Text: HSB00186 Text: HSB00188 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 261.110 NOTICE TO OBLIGOR OF
1 2 POTENTIAL SANCTION OF LICENSE.
1 3 1. The commission may initiate action to deny, revoke, or
1 4 suspend any license authorized by the laws of this state, as
1 5 defined in section 252J.1, to any person who has defaulted on
1 6 an obligation owed to or collected by the commission as
1 7 provided in this section and sections 261.111 through 261.116.
1 8 2. The commission shall proceed in accordance with this
1 9 section and sections 261.111 through 261.116 only if notice is
1 10 served on an obligor by certified mail addressed to the
1 11 obligor at the obligor's last known dwelling place or
1 12 principal place of business. The return post-office receipt
1 13 signed by the obligor shall be proof of notice. Return
1 14 acknowledgment is required to prove notice by certified mail.
1 15 The notice shall include all of the following:
1 16 a. The address and telephone number of the commission and
1 17 the obligor's file number.
1 18 b. A statement that the obligor is in default on an
1 19 obligation owed to or collected by the commission.
1 20 c. A statement that the obligor may request a conference
1 21 with the commission to contest the action.
1 22 d. A statement that if, within twenty days of service of
1 23 notice on the obligor, the obligor fails to contact the
1 24 commission to schedule a conference, the commission shall
1 25 issue a certificate of noncompliance, bearing the obligor's
1 26 name, social security number, and file number to any
1 27 appropriate licensing authority, certifying that the obligor
1 28 is in default on an obligation owed to or collected by the
1 29 commission.
1 30 e. A statement that in order to stay the issuance of a
1 31 certificate of noncompliance, the request for a conference
1 32 shall be in writing and shall be received by the commission
1 33 within twenty days of service of notice on the obligor.
1 34 f. The names of the licensing authorities to which the
1 35 commission intends to issue a certificate of noncompliance.
2 1 g. A statement that if the commission issues a certificate
2 2 of noncompliance to an appropriate licensing authority, the
2 3 licensing authority shall initiate proceedings to refuse to
2 4 issue or renew, or to suspend or revoke, the obligor's
2 5 license, unless the commission provides the licensing
2 6 authority with a withdrawal of a certificate of noncompliance.
2 7 Sec. 2. NEW SECTION. 261.111 CONFERENCE.
2 8 1. The obligor may schedule a conference with the
2 9 commission following service of notice pursuant to section
2 10 261.110 or at any time after notice of suspension, revocation,
2 11 denial of issuance, or nonrenewal of a license from a
2 12 licensing authority, to challenge the commission's actions
2 13 under sections 261.110 through 261.116.
2 14 2. The request for a conference shall be made to the
2 15 commission, in writing, and, if requested after service of
2 16 notice pursuant to this section, shall be received by the
2 17 commission within twenty days following service of notice.
2 18 3. The commission shall notify the obligor of the date,
2 19 time, and location of the conference by regular mail, with the
2 20 date of the conference to be no earlier than ten days
2 21 following issuance of notice of the conference by the
2 22 commission. If the obligor fails to appear at the conference,
2 23 the commission shall issue a certificate of noncompliance.
2 24 4. The commission shall grant the obligor a stay of the
2 25 issuance of a certificate of noncompliance upon receiving a
2 26 timely written request for a conference, and if a certificate
2 27 of noncompliance has previously been issued, shall issue a
2 28 withdrawal of a certificate of noncompliance if the obligor
2 29 enters into a written agreement with the commission to repay
2 30 the obligation.
2 31 5. Following the conference, the commission shall issue a
2 32 certificate of noncompliance unless any of the following
2 33 applies:
2 34 a. The commission finds a mistake in the identity of the
2 35 obligor.
3 1 b. The obligor enters into a written agreement with the
3 2 commission to comply with a repayment plan agreed to by the
3 3 commission and the obligor as a result of the conference, or
3 4 to comply with the existing contract, or the obligor pays the
3 5 total amount of the delinquent obligation due.
3 6 c. Issuance of a certificate of noncompliance is not
3 7 appropriate under other criteria established in accordance
3 8 with rules adopted by the commission pursuant to chapter 17A.
3 9 6. If the obligor does not timely request a conference or
3 10 pay the total amount of delinquent obligation owed within
3 11 twenty days of service of notice pursuant to section 261.110,
3 12 the commission shall issue a certificate of noncompliance.
3 13 Sec. 3. NEW SECTION. 261.112 WRITTEN AGREEMENT.
3 14 1. The obligor and the commission may enter into a written
3 15 agreement for payment of the obligation which takes into
3 16 consideration the obligor's ability to pay and other criteria
3 17 established by rule of the commission. The written agreement
3 18 shall include all of the following:
3 19 a. The method, amount, and dates of payments by the
3 20 obligor.
3 21 b. A statement that upon breach of the written agreement
3 22 by the obligor, the commission shall issue a certificate of
3 23 noncompliance to any appropriate licensing authority.
3 24 c. A written agreement entered into pursuant to this
3 25 subsection does not preclude any other remedy provided by law.
3 26 2. Following issuance of a certificate of noncompliance,
3 27 if the obligor enters into a written agreement with the
3 28 commission, the commission shall issue a withdrawal of the
3 29 certificate of noncompliance and shall forward a copy of the
3 30 withdrawal by regular mail to the obligor and any appropriate
3 31 licensing authority.
3 32 Sec. 4. NEW SECTION. 261.113 DECISION OF THE COMMISSION.
3 33 1. The commission shall issue a written decision if any of
3 34 the following conditions exists:
3 35 a. The obligor fails to appear at a scheduled conference
4 1 under section 261.111.
4 2 b. A conference is held under section 261.111.
4 3 c. The obligor fails to comply with a written agreement
4 4 entered into by the obligor and the commission under section
4 5 261.112.
4 6 2. The commission shall send a copy of the written
4 7 decision to the obligor by regular mail at the obligor's most
4 8 recent address of record or principal place of business.
4 9 3. If the decision is made to issue a certificate of
4 10 noncompliance or to withdraw the certificate of noncompliance,
4 11 a copy of the certificate of noncompliance or of the
4 12 withdrawal of the certificate of noncompliance shall be
4 13 attached to the written decision.
4 14 4. The written decision shall state all of the following:
4 15 a. That a copy of the certificate of noncompliance or
4 16 withdrawal of the certificate of noncompliance has been
4 17 provided to the licensing authorities named in the notice
4 18 provided pursuant to section 261.110.
4 19 b. That upon receipt of a certificate of noncompliance,
4 20 the licensing authority shall initiate proceedings to suspend,
4 21 revoke, deny issuance, or deny renewal of a license, unless
4 22 the licensing authority is provided with a withdrawal of a
4 23 certificate of noncompliance from the commission.
4 24 c. That in order to obtain a withdrawal of a certificate
4 25 of noncompliance from the commission, the obligor shall enter
4 26 into a written agreement with the commission, comply with an
4 27 existing written agreement with the commission, or pay the
4 28 total amount of delinquent obligation owed.
4 29 d. That if the commission issues a written decision which
4 30 includes a certificate of noncompliance, all of the following
4 31 apply:
4 32 (1) The obligor may request a hearing as provided in
4 33 section 261.116, before the district court in the county of
4 34 the obligor's residence, by filing a written application to
4 35 the court challenging the issuance of the certificate of
5 1 noncompliance by the commission and sending a copy of the
5 2 application to the commission within the time period specified
5 3 in section 261.116.
5 4 (2) The obligor may retain an attorney at the obligor's
5 5 own expense to represent the obligor at the hearing.
5 6 (3) The scope of review of the district court shall be
5 7 limited to demonstration of a mistake of fact related to the
5 8 delinquency of the obligor.
5 9 4. If the commission issues a certificate of
5 10 noncompliance, the commission shall only issue a withdrawal of
5 11 the certificate of noncompliance if any of the following
5 12 applies:
5 13 a. The commission or the court finds a mistake in the
5 14 identity of the obligor.
5 15 b. The commission or the court finds a mistake in
5 16 determining the amount of a delinquent obligation.
5 17 c. The obligor enters into a written agreement with the
5 18 commission to comply with an obligation, the obligor complies
5 19 with an existing written agreement to comply with an
5 20 obligation, or the obligor pays the total amount of delinquent
5 21 obligation owed.
5 22 d. Issuance of a withdrawal of the certificate of
5 23 noncompliance is appropriate under other criteria in
5 24 accordance with rules adopted by the commission pursuant to
5 25 chapter 17A.
5 26 Sec. 5. NEW SECTION. 261.114 CERTIFICATE OF
5 27 NONCOMPLIANCE – CERTIFICATION TO LICENSING AUTHORITY.
5 28 1. If an obligor fails to respond to the notice of
5 29 potential license sanction provided pursuant to section
5 30 261.110 or the commission issues a written decision under
5 31 section 261.113 which states that the obligor is not in
5 32 compliance, the commission shall certify, in writing, to any
5 33 appropriate licensing authority that the obligor is not in
5 34 compliance and shall include a copy of the certificate of
5 35 noncompliance.
6 1 2. The certificate of noncompliance shall contain the
6 2 obligor's name, social security number, and file number.
6 3 3. The certificate of noncompliance shall require all of
6 4 the following:
6 5 a. That the licensing authority initiate procedures for
6 6 the revocation or suspension of the obligor's license, or for
6 7 the denial of the issuance or renewal of a license using the
6 8 licensing authority's procedures.
6 9 b. That the licensing authority provide notice to the
6 10 obligor, as provided in section 252J.115, of the intent to
6 11 suspend, revoke, deny issuance, or deny renewal of a license
6 12 including the effective date of the action. The suspension,
6 13 revocation, or denial shall be effective no sooner than thirty
6 14 days following provision of notice to the obligor.
6 15 Sec. 6. NEW SECTION. 261.115 REQUIREMENTS AND PROCEDURES
6 16 OF LICENSING AUTHORITY.
6 17 1. A licensing authority shall maintain records of
6 18 licensees by name, current known address, and social security
6 19 number.
6 20 2. In addition to other grounds for suspension,
6 21 revocation, or denial of issuance or renewal of a license, a
6 22 licensing authority shall include in rules adopted by the
6 23 licensing authority as grounds for suspension, revocation, or
6 24 denial of issuance or renewal of a license, the receipt of a
6 25 certificate of noncompliance from the commission.
6 26 3. The supreme court shall prescribe rules for admission
6 27 of persons to practice as attorneys and counselors pursuant to
6 28 chapter 602, article 10, which include provisions, as
6 29 specified in this chapter, for the denial, suspension, or
6 30 revocation of the admission for failure to repay an obligation
6 31 owed to or collected by the commission.
6 32 4. A licensing authority that is issued a certificate of
6 33 noncompliance shall initiate procedures for the suspension,
6 34 revocation, or denial of issuance or renewal of licensure to
6 35 an obligor. The licensing authority shall utilize existing
7 1 rules and procedures for suspension, revocation, or denial of
7 2 the issuance or renewal of a license.
7 3 In addition, the licensing authority shall provide notice
7 4 to the obligor of the licensing authority's intent to suspend,
7 5 revoke, or deny issuance or renewal of a license under this
7 6 chapter. The suspension, revocation, or denial shall be
7 7 effective no sooner than thirty days following provision of
7 8 notice to the obligor. The notice shall state all of the
7 9 following:
7 10 a. The licensing authority intends to suspend, revoke, or
7 11 deny issuance or renewal of an obligor's license due to the
7 12 receipt of a certificate of noncompliance from the commission.
7 13 b. The obligor must contact the commission to schedule a
7 14 conference or to otherwise obtain a withdrawal of a
7 15 certificate of noncompliance.
7 16 c. Unless the commission furnishes a withdrawal of a
7 17 certificate of noncompliance to the licensing authority within
7 18 thirty days of the issuance of the notice under this section,
7 19 the obligor's license shall be revoked, suspended, or denied.
7 20 d. If the licensing authority's rules and procedures
7 21 conflict with the additional requirements of this section, the
7 22 requirements of this section shall apply. Notwithstanding
7 23 section 17A.18, the obligor does not have a right to a hearing
7 24 before the licensing authority to contest the authority's
7 25 actions under this chapter, but may request a court hearing
7 26 pursuant to section 261.116 within thirty days of the
7 27 provision of notice under this section.
7 28 5. If the licensing authority receives a withdrawal of a
7 29 certificate of noncompliance from the commission, the
7 30 licensing authority shall immediately reinstate, renew, or
7 31 issue a license if the obligor is otherwise in compliance with
7 32 licensing requirements established by the licensing authority.
7 33 Sec. 7. NEW SECTION. 261.116 DISTRICT COURT HEARING.
7 34 1. Following the issuance of a written decision by the
7 35 commission under section 261.113, which includes the issuance
8 1 of a certificate of noncompliance, or following provision of
8 2 notice to the obligor by a licensing authority pursuant to
8 3 section 261.115, an obligor may seek review of the decision
8 4 and request a hearing before the district court in the
8 5 obligor's county of residence, by filing an application with
8 6 the district court, and sending a copy of the application to
8 7 the commission by regular mail. An application shall be filed
8 8 to seek review of the decision by the commission or following
8 9 issuance of notice by the licensing authority no later than
8 10 within thirty days after the issuance of the notice pursuant
8 11 to section 261.115. The clerk of the district court shall
8 12 schedule a hearing and mail a copy of the order scheduling the
8 13 hearing to the obligor and the commission and shall also mail
8 14 a copy of the order to the licensing authority, if applicable.
8 15 The commission shall certify a copy of its written decision
8 16 and certificate of noncompliance, indicating the date of
8 17 issuance, and the licensing authority shall certify a copy of
8 18 a notice issued pursuant to section 261.115, to the court
8 19 prior to the hearing.
8 20 2. The filing of an application pursuant to this section
8 21 shall automatically stay the actions of a licensing authority
8 22 pursuant to section 261.115. The hearing on the application
8 23 shall be scheduled and held within thirty days of the filing
8 24 of the application. However, if the obligor fails to appear
8 25 at the scheduled hearing, the stay shall be lifted and the
8 26 licensing authority shall continue procedures pursuant to
8 27 section 261.115.
8 28 3. The scope of review by the district court shall be
8 29 limited to demonstration of a mistake of fact relating to the
8 30 delinquency of the obligor.
8 31 4. If the court finds that the commission was in error in
8 32 issuing a certificate of noncompliance, or in failing to issue
8 33 a withdrawal of a certificate of noncompliance, the commission
8 34 shall issue a withdrawal of a certificate of noncompliance to
8 35 the appropriate licensing authority.
9 1 EXPLANATION
9 2 This bill creates a means by which the college student aid
9 3 commission may request that a state licensing agency deny,
9 4 revoke, deny renewal, or suspend a license authorized by the
9 5 laws of this state to any person who has defaulted on an
9 6 obligation owed to or collected by the commission.
9 7 The bill establishes procedures for issuing notice to a
9 8 person who has defaulted on an obligation owed to or collected
9 9 by the commission, for the scheduling of a conference between
9 10 the obligor and the commission following service of notice,
9 11 for entering into a written agreement for payment of the
9 12 obligation which takes into consideration the obligor's
9 13 ability to pay and other criteria established by rule of the
9 14 commission, for the conditions under which the commission must
9 15 send the obligor a copy of a written decision by the
9 16 commission, and permitting the obligor to request a hearing.
9 17 If an obligor fails to respond to the commission's notice
9 18 of a potential license sanction, the bill requires the
9 19 commission to certify, in writing, to any appropriate
9 20 licensing authority that the obligor is not in compliance and
9 21 include a copy of the certificate of noncompliance.
9 22 The bill requires that the licensing authority include in
9 23 its rules, as grounds for suspension, revocation, or denial of
9 24 issuance or renewal of a license, the receipt of a certificate
9 25 of noncompliance from the commission. The supreme court is
9 26 directed to prescribe rules for admission of persons to
9 27 practice as attorneys and counselors pursuant to chapter 602,
9 28 article 10, which include provision, as specified in this
9 29 bill, for the denial, suspension, or revocation of the
9 30 admission for failure to repay an obligation owed to or
9 31 collected by the commission.
9 32 When issued a certificate of noncompliance, the licensing
9 33 authority is required under the bill to initiate procedures
9 34 for the suspension, revocation, or denial of issuance or
9 35 renewal of licensure to an obligor.
10 1 The bill also permits an obligor to seek a review of the
10 2 commission's decision and request a hearing before the
10 3 district court in the obligor's county of residence.
10 4 LSB 2390YC 77
10 5 kh/sc/14
Text: HSB00186 Text: HSB00188 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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