ASSEMBLY CONSUMER AFFAIRS AND REGULATED PROFESSIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1897

STATE OF NEW JERSEY

DATED: JUNE 10, 1996

      The Assembly Consumer Affairs and Regulated Professions Committee reports favorably Assembly Bill No. 1897.

      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 provides that such professional's license shall not be reissued until the person provides the board by which that professional is licensed 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.