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A BILL TO BE ENTITLED
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AN ACT
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relating to the effects of default on a student loan administered by |
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the Texas Higher Education Coordinating Board on renewal of certain |
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licenses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 52, Education Code, is |
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amended by adding Section 52.42 to read as follows: |
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Sec. 52.42. LOAN DEFAULT GROUND FOR NONRENEWAL OF |
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PROFESSIONAL OR OCCUPATIONAL LICENSE. (a) In this section: |
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(1) "License" means a certificate or similar form of |
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permission issued or renewed by a licensing agency and required by |
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law to engage in a profession or occupation. |
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(2) "Licensee" means a person to whom a licensing |
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agency issues a license. |
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(3) "Licensing agency" means a board, commission, |
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department, or other agency in the executive branch of state |
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government that issues or renews a license. The term does not |
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include the State Securities Board. |
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(b) The Texas Higher Education Coordinating Board shall |
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identify the licensing agencies subject to this section and provide |
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written notice to those agencies of the requirements prescribed by |
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this section. Only those licensing agencies that the board |
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identifies and that receive such notice are required to carry out |
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this section. |
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(c) Annually, each licensing agency shall prepare a list of |
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the agency's licensees and submit the list to the board in hard copy |
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or electronic form. Using the submitted lists, the board |
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periodically shall: |
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(1) identify the licensees on the list who are in |
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default on loans administered by the board; and |
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(2) provide a list of those licensees to the |
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appropriate licensing agencies in hard copy or electronic form. |
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(d) A person who is in default on a loan administered by the |
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board may enter into an agreement with the board for repayment of |
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the defaulted loan. The board shall provide the person with a |
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certificate certifying that the person has entered a repayment |
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agreement on the defaulted loan. |
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(e) A licensing agency may not renew the license of a |
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licensee on the list provided by the board under Subsection (c)(2) |
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unless the licensee presents to the agency a certificate issued by |
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the board certifying that: |
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(1) the licensee has entered into a repayment |
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agreement with the board on the defaulted loan; or |
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(2) the licensee is not in default on a loan |
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administered by the board. |
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(f) A licensing agency may not renew the license of a |
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licensee who defaults on a repayment agreement unless the licensee |
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presents to the agency a certificate issued by the board certifying |
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that: |
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(1) the licensee has entered into another repayment |
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agreement with the board on the defaulted loan; or |
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(2) the licensee is not in default on a loan |
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administered by the board or on a repayment agreement. |
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(g) A licensing agency shall provide written notice of the |
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nonrenewal policies established by Subsections (e) and (f) to each |
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applicant for a license or for renewal of a license. The board |
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shall provide written notice of those policies on each loan |
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application form provided by the board and on each promissory note |
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signed by a borrower. Failure to provide the notice required by |
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this subsection does not affect the default status of a borrower or |
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the prohibitions on renewal of a license held by a person in |
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default. |
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(h) A licensing agency shall provide an opportunity for a |
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hearing to a licensee before the agency takes action concerning the |
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nonrenewal of a license under this section. |
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(i) Each licensing agency shall adopt any rules necessary to |
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carry out the licensing agency's duties under this section. |
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(j) The board by rule shall establish procedures to carry |
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out the board's duties under this section. |
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SECTION 2. Section 82.022, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) The supreme court may adopt rules relating to the |
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nonrenewal of the license of a lawyer who is in default on a loan |
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administered by the Texas Higher Education Coordinating Board under |
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Chapter 52, Education Code. |
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SECTION 3. The Texas Higher Education Coordinating Board |
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shall adopt rules for the administration of Section 52.42, |
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Education Code, as added by this Act, as soon as practicable after |
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this Act takes effect. For that purpose, the coordinating board may |
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adopt the initial rules in the manner provided by law for emergency |
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rules. |
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SECTION 4. In consultation with the Texas Higher Education |
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Coordinating Board, each licensing agency subject to Section 52.42, |
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Education Code, as added by this Act, shall adopt any rules |
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necessary to carry out the licensing agency's duties under that |
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section as soon as practicable following the effective date of this |
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Act. |
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SECTION 5. This Act takes effect September 1, 2015. |