SB 3000

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
(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
(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
(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
(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
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
(1)  charge, contract for, or receive in a 30-day
(A)  10 percent of the amount of any advances made
(B)  $10 in total charges, fees, or other amounts;
(2)  provide more than one advance on the same day to
(3)  compel or attempt to compel payment by a consumer
of a cash advance or other outstanding amounts associated with an
(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
(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
(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
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
SECTION 3.  This Act takes effect September 1, 2025.