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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-1-125 SO AS TO AUTHORIZE PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS TO DENY LICENSURE OR TO SUSPEND THE LICENSE OF AN INDIVIDUAL FOR NONPAYMENT OR DEFAULT OR BREACH OF A REPAYMENT OR SERVICE OBLIGATION UNDER ANY FEDERAL OR STATE EDUCATIONAL LOAN, LOAN REPAYMENT, OR SERVICE-CONDITIONAL SCHOLARSHIP PROGRAM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 1, Title 40 of the 1976 Code is amended by adding:
"Section 40-1-125. A board may deny licensure or suspend the license of an individual licensed by that board who has been reported by a federal or state agency to the board for nonpayment or default or breach of a repayment or service obligation under any federal or state educational loan, loan repayment, or service conditional scholarship program. Before denying or suspending a license, the board shall give notice of its intended action to the licensee or applicant, who must be afforded an opportunity to appear before the board according to procedures set forth by the director in regulation. A denial or suspension of a license pursuant to this section is a contested case under the Administrative Procedures Act. A license denied or suspended pursuant to this section must not be issued, reissued, or reinstated until the person provides the licensing board a written statement issued by the federal or state agency stating that the person is making payments on the loan or satisfying the service requirements in accordance with an agreement approved by the agency. If the person continues to meet all other requirements for licensure during the period of denial or suspension, issuance or reinstatement of the license is automatic upon receipt of the statement issued by the state or federal agency and, in the case of reinstatement, payment of any reinstatement fee that the board may impose."
SECTION 2. This act takes effect upon approval by the Governor.
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