No. 29413 (New Rule): R152-42. Uniform Debt-Management Services Act Rules.

DAR File No.: 29413
Filed: 01/12/2007, 03:37
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

During the 2006 General Session, the Utah State Legislature passed S.B. 79, enacting the Uniform Debt-Management Services Act, which becomes effective on 07/01/2007. It is necessary for the Division of Consumer Protection to enact this rule to administer the Uniform Debt-Management Services Act. (DAR NOTE: S.B. 79 (2006) is found at Chapter 154, Laws of Utah 2006, and will be effective 07/01/2007.)

Summary of the rule or change:

This rule is necessary for the administration of the Uniform Debt-Management Services Act, Title 13, Chapter 42. The rule sets out the requirements of initial and renewal applications for registration as a provider of debt-management services. The rule establishes the procedure for how providers of debt-management services who are licensed to provide debt-management services in another state may submit that license and registration in this state, rather than the application form required by the Uniform Debt-Management Services Act. The rule sets out how to comply with the accreditation and certification requirements established by the Uniform Debt-Management Services Act. The rule also establishes 2007 as a base year for determining certain dollar amounts set out in the Act.

State statutory or constitutional authorization for this rule:

Subsections 13-42-102(9)(c), 13-42-112(2), 13-42-132(3), and 13-42-132(6)

Anticipated cost or savings to:

the state budget:

The rule presents no anticipated costs or savings to the state budget other than those anticipated by S.B. 79 (2006).

local governments:

This rule has no impact on local governments because local governments neither regulate debt-management services nor provide those services; therefore, there are no anticipated costs or savings to local governments.

other persons:

Providers of debt-management services will face certain costs in complying with the provisions of the Uniform Debt-Management Services Act and this rule. These costs include costs associated with obtaining the surety bond or substitute, cost associated with obtaining the insurance required by the Uniform Debt-Management Services Act, and costs associated with complying with the accreditation and certification requirements set out in the Act.

Compliance costs for affected persons:

Providers of debt-management services will face certain costs in complying with the provisions of the Uniform Debt-Management Services Act and this rule. These costs include costs associated with obtaining the surety bond or substitute, cost associated with obtaining the insurance required by the Uniform Debt-Management Services Act, and costs associated with complying with the accreditation and certification requirements set out in the Act.

Comments by the department head on the fiscal impact the rule may have on businesses:

No fiscal impact to businesses is anticipated as a result of this rule filing beyond those already anticipated by passage of S.B. 79 (2006). Francine Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Thomas Copeland at the above address, by phone at 801-530-6601, by FAX at 801-530-6001, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/05/2007

This rule may become effective on:

03/12/2007

Authorized by:

Kevin V Olsen, Director

RULE TEXT

R152. Commerce, Consumer Protection.

R152-42. Uniform Debt-Management Services Act Rules.

R152-42-1. Authority, Purpose and Definitions.

These rules are promulgated under Utah Code Section 13-42-102(9)(c), 13-42-112(2), 13-42-132(3), and 13-42-132(6) to facilitate the orderly administration of the Uniform Debt-Management Services Act, Utah Code Title 13, Chapter 42.

 

R152-42-2. Application for Registration.

In addition to the requirements contained in Sections 13-42-105 and 13-42-106, applicants shall submit to the division with their initial application a copy of the applicant's articles of incorporation or other organizational documentation showing the applicant's current legal status.

 

R152-42-3. Registration in Another State.

(1) If a provider holds a license or certificate of registration authorizing it to provide debt-management services in another state, the provider may submit a copy of that license or certificate and the application for that license or certificate, instead of an application in the form prescribed by the Uniform Debt-Management Services Act, Utah Code Title 13, Chapter 42, provided that the license or certificate was issued by one of the following states:

(a) Rhode Island, pursuant to Rhode Island General Laws, Title 19, Chapter 14.8;

(b) Delaware, pursuant to Delaware Code Annotated, Title 6, Chapter 24A; or

(c) any state approved by the Division by rule.

(2) To qualify under this rule, the provider must meet all the requirements of Utah Code Section 13-42-112, including filing a surety bond or substitute in accordance with Utah Code Section 13-42-113 or 13-42-114 that is solely payable or available to this state and to individuals who reside in this state.

 

R152-42-4. Independent Accrediting Organizations.

In order to comply with requirements of Utah Code Section 13-42-106(8) a provider must:

(1) be a member of the National Foundation for Credit Counseling;

(2) be a member of the Association of Independent Consumer Credit Counseling Agencies;

(3) be accredited by the Council on Accreditation;

(4) be certified meeting the International Organization for Standardization 9001:2000 standards; or

(5) be accredited by an accrediting body approved by the Division by rule.

 

R152-42-5. Certification of Counselors.

In order to comply with the requirements of Utah Code Section 13-42-106(9), a provider must:

(1) be a member of the National Foundation for Credit Counseling;

(2) be a member of the Association of Independent Consumer Credit Counseling Agencies;

(3) be approved by the United States Trustees to provide credit counseling pursuant to 11 U.S.C. 111; or

(4) show that each provider's credit counselors are certified by one of the following organizations:

(a) the Association of Financial Counseling and Planning Education;

(b) the National Association of Certified Credit Counselors; or

(c) any other organization approved by the Division by rule.

 

R152-42-6. Adoption of Base Year.

Pursuant to Utah Code Section 13-42-132(6), the Division adopts a base year of 2007.

 

KEY: debt-management, consumer protection

Date of Enactment or Last Substantive Amendment: 2007

Authorizing, and Implemented or Interpreted Law: 13-42-102(9)(c); 13-42-112(2); 13-42-132(3); 13-42-132(6)