PRINTER'S NO. 4042
No. 2904 Session of 1996
INTRODUCED BY STURLA, SCHULER, STRITTMATTER, HESS, OLASZ,
SANTONI, DENT, LUCYK, MANDERINO, STABACK, SAYLOR, MUNDY,
FAJT, HERSHEY, HALUSKA, TRAVAGLIO, E. Z. TAYLOR, EGOLF,
CLARK, DeWEESE, KIRKLAND, NAILOR, CURRY, DeLUCA, COLAIZZO,
READSHAW, BOSCOLA, BELARDI, VANCE, ITKIN, GODSHALL, LaGROTTA,
ROONEY, BELFANTI, VEON, BAKER, ROBERTS, RUBLEY, STEELMAN,
FAIRCHILD, SHANER, TIGUE, BATTISTO, CAPPABIANCA, MERRY, RAMOS
AND GORDNER, SEPTEMBER 26, 1996
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE,
SEPTEMBER 26, 1996
AN ACT
1 Amending the act of April 9, 1929 (P.L.177, No.175), entitled
2 "An act providing for and reorganizing the conduct of the
3 executive and administrative work of the Commonwealth by the
4 Executive Department thereof and the administrative
5 departments, boards, commissions, and officers thereof,
6 including the boards of trustees of State Normal Schools, or
7 Teachers Colleges; abolishing, creating, reorganizing or
8 authorizing the reorganization of certain administrative
9 departments, boards, and commissions; defining the powers and
10 duties of the Governor and other executive and administrative
11 officers, and of the several administrative departments,
12 boards, commissions, and officers; fixing the salaries of the
13 Governor, Lieutenant Governor, and certain other executive
14 and administrative officers; providing for the appointment of
15 certain administrative officers, and of all deputies and
16 other assistants and employes in certain departments, boards,
17 and commissions; and prescribing the manner in which the
18 number and compensation of the deputies and all other
19 assistants and employes of certain departments, boards and
20 commissions shall be determined," providing for revocation,
21 suspension or nonissuance of professional licenses.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 Section 1. The act of April 9, 1929 (P.L.177, No.175), known
1 as The Administrative Code of 1929, is amended by adding a
2 section to read:
3 Section 531. Revocation, Suspension or Nonissuance of
4 Professional Licenses.--(a) Every Commonwealth agency that
5 issues a license or certificate in a profession or occupation
6 shall insure that no authorization is issued or renewed to a
7 debtor who has defaulted on student loans and has not made
8 satisfactory repayment arrangements or payments are not being
9 garnished when the individual has the financial ability, as
10 determined by the Pennsylvania Higher Education Assistance
11 Agency (PHEAA), based on available financial information, to
12 comply with the repayment terms established by PHEAA. The
13 licensing authority shall notify PHEAA of the name, date of
14 birth, Social Security number, Federal identification number or
15 any other information required by PHEAA of all individuals who
16 are seeking to apply for or renew a professional license or
17 certificate. PHEAA shall give notice to the licensing authority,
18 within thirty (30) days of receipt of the information from the
19 licensing authority, of any license or certificate application
20 or renewal which shall not be issued. After completion of the
21 procedures set forth in section 4.3 of the act of August 7, 1963
22 (P.L.549, No.290), referred to as the Pennsylvania Higher
23 Education Assistance Agency Act, a license or certificate may be
24 revoked, suspended or not issued. PHEAA shall furnish notice as
25 part of the summary of the statement of claim or by a separate
26 written notification to a borrower that nonpayment on a
27 defaulted student loan may result in revocation, suspension or
28 nonissuance of the borrower's occupational or professional
29 license or certificate. The licensing authority shall issue or
30 reinstate the license if PHEAA provides written notice of
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1 approval to the licensing authority.
2 (b) All actions of the licensing authority shall be taken
3 subject to the right of notice, hearing and adjudication and the
4 right of appeal therefrom in accordance with 2 Pa.C.S. (relating
5 to administrative law and procedure).
6 (c) The Pennsylvania Supreme Court may insure that no
7 authorization to practice law is issued or renewed to any debtor
8 who has defaulted on student loans and has not made satisfactory
9 repayment arrangements or payments are not being garnished when
10 the individual has the financial ability, as determined by
11 PHEAA, to comply with the repayment terms established by PHEAA.
12 The Supreme Court may provide by court rule that nonpayment on a
13 defaulted student loan may result in nonissuance, disbarment or
14 license suspension of the license of any person who has been
15 certified by PHEAA to be in default. After completion of the
16 procedures set forth in section 4.3 of the Pennsylvania Higher
17 Education Assistance Act, a license may be revoked, suspended or
18 not issued. PHEAA shall furnish notice as part of the summary of
19 the statement of claim or by a separate written notification to
20 a borrower that nonpayment on a defaulted student loan may
21 result in nonissuance, disbarment or license suspension. The
22 Supreme Court may reinstate the person when provided with a
23 written release issued by PHEAA stating that the person is
24 making payments on the loan in accordance with a repayment
25 agreement approved by PHEAA.
26 Section 2. This act shall take effect in 60 days.
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