HOUSE AMENDED
PRIOR PRINTER'S NOS. 938, 1579 PRINTER'S NO. 1765
No. 794 Session of 1987
INTRODUCED BY HESS, WILT, REIBMAN, RHOADES, LINCOLN, ROCKS,
HOPPER AND HANKINS, MAY 5, 1987
AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, FEBRUARY 3, 1988
AN ACT
1 Amending the act of August 7, 1963 (P.L.549, No.290), entitled,
2 as amended, "An act creating the Pennsylvania Higher
3 Education Assistance Agency; defining its powers and duties;
4 conferring powers and imposing duties on the Governor,
5 President Pro Tempore of the Senate, Speaker of the House of
6 Representatives, Superintendent of Public Instruction and the
7 Department of Auditor General; and making appropriations,"
8 further providing for administrative loan collection process
9 AND FOR AGGREGATE INDEBTEDNESS. <--
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Section 4.3(i) of the act of August 7, 1963
13 (P.L.549, No.290), referred to as the Pennsylvania Higher
14 Education Assistance Agency Act, added April 29, 1982 (P.L.365,
15 No.102), is amended to read:
16 Section 4.3. Administrative Loan Collection Process.--* * *
17 (i) After an order of default has been entered by the board
18 of directors or the court and the time for appeal has expired,
19 the agency may execute upon the wages, salaries or commissions
20 in the hands of an employer or any other person including the
1 debtor when self-employed in order to effect the repayment of
2 any sums due to the agency as determined by the provisions of
3 this act. An employer shall include any person, partnership,
4 association, corporation, institution, governmental body, unit
5 or agency, school district or municipality, or any other entity
6 employing one or more persons for a salary, wage, commission or
7 other compensation. Execution shall comply with the following:
8 (1) The agency shall initiate such action by sending to the
9 debtor's last known address notice of its intent and to the
10 employer a notice of execution upon wages and upon receipt of
11 such notice, the employer shall certify to the agency the amount
12 of wages, salary, commissions or other compensation earned by
13 the debtor. The employer shall pay to the agency such percentage
14 of that amount as the agency demands, not to exceed ten per cent
15 of the wages, salary, commissions or other compensation paid to
16 the debtor during a given pay period, on a timely basis, but not
17 less than once a month or over an extended period if agreed to
18 by the agency. If the agency has instituted a notice of
19 execution upon wages to recover money owed the agency, the
20 agency may assess a civil penalty, not to exceed the amount of
21 the notice of execution, against an employer if the employer
22 does any of the following:
23 (i) Fails to pay the agency the amount due within the
24 prescribed amount and limits of time.
25 (ii) Dismisses the responsible debtor from its employment
26 because of the filing of the notice of execution.
27 (iii) Takes disciplinary action against the responsible
28 debtor because of the filing of the notice of execution.
29 (2) The agency may execute upon assets or property of a
30 borrower by writ of execution or such other process as may be
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1 necessary or proper to carry into effect the judgment entered
2 upon any order of the board. In the case of a writ of execution
3 upon wages to recover moneys owed the agency, failure of an
4 employer to pay to the agency the amount due within the
5 prescribed amount and limits of time shall place the employer in
6 contempt of the court issuing such writ of execution.
7 (3) Nothing [herein] in this subsection shall deny to any
8 debtor the rights afforded debtors under Federal and State
9 exemption laws.
10 * * *
11 SECTION 2. SECTION 5.1(A.1) OF THE ACT, ADDED DECEMBER 29, <--
12 1982 (P.L.1450, NO.330), IS AMENDED TO READ:
13 SECTION 5.1. BONDS, NOTES AND OTHER INDEBTEDNESS.--* * *
14 (A.1) THE PROCEEDS REALIZED FROM THE SALE OF NOTES, BONDS OR
15 SIMILAR INDEBTEDNESS SHALL BE USED FOR THE PURPOSE OF
16 PURCHASING, MAKING OR GUARANTEEING LOANS TO STUDENTS OR PARENTS,
17 OR TO LENDING INSTITUTIONS OR POSTSECONDARY INSTITUTIONS FOR THE
18 PURPOSE OF STUDENT LOANS AND THE COST OF ISSUANCE OF THE
19 INDEBTEDNESS, THE ESTABLISHMENT OF RESERVE FUNDS FROM THE
20 PROCEEDS OF THE INDEBTEDNESS, ADMINISTRATION OF THE LOANS
21 PURCHASED, MADE OR GUARANTEED AND OTHER COSTS ASSOCIATED WITH
22 LOANS PURCHASED, MADE OR GUARANTEED WITH FUNDS FROM THE PROCEEDS
23 OF THE INDEBTEDNESS. THE AGGREGATE PRINCIPAL AMOUNT OF BONDS,
24 NOTES AND SIMILAR EVIDENCES OF INDEBTEDNESS OF THE AGENCY SHALL
25 NOT EXCEED [TEN] TWENTY PER CENT OF THE TOTAL OF LOANS
26 PURCHASED, MADE OR GUARANTEED [OR MADE] BY THE AGENCY.
27 * * *
28 Section 2 3. This act shall take effect in 60 days. <--
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