§436C-2  Professional and vocational license
sanction for default of student loan, student loan repayment contract, or
scholarship contract.  (a)  In addition to any other acts or conditions
provided by law, the licensing authority shall not renew or reinstate, or shall
deny or suspend the license or application of any person who has been certified
by an administering entity as being:



(1)  In default or breach of any obligation under any
student loan, student loan repayment contract, or scholarship contract that
financed the licensee's or applicant's education; or



(2)  At least sixty days past due with payments under
a repayment plan.



The licensing
authority shall not act on the certification of an administering entity unless
it is based upon a court judgment that complies with section 436C-3.



(b)  The licensing authority in receipt of a
certification pursuant to chapter 436C shall, as applicable, and without
further review or hearing:



(1)  Suspend the license;



(2)  Deny the application or request for renewal of
the license; or



(3)  Deny the request for reinstatement of the
license,



and unless otherwise provided by law, shall renew,
reinstate, or grant the license only upon receipt of an authorization from the
administering entity stating that the person is making payments or taking other
action satisfying the terms of the student loan, student loan repayment
contract, or scholarship contract and is no longer in default or breach of the
loan or contract.



(c)  Any licensing fees paid prior to the
denial, suspension, or revocation of a license under the licensing laws shall
be forfeited.  The licensing authority may charge fees for reinstating a
license and to cover the costs of administering this chapter.



(d)  This chapter shall not apply to an
individual against whom a court order is entered in connection with the default
or breach in the nature of a garnishment process or other form of court-ordered
repayment. [L 2002, c 226, pt of §2; am L 2003, c 133, §10]