By: Hartnett H.B. No. 1827
73R1216 SOS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas Guaranteed Student Loan Corporation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter B, Chapter 57, Education Code, is
1-5 amended by adding Section 57.181 to read as follows:
1-6 Sec. 57.181. MEETING BY TELEPHONE CONFERENCE CALL. (a) The
1-7 board may meet by telephone conference call.
1-8 (b) A meeting held by telephone conference call may be held
1-9 only if:
1-10 (1) the meeting is a special called meeting and
1-11 immediate action is required; and
1-12 (2) the convening at one location of a quorum of the
1-13 board is difficult or impossible.
1-14 (c) The telephone conference call meeting is subject to the
1-15 notice requirements applicable to other meetings.
1-16 (d) The notice of the telephone conference call meeting must
1-17 specify as the location of the meeting the location where meetings
1-18 of the board are usually held.
1-19 (e) Each part of the telephone conference call meeting that
1-20 is required to be open to the public shall be audible to the public
1-21 at the location specified in the notice of the meeting as the
1-22 location of the meeting and shall be tape recorded. The tape
1-23 recording shall be made available to the public.
1-24 SECTION 2. Section 57.47(b), Education Code, is amended to
2-1 read as follows:
2-2 (b) A suit against a defaulting party under this section may
2-3 be brought in any court of this state that is appropriate under the
2-4 Higher Education Act of 1965, 20 U.S.C. Sec. 1001 et seq. <the
2-5 county in which the defaulting person resides, in which the lender
2-6 is located, or in Travis County.>
2-7 SECTION 3. Section 57.48(b), Education Code, is amended to
2-8 read as follows:
2-9 (b) The comptroller of public accounts may release <not
2-10 issue> a warrant to <any person who has been reported by> the
2-11 corporation to be applied toward the person's outstanding student
2-12 loan debt <in default on a loan guaranteed under this chapter>.
2-13 SECTION 4. Section 57.481(d), Education Code, is amended to
2-14 read as follows:
2-15 (d) The corporation shall:
2-16 (1) maintain <calculate the> loan default rates for
2-17 the postsecondary educational institutions that participate in the
2-18 corporation's guaranteed student loan program at the rates
2-19 calculated by the United States Department of Education; and
2-20 (2) semiannually notify the postsecondary educational
2-21 institutions of those loan default rates.
2-22 SECTION 5. Section 57.491, Education Code, is amended to
2-23 read as follows:
2-24 Sec. 57.491. Loan Default Ground for Nonrenewal of
2-25 Professional or Occupational License. (a) In this section:
2-26 (1) "License" means a certificate or similar form of
2-27 permission issued or renewed by a licensing agency and required by
3-1 law to engage in a profession or occupation.
3-2 (2) "Licensee" means a person to whom a licensing
3-3 agency issues a license.
3-4 (3) "Licensing agency" means a board, commission,
3-5 department, or other agency in <the executive branch of> state
3-6 government that issues or renews a license.
3-7 (b) The corporation shall identify the licensing agencies
3-8 subject to this section and provide written notice to those
3-9 agencies of the requirements prescribed by this section. Only
3-10 those licensing agencies that the corporation identifies and that
3-11 receive such notice are required to carry out this section.
3-12 (c) The corporation periodically shall:
3-13 (1) identify the persons who are in default on loans
3-14 guaranteed by the corporation; and
3-15 (2) provide a written list of the names of those
3-16 persons to the licensing agencies.
3-17 (d) A person who is in default on a loan may enter an
3-18 agreement with the corporation for repayment of a defaulted loan as
3-19 required under this section. The corporation shall provide the
3-20 person with a certificate certifying that the person has entered a
3-21 repayment agreement on the defaulted loan.
3-22 (e) A licensing agency shall not renew the license of a
3-23 licensee whose name is on the list provided by the corporation
3-24 under Subsection (c) of this section unless<:>
3-25 <(1) the renewal is the first renewal following the
3-26 agency's receipt of the list including the licensee's name among
3-27 those in default; or>
4-1 <(2)> the licensee presents to the agency a
4-2 certificate issued by the corporation certifying that:
4-3 (1) <(A)> the licensee has entered a repayment
4-4 agreement on the defaulted loan; or
4-5 (2) <(B)> the licensee is not in default on a loan
4-6 guaranteed by the corporation.
4-7 (f) A licensing agency may issue an initial license to a
4-8 person whose name is on the list provided by the corporation under
4-9 Subsection (c) of this section and who meets all other
4-10 qualifications for licensure, but shall not renew the license
4-11 unless the person presents to the agency a certificate issued by
4-12 the corporation certifying that:
4-13 (1) the licensee has entered a repayment agreement on
4-14 the defaulted loan; or
4-15 (2) the licensee is not in default on a loan
4-16 guaranteed by the corporation.
4-17 (g) <A licensing agency shall not renew the license of a
4-18 licensee who defaults on a repayment agreement unless the person
4-19 presents to the agency a certificate issued by the corporation
4-20 certifying that:>
4-21 <(1) the licensee has entered another repayment
4-22 agreement on the defaulted loan; or>
4-23 <(2) the licensee is not in default on a loan
4-24 guaranteed by the corporation or on a repayment agreement.>
4-25 <(h)> A licensing agency shall provide written notice of the
4-26 nonrenewal policies established under Subsections (e) and<,> (f)<,
4-27 and (g)> of this section to each applicant for a license or for
5-1 renewal of a license. The corporation shall provide written notice
5-2 of those same policies on each loan application form provided by
5-3 the corporation and on each promissory note signed by a borrower.
5-4 Failure to provide the notice required by this subsection does not
5-5 affect the default status of a borrower or the prohibitions on
5-6 renewal of a license held by a person in default.
5-7 (h) <(i)> A licensing agency shall provide an opportunity
5-8 for a hearing to a licensee before the agency takes action
5-9 concerning the nonrenewal of a license under this section.
5-10 (i) <(j)> Each licensing agency shall adopt any rules
5-11 necessary to carry out the licensing agency's duties under this
5-12 section.
5-13 (j) <(k)> The board shall establish procedures to carry out
5-14 the corporation's duties under this section.
5-15 <(l) This section does not apply to the State Securities
5-16 Board.>
5-17 SECTION 6. Section 57.24(c), Education Code, is repealed.
5-18 SECTION 7. The importance of this legislation and the
5-19 crowded condition of the calendars in both houses create an
5-20 emergency and an imperative public necessity that the
5-21 constitutional rule requiring bills to be read on three several
5-22 days in each house be suspended, and this rule is hereby suspended,
5-23 and that this Act take effect and be in force from and after its
5-24 passage, and it is so enacted.