District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0037 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	ENGROSSED ORIGINAL
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8		-	AN ACT
9		-
10		-	_____________
11		-
12		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13		-
14		-	______________________
15		-
16		-
17		-	To amend the Department of Insurance and Securities Regulation Establishment Act of 1996 to
18		-	prevent abusive acts or practices related to student education loans and private education
19		-	loans, require the creation of a revised Student Loan Borrower Bill of Rights by January
20		-	1, 2025, clarify that student loan servicers under contract with the United States
21		-	Department of Education shall be automatically issued a limited student loan servicing
22		-	license upon meeting certain criteria, clarify the rights and obligations regarding denials
23		-	of applications for approval, prescribe prohibited conduct on the part of student loan
24		-	servicers and private education lenders, assign duties to student loan servicers and private
25		-	education lenders, establish responsibilities of private education lenders regarding
26		-	disability discharge and cosigner release, authorize the Attorney General to bring an
27		-	action for a violation of certain provisions, and make a conforming amendment.
28		-
29		-	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
30		-	act may be cited as the “New Student Loan Borrower Bill of Rights Amendment Act of 2024”.
31		-
32		-	Sec. 2. The Department of Insurance and Securities Regulation Establishment Act of
33		-	1996, effective May 21, 1997 (D.C. Law 11-268; D.C. Official Code § 31-101 et seq.), is
34		-	amended as follows:
35		-	(a) Section 2 (D.C. Official Code § 31-101) is amended as follows:
36		-	(1) Paragraph (1) is redesignated as paragraph (1A).
37		-	(2) A new paragraph (1) is added to read as follows:
38		-	“(1) “Abusive act or practice” means an act or practice that:
39		-	“(A) Materially interferes with the ability of a student loan borrower to
40		-	understand a term or condition of a student education loan or private education loan;
41		-	“(B) Takes unreasonable advantage of:
42		-	“(i) A lack of understanding on the part of a student loan borrower
43		-	of the material risks, costs, or conditions of a student education loan or private education loan;
44		-	“(ii) The inability of a student loan borrower to protect the interests
45		-	of the student loan borrower when selecting or using:
46		-	“(I) A student education loan or private education loan; or ENROLLED ORIGINAL
	8	+	A BILL 1
	9	+	2
	10	+	25-37 3
	11	+	4
	12	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5
	13	+	6
	14	+	______________________ 7
	15	+	8
	16	+	9
	17	+	To amend the Department of Insurance and Securities Regulation Establishment Act of 1996 to 10
	18	+	prevent abusive acts or practices related to student education loans and private education 11
	19	+	loans, require the creation of a revised Student Loan Borrower Bill of Rights by January 12
	20	+	1, 2025, to clarify that student loan servicers under contract with the United States 13
	21	+	Department of Education shall be automatically issued a limited student loan servicing 14
	22	+	license upon meeting certain criteria, to clarify the rights and obligations regarding 15
	23	+	denials of applications for approval, to prescribe prohibited conduct on the part of student 16
	24	+	loan servicers and private education lenders, to assign duties to student loan servicers and 17
	25	+	private education lenders, to establish responsibilities of private education lenders 18
	26	+	regarding disability discharge and cosigner release, to authorize the Attorney General to 19
	27	+	bring an action for a violation of certain provisions, and to make a conforming 20
	28	+	amendment. 21
	29	+	22
	30	+	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 23
	31	+	act may be cited as the “New Student Loan Borrower Bill of Rights Amendment Act of 2024”. 24
	32	+	Sec. 2. The Department of Insurance and Securities Regulation Establishment Act of 25
	33	+	1996, effective May 21, 1997 (D.C. Law 11-268; D.C. Official Code § 31-101 et seq.), is 26
	34	+	amended as follows: 27
	35	+	(a) Section 2 (D.C. Official Code § 31-101) is amended as follows: 28
	36	+	(1) A new paragraph (1A) is added to read as follows: 29
	37	+	“(1A) “Abusive act or practice” means an act or practice that: 30 ENGROSSED ORIGINAL
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48	39
49	40
50	41
51	42		2
52	43
53		-	“(II) A feature, term, or condition of a student education
54		-	loan or private education loan; or
55		-	“(iii) The reasonable reliance by the student loan borrower on a
56		-	person engaged in servicing a student education loan or private education loan to act in the
57		-	interests of the borrower; or
58		-	“(C) Misrepresents the amount, nature, or terms of any fee or payment due
59		-	or claimed to be due on a student education loan or private education loan, the terms and
60		-	conditions of the student education loan agreement or private education loan agreement or the
61		-	student loan borrower's obligations under the student education loan or private education loan.”.
62		-	(2) A new paragraph (2A) is added to read as follows:
63		-	“(2A)(A) “Cosigner” means an individual who is liable for the obligation of a
64		-	student loan borrower without compensation, regardless of how the individual is designated in
65		-	the contract or instrument with respect to that obligation, including an obligation under a private
66		-	education loan extended to consolidate a student loan borrower’s pre-existing student loans.
67		-	“(B) The term includes an individual whose signature is requested as a
68		-	condition to grant credit or to forbear on collection, but does not include a spouse of a student
69		-	loan borrower, the signature of whom is needed to perfect the security interest in a loan.”.
70		-	(3) New paragraphs (6C), (6D), (6E), (6F), and (6G) are added to read as follows:
71		-	“(6C) “Overpayment” means a payment on a student education loan or private
72		-	education loan in excess of the monthly amount due from the student loan borrower on a student
73		-	education loan or private education loan.
74		-	“(6D) “Partial payment” means a payment on a student education loan account
75		-	that contains multiple individual loans in an amount less than the amount necessary to satisfy the
76		-	outstanding payment due on all loans in the student education loan account.
77		-	“(6E)(A) “Postsecondary education expense” means an expense related to
78		-	enrollment in or attendance at a postsecondary education institution regardless of whether the
79		-	debt incurred by a student to pay those expenses is owed to the provider of postsecondary
80		-	education whose school, program, or facility the student attends.
81		-	(B) For the purpose of this paragraph, the term “postsecondary”
82		-	has the same meaning as that term is defined in section 201(12B) of the Education Licensure
83		-	Commission Act of 1976, effective April 6, 1977 (D.C. Law 1-104; D.C. Official Code § 38-
84		-	1302(12B)).
85		-	“(6F) “Private education lender” means a person engaged in the business of
86		-	securing, making, or extending private education loans, or a holder of a private education loan.
87		-	The term does not include, to the extent preempted by federal law:
88		-	“(A) A bank or credit union;
89		-	“(B) A wholly owned subsidiary of a bank or credit union; or
90		-	“(C) An operating subsidiary of a bank or credit union where each owner
91		-	of the operating subsidiary is wholly owned by the same bank or credit union. ENROLLED ORIGINAL
	44	+	“(A) Materially interferes with the ability of a student loan borrower to 31
	45	+	understand a term or condition of a student education loan or private education loan; 32
	46	+	“(B) Takes unreasonable advantage of: 33
	47	+	“(i) A lack of understanding on the part of a student loan borrower 34
	48	+	of the material risks, costs, or conditions of a student education loan or private education loan; 35
	49	+	“(ii) The inability of a student loan borrower to protect the interests 36
	50	+	of the student loan borrower when selecting or using: 37
	51	+	“(I) A student education loan or private education loan; or 38
	52	+	“(II) A feature, term, or condition of a student education 39
	53	+	loan or private education loan; or 40
	54	+	“(iii) The reasonable reliance by the student loan borrower on a 41
	55	+	person engaged in servicing a student education loan or private education loan to act in the 42
	56	+	interests of the borrower; or 43
	57	+	“(C) Misrepresents the amount, nature, or terms of any fee or payment due 44
	58	+	or claimed to be due on a student education loan or private education loan, the terms and 45
	59	+	conditions of the student education loan agreement or private education loan agreement or the 46
	60	+	student loan borrower's obligations under the student education loan or private education loan.”. 47
	61	+	(2) A new paragraph (2A) is added to read as follows: 48
	62	+	“(2A)(A) “Cosigner” means an individual who is liable for the obligation of a 49
	63	+	student loan borrower without compensation, regardless of how the individual is designated in 50 ENGROSSED ORIGINAL
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96	68		3
97	69
98		-	“(6G)(A) “Private education loan” means an extension of credit that is not made,
99		-	insured, or guaranteed under Title IV of the Higher Education Act of 1965 (20 U.S.C. § 1070 et
100		-	seq.), and is extended to a consumer expressly, in whole or in part, for postsecondary education
101		-	expenses regardless of whether the loan is provided by the educational institution that the student
102		-	attends.
103		-	“(B) The term does not include:
104		-	“(i) Open-end credit or any loan that is secured by real property or
105		-	a dwelling; or
106		-	“(ii) An extension of credit in which the covered educational
107		-	institution is the creditor if the term is 90 days or less or an interest rate will not be applied to the
108		-	credit balance and the term of the extension of credit is one year or less, even if the credit is
109		-	payable in more than 4 installments.
110		-	(4) Paragraph (9) is amended to read as follows:
111		-	“(9) “Student loan borrower” means a resident of the District of Columbia who
112		-	has received or agreed to pay a student education loan or a private education loan to fund his or
113		-	her postsecondary education.”.
114		-	(5) A new paragraph (13) is added to read as follows:
115		-	“(13) “Total and permanent disability” is the condition of an individual who:
116		-	“(A) Has been determined by the United State Secretary of Veterans
117		-	Affairs to be unemployable due to a service-connected disability; or
118		-	“(B) Is unable to engage in any substantial gainful activity by reason of
119		-	any medically determinable physical or mental impairment that can be expected to result in
120		-	death, has lasted for a continuous period of not less than 12 months, or can be expected to last for
121		-	a continuous period of not less than 12 months.”.
122		-	(b) Section 7a(c)(10) (D.C. Official Code § 31-106.01(c)(10)) is amended to read as
123		-	follows:
124		-	“(10) By January 1, 2025, develop an updated consumer-facing student loan borrower bill
125		-	of rights, and make it available on the Department’s website.”.
126		-	(c) Section 7b (D.C. Official Code § 31-106.02) is amended as follows:
127		-	(1) Subsection (c) is amended as follows:
128		-	(A) Paragraph (1)(B) is amended by striking the phrase “Application fees
129		-	and other fees” and inserting the phrase “Application fees, investigation fees, and other fees” in
130		-	its place.
131		-	(B) A new paragraph (3) is added to read as follows:
132		-	“(3) The Commissioner shall automatically issue a limited, irrevocable license to
133		-	a person or entity servicing a student education loan under contract with the United States
134		-	Department of Education provided that:
135		-	“(A)(i), A person or entity seeking to act within the District of Columbia
136		-	as a student loan servicer is exempt from the application procedures established pursuant to this ENROLLED ORIGINAL
	70	+	the contract or instrument with respect to that obligation, including an obligation under a private 51
	71	+	education loan extended to consolidate a student loan borrower’s pre-existing student loans. 52
	72	+	“(B) The term includes an individual whose signature is requested as a 53
	73	+	condition to grant credit or to forbear on collection, but does not include a spouse of a student 54
	74	+	loan borrower, the signature of whom is needed to perfect the security interest in a loan.”. 55
	75	+	(3) New paragraphs (6C), (6D), (6E), (6F), and (6G) are added to read as follows: 56
	76	+	“(6C) “Overpayment” means a payment on a student education loan or private 57
	77	+	education loan in excess of the monthly amount due from the student loan borrower on a student 58
	78	+	education loan or private education loan. 59
	79	+	“(6D) “Partial payment” means a payment on a student education loan account 60
	80	+	that contains multiple individual loans in an amount less than the amount necessary to satisfy the 61
	81	+	outstanding payment due on all loans in the student education loan account. 62
	82	+	“(6E)(A) “Postsecondary education expense” means an expense related to 63
	83	+	enrollment in or attendance at a postsecondary education institution regardless of whether the 64
	84	+	debt incurred by a student to pay those expenses is owed to the provider of postsecondary 65
	85	+	education whose school, program, or facility the student attends. 66
	86	+	(B) For the purpose of this paragraph, the term “postsecondary” 67
	87	+	has the same meaning as that term is defined in section 201(12B) of the Education Licensure 68
	88	+	Commission Act of 1976, effective April 6, 1977 (D.C. Law 1-104; D.C. Official Code § 38-69
	89	+	1302(12B)). 70 ENGROSSED ORIGINAL
137	90
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142	95
143		-	subsection, other than the requirements of paragraphs (1)(B) and (1)(D) of this subsection, to the
144		-	extent that the student loan servicing performed is conducted pursuant to a contract awarded by
145		-	the United States Secretary of Education under 20 U.S.C. § 1087f.
146		-	“(ii) The Commissioner shall prescribe the procedure to document
147		-	eligibility for the exemption and maintain records documenting each person and entity issued a
148		-	license pursuant to this paragraph.
149		-	“(B) A person or entity meeting the criteria set forth in subparagraph (A)
150		-	of this paragraph shall be issued a license by the Commissioner for the student loan servicing of
151		-	student education loans under contract with the United States Department of Education and shall
152		-	be deemed by the Commissioner to have met all the requirements established by subparagraphs
153		-	(1)(A) and (C) of this subsection.
154		-	“(C) The provisions of subsection (h) of this section shall not apply to a
155		-	person or entity issued a limited license pursuant to this section to the extent that the person or
156		-	entity is servicing a federal student education loan.
157		-	“(D)(i) A person or entity issued a license pursuant to this section shall
158		-	provide the Commissioner with written notice within 7 days following the notification of the
159		-	expiration, revocation, or termination of any contract awarded by the United States Secretary of
160		-	Education under 20 U.S.C § 1087f (“written notice”).
161		-	“(ii) After providing the written notice required by sub-
162		-	subparagraph (i) of this subparagraph, the person or entity shall have 30 days to satisfy all the
163		-	requirements established under this section in order to continue to act within the District of
164		-	Columbia as a student loan servicer for federal student education loans.
165		-	“(iii) At the expiration of the 30-day period provided in sub-
166		-	subparagraph (ii) of this subparagraph, if the person or entity has not satisfied the requirements
167		-	established pursuant to this section, the Commissioner shall immediately suspend any license
168		-	granted under this section.
169		-	“(E) In the case of student loan servicing that is not conducted pursuant to
170		-	a contract awarded by the United States Secretary of Education under 20 U.S.C. § 1087f, nothing
171		-	in this section shall prevent the Commissioner from issuing an order to temporarily or
172		-	permanently prohibit a person or entity from acting as a student loan servicer.
173		-	“(F) In the case of student loan servicing conducted pursuant to a contract
174		-	awarded by the United States Secretary of Education under 20 U.S.C § 1087f, nothing in this
175		-	section shall prevent the Commissioner from issuing a cease-and-desist order or an injunction
176		-	against a student loan servicer to cease activities in violation of this act or D.C. Official Code
177		-	§28-3901 et seq.”.
178		-	(2) Subsection (g)(1)(C) is amended by striking the phrase “The Commissioner
179		-	may deny an application for renewal” and inserting the phrase “Except as provided under
180		-	subsection (c)(3) of this section, the Commissioner may deny an application for renewal” in its
181		-	place. ENROLLED ORIGINAL
	96	+	“(6F) “Private education lender” means a person engaged in the business of 71
	97	+	securing, making, or extending private education loans, or a holder of a private education loan. 72
	98	+	The term does not include, to the extent preempted by federal law: 73
	99	+	“(A) A bank or credit union; 74
	100	+	“(B) A wholly owned subsidiary of a bank or credit union; or 75
	101	+	“(C) An operating subsidiary of a bank or credit union where each owner 76
	102	+	of the operating subsidiary is wholly owned by the same bank or credit union. 77
	103	+	“(6G)(A) “Private education loan” means an extension of credit that is not made, 78
	104	+	insured, or guaranteed under Title IV of the Higher Education Act of 1965 (20 U.S.C. § 1070 et 79
	105	+	seq.), and is extended to a consumer expressly, in whole or in part, for postsecondary education 80
	106	+	expenses regardless of whether the loan is provided by the educational institution that the student 81
	107	+	attends. 82
	108	+	“(B) The term does not include: 83
	109	+	“(i) Open-end credit or any loan that is secured by real property or 84
	110	+	a dwelling; or 85
	111	+	“(ii) An extension of credit in which the covered educational 86
	112	+	institution is the creditor if the term is 90 days or less or an interest rate shall not be applied to 87
	113	+	the credit balance and the term of the extension of credit is one year or less, even if the credit is 88
	114	+	payable in more than 4 installments. 89
	115	+	(4) Paragraph (9) is amended to read as follows: 90 ENGROSSED ORIGINAL
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187	121
188		-	(3) A new subsection (k) is added to read as follows:
189		-	“(k) In a format prescribed by the Commissioner, a licensee shall maintain the
190		-	contact information for the Department and the Ombudsman, as defined in section 2(6B), on the
191		-	licensee’s website.”.
192		-	(d) New sections 7b-1, 7b-2, 7b-3, 7b-4, and 7b-5 are added to read as follows:
193		-	“Sec. 7b-1. Prohibited conduct – student loan servicers.
194		-	“(a) No student loan servicer shall:
195		-	“(1) Directly or indirectly employ any scheme, device, or artifice to defraud a
196		-	student loan borrower;
197		-	“(2) Directly or indirectly employ any scheme, device, or artifice to mislead a
198		-	student loan borrower;
199		-	“(3) Engage in any unfair or deceptive practice toward any person or misrepresent
200		-	or omit any material information in connection with the servicing of a student education loan,
201		-	including an abusive act and practice;
202		-	“(4) Obtain property by fraud;
203		-	“(5) Obtain property by misrepresentation;
204		-	“(6) Misapply student education loan payments to the outstanding balance of a
205		-	student education loan;
206		-	“(7) Provide inaccurate information to a credit bureau, harming a student loan
207		-	borrower's creditworthiness;
208		-	“(8) Fail to report both the favorable and unfavorable payment history of the
209		-	student loan borrower to a nationally recognized consumer credit bureau at least annually if the
210		-	student loan servicer regularly reports information to a credit bureau;
211		-	“(9) Refuse to communicate with an authorized representative of the student loan
212		-	borrower who provides a written authorization signed by the student loan borrower; except, that
213		-	the student loan servicer may adopt procedures reasonably related to verifying that the
214		-	representative is authorized to act on behalf of the student loan borrower;
215		-	“(10) Make a false statement or make an omission of a material fact in connection
216		-	with any information or report filed with a governmental agency or in connection with any
217		-	investigation conducted by the Commissioner or another governmental agency;
218		-	“(11) Fail to respond within 15 business days to a communication from the
219		-	Department, or the Office of the Attorney General, or within such shorter reasonable period of
220		-	time as may be requested by the Department or the Attorney General; or
221		-	“(12)(A) Fail to respond within 15 business days to a consumer complaint
222		-	submitted to the student loan servicer by the Department or the Office of the Attorney General.
223		-	“(B) A student loan servicer may request additional time to respond to the
224		-	complaint, up to a maximum of 45 business days, provided that the request is accompanied by an
225		-	explanation as to why additional time is reasonable and necessary.
226		-	“Sec. 7b-2. Affirmative duties – student loan servicers. ENROLLED ORIGINAL
	122	+	“(9) “Student loan borrower” means a resident of the District of Columbia who 91
	123	+	has received or agreed to pay a student education loan or a private education loan to fund his or 92
	124	+	her postsecondary education.”. 93
	125	+	(5) A new paragraph (13) is added to read as follows: 94
	126	+	“(13) “Total and permanent disability” is the condition of an individual who: 95
	127	+	“(A) Has been determined by the United State Secretary of Veterans 96
	128	+	Affairs to be unemployable due to a service-connected disability; or 97
	129	+	“(B) Is unable to engage in any substantial gainful activity by reason of 98
	130	+	any medically determinable physical or mental impairment that can be expected to result in 99
	131	+	death, has lasted for a continuous period of not less than 12 months, or can be expected to last for 100
	132	+	a continuous period of not less than 12 months.”. 101
	133	+	(b) Section 7a(c)(10) (D.C. Official Code § 31-106.01(c)(10)) is amended to read as 102
	134	+	follows: 103
	135	+	“(10) By January 1, 2025, develop an updated consumer-facing student loan borrower bill 104
	136	+	of rights, and make it available on the Department’s website.”. 105
	137	+	(c) Section 7b (D.C. Official Code § 31-106.02) is amended as follows: 106
	138	+	(1) Subsection (c) is amended as follows: 107
	139	+	(A) Paragraph (1)(B) is amended by striking the phrase “Application fees 108
	140	+	and other fees” and inserting the phrase “Application fees, investigation fees, and other fees” in 109
	141	+	its place. 110 ENGROSSED ORIGINAL
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229	144
230	145
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232	147
233		-	“(a) Except as otherwise provided pursuant to federal law or a student education loan
234		-	agreement, a student loan servicer shall:
235		-	“(1) Respond to any written inquiry from a student loan borrower or the
236		-	representative of a student loan borrower by:
237		-	“(A) Acknowledging receipt of the inquiry within 10 business days; and
238		-	“(B) Providing information relating to the inquiry, and, if applicable, the
239		-	action the student loan servicer will take to correct the account or an explanation of the student
240		-	loan servicer's determination that the borrower's account is correct within 30 business days,
241		-	including copies of all information and account information used by the student loan servicer in
242		-	reaching the determination.
243		-	“(2) Inquire of a student loan borrower who has an overpayment on how the
244		-	student loan borrower wants to apply the overpayment to a student education loan. A student
245		-	loan borrower's instruction on how to apply an overpayment to a student education loan shall
246		-	stay in effect for any future overpayments during the term of the student education loan until the
247		-	borrower provides different instructions.
248		-	“(3)(A) In the absence of direction provided by a student loan borrower pursuant
249		-	to paragraph (2) of this subsection, allocate an overpayment on a student loan account in a
250		-	manner that reduces the total cost of the student loan, including principal and balance, interest,
251		-	and fees.
252		-	“(B) A student loan servicer shall be deemed to meet the requirements of
253		-	this paragraph if the servicer allocates the overpayment to the loan with the highest interest rate
254		-	on the student loan borrower’s account, unless the student loan borrower specifies otherwise.
255		-	“(4)(A) In the absence of direction provided by a student loan borrower pursuant
256		-	to paragraph (2) of this subsection, apply partial payments in a manner that minimizes late fees
257		-	and negative credit reporting.
258		-	“(B) If there are multiple loans on a student loan borrower’s account with
259		-	an equal stage of delinquency, apply the partial payment in a way that satisfies as many
260		-	individual loan payments as possible on a student loan borrower's account.
261		-	“(b) Except as otherwise provided by federal law or regulation, the following
262		-	requirements shall be applicable to a student loan servicer in the event of the sale, assignment, or
263		-	other transfer of the servicing of a student education loan that results in a change in the identity
264		-	of the student loan servicer to whom a student loan borrower is required to send payments or
265		-	direct any communication concerning the student education loan:
266		-	“(1)(A) As a condition of a sale, an assignment, or any other transfer of the
267		-	servicing of a student education loan, a student loan servicer shall require the new student loan
268		-	servicer to honor all benefits originally represented as available to a student loan borrower during
269		-	the repayment of the student education loan and preserve the availability of those benefits,
270		-	including any benefits for which the student loan borrower has not yet qualified. ENROLLED ORIGINAL
	148	+	(B) A new paragraph (3) is added to read as follows: 111
	149	+	“(3) The Commissioner shall automatically issue a limited, irrevocable license to 112
	150	+	a person or entity servicing a student education loan under contract with the United States 113
	151	+	Department of Education provided that: 114
	152	+	“(A)(i), A person or entity seeking to act within the District of Columbia 115
	153	+	as a student loan servicer is exempt from the application procedures established pursuant to this 116
	154	+	subsection, other than the requirements of paragraphs (1)(B) and (1)(D) of this subsection, to the 117
	155	+	extent that the student loan servicing performed is conducted pursuant to a contract awarded by 118
	156	+	the United States Secretary of Education under 20 U.S.C. § 1087f. 119
	157	+	“(ii) The Commissioner shall prescribe the procedure to document 120
	158	+	eligibility for the exemption and maintain records documenting each person and entity issued a 121
	159	+	license pursuant to this paragraph. 122
	160	+	“(B) A person or entity meeting the criteria set forth in subparagraph (A) 123
	161	+	of this paragraph shall be issued a license by the Commissioner for the student loan servicing of 124
	162	+	student education loans under contract with the United States Department of Education and shall 125
	163	+	be deemed by the Commissioner to have met all the requirements established by subparagraphs 126
	164	+	(1)(A) and (C) of this subsection. 127
	165	+	“(C) The provisions of subsection (h) of this section shall not apply to a 128
	166	+	person or entity issued a limited license pursuant to this section to the extent that the person or 129
	167	+	entity is servicing a federal student education loan. 130 ENGROSSED ORIGINAL
271	168
272	169
273	170
274	171
275	172		7
276	173
277		-	“(B) If a student loan servicer is not also the loan holder or is not acting on
278		-	behalf of the loan holder, the student loan servicer satisfies the requirement established by this
279		-	paragraph by providing the new student loan servicer with the information necessary for the new
280		-	student loan servicer to honor all benefits originally represented as available to a student loan
281		-	borrower during the repayment of the student education loan and preserve the availability of the
282		-	benefits, including any benefits for which the student loan borrower has not yet qualified.
283		-	“(2) A student loan servicer shall transfer to the new student loan servicer for the
284		-	student education loan all information regarding the student loan borrower, the account of the
285		-	student loan borrower, and the student education loan of the student loan borrower. The
286		-	information shall include the repayment status of the student loan borrower and any benefits
287		-	associated with the student education loan of the borrower.
288		-	“(3) The student loan servicer shall complete the transfer of information required
289		-	pursuant to paragraph (2) of this subsection within 45 calendar days after the sale, assignment, or
290		-	other transfer of the servicing of the student education loan.
291		-	“(4) The transferring student loan servicer shall notify affected student loan
292		-	borrowers of the sale, assignment, or other transfer of the servicing of the student education loan
293		-	at least 7 days before the next payment on the loan is due, which notice shall include:
294		-	“(A) The identity of the new student loan servicer;
295		-	“(B) The effective date of the transfer of the student loan borrower’s
296		-	student education loan to the new student loan servicer;
297		-	“(C) The date on which the existing student loan servicer will no longer
298		-	accept payments and whether and by when any action will need to be taken to update auto-debit
299		-	payments; and
300		-	“(D) The contact information for the new student loan servicer, including
301		-	phone number, email address, mailing address, and fax number.
302		-	“(c) A student loan servicer who obtains the right to service a student education loan shall
303		-	adopt policies and procedures to verify that the student loan servicer has received all information
304		-	regarding the student loan borrower, the account of the student loan borrower, and the student
305		-	education loan of the student loan borrower, including the repayment status of the student loan
306		-	borrower and any benefits associated with the student education loan of the student loan
307		-	borrower.
308		-	“(d) A student loan servicer shall evaluate a student loan borrower for eligibility for an
309		-	income-driven repayment program prior to placing the student loan borrower in forbearance or
310		-	default if an income-driven repayment program is available to the student loan borrower.
311		-	“Sec. 7b-3. Prohibited acts – private education lenders.
312		-	“(a)(1) A private education loan executed after the applicability date of this section shall
313		-	not include a provision that permits the private education lender to accelerate, in whole or in part,
314		-	payments on a private education loan except in cases of payment default or place any loan or
315		-	account into default or accelerate a loan for any reason other than for payment default. ENROLLED ORIGINAL
	174	+	“(D)(i) A person or entity issued a license pursuant to this section shall 131
	175	+	provide the Commissioner with written notice within 7 days following the notification of the 132
	176	+	expiration, revocation, or termination of any contract awarded by the United States Secretary of 133
	177	+	Education under 20 U.S.C § 1087f (“written notice”). 134
	178	+	“(ii) After providing the written notice required by sub-135
	179	+	subparagraph (i) of this subparagraph, the person or entity shall have 30 days to satisfy all the 136
	180	+	requirements established under this section in order to continue to act within the District of 137
	181	+	Columbia as a student loan servicer for federal student education loans. 138
	182	+	“(iii) At the expiration of the 30-day period provided in sub-139
	183	+	subparagraph (ii) of this subparagraph, if the person or entity has not satisfied the requirements 140
	184	+	established pursuant to this section, the Commissioner shall immediately suspend any license 141
	185	+	granted under this section. 142
	186	+	“(E) In the case of student loan servicing that is not conducted pursuant to 143
	187	+	a contract awarded by the United States Secretary of Education under 20 U.S.C. § 1087f, nothing 144
	188	+	in this section shall prevent the Commissioner from issuing an order to temporarily or 145
	189	+	permanently prohibit a person or entity from acting as a student loan servicer. 146
	190	+	“(F) In the case of student loan servicing conducted pursuant to a contract 147
	191	+	awarded by the United States Secretary of Education under 20 U.S.C § 1087f, nothing in this 148
	192	+	section shall prevent the Commissioner from issuing a cease-and-desist order or an injunction 149 ENGROSSED ORIGINAL
316	193
317	194
318	195
319	196
320	197		8
321	198
322		-	“(2) A private education loan executed prior to the applicability date of this
323		-	section shall permit the private education lender to accelerate payments only if the promissory
324		-	note or private education loan agreement explicitly authorizes an acceleration and only for the
325		-	reasons stated in the note or agreement.
326		-	“(3) In the event of the death of a cosigner, the lender shall not attempt to collect
327		-	against the cosigner’s estate other than for payment default.
328		-	“(4) Upon receiving notification of the death or bankruptcy of a cosigner, when
329		-	the private education loan is not more than 60 days delinquent at the time of the notification, the
330		-	private education lender shall not change any terms or benefits under the promissory note,
331		-	repayment schedule, repayment terms, or monthly payment amount or any other provision
332		-	associated with the private education loan.
333		-	“(5) A private education lender shall not place any private education loan or
334		-	account into default or accelerate a private education loan while a student loan borrower is
335		-	seeking a loan modification or enrollment in a flexible repayment plan; except, that a private
336		-	education lender may place a private education loan or account into default or accelerate a
337		-	private education loan for payment default 90 days after the student loan borrower’s default.
338		-	“(b) A private education lender shall not:
339		-	“(1) Directly or indirectly employ any scheme, device, or artifice to defraud a
340		-	student loan borrower;
341		-	“(2) Directly or indirectly employ any scheme, device, or artifice to mislead a
342		-	student loan borrower;
343		-	“(3) Engage in any unfair or deceptive practice toward any person or misrepresent
344		-	or omit any material information in connection with the servicing of a private education loan,
345		-	including, abusive acts and practices;
346		-	“(4) Obtain property by fraud;
347		-	“(5) Obtain property by misrepresentation;
348		-	“(6) Misapply private education loan payments to the outstanding balance of a
349		-	private education loan;
350		-	“(7) Provide inaccurate information to a credit bureau, thereby harming a student
351		-	loan borrower’s creditworthiness;
352		-	“(8) Fail to report both the favorable and unfavorable payment history of the
353		-	student loan borrower to a nationally recognized consumer credit bureau at least annually if the
354		-	private education lender regularly reports information to a credit bureau;
355		-	“(9) Refuse to communicate with an authorized representative of the student loan
356		-	borrower who provides a written authorization signed by the student loan borrower; except, that
357		-	the private education lender may adopt procedures reasonably related to verifying that the
358		-	representative is authorized to act on behalf of the student loan borrower; ENROLLED ORIGINAL
	199	+	against a student loan servicer to cease activities in violation of this act or D.C. Official Code 150
	200	+	§28-3901 et seq.”. 151
	201	+	(2) Subsection (g)(1)(C) is amended by striking the phrase “The Commissioner 152
	202	+	may deny an application for renewal” and inserting the phrase “Except as provided under 153
	203	+	subsection (c)(3) of this section, the Commissioner may deny an application for renewal” in its 154
	204	+	place. 155
	205	+	(3) A new subsection (k) is added to read as follows: 156
	206	+	“(k) In a format prescribed by the Commissioner, a licensee shall maintain the 157
	207	+	contact information for the Department and the Ombudsman, as defined in section 7c(6B), on the 158
	208	+	licensee’s website.”. 159
	209	+	(d) New sections 7b-1, 7b-2, 7b-3, 7b-4, and 7b-5 are added to read as follows: 160
	210	+	“Sec. 7b-1. Prohibited conduct –student loan servicers. 161
	211	+	“(a) No student loan servicer shall: 162
	212	+	“(1) Directly or indirectly employ any scheme, device, or artifice to defraud a 163
	213	+	student loan borrower; 164
	214	+	“(2) Directly or indirectly employ any scheme, device, or artifice to mislead a 165
	215	+	student loan borrower; 166
	216	+	“(3) Engage in any unfair or deceptive practice toward any person or misrepresent 167
	217	+	or omit any material information in connection with the servicing of a student education loan, 168
	218	+	including an abusive act and practice; 169 ENGROSSED ORIGINAL
359	219
360	220
361	221
362	222
363	223		9
364	224
365		-	“(10) Make any false statement or make any omission of a material fact in
366		-	connection with any information or reports filed with a governmental agency or in connection
367		-	with any investigation conducted by the Commissioner or another governmental agency;
368		-	“(11) Fail to respond within 15 business days to communications from the
369		-	Department or the Office of the Attorney General, or within such shorter reasonable period of
370		-	time as may be requested by the Commissioner or the Attorney General; or
371		-	“(12)(A) Fail to respond within 15 business days to a consumer complaint
372		-	transmitted to the private education lender by the Department or the Office of the Attorney
373		-	General.
374		-	“(B) A private education lender may request additional time to respond to
375		-	the complaint, up to a maximum of 45 business days, provided that the request is accompanied
376		-	by an explanation as to why additional time is reasonable and necessary.
377		-	“Sec. 7b-4. Affirmative duties – private education lenders.
378		-	“(a) For a private education loan issued on or after the applicability date of this section:
379		-	“(1) A private education lender or student loan servicer acting on behalf of a
380		-	private education lender when notified of the total and permanent disability of a student loan
381		-	borrower or cosigner shall release any cosigner from the obligations under the private education
382		-	loan. The private education lender shall not attempt to collect a payment from a cosigner after
383		-	being notified of the total and permanent disability of the cosigner or borrower.
384		-	“(2) A private education lender shall notify a student loan borrower and cosigner
385		-	for a private education loan if either a cosigner or the student loan borrower is released from the
386		-	obligations of the private education loan under this subsection within 30 days of the release.
387		-	“(3) A private education lender that extends a private education loan to a student
388		-	loan borrower shall provide the student loan borrower an option to designate an individual to
389		-	have the legal authority to act on behalf of the student loan borrower with respect to the private
390		-	education loan in the event of the total and permanent disability of the student loan borrower.
391		-	“(4) In the event a cosigner is released from the obligations of a private education
392		-	loan pursuant to paragraph (1) of this subsection, the private education lender shall not require
393		-	the student loan borrower to obtain another cosigner on the private education loan obligation.
394		-	“(5) A private education lender shall not declare a default or accelerate the debt
395		-	against the student loan borrower on the sole basis of the release of the cosigner from the private
396		-	education loan obligation.
397		-	“(6) A private education lender shall when notified of the total and permanent
398		-	disability of a student loan borrower discharge the liability of the student loan borrower and
399		-	cosigner on the private education loan.
400		-	“(7) After receiving a notification pursuant to paragraph (1) of this subsection, the
401		-	private education lender shall not attempt to collect on the outstanding liability of the student
402		-	loan borrower or cosigner or monitor the disability status of the student loan borrower after the
403		-	date of discharge. ENROLLED ORIGINAL
	225	+	“(4) Obtain property by fraud; 170
	226	+	“(5) Obtain property by misrepresentation; 171
	227	+	“(6) Misapply student education loan payments to the outstanding balance of a 172
	228	+	student education loan; 173
	229	+	“(7) Provide inaccurate information to a credit bureau, harming a student loan 174
	230	+	borrower's creditworthiness; 175
	231	+	“(8) Fail to report both the favorable and unfavorable payment history of the 176
	232	+	student loan borrower to a nationally recognized consumer credit bureau at least annually if the 177
	233	+	student loan servicer regularly reports information to a credit bureau; 178
	234	+	“(9) Refuse to communicate with an authorized representative of the student loan 179
	235	+	borrower who provides a written authorization signed by the student loan borrower; except, that 180
	236	+	the student loan servicer may adopt procedures reasonably related to verifying that the 181
	237	+	representative is authorized to act on behalf of the student loan borrower; 182
	238	+	“(10) Make a false statement or make an omission of a material fact in connection 183
	239	+	with any information or report filed with a governmental agency or in connection with any 184
	240	+	investigation conducted by the Commissioner or another governmental agency; 185
	241	+	“(11) Fail to respond within 15 business days to a communication from the 186
	242	+	Department, or the Office of the Attorney General, or within such shorter reasonable period of 187
	243	+	time as may be requested by the Department or the Attorney General; or 188 ENGROSSED ORIGINAL
404	244
405	245
406	246
407	247
408	248		10
409	249
410		-	“(b) Availability of alternative repayment plans.
411		-	“(1) If a private education lender offers a student loan borrower flexible or
412		-	modified repayment options in connection with a private education loan, those flexible
413		-	repayment options shall be made available to all borrowers and the private education lender
414		-	shall:
415		-	“(A) Provide on its website a description of any alternative repayment
416		-	options offered by the private education lender for a private education loan; and
417		-	“(B) Establish policies and procedures to facilitate evaluation of private
418		-	education loan flexible repayment option requests, including providing accurate information
419		-	regarding any private education loan alternative repayment options that may be available to the
420		-	student loan borrower through a promissory note or that may have been marketed to the student
421		-	loan borrower through marketing materials.
422		-	“(2) A private education lender or a student loan servicer acting on behalf of a
423		-	private education lender shall consistently present and offer flexible or modified private
424		-	education loan repayment options to student loan borrowers with similar financial circumstances,
425		-	if the private education lender offers such repayment options.
426		-	“(c)(1) Prior to the extension of a private education loan that requires a cosigner, a private
427		-	education lender shall deliver the following information to the cosigner:
428		-	“(A) How the private education loan obligation shall appear on the
429		-	cosigner’s credit;
430		-	“(B) How the cosigner shall be notified if the private education loan
431		-	becomes delinquent, including how the cosigner can cure the delinquency in order to avoid
432		-	negative credit furnishing and loss of cosigner release eligibility; and
433		-	“(C) Eligibility for release of the cosigner’s obligation on the private
434		-	education loan, including the number of on-time payments and any other criteria required to
435		-	approve the release of the cosigner from the private education loan obligation.
436		-	“(2) Prior to offering a person a private education loan that is being used to
437		-	refinance an existing education loan, a private education lender shall provide the person a
438		-	disclosure that benefits and protections applicable to the existing loan may be lost due to the
439		-	refinancing.
440		-	“(3) The information provided pursuant to this section shall be provided on a one-
441		-	page information sheet in a 12-point font and shall be written in simple, clear, understandable
442		-	and easily readable language as provided in the Plain Writing Act of 2010 (5 U.S.C. § 301, note).
443		-	“(d)(1) For any private education loan that obligates a cosigner, a private education
444		-	lender shall provide the student loan borrower and the cosigner an annual written notice
445		-	containing information about cosigner release, including the administrative, objective criteria the
446		-	private education lender requires to approve the release of the cosigner from the private
447		-	education loan obligation and the process for applying for cosigner release. ENROLLED ORIGINAL
	250	+	“(12)(A) Fail to respond within 15 business days to a consumer complaint 189
	251	+	submitted to the student loan servicer by the Department or the Office of the Attorney General. 190
	252	+	“(B) A student loan servicer may request additional time to respond to the 191
	253	+	complaint, up to a maximum of 45 business days, provided that the request is accompanied by an 192
	254	+	explanation as to why additional time is reasonable and necessary. 193
	255	+	“Sec. 7b-2. Affirmative duties – student loan servicers. 194
	256	+	“(a) Except as otherwise provided pursuant to federal law or a student education loan 195
	257	+	agreement, a student loan servicer shall: 196
	258	+	“(1) Respond to any written inquiry from a student loan borrower or the 197
	259	+	representative of a student loan borrower by: 198
	260	+	“(A) Acknowledging receipt of the inquiry within 10 business days; and 199
	261	+	“(B) Providing information relating to the inquiry, and, if applicable, the 200
	262	+	action the student loan servicer will take to correct the account or an explanation of the student 201
	263	+	loan servicer's determination that the borrower's account is correct within 30 business days, 202
	264	+	including copies of all information and account information used by the student loan servicer in 203
	265	+	reaching the determination. 204
	266	+	“(2) Inquire of a student loan borrower who has an overpayment on how the 205
	267	+	student loan borrower wants to apply the overpayment to a student education loan. A student 206
	268	+	loan borrower's instruction on how to apply an overpayment to a student education loan shall 207 ENGROSSED ORIGINAL
448	269
449	270
450	271
451	272
452	273		11
453	274
454		-	“(2) If the student loan borrower has met the applicable requirements to be
455		-	eligible for cosigner release, the private education lender shall send the student loan borrower
456		-	and the cosigner a written notification by U.S. mail, and by electronic mail when a student loan
457		-	borrower or cosigner has elected to receive electronic communications from the private
458		-	education lender, informing the student loan borrower and cosigner that the requirements to be
459		-	eligible for cosigner release have been met.
460		-	“(3) A private education lender shall provide written notice to a borrower who
461		-	applies for cosigner release, but whose application is incomplete. The written notice shall include
462		-	a description of the information needed to consider the application complete and the date by
463		-	which the applicant must furnish the missing information.
464		-	“(4)(A) Within 30 days after a student loan borrower submits a completed
465		-	application for cosigner release, the private education lender shall send the student loan borrower
466		-	and the cosigner a written notice that informs the student loan borrower and cosigner whether the
467		-	cosigner release application has been approved or denied.
468		-	“(B) If the private education lender denies the request for cosigner release,
469		-	the student loan borrower may request any documents or information used in the determination,
470		-	including the credit score threshold used by the private education lender, the student loan
471		-	borrower’s consumer report, the student loan borrower’s credit score, and any other documents
472		-	specific to the student loan borrower. The private education lender shall also provide any adverse
473		-	action notices required under applicable federal law if the denial is based in whole or in part on
474		-	any information contained in a consumer report.
475		-	“(5) In response to a written or oral request for cosigner release, a private
476		-	education lender shall provide the information described in paragraph (1) of this subsection.
477		-	“(6) A private education lender shall not impose any restriction that permanently
478		-	bars a student loan borrower from qualifying for cosigner release, including restricting the
479		-	number of times a student loan borrower may apply for cosigner release.
480		-	“(7)(A) A private education lender shall not impose any negative consequences
481		-	on a student loan borrower or cosigner during the 60 days following the issuance of the notice
482		-	required pursuant to paragraph (3) of this subsection or until the private education lender makes
483		-	a final determination about a borrower’s cosigner release application.
484		-	“(B) For the purpose of this paragraph, the term “negative consequences”
485		-	includes the imposition of additional eligibility criteria, negative credit reporting, lost eligibility
486		-	for cosigner release, late fees, interest capitalization, or other financial penalty.
487		-	“(8)(A) For a private education loan executed after the applicable date of this
488		-	section, a private education lender shall not require more than 12 consecutive, on-time payments
489		-	as a requirement for cosigner release.
490		-	“(B) A student loan borrower who has paid the equivalent of 12 months of
491		-	principal and interest payments within any 12-month period shall be considered to have satisfied ENROLLED ORIGINAL
	275	+	stay in effect for any future overpayments during the term of the student education loan until the 208
	276	+	borrower provides different instructions. 209
	277	+	“(3)(A) In the absence of direction provided by a student loan borrower pursuant 210
	278	+	to paragraph (2) of this subsection, allocate an overpayment on a student loan account in a 211
	279	+	manner that reduces the total cost of the student loan, including principal and balance, interest, 212
	280	+	and fees. 213
	281	+	“(B) A student loan servicer shall be deemed to meet the requirements of 214
	282	+	this paragraph if the servicer allocates the overpayment to the loan with the highest interest rate 215
	283	+	on the student loan borrower’s account, unless the student loan borrower specifies otherwise. 216
	284	+	“(4)(A) In the absence of direction provided by a student loan borrower pursuant 217
	285	+	to paragraph (2) of this subsection, apply partial payments in a manner that minimizes late fees 218
	286	+	and negative credit reporting. 219
	287	+	“(B) If there are multiple loans on a student loan borrower’s account with 220
	288	+	an equal stage of delinquency, apply the partial payment in a way that satisfies as many 221
	289	+	individual loan payments as possible on a student loan borrower's account. 222
	290	+	“(b) Except as otherwise provided by federal law or regulation, the following 223
	291	+	requirements shall be applicable to a student loan servicer in the event of the sale, assignment, or 224
	292	+	other transfer of the servicing of a student education loan that results in a change in the identity 225
	293	+	of the student loan servicer to whom a student loan borrower is required to send payments or 226
	294	+	direct any communication concerning the student education loan: 227 ENGROSSED ORIGINAL
492	295
493	296
494	297
495	298
496	299		12
497	300
498		-	a consecutive, on-time payment requirement even if the student loan borrower has not made
499		-	payments monthly during the 12-month period.
500		-	“(9) If a student loan borrower or cosigner requests a change in terms that restarts
501		-	the counting of consecutive, on-time payments required for cosigner release, the private
502		-	education lender shall notify the student loan borrower and cosigner in writing of the impact of
503		-	the change and provide the student loan borrower or the cosigner the right to withdraw or reverse
504		-	the request to avoid that impact.
505		-	“(10)(A) A student loan borrower shall have the right to request a reconsideration
506		-	of a private education lender’s denial of a request for cosigner release, and the private education
507		-	lender shall permit the student loan borrower to submit additional documentation evidencing the
508		-	borrower’s ability to meet the payment obligations.
509		-	“(B) The student loan borrower may request review of the cosigner release
510		-	determination by a different employee than the employee who made the original determination.
511		-	“(11)(A) A private education lender shall establish and maintain a comprehensive
512		-	record-management system (“record-management system”) reasonably designed to ensure the
513		-	accuracy, integrity, and completeness of data and other information about cosigner release
514		-	applications and compliance with applicable District and federal laws, including the Equal Credit
515		-	Opportunity Act (15 U.S.C. § 1691 et seq.) and the Fair Credit Reporting Act (15 U.S.C. § 1681
516		-	et seq.).
517		-	“(B) The record-management system shall also include the:
518		-	“(i) Number of cosigner release applications received;
519		-	“(ii) Approval and denial rate; and
520		-	“(iii) primary reasons for any denial.
521		-	“(e)(1) A private education lender shall provide a cosigner with access to all documents
522		-	or records related to the cosigned private education loan that are available to the student loan
523		-	borrower.
524		-	“(2) If a private education lender provides electronic access to documents and
525		-	records for a student loan borrower, it shall provide the equivalent electronic access to the
526		-	cosigner.
527		-	“(3) Upon written notice from the student loan borrower or cosigner, the private
528		-	education lender may redact or withhold contact information for the student loan borrower and
529		-	cosigner.
530		-	“Sec. 7b-5. Enforcement.
531		-	“(a) In addition to complying with the requirements of the New Student Loan Borrower
532		-	Bill of Rights Amendment Act of 2024, passed on 2nd reading on September 17, 2024 (Enrolled
533		-	version of Bill 25-37) (“act”), a student loan servicer shall comply with all applicable federal
534		-	laws relating to student loan servicing, as from time to time amended, and the regulations
535		-	promulgated pursuant to those federal laws. ENROLLED ORIGINAL
	301	+	“(1)(A) As a condition of a sale, an assignment, or any other transfer of the 228
	302	+	servicing of a student education loan, a student loan servicer shall require the new student loan 229
	303	+	servicer to honor all benefits originally represented as available to a student loan borrower during 230
	304	+	the repayment of the student education loan and preserve the availability of those benefits, 231
	305	+	including any benefits for which the student loan borrower has not yet qualified. 232
	306	+	“(B) If a student loan servicer is not also the loan holder or is not acting on 233
	307	+	behalf of the loan holder, the student loan servicer satisfies the requirement established by this 234
	308	+	paragraph by providing the new student loan servicer with the information necessary for the new 235
	309	+	student loan servicer to honor all benefits originally represented as available to a student loan 236
	310	+	borrower during the repayment of the student education loan and preserve the availability of the 237
	311	+	benefits, including any benefits for which the student loan borrower has not yet qualified. 238
	312	+	“(2) A student loan servicer shall transfer to the new student loan servicer for the 239
	313	+	student education loan all information regarding the student loan borrower, the account of the 240
	314	+	student loan borrower, and the student education loan of the student loan borrower. The 241
	315	+	information shall include the repayment status of the student loan borrower and any benefits 242
	316	+	associated with the student education loan of the borrower. 243
	317	+	“(3) The student loan servicer shall complete the transfer of information required 244
	318	+	pursuant to paragraph (2) of this subsection within 45 calendar days after the sale, assignment, or 245
	319	+	other transfer of the servicing of the student education loan. 246 ENGROSSED ORIGINAL
536	320
537	321
538	322
539	323
540	324		13
541	325
542		-	“(b) A violation of section 7b-1 or 7b-3 is an unfair or deceptive trade practice pursuant
543		-	to D.C. Official Code § 28-3904.
544		-	“(c) Any person who suffers damage as a result of the failure of a student loan servicer or
545		-	private education lender to comply with sections 7b, 7b-1, 7b-2, 7b-3, 7b-4, or 7b-5(a) may bring
546		-	an action on their own behalf and on behalf of a similarly situated class of consumers against that
547		-	student loan servicer or private education lender to recover or obtain:
548		-	“(1) Actual damages, but in no case shall the total award of damages be less than
549		-	$500 per plaintiff, per violation;
550		-	“(2) An order enjoining the methods, acts, or practices;
551		-	“(3) Restitution of property;
552		-	“(4) Punitive damages;
553		-	“(5) Attorney’s fees; or
554		-	“(6) Any other relief that the court considers proper.
555		-	“(d) In addition to any other remedies provided by this section or otherwise provided by
556		-	law, whenever it is proven by a preponderance of the evidence that a student loan servicer or
557		-	private education lender has engaged in conduct that substantially interferes with a student
558		-	borrower’s right to an alternative payment arrangement, loan forgiveness, cancellation, or
559		-	discharge, or any other financial benefit, as established under the terms of a student loan
560		-	borrower’s promissory note or under the Higher Education Act of 1965 (20 U.S.C. § 1070a et
561		-	seq.), (“Higher Education Act”), as from time to time amended, and regulations promulgated
562		-	pursuant to the Higher Education Act, the court shall award treble actual damages to the plaintiff,
563		-	but in no case shall the award of damages be less than $1,500 per violation.
564		-	“(e) The remedies provided in this section are not the exclusive remedies available to a
565		-	student loan borrower or cosigner, nor must the student loan borrower exhaust any administrative
566		-	remedies provided in this section or any other applicable law before proceeding pursuant to this
567		-	section.
568		-	“(f) The Attorney General may bring an action for any violation of sections 7b, 7b-1, 7b-
569		-	2, 7b-3, 7b-4 or 7b-5(a) under the authority granted in § 28-3909.
570		-	“(g) The Department shall share information on a quarterly basis related to the
571		-	implementation, execution, and enforcement of sections 7b, 7b-1, 7b-2, 7b-3, 7b-4 and 7b-5(a)
572		-	with the Office of the Attorney General.
573		-	(e) Section 7c is amended by striking the phrase “sections 7a and 7b.” and inserting the
574		-	phrase “sections 7b, 7b-1, 7b-2, 7b-3, 7b-4 and 7b-5(a).” in its place.
575		-
576		-	Sec. 3. Conforming amendment.
577		-	Section 28-3903 of the District of Columbia Official Code is amended by adding a new
578		-	subsection (d) to read as follows:
579		-	“(d) The Attorney General may bring an action pursuant to section 7b-5(f) of the
580		-	Department of Insurance and Securities Regulation Establishment Act of 1996, passed on 2nd ENROLLED ORIGINAL
	326	+	“(4) The transferring student loan servicer shall notify affected student loan 247
	327	+	borrowers of the sale, assignment, or other transfer of the servicing of the student education loan 248
	328	+	at least 7 days before the next payment on the loan is due, which notice shall include: 249
	329	+	“(A) The identity of the new student loan servicer; 250
	330	+	“(B) The effective date of the transfer of the student loan borrower’s 251
	331	+	student education loan to the new student loan servicer; 252
	332	+	“(C) The date on which the existing student loan servicer will no longer 253
	333	+	accept payments and whether and by when any action will need to be taken to update auto-debit 254
	334	+	payments; and 255
	335	+	“(D) The contact information for the new student loan servicer, including 256
	336	+	phone number, email address, mailing address, and fax number. 257
	337	+	“(c) A student loan servicer who obtains the right to service a student education loan shall 258
	338	+	adopt policies and procedures to verify that the student loan servicer has received all information 259
	339	+	regarding the student loan borrower, the account of the student loan borrower, and the student 260
	340	+	education loan of the student loan borrower, including the repayment status of the student loan 261
	341	+	borrower and any benefits associated with the student education loan of the student loan 262
	342	+	borrower. 263
	343	+	“(d) A student loan servicer shall evaluate a student loan borrower for eligibility for an 264
	344	+	income-driven repayment program prior to placing the student loan borrower in forbearance or 265
	345	+	default if an income-driven repayment program is available to the student loan borrower. 266 ENGROSSED ORIGINAL
581	346
582	347
583	348
584	349
585	350		14
586	351
587		-	reading on September 17, 2024 (Enrolled version of Bill 25-37) (“act”), for a violation of
588		-	sections 7b, 7b-1, 7b-2, 7b-3, 7b-4 or 7b-5(a) of the act.
589		-
590		-	Sec. 4. Applicability.
591		-	This act shall apply as of October 1, 2024.
592		-
593		-	Sec. 5. Fiscal impact statement.
594		-	The Council adopts the fiscal impact statement in the committee report as the fiscal
595		-	impact statement required by section 4a of the General Legislative Procedures Act of 1975,
596		-	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
597		-
598		-	Sec. 6. Effective date.
599		-	This act shall take effect following approval by the Mayor (or in the event of veto by the
600		-	Mayor, action by the Council to override the veto) and a 30-day period of congressional review
601		-	as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
602		-	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)).
603		-
604		-
605		-
606		-	______________________________
607		-	Chairman
608		-	Council of the District of Columbia
	352	+	“Sec. 7b-3. Prohibited acts – private education lenders. 267
	353	+	“(a)(1) A private education loan executed after the applicability date of this section shall 268
	354	+	not include a provision that permits the private education lender to accelerate, in whole or in part, 269
	355	+	payments on a private education loan except in cases of payment default or place any loan or 270
	356	+	account into default or accelerate a loan for any reason other than for payment default. 271
	357	+	“(2) A private education loan executed prior to the applicability date of this 272
	358	+	section shall permit the private education lender to accelerate payments only if the promissory 273
	359	+	note or private education loan agreement explicitly authorizes an acceleration and only for the 274
	360	+	reasons stated in the note or agreement. 275
	361	+	“(3) In the event of the death of a cosigner, the lender shall not attempt to collect 276
	362	+	against the cosigner’s estate other than for payment default. 277
	363	+	“(4) Upon receiving notification of the death or bankruptcy of a cosigner, when 278
	364	+	the private education loan is not more than 60 days delinquent at the time of the notification, the 279
	365	+	private education lender shall not change any terms or benefits under the promissory note, 280
	366	+	repayment schedule, repayment terms, or monthly payment amount or any other provision 281
	367	+	associated with the private education loan. 282
	368	+	“(5) A private education lender shall not place any private education loan or 283
	369	+	account into default or accelerate a private education loan while a student loan borrower is 284
	370	+	seeking a loan modification or enrollment in a flexible repayment plan; except, that a private 285 ENGROSSED ORIGINAL
609	371
610	372
611	373
612	374
	375	+	15
613	376
614		-	_________________________________
615		-	Mayor
616		-	District of Columbia
	377	+	education lender may place a private education loan or account into default or accelerate a 286
	378	+	private education loan for payment default 90 days after the student loan borrower’s default. 287
	379	+	“(b) A private education lender shall not: 288
	380	+	“(1) Directly or indirectly employ any scheme, device, or artifice to defraud a 289
	381	+	student loan borrower; 290
	382	+	“(2) Directly or indirectly employ any scheme, device, or artifice to mislead a 291
	383	+	student loan borrower; 292
	384	+	“(3) Engage in any unfair or deceptive practice toward any person or misrepresent 293
	385	+	or omit any material information in connection with the servicing of a private education loan, 294
	386	+	including, abusive acts and practices; 295
	387	+	“(4) Obtain property by fraud; 296
	388	+	“(5) Obtain property by misrepresentation; 297
	389	+	“(6) Misapply private education loan payments to the outstanding balance of a 298
	390	+	private education loan; 299
	391	+	“(7) Provide inaccurate information to a credit bureau, thereby harming a student 300
	392	+	loan borrower’s creditworthiness; 301
	393	+	“(8) Fail to report both the favorable and unfavorable payment history of the 302
	394	+	student loan borrower to a nationally recognized consumer credit bureau at least annually if the 303
	395	+	private education lender regularly reports information to a credit bureau; 304 ENGROSSED ORIGINAL
617	396
618	397
619	398
	399	+
	400	+	16
	401	+
	402	+	“(9) Refuse to communicate with an authorized representative of the student loan 305
	403	+	borrower who provides a written authorization signed by the student loan borrower; except, that 306
	404	+	the private education lender may adopt procedures reasonably related to verifying that the 307
	405	+	representative is authorized to act on behalf of the student loan borrower; 308
	406	+	“(10) Make any false statement or make any omission of a material fact in 309
	407	+	connection with any information or reports filed with a governmental agency or in connection 310
	408	+	with any investigation conducted by the Commissioner or another governmental agency; 311
	409	+	“(11) Fail to respond within 15 business days to communications from the 312
	410	+	Department or the Office of the Attorney General, or within such shorter reasonable period of 313
	411	+	time as may be requested by the Commissioner or the Attorney General; or 314
	412	+	“(12)(A) Fail to respond within 15 business days to a consumer complaint 315
	413	+	transmitted to the private education lender by the Department or the Office of the Attorney 316
	414	+	General. 317
	415	+	“(B) A private education lender may request additional time to respond to 318
	416	+	the complaint, up to a maximum of 45 business days, provided that the request is accompanied 319
	417	+	by an explanation as to why additional time is reasonable and necessary. 320
	418	+	“Sec. 7b-4. Affirmative duties – private education lenders. 321
	419	+	“(a) For a private education loan issued on or after the applicability date of this section: 322
	420	+	“(1) A private education lender or student loan servicer acting on behalf of a 323
	421	+	private education lender when notified of the total and permanent disability of a student loan 324 ENGROSSED ORIGINAL
	422	+
	423	+
	424	+
	425	+
	426	+	17
	427	+
	428	+	borrower or cosigner shall release any cosigner from the obligations under the private education 325
	429	+	loan. The private education lender shall not attempt to collect a payment from a cosigner after 326
	430	+	being notified of the total and permanent disability of the cosigner or borrower. 327
	431	+	“(2) A private education lender shall notify a student loan borrower and cosigner 328
	432	+	for a private education loan if either a cosigner or the student loan borrower is released from the 329
	433	+	obligations of the private education loan under this subsection within 30 days of the release. 330
	434	+	“(3) A private education lender that extends a private education loan to a student 331
	435	+	loan borrower shall provide the student loan borrower an option to designate an individual to 332
	436	+	have the legal authority to act on behalf of the student loan borrower with respect to the private 333
	437	+	education loan in the event of the total and permanent disability of the student loan borrower. 334
	438	+	“(4) In the event a cosigner is released from the obligations of a private education 335
	439	+	loan pursuant to paragraph (1) of this subsection, the private education lender shall not require 336
	440	+	the student loan borrower to obtain another cosigner on the private education loan obligation. 337
	441	+	“(5) A private education lender shall not declare a default or accelerate the debt 338
	442	+	against the student loan borrower on the sole basis of the release of the cosigner from the private 339
	443	+	education loan obligation. 340
	444	+	“(6) A private education lender shall when notified of the total and permanent 341
	445	+	disability of a student loan borrower discharge the liability of the student loan borrower and 342
	446	+	cosigner on the private education loan. 343 ENGROSSED ORIGINAL
	447	+
	448	+
	449	+
	450	+
	451	+	18
	452	+
	453	+	“(7) After receiving a notification pursuant to paragraph (1) of this subsection, the 344
	454	+	private education lender shall not attempt to collect on the outstanding liability of the student 345
	455	+	loan borrower or cosigner or monitor the disability status of the student loan borrower after the 346
	456	+	date of discharge. 347
	457	+	“(b) Availability of alternative repayment plans. 348
	458	+	“(1) If a private education lender offers a student loan borrower flexible or 349
	459	+	modified repayment options in connection with a private education loan, those flexible 350
	460	+	repayment options shall be made available to all borrowers and the private education lender 351
	461	+	shall: 352
	462	+	“(A) Provide on its website a description of any alternative repayment 353
	463	+	options offered by the private education lender for a private education loan; and 354
	464	+	“(B) Establish policies and procedures to facilitate evaluation of private 355
	465	+	education loan flexible repayment option requests, including providing accurate information 356
	466	+	regarding any private education loan alternative repayment options that may be available to the 357
	467	+	student loan borrower through a promissory note or that may have been marketed to the student 358
	468	+	loan borrower through marketing materials. 359
	469	+	“(2) A private education lender or a student loan servicer acting on behalf of a 360
	470	+	private education lender shall consistently present and offer flexible or modified private 361
	471	+	education loan repayment options to student loan borrowers with similar financial circumstances, 362
	472	+	if the private education lender offers such repayment options. 363 ENGROSSED ORIGINAL
	473	+
	474	+
	475	+
	476	+
	477	+	19
	478	+
	479	+	“(c)(1) Prior to the extension of a private education loan that requires a cosigner, a private 364
	480	+	education lender shall deliver the following information to the cosigner: 365
	481	+	“(A) How the private education loan obligation shall appear on the 366
	482	+	cosigner’s credit; 367
	483	+	“(B) How the cosigner shall be notified if the private education loan 368
	484	+	becomes delinquent, including how the cosigner can cure the delinquency in order to avoid 369
	485	+	negative credit furnishing and loss of cosigner release eligibility; and 370
	486	+	“(C) Eligibility for release of the cosigner’s obligation on the private 371
	487	+	education loan, including the number of on-time payments and any other criteria required to 372
	488	+	approve the release of the cosigner from the private education loan obligation. 373
	489	+	“(2) Prior to offering a person a private education loan that is being used to 374
	490	+	refinance an existing education loan, a private education lender shall provide the person a 375
	491	+	disclosure that benefits and protections applicable to the existing loan may be lost due to the 376
	492	+	refinancing. 377
	493	+	“(3) The information provided pursuant to this section shall be provided on a one-378
	494	+	page information sheet in a 12-point font and shall be written in simple, clear, understandable 379
	495	+	and easily readable language as provided in the Plain Writing Act of 2010 (5 U.S.C. § 301, note). 380
	496	+	“(d)(1) For any private education loan that obligates a cosigner, a private education 381
	497	+	lender shall provide the student loan borrower and the cosigner an annual written notice 382
	498	+	containing information about cosigner release, including the administrative, objective criteria the 383 ENGROSSED ORIGINAL
	499	+
	500	+
	501	+
	502	+
	503	+	20
	504	+
	505	+	private education lender requires to approve the release of the cosigner from the private 384
	506	+	education loan obligation and the process for applying for cosigner release. 385
	507	+	“(2) If the student loan borrower has met the applicable requirements to be 386
	508	+	eligible for cosigner release, the private education lender shall send the student loan borrower 387
	509	+	and the cosigner a written notification by U.S. mail, and by electronic mail when a student loan 388
	510	+	borrower or cosigner has elected to receive electronic communications from the private 389
	511	+	education lender, informing the student loan borrower and cosigner that the requirements to be 390
	512	+	eligible for cosigner release have been met. 391
	513	+	“(3) A private education lender shall provide written notice to a borrower who 392
	514	+	applies for cosigner release, but whose application is incomplete. The written notice shall include 393
	515	+	a description of the information needed to consider the application complete and the date by 394
	516	+	which the applicant must furnish the missing information. 395
	517	+	“(4)(A) Within 30 days after a student loan borrower submits a completed 396
	518	+	application for cosigner release, the private education lender shall send the student loan borrower 397
	519	+	and the cosigner a written notice that informs the student loan borrower and cosigner whether the 398
	520	+	cosigner release application has been approved or denied. 399
	521	+	“(B) If the private education lender denies the request for cosigner release, 400
	522	+	the student loan borrower may request any documents or information used in the determination, 401
	523	+	including the credit score threshold used by the private education lender, the student loan 402
	524	+	borrower’s consumer report, the student loan borrower’s credit score, and any other documents 403 ENGROSSED ORIGINAL
	525	+
	526	+
	527	+
	528	+
	529	+	21
	530	+
	531	+	specific to the student loan borrower. The private education lender shall also provide any adverse 404
	532	+	action notices required under applicable federal law if the denial is based in whole or in part on 405
	533	+	any information contained in a consumer report. 406
	534	+	“(5) In response to a written or oral request for cosigner release, a private 407
	535	+	education lender shall provide the information described in paragraph (1) of this subsection. 408
	536	+	“(6) A private education lender shall not impose any restriction that permanently 409
	537	+	bars a student loan borrower from qualifying for cosigner release, including restricting the 410
	538	+	number of times a student loan borrower may apply for cosigner release. 411
	539	+	“(7)(A) A private education lender shall not impose any negative consequences 412
	540	+	on a student loan borrower or cosigner during the 60 days following the issuance of the notice 413
	541	+	required pursuant to paragraph (3) of this subsection or until the private education lender makes 414
	542	+	a final determination about a borrower’s cosigner release application. 415
	543	+	“(B) For the purpose of this paragraph, the term “negative consequences” 416
	544	+	includes the imposition of additional eligibility criteria, negative credit reporting, lost eligibility 417
	545	+	for cosigner release, late fees, interest capitalization, or other financial penalty. 418
	546	+	“(8)(A) For a private education loan executed after the applicable date of this 419
	547	+	section, a private education lender shall not require more than 12 consecutive, on-time payments 420
	548	+	as a requirement for cosigner release. 421
	549	+	“(B) A student loan borrower who has paid the equivalent of 12 months of 422
	550	+	principal and interest payments within any 12-month period shall be considered to have satisfied 423 ENGROSSED ORIGINAL
	551	+
	552	+
	553	+
	554	+
	555	+	22
	556	+
	557	+	a consecutive, on-time payment requirement even if the student loan borrower has not made 424
	558	+	payments monthly during the 12-month period. 425
	559	+	“(9) If a student loan borrower or cosigner requests a change in terms that restarts 426
	560	+	the counting of consecutive, on-time payments required for cosigner release, the private 427
	561	+	education lender shall notify the student loan borrower and cosigner in writing of the impact of 428
	562	+	the change and provide the student loan borrower or the cosigner the right to withdraw or reverse 429
	563	+	the request to avoid that impact. 430
	564	+	“(10)(A) A student loan borrower shall have the right to request a reconsideration 431
	565	+	of a private education lender’s denial of a request for cosigner release, and the private education 432
	566	+	lender shall permit the student loan borrower to submit additional documentation evidencing the 433
	567	+	borrower’s ability to meet the payment obligations. 434
	568	+	“(B) The student loan borrower may request review of the cosigner release 435
	569	+	determination by a different employee than the employee who made the original determination. 436
	570	+	“(11)(A) A private education lender shall establish and maintain a comprehensive 437
	571	+	record-management system (“record-management system”) reasonably designed to ensure the 438
	572	+	accuracy, integrity, and completeness of data and other information about cosigner release 439
	573	+	applications and compliance with applicable District and federal laws, including the Equal Credit 440
	574	+	Opportunity Act (15 U.S.C. § 1691 et seq.) and the Fair Credit Reporting Act (15 U.S.C. § 1681 441
	575	+	et seq.). 442
	576	+	“(B) The record-management system shall also include the: 443 ENGROSSED ORIGINAL
	577	+
	578	+
	579	+
	580	+
	581	+	23
	582	+
	583	+	“(i) Number of cosigner release applications received; 444
	584	+	“(ii) Approval and denial rate; and 445
	585	+	“(iii) primary reasons for any denial. 446
	586	+	“(e)(1) A private education lender shall provide a cosigner with access to all documents 447
	587	+	or records related to the cosigned private education loan that are available to the student loan 448
	588	+	borrower. 449
	589	+	“(2) If a private education lender provides electronic access to documents and 450
	590	+	records for a student loan borrower, it shall provide the equivalent electronic access to the 451
	591	+	cosigner. 452
	592	+	“(3) Upon written notice from the student loan borrower or cosigner, the private 453
	593	+	education lender may redact or withhold contact information for the student loan borrower and 454
	594	+	cosigner. 455
	595	+	“Sec. 7b-5. Enforcement. 456
	596	+	“(a) In addition to complying with the requirements of the New Student Loan Borrower 457
	597	+	Bill of Rights Amendment Act of 2024, as approved by the Committee on Business and 458
	598	+	Economic Development on June 17, 2024 (Committee print of Bill 25-37), a student loan 459
	599	+	servicer shall comply with all applicable federal laws relating to student loan servicing, as from 460
	600	+	time to time amended, and the regulations promulgated pursuant to those federal laws. 461
	601	+	“(b) A violation of section 7b-1 or 7b-3 is an unfair or deceptive trade practice pursuant 462
	602	+	to D.C. Official Code § 28-3904. 463 ENGROSSED ORIGINAL
	603	+
	604	+
	605	+
	606	+
	607	+	24
	608	+
	609	+	“(c) Any person who suffers damage as a result of the failure of a student loan servicer or 464
	610	+	private education lender to comply with sections 7b, 7b-1, 7b-2, 7b-3, 7b-4, or 7b-5(a) may bring 465
	611	+	an action on their own behalf and on behalf of a similarly situated class of consumers against that 466
	612	+	student loan servicer or private education lender to recover or obtain: 467
	613	+	“(1) Actual damages, but in no case shall the total award of damages be less than 468
	614	+	$500 per plaintiff, per violation; 469
	615	+	“(2) An order enjoining the methods, acts, or practices; 470
	616	+	“(3) Restitution of property; 471
	617	+	“(4) Punitive damages; 472
	618	+	“(5) Attorney’s fees; or 473
	619	+	“(6) Any other relief that the court considers proper. 474
	620	+	“(d) In addition to any other remedies provided by this section or otherwise provided by 475
	621	+	law, whenever it is proven by a preponderance of the evidence that a student loan servicer or 476
	622	+	private education lender has engaged in conduct that substantially interferes with a student 477
	623	+	borrower’s right to an alternative payment arrangement, loan forgiveness, cancellation, or 478
	624	+	discharge, or any other financial benefit, as established under the terms of a student loan 479
	625	+	borrower’s promissory note or under the Higher Education Act of 1965 (20 U.S.C. § 1070a et 480
	626	+	seq.), (“Higher Education Act”), as from time to time amended, and regulations promulgated 481
	627	+	pursuant to the Higher Education Act, the court shall award treble actual damages to the plaintiff, 482
	628	+	but in no case shall the award of damages be less than $1,500 per violation. 483 ENGROSSED ORIGINAL
	629	+
	630	+
	631	+
	632	+
	633	+	25
	634	+
	635	+	“(e) The remedies provided in this section are not the exclusive remedies available to a 484
	636	+	student loan borrower or cosigner, nor must the student loan borrower exhaust any administrative 485
	637	+	remedies provided in this section or any other applicable law before proceeding pursuant to this 486
	638	+	section. 487
	639	+	“(f) The Attorney General may bring an action for any violation of sections 7b, 7b-1, 7b-488
	640	+	2, 7b-3, 7b-4 or 7b-5(a) under the authority granted in § 28-3909. 489
	641	+	“(g) The Department shall share information on a quarterly basis related to the 490
	642	+	implementation, execution, and enforcement of sections 7b, 7b-1, 7b-2, 7b-3, 7b-4 and 7b-5(a) 491
	643	+	with the Office of the Attorney General. 492
	644	+	(e) Section 7c is amended by striking the phrase “sections 7a and 7b.” and inserting the 493
	645	+	phrase “sections 7b, 7b-1, 7b-2, 7b-3, 7b-4 and 7b-5(a).” in its place. 494
	646	+	Sec. 3. Conforming amendment. 495
	647	+	Section 28-3903 of the District of Columbia Official Code is amended by adding a new 496
	648	+	subsection (d) to read as follows: 497
	649	+	“(d) The Attorney General may bring an action pursuant to section 7b-5(f) of the 498
	650	+	Department of Insurance and Securities Regulation Establishment Act of 1996, as approved by 499
	651	+	the Committee on Business and Economic Development on June 17, 2024 (Committee print of 500
	652	+	Bill 25-37) (“act”) for a violation of sections 7b, 7b-1, 7b-2, 7b-3, 7b-4 or 7b-5(a) of the act. 501
	653	+	Sec. 4. Applicability. 502
	654	+	This act shall apply as of October 1, 2024. 503 ENGROSSED ORIGINAL
	655	+
	656	+
	657	+
	658	+
	659	+	26
	660	+
	661	+	Sec. 5. Fiscal impact statement. 504
	662	+	The Council adopts the fiscal impact statement in the committee report as the fiscal 505
	663	+	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 506
	664	+	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 507
	665	+	Sec. 6. Effective date. 508
	666	+	This act shall take effect following approval by the Mayor (or in the event of veto by the 509
	667	+	Mayor, action by the Council to override the veto) and a 30-day period of congressional review 510
	668	+	as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 511
	669	+	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)). 512