PROVIDED TO A CONSUMER DIRECTLY BY A PERSON 10
THE EMPLOYER HAS CON TRACTED TO PROVIDE T HE SERVICE; 11
(2) THAT ARE DETERMINED B ASED ON EMPLOYMENT , INCOME, OR 12
ATTENDANCE DATA OBTA INED DIRECTLY OR IND IRECTLY FROM THE CON SUMER’S 13
EMPLOYER, INCLUDING A PAYROLL SERVICE PROVIDER ; AND 14
(3) WHERE THE CONSUMER DO ES NOT PAY THE PROVI DER INTEREST. 15
(H) (1) “FEE” MEANS: 16
(I) A FEE IMPOSED BY A PRO VIDER FOR DELIVERY O R 17
EXPEDITED DELIVERY O F EARNED WAGE ACCESS TO A CONSUMER ; OR 18
(II) A SUBSCRIPTION OR MEMB ERSHIP FEE IMPOSED B Y A 19
PROVIDER FOR A GROUP OF SERVICES THAT INC LUDES EARNED WAGE AC CESS. 20
(2) “FEE” DOES NOT INCLUDE A VOLUNTARY TIP, GRATUITY, OR 21
OTHER DONATION . 22
(I) (1) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS 23
TITLE. 24
(2) “INTEREST” DOES NOT INCLUDE A F EE IMPOSED BY AN EAR NED 25
WAGE ACCESS PROVIDER LICENSED UNDER TITLE 11, SUBTITLE 2 OF THE 26
FINANCIAL INSTITUTIONS ARTICLE. 27
(J) (1) “LOAN” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 28
14 HOUSE BILL 1294
(2) “LOAN” INCLUDES EARNED WAGE ACCESS, SUBJECT TO THE 1
PROVISIONS OF THIS S UBTITLE. 2
(K) “PAYROLL PERIOD ” MEANS A PERIOD OF TI ME DURING WHICH A 3
CONSUMER EARNS WAGES THAT AN EMPLOY ER OWES TO THE EMPLO YEE AT THE END 4
OF THE PERIOD. 5
(L) “PROCEEDS” MEANS A PAYMENT TO A CONSUMER BY A PROVID ER THAT 6
IS BASED ON UNPAID B UT EARNED WAGES . 7
(M) (1) “PROVIDER” MEANS A PERSON WHO P ROVIDES TO CONSUMERS 8
EITHER CONSUMER –DIRECTED EARNED WAGE ACC ESS OR EMPLOYER –INTEGRATED 9
EARNED WAGE ACCESS . 10
(2) “PROVIDER” DOES NOT INCLUDE : 11
(I) A SERVICE PROVIDER , SUCH AS A PAYROLL SE RVICE 12
PROVIDER, THAT MAY VERIFY THE AVAILABLE EARNINGS O F A CONSUMER BUT THA T 13
IS NOT CONTRACTUALLY OBLIGATED TO FUND AN Y PROCEEDS DELIVERED AS PART 14
OF AN EARNED WAGE AC CESS SERVICE; OR 15
(II) AN EMPLOYER THAT OFFE RS A PORTION OF SALA RY, 16
WAGES, OR OTHER COMPENSATIO N DIRECTLY TO ITS EM PLOYEES OR INDEPENDE NT 17
CONTRACTORS BEFORE A NORMALLY SCHEDULED P AY DATE FOR A PAYROLL 18
PERIOD. 19
(N) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 20
(O) “WAGES” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 21
12–1502. 22
(A) A PERSON MAY NOT ENGAG E IN THE BUSINESS OF PROVIDING 23
EARNED WAGE ACCESS U NLESS THE PERSO N IS LICENSED UNDER OR IS EXEMPT 24
FROM THE LICENSING R EQUIREMENTS OF TITLE 11, SUBTITLE 2 OF THE FINANCIAL 25
INSTITUTIONS ARTICLE. 26
(B) FAILURE TO OBTAIN A C ONSUMER LOAN LICENSE SHALL SUBJECT A 27
PROVIDER TO THE ENFO RCEMENT PROVISIONS O F TITLE 11, SUBTITLE 2 OF THE 28
FINANCIAL INSTITUTIONS ARTICLE. 29
(C) AN EARNED WAGE ACCESS PROVIDER LICENSED UN DER TITLE 11, 30
SUBTITLE 2 OF THE FINANCIAL INSTITUTIONS ARTICLE AND SUBJECT T O THIS 31
SUBTITLE IS EXEMPT F ROM OTHER PROVISIONS OF STATE LAW GOVERNING 32 HOUSE BILL 1294 15
LENDING, CREDIT, OR DEBT, INCLUDING THE PROVIS IONS OF SUBTITLE 1, 1
SUBTITLE 3, SUBTITLE 9, AND SUBTITLE 10 OF THIS TITLE. 2
(D) EARNED WAGE ACCESS SE RVICES PROVIDED IN A CCORDANCE WITH 3
THIS SUBTITLE MAY NO T BE CONSIDERED : 4
(1) A MONEY TRANSMISSION ; OR 5
(2) A VIOLATION OF OR NONCOMPLIANCE WITH STATE LAWS 6
GOVERNING DEDUCTIONS FROM PAYROLL , SALARY, WAGES, COMPENSATION , OR 7
OTHER INCOME OR THE PURCHASE, SALE, ASSIGNMENT , OR ORDER FOR UNPAID BUT 8
EARNED WAGES . 9
12–1503. 10
(A) A PROVIDER OF EARNED W AGE ACCESS SHALL : 11
(1) DEVELOP AN D IMPLEMENT POLICIES AND PROCEDURES TO 12
RESPOND TO QUESTIONS RAISED BY CONSUMERS ; 13
(2) ADDRESS COMPLAINTS FR OM CONSUMERS IN AN E XPEDIENT 14
MANNER; 15
(3) WHENEVER THE PROVIDER OFFERS A CONSUMER TH E OPTION TO 16
RECEIVE EARNED WAGE ACCESS SERVICES FOR A FEE OR SOLICITS AN OPTIONAL 17
TIP, GRATUITY, OR OTHER DONATION , OFFER TO THE CONSUME R AT LEAST ONE 18
REASONABLE OPTION TO OBTAIN EARNED WAGE A CCESS AT NO COST TO THE 19
CONSUMER ; 20
(4) CLEARLY EXPLAIN TO A CONSUMER HOW TO ELEC T A NO–COST 21
OPTION DESCRIBED IN ITEM (3) OF THIS SUBSECTION ; 22
(5) BEFORE ENTERING INTO AN AGREEMENT WITH A CONSUMER FOR 23
THE PROVISION OF EAR NED WAGE ACCESS SERV ICES: 24
(I) INFORM THE CONSUMER O F THE CONSUMER ’S RIGHTS 25
UNDER THE AGREEMENT ; AND 26
(II) FULLY AND CLEARLY DIS CLOSE ALL FEES ASSOCIATED 27
WITH THE EARNED WAGE ACCESS SERVICES ; 28
(6) INFORM A CONSUMER OF ANY MATERIAL CHANGES TO THE TERMS 29
AND CONDITIONS OF TH E EARNED WAGE ACCESS SERVICES BEFORE IMPL EMENTING 30
THOSE CHANGES FOR TH AT CONSUMER ; 31 16 HOUSE BILL 1294
(7) ALLOW A CONSUMER TO C ANCEL USE OF T HE PROVIDER ’S 1
EARNED WAGE ACCESS S ERVICES AT ANY TIME WITHOUT INCURRING A 2
CANCELLATION FEE IMP OSED BY THE PROVIDER ; 3
(8) COMPLY WITH ALL APPLI CABLE LOCAL , STATE, AND FEDERAL 4
PRIVACY AND INFORMAT ION SECURITY LAWS ; 5
(9) IF A PROVIDER SOLICIT S, CHARGES, OR RECEIVES A TIP , 6
GRATUITY, OR OTHER DONATION FR OM A CONSUMER : 7
(I) SET THE DEFAULT TIP , IF ANY, AT ZERO; 8
(II) CLEARLY AND CONSPICUO USLY DISCLOSE TO THE 9
CONSUMER IMMEDIATELY PRIOR TO EACH TRANSA CTION THAT ANY TIP P AID BY THE 10
CONSUMER DOES NOT IN URE TO THE DIRECT BENEFI T OF ANY SPECIFIC EM PLOYEE 11
OF THE PROVIDER OR A NY OTHER INDIVIDUAL ; 12
(III) CLEARLY AND CONSPICUO USLY DISCLOSE TO THE 13
CONSUMER IMMEDIATELY PRIOR TO EACH TRANSA CTION THAT A TIP, GRATUITY, OR 14
OTHER DONATION AMOUN T IS OPTIONAL AND VO LUNTARY; AND 15
(IV) CLEARLY AND CONSPICUO USLY DISCLOSE IN THE 16
PROVIDER’S SERVICE CONTRACT W ITH THE CONSUMER THA T: 17
1. TIPS, GRATUITIES, OR OTHER DONATIONS A RE 18
VOLUNTARY ; AND 19
2. THE OFFERING OF EARNE D WAGE ACCESS SERVIC ES, 20
INCLUDING THE AMOUNT OF PROCEEDS A CONSUMER IS ELIGIBLE TO REQUEST AND 21
THE FREQUENCY WITH W HICH PROCEEDS ARE PR OVIDED TO A CONSUMER , IS NOT 22
CONTINGENT ON WHETHE R THE CONSUMER PAYS ANY TIP, GRATUITY, OR OTHER 23
DONATION OR ON THE S IZE OF THE TIP, GRATUITY, OR OTHER DONATION ; 24
(10) PROVIDE PROCEEDS TO A CONSUMER BY ANY MEAN S MUTUALLY 25
AGREED UPON BY THE C ONSUMER AND THE PROV IDER; AND 26
(11) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , IF 27
THE PROVIDER WILL SE EK REPAYMENT OF OUTS TANDING PROCEEDS OR PAYMENT 28
OF FEES OR OTHER AMO UNTS OWED OR INCURRED , INCLUDING VOLUNTARY TIPS, 29
GRATUITIES, OR OTHER DONATIONS , FROM A CONSUMER ’S ACCOUNT AT A BANK IN 30
CONNECTION WITH EARN ED WAGE ACCESS SERVI CES COVERED BY THIS SUBTITLE, 31
INCLUDING BY MEANS O F ELECTRIC FUND TRAN SFER: 32
HOUSE BILL 1294 17
(I) COMPLY WITH T HE FEDERAL ELECTRONIC FUND 1
TRANSFER ACT AND REGULATIONS A DOPTED TO IMPLEMENT THE ACT; AND 2
(II) REIMBURSE THE CONSUME R WITHIN 5 BUSINESS DAYS FOR 3
THE FULL AMOUNT OF A NY OVERDRAFT OR NONS UFFICIENT FUND FEES IMPOSED 4
ON A CONSUMER BY THE CONSUMER ’S BANK THAT WERE CAUSED BY TH E PROVIDER 5
ATTEMPTING TO SEEK R EPAYMENT OF ANY OUTS TANDING PROCEEDS OR PAYMENT 6
OF FEES, TIPS, GRATUITIES, OR OTHER DONATIONS I N CONNECTION WITH EA RNED 7
WAGE ACCESS SERVICES COVERED BY THIS SUBT ITLE. 8
(B) SUBSECTION (A)(11) OF THIS SECTION DOES NOT APP LY TO A PROVIDER 9
SEEKING REPAYMENT OF OUTSTANDING PROCEEDS OR PAYMENT OF FEES O R 10
OTHER AMOUNTS OWED T HAT WERE RECEIVED OR INCURRED BY A CONSUM ER 11
THROUGH FRAUDULENT O R OTHER UNLAWFUL MEA NS. 12
12–1504. 13
A PROVIDER OF EARNED W AGE ACCESS MAY NOT: 14
(1) SHARE WITH AN EMPLOYE R ANY FEES, TIPS, OR OTHER CHARGES 15
RECEIVED FROM A CONS UMER FOR EARNED WAGE ACCESS; 16
(2) CONDITION A CONSUMER ’S ABILITY TO OBTAIN EARNED WAGE 17
ACCESS ON THE CONSUM ER’S ABILITY OR WILLING NESS TO PAY THE PROV IDER A 18
TIP; 19
(3) CHARGE A CONSUMER A LATE FEE, INTEREST, OR OTHER 20
PENALTY FOR FAILURE TO PAY ANY PROCEEDS , FEES, OR TIPS; 21
(4) REPORT ANY INFORMATIO N ABOUT A CONSUMER ’S FAILURE TO 22
PAY ANY PROCEEDS , FEES, OR TIPS TO ANY CONSU MER REPORTING AGENCY ; 23
(5) OBTAIN A CO NSUMER’S CREDIT REPORT AS A METHOD OF 24
QUALIFYING THE CONSU MER FOR EARNED WAGE ACCESS; 25
(6) RECEIVE INTEREST FROM A CONSUMER ; OR 26
(7) COMPEL OR ATTEMPT TO COMPEL PAYMENT BY A CONSUMER OF 27
ANY PROCEEDS , FEES, TIPS, GRATUITIES, OR OTHER DONATIONS T HROUGH: 28
(I) A CIVIL ACTION AGAINST THE CONSUMER ; 29
(II) THE USE OF A THIRD PA RTY TO PURSUE COLLEC TION FROM 30
THE CONSUMER ON THE PROVIDER’S BEHALF; OR 31 18 HOUSE BILL 1294
(III) THE SALE OR ASSIGNMEN T OF OUTSTANDING AMO UNTS TO 1
A THIRD–PARTY COLLECTOR OR D EBT BUYER FOR COLLEC TION FROM THE 2
CONSUMER . 3
12–1505. 4
A PROVIDER OF EARNED W AGE ACCESS MAY CHARG E A FEE FOR DELIVERY OR 5
EXPEDITED DELIVERY O F EARNED WAGE ACCESS TO A CONSUMER NOT EXCEEDING : 6
(1) $5.00 FOR ANY ADVANCE OF P ROCEEDS EQUAL TO OR LESS THAN 7
$75.00; OR 8
(2) $7.50 FOR ANY ADVANCE OF P ROCEEDS GREATER THAN $75.00. 9
12–1506. 10
ON OR BEFORE JULY 1 EACH YEAR, BEGINNING IN 2026, A PROVIDER OF 11
EARNED WAGE ACCESS S HALL SUBMIT A REPORT TO THE OFFICE OF FINANCIAL 12
REGULATION THAT INCLU DES ANY INFORMATION CONSIDERED NECESSARY BY THE 13
COMMISSIONER , AS PRESCRIBED BY REG ULATION, TO ASSESS THE SIZE A ND STATUS 14
OF THE EARNED WAGE A CCESS MARKET IN THE STATE. 15
12–1507. 16
THE COMMISSIONER MAY ADOP T REGULATIONS TO CAR RY OUT THIS 17
SUBTITLE. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2025. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.