1-1 AN ACT
1-2 relating to action by certain occupational regulatory agencies
1-3 against certain recipients of student financial assistance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 2, Occupations Code, is amended by adding
1-6 Chapter 56 to read as follows:
1-7 CHAPTER 56. ACTION AGAINST RECIPIENTS OF
1-8 STUDENT FINANCIAL ASSISTANCE
1-9 Sec. 56.001. DEFINITIONS. In this chapter:
1-10 (1) "Administering entity" means a governmental entity
1-11 that administers a student loan, student loan repayment, or
1-12 scholarship program.
1-13 (2) "License" means a license, certificate,
1-14 registration, permit, or other authorization that:
1-15 (A) is issued by a licensing authority; and
1-16 (B) a person must obtain to practice or engage
1-17 in a particular business, occupation, or profession.
1-18 (3) "Licensing authority" means a department,
1-19 commission, board, office, or other agency of the state that issues
1-20 a license.
1-21 (4) "Scholarship contract" means an agreement by this
1-22 state, an agency of this state, or the United States to make a
1-23 grant to a person to support the person while attending a public or
1-24 private institution of higher education or other postsecondary
2-1 educational establishment in exchange for the person's agreement to
2-2 perform a service obligation.
2-3 (5) "Student loan" means a loan made to a person to
2-4 support the person while attending a public or private institution
2-5 of higher education or other postsecondary educational
2-6 establishment that is:
2-7 (A) owed to this state, an agency of this state,
2-8 or the United States; or
2-9 (B) guaranteed by this state, an agency of this
2-10 state, or the United States.
2-11 (6) "Student loan repayment contract" means an
2-12 agreement by this state, an agency of this state, or the United
2-13 States to repay all or part of a person's student loan in exchange
2-14 for the person's agreement to perform a service obligation.
2-15 Sec. 56.002. APPLICABILITY. This chapter applies only to the
2-16 following licensing authorities:
2-17 (1) Texas Board of Chiropractic Examiners;
2-18 (2) State Board of Dental Examiners;
2-19 (3) Texas State Board of Podiatric Medical Examiners;
2-20 and
2-21 (4) Texas State Board of Medical Examiners.
2-22 Sec. 56.003. AUTHORITY TO TAKE ACTION IN EVENT OF DEFAULT OR
2-23 BREACH. On receipt of information from an administering entity that
2-24 a person has defaulted on a student loan or has breached a student
2-25 loan repayment contract or scholarship contract by failing to
2-26 perform the person's service obligation under the contract, a
2-27 licensing authority may:
3-1 (1) deny the person's application for a license or
3-2 license renewal;
3-3 (2) suspend the person's license; or
3-4 (3) take other disciplinary action against the person.
3-5 Sec. 56.004. REBUTTABLE PRESUMPTION. A determination by an
3-6 administering entity that a person has defaulted on a student loan
3-7 or has breached a student loan repayment contract or scholarship
3-8 contract by failing to perform the person's service obligation
3-9 under the contract creates a rebuttable presumption that the person
3-10 has committed the default or breach.
3-11 Sec. 56.005. RESCISSION OF ACTION. A licensing authority may
3-12 rescind any action taken under Section 56.003 on the receipt of
3-13 information from an administering entity that the person against
3-14 whom the action was taken has:
3-15 (1) entered into an agreement with the administering
3-16 entity to:
3-17 (A) repay the student loan;
3-18 (B) perform the service obligation; or
3-19 (C) pay any damages required by the student loan
3-20 repayment contract or scholarship contract; or
3-21 (2) taken other action resulting in the person no
3-22 longer being in default on the student loan or in breach of the
3-23 student loan repayment contract or scholarship contract.
3-24 Sec. 56.006. REINSTATEMENT OF ACTION. A licensing authority
3-25 may reinstate any action taken under Section 56.003 and may take
3-26 other disciplinary action on the receipt of information from an
3-27 administering entity that the person against whom the action was
4-1 taken has:
4-2 (1) defaulted on or breached an agreement under
4-3 Section 56.005(1); or
4-4 (2) otherwise defaulted on the student loan or
4-5 breached the student loan repayment contract or scholarship
4-6 contract.
4-7 SECTION 2. This Act takes effect immediately if it receives
4-8 a vote of two-thirds of all the members elected to each house, as
4-9 provided by Section 39, Article III, Texas Constitution. If this
4-10 Act does not receive the vote necessary for immediate effect, this
4-11 Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1755 was passed by the House on April
23, 2001, by the following vote: Yeas 144, Nays 0, 2 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1755 was passed by the Senate on May
22, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not
voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor