SB 362 — Qualified education loan servicers; person must obtain license from State Corporation Commission.

ASuch nonrefundableother licenseinformation feeconcerning inthe anfinancial amountresponsibility, prescribedbackground, byexperience, and general fitness of the Commissionapplicant byand ruleits ormembers, order;senior officers, directors, trustees, and principals as the Commissioner may require;

AAny nonrefundableother investigationpertinent feeinformation inthat an amount prescribed by the CommissionCommissioner bymay rulerequire. or order.

The license fee and the investigation fee shall be set by the Commission at a reasonable amount based on the actual costs incurred by the Commission.

B.

In connection with an application for licensing as a qualified education loan servicer, the applicant shall furnish to the Commission information concerning the applicant's identity, including fingerprints for submission to the Federal Bureau of Investigation or any federal or state governmental agency or entity authorized to receive such information for a state, national, and international criminal history records check, as prescribed by the Commission.

The applicant shall also submit personal history and experience in a form prescribed by the Commission, including submission of authorization for the Commission to obtain (i) an independent credit report from a consumer reporting agency described in § 603(p) of the Fair Credit Reporting Act (15 U.S.C.

§ 1681 et seq.) and (ii) information related to any administrative, civil, or criminal findings by any governmental jurisdiction.

UponThe the filing of an application forshall anbe initialaccompanied licenseby and the payment of thea feesnonrefundable forapplication licensefee and investigation, the Commissioner shall make such investigations as heprescribed deemsby necessary to determine if the applicantCommission. has complied with all applicable provisions of law and regulations.

The Commissionfee shall issuenot abe licenseabated ifby itsurrender, findssuspension, that:or revocation of the license.

1.

The financial responsibility, character, reputation, experience, and general fitness of the applicant and its members, senior officers, directors, and principals are such as to warrant belief that the business will be operated efficiently and fairly, in the public interest, and in accordance with the law;

2.

If the applicant is an individual, such individual is in all respects properly qualified and of good character;

if the applicant is a partnership, each partner is in all respects properly qualified and of good character;

if the applicant is a corporation or association, the president, chairman of the executive committee, senior officer responsible for the corporation's business, and chief financial officer or any other person who performs similar functions, as determined by the Commissioner, and each director, each trustee, and each shareholder owning 10 percent or more of each class of the securities of such corporation is in all respects properly qualified and of good character;

or if the applicant is a limited liability company, each member is in all respects properly qualified and of good character;

3.

No person on behalf of the applicant has made any incorrect statement of a material fact in the application or in any report or statement made pursuant to this chapter;

4.

No person on behalf of the applicant has omitted to state any material fact necessary to give the Commissioner any information lawfully required by the Commissioner;

5.

The applicant has paid the investigation fee and the license fee required under subsection A;

and 6.

The applicant has met any other requirements under this chapter as determined by the Commissioner.

If the Commissioner failsrequests information to makecomplete sucha findings,deficient noapplication licenseand shallthe beinformation issuedis andnot received within 60 days of the CommissionerCommissioner's request, the application shall notifybe thedeemed applicantabandoned unless a request for an extension of thetime denialis received and approved by the reasonsCommissioner forprior suchto denial.the expiration of the 60-day period.

E.However, this subsection shall not be construed to prohibit the Commission from denying a license application that does not meet the requirements of this chapter.

A license issued pursuant to this section shall expire at the close of business on September 30 of the second year following its issuance, unless renewed or earlier surrendered, suspended, or revoked pursuant to this chapter.

Not later than 15 days after a licensee ceases to engage in the business of qualified education loan servicing in the Commonwealth for any reason, including a business decision to terminate operations in the Commonwealth, license revocation, bankruptcy, or voluntary dissolution, the licensee shall provide written notice of surrender to the Commissioner and shall surrender to the Commissioner its license for each location in which the licensee has ceased to engage in such business.

The 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, including any administrative actions undertaken by the Commission to revoke or suspend a license, assess a civil penalty, order restitution, or exercise any other authority provided to the Commission.

F.

A license may be renewed for the ensuing 24-month period upon the filing of an application containing all required documents and fees as provided in this section.

Such renewal application shall be filed on or before September 1 of the year in which the license expires.

Any renewal application filed with the Commissioner after September 1 shall be accompanied by a $100 late fee, and any such filing shall be deemed to be timely and sufficient.

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 continue in full force and effect until the issuance by the Commissioner of the renewal license applied for 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 Commissioner may refuse to issue a renewal license on any ground on which the Commission may refuse to issue an initial license.

G.

If the Commissioner determines that a check filed to pay a license or renewal fee has been dishonored, the Commissioner shall automatically suspend the license or the renewal license that has been issued but is not yet effective.

The Commissioner shall give the licensee notice of the automatic suspension pending proceedings for revocation or refusal to renew and an opportunity for a hearing on such actions in accordance with the Commission's Rules.

H.

The applicant or licensee shall notify the Commissioner in writing of any change in the information provided in its initial application for a license or its most recent renewal application for such license, as applicable, not later than 10 business days after the occurrence of the event that results in such information becoming inaccurate.

I.

The Commissioner may deem an application for a license abandoned if the applicant fails to respond to any request for information required under this chapter.

The Commissioner shall notify the applicant, in writing, that if the applicant fails to submit such information not later than 60 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 on which an application is deemed abandoned pursuant to this subsection shall not be refunded.

Abandonment of an application pursuant to this subsection shall not preclude the applicant from submitting a new application for a license under the provisions of this chapter.

The application for a license shall also be accompanied by a bond filed with the Commissioner with corporate surety authorized to execute such bondbond, in the Commonwealth,principal inamount theas sumdetermined ofby $50,000the perCommissioner. location, not to exceed a total of $500,000.

The formamount of suchthe bond shall be approvednot byless thethan Commission.$50,000 nor more than $500,000.

The form of such bond shall be approved by the Commissioner.

Such bond shall be conditioned upon the applicant or licensee performing all written agreements withpertaining borrowersto orqualified prospectiveeducation borrowers,loans, correctly and accurately accounting for all funds received by himthe applicant or licensee in hisconnection licensedwith business,qualified education loans, and conducting its licensed business in conformity with this chapter and all applicable laws.

Any person who may be damaged by noncompliance of the applicant or licensee with any condition of such bond may proceed on such bond against the principal or surety thereon, or both, to recover damages.

PlaceInvestigation of business.applications.

NoA. person licensed as a qualified education loan servicer shall service qualified education loans under any other name or at any other place of business than that named in the license.

AnyThe changeCommissioner ofmay locationmake ofsuch ainvestigations placeas ofhe businessdeems ofnecessary ato licenseedetermine shallif requirethe priorapplicant writtenhas noticecomplied towith theall Commissioner.applicable provisions of law and regulations.

NotB. more than one place of business shall be maintained under the same license, but the Commissioner may issue more than one license to the same licensee upon compliance with the provisions of this chapter as to each new license.

NoFor licenseethe shallpurpose openof aninvestigating additionalindividuals officewho withoutare priormembers, approvalsenior officers, directors, trustees, and principals of thean Commissioner.applicant, such persons shall consent to a criminal history records check and submit to fingerprinting.

ApplicationsEach formember, suchsenior approvalofficer, shalldirector, betrustee, madeand inprincipal writingshall onpay afor form provided by the Commissionercost and shall be accompanied by payment of asuch $150fingerprinting nonrefundableand applicationcriminal fee.records check.

TheSuch applicationpersons shall because approvedtheir unlessfingerprints, thepersonal Commissionerdescriptive findsinformation, thatand therecords applicantcheck hasfees notto conductedbe businesssubmitted underto thiseither chapterof efficiently, fairly, in the publicfollowing, interest,as andprescribed inby accordancethe withCommission: law.

The1. application for approval shall be deemed approved if notice to the contrary has not been mailed by the Commissioner to the applicant within 30 days of the date the application is received by the Commissioner.

AThe licenseCommissioner, who shall notforward bethese transferableitems orto assignable.the Central Criminal Records Exchange.

The Central Criminal Records Exchange shall (i) conduct a search of its own criminal history records and forward such individuals' fingerprints and personal descriptive information to the Federal Bureau of Investigation for the purpose of obtaining national criminal history record information regarding such individuals and (ii) forward the results of the state and national records search to the Commissioner or his designee, who shall be an employee of the Commission;

or 2.

The Registry, provided that it is capable of processing criminal history records checks.

C.

If any member, senior officer, director, trustee, or principal of an applicant fails to cause his fingerprints, personal descriptive information, or records check fees to be submitted in accordance with subsection B, the application for a qualified education loan servicer license shall be denied.

Records.Qualifications.

EachUpon licenseethe shallfiling maintainand adequateinvestigation recordsof an application for a license, compliance by the applicant with the provisions of each§§ qualified6.2-2602 educationand loan6.2-2603, transactionand forcompliance notby lessthe thanpersons threeidentified yearsin followingsubsection B of § 6.2-2604 with the finalprovisions paymentcontained ontherein, suchthe qualifiedCommission educationshall loanissue orand deliver to the assignmentapplicant ofthe suchlicense qualifiedapplied educationfor loan,to whicheverengage occursin first,business orunder suchthis longerchapter periodat asthe maylocation bespecified requiredin bythe anyapplication otherif provisionit offinds law.that:

1.

The financial responsibility, character, experience, and general fitness of the applicant and its members, senior officers, directors, trustees, and principals are such as to warrant belief that the business will be operated efficiently and fairly, in the public interest, and in accordance with the law;

2.

The application does not contain any false statement of a material fact;

and 3.

The application does not omit any statement of a material fact that is required by § 6.2-2602.

If requested by the Commissioner,Commission eachfails licenseeto shall make such recordsfindings, availableno orlicense sendshall suchbe recordsissued toand the Commissioner byshall registerednotify orthe certifiedapplicant mail,of returnthe receiptdenial requested,and or by any express delivery carrier that provides a dated delivery receipt, not later than five business days after requested by the Commissionerreasons tofor dosuch so.denial.

Upon request, the Commissioner may grant a licensee additional time to make such records available or send the records to the Commissioner.

Licenses;

place of business;

changes;

renewal.

A.

Each license shall state the address at which the principal place of business is to be conducted and shall state fully the legal name of the licensee as well as any fictitious names by which the licensee is conducting business under this chapter.

Licenses shall not be transferable or assignable, by operation of law or otherwise.

No licensee shall use any names other than the legal name or fictitious names set forth on the license issued by the Commission.

B.

Every licensee shall notify the Commissioner, in writing, at least 30 days prior to relocating its principal place of business and confirm the change in writing within five days after such relocation.

C.

Every licensee shall within 10 days notify the Commissioner, in writing, of (i) any change to its legal name, (ii) any change to or additional fictitious name by which the licensee is conducting business under this chapter, and (iii) the name, address, and position of each new member, senior officer, director, trustee, and principal.

At the direction of the Commissioner, any such individual shall be treated as a member, senior officer, director, trustee, or principal of an applicant for the purpose of being investigated pursuant to subsection B of § 6.2-2604.

The licensee shall provide such other information with respect to the changes and persons identified in this subsection as the Commissioner may reasonably require.

D.

Every license shall remain in force until it expires or has been surrendered, revoked, or suspended.

The expiration, surrender, revocation, or suspension of a license shall not affect any preexisting legal right or obligation of such licensee.

E.

Notwithstanding any other provision of this chapter, a qualified education loan servicer license shall expire at the end of each calendar year unless it is renewed by a licensee prior to the expiration date.

A licensee may renew its license by (i) requesting renewal through the Registry and (ii) complying with any requirements associated with such renewal request that are imposed by the Registry.

If a qualified education loan servicer license has expired, the Commission may by regulation permit the former licensee to seek license reinstatement after the license expiration date by renewing its license in accordance with this subsection and paying a reinstatement fee as prescribed by the Commission.

§ 6.2-2607.

Retention of records;

responding to the Bureau.

A.

Each licensee shall maintain in its principal place of business such books, accounts, and records as the Commissioner may reasonably require in order to determine whether such person is complying with the provisions of this chapter and other laws applicable to the conduct of its business.

Such books, accounts, and records shall be maintained apart and separate from any other business in which the qualified education loan servicer is involved.

Each licensee shall maintain adequate records of each qualified education loan transaction for at least three years after final payment is made on such loan or the assignment of such qualified education loan, whichever occurs first.

B.

To safeguard the privacy of qualified education loan borrowers, records containing personal financial information shall be shredded, incinerated, or otherwise disposed of by a licensee in a secure manner.

Licensees may arrange for the shredding, incineration, or other disposal of the records from a business record destruction vendor.

C.

When the Bureau requests a written response, books, records, documentation, or other information from a licensee in connection with the Bureau's investigation, enforcement, or examination of compliance with applicable laws, the licensee shall deliver a written response as well as any requested books, records, documentation, or information within the time period specified in the Bureau's request.

If no time period is specified, a written response as well as any requested books, records, documentation, or information shall be delivered by the licensee to the Bureau not later than 30 days from the date of such request.

In determining the specified time period for responding to the Bureau and when considering a request for an extension of time to respond, the Bureau shall take into consideration the volume and complexity of the requested written response, books, records, documentation, or information and such other factors as the Bureau determines to be relevant under the circumstances.

§ 6.2-2608.

Delivers such other information to the Commissioner as the Commissioner may require concerning the financial responsibility, background, experience, and activitiesgeneral fitness of the applicant,applicant of its directors, senior officers, principals, and members, and of any proposed new directors, senior officers, principals, trustees, or members of the licensee;

Submits and furnishes to the Commissioner information concerning the identity of the applicant and of any proposed new director,directors, senior officers, principals, trustee,trustees, or members of the licensee.

Such individuals shall (i) consent to a criminal history records check, submit to fingerprinting, and pay for the cost of such fingerprinting and criminal records check and (ii) cause their fingerprints, personal descriptive information, and records check fees to be submitted to either of the followingfollowing, as prescribed by the Commission:

The Central Criminal Records Exchange shall (i) conduct a search of its own criminal history records and forward such individual'sindividuals' fingerprints and personal descriptive information to the Federal Bureau of Investigation for the purpose of obtaining national criminal history record information regarding such individualindividuals and (ii) forward the results of the state and national records search to the Commissioner or his designee, who shall be an employee of the Commission;

Upon the filing and investigation of an application, the Commission shall permit the applicant to acquire the interest in the licensee if it finds that the applicant,applicant its members if applicable, and its directors, senior officers, trustees, and principals and any proposed new directors, members, senior officers, trustees, and principals of the licensee have the financial responsibility, character, reputation, experience, and general fitness to warrant belief that the business will be operated efficiently and fairly, in the public interest, and in accordance with law.

The provisions of this section shall not apply to the acquisition of an interest in a licensee (i) directly or indirectly, including an acquisition by merger or consolidationconsolidation, by or with a person licensed or exempt from licensing under this chapter;

The person acquiring an interest in a licensee in a transaction that is exempt from filing an application by this subsection shall send written notice to the Commissioner of such acquisition to the Commissioner within 30 days of its closing.

§ 6.2-2607.6.2-2609.

Prohibited activities.activities;

compliance with federal laws and regulations.

A.

Engage in any unfair or deceptive act or practice toward any person or misrepresent or omit any material information in connection with the servicing of a qualified education loan, including misrepresenting (i) the amount, nature, or terms of any fee or payment due or claimed to be due on a qualified education loan;

Provide inaccurate information to a nationally recognized consumer credit bureau,bureau; thereby harming a borrower's creditworthiness;

Make any false statement orof omita any material fact inor connectionomit with any informationmaterial orfact reports filed with a governmental agency or in connection with any investigationinformation conductedprovided byto the Commission or another governmental agency;authority;

Engage in any other prohibited activities identified in the regulations adopted by the Commission pursuant to this chapter.

A qualified education loan servicer shall comply with all federal laws and regulations applicable to the conduct of its licenselicensed business.

In addition to any other remedies provedprovided by law, a violation of any such federal law or regulation shall be deemed a violation of this chapter and a basis upon which the Commission may take enforcement action pursuant to § 6.2-2611, 6.2-2613, 6.2-2615, or 6.2-2615.6.2-2616.

§ 6.2-2608.6.2-2610.

OtherReporting reporting requirements.

Any felony indictment of the licensee or any of its members, partners, directors, senior officers, trustees, or principals;

Any felony conviction of the licensee or any of its members, partners, directors, senior officers, trustees, or principals;

Such other eventevents as the Commission may prescribe by regulation.

§ 6.2-2609.6.2-2611.

The Commission may, as often as it deems necessary, investigate and examine the affairs, business, premises, and records of any loanperson servicerlicensed or required to be licensed under this chapter insofar as they pertain to any business for which a license is required by this chapter.

Examinations of suchlicensees loan servicers shall be conducted at least once in each three-year period.

In the course of such investigations and examinations, the owners, members, officers, directors, partners, trustees, and employees of the loanperson servicer being investigated or examined shall, upon demand of the person making such investigation or examination, afford full access to all premises, books, records, and information that the person making such investigation or examination deems necessary.

ForExaminations the purposes of investigating violations or complaints arising under this chaptersection or for the purposes of examination, the Commissioner may review,be investigate,conducted orin examineconjunction anywith qualifiedexaminations educationto loanbe servicerperformed licenseeby orrepresentatives personof subjectagencies to the requirements of this chapter as often as necessary in order to carry out the purposesfederal ofgovernment thisor chapter.another state.

TheIn Commissionerlieu mayof direct,conducting subpoena,an orexamination, order the attendanceCommission of and examine under oath all persons whose testimony may beaccept required about the qualifiedexamination educationreport loanof or the businessfederal orgovernment subject matter of any such examination or investigationanother andstate. may direct, subpoena, or order such person to produce books, accounts, records, files, and any other documents the Commissioner deems relevant to the inquiry.

C.§ 6.2-2612.

In order to carry out the purposes of this chapter, the Commissioner may:

1.

Retain attorneys, accountants, or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;

2.

Enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this section;

3.

Use, hire, contract, or employ public or privately available analytical systems, methods, or software to examine or investigate the qualified education loan servicer licensee or person subject to this chapter;

4.

Accept and rely on examination or investigation reports made by other government officials, within or without the Commonwealth;

and 5.

Accept audit reports made by an independent certified public accountant for the qualified education loan servicer licensee or person subject to this chapter in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in the report of examination, report of investigation, or other writing of the Commissioner.

D.

The authority of this section shall remain in effect, whether such qualified education loan servicer licensee or person subject to this chapter acts or claims to act under any licensing or registration law of the Commonwealth or claims to act without such authority.

E.

No qualified education loan servicer licensee or person subject to investigation or examination under this section may knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information.

§ 6.2-2610.

In order to defray the costs of itstheir examination, supervision, and regulation, every licensee under this chapter shall pay an annual fee calculated in accordance with a schedule set by the Commission.

All such fees shall be assessed on or before SeptemberApril 151 for every calendar year.

All such fees shall be paid by the licensee to the State Treasurer on or before OctoberMay 151 following each assessment.

§ 6.2-2611.6.2-2613.

Suspension,Suspension revocation, or refusalrevocation toof renew license.

The Commission may suspend,suspend revoke, or refuserevoke to renew any license issued under the provisions of this chapter ifupon any of the Commissionfollowing finds:grounds:

Any violation of the provisions of this chapter or regulations adopted by the Commission pursuant theretothereto, or a violation of any other law or regulation applicable to the conduct of the licensee's business;

Entry of a federal or state administrative order against the qualifiedlicensee education loan servicer for violation of any law or any regulation applicable to the conduct of the licensee's business;

For the purposes of this section, acts of any officer, director, member, partner, trustee, or principal shall be deemed acts of the qualifiedlicensee. education loan servicer.

C.§ 6.2-2614.

No abatement of the license fee shall be made if a license issued under this chapter is surrendered, revoked, or suspended prior to the expiration of the period for which it was issued.

§ 6.2-2612.

The Commission shall not revoke or suspend the license of any licensee upon any of the grounds set forth in § 6.2-26116.2-2613 until it has given the qualifiedlicensee education loan servicer (i) 21 days' notice in writing of the reasons for the proposed revocation or suspension and (ii) an opportunity to introduce evidence and be heard.

Within 14 days of mailing the notice, the licensee named therein may file with the clerkClerk of the Commission a written request for a hearing.

If a hearing is requested, the Commission shall not suspend or revoke the license except onbased theupon basis of findings made at such hearing.

The hearing shall be conducted in accordance with the provisionsCommission's ofRules. Title 12.1.

§ 6.2-2613.6.2-2615.

If the Commission determines that any qualifiedperson education loan servicer required to be licensed under this chapter has violated any provision of this chapter or any regulation adopted by the Commission pursuant thereto, or violated any other law or regulation applicable to the conduct of a licensee's business, the Commission may, upon 21 days' notice in writing, order such person to cease and desist from such practices and to comply with the provisions of this chapter.chapter and other applicable laws and regulations.

The notice shall be sent by certified mail to the principal place of business of thesuch qualifiedperson educationor loanother serviceraddress authorized under § 12.1-19.1 and shall state the grounds for the contemplated action.

Within 14 days of mailing the notice, the person named therein may file with the clerkClerk of the Commission a written request for a hearing.

If a hearing is requested, the Commission shall not issue a cease and desist order except onbased theupon basis of findings made at the hearing.

The hearing shall be conducted in accordance with the provisionsCommission's ofRules. Title 12.1.

The Commission may enforce compliance with any such order issued under this section by imposition and collection of such fines and penalties as may be prescribed by Commissionlaw. regulations.

§ 6.2-2614.6.2-2616.

Compliance with federal laws.

A qualified education loan servicer shall comply with all applicable federal laws and regulations relating to qualified education loan servicing, including, but not limited to, the Truth in Lending Act, 15 U.S.C.

§ 1601 et seq., as amended, and regulations promulgated thereunder.

In addition to any other remedies provided by law, a violation of any such federal law or regulation shall be deemed a violation of this chapter and a basis upon which the Commissioner may take enforcement action pursuant to § 6.2-2611, 6.2-2613, or 6.2-2615.

§ 6.2-2615.

The Commission may impose a civil penalty not exceeding $2,500 upon any person required to be licensed under this chapter who theit Commission determines, in proceedings commenced in accordance with the Commission's Rules, has violated any of the provisions of this chapter or regulations adopted by the Commission pursuant thereto or violated any other law or regulation applicable to conduct of the licensee'sperson's activities.business.

§ 6.2-2616.

Nationwide Mortgage Licensing System and Registry.

A.

Any person required to be licensed as a qualified education loan servicer pursuant to this chapter shall also be required to register with the Nationwide Mortgage Licensing System and Registry as a condition for obtaining a license.

Such person shall be subject to such registration and renewal requirements as may be established by the Registry, in addition to the requirements of this chapter.

Regulations adopted by the Commission pursuant to § 6.2-2617 shall include any terms, conditions, or requirements applicable to such registration and renewal.

Any fees required by the Registry shall be separate and apart from any fees imposed by this chapter.

B.

The Commission may include in its regulations adopted pursuant to § 6.2-2617 authorization for the Registry to collect any fees imposed by this chapter and to remit such fees to the Commission.

Before adopting any such regulation, the Commission shall give reasonable notice of its content and shall afford interested parties an opportunity to present evidence and be heard, in accordance with the Commission's Rules.

The State Corporation Commission for the purpose of investigating individuals who are current or proposed members, senior officers, directors, and principals of an applicant or person licensed under Chapter 16 (§ 6.2-1600 et seq.) or Chapter, 19 (§ 6.2-1900 et seq.),seq.) or 26 (§ 6.2-2600 et seq.) of Title 6.2.

That the provisions of the first enactment of this act shall become effective on JanuaryJuly 1, 2019.

That beginning October 1, 2018, the State Corporation Commission (Commission) shall beginprovide acceptinga applicationsreport for licenses to bemembers issued pursuant to Chapter 26 (§ 6.2-2600 et seq.) of Title 6.2 of the CodeHouse ofand Virginia,Senate asCommittees created by this act, on Commerce and afterLabor, January 1, 2019, provided that the applicationHouse processCommittee shallon beEducation, consistentand with the provisionsSenate ofCommittee §on 6.2-2602Education ofand theHealth Codeon ofor Virginia,before asNovember created1, by2020, thisthat act.contains the following:

Upon(i) the filingnumber of suchlicenses anissued applicationunder priorChapter to26 January(§ 1,6.2-2600 2019,et theseq.) Commissioner of FinancialTitle Institutions6.2 shall be authorized prior to such date to commence making such investigations as he deems necessary to determine if the applicant has complied with all applicable provisions of law and regulations, provided that such investigations are conducted in a manner consistent with the provisions of § 6.2-2602 of the Code of Virginia,Virginia as created by this act.act (the Chapter);

(ii) the number of applications for a license under the Chapter that have been denied and the reasons for such denials;

(iii) the number of licensees under the Chapter that filed a written report with the Commission pursuant to subsection A of § 6.2-2610 of the Chapter, and for which any of the events enumerated in subdivisions A 1 through 5 of § 6.2-2610 of the Chapter the written report was filed;

(iv) the number and nature of complaints received under the Chapter;

and (v) the number of investigations and examinations resulting from such complaints and the disposition of such investigations and examinations.

That theon Stateor Corporationbefore CommissionMarch (the1, Commission)2019, shall provide a report to members of the HouseState andCorporation SenateCommission Committeesshall onbegin Commerceaccepting andapplications Labor,for thelicenses Houseto Committeebe onissued Education,pursuant andto theChapter Senate26 Committee(§ on6.2-2600 Educationet andseq.) Healthof onTitle or6.2 beforeof November 1, 2020, that provides data on (i) the volumeCode and severity of complaintsVirginia involvingas qualifiedcreated educationby loansthis thatact arewhen investigatedsuch bychapter thebecomes Commission;effective.

(ii)Applications filed with the numberCommission ofmay licensesbe issuedinvestigated underprior Chapterto 26July (§1, 6.2-26002019, etin seq.)accordance ofwith Title§ 6.26.2-2604 of the Code of Virginia,Virginia as created by this actact. (the Chapter), the number of applications for a license under the Chapter that have been denied, and the reasons for such denials;

(iii)5. the number of licensees under the Chapter that filed a written report with the Commission pursuant to § 6.2-2608 of the Chapter, and for which of the events enumerated in subdivisions through 5 of § 6.2-2608 of the Chapter the written report was filed;

(iv)That thenothing numberin andthis natureact ofshall complaintsprohibit receivedany underperson thefrom Chapterservicing froman outstanding qualified education loan borrowersthat regardingthe mattersperson withinbecame theresponsible scopefor ofservicing theprior Chapter;to July 1, 2019.

and (v) the number of investigations and examinations resulting from such complaints and violations of the Chapter and the disposition of such investigations and examinations.