Division subrogated -- Authority to suspend license.

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  • (1) If the division pays a person from the fund in accordance with this part:
    • (a) the division is subrogated to the rights of that person for the amounts paid out of the fund; and
    • (b) any amount and interest recovered by the division shall be deposited in the fund.
  • (2)
    • (a) Subject to Subsection (2)(b), the license of a licensee for whom payment from the fund is made under this part is automatically suspended as of the earlier of the day on which:
      • (i) the division is ordered by a court to pay from the fund; or
      • (ii) the division pays from the fund.
    • (b)
      • (i) A person whose license is suspended under Subsection (2)(a) may appeal the suspension in a de novo hearing conducted by the commission:
        • (A) after the suspension; and
        • (B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
      • (ii) The commission may delegate:
        • (A) to the division or an administrative law judge the authority to conduct a hearing described in Subsection (2)(b)(i); or
        • (B) to the division the authority to make a decision on whether relief from a suspension should be granted.
  • (3) Unless the suspension is not upheld after a hearing described in Subsection (2)(b), a licensee whose license is suspended pursuant to Subsection (2) may not apply to renew a license nor apply for a new license until the licensee:
    • (a) pays into the fund:
      • (i) the amount paid out of the fund on behalf of the licensee; and
      • (ii) interest at a rate determined by the division with the concurrence of the commission; and
    • (b) participates in a hearing before the commission and is approved by the commission, with the concurrence of the director, for licensure or activation of the suspended license.




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