HF 660 (LSB 1743HV (1) 88)

HOUSE FILE 660

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HF 437)

(COMPANION TO SF 304 BY COMMITTEE ON LABOR AND BUSINESS RELATIONS)

A BILL FOR

An Act relating to licensing sanctions against individuals who default or are delinquent on student loan debt or on a related service obligation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 272.2, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  21.  Adopt rules under chapter 17A to prohibit the suspension or revocation of a license issued by the board to a person who is in default or is delinquent on repayment or a service obligation under federal or state postsecondary educational loans or public or private services-conditional postsecondary tuition assistance solely on the basis of such default or delinquency.
    Sec. 2.  Section 272C.4, subsection 10, Code 2019, is amended by striking the subsection and inserting in lieu thereof the following:
   10.  Adopt rules under chapter 17A to prohibit the suspension or revocation of a license issued by the board to a person who is in default or is delinquent on repayment or a service obligation under federal or state postsecondary educational loans or public or private services-conditional postsecondary tuition assistance solely on the basis of such default or delinquency.
    Sec. 3.  REPEAL.  Sections 261.121, 261.122, 261.123, 261.124, 261.125, 261.126, and 261.127, Code 2019, are repealed.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill requires the state’s licensing boards to adopt administrative rules to prohibit the suspension or revocation of a license issued to a person who is in default or is delinquent on repayment or a service obligation under federal or state postsecondary educational loans or public or private services-conditional postsecondary tuition assistance solely on the basis of such default or delinquency.
   The bill eliminates Code provisions that authorize and establish a process by which the college student aid commission can initiate action to deny, revoke, or suspend any license authorized by the laws of this state to any person who has defaulted on an obligation owed to or collected by the commission.
   The provisions repealed by the bill establish procedures for issuing notice to an individual in default, for the scheduling of a conference between the individual and the commission, for entering into a written agreement for payment of the obligation which takes into consideration the individual’s ability to pay, for the individual to request a hearing, and for the issuance of a certificate for noncompliance to any appropriate licensing authority.
   Provisions repealed by the bill require each licensing authority to include in its rules, as grounds for suspension, revocation, or denial of issuance or renewal of a license, the receipt of a certificate of noncompliance from the commission; require a licensing authority to initiate procedures for suspension, revocation, or denial of issuance or renewal of licensure to the individual; direct the supreme court to prescribe rules providing for the denial, suspension, or revocation of the admission to practice as an attorney and counselor for failure to repay an obligation owed to or collected by the commission; and permit the individual to seek a review of the commission’s decision and request a hearing before the district court.