AMEND House Bill No. 430, Section 3502(3), line 35 by inserting the words “mortgage bank” after the word “union”.

FURTHER AMEND House Bill No. 430, line 100, by deleting the existing line and substituting in lieu thereof:

`“Section 3504. ‘License Required’”.

FURTHER AMEND House Bill No. 430, by deleting lines 106 through 109 in their entirety.

FURTHER AMEND House Bill No. 430, line 126 by striking the word “no” and substituting in lieu thereof the phrase: “no greater than a five thousand dollar ($5,000)”.

FURTHER AMEND House Bill No. 430, by deleting lines 130 through 131 in their entirety.

FURTHER AMEND House Bill No. 430, line 150, by striking the phrase “audited by an accountant licensed to conduct audits,” and inserting after the number eight “(8)” the phrase “at minimum, an audited review by a certified accountant of”.

FURTHER AMEND House Bill No. 430, line 165 by striking the number “10” and inserting the number “5”.

FURTHER AMEND House Bill No. 430, line 172 by inserting after the number eighteen “(18)” the phase: “If a provider has organized as a not for profit entity or has obtained tax exempt status under the Federal Internal Revenue Code, 26 U.S.C. Sec. 501, as amended”.

FURTHER AMEND House Bill No. 430, line 199 by inserting after the number two “(2)” the phrase “with respect to an applicant that has organized as a not-for-profit entity or has obtained tax-exempt status under the Federal Internal Revenue Code, 26 U.S.C. Sec. 501, as amended,”.

FURTHER AMEND House Bill No. 430, line 231 by striking the number “$500,000” and substituting in lieu thereof the number “$250,000”.

FURTHER AMEND House Bill No. 430, line 238 by striking the word “no” and substituting in lieu thereof the phrase “no greater than a five thousand dollar ($5,000)”.

FURTHER AMEND House Bill No. 430, line 242 by inserting after the number six “(6)” the phrase “If a provider holds money on behalf of a debtor to pay creditors, the provider shall”.

FURTHER AMEND House Bill No. 430, line 272, by striking the number “$500,000” and substituting in lieu thereof the number “$50,000”.

FURTHER AMEND House Bill No. 430, line 308, by striking the number “$500,000” and substituting in lieu thereof “$50,000”.

FURTHER AMEND House Bill No. 430, Chapter 35, line 344 by inserting after the word “agreement” the phrase “with a provider that holds money on behalf of an individual to pay creditors”.

FURTHER AMEND House Bill No. 430, Chapter 35, by inserting after line 356 a new subsection (4) as follows:

“(4) For a charge if the individual enters into an agreement with a provider who does not hold money on behalf of a debt to pay creditors, using the following terminology, as applicable, and format:

Non Refundable Set-Up fee ______________________________

Dollar amount of fee

Monthly service fee ____________________________________

Dollar amount of monthly service fee or the aggregate amount for the term of the plan or method of determining amount

Settlement fee ____________________________________

Dollar amount of fee or method of determining amount

Goods and services in addition to those provided in connection with a plan:

(item) ____________________________________

Dollar amount or method of determining amount

(item) ____________________________________

Dollar amount or method of determining amount

The maximum fee that you may be required to pay is 18% of the principal amount of the debt, and includes the set-up fee, monthly fee, settlement fee, or other service charges.”

FURTHER AMEND House Bill No. 430, line 365 by inserting after the word “plan” the phrase “or that the creditor will likely engage in negotiations with the provider;”.

FURTHER AMEND House Bill No. 430, line 366 by inserting after the word “accept” the word “likely”.

FURTHER AMEND House Bill No. 430, by striking lines 375 through 379 and substituting in lieu thereof the phrase “of the individual, inform the individual that some creditors may be unwilling to negotiate with the provider.”.

FURTHER AMEND House Bill No. 430, lines 499 through 500 by striking the phrase “any portion of the set-up fee that has not been credited against the settlement fee” and substituting in lieu thereof the phrase: “fees associated with that percentage of the principal amount remaining unsettled at the time of the termination”.

FURTHER AMEND House Bill No. 430, by striking the word “principal” as it appears therein on lines 509 and 512.

FURTHER AMEND House Bill No. 430, by adding after line 615 the following new subsection:

“(l) A provider shall be deemed not to hold a trust account for disbursement to creditors if such client funds are either

(1) Retained by the client in a bank of their choosing at all times prior to their disbursement to the clients’ creditors; or

(2) Deposited by the client in a bank or with a third party designated by the provider, in an account having the following characteristics:

(A) It is in the name of the client;

(B) It is not subject to claims of the creditors of any party other than the client; or

FURTHER AMEND House Bill No. 430, line 634 by inserting before the word “fee” the word “nonrefundable”.

FURTHER AMEND House Bill No. 430, line 634 by striking the words “setting up an account” on line 634 and by striking lines 635 through 636.

FURTHER AMEND House Bill No. 430, lines 637 through 638 by striking all words after the word “fee”.

FURTHER AMEND House Bill No. 430, by adding the following: after line 638:

“(C) a settlement fee. In no case shall aggregate fees exceed 18 percent of the total principal amount of the debt.”.

FURTHER AMEND House Bill No. 430, line 650 by deleting the phrase “30 percent of the excess of the principal amount of the debt over the amount paid the creditor pursuant to the plan” and substituting in lieu thereof the words “18 percent of the principal amount;”

FURTHER AMEND House Bill No. 430, line 673 by inserting after the word “If” the phrase “a provider holds money on behalf of a debtor to pay creditors and”.

FURTHER AMEND House Bill No. 430, Section 3526(b) by adding after line 676 the following new subsection:

“(c) If a provider does not hold money on behalf of a debtor to pay creditors and if a provider or an individual terminates an agreement, the provider shall immediately return to the individual 65 percent of fees associated with that percentage of the principal amount remaining unsettled at the time of termination.”

FURTHER AMEND House Bill No. 430, line 712 by striking the word “principal”.

FURTHER AMEND House Bill No. 430, line 715 by striking the word “principal”.

FURTHER AMEND House Bill No. 430, on line 771 by striking the word “or”.

FURTHER AMEND House Bill No. 430, line 773 by striking the period “.” after the end of the sentence and substituting a semicolon (“;”) and the word “or”.

FURTHER AMEND House Bill No. 430, line 773 a new paragraph (9) as follows:

“(9) advise, encourage, or suggest to the individual not to make payment to creditors while under the plan.”.

SPONSOR:	Rep. Keeley