Text: SF02169 Text: SF02171 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 SENATE FILE 2170
1 2
1 3 AN ACT
1 4 RELATING TO LICENSING SANCTIONS AGAINST INDIVIDUALS WHO
1 5 DEFAULT ON DEBT OWED TO OR COLLECTED BY THE COLLEGE
1 6 STUDENT AID COMMISSION.
1 7
1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 9
1 10 Section 1. NEW SECTION. 261.110 NOTICE TO INDIVIDUAL OF
1 11 POTENTIAL SANCTION OF LICENSE.
1 12 1. The commission may initiate action to deny, revoke, or
1 13 suspend any license authorized by the laws of this state, as
1 14 defined in section 252J.1, to any person who has defaulted on
1 15 an obligation owed to or collected by the commission as
1 16 provided in this section and sections 261.111 through 261.116.
1 17 2. The commission shall proceed in accordance with this
1 18 section and sections 261.111 through 261.116 only if notice is
1 19 served on an individual by restricted certified mail addressed
1 20 to the individual at the individual's last known address or
1 21 principal place of business. The return post-office receipt
1 22 signed by the individual shall be proof of notice.
1 23 The notice shall include all of the following:
1 24 a. The address and telephone number of the commission and
1 25 the individual's file number.
1 26 b. A statement that the individual is in default on an
1 27 obligation owed to or collected by the commission.
1 28 c. A statement that the individual may request a
1 29 conference with the commission to contest the action.
1 30 d. A statement that if, within twenty days of service of
1 31 notice on the individual, the individual fails to contact the
1 32 commission to schedule a conference or pay the total amount of
1 33 delinquent obligation owed, the commission shall issue a
1 34 certificate of noncompliance bearing the individual's name,
1 35 social security number, and file number to any appropriate
2 1 licensing authority, certifying that the individual is in
2 2 default on an obligation owed to or collected by the
2 3 commission.
2 4 e. A statement that in order to stay the issuance of a
2 5 certificate of noncompliance, the request for a conference
2 6 shall be in writing and shall be received by the commission
2 7 within twenty days of service of notice on the individual.
2 8 f. The names of the licensing authorities to which the
2 9 commission intends to issue a certificate of noncompliance.
2 10 g. A statement that if the commission issues a certificate
2 11 of noncompliance to an appropriate licensing authority, the
2 12 licensing authority shall initiate proceedings to refuse to
2 13 issue or renew, or to suspend or revoke, the individual's
2 14 license, unless the commission provides the licensing
2 15 authority with a withdrawal of a certificate of noncompliance.
2 16 Sec. 2. NEW SECTION. 261.111 CONFERENCE.
2 17 1. An individual may schedule a conference with the
2 18 commission following service of notice pursuant to section
2 19 261.110 or at any time after notice of suspension, revocation,
2 20 denial of issuance, or nonrenewal of a license from a
2 21 licensing authority, to challenge the commission's actions
2 22 under sections 261.110 through 261.116.
2 23 2. The request for a conference shall be made to the
2 24 commission, in writing, and, if requested after service of
2 25 notice pursuant to this section, shall be received by the
2 26 commission within twenty days following service of notice.
2 27 3. The commission shall notify the individual of the date,
2 28 time, and location of the conference by regular mail, with the
2 29 date of the conference to be no earlier than ten days
2 30 following issuance of notice of the conference by the
2 31 commission. If the individual fails to appear at the
2 32 conference, the commission shall issue a certificate of
2 33 noncompliance if not already issued.
2 34 4. The commission shall grant the individual a stay of the
2 35 issuance of a certificate of noncompliance upon receiving a
3 1 timely written request for a conference, and if a certificate
3 2 of noncompliance has previously been issued, shall issue a
3 3 stay of action on the certificate. The commission shall issue
3 4 a withdrawal of a certificate of noncompliance as a result of
3 5 the conference if the individual enters into a written
3 6 agreement with the commission to repay the obligation.
3 7 5. Following the conference, the commission shall issue a
3 8 certificate of noncompliance, if not already issued, unless
3 9 any of the following applies:
3 10 a. The commission finds a mistake in the identity of the
3 11 individual.
3 12 b. The individual enters into a written agreement with the
3 13 commission to comply with a repayment plan agreed to by the
3 14 commission and the individual as a result of the conference,
3 15 or to comply with the existing contract, or the individual
3 16 pays the total amount of the delinquent obligation due.
3 17 c. Issuance of a certificate of noncompliance is not
3 18 appropriate under other criteria established in accordance
3 19 with rules adopted by the commission pursuant to chapter 17A.
3 20 6. If the individual does not timely request a conference
3 21 or pay the total amount of delinquent obligation owed within
3 22 twenty days of service of notice pursuant to section 261.110,
3 23 the commission shall issue a certificate of noncompliance.
3 24 Sec. 3. NEW SECTION. 261.112 WRITTEN AGREEMENT.
3 25 1. An individual served with notice pursuant to section
3 26 261.110 may enter into a written agreement with the commission
3 27 for payment of the obligation owed by the individual. The
3 28 agreement shall take into consideration the individual's
3 29 ability to pay and other criteria established by rule of the
3 30 commission. The written agreement shall include all of the
3 31 following:
3 32 a. The method, amount, and dates of payments by the
3 33 individual.
3 34 b. A statement that upon breach of the written agreement
3 35 by the individual, the commission shall issue a certificate of
4 1 noncompliance to any appropriate licensing authority.
4 2 c. A written agreement entered into pursuant to this
4 3 subsection does not preclude any other remedy provided by law.
4 4 2. If the individual enters into a written agreement with
4 5 the commission following issuance of a certificate of
4 6 noncompliance, the commission shall issue a withdrawal of the
4 7 certificate of noncompliance and shall forward a copy of the
4 8 withdrawal by regular mail to the individual and any
4 9 appropriate licensing authority.
4 10 Sec. 4. NEW SECTION. 261.113 DECISION OF THE COMMISSION.
4 11 1. The commission shall issue a written decision in regard
4 12 to an individual served with notice pursuant to section
4 13 261.110, if any of the following occurs:
4 14 a. The individual fails to appear at a scheduled
4 15 conference under section 261.111.
4 16 b. A conference is held under section 261.111.
4 17 c. The individual fails to comply with a written agreement
4 18 entered into by the individual and the commission under
4 19 section 261.112.
4 20 2. The commission shall send a copy of the written
4 21 decision to the individual by regular mail at the individual's
4 22 most recent address of record or principal place of business.
4 23 3. If the commission issues a certificate of noncompliance
4 24 or withdraws a certificate of noncompliance, a copy of the
4 25 certificate or of the withdrawal shall be attached to the
4 26 written decision as applicable.
4 27 4. The written decision shall state all of the following:
4 28 a. That a copy of the certificate of noncompliance or
4 29 withdrawal of the certificate of noncompliance has been
4 30 provided to the licensing authorities named in the notice
4 31 provided pursuant to section 261.110.
4 32 b. That upon receipt of a certificate of noncompliance,
4 33 the licensing authority shall initiate proceedings to suspend,
4 34 revoke, deny issuance, or deny renewal of a license, unless
4 35 the licensing authority is provided with a withdrawal of the
5 1 certificate of noncompliance from the commission.
5 2 c. If the decision is not to withdraw a certificate of
5 3 noncompliance, that in order to obtain a withdrawal of a
5 4 certificate of noncompliance from the commission, the
5 5 individual shall enter into a written agreement with the
5 6 commission, comply with an existing written agreement with the
5 7 commission, or pay the total amount of delinquent obligation
5 8 owed.
5 9 d. If the written decision includes a certificate of
5 10 noncompliance, that all of the following apply:
5 11 (1) The individual may request a hearing as provided in
5 12 section 261.116, before the district court in the county of
5 13 the individual's residence, by filing a written application to
5 14 the court challenging the issuance of the certificate of
5 15 noncompliance by the commission and sending a copy of the
5 16 application to the commission within the time period specified
5 17 in section 261.116.
5 18 (2) The individual may retain an attorney at the
5 19 individual's own expense to represent the individual at the
5 20 hearing.
5 21 (3) The scope of review of the district court shall be
5 22 limited to demonstration of a mistake of fact related to the
5 23 delinquency of the individual.
5 24 4. If the commission issues a certificate of
5 25 noncompliance, the commission shall only issue a withdrawal of
5 26 the certificate of noncompliance if any of the following
5 27 applies:
5 28 a. The commission or the court finds a mistake in the
5 29 identity of the individual.
5 30 b. The commission or the court finds a mistake in
5 31 determining the amount of a delinquent obligation.
5 32 c. The individual enters into a written agreement with the
5 33 commission to comply with an obligation, the individual
5 34 complies with an existing written agreement to comply with an
5 35 obligation, or the individual pays the total amount of
6 1 delinquent obligation owed.
6 2 d. Issuance of a withdrawal of the certificate of
6 3 noncompliance is appropriate under other criteria in
6 4 accordance with rules adopted by the commission pursuant to
6 5 chapter 17A.
6 6 Sec. 5. NEW SECTION. 261.114 CERTIFICATE OF
6 7 NONCOMPLIANCE – CERTIFICATION TO LICENSING AUTHORITY.
6 8 1. If an individual fails to respond to the notice of
6 9 potential license sanction provided pursuant to section
6 10 261.110 or the commission issues a written decision under
6 11 section 261.113 which states that the individual is not in
6 12 compliance, the commission shall certify, in writing, to any
6 13 appropriate licensing authority that the individual is not in
6 14 compliance and shall include a copy of the certificate of
6 15 noncompliance.
6 16 2. The certificate of noncompliance shall contain the
6 17 individual's name, social security number, and file number.
6 18 3. The certificate of noncompliance shall require all of
6 19 the following:
6 20 a. That the licensing authority initiate procedures for
6 21 the revocation or suspension of the individual's license, or
6 22 for the denial of the issuance or renewal of a license using
6 23 the licensing authority's procedures.
6 24 b. That the licensing authority provide notice to the
6 25 individual, as provided in section 261.115, of the intent to
6 26 suspend, revoke, deny issuance, or deny renewal of a license
6 27 including the effective date of the action. The suspension,
6 28 revocation, or denial shall be effective no sooner than thirty
6 29 days following provision of notice to the individual.
6 30 Sec. 6. NEW SECTION. 261.115 REQUIREMENTS AND PROCEDURES
6 31 OF LICENSING AUTHORITY.
6 32 1. A licensing authority shall maintain records of
6 33 licensees by name, current known address, and social security
6 34 number.
6 35 2. In addition to other grounds for suspension,
7 1 revocation, or denial of issuance or renewal of a license, a
7 2 licensing authority shall include in rules adopted by the
7 3 licensing authority as grounds for suspension, revocation, or
7 4 denial of issuance or renewal of a license, the receipt of a
7 5 certificate of noncompliance from the commission.
7 6 3. The supreme court shall prescribe rules for admission
7 7 of persons to practice as attorneys and counselors pursuant to
7 8 chapter 602, article 10, which include provisions, as
7 9 specified in this chapter, for the denial, suspension, or
7 10 revocation of the admission for failure to repay an obligation
7 11 owed to or collected by the commission.
7 12 4. A licensing authority that is issued a certificate of
7 13 noncompliance shall initiate procedures for the suspension,
7 14 revocation, or denial of issuance or renewal of licensure to
7 15 an individual. The licensing authority shall utilize existing
7 16 rules and procedures for suspension, revocation, or denial of
7 17 the issuance or renewal of a license.
7 18 In addition, the licensing authority shall provide notice
7 19 to the individual of the licensing authority's intent to
7 20 suspend, revoke, or deny issuance or renewal of a license
7 21 under this chapter. The suspension, revocation, or denial
7 22 shall be effective no sooner than thirty days following
7 23 provision of notice to the individual. The notice shall state
7 24 all of the following:
7 25 a. The licensing authority intends to suspend, revoke, or
7 26 deny issuance or renewal of an individual's license due to the
7 27 receipt of a certificate of noncompliance from the commission.
7 28 b. The individual must contact the commission to schedule
7 29 a conference or to otherwise obtain a withdrawal of a
7 30 certificate of noncompliance.
7 31 c. Unless the commission furnishes a withdrawal of a
7 32 certificate of noncompliance to the licensing authority within
7 33 thirty days of the issuance of the notice under this section,
7 34 the individual's license shall be revoked, suspended, or
7 35 denied.
8 1 d. If the licensing authority's rules and procedures
8 2 conflict with the additional requirements of this section, the
8 3 requirements of this section shall apply. Notwithstanding
8 4 section 17A.18, the individual does not have a right to a
8 5 hearing before the licensing authority to contest the
8 6 authority's actions under this chapter, but may request a
8 7 court hearing pursuant to section 261.116 within thirty days
8 8 of the provision of notice under this section.
8 9 5. If the licensing authority receives a withdrawal of a
8 10 certificate of noncompliance from the commission, the
8 11 licensing authority shall immediately reinstate, renew, or
8 12 issue a license if the individual is otherwise in compliance
8 13 with licensing requirements established by the licensing
8 14 authority.
8 15 Sec. 7. NEW SECTION. 261.116 DISTRICT COURT HEARING.
8 16 1. Following the issuance of a written decision by the
8 17 commission under section 261.113, which includes the issuance
8 18 of a certificate of noncompliance, or following provision of
8 19 notice to the individual by a licensing authority pursuant to
8 20 section 261.115, an individual may seek review of the decision
8 21 and request a hearing before the district court in the
8 22 individual's county of residence, by filing an application
8 23 with the district court, and sending a copy of the application
8 24 to the commission by regular mail. An application shall be
8 25 filed to seek review of the decision by the commission or
8 26 following issuance of notice by the licensing authority no
8 27 later than thirty days after the issuance of the notice
8 28 pursuant to section 261.115. The clerk of the district court
8 29 shall schedule a hearing and mail a copy of the order
8 30 scheduling the hearing to the individual and the commission
8 31 and shall also mail a copy of the order to the licensing
8 32 authority, if applicable. The commission shall certify a copy
8 33 of its written decision and certificate of noncompliance,
8 34 indicating the date of issuance, and the licensing authority
8 35 shall certify a copy of a notice issued pursuant to section
9 1 261.115, to the court prior to the hearing.
9 2 2. The filing of an application pursuant to this section
9 3 shall automatically stay the actions of a licensing authority
9 4 pursuant to section 261.115. The hearing on the application
9 5 shall be scheduled and held within thirty days of the filing
9 6 of the application. However, if the individual fails to
9 7 appear at the scheduled hearing, the stay shall be lifted and
9 8 the licensing authority shall continue procedures pursuant to
9 9 section 261.115.
9 10 3. The scope of review by the district court shall be
9 11 limited to demonstration of a mistake of fact relating to the
9 12 delinquency of the individual.
9 13 4. If the court finds that the commission was in error in
9 14 issuing a certificate of noncompliance, or in failing to issue
9 15 a withdrawal of a certificate of noncompliance, the commission
9 16 shall issue a withdrawal of a certificate of noncompliance to
9 17 the appropriate licensing authority.
9 18
9 19
9 20
9 21 MARY E. KRAMER
9 22 President of the Senate
9 23
9 24
9 25
9 26 RON J. CORBETT
9 27 Speaker of the House
9 28
9 29 I hereby certify that this bill originated in the Senate and
9 30 is known as Senate File 2170, Seventy-seventh General Assembly.
9 31
9 32
9 33
9 34 MARY PAT GUNDERSON
9 35 Secretary of the Senate
10 1 Approved , 1998
10 2
10 3
10 4
10 5 TERRY E. BRANSTAD
10 6 Governor
Text: SF02169 Text: SF02171 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 1998 Cornell College and League of Women Voters of Iowa
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