SENATE COMMERCE COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 1897

with committee amendments

STATE OF NEW JERSEY

DATED: JANUARY 14, 1997

      The Senate Commerce Committee reports favorably and with committee amendments Assembly Bill No. 1897 (1R).

      This bill, as amended by the committee, provides that a person who is licensed by the Director of the Division of Consumer Affairs or by the various professional and occupational boards located within the Division of Consumer Affairs shall have that license suspended by the director or board by which that person is regulated when the director or board is notified by a lender or guarantor of nonpayment or default of a State or federal direct or guaranteed education loan by that person. The bill further provides that such person's license shall not be reinstated until the person provides the director or board by which that person is licensed a written release issued by the lender or guarantor stating that the person is making payments on the loan in accordance with a repayment agreement approved by the lender or guarantor.

      In addition, the bill provides that the Supreme Court of the State of New Jersey may also suspend the licenses of attorneys who fail to repay student loans.