S.B. No. 884

	AN ACT
	relating to the regulation of consumer debt management services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subsection (c), Section 394.204, Finance Code,
	is amended to read as follows:
	(c)  An application for an initial registration must be in a
	form prescribed by the commissioner and accompanied by:
	(1)  the appropriate fees set by the finance commission
	in an amount necessary to recover the costs of administering this
	subchapter;
	(2)  the surety bond or insurance required by Section
	394.206;
	(3)  the applicant's name, the applicant's principal
	business address and telephone number, all other business addresses
	of the applicant in this state, and the applicant's electronic mail
	address and Internet website address;
	(4)  all names under which the applicant conducts
	business;
	(5)  the address of each location in this state at which
	the applicant will provide debt management services, or if the
	applicant will have no such location, a statement to that effect;
	(6)  the name and home address of each officer and
	director of the applicant and each person that holds at least a 10
	percent ownership interest in the applicant;
	(7)  if the applicant is a nonprofit or tax exempt
	organization, a detailed description of the ownership interest of
	each officer, director, agent, or employee of the applicant, and
	any member of the immediate family of an officer, director, agent,
	or employee of the applicant, in a for-profit affiliate or
	subsidiary of the applicant or in any other for-profit business
	entity that provides services to the applicant or to a consumer in
	relation to the applicant's debt management business; and
	(8) [(4)]  any other information that the commissioner
	requires.
	SECTION 2.  Subsection (b), Section 394.205, Finance Code,
	is amended to read as follows:
	(b)  Each provider shall file a report with the commissioner
	at each renewal of the provider's registration. The report must at
	a minimum disclose in detail and under appropriate headings:
	(1)  the assets and liabilities of the provider at the
	beginning and end of the period, if the provider is a nonprofit or
	tax exempt organization;
	(2)  the total number of debt management plans the
	provider has initiated on behalf of consumers in this state during
	that year; and
	(3)  records of total and average fees charged to
	consumers, including all voluntary contributions received from
	consumers.
	SECTION 3.  Subsections (a) and (d), Section 394.208,
	Finance Code, are amended to read as follows:
	(a)  A provider may not enroll a consumer in a debt
	management plan unless,[:
	[(1)  the provider is a nonprofit organization exempt
	from taxation under Section 501(c)(3), Internal Revenue Code of
	1986; and
	[(2)]  through the services of a counselor certified by
	an independent accreditation organization, the provider has:
	(1) [(A)]  provided the consumer individualized
	counseling and educational information that at a minimum addresses
	the topics of managing household finances, managing credit and
	debt, and budgeting;
	(2) [(B)]  prepared an individualized financial
	analysis and an initial debt management plan for the consumer's
	debts with specific recommendations regarding actions the consumer
	should take;
	(3) [(C)]  determined that the consumer has a
	reasonable ability to make payments under the proposed debt
	management plan based on the information provided by the consumer;
	(4) [(D)]  a reasonable expectation, provided that the
	consumer has provided accurate information to the provider, that
	each creditor of the consumer listed as a participating creditor in
	the plan will accept payment of the consumer's debts as provided in
	the initial plan;
	(5) [(E)]  prepared, for all creditors identified by
	the consumer or identified through additional investigation by the
	provider, a list, which must be provided to the consumer in a form
	the consumer may keep, of the creditors that the provider
	reasonably expects to participate in the plan; and
	(6) [(F)]  provided a written document to the consumer
	in a form the consumer may keep that clearly and conspicuously
	contains the following statements:
	(A) [(i)]  that debt management services are not
	suitable for all consumers and that consumers may request
	information about other ways, including bankruptcy, to deal with
	indebtedness;
	(B) [(ii)]  that if the provider is a nonprofit or
	tax-exempt organization the provider cannot require donations or
	contributions; and
	(C)  if applicable, [(iii)] that some of the
	provider's funding comes from contributions from creditors who
	participate in debt management plans, except that a provider may
	substitute for "some" the actual percentage of creditor
	contributions it received during the most recent reporting period.
	(d)  A provider may provide the information required by
	Subsections (a)(2), (5), and (6) [(a)(2)(B), (E), and (F)] through
	its Internet website if the provider:
	(1)  has complied with the federal Electronic
	Signatures in Global and National Commerce Act (15 U.S.C. Section
	7001 et seq.);
	(2)  informs the consumer that, on electronic,
	telephonic, or written request the provider will make available to
	the consumer a paper copy or copies; and
	(3)  discloses on its Internet website:
	(A)  the provider's name and each name under which
	it does business;
	(B)  the provider's principal business address
	and telephone number; and
	(C)  the names of the provider's principal
	officers.
	SECTION 4.  Section 394.210, Finance Code, is amended by
	adding Subsection (f) to read as follows:
	(f)  The finance commission may establish maximum fair and
	reasonable fees under this section.
	SECTION 5.  This Act takes effect September 1, 2007.
	____________________________________________________________
	President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 884 passed the Senate on
	April 12, 2007, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 884 passed the House on
	April 27, 2007, by the following vote:  Yeas 133, Nays 0, two
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	______________________________
	Date
	______________________________
	______________________________
	Governor