HBA-EDN, JLV H.B. 1755 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1755
By: Gutierrez
Higher Education
3/5/2001
Introduced


BACKGROUND 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.  House Bill 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

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1755 amends the Occupations Code to authorize certain licensing
authorities, if they receive information that a person has defaulted on a
student loan or has breached a student loan repayment contract or
scholarship contract, to deny the person's application for license or
license renewal, suspend the person's license, or take other disciplinary
action against the person.  The licensing authorities to which the bill
applies are the Texas Board of Chiropractic Examiners, the State Board of
Dental Examiners, the Texas State Board of Podiatric Medical Examiners, and
the Texas State Board of Medical Examiners. 

The bill provides that if an administering entity determines that a person
has defaulted on a student loan or has breached a student loan repayment
contract or scholarship contract, then it creates a rebuttable presumption
that the person has committed the default or breach. 

The bill authorizes a licensing authority to rescind any action taken on
the receipt of information from an administering entity that the person
against whom the action was taken has entered into an agreement with the
administering entity to either repay the student loan, perform the service
obligation, or pay any damages required by the student loan repayment
contract or scholarship contract, or that the person has taken other action
resulting in the person no longer being in default on the student loan or
in breach of the student loan repayment contract or scholarship contract. 

The bill authorizes a licensing authority to reinstate any action taken
under these provisions and is authorized to take other disciplinary action
on the receipt of information from an administering entity that the person
against whom the action was taken has either defaulted on or breached an
agreement or has otherwise defaulted on the student loan or breached the
student loan repayment contract or scholarship contract. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.