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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0094*
SENATE BILL 94
I3, I2 6lr0105
(PRE–FILED) CF HB 237
By: Chair, Finance Committee (By Request – Departmental – Labor)
Requested: September 30, 2025
Introduced and read first time: January 14, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 1, 2026
CHAPTER ______
AN ACT concerning 1
Commercial Law – Earned Wage Access – Revisions 2
FOR the purpose of prohibiting certain tipping practices; altering the timeline for certain 3
refunds; subjecting certain earned wage access providers and loan lenders to certain 4
consumer loan requirements; and generally relating to earned wage access. 5
BY renumbering 6
Article – Commercial Law 7
Section 12–1507 8
to be Section 12–1510 9
Annotated Code of Maryland 10
(2013 Replacement Volume and 2025 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Commercial Law 13
Section 12–128, 12–318, and 12–1502 12–1503 and 12–1504 14
Annotated Code of Maryland 15
(2013 Replacement Volume and 2025 Supplement) 16
BY adding to 17
Article – Commercial Law 18
Section 12–1507 through 12–1509 19
Annotated Code of Maryland 20
(2013 Replacement Volume and 2025 Supplement) 21
2 SENATE BILL 94
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That Section(s) 12–1507 of Article – Commercial Law of the Annotated Code of Maryland 2
be renumbered to be Section(s) 12–1510. 3
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
as follows: 5
Article – Commercial Law 6
12–128. 7
(a) A lender [who gives consumers an option to provide the lender a tip shall: 8
(1) Disclose to the consumer to whom the tip will be allocated; and 9
(2) Set the default tip at zero] MAY NOT ACCEPT A TIP FROM A 10
CONSUMER OR GIVE A CONSUMER THE OPTION TO PROVIDE A TIP. 11
(b) A lender may not directly or indirectly suggest that providing a tip will 12
influence: 13
(1) The lender’s willingness to provide a loan to a consumer at any time; or 14
(2) The terms of any loan offered to the consumer by that lender. 15
(c) A lender who receives a tip [that would otherwise create a rate of interest 16
above that allowed under this subtitle] may not be found in violation of this subtitle if the 17
lender returns all of the tip [or that portion of the tip necessary to reduce the rate of interest 18
to an amount allowed under this subtitle ] within [30 calendar] 7 days after receiving the 19
tip. 20
(d) A lender shall prominently disclose that[: 21
(1) Providing a tip does not influence the lender’s willingness to provide a 22
loan to the consumer at any time; and 23
(2) Any tip paid by the consumer does not inure to the direct benefit of any 24
specific employee of the lender or any other individual ] IT IS PR OHIBITED FROM 25
ACCEPTING A TIP FROM A CONSUMER. 26
12–318. 27
(a) A lender [who gives consumers an option to provide the lender a tip shall: 28
(1) disclose to the consumer to whom the tip will be allocated; and 29
SENATE BILL 94 3
(2) set the default tip at zero] MAY NOT ACCEPT FROM ANY CONSUMER, 1
OR GIVE ANY CONSUMER THE OPTION TO PROVIDE, A TIP. 2
(b) A lender may not directly or indirectly suggest that providing a tip will 3
influence: 4
(1) the lender’s willingness to provide a loan to a consumer at any time; or 5
(2) the terms of any loan offered to the consumer by that lender. 6
(c) A lender who receives a tip [that would otherwise create a rate of interest 7
above that allowed under this subtitle] may not be found in violation of this subtitle if the 8
lender returns all of the tip [or that portion of the tip necessary to reduce the rate of interest 9
to an amount allowed under this subtitle ] within [30 calendar] 7 days after receiving the 10
tip. 11
(d) A lender shall prominently disclose that[: 12
(1) Providing a tip does not influence the lender’s willingness to provide a 13
loan to the consumer at any time; and 14
(2) Any tip paid by the consumer does not inure to the direct benefit of any 15
specific employee of the lender or any other individual ] IT IS PROHIBITED FRO M 16
ACCEPTING A TIP FROM A CONSUMER. 17
12–1502. 18
(a) A person may not engage in the business of providing earned wage access 19
unless the person is licensed under or is exempt from the licensing requirements of Title 20
11, Subtitle 2 of the Financial Institutions Article. 21
(b) Failure to obtain a consumer loan license shall subject a provider to the 22
enforcement provisions of Title 11, Subtitle 2 of the Financial Institutions Article. 23
(c) An earned wage access provider licensed under Title 11, Subtitle 2 of the 24
Financial Institutions Article and subject to this subtitle is exempt from other provisions 25
of State law governing lending, credit, or debt, including the provisions of Subtitle 1, 26
Subtitle 3, Subtitle 9, and Subtitle 10 of this title WITH THE EXCEPTION OF §§ 12–304, 27
12–305, AND 12–316.1 OF THIS TITLE. 28
(d) Earned wage access services provided in accordance with this subtitle may not 29
be considered: 30
(1) A money transmission; or 31
4 SENATE BILL 94
(2) A violation of or noncompliance with State laws governing deductions 1
from payroll, salary, wages, compensation, or other income or the purchase, sale, 2
assignment, or order for unpaid but earned wages. 3
12–1503. 4
(a) A provider of earned wage access shall: 5
(1) Develop and implement policies and procedures to respond to questions 6
raised by consumers; 7
(2) Address complaints from consumers in an expedient manner; 8
(3) Whenever the provider offers a consumer the option to receive earned 9
wage access services for a fee [or solicits an optional tip, gratuity, or other donation], offer 10
[to] the consumer at least one reasonable option to obtain earned wage access at no cost to 11
the consumer; 12
(4) Clearly explain to a consumer how to elect a no –cost option described 13
in item (3) of this subsection; 14
(5) Before entering into an agreement with a consumer for the provision of 15
earned wage access services: 16
(i) Inform the consumer of the consumer’s rights under the 17
agreement; and 18
(ii) Fully and clearly disclose all fees associated with the earned 19
wage access services; 20
(6) Inform a consumer of any material changes to the terms and conditions 21
of the earned wage access services before implementing those changes for that consumer; 22
(7) Allow a consumer to cancel use of the provider’s earned wage access 23
services at any time without incurring a cancellation fee imposed by the provider; 24
(8) Comply with all applicable local, state, and federal privacy and 25
information security laws; 26
(9) [If a provider solicits, charges, or receives a tip, gratuity, or other 27
donation from a consumer: 28
(i) Set the default tip, if any, at zero; 29
(ii) Clearly and conspicuously disclose to the consumer immediately 30
prior to each transaction that any tip paid by the consumer does not inure to the direct 31
benefit of any specific employee of the provider or any other individual; 32
SENATE BILL 94 5
(iii) Clearly and conspicuously disclose to the consumer immediately 1
prior to each transaction that a tip, gratuity, or other donation amount is optional and 2
voluntary; and 3
(iv)] Clearly and conspicuously disclose in the prov ider’s service 4
contract with the consumer that[: 5
1. tips, gratuities, or other donations are voluntary; and 6
2. The offering of earned wage access services, including the 7
amount of proceeds a consumer is eligible to request and the frequency with which proceeds 8
are provided to a consumer, is not contingent on whether the consumer pays any tip, 9
gratuity, or other donation or on the size of the tip, gratuity, or other donation ] THE 10
PROVIDER IS PROHIBIT ED BY LAW FROM SOLIC ITING OR RETAINING T IPS, 11
GRATUITIES, OR OTHER DONATIONS; 12
(10) Provide proceeds to a consumer by any means mutually agreed upon by 13
the consumer and the provider; and 14
(11) Except as provided in subsection (b) of this section, if the provider will 15
seek repayment of outstanding proc eeds or payment of fees or other amounts owed or 16
incurred[, including voluntary tips, gratuities, or other donations, ] from a consumer’s 17
account at a bank in connection with earned wage access services covered by this subtitle, 18
including by means of electric fund transfer: 19
(i) Comply with the federal Electronic Fund Transfer Act and 20
regulations adopted to implement the Act; and 21
(ii) Reimburse the consumer within 5 business days for the full 22
amount of any overdraft or nonsufficient fund fees imposed on a consumer by the 23
consumer’s bank that were caused by the provider attempting to seek repayment of any 24
outstanding proceeds or payment of fees[, tips, gratuities, or other donations] in connection 25
with earned wage access services covered by this subtitle. 26
(b) Subsection (a)(11) of this section does not apply to a provider seeking 27
repayment of outstanding proceeds or payment of fees or other amounts owed that were 28
received or incurred by a consumer through fraudulent or other unlawful means. 29
12–1504. 30
A provider of earned wage access may not: 31
(1) Share with an employer any [fees, tips, or other] charges received from 32
a consumer for earned wage access; 33
6 SENATE BILL 94
(2) SOLICIT OR CHARGE A TIP; 1
(3) Condition a consumer’s ability to obtain earned wage access on the 2
consumer’s ability or willingness to pay the provider a tip; 3
[(3)] (4) Charge a consumer a late fee, interest, or other penalty for 4
failure to pay any proceeds[,] OR fees[, or tips]; 5
[(4)] (5) Report any information about a consumer’s failure to pay any 6
proceeds[,] OR fees[, or tips] to any consumer reporting agency; 7
[(5)] (6) Obtain a consumer’s credit report as a method of qualifying the 8
consumer for earned wage access; 9
[(6)] (7) Receive interest from a consumer; or 10
[(7)] (8) Compel or attempt to compel payment by a consumer of any 11
proceeds, fees, tips, gratuities, or other donations through: 12
(i) A civil action against the consumer; 13
(ii) The use of a third party to pursue collection from the consumer 14
on the provider’s behalf; or 15
(iii) The sale or assignment of outstanding amounts to a third–party 16
collector or debt buyer for collection from the consumer. 17
12–1507. 18
(A) A PROVIDER MAY NOT DIR ECTLY OR INDIRECTLY PRINT, PUBLISH, 19
DISTRIBUTE, OR BROADCAST ANY FALSE, MISLEADING, OR DECEPTIVE STATEMENT 20
REGARDING THE FEES, RATES, TERMS, OR CONDITIONS OF EARNED WAGE ACCESS. 21
(B) (1) IF FEES OR RATES OF FEES ARE ADVERTISED BY A LICENSEE, THE 22
COMMISSIONER MAY REQU IRE THE LICENSEE TO STATE THE FEES OR RA TES OF 23
FEES FULLY AND CLEAR LY IN ANY MANNER THE COMMISSIONER CONSIDER S 24
NECESSARY TO PREVENT MISUNDERSTANDING BY A PROSPECTIVE CONSUMER. 25
(2) SUBJECT TO ANY CONDIT ION WHICH THE COMMISSIONER MAY 26
IMPOSE TO PREVENT A FALSE IMPRESSION REGARDING THE SCOPE OR DEGREE OF 27
PROTECTION PROVIDED BY THIS SUBTITLE, THE COMMISSIONER MAY AUTHORIZE 28
OR REQUIRE A LICENSE E TO REFER TO THE FA CT THAT THE LICENSEE IS UNDER 29
STATE SUPERVISION IN THE ADVERTISING MATERIALS OF THE LICENSEE. 30
12–1508. 31
SENATE BILL 94 7
(A) IN GRANTING OR DENYIN G A CONSUMER REQUEST FOR EARNED WAGE 1
ACCESS, A LICENSEE MAY NOT D ISCRIMINATE AGAINST ANY CONSUMER ON THE 2
BASIS OF RACE , COLOR, CREED, NATIONAL ORIGIN , SEX, SEXUAL ORIENTATION , 3
GENDER IDENTITY, DISABILITY, MARITAL STATUS, OR AGE. 4
(B) DENYING A REQUEST FOR EARNED WAGE ACCESS BY A CONSUMER WHO 5
IS A MINOR IS NOT DISCRIMINATION ON THE BASIS OF AGE. 6
12–1509. 7
(A) A LICENSEE OR A PERSON EXEMPT FROM LICENSIN G UNDER THIS 8
SUBTITLE IS NOT SUBJECT TO A PENALTY FOR A VIOLATION THAT ARISES BECAUSE 9
THE LICENSEE OR PERSON EXEMPT FROM LICENSING IN GOOD FAITH: 10
(1) PERFORMED OR OMITTED TO PERFORM AN ACT IN CONFORMITY 11
WITH OR IN RELIANCE ON: 12
(I) A WRITTEN OPINION OF T HE ATTORNEY GENERAL OF 13
MARYLAND OR A REGULATION ADOPTED BY THE COMMISSIONER; 14
(II) A WRITTEN OPINION BY T HE COMMISSIONER GIVEN ON 15
REQUEST OF THE LICENSEE OR PERSON EXEMPT FROM LICENSING; OR 16
(III) AN INTERPRETATION BY THE COMMISSIONER IN A WRITTEN 17
NOTICE OR EXAMINATION REPORT; OR 18
(2) USED A FORM OR PROCED URE THAT HAS BEEN AP PROVED IN 19
WRITING BY THE COMMISSIONER AND THE ATTORNEY GENERAL. 20
(B) THE PROVISIONS OF SUBSECTION (A) OF THIS SECTION DO N OT APPLY 21
TO AN ACT OR OMISSION TO ACT THAT OCCURS AFTER: 22
(1) THE OPINION, REGULATION, OR INTERPRETATION RELIED ON IS 23
AMENDED, REPEALED, OR DETERMINED TO BE INVALID FOR ANY REAS ON BY ANY 24
JUDICIAL OR OTHER AUTHORITY; OR 25
(2) APPROVAL FOR A FORM O R PROCEDURE IS AMEND ED, 26
RESCINDED, OR DETERMINED TO BE INVALID FOR ANY REASON BY ANY JUDICIAL OR 27
OTHER AUTHORITY. 28
(C) THIS SECTION MAY NOT BE CONSTRUED TO: 29
8 SENATE BILL 94
(1) LIMIT THE IMPOSITION OF ANY CIVIL OR CRIMINAL PENALTY FOR 1
A KNOWING OR WILLFUL VIOLATION OF THIS SUBTITLE; OR 2
(2) LIMIT THE POWER OF TH E COMMISSIONER OR THE C OURTS TO 3
ORDER A REFUND TO A CONSUMER OF MONEY CO LLECTED IN VIOLATION OF THIS 4
SUBTITLE. 5
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 6
October 1, 2026. 7
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.