HB 884 - Education loans; failure to pay; deny cert occup licenses

First Reader Summary

A BILL to amend Code Section 2-7-102 of the Official Code of Georgia Annotated, relating to grounds for denial, suspension, and revocation of various pesticide licenses, so as to provide for the denial or suspension of a license for failure to repay a student loan; to amend Chapter 1 of Title 7 of the Official Code of Georgia Annotated, relating to financial institutions, so as to provide for the denial or suspension of licenses for mortgage lenders and brokers for failure to repay a student loan; and for other purposes.

Hugley, Carolyn F (133rd) Taylor, Maretta M (134th) Polak, Michael C (67th)
Status Summary HC: Ind SC: Ed LA: 04/20/98 Signed by Governor
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11/ 12
Code Sections - 7-1-707.1/ 12-6-49.2/ 20-3-295
House Action Senate
3/4/97 Read 1st Time 2/27/98
3/6/97 Read 2nd Time 3/12/98
2/19/98 Favorably Reported 3/12/98
Committee Amend/Sub Sub
Recommitted 3/9/98
2/24/98 Read 3rd Time 3/13/98
2/24/98 Passed/Adopted 3/13/98
FA Comm/Floor Amend/Sub CS
2/24/98 Notice to Reconsider
3/19/98 Amend/Sub Agreed To
4/3/98 Sent to Governor
4/20/98 Signed by Governor
895 Act/Veto Number
7/1/98 Effective Date

HB 884                                              HB 884/AP 
 
      H. B. No. 884 (AS PASSED HOUSE AND SENATE) 
      By:  Representatives Hugley of the 133rd, Taylor of the 
      134th and Polak of the 67th 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Code Section 2-7-102 of the Official Code of 
  1- 2  Georgia Annotated, relating to grounds for denial, 
  1- 3  suspension, and revocation of various pesticide licenses, so 
  1- 4  as to provide for the denial or suspension of a license for 
  1- 5  failure to repay a student loan; to amend Chapter 1 of Title 
  1- 6  7 of the Official Code of Georgia Annotated, relating to 
  1- 7  financial institutions, so as to provide for the denial or 
  1- 8  suspension of licenses for mortgage lenders and brokers for 
  1- 9  failure to repay a student loan; to provide for the denial 
  1-10  or suspension of licenses for check cashers for failure to 
  1-11  repay a student loan; to amend Part 2 of Article 1 of 
  1-12  Chapter 6 of Title 12 of the Official Code of Georgia 
  1-13  Annotated, relating to the practice of professional 
  1-14  forestry, so as to provide for definitions; to provide for 
  1-15  the denial or suspension of a license for failure to repay a 
  1-16  student loan; to amend Part 2 of Article 7 of Chapter 3 of 
  1-17  Title 20 of the Official Code of Georgia Annotated, the 
  1-18  "Georgia Higher Education Assistance Corporation Act," so as 
  1-19  to provide for definitions; to provide for a certified 
  1-20  state-wide list of persons who are in default and not in 
  1-21  satisfactory repayment status on a student loan and for the 
  1-22  issuance of such list to certain licensing entities; to 
  1-23  authorize licensing entities to suspend or withhold issuance 
  1-24  or renewal of licenses for all persons whose names are on 
  1-25  the certified list; to provide for notices, hearings, and 
  1-26  administrative and judicial review relating to license 
  1-27  suspension and denial; to provide for notices of release; to 
  1-28  provide for forfeiture of certain fees; to provide for 
  1-29  interagency agreements; to provide for a surcharge; to 
  1-30  provide for regulations; to amend Code Section 26-4-78 of 
  1-31  the Official Code of Georgia Annotated, relating to the 
  1-32  suspension or revocation of licenses for pharmacists, so as 
  1-33  to provide for the denial or suspension of a license for 
  1-34  failure to repay a student loan; to amend Code Section 
  1-35  33-23-21 of the Official Code of Georgia Annotated, relating 
  1-36  to grounds for refusal, suspension, or revocation of the 
  1-37  licenses of insurance agents and others, so as to provide 
 
 
 
                                 -1- 
 
 
 
  2- 1  for the denial or suspension of a license for failure to 
  2- 2  repay a student loan; to amend Code Section 33-23-22 of the 
  2- 3  Official Code of Georgia Annotated, relating to notice of 
  2- 4  suspension or revocation of the licenses of insurance agents 
  2- 5  and others, so as to provide for a specific hearing; to 
  2- 6  amend Code Section 43-1-19 of the Official Code of Georgia 
  2- 7  Annotated, relating to grounds for refusing to grant or 
  2- 8  revoking licenses by state examining boards, so as to 
  2- 9  provide for the denial or suspension of a license for 
  2-10  failure to repay a student loan; to amend Code Section 
  2-11  43-39A-14 of the Official Code of Georgia Annotated, 
  2-12  relating to the classification of real estate appraisers and 
  2-13  grounds for refusal, so as to provide for the denial or 
  2-14  suspension of an appraiser's license for failure to repay a 
  2-15  student loan; to amend Code Section 43-40-15 of the Official 
  2-16  Code of Georgia Annotated, relating to the granting, 
  2-17  revocation, or suspension of real estate licenses, so as to 
  2-18  include the failure to repay a student loan as a ground for 
  2-19  refusing to grant or for suspending licenses; to provide for 
  2-20  hearing and appeal procedures; to provide for related 
  2-21  matters; to provide an effective date; to repeal conflicting 
  2-22  laws; and for other purposes. 
 
  2-23       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  2-24                           SECTION 1. 
 
  2-25  Code Section 2-7-102 of the Official Code of Georgia 
  2-26  Annotated, relating to grounds for denial, suspension, and 
  2-27  revocation of various pesticide licenses, is amended by 
  2-28  adding at the end thereof a new subsection (d) to read as 
  2-29  follows: 
 
  2-30    "(d) The Commissioner shall suspend any pesticide 
  2-31    contractor's license or certified commercial pesticide 
  2-32    applicator's license or refuse to grant or renew either 
  2-33    license upon notice to the Commissioner by the Georgia 
  2-34    Higher Education Assistance Corporation that: 
 
  2-35      (1) The applicant for or holder of either such license 
  2-36      is a borrower in default who is not in satisfactory 
  2-37      repayment status as defined in Code Section 20-3-295; 
  2-38      and 
 
  2-39      (2) The hearings and appeals procedures provided in Code 
  2-40      Section 20-3-295, where applicable, shall be the only 
  2-41      such procedures required under this article." 
 
 
 
 
                                 -2- 
 
 
 
  3- 1                           SECTION 2. 
 
  3- 2  Chapter 1 of Title 7 of the Official Code of Georgia 
  3- 3  Annotated, relating to financial institutions, is amended by 
  3- 4  adding at the end of Code Section 7-1-707, relating to 
  3- 5  suspension of licenses of check cashers generally, a new 
  3- 6  subsection (d) to read as follows: 
 
  3- 7    "(d) The provisions of this Code section shall not apply 
  3- 8    when a license is denied or suspended as provided in Code 
  3- 9    Section 7-1-707.1." 
 
  3-10                           SECTION 3. 
 
  3-11  Said chapter is further amended by adding following Code 
  3-12  Section 7-1-707, relating to suspension of licenses of check 
  3-13  cashers generally, a new Code section to read as follows: 
 
  3-14    "7-1-707.1. 
 
  3-15    (a) As used in this Code section, the term: 
 
  3-16      (1) 'Agency' means the Georgia Higher Education 
  3-17      Assistance Corporation created in Code Section 20-3-263 
  3-18      which is responsible for administering a program of 
  3-19      guaranteed educational loans to eligible students and 
  3-20      eligible parents known as the Georgia Higher Education 
  3-21      Loan Program. 
 
  3-22      (2) 'Borrower' means an individual who borrowed a 
  3-23      guaranteed educational loan under the Georgia Higher 
  3-24      Education Loan Program. 
 
  3-25      (3) 'Default' means default as defined by federal law 
  3-26      under the Higher Education Act of 1965. 
 
  3-27      (4) 'Satisfactory repayment status' means the borrower 
  3-28      has agreed to repay the defaulted loan to the agency and 
  3-29      has made a payment in the most recent prior 60 days. 
 
  3-30    (b) The department shall suspend, as provided for in Code 
  3-31    Section 20-3-295, the license of any check casher upon 
  3-32    receipt of a record from the agency stating that such 
  3-33    licensee is a borrower in default who is not in 
  3-34    satisfactory repayment status. 
 
  3-35    (c) The department shall deny, as provided for in for Code 
  3-36    Section 20-3-295, the application or renewal of any 
  3-37    applicant or licensee upon receipt of a record from the 
  3-38    agency stating that such applicant or licensee is a 
  3-39    borrower in default who is not in satisfactory repayment 
  3-40    status. 
 
 
                                 -3- 
 
 
 
  4- 1    (d) Notwithstanding any other provisions of law, the 
  4- 2    hearings and appeals procedures provided for in Code 
  4- 3    Section 20-3-295, where applicable, shall be the only such 
  4- 4    procedures required to suspend a license or deny the 
  4- 5    issuance or renewal of an application for a license under 
  4- 6    this article." 
 
  4- 7                           SECTION 4. 
 
  4- 8  Said chapter is further amended by striking paragraph (a) of 
  4- 9  Code Section 7-1-1017, relating to the suspension or 
  4-10  revocation of licenses for mortgage lenders and mortgage 
  4-11  brokers, and inserting in lieu thereof the following: 
 
  4-12      "(a)(1) The department may suspend or revoke an original 
  4-13      or renewal license or registration on any ground on 
  4-14      which it might refuse to issue an original license or 
  4-15      registration or for a violation of any provision of this 
  4-16      article or any rule or regulation issued under this 
  4-17      article or for failure of the licensee or registrant to 
  4-18      pay, within 30 days after it becomes final, a judgment 
  4-19      recovered in any court within this state by a claimant 
  4-20      or creditor in an action arising out of the licensee's 
  4-21      or registrant's business in this state as a mortgage 
  4-22      lender or mortgage broker. 
 
  4-23      (2) In addition to the foregoing, where Where an 
  4-24      applicant or licensee has been found not in compliance 
  4-25      with an order for child support as provided in Code 
  4-26      Section 19-6-28.1 or 19-11-9.3, such action is 
  4-27      sufficient grounds for refusal of a license or 
  4-28      suspension of a license. In such actions, the hearing 
  4-29      and appeal procedures provided for in those Code 
  4-30      sections shall be the only such procedures required 
  4-31      under this article. 
 
  4-32      (3) Where an applicant or licensee has been found to be 
  4-33      a borrower in default as provided in Code Section 
  4-34      20-3-295, such action is sufficient grounds for refusal 
  4-35      of a license or suspension of a license.  In such 
  4-36      actions, the hearing and appeal procedures provided for 
  4-37      in Code Section 20-3-295 shall be the only such 
  4-38      procedures required under this article." 
 
  4-39                           SECTION 5. 
 
  4-40  Part 2 of Article 1 of Chapter 6 of Title 12 of the Official 
  4-41  Code of Georgia Annotated, relating to the practice of 
  4-42  professional forestry, is amended by adding immediately 
 
 
 
                                 -4- 
 
 
 
  5- 1  following Code Section 12-6-49.1, relating to denial or 
  5- 2  suspension of a license for noncompliance with a child 
  5- 3  support order, a new Code section to read as follows: 
 
  5- 4    "12-6-49.2. 
 
  5- 5    (a) As used in this Code section, the term: 
 
  5- 6      (1) 'Agency' means the Georgia Higher Education 
  5- 7      Assistance Corporation created in Code Section 20-3-263 
  5- 8      which is responsible for administering a program of 
  5- 9      guaranteed educational loans to eligible students and 
  5-10      eligible parents known as the Georgia Higher Education 
  5-11      Loan Program. 
 
  5-12      (2) 'Borrower' means an individual who borrowed a 
  5-13      guaranteed educational loan under the Georgia Higher 
  5-14      Education Loan Program. 
 
  5-15      (3) 'Default' means default as defined by federal law 
  5-16      under the Higher Education Act of 1965. 
 
  5-17      (4) 'Satisfactory repayment status' means the borrower 
  5-18      has agreed to repay the defaulted loan to the agency and 
  5-19      has made a payment in the most recent prior 60 days. 
 
  5-20    (b) The board shall suspend, as provided for in Code 
  5-21    Section 20-3-295, the license of any registered forester 
  5-22    upon receipt of a record from the agency stating that such 
  5-23    licensee is a borrower in default who is not in 
  5-24    satisfactory repayment status. 
 
  5-25    (c) The board shall deny the application for renewal, as 
  5-26    provided in for Code Section 20-3-295, of any applicant or 
  5-27    licensee upon receipt of a record from the agency stating 
  5-28    that such licensee is a borrower in default who is not in 
  5-29    satisfactory repayment status. 
 
  5-30    (d) Notwithstanding any other provisions of law, the 
  5-31    hearings and appeals procedures provided for in Code 
  5-32    Section 20-3-295, where applicable, shall be the only such 
  5-33    procedures required to suspend a license or deny the 
  5-34    issuance or renewal of an application for a license under 
  5-35    this part." 
 
  5-36                           SECTION 6. 
 
  5-37  Part 2 of Article 7 of Chapter 3 of Title 20 of the Official 
  5-38  Code of Georgia Annotated, the "Georgia Higher Education 
  5-39  Assistance Corporation Act," is amended by adding 
  5-40  immediately following Code Section 20-3-294, relating to 
 
 
 
                                 -5- 
 
 
 
  6- 1  operations reports by the corporation, a new Code section to 
  6- 2  read as follows: 
 
  6- 3    "20-3-295. 
 
  6- 4    (a) As used in this Code section, the term: 
 
  6- 5      (1) 'Agency' means the Georgia Higher Education 
  6- 6      Assistance Corporation created in Code Section 20-3-263 
  6- 7      which is responsible for administering a program of 
  6- 8      guaranteed educational loans to eligible students and 
  6- 9      eligible parents known as the Georgia Higher Education 
  6-10      Loan Program. 
 
  6-11      (2) 'Applicant' means any person applying for issuance 
  6-12      or renewal of a license. 
 
  6-13      (3) 'Borrower' means an individual who borrowed a 
  6-14      guaranteed educational loan under the Georgia Higher 
  6-15      Education Loan Program. 
 
  6-16      (4) 'Certified list' means a list provided by the agency 
  6-17      of the names of borrowers who default on guaranteed 
  6-18      educational loans made under the Georgia Higher 
  6-19      Education Loan Program and are not in a satisfactory 
  6-20      repayment status. Provided however the term default 
  6-21      shall not include any obligation which is restructured 
  6-22      or which is discharged under hardship provisions under 
  6-23      the Federal Bankruptcy Code. 
 
  6-24      (5) 'Default' means default as defined by federal law 
  6-25      under the Higher Education Act of 1965. 
 
  6-26      (6) 'License' means a certificate, permit, registration, 
  6-27      or any other authorization issued by any licensing 
  6-28      entity that allows a person to engage in a profession, 
  6-29      business, or occupation. 
 
  6-30      (7) 'Licensee' means any person holding a license. 
 
  6-31      (8) 'Licensing entity' means any state agency, 
  6-32      department, or board of this state which issues or 
  6-33      renews any license, certificate, permit, or registration 
  6-34      to authorize a person to engage in a profession, 
  6-35      business, or occupation, including those under Article 3 
  6-36      of Chapter 7 of Title 2, the 'Georgia Pesticide Use and 
  6-37      Application Act of 1976';   Article 13 of Chapter 1 of 
  6-38      Title 7, relating to mortgage lenders and mortgage 
  6-39      brokers; Part 2 of Chapter 6 of Title 12, relating to 
  6-40      foresters; Part 3 of Chapter 4 of Title 26, relating to 
  6-41      pharmacists; Chapter 23 of Title 33, relating to 
 
 
                                 -6- 
 
 
 
  7- 1      insurance agents, counselors, and other personnel; 
  7- 2      Chapter 1 of Title 43, relating to professions and 
  7- 3      businesses; Chapter 39A of Title 43, relating to real 
  7- 4      estate appraisers; or Chapter 40 of Title 43, relating 
  7- 5      to real estate brokers and salespersons. 
 
  7- 6      (9) 'Satisfactory repayment status' means the borrower 
  7- 7      has agreed to repay the defaulted loan to the agency and 
  7- 8      has made a payment in the most recent prior 60 days. 
 
  7- 9    (b) The agency shall maintain a state-wide certified list 
  7-10    of borrowers in default who have not made satisfactory 
  7-11    arrangements to ensure voluntary repayment. The certified 
  7-12    list must be updated on a monthly basis.  The agency shall 
  7-13    submit to each licensing entity a certified list with the 
  7-14    name, social security number, if known, date of birth, and 
  7-15    last known address of each person on the list. 
 
  7-16    (c) On or before January 1, 1999, all licensing entities 
  7-17    shall implement procedures to accept and process the list 
  7-18    provided by the agency in accordance with this Code 
  7-19    section.  Such procedures should be substantially similar 
  7-20    if not identical to those implemented to comply with Code 
  7-21    Section 19-11-9.3. 
 
  7-22    (d) Promptly after receiving the certified list from the 
  7-23    agency, all licensing entities shall determine whether an 
  7-24    applicant or licensee is on the most recent certified 
  7-25    list.  If an applicant or licensee is on the certified 
  7-26    list, the licensing entity shall immediately notify the 
  7-27    agency. That notification shall include the applicant's or 
  7-28    licensee's last known mailing address on file with the 
  7-29    licensing entity. 
 
  7-30    (e) After receiving notice from the licensing entity of 
  7-31    applicants or licensees who are on the certified list, the 
  7-32    agency shall immediately notify those individuals as 
  7-33    specified in subsection (f) of this Code section of the 
  7-34    agency's intent to request that all pertinent licensing 
  7-35    entities suspend all licenses or withhold issuance or 
  7-36    renewal of any license. 
 
  7-37    (f) Notice for purposes of this Code section shall be 
  7-38    initiated by the agency.  Notice to the borrower in 
  7-39    default shall include the address and telephone number of 
  7-40    the agency and shall inform the borrower in default of the 
  7-41    agency's intent to submit the borrower's name to the 
  7-42    relevant licensing entities and to request that the 
  7-43    relevant licensing entities withhold issuance or renewal 
 
 
                                 -7- 
 
 
 
  8- 1    of the license or suspend the license. The notice must 
  8- 2    also inform the borrower in default of the following: 
 
  8- 3      (1) The borrower in default has 20 days from the date of 
  8- 4      mailing to enter into a satisfactory repayment status. 
  8- 5      If the borrower in default fails to enter into a 
  8- 6      satisfactory repayment status or  does not respond 
  8- 7      within that time, the agency will send notice to the 
  8- 8      appropriate licensing entities and request that the 
  8- 9      licenses be suspended or the licensure applications be 
  8-10      denied; 
 
  8-11      (2) The borrower in default may request an 
  8-12      administrative hearing and judicial review of that 
  8-13      hearing under subsection (g) of this Code section.  A 
  8-14      request for a hearing must be made in writing and must 
  8-15      be received by the agency within 20 days of service of 
  8-16      notice; and 
 
  8-17      (3) If the borrower in default requests a hearing within 
  8-18      20 days of service, the agency shall stay all action 
  8-19      pending the hearing and any appeals. 
 
  8-20    (g) All borrowers in default subject to the sanctions 
  8-21    imposed in this Code section shall have the right to a 
  8-22    hearing before an administrative law judge of the Office 
  8-23    of State Administrative Hearings pursuant to Article 2 of 
  8-24    Chapter 13 of Title 50.  A borrower in default who 
  8-25    requests a hearing within the time prescribed in 
  8-26    subsection (f) of this Code section shall have the right 
  8-27    to a hearing.  The hearing shall be conducted as provided 
  8-28    in Article 2 of Chapter 13 of Title 50 within 45 days 
  8-29    after such demand is received.  The only issues at the 
  8-30    hearing will be whether: 
 
  8-31      (1) There is an outstanding guaranteed educational loan; 
 
  8-32      (2) The licensee or applicant is the borrower named in 
  8-33      the loan; 
 
  8-34      (3) The borrower is or is not in default; 
 
  8-35      (4) The borrower has entered into a satisfactory 
  8-36      repayment status; 
 
  8-37      (5) The loan obligation is not enforceable; and 
 
  8-38      (6) The loan has been restructured or the loan has been 
  8-39      discharged under hardship provisions under the Federal 
  8-40      Bankruptcy Code. 
 
 
 
                                 -8- 
 
 
 
  9- 1    With respect to the issues listed in this subsection, 
  9- 2    evidence relating to the ability and willingness of a 
  9- 3    borrower to repay the loan shall be considered in making 
  9- 4    the decision either to suspend a license or deny the 
  9- 5    issuance or renewal of a license under this Code section. 
  9- 6    The administrative law judge shall be authorized to enter 
  9- 7    into an agreement or enter an order requiring periodic 
  9- 8    payments, and, in each event, the administrative law judge 
  9- 9    shall be authorized to issue a release for the borrower to 
  9-10    obtain each license or licenses. 
 
  9-11    (h) The decision at the hearing shall be subject to appeal 
  9-12    and judicial review pursuant to Article 2 of Chapter 13 of 
  9-13    Title 50 but only as to those issues referred to in 
  9-14    subsection (g) of this Code section. Notwithstanding any 
  9-15    hearing requirements for suspension and denials within 
  9-16    each licensing entity, the hearing and appeal procedures 
  9-17    outlined in this Code section shall be the only hearing 
  9-18    required to suspend a license or deny the issuance or 
  9-19    renewal of a license under this Code section. 
 
  9-20    (i) The agency shall prescribe release forms for its use. 
  9-21    When the borrower is determined to be in satisfactory 
  9-22    repayment status or is determined to be not in 
  9-23    satisfactory repayment status but has been determined in a 
  9-24    hearing pursuant to subsection (g) of this Code section to 
  9-25    be unable to comply with the terms of the loan agreement 
  9-26    or to be not willfully out of compliance with such loan 
  9-27    agreement, the agency shall mail to the borrower in 
  9-28    default and the appropriate licensing entity a notice of 
  9-29    release stating such determination. The receipt of a 
  9-30    notice of release shall serve to notify the borrower in 
  9-31    default and the licensing entity that, for the purpose of 
  9-32    this Code section, he or she is in satisfactory repayment 
  9-33    status, and the licensing entity shall promptly thereafter 
  9-34    issue or reinstate the license, unless the agency, 
  9-35    pursuant to subsection (b) of this Code section, certifies 
  9-36    subsequent to the issuance of a notice of release that the 
  9-37    borrower in default is once again not in satisfactory 
  9-38    repayment status. 
 
  9-39    (j) The agency may enter into interagency agreements with 
  9-40    state agencies that have responsibility for the 
  9-41    administration of licensing entities as necessary to 
  9-42    implement this Code section.  Those agreements shall 
  9-43    provide for the receipt by other state agencies and boards 
  9-44    of federal funds to cover that portion of costs allowable 
 
 
 
                                 -9- 
 
 
 
 10- 1    under federal law and regulation and incurred by state 
 10- 2    agencies and boards in implementing this Code section. 
 
 10- 3    (k) Any licensing entity receiving an inquiry as to the 
 10- 4    license status of an applicant who has had an application 
 10- 5    for issuance or renewal of a license denied under this 
 10- 6    Code section shall respond only that the license was 
 10- 7    suspended or the licensure application was denied pursuant 
 10- 8    to this Code section. 
 
 10- 9    (l) The agency shall, and the licensing entities as 
 10-10    appropriate may, adopt regulations necessary to implement 
 10-11    this Code section." 
 
 10-12                           SECTION 7. 
 
 10-13  Code Section 26-4-78 of the Official Code of Georgia 
 10-14  Annotated, relating to the suspension or revocation of 
 10-15  licenses for pharmacists, is amended by adding a new 
 10-16  subsection (d) at the end thereof to read as follows: 
 
 10-17    "(d) The board shall have the power to suspend any license 
 10-18    issued under this part when such holder is a borrower in 
 10-19    default who is not in satisfactory repayment status as 
 10-20    provided in Code Section 20-3-295.  The board shall also 
 10-21    have the power to deny the application for issuance or 
 10-22    renewal of a license under this part when such applicant 
 10-23    is a borrower in default who is not in satisfactory 
 10-24    repayment status as provided in Code Section 20-3-295. The 
 10-25    hearings and appeals procedures provided for in Code 
 10-26    Section 20-3-295 shall be the only such procedures 
 10-27    required to suspend or deny any license issued under this 
 10-28    part." 
 
 10-29                           SECTION 8. 
 
 10-30  Code Section 33-23-21 of the Official Code of Georgia 
 10-31  Annotated, relating to grounds for refusal, suspension, or 
 10-32  revocation of the licenses of insurance agents and others, 
 10-33  is amended by adding at the end thereof a new paragraph (20) 
 10-34  to read as follows: 
 
 10-35      "(20) Is a borrower in default who is not in 
 10-36      satisfactory repayment status as defined by Code Section 
 10-37      20-3-295; for violations of this paragraph only, any 
 10-38      hearing and appeal procedures conducted pursuant to Code 
 10-39      Section 20-3-295 shall be the only such procedures 
 10-40      required to suspend, deny, or revoke any license under 
 10-41      this title." 
 
 
 
                                 -10- 
 
 
 
 11- 1                           SECTION 9. 
 
 11- 2  Code Section 33-23-22 of the Official Code of Georgia 
 11- 3  Annotated, relating to notice of suspension or revocation of 
 11- 4  the licenses of insurance agents and others, is amended by 
 11- 5  striking subsection (a) in its entirety and inserting in 
 11- 6  lieu thereof the following: 
 
 11- 7    "(a) Any license, other than a probationary license, may 
 11- 8    be suspended or revoked as provided by Code Section 
 11- 9    33-23-21, and the Commissioner shall give notice of such 
 11-10    action to the applicant for or holder of the license and 
 11-11    any insurer or agent whom the applicant or licensee 
 11-12    represents or who desires that the applicant or licensee 
 11-13    be licensed.  The procedure for conduct of hearings set 
 11-14    forth in Chapter 2 of this title shall be followed in all 
 11-15    cases except those cases pursuant to paragraph (19) or 
 11-16    (20) of Code Section 33-23-21 which shall only require the 
 11-17    hearings provided for in that either paragraph." 
 
 11-18                          SECTION 10. 
 
 11-19  Code Section 43-1-19 of the Official Code of Georgia 
 11-20  Annotated, relating to grounds for refusing to grant or 
 11-21  revoking licenses by state examining boards, is amended in 
 11-22  subsection (a) by striking the word "or" at the end of 
 11-23  paragraph (10), by striking the period and inserting "; or" 
 11-24  at the end of paragraph (11), and by adding a new paragraph 
 11-25  (12) to read as follows: 
 
 11-26      "(12) Failed to enter into satisfactory repayment status 
 11-27      and is a borrower in default as defined by Code Section 
 11-28      20-3-295; it shall be incumbent upon the applicant or 
 11-29      licensee to supply a notice of release to the board from 
 11-30      the Georgia Higher Education Assistance Corporation 
 11-31      indicating that the applicant or licensee has entered 
 11-32      into satisfactory repayment status so that a license may 
 11-33      be issued or granted if all other conditions for 
 11-34      licensure are met." 
 
 11-35                          SECTION 11. 
 
 11-36  Code Section 43-39A-14 of the Official Code of Georgia 
 11-37  Annotated, relating to the classification of real estate 
 11-38  appraisers and grounds for refusal, is amended by adding at 
 11-39  the end thereof a new subsection (k) to read as follows: 
 
 11-40    "(k) Where an applicant or licensee has been found to be a 
 11-41    borrower in default who is not in satisfactory repayment 
 11-42    status as provided in Code Section 20-3-295, such  finding 
 
 
                                 -11- 
 
 
 
 12- 1    is sufficient grounds for refusal of a license or 
 12- 2    suspension of a license.  For purposes of this subsection, 
 12- 3    the hearing and appeal procedures provided for in Code 
 12- 4    Section 20-3-295 shall be the only such procedures 
 12- 5    required under this article." 
 
 12- 6                          SECTION 12. 
 
 12- 7  Code Section 43-40-15 of the Official Code of Georgia 
 12- 8  Annotated, relating to the granting, revocation, or 
 12- 9  suspension of real estate licenses, is amended by adding at 
 12-10  the end thereof the following subsection (l): 
 
 12-11    "(l) Where an applicant or licensee has been found to be a 
 12-12    borrower in default who is not in satisfactory repayment 
 12-13    status as provided in Code Section 20-3-295, such status 
 12-14    is sufficient grounds for refusal of a license or 
 12-15    suspension of a license.  In such cases, the hearing and 
 12-16    appeal procedures provided for in Code Section 20-3-295 
 12-17    shall be the only such procedures required under this 
 12-18    chapter." 
 
 12-19                          SECTION 13. 
 
 12-20  This Act shall become effective on July 1, 1998. 
 
 12-21                          SECTION 14. 
 
 12-22  All laws and parts of laws in conflict with this Act are 
 12-23  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -12- 

Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 05/04/98

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