Bill Text: TX HB3827 | 2023-2024 | 88th Legislature | Engrossed

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Bill Title: Relating to the regulation of earned wage access services; requiring an occupational license; providing an administrative penalty; imposing fees.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2023-05-08 - Received from the House [HB3827 Detail]

Download: Texas-2023-HB3827-Engrossed.html

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88R20958 JES-F
By: Lambert H.B. No. 3827

A BILL TO BE ENTITLED
AN ACT
relating to the regulation of earned wage access services;
requiring an occupational license; providing an administrative
penalty; imposing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 14.107, Finance Code, is amended to read
as follows:
Sec. 14.107. FEES. (a) The finance commission shall
establish reasonable and necessary fees for carrying out the
commissioner's powers and duties under this chapter, Title 4,
Chapter 393 with respect to a credit access business, and Chapters
371, 392, [and] 394, and 398 and under Chapters 51, 302, 601, and
621, Business & Commerce Code.
(b) The finance commission by rule shall set the fees for
licensing and examination, as applicable, under Chapter 393 with
respect to a credit access business or Chapter 342, 347, 348, 351,
353, [or] 371, or 398 at amounts or rates necessary to recover the
costs of administering those chapters. The rules may provide that
the amount of a fee charged to a license holder is based on the
volume of the license holder's regulated business and other key
factors. The commissioner may provide for collection of a single
fee for the term of the license from a person licensed under
Subchapter G of Chapter 393 or Chapter 342, 347, 348, 351, or
371. The fee must include amounts due for both licensing and
examination.
SECTION 2. Section 14.112(a), Finance Code, is amended to
read as follows:
(a) The finance commission by rule shall prescribe the
licensing or registration period for licenses and registrations
issued under Chapters 342, 345, 347, 348, 351, 352, 353, 371, 393,
[and] 394, and 398 of this code and Chapter 1956, Occupations Code,
not to exceed two years.
SECTION 3. Section 14.201, Finance Code, is amended to read
as follows:
Sec. 14.201. INVESTIGATION AND ENFORCEMENT AUTHORITY.
Investigative and enforcement authority under this subchapter
applies only to:
(1) this chapter;
(2) Subtitles B and C, Title 4;
(3) Chapter 393 with respect to a credit access
business;
(4) Chapter 394;
(5) Chapter 398; and
(6) [(5)] Subchapter B, Chapter 1956, Occupations
Code.
SECTION 4. Sections 14.251(a) and (b), Finance Code, are
amended to read as follows:
(a) The commissioner may assess an administrative penalty
against a person who knowingly and wilfully violates or causes a
violation of this chapter, Chapter 394, Chapter 398, or Subtitle B,
Title 4, or a rule adopted under this chapter, Chapter 394, Chapter
398, or Subtitle B, Title 4.
(b) The commissioner may order the following businesses or
other persons to pay restitution to an identifiable person:
(1) a person who violates or causes a violation of this
chapter, Chapter 394, or Subtitle B, Title 4, or a rule adopted
under this chapter, Chapter 394, or Subtitle B, Title 4;
(2) a credit access business who violates or causes a
violation of Chapter 393 or a rule adopted under Chapter 393;
(3) an earned wage access services provider who
violates or causes a violation of Chapter 398 or a rule adopted
under Chapter 398; or
(4) [(3)] a person who violates or causes a violation
of Subchapter B, Chapter 1956, Occupations Code, or a rule adopted
under that subchapter.
SECTION 5. Title 5, Finance Code, is amended by adding
Chapter 398 to read as follows:
CHAPTER 398. EARNED WAGE ACCESS SERVICES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 398.001. DEFINITIONS. In this chapter:
(1) "Commissioner" means the consumer credit
commissioner.
(2) "Consumer" means an individual who resides in this
state.
(3) "Consumer-directed wage access services" means
offering or providing services directly to a consumer based on the
consumer's earned but unpaid income.
(4) "Earned but unpaid income" means salary, wages,
compensation, or income that:
(A) a consumer represents, and a provider
reasonably determines, has been earned or has accrued to the
benefit of the consumer in exchange for the consumer's provision of
services to an employer or on the employer's behalf; and
(B) has not, at the time of the payment of
proceeds, been paid to the consumer by the employer.
(5) "Earned wage access services" means the business
of providing:
(A) consumer-directed wage access services;
(B) employer-integrated wage access services; or
(C) both consumer-directed wage access services
and employer-integrated wage access services.
(6) "Earned wage access services provider" or
"provider" means a person who is in the business of offering and
providing earned wage access services to consumers.
(7) "Employer" means a person who employs a consumer
or a person who is contractually obligated to pay a consumer earned
but unpaid income on an hourly, project-based, piecework, or other
basis, in exchange for the consumer's provision of services to the
employer or on the employer's behalf, including to a consumer who is
acting as an independent contractor with respect to the employer.
The term does not include a customer of the employer or a person
whose obligation to pay salary, wages, compensation, or other
income to a consumer is not based on the consumer's provision of
services for or on behalf of that person.
(8) "Employer-integrated wage access services" means
delivering to consumers access to earned but unpaid income that is
based on employment, income, and attendance data obtained directly
or indirectly from an employer.
(9) "Fee" includes an amount charged by a provider for
expedited delivery or other delivery of proceeds to a consumer and
for a subscription or membership fee charged by a provider for a
bona fide group of services that includes earned wage access
services. The term does not include a voluntary tip, gratuity, or
donation paid to the provider.
(10) "Outstanding proceeds" means proceeds remitted
to a consumer by a provider that have not been repaid to that
provider.
(11) "Person" means a corporation, partnership,
cooperative, association, or other business entity.
(12) "Proceeds" means a payment to a consumer by a
provider that is based on earned but unpaid income.
Sec. 398.002. APPLICABILITY OF AND CONFLICT WITH OTHER LAW.
(a) A person licensed under this chapter is not subject to the
provisions of Chapter 151 or Title 4 of this code with respect to
earned wage access services offered or provided by the person.
(b) If there is a conflict between a provision of this
chapter and any other provision of this title, the provision of this
chapter controls.
Sec. 398.003. WAIVER VOID. A waiver of a provision of this
chapter by a consumer is void.
SUBCHAPTER B. LICENSE REQUIRED; APPLICATION FOR AND ISSUANCE OF
LICENSE
Sec. 398.051. LICENSE REQUIRED. (a) Except as provided by
Subsection (c), a person must hold a license under this chapter to
engage in the business of offering or providing earned wage access
services in this state.
(b) A person may not use any device, subterfuge, or pretense
to evade the application of this section.
(c) The following persons are not required to obtain a
license under Subsection (a):
(1) a bank, credit union, savings bank, or savings and
loan association organized under the laws of the United States or
under the laws of the financial institution's state of domicile; or
(2) an employer that offers a portion of salary,
wages, or compensation directly to its employees or independent
contractors before the normally scheduled pay date.
Sec. 398.052. APPLICATION REQUIREMENTS; FEES. (a) The
application for a license under this chapter must:
(1) be under oath;
(2) give the approximate location from which the
business is to be conducted or state that the business will be
conducted entirely online;
(3) identify the business's principal parties in
interest; and
(4) contain other relevant information that the
commissioner requires.
(b) On the filing of one or more license applications, the
applicant shall pay to the commissioner an investigation fee of
$200.
(c) On the filing of each license application, the applicant
shall pay to the commissioner a license fee in an amount determined
as provided by Section 14.107.
Sec. 398.053. BOND. (a) If the commissioner requires, an
applicant for a license under this chapter shall file with the
application a bond that is:
(1) in the amount of $10,000, regardless of the number
of license applications filed by the applicant;
(2) satisfactory to the commissioner; and
(3) issued by a surety company qualified to do
business as a surety in this state.
(b) The bond must be in favor of this state for the use of
this state and the use of a person who has a cause of action under
this chapter against the license holder.
(c) The bond must be conditioned on:
(1) the license holder's faithful performance under
this chapter and rules adopted under this chapter; and
(2) the payment of all amounts that become due to this
state or another person under this chapter during the period for
which the bond is given.
(d) The aggregate liability of a surety to all persons
damaged by the license holder's violation of this chapter may not
exceed the amount of the bond.
Sec. 398.054. INVESTIGATION OF APPLICATION. On the filing
of an application and a bond, if required under Section 398.053, and
on payment of the required fees, the commissioner shall conduct an
investigation to determine whether to issue the license.
Sec. 398.055. APPROVAL OR DENIAL OF APPLICATION; ISSUANCE
OF LICENSE. (a) The commissioner shall approve the application and
issue to the applicant a license under this chapter if the
commissioner finds that:
(1) the financial responsibility, experience,
character, and general fitness of the applicant are sufficient to:
(A) command the confidence of the public; and
(B) warrant the belief that the business will be
operated lawfully and fairly, within the purposes of this chapter;
and
(2) the applicant has net assets of at least $25,000
available for the operation of the business as determined in
accordance with Section 398.103.
(b) If the commissioner does not find the eligibility
requirements of Subsection (a) are met, the commissioner shall
notify the applicant.
(c) If an applicant requests a hearing on the application
not later than the 30th day after the date of notification under
Subsection (b), the applicant is entitled to a hearing not later
than the 60th day after the date of the request.
(d) The commissioner shall approve or deny the application
not later than the 60th day after the date of the filing of a
completed application with payment of the required fees or, if a
hearing is held, after the date of the completion of the hearing on
the application. The commissioner and the applicant may agree to a
later date in writing.
Sec. 398.056. DISPOSITION OF FEES ON DENIAL OF APPLICATION.
If the commissioner denies the application, the commissioner shall
retain the investigation fee and shall return to the applicant the
license fee submitted with the application.
Sec. 398.057. LICENSE TERM. A license issued under this
chapter is valid for the period prescribed by finance commission
rule adopted under Section 14.112.
SUBCHAPTER C. LICENSE
Sec. 398.101. NAME AND PLACE ON LICENSE. (a) A license
must state:
(1) the name of the license holder; and
(2) the address of the office from which the business
is to be conducted or, if the business is to be conducted entirely
online, the address of the license holder's headquarters.
(b) A license holder may not conduct business under this
chapter under a name other than the name stated on the license.
(c) A license holder may not conduct business under this
chapter at a location other than the address stated on the license,
unless the business is to be conducted entirely online.
Sec. 398.102. LICENSE DISPLAY. A license holder shall
display a license at the place of business provided on the license
or include its license number on the business's Internet website if
it conducts business online.
Sec. 398.103. MINIMUM ASSETS FOR LICENSE. A license holder
shall maintain for each office for which a license is held net
assets of at least $25,000 that are used or readily available for
use in conducting the business of that office. A license holder
that operates entirely online shall maintain net assets of at least
$25,000.
Sec. 398.104. LICENSE FEE. Not later than the 30th day
before the date the license expires, a license holder shall pay to
the commissioner for each license held a fee in an amount determined
as provided by Section 14.107.
Sec. 398.105. EXPIRATION OF LICENSE ON FAILURE TO PAY FEE.
If the fee for a license is not paid before the 16th day after the
date on which the written notice of delinquency of payment has been
given to the license holder, the license expires on that day.
Sec. 398.106. GROUNDS FOR REFUSING LICENSE RENEWAL. The
commissioner may refuse to renew the license of a person who fails
to comply with an order issued by the commissioner to enforce this
chapter.
Sec. 398.107. LICENSE SUSPENSION OR REVOCATION. After
notice and opportunity for a hearing, the commissioner may suspend
or revoke a license if the commissioner finds that:
(1) the license holder failed to pay the license fee,
an examination fee, an investigation fee, or another charge imposed
by the commissioner under this chapter;
(2) the license holder, knowingly or without the
exercise of due care, violated this chapter or a rule adopted or
order issued under this chapter; or
(3) a fact or condition exists that, if it had existed
or had been known to exist at the time of the original application
for the license, clearly would have justified the commissioner's
denial of the application.
Sec. 398.108. CORPORATE CHARTER FORFEITURE. (a) A license
holder who violates this chapter is subject to revocation of the
holder's license and, if the license holder is a corporation,
forfeiture of the corporation's charter.
(b) When the attorney general is notified of a violation of
this chapter and revocation of a license, the attorney general
shall file suit in a district court in Travis County, if the license
holder is a corporation, for forfeiture of the license holder's
charter.
Sec. 398.109. LICENSE SUSPENSION OR REVOCATION FILED WITH
PUBLIC RECORDS. The decision of the commissioner on the suspension
or revocation of a license and the evidence considered by the
commissioner in making the decision shall be filed in the public
records of the commissioner.
Sec. 398.110. REINSTATEMENT OF SUSPENDED LICENSE; ISSUANCE
OF NEW LICENSE AFTER REVOCATION. The commissioner may reinstate a
suspended license or issue a new license on application to a person
whose license has been revoked if at the time of the reinstatement
or issuance no fact or condition exists that clearly would have
justified the commissioner's denial of an original application for
the license.
Sec. 398.111. SURRENDER OF LICENSE. A license holder may
surrender a license issued under this chapter by complying with the
commissioner's written instructions relating to the surrender.
Sec. 398.112. EFFECT OF LICENSE SUSPENSION, REVOCATION, OR
SURRENDER. (a) The suspension, revocation, or surrender of a
license issued under this chapter does not affect the obligation of
a contract between the license holder and a consumer entered into
before the revocation, suspension, or surrender.
(b) Surrender of a license does not affect the license
holder's civil or criminal liability for an act committed before
surrender.
Sec. 398.113. MOVING AN OFFICE. (a) A license holder shall
give written notice to the commissioner before the 30th day
preceding the date the license holder moves an office from the
location provided on the license.
(b) The commissioner shall amend a license holder's license
accordingly.
Sec. 398.114. TRANSFER OR ASSIGNMENT OF LICENSE. A license
may be transferred or assigned only with the approval of the
commissioner.
SUBCHAPTER D. LIMITING LIABILITY BY LATE LICENSURE
Sec. 398.151. PAYMENT OF FEES. A person who obtains or
renews a license under this chapter after the date on which the
person was required to obtain or renew the license may limit the
person's liability as provided by this subchapter by paying to the
commissioner:
(1) all prior license fees that the person should have
paid under this chapter; and
(2) a late filing fee as provided by Section 398.152.
Sec. 398.152. LATE FILING FEE FOR OBTAINING OR RENEWING
LICENSE. (a) The late filing fee for renewing an expired license
is $1,000 if the license:
(1) was in good standing when it expired; and
(2) is renewed not later than the 180th day after its
expiration date.
(b) The late filing fee is $5,000 for:
(1) obtaining a license after the time it is required
under this chapter; or
(2) renewing an expired license to which Subsection
(a) does not apply.
Sec. 398.153. EFFECT OF COMPLIANCE WITH SUBCHAPTER FOR
LICENSE HOLDER. (a) A person who renews an expired license and
pays the applicable license fees and, if required, a late filing fee
as provided by Section 398.152 is considered for all purposes to
have held the required license as if it had not expired.
(b) A person who under this section is considered to have
held a license is not subject to any liability, forfeiture, or
penalty, other than as provided by this subchapter, relating to the
person's not holding a license during the period for which the
license fees and late filing fee are paid under Section 398.152.
Sec. 398.154. EFFECT OF COMPLIANCE WITH SUBCHAPTER ON
PERSON OTHER THAN LICENSE HOLDER. A benefit provided to a person
under Section 398.153 also applies to that person's employees or
other agents, employers, predecessors, successors, and assigns but
does not apply to any other person required to be licensed under
this title.
SUBCHAPTER E. DISCLOSURE STATEMENT
Sec. 398.201. DISCLOSURE STATEMENT. (a) Before executing
a contract with a consumer for the provision of earned wage access
services, an earned wage access services provider shall provide the
consumer with a disclosure that:
(1) may be in written or electronic form;
(2) may be included as part of the contract to provide
earned wage access services;
(3) uses a font and language intended to be easily
understood by a layperson;
(4) informs the consumer of the consumer's rights
under the contract;
(5) fully and clearly discloses each fee associated
with the earned wage access services;
(6) includes an explanation of the consumer's right to
proceed against the surety bond under Section 398.053; and
(7) provides the name and address of the surety
company that issued the surety bond.
(b) An earned wage access services provider must notify a
consumer of any material change to the information provided in a
disclosure statement under Subsection (a) to that consumer, using a
font and language intended to be easily understood by a layperson,
before implementing the particular change with respect to that
consumer.
Sec. 398.202. COPY OF DISCLOSURE STATEMENT. An earned wage
access services provider shall keep in its files a copy of the
disclosure statement, including any notifications of material
changes to the statement, required under Section 398.201 that
includes the consumer's written or digital signature acknowledging
receipt of the disclosure statement or notification until the
second anniversary of the date on which the provider provides the
disclosure or notification.
SUBCHAPTER F. CONTRACT FOR SERVICES
Sec. 398.251. FORM AND TERMS OF CONTRACT. (a) Each
contract for the provision of earned wage access services to a
consumer by a provider may be in writing or electronic form and
must:
(1) be dated;
(2) include the written or digital signature of the
consumer; and
(3) use a font and language intended to be easily
understood by a layperson.
(b) Each contract must disclose that:
(1) the provider is required to offer the consumer at
least one reasonable option to obtain proceeds at no cost to the
consumer and clearly explain how to elect that no-cost option;
(2) fee obligations are subject to the limitations on
compelling or attempting to compel repayment under Section
398.301(a)(6);
(3) proceeds will be provided to the consumer using a
method agreed to by the consumer and the provider;
(4) the consumer may cancel at any time the consumer's
participation in the provider's earned wage access services without
incurring a cancellation fee;
(5) the provider is required to develop and implement
policies and procedures to respond to questions asked and concerns
raised by consumers and to address complaints from consumers in an
expedient manner;
(6) if a provider seeks repayment of outstanding
proceeds, a fee, or another payment from a consumer, including a
voluntary tip, gratuity, or other donation, from a consumer's
account at a depository institution, including through an
electronic funds transfer, the provider must:
(A) comply with applicable provisions of and
regulations adopted under the federal Electronic Fund Transfer Act
(15 U.S.C. Section 1693 et seq.); and
(B) unless the payment sought by the provider was
incurred by the consumer using fraudulent or unlawful means,
reimburse the consumer for the full amount of any overdraft or
non-sufficient funds fees imposed on the consumer by the consumer's
depository institution if the provider attempts to seek any payment
from the consumer on a date before, or in a different amount from,
the date or amount disclosed to the consumer for that payment;
(7) the provider is required to comply with all local,
state, and federal privacy and information security laws; and
(8) if the provider solicits, charges, or receives a
tip, gratuity, or donation from the consumer, the provider:
(A) must clearly and conspicuously disclose to
the consumer immediately before each transaction that the tip,
gratuity, or donation is voluntary and may be set to zero by the
consumer;
(B) must clearly and conspicuously disclose in
the contract and other service contracts with consumers that any
tip, gratuity, or donation from a consumer to a provider is
voluntary and the offering of earned wage access services,
including the amount of proceeds a consumer is eligible to request
and the frequency with which proceeds are provided to a consumer, is
not contingent on whether a consumer pays any tip, gratuity, or
donation or on the size of any tip, gratuity, or donation;
(C) may not mislead or deceive the consumer
regarding the voluntary nature of the tip, gratuity, or donation;
and
(D) may not represent that the tip, gratuity, or
donation will benefit a specific individual.
Sec. 398.252. ISSUANCE OF CONTRACT. An earned wage access
services provider shall make available to the consumer a copy of the
completed contract, when receipt of the document is acknowledged by
the consumer.
SUBCHAPTER G. PROHIBITIONS
Sec. 398.301. PROHIBITED ACTS. (a) An earned wage access
services provider may not, in connection with providing earned wage
access services to consumers:
(1) share with an employer any fees, tips, gratuities,
or other donations that were received from or charged to a consumer
for earned wage access services;
(2) accept payment of outstanding proceeds, a fee, or
a tip, gratuity, or other donation from a consumer through use of a
credit card or charge card;
(3) charge a late fee, deferral fee, interest, or
other penalty or charge for failure to pay outstanding proceeds, a
fee, or a tip, gratuity, or other donation;
(4) report any information regarding the provider's
inability to receive repayment of outstanding proceeds, or receive
a fee or a tip, gratuity, or other donation, from a consumer to a
consumer credit reporting agency or a debt collector;
(5) require a consumer's credit report or credit score
to determine the consumer's eligibility for earned wage access
services; or
(6) compel or attempt to compel payment by a consumer
of outstanding proceeds, a fee, or a tip, gratuity, or other
donation to the provider by:
(A) repeatedly attempting to debit a consumer's
depository institution account in violation of applicable payment
system rules;
(B) making outbound telephone calls to the
consumer;
(C) filing a suit against the consumer;
(D) using a third party to pursue collection of
the payment from the consumer on the provider's behalf; or
(E) selling the outstanding amount to a
third-party collector or debt buyer for purposes of collection from
the consumer.
(b) An earned wage access services provider is not precluded
from using any of the methods described by Subsection (a)(6) to:
(1) compel or attempt to compel repayment of
outstanding amounts incurred by a consumer through fraudulent or
unlawful means; or
(2) pursue an employer for breach of the employer's
contractual obligations to the provider.
Sec. 398.302. FALSE OR MISLEADING REPRESENTATION OR
STATEMENT. An earned wage access services provider may not make or
use a false or misleading representation or statement to a consumer
during the offer or provision of earned wage access services.
Sec. 398.303. FRAUDULENT OR DECEPTIVE CONDUCT. An earned
wage access services provider may not directly or indirectly engage
in a fraudulent or deceptive act, practice, or course of business
relating to the offer or provision of earned wage access services.
Sec. 398.304. ADVERTISING SERVICES WITHOUT OBTAINING
LICENSE PROHIBITED. An earned wage access services provider may
not advertise its services if the provider has not obtained a
license under this chapter.
Sec. 398.305. WAIVER OF CONSUMER RIGHT PROHIBITED. An
earned wage access services provider may not attempt to cause a
consumer to waive a right under this chapter.
SUBCHAPTER H. ADMINISTRATION OF CHAPTER
Sec. 398.351. ADOPTION OF RULES. (a) The Finance
Commission of Texas may adopt rules to enforce this chapter.
(b) The commissioner shall recommend proposed rules to the
finance commission.
Sec. 398.352. EXAMINATION OF PROVIDERS; ACCESS TO RECORDS.
(a) The commissioner or the commissioner's representative shall,
at the times the commissioner considers necessary:
(1) examine each place of business of each licensed
provider; and
(2) investigate the licensed provider's transactions
and records, including books, accounts, papers, and
correspondence, to the extent the transactions and records pertain
to the business regulated under this chapter.
(b) The licensed provider shall:
(1) give the commissioner or the commissioner's
representative free access to the provider's office, place of
business, files, safes, and vaults; and
(2) provide the commissioner electronic copies of
books, accounts, papers, and correspondence as requested by the
commissioner.
(c) During an examination the commissioner or the
commissioner's representative may administer oaths and examine any
person under oath on any subject pertinent to a matter that the
commissioner is authorized or required to consider, investigate, or
secure information about under this chapter.
(d) Information obtained under this section is
confidential.
(e) A licensed provider's violation of Subsection (b) is a
ground for the suspension or revocation of the provider's license.
Sec. 398.353. GENERAL INVESTIGATION. To discover a
violation of this chapter or to obtain information required under
this chapter, the commissioner or the commissioner's
representative may investigate the records, including books,
accounts, papers, and correspondence, of a licensed provider or
other person who the commissioner has reasonable cause to believe
is violating this chapter, regardless of whether the person claims
to not be subject to this chapter.
Sec. 398.354. CERTIFICATE; CERTIFIED DOCUMENT. On
application by any person and on payment of any associated cost, the
commissioner shall furnish under the commissioner's seal and signed
by the commissioner or an assistant of the commissioner:
(1) a certificate of good standing; or
(2) a certified copy of a license, rule, or order.
Sec. 398.355. TRANSCRIPT OF HEARING: PUBLIC. The
transcript of a hearing held by the commissioner under this chapter
is a public record.
Sec. 398.356. APPOINTMENT OF AGENT. A licensed provider
shall maintain on file with the commissioner the name and address of
the provider's registered agent for service of process.
Sec. 398.357. PAYMENT OF EXAMINATION COSTS AND
ADMINISTRATION EXPENSES. A licensed provider shall pay to the
commissioner an amount assessed by the commissioner to cover the
direct and indirect cost of an examination under Section 398.352
and a proportionate share of general administrative expenses.
Sec. 398.358. LICENSEE'S RECORDS. (a) A licensed provider
shall maintain a record of each transaction conducted under this
chapter as is necessary to enable the commissioner to determine
whether the provider is complying with this chapter.
(b) A licensed provider shall keep the record and make it
available electronically or physically in this state, until the
later of:
(1) the fourth anniversary of the date of the
transaction; or
(2) the second anniversary of the date on which the
final entry is made in the record.
(c) The commissioner shall accept a licensed provider's
system of records if the system discloses the information
reasonably required under Subsection (a).
Sec. 398.359. ANNUAL REPORT. (a) Each year, not later than
May 1 or a later date set by the commissioner, a licensed provider
shall file with the commissioner a report that contains relevant
information required by the commissioner concerning the provider's
business and operations in this state during the preceding calendar
year. The report must include:
(1) the total number of transactions in which the
provider paid proceeds to a consumer;
(2) the total number of consumers to whom the provider
paid proceeds;
(3) the total dollar amount of proceeds paid to all
consumers;
(4) the total dollar amount of fees, tips, gratuities,
or donations the provider received from consumers;
(5) the total number and dollar amount of transactions
in which a payment of proceeds was made to a consumer for which the
provider did not receive repayment of the outstanding proceeds;
(6) the total number and dollar amount of transactions
in which a payment of proceeds was made to a consumer for which the
provider received partial repayment of the outstanding proceeds;
(7) the total dollar amount of unpaid, outstanding
proceeds attributable to transactions described by Subdivision
(6);
(8) the total number and dollar amount of transactions
in which outstanding proceeds were repaid after the original,
scheduled repayment date; and
(9) the total number of written consumer complaints
received by the provider in connection with the provision of earned
wage access services and a list of the reason for each complaint,
listed by frequency of reason for the complaint.
(b) A report under this section must be:
(1) under oath; and
(2) in the form prescribed by the commissioner.
(c) A report under this section is confidential.
(d) Annually the commissioner shall prepare and publish a
consolidated analysis and recapitulation of reports filed under
this section.
SECTION 6. Section 411.095(a), Government Code, is amended
to read as follows:
(a) The consumer credit commissioner is entitled to obtain
from the department criminal history record information that
relates to a person who is:
(1) an applicant for or holder of a license or
registration under Chapter 180, 342, 347, 348, 351, 353, 371, 393,
[or] 394, or 398, Finance Code;
(2) an employee of or volunteer with the Office of
Consumer Credit Commissioner;
(3) an applicant for employment with the Office of
Consumer Credit Commissioner; or
(4) a contractor or subcontractor of the Office of
Consumer Credit Commissioner.
SECTION 7. A person engaging in business as an earned wage
access services provider on the effective date of this Act must
obtain a license in accordance with Chapter 398, Finance Code, as
added by this Act, not later than January 1, 2024.
SECTION 8. Sections 398.201 and 398.251, Finance Code, as
added by this Act, apply only to a contract for earned wage access
services entered into on or after the effective date of this Act.
SECTION 9. This Act takes effect September 1, 2023.