Title 040 | Chapter 012 | Regulation 400REG
PROPOSED
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PREVIOUS VERSION
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OFFICE OF ATTORNEY GENERAL
Kentucky Office of Regulatory Relief
(Amendment)
40 KAR 12:400.Debt adjusters.
Section 1.
(1)
(2)
(3)
(4)
(5)
Section 2.
Debt Adjusters Registration Application.(1)
A debt adjuster shall not adjust debts of Commonwealth of Kentucky residents unless the Attorney General approves the debt adjuster's online registration application in accordance with this administrative regulation. An applicant shall submit an online registration application using the "Debt Adjuster Registration Application portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(2)
When completing an online application, an applicant shall submit:(a)
Payment of the $250.00 registration fee;(b)
The applicant's certificate of existence, authorization certificate from the Kentucky Secretary of State's office, or other evidence of the applicant's authority to transact business in Kentucky;(c)
Copies of all the applicant's debt adjusting contracts with debtors;(d)
Copies of the applicant's insurance policies evidencing required insurance coverages; and(e)
A completed Debt Adjuster Bond, form DA-1, a completed Debt Adjuster Irrevocable Letter of Credit, form DA-2, a completed surety bond complying with KRS 380.040; or a completed letter of credit complying with KRS 380.040.(3)
(a)
An applicant shall complete its application by submitting additional information or documents within thirty (30) days of a request by the Attorney General.(b)
The Attorney General may deny any application if an applicant fails to timely complete the application by not paying the application fee or providing requested information or documents.(1)
(a)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
(b)
(c)
Section 2.
Debt Adjuster Renewal Applications.(1)
An approved debt adjuster registration or renewal shall be valid for one (1) year from the written confirmation date of registration or renewal approval provided by the Attorney General.(2)
Thirty (30) days prior to the expiration of a current registration, a registered debt adjuster may renew its registration. Registration renewal shall be accomplished by submitting an online renewal application using the "Debt Adjuster Renewal Application portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(3)
When submitting an online renewal application, each registrant shall submit:(a)
Payment of the $250.00 registration renewal fee;(b)
A completed annual audit in accordance with Section 3 of this administrative regulation; and(c)
A completed Debt Adjuster Bond, form DA-1, a completed Debt Adjuster Irrevocable Letter of Credit, form DA-2, a completed surety bond complying with KRS 380.040; or a completed letter of credit complying with KRS 380.040, when a prior submitted surety bond or letter of credit is no longer current or the surety amount is insufficient.(4)
(a)
A registrant shall complete its renewal application by submitting additional information or documents for its application within thirty (30) days of a request by the Attorney General.(b)
The Attorney General may deny any renewal application if a registrant fails to timely complete the application by not paying the renewal application fee or not submitting requested information or documents.(5)
Any registration renewal by the Attorney General shall not be construed to waive or condone any violation of law that occurred prior to any registration renewal and shall not prevent subsequent proceedings against a registrant.(2)
(3)
(a)
(b)
(c)
1.
2.
(4)
(a)
(b)
(c)
Section 3.
Section 4.
Annual Audit.(1)
An independent, third party certified public accountant shall conduct an annual audit of a registered debt adjuster's business.(2)(1)
The annual audit shall not be older than (12) twelve months prior to the filing of a renewal application in accordance with Section 2 of this administrative regulation and(a)
The registrant's financial statements and records;(b)
The trust accounts required by KRS 380.040(1)(b);(c)
The registrant's compliance with the requirements of KRS Chapter 380; and(d)
The registrant's compliance with the requirements of this administrative regulation.(2)
(3)
The audit results(a)
The auditor is an independent, third-party certified public accountant;(b)
The states in which the auditor is licensed as a certified public accountant; and(c)
The identification number for each license.(4)
A registrant shall submit the audit results, the auditor's opinion, and the certification by each auditor to the Attorney General when it renews its registration in accordance with Section 2 of this administrative regulation.Section 4.Section 5.
Trust Accounts. The trust accounts required by KRS 380.040(1)(b) shall be maintained in a federally insured financial institution.Section 5.Section 6.
Written notification of material changes. A registered debt adjuster shall notify the Attorney General, in writing, within fourteen (14) days of any material change to information provided in the registrant's original application, any renewal application, application attachments, or written notices.(1)
(2)
(3)
Section 6.
Record Requests. A debt adjuster shall make requested business records and documents and information related to an investigation or inquiry readily available to the Attorney General for inspection and copying upon request.Section 7.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
(b)
"Debt Adjuster Renewal application portal", Feb. 2026(c)
(d)
(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Office of the Attorney General, Capital Complex East,STEPHEN B. HUMPHRESS, Executive Director
RUSSELL COLEMAN, Attorney General
APPROVED BY AGENCY: February 20, 2026
FILED WITH LRC: February 24, 2026 at 1:04 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this proposed administrative regulation shall be held on May 21, 2026 at 10:00 a.m. Eastern Time at the Office of Administrative Hearings, Conference Room B, 105 Sea Hero Road, Suite 2, Conference Room B, Frankfort, Kentucky 40601. Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify the Attorney General in writing at least five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on May 31, 2026. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Stephen B. Humphress, Executive Director, Kentucky Office of Regulatory Relief, Kentucky Office of Attorney General, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, phone: 502-696-5408, fax: (502) 573-8317, email: steve.humphress@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Stephen B. Humphress
Subject Headings:
Attorney General; Occupations and Professions; Bonds
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the online registration application form, online renewal application form, and other forms to be used by debt adjusters.
(b) The necessity of this administrative regulation:
This regulation is necessary since it allows the Office of Attorney General ("Attorney General"), to perform its statutory mandates. The regulation is needed so that debt adjusters can comply with statutory requirements.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 15.180 directs the Attorney General to promulgate administrative regulations that will facilitate the performance of duties vested in the Attorney General and the Department of Law. KRS 367.150(4) requires the Department of Law to study the operation of all laws, rules, administrative regulations, orders, and state policies affecting consumers and to recommend administrative regulations in the consumers' interest. KRS 380.050 requires the Attorney General to promulgate administrative regulations necessary to carry out the provisions of KRS Chapter 380, relating to debt adjusting. KRS 380.040(5) requires the Attorney General to promulgate an administrative regulation to establish a registration application for debt adjusters.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation establishes the online registration application form, online renewal application form, bond form and letter of credit form to be used by debt adjusters. This administrative regulation establishes the annual audit requirements for debt adjusters.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This amendment makes changes to comply with KRS Chapter 13A drafting requirements. This amendment removes unnecessary language from the regulation as duplicative and already incorporated by reference in incorporated application processes. The amendment updates the incorporated forms so that they are easier to understand and consistent in appearance. The amended regulation provides better notice about when regulated businesses must file required renewals and reports.
(b) The necessity of the amendment to this administrative regulation:
The Attorney General needs to update its regulation to conform to KRS Chapter 13A drafting requirements. The Attorney General needs to update its regulation so that it is easier to understand. The Attorney General needs to update the forms incorporated by the regulation so that they are easier to understand. The Attorney General needs to modernize application and payment processes by providing for online processes.
(c) How the amendment conforms to the content of the authorizing statutes:
As previously explained, KRS 15.180, KRS 367.150(4), KRS 380.040 and KRS 380.050 authorize the administrative regulation amendments.
(d) How the amendment will assist in the effective administration of the statutes:
The regulation amendments will cause the regulation to be more easily understood by regulated entities and consumers. The regulation amendments will provide online application and renewal processes for regulated entities and cause the forms used by regulated entities to be more easily understood and completed. In addition, it is intended that the regulation amendments will result in saved administrative resources and provide quicker processing time by Attorney General staff.
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
No
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This regulation amendment affects approximately fifty (50) registered debt adjusters, the Attorney General, and unknown future applicants.
(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:
Future applicants will be required to use the online application processes and updated forms incorporated into this regulation. Registered debt adjusters will be required to use the new online processes incorporated into this regulation. Attorney General staff will review and process the new online submissions and new forms for compliance with law.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
Applicants and registered debt adjusters will bear no additional costs since they will be able to download the updated forms and use the online processes available on the Attorney General’s website at no cost. The Attorney General will incur no additional costs to review the online application submissions.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
The regulation amendments are intended to make the regulation and incorporated forms to be more easily understood and completed. The online application and reporting processes will make it easier for applicants and regulated entities to apply, renew registrations, and provide required documentation. In addition, it is intended that the regulation amendments will result in saved administrative resources and time and provide quicker processing time by Attorney General staff.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There are no costs to implement this administrative regulation amendment.
(b) On a continuing basis:
There are no continuing costs to implement this administrative regulation amendment.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
There are no additional costs associated with implementing this administrative regulation amendment, so no funding is needed.
(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no anticipated increase in fees or funding necessary to amend this administrative regulation.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation amendment does not directly or indirectly increase any fees.
(10) TIERING: Is tiering applied?
No. This administrative regulation applies equally to all debt adjusters.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 15.180, 367.150(4), 380.050, 380.040(5)
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
This administrative regulation amendment was expressly authorized by 1960 Ky. Acts ch. 68, Art. II, sec. 1; 1972 Ky. Acts ch. 4, sec. 4; and 2005 Ky. Acts ch. 38, sec. 3.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Office of Attorney General, Kentucky Office of Regulatory Relief ("Attorney General") is the promulgating agency. The regulation does not affect any other state agencies. (b) Estimate the following for each affected state unit, part, or division in (3)(a):
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
There are no expenditures to administer this administrative regulation amendment for the first year.
For subsequent years:
There will be no expenditures to administer the administrative regulation amendment in subsequent years.
2. Revenues:
For the first year:
The administrative regulation amendment will generate no revenues to the Attorney General in the first year.
For subsequent years:
The administrative regulation amendment will generate no revenues to the Attorney General in subsequent years.
3. Cost Savings:
For the first year:
In the first year, the administrative regulation amendment will cause the Attorney General to receive cost savings from efficient and quicker processing of the online applications, which are difficult to estimate at this time, but estimated to be de minimis.
For subsequent years:
In subsequent years, the administrative regulation amendment will cause the Attorney General to receive cost savings from efficient and quicker processing of the online applications, which are difficult to estimate at this time, but estimated to be de minimis.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The administrative regulation amendment will not affect any local entities.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
This administrative regulation amendment will not cause expenditures by local entities for the first year.
For subsequent years:
This administrative regulation amendment will not cause expenditures by local entities in subsequent years.
2. Revenues:
For the first year:
Local entities will receive no revenues from this administrative regulation amendment for the first year.
For subsequent years:
Local entities will receive no revenues from this administrative regulation amendment in subsequent years.
3. Cost Savings:
For the first year:
Local entities will receive no cost savings from this administrative regulation amendment for the first year.
For subsequent years:
Local entities will receive no cost savings from this administrative regulation amendment in subsequent years.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
Applicants and registered debt adjusters will be affected by this administrative regulation amendment.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
This administrative regulation amendment will not cause registered debt adjusters to have any additional expenditures for the first year.
For subsequent years:
This administrative regulation amendment will not cause registered debt adjusters s to have any additional expenditures for the first year.
2. Revenues:
For the first year:
Registered debt adjusters will not receive any revenues from this administrative regulation amendment for the first year.
For subsequent years:
Registered debt adjusters will not receive any revenues from this administrative regulation amendment for the first year.
3. Cost Savings:
For the first year:
The administrative regulation amendment is intended to cause applicants and debt adjusters to receive cost savings from quicker processing of online application and document submissions, which are difficult to estimate at this time, but estimated to be de minimis, for the first year.
For subsequent years:
The administrative regulation amendment is intended to cause applicants and debt adjusters to receive cost savings from quicker processing of online application and document submissions, which are difficult to estimate at this time, but estimated to be de minimis, in subsequent years.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
This administrative regulation amendment will have no fiscal impact. The regulation amendment merely updates current forms used by applicants and registered debt adjusters. The amendment creates an online application process for applicants and an online renewal application process for registered debt adjusters. The forms and online processes are available at no cost. The Attorney General receives no fees. For these reasons, the regulation amendments are not expected to have any significant fiscal impact.
(b) Methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and the resulting facts from this regulation. The Attorney General used staff resources in determining the fiscal impact.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
There is not an expected "major economic impact" from this regulation amendment for the Attorney General, any local entities, or affected regulated entities.
(b) The methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and resulting facts from this regulation. The Attorney General used staff resources in reaching the conclusion that no overall negative or adverse major economic impact results from this administrative regulation.
OFFICE OF ATTORNEY GENERAL
Kentucky Office of Regulatory Relief
(Amendment)
40 KAR 12:400.Debt adjusters.
Section 1.
Debt Adjusters Registration Application.(1)
A debt adjuster shall not adjust debts of Commonwealth of Kentucky residents unless the Attorney General approves the debt adjuster's online registration application in accordance with this administrative regulation. An applicant shall submit an online registration application using the "Debt Adjuster Registration Application portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(2)
When completing an online application, an applicant shall submit:(a)
Payment of the $250.00 registration fee;(b)
The applicant's certificate of existence, authorization certificate from the Kentucky Secretary of State's office, or other evidence of the applicant's authority to transact business in Kentucky;(c)
Copies of all the applicant's debt adjusting contracts with debtors;(d)
Copies of the applicant's insurance policies evidencing required insurance coverages; and(e)
A completed Debt Adjuster Bond, form DA-1, a completed Debt Adjuster Irrevocable Letter of Credit, form DA-2, a completed surety bond complying with KRS 380.040; or a completed letter of credit complying with KRS 380.040.(3)
(a)
An applicant shall complete its application by submitting additional information or documents within thirty (30) days of a request by the Attorney General.(b)
The Attorney General may deny any application if an applicant fails to timely complete the application by not paying the application fee or providing requested information or documents.Section 2.
Debt Adjuster Renewal Applications.(1)
An approved debt adjuster registration or renewal shall be valid for one (1) year from the written confirmation date of registration or renewal approval provided by the Attorney General.(2)
Thirty (30) days prior to the expiration of a current registration, a registered debt adjuster may renew its registration. Registration renewal shall be accomplished by submitting an online renewal application using the "Debt Adjuster Renewal Application portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(3)
When submitting an online renewal application, each registrant shall submit:(a)
Payment of the $250.00 registration renewal fee;(b)
A completed annual audit in accordance with Section 3 of this administrative regulation; and(c)
A completed Debt Adjuster Bond, form DA-1, a completed Debt Adjuster Irrevocable Letter of Credit, form DA-2, a completed surety bond complying with KRS 380.040; or a completed letter of credit complying with KRS 380.040, when a prior submitted surety bond or letter of credit is no longer current or the surety amount is insufficient.(4)
(a)
A registrant shall complete its renewal application by submitting additional information or documents for its application within thirty (30) days of a request by the Attorney General.(b)
The Attorney General may deny any renewal application if a registrant fails to timely complete the application by not paying the renewal application fee or not submitting requested information or documents.(5)
Any registration renewal by the Attorney General shall not be construed to waive or condone any violation of law that occurred prior to any registration renewal and shall not prevent subsequent proceedings against a registrant.Section 3.
Annual Audit.(1)
An independent, third party certified public accountant shall conduct an annual audit of a registered debt adjuster's business.(2)
The annual audit shall not be older than (12) twelve months prior to the filing of a renewal application in accordance with Section 2 of this administrative regulation and shall include an audit of:(a)
The registrant's financial statements and records;(b)
The trust accounts required by KRS 380.040(1)(b);(c)
The registrant's compliance with the requirements of KRS Chapter 380; and(d)
The registrant's compliance with the requirements of this administrative regulation.(3)
The audit results and the auditor's opinion shall be accompanied by a certification from each individual auditor joining in the opinion. The certification shall include:(a)
The auditor is an independent, third-party certified public accountant;(b)
The states in which the auditor is licensed as a certified public accountant; and(c)
The identification number for each license.A registrant shall submit the audit results, the auditor's opinion, and the certification by each auditor to the Attorney General when it renews its registration in accordance with Section 2 of this administrative regulation.Section 4.
Trust Accounts. The trust accounts required by KRS 380.040(1)(b) shall be maintained in a federally insured financial institution.Section 5.
Written notification of material changes. A registered debt adjuster shall notify the Attorney General, in writing, within fourteen (14) days of any material change to information provided in the registrant's original application, any renewal application, application attachments, or written notices.Section 6.
Record Requests. A debt adjuster shall make requested business records and documents and information related to an investigation or inquiry readily available to the Attorney General for inspection and copying upon request.Section 7.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Debt Adjuster Registration application portal", February 2026;(b)
"Debt Adjuster Renewal application portal", Feb. 2026;(c)
"Debt Adjuster Surety Bond", Form DA-1, February 2026; and(d)
"Debt Adjuster Irrevocable Letter of Credit with Demand for Payment letter", Form DA-2, February 2026;(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Office of the Attorney General, Capital Complex East, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, Monday through Friday, 8:00 a.m. to 4:30 p.m. This material is also available on the Attorney General's website, https://ag.ky.gov/Pages/default.aspx.STEPHEN B. HUMPHRESS, Executive Director
RUSSELL COLEMAN, Attorney General
APPROVED BY AGENCY: February 20, 2026
FILED WITH LRC: February 24, 2026 at 1:04 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this proposed administrative regulation shall be held on May 21, 2026 at 10:00 a.m. Eastern Time at the Office of Administrative Hearings, Conference Room B, 105 Sea Hero Road, Suite 2, Conference Room B, Frankfort, Kentucky 40601. Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify the Attorney General in writing at least five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on May 31, 2026. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Stephen B. Humphress, Executive Director, Kentucky Office of Regulatory Relief, Kentucky Office of Attorney General, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, phone: 502-696-5408, fax: (502) 573-8317, email: steve.humphress@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Stephen B. Humphress
Subject Headings:
Attorney General; Occupations and Professions; Bonds
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the online registration application form, online renewal application form, and other forms to be used by debt adjusters.
(b) The necessity of this administrative regulation:
This regulation is necessary since it allows the Office of Attorney General ("Attorney General"), to perform its statutory mandates. The regulation is needed so that debt adjusters can comply with statutory requirements.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 15.180 directs the Attorney General to promulgate administrative regulations that will facilitate the performance of duties vested in the Attorney General and the Department of Law. KRS 367.150(4) requires the Department of Law to study the operation of all laws, rules, administrative regulations, orders, and state policies affecting consumers and to recommend administrative regulations in the consumers' interest. KRS 380.050 requires the Attorney General to promulgate administrative regulations necessary to carry out the provisions of KRS Chapter 380, relating to debt adjusting. KRS 380.040(5) requires the Attorney General to promulgate an administrative regulation to establish a registration application for debt adjusters.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation establishes the online registration application form, online renewal application form, bond form and letter of credit form to be used by debt adjusters. This administrative regulation establishes the annual audit requirements for debt adjusters.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This amendment makes changes to comply with KRS Chapter 13A drafting requirements. This amendment removes unnecessary language from the regulation as duplicative and already incorporated by reference in incorporated application processes. The amendment updates the incorporated forms so that they are easier to understand and consistent in appearance. The amended regulation provides better notice about when regulated businesses must file required renewals and reports.
(b) The necessity of the amendment to this administrative regulation:
The Attorney General needs to update its regulation to conform to KRS Chapter 13A drafting requirements. The Attorney General needs to update its regulation so that it is easier to understand. The Attorney General needs to update the forms incorporated by the regulation so that they are easier to understand. The Attorney General needs to modernize application and payment processes by providing for online processes.
(c) How the amendment conforms to the content of the authorizing statutes:
As previously explained, KRS 15.180, KRS 367.150(4), KRS 380.040 and KRS 380.050 authorize the administrative regulation amendments.
(d) How the amendment will assist in the effective administration of the statutes:
The regulation amendments will cause the regulation to be more easily understood by regulated entities and consumers. The regulation amendments will provide online application and renewal processes for regulated entities and cause the forms used by regulated entities to be more easily understood and completed. In addition, it is intended that the regulation amendments will result in saved administrative resources and provide quicker processing time by Attorney General staff.
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
No
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This regulation amendment affects approximately fifty (50) registered debt adjusters, the Attorney General, and unknown future applicants.
(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:
Future applicants will be required to use the online application processes and updated forms incorporated into this regulation. Registered debt adjusters will be required to use the new online processes incorporated into this regulation. Attorney General staff will review and process the new online submissions and new forms for compliance with law.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
Applicants and registered debt adjusters will bear no additional costs since they will be able to download the updated forms and use the online processes available on the Attorney General’s website at no cost. The Attorney General will incur no additional costs to review the online application submissions.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
The regulation amendments are intended to make the regulation and incorporated forms to be more easily understood and completed. The online application and reporting processes will make it easier for applicants and regulated entities to apply, renew registrations, and provide required documentation. In addition, it is intended that the regulation amendments will result in saved administrative resources and time and provide quicker processing time by Attorney General staff.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There are no costs to implement this administrative regulation amendment.
(b) On a continuing basis:
There are no continuing costs to implement this administrative regulation amendment.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
There are no additional costs associated with implementing this administrative regulation amendment, so no funding is needed.
(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no anticipated increase in fees or funding necessary to amend this administrative regulation.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation amendment does not directly or indirectly increase any fees.
(10) TIERING: Is tiering applied?
No. This administrative regulation applies equally to all debt adjusters.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 15.180, 367.150(4), 380.050, 380.040(5)
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
This administrative regulation amendment was expressly authorized by 1960 Ky. Acts ch. 68, Art. II, sec. 1; 1972 Ky. Acts ch. 4, sec. 4; and 2005 Ky. Acts ch. 38, sec. 3.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Office of Attorney General, Kentucky Office of Regulatory Relief ("Attorney General") is the promulgating agency. The regulation does not affect any other state agencies. (b) Estimate the following for each affected state unit, part, or division in (3)(a):
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
There are no expenditures to administer this administrative regulation amendment for the first year.
For subsequent years:
There will be no expenditures to administer the administrative regulation amendment in subsequent years.
2. Revenues:
For the first year:
The administrative regulation amendment will generate no revenues to the Attorney General in the first year.
For subsequent years:
The administrative regulation amendment will generate no revenues to the Attorney General in subsequent years.
3. Cost Savings:
For the first year:
In the first year, the administrative regulation amendment will cause the Attorney General to receive cost savings from efficient and quicker processing of the online applications, which are difficult to estimate at this time, but estimated to be de minimis.
For subsequent years:
In subsequent years, the administrative regulation amendment will cause the Attorney General to receive cost savings from efficient and quicker processing of the online applications, which are difficult to estimate at this time, but estimated to be de minimis.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The administrative regulation amendment will not affect any local entities.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
This administrative regulation amendment will not cause expenditures by local entities for the first year.
For subsequent years:
This administrative regulation amendment will not cause expenditures by local entities in subsequent years.
2. Revenues:
For the first year:
Local entities will receive no revenues from this administrative regulation amendment for the first year.
For subsequent years:
Local entities will receive no revenues from this administrative regulation amendment in subsequent years.
3. Cost Savings:
For the first year:
Local entities will receive no cost savings from this administrative regulation amendment for the first year.
For subsequent years:
Local entities will receive no cost savings from this administrative regulation amendment in subsequent years.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
Applicants and registered debt adjusters will be affected by this administrative regulation amendment.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
This administrative regulation amendment will not cause registered debt adjusters to have any additional expenditures for the first year.
For subsequent years:
This administrative regulation amendment will not cause registered debt adjusters s to have any additional expenditures for the first year.
2. Revenues:
For the first year:
Registered debt adjusters will not receive any revenues from this administrative regulation amendment for the first year.
For subsequent years:
Registered debt adjusters will not receive any revenues from this administrative regulation amendment for the first year.
3. Cost Savings:
For the first year:
The administrative regulation amendment is intended to cause applicants and debt adjusters to receive cost savings from quicker processing of online application and document submissions, which are difficult to estimate at this time, but estimated to be de minimis, for the first year.
For subsequent years:
The administrative regulation amendment is intended to cause applicants and debt adjusters to receive cost savings from quicker processing of online application and document submissions, which are difficult to estimate at this time, but estimated to be de minimis, in subsequent years.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
This administrative regulation amendment will have no fiscal impact. The regulation amendment merely updates current forms used by applicants and registered debt adjusters. The amendment creates an online application process for applicants and an online renewal application process for registered debt adjusters. The forms and online processes are available at no cost. The Attorney General receives no fees. For these reasons, the regulation amendments are not expected to have any significant fiscal impact.
(b) Methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and the resulting facts from this regulation. The Attorney General used staff resources in determining the fiscal impact.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
There is not an expected "major economic impact" from this regulation amendment for the Attorney General, any local entities, or affected regulated entities.
(b) The methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and resulting facts from this regulation. The Attorney General used staff resources in reaching the conclusion that no overall negative or adverse major economic impact results from this administrative regulation.