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H.B. 137

             1     

CREDIT SERVICE ORGANIZATIONS ACT REVISIONS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jon E. Stanard

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Credit Services Organizations Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies the definition of a credit services organization to include a person that
             13      provides debt-management services, as defined in this bill; and
             14          .    makes technical changes.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          13-21-2, as last amended by Laws of Utah 2011, Chapter 289
             22     
             23      Be it enacted by the Legislature of the state of Utah:
             24          Section 1. Section 13-21-2 is amended to read:
             25           13-21-2. Definitions -- Exemptions.
             26          As used in this chapter:
             27          (1) "Buyer" means an individual who is solicited to purchase or who purchases the


             28      services of a credit services organization.
             29          (2) "Credit reporting agency" means a person [who] that, for a monetary fee, dues, or
             30      on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of
             31      assembling or evaluating consumer credit information or other information on consumers for
             32      the purpose of furnishing consumer reports to third persons.
             33          (3) (a) "Credit services organization" means a person [who] that represents that the
             34      person or [an] the person's employee is a debt professional or credit counselor, or, with respect
             35      to the extension of credit by others, sells, provides, or performs, or represents that the person
             36      can or will sell, provide, or perform, in return for the payment of money or other valuable
             37      consideration any of the following services:
             38          (i) improving a buyer's credit record, history, or rating;
             39          (ii) [providing] advice, assistance, instruction, or instructional materials to a buyer with
             40      regard to Subsection (3)(a)(i); or
             41          (iii) [debt reduction or debt management plans] debt-management services.
             42          (b) "Credit services organization" does not include:
             43          (i) a person authorized to make loans or extensions of credit under the laws of this state
             44      or the United States [who] that is subject to regulation and supervision by this state or the
             45      United States and [who] that derives at least 35% of the person's income from making loans
             46      and extensions of credit;
             47          (ii) a depository institution:
             48          (A) as defined in Section 7-1-103 ; or
             49          (B) that is regulated or supervised by the Federal Deposit Insurance Corporation or the
             50      National Credit Union Administration;
             51          (iii) a person licensed as a principal broker under Title 61, Chapter 2f, Real Estate
             52      Licensing and Practices Act, if the person is acting within the course and scope of that license;
             53          (iv) a person licensed to practice law in this state if:
             54          (A) the person renders the services described in Subsection (3)(a) within the course and
             55      scope of the person's practice as an attorney; and
             56          (B) the services described in Subsection (3)(a) are incidental to the person's practice as
             57      an attorney;
             58          (v) a broker-dealer registered with the Securities and Exchange Commission or the


             59      Commodity Futures Trading Commission if the broker-dealer is acting within the course and
             60      scope of that regulation;
             61          (vi) a credit reporting agency if the services described in Subsection (3)(a) are
             62      incidental to the credit reporting agency's services; or
             63          (vii) a person [who] that provides debt-management services and is required to be
             64      registered under Title 13, Chapter 42, Uniform Debt-Management Services Act.
             65          (4) "Debt-management services" is as defined in Section 13-42-102 .
             66          [(4)] (5) "Extension of credit" means the right to defer payment of debt or to incur debt
             67      and defer its payment, offered or granted primarily for personal, family, or household purposes.




Legislative Review Note
    as of 2-6-13 1:32 PM


Office of Legislative Research and General Counsel


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