A. For licensees determined to be in default, pursuant to the applicable federal regulation, the Oklahoma State Regents for Higher Education shall prescribe rules and procedures to provide an opportunity for the licensee to enter into a satisfactory repayment agreement and an opportunity for a hearing prior to notification of a licensing board. At least thirty (30) days prior to notification of the appropriate licensing board, the State Regents shall mail to the licensee's last-known address, a written notice of:

1. The nature and amount of the debt;

2. The intention of the State Regents to issue notification of default to the appropriate licensing board or boards; and

3. The explanation of the licensee's rights.

B. Following the determination of default, as defined by federal law, the licensee shall be provided the opportunity of a hearing conducted by a hearing official appointed by the State Regents. The hearing official may be any qualified individual, including an administrative law judge, not under the direct supervision or control of the State Regents. Upon written request by the licensee, the decision of the hearing official may be appealed to the State Regents. The State Regents may notify each licensing board in this state of any person who has been determined to be in default on a student loan; provided, the State Regents may consider hardship circumstances in their decision whether to proceed with notification. Except as otherwise provided in this section, upon receipt of the notice, the licensing boards shall suspend and not renew the license of the licensee until further notification by the State Regents.

C. Except as otherwise provided in this section, no further administrative review or contested case proceeding within or by the licensing board is required upon notification of the State Regent’s determination of default. No licensing board shall be held liable for any suspension or nonrenewal of a license or commercial driver license pursuant to the provisions of this act.

D. The State Regents shall notify, as soon as possible and no later than ten (10) business days, each licensing board when a formerly reported licensee is no longer in default status due to repayment in full, loan rehabilitation or some other action that discharges the licensee of responsibility for repayment or when the licensee achieves satisfactory repayment status. Except as otherwise provided in this section, the issuing licensing board shall reinstate or renew the license of the licensee within thirty (30) days of receiving notice from the State Regents, contingent upon the requirements of the licensing board.

E. If the Oklahoma Bar Association receives notice that a licensed attorney is in default, the Bar Association must begin proceedings by which the attorney may be suspended pursuant to Rules Governing Disciplinary Proceedings. If suspended, the attorney may be reinstated pursuant to reinstatement procedures as provided in the Rules Governing Disciplinary Proceedings.

F. For purposes of this act:

1. “Licensing board” means any bureau, department, division, board, agency or commission of this state or of a municipality in this state that issues a license;

2. “License” means a license, certificate, registration, permit, approval or other similar document issued by a licensing board granting to an individual a right or privilege to engage in a profession, occupation or business, including Class A, B or C commercial driver licenses issued pursuant to Title 47 of the Oklahoma Statutes; and

3. “Licensee” means any individual who is issued a license by any licensing board in this state.

Added by Laws 1996, c. 261, § 2, eff. July 1, 1996. Amended by Laws 1999, c. 66, § 2, eff. July 1, 1999.