Texas 2023 - 88th Regular

Texas House Bill HB3827 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R20958 JES-F
2	2	By: Lambert H.B. No. 3827
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of earned wage access services;
8	8	requiring an occupational license; providing an administrative
9	9	penalty; imposing fees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 14.107, Finance Code, is amended to read
12	12	as follows:
13	13	Sec. 14.107. FEES. (a) The finance commission shall
14	14	establish reasonable and necessary fees for carrying out the
15	15	commissioner's powers and duties under this chapter, Title 4,
16	16	Chapter 393 with respect to a credit access business, and Chapters
17	17	371, 392, [and] 394, and 398 and under Chapters 51, 302, 601, and
18	18	621, Business & Commerce Code.
19	19	(b) The finance commission by rule shall set the fees for
20	20	licensing and examination, as applicable, under Chapter 393 with
21	21	respect to a credit access business or Chapter 342, 347, 348, 351,
22	22	353, [or] 371, or 398 at amounts or rates necessary to recover the
23	23	costs of administering those chapters. The rules may provide that
24	24	the amount of a fee charged to a license holder is based on the
25	25	volume of the license holder's regulated business and other key
26	26	factors. The commissioner may provide for collection of a single
27	27	fee for the term of the license from a person licensed under
28	28	Subchapter G of Chapter 393 or Chapter 342, 347, 348, 351, or
29	29	371. The fee must include amounts due for both licensing and
30	30	examination.
31	31	SECTION 2. Section 14.112(a), Finance Code, is amended to
32	32	read as follows:
33	33	(a) The finance commission by rule shall prescribe the
34	34	licensing or registration period for licenses and registrations
35	35	issued under Chapters 342, 345, 347, 348, 351, 352, 353, 371, 393,
36	36	[and] 394, and 398 of this code and Chapter 1956, Occupations Code,
37	37	not to exceed two years.
38	38	SECTION 3. Section 14.201, Finance Code, is amended to read
39	39	as follows:
40	40	Sec. 14.201. INVESTIGATION AND ENFORCEMENT AUTHORITY.
41	41	Investigative and enforcement authority under this subchapter
42	42	applies only to:
43	43	(1) this chapter;
44	44	(2) Subtitles B and C, Title 4;
45	45	(3) Chapter 393 with respect to a credit access
46	46	business;
47	47	(4) Chapter 394;
48	48	(5) Chapter 398; and
49	49	(6) [(5)] Subchapter B, Chapter 1956, Occupations
50	50	Code.
51	51	SECTION 4. Sections 14.251(a) and (b), Finance Code, are
52	52	amended to read as follows:
53	53	(a) The commissioner may assess an administrative penalty
54	54	against a person who knowingly and wilfully violates or causes a
55	55	violation of this chapter, Chapter 394, Chapter 398, or Subtitle B,
56	56	Title 4, or a rule adopted under this chapter, Chapter 394, Chapter
57	57	398, or Subtitle B, Title 4.
58	58	(b) The commissioner may order the following businesses or
59	59	other persons to pay restitution to an identifiable person:
60	60	(1) a person who violates or causes a violation of this
61	61	chapter, Chapter 394, or Subtitle B, Title 4, or a rule adopted
62	62	under this chapter, Chapter 394, or Subtitle B, Title 4;
63	63	(2) a credit access business who violates or causes a
64	64	violation of Chapter 393 or a rule adopted under Chapter 393;
65	65	(3) an earned wage access services provider who
66	66	violates or causes a violation of Chapter 398 or a rule adopted
67	67	under Chapter 398; or
68	68	(4) [(3)] a person who violates or causes a violation
69	69	of Subchapter B, Chapter 1956, Occupations Code, or a rule adopted
70	70	under that subchapter.
71	71	SECTION 5. Title 5, Finance Code, is amended by adding
72	72	Chapter 398 to read as follows:
73	73	CHAPTER 398. EARNED WAGE ACCESS SERVICES
74	74	SUBCHAPTER A. GENERAL PROVISIONS
75	75	Sec. 398.001. DEFINITIONS. In this chapter:
76	76	(1) "Commissioner" means the consumer credit
77	77	commissioner.
78	78	(2) "Consumer" means an individual who resides in this
79	79	state.
80	80	(3) "Consumer-directed wage access services" means
81	81	offering or providing services directly to a consumer based on the
82	82	consumer's earned but unpaid income.
83	83	(4) "Earned but unpaid income" means salary, wages,
84	84	compensation, or income that:
85	85	(A) a consumer represents, and a provider
86	86	reasonably determines, has been earned or has accrued to the
87	87	benefit of the consumer in exchange for the consumer's provision of
88	88	services to an employer or on the employer's behalf; and
89	89	(B) has not, at the time of the payment of
90	90	proceeds, been paid to the consumer by the employer.
91	91	(5) "Earned wage access services" means the business
92	92	of providing:
93	93	(A) consumer-directed wage access services;
94	94	(B) employer-integrated wage access services; or
95	95	(C) both consumer-directed wage access services
96	96	and employer-integrated wage access services.
97	97	(6) "Earned wage access services provider" or
98	98	"provider" means a person who is in the business of offering and
99	99	providing earned wage access services to consumers.
100	100	(7) "Employer" means a person who employs a consumer
101	101	or a person who is contractually obligated to pay a consumer earned
102	102	but unpaid income on an hourly, project-based, piecework, or other
103	103	basis, in exchange for the consumer's provision of services to the
104	104	employer or on the employer's behalf, including to a consumer who is
105	105	acting as an independent contractor with respect to the employer.
106	106	The term does not include a customer of the employer or a person
107	107	whose obligation to pay salary, wages, compensation, or other
108	108	income to a consumer is not based on the consumer's provision of
109	109	services for or on behalf of that person.
110	110	(8) "Employer-integrated wage access services" means
111	111	delivering to consumers access to earned but unpaid income that is
112	112	based on employment, income, and attendance data obtained directly
113	113	or indirectly from an employer.
114	114	(9) "Fee" includes an amount charged by a provider for
115	115	expedited delivery or other delivery of proceeds to a consumer and
116	116	for a subscription or membership fee charged by a provider for a
117	117	bona fide group of services that includes earned wage access
118	118	services. The term does not include a voluntary tip, gratuity, or
119	119	donation paid to the provider.
120	120	(10) "Outstanding proceeds" means proceeds remitted
121	121	to a consumer by a provider that have not been repaid to that
122	122	provider.
123	123	(11) "Person" means a corporation, partnership,
124	124	cooperative, association, or other business entity.
125	125	(12) "Proceeds" means a payment to a consumer by a
126	126	provider that is based on earned but unpaid income.
127	127	Sec. 398.002. APPLICABILITY OF AND CONFLICT WITH OTHER LAW.
128	128	(a) A person licensed under this chapter is not subject to the
129	129	provisions of Chapter 151 or Title 4 of this code with respect to
130	130	earned wage access services offered or provided by the person.
131	131	(b) If there is a conflict between a provision of this
132	132	chapter and any other provision of this title, the provision of this
133	133	chapter controls.
134	134	Sec. 398.003. WAIVER VOID. A waiver of a provision of this
135	135	chapter by a consumer is void.
136	136	SUBCHAPTER B. LICENSE REQUIRED; APPLICATION FOR AND ISSUANCE OF
137	137	LICENSE
138	138	Sec. 398.051. LICENSE REQUIRED. (a) Except as provided by
139	139	Subsection (c), a person must hold a license under this chapter to
140	140	engage in the business of offering or providing earned wage access
141	141	services in this state.
142	142	(b) A person may not use any device, subterfuge, or pretense
143	143	to evade the application of this section.
144	144	(c) The following persons are not required to obtain a
145	145	license under Subsection (a):
146	146	(1) a bank, credit union, savings bank, or savings and
147	147	loan association organized under the laws of the United States or
148	148	under the laws of the financial institution's state of domicile; or
149	149	(2) an employer that offers a portion of salary,
150	150	wages, or compensation directly to its employees or independent
151	151	contractors before the normally scheduled pay date.
152	152	Sec. 398.052. APPLICATION REQUIREMENTS; FEES. (a) The
153	153	application for a license under this chapter must:
154	154	(1) be under oath;
155	155	(2) give the approximate location from which the
156	156	business is to be conducted or state that the business will be
157	157	conducted entirely online;
158	158	(3) identify the business's principal parties in
159	159	interest; and
160	160	(4) contain other relevant information that the
161	161	commissioner requires.
162	162	(b) On the filing of one or more license applications, the
163	163	applicant shall pay to the commissioner an investigation fee of
164	164	$200.
165	165	(c) On the filing of each license application, the applicant
166	166	shall pay to the commissioner a license fee in an amount determined
167	167	as provided by Section 14.107.
168	168	Sec. 398.053. BOND. (a) If the commissioner requires, an
169	169	applicant for a license under this chapter shall file with the
170	170	application a bond that is:
171	171	(1) in the amount of $10,000, regardless of the number
172	172	of license applications filed by the applicant;
173	173	(2) satisfactory to the commissioner; and
174	174	(3) issued by a surety company qualified to do
175	175	business as a surety in this state.
176	176	(b) The bond must be in favor of this state for the use of
177	177	this state and the use of a person who has a cause of action under
178	178	this chapter against the license holder.
179	179	(c) The bond must be conditioned on:
180	180	(1) the license holder's faithful performance under
181	181	this chapter and rules adopted under this chapter; and
182	182	(2) the payment of all amounts that become due to this
183	183	state or another person under this chapter during the period for
184	184	which the bond is given.
185	185	(d) The aggregate liability of a surety to all persons
186	186	damaged by the license holder's violation of this chapter may not
187	187	exceed the amount of the bond.
188	188	Sec. 398.054. INVESTIGATION OF APPLICATION. On the filing
189	189	of an application and a bond, if required under Section 398.053, and
190	190	on payment of the required fees, the commissioner shall conduct an
191	191	investigation to determine whether to issue the license.
192	192	Sec. 398.055. APPROVAL OR DENIAL OF APPLICATION; ISSUANCE
193	193	OF LICENSE. (a) The commissioner shall approve the application and
194	194	issue to the applicant a license under this chapter if the
195	195	commissioner finds that:
196	196	(1) the financial responsibility, experience,
197	197	character, and general fitness of the applicant are sufficient to:
198	198	(A) command the confidence of the public; and
199	199	(B) warrant the belief that the business will be
200	200	operated lawfully and fairly, within the purposes of this chapter;
201	201	and
202	202	(2) the applicant has net assets of at least $25,000
203	203	available for the operation of the business as determined in
204	204	accordance with Section 398.103.
205	205	(b) If the commissioner does not find the eligibility
206	206	requirements of Subsection (a) are met, the commissioner shall
207	207	notify the applicant.
208	208	(c) If an applicant requests a hearing on the application
209	209	not later than the 30th day after the date of notification under
210	210	Subsection (b), the applicant is entitled to a hearing not later
211	211	than the 60th day after the date of the request.
212	212	(d) The commissioner shall approve or deny the application
213	213	not later than the 60th day after the date of the filing of a
214	214	completed application with payment of the required fees or, if a
215	215	hearing is held, after the date of the completion of the hearing on
216	216	the application. The commissioner and the applicant may agree to a
217	217	later date in writing.
218	218	Sec. 398.056. DISPOSITION OF FEES ON DENIAL OF APPLICATION.
219	219	If the commissioner denies the application, the commissioner shall
220	220	retain the investigation fee and shall return to the applicant the
221	221	license fee submitted with the application.
222	222	Sec. 398.057. LICENSE TERM. A license issued under this
223	223	chapter is valid for the period prescribed by finance commission
224	224	rule adopted under Section 14.112.
225	225	SUBCHAPTER C. LICENSE
226	226	Sec. 398.101. NAME AND PLACE ON LICENSE. (a) A license
227	227	must state:
228	228	(1) the name of the license holder; and
229	229	(2) the address of the office from which the business
230	230	is to be conducted or, if the business is to be conducted entirely
231	231	online, the address of the license holder's headquarters.
232	232	(b) A license holder may not conduct business under this
233	233	chapter under a name other than the name stated on the license.
234	234	(c) A license holder may not conduct business under this
235	235	chapter at a location other than the address stated on the license,
236	236	unless the business is to be conducted entirely online.
237	237	Sec. 398.102. LICENSE DISPLAY. A license holder shall
238	238	display a license at the place of business provided on the license
239	239	or include its license number on the business's Internet website if
240	240	it conducts business online.
241	241	Sec. 398.103. MINIMUM ASSETS FOR LICENSE. A license holder
242	242	shall maintain for each office for which a license is held net
243	243	assets of at least $25,000 that are used or readily available for
244	244	use in conducting the business of that office. A license holder
245	245	that operates entirely online shall maintain net assets of at least
246	246	$25,000.
247	247	Sec. 398.104. LICENSE FEE. Not later than the 30th day
248	248	before the date the license expires, a license holder shall pay to
249	249	the commissioner for each license held a fee in an amount determined
250	250	as provided by Section 14.107.
251	251	Sec. 398.105. EXPIRATION OF LICENSE ON FAILURE TO PAY FEE.
252	252	If the fee for a license is not paid before the 16th day after the
253	253	date on which the written notice of delinquency of payment has been
254	254	given to the license holder, the license expires on that day.
255	255	Sec. 398.106. GROUNDS FOR REFUSING LICENSE RENEWAL. The
256	256	commissioner may refuse to renew the license of a person who fails
257	257	to comply with an order issued by the commissioner to enforce this
258	258	chapter.
259	259	Sec. 398.107. LICENSE SUSPENSION OR REVOCATION. After
260	260	notice and opportunity for a hearing, the commissioner may suspend
261	261	or revoke a license if the commissioner finds that:
262	262	(1) the license holder failed to pay the license fee,
263	263	an examination fee, an investigation fee, or another charge imposed
264	264	by the commissioner under this chapter;
265	265	(2) the license holder, knowingly or without the
266	266	exercise of due care, violated this chapter or a rule adopted or
267	267	order issued under this chapter; or
268	268	(3) a fact or condition exists that, if it had existed
269	269	or had been known to exist at the time of the original application
270	270	for the license, clearly would have justified the commissioner's
271	271	denial of the application.
272	272	Sec. 398.108. CORPORATE CHARTER FORFEITURE. (a) A license
273	273	holder who violates this chapter is subject to revocation of the
274	274	holder's license and, if the license holder is a corporation,
275	275	forfeiture of the corporation's charter.
276	276	(b) When the attorney general is notified of a violation of
277	277	this chapter and revocation of a license, the attorney general
278	278	shall file suit in a district court in Travis County, if the license
279	279	holder is a corporation, for forfeiture of the license holder's
280	280	charter.
281	281	Sec. 398.109. LICENSE SUSPENSION OR REVOCATION FILED WITH
282	282	PUBLIC RECORDS. The decision of the commissioner on the suspension
283	283	or revocation of a license and the evidence considered by the
284	284	commissioner in making the decision shall be filed in the public
285	285	records of the commissioner.
286	286	Sec. 398.110. REINSTATEMENT OF SUSPENDED LICENSE; ISSUANCE
287	287	OF NEW LICENSE AFTER REVOCATION. The commissioner may reinstate a
288	288	suspended license or issue a new license on application to a person
289	289	whose license has been revoked if at the time of the reinstatement
290	290	or issuance no fact or condition exists that clearly would have
291	291	justified the commissioner's denial of an original application for
292	292	the license.
293	293	Sec. 398.111. SURRENDER OF LICENSE. A license holder may
294	294	surrender a license issued under this chapter by complying with the
295	295	commissioner's written instructions relating to the surrender.
296	296	Sec. 398.112. EFFECT OF LICENSE SUSPENSION, REVOCATION, OR
297	297	SURRENDER. (a) The suspension, revocation, or surrender of a
298	298	license issued under this chapter does not affect the obligation of
299	299	a contract between the license holder and a consumer entered into
300	300	before the revocation, suspension, or surrender.
301	301	(b) Surrender of a license does not affect the license
302	302	holder's civil or criminal liability for an act committed before
303	303	surrender.
304	304	Sec. 398.113. MOVING AN OFFICE. (a) A license holder shall
305	305	give written notice to the commissioner before the 30th day
306	306	preceding the date the license holder moves an office from the
307	307	location provided on the license.
308	308	(b) The commissioner shall amend a license holder's license
309	309	accordingly.
310	310	Sec. 398.114. TRANSFER OR ASSIGNMENT OF LICENSE. A license
311	311	may be transferred or assigned only with the approval of the
312	312	commissioner.
313	313	SUBCHAPTER D. LIMITING LIABILITY BY LATE LICENSURE
314	314	Sec. 398.151. PAYMENT OF FEES. A person who obtains or
315	315	renews a license under this chapter after the date on which the
316	316	person was required to obtain or renew the license may limit the
317	317	person's liability as provided by this subchapter by paying to the
318	318	commissioner:
319	319	(1) all prior license fees that the person should have
320	320	paid under this chapter; and
321	321	(2) a late filing fee as provided by Section 398.152.
322	322	Sec. 398.152. LATE FILING FEE FOR OBTAINING OR RENEWING
323	323	LICENSE. (a) The late filing fee for renewing an expired license
324	324	is $1,000 if the license:
325	325	(1) was in good standing when it expired; and
326	326	(2) is renewed not later than the 180th day after its
327	327	expiration date.
328	328	(b) The late filing fee is $5,000 for:
329	329	(1) obtaining a license after the time it is required
330	330	under this chapter; or
331	331	(2) renewing an expired license to which Subsection
332	332	(a) does not apply.
333	333	Sec. 398.153. EFFECT OF COMPLIANCE WITH SUBCHAPTER FOR
334	334	LICENSE HOLDER. (a) A person who renews an expired license and
335	335	pays the applicable license fees and, if required, a late filing fee
336	336	as provided by Section 398.152 is considered for all purposes to
337	337	have held the required license as if it had not expired.
338	338	(b) A person who under this section is considered to have
339	339	held a license is not subject to any liability, forfeiture, or
340	340	penalty, other than as provided by this subchapter, relating to the
341	341	person's not holding a license during the period for which the
342	342	license fees and late filing fee are paid under Section 398.152.
343	343	Sec. 398.154. EFFECT OF COMPLIANCE WITH SUBCHAPTER ON
344	344	PERSON OTHER THAN LICENSE HOLDER. A benefit provided to a person
345	345	under Section 398.153 also applies to that person's employees or
346	346	other agents, employers, predecessors, successors, and assigns but
347	347	does not apply to any other person required to be licensed under
348	348	this title.
349	349	SUBCHAPTER E. DISCLOSURE STATEMENT
350	350	Sec. 398.201. DISCLOSURE STATEMENT. (a) Before executing
351	351	a contract with a consumer for the provision of earned wage access
352	352	services, an earned wage access services provider shall provide the
353	353	consumer with a disclosure that:
354	354	(1) may be in written or electronic form;
355	355	(2) may be included as part of the contract to provide
356	356	earned wage access services;
357	357	(3) uses a font and language intended to be easily
358	358	understood by a layperson;
359	359	(4) informs the consumer of the consumer's rights
360	360	under the contract;
361	361	(5) fully and clearly discloses each fee associated
362	362	with the earned wage access services;
363	363	(6) includes an explanation of the consumer's right to
364	364	proceed against the surety bond under Section 398.053; and
365	365	(7) provides the name and address of the surety
366	366	company that issued the surety bond.
367	367	(b) An earned wage access services provider must notify a
368	368	consumer of any material change to the information provided in a
369	369	disclosure statement under Subsection (a) to that consumer, using a
370	370	font and language intended to be easily understood by a layperson,
371	371	before implementing the particular change with respect to that
372	372	consumer.
373	373	Sec. 398.202. COPY OF DISCLOSURE STATEMENT. An earned wage
374	374	access services provider shall keep in its files a copy of the
375	375	disclosure statement, including any notifications of material
376	376	changes to the statement, required under Section 398.201 that
377	377	includes the consumer's written or digital signature acknowledging
378	378	receipt of the disclosure statement or notification until the
379	379	second anniversary of the date on which the provider provides the
380	380	disclosure or notification.
381	381	SUBCHAPTER F. CONTRACT FOR SERVICES
382	382	Sec. 398.251. FORM AND TERMS OF CONTRACT. (a) Each
383	383	contract for the provision of earned wage access services to a
384	384	consumer by a provider may be in writing or electronic form and
385	385	must:
386	386	(1) be dated;
387	387	(2) include the written or digital signature of the
388	388	consumer; and
389	389	(3) use a font and language intended to be easily
390	390	understood by a layperson.
391	391	(b) Each contract must disclose that:
392	392	(1) the provider is required to offer the consumer at
393	393	least one reasonable option to obtain proceeds at no cost to the
394	394	consumer and clearly explain how to elect that no-cost option;
395	395	(2) fee obligations are subject to the limitations on
396	396	compelling or attempting to compel repayment under Section
397	397	398.301(a)(6);
398	398	(3) proceeds will be provided to the consumer using a
399	399	method agreed to by the consumer and the provider;
400	400	(4) the consumer may cancel at any time the consumer's
401	401	participation in the provider's earned wage access services without
402	402	incurring a cancellation fee;
403	403	(5) the provider is required to develop and implement
404	404	policies and procedures to respond to questions asked and concerns
405	405	raised by consumers and to address complaints from consumers in an
406	406	expedient manner;
407	407	(6) if a provider seeks repayment of outstanding
408	408	proceeds, a fee, or another payment from a consumer, including a
409	409	voluntary tip, gratuity, or other donation, from a consumer's
410	410	account at a depository institution, including through an
411	411	electronic funds transfer, the provider must:
412	412	(A) comply with applicable provisions of and
413	413	regulations adopted under the federal Electronic Fund Transfer Act
414	414	(15 U.S.C. Section 1693 et seq.); and
415	415	(B) unless the payment sought by the provider was
416	416	incurred by the consumer using fraudulent or unlawful means,
417	417	reimburse the consumer for the full amount of any overdraft or
418	418	non-sufficient funds fees imposed on the consumer by the consumer's
419	419	depository institution if the provider attempts to seek any payment
420	420	from the consumer on a date before, or in a different amount from,
421	421	the date or amount disclosed to the consumer for that payment;
422	422	(7) the provider is required to comply with all local,
423	423	state, and federal privacy and information security laws; and
424	424	(8) if the provider solicits, charges, or receives a
425	425	tip, gratuity, or donation from the consumer, the provider:
426	426	(A) must clearly and conspicuously disclose to
427	427	the consumer immediately before each transaction that the tip,
428	428	gratuity, or donation is voluntary and may be set to zero by the
429	429	consumer;
430	430	(B) must clearly and conspicuously disclose in
431	431	the contract and other service contracts with consumers that any
432	432	tip, gratuity, or donation from a consumer to a provider is
433	433	voluntary and the offering of earned wage access services,
434	434	including the amount of proceeds a consumer is eligible to request
435	435	and the frequency with which proceeds are provided to a consumer, is
436	436	not contingent on whether a consumer pays any tip, gratuity, or
437	437	donation or on the size of any tip, gratuity, or donation;
438	438	(C) may not mislead or deceive the consumer
439	439	regarding the voluntary nature of the tip, gratuity, or donation;
440	440	and
441	441	(D) may not represent that the tip, gratuity, or
442	442	donation will benefit a specific individual.
443	443	Sec. 398.252. ISSUANCE OF CONTRACT. An earned wage access
444	444	services provider shall make available to the consumer a copy of the
445	445	completed contract, when receipt of the document is acknowledged by
446	446	the consumer.
447	447	SUBCHAPTER G. PROHIBITIONS
448	448	Sec. 398.301. PROHIBITED ACTS. (a) An earned wage access
449	449	services provider may not, in connection with providing earned wage
450	450	access services to consumers:
451	451	(1) share with an employer any fees, tips, gratuities,
452	452	or other donations that were received from or charged to a consumer
453	453	for earned wage access services;
454	454	(2) accept payment of outstanding proceeds, a fee, or
455	455	a tip, gratuity, or other donation from a consumer through use of a
456	456	credit card or charge card;
457	457	(3) charge a late fee, deferral fee, interest, or
458	458	other penalty or charge for failure to pay outstanding proceeds, a
459	459	fee, or a tip, gratuity, or other donation;
460	460	(4) report any information regarding the provider's
461	461	inability to receive repayment of outstanding proceeds, or receive
462	462	a fee or a tip, gratuity, or other donation, from a consumer to a
463	463	consumer credit reporting agency or a debt collector;
464	464	(5) require a consumer's credit report or credit score
465	465	to determine the consumer's eligibility for earned wage access
466	466	services; or
467	467	(6) compel or attempt to compel payment by a consumer
468	468	of outstanding proceeds, a fee, or a tip, gratuity, or other
469	469	donation to the provider by:
470	470	(A) repeatedly attempting to debit a consumer's
471	471	depository institution account in violation of applicable payment
472	472	system rules;
473	473	(B) making outbound telephone calls to the
474	474	consumer;
475	475	(C) filing a suit against the consumer;
476	476	(D) using a third party to pursue collection of
477	477	the payment from the consumer on the provider's behalf; or
478	478	(E) selling the outstanding amount to a
479	479	third-party collector or debt buyer for purposes of collection from
480	480	the consumer.
481	481	(b) An earned wage access services provider is not precluded
482	482	from using any of the methods described by Subsection (a)(6) to:
483	483	(1) compel or attempt to compel repayment of
484	484	outstanding amounts incurred by a consumer through fraudulent or
485	485	unlawful means; or
486	486	(2) pursue an employer for breach of the employer's
487	487	contractual obligations to the provider.
488	488	Sec. 398.302. FALSE OR MISLEADING REPRESENTATION OR
489	489	STATEMENT. An earned wage access services provider may not make or
490	490	use a false or misleading representation or statement to a consumer
491	491	during the offer or provision of earned wage access services.
492	492	Sec. 398.303. FRAUDULENT OR DECEPTIVE CONDUCT. An earned
493	493	wage access services provider may not directly or indirectly engage
494	494	in a fraudulent or deceptive act, practice, or course of business
495	495	relating to the offer or provision of earned wage access services.
496	496	Sec. 398.304. ADVERTISING SERVICES WITHOUT OBTAINING
497	497	LICENSE PROHIBITED. An earned wage access services provider may
498	498	not advertise its services if the provider has not obtained a
499	499	license under this chapter.
500	500	Sec. 398.305. WAIVER OF CONSUMER RIGHT PROHIBITED. An
501	501	earned wage access services provider may not attempt to cause a
502	502	consumer to waive a right under this chapter.
503	503	SUBCHAPTER H. ADMINISTRATION OF CHAPTER
504	504	Sec. 398.351. ADOPTION OF RULES. (a) The Finance
505	505	Commission of Texas may adopt rules to enforce this chapter.
506	506	(b) The commissioner shall recommend proposed rules to the
507	507	finance commission.
508	508	Sec. 398.352. EXAMINATION OF PROVIDERS; ACCESS TO RECORDS.
509	509	(a) The commissioner or the commissioner's representative shall,
510	510	at the times the commissioner considers necessary:
511	511	(1) examine each place of business of each licensed
512	512	provider; and
513	513	(2) investigate the licensed provider's transactions
514	514	and records, including books, accounts, papers, and
515	515	correspondence, to the extent the transactions and records pertain
516	516	to the business regulated under this chapter.
517	517	(b) The licensed provider shall:
518	518	(1) give the commissioner or the commissioner's
519	519	representative free access to the provider's office, place of
520	520	business, files, safes, and vaults; and
521	521	(2) provide the commissioner electronic copies of
522	522	books, accounts, papers, and correspondence as requested by the
523	523	commissioner.
524	524	(c) During an examination the commissioner or the
525	525	commissioner's representative may administer oaths and examine any
526	526	person under oath on any subject pertinent to a matter that the
527	527	commissioner is authorized or required to consider, investigate, or
528	528	secure information about under this chapter.
529	529	(d) Information obtained under this section is
530	530	confidential.
531	531	(e) A licensed provider's violation of Subsection (b) is a
532	532	ground for the suspension or revocation of the provider's license.
533	533	Sec. 398.353. GENERAL INVESTIGATION. To discover a
534	534	violation of this chapter or to obtain information required under
535	535	this chapter, the commissioner or the commissioner's
536	536	representative may investigate the records, including books,
537	537	accounts, papers, and correspondence, of a licensed provider or
538	538	other person who the commissioner has reasonable cause to believe
539	539	is violating this chapter, regardless of whether the person claims
540	540	to not be subject to this chapter.
541	541	Sec. 398.354. CERTIFICATE; CERTIFIED DOCUMENT. On
542	542	application by any person and on payment of any associated cost, the
543	543	commissioner shall furnish under the commissioner's seal and signed
544	544	by the commissioner or an assistant of the commissioner:
545	545	(1) a certificate of good standing; or
546	546	(2) a certified copy of a license, rule, or order.
547	547	Sec. 398.355. TRANSCRIPT OF HEARING: PUBLIC. The
548	548	transcript of a hearing held by the commissioner under this chapter
549	549	is a public record.
550	550	Sec. 398.356. APPOINTMENT OF AGENT. A licensed provider
551	551	shall maintain on file with the commissioner the name and address of
552	552	the provider's registered agent for service of process.
553	553	Sec. 398.357. PAYMENT OF EXAMINATION COSTS AND
554	554	ADMINISTRATION EXPENSES. A licensed provider shall pay to the
555	555	commissioner an amount assessed by the commissioner to cover the
556	556	direct and indirect cost of an examination under Section 398.352
557	557	and a proportionate share of general administrative expenses.
558	558	Sec. 398.358. LICENSEE'S RECORDS. (a) A licensed provider
559	559	shall maintain a record of each transaction conducted under this
560	560	chapter as is necessary to enable the commissioner to determine
561	561	whether the provider is complying with this chapter.
562	562	(b) A licensed provider shall keep the record and make it
563	563	available electronically or physically in this state, until the
564	564	later of:
565	565	(1) the fourth anniversary of the date of the
566	566	transaction; or
567	567	(2) the second anniversary of the date on which the
568	568	final entry is made in the record.
569	569	(c) The commissioner shall accept a licensed provider's
570	570	system of records if the system discloses the information
571	571	reasonably required under Subsection (a).
572	572	Sec. 398.359. ANNUAL REPORT. (a) Each year, not later than
573	573	May 1 or a later date set by the commissioner, a licensed provider
574	574	shall file with the commissioner a report that contains relevant
575	575	information required by the commissioner concerning the provider's
576	576	business and operations in this state during the preceding calendar
577	577	year. The report must include:
578	578	(1) the total number of transactions in which the
579	579	provider paid proceeds to a consumer;
580	580	(2) the total number of consumers to whom the provider
581	581	paid proceeds;
582	582	(3) the total dollar amount of proceeds paid to all
583	583	consumers;
584	584	(4) the total dollar amount of fees, tips, gratuities,
585	585	or donations the provider received from consumers;
586	586	(5) the total number and dollar amount of transactions
587	587	in which a payment of proceeds was made to a consumer for which the
588	588	provider did not receive repayment of the outstanding proceeds;
589	589	(6) the total number and dollar amount of transactions
590	590	in which a payment of proceeds was made to a consumer for which the
591	591	provider received partial repayment of the outstanding proceeds;
592	592	(7) the total dollar amount of unpaid, outstanding
593	593	proceeds attributable to transactions described by Subdivision
594	594	(6);
595	595	(8) the total number and dollar amount of transactions
596	596	in which outstanding proceeds were repaid after the original,
597	597	scheduled repayment date; and
598	598	(9) the total number of written consumer complaints
599	599	received by the provider in connection with the provision of earned
600	600	wage access services and a list of the reason for each complaint,
601	601	listed by frequency of reason for the complaint.
602	602	(b) A report under this section must be:
603	603	(1) under oath; and
604	604	(2) in the form prescribed by the commissioner.
605	605	(c) A report under this section is confidential.
606	606	(d) Annually the commissioner shall prepare and publish a
607	607	consolidated analysis and recapitulation of reports filed under
608	608	this section.
609	609	SECTION 6. Section 411.095(a), Government Code, is amended
610	610	to read as follows:
611	611	(a) The consumer credit commissioner is entitled to obtain
612	612	from the department criminal history record information that
613	613	relates to a person who is:
614	614	(1) an applicant for or holder of a license or
615	615	registration under Chapter 180, 342, 347, 348, 351, 353, 371, 393,
616	616	[or] 394, or 398, Finance Code;
617	617	(2) an employee of or volunteer with the Office of
618	618	Consumer Credit Commissioner;
619	619	(3) an applicant for employment with the Office of
620	620	Consumer Credit Commissioner; or
621	621	(4) a contractor or subcontractor of the Office of
622	622	Consumer Credit Commissioner.
623	623	SECTION 7. A person engaging in business as an earned wage
624	624	access services provider on the effective date of this Act must
625	625	obtain a license in accordance with Chapter 398, Finance Code, as
626	626	added by this Act, not later than January 1, 2024.
627	627	SECTION 8. Sections 398.201 and 398.251, Finance Code, as
628	628	added by this Act, apply only to a contract for earned wage access
629	629	services entered into on or after the effective date of this Act.
630	630	SECTION 9. This Act takes effect September 1, 2023.