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Below is only the section of the Pension Protection Act of 2006 that addresses credit counseling organizations and has been "cleaned up" a bit to help make it easier to read.
To view this section in in its original form: Click Here
To view the Pension Protection Act of 2006 in its entirety go to: http://www.govtrack.us/congress/bill.xpd?bill=h109-4

The new law states that a credit counseling organization shall not be exempt from tax under 501 (a) unless such credit counseling organization is organized and operated in accordance with the following requirements:

For credit counseling organizations described in section 501, subsection (c), paragraph (3) or (4):

• The credit counseling organization must provide credit counseling services tailored to the specific needs and circumstances of consumers.
• The credit counseling organization must not make loans to debtors (other than loans with no fees or interest) and must not negotiate the making of loans on behalf of debtors.
• The credit counseling organization may provide services for the purpose of improving a consumers credit record, credit history, or credit rating only to the extent that such services are incidental to providing credit counseling services.
• The credit counseling organization must not charge any separately stated fee for services for the purpose of improving any consumers credit record, credit history, or credit rating.
• The credit counseling organization must not refuse to provide credit counseling services to a consumer due to the inability of the consumer to pay, the ineligibility of the consumer for debt management plan enrollment, or the unwillingness of the consumer to enroll in a debt management plan.
• The credit counseling organization must establish and implement a fee policy which:
  • requires that any fees charged to a consumer for services are reasonable,
  • allows for the waiver of fees if the consumer is unable to pay, and
  • except to the extent allowed by State law, prohibits charging any fee based in whole or in part on a percentage of the consumers debt, the consumers payments to be made pursuant to a debt management plan, or the projected or actual savings to the consumer resulting from enrolling in a debt management plan.
• At all times the credit counseling organization must have a board of directors or other governing body -
  • which is controlled by persons who represent the broad interests of the public, such as public officials acting in their capacities as such, persons having special knowledge or expertise in credit or financial education, and community leaders,
  • not more than 20 percent of the voting power of which is vested in persons who are employed by the organization or who will benefit financially, directly or indirectly, from the organizations activities (other than through the receipt of reasonable directors fees or the repayment of consumer debt to creditors other than the credit counseling organization or its affiliates), and
  • not more than 49 percent of the voting power of which is vested in persons who are employed by the organization or who will benefit financially, directly or indirectly, from the organizations activities (other than through the receipt of reasonable directors fees).
• The credit counseling organization must not own more than 35 percent of -
  • the total combined voting power of any corporation (other than a corporation which is an organization described in subsection (c)(3) and exempt from tax under subsection (a)) which is in the trade or business of lending money, repairing credit, or providing debt management plan services, payment processing, or similar services,
  • the profits interest of any partnership (other than a partnership which is an organization described in subsection (c)(3) and exempt from tax under subsection (a)) which is in the trade or business of lending money, repairing credit, or providing debt management plan services, payment processing, or similar services, and
  • the beneficial interest of any trust or estate (other than a trust which is an organization described in subsection (c)(3) and exempt from tax under subsection (a)) which is in the trade or business of lending money, repairing credit, or providing debt management plan services, payment processing, or similar services.
• The credit counseling organization must not receive any amount for providing referrals to others for debt management plan services, and must not pay any amount to others for obtaining referrals of consumers.

IN ADDITION TO THE RULES UP TOP,  for credit counseling organizations described in section 501, subsection (c), paragraph (3):

• The credit counseling organization must not solicit contributions from consumers during the initial counseling process or while the consumer is receiving services from the organization.
• The aggregate revenues of the credit counseling organization which are from payments of creditors of consumers of the credit counseling organization and which are attributable to debt management plan services must not exceed the applicable percentage of the total revenues of the organization.
  • APPLICABLE PERCENTAGE
    • IN GENERAL.For purposes of subparagraph (A)(ii), the applicable percentage is 50 percent.
    • TRANSITION RULE.Notwithstanding clause (i), in the case of an organization with respect to which the provision of credit counseling services is a substantial purpose and which is described in paragraph (3) of subsection (c) and exempt from tax under subsection (a) on the date of the enactment of this subsection, the applicable percentage is:
      • 80 percent for the first taxable year of such organization beginning after the date which is 1 year after the date of the enactment of this subsection, and
      • 70 percent for the second such taxable year beginning after such date, and
      • 60 percent for the third such taxable year beginning after such date.

IN ADDITION TO THE RULES UP TOP,  for organizations described in section 501, subsection (c), paragraph (4):

• The credit counseling organization must notify the Secretary, in such manner as the Secretary may by regulations prescribe, that it is applying for recognition as a credit counseling organization.

EFFECTIVE DATE

• IN GENERAL.Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
• TRANSITION RULE FOR EXISTING ORGANIZATIONS.In the case of any organization described in paragraph (3) or (4) of section 501(c) of the Internal Revenue Code of 1986 and with respect to which the provision of credit counseling services is a substantial purpose on the date of the enactment of this Act, the amendments made by this section shall apply to taxable years beginning after the date which is 1 year after the date of the enactment of this Act.