First Regular Session

Sixty-first General Assembly

LLS NO. 97­0238.01 MTJ HOUSE BILL 97­1167

STATE OF COLORADO

BY REPRESENTATIVE Clarke

EDUCATION

A BILL FOR AN ACT

CONCERNING THE LICENSING OF HEALTH PROFESSIONALS WHO HAVE DEFAULTED ON STUDENT LOANS.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Amends licensing and registration provisions for the following health professionals to include restrictions on licensing or imposition of disciplinary sanctions for the nonpayment of student loan debts:

Pharmacists/Pharmacy Interns (Section 1);

Podiatrists (Section 2);

Chiropractors (Section 3);

Dentists/Dental Hygienists (Section 4);

Medical Practitioners (Section 5);

Optometrists (Section 6).

Requires the student loan division of the department of higher education to cooperate with the department of regulatory agencies and the licensing boards for the professions named above in developing an information reporting system to identify loan defaulters. Authorizes the division to provide identifying information to the licensing agencies.

Requires certain licensing agencies to revoke, suspend, not renew, and deny licenses to persons who are in default of student loan and service obligations. Provides for a process to petition for reinstatement, renewal, or reconsideration of the refusal to issue a license. Requires the department of regulatory agencies, the licensing agencies, and the student loan division to cooperate with the federal government in developing an information reporting system to identify licensees who are in default of student loan and service obligations.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1. 12­22­125 (2) (a), Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBPARAGRAPH to read:

12­22­125.  Licenses or registrations may be denied, suspended, or revoked. (2) (a)  The board may deny, suspend, or revoke any license to practice as a pharmacist or pharmacy intern, after a hearing held in accordance with the provisions of this section, upon proof that the licensee:

(VI)  HAS FAILED, WITHOUT JUST CAUSE, TO REPAY AS AGREED ANY LOAN OR OTHER REPAYMENT OBLIGATION, INCLUDING A SERVICE OBLIGATION, LEGALLY INCURRED BY THE LICENSEE TO FUND THE LICENSEE'S EDUCATION OR TRAINING AS A PHARMACIST OR PHARMACY INTERN.

SECTION 2. 12­32­107 (3), Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

12­32­107.  Issuance, revocation, or suspension of license ­ probation ­ immunity in professional review. (3)  "Unprofessional conduct" as used in this article means:

(ff)  FAILURE, WITHOUT JUST CAUSE, TO REPAY AS AGREED ANY LOAN OR OTHER REPAYMENT OBLIGATION, INCLUDING A SERVICE OBLIGATION, LEGALLY INCURRED BY THE LICENSEE TO FUND THE LICENSEE'S EDUCATION OR TRAINING AS A PODIATRIST.

SECTION 3. 12­33­117 (1), Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

12­33­117.  Discipline of licensees ­ letters of admonition, suspension, revocation, denial, and probation ­ grounds. (1)  Upon any of the following grounds, the board may issue a letter of admonition to a licensee or may revoke, suspend, deny, refuse to renew, or impose conditions on such licensee's license:

(dd)  FAILING, WITHOUT JUST CAUSE, TO REPAY AS AGREED ANY LOAN OR OTHER REPAYMENT OBLIGATION, INCLUDING A SERVICE OBLIGATION, LEGALLY INCURRED BY THE LICENSEE TO FUND THE LICENSEE'S EDUCATION OR TRAINING AS A CHIROPRACTOR.

SECTION 4. 12­35­118 (1), Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

12­35­118.  Causes for denial of issuance or renewal ­ suspension or revocation of licenses ­ other disciplinary action ­ unprofessional conduct defined ­ immunity in professional review. (1)  The board may deny the issuance or renewal of, suspend for a specified time period, or revoke any license provided for by this article or may reprimand, censure, or place on probation any licensed dentist or dental hygienist after notice and hearing, which may be conducted by an administrative law judge, pursuant to the provisions of article 4 of title 24, C.R.S., or it may issue a letter of admonition without a hearing (except that any licensed dentist or dental hygienist to whom such a letter of admonition is sent may, within thirty days after the date of the mailing of such letter by the board, request in writing to the board a formal hearing thereon, and the letter of admonition shall be deemed vacated, and the board shall, upon such request, hold such a hearing) for any of the following causes:

(gg)  FAILING, WITHOUT JUST CAUSE, TO REPAY AS AGREED ANY LOAN OR OTHER REPAYMENT OBLIGATION, INCLUDING A SERVICE OBLIGATION, LEGALLY INCURRED BY THE LICENSEE TO FUND THE LICENSEE'S EDUCATION OR TRAINING AS A DENTIST OR DENTAL HYGIENIST.

SECTION 5. 12­36­117 (1), Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

12­36­117.  Unprofessional conduct. (1)  "Unprofessional conduct" as used in this article means:

(jj)  FAILING, WITHOUT JUST CAUSE, TO REPAY AS AGREED ANY LOAN OR OTHER REPAYMENT OBLIGATION, INCLUDING A SERVICE OBLIGATION, LEGALLY INCURRED BY THE LICENSEE TO FUND THE LICENSEE'S PROFESSIONAL EDUCATION OR TRAINING.

SECTION 6. 12­40­118 (1), Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

12­40­118.  Unprofessional conduct defined. (1)  The term "unprofessional conduct", as used in this article, means:

(mm)  FAILING, WITHOUT JUST CAUSE, TO REPAY AS AGREED ANY LOAN OR OTHER REPAYMENT OBLIGATION, INCLUDING A SERVICE OBLIGATION, LEGALLY INCURRED BY THE LICENSEE TO FUND THE LICENSEE'S EDUCATION OR TRAINING AS AN OPTOMETRIST.

SECTION 7. Part 1 of article 3.1 of title 23, Colorado Revised Statutes, 1995 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION to read:

23­3.1­113. Loan default ­ notification of licensing agency ­ authorization. THE DIVISION SHALL COOPERATE WITH THE DEPARTMENT OF REGULATORY AGENCIES AND THE LICENSING AGENCIES LISTED IN SECTION 24­4­104.5, C.R.S., AND WITH THE FEDERAL GOVERNMENT TO DEVELOP AND IMPLEMENT THE INFORMATION REPORTING SYSTEM DESCRIBED IN THAT SECTION. THE DIVISION MAY PROVIDE ALL IDENTIFYING INFORMATION THAT THE DIVISION IS AUTHORIZED TO PROVIDE CONCERNING PERSONS IN DEFAULT, CONSISTENT WITH STATE AND FEDERAL LAW, TO SUCH LICENSING AGENCIES.

SECTION 8. Article 4 of title 24, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION to read:

24­4­104.5. Licenses ­ health care professionals ­ default on student loans ­ information reporting system. (1)  AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a)  "DEFAULT" MEANS:

(I)  FOR A STUDENT LOAN OR STUDENT LOAN REPAYMENT AGREEMENT, THAT THE AGENCY GUARANTEEING THE LOAN HAS DECLARED THE LOAN IN DEFAULT FOR NONPAYMENT OR LATE PAYMENT;

(II)  FOR A SERVICE OBLIGATION, THAT THE AGENCY OVERSEEING THE SERVICE PROGRAM HAS DECLARED THE OBLIGATION IN DEFAULT FOR FAILURE TO FULFILL THE SERVICE OBLIGATION.

(b)  "GUARANTY AGENCY" MEANS THE STUDENT LOAN DIVISION, CREATED PURSUANT TO SECTION 23­3.1­103, C.R.S., OR ANY OTHER STATE OR FEDERAL AGENCY THAT GUARANTEES STUDENT LOANS.

(c)  "LICENSING AGENCY" MEANS:

(I)  THE STATE BOARD OF PHARMACY, CREATED PURSUANT TO SECTION 12­22­103, C.R.S.;

(II)  THE COLORADO PODIATRY BOARD, CREATED PURSUANT TO SECTION 12­32­103, C.R.S.;

(III)  THE COLORADO STATE BOARD OF CHIROPRACTIC EXAMINERS, CREATED PURSUANT TO SECTION 12­33­103, C.R.S.;

(IV)  THE STATE BOARD OF DENTAL EXAMINERS, CREATED PURSUANT TO SECTION 12­35­104, C.R.S.;

(V)  THE COLORADO STATE BOARD OF MEDICAL EXAMINERS, CREATED PURSUANT TO SECTION 12­36­103, C.R.S.;

(VI)  THE STATE BOARD OF OPTOMETRIC EXAMINERS, CREATED PURSUANT TO SECTION 12­40­106, C.R.S.

(d)  "SERVICE OBLIGATION" MEANS AN OBLIGATION TO PROVIDE PAID OR VOLUNTEER SERVICE IN EXCHANGE FOR REPAYMENT IN PART OR IN FULL OF A STUDENT LOAN OBLIGATION.

(e)  "STUDENT LOAN" MEANS A GUARANTEED STUDENT LOAN, AS DEFINED IN SECTION 23­3.1­102 (4.5), C.R.S., A STUDENT LOAN AUTHORIZED BY TITLE IV, PART D OF THE FEDERAL "HIGHER EDUCATION ACT OF 1965", AS AMENDED, OR ANY OTHER EDUCATIONAL LOAN PROGRAM ADMINISTERED BY A STATE OR THE FEDERAL GOVERNMENT.

(2) (a)  NOTWITHSTANDING THE PROVISIONS OF SECTIONS 24­4­104 AND 24­4­105, A LICENSING AGENCY SHALL REVOKE OR SUSPEND THE LICENSE OF A LICENSEE WHO IS IN DEFAULT OF A STUDENT LOAN OR A SERVICE OBLIGATION WITHOUT HOLDING A HEARING. A LICENSING AGENCY SHALL NOT RENEW THE LICENSE OF A LICENSEE WHO IS IN DEFAULT OF A STUDENT LOAN OR A SERVICE OBLIGATION. A LICENSING AGENCY SHALL NOT GRANT AN INITIAL LICENSE TO AN APPLICANT WHO IS IN DEFAULT OF A STUDENT LOAN OR A SERVICE OBLIGATION.

(b) (I)  A LICENSING AGENCY SHALL USE THE INFORMATION FROM THE SYSTEM ESTABLISHED PURSUANT TO SUBSECTION (3) OF THIS SECTION TO PERIODICALLY DETERMINE WHETHER ANY LICENSEES HOLDING LICENSES ISSUED BY THE AGENCY HAVE BEEN DECLARED IN DEFAULT OF A STUDENT LOAN OR SERVICE OBLIGATION. A LICENSING AGENCY SHALL REVOKE OR SUSPEND THE LICENSE OF A LICENSEE IN DEFAULT OF A STUDENT LOAN OR SERVICE OBLIGATION WITHIN NINETY DAYS AFTER DETERMINING THAT A LICENSEE HAS BEEN REPORTED THROUGH THE INFORMATION REPORTING SYSTEM AS BEING IN DEFAULT, UNLESS THE AGENCY REPORTING THE DEFAULT CERTIFIES TO THE LICENSING AGENCY THAT THE STUDENT LOAN OR SERVICE OBLIGATION IS NOT IN DEFAULT OR THAT THE LICENSEE HAS ENTERED INTO A REPAYMENT AGREEMENT WITH THE AGENCY REPORTING THE DEFAULT.

(II)  NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH (b), IF A LICENSING AGENCY ISSUES A LICENSE FOR A TERM OF ONE YEAR OR LESS, IN LIEU OF FOLLOWING THE PROCEDURES OUTLINED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH (b), THE LICENSING AGENCY MAY ELECT, PURSUANT TO RULES PROMULGATED BY THE LICENSING AGENCY, TO DETERMINE AT THE TIME OF LICENSE RENEWAL WHETHER A LICENSEE HAS BEEN REPORTED THROUGH THE INFORMATION REPORTING SYSTEM AS BEING IN DEFAULT AND SHALL NOT RENEW THE LICENSE OF SUCH A LICENSEE.

(c)  A LICENSEE WHOSE LICENSE IS REVOKED, SUSPENDED, OR NOT RENEWED PURSUANT TO THIS SECTION OR AN INITIAL APPLICANT WHOSE APPLICATION FOR A LICENSE IS REFUSED PURSUANT TO THIS SECTION MAY PETITION THE APPLICABLE LICENSING AGENCY FOR REINSTATEMENT, RENEWAL, OR RECONSIDERATION OF THE REFUSAL TO ISSUE A LICENSE BY OBTAINING CERTIFICATION BY THE GUARANTY AGENCY GUARANTEEING THE STUDENT LOAN THAT THE LICENSEE OR APPLICANT HAS ENTERED INTO A REPAYMENT AGREEMENT, OR BY OBTAINING CERTIFICATION FROM THE APPLICABLE AGENCY THAT THE STUDENT LOAN OR SERVICE OBLIGATION IS NO LONGER IN DEFAULT. THE LICENSING AGENCY SHALL, BY RULE, EITHER CHARGE THE COSTS OF ANY PROCEEDING FOR REINSTATEMENT, RENEWAL, OR RECONSIDERATION TO THE LICENSEE OR APPLICANT, OR SHALL SET LICENSE REINSTATEMENT FEES TO COVER THE COSTS OF SUCH PROCEEDINGS. THE FEES OR COSTS SHALL BE WAIVED IF THE DECLARATION OF DEFAULT WAS IN ERROR. FEES OR COSTS MAY ALSO BE WAIVED BY THE LICENSING AGENCY FOR GOOD CAUSE SHOWN.

(3)  ON OR BEFORE JULY 1, 1998, THE DEPARTMENT OF REGULATORY AGENCIES, THE LICENSING AGENCIES, AND THE STUDENT LOAN DIVISION OF THE DEPARTMENT OF HIGHER EDUCATION SHALL WORK COOPERATIVELY WITH THE FEDERAL GOVERNMENT, ESPECIALLY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND THE DEPARTMENT OF EDUCATION, TO DEVELOP AN INFORMATION REPORTING SYSTEM TO IMPLEMENT THE PROVISIONS OF SUBSECTION (2) OF THIS SECTION. THE SYSTEM SHALL BE DEVELOPED WITHIN EXISTING APPROPRIATIONS, AND SHALL BE IMPLEMENTED ON OR BEFORE JULY 1, 1998. SUCH SYSTEM MAY INCLUDE THE FOLLOWING:

(a)  A REQUIREMENT THAT THE STUDENT LOAN DIVISION, ANY APPLICABLE FEDERAL AGENCIES GUARANTEEING STUDENT LOANS, ANY APPLICABLE AGENCIES OVERSEEING SERVICE OBLIGATION PROGRAMS, AND ANY OTHER AGENCIES GUARANTEEING STUDENT LOANS PERIODICALLY TRANSMIT NAMES AND ANY PERMISSIBLE IDENTIFYING INFORMATION OF PERSONS IN DEFAULT OF A STUDENT LOAN OR A SERVICE OBLIGATION TO THE LICENSING AGENCIES;

(b)  A REQUIREMENT THAT SUCH INFORMATION IS TRANSMITTED TO THE LICENSING AGENCIES IN A READILY USABLE FORM, SUCH AS AN ELECTRONIC MEDIA TRANSMISSION, OR BY SOME OTHER ELECTRONIC MEANS; AND

(c)  A REQUIREMENT THAT ALL AGENCIES REPORTING DEFAULTS TO THE LICENSING AGENCIES AFFORD NOTICE AND AN OPPORTUNITY TO BE HEARD TO A DEBTOR BEFORE DECLARING A STUDENT LOAN OR SERVICE OBLIGATION TO BE IN DEFAULT.

SECTION 9.  Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.