DEPARTMENT OF BANKING AND SECURITIES [ 10 PA. CODE CH. 57 ] Debt Management Services Continuing Education [44 Pa.B. 2751]
[Saturday, May 10, 2014]The Department of Banking and Securities (Department) proposes to add Chapter 57 (relating to debt management services continuing education) to read as set forth in Annex A. This chapter is proposed under the authority of section 9(c) of the Debt Management Services Act (act) (63 P. S. § 2409(c)).
Purpose
The proposed rulemaking sets forth the continuing education requirements for credit counselors and supervisors employed by a debt management services licensee. The proposed rulemaking will satisfy the Department's obligation under section 9(c) of the act to promulgate regulations delineating the continuing education requirements for credit counselors and supervisors employed by debt management services licensees.
Explanation of Regulatory Requirements
Proposed § 57.1 (relating to definitions) defines the words and terms used in Chapter 57.
Proposed § 57.11 (relating to continuing education requirements) sets forth the continuing education requirements for credit counselors and supervisors.
Proposed § 57.12 (relating to course format) clarifies the acceptable formats for continuing education units.
Proposed § 57.13 (relating to former registered certifying organizations) explains how the Department will treat continuing education units obtained from a certifying organization which is no longer on the provider list.
Proposed § 57.21 (relating to reporting) sets forth the information a licensee shall report to the Department and how and when the information is to be reported.
Proposed § 57.22 (relating to recordkeeping) sets forth the recordkeeping requirements for licensees.
Proposed § 57.23 (relating to compliance) explains how the Department will verify compliance.
Proposed § 57.24 (relating to enforcement) sets forth the Department's enforcement powers.
Proposed § 57.31 (relating to registration) explains the method for registering as an acceptable certifying organization.
Proposed § 57.32 (relating to criteria) sets forth the Department's criteria for the designation of an acceptable continuing education provider.
Proposed § 57.33 (relating to verification) explains how the Department will verify that a certifying organization continues to meet the criteria of § 57.32.
Affected Parties
The proposed rulemaking would affect debt management services providers licensed by the Department.
Fiscal Impact
State government
The proposed rulemaking would have a de minimus impact on the Department. The Department already regulates the debt management services providers. Proposed Chapter 57 only adds another item that the Department will review in its investigations and examinations. The proposed rulemaking will not have impact on the Commonwealth and its political subdivisions.
Regulated community
The proposed rulemaking would have a de minimus impact on the regulated community. Credit counselors employed by debt management services licensees already complete continuing education to obtain and maintain credit counselor certification. Proposed Chapter 57 would only add the cost of attendance of continuing education for supervisors if the supervisors are not also certified as credit counselors.
Paperwork
The proposed rulemaking would require the regulated community to maintain documentation to verify that the credit counselors and supervisors in its employ completed the continuing education requirements.
Effective Date and Sunset Date
Chapter 57 will be effective upon final-form publication in the Pennsylvania Bulletin. The regulations do not have a sunset date because the Department will periodically review the effectiveness of the regulations.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on April 24, 2014, the Department submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to IRRC and to the Chairpersons of the House Commerce Committee and the Senate Banking and Insurance Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Department, the General Assembly and the Governor of comments, recommendations or objections raised.
Public Comments
Interested persons are invited to submit written comments, suggestions or objections regarding the proposed rulemaking to the Office of Chief Counsel, Department of Banking and Securities, Attention: Public Comment on Regulation 3-52, 17 N. Second Street, Suite 1300, Harrisburg, PA 17101-2290, fax (717) 783-8427, ra-pabankreg@pa.gov within 30 days after publication in the Pennsylvania Bulletin.
GLENN E. MOYER,
SecretaryFiscal Note: 3-52. No fiscal impact; (8) recommends adoption.
Annex A TITLE 10. BANKING AND SECURITIES PART IV. BUREAU OF CONSUMER CREDIT AGENCIES CHAPTER 57. DEBT MANAGEMENT SERVICES CONTINUING EDUCATION Subchap.
A. GENERAL PROVISIONS B. CREDIT COUNSELORS AND SUPERVISORS C. LICENSEES D. CERTIFYING ORGANIZATIONS Subchapter A. GENERAL PROVISIONS Sec.
57.1. Definitions. § 57.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Act—Debt Management Services Act (63 P. S. §§ 2401—2449).
Certifying organization—An independent third-party offering debt management services certification for credit counselors and continuing education courses for supervisors.
Continuing education unit—An hour of continuing education.
Credit counselor—An individual who interacts, corresponds or otherwise communicates with a consumer on behalf of a licensee to discuss, develop, implement or maintain a consumer education program for the consumer regarding debt management services.
Licensee—A debt management service provider licensed by the Department under the act.
Supervisor—An individual with direct responsibility for the actions of one or more credit counselors, for example, a manager.
Subchapter B. CREDIT COUNSELORS AND SUPERVISORS Sec.
57.11. Continuing education requirements. 57.12. Course format. 57.13. Former registered certifying organizations. § 57.11. Continuing education requirements.
The following continuing education requirements shall be met:
(1) A credit counselor shall maintain valid certification through a registered certifying organization.
(2) A supervisor shall complete a minimum of 16 continuing education units every 2 years through a registered certifying organization.
§ 57.12. Course format.
A credit counselor or supervisor may complete continuing education units through a course format offered by a registered certifying organization including live instruction, web and teleconference formats.
§ 57.13. Former registered certifying organizations.
If a credit counselor or supervisor completes courses with a certifying organization that the Department removes from the provider list, the Department will consider the continuing education units:
(1) Valid if the credit counselor or supervisor completed the units before the Department removed the certifying organization from the list and the Department will not take action against the licensee.
(2) Invalid if the credit counselor or supervisor completed the units after the Department removed the certifying organization from the list and the Department will consider taking action against the licensee.
Subchapter C. LICENSEES Sec.
57.21. Reporting. 57.22. Recordkeeping. 57.23. Compliance. 57.24. Enforcement. § 57.21. Reporting.
(a) The licensee shall prepare a statement verifying that the credit counselors and supervisors employed by the licensee meet the continuing education requirements.
(b) The statement must include a list for each credit counselor that contains the credit counselor's:
(1) Name.
(2) Job title.
(3) Work address.
(4) Certification number.
(5) Hire date.
(6) Certification effective date.
(7) Certification expiration date.
(8) Certifying organization.
(c) The statement must include a list for each supervisor that contains the supervisor's:
(1) Name.
(2) Job title.
(3) Work address.
(4) Completed continuing education units within the past 24 months.
(5) Hire date.
(6) Certifying organization.
(d) The licensee shall submit the statement to the Department as part of each debt management license renewal application.
§ 57.22. Recordkeeping.
The licensee shall keep records regarding completion of the continuing education requirements for at least four license renewal periods.
§ 57.23. Compliance.
The Department will verify compliance with this chapter through the methods statutorily available to the Department under the act, including examination. If the Department conducts an examination, the Department will assess examination costs on the licensee consistent with section 17(1) of the act (63 P. S. § 2417(1)).
§ 57.24. Enforcement.
(a) A violation of this chapter is a violation of the act.
(b) If the licensee violates this chapter, the Department will use the enforcement options statutorily available to it under the act, including revocation of the license, suspension of the license or assessment of a penalty.
Subchapter D. CERTIFYING ORGANIZATIONS Sec.
57.31. Registration. 57.32. Criteria. 57.33. Verification. § 57.31. Registration.
(a) The certifying organization shall submit a completed registration form to the Department to be considered an acceptable certifying organization. The Department will provide the form on the Department's web site.
(b) The Department will maintain a list of registered certifying organizations on its web site at www.dobs.state.pa.us.
§ 57.32. Criteria.
The Department will consider the certifying organization to be an acceptable continuing education provider if the certifying organization:
(1) Submits the registration form to the Department.
(2) Requires at least 16 continuing education units for credit counselor certification.
(3) Offers credit counselor certification that is valid for no longer than 24 months.
(4) Permits supervisors to attend continuing education courses.
§ 57.33. Verification.
(a) The Department will periodically request that the registered certifying organization resubmit the form provided by the Department to verify that the certifying organization continues to meet the criteria.
(b) If a registered certifying organization fails to meet the requirements of this chapter, the Department will remove that certifying organization's name from the Department's web site as an acceptable provider.
[Pa.B. Doc. No. 14-971. Filed for public inspection May 9, 2014, 9:00 a.m.]
