Provide for licensure of debt services providers

As Introduced

136th
General Assembly

Regular
Session
S. B. No. 256

2025-2026

Senator Lang

Cosponsors: Senators Brenner, Manning

To
amend section 9.79; to enact new sections 4710.01, 4710.02, 4710.03,
and 4710.04 and sections 4710.05, 4710.06, 4710.07, 4710.08, 4710.09,
4710.10, 4710.11, 4710.12, 4710.13, 4710.14, 4710.15, 4710.16,
4710.17, 4710.18, and 4710.19; and to repeal sections 4710.01,
4710.02, 4710.03, 4710.04, and 4710.99 of the Revised Code
to
provide for the licensure of debt services providers.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
section 9.79 be amended and new sections 4710.01, 4710.02, 4710.03,
and 4710.04 and sections 4710.05, 4710.06, 4710.07, 4710.08, 4710.09,
4710.10, 4710.11, 4710.12, 4710.13, 4710.14, 4710.15, 4710.16,
4710.17, 4710.18, and 4710.19 of the Revised Code be enacted to read
as follows:

Sec.
9.79.
(A)
As used in this section:

(1)
"License" means an authorization evidenced by a license,
certificate, registration, permit, card, or other authority that is
issued or conferred by a licensing authority to an individual by
which the individual has or claims the privilege to engage in a
profession, occupation, or occupational activity over which the
licensing authority has jurisdiction. "License" does not
include a registration under section 101.72, 101.92, or 121.62 of the
Revised Code.

(2)
"Licensing authority" means a state agency that issues
licenses under Title XLVII or any other provision of the Revised Code
to practice an occupation or profession.

(3)
"Offense of violence" has the same meaning as in section
2901.01 of the Revised Code.

(4)
"Sexually oriented offense" has the same meaning as in
section 2950.01 of the Revised Code.

(5)
"State agency" has the same meaning as in section 1.60 of
the Revised Code.

(6)
"Community control sanction" has the same meaning as in
section 2929.01 of the Revised Code.

(7)
"Post-release control sanction" has the same meaning as in
section 2967.01 of the Revised Code.

(8)
"Fiduciary duty" means a duty to act for someone else's
benefit, while subordinating one's personal interest to that of the
other person.

(B)(1)
Notwithstanding any provision of the Revised Code to the contrary,
subject to division (L) of this section, for each type of license
issued or conferred by a licensing authority, the licensing authority
shall establish within one hundred eighty days after April 12, 2021,
a list of specific criminal offenses for which a conviction, judicial
finding of guilt, or plea of guilty may disqualify an individual from
obtaining an initial license. The licensing authority shall make the
list available to the public on the licensing authority's web site
pursuant to division (C) of section 9.78 of the Revised Code. The
licensing authority, in adopting the list, shall do both of the
following:

(a)
Identify each disqualifying offense by name or by the Revised Code
section number that creates the offense;

(b)
Include in the list only criminal offenses that are directly related
to the duties and responsibilities of the licensed occupation.

(2)
The licensing authority may include in the list established under
division (B)(1) of this section an existing or former municipal
ordinance or law of this or any other state or the United States that
is substantially equivalent to any section or offense included in the
list adopted under division (B)(1) of this section.

(C)(1)
Except as provided in division (C)(2) or (D) of this section and
subject to division (L) of this section, a licensing authority shall
not refuse to issue an initial license to an individual based on any
of the following:

(a)
Solely or in part on a conviction of, judicial finding of guilt of,
or plea of guilty to an offense;

(b)
A criminal charge that does not result in a conviction, judicial
finding of guilt, or plea of guilty;

(c)
A nonspecific qualification such as "moral turpitude" or
lack of "moral character";

(d)
A disqualifying offense included in the list established under
division (B) of this section, if consideration of that offense occurs
after the time periods permitted in division (D) of this section.

(2)
If the individual was convicted of, found guilty pursuant to a
judicial finding of guilt of, or pleaded guilty to a disqualifying
offense included in the list established under division (B) of this
section for the license for which the individual applied, the
licensing authority may take the conviction, judicial finding of
guilt, or plea of guilty into consideration in accordance with
division (D) of this section.

(D)(1)
A licensing authority that may, under division (C)(2) of this
section, consider a conviction of, judicial finding of guilt of, or
plea of guilty to an offense in determining whether to refuse to
issue an initial license to an individual shall consider all of the
following factors and shall use a preponderance of the evidence
standard in evaluating those factors to determine whether the
conviction, judicial finding of guilt, or plea of guilty disqualifies
the individual from receiving the license:

(a)
The nature and seriousness of the offense for which the individual
was convicted, found guilty pursuant to a judicial finding of guilt,
or pleaded guilty;

(b)
The passage of time since the individual committed the offense;

(c)
The relationship of the offense to the ability, capacity, and fitness
required to perform the duties and discharge the responsibilities of
the occupation;

(d)
Any evidence of mitigating rehabilitation or treatment undertaken by
the individual, including whether the individual has been issued a
certificate of qualification for employment under section 2953.25 of
the Revised Code or a certificate of achievement and employability
under section 2961.22 of the Revised Code;

(e)
Whether the denial of a license is reasonably necessary to ensure
public safety.

(2)
A licensing authority may take a disqualifying offense included in
the list established under division (B) of this section into account
only during the following time periods:

(a)
For a conviction of, judicial finding of guilt of, or plea of guilty
to a disqualifying offense that does not involve a breach of
fiduciary duty and that is not an offense of violence or a sexually
oriented offense, whichever of the following is later, provided the
individual was not convicted of, found guilty pursuant to a judicial
finding of guilt of, and did not enter a plea of guilty to any other
offense during the applicable period:

(i)
Five years from the date of conviction, judicial finding of guilt, or
plea of guilty;

(ii)
Five years from the date of the release from incarceration;

(iii)
The time period specified in division (D)(3) of this section.

(b)
For a conviction of, judicial finding of guilt of, or plea of guilty
to a disqualifying offense that involves a breach of fiduciary duty
and that is not an offense of violence or a sexually oriented
offense, whichever of the following is later, provided the individual
was not convicted of, found guilty pursuant to a judicial finding of
guilt of, and did not enter a plea of guilty to any other offense
during the applicable period:

(i)
Ten years from the date of conviction, judicial finding of guilt, or
plea of guilty;

(ii)
Ten years from the date of the release from incarceration;

(iii)
The time period specified in division (D)(4) of this section.

(c)
For a conviction of, judicial finding of guilt of, or plea of guilty
to a disqualifying offense that is an offense of violence or a
sexually oriented offense, any time.

(3)
If an individual is subject to a community control sanction, parole,
or post-release control sanction based on a conviction of, judicial
finding of guilt of, or plea of guilty to a disqualifying offense
included in the list established under division (B) of this section
that is not an offense of violence or a sexually oriented offense, a
licensing authority may take the offense into account during the
following time periods:

(a)
If the community control sanction, parole, or post-release control
sanction was for a term of less than five years, the period of the
community control sanction, parole, or post-release control sanction
plus the number of years after the date of final discharge of the
community control sanction, parole, or post-release control sanction
necessary to equal five years;

(b)
If the community control sanction, parole, or post-release control
sanction was for a term of five years or more, the period of the
community control sanction, parole, or post-release control sanction.

(4)
If an individual is subject to a community control sanction, parole,
or post-release control sanction based on a conviction of, judicial
finding of guilt of, or plea of guilty to a disqualifying offense
included in the list established under division (B) of this section
that involved a breach of fiduciary duty and that is not an offense
of violence or a sexually oriented offense, a licensing authority may
take the offense into account during the following time periods:

(a)
If the community control sanction, parole, or post-release control
sanction was for a term of less than ten years, for the period of the
community control sanction, parole, or post-release control sanction
plus the number of years after the date of final discharge of the
community control sanction, parole, or post-release control sanction
necessary to equal ten years;

(b)
If the community control sanction, parole, or post-release control
sanction was for a term of ten years or more, the period of the
community control sanction, parole, or post-release control sanction.

(E)
If a licensing authority refuses to issue an initial license to an
individual pursuant to division (D) of this section, the licensing
authority shall notify the individual in writing of all of the
following:

(1)
The grounds and reasons for the refusal, including an explanation of
the licensing authority's application of the factors under division
(D) of this section to the evidence the licensing authority used to
reach the decision;

(2)
The individual's right to a hearing regarding the licensing
authority's decision under section 119.06 of the Revised Code;

(3)
The earliest date the individual may reapply for a license;

(4)
Notice that evidence of rehabilitation may be considered on
reapplication.

(F)
In an administrative hearing or civil action reviewing a licensing
authority's refusal under divisions (B) to (K) of this section to
issue an initial license to an individual, the licensing authority
has the burden of proof on the question of whether the individual's
conviction of, judicial finding of guilt of, or plea of guilty to an
offense directly relates to the licensed occupation.

(G)
A licensing authority that is authorized by law to limit or otherwise
place restrictions on a license may do so to comply with the terms
and conditions of a community control sanction, post-release control
sanction, or an intervention plan established in accordance with
section 2951.041 of the Revised Code.

(H)
Each licensing authority shall adopt any rules that it determines are
necessary to implement divisions (B) to (F) of this section.

(I)
Divisions (B) to (K) of this section do not apply to any of the
following:

(1)
Any position for which appointment requires compliance with section
109.77 of the Revised Code or in which an individual may satisfy the
requirements for appointment or election by complying with that
section;

(2)
Any position for which federal law requires disqualification from
licensure or employment based on a conviction of, judicial finding of
guilt of, or plea of guilty to an offense;

(3)
Community-based long-term care services certificates and
community-based long-term care services contracts or grants issued
under section 173.381 of the Revised Code;

(4)
Certifications of a provider to provide community-based long-term
care services under section 173.391 of the Revised Code;

(5)
Certificates of authority to a health insuring corporation issued
under section 1751.05 of the Revised Code;

(6)
Licenses to operate a home or residential care facility issued under
section 3721.07 of the Revised Code;

(7)
Certificates of authority to make contracts of indemnity issued under
section 3931.10 of the Revised Code;

(8)
Supported living certificates issued under section 5123.161 of the
Revised Code;

(9)
Certificates to administer medications and perform health-related
activities under section 5123.45 of the Revised Code
;

(10)
Debt services provider licenses issued under Chapter 4710. of the
Revised Code
.

(J)
Nothing in divisions (B) to (K) of this section prohibits a licensing
authority from considering either of the following when making a
determination whether to issue a license to an individual:

(1)
Past disciplinary action taken by the licensing authority against the
individual;

(2)
Past disciplinary action taken against the individual by an authority
in another state that issues a license that is substantially similar
to the license for which the individual applies.

(K)
Notwithstanding any provision of the Revised Code to the contrary, if
a licensing authority issues a license to an individual after
considering a conviction of, judicial finding of guilt of, or plea of
guilty to an offense under division (D) of this section, the
licensing authority shall not refuse to renew the individual's
license based on that conviction, judicial finding of guilt, or plea
of guilty.

(L)(1)
Notwithstanding any provision of the Revised Code to the contrary,
subject to division (G) of this section, during the period commencing
on
the
effective date of this amendment
April
4, 2023,
and
ending on

the date that is two years after the effective date of this amendment

April 4, 2025,
no
licensing authority shall refuse to issue a license to a person,
limit or otherwise place restrictions on a person's license, or
suspend or revoke a person's license under any provision of the
Revised Code that takes effect on or after
the
effective date of this amendment
April
4, 2023,
and
prior to
the
date that is two years after the effective date of this amendment

April
4, 2025,
and
that requires or authorizes such a refusal, limitation, restriction,
suspension, or revocation as a result of the person's conviction of,
judicial finding of guilt of, or plea of guilty to an offense.

(2)
Divisions (B) to (F), and (H) to (K), of this section do not apply
with respect to any provision of the Revised Code that takes effect
on or after
the
effective date of this amendment
April
4, 2023,
and
prior to
the
date that is two years after the effective date of this amendment

April
4, 2025,
and
that requires or authorizes a licensing authority to refuse to issue
a license to a person, to limit or otherwise place restrictions on a
person's license, or to suspend or revoke a person's license as a
result of the person's conviction of, judicial finding of guilt of,
or plea of guilty to an offense.

Sec.
4710.01.
As
used in this chapter:

(A)
"Agreement" means a contract between a licensee and a
consumer that meets the requirements of section 4710.08 of the
Revised Code.

(B)
"Bank" means an entity that solicits, receives, or accepts
money or its equivalent for deposit as a business, whether the
deposit is made by check or is evidenced by a certificate of deposit,
passbook, note, receipt, ledger card, or otherwise. "Bank"
includes a state bank or any entity doing business as a commercial
bank, savings bank, savings and loan association, mortgage bank,
credit union, or trust company under authority granted by the office
of the comptroller of the currency or the former office of thrift
supervision, the appropriate bank regulatory authority of another
state of the United States, or the appropriate bank regulatory
authority of another country.

(C)
"Business address" means the designation of the physical
location of a business, including the name and number of a street.

(D)
"Business day" has the same meaning as in section 3901.81
of the Revised Code.

(E)
"Consumer" means an individual who executes an agreement
with a licensee.

(F)
"Credit counseling" means advising and educating
individuals on acquiring and managing debt.

(G)
"Creditor" means a person who extends credit to a consumer,
including any agent or assignee of the person.

(H)(1)
"Debt resolution services" means any program or service
represented, directly or by implication, to renegotiate, settle, or
in any way alter the terms of payment or other terms of the debt
between a consumer and one or more unsecured creditors, including a
reduction in the balance, interest rate, or fees owed by a consumer
to an unsecured creditor.

(2)
"Debt resolution services" do not include credit
counseling.

(I)
"Dedicated account" means an account used pursuant to
section 4710.08 of the Revised Code.

(J)
"Dedicated account service provider" means an entity that
facilitates transactions authorized by the consumer pursuant to the
terms of 16 C.F.R. 310.4(a)(5)(ii).

(K)
"Key officer" includes the chief executive officer, chief
financial officer, chief compliance officer, and members of the board
of directors of a business.

(L)
"Licensee" means a provider of debt resolution services
that possesses a valid license issued under this chapter.

(M)
"Person" means any individual, group, unincorporated
association, limited or general partnership, corporation, or other
business entity.

(N)
"State" means any state of the United States, the District
of Columbia, Puerto Rico, the Northern Mariana Islands, and any other
territory, possession, or protectorate of the United States.

Sec.
4710.02.
(A)
Except as otherwise provided in section 4710.03 of the Revised Code,
no person shall provide or offer to provide debt resolution services
to consumers who reside in this state without first obtaining a debt
resolution services license from the superintendent of financial
institutions.

(B)
A debt resolution services license corresponds to the primary
business address of the licensee. A licensee is not required to
obtain a separate license for each business location in this state.

(C)
Licenses issued under this section are not transferable or
assignable.

(D)
Prior to offering or providing debt resolution services to consumers
who reside in this state, a licensee shall file a surety bond in
favor of this state in an amount, not to exceed fifty thousand
dollars, prescribed by rule of the superintendent.

(E)
A licensee shall not provide debt resolution services to consumers
who reside in this state under any business name other than the
following:

(1)
The business name that is listed on the license;

(2)
A fictitious business name registered with the secretary of state and
provided to the superintendent.

(F)
The superintendent shall adopt rules in accordance with Chapter 119.
of the Revised Code as necessary to administer applications for and
issuance of the license required by this chapter. Such rules may
require reasonable fees for investigating applicants, licensure, and
renewal.

Sec.
4710.03.
(A)
None of the following are subject to this chapter:

(1)
A person organized under section 501(c) or 501(q) of the "Internal
Revenue Code of 1986," 26 U.S.C. 1, et seq.;

(2)
A judicial officer, including an individual acting under the
direction of a court;

(3)
A bank, including agents and employees of a bank acting within the
scope of such agency or employment;

(4)
An attorney licensed to practice law in this state who provides debt
resolution services within an attorney-client relationship;

(5)
A creditor or employee of a creditor, acting within the scope of such
employment, that negotiates debt resolution with consumers or with
licensees acting on behalf of consumers;

(6)
An assignee or trustee for the benefit of creditors;

(7)
Officers or employees of the United States or any state who perform
debt resolution services on behalf of the federal government, a
state, a municipal corporation, or a state agency, and who receive
compensation solely from the governmental entity;

(8)
Certified public accountants licensed in this state who provide debt
resolution services within an accountant-client relationship;

(9)
Dedicated account service providers that do not otherwise provide
debt resolution services for consumers;

(10)
Persons that provide debt resolution services exclusively to
individuals who do not reside in this state or who the person has no
reason to know reside in this state at the time the person agrees to
provide the debt resolution services;

(11)
Persons that provide credit counseling services only and who do not
attempt to negotiate or settle a debt.

(B)
Neither of the following are required to obtain a license under
section 4710.02 of the Revised Code:

(1)
Employees of a licensee acting within the scope of employment;

(2)
Persons who market on behalf of licensees and do not otherwise
provide debt resolution services.

Sec.
4710.04.
(A)
A person that seeks a license to provide debt resolution services to
consumers who reside in this state or a licensee that seeks to renew
a license issued under this chapter shall apply to the superintendent
of financial institutions in the form and manner prescribed by the
superintendent. A license to provide debt resolution services is
valid for two years after the date of issuance or, in the case of a
renewal, two years after the date the previous license expires.

(B)
The application for licensure or renewal must be signed by the
applicant under oath and shall include all of the following
information:

(1)
Proof that the applicant is licensed, registered, or certified to
transact business in the state under Title XVII of the Revised Code;

(2)
The applicant's name, principal business address, and telephone
number;

(3)
All of the applicant's business addresses in this state;

(4)
The principal electronic mail address and web site the applicant uses
or intends to use in providing debt resolution services to consumers
who reside in this state;

(5)
The name and business address of each of the applicant's key
officers;

(6)
A statement describing, to the extent known to the applicant or to
the extent that a reasonably prudent person would know under the same
circumstances, any material civil or criminal judgment or any
enforcement action against the applicant or any of applicant's key
officers, in any jurisdiction or by any local, state, or federal
governmental agency, in each case relating to debt resolution, debt
pooling, prorating, activity as a credit services organization,
unfair and deceptive trade practices, false advertising, consumer
deception law or regulation, or any other similar business
activities;

(7)
A copy of each agreement and the schedule of fees and charges that
the applicant uses or intends to use in providing debt resolution
services to consumers who reside in this state;

(8)
Income statements and balance sheets for the applicant for the two
fiscal years preceding the date of the application;

(9)
Any other information the superintendent reasonably requires.

(C)
The superintendent shall keep confidential all income statements and
balance sheets submitted in accordance with division (B)(8) of this
section. Such income statements and balance sheets are not public
records for the purposes of section 149.43 of the Revised Code.

(D)
A licensee that applies to renew a license under this chapter shall
provide the superintendent access to all of the licensee's books and
records concerning debt resolution services provided by the licensee
to consumers who reside in this state.

(E)(1)
The superintendent may participate in and utilize a multistate
licensing system for application, renewal, amendment, or surrender of
licenses to provide debt resolution services, for sharing of
regulatory information, or for any other activity the superintendent
determines to be in the best interest of this state.

(2)
The applicant or licensee shall pay all applicable charges to use the
multistate licensing system.

(3)
The superintendent may establish requirements for licensure and for
the provision of debt resolution services to consumers who reside in
this state as may be necessary for participation in a multistate
licensing system.

(F)(1)
Subject to division (F)(7) of this section, the superintendent may
require an applicant for licensure under this chapter to submit a
full set of fingerprints for each of the applicant's key officers for
the purpose of obtaining a criminal history records check.

(2)
The superintendent may request the superintendent of the bureau of
criminal identification and investigation, or a vendor approved by
the bureau, to conduct a criminal records check based on the
fingerprints of the applicant's key officers in accordance with
section 109.572 of the Revised Code. If the submitted fingerprints
are unreadable, the superintendent may request that the fingerprints
be resubmitted.

(3)
The superintendent may require the applicant to submit the
fingerprints of key officers in an electronic format.

(4)
The superintendent may contract, or make use of any existing contract
with this state, for the collection and transmission of fingerprints
authorized under this section. If the superintendent contracts, or
makes use of an existing contract, the superintendent may order the
applicant to pay the fee for collecting and transmitting fingerprints
to the contractor. The superintendent may agree to a reasonable
fingerprinting fee to be charged by the contractor to the applicant.

(5)(a)
The superintendent shall treat and maintain any key officer's
fingerprints and any criminal history record information obtained
under this section as confidential and limit the use of records
solely to the purposes authorized in this section.

(b)
The fingerprints and any criminal history record information are not
subject to subpoena, other than a subpoena issued in a criminal
action or investigation, are confidential by law and privileged, and
are not subject to discovery or admissible in evidence in any civil
action.

(6)
The superintendent shall not issue an initial license to an applicant
that fails to comply with division (F) of this section.

(7)
Division (F) of this section does not apply to applications to renew
an existing license under this chapter.

(G)
An applicant or licensee shall notify the superintendent within
thirty days after any material change to any of the information
submitted in connection with an application for licensure or renewal,
including a change to any of the following:

(1)
The principal place of business;

(2)
A merger or dissolution related to the license;

(3)
An applicant, licensee, or key officer pleading guilty to or being
convicted of any felony in a court of competent jurisdiction.

Sec.
4710.05.
(A)
The superintendent of financial institutions may deny an application
for licensure under this chapter or an application to renew such a
license if any of the following apply:

(1)
The applicant does not fully comply with or satisfy the criteria set
forth in section 4710.04 of the Revised Code.

(2)
The application contains information that is materially erroneous or
incomplete.

(3)
The applicant fails to provide in a timely manner such information as
the superintendent reasonably requests.

(4)
Notwithstanding section 9.79 of the Revised Code, a key officer of
the applicant has been convicted of or pleaded guilty to a felony, or
has committed any criminal act involving fraud, deceit, or
dishonesty.

(5)
Any state has revoked or suspended a professional license of the
applicant or a key officer of the applicant, or subjected the
applicant or a key officer to an enforcement action, and the license
or enforcement action has not been reinstated or resolved,
respectively.

(B)
If the superintendent denies an application for licensure or renewal
under this chapter, the superintendent shall provide written notice
to the applicant not later than twenty days after such denial. The
superintendent shall include in the notice a written description of
the reasons for denial. A person whose application for licensure or
renewal is denied may appeal the superintendent's determination by
commencing an action in accordance with Chapter 119. of the Revised
Code within thirty days after receiving the notice required by this
division.

Sec.
4710.06.
(A)
The superintendent of financial institutions may suspend, revoke, or
deny renewal of a license under this chapter if any of the following
apply:

(1)
The superintendent determines that the licensee materially violated
any provision of this chapter, any rule adopted thereunder, or any
other law applicable to the conduct of the licensee's business; the
superintendent provides the licensee notice and a reasonable
opportunity to cure the violation; and the licensee fails to cure the
violation.

(2)
A fact or condition exists that, if it had existed when the licensee
applied for a license, would have warranted the superintendent
denying the license.

(3)
The licensee does not satisfy the criteria for licensure set out in
section 4710.04 of the Revised Code.

(4)
The licensee has refused to permit the superintendent to examine the
licensee's books and records, failed to file the annual report
required in section 4710.11 of the Revised Code, or made a material
misrepresentation or omission in filing the report.

(5)
The licensee has not responded within a reasonable time and in an
appropriate manner to the superintendent's communications.

(B)
If the superintendent suspends, revokes, or denies renewal of a
license, the superintendent may require the licensee to make
available the licensee's books and records with respect to consumers
who reside in this state that are being or have been serviced by the
licensee.

(C)
Except as otherwise provided in section 4710.07 of the Revised Code,
the superintendent shall not revoke or suspend a license under this
chapter without providing notice and affording the licensee an
opportunity for a hearing.

(D)
A licensee may deliver a written notice to the superintendent to
surrender the licensee's license. Surrendering a license under this
division does not relieve the licensee of civil or criminal liability
for acts committed before the surrender.

(E)
Upon submission of an application to renew a license under this
chapter and until such time as that application is approved or
denied, the licensee may continue to provide or offer to provide debt
resolution services to consumers who reside in this state. No person
shall provide or offer to provide debt resolution services to
consumers who reside in this state following suspension or revocation
of the person's license, or following denial of an application to
renew the person's license, except to the extent expressly authorized
by the superintendent.

Sec.
4710.07.
(A)
All matters and procedures respecting notice, hearing, and appeal of
any violation or contested case arising under this chapter are
governed by Chapter 119. of the Revised Code.

(B)
If the superintendent of financial institutions determines that a
delay in issuing an order consistent with Chapter 119. of the Revised
Code will irreparably harm the public interest, the superintendent
may summarily suspend the license immediately.

(C)
Any order issued pursuant to this section is subject to review by
appeal to the court of common pleas in the county in which the
licensee resides or in Franklin County, if the licensee's residence
is located outside of this state.

(D)
The superintendent may investigate the books, accounts, records, and
files of a licensee or any other person that the superintendent has
reason to believe is providing or offering to provide debt resolution
services to consumers who reside in this state.

Sec.
4710.08.
(A)
A licensee may request or require a consumer who resides in this
state, as a condition to the provision of debt resolution services,
to establish and place funds into a dedicated account administered by
a dedicated account service provider, provided that all of the
following are met:

(1)
The funds are held in a bank insured by the federal deposit insurance
corporation.

(2)
The consumer owns the funds held in the account and any interest
accrued on those funds.

(3)(a)
The dedicated account service provider is not owned or controlled by,
or affiliated with, the debt resolution services provider.

(b)
As used in division (A)(3)(a) of this section:

(i)
"Affiliated with" means controlling, being controlled by,
or being under common control with a licensee;

(ii)
"Control" means the direct or indirect possession of the
power to direct or cause the direction of the management of a
licensee, whether by contract or through ownership of more than
twenty per cent of the voting securities of the licensee.

(4)
The dedicated account service provider does not give or accept any
money or other compensation in exchange for referrals of business
involving debt resolution services.

(5)
The consumer may terminate the debt resolution services agreement at
any time without penalty by giving notice as required in section
4710.09 of the Revised Code.

(6)
The licensee agrees to notify the dedicated account service provider
of the consumer's termination of the agreement within five business
days after the consumer gives notice as required in section 4710.09
of the Revised Code.

(B)
A licensee shall, at the time an agreement is executed by a consumer,
or as soon thereafter as practical, distribute or otherwise make
available to the consumer a copy of the executed agreement. A
licensee may comply with this division via electronic distribution if
the consumer agrees to receive the agreement in an electronic format.

(C)
The agreement between a licensee and a consumer who resides in this
state shall disclose all of the following:

(1)
The services that the licensee agrees to perform;

(2)
The methodology that the licensee will use to calculate fees to be
charged under the agreement and, if reasonably available at the time
the agreement is executed, the fees that the licensee will charge;

(3)
The amount of time estimated on a good-faith basis to be necessary to
achieve the resolution of all enrolled debts, and to the extent that
the service may include a resolution offer to any of the consumer's
creditors, the time estimated on a good-faith basis when the debt
resolution services provider will make a bona fide resolution offer
to each of those creditors;

(4)
To the extent that the debt resolution services may include a
resolution offer to any of the consumer's creditors, the amount of
money or the percentage of each outstanding debt that the consumer is
required to accumulate before the debt resolution services provider
will make a bona fide resolution offer to each of those creditors;

(5)
That debt resolution services are not suitable for all individuals;

(6)
To the extent that any aspect of the debt resolution services relies
upon or results in the consumer's failure to make timely payments to
creditors, that such failure will likely adversely affect the
consumer's creditworthiness, may result in the consumer being subject
to collections efforts, including lawsuits by creditors, and may
increase the amount of money the consumer owes due to the accrual of
fees and interest;

(7)
That, unless the consumer is insolvent, if a creditor resolves a debt
for less than its full amount, the resolution may result in the
creation of taxable income to the consumer, even though the consumer
does not receive any money;

(8)
That specific results cannot be predicted or guaranteed and the
licensee cannot require a creditor to negotiate or resolve a debt;

(9)
That debt resolution services programs require that individuals meet
regular savings goals in order to enable resolutions;

(10)
That the licensee does not provide tax, accounting, or legal advice
to individuals, unless the licensee is licensed in this state to
provide such advice;

(11)
That the licensee is the consumer's advocate and does not receive
compensation of any sort from creditors for providing debt resolution
services to the consumer;

(12)
That the licensee does not make monthly or other payments to the
consumer's creditors;

(13)
The list of debts that the agreement covers;

(14)
That, if applicable, the consumer's rights are subject to mandatory
arbitration of any and all disputes with the debt resolution services
provider;

(15)
Each of the requirements set forth in divisions (A)(1) to (6) of this
section.

(D)
A licensee shall maintain a toll-free telephone number, staffed at a
level that has adequate capacity to accept requests from the
reasonably anticipated volume of consumers contacting the licensee
during ordinary business hours.

(E)
A licensee may extend credit to a consumer in the form of a deferral
of some or all of the licensee's fee for resolving the consumer's
debts, at no additional expense to the consumer.

(F)
A licensee may assist in arranging credit to the consumer if such
credit is extended to the consumer by or through a person that is
either separately licensed or authorized to perform lending in this
state or is exempt from such licensure.

Sec.
4710.09.
(A)
A consumer may terminate an agreement at any time without penalty by
notifying the licensee electronically, in writing, or by telephone on
a recorded line.

(B)(1)
Not later than two business days after receiving a consumer's notice
of termination, the licensee shall advise the consumer of the effect,
if any, such termination would have on previously negotiated
installment resolution agreements and pending resolution
negotiations.

(2)
Not later than five business days following the delivery of such
advice, and absent further instruction from the consumer, the
licensee shall notify the dedicated account service provider of the
consumer's termination and request that the dedicated account service
provider communicate with the consumer regarding disposition of all
funds held in the dedicated account.

(C)
Notwithstanding the consumer's right to terminate as set forth in
division (A) of this section, the licensee is entitled to recover all
fees for debt resolution services rendered before receipt of any
termination notice, provided that the fees are requested or received
in compliance with section 4710.12 of the Revised Code.

Sec.
4710.10.
(A)
If a consumer fails to honor the consumer's obligations under an
agreement within sixty days after the consumer is required to perform
such obligations, the licensee may terminate the agreement with the
consumer by providing notice of termination either electronically or
in writing.

(B)
If a licensee terminates an agreement as permitted in this section,
the consumer does not owe any further payment to the licensee as of
the date the licensee terminates the agreement, other than fees for
debt resolution services rendered by the licensee before that date.

(C)
Notwithstanding division (A) of this section, if a consumer refuses
to pay any fee to a licensee after the licensee has rendered the
corresponding debt resolutions services, the licensee may, upon
proper notice to the consumer either electronically or in writing,
terminate the licensee's agreement with the consumer immediately.

Sec.
4710.11.
(A)
A licensee shall file with the superintendent of financial
institutions an annual report in writing, under oath, that includes
all of the following information for the calendar year reporting
period:

(1)
Total number of active consumers who reside in this state;

(2)
Total number of enrolled consumers who reside in this state;

(3)
Total fees collected by the licensee from consumers who reside in
this state.

(B)
If a licensee fails to file an annual report or fails to amend the
report on or before the thirtieth day after the superintendent
provides notice to the licensee, the superintendent may assess a
civil penalty and may suspend, revoke, or refuse to renew the license
under this chapter.

Sec.
4710.12.
(A)
A licensee shall not impose, directly or indirectly, a fee or other
charge on a consumer who resides in this state or receive payment
from or on behalf of such a consumer for performing debt resolution
services except as provided in this section.

(B)
A licensee shall not request or receive payment of any fee or
consideration for any debt resolution services until and unless all
of the following are met:

(1)
The licensee renegotiates, resolves, reduces, or otherwise alters the
terms of at least one debt pursuant to a resolution agreement or
other valid contractual agreement executed by the consumer and the
creditor.

(2)
The consumer makes at least one payment pursuant to that resolution
agreement or other valid contractual agreement between the consumer
and the creditor.

(3)
To the extent that debts enrolled in a service are renegotiated,
resolved, reduced, or otherwise altered individually, the fee or
consideration meets either of the following:

(a)
The fee bears the same proportional relationship to the total fee for
renegotiating, resolving, reducing, or altering the terms of the
entire debt balance as the individual debt amount bears to the entire
debt amount, as of the time the debt was enrolled in the service.

(b)(i)
The fee is a percentage of the amount saved as a result of the
renegotiation, resolution, reduction, or alteration, where the amount
saved is the difference between the amount owed at the time the debt
was enrolled in the service and the amount actually paid to satisfy
the debt.

(ii)
For a fee described in division (B)(3)(b)(i) of this section, an
agreement shall prescribe a uniform fee that does not change from one
individual debt to another.

(C)
A licensee shall not impose charges or receive payment for debt
resolution services until the licensee and the consumer have signed
an agreement that complies with section 4710.08 of the Revised Code.

(D)
Any fee or other charge imposed by or on behalf of a dedicated
account service provider in connection with the administration of a
dedicated account shall not be considered a fee or other charge
imposed for performing debt resolution services for purposes of this
chapter.

(E)
Any fee or other charge imposed by or on behalf of a third-party
legal service provider shall not be considered a fee or other charge
imposed by a licensee for performing debt resolution services for
purposes of this chapter.

Sec.
4710.13.
(A)
As used in this section, "resolve" means entering into a
binding agreement to discharge in full a debt in exchange for a
payment of a sum certain of money.

(B)
A licensee, a person who markets debt resolution services on behalf
of a licensee, or a person described in division (B)(2) of section
4710.03 of the Revised Code shall not do any of the following:

(1)
Take or exercise a power of attorney that authorizes the licensee to
resolve a debt;

(2)
Send cease and desist notices to creditors;

(3)
Require consumers to notify creditors of changes of address or
telephone number for the purpose of diverting communication from the
creditor to the debt resolution services provider rather than the
consumer;

(4)
Exercise or attempt to exercise any authority of the consumer after a
licensee has received notice under section 4710.09 of the Revised
Code that the consumer has terminated the consumer's agreement with
the licensee;

(5)
Initiate, or request that a dedicated account service provider
initiate, a transfer from a consumer's bank account unless the
transfer meets any of the following:

(a)
The request is for the purpose of returning money to the consumer.

(b)
The request is made prior to any termination of an agreement and is a
fee properly authorized by the agreement and this chapter.

(c)
The transfer is at the express direction of the consumer to a
consumer's creditor to fund a negotiated resolution with that
creditor.

(6)
Receive consumer funds or control consumer funds, other than to
receive funds in payment of fees for debt resolution services
rendered by the provider;

(7)
Resolve a debt or lead a consumer to believe that a payment to a
creditor is in resolution of a debt to the creditor unless, at the
time of resolution, the creditor confirms that the payment is in full
resolution of the debt or is part of a payment plan that, upon
completion, will be in full resolution of the debt;

(8)
Make any representation of either of the following:

(a)
The licensee will furnish money to pay bills or prevent attachments.

(b)
Participation in a program will prevent litigation, garnishment,
attachment, repossession, foreclosure, eviction, or loss of
employment.

(9)
Misrepresent that the licensee is able to furnish legal advice or
perform legal services;

(10)
Misrepresent, directly or by implication, any material aspect of any
debt resolution services program, including any of the following:

(a)
The amount of money or the percentage of the debt amount that a
consumer may save by using such service;

(b)
The amount of time necessary to achieve the represented results;

(c)
The amount of money or the percentage of each outstanding debt that
the consumer is required to accumulate before the provider of the
debt resolution services will initiate attempts with the consumer's
creditors or make a bona fide offer to negotiate, resolve, or modify
the terms of the consumer's debt;

(d)
The effect of the service on a consumer's creditworthiness;

(e)
The effect of the service on collection efforts of the consumer's
creditors;

(f)
The percentage or number of consumers who attain the represented
results;

(g)
Whether debt resolution services are offered or provided by a
nonprofit entity.

(11)
Take a confession of judgment or power of attorney to confess
judgment against a consumer;

(12)
Purchase a debt or obligation of the consumer or obtain a mortgage or
other security interest from any person in connection with the
services provided to the consumer;

(13)
Receive from or on behalf of a consumer a promissory note or other
negotiable instrument other than a check or a demand draft or a
post-dated check or demand draft;

(14)
Except as permitted by federal law or by order of a court of
competent jurisdiction, disclose the identity or identifying
information of a consumer or the identity of the consumer's
creditors, except to the superintendent of financial institutions,
upon proper demand, or to the extent necessary or appropriate to
administer the program, including a dedicated account service
provider or to a creditor of the consumer.

(C)
An agreement shall not contain any provision to the effect of any of
the following:

(1)
Provide for the application of the law of any jurisdiction other than
the United States and this state;

(2)
Except as specifically permitted by the laws of this state and the
federal arbitration act, 9 U.S.C. 1 et seq., restrict an individual's
remedies under this chapter or any other law of this state;

(3)
Limit or release the liability of any person for not performing the
agreement or for violating this chapter.

Sec.
4710.14.
(A)
A licensee shall distribute or arrange to be distributed a statement
of accounting to a consumer who resides in this state in accordance
with all of the following:

(1)
At least one time each month the agreement is in effect;

(2)
Within five business days after a consumer requests a statement of
accounting from the licensee, provided the licensee is not required
to respond to more than one such request from the same consumer in
the same month;

(3)
Within five business days after the date on which a consumer or the
licensee terminates an agreement.

(B)
A statement of accounting shall contain all of the following
information to the extent applicable:

(1)
The amount of money that the consumer has deposited into the
consumer's dedicated account and all withdrawals from that account
from the date the consumer's debt resolution services program is
initiated to the date the statement of accounting is issued;

(2)
The amounts, dates, and creditors associated with each resolution
obtained by the licensee on behalf of the consumer;

(3)
The fees that the licensee has charged to and collected from the
consumer in connection with each of the consumer's resolutions;

(4)
The amount of money that the consumer holds in the consumer's
dedicated account;

(5)
All of the following, with respect to each resolution obtained by the
licensee for the consumer:

(a)
The total amount of money that the consumer paid to the creditor to
fully discharge or satisfy the consumer's debt;

(b)
The amount of the debt at the time the licensee and the consumer
entered into the agreement;

(c)
The amount of the debt at the time the creditor agreed to resolve the
debt;

(d)
The amount of compensation that the licensee received or will receive
to resolve the debt.

(C)
Notwithstanding divisions (A) and (B) of this section, a licensee
that enables, or arranges to enable, twenty-four hours per day, seven
days per week, electronic access by a consumer to all of the
consumer's deposit account transaction information, including all
deposit and withdrawal activity, and electronic access by a consumer
to account activity, including resolution information, account
status, resolution dates, resolution amounts, and fees paid, is
deemed to have satisfied the content requirements in division (B) of
this section and the distribution requirements in division (A) of
this section.

Sec.
4710.15.
(A)
A licensee shall not, directly or through a person who markets debt
resolution services on behalf of a licensee or a person described in
division (B)(2) of section 4710.03 of the Revised Code, advertise,
announce, broadcast, display, distribute, print, publish, televise,
or permit any other person to advertise, announce, broadcast,
display, distribute, print, publish, or televise on the licensee's
behalf, a statement or representation related to debt resolution
services that is deceptive, false, or misleading.

(B)
A licensee shall not directly or indirectly provide anything of value
in exchange for favorable treatment in reviews or favorable placement
on rankings.

(C)
Neither a licensee nor any affiliate of a licensee shall directly or
indirectly own or operate a web site or other public-facing resource
presenting rankings or consumer reviews of the licensee.

(D)
A licensee shall not make any statement or take any action that is
likely to mislead consumers regarding whether reviews the licensee
uses to advertise the licensee's business accurately reflect all
reviews consumers have submitted to the licensee.

(E)
No licensee shall fail to comply with guidance issued by the federal
consumer financial protection bureau or other federal laws or rules
related to deceptive acts or practices that impede consumer reviews,
including 16 C.F.R. 255.

Sec.
4710.16.
(A)
A licensee shall inform the consumer, each time the licensee provides
the consumer with any materials or agreements in accordance with this
chapter, that the licensee is required to send the consumer a copy of
the materials following any electronic, telephonic, or written
request.

(B)(1)
If a consumer submits a request for materials to a licensee at any
time before the ninety-first day after the agreement is terminated,
or the date the licensee fulfills all of the licensee's obligations
under the agreement, as applicable, the licensee shall send the
materials at no charge to the consumer within five business days
after receiving the request. A licensee is not required to comply
with more than one request per consumer per month and is not required
to comply with any request the licensee reasonably believes is made
for the purposes of harassment.

(2)
If a consumer submits a request for materials to a licensee more than
ninety days after the date the agreement is terminated, or the date
the licensee fulfills all of the licensee's obligations under the
agreement, as applicable, and less than two years after that date,
the licensee shall send a copy of the materials within a reasonable
after receiving the request.

(3)
A licensee is not required to comply with any request for materials
submitted after the later of the following dates:

(a)
Two years after the date the agreement is terminated, or the date the
licensee fulfills all of the licensee's obligations under the
agreement, as applicable;

(b)
The expiration of the statute of limitations specified in section
2305.06 of the Revised Code.

(C)
A licensee that maintains a web site shall disclose both of the
following on the home page or on a page that is clearly and
conspicuously connected to the home page by a link that clearly
reveals its contents:

(1)
The licensee's name and all names under which the licensee does
business in this state;

(2)
The licensee's principal business address, telephone number, and
electronic mail address, if any.

(D)
A licensee shall keep all of the following records for two years
after the date the record is produced:

(1)
All substantially different advertising, brochures, telemarketing
scripts, promotional materials, and supportive data;

(2)
The name and last known address of each consumer, the goods or
services purchased, the date such goods or services were first
provided or the consumer signed an agreement for the provision of
goods or services, and the amount paid by the consumer for the goods
or services;

(3)(a)
The name, any fictitious name used, the last known home address and
telephone number, and the job title for all current and former
employees directly involved in sales or solicitations;

(b)
If the licensee permits fictitious names to be used by employees,
each fictitious name shall be traceable to only one specific
employee.

(E)
In addition to the records required by provision (D) of this section,
the licensee shall keep a copy of each signed agreement with any
consumer for not less than five years after the date the agreement is
terminated, or the date the licensee fulfills all of the licensee's
obligations under the agreement, as applicable.

(F)
A licensee may keep the records required by divisions (D) and (E) of
this section in any form, and in the same manner, format, or place as
the licensee keeps such records in the ordinary course of business.
Failure to keep all records required by divisions (D) and (E) of this
section is a violation of this chapter.

(G)(1)
In the event of any dissolution or termination of the licensee's
business, the principal of that licensee shall maintain all records
as required under divisions (D) and (E) of this section.

(2)
In the event of any sale, assignment, or other change in ownership of
the licensee's business, the successor business shall maintain all
records required under divisions (D) and (E) of this section.

Sec.
4710.17.
(A)(1)
If the superintendent of financial institutions finds that a person
has violated any material provision of this chapter, a rule adopted
pursuant to this chapter, or any other law applicable to the conduct
of a licensee, the superintendent may, after notice and opportunity
to cure, order or impose a penalty upon the person, which shall not
exceed one thousand dollars per violation, up to a maximum of one
hundred thousand dollars, plus the costs of investigation. A
continuing violation is considered a single violation for the
purposes of this section.

(B)
A finding or order issued by the superintendent under this section
may be appealed in accordance with Chapter 119. of the Revised Code.

Sec.
4710.18.
(A)
An action or proceeding brought by the superintendent of financial
institutions under this chapter shall not be commenced after the
later of the following:

(1)
Three years after the conduct that underlies the complaint is
discovered by the superintendent or the harmed consumer;

(2)
The applicable statute of limitations set out in section 2901.13 of
the Revised Code, if the violation also constitutes a criminal
offense.

(B)
Nothing in this section shall be construed as prohibiting the
superintendent from taking an adverse administrative action as
prescribed in section 4710.06 of the Revised Code or levying a fine
against a licensee as prescribed in section 4710.18 of the Revised
Code at any time.

Sec.
4710.19.
This
chapter applies to agreements entered into, amended, or renewed on or
after the effective date of this section. The rights, duties, and
interests resulting from an agreement entered into prior to the
effective date of this section shall be completed, terminated, or
enforced as required or permitted by the law as it existed on the
date the agreement was entered into.

Section
2.
That
existing section 9.79 of the Revised Code is hereby repealed.

Section
3.
That
sections 4710.01, 4710.02, 4710.03, 4710.04, and 4710.99 of the
Revised Code are hereby repealed.

Section
4.
(A)
Sections 4710.01, 4710.02, 4710.03, 4710.04, 4710.05, 4710.06,
4710.07, 4710.08, 4710.09, 4710.10, 4710.11, 4710.12, 4710.13,
4710.14, 4710.15, 4710.16, 4710.17, 4710.18, and 4710.19 of the
Revised Code, as enacted by this act, shall take effect one year
after the effective date of this section.

(B)
Notwithstanding division (A) of this section, the Superintendent of
Financial Institutions shall, within one year after the effective
date of this section, adopt rules as necessary to license and oversee
debt resolution services providers as specified in this act.