Texas 2025 - 89th Regular

Texas House Bill HB5462 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R8609 PRL-F
2	2	By: Oliverson H.B. No. 5462
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the regulation of earned income access providers and
10	10	earned income access transactions; requiring an occupational
11	11	license; authorizing fees; providing an administrative penalty;
12	12	creating a criminal offense.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 14.107, Finance Code, is amended to read
15	15	as follows:
16	16	Sec. 14.107. FEES. (a) The finance commission shall
17	17	establish reasonable and necessary fees for carrying out the
18	18	commissioner's powers and duties under this chapter, Title 4,
19	19	Chapter 393 with respect to a credit access business, and Chapters
20	20	371, 392, [and] 394, and 398 and under Chapters 51, 302, 601, and
21	21	621, Business & Commerce Code.
22	22	(b) The finance commission by rule shall set the fees for
23	23	licensing and examination, as applicable, under Chapter 393 with
24	24	respect to a credit access business or Chapter 342, 347, 348, 351,
25	25	353, [or] 371, or 398 at amounts or rates necessary to recover the
26	26	costs of administering those chapters. The rules may provide that
27	27	the amount of a fee charged to a license holder is based on the
28	28	volume of the license holder's regulated business and other key
29	29	factors. The commissioner may provide for collection of a single
30	30	fee for the term of the license from a person licensed under
31	31	Subchapter G of Chapter 393 or Chapter 342, 347, 348, 351, or 371.
32	32	The fee must include amounts due for both licensing and
33	33	examination.
34	34	SECTION 2. Section 14.112(a), Finance Code, is amended to
35	35	read as follows:
36	36	(a) The finance commission by rule shall prescribe the
37	37	licensing or registration period for licenses and registrations
38	38	issued under Chapters 342, 345, 347, 348, 351, 352, 353, 371, 393,
39	39	[and] 394, and 398 of this code and Chapter 1956, Occupations Code,
40	40	not to exceed two years.
41	41	SECTION 3. Section 14.201, Finance Code, is amended to read
42	42	as follows:
43	43	Sec. 14.201. INVESTIGATION AND ENFORCEMENT AUTHORITY.
44	44	Investigative and enforcement authority under this subchapter
45	45	applies only to:
46	46	(1) this chapter;
47	47	(2) Subtitles B and C, Title 4;
48	48	(3) Chapter 393 with respect to a credit access
49	49	business;
50	50	(4) Chapter 394;
51	51	(5) Chapter 398; and
52	52	(6) [(5)] Subchapter B, Chapter 1956, Occupations
53	53	Code.
54	54	SECTION 4. Sections 14.251(a) and (b), Finance Code, are
55	55	amended to read as follows:
56	56	(a) The commissioner may assess an administrative penalty
57	57	against a person who knowingly and wilfully violates or causes a
58	58	violation of this chapter, Chapter 394, Chapter 398, or Subtitle B,
59	59	Title 4, or a rule adopted under this chapter, Chapter 394, Chapter
60	60	398, or Subtitle B, Title 4.
61	61	(b) The commissioner may order the following businesses or
62	62	other persons to pay restitution to an identifiable person:
63	63	(1) a person who violates or causes a violation of this
64	64	chapter, Chapter 394, or Subtitle B, Title 4, or a rule adopted
65	65	under this chapter, Chapter 394, or Subtitle B, Title 4;
66	66	(2) a credit access business who violates or causes a
67	67	violation of Chapter 393 or a rule adopted under Chapter 393;
68	68	(3) an earned income access provider who violates or
69	69	causes a violation of Chapter 398 or a rule adopted under Chapter
70	70	398; or
71	71	(4) [(3)] a person who violates or causes a violation
72	72	of Subchapter B, Chapter 1956, Occupations Code, or a rule adopted
73	73	under that subchapter.
74	74	SECTION 5. Title 5, Finance Code, is amended by adding
75	75	Chapter 398 to read as follows:
76	76	CHAPTER 398. EARNED INCOME ACCESS TRANSACTIONS
77	77	SUBCHAPTER A. GENERAL PROVISIONS
78	78	Sec. 398.001. SHORT TITLE. This chapter may be cited as the
79	79	Texas Earned Income Access Act.
80	80	Sec. 398.002. DEFINITIONS. In this chapter:
81	81	(1) "Commissioner" means the consumer credit
82	82	commissioner.
83	83	(2) "Consumer" means an individual who resides in this
84	84	state.
85	85	(3) "Debt collection activity" means:
86	86	(A) the business of collecting any debts,
87	87	directly or indirectly, owed or due another person or any debts
88	88	asserted to be owed or due another person;
89	89	(B) the business of a buyer of debts seeking to
90	90	collect the debts, directly or indirectly; or
91	91	(C) the business of a creditor collecting its own
92	92	debts if the creditor uses a name other than the creditor's own name
93	93	that would suggest or indicate that someone other than the creditor
94	94	is collecting or attempting to collect the debts.
95	95	(4) "Earned but unpaid income" means salary, wages, or
96	96	compensation that has been earned by, or has accrued to the benefit
97	97	of, a consumer for labor or services performed for or on behalf of
98	98	an obligor but has not, at the time of the payment of proceeds, been
99	99	paid to the consumer by the obligor.
100	100	(5) "Earned income access provider" or "provider"
101	101	means a person that:
102	102	(A) provides or offers to provide, on behalf of
103	103	an obligor, an earned income access transaction to a consumer
104	104	earning salary, wages, or compensation from the obligor;
105	105	(B) offers an earned income access transaction to
106	106	a consumer; or
107	107	(C) enters into an earned income access
108	108	transaction with a consumer.
109	109	(6) "Earned income access rate cap" means the limit,
110	110	established by the commissioner, on the amount that may be charged
111	111	to or received from a consumer for an earned income access
112	112	transaction, without option to the consumer.
113	113	(7) "Earned income access transaction" means a payment
114	114	of earned but unpaid income to a consumer occurring on a day other
115	115	than:
116	116	(A) the consumer's regular payday; or
117	117	(B) a regularly scheduled day on which the
118	118	obligor pays to the consumer wages or compensation that has been
119	119	earned by or has accrued to the benefit of the consumer.
120	120	(8) "Fee":
121	121	(A) means:
122	122	(i) an amount charged to a consumer by a
123	123	provider for an earned income access transaction; and
124	124	(ii) an amount received by a provider from a
125	125	consumer for an earned income access transaction; and
126	126	(B) includes an amount paid voluntarily as
127	127	described by Section 398.103(a)(11).
128	128	(9) "Finance commission" means the Finance Commission
129	129	of Texas.
130	130	(10) "Legal representative" means an executor,
131	131	administrator, trustee, conservator, receiver, or other person
132	132	appointed by a court or by trust or will to be empowered to control
133	133	the person or property of any person. The term includes a successor
134	134	to the person in accordance with the provisions of the appointment.
135	135	(11) "Nonrecourse" means, with respect to an earned
136	136	income access transaction, the unavailability of a legal cause of
137	137	action or remedy that may be brought against a consumer relating to
138	138	the transaction.
139	139	(12) "Obligor" means a person who is obligated to pay a
140	140	consumer a sum of money on an hourly, project-based, piecework, or
141	141	other basis for labor or services performed by the consumer for or
142	142	on behalf of the person. The term does not include:
143	143	(A) a customer of an obligor; or
144	144	(B) a third party, other than a person described
145	145	by Paragraph (A), that has an obligation to make a payment to a
146	146	consumer based solely on the consumer's agency relationship with
147	147	the obligor.
148	148	(13) "Proceeds" means money received by a consumer
149	149	under an earned income access transaction.
150	150	Sec. 398.003. CONTROL. (a) For purposes of this chapter, a
151	151	person has control of another person if the person has possession,
152	152	directly or indirectly, of the power to direct or cause the
153	153	direction of the management and policies of the other person
154	154	through the ownership of voting shares or in another manner.
155	155	(b) The following create a presumption that a person has
156	156	control of another person:
157	157	(1) a person's ownership of, control of, or having the
158	158	power to vote 20 percent or more of:
159	159	(A) another person's outstanding voting shares;
160	160	or
161	161	(B) the outstanding voting shares of a person
162	162	that owns, controls, or holds the power to vote 10 percent or more
163	163	of the outstanding voting shares of a person described by Paragraph
164	164	(A); or
165	165	(2) subject to Subsection (c), a person who, directly
166	166	or indirectly, could effectively shut down the operations of
167	167	another person by the person's voting activities or by authorities
168	168	that lie within the other person's established corporate governance
169	169	structure.
170	170	(c) A person is not considered to have control of another
171	171	person who is a company solely by virtue of being an officer or
172	172	director of the company.
173	173	Sec. 398.004. RULES. The finance commission may adopt
174	174	rules as necessary to implement this chapter.
175	175	SUBCHAPTER B. LICENSE REQUIREMENT
176	176	Sec. 398.051. LICENSE REQUIRED; EXEMPTION. (a) Except as
177	177	provided by Subsection (b), a person must hold a license under this
178	178	chapter to engage in the business of:
179	179	(A) providing or offering to provide, on behalf
180	180	of an obligor, an earned income access transaction to a consumer
181	181	earning a salary, wages, or compensation from the obligor;
182	182	(B) offering an earned income access transaction
183	183	to a consumer; or
184	184	(C) entering into an earned income access
185	185	transaction with a consumer.
186	186	(b) The following persons are not required to obtain a
187	187	license under Subsection (a):
188	188	(1) a bank, credit union, savings bank, or savings and
189	189	loan association organized under the laws of the United States or
190	190	under the laws of the financial institution's state of domicile;
191	191	(2) a service provider, including a payroll service
192	192	provider, whose role may include verifying available earnings, but
193	193	who is not contractually obligated to pay earned but unpaid income
194	194	as part of an earned income access transaction; or
195	195	(3) an obligor that offers a portion of salary, wages,
196	196	or compensation directly to the obligor's employees or independent
197	197	contractors before the normally scheduled pay date.
198	198	(c) An application for a license under this subchapter must:
199	199	(1) be in writing and made under oath;
200	200	(2) be filed with and in the form prescribed by the
201	201	commissioner; and
202	202	(3) be accompanied by a license fee and investigation
203	203	fee, in amounts set by finance commission rule.
204	204	(d) On filing the application, the applicant shall pay an
205	205	application fee, in an amount not to exceed $375 as determined by
206	206	the commissioner.
207	207	Sec. 398.052. APPROVAL OR DENIAL OF APPLICATION; ISSUANCE
208	208	OF LICENSE. (a) On receipt of an application and payment of the
209	209	fees under Section 398.051, the commissioner shall review the
210	210	application. Except as provided by Subsection (b), if the
211	211	commissioner determines that the application is complete, the
212	212	commissioner shall issue a license to the applicant.
213	213	(b) The commissioner may refuse to issue a license if, after
214	214	an investigation, the commissioner finds the financial condition
215	215	and responsibility, business experience, character, and general
216	216	fitness of the applicant or any person associated with the
217	217	applicant are not sufficient to command the confidence of the
218	218	public and to warrant the belief that the business will be operated
219	219	honestly and fairly within the purposes of this chapter.
220	220	(c) For the purposes of this section:
221	221	(1) an applicant that is a partnership or
222	222	unincorporated association is considered to include all the members
223	223	of the partnership or unincorporated association; and
224	224	(2) an applicant that is a corporation is considered
225	225	to include all the shareholders, officers, and directors of the
226	226	corporation.
227	227	(d) The license to engage in business at the location
228	228	specified in the application must be executed in triplicate by the
229	229	commissioner. The commissioner shall send one copy to the
230	230	applicant, file a copy with the Office of Consumer Credit
231	231	Commissioner, and file a copy with the county clerk of the county of
232	232	the location designated in the license. For purposes of this
233	233	subsection, the location specified in an application may be online.
234	234	(e) If the commissioner refuses to issue a license, the
235	235	commissioner shall:
236	236	(1) notify the applicant of the denial;
237	237	(2) return the license fee to the applicant; and
238	238	(3) retain the investigation fee to cover the costs of
239	239	investigating the applicant.
240	240	(f) A license issued under this subchapter remains in effect
241	241	until the license expires, is surrendered by the license holder, or
242	242	is revoked or suspended by the commissioner.
243	243	Sec. 398.053. LICENSE PROVISIONS AND POSTING. (a) A
244	244	license under this subchapter must state:
245	245	(1) the name and address of the license holder;
246	246	(2) if the license holder is a partnership or
247	247	association, the names of each member of the partnership or
248	248	association; and
249	249	(3) if the license holder is a corporation, the date of
250	250	the license holder's incorporation or formation and the state or
251	251	country of formation or incorporation.
252	252	(b) A license holder shall post the license in a conspicuous
253	253	place at the location of the license holder's principal office and
254	254	on the mobile application or Internet website of the license
255	255	holder.
256	256	Sec. 398.054. TRANSFER OR ASSIGNMENT OF LICENSE. A license
257	257	may not be transferred or assigned.
258	258	Sec. 398.055. GROUNDS FOR SUSPENSION OR REVOCATION OF
259	259	LICENSE; PROCEDURE. (a) The commissioner shall revoke, suspend,
260	260	or refuse to renew a license issued under this subchapter, after
261	261	notice and opportunity for a hearing, if the commissioner
262	262	determines that:
263	263	(1) the license holder has violated or failed to
264	264	comply with:
265	265	(A) this chapter;
266	266	(B) a rule adopted under this chapter; or
267	267	(C) an order issued by the commissioner under
268	268	this chapter;
269	269	(2) the license holder has been convicted of a crime
270	270	for an offense involving moral turpitude, including forgery,
271	271	embezzlement, obtaining money under false pretenses, larceny,
272	272	extortion, conspiracy to defraud, or any other similar offense;
273	273	(3) a fact or condition exists that, if it had existed
274	274	when the license holder applied for a license, would have been
275	275	grounds for denying the license; or
276	276	(4) a fact or condition exists that the commissioner
277	277	was not aware of when the license holder applied for a license and
278	278	would have been grounds for denying the license.
279	279	(b) If the commissioner revokes or suspends a license issued
280	280	under this subchapter, the commissioner shall execute in triplicate
281	281	a written order to that effect. The commissioner shall:
282	282	(1) file a copy of the order with the Office of the
283	283	Consumer Credit Commissioner;
284	284	(2) file a copy of the order with the office of the
285	285	county clerk of the county in which the principal office of the
286	286	license holder is located; and
287	287	(3) provide a copy of the order to the license holder.
288	288	(c) A hearing under this section must be held not later than
289	289	the 30th day after the date the commissioner issues the order of
290	290	suspension or revocation.
291	291	(d) If there is a substantial risk of public harm, the
292	292	commissioner may, on good cause shown and without notice and a
293	293	hearing, suspend a license issued under this subchapter for a
294	294	period not to exceed 30 days pending investigation. For purposes of
295	295	this subsection, "good cause" exists only if the license holder:
296	296	(1) has engaged in or is likely to engage in a practice
297	297	prohibited by this chapter; or
298	298	(2) engages in a dishonest or inequitable practice
299	299	that may cause substantial harm to persons afforded the protections
300	300	of this chapter.
301	301	Sec. 398.056. SURRENDER OF LICENSE. (a) A license holder
302	302	may surrender the holder's license by delivering the original
303	303	license to the commissioner along with a written or electronic
304	304	notice of surrender.
305	305	(b) The surrender of a license does not affect any civil or
306	306	criminal liability of the license holder arising from any acts or
307	307	omissions before the surrender of the license.
308	308	Sec. 398.057. REINSTATEMENT OF SUSPENDED LICENSE; ISSUANCE
309	309	OF NEW LICENSE AFTER REVOCATION. The commissioner may reinstate a
310	310	suspended license or issue a new license on application to a person
311	311	whose license has been revoked if at the time of the reinstatement
312	312	or issuance no fact or condition exists that clearly would have
313	313	justified the commissioner's denial of an original application for
314	314	the license.
315	315	Sec. 398.058. INVESTIGATION AND EXAMINATION. (a) The
316	316	commissioner may conduct an investigation as the commissioner
317	317	considers necessary to determine whether:
318	318	(1) a provider or another person has violated this
319	319	chapter; or
320	320	(2) a license holder has engaged in conduct in a manner
321	321	that would justify the revocation of the holder's license.
322	322	(b) Notwithstanding any other law, the investigation and
323	323	examination authority of the commissioner under Subchapter E,
324	324	Chapter 14, applies to an investigation conducted under this
325	325	section.
326	326	SUBCHAPTER C. DUTIES AND PROHIBITED ACTIVITIES
327	327	Sec. 398.101. COMPLIANCE REQUIREMENTS. An earned income
328	328	access provider shall:
329	329	(1) if the provider takes custody of a consumer's
330	330	earned but unpaid income before paying proceeds to the consumer,
331	331	ensure the proceeds are insured by the Federal Deposit Insurance
332	332	Corporation at the consumer's individual account level;
333	333	(2) comply with National Automated Clearing House
334	334	Association rules and ensure that when a debit is initiated to a
335	335	consumer's account for a payment and the debit is returned for
336	336	insufficient or uncollected funds, that the debit can be
337	337	reinitiated only in accordance with Section 398.103(a)(5); and
338	338	(3) comply with applicable privacy and information
339	339	security laws of this state.
340	340	Sec. 398.102. NOTICE REQUIREMENTS. (a) An earned income
341	341	access provider shall provide notice to the consumer of the costs of
342	342	earned income access transactions in accordance with rules adopted
343	343	by the finance commission. The notice must be displayed in a clear
344	344	and conspicuous manner.
345	345	(b) An earned income access provider shall provide, each
346	346	quarter, to each consumer to whom the provider has paid proceeds
347	347	during the preceding quarter written notice that contains the
348	348	following information:
349	349	(1) an itemization of transactions and costs;
350	350	(2) the total amount the consumer has paid in fees;
351	351	(3) the process for reporting complaints to the
352	352	provider and to the commissioner;
353	353	(4) definitions of terms used in the notice; and
354	354	(5) an explanation of the costs of the services
355	355	provided.
356	356	Sec. 398.103. EARNED INCOME ACCESS TRANSACTIONS. (a) An
357	357	earned income access provider may not conduct an earned income
358	358	access transaction unless:
359	359	(1) the consumer is 18 years of age or older;
360	360	(2) the transaction is a nonrecourse transaction;
361	361	(3) the provider has a reasonable basis to believe
362	362	that the total amount of the proceeds and mandatory fees associated
363	363	with the transaction does not exceed a percentage, to be set by the
364	364	commissioner, of the consumer's earned but unpaid income;
365	365	(4) the provider does not engage in debt collection
366	366	activity or retain the services of another person to engage in debt
367	367	collection activity in connection with the earned income access
368	368	transaction and does not convey the debt itself;
369	369	(5) if repayment is made by the provider through a
370	370	debit of a consumer's account, the debit is made in accordance with
371	371	rules of the finance commission;
372	372	(6) the provider charges or receives:
373	373	(A) a fee for the transaction that does not
374	374	exceed the earned income access rate cap; or
375	375	(B) no fee for the transaction;
376	376	(7) no portion of the earned but unpaid income to be
377	377	paid as part of the transaction is used before receipt by the
378	378	consumer to settle or pay down an obligation arising from a prior
379	379	earned income access transaction and no proceeds roll over or are
380	380	structured in any way to create a continuing obligation of the
381	381	consumer to the provider;
382	382	(8) the provider offers the consumer at least one
383	383	reasonable option to obtain proceeds at no additional charge to the
384	384	consumer and explains in a clear manner how to elect the no-charge
385	385	option;
386	386	(9) the provider initiates all payment of proceeds not
387	387	later than the next business day after the date on which a consumer
388	388	makes a request for funds;
389	389	(10) before a consumer enters into the transaction,
390	390	the provider gives the consumer written notice of all fees
391	391	associated with the transaction and the full potential cost of the
392	392	transaction, including any expediting fees, suggested tips, and
393	393	other potential charges a provider may impose on a consumer, and the
394	394	cost expressed as an annual percentage rate;
395	395	(11) if the provider offers a consumer the opportunity
396	396	to pay an additional amount for an earned income access transaction
397	397	voluntarily, such as a tip or donation:
398	398	(A) the provider gives written notice to the
399	399	consumer stating that payment of an additional amount is not
400	400	required in order for the consumer to receive the proceeds; and
401	401	(B) the provider offers no amount of money by:
402	402	(i) offering the consumer amount options
403	403	from which the consumer may select or pre-fill an amount in a form
404	404	used in the transaction process; or
405	405	(ii) otherwise using a transaction process
406	406	designed to require the consumer to take affirmative action to
407	407	avoid or opt out of paying the additional amount;
408	408	(12) the provider does not charge a late fee or
409	409	prepayment penalty on the transaction;
410	410	(13) the provider does not obtain a credit report or
411	411	otherwise assess credit risk of the consumer before, during, or
412	412	after the transaction, except that the provider may verify the
413	413	consumer's source of income as part of determining the amount of the
414	414	proceeds;
415	415	(14) the provider does not report on the transaction
416	416	to a consumer reporting agency at any time before, during, or after
417	417	the transaction;
418	418	(15) the provider does not require a consumer to waive
419	419	the right to class action proceedings for claims against the
420	420	provider to engage in an earned income access transaction;
421	421	(16) the provider gives a consumer written notice of
422	422	any amendment to the contract or terms of service for earned income
423	423	access transactions and the consumer agrees to the amendment before
424	424	proceeding with any earned income access transaction to which the
425	425	amendment would apply; and
426	426	(17) if the provider charges a subscription or
427	427	membership fee, the fee is optional and for a bona fide group of
428	428	services that include earned income access transactions.
429	429	(b) An earned income access transaction made in accordance
430	430	with this section is not subject to:
431	431	(1) Subtitles A and B, Title 4;
432	432	(2) Chapter 152; or
433	433	(3) the laws of this state governing:
434	434	(i) deductions from wages or payroll; or
435	435	(ii) the purchase, sale, or assignment of,
436	436	or an order for, earned but unpaid income.
437	437	Sec. 398.104. MANDATORY TRANSACTION FEES. Mandatory
438	438	transaction fees charged by a provider may not exceed the maximum
439	439	allowable amount as set by the commissioner.
440	440	Sec. 398.105. AVAILABLE LEGAL REMEDIES. Notwithstanding
441	441	any other law, a provider may avail itself of any available
442	442	contractual or other legal remedies to seek and collect payment of
443	443	any outstanding proceeds, charges, fees, or other amounts if a
444	444	consumer:
445	445	(1) provides materially false information during the
446	446	process of procuring an earned income access transaction; or
447	447	(2) received the amounts or proceeds through fraud or
448	448	other unlawful means.
449	449	Sec. 398.106. MISLEADING OR DECEPTIVE ADVERTISING. (a) An
450	450	advertisement for an earned income access transaction service may
451	451	not be misleading or deceptive.
452	452	(b) An advertisement for an earned income access
453	453	transaction service must clearly and accurately disclose the costs
454	454	of the service to consumers.
455	455	(c) The finance commission may adopt rules governing
456	456	advertising of earned income access transaction services
457	457	consistent with the purposes of this section.
458	458	Sec. 398.107. APPROVAL OF CHANGES IN CONTROL. (a) An
459	459	action that would result in a change of control of the business of a
460	460	license holder may not be taken without the prior approval of the
461	461	commissioner as specified by this section.
462	462	(b) Before a proposed change of control, the person desiring
463	463	to acquire control of the business of a license holder must file a
464	464	written application with the commissioner and pay an investigation
465	465	fee.
466	466	(c) The application must contain information the
467	467	commissioner prescribes as necessary or appropriate for the purpose
468	468	of making the determination required by Subsection (d).
469	469	(d) On receipt of an application and payment of the fee
470	470	under Subsection (b), the commissioner shall approve the change of
471	471	control, unless the commissioner determines the change of control
472	472	to be against the public interest.
473	473	(e) For a six-month period beginning on the date of
474	474	qualification and for an additional period the commissioner may
475	475	prescribe, Subsections (b), (c), and (d) do not apply to a transfer
476	476	of control by operation of law to the legal representative of a
477	477	person who has control of a license holder. After the expiration of
478	478	the period prescribed by this subsection, the legal representative
479	479	must file an application with the commissioner that complies with
480	480	the requirements of this section.
481	481	(f) On application of a license holder or a person who may
482	482	exercise control over the license holder, the commissioner may, in
483	483	the commissioner's discretion, determine whether the ownership,
484	484	control, or holding of the voting stock constitutes or would
485	485	constitute control of the license holder for purposes of this
486	486	section.
487	487	Sec. 398.108. BOOKS, ACCOUNTS, AND RECORDS. (a) A license
488	488	holder shall maintain books, accounts, and records in sufficient
489	489	detail to enable the commissioner to determine whether the license
490	490	holder is in compliance with this chapter and rules adopted by the
491	491	finance commission.
492	492	(b) A license holder shall maintain for inspection the
493	493	license holder's books, accounts, and records for at least six
494	494	years after the date the final entry of an earned income access
495	495	transaction is recorded in those books, accounts, and records.
496	496	(c) The preservation of a photographic reproduction or
497	497	records in photographic form constitute compliance with the
498	498	requirements of this section.
499	499	Sec. 398.109. ANNUAL AND OTHER REPORTS. (a) Not later than
500	500	January 1 of each year, an earned income access provider shall file
501	501	a report with the commissioner containing, for the preceding
502	502	calendar year:
503	503	(1) any information the commissioner requires
504	504	concerning the provider's earned income access business;
505	505	(2) any information the commissioner requires
506	506	concerning any business entity with which the earned income access
507	507	business is operationally or financially consolidated; and
508	508	(3) the provider's earned income access business
509	509	operations in this state.
510	510	(b) In addition to the report required under Subsection (a),
511	511	the commissioner may require a provider to submit a regular or
512	512	special report if the commissioner considers the report necessary
513	513	for the proper supervision of providers under this chapter.
514	514	(c) A report under Subsection (a) or (b) must:
515	515	(1) be in the form prescribed by the commissioner; and
516	516	(2) be subscribed and affirmed by the provider as true
517	517	under penalty of perjury.
518	518	Sec. 398.110. REPRESENTATION REGARDING LICENSURE. (a) A
519	519	provider may not, directly or indirectly, make a representation
520	520	that the provider is licensed under Subtitle A, Title 3.
521	521	(b) A provider licensed under Subchapter B may make a
522	522	representation that the provider is licensed as an earned income
523	523	access provider under this chapter.
524	524	SUBCHAPTER D. ENFORCEMENT
525	525	Sec. 398.151. CRIMINAL OFFENSE. (a) In this section,
526	526	"person" includes a member, officer, director, or employee of an
527	527	earned income access provider.
528	528	(b) A person commits an offense if the person:
529	529	(1) violates or knowingly participates in a violation
530	530	of this chapter;
531	531	(2) knowingly makes an incorrect statement of a
532	532	material fact in an application, report, or statement filed under
533	533	this chapter;
534	534	(3) knowingly fails to state a material fact necessary
535	535	to give the commissioner information lawfully required by the
536	536	commissioner under this chapter; or
537	537	(4) refuses to permit an investigation or examination
538	538	authorized under this chapter.
539	539	(c) An offense under this section is a Class B misdemeanor.
540	540	SECTION 6. Section 411.095(a), Government Code, is amended
541	541	to read as follows:
542	542	(a) The consumer credit commissioner is entitled to obtain
543	543	criminal history record information as provided by Subsection (a-1)
544	544	that relates to a person who is:
545	545	(1) an applicant for or holder of a license or
546	546	registration under Chapter 180, 342, 347, 348, 351, 353, 371, 393,
547	547	[or] 394, or 398, Finance Code;
548	548	(2) an employee of or volunteer with the Office of
549	549	Consumer Credit Commissioner;
550	550	(3) an applicant for employment with the Office of
551	551	Consumer Credit Commissioner;
552	552	(4) a contractor or subcontractor of the Office of
553	553	Consumer Credit Commissioner; or
554	554	(5) an officer, director, owner, or employee of a
555	555	person described by Subdivision (1) or another person having a
556	556	substantial relationship with that person under Chapter 180, 342,
557	557	347, 348, 351, 353, 371, 393, [or] 394, or 398, Finance Code.
558	558	SECTION 7. A person engaging in business as an earned income
559	559	access provider on the effective date of this Act must obtain a
560	560	license in accordance with Chapter 398, Finance Code, as added by
561	561	this Act, not later than January 1, 2026.
562	562	SECTION 8. Sections 398.102 and 398.103, Finance Code, as
563	563	added by this Act, apply only to an earned income access transaction
564	564	made on or after the effective date of this Act.
565	565	SECTION 9. (a) Except as provided by Subsection (b) of this
566	566	section, this Act takes effect September 1, 2025.
567	567	(b) Section 398.151, Finance Code, as added by this Act,
568	568	takes effect January 1, 2026.