SRC-MWN H.B. 1755 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1755
77R3370 SMH-DBy: Gutierrez (Staples)
Education
5/10/2001
Engrossed


DIGEST AND PURPOSE 

Medical professionals who default on their student loans are excluded from
participating in Medicare and Medicaid, but no other sanctions are levied
against their practice. These individuals have received substantial
economic benefit through student loans, and some feel that such individuals
should be required to honor their commitment. H.B. 1755 authorizes a
licensing authority to suspend or deny the renewal of any state-issued
license for a chiropractor, dentist, podiatrist, or medical doctor who has
been found to be delinquent in the repayment of an educational loan or
scholarship contract.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 2, Occupations Code, by adding Chapter 56, as
follows: 

CHAPTER 56. ACTION AGAINST RECIPIENTS OF
STUDENT FINANCIAL ASSISTANCE

Sec. 56.001. DEFINITIONS. Defines "administering entity," "license,"
"licensing authority," "scholarship contract," "student loan," and "student
loan repayment contract." 

Sec. 56.002. APPLICABILITY. Provides that this chapter applies only to
certain licensing authorities. 

Sec. 56.003.  AUTHORITY TO TAKE ACTION IN EVENT OF DEFAULT OR BREACH.
Authorizes a licensing authority, on receipt of information from an
administering entity that a person has defaulted on a student loan or has
breached a student loan repayment contract or scholarship contract by
failing to perform the person's service obligation under the contract, to
perform certain procedures. 

Sec. 56.004.  REBUTTABLE PRESUMPTION. Provides that a determination by an
administering entity that a person has defaulted on a student loan or has
breached a student loan repayment contract or scholarship contract by
failing to perform the person's service obligation under the contract
creates a rebuttable presumption that the person has committed the default
or breach. 

Sec. 56.005.  RESCISSION OF ACTION. Authorizes a licensing authority to
rescind any action taken under Section 56.003 on the receipt of information
from an administering entity that the person against whom the action was
taken has met certain conditions. 

Sec. 56.006.  REINSTATEMENT OF ACTION. Authorizes a licensing authority to
reinstate any action taken under Section 56.003 and to take other
disciplinary action on the receipt of  information from an administering
entity that the person against whom the action was taken has met certain
conditions. 

SECTION 2. Effective date: upon passage or September 1, 2001.