By Galloway S.B. No. 1541
75R8021 JSA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the suspension of the licenses held by a person
1-3 delinquent in the payment of certain student loans.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 61, Education Code, is amended by adding
1-6 Subchapter S to read as follows:
1-7 SUBCHAPTER S. LICENSE SUSPENSION FOR FAILURE
1-8 TO REPAY STUDENT LOAN
1-9 Sec. 61.901. DEFINITIONS. In this subchapter:
1-10 (1) "Coordinating board" means the Texas Higher
1-11 Education Coordinating Board.
1-12 (2) "License" means a license, certificate,
1-13 registration, permit, or other authorization that:
1-14 (A) is issued by a licensing authority;
1-15 (B) is subject before expiration to suspension,
1-16 revocation, forfeiture, or termination by the issuing licensing
1-17 authority; and
1-18 (C) a person must obtain to:
1-19 (i) practice or engage in a particular
1-20 business, occupation, or profession;
1-21 (ii) operate a motor vehicle; or
1-22 (iii) engage in any other regulated
1-23 activity, including hunting, fishing, or other recreational
1-24 activity for which a license or permit is required.
2-1 (3) "Licensing authority" means a department,
2-2 commission, board, office, or other agency of this state or a
2-3 political subdivision of this state that issues a license.
2-4 (4) "Obligee" means the person to whom the unpaid
2-5 balance of a student loan is required to be made.
2-6 (5) "Obligor" means the person required to repay a
2-7 student loan.
2-8 (6) "Order suspending license" means an order issued
2-9 by the coordinating board directing a licensing authority to
2-10 suspend a license.
2-11 (7) "Student loan" means a loan made to a person to
2-12 support the person while attending a public or private institution
2-13 of higher education or other postsecondary educational
2-14 establishment that is:
2-15 (A) owed to this state or an agency of this
2-16 state or to the United States; or
2-17 (B) guaranteed by this state or an agency of
2-18 this state, including the Guaranteed Student Loan Corporation, or
2-19 by the United States.
2-20 Sec. 61.902. LICENSING AUTHORITIES SUBJECT TO SUBCHAPTER. A
2-21 licensing authority subject to Chapter 232, Family Code, is subject
2-22 to this subchapter.
2-23 Sec. 61.903. SUSPENSION OF LICENSE. The coordinating board
2-24 may issue an order suspending a license of an obligor as provided
2-25 by this subchapter if the obligor:
2-26 (1) is delinquent in the payment of the obligor's
2-27 student loan in an amount equal to or greater than the total amount
3-1 due for three months under the terms of the loan;
3-2 (2) has been provided an opportunity to make payments
3-3 toward the delinquency under an agreed repayment schedule; and
3-4 (3) has failed to comply with the repayment schedule.
3-5 Sec. 61.904. PETITION FOR SUSPENSION OF LICENSE. (a) An
3-6 obligee may file a petition to suspend a license.
3-7 (b) The petition shall be filed with the coordinating board.
3-8 (c) A proceeding under this subchapter is governed by the
3-9 contested case provisions of Chapter 2001, Government Code, except
3-10 that Section 2001.054 does not apply to the proceeding. The
3-11 commissioner of higher education is responsible for rendering a
3-12 final decision in the contested case proceeding.
3-13 Sec. 61.905. CONTENTS OF PETITION. (a) A petition under
3-14 this subchapter must state that license suspension is required
3-15 under Section 61.903 and allege:
3-16 (1) the name and, if known, social security number of
3-17 the obligor;
3-18 (2) the type of license the obligor is believed to
3-19 hold and the name of the licensing authority; and
3-20 (3) the amount owed under the student loan agreement,
3-21 the amount of the loan paid, and the amount of arrearages.
3-22 (b) A petition under this subchapter may include as an
3-23 attachment a copy of the payment record of the student loan
3-24 payments maintained or prepared by the obligee or person
3-25 responsible for collecting payments under the student loan.
3-26 Sec. 61.906. NOTICE. (a) On the filing of a petition under
3-27 Section 61.904, the coordinating board shall issue to the obligor:
4-1 (1) notice of the obligor's right to a hearing before
4-2 the coordinating board;
4-3 (2) notice of the deadline for requesting a hearing;
4-4 and
4-5 (3) a hearing request form.
4-6 (b) Notice under this section may be served as in civil
4-7 cases generally.
4-8 (c) The notice must state that an order suspending license
4-9 shall be rendered on the 60th day after the date of service of the
4-10 notice unless by that date:
4-11 (1) the coordinating board receives proof that all
4-12 delinquent amounts due on the student loan have been paid or the
4-13 obligor has taken other action necessary to remove the delinquency;
4-14 (2) the obligee files a certification that the obligor
4-15 is in compliance with a reasonable repayment schedule; or
4-16 (3) the obligor appears at a hearing before the
4-17 coordinating board and shows that the request for suspension should
4-18 be denied or stayed.
4-19 Sec. 61.907. HEARING ON PETITION TO SUSPEND LICENSE. (a) A
4-20 request for a hearing and motion to stay suspension must be filed
4-21 with the coordinating board by the obligor not later than the 20th
4-22 day after the date of service of the notice under Section 61.906.
4-23 (b) If a request for a hearing is filed, the coordinating
4-24 board shall:
4-25 (1) promptly schedule a hearing;
4-26 (2) notify each party of the date, time, and location
4-27 of the hearing; and
5-1 (3) stay suspension pending the hearing.
5-2 (c) A record of student loan payments maintained or prepared
5-3 by the obligee or person responsible for collecting loan payments
5-4 is evidence of whether the payments were made. A copy of the
5-5 record appearing regular on its face shall be admitted as evidence
5-6 at a hearing under this subchapter, including a hearing on a motion
5-7 to revoke a stay. Any party may offer controverting evidence.
5-8 Sec. 61.908. ORDER SUSPENDING LICENSE. (a) On making the
5-9 findings required by Section 61.903, the coordinating board shall
5-10 issue an order suspending license unless the obligor proves that
5-11 all delinquent amounts due on the student loan have been paid or
5-12 the obligor has taken other action necessary to remove the
5-13 delinquency.
5-14 (b) The coordinating board may stay an order suspending
5-15 license conditioned on the obligor's compliance with a reasonable
5-16 repayment schedule that is incorporated in the order. An order
5-17 suspending license with a stay of the suspension may not be served
5-18 on the licensing authority unless the stay is revoked as provided
5-19 by this subchapter.
5-20 (c) The coordinating board shall forward a final order
5-21 suspending license to the appropriate licensing authority.
5-22 Sec. 61.909. DEFAULT ORDER. The coordinating board shall
5-23 consider the allegations of the petition for suspension to be
5-24 admitted and shall render an order suspending license if the
5-25 obligor fails to:
5-26 (1) respond to a notice issued under Section 61.906;
5-27 (2) request a hearing; or
6-1 (3) appear at a hearing.
6-2 Sec. 61.910. REVIEW OF FINAL ADMINISTRATIVE ORDER. An order
6-3 issued by the coordinating board under this subchapter is a final
6-4 agency decision and is subject to review under the substantial
6-5 evidence rule as provided by Chapter 2001, Government Code.
6-6 Sec. 61.911. ACTION BY LICENSING AUTHORITY. (a) On receipt
6-7 of a final order suspending license, a licensing authority shall
6-8 immediately determine if the authority has issued a license to the
6-9 obligor named on the order and, if a license has been issued:
6-10 (1) record the suspension of the license in the
6-11 licensing authority's records;
6-12 (2) report the suspension as appropriate; and
6-13 (3) demand surrender of the suspended license if
6-14 required by law for other cases in which a license is suspended.
6-15 (b) A licensing authority shall implement the terms of a
6-16 final order suspending license without additional review or
6-17 hearing. The authority may provide notice as appropriate to the
6-18 license holder or to others concerned with the license.
6-19 (c) A licensing authority may not modify, remand, reverse,
6-20 vacate, or stay an order suspending license issued under this
6-21 subchapter and may not review, vacate, or reconsider the terms of a
6-22 final order suspending license.
6-23 (d) An obligor who is the subject of a final order
6-24 suspending license is not entitled to a refund for any fee or
6-25 deposit paid to the licensing authority.
6-26 (e) An obligor who continues to engage in the business,
6-27 occupation, profession, or other licensed activity after the
7-1 implementation of the order suspending license by the licensing
7-2 authority is liable for the same civil and criminal penalties
7-3 provided for engaging in the licensed activity without a license or
7-4 while a license is suspended that apply to any other license holder
7-5 of that licensing authority.
7-6 (f) A licensing authority is exempt from liability to a
7-7 license holder for any act authorized under this subchapter
7-8 performed by the authority.
7-9 (g) Except as provided by this subchapter, an order
7-10 suspending license or dismissing a petition for the suspension of
7-11 license does not affect the power of a licensing authority to
7-12 grant, deny, suspend, revoke, terminate, or renew a license.
7-13 (h) The denial or suspension of a driver's license under
7-14 this subchapter is governed by this subchapter and not by the
7-15 general licensing provisions of Chapter 521, Transportation Code.
7-16 Sec. 61.912. MOTION TO REVOKE STAY. (a) The obligee may
7-17 file a motion with the coordinating board to revoke the stay of an
7-18 order suspending license if the obligor does not comply with the
7-19 terms of a reasonable repayment plan entered into by the obligor.
7-20 (b) Notice to the obligor of a motion to revoke the stay
7-21 under this section may be given by personal service or by mail to
7-22 the address provided by the obligor, if any, in the order
7-23 suspending the license. The notice must include a notice of
7-24 hearing before the coordinating board. The coordinating board must
7-25 provide the notice to the obligor not less than 10 days before the
7-26 date of the hearing.
7-27 (c) A motion to revoke the stay must allege the manner in
8-1 which the obligor failed to comply with the repayment plan.
8-2 (d) If the coordinating board finds that the obligor is not
8-3 in compliance with the terms of the repayment plan, the
8-4 coordinating board shall revoke the stay of the order suspending
8-5 license and issue a final order suspending license.
8-6 Sec. 61.913. VACATING OR STAYING ORDER SUSPENDING LICENSE.
8-7 (a) The coordinating board may render an order vacating or staying
8-8 an order suspending license if the obligor proves that all
8-9 delinquent amounts due on the student loan have been paid or the
8-10 obligor has taken other action necessary to remove the delinquency.
8-11 (b) The coordinating board shall promptly deliver an order
8-12 vacating or staying an order suspending license to the appropriate
8-13 licensing authority.
8-14 (c) On receipt of an order vacating or staying an order
8-15 suspending license, the licensing authority shall promptly issue
8-16 the affected license to the obligor if the obligor is otherwise
8-17 qualified for the license.
8-18 (d) An order issued under this section does not affect the
8-19 right of the obligee to any other remedy provided by law. An order
8-20 issued under this section does not affect the power of a licensing
8-21 authority to grant, deny, suspend, revoke, terminate, or renew a
8-22 license as otherwise provided by law.
8-23 Sec. 61.914. FEE BY LICENSING AUTHORITY. A licensing
8-24 authority may charge a fee to an obligor who is the subject of an
8-25 order suspending a license under this subchapter in an amount
8-26 sufficient to recover the administrative costs incurred by the
8-27 authority.
9-1 Sec. 61.915. COOPERATION BETWEEN LICENSING AUTHORITIES AND
9-2 COORDINATING BOARD. (a) The coordinating board may request from
9-3 each licensing authority the name, address, social security number,
9-4 license renewal date, and other identifying information for each
9-5 individual who holds, applies for, or renews a license issued by
9-6 the authority.
9-7 (b) A licensing authority shall provide the requested
9-8 information in the manner agreed to by the coordinating board and
9-9 the licensing authority.
9-10 (c) The coordinating board may enter into a cooperative
9-11 agreement with a licensing authority to administer this subchapter
9-12 in a cost-effective manner.
9-13 (d) The coordinating board may adopt a reasonable
9-14 implementation schedule for the requirements of this section.
9-15 (e) The coordinating board, the comptroller, and the Texas
9-16 Alcoholic Beverage Commission by rule shall specify additional
9-17 prerequisites for the suspension of licenses relating to state
9-18 taxes collected under Title 2, Tax Code. The initial joint rules
9-19 shall be adopted not later than March 1, 1998.
9-20 Sec. 61.916. RULES, FORMS, AND PROCEDURES. The coordinating
9-21 board by rule shall prescribe forms and procedures for the
9-22 implementation of this subchapter.
9-23 SECTION 2. (a) Except as provided by Subsections (b) and
9-24 (c), this Act takes effect September 1, 1997.
9-25 (b) The Texas Higher Education Coordinating Board shall
9-26 prescribe the initial rules, forms, and procedures for the
9-27 administration of Subchapter S, Chapter 61, Education Code, as
10-1 added by this Act, not later than January 1, 1998.
10-2 (c) The obligee of a student loan covered by Subchapter S,
10-3 Chapter 61, Education Code, as added by this Act, may not file a
10-4 petition to suspend license under that subchapter before January 1,
10-5 1998.
10-6 SECTION 3. The importance of this legislation and the
10-7 crowded condition of the calendars in both houses create an
10-8 emergency and an imperative public necessity that the
10-9 constitutional rule requiring bills to be read on three several
10-10 days in each house be suspended, and this rule is hereby suspended.