House Bill 494

Actions | Amendments
Last Action 04/07/22: signed by Governor (Acts Ch. 88)
Title AN ACT relating to student education loan servicing.
Bill Documents Acts Chapter 88
Current/Final
Introduced
Bill Request Number 1739
Sponsors D. Frazier Gordon, B. Rowland, N. Kirk-McCormick, P. Minter, R. Palumbo
Summary of Original Version Establish Subtitle 12 of KRS Chapter 286 and create sections thereof to make findings; define terms; establish licensing requirements for certain student education loan servicers; establish records requirements for student education loan servicers; require annual and other reports by student education loan servicers; require student education loan servicers to pay an annual assessment fee; prohibit student education loan servicers from engaging in abusive acts and practices and prohibit other conduct; require student education loan servicers to comply with federal and state law; permit the commissioner to conduct examinations and investigations of student education loan servicers; establish requirements for conditioning, denying, suspending, or revoking the license of a student education loan servicers; establish regulatory provisions relating to emergency orders, administrative complaints, and appeals; establish penalties; amend KRS 452.005 to conform; state that provisions of the Act shall be severable; provide that Act may be cited as the Student Education Loan Servicing, Licensing, and Protection Act of 2022.
Index Headings of Original Version Education, Finance - Student education loan servicers, regulatory requirements
Education, Higher - Student education loan servicers, regulatory requirements
Federal Laws and Regulations - Student education loan servicers, compliance requirements
Fees - Licensing, student education loan servicers
General Assembly - Student education loans, findings
Licensing - Student education loan servicers, requirements
Loans and Credit - Student education loans, servicers, regulatory requirements
State Agencies - Department of Financial Institutions, student education loan servicers, regulatory requirements
Administrative Regulations and Proceedings - Commissioner, Department of Financial Institutions, student loan education servicers
Banks and Financial Institutions - Student education loan servicers, regulatory requirements
Reports Mandated - Student education loan servicers, annual reports
Short Titles and Popular Names - Student Education Loan Servicing, Licensing, and Protection Act of 2022
Jump to Proposed Amendments House Floor Amendment 1
House Floor Amendment 2
Senate Committee Substitute 1
Votes Vote History

Actions

Top | Amendments
02/14/22
  • introduced in House
  • to Committee on Committees (H)
02/22/22
  • to Banking & Insurance (H)
02/23/22
  • reported favorably, 1st reading, to Calendar
  • floor amendment (1) filed
02/24/22
  • 2nd reading, to Rules
02/25/22
  • posted for passage in the Regular Orders of the Day for Monday, February 28, 2022
03/09/22
  • floor amendment (2) filed
03/10/22
  • 3rd reading, passed 94-2 with Floor Amendment (2)
03/11/22
  • received in Senate
  • to Committee on Committees (S)
03/16/22
  • to Banking & Insurance (S)
03/22/22
  • reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1)
03/23/22
  • 2nd reading, to Rules as a consent bill
03/24/22
  • posted for passage in the Consent Orders of the Day for Friday, March 25, 2022
03/25/22
  • passed over and retained in the Consent Orders of the Day
03/29/22
  • 3rd reading, passed 36-0 with Committee Substitute (1)
  • received in House
  • to Rules (H)
  • taken from Rules (H)
  • posted for passage for concurrence in Senate Committee Substitute (1)
03/30/22
  • House concurred in Senate Committee Substitute (1)
  • passed 93-0
  • enrolled, signed by Speaker of the House
  • enrolled, signed by President of the Senate
  • delivered to Governor
04/07/22
  • signed by Governor (Acts Ch. 88)

Proposed Amendments

Top | Actions
Amendment House Floor Amendment 1
Piggyback? Yes
Sponsor P. Minter
Summary Replaces original provisions with the following: Establish Subtitle 12 of KRS Chapter 286 and create sections thereof to define terms; establish licensing requirements for certain student loan servicers; establish requirements for student loan servicing activities; require student loan servicers to comply with applicable state and federal law; establish fines for violations of the subtitle; establish a private right of action for violations of the subtitle; permit the commissioner of the Department of Financial Institutions to monitor risk to consumers relating to servicing student loans; require the commissioner to designate a student loan ombudsman; establish requirements for student loan ombudsman; amend KRS 452.005 to conform; state that provisions of this Act shall be severable.
Index Headings Education, Finance - Student loan servicing, requirements
Education, Higher - Student loan servicing, requirements
Federal Laws and Regulations - Student loan servicers, compliance requirements
Licensing - Student loan servicers
Piggybacked Bills - HB 53
State Agencies - Department of Financial Institutions, student loan servicer, regulation
Administrative Regulations and Proceedings - Commissioner, Department of Financial Institutions, student loan servicing
Banks and Financial Institutions - Student loan servicers, requirements
Reports Mandated - Student loan ombudsman, annual report
Reports Mandated - Student loan servicers, annual report to commissioner

Amendment House Floor Amendment 2
Sponsor D. Frazier Gordon
Summary Provide that persons servicing federal loans in this state are deemed by operation of law to be licensed and require compliance with provisions of the subtitle; deletes language relating to admitting certain documents prepared by department employees as evidence; provides that the commissioner may condition, deny, suspend, or revoke a license for a material violation of the subtitle, administrative regulation, or order; establishes a willful standard for certain prohibited conduct; limits civil penalties to violations that are repetitive or a pattern or practice of the licensee; limits civil penalties for violations applicable to borrowers with a disability, military borrowers, older borrowers, and borrowers working in public service to violations that result in financial harm; makes technical corrrections.
Index Headings Banks and Financial Institutions - Student education loan servicers, regulatory requirements
Education, Finance - Student education loan servicers, regulatory requirements
Education, Higher - Student education loan servicers, regulatory requirements
Licensing - Student education loan servicers, requirements
Loans and Credit - Student education loans, servicers, regulatory requirements
State Agencies - Department of Financial Institutions, student education loan servicers, regulatory requirements

Amendment Senate Committee Substitute 1
Summary Retain original provisions except exempt wholly owned subsidiaries of certain banks, trust companies, and industrial loan companies from the new subtitle on student education loan servicing.
Index Headings Education, Finance - Student education loan servicers, regulatory requirements, exemption
Education, Higher - Student education loan servicers, regulatory requirements, exemption
Banks and Financial Institutions - Student education loan servicers, regulatory requirements, exemption

Last updated: 5/25/2022 2:58 PM (EDT)
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