Senate File 2298 S-5198 Amend Senate File 2298 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 533A.8, subsection 5, paragraph a, Code 4 2026, is amended to read as follows: 5 a. Maintain a separate bank trust account or dedicated 6 account in which all payments received from debtors for the 7 benefit of creditors shall be deposited and in which all 8 payments shall remain until a remittance is made to either the 9 debtor or the creditor. 10 Sec. 2. Section 533A.8, subsection 5, paragraph d, Code 11 2026, is amended by striking the paragraph. 12 Sec. 3. Section 533A.8, subsection 6, Code 2026, is amended 13 to read as follows: 14 6. If the debt management program is not based on a model 15 which requires the licensee or any licensee to receive money or 16 evidences thereof from the debtor to distribute to the debtor’s 17 creditors , both of the following shall apply: 18 a. The the debtor shall maintain full control of and access 19 to any moneys set aside for payment to creditors. 20 b. The licensee may not receive consideration from any third 21 party in connection with services rendered to a debtor. 22 Sec. 4. Section 533A.8, Code 2026, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 10A. If a debtor who has contracted with 25 a licensee to settle a debt has executed a debt settlement 26 agreement with a creditor to settle such debt and has made at 27 least one payment pursuant to that agreement, and the debtor 28 subsequently fails to complete the payment terms required under 29 that debt settlement agreement, the licensee shall attempt to 30 renegotiate, resolve, reduce, or otherwise alter the terms of 31 the debt with the creditor and shall not request or receive 32 an additional fee from the debtor for any additional debt 33 management service provided by the licensee for that debt. 34 This subsection does not prohibit a licensee from requesting 35 -1- SF 2298.4038 (1) 91 (amending this SF 2298 to CONFORM to HF 2326) nls/ko 1/ 3 #1.

or receiving payment of any outstanding balance of the fee 1 required by the contract between the licensee and debtor for 2 that debt. 3 Sec. 5. Section 533A.9, subsection 4, Code 2026, is amended 4 by striking the subsection and inserting in lieu thereof the 5 following: 6 4. If a debt management program is not based on a model that 7 requires the licensee or another licensee to receive money or 8 evidences thereof from the debtor to distribute to the debtor’s 9 creditors, a licensee may not request or receive payment of 10 any fee or consideration for debt management services provided 11 under a debt management program unless all of the following are 12 true: 13 a. The licensee has renegotiated, resolved, reduced, or 14 otherwise altered the terms of at least one debt pursuant to a 15 resolution agreement or other contractual agreement executed 16 by the debtor and the creditor. 17 b. The debtor has made at least one payment pursuant to the 18 resolution agreement or other contractual agreement entered 19 into under paragraph “a” . 20 c. To the extent that debts enrolled in the debt management 21 program are renegotiated, resolved, reduced, or otherwise 22 altered individually, the fee or consideration for the debt 23 management service bears the same proportional relationship to 24 the total fee or consideration for renegotiating, resolving, 25 reducing, or otherwise altering the terms of the entire debt 26 balance as the individual debt amount bears to the entire debt 27 amount, not to exceed thirty percent of the total amount of 28 debt enrolled by the debtor at the time of enrollment in the 29 debt management program. The individual debt amount and the 30 entire debt amount are those owed at the time the debt was 31 enrolled in the debt management program. The percent charged 32 is the same for each individual debt enrolled in the debt 33 management program. 34 Sec. 6. Section 533A.9, subsection 5, Code 2026, is amended 35 -2- SF 2298.4038 (1) 91 (amending this SF 2298 to CONFORM to HF 2326) nls/ko 2/ 3

by striking the subsection and inserting in lieu thereof the 1 following: 2 5. a. Notwithstanding any provision of this section to 3 the contrary, the total aggregate fee or consideration charged 4 by a licensee for all debt management services provided by the 5 licensee to a debtor shall not exceed thirty percent of the 6 total amount of debt enrolled by the debtor at the time of 7 enrollment in the debt management program. 8 b. A licensee may assess and collect the fee for debt 9 management services on a per-debt basis as a debt is 10 renegotiated, settled, reduced, or otherwise altered in a 11 manner consistent with this section and applicable federal law. 12 Sec. 7. Section 533A.9, Code 2026, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 6. If a debt settlement agreement between a 15 debtor and a creditor to settle a debt provides for the debtor 16 to make more than one payment to the creditor, the licensee 17 shall request or receive payment from the debtor of any fee for 18 debt management services provided with respect to that debt 19 incrementally over not less than one quarter of the length of 20 the debtor’s period of repayment to such creditor. 21 Sec. 8. Section 538A.2, subsection 2, Code 2026, is amended 22 by adding the following new paragraph: 23 NEW PARAGRAPH . i. A person licensed to engage in the 24 business of debt management under section 533A.2, when acting 25 within the course and scope of that license. > 26 ______________________________ JEFF REICHMAN -3- SF 2298.4038 (1) 91 (amending this SF 2298 to CONFORM to HF 2326) nls/ko 3/ 3