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.