4 | 6 | | |
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5 | 7 | | |
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6 | 8 | | A BILL TO BE ENTITLED |
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7 | 9 | | AN ACT |
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8 | 10 | | relating to the abolition of student loan default or breach of a |
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9 | 11 | | student loan repayment or scholarship contract as a ground for |
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10 | 12 | | nonrenewal or other disciplinary action in relation to a |
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11 | 13 | | professional or occupational license and to certain duties of state |
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12 | 14 | | agencies and political subdivisions in relation to delinquent or |
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13 | 15 | | defaulted student loans. |
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14 | 16 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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15 | 17 | | SECTION 1. Section 57.49, Education Code, is amended to |
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16 | 18 | | read as follows: |
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17 | 19 | | Sec. 57.49. COOPERATION OF STATE AGENCIES AND SUBDIVISIONS. |
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18 | 20 | | Each agency and political subdivision of the state shall cooperate |
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19 | 21 | | with the corporation in providing information to the agency's or |
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20 | 22 | | political subdivision's clients concerning student financial aid, |
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21 | 23 | | including information about default prevention. [Each agency and |
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22 | 24 | | political subdivision shall provide information to the corporation |
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23 | 25 | | on request to assist the corporation in curing delinquent loans and |
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24 | 26 | | collecting defaulted loans.] |
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25 | 27 | | SECTION 2. Subchapter C, Chapter 57, Education Code, is |
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26 | 28 | | amended by adding Section 57.492 to read as follows: |
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27 | 29 | | Sec. 57.492. PROHIBITION AGAINST DENIAL OR NONRENEWAL OF |
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28 | 30 | | PROFESSIONAL OR OCCUPATIONAL LICENSE FOR STUDENT LOAN DEFAULT; |
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29 | 31 | | DUTIES OF LICENSING AGENCY. (a) In this section: |
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30 | 32 | | (1) "License" means a certificate or similar form of |
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31 | 33 | | permission issued or renewed by a licensing agency and required by |
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32 | 34 | | law to engage in a profession or occupation. |
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33 | 35 | | (2) "Licensee" means a person to whom a licensing |
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34 | 36 | | agency issues a license. |
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35 | 37 | | (3) "Licensing agency" means a board, commission, |
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36 | 38 | | department, or other agency in the executive branch of state |
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37 | 39 | | government that issues or renews a license. |
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38 | 40 | | (b) A licensing agency may not deny the issuance of a |
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39 | 41 | | license to a person or the renewal of a person's license based |
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40 | 42 | | solely on the default status of the person's student loan |
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41 | 43 | | guaranteed by the corporation. |
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42 | 44 | | (c) A licensing agency shall cooperate with the corporation |
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43 | 45 | | in providing information to a licensee concerning student financial |
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44 | 46 | | aid, including information about loan default prevention. |
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45 | 47 | | (d) A licensing agency is not required to assist the |
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46 | 48 | | corporation in curing delinquent loans or collecting defaulted |
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47 | 49 | | loans, including by providing licensee lists to the corporation. |
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48 | 50 | | SECTION 3. Section 157.015(g), Finance Code, is amended to |
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49 | 51 | | read as follows: |
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50 | 52 | | (g) The commissioner may deny the renewal application for a |
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51 | 53 | | residential mortgage loan originator license if: |
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52 | 54 | | (1) the person seeking the renewal of the residential |
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53 | 55 | | mortgage loan originator license is in violation of this chapter, |
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54 | 56 | | Chapter 156, or Chapter 180, an applicable rule adopted under this |
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55 | 57 | | chapter, Chapter 156, or Chapter 180, or any order previously |
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56 | 58 | | issued to the person by the commissioner; |
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57 | 59 | | (2) the person seeking renewal of the residential |
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58 | 60 | | mortgage loan originator license is in default in the payment of any |
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59 | 61 | | administrative penalty, fee, charge, or other indebtedness owed |
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60 | 62 | | under this title; or |
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61 | 63 | | (3) [the person seeking the renewal of the residential |
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62 | 64 | | mortgage loan originator license is in default on a student loan |
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63 | 65 | | administered by the Texas Guaranteed Student Loan Corporation, |
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64 | 66 | | under Section 57.491, Education Code; or |
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65 | 67 | | [(4)] during the current term of the license, the |
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66 | 68 | | commissioner becomes aware of any fact, other than default on a |
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67 | 69 | | student loan administered by the Texas Guaranteed Student Loan |
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68 | 70 | | Corporation, that would have been grounds for denial of an original |
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69 | 71 | | license if the fact had been known by the commissioner on the date |
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70 | 72 | | the license was granted. |
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71 | 73 | | SECTION 4. Sections 466.155(a) and (g), Government Code, |
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72 | 74 | | are amended to read as follows: |
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73 | 75 | | (a) After a hearing, the director shall deny an application |
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74 | 76 | | for a license or the commission shall suspend or revoke a license if |
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75 | 77 | | the director or commission, as applicable, finds that the applicant |
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76 | 78 | | or sales agent: |
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77 | 79 | | (1) is an individual who: |
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78 | 80 | | (A) has been convicted of a felony, criminal |
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79 | 81 | | fraud, gambling or a gambling-related offense, or a misdemeanor |
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80 | 82 | | involving moral turpitude, if less than 10 years has elapsed since |
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81 | 83 | | the termination of the sentence, parole, mandatory supervision, or |
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82 | 84 | | probation served for the offense; |
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83 | 85 | | (B) is or has been a professional gambler; |
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84 | 86 | | (C) is married to an individual: |
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85 | 87 | | (i) described in Paragraph (A) or (B); or |
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86 | 88 | | (ii) who is currently delinquent in the |
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87 | 89 | | payment of any state tax; |
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88 | 90 | | (D) is an officer or employee of the commission |
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89 | 91 | | or a lottery operator; or |
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90 | 92 | | (E) is a spouse, child, brother, sister, or |
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91 | 93 | | parent residing as a member of the same household in the principal |
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92 | 94 | | place of residence of a person described by Paragraph (D); |
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93 | 95 | | (2) is not an individual, and an individual described |
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94 | 96 | | in Subdivision (1): |
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95 | 97 | | (A) is an officer or director of the applicant or |
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96 | 98 | | sales agent; |
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97 | 99 | | (B) holds more than 10 percent of the stock in the |
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98 | 100 | | applicant or sales agent; |
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99 | 101 | | (C) holds an equitable interest greater than 10 |
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100 | 102 | | percent in the applicant or sales agent; |
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101 | 103 | | (D) is a creditor of the applicant or sales agent |
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102 | 104 | | who holds more than 10 percent of the applicant's or sales agent's |
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103 | 105 | | outstanding debt; |
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104 | 106 | | (E) is the owner or lessee of a business that the |
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105 | 107 | | applicant or sales agent conducts or through which the applicant |
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106 | 108 | | will conduct a ticket sales agency; |
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107 | 109 | | (F) shares or will share in the profits, other |
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108 | 110 | | than stock dividends, of the applicant or sales agent; or |
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109 | 111 | | (G) participates in managing the affairs of the |
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110 | 112 | | applicant or sales agent; |
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111 | 113 | | (3) has been finally determined to be[: |
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112 | 114 | | [(A)] delinquent in the payment of a tax or other |
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113 | 115 | | money collected by the comptroller, the Texas Workforce Commission, |
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114 | 116 | | or the Texas Alcoholic Beverage Commission; |
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115 | 117 | | [(B) in default on a loan made under Chapter 52, |
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116 | 118 | | Education Code; or |
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117 | 119 | | [(C) in default on a loan guaranteed under |
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118 | 120 | | Chapter 57, Education Code;] |
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119 | 121 | | (4) is a person whose location for the sales agency is: |
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120 | 122 | | (A) a location licensed for games of bingo under |
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121 | 123 | | Chapter 2001, Occupations Code; |
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122 | 124 | | (B) on land that is owned by: |
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123 | 125 | | (i) this state; or |
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124 | 126 | | (ii) a political subdivision of this state |
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125 | 127 | | and on which is located a public primary or secondary school, an |
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126 | 128 | | institution of higher education, or an agency of the state; or |
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127 | 129 | | (C) a location for which a person holds a wine and |
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128 | 130 | | beer retailer's permit, mixed beverage permit, mixed beverage late |
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129 | 131 | | hours permit, private club registration permit, or private club |
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130 | 132 | | late hours permit issued under Chapter 25, 28, 29, 32, or 33, |
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131 | 133 | | Alcoholic Beverage Code, other than a location for which a person |
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132 | 134 | | holds a wine and beer retailer's permit issued under Chapter 25, |
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133 | 135 | | Alcoholic Beverage Code, that derives less than 30 percent of the |
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134 | 136 | | location's gross receipts from the sale or service of alcoholic |
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135 | 137 | | beverages; or |
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136 | 138 | | (5) has violated this chapter or a rule adopted under |
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137 | 139 | | this chapter. |
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138 | 140 | | (g) For purposes of Subsection (a)(3), the comptroller, |
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139 | 141 | | Texas Workforce Commission, and Texas Alcoholic Beverage |
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140 | 142 | | Commission[, Texas Higher Education Coordinating Board, and Texas |
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141 | 143 | | Guaranteed Student Loan Corporation] shall each provide the |
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142 | 144 | | executive director with a report of persons who have been finally |
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143 | 145 | | determined to be delinquent in the payment of any money owed to or |
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144 | 146 | | collected by that agency. The commission shall adopt rules |
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145 | 147 | | regarding the form and frequency of reports under this subsection. |
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146 | 148 | | SECTION 5. The following laws are repealed: |
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147 | 149 | | (1) Section 57.491, Education Code; |
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148 | 150 | | (2) Section 82.022(c), Government Code; |
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149 | 151 | | (3) Section 154.110(e), Government Code; and |
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150 | 152 | | (4) Chapter 56, Occupations Code. |
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151 | 153 | | SECTION 6. This Act takes effect immediately if it receives |
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152 | 154 | | a vote of two-thirds of all the members elected to each house, as |
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153 | 155 | | provided by Section 39, Article III, Texas Constitution. If this |
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154 | 156 | | Act does not receive the vote necessary for immediate effect, this |
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155 | 157 | | Act takes effect September 1, 2019. |
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