Bill Text: NJ S765 | 2018-2019 | Regular Session | Amended

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Bill Title: Prohibits Higher Education Student Assistance Authority from referring defaulted loans under New Jersey College Loans to AssistState Students (NJCLASS) Loan Program for certain actions if authority and borrower have entered into settlement agreement.*

Spectrum: Strong Partisan Bill (Democrat 14-1)

Status: (Passed) 2020-01-21 - Approved P.L.2019, c.386. [S765 Detail]

Download: New_Jersey-2018-S765-Amended.html

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[First Reprint]

SENATE, No. 765

STATE OF NEW JERSEY

218th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION

 

 

Sponsored by:

Senator  SANDRA B. CUNNINGHAM

District 31 (Hudson)

Senator  THOMAS H. KEAN, JR.

District 21 (Morris, Somerset and Union)

Senator  M. TERESA RUIZ

District 29 (Essex)

 

Co-Sponsored by:

Senators Gordon, Greenstein and Pou

 

 

 

 

SYNOPSIS

     Prohibits Higher Education Student Assistance Authority from referring defaulted loans under New Jersey College Loans to Assist State Students (NJCLASS) Loan Program for certain actions if authority and borrower have entered into settlement agreement.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Health and Senior Services Committee on December 5, 2019, with amendments.

  

An Act concerning the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program and amending N.J.S.18A:71C-29.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    N.J.S.18A:71C-29 is amended to read as follows:

     18A:71C-29.  a. Unless expressly limited to federal programs, the information exchange, wage withholding, collection procedures, repayment determinations, and other provisions set forth under article 1 of this part shall apply to the NJCLASS Loan Program.

     b.    Notwithstanding any provision of law to the contrary, in the case of any NJCLASS loan in default status, the authority shall ¹[obtain a court order prior to pursuing any of the following collection efforts: offsetting a State income tax refund or State lottery prize winnings; initiating wage garnishment; or suspending an occupational and professional license]  not refer any borrower to the Department of the Treasury, Division of Taxation for Set-Off of Individual Liability or notify the department and the Division of the State Lottery to withhold a borrower's winnings pursuant to section 5 of P.L.1997, c.306 (C.5:9-13.14) if the authority and borrower have entered into a settlement agreement¹ .

     ¹c.    Notwithstanding any provision of law to the contrary, any entity designated in section 2 of P.L.1978, c.73 (C.45:1-15), or any principal department in the Executive Branch of State government or any division, board, bureau, office, commission, or other instrumentality within or created by such a department, or any other entity created to license or otherwise regulate a profession or occupation, issuing any license, certification, or registration, shall not define a borrower's delinquent or default status on an NJCLASS loan as the basis for the denial, suspension, or revocation of the borrower's professional or occupational license, certification, or registration.¹

(cf:  N.J.S.18A:71C-29)

 

     2.    This act shall take effect immediately.