89R2929 MLH-F     By: Menéndez S.B. No. 3000       A BILL TO BE ENTITLED   AN ACT   relating to consumer protections for earned wage access products.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 341.001, Finance Code, is amended by   adding Subdivision (6-a) and amending Subdivision (9) to read as   follows:                (6-a)  "Earned wage advance" means the provision of a   cash advance to a borrower by a provider in an amount that is based,   by estimate or otherwise, on the wages or other income that the   borrower has accrued but has not yet been paid, where:                      (A)  the advance is to be repaid to the provider   through:                            (i)  wage assignment;                            (ii)  one or more payroll deductions;                            (iii)  preauthorized account debits; or                            (iv)  another automated means; and                      (B)  the provider charges, contracts for, or   receives from the borrower, directly or indirectly, one or more   charges, fees, or other amounts, including voluntary or optional   payments associated with the advance or the earned wage advance   program.                (9)  "Loan" has the meaning assigned by Section 301.002   and includes a sale-leaseback transaction, [and] a deferred   presentment transaction, and an earned wage advance.          SECTION 2.  Chapter 342, Finance Code, is amended by adding   Subchapter N to read as follows:   SUBCHAPTER N.  EARNED WAGE ADVANCES          Sec. 342.701.  DEFINITIONS. In this subchapter:                (1)  "Cash advance" or "advance" means proceeds   received by a consumer from an earned wage advance provider.                (2)  "Consumer" means an individual who resides in this   state.                (3)  "Earned wage advance provider" or "provider" means   a person who is in the business of offering and providing earned   wage advance services to consumers.          Sec. 342.702.  CONSUMER ASSESSMENT. An earned wage advance   provider shall, before making an advance connected to an earned   wage advance, assess a consumer's ability to repay:                (1)  the advance in cash in the time and by the means   provided in the loan contract; and                (2)  any other obligations owed by the consumer that   are known to the provider.          Sec. 342.703.  REIMBURSEMENT. If the provider causes the   consumer to incur an overdraft fee because the provider attempts to   collect payment before the consumer's paycheck or other income is   deposited into the account, the provider shall reimburse the   consumer for all fees incurred not later than 48 hours after   receiving notice of the overdraft through any existing customer   service methods, including telephone and electronic means.          Sec. 342.704.  PROHIBITIONS. (a)  An earned wage advance   provider may not, in connection with providing earned wage advance   services to consumers:                (1)  charge, contract for, or receive in a 30-day   period more than:                      (A)  10 percent of the amount of any advances made   in that period; or                      (B)  $10 in total charges, fees, or other amounts;                (2)  provide more than one advance on the same day to   the same consumer;                (3)  compel or attempt to compel payment by a consumer   of a cash advance or other outstanding amounts associated with an   earned wage advance by:                      (A)  filing a suit against the consumer;                      (B)  using a third party to pursue collection of   payment from the consumer on the provider's behalf; or                      (C)  selling or assigning the outstanding amounts   to a third-party collector or debt buyer for purposes of collection   from the consumer;                (4)  charge a consumer a late fee, interest, or other   penalty for failure to repay a cash advance; or                (5)  report any information regarding the consumer's   inability to repay a cash advance to a consumer credit reporting   agency.          (b)  For purposes of Subsection (a)(1)(B), charges, fees, or   other amounts include the sum of any:                (1)  voluntary or optional charges; and                (2)  required charges associated with the earned wage   advance.          Sec. 342.705.  RULES. The finance commission may adopt   rules as necessary to implement this subchapter.          Sec. 342.706.  DATA COLLECTION. The finance commission may   require providers to submit information considered beneficial to   public policy and consumer protection in this state to the   commission.          SECTION 3.  This Act takes effect September 1, 2025.