HB 5462 — Relating to the regulation of earned income access providers and earned income access transactions; requiring an occupational license; authorizing fees; providing an administrative penalty; creating a criminal offense.

Summary

Relating to the regulation of earned income access providers and earned income access transactions; requiring an occupational license; authorizing fees; providing an administrative penalty; creating a criminal offense.

Bill Text

Compared against the Texas statutes as published AI-generated reading aid — verify against the official bill.

This bill amends 4 section(s) of the Texas statutes: Section 14.107, Finance Code, Section 14.112(a), Finance Code, Section 14.201, Finance Code, Section 411.095(a), Government Code.

• Section 14.107, Finance Code

  and or → , and 398 , or 398

  amended

• Section 14.112(a), Finance Code

  and → , and 398

  amended

• Section 14.201, Finance Code

  (5) → (5) Chapter 398; (6)

  amended

• (3) → Chapter 398, Chapter 398, (3) an earned income access provider who violates or causes a violation of Chapter 398 or a rule adopted under Chapter 398; (4)

  amended

• CHAPTER 398. EARNED INCOME ACCESS TRANSACTIONS SUBCHAPTER A. GENERAL PROVISIONS Sec. 398.001. SHORT TITLE. This chapter may be cited as the Texas Earned Income Access Act. Sec. 398.002. DEFINITIONS. In this chapter: (1) "Commissioner" means the consumer credit commissioner. (2) "Consumer" means an individual who resides in this state. (3) "Debt collection activity" means: (A) the business of collecting any debts, directly or indirectly, owed or due another person or any debts asserted to be owed or due another person; (B) the business of a buyer of debts seeking to collect the debts, directly or indirectly; or (C) the business of a creditor collecting its own debts if the creditor uses a name other than the creditor's own name that would suggest or indicate that someone other than the creditor is collecting or attempting to collect the debts. (4) "Earned but unpaid income" means salary, wages, or compensation that has been earned by, or has accrued to the benefit of, a consumer for labor or services performed for or on behalf of an obligor but has not, at the time of the payment of proceeds, been paid to the consumer by the obligor. (5) "Earned income access provider" or "provider" means a person that: (A) provides or offers to provide, on behalf of an obligor, an earned income access transaction to a consumer earning salary, wages, or compensation from the obligor; (B) offers an earned income access transaction to a consumer; or (C) enters into an earned income access transaction with a consumer. (6) "Earned income access rate cap" means the limit, established by the commissioner, on the amount that may be charged to or received from a consumer for an earned income access transaction, without option to the consumer. (7) "Earned income access transaction" means a payment of earned but unpaid income to a consumer occurring on a day other than: (A) the consumer's regular payday; or (B) a regularly scheduled day on which the obligor pays to the consumer wages or compensation that has been earned by or has accrued to the benefit of the consumer. (8) "Fee": (A) means: (i) an amount charged to a consumer by a provider for an earned income access transaction; and (ii) an amount received by a provider from a consumer for an earned income access transaction; and (B) includes an amount paid voluntarily as described by Section 398.103(a)(11). (9) "Finance commission" means the Finance Commission of Texas. (10) "Legal representative" means an executor, administrator, trustee, conservator, receiver, or other person appointed by a court or by trust or will to be empowered to control the person or property of any person. The term includes a successor to the person in accordance with the provisions of the appointment. (11) "Nonrecourse" means, with respect to an earned income access transaction, the unavailability of a legal cause of action or remedy that may be brought against a consumer relating to the transaction. (12) "Obligor" means a person who is obligated to pay a consumer a sum of money on an hourly, project-based, piecework, or other basis for labor or services performed by the consumer for or on behalf of the person. The term does not include: (A) a customer of an obligor; or (B) a third party, other than a person described by Paragraph (A), that has an obligation to make a payment to a consumer based solely on the consumer's agency relationship with the obligor. (13) "Proceeds" means money received by a consumer under an earned income access transaction. Sec. 398.003. CONTROL. (a) For purposes of this chapter, a person has control of another person if the person has possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the other person through the ownership of voting shares or in another manner. (b) The following create a presumption that a person has control of another person: (1) a person's ownership of, control of, or having the power to vote 20 percent or more of: (

  amended

• Section 411.095(a), Government Code

  or or → or 398, or 398,

  amended

Action History

1. April 07, 2025

   Referred to Pensions, Investments & Financial Services

2. April 07, 2025

   Read first time

3. March 14, 2025

   Filed

Sponsors

• Tom Oliverson · Primary

Subjects