As Introduced

136th General Assembly

Regular Session S. B. No. 256

2025-2026

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;

(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.

(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.

(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.

(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;

(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.