S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8463
 
                             I N  S E N A T E
 
                                May 8, 2018
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Higher Education
 
 AN ACT to amend the education law, in relation to the creating a student
   loan borrower bill of rights
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The education law is amended by adding a new section 684 to
 read as follows:
   §  684.  STUDENT LOAN BORROWER BILL OF RIGHTS. 1. DEFINITIONS. AS USED
 IN THIS SECTION:
   (A) "SERVICING" SHALL MEAN RECEIVING A SCHEDULED PERIODIC PAYMENT FROM
 A BORROWER PURSUANT TO THE TERMS OF A LOAN, INCLUDING AMOUNTS FOR ESCROW
 ACCOUNTS, AND MAKING THE PAYMENTS TO THE OWNER  OF  THE  LOAN  OR  OTHER
 THIRD PARTY OF PRINCIPAL AND INTEREST AND OTHER PAYMENTS WITH RESPECT TO
 THE  AMOUNTS  RECEIVED  FROM THE BORROWER AS MAY BE REQUIRED PURSUANT TO
 THE TERMS OF THE SERVICING LOAN DOCUMENT OR SERVICING CONTRACT.  IN  THE
 CASE  OF A HOME EQUITY CONVERSION MORTGAGE OR REVERSE MORTGAGE AS REFER-
 ENCED IN THIS SECTION, SERVICING INCLUDES MAKING PAYMENTS TO THE BORROW-
 ER. IN THE CASE OF A  STUDENT  EDUCATION  LOAN  AS  REFERENCED  IN  THIS
 SECTION,  SERVICING  INCLUDES  APPLYING  THE  PAYMENTS  OF PRINCIPAL AND
 INTEREST AND OTHER SUCH PAYMENTS WITH RESPECT TO  THE  AMOUNTS  RECEIVED
 FROM A STUDENT LOAN BORROWER AS MAY BE REQUIRED PURSUANT TO THE TERMS OF
 A  STUDENT  EDUCATION  LOAN AND PERFORMING OTHER ADMINISTRATIVE SERVICES
 WITH RESPECT TO A STUDENT EDUCATION LOAN.
   (B) "STUDENT EDUCATION LOAN" SHALL MEAN ANY  LOAN  PRIMARILY  USED  TO
 FINANCE EDUCATION OR OTHER SCHOOL-RELATED EXPENSES.
   (C)  "STUDENT  LOAN  BORROWER" SHALL MEAN ANY RESIDENT OF NEW YORK WHO
 HAS RECEIVED OR AGREED TO PAY A STUDENT EDUCATION LOAN,  OR  ANY  PERSON
 WHO  SHARES  RESPONSIBILITY WITH SUCH NEW YORK RESIDENT FOR REPAYING THE
 STUDENT EDUCATION LOAN.
   (D) "STUDENT LOAN SERVICER" SHALL MEAN ANY PERSON RESPONSIBLE FOR  THE
 SERVICING OF A STUDENT EDUCATION LOAN TO A STUDENT LOAN BORROWER.
   2. LOAN OMBUDSMAN. (A) THERE IS HEREBY ESTABLISHED THE POSITION OF THE
 STUDENT  LOAN OMBUDSMAN, WITHIN THE DEPARTMENT OF FINANCIAL SERVICES, TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13931-01-7

 S. 8463                             2
 
 BE APPOINTED BY THE COMMISSIONER TO PROVIDE  TIMELY  ASSISTANCE  TO  ANY
 STUDENT LOAN BORROWER WHO HAS A STUDENT EDUCATION LOAN.
   (B)  THE  STUDENT  LOAN  OMBUDSMAN SHALL WORK IN CONSULTATION WITH THE
 COMMISSIONER. THE RESPONSIBILITIES OF THE STUDENT  LOAN  OMBUDSMAN  WILL
 INCLUDE, BUT NOT BE LIMITED TO:
   (I)  RECEIVING,  REVIEWING  AND ASSISTING IN RESOLVING COMPLAINTS FROM
 STUDENT LOAN BORROWERS, INCLUDING, BUT NOT  LIMITED  TO,  ATTEMPTING  TO
 RESOLVE  SUCH  COMPLAINTS  IN  COLLABORATION WITH INSTITUTIONS OF HIGHER
 EDUCATION, STUDENT LOAN SERVICERS, AND ANY OTHER PARTICIPANTS IN STUDENT
 LOAN LENDING, INCLUDING, BUT NOT LIMITED TO, THE STATE UNIVERSITY OF NEW
 YORK, AND THE DEPARTMENT;
   (II) COMPILING AND ANALYZING DATA ON STUDENT LOAN BORROWER  COMPLAINTS
 AND ANY SUBSEQUENT RESOLUTIONS;
   (III)  ASSISTING STUDENT LOAN BORROWERS TO UNDERSTAND THEIR RIGHTS AND
 RESPONSIBILITIES UNDER THE TERMS OF STUDENT EDUCATION LOANS;
   (IV) PROVIDING INFORMATION TO THE PUBLIC REGARDING  THE  PROBLEMS  AND
 CONCERNS OF STUDENT LOAN BORROWERS;
   (V)  MAKING  RECOMMENDATIONS  TO  THE  COMMISSIONER FOR RESOLVING SUCH
 PROBLEMS AND CONCERNS;
   (VI) ANALYZING AND MONITORING THE DEVELOPMENT  AND  IMPLEMENTATION  OF
 FEDERAL,  STATE  AND  LOCAL  LAWS,  REGULATIONS AND POLICIES RELATING TO
 STUDENT LOAN BORROWERS AND RECOMMEND ANY RELATED CHANGES  DEEMED  NECES-
 SARY;
   (VII)  REVIEWING  COMPLETE  STUDENT  EDUCATION  LOAN  HISTORY  FOR ANY
 STUDENT LOAN BORROWER WHO HAS PROVIDED WRITTEN CONSENT FOR SUCH  REVIEW;
 AND
   (VIII)  DISSEMINATING INFORMATION TO STUDENT LOAN BORROWERS, POTENTIAL
 STUDENT LOAN BORROWERS, PUBLIC INSTITUTIONS OF HIGHER EDUCATION, STUDENT
 LOAN SERVICERS AND ANY OTHER PARTICIPANT IN STUDENT EDUCATION LOAN LEND-
 ING.
   (C) THE STUDENT LOAN OMBUDSMAN, IN CONSULTATION WITH THE COMMISSIONER,
 SHALL ESTABLISH A STUDENT LOAN  BORROWER  EDUCATION  COURSE  TO  INCLUDE
 EDUCATIONAL  PRESENTATIONS  AND  MATERIALS  REGARDING  STUDENT EDUCATION
 LOANS. SUCH PROGRAM SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (I)  AN  EXPLANATION  OF  KEY  LOAN  TERMS,  PRESCRIBED  DOCUMENTATION
 REQUIREMENTS,   MONTHLY   PAYMENT  OBLIGATIONS,  INCOME-BASED  REPAYMENT
 OPTIONS, LOAN FORGIVENESS AND DISCLOSURE REQUIREMENTS; AND
   (II) THE STUDENT LOAN BORROWER EDUCATION COURSE SHALL BE FUNDED BY ANY
 LICENSE, RENEWAL, LATE FILING, OR INVESTIGATION FEES,  AS  WELL  AS  ANY
 PENALTIES ASSESSED UNDER THIS SECTION.
   3.  LICENSING.  (A)  NO  PERSON  OR ENTITY SHALL ACT AS A STUDENT LOAN
 SERVICER, DIRECTLY OR INDIRECTLY, WITHOUT FIRST OBTAINING A LICENSE FROM
 THE COMMISSIONER, UNLESS SUCH PERSON IS EXEMPT FROM  LICENSURE  PURSUANT
 TO THIS SECTION.
   (B)  THE  FOLLOWING  PERSONS  OR ENTITIES ARE EXEMPT FROM STUDENT LOAN
 SERVICER LICENSING REQUIREMENTS:
   (I) ANY BANK, OUT-OF-STATE BANK, NEW YORK CREDIT UNION, FEDERAL CREDIT
 UNION OR OUT-OF-STATE CREDIT UNION;
   (II) ANY WHOLLY OWNED SUBSIDIARY OF ANY SUCH BANK OR CREDIT UNION; AND
   (III) ANY OPERATING SUBSIDIARY WHERE  EACH  OWNER  OF  SUCH  OPERATING
 SUBSIDIARY IS WHOLLY OWNED BY THE SAME BANK OR CREDIT UNION.
   (C)  ANY PERSON OR ENTITY SEEKING TO ACT WITHIN THE STATE AS A STUDENT
 LOAN SERVICER SHALL SUBMIT A WRITTEN APPLICATION TO THE COMMISSIONER FOR
 A LICENSE IN SUCH FORM AS THE COMMISSIONER PRESCRIBES.
   (D) UPON THE FILING OF AN APPLICATION FOR AN INITIAL LICENSE  AND  THE
 PAYMENT  OF  THE  FEES  FOR  LICENSE AND INVESTIGATION, THE COMMISSIONER

 S. 8463                             3
 
 SHALL INVESTIGATE THE FINANCIAL CONDITION AND RESPONSIBILITY,  FINANCIAL
 AND BUSINESS EXPERIENCE, CHARACTER AND GENERAL FITNESS OF THE APPLICANT.
 THE COMMISSIONER MAY ISSUE A LICENSE IF THE COMMISSIONER FINDS THAT:
   (I) THE APPLICANT'S FINANCIAL CONDITION IS SOUND;
   (II)  THE  APPLICANT'S  BUSINESS  WILL  BE CONDUCTED HONESTLY, FAIRLY,
 EQUITABLY, CAREFULLY AND EFFICIENTLY WITHIN THE PURPOSES AND  INTENT  OF
 THIS SECTION;
   (III)(1)  IF THE APPLICANT IS AN INDIVIDUAL, SUCH INDIVIDUAL IS IN ALL
 RESPECTS PROPERLY QUALIFIED AND OF GOOD CHARACTER;
   (2) IF THE APPLICANT IS A PARTNERSHIP, EACH PARTNER IS IN ALL RESPECTS
 PROPERLY QUALIFIED AND OF GOOD CHARACTER;
   (3) IF THE APPLICANT IS A CORPORATION OR ASSOCIATION,  THE  PRESIDENT,
 CHAIRPERSON  OF  THE EXECUTIVE COMMITTEE, SENIOR OFFICER RESPONSIBLE FOR
 THE CORPORATION'S BUSINESS AND CHIEF  FINANCIAL  OFFICER  OR  ANY  OTHER
 PERSON  OR PERFORMS SIMILAR FUNCTIONS AS DETERMINED BY THE COMMISSIONER,
 EACH DIRECTOR, EACH TRUSTEE AND EACH SHAREHOLDER OWNING TEN  PERCENT  OR
 MORE  OF  EACH  CLASS  OF  THE  SECURITIES OF SUCH CORPORATION IS IN ALL
 RESPECTS PROPERLY QUALIFIED AND OF GOOD CHARACTER; OR
   (4) IF THE APPLICANT IS A LIMITED LIABILITY COMPANY, EACH MEMBER IS IN
 ALL RESPECTS PROPERLY QUALIFIED AND OF GOOD CHARACTER;
   (IV) NO PERSON ON BEHALF OF  THE  APPLICANT  HAS  KNOWINGLY  MADE  ANY
 INCORRECT  STATEMENT  OF  A  MATERIAL FACT IN THE APPLICATION, OR IN ANY
 REPORT OR STATEMENT MADE PURSUANT TO THIS SECTION;
   (V) NO PERSON ON BEHALF OF THE  APPLICANT  KNOWINGLY  HAS  OMITTED  TO
 STATE  ANY MATERIAL FACT NECESSARY TO GIVE THE COMMISSIONER ANY INFORMA-
 TION LAWFULLY REQUIRED BY THE COMMISSIONER;
   (VI) THE APPLICANT HAS MET ANY OTHER REQUIREMENTS AS DETERMINED BY THE
 COMMISSIONER.
   (E)(I) A LICENSE SHALL BE FOR A PERIOD OF ONE YEAR AS OF A DATE DETER-
 MINED BY THE COMMISSIONER AND SHALL EXPIRE UNLESS RENEWED, SUSPENDED  OR
 REVOKED PURSUANT TO THIS SECTION.
   (II)  NOT LATER THAN FIFTEEN DAYS AFTER A LICENSEE CEASES TO ENGAGE IN
 THE BUSINESS OF STUDENT LOAN SERVICING IN THIS  STATE  FOR  ANY  REASON,
 INCLUDING  A  BUSINESS  DECISION  TO TERMINATE OPERATIONS IN THIS STATE,
 LICENSE REVOCATION, BANKRUPTCY OR VOLUNTARY DISSOLUTION,  SUCH  LICENSEE
 SHALL  PROVIDE WRITTEN NOTICE OF SURRENDER TO THE COMMISSIONER AND SHALL
 SURRENDER TO THE COMMISSIONER SUCH LICENSE FOR EACH  LOCATION  IN  WHICH
 SUCH LICENSEE HAS CEASED TO ENGAGE IN SUCH BUSINESS.
   (III)  A WRITTEN NOTICE OF SURRENDER SHALL IDENTIFY THE LOCATION WHERE
 THE RECORDS OF THE LICENSEE WILL BE STORED AND  THE  NAME,  ADDRESS  AND
 TELEPHONE  NUMBER  OF  AN INDIVIDUAL AUTHORIZED TO PROVIDE ACCESS TO THE
 RECORDS. THE SURRENDER OF A LICENSE DOES NOT  REDUCE  OR  ELIMINATE  THE
 LICENSEE'S  CIVIL  OR  CRIMINAL LIABILITY ARISING FROM ACTS OR OMISSIONS
 OCCURRING PRIOR TO THE SURRENDER OF THE LICENSE.
   (F) A LICENSE MAY BE RENEWED FOR THE ENSUING ONE YEAR PERIOD UPON  THE
 FILING  OF  AN APPLICATION CONTAINING ALL REQUIRED DOCUMENTS AND FEES AS
 PROVIDED IN PARAGRAPH (C) OF THIS  SUBDIVISION.  A  RENEWAL  APPLICATION
 SHALL  BE  FILED  AT  LEAST  THIRTY  DAYS PRIOR TO THE DATE SUCH LICENSE
 EXPIRES. THE COMMISSIONER MAY ASSESS A LATE FEE FOR RENEWAL APPLICATIONS
 FILED WITHIN THIRTY DAYS OF LICENSE EXPIRATION. IF AN APPLICATION FOR  A
 RENEWAL  LICENSE  HAS  BEEN FILED WITH THE COMMISSIONER ON OR BEFORE THE
 DATE THE LICENSE EXPIRES, THE LICENSE SOUGHT TO BE RENEWED SHALL CONTIN-
 UE IN FULL FORCE AND EFFECT UNTIL ISSUANCE BY THE  COMMISSIONER  OF  THE
 RENEWAL  LICENSE  OR UNTIL THE COMMISSIONER HAS NOTIFIED THE LICENSEE IN
 WRITING OF THE COMMISSIONER'S REFUSAL  TO  ISSUE  SUCH  RENEWAL  LICENSE
 TOGETHER  WITH THE GROUNDS UPON WHICH SUCH REFUSAL IS BASED. THE COMMIS-

 S. 8463                             4
 
 SIONER MAY REFUSE TO ISSUE A RENEWAL LICENSE ON ANY GROUND ON WHICH  THE
 COMMISSIONER MIGHT REFUSE TO ISSUE AN INITIAL LICENSE.
   (G) IF THE COMMISSIONER DETERMINES THAT A CHECK FILED WITH THE COMMIS-
 SIONER  TO PAY A LICENSE OR RENEWAL FEE HAS BEEN DISHONORED, THE COMMIS-
 SIONER SHALL AUTOMATICALLY SUSPEND THE LICENSE. THE  COMMISSIONER  SHALL
 NOTIFY  THE  LICENSEE  IN  WRITING  OF  THE AUTOMATIC SUSPENSION PENDING
 PROCEEDINGS FOR REVOCATION OR REFUSAL TO RENEW AND AN OPPORTUNITY FOR  A
 HEARING ON SUCH ACTIONS.
   (H)  THE  COMMISSIONER MAY DEEM AN APPLICATION FOR A LICENSE ABANDONED
 IF THE APPLICANT  FAILS  TO  RESPOND  TO  ANY  REQUEST  FOR  INFORMATION
 REQUIRED  UNDER  THIS  SECTION,  OR  ANY REGULATIONS ADOPTED PURSUANT TO
 SUCH. THE COMMISSIONER SHALL NOTIFY THE APPLICANT, IN WRITING,  THAT  IF
 THE  APPLICANT  FAILS  TO  SUBMIT SUCH INFORMATION LATER THAN SIXTY DAYS
 AFTER THE DATE ON WHICH SUCH  REQUEST  FOR  INFORMATION  WAS  MADE,  THE
 APPLICATION  SHALL  BE  DEEMED ABANDONED. AN APPLICATION FILING FEE PAID
 PRIOR TO THE DATE AN  APPLICATION  IS  DEEMED  ABANDONED  SHALL  NOT  BE
 REFUNDED.    ABANDONMENT  OF  AN  APPLICATION PURSUANT TO THIS PARAGRAPH
 SHALL NOT PRECLUDE THE APPLICANT FROM SUBMITTING A NEW APPLICATION FOR A
 LICENSE UNDER THE PROVISIONS OF THIS SECTION.
   4. PROHIBITIONS. (A) A STUDENT LOAN SERVICER SHALL NOT:
   (I) DIRECTLY OR INDIRECTLY EMPLOY ANY SCHEME, DEVICE  OR  ARTIFICE  TO
 DEFRAUD OR MISLEAD STUDENT LOAN BORROWERS;
   (II)  ENGAGE  IN ANY UNFAIR OR DECEPTIVE PRACTICE TOWARD ANY PERSON OR
 MISREPRESENT OR OMIT ANY MATERIAL INFORMATION  IN  CONNECTION  WITH  THE
 SERVICING  OF  A  STUDENT EDUCATION LOAN, INCLUDING, BUT NOT LIMITED TO,
 MISREPRESENTING THE AMOUNT, NATURE OR TERMS OF ANY FEE OR PAYMENT DUE OR
 CLAIMED TO BE DUE ON A STUDENT EDUCATION LOAN, THE TERMS AND  CONDITIONS
 OF THE LOAN AGREEMENT OR THE BORROWER'S OBLIGATIONS UNDER THE LOAN;
   (III) OBTAIN PROPERTY BY FRAUD OR MISREPRESENTATION;
   (IV)  KNOWINGLY  MISAPPLY  OR  RECKLESSLY APPLY STUDENT EDUCATION LOAN
 PAYMENTS TO THE OUTSTANDING BALANCE OF A STUDENT EDUCATION LOAN;
   (V) KNOWINGLY OR RECKLESSLY PROVIDE INACCURATE INFORMATION TO A CREDIT
 BUREAU, THEREBY HARMING A STUDENT LOAN BORROWER'S CREDITWORTHINESS;
   (VI) FAIL TO REPORT BOTH THE FAVORABLE AND UNFAVORABLE PAYMENT HISTORY
 OF THE STUDENT LOAN BORROWER TO A NATIONALLY RECOGNIZED CONSUMER  CREDIT
 BUREAU  AT LEAST ANNUALLY IF THE STUDENT LOAN SERVICER REGULARLY REPORTS
 INFORMATION TO A CREDIT BUREAU;
   (VII) REFUSE TO COMMUNICATE WITH AN AUTHORIZED REPRESENTATIVE  OF  THE
 STUDENT LOAN BORROWER WHO PROVIDES A WRITTEN AUTHORIZATION SIGNED BY THE
 STUDENT  LOAN  BORROWER,  PROVIDED  THE  STUDENT LOAN SERVICER MAY ADOPT
 PROCEDURES REASONABLY RELATED TO VERIFYING THAT THE REPRESENTATIVE IS IN
 FACT AUTHORIZED TO ACT ON BEHALF OF THE STUDENT LOAN BORROWER; OR
   (VIII) NEGLIGENTLY MAKE ANY FALSE STATEMENT OR KNOWINGLY AND WILLFULLY
 MAKE ANY OMISSION OF A MATERIAL FACT IN CONNECTION WITH ANY  INFORMATION
 OR  REPORTS  FILED  WITH A GOVERNMENTAL AGENCY OR IN CONNECTION WITH ANY
 INVESTIGATION CONDUCTED BY THE SUPERINTENDENT OF FINANCIAL  SERVICES  OR
 ANOTHER GOVERNMENTAL AGENCY.
   (B)  NO  PERSON OR ENTITY LICENSED TO ACT WITHIN NEW YORK AS A STUDENT
 LOAN SERVICER SHALL DO SO UNDER ANY OTHER NAME OR AT ANY OTHER PLACE  OF
 BUSINESS OTHER THAN THAT NAMED IN THE LICENSE. ANY CHANGE OF LOCATION OF
 A  PLACE OF BUSINESS OF A LICENSEE SHALL REQUIRE PRIOR WRITTEN NOTICE TO
 THE COMMISSIONER. NOT MORE THAN ONE PLACE OF  BUSINESS  SHALL  BE  MAIN-
 TAINED  UNDER  THE  SAME LICENSE. A LICENSE SHALL NOT BE TRANSFERABLE OR
 ASSIGNABLE.
   (C) A STUDENT LOAN SERVICER OR A PERSON OR ENTITY EXEMPT  FROM  LICEN-
 SURE  PURSUANT  TO  SUBDIVISION  THREE  OF  THIS  SECTION SHALL MAINTAIN

 S. 8463                             5
 
 ADEQUATE RECORDS OF EACH STUDENT EDUCATION LOAN TRANSACTION FOR NOT LESS
 THAN TWO YEARS FOLLOWING THE FINAL PAYMENT  ON  SUCH  STUDENT  EDUCATION
 LOAN  OR THE ASSIGNMENT OF SUCH STUDENT EDUCATION LOAN, WHICHEVER OCCURS
 FIRST,  OR  SUCH LONGER PERIOD AS MAY BE REQUIRED BY ANY OTHER PROVISION
 OF LAW. THE COMMISSIONER MAY REQUEST A STUDENT  LOAN  SERVICER  TO  MAKE
 SUCH  RECORDS  AVAILABLE.  A STUDENT LOAN SERVICER MUST COMPLY WITH SUCH
 REQUEST WITHIN FIVE BUSINESS DAYS. THE COMMISSIONER MAY GRANT A LICENSEE
 ADDITIONAL TIME TO MAKE SUCH RECORDS AVAILABLE UPON REQUEST.
   (D) A STUDENT LOAN SERVICER SHALL COMPLY WITH ALL  APPLICABLE  FEDERAL
 LAWS  AND  REGULATIONS RELATING TO STUDENT LOAN SERVICING. ANY VIOLATION
 OF FEDERAL LAW OR REGULATION SHALL BE DEEMED A VIOLATION OF THIS SECTION
 AND A BASIS UPON WHICH THE  COMMISSIONER  MAY  TAKE  ENFORCEMENT  ACTION
 PURSUANT TO SUCH.
   5. LICENSING EXAMINATIONS. (A) THE COMMISSIONER SHALL HAVE THE AUTHOR-
 ITY TO CONDUCT INVESTIGATIONS AND EXAMINATIONS FOR THE PURPOSES OF:
   (I)  INITIAL  LICENSING,  LICENSE RENEWAL, LICENSE SUSPENSION, LICENSE
 REVOCATION OR TERMINATION, OR GENERAL OR SPECIFIC  INQUIRY  OR  INVESTI-
 GATION  TO  DETERMINE COMPLIANCE WITH THIS SECTION, THE COMMISSIONER MAY
 ACCESS, RECEIVE AND USE ANY BOOKS, ACCOUNTS, RECORDS, FILES,  DOCUMENTS,
 INFORMATION OR OTHER EVIDENCE; AND
   (II)   INVESTIGATING  VIOLATIONS  OR  COMPLAINTS  ARISING  UNDER  THIS
 SECTION.
   (B) IN MAKING ANY EXAMINATION  OR  INVESTIGATION  AUTHORIZED  BY  THIS
 SECTION,  THE  COMMISSIONER  MAY  ACCESS  DOCUMENTS  AND  RECORDS OF THE
 STUDENT LOAN SERVICER, LICENSEE OR PERSON UNDER EXAMINATION OR  INVESTI-
 GATION.    UNLESS THE COMMISSIONER HAS REASONABLE GROUNDS TO BELIEVE THE
 DOCUMENTS OR RECORDS OF THE STUDENT LOAN SERVICER,  LICENSEE  OR  PERSON
 HAVE BEEN, OR ARE AT RISK OF BEING, ALTERED OR DESTROYED FOR PURPOSES OF
 CONCEALING  A  VIOLATION  OF  THIS SECTION, THE STUDENT LOAN SERVICER OR
 OWNER OF THE DOCUMENTS AND RECORDS SHALL HAVE ACCESS TO THE DOCUMENTS OR
 RECORDS AS NECESSARY TO CONDUCT ORDINARY BUSINESS AFFAIRS.
   (C) NO STUDENT LOAN SERVICER OR PERSON  SUBJECT  TO  INVESTIGATION  OR
 EXAMINATION UNDER THIS SECTION MAY KNOWINGLY WITHHOLD, ABSTRACT, REMOVE,
 MUTILATE,  OR  DESTROY  ANY  BOOKS,  RECORDS,  COMPUTER RECORDS OR OTHER
 INFORMATION.
   (D) THE COMMISSIONER MAY  SUSPEND,  REVOKE  OR  REFUSE  TO  RENEW  ANY
 LICENSE ISSUED UNDER THIS SECTION IF THE COMMISSIONER FINDS THAT:
   (I)  THE  LICENSEE  HAS  VIOLATED ANY PROVISION OF THIS SECTION OR ANY
 REGULATION MADE PURSUANT TO THIS SECTION, OR (II) ANY FACT OR  CONDITION
 EXISTS  WHICH, IF IT HAD EXISTED AT THE TIME OF THE ORIGINAL APPLICATION
 FOR THE LICENSE, CLEARLY WOULD HAVE WARRANTED A DENIAL OF SUCH  LICENSE.
 NO  ABATEMENT OF THE LICENSE FEE SHALL BE MADE IF THE LICENSE IS SURREN-
 DERED, REVOKED OR SUSPENDED PRIOR TO THE EXPIRATION OF  THE  PERIOD  FOR
 WHICH IT WAS ISSUED.
   6. REPORT. NOTWITHSTANDING ANY GENERAL OR SPECIAL LAW TO THE CONTRARY,
 THE  COMMISSIONER  SHALL  FILE  A REPORT ON THE WORK OF THE STUDENT LOAN
 OMBUDSMAN ANNUALLY WITH THE GOVERNOR AND THE  LEGISLATURE  BEGINNING  ON
 JANUARY  FIRST, TWO THOUSAND TWENTY.  SUCH REPORT SHALL INCLUDE, BUT NOT
 BE LIMITED TO:
   (A) THE NUMBER OF COMPLAINTS RECEIVED BY THE  STUDENT  LOAN  OMBUDSMAN
 FROM STUDENT LOAN BORROWERS;
   (B)  THE  TYPES  OF  COMPLAINTS RECEIVED BY THE STUDENT LOAN OMBUDSMAN
 FROM STUDENT LOAN BORROWERS;
   (C) ANY RECOMMENDATIONS TO IMPROVE THE EFFECTIVENESS OF  THE  POSITION
 OF STUDENT LOAN OMBUDSMAN; AND

 S. 8463                             6
 
   (D) ANY RECOMMENDATIONS TO IMPROVE REGULATION, OVERSIGHT, AND ENFORCE-
 MENT  OF  THE  DEPARTMENT  OF  FINANCIAL SERVICES OVER THE LICENSING AND
 ENFORCEMENT OF STUDENT LOAN SERVICERS.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.