S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3206
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2019
                                ___________
 
 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  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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01802-01-9
              

 S. 3206                             2
 
   (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
 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.

 S. 3206                             3
 
   (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
 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

 S. 3206                             4
 
 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-
 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

 S. 3206                             5
 
 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
 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-TWO.  SUCH REPORT SHALL INCLUDE, BUT
 NOT BE LIMITED TO:
   (A) THE NUMBER OF COMPLAINTS RECEIVED BY THE  STUDENT  LOAN  OMBUDSMAN
 FROM STUDENT LOAN BORROWERS;

 S. 3206                             6

   (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
   (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.