1 | 1 | | 84R10764 KSD-D |
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2 | 2 | | By: Turner of Tarrant H.B. No. 2624 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the effects of default on a student loan administered by |
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8 | 8 | | the Texas Higher Education Coordinating Board on renewal of certain |
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9 | 9 | | licenses. |
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10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 11 | | SECTION 1. Subchapter C, Chapter 52, Education Code, is |
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12 | 12 | | amended by adding Section 52.42 to read as follows: |
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13 | 13 | | Sec. 52.42. LOAN DEFAULT GROUND FOR NONRENEWAL OF |
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14 | 14 | | PROFESSIONAL OR OCCUPATIONAL LICENSE. (a) In this section: |
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15 | 15 | | (1) "License" means a certificate or similar form of |
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16 | 16 | | permission issued or renewed by a licensing agency and required by |
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17 | 17 | | law to engage in a profession or occupation. |
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18 | 18 | | (2) "Licensee" means a person to whom a licensing |
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19 | 19 | | agency issues a license. |
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20 | 20 | | (3) "Licensing agency" means a board, commission, |
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21 | 21 | | department, or other agency in the executive branch of state |
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22 | 22 | | government that issues or renews a license. The term does not |
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23 | 23 | | include the State Securities Board. |
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24 | 24 | | (b) The Texas Higher Education Coordinating Board shall |
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25 | 25 | | identify the licensing agencies subject to this section and provide |
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26 | 26 | | written notice to those agencies of the requirements prescribed by |
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27 | 27 | | this section. Only those licensing agencies that the board |
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28 | 28 | | identifies and that receive such notice are required to carry out |
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29 | 29 | | this section. |
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30 | 30 | | (c) Annually, each licensing agency shall prepare a list of |
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31 | 31 | | the agency's licensees and submit the list to the board in hard copy |
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32 | 32 | | or electronic form. Using the submitted lists, the board |
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33 | 33 | | periodically shall: |
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34 | 34 | | (1) identify the licensees on the list who are in |
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35 | 35 | | default on loans administered by the board; and |
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36 | 36 | | (2) provide a list of those licensees to the |
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37 | 37 | | appropriate licensing agencies in hard copy or electronic form. |
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38 | 38 | | (d) A person who is in default on a loan administered by the |
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39 | 39 | | board may enter into an agreement with the board for repayment of |
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40 | 40 | | the defaulted loan. The board shall provide the person with a |
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41 | 41 | | certificate certifying that the person has entered a repayment |
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42 | 42 | | agreement on the defaulted loan. |
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43 | 43 | | (e) A licensing agency may not renew the license of a |
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44 | 44 | | licensee on the list provided by the board under Subsection (c)(2) |
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45 | 45 | | unless the licensee presents to the agency a certificate issued by |
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46 | 46 | | the board certifying that: |
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47 | 47 | | (1) the licensee has entered into a repayment |
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48 | 48 | | agreement with the board on the defaulted loan; or |
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49 | 49 | | (2) the licensee is not in default on a loan |
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50 | 50 | | administered by the board. |
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51 | 51 | | (f) A licensing agency may not renew the license of a |
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52 | 52 | | licensee who defaults on a repayment agreement unless the licensee |
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53 | 53 | | presents to the agency a certificate issued by the board certifying |
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54 | 54 | | that: |
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55 | 55 | | (1) the licensee has entered into another repayment |
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56 | 56 | | agreement with the board on the defaulted loan; or |
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57 | 57 | | (2) the licensee is not in default on a loan |
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58 | 58 | | administered by the board or on a repayment agreement. |
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59 | 59 | | (g) A licensing agency shall provide written notice of the |
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60 | 60 | | nonrenewal policies established by Subsections (e) and (f) to each |
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61 | 61 | | applicant for a license or for renewal of a license. The board |
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62 | 62 | | shall provide written notice of those policies on each loan |
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63 | 63 | | application form provided by the board and on each promissory note |
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64 | 64 | | signed by a borrower. Failure to provide the notice required by |
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65 | 65 | | this subsection does not affect the default status of a borrower or |
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66 | 66 | | the prohibitions on renewal of a license held by a person in |
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67 | 67 | | default. |
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68 | 68 | | (h) A licensing agency shall provide an opportunity for a |
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69 | 69 | | hearing to a licensee before the agency takes action concerning the |
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70 | 70 | | nonrenewal of a license under this section. |
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71 | 71 | | (i) Each licensing agency shall adopt any rules necessary to |
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72 | 72 | | carry out the licensing agency's duties under this section. |
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73 | 73 | | (j) The board by rule shall establish procedures to carry |
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74 | 74 | | out the board's duties under this section. |
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75 | 75 | | SECTION 2. Section 82.022, Government Code, is amended by |
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76 | 76 | | adding Subsection (d) to read as follows: |
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77 | 77 | | (d) The supreme court may adopt rules relating to the |
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78 | 78 | | nonrenewal of the license of a lawyer who is in default on a loan |
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79 | 79 | | administered by the Texas Higher Education Coordinating Board under |
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80 | 80 | | Chapter 52, Education Code. |
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81 | 81 | | SECTION 3. The Texas Higher Education Coordinating Board |
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82 | 82 | | shall adopt rules for the administration of Section 52.42, |
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83 | 83 | | Education Code, as added by this Act, as soon as practicable after |
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84 | 84 | | this Act takes effect. For that purpose, the coordinating board may |
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85 | 85 | | adopt the initial rules in the manner provided by law for emergency |
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86 | 86 | | rules. |
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87 | 87 | | SECTION 4. In consultation with the Texas Higher Education |
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88 | 88 | | Coordinating Board, each licensing agency subject to Section 52.42, |
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89 | 89 | | Education Code, as added by this Act, shall adopt any rules |
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90 | 90 | | necessary to carry out the licensing agency's duties under that |
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91 | 91 | | section as soon as practicable following the effective date of this |
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92 | 92 | | Act. |
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93 | 93 | | SECTION 5. This Act takes effect September 1, 2015. |
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