AN ACT to amend and reenact §5-16-7 of the code of West Virginia, 1931, as amended; to amend said code by adding thereto a new section, designated §5-16B-6e; to amend said code by adding thereto a new section, designated §9-5-21; to amend said code by adding thereto a new section, designated §33-16-3v; to amend said code by adding thereto a new section, designated §33-24-7k; and to amend said code by adding thereto a new section, designated §33-25A-8j, all relating to requiring insurance coverage for autism spectrum disorders; providing for an effective date for coverage; providing definitions; setting out age limitations; providing for coverage amounts and time frames; setting forth who may provide appropriate treatment; providing reporting requirements to determine if treatment remains effective; allowing for cost saving measures in specified instances; providing the provisions are only required to the extent required by federal law; and providing reporting requirements by state agencies.
(6) Coverage for treatment of serious mental illness.
(A) The coverage does not include custodial care, residential care or schooling. For purposes of this section, "serious mental illness" means an illness included in the American Psychiatric Association's diagnostic and statistical manual of mental disorders, as periodically revised, under the diagnostic categories or subclassifications of: (i) Schizophrenia and other psychotic disorders; (ii) bipolar disorders; (iii) depressive disorders; (iv) substance-related disorders with the exception of caffeine-related disorders and nicotine-related disorders; (v) anxiety disorders; and (vi) anorexia and bulimia. With regard to any covered individual who has not yet attained the age of nineteen years, "serious mental illness" also includes attention deficit hyperactivity disorder, separation anxiety disorder and conduct disorder.
(B) Notwithstanding any other provision in this section to the contrary, in the event that the agency can demonstrate that its total costs for the treatment of mental illness for any plan exceeded two percent of the total costs for such plan in any experience period, then the agency may apply whatever additional cost-containment measures may be necessary, including, but not limited to, limitations on inpatient and outpatient benefits, to maintain costs below two percent of the total costs for the plan for the next experience period.
(C) The agency shall not discriminate between medical-surgical benefits and mental health benefits in the administration of its plan. With regard to both medical-surgical and mental health benefits, it may make determinations of medical necessity and appropriateness, and it may use recognized health care quality and cost management tools, including, but not limited to, limitations on inpatient and outpatient benefits, utilization review, implementation of cost-containment measures, preauthorization for certain treatments, setting coverage levels, setting maximum number of visits within certain time periods, using capitated benefit arrangements, using fee-for-service arrangements, using third-party administrators, using provider networks and using patient cost sharing in the form of copayments, deductibles and coinsurance.
(B) A child who is twelve years of age or younger with documented phobias, or with documented mental illness, and with dental needs of such magnitude that treatment should not be delayed or deferred and for whom lack of treatment can be expected to result in infection, loss of teeth or other increased oral or dental morbidity and for whom a successful result cannot be expected from dental care provided under local anesthesia because of such condition and for whom a superior result can be expected from dental care provided under general anesthesia.
(3) There is an expectation that the anticipated improvement is attainable in a reasonable and generally predictable period of time.
(B) Such coverage shall include, but not be limited to, applied behavioral analysis provided or supervised by a certified behavior analyst: Provided, That the annual maximum benefit for treatment required by this subdivision shall be in amount not to exceed $30,000 per individual, for three consecutive years from the date treatment commences. At the conclusion of the third year, required coverage shall be in an amount not to exceed $2000 per month, until the individual reaches eighteen years of age, as long as the treatment is medically necessary and in accordance with a treatment plan developed by a certified behavior analyst pursuant to a comprehensive evaluation or reevaluation of the individual. This section shall not be construed as limiting, replacing or affecting any obligation to provide services to an individual under the Individuals with Disabilities Education Act, 20 U.S.C. 1400 et seq., as amended from time to time or other publicly funded programs. Nothing in this subdivision shall be construed as requiring reimbursement for services provided by public school personnel.
(C) On or before January 1 each year, the agency shall file an annual report with the joint committee on government and finance describing its implementation of the coverage provided pursuant to this subdivision. The report shall include, but shall not be limited to, the number of individuals in the plan utilizing the coverage required by this subdivision, the fiscal and administrative impact of the implementation, and any recommendations the agency may have as to changes in law or policy related to the coverage provided under this subdivision. In addition, the agency shall provide such other information as may be required by the joint committee on government and finance as it may from time to time request.
(i) “Applied Behavior Analysis” means the design, implementation, and evaluation of environmental modifications using behavioral stimuli and consequences, to produce socially significant improvement in human behavior, including the use of direct observation, measurement, and functional analysis of the relationship between environment and behavior.
(ii) “Autism spectrum disorder” means any pervasive developmental disorder, including autistic disorder, Asperger’s Syndrome, Rett syndrome, childhood disintegrative disorder, or Pervasive Development Disorder as defined in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders of the American Psychiatric Association.
(iii) “Certified behavior analyst” means an individual who is certified by the Behavior Analyst Certification Board or certified by a similar nationally recognized organization.
(iv) “Objective evidence” means standardized patient assessment instruments, outcome measurements tools or measurable assessments of functional outcome. Use of objective measures at the beginning of treatment, during and/or after treatment is recommended to quantify progress and support justifications for continued treatment. Such tools are not required, but their use will enhance the justification for continued treatment.
(E) To the extent that the application of this subdivision for autism spectrum disorder causes an increase of at least one percent of actual total costs of coverage for the plan year the agency may apply additional cost containment measures.
(F) To the extent that the provisions of this subdivision requires benefits that exceed the essential health benefits specified under section 1302(b) of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, as amended, the specific benefits that exceed the specified essential health benefits shall not be required of insurance plans offered by the public employees insurance agency.
(b) The agency shall make available to each eligible employee, at full cost to the employee, the opportunity to purchase optional group life and accidental death insurance as established under the rules of the agency. In addition, each employee is entitled to have his or her spouse and dependents, as defined by the rules of the agency, included in the optional coverage, at full cost to the employee, for each eligible dependent; and with full authorization to the agency to make the optional coverage available and provide an opportunity of purchase to each employee.
(4) Any other categorization which would ensure the stability of the overall program.
(d) The agency shall maintain the medical and prescription drug coverage for Medicare-eligible retirees by providing coverage through one of the existing plans or by enrolling the Medicare-eligible retired employees into a Medicare-specific plan, including, but not limited to, the Medicare/Advantage Prescription Drug Plan. In the event that a Medicare-specific plan would no longer be available or advantageous for the agency and the retirees, the retirees shall remain eligible for coverage through the agency.
ARTICLE 16B. WEST VIRGINIA CHILDREN’S HEALTH INSURANCE PROGRAM.
§5-16B-6e. Coverage for treatment of autism spectrum disorders.
(b) Such coverage shall include, but not be limited to, applied behavioral analysis provided or supervised by a certified behavior analyst: Provided, That the annual maximum benefit for treatment required by this section shall be in amount not to exceed $30,000 per individual, for three consecutive years from the date treatment commences. At the conclusion of the third year, required coverage shall be in an amount not to exceed $2000 per month, until the individual reaches eighteen years of age, as long as the treatment is medically necessary and in accordance with a treatment plan developed by a certified behavior analyst pursuant to a comprehensive evaluation or reevaluation of the individual. This section shall not be construed as limiting, replacing or affecting any obligation to provide services to an individual under the Individuals with Disabilities Education Act, 20 U.S.C. 1400 et seq., as amended from time to time or other publicly funded programs. Nothing in this section shall be construed as requiring reimbursement for services provided by public school personnel.
(c) On or before January 1 each year, the agency shall file an annual report with the joint committee on government and finance describing its implementation of the coverage provided pursuant to this section. The report shall include, but shall not be limited to the number of individuals in the plan utilizing the coverage required by this section, the fiscal and administrative impact of the implementation, and any recommendations the agency may have as to changes in law or policy related to the coverage provided under this section. In addition, the agency shall provide such other information as may be requested by the joint committee on government and finance as it may from time to time request.
(1) “Applied Behavior Analysis” means the design, implementation, and evaluation of environmental modifications using behavioral stimuli and consequences, to produce socially significant improvement in human behavior, including the use of direct observation, measurement, and functional analysis of the relationship between environment and behavior.
(2) “Autism spectrum disorder” means any pervasive developmental disorder, including autistic disorder, Asperger’s Syndrome, Rett syndrome, childhood disintegrative disorder, or Pervasive Development Disorder as defined in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders of the American Psychiatric Association.
(3) “Certified behavior analyst” means an individual who is certified by the Behavior Analyst Certification Board or certified by a similar nationally recognized organization.
(4) “Objective evidence” means standardized patient assessment instruments, outcome measurements tools or measurable assessments of functional outcome. Use of objective measures at the beginning of treatment, during and/or after treatment is recommended to quantify progress and support justifications for continued treatment. Such tools are not required, but their use will enhance the justification for continued treatment.
(e) To the extent that the application of this section for autism spectrum disorder causes an increase of at least one percent of actual total costs of coverage for the plan year the agency may apply additional cost containment measures.
(f) To the extent that the provisions of this section requires benefits that exceed the essential health benefits specified under section 1302(b) of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, as amended, the specific benefits that exceed the specified essential health benefits shall not be required of the West Virginia Children’s Health Insurance Program.
§9-5-21. Annual report to joint committee on government and finance regarding treatment for autism spectrum disorders provided by the Bureau for Medical Services.
(a) On or before January 1 each year, the agency shall file an annual report with the joint committee on government and finance describing the number of enrolled individuals with autism spectrum disorder, including the fiscal and administrative impact of treatment of autism spectrum disorders, and any recommendations the agency may have as to changes in law or policy related to such disorder. In addition, the agency shall provide such other information as may be requested by the joint committee on government and finance as it may from time to time request.
(b) For purposes of this section, the term “autism spectrum disorder” means any pervasive developmental disorder, including autistic disorder, Asperger’s Syndrome, Rett syndrome, childhood disintegrative disorder, or Pervasive Development Disorder as defined in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders of the American Psychiatric Association.
§33-16-3v. Required coverage for treatment of autism spectrum disorders.
(b) Such coverage shall include, but not be limited to, applied behavioral analysis provided or supervised by a certified behavioral analyst: Provided, That the annual maximum benefit for treatment required by this subdivision shall be in amount not to exceed $30,000 per individual, for three consecutive years from the date treatment commences. At the conclusion of the third year, required coverage shall be in an amount not to exceed $2000 per month, until the individual reaches eighteen years of age, as long as the treatment is medically necessary and in accordance with a treatment plan developed by a certified behavioral analyst pursuant to a comprehensive evaluation or reevaluation of the individual. This section shall not be construed as limiting, replacing or affecting any obligation to provide services to an individual under the Individuals with Disabilities Education Act, 20 U.S.C. 1400 et seq., as amended from time to time or other publicly funded programs. Nothing in this section shall be construed as requiring reimbursement for services provided by public school personnel.
(d) The provisions of this section do not apply to small employers. For purposes of this section a small employer shall be defined as any person, firm, corporation, partnership or association actively engaged in business in the state of West Virginia who, during the preceding calendar year, employed an average of no more than twenty-five eligible employees.
(e) To the extent that the application of this section for autism spectrum disorder causes an increase of at least one percent of actual total costs of coverage for the plan year the insurer may apply additional cost containment measures.
(f) To the extent that the provisions of this section requires benefits that exceed the essential health benefits specified under section 1302(b) of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, as amended, the specific benefits that exceed the specified essential health benefits shall not be required of a health benefit plan when the plan is offered by a health care insurer in this state..
ARTICLE 24. HOSPITAL MEDICAL AND DENTAL CORPORATIONS.
§33-24-7k. Coverage for diagnosis and treatment of autism spectrum disorders.
(b) Such coverage shall include, but not be limited to, applied behavioral analysis provided or supervised by a certified behavioral analyst: Provided, That the annual maximum benefit for treatment required by this section shall be in amount not to exceed $30,000 per individual, for three consecutive years from the date treatment commences. At the conclusion of the third year, required coverage shall be in an amount not to exceed $2000 per month, until the individual reaches eighteen years of age, as long as the treatment is medically necessary and in accordance with a treatment plan developed by a certified behavior analyst pursuant to a comprehensive evaluation or reevaluation of the individual. This section shall not be construed as limiting, replacing or affecting any obligation to provide services to an individual under the Individuals with Disabilities Education Act, 20 U.S.C. 1400 et seq., as amended from time to time or other publicly funded programs. Nothing in this section shall be construed as requiring reimbursement for services provided by public school personnel.
(e) To the extent that the application of this section for autism spectrum disorder causes an increase of at least one percent of actual total costs of coverage for the plan year the corporation may apply additional cost containment measures.
a health benefit plan when the plan is offered by a corporation in this state.
§33-25A-8j. Coverage for diagnosis and treatment of autism spectrum disorders.
(b) Such coverage shall include, but not be limited to, applied behavioral analysis provided or supervised by a certified behavioral analyst: Provided, That the annual maximum benefit for treatment required by this subdivision shall be in amount not to exceed $30,000 per individual, for three consecutive years from the date treatment commences. At the conclusion of the third year, required coverage shall be in an amount not to exceed $2000 per month, until the individual reaches eighteen years of age, as long as the treatment is medically necessary and in accordance with a treatment plan developed by a certified behavior analyst pursuant to a comprehensive evaluation or reevaluation of the individual. This section shall not be construed as limiting, replacing or affecting any obligation to provide services to an individual under the Individuals with Disabilities Education Act, 20 U.S.C. 1400 et seq., as amended from time to time or other publicly funded programs. Nothing in this section shall be construed as requiring reimbursement for services provided by public school personnel.
(e) To the extent that the application of this section for autism spectrum disorder causes an increase of at least one percent of actual total costs of coverage for the plan year the health maintenance organization may apply additional cost containment measures.
(f) To the extent that the provisions of this section requires benefits that exceed the essential health benefits specified under section 1302(b) of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, as amended, the specific benefits that exceed the specified essential health benefits shall not be required of a health benefit plan when the plan is offered by a health maintenance organization in this state.


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The Ultimate Human Life Amendment was the first ever state Personhood Amendment introduced in U.S. History. It was introduced in Mississippi by Pro-Life Dave in 2005. This exact amendment is no longer promoted although some of its wording and concepts live on in other personhood amendments. This web page was written many years ago and strategies and concepts change and improved over time so this page may not exactly reflect our current views.
Upon adoption of a precisely worded State Human Life Amendment, like the Ultimate Human Life Amendment, into any state’s constitution, and upon challenge in the federal courts, the federal courts will be legally maneuvered into adopting that state’s definition of person. When this is done Roe v. Wade will easily be overturned in the courts and a new ‘federal’ definition of persons that includes unborn children will be the ‘law of the land’ — making the killing of unborn children illegal throughout all states and U.S. territories.
If you are a citizen of a state then you are automatically a citizen of the United States and automatically given protection under the U.S. Constitution. There is a similar linkage on personhood. If a state declares constitutionally that an unborn child is a person then automatically the U.S. Constitution provides protection for that person. Federal judges will be legally maneuvered into recognizing unborn children and their rights under the U.S Constitution.
More on this in the drafting notes and commentary on the UHLA. Read the actual wording of Mississippi’s version of the UHLA, as proposed in their People’s Initiative 24.
BUT won’t overturning Roe v. Wade just send it back to the states?
Most people have heard the idea that once Roe v. Wade is overturned the issue of Abortion will go back to ‘pre-Roe’ times, the way it was before Roe in 1973, meaning it would go back to each individual state to decide. This is a common belief and a dangerous misconception. Those who repeat this idea cannot themselves give any underlying facts to support it.
To understand this better you must first understand on what basis CAN Roe be overturned. Some think that a state can just ‘ban’ abortion and not have it overturned in a Federal Court. This is not true.
Since Roe v. Wade the issue of Abortion has been “Federalized” it has become a federal or national issue and can never go back to the states. This is because the U.S. Supreme Court declared that a woman, under the U.S. Constitution, had a ‘fundamental right’ to an abortion (viewed as a medical procedure in the courts) — along the line of thinking that everyone has the right to make their own medical decisions.
The only higher right than the woman’s fundamental right to make her own medical decisions is the right of an unborn child, a person, to life. The ONLY WAY Roe v. Wade will be overturned by the federal courts is when they recognize an unborn child as a person, and thus weigh between the rights of the child and the mother. In doing so they will adopt a ‘federal definition of person’ to include an unborn child making that definition ‘law-of-the-land’ and making the murdering of unborn children a crime throughout the all states and U.S. territories.
Any state law or state constitutional amendment, that attempts to ‘ban abortion’ outright will always be overturned in the federal courts.
Does a person have the right to make their own medical decisions?
The common sense answer is obviously YES. This is a fundamental right.
At the present, all courts consider abortion a medical decision, so any legislation that is worded to heavily restrict or outlaw abortion will fail because the courts view it as ‘taking away’ from a woman’s rights, a legal ‘negative’.
Most of the federal courts cases you’ve heard about dealing with abortion have been like this, when a state tries to ‘regulate’ or to ‘limit’ the circumstances and instances in which an abortion can take place. In these cases the federal courts are forced into a position of weighing between the ‘rights of a mother’ and the ‘rights of the state government’.
The only way to end abortion is through a state constitutional amendment that legally recognizes unborn children as persons, a legal ‘positive’. This grants or recognizes the human rights of unborn children and would automatically legally maneuver the Federal and state courts into doing the same.
Should we protect unborn children from being killed since they are human beings? The common sense answer is obviously YES. A baby’s Right to Life outweighs the mother’s fundamental right to make her own medical decisions, except when saving her own life.
The correct strategy is to maneuver the federal courts into weighing between the right of the unborn child and the right of the mother. When you do that the federal courts will eliminate all abortions, except to save the life of the mother.
Since the beginning of the modern Pro-Life Movement in the early 1970s, the top goal of every Pro-Life Organization has been to get Congress to pass a Human Life Amendment to the U.S. Constitution knowing the effect would easily overturn Roe v. Wade and abortion in America. In over 30 years Congress has never allowed it to come to a vote, so trying to get anything pass through Congress has been impossible.
Recognizes unborn children as ‘persons’ legally as a state constitutional right (state laws are not good enough).
State government must enforce and prosecute the killing of a person (born or unborn) under the same murder laws equally and may not use any ‘special’ abortion laws.
The State government must not be allowed to have ANY exceptions to abortion, other than to save the life of the mother.
The wording of a State Human Life Amendment (aka Personhood Amendment) is extremely crucial. It must contain these following elements.
The Supreme Court LOOKS AT BOTH a state’s laws (including constitution) and the state’s actions, what they do. To convince the Supreme Court any state is serious about a declaration that an unborn child is a person, the state must enforce the amendment. In Mississippi Initiative 24, the Ultimate Human Life Amendment, we place this mandate upon the state to do just that: “…the government of the state of Mississippi shall recognize and defend the God-given Right to Life of all persons equally…” So now the state is forced to halt all prosecution for murder (not likely) or will have to start prosecuting for murder of the unborn.
Person must be defined to include unborn children and must include provisions for for non-sexual, artificial laboratory creation of unborn children. In addition the definition of personhood must be connected to the due process clause already in the state constitution which reads: “Section 14. No person shall be deprived of life, liberty, or property except by due process of law.” Mississippi Initiative 24 states: “in accordance with Section 14” This is in most state constitutions in one form or another but an unborn child would have to be convicted of a capital crime and tried before they could be sentenced to death — again not likely.
Click Here to read the full commentary and notes on the drafting of the Ultimate Human Life Amendment.

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In addition to being regulated by the Fair Debt Collection Practices Act (FDCPA), Arizona collection agencies are also regulated by Arizona debt collection laws. Discover: Arizona collection requirements, bad check laws (NSF), statutes of limitations for both debts and judgments, garnishments plus Arizona collection agency license and bonding information.
Written Contract: 6 in AZ. – 4 outside AZ.
Twice the amount of check, costs of suit, reasonable attorney fees.
(a) Obligations for the payment of money to another, in the form of conditional sales agreements, notwithstanding the personal property sold thereunder, for which payment is claimed or may be or is repossessed in lieu of payment.
(i) The final payment has not been tendered to the seller or assignor.
(ii) Title has not yet passed.
(iii) The purchaser or assignee has a right of recourse against the seller or assignor.
(a) All persons engaged directly or indirectly in soliciting claims for collection or in collection of claims owed, due or asserted to be owed or due.
(b) Any person who, in the process of collecting debts occurring in the operation of his own business, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts.
3. “Department” means the department of financial institutions.
4. “Financial institution” means a person who does business under any other law of this state or law of another state or the United States relating to banks, trust companies, savings and loan associations, credit unions and savings banks.
5. “Person” means an individual, firm, partnership, association or corporation.
6. “Superintendent” means the superintendent of financial institutions.
2. A person regularly employed on a regular wage or salary in the capacity of credit person or a similar capacity, except as an independent contractor.
3. Banks, including trust departments of a bank, fiduciaries and financing and lending institutions.
5. Title insurers, title insurance agents and abstract companies while doing an escrow business.
6. Licensed real estate brokers.
7. Employees of licensees under this chapter.
8. Substation payment offices employed by or serving as independent contractors or public utilities.
12. A participant in a finance transaction in which a lender receives the right to collect commercial claims due the borrower by assignment, by purchase or by the taking of a security interest in those commercial claims.
(a) Does not accept accounts that are contractually past due at the time of receipt.
(b) Does not initiate any contact with individual debtors except for the initial written notice of the amount owing and one written follow-up notice.
(c) Does not give or send to any debtor a written communication that requests or demands payment.
(d) Does not receive or have access to monies paid by debtors or their insurers.
(e) All communications with the debtors are done in the name of the creditor.
14. A person collecting claims owed, due or asserted to be owed or due to a financial institution the deposits of which are insured by an agency of the federal government, or any affiliate of the financial institution, if the person is related by common ownership or affiliated by corporate control with the financial institution and collects the claims only for the financial institution or any affiliate of the financial institution.
15. A person who is licensed pursuant to title 20, chapter 2, article 3, 3.1, 3.2, 3.3 or 3.4 [FN4] and who is authorized to collect premiums under an insurance policy financed by a premium finance agreement as defined in § 6-1401.
1. A transaction shall not be deemed a finance transaction if the primary purpose is to facilitate the collection of claims.
2. “Commercial claim” does not include an account arising from the purchase of a service or product intended for personal, family or household use.
1. The name, address, telephone and telefacsimile numbers of the creditor.
2. The amount due and an itemization of that amount.
3. The date payment is due.
4. The address or place where payment is to be made.
5. If the payment is past due, that payment is past due.
D. For a person who is exempt under subsection A, paragraph 14 of this section, the superintendent shall investigate complaints of residents of this state relating to any violations of § 32-1051, paragraphs 2 through 7 or § 32-1055, subsection C or subsection D, paragraph 1, 2, 3 or 5 and may examine the books, accounts, claims and files of a person that relate to the complaint. A person who is exempt and who violates the provisions of § 32-1051, paragraphs 2 through 7 or § 32-1055, subsection C or subsection D, paragraph 1, 2, 3 or 5 is subject to the provisions of §§ 6-132, 6-136 and 6-137.
A. A person desiring to conduct a collection agency shall make an original application to the department upon forms prescribed by the superintendent setting forth verified information to assist the superintendent in determining the applicant’s ability to meet the requirements of this chapter.
1. A financial statement in the form provided in § 32-1022, showing the applicant’s assets and liabilities and truly reflecting the applicant’s net worth in cash or its equivalent.
C. The superintendent may require from all applicants additional information that the superintendent deems necessary in determining whether the applicant is entitled to the license sought.
1. The collection of debts from debtors who reside in this state, regardless of where the licensee is located.
2. The collection of debts made from an office in this state, regardless of where the debtor resides.
3. The collection of debts made on behalf of creditors who reside in this state, regardless of where the debtor and the collection agent reside.
A. The financial statement required by § 32-1021 shall be sworn to by the applicant, if he is an individual, or by a partner, director, manager or treasurer in its behalf if the applicant is a partnership, corporation or incorporated association. The information in the financial statement shall be confidential and is not a public record.
B. The bond shall run to the people of the state and shall be executed and acknowledged by the applicant as principal and by a corporation, licensed by this state to transact fidelity and surety insurance business, as surety. The bond shall be continuous in form and shall remain in full force and effect at all times while holding a license. The bond shall be conditioned that the applicant, within thirty days from the last day of the month in which a collection is made, shall make an account of and pay to the client the proceeds collected for him by the applicant, less charges for collection in accordance with the agreement between the applicant and client, but when the amount due the client is less than five dollars, payment may be deferred for an additional thirty days.
C. Any surety company intending to withdraw as surety of any licensee shall give sixty days’ notice of such intention to the superintendent, which notice shall be by registered mail and shall also give sixty days’ notice by registered mail to the licensee addressed to his last known address. When a surety shall for any cause cancel the bond of any licensee, the superintendent shall immediately notify such licensee by registered mail addressed to his last known address as shown by the files of the department. The license of any licensee shall be void unless, prior to the termination, a new bond has been filed with the department. A licensee changing his surety shall file a new bond with the department with a surety on the new bond meeting the qualifications of this section.
2. Certificates of deposit, investment certificates or share accounts which are payable or assigned to the state treasurer, issued by a savings and loan association or savings bank doing business in this state and fully insured by the federal deposit insurance corporation or any successor institution.
E. The superintendent shall deposit the cash or alternative to cash received under this section with the state treasurer. The state treasurer shall hold the cash or alternatives to cash in the name of this state to guarantee the faithful performance of all legal obligations of the person required to post bond pursuant to § 32-1021, subsection B. The person is entitled to receive any accrued interest earned from the alternatives to cash. The state treasurer may impose a fee to reimburse the state treasurer for administrative expenses. The fee shall not exceed ten dollars for each cash or alternative to cash deposit and shall be paid by the applicant for a license or renewal of a license. The state treasurer may prescribe rules relating to the terms and conditions of each type of security provided by this section.
1. The date of substitution of a bond for a cash alternative.
G. A suit may not be commenced on a bond or cash or alternatives to cash later than three years following the act or acts on which the suit is based, except that for claims of fraud or mistake, the period of limitations shall be measured as prescribed in § 12-543, paragraph 3.
1. Be a citizen of the United States and be of good moral character.
2. Not have been convicted of a crime involving moral turpitude.
3. Not have defaulted on payment of money collected or received for another.
4. Not have been a former licensee under the provisions of this chapter whose license was suspended or revoked and not subsequently reinstated.
B. If the applicant for a license is a firm, partnership, association or corporation, the qualifications required by subsection A of this section shall be required of the individual in active management of the firm, partnership, association or corporation.
C. When a licensed agency ceases to be under the active management of a qualified person, as defined in rules, notice of this fact shall be given to the superintendent within ten days. The licensee shall have ninety days after the termination of the services of the acting manager to replace the qualified person and notify the superintendent of the qualified replacement. If the agency is not placed under the active management of a new qualified person and notice thereof given to the superintendent within the ninety-day period, the license of the agency expires unless a provisional license has been granted under the provisions of § 32-1027.
1. Requirements for securing the license were, at the time of issuance, substantially the same or equal to requirements imposed by this chapter.
2. The state concerned extends reciprocity under similar circumstances to licensed collection agents of this state.
3. The application is accompanied by the fees and financial and bonding requirements set forth in this chapter.
A. A person desiring to secure renewal of a collection agency license shall file a financial statement, make a renewal application to the department and pay the fees prescribed in § 6-126 not later than January 1 of each year upon forms prescribed by the superintendent setting forth verified information to assist the superintendent in determining whether or not the applicant is in default of or in violation of the terms of this chapter and whether the applicant is still meeting the requirements of this chapter. If the renewal applicant is unable to make a financial statement at the time of filing the application the applicant may make a written request for an extension of time to file such financial report, and if the extension is granted the applicant shall file a financial statement within thirty days after the issuance of a renewal license.
B. A renewal license shall be issued February 1 each year upon application as provided in subsection A of this section.
A. On receipt of an original application accompanied by the fees prescribed in § 6-126 and the financial statement and bond required by this chapter, the superintendent shall investigate the qualifications of the applicant and, if he meets the qualifications of this chapter, shall approve the application. If the application is approved, the license shall be promptly issued to the applicant.
B. A license issued under the provisions of this chapter shall not be transferable or assignable and control of a license may not be acquired through a stock purchase or other device without the prior written consent of the superintendent. Consent shall not be given if the superintendent finds that the acquiring person does not meet the qualifications of this chapter. For purposes of this subsection, “control” means the power to vote more than twenty per cent of the outstanding voting shares of a licensed corporation, partnership, association or trust.
1. A provisional license issued to a personal representative or his appointee shall expire one year from the date of issuance and shall not be subject to renewal. Authority of the provisional licensee shall be limited to those activities deemed necessary to wind up the business of the former licensee.
2. Other provisional licenses shall expire three months from the date of issuance unless the provisional licensee within such period can qualify for a full license.
Every original or renewal application shall be accompanied by the fees prescribed in § 6-126.
1. Meet the financial responsibility and bonding requirements of this chapter.
2. Not have been a former licensee under the provisions of this chapter whose license was suspended or revoked and not subsequently reinstated.
3. Deal openly, fairly and honestly in the conduct of the collection agency business.
4. Except for attorneys licensed to practice law, not attempt to collect any collection fee, attorney’s fee, court cost or expenses unless the fees, charges or expenses are justly due from and legally chargeable against the debtor, or have been judicially determined, nor shall any licensee engage in any unfair or misleading practices or resort to any oppressive, vindictive or illegal means or methods of collection.
(a) Simulates any legal process.
(b) Is ambiguous as to or misrepresents the character, extent or amount of the obligation of the debtor.
(c) Represents or infers that the existing obligation of the debtor may be increased by the addition of attorneys’ fees, investigation fees, service fees, or any other fees or charges when in fact these fees or charges may not legally be added to the existing obligation of the debtor.
(d) Threatens to sell the obligation of the debtor to any person, firm or group.
(e) Uses or sets forth the name of or purports to be from any attorney at law or legal firm.
6. Except for attorneys licensed to practice law, not use any letterhead, or literature bearing any heading, slogan or statement representing or inferring that the licensee practices law, renders legal services or advice, or maintains a legal department.
7. Not by the use of any letterhead, advertisement, agreement, form, circular or other printed matter, or otherwise, convey the impression that the individual, firm, partnership, association or corporation is vouched for or is an instrumentality of the state, a political subdivision of the state, or the department.
1. Is insolvent as defined in § 47-1201.
2. Has shown that the applicant or licensee is not a person of honesty, truthfulness or good character.
3. Has violated any applicable law, rule or order.
4. Has been convicted in any state of any felony or other crime involving breach of trust or dishonesty.
5. Has had an order entered against the applicant or licensee by an administrative agency of this state, the federal government or any other state of the United States and that order is based on conduct involving fraud, deceit or misrepresentation by the licensee or applicant.
6. Has made a material misstatement or omission on the application for a license or on any document required to be filed with the superintendent.
B. It is sufficient cause for the denial, suspension or revocation of a license if an officer, director, partner, employee or controlling person of the collection agency has acted or failed to act in a manner that would be cause for denial, suspension or revocation of a license. For purposes of this subsection, “controlling person” means a person who owns more than a twenty per cent equity interest in the collection agency and has the power to actively participate in the conduct of the collection agency.
A. It is unlawful for a person to conduct a collection agency in this state without having first applied for and obtained a license under this chapter.
B. A collection agency licensed under this chapter shall not directly or indirectly aid, abet or receive compensation from an unlicensed person. Nothing in this chapter shall prevent a licensed agency from accepting, as forwardee, claims for collection from a collection agency or attorney whose place of business is outside this state.
C. A licensee shall not advertise a claim for sale or threaten to so advertise a claim as a means of endeavoring to enforce payment, nor shall a licensee agree to do so for the purpose of soliciting claims. This subsection shall not be deemed to affect a licensee acting as assignee for the benefit of a creditor or acting under a court order.
1. Fail to render an account of and pay to the client for whom collection has been made the proceeds collected, less collection charges as agreed to by the person and the client, within thirty days from the last day of the month in which the proceeds were collected. If the amount due the client is less than five dollars, payment may be deferred for an additional thirty days.
2. Fail to deposit with a local depository all monies collected by the person and due to the person’s clients, and to fail to keep these monies deposited until these monies or equivalent amounts are remitted to the person’s clients. Notwithstanding this paragraph, if a person conducting a collection agency does not maintain an office in this state, the person may deposit and keep these monies in a depository in a state where the person maintains the person’s principal office.
3. Fail to keep a record of monies collected and the remittance of these monies.
4. Fail to notify the department within ten days of any change of name under which the person does business as a collection agency or address at which the person conducts business.
5. Aid or abet, directly or indirectly, any person, persons or organizations in evading or violating any of the provisions of this chapter.
A. A person operating a collection agency without a license shall be guilty of a class 1 misdemeanor.
B. A licensee violating the provisions of § 32-1055 or the rules and regulations adopted pursuant to this chapter shall be subject to revocation of license and shall be guilty of a class 1 misdemeanor.
A. The prosecuting officer of a county or city shall prosecute all violations of this chapter occurring within his jurisdiction.
B. An officer or agent of a corporation or association participating in a violation of this chapter by such corporation or association shall be subject to the penalties prescribed by § 32-1056 for an individual.
Knowing and abiding to the proper Arizona debt collection laws is important for both creditors and collection agencies alike. There are debtor’s rights attorneys who are just waiting for creditors or collection agencies to slip up. If you mistakenly violate the Arizona debt collection laws, you could create a liability for your business and even open yourself up to a expensive lawsuit.
Please note: Arizona debt collection laws can change over time, and you need to consult with an attorney before you use this information.