Colorado 2024 Regular Session

Colorado House Bill HB1380 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 24-1053.01 Josh Schultz x5486
1	8		HOUSE BILL 24-1380
2		-	BY REPRESENTATIVE(S) Mabrey, Boesenecker, Brown, Duran, Epps,
3		-	Froelich, Garcia, Hamrick, Hernandez, Herod, Jodeh, Kipp, Lieder,
4		-	Lindsay, Ortiz, Rutinel, Sirota, Story, Titone, Velasco, Vigil, Weissman,
5		-	Willford, Amabile, Clifford, Ricks, Valdez;
6		-	also SENATOR(S) Cutter and Jaquez Lewis, Coleman, Danielson, Exum,
7		-	Gonzales, Hinrichsen, Kolker, Marchman, Michaelson Jenet, Priola,
8		-	Roberts, Rodriguez, Winter F.
	9	+	House Committees Senate Committees
	10	+	Judiciary Judiciary
	11	+	A BILL FOR AN ACT
9	12		C
10		-	ONCERNING MEASURES TO INCREASE CONSUMER PROTECTIONS IN
11		-	TRANSACTIONS WITH DEBT
12		-	-RELATED SERVICES.
	13	+	ONCERNING MEASURES TO INCREAS E CONSUMER PROTECTIONS IN101
	14	+	TRANSACTIONS WITH DEBT -RELATED SERVICES.102
	15	+	Bill Summary
	16	+	(Note: This summary applies to this bill as introduced and does
	17	+	not reflect any amendments that may be subsequently adopted. If this bill
	18	+	passes third reading in the house of introduction, a bill summary that
	19	+	applies to the reengrossed version of this bill will be available at
	20	+	http://leg.colorado.gov
	21	+	.)
	22	+	The bill makes the following actions by a debt collector or
	23	+	collection agency that is subject to the "Colorado Fair Debt Collection
	24	+	Practices Act" unfair or deceptive trade practices under the "Colorado
	25	+	Consumer Protection Act" (consumer protection act):
	26	+	! Taking any legal action on a debt against a consumer if the
	27	+	debt collector or collection agency is the named plaintiff
	28	+	SENATE
	29	+	3rd Reading Unamended
	30	+	April 26, 2024
	31	+	SENATE
	32	+	Amended 2nd Reading
	33	+	April 25, 2024
	34	+	HOUSE
	35	+	3rd Reading Unamended
	36	+	April 17, 2024
	37	+	HOUSE
	38	+	Amended 2nd Reading
	39	+	April 16, 2024
	40	+	HOUSE SPONSORSHIP
	41	+	Mabrey, Boesenecker, Brown, Duran, Epps, Froelich, Garcia, Hamrick, Hernandez, Herod,
	42	+	Jodeh, Kipp, Lieder, Lindsay, Ortiz, Rutinel, Sirota, Story, Titone, Velasco, Vigil, Weissman,
	43	+	Willford
	44	+	SENATE SPONSORSHIP
	45	+	Cutter and Jaquez Lewis, Coleman, Danielson, Exum, Gonzales, Hinrichsen, Kolker,
	46	+	Marchman, Michaelson Jenet, Priola, Roberts, Rodriguez, Winter F.
	47	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	48	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	49	+	Dashes through the words or numbers indicate deletions from existing law. unless the debt collector or collection agency has purchased
	50	+	complete ownership of the debt, without any ownership
	51	+	interest retained by the seller, original creditor, or other
	52	+	third party; and
	53	+	! Seeking or supporting a warrant or otherwise promoting the
	54	+	arrest or detainment of a consumer, including on motions
	55	+	related to discovery or contempt of court, in any legal
	56	+	action against the consumer in connection with an action to
	57	+	collect or attempt to collect a debt.
	58	+	A creditor that is owed a consumer debt and seeks or supports a
	59	+	warrant or otherwise promotes the arrest or detainment of a consumer in
	60	+	any legal action against the consumer in connection with an action to
	61	+	collect or attempt to collect the debt commits a deceptive trade practice
	62	+	under the consumer protection act.
	63	+	The bill requires credit services organizations to file notification
	64	+	with and pay a fee to the administrator of the uniform consumer credit
	65	+	code (administrator) within 30 days after commencing business in
	66	+	Colorado and, thereafter, on or before July 1 of each year.
	67	+	The administrator may order a person to cease and desist from
	68	+	engaging in violations of the "Colorado Credit Services Organization
	69	+	Act" (CCSOA). An order issued by the administrator may require the
	70	+	person to pay to a buyer a refund of unlawful charges under the CCSOA
	71	+	charged to the buyer and to pay an administrative penalty of up to $1,500
	72	+	per violation. A person aggrieved by an order of the administrator may
	73	+	seek judicial review of the order in the Colorado court of appeals.
	74	+	The bill clarifies that a plan that a debt management services
	75	+	provider prepares for an individual to make regular, periodic payments
	76	+	must meet the definition of "plan" in the "Uniform Debt-Management
	77	+	Services Act".
	78	+	The bill also clarifies that if a debt management services provider
	79	+	utilizes the internet or other electronic means to meet specific compliance
	80	+	requirements, including disclosures, reporting requirements, and
	81	+	record-keeping requirements, the provider must obtain a consumer's
	82	+	consent at the time of satisfying the requirements.
	83	+	The bill repeals provisions outlining the fees a debt management
	84	+	services provider may charge and requires the administrator to adopt rules
	85	+	specifying the nature and amount of permitted fees.
	86	+	Be it enacted by the General Assembly of the State of Colorado:1
13	87
14		-	Be it enacted by the General Assembly of the State of Colorado:
15		-	SECTION 1. In Colorado Revised Statutes, 5-16-111, add (1.5) as
16		-	follows:
17		-	5-16-111. Legal actions by collection agencies. (1.5) A
18		-	DEBT
19		-	COLLECTOR OR COLLECTION AGENCY THAT IS NOT A CREDITOR OR DEBT
20		-	BUYER SHALL NOT BE THE NAMED PLAINTIFF IN A LEGAL ACTION OR TAKE
21		-	ANY LEGAL ACTION ON A DEBT AGAINST A CONSUMER UNLESS THE DEBT
22		-	COLLECTOR OR COLLECTION AGENCY
23		-	:
24		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
25		-	officers and the Governor. To determine whether the Governor has signed the bill
26		-	or taken other action on it, please consult the legislative status sheet, the legislative
27		-	history, or the Session Laws.
28		-	________
29		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
30		-	through words or numbers indicate deletions from existing law and such material is not part of
31		-	the act. (a) ENSURES THAT THE NAME OF THE ORIGINAL CREDITOR OR
32		-	ASSIGNOR AND THE NAME OF THE DEBT COLLECTOR OR COLLECTION AGENCY
33		-	ARE INCLUDED IN THE CASE CAPTION OF THE COMPLAINT
34		-	, IN THAT ORDER;
35		-	AND
36		-	(b) HAS A COMPLETE AND EFFECTIVE ASSIGNMENT , INCLUDING
37		-	COMPLETE SETTLEMENT AUTHORITY AND AUTHORITY TO RESOLVE THE
38		-	LITIGATION
39		-	.
40		-	SECTION 2. In Colorado Revised Statutes, 5-19-110, add (3), (4),
41		-	(5), (6), and (7) as follows:
42		-	5-19-110. Powers of administrator of the uniform consumer
43		-	credit code and district attorney - subpoenas - hearings - notification
	88	+	2
	89	+	SECTION 1. In Colorado Revised Statutes, 5-16-111, add (1.5)3
	90	+	as follows:4
	91	+	1380-2- 5-16-111. Legal actions by collection agencies. (1.5) A DEBT1
	92	+	COLLECTOR OR COLLECTION AGENCY THAT IS NOT A CREDITOR OR DEBT2
	93	+	BUYER SHALL NOT BE THE NAMED PLAINTIFF IN A LEGAL ACTION OR TAKE3
	94	+	ANY LEGAL ACTION ON A DEBT AGAINST A CONSUMER UNLESS THE DEBT4
	95	+	COLLECTOR OR COLLECTION AGENCY :5
	96	+	(a) ENSURES THAT THE NAME OF THE ORIGINAL CREDITOR OR6
	97	+	ASSIGNOR AND THE NAME OF THE DEBT COLLECTOR OR COLLECTION7
	98	+	AGENCY ARE INCLUDED IN THE CASE CAPTION OF THE COMPLAINT , IN THAT8
	99	+	ORDER; AND9
	100	+	(b) HAS A COMPLETE AND EFFECTIVE ASSIGNMENT, INCLUDING10
	101	+	COMPLETE SETTLEMENT AUTHORITY AND AUTHORITY TO RESOLVE THE11
	102	+	LITIGATION.12
	103	+	13
	104	+	SECTION 2. In Colorado Revised Statutes, 5-19-110, add (3),14
	105	+	(4), (5), (6), and (7) as follows:15
	106	+	5-19-110. Powers of administrator of the uniform consumer16
	107	+	credit code and district attorney - subpoenas - hearings - notification17
44	108		- cease-and-desist orders - definitions. (3) (a) C
45		-	REDIT SERVICES
46		-	ORGANIZATIONS SHALL FILE A NOTIFICATION WITH
47		-	, AND PAY THE FEE
48		-	PRESCRIBED IN SUBSECTION
49		-	(4) OF THIS SECTION TO, THE ADMINISTRATOR
50		-	WITHIN THIRTY DAYS AFTER COMMENCING BUSINESS IN THIS STATE AND
51		-	,
52		-	THEREAFTER, ON OR BEFORE JULY 1 OF EACH YEAR. THE NOTIFICATION MUST
53		-	STATE
54		-	:
	109	+	REDIT SERVICES18
	110	+	ORGANIZATIONS SHALL FILE A NOTIFICATION WITH , AND PAY THE FEE19
	111	+	PRESCRIBED IN SUBSECTION (4) OF THIS SECTION TO, THE ADMINISTRATOR20
	112	+	WITHIN THIRTY DAYS AFTER COMMENCING BUSINESS IN THIS STATE AND ,21
	113	+	THEREAFTER, ON OR BEFORE JULY 1 OF EACH YEAR. THE NOTIFICATION22
	114	+	MUST STATE:23
55	115		(I) T
56		-	HE NAME OF THE CREDIT SERVICES ORGANIZATION ;
	116	+	HE NAME OF THE CREDIT SERVICES ORGANIZATION ;24
57	117		(II) T
58		-	HE NAME IN WHICH BUSINESS IS TRANSACTED , IF THE ~~NAME IS~~
59		-	DIFFERENT FROM THE NAME PROVIDED PURSUANT TO ~~SUBSECTION~~
	118	+	HE NAME IN WHICH BUSINESS IS TRANSACTED , IF THE NAME25
	119	+	IS DIFFERENT FROM THE NAME PROVIDED PURSUANT TO SUBSECTION26
60	120		(3)(a)(I)
61		-	OF THIS SECTION;
62		-	~~(III) T~~
63		-	HE ADDRESS OF THE CREDIT SERVICES ORGANIZATION 'S
64		-	PRINCIPAL OFFICE
65		-	~~, WHICH MAY BE OUTSIDE OF THIS STATE; AND~~
66		-	~~(IV) OTHER~~ INFORMATION THE ADMINISTRATOR MAY REQUIRE .
	121	+	OF THIS SECTION;27
	122	+	1380
	123	+	-3- (III) THE ADDRESS OF THE CREDIT SERVICES ORGANIZATION 'S1
	124	+	PRINCIPAL OFFICE, WHICH MAY BE OUTSIDE OF THIS STATE; AND2
	125	+	(IV) O
	126	+	THER INFORMATION THE ADMINISTRATOR MAY REQUIRE .3
67	127		(b) I
68		-	F INFORMATION IN A NOTIFICATION BECOMES INACCURATE AFTER
69		-	FILING
70		-	, NO FURTHER NOTIFICATION IS REQUIRED UNTIL THE FOLLOWING
71		-	YEAR
72		-	'S NOTIFICATION FILING IS DUE.
	128	+	F INFORMATION IN A NOTIFICATION BECOMES INACCURATE4
	129	+	AFTER FILING, NO FURTHER NOTIFICATION IS REQUIRED UNTIL THE5
	130	+	FOLLOWING YEAR'S NOTIFICATION FILING IS DUE.6
73	131		(4) A
74		-	PERSON REQUIRED TO FILE THE NOTIFICATION DESCRIBED IN
75		-	SUBSECTION
76		-	(3) OF THIS SECTION SHALL PAY TO THE ADMINISTRATOR A
77		-	NONREFUNDABLE ANNUAL NOTIFICATION FEE
78		-	. THE ADMINISTRATOR MAY
79		-	EXAMINE THE TRANSACTIONS
80		-	, BUSINESS, AND RECORDS OF A PERSON THAT
81		-	PAGE 2-HOUSE BILL 24-1380 FILES A NOTIFICATION WITHOUT ISSUANCE OF A SUBPOENA .
	132	+	PERSON REQUIRED TO FILE THE NOTIFICATION DESCRIBED IN7
	133	+	SUBSECTION (3) OF THIS SECTION SHALL PAY TO THE ADMINISTRATOR A8
	134	+	NONREFUNDABLE ANNUAL NOTIFICATION FEE . THE ADMINISTRATOR MAY9
	135	+	EXAMINE THE TRANSACTIONS, BUSINESS, AND RECORDS OF A PERSON THAT10
	136	+	FILES A NOTIFICATION WITHOUT ISSUANCE OF A SUBPOENA .11
82	137		(5) T
83		-	HE STATE TREASURER SHALL CREDIT ALL FEES COLLECTED
84		-	UNDER THIS PART
85		-	1 TO THE CONSUMER CREDIT UNIT CASH FUND .
	138	+	HE STATE TREASURER SHALL CREDIT ALL FEES COLLECTED12
	139	+	UNDER THIS PART 1 TO THE CONSUMER CREDIT UNIT CASH FUND .13
86	140		(6) (a) A
87		-	FTER NOTICE AND HEARING , THE ADMINISTRATOR MAY
88		-	ORDER A PERSON TO CEASE AND DESIST FROM ENGAGING IN VIOLATIONS OF
89		-	THIS CODE OR ANY RULE OR ORDER LAWFULLY MADE PURSUANT TO THIS
90		-	PART
91		-	1. THE ORDER ISSUED BY THE ADMINISTRATOR MAY REQUIRE THE
92		-	PERSON TO PAY TO A BUYER A REFUND OF UNLAWFUL CHARGES UNDER THIS
93		-	PART
94		-	1 CHARGED TO THE BUYER AND TO PAY AN ADMINISTRATIVE PENALTY
95		-	OF UP TO ONE THOUSAND FIVE HUNDRED DOLLARS PER VIOLATION
96		-	.
	141	+	FTER NOTICE AND HEARING, THE ADMINISTRATOR MAY14
	142	+	ORDER A PERSON TO CEASE AND DESIST FROM ENGAGING IN VIOLATIONS15
	143	+	OF THIS CODE OR ANY RULE OR ORDER LAWFULLY MADE PURSUANT TO16
	144	+	THIS PART 1. THE ORDER ISSUED BY THE ADMINISTRATOR MAY REQUIRE17
	145	+	THE PERSON TO PAY TO A BUYER A REFUND OF UNLAWFUL CHARGES UNDER18
	146	+	THIS PART 1 CHARGED TO THE BUYER AND TO PAY AN ADMINISTRATIVE19
	147	+	PENALTY OF UP TO ONE THOUSAND FIVE HUNDRED DOLLARS PER20
	148	+	VIOLATION.21
97	149		(b) T
98		-	HE STATE TREASURER SHALL CREDIT ALL RECEIPTS FROM THE
99		-	IMPOSITION OF ADMINISTRATIVE PENALTIES UNDER THIS SECTION TO THE
100		-	CONSUMER CREDIT UNIT CASH FUND
101		-	.
	150	+	HE STATE TREASURER SHALL CREDIT ALL RECEIPTS FROM THE22
	151	+	IMPOSITION OF ADMINISTRATIVE PENALTIES UNDER THIS SECTION TO THE23
	152	+	CONSUMER CREDIT UNIT CASH FUND .24
102	153		(c) A
103		-	RESPONDENT AGGRIEVED BY AN ORDER OF THE
104		-	ADMINISTRATOR MAY SEEK JUDICIAL REVIEW OF THE ORDER IN THE
105		-	COLORADO COURT OF APPEALS. THE ADMINISTRATOR MAY OBTAIN A COURT
106		-	ORDER FOR ENFORCEMENT OF THE ADMINISTRATOR
107		-	'S ORDER IN DISTRICT
108		-	COURT UNDER SECTION
109		-	24-4-106. ALL PROCEEDINGS UNDER THIS SECTION
110		-	ARE GOVERNED BY SECTIONS
111		-	24-4-105 AND 24-4-106.
	154	+	RESPONDENT AGGRIEVED BY AN ORDER OF THE25
	155	+	ADMINISTRATOR MAY SEEK JUDICIAL REVIEW OF THE ORDER IN THE26
	156	+	C
	157	+	OLORADO COURT OF APPEALS . THE ADMINISTRATOR MAY OBTAIN A27
	158	+	1380
	159	+	-4- COURT ORDER FOR ENFORCEMENT OF THE ADMINISTRATOR 'S ORDER IN1
	160	+	DISTRICT COURT UNDER SECTION 24-4-106. ALL PROCEEDINGS UNDER THIS2
	161	+	SECTION ARE GOVERNED BY SECTIONS 24-4-105 AND 24-4-106.3
112	162		(7) A
113		-	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
114		-	REQUIRES
115		-	:
	163	+	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE4
	164	+	REQUIRES:5
116	165		(a) "A
117		-	DMINISTRATOR" MEANS THE ADMINISTRATOR OF THE UNIFORM
118		-	CONSUMER CREDIT CODE
119		-	.
	166	+	DMINISTRATOR" MEANS THE ADMINISTRATOR OF THE6
	167	+	UNIFORM CONSUMER CREDIT CODE .7
120	168		(b) "C
121		-	ONSUMER CREDIT UNIT CASH FUND " MEANS THE ~~CONSUMER~~
122		-	CREDIT UNIT CASH FUND CREATED IN SECTION
123		-	~~5-2-302 (11)~~.
124		-	~~SECTION 3.~~ In Colorado Revised Statutes, 5-19-217, ~~amend~~
125		-	(b)(3)(A) and (c)(3) as follows:
126		-	5-19-217. Prerequisites for providing debt-~~management services.~~
127		-	(b) A provider may not furnish or contract to ~~furnish debt-management~~
128		-	services unless the provider, through the services of ~~a counselor or debt~~
129		-	specialist:
130		-	~~PAGE 3-HOUSE BILL 24-1380~~ (3) If the individual is to make regular, periodic payments:
	169	+	ONSUMER CREDIT UNIT CASH FUND " MEANS THE CONSUMER8
	170	+	CREDIT UNIT CASH FUND CREATED IN SECTION 5-2-302 (11).9
	171	+	SECTION 3.
	172	+	In Colorado Revised Statutes, 5-19-217, amend10
	173	+	(b)(3)(A) and (c)(3) as follows:11
	174	+	5-19-217. Prerequisites for providing debt-management12
	175	+	services. (b) A provider may not furnish or contract to furnish13
	176	+	debt-management services unless the provider, through the services of a14
	177	+	counselor or debt specialist:15
	178	+	(3) If the individual is to make regular, periodic payments:16
131	179		(A) Has prepared a plan,
132		-	AS DEFINED IN SECTION 5-19-202 (13), for
133		-	the individual;
134		-	(c) Before an individual assents to an agreement to engage in a plan,
135		-	a provider shall:
136		-	(3) With respect to all creditors identified by the individual or
137		-	otherwise known by the provider to be creditors of the individual, provide
138		-	the individual with a list of:
139		-	(A) Creditors that the provider expects to participate in the plan and
140		-	grant concessions;
141		-	(B) Creditors that the provider expects to participate in the plan but
142		-	not grant concessions;
143		-	AND
144		-	(C) Creditors that the provider expects not to participate in the plan.
145		-	and
146		-	(D) All other creditors.
147		-	SECTION 4. In Colorado Revised Statutes, 5-19-218, amend (b)
148		-	as follows:
149		-	5-19-218. Communication by electronic or other means -
150		-	definitions. (b) A provider may satisfy the requirements of section
151		-	5-19-217, 5-19-219, or 5-19-227 by means of the internet or other electronic
152		-	means if the provider obtains a consumer's consent
153		-	AT THE TIME OF
154		-	SATISFYING THE REQUIREMENTS OF SECTION
155		-	5-19-217, 5-19-219, OR
156		-	5-19-227 in the manner provided by section 101 (c)(1) of the federal act.
157		-	SECTION 5. In Colorado Revised Statutes, 5-19-223, amend
158		-	(d)(2)(A)(iii); repeal (d)(4) and (e); and add (d)(2)(C) as follows:
159		-	5-19-223. Fees and other charges - rules. (d) The following rules
160		-	apply:
161		-	(2) If an individual assents to a plan that contemplates that creditors
162		-	PAGE 4-HOUSE BILL 24-1380 or debt collectors will settle debts for less than the principal amount of the
163		-	debt:
164		-	(A) A provider may not request or receive payment of any fee or
165		-	consideration until and unless:
166		-	(iii) The fee or consideration either: Bears the same proportional
167		-	relationship to the total fee for settling the terms of the entire debt balance
168		-	as the individual debt amount bears to the entire debt amount, in which case
169		-	the individual debt amount and the entire debt amount are those owed at the
170		-	time the debt was enrolled in the service; or is a percentage of the amount
171		-	saved as a result of the settlement. The percentage charged cannot change
172		-	from one individual debt to another. The amount saved is the difference
173		-	between the amount owed at the time the debt was enrolled in the plan and
174		-	the amount actually paid to satisfy the debt THE FEE OR OTHER CHARGE
175		-	COMPLIES WITH RULES THAT THE ADMINISTRATOR ADOPTS PURSUANT TO
176		-	SUBSECTION
177		-	(d)(2)(C) OF THIS SECTION.
	180	+	AS DEFINED IN SECTION 5-19-202 (13),17
	181	+	for the individual;18
	182	+	(c) Before an individual assents to an agreement to engage in a19
	183	+	plan, a provider shall:20
	184	+	(3) With respect to all creditors identified by the individual or21
	185	+	otherwise known by the provider to be creditors of the individual, provide22
	186	+	the individual with a list of:23
	187	+	(A) Creditors that the provider expects to participate in the plan24
	188	+	and grant concessions;25
	189	+	(B) Creditors that the provider expects to participate in the plan26
	190	+	but not grant concessions;
	191	+	AND27
	192	+	1380
	193	+	-5- (C) Creditors that the provider expects not to participate in the1
	194	+	plan. and2
	195	+	(D) All other creditors.3
	196	+	SECTION 4. In Colorado Revised Statutes, 5-19-218, amend (b)4
	197	+	as follows:5
	198	+	5-19-218. Communication by electronic or other means -6
	199	+	definitions. (b) A provider may satisfy the requirements of section7
	200	+	5-19-217, 5-19-219, or 5-19-227 by means of the internet or other8
	201	+	electronic means if the provider obtains a consumer's consent
	202	+	AT THE9
	203	+	TIME OF SATISFYING THE REQUIREMENTS OF SECTION 5-19-217, 5-19-219,10
	204	+	OR 5-19-227 in the manner provided by section 101 (c)(1) of the federal11
	205	+	act.12
	206	+	SECTION 5.
	207	+	In Colorado Revised Statutes, 5-19-223, amend13
	208	+	(d)(2)(A)(iii); repeal (d)(4) and (e); and add (d)(2)(C) as follows:14
	209	+	5-19-223. Fees and other charges - rules. (d) The following15
	210	+	rules apply:16
	211	+	(2) If an individual assents to a plan that contemplates that17
	212	+	creditors or debt collectors will settle debts for less than the principal18
	213	+	amount of the debt:19
	214	+	(A) A provider may not request or receive payment of any fee or20
	215	+	consideration until and unless:21
	216	+	(iii) The fee or consideration either: Bears the same proportional22
	217	+	relationship to the total fee for settling the terms of the entire debt balance23
	218	+	as the individual debt amount bears to the entire debt amount, in which24
	219	+	case the individual debt amount and the entire debt amount are those25
	220	+	owed at the time the debt was enrolled in the service; or is a percentage26
	221	+	of the amount saved as a result of the settlement. The percentage charged27
	222	+	1380
	223	+	-6- cannot change from one individual debt to another. The amount saved is1
	224	+	the difference between the amount owed at the time the debt was enrolled2
	225	+	in the plan and the amount actually paid to satisfy the debt THE FEE OR3
	226	+	OTHER CHARGE COMPLIES WITH RULES THAT THE ADMINISTRATOR ADOPTS4
	227	+	PURSUANT TO SUBSECTION (d)(2)(C) OF THIS SECTION.5
178	228		(C) T
179		-	HE ADMINISTRATOR MAY ADOPT RULES REGARDING THE FEE OR
180		-	CHARGE AUTHORIZED PURSUANT TO SUBSECTION
181		-	(d)(2)(A)(iii) OF THIS
182		-	SECTION BY
183		-	MARCH 1, 2025. THE RULES MUST NOT UNDULY LIMIT
184		-	CONSUMER ACCESS TO DEBT MANAGEMENT SERVICES PROGRAMS BASED ON
185		-	AVAILABLE STATE AND NATIONAL DATA
186		-	.
187		-	(4) Except as otherwise provided in section 5-19-228 (d), if an
188		-	individual does not assent to an agreement, a provider may receive for
189		-	educational and counseling services it provides to the individual a fee not
190		-	exceeding one hundred dollars or, with the approval of the administrator,
191		-	a larger fee. The administrator may approve a fee larger than one hundred
192		-	dollars if the nature and extent of the educational and counseling services
193		-	warrant the larger fee.
194		-	(e) If, before the expiration of ninety days after the completion or
195		-	termination of educational or counseling services, an individual assents to
196		-	an agreement, the provider shall refund to the individual any fee paid
197		-	pursuant to subsection (d)(4) of this section.
198		-	SECTION 6. Act subject to petition - effective date. (1) Except
199		-	as specified in subsection (2) of this section, this act takes effect at 12:01
200		-	a.m. on the day following the expiration of the ninety-day period after final
201		-	PAGE 5-HOUSE BILL 24-1380 adjournment of the general assembly; except that, if a referendum petition
202		-	is filed pursuant to section 1 (3) of article V of the state constitution against
203		-	this act or an item, section, or part of this act within such period, then the
204		-	act, item, section, or part will not take effect unless approved by the people
205		-	at the general election to be held in November 2024 and, in such case, will
206		-	take effect on the date of the official declaration of the vote thereon by the
207		-	governor.
208		-	PAGE 6-HOUSE BILL 24-1380 (2) Section 5-19-223 (d)(2)(A)(iii), (d)(4), and (e), Colorado
209		-	Revised Statutes, as amended in section 5 of this act, takes effect March 1,
210		-	2025.
211		-	____________________________ ____________________________
212		-	Julie McCluskie Steve Fenberg
213		-	SPEAKER OF THE HOUSE PRESIDENT OF
214		-	OF REPRESENTATIVES THE SENATE
215		-	____________________________ ____________________________
216		-	Robin Jones Cindi L. Markwell
217		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
218		-	OF REPRESENTATIVES THE SENATE
219		-	APPROVED________________________________________
220		-	(Date and Time)
221		-	_________________________________________
222		-	Jared S. Polis
223		-	GOVERNOR OF THE STATE OF COLORADO
224		-	PAGE 7-HOUSE BILL 24-1380
	229	+	HE ADMINISTRATOR MAY
	230	+	ADOPT RULES REGARDING THE FEE6
	231	+	OR CHARGE AUTHORIZED PURSUANT TO SUBSECTION (d)(2)(A)(iii) OF THIS7
	232	+	SECTION BY MARCH 1, 2025. THE RULES MUST NOT UNDULY LIMIT8
	233	+	CONSUMER ACCESS TO DEBT MANAGEMENT SERVICES PROGRAMS BASED9
	234	+	ON AVAILABLE STATE AND NATIONAL DATA .10
	235	+	(4) Except as otherwise provided in section 5-19-228 (d), if an11
	236	+	individual does not assent to an agreement, a provider may receive for12
	237	+	educational and counseling services it provides to the individual a fee not13
	238	+	exceeding one hundred dollars or, with the approval of the administrator,14
	239	+	a larger fee. The administrator may approve a fee larger than one hundred15
	240	+	dollars if the nature and extent of the educational and counseling services16
	241	+	warrant the larger fee.17
	242	+	(e) If, before the expiration of ninety days after the completion or18
	243	+	termination of educational or counseling services, an individual assents19
	244	+	to an agreement, the provider shall refund to the individual any fee paid20
	245	+	pursuant to subsection (d)(4) of this section.21
	246	+	22
	247	+	SECTION 6. Act subject to petition - effective date. (1) Except23
	248	+	as specified in subsection (2) of this section, this act takes effect at 12:0124
	249	+	a.m. on the day following the expiration of the ninety-day period after25
	250	+	final adjournment of the general assembly; except that, if a referendum26
	251	+	petition is filed pursuant to section 1 (3) of article V of the state27
	252	+	1380
	253	+	-7- constitution against this act or an item, section, or part of this act within1
	254	+	such period, then the act, item, section, or part will not take effect unless2
	255	+	approved by the people at the general election to be held in November3
	256	+	2024 and, in such case, will take effect on the date of the official4
	257	+	declaration of the vote thereon by the governor.5
	258	+	(2) Section 5-19-223 (d)(2)(A)(iii), (d)(4), and (e), Colorado6
	259	+	Revised Statutes, as amended in section 5 of this act, takes effect March7
	260	+	1, 2025.8
	261	+	1380
	262	+	-8-