Texas 2019 - 86th Regular

Texas House Bill HB218 Compare Versions

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11 86R20712 SOS-D
22 By: Krause, Oliverson, Hernandez, Blanco, H.B. No. 218
3- Shaheen, et al.
3+ Goldman
4+ Substitute the following for H.B. No. 218:
5+ By: Frullo C.S.H.B. No. 218
46
57
68 A BILL TO BE ENTITLED
79 AN ACT
810 relating to the abolition of student loan default or breach of a
911 student loan repayment or scholarship contract as a ground for
1012 nonrenewal or other disciplinary action in relation to a
1113 professional or occupational license and to certain duties of state
1214 agencies and political subdivisions in relation to delinquent or
1315 defaulted student loans.
1416 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1517 SECTION 1. Section 57.49, Education Code, is amended to
1618 read as follows:
1719 Sec. 57.49. COOPERATION OF STATE AGENCIES AND SUBDIVISIONS.
1820 Each agency and political subdivision of the state shall cooperate
1921 with the corporation in providing information to the agency's or
2022 political subdivision's clients concerning student financial aid,
2123 including information about default prevention. [Each agency and
2224 political subdivision shall provide information to the corporation
2325 on request to assist the corporation in curing delinquent loans and
2426 collecting defaulted loans.]
2527 SECTION 2. Subchapter C, Chapter 57, Education Code, is
2628 amended by adding Section 57.492 to read as follows:
2729 Sec. 57.492. PROHIBITION AGAINST DENIAL OR NONRENEWAL OF
2830 PROFESSIONAL OR OCCUPATIONAL LICENSE FOR STUDENT LOAN DEFAULT;
2931 DUTIES OF LICENSING AGENCY. (a) In this section:
3032 (1) "License" means a certificate or similar form of
3133 permission issued or renewed by a licensing agency and required by
3234 law to engage in a profession or occupation.
3335 (2) "Licensee" means a person to whom a licensing
3436 agency issues a license.
3537 (3) "Licensing agency" means a board, commission,
3638 department, or other agency in the executive branch of state
3739 government that issues or renews a license.
3840 (b) A licensing agency may not deny the issuance of a
3941 license to a person or the renewal of a person's license based
4042 solely on the default status of the person's student loan
4143 guaranteed by the corporation.
4244 (c) A licensing agency shall cooperate with the corporation
4345 in providing information to a licensee concerning student financial
4446 aid, including information about loan default prevention.
4547 (d) A licensing agency is not required to assist the
4648 corporation in curing delinquent loans or collecting defaulted
4749 loans, including by providing licensee lists to the corporation.
4850 SECTION 3. Section 157.015(g), Finance Code, is amended to
4951 read as follows:
5052 (g) The commissioner may deny the renewal application for a
5153 residential mortgage loan originator license if:
5254 (1) the person seeking the renewal of the residential
5355 mortgage loan originator license is in violation of this chapter,
5456 Chapter 156, or Chapter 180, an applicable rule adopted under this
5557 chapter, Chapter 156, or Chapter 180, or any order previously
5658 issued to the person by the commissioner;
5759 (2) the person seeking renewal of the residential
5860 mortgage loan originator license is in default in the payment of any
5961 administrative penalty, fee, charge, or other indebtedness owed
6062 under this title; or
6163 (3) [the person seeking the renewal of the residential
6264 mortgage loan originator license is in default on a student loan
6365 administered by the Texas Guaranteed Student Loan Corporation,
6466 under Section 57.491, Education Code; or
6567 [(4)] during the current term of the license, the
6668 commissioner becomes aware of any fact, other than default on a
6769 student loan administered by the Texas Guaranteed Student Loan
6870 Corporation, that would have been grounds for denial of an original
6971 license if the fact had been known by the commissioner on the date
7072 the license was granted.
7173 SECTION 4. Sections 466.155(a) and (g), Government Code,
7274 are amended to read as follows:
7375 (a) After a hearing, the director shall deny an application
7476 for a license or the commission shall suspend or revoke a license if
7577 the director or commission, as applicable, finds that the applicant
7678 or sales agent:
7779 (1) is an individual who:
7880 (A) has been convicted of a felony, criminal
7981 fraud, gambling or a gambling-related offense, or a misdemeanor
8082 involving moral turpitude, if less than 10 years has elapsed since
8183 the termination of the sentence, parole, mandatory supervision, or
8284 probation served for the offense;
8385 (B) is or has been a professional gambler;
8486 (C) is married to an individual:
8587 (i) described in Paragraph (A) or (B); or
8688 (ii) who is currently delinquent in the
8789 payment of any state tax;
8890 (D) is an officer or employee of the commission
8991 or a lottery operator; or
9092 (E) is a spouse, child, brother, sister, or
9193 parent residing as a member of the same household in the principal
9294 place of residence of a person described by Paragraph (D);
9395 (2) is not an individual, and an individual described
9496 in Subdivision (1):
9597 (A) is an officer or director of the applicant or
9698 sales agent;
9799 (B) holds more than 10 percent of the stock in the
98100 applicant or sales agent;
99101 (C) holds an equitable interest greater than 10
100102 percent in the applicant or sales agent;
101103 (D) is a creditor of the applicant or sales agent
102104 who holds more than 10 percent of the applicant's or sales agent's
103105 outstanding debt;
104106 (E) is the owner or lessee of a business that the
105107 applicant or sales agent conducts or through which the applicant
106108 will conduct a ticket sales agency;
107109 (F) shares or will share in the profits, other
108110 than stock dividends, of the applicant or sales agent; or
109111 (G) participates in managing the affairs of the
110112 applicant or sales agent;
111113 (3) has been finally determined to be[:
112114 [(A)] delinquent in the payment of a tax or other
113115 money collected by the comptroller, the Texas Workforce Commission,
114116 or the Texas Alcoholic Beverage Commission;
115117 [(B) in default on a loan made under Chapter 52,
116118 Education Code; or
117119 [(C) in default on a loan guaranteed under
118120 Chapter 57, Education Code;]
119121 (4) is a person whose location for the sales agency is:
120122 (A) a location licensed for games of bingo under
121123 Chapter 2001, Occupations Code;
122124 (B) on land that is owned by:
123125 (i) this state; or
124126 (ii) a political subdivision of this state
125127 and on which is located a public primary or secondary school, an
126128 institution of higher education, or an agency of the state; or
127129 (C) a location for which a person holds a wine and
128130 beer retailer's permit, mixed beverage permit, mixed beverage late
129131 hours permit, private club registration permit, or private club
130132 late hours permit issued under Chapter 25, 28, 29, 32, or 33,
131133 Alcoholic Beverage Code, other than a location for which a person
132134 holds a wine and beer retailer's permit issued under Chapter 25,
133135 Alcoholic Beverage Code, that derives less than 30 percent of the
134136 location's gross receipts from the sale or service of alcoholic
135137 beverages; or
136138 (5) has violated this chapter or a rule adopted under
137139 this chapter.
138140 (g) For purposes of Subsection (a)(3), the comptroller,
139141 Texas Workforce Commission, and Texas Alcoholic Beverage
140142 Commission[, Texas Higher Education Coordinating Board, and Texas
141143 Guaranteed Student Loan Corporation] shall each provide the
142144 executive director with a report of persons who have been finally
143145 determined to be delinquent in the payment of any money owed to or
144146 collected by that agency. The commission shall adopt rules
145147 regarding the form and frequency of reports under this subsection.
146148 SECTION 5. The following laws are repealed:
147149 (1) Section 57.491, Education Code;
148150 (2) Section 82.022(c), Government Code;
149151 (3) Section 154.110(e), Government Code; and
150152 (4) Chapter 56, Occupations Code.
151153 SECTION 6. This Act takes effect immediately if it receives
152154 a vote of two-thirds of all the members elected to each house, as
153155 provided by Section 39, Article III, Texas Constitution. If this
154156 Act does not receive the vote necessary for immediate effect, this
155157 Act takes effect September 1, 2019.