1-1     By:  Gutierrez (Senate Sponsor - Staples)             H.B. No. 1755
 1-2           (In the Senate - Received from the House April 24, 2001;
 1-3     April 25, 2001, read first time and referred to Committee on
 1-4     Education; May 11, 2001, reported favorably by the following vote:
 1-5     Yeas 6, Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to action by certain occupational regulatory agencies
 1-9     against certain recipients of student financial assistance.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Title 2, Occupations Code, is amended by adding
1-12     Chapter 56 to read as follows:
1-13                  CHAPTER 56.  ACTION AGAINST RECIPIENTS OF
1-14                        STUDENT FINANCIAL ASSISTANCE
1-15           Sec. 56.001.  DEFINITIONS. In this chapter:
1-16                 (1)  "Administering entity" means a governmental entity
1-17     that administers a student loan, student loan repayment, or
1-18     scholarship program.
1-19                 (2)  "License" means a license, certificate,
1-20     registration, permit, or other authorization that:
1-21                       (A)  is issued by a licensing authority; and
1-22                       (B)  a person must obtain to practice or engage
1-23     in a particular business, occupation, or profession.
1-24                 (3)  "Licensing authority" means a department,
1-25     commission, board, office, or other agency of the state that issues
1-26     a license.
1-27                 (4)  "Scholarship contract" means an agreement by this
1-28     state, an agency of this state, or the United States to make a
1-29     grant to a person to support the person while attending a public or
1-30     private institution of higher education or other postsecondary
1-31     educational establishment in exchange for the person's agreement to
1-32     perform a service obligation.
1-33                 (5)  "Student loan" means a loan made to a person to
1-34     support the person while attending a public or private institution
1-35     of higher education or other postsecondary educational
1-36     establishment that is:
1-37                       (A)  owed to this state, an agency of this state,
1-38     or the United States; or
1-39                       (B)  guaranteed by this state, an agency of this
1-40     state, or the United States.
1-41                 (6)  "Student loan repayment contract" means an
1-42     agreement by this state, an agency of this state, or the United
1-43     States to repay all or part of a person's student loan in exchange
1-44     for the person's agreement to perform a service obligation.
1-45           Sec. 56.002.  APPLICABILITY. This chapter applies only to the
1-46     following licensing authorities:
1-47                 (1)  Texas Board of Chiropractic Examiners;
1-48                 (2)  State Board of Dental Examiners;
1-49                 (3)  Texas State Board of Podiatric Medical Examiners;
1-50     and
1-51                 (4)  Texas State Board of Medical Examiners.
1-52           Sec. 56.003.  AUTHORITY TO TAKE ACTION IN EVENT OF DEFAULT OR
1-53     BREACH. On receipt of information from an administering entity that
1-54     a person has defaulted on a student loan or has breached a student
1-55     loan repayment contract or scholarship contract by failing to
1-56     perform the person's service obligation under the contract, a
1-57     licensing authority may:
1-58                 (1)  deny the person's application for a license or
1-59     license renewal;
1-60                 (2)  suspend the person's license; or
1-61                 (3)  take other disciplinary action against the person.
1-62           Sec. 56.004.  REBUTTABLE PRESUMPTION. A determination by an
1-63     administering entity that a person has defaulted on a student loan
1-64     or has breached a student loan repayment contract or scholarship
 2-1     contract by failing to perform the person's service obligation
 2-2     under the contract creates a rebuttable presumption that the person
 2-3     has committed the default or breach.
 2-4           Sec. 56.005.  RESCISSION OF ACTION. A licensing authority may
 2-5     rescind any action taken under Section 56.003 on the receipt of
 2-6     information from an administering entity that the person against
 2-7     whom the action was taken has:
 2-8                 (1)  entered into an agreement with the administering
 2-9     entity to:
2-10                       (A)  repay the student loan;
2-11                       (B)  perform the service obligation; or
2-12                       (C)  pay any damages required by the student loan
2-13     repayment contract or scholarship contract; or
2-14                 (2)  taken other action resulting in the person no
2-15     longer being in default on the student loan or in breach of the
2-16     student loan repayment contract or scholarship contract.
2-17           Sec. 56.006.  REINSTATEMENT OF ACTION. A licensing authority
2-18     may reinstate any action taken under Section 56.003 and may take
2-19     other disciplinary action on the receipt of information from an
2-20     administering entity that the person against whom the action was
2-21     taken has:
2-22                 (1)  defaulted on or breached an agreement under
2-23     Section 56.005(1); or
2-24                 (2)  otherwise defaulted on the student loan or
2-25     breached the student loan repayment contract or scholarship
2-26     contract.
2-27           SECTION 2.  This Act takes effect immediately if it receives
2-28     a vote of two-thirds of all the members elected to each house, as
2-29     provided by Section 39, Article III, Texas Constitution.  If this
2-30     Act does not receive the vote necessary for immediate effect, this
2-31     Act takes effect September 1, 2001.
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