1Providing for the licensure of persons providing debt settlement
2services, for powers and duties of the Department of Banking 
3and Securities and for enforcement; imposing civil penalties;
4and making a related repeal.

5TABLE OF CONTENTS

6Chapter 1. Preliminary Provisions

7Section 101. Short title.

8Section 102 Definitions.

9Section 103. Nonapplicability.

10Chapter 3. Licensure

11Section 301. Requirements.

12Section 302. Application and required documentation.

13Section 303. Required information for application.

14Section 304. Not-for-profit license fees.

15Section 305. Penal bond.

16Section 306. Application information.

17Section 307. Public availability of application information.

1Section 308. <-Certificate of licensure Issuance of license.

2Section 309. Renewal of license.

3Section 310. Grounds for <-denial denying, suspending, revoking 
4or refusing to renew.

5Section 311. (Reserved).

6Section 312. Reinstatement.

7Section 313. Limitations.

8Chapter 5. Provider Responsibilities

9Section 501. Good faith.

10Section 502. Prerequisites for providing debt settlement
11services.

12Chapter 7. Administration and Enforcement

13Section 701. Powers and duties.

14Section 702. Administrative proceedings.

15Section 703. Reports to department.

16Section 704. Violations.

17Section 705. Banking Fund.

18Chapter 21. Miscellaneous Provisions

19Section 2101. Relation to Electronic Signatures in Global and
20National Commerce Act.

21Section 2102. Transitional provisions.

22Section 2103. Repeal.

23Section 2104. Effective date.

24The General Assembly of the Commonwealth of Pennsylvania
25hereby enacts as follows:

26CHAPTER 1

27PRELIMINARY PROVISIONS

28Section 101. Short title.

29This act shall be known and may be cited as the Debt
30Settlement Services Act.

1Section 102. Definitions.

2The following words and phrases when used in this act shall
3have the meanings given to them in this section unless the
4context clearly indicates otherwise:

5"Affiliate." Any of the following:

6(1) A person that directly controls, is controlled by or
7is under common control with the licensee.

8(2) An officer of or individual performing similar
9functions with respect to the licensee.

10(3) A director of or individual performing similar
11functions with respect to the licensee.

12(4) An officer or director of or an individual
13performing similar functions with respect to a person
14described in paragraph (1).

15"Agreement." An agreement between a provider and an
16individual for the performance of debt settlement services.

17"Bank." A financial institution, including a commercial
18bank, savings bank, savings and loan association, credit union,
<-19mortgage bank and trust company, engaged in the business of
20banking, chartered under Federal or State law and regulated by a
21Federal or State banking regulatory authority.

<-22"Commission." The Banking and Securities Commission.

23"Concessions." Assent to repayment of a debt on terms more
24favorable to an individual than the terms of the contract
25between the individual and a creditor.

26"Debt settlement services." Services as an intermediary
27between an individual and one or more unsecured creditors of the
28individual for the purpose of obtaining concessions where the
29contemplated concessions involve a reduction in principal of the
30individual's unsecured debt <-owed for personal, family or
 

1household expenses to at least one creditor. The term does not
2include:

3(1) Legal services provided in an attorney-client
4relationship by an attorney licensed or otherwise authorized
5to practice law in this Commonwealth.

6(2) Accounting services provided in an accountant-client
7relationship by a certified public accountant licensed to
8provide accounting services in this Commonwealth.

9(3) Financial planning services provided in a financial
10planner-client relationship by a licensed member of a
11financial planning profession.

12"Department." The Department of Banking and Securities of
13the Commonwealth.

14"Good faith." Honesty in fact and the observance of
15reasonable standards of fair dealing.

16"Person." An individual, corporation, business trust,
17estate, trust, partnership, limited liability company,
18association, joint venture or any other legal or commercial
19entity. The term does not include a public corporation,
20government or governmental subdivision, agency or
21instrumentality.

22"Program." A program or strategy in which a provider
23furnishes debt settlement services.

24"Provider." A person <-required to be licensed under this act 
25and that provides, <-markets, solicits, offers to provide or
26agrees to provide debt settlement services.

27"Record." Information that is inscribed on a tangible medium
28or that is stored in an electronic or other medium and is
29retrievable in perceivable form.

<-30"Secretary." The Secretary of Banking and Securities of the

1Commonwealth.

2Section 103. Nonapplicability.

3This act does not apply to the following persons or their
4employees when the person or the employee is engaged in the
5regular course of the person's business or profession:

6(1) A judicial officer, a person acting under an order
7of a court or an administrative agency or an assignee for the
8benefit of creditors.

9(2) A bank, bank holding company or the subsidiary,
10agent or affiliate of either, or a credit union or other
11financial institution licensed <-chartered under Federal or
12State law.

13(3) A title insurer, escrow company or other person that
14provides bill-paying services if the provision of debt
15settlement services is incidental to the bill-paying
16services.

<-17(4) A licensee under the act of October 9, 2008 
18(P.L.1421, No.117), known as the Debt Management Services 
19Act, when the provision of debt settlement services is 
20incidental to the provision of debt management services.

21(5) An attorney not otherwise engaged in or holding
22himself or herself out to the public as being engaged in
23debt settlement services who acts as an intermediary between
24an individual and one or more of the individual's creditors
25in the normal course of legal practice. This paragraph shall
26not apply if the attorney is compensated by a provider.

27CHAPTER 3

28LICENSURE

29Section 301. Requirements.

30(a) General rule.--Except as provided under subsection (b)

1and on or after the effective date of this section, a provider
2may not <-market, solicit, offer to provide or provide debt
3settlement services <-for a fee or other consideration to an
4individual who <-it reasonably should know resides in this
5Commonwealth at the time it agrees to provide the services,
6unless the provider is licensed under this act.

7(b) Nonapplicability.--If a provider is licensed under this
8act, subsection (a) shall not apply to an employee <-or agent of
9the provider <-acting on behalf of the provider.

10(c) Listing.--The department shall maintain and publicize a
11list of the names of all licensed providers.

12Section 302. Application and required documentation.

13(a) Form.--An application for licensure as a provider must
14be in a form prescribed by the department.

15(b) Fee and documentation.--An application for licensure as
16a provider must be accompanied by:

17(1) A licensing fee established by the department.

18(2) <-One of the following:

19(i) Evidence of minimum insurance in an amount of
20$25,000.

21(ii) A surety bond filed with the department, in a
22form approved by the department, for a term no less than
23the expiration of the license and in the amount of
24$25,000. The surety bond must run to the Commonwealth for
25the benefit of the Commonwealth and of an individual who
26resides in this Commonwealth that agrees to receive debt
27settlement services from the provider. Payment of surety
28bond must be conditioned upon noncompliance of the
29provider or its agent with this act. <-A bond that complies
30with section 305.

1(3) Proof that the provider is authorized by the laws of
2this Commonwealth to conduct business in this Commonwealth.

3Section 303. Required information for application.

4An application for a license under this act shall be
5submitted to the department in the form required by the
6department and shall include the following:

7(1) The applicant's name, address, telephone number,
8electronic mail address and Internet website.

9(2) The address of each location in this Commonwealth
10where the applicant will provide debt settlement services.

11(3) The name and address of each owner, officer,
12director or principal of the applicant.

13(4) The name and address of the applicant's agent for
14service of process in this Commonwealth.

15(5) A description of the ownership interest of an
16officer, director, agent or employee of the applicant in an
17affiliate or subsidiary of the applicant or in another
18business entity that will provide any service to the
19applicant or to a consumer relating to the applicant's
20provision of debt settlement services.

21(6) A list of other states in which the applicant is
22licensed or registered for the provision of debt settlement
23services, including a relevant license or registration number
24and information regarding whether a license or registration
25in another state has ever been suspended or revoked.

26(7) A copy of a liability or fidelity insurance policy
27that insures against dishonesty, fraud, theft or other
28malfeasance on the part of the applicant's employees,
29officers, directors or principals.

30(8) A copy of the applicant's standard debt settlement

1services agreement.

2(9) A penal bond meeting the requirements of section
3305.

4 (10) Any other reasonable requests for information that
5the department determines to be necessary to its review of a
6license application.

7Section 304. Not-for-profit license fees.

8Notwithstanding any other provision of this act, a domestic
9or foreign not-for-profit corporation or association registered
10under 15 Pa.C.S. Pt. II Subpt. C (relating to nonprofit
11corporations) with the Secretary of the Commonwealth which has
12annual gross revenues from debt settlement services fees and
13charges of less than $3,000,000 annually shall pay an initial
14license fee of $500 and an annual renewal fee of $350.

15Section 305. Penal bond.

16(a) Issuance.--

17(1) The department shall issue a license under this act
18if, prior to the issuance of the license, the applicant
19obtains and maintains a bond that meets all of the following:

20(i) Is from a surety company authorized to do
21business in this Commonwealth.

22(ii) Is in an amount equal to $25,000.

23(iii) The licensee will hold directly <-or in trust.

24(iv) Is in a form acceptable to the department.

25(2) The bond shall meet all of the following:

26(i) Be a penal bond conditioned on compliance with
27this act and subject to forfeiture by the department.

28(ii) Run to the Commonwealth for its use.

29(iii) Be for the use of a person against the
30licensee for the benefit of a consumer who is injured by

1a violation of this act or regulation promulgated under
2this act.

3(iv) Contains a cancellation provision as provided
4under subsection (d).

5(b) Right of aggrieved person.--

6(1) If a person is aggrieved, the person may do one of
7the following:

8(i) With the written consent of the department,
9recover fees and costs from a bond by filing a claim with
10the surety company or maintaining an action on the bond.

11(ii) Recover fees and costs by filing a formal
12complaint against the licensee with the department which
13shall adjudicate the matter. The adjudication shall be
14binding upon the surety company and enforceable by the
15department in Commonwealth Court and by an aggrieved
16person in any court.

17(2) An aggrieved person seeking to recover from a bond
18that has already been forfeited by the department or which
19the department is in the process of forfeiting may recover
20payment on the bond if, after filing a petition with the
21department, the department consents to the aggrieved person's
22requested payment or portion of the payment. The department
23may pay the aggrieved person from the bond proceeds it
24recovers.

25(c) Additional relief.--

26(1) Nothing under this section shall be construed to
27limit the ability of a court or magisterial district judge to
28award to an aggrieved person other damages, court costs and
29attorney fees, except that claims that are not fees or
30related costs may not be recovered from the bond.

1(2) The department may consent to or order pro rata or
2other recovery on the bond for an aggrieved person if claims
3against the bond may or shall exceed its full monetary
4amount.

5(d) Cancellation of bonds.--A bond shall contain a provision
6that it may not be canceled for cause unless notice of intention
7to cancel is given to the department at least 30 days before the
8day upon which cancellation takes effect. Cancellation of the
9bond shall not invalidate the bond regarding the period of time
10it was in effect.

11Section 306. Application information.

12An applicant or licensed provider must notify the department
13within <-60 30 days after a change in the information required
14under section 302(b)(2)(i) or 303(1), (3) or (5).

15Section 307. Public availability of application information.

16Except for the addresses required under section 303(3) and
17the proprietary information required under section 303(5), the
18department shall make the information in an application for
19licensure and renewal of licensure as a provider available to
20the public.

21Section 308. <-Certificate of licensure Issuance of license.

22(a) Time for issuance.--The department shall decide whether
23to issue a license to an applicant within 60 days of receiving
24the applicant's completed application. The department may extend
25the time period for 30 days and shall notify the applicant of
26the extended time period, including a final decision date, in
27writing.

28(b) Investigation.--Upon receipt of a completed application
29the department may conduct an investigation of the applicant,
30including its owners, officers, directors, principals or agents,

1in order to decide whether to issue the license.

<-2(b.1) Covered license.--A license under this chapter shall 
3be deemed to be a covered license within the meaning of section 
4405 of the act of May 15, 1933 (P.L.565, No.111), known as the 
5Department of Banking and Securities Code. The department shall 
6notify a licensee if a covered individual within the meaning of 
7section 405 of the Department of Banking and Securities Code 
8that is or will be employed or contracted by the licensee has 
9criminal background that renders the individual unfit for the 
10debt settlement services business.

11(c) Appeal of denial.--If the department refuses to issue a
12license, it shall notify the applicant in writing that the
13license has been denied, including the reason for the denial and
14that the applicant has the right to appeal the denial to the
<-15secretary commission within 30 days.

16(d) Duration.--A license shall be issued for a period <-of one 
17year <-not to exceed 14 months on a schedule determined by the
18department, except that if a license is issued prior to the
19beginning of a licensing year, the license shall only be valid
20until the end of that licensing year, at which time it may be
21renewed subject to this act. If a license is denied, canceled,
22surrendered, revoked or suspended, no part of the license fee or
23license renewal fee shall be subject to rebate.

<-24(e) Contents.--The license shall be on a form determined by
25the department and shall contain the name of the licensee, the
26address at which the licensee is conducting business and a
27license number.

28(f) Display.--The license must be displayed prominently at
29the licensee's business locations.

30(g) <-(e) Transfer prohibited.--

1(1) Except as provided for under this subsection, the
2license may not be transferred, assigned or pledged.

3(2) A licensee may, upon notice to the department,
4transfer up to 50% 49% of the <-securities ownership of a
5licensee to another entity without affecting the validity of
6a license granted under this act.

<-7(h) (f) Conditional licenses.--The department may impose
8conditions on the issuance of a license under this act. If the
9department determines that conditions imposed upon a license
10have not been fulfilled, the department may take action
11authorized under this act against the licensee. For applicants,
12the department may issue licenses effective immediately upon
13receipt of an application, which shall be conditional licenses
14issued under this subsection.

<-15(i) (g) Transitional license.--

<-16(1) A person that is providing debt settlement services
17before the effective date of this section and that seeks to
18continue providing the services after the effective date of
19this section shall submit <-an a completed application for a
20license under this act within <-ten 30 days of the effective
21date of this section. The applicant may continue to provide
22debt settlement services, according to this act, while the
23department processes the <-completed application for licensure.

<-24(2) A person providing debt settlement services before
25the effective date of this section who does not submit an
26application for a license within ten days of the effective
27date of this section must cease operations until it has met
28the conditions for licensure under this act.

29Section 309. Renewal of license.

30(a) Procedure.--An application for renewal of a license

1shall be submitted to the department in the manner determined by
2the department. The application for renewal shall be accompanied
3by a fee of $1,250.

4(b) Required condition.--The department shall determine the
5information and documentation that shall be provided in the
6application for renewal of a license in a manner sufficient to
7establish that the licensee will continue to conduct its
8business in accordance with this act.

9Section 310. Grounds for <-denial denying, suspending, revoking 
10or refusing to renew.

11(a) Reasons.--The department may deny, suspend, revoke or
12refuse to renew a license if the applicant or one of its owners,
13officers, directors, principals<-, employees or agents did any of
14the following:

15(1) Made a material misstatement in the license
16application or a submission required under this act or by the
17department.

18(2) Failed to comply with or violated a provision of
19this act or a regulation, order or statement of policy issued
20by the department under this act.

21(3) Engaged in unfair or unethical conduct in connection
22with the debt settlement services business in this
23Commonwealth.

24(4) Does not possess the financial responsibility,
25character, reputation, integrity and general fitness
26sufficient to warrant the belief that the debt settlement
27services business will be conducted lawfully, honestly and in
28the public interest.

29(5) Has been convicted of or pleaded guilty or nolo
30contendere to a crime of moral turpitude or to an offense

1graded as a felony.

2(6) Is currently enjoined by a court of competent
3jurisdiction from engaging in the business of debt settlement
4services in this Commonwealth.

5(7) Has had a license issued by the department <-or 
6another state denied, not renewed, suspended or revoked.

7(8) Has become the subject of a United States Postal
8Service fraud order.

9(9) Has an outstanding debt to the Commonwealth or a
10Commonwealth agency.

11(10) Has failed to maintain the bond required under
12section 305.

13(11) Becomes insolvent.

14(b) Definitions.--As used in this section the following
15words and phrases shall have the meanings given to them in this
16subsection:

17"Insolvent." As follows:

18(1) The liabilities of the applicant or licensee exceed
19the assets of the applicant or licensee.

20(2) The applicant or licensee cannot meet the
21obligations of the applicant or licensee as they mature or is
22in a financial condition that the applicant or licensee
23cannot continue in business in a safe manner to the customers
24of the applicant or licensee.

25Section 311. (Reserved).

26Section 312. Reinstatement.

27The department may reinstate a license that was previously
28suspended, revoked or denied renewal, if all of the following
29exist:

30(1) A condition that warranted the original action has

1been corrected to the department's satisfaction.

2(2) The department has reason to believe that the
3condition is not likely to occur again.

4(3) The licensee satisfies all other requirements of
5this act.

6Section 313. Limitations.

7(a) Name or address.--A licensee may not conduct business
8under this act under a name or at an address different from that
9contained on the licensee's license. If a licensee changes its
10name or its business address, it shall notify the department
11within ten days of the change and the department shall issue a
12new license specifying the licensee's new name or address.

13(b) Other businesses.--A licensee may not conduct a business
14other than the debt settlement service business licensed by the
15department under this act unless it notifies the department in
16writing at least 30 days before beginning to conduct that
17business.

18CHAPTER 5

19PROVIDER RESPONSIBILITIES

20Section 501. Good faith.

21A provider must act in good faith in all matters under this
22act.

23Section 502. Prerequisites for providing debt settlement
24services.

25(a) Disclosure.--Before an individual consents to pay for
26goods or services offered by a provider, the provider must
27disclose truthfully, in a clear and conspicuous manner <-in a 
28written agreement signed by the provider and the individual for 
29whom debt settlement services will be rendered, the following
30material information:

1(1) All of the following:

2(i) The amount of time necessary to achieve the
3represented results.

4(ii) The extent to which the debt settlement
5services may include a settlement offer to any of the
6individual's creditors or debt collectors, including

7the time by which the provider will make a bona fide
8settlement offer to each of the individual's creditors or
9debt collectors.

10(iii) The cost to the individual for providing debt
11settlement services<-. and the method by which any fee for 
12consideration for settling each individual debt will be 
13calculated.

14(iv) The total estimated program costs if the
15individual meets all program obligations and completes
16the program.

<-17(2) If the debt settlement service includes a settlement
18offer to any of the individual's creditors or debt
19collectors, the amount of money or the percentage of each
20outstanding debt that the individual shall accumulate before
21the provider will make a bona fide settlement offer to each
22of them.

<-23(3) (2) To the extent that any aspect of the debt
24settlement service relies upon or results in the customer's
25failure to make timely payments to creditors or debt
26collectors, that the use of debt settlement services will
27likely affect the individual's creditworthiness, may result
28in the individual being subject to collections or sued by
29creditors or debt collectors and may increase the amount of
30money the individual owes due to the accrual of fees and

1interest.

<-2(3) (4) (3) If an aspect of the debt settlement services
3relies upon or results in the individual's failure to make
4timely payments to creditors or debt collectors, that the use
5of the debt settlement services will likely adversely affect
6the individual's creditworthiness, may result in the
7individual being subject to collection actions or sued by
8creditors or debt collectors and may increase the amount of
9money the individual owes due to the accrual of fees and
10interest.

<-11(4) (5) (4) If the provider requests or requires the
12individual to place funds in an account at a bank, that the
13individual owns the funds held in the account, the individual
14may withdraw from the debt settlement services at any time
15without penalty and, if the individual withdraws, that the
16individual shall receive all funds in the account, other than
17funds earned by the provider, within seven business days of
18the individual's request.

<-19(6) (5) That the individual may terminate the debt
20settlement services agreement upon three days' written notice
21to the debt settlement provider.

<-22(7) That the debt settlement services agreement may have
23tax implications to the individual.

<-24(6) That the amount of a debt that is forgiven or
25canceled by a creditor may be considered income of the
26individual for tax purposes.

27(b) Prohibition.--A provider may not misrepresent, directly
28or by implication, any material aspect of any debt settlement
29services, including:

30(1) The amount of money or the percentage of the debt

1amount that an individual may save by using the service.

2(2) The amount of time necessary to achieve the
3represented result.

4(3) The amount of money or the percentage of each
5outstanding debt that the individual shall accumulate before
6the provider will initiate attempts with the individual's
7creditors or debt collectors or make a bona fide offer to
8negotiate, settle or modify the terms of the individual's
9debt.

10(4) The effect of the service on the individual's
11creditworthiness.

12(5) The effect of the service on collection efforts of
13the individual's creditors or debt collectors.

14(6) The percentage or number of individuals who attain
15the represented results.

16(7) Whether debt settlement services are offered or
17provided by a nonprofit entity.

<-18(8) The total estimated program costs if the individual
19meets all program obligations and completes the program.

20(c) Payment or consideration.--A provider may not receive
21payment of a fee or consideration for debt settlement services
22unless:

23(1) <-The the provider has renegotiated, settled, reduced
24or otherwise altered the terms of at least one debt under a
25debt settlement plan<-.;

26(2) <-The the individual has made at least one payment
27under the debt settlement plan<-.; and

28(3) <-The the fee or consideration for settling each
29individual debt enrolled in a debt settlement plan meets one
30of the following:

1(i) Bears the same proportional relationship to the
2total fee for settling the entire debt balance as the
3individual renegotiated, settled, reduced or otherwise 
4altered debt amount bears to the entire debt amount. For
5purposes of this subparagraph, the individual debt amount
6and the entire debt amount shall be amounts owed at the
7time the debt was enrolled in the debt settlement
8service.

9(ii) Is a percentage of the amount saved as a result
10of the settlement. The percentage charged may not change
11from one individual renegotiated, settled, reduced or 
12otherwise altered debt to another. For purposes of this
13subparagraph, the amount saved shall be the difference
14between the amount owed at the time the debt was enrolled
15in the debt settlement service and the amount actually
16paid to satisfy the debt.

17(d) Construction.--Nothing under this section shall prohibit
18requesting or requiring the individual to place funds in an
19account to be used for the provider's fees for payments to
20creditors or debt collectors in connection with the
21renegotiation, settlement, reduction or other alteration of the
22terms of payment or other terms of debt, if:

23(1) The funds are held in an account at a bank <-solely in 
24the name of the client.

25(2) The individual owns the funds held in the account
26and is paid any accrued interest on the account, if any is
27earned.

28(3) If the provider does not administer the account, the
29entity administering the account is not owned, controlled by
30or affiliated with the provider.

1(4) The entity administering the account does not give
2or accept any money or other compensation in exchange for
3referrals of business by the provider.

4(5) The individual may withdraw from the debt settlement
5services at any time without penalty and shall receive all
6funds in the account, other than funds earned by the provider
7in compliance with this section, within seven days of the
8individual's request.

9(e) Nonlicensed provider.--If a provider is not licensed as
10required under this act when an individual assents to an
11agreement, the agreement shall be voidable by the individual.

12CHAPTER 7

13ADMINISTRATION AND ENFORCEMENT

14Section 701. Powers and duties.

15The department shall have the authority to:

16(1) As follows:

17(i) Examine an instrument, document, account, book,
18record or file of a licensee or a person having a
19connection to the licensee or make other investigations
20as may be necessary to administer this act. The
21examination may include documents, accounts, books or
22records that relate to the operation of the licensee that
23are in the possession of an affiliate, subsidiary or
24other business entity.

25(ii) Under the authority of this paragraph, the
26department may remove an instrument, document, account,
27book, record or file of a licensee or person to a
28location outside of the licensee's or person's office
29location.

30(iii) The examination may be conducted without prior

1notice to the licensee or person and the costs of the
2examination shall be paid by the licensee or person
3subject to the examination.

4(2) Conduct administrative hearings on a matter
5pertaining to this act and issue subpoenas to compel the
6attendance of witnesses or the production of documents,
7accounts, books or records at a hearing. A document, account,
8book or record subject to subpoena may be retained by the
9department until the proceeding in connection with which it
10was subpoenaed is completed. A department official may
11administer oaths or affirmations to a person whose testimony
12is required.

13(3) Request and receive information or records,
14including reports of criminal history record information,
15from a Federal, State, local or foreign government entity
16regarding an applicant, a licensee or a person related to the
17business of debt settlement services. The cost associated
18with the request shall be paid by the applicant or licensee.

19(4) Promulgate regulations or issue statements of policy
20or orders to ensure the proper administration or enforcement
21of this act and the proper conduct of licensees under this
22act.

23(5) Prohibit a person or licensee that violates this act
24from working in a capacity related to activities regulated by
25the department.

26(6) Order a person or licensee to make restitution for
27actual damages to consumers caused by a violation of this act
28or to refund fees collected in violation of this act.

29(7) Issue a cease and desist order that takes effect
30immediately and is subject to a hearing within 14 days of the

1issuance of the order.

2(8) Impose other conditions or take other actions as the
3department deems appropriate to administer or enforce this
4act.

5(9) Provide the following on its Internet website:

6(i) Information for licensees on the provisions of
7this act.

8(ii) Information for consumers regarding the
9protections of this act.

10(iii) Information on filing consumer complaints,
11including a toll-free telephone number.

12(iv) A list of current licensees.

13Section 702. Administrative proceedings.

14(a) Hearings.--A person aggrieved by a decision of the
15department may appeal the decision to the <-secretary commission.
16The appeal shall be conducted under 2 Pa.C.S. Ch. 5 Subch. A
17(relating to practice and procedure of Commonwealth agencies).

18(b) Injunctions.--The department may maintain an action for
19an injunction or other process against a person to restrain or
20prevent the person from violating this act.

21(c) Final orders.--

22(1) A decision of the <-secretary commission, or an 
23unappealed order of the department, shall be a final order of
24the department and shall be enforceable in a court of
25competent jurisdiction.

26(2) The department may publish final adjudications
27issued under this section, subject to redaction or
28modification to preserve confidentiality.

29(d) Appeals.--A person aggrieved by a decision of the
<-30secretary commission may appeal the decision under 2 Pa.C.S. Ch.

17 Subch. A (relating to judicial review of Commonwealth agency
2action).

3Section 703. Reports to department.

4(a) Annual Periodic report.--A licensee shall file <-an annual 
<-5a periodic report with the department on a date determined by
6the department setting forth information as the department shall
7require concerning the debt settlement services business
8conducted by the licensee during the preceding calendar year.
9The report shall be on a form provided by the department.

10(b) Report of enforcement action.--A licensee shall report
11to the department a final, nonappealable order finding a
12licensee guilty or liable in any enforcement action taken
13against the licensee by any Federal or State agency. The report
14must be filed no later than seven days after the licensee is
15made aware of the final order. The licensee shall provide
16updates to the department as to the status of an enforcement
17action as required by the department.

18(c) Penalty.--A licensee who fails to file an annual report
19with the department as required under subsection (a) may be
20subject to a penalty of $100 for each day after the date that
21the annual report was required to be filed.

22Section 704. Violations.

23(a) Imposition.--The department may impose a civil penalty
24of up to $10,000 for each violation of this act.

25(b) Unfair trade practices.--A person who is in violation of
26this act shall be in violation of the act of December 17, 1968
27(P.L.1224, No.387), known as the Unfair Trade Practices and
28Consumer Protection Law.

29Section 705. Banking Fund.

30A fee or penalty collected by the department under this act

1shall be deposited into the Banking Fund.

2CHAPTER 21

3MISCELLANEOUS PROVISIONS

4Section 2101. Relation to Electronic Signatures in Global and
5National Commerce Act.

6This act modifies, limits and supersedes the Electronic
7Signatures in Global and National Commerce Act (Public Law 106-
8229, 15 U.S.C. § 7001 et seq.), but does not modify, limit or
9supersede section 101(c) of the Electronic Signatures in Global
10and National Commerce Act or authorize electronic delivery of
11any of the notices described in section 103(b) of the Electronic
12Signatures in Global and National Commerce Act.

13Section 2102. Transitional provisions.

14Transactions entered into before the effective date of this
15section and the rights, duties and interests resulting from the
16transactions may be completed, terminated or enforced as
17required or permitted by a law repealed or modified under this
18act as though the repeal or modification had not occurred.

19Section 2103. Repeal.

20(a) Intent.--The General Assembly declares that the repeal
21under subsection (b) is necessary to effectuate the purposes of
22this act.

23(b) Provision.--The act of October 9, 2008 (P.L.1421,
24No.117), known as the Debt Management Services Act, is repealed
25insofar as it applies to debt settlement services.

26Section 2104. Effective date.

27This act shall take effect <-in 60 days. as follows:

28(1) This section shall take effect immediately.

29(2) The following provisions shall take effect November
301, 2014:

1(i) Chapters 1, 7 and 21.

2(ii) Sections 302, 303, 304, 305, 306, 307, 308, 310
3and 313.

4(3) The remainder of this act shall take effect January 1,
52015.