By Lewis of Orange                               H.B. No. 483

      75R1452 CAG-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to notification of a licensee or license applicant of

 1-3     student loan default as a ground for nonrenewal of a license.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 57.491(h), Education Code, is amended to

 1-6     read as follows:

 1-7           (h)  A licensing agency shall provide written notice of the

 1-8     nonrenewal policies established under Subsections (e), (f), and (g)

 1-9     of this section to each applicant for a license or for renewal of a

1-10     license.  The agency shall include the notice in each application

1-11     form for a license or for renewal of a license.  The corporation

1-12     shall provide written  notice of those same policies on each loan

1-13     application form provided by the corporation and on each promissory

1-14     note signed by a borrower.  Failure to provide the notice required

1-15     by this subsection does not affect the default status of a borrower

1-16     or the prohibitions on renewal of a license held by a person in

1-17     default.

1-18           SECTION 2.  A licensing agency shall begin to distribute and

1-19     use license application or renewal forms that comply with Section

1-20     57.491, Education Code, as amended by this Act, not later than

1-21     October 1, 1997.

1-22           SECTION 3.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

 2-2     days in each house be suspended, and this rule is hereby suspended,

 2-3     and that this Act take effect and be in force from and after its

 2-4     passage, and it is so enacted.