ASSEMBLY, No. 1897

STATE OF NEW JERSEY

INTRODUCED MAY 6, 1996

By Assemblymen KAVANAUGH and MORAN

An Act suspending certain professional licenses for failure to repay student loans and supplementing chapters 6 and 9 of Title 45 of the Revised Statutes and P.L.1989, c.153 (C.45:9-41.17 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. The State Board of Medical Examiners shall suspend, after a hearing, the license to practice medicine and surgery of any person who has been certified by a lending institution and reported to the board for nonpayment or default of a State or federally guaranteed educational loan. The person's license shall not be reissued until the person provides the board a written release issued by the lending institution stating that the person is making payments on the loan in accordance with a repayment agreement approved by the lending institution. If the person has continued to meet all other requirements for licensure during the suspension, reinstatement shall be automatic upon receipt of the notice and payment of any reinstatement fee the board may impose.

    2. The State Board of Chiropractic Examiners shall suspend, after a hearing, the license to practice chiropractic of any person who has been certified by a lending institution and reported to the board for nonpayment or default of a State or federally guaranteed educational loan. The person's license shall not be reissued until the person provides the board a written release issued by the lending institution stating that the person is making payments on the loan in accordance with a repayment agreement approved by the lending institution. If the person has continued to meet all other requirements for licensure during the suspension, reinstatement shall be automatic upon receipt of the notice and payment of any reinstatement fee the board may impose.

    3. The New Jersey State Board of Dentistry shall suspend, after a hearing, the license to practice dentistry of any person who has been certified by a lending institution and reported to the board for nonpayment or default of a State or federally guaranteed educational loan. The person's license shall not be reissued until the person provides the board a written release issued by the lending institution stating that the person is making payments on the loan in accordance with a repayment agreement approved by the lending institution. If the person has continued to meet all other requirements for licensure during the suspension, reinstatement shall be automatic upon receipt of the notice and payment of any reinstatement fee the board may impose.

    4. This act shall take effect on the 60th day after enactment.

STATEMENT

    This bill provides that a professional who is licensed as a physician, chiropractor or dentist shall have that license suspended by the board by which that professional is regulated when the board is notified by a lending institution of nonpayment or default of a State or federally guaranteed educational loan by that professional. The bill further requires the borrower of that loan to establish an approved payment plan before the license can be reinstated.

Provides for suspension of certain professional licenses for failure to repay student loans.