Grounds for denial, suspension, or revocation of license; procedure

(a) The department may suspend or revoke an original or renewal license issued pursuant to this article if it finds that any ground or grounds exist which would require or warrant the refusal of an application for the issuance or renewal of a license if such an application were then before it. The department may also deny an application or suspend or revoke an original or renewal license issued pursuant to this article if it finds that the licensee has: (1) Committed any fraud, engaged in any dishonest activities, or made any misrepresentation; (2) Violated any provisions of this article, any rule or regulation issued pursuant thereto, any order issued by the department, or any other law in the course of its dealings as a licensee; (3) Made a false statement in an original or renewal application for licensure or failed to give a true reply to a question in an original or renewal application; (4) Demonstrated incompetency or untrustworthiness to act as a licensee; (5) Failed to pay, within 30 days after it becomes final, a judgment recovered in any court by a claimant or creditor in an action arising out of the licensee’s business of cashing payment instruments; (6) Purposely withheld, deleted, destroyed, or altered information requested by an examiner of the department or made false statements or misrepresentations to the department; or (7) Operated in an unsafe or unsound manner. (b) The department shall not issue a license to an applicant and may revoke a license if such applicant or licensee is subject to or employs any person subject to a final cease and desist order that has been issued within the preceding five years if such order was based on a violation of this article. Each applicant or licensee shall, before hiring a covered employee, examine the department’s public records to determine that such covered employee is not subject to a cease and desist order. (c) The department shall not issue a license to an applicant and may revoke a license if such applicant or licensee is subject to or employs any person whose license issued pursuant to this article was revoked within the preceding five years. Each applicant or licensee shall, before hiring a covered employee, examine the department’s public records to determine that such covered employee’s license was not revoked. (d) The department shall not issue a license to an applicant and may revoke a license if it finds that any person who is a director, officer, 443 7-1-708 partner, ultimate equitable owner of the applicant or licensee or any individual who directs the affairs of or controls or establishes policy for the applicant or licensee has been in one or more of those roles as a licensee whose application has been denied or license revoked or suspended within five years of the date of the application. (e) Notice of the department’s intention to enter an order denying an application for a license or suspending or revoking a license shall be given to the applicant or licensee in writing, sent by registered or certified mail or statutory overnight delivery addressed to the principal place of business of such applicant or licensee. If a person refuses to accept service of the notice by registered or certified mail or statutory overnight delivery, the notice or order shall be served by the commissioner or the commissioner’s authorized representative under any other method of lawful service, and the person shall be personally liable to the commissioner for a sum equal to the actual costs incurred to serve the notice or order. This liability shall be paid upon notice and demand by the commissioner or the commissioner’s representative and shall be assessed and collected in the same manner as other fees or fines administered by the commissioner. Within 20 days of the date of the notice of intention to enter an order of denial, suspension, or revocation under this article, the applicant or licensee may request in writing a hearing to contest the order. If a hearing is not requested in writing within 20 days of the date of such notice of intention, the department shall enter a final order regarding the denial, suspension, or revocation. Any final order of the department denying, suspending, or revoking a license shall state the grounds upon which it is based and shall be effective on the date of issuance. A copy thereof shall be forwarded promptly by mail addressed to the principal place of business of such applicant or licensee. (f) A decision by the department denying an application for license or of an order suspending or revoking a license shall be subject to review in accordance with Chapter 13 of Title 50, the “Georgia Administrative Procedure Act.” (g) Whenever the department initiates an administrative action against a current licensee or an applicant, the department may pursue such action to its conclusion despite the fact that a licensee may withdraw or fail to renew its license or an applicant may withdraw its application. (h) The suspension or revocation of a license under this Code section does not alter, ameliorate, or void a licensee’s duties or liabilities under any existing contract entered into by the licensee prior to such suspension or revocation. (i) The provisions of this Code section shall not apply when an 444 7-1-708.2 application for a license is denied or a license is suspended as provided in Code Section 7-1-708.1. History. Code 1981, § 7-1-708, enacted by Ga. L. 2014, p. 251, § 2/HB 982. 7-1-708.1. Permissible and impermissible grounds for denial or suspension. (a) Where an applicant or licensee has been certified by any entity of the federal government for nonpayment or default or breach of a repayment or service obligation under any federal educational loan, loan repayment, or service conditional scholarship program, such action shall not be grounds for denial of an application or suspension of a license. (b) Where an applicant or licensee has been found not in compliance with an order for child support as provided in Code Section 19-6-28.1 or 19-11-9.3, such action shall be sufficient grounds for denial of an application or suspension of a license. In such actions, the hearing and appeal procedures provided for in Code Section 19-6-28.1 or 19-11-9.3 shall be the only such procedures required under this article. The department shall be permitted to share, without liability, information on its applications or other forms with appropriate state agencies to assist them in recovering child support. History. Code 1981, § 7-1-708.1, enacted by Ga. L. 2014, p. 251, § 2/HB 982; Ga. L. 2019, p. 462, § 1-3/SB 214; Ga. L. 2024, p. 120, § 2-3/HB 985, effective June 30, 2024. Amendments. The 2024 amendment, effective June 30, 2024, deleted “has been found to be a borrower in default under the Georgia Higher Education Loan Program as determined by the Georgia Higher Education Assistance Corporation or” following “or licensee” near the beginning of subsection (a). 7-1-708.2. Issuance of cease and desist orders; administrative and judicial enforcement; penalty for noncompliance. (a) The department may issue an order requiring a person to cease and desist immediately from unauthorized activities whenever it shall appear to the department that: (1) Except as provided in paragraph (2) of this subsection, a person has violated any law of this state or any order or regulation of the department, and such cease and desist order shall be final 20 days after it is issued unless the person to whom it is issued makes a written request within such 20 day period for a hearing; or (2) A person not licensed under this article is engaging in or has 445 7-1-708.2 BANKING AND FINANCE 7-1-708.2 engaged in activities requiring licensure under this article, which such cease and desist order shall be final 30 days from the date of issuance, and there shall be no opportunity for an administrative hearing. If the proper license or evidence of exemption is obtained within the 30 day period, the order shall be rescinded by the department. (b) The cease and desist order shall be in writing, sent by registered or certified mail or statutory overnight delivery and addressed to the person’s business address and, if the person is an individual, to the individual’s personal address. Any cease and desist order sent to a person at its business address and, if an individual, his or her personal address that is returned to the department as “refused” or “unclaimed” shall be deemed as received and lawfully served. (c) Any hearing authorized under paragraph (1) of subsection (a) of this Code section shall be conducted in accordance with Chapter 13 of Title 50, the “Georgia Administrative Procedure Act.” (d) Whenever a person shall fail to comply with the terms of a final order or decision of the department issued pursuant to this article, the department may, through the Attorney General and upon notice of three days to such person, petition the principal court for an order directing such person to obey the order of the department within the period of time as shall be fixed by the court. Upon the filing of such petition, the court shall allow a motion to show cause why it should not be granted. After a hearing upon the merits or after failure of such person to appear when ordered, the court shall grant the petition of the department upon a finding that the order of the department was properly issued. (e) Any person who violates the terms of any final order or decision issued pursuant to this article shall be liable for a civil penalty not to exceed $1,000.00. Each day the violation continues shall constitute a separate offense. In determining the amount of penalty, the department shall take into account the appropriateness of the penalty relative to the size of the financial resources of such person, the good faith efforts of such person to comply with the order, the gravity of the violation, the history of previous violations by such person, and such other factors or circumstances as shall have contributed to the violation. The department may at its discretion compromise, modify, or refund any penalty which is subject to imposition or has been imposed pursuant to this Code section. Any person assessed as provided in this subsection shall have the right to request a hearing into the matter within ten days after notification of the assessment has been served upon the licensee involved; otherwise, such penalty shall be final except as to judicial review as provided in Code Section 7-1-90. (f) Judicial review of any final order or decision of the department 446 7-1-708.2 FINANCIAL INSTITUTIONS 7-1-709.2 entered pursuant to this article shall be available solely in the superior court of the county of domicile of the department. (g) In addition to any other administrative penalties authorized by this article, the department may, by rule or regulation, prescribe administrative fines for violations of this article and any rules and regulations promulgated by the department pursuant to this article. History. Code 1981, § 7-1-708.2, enacted by Ga. L. 2014, p. 251, § 2/HB 982. 7-1-709. Penalty for violation of article.