Texas 2019 - 86th Regular

Texas House Bill HB2635 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R5774 SOS-D
2	2	By: Raney H.B. No. 2635
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a prohibition on the use of student loan default or
8	8	breach of a student loan repayment or scholarship contract as a
9	9	ground for refusal to grant or renew an occupational license or
10	10	other disciplinary action in relation to an occupational license.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The heading to Chapter 56, Occupations Code, is
13	13	amended to read as follows:
14	14	CHAPTER 56. DISCIPLINARY ACTION AGAINST RECIPIENTS OF STUDENT
15	15	FINANCIAL ASSISTANCE PROHIBITED
16	16	SECTION 2. Sections 56.001(3), (4), (5), and (6),
17	17	Occupations Code, are amended to read as follows:
18	18	(3) "Licensing authority" means a department,
19	19	commission, board, office, or other agency of the state or of a
20	20	political subdivision of the state that issues a license.
21	21	(4) "Scholarship contract" means an agreement by this
22	22	state, an agency of this state, a political subdivision of this
23	23	state, or the United States to make a grant to a person to support
24	24	the person while attending a public or private institution of
25	25	higher education or other postsecondary educational establishment
26	26	in exchange for the person's agreement to perform a service
27	27	obligation.
28	28	(5) "Student loan" means a loan made to a person by a
29	29	public or private entity to support the person while attending a
30	30	public or private institution of higher education or other
31	31	postsecondary educational establishment [that is:
32	32	[(A) owed to this state, an agency of this state,
33	33	or the United States; or
34	34	[(B) guaranteed by this state, an agency of this
35	35	state, or the United States].
36	36	(6) "Student loan repayment contract" means an
37	37	agreement by this state, an agency of this state, a political
38	38	subdivision of this state, or the United States to repay all or part
39	39	of a person's student loan in exchange for the person's agreement to
40	40	perform a service obligation.
41	41	SECTION 3. Section 56.003, Occupations Code, is amended to
42	42	read as follows:
43	43	Sec. 56.003. DISCIPLINARY [AUTHORITY TO TAKE] ACTION IN
44	44	EVENT OF DEFAULT OR BREACH PROHIBITED. A [On receipt of information
45	45	from an administering entity that a person has defaulted on a
46	46	student loan or has breached a student loan repayment contract or
47	47	scholarship contract by failing to perform the person's service
48	48	obligation under the contract, a] licensing authority may not take
49	49	disciplinary action against a person based on the person's default
50	50	on a student loan or breach of a student loan repayment contract or
51	51	scholarship contract, including by:
52	52	(1) denying [deny] the person's application for a
53	53	license or license renewal;
54	54	(2) suspending [suspend] the person's license; or
55	55	(3) taking [take] other disciplinary action against
56	56	the person.
57	57	SECTION 4. Section 157.015(g), Finance Code, is amended to
58	58	read as follows:
59	59	(g) The commissioner may deny the renewal application for a
60	60	residential mortgage loan originator license if:
61	61	(1) the person seeking the renewal of the residential
62	62	mortgage loan originator license is in violation of this chapter,
63	63	Chapter 156, or Chapter 180, an applicable rule adopted under this
64	64	chapter, Chapter 156, or Chapter 180, or any order previously
65	65	issued to the person by the commissioner;
66	66	(2) the person seeking renewal of the residential
67	67	mortgage loan originator license is in default in the payment of any
68	68	administrative penalty, fee, charge, or other indebtedness owed
69	69	under this title; or
70	70	(3) [the person seeking the renewal of the residential
71	71	mortgage loan originator license is in default on a student loan
72	72	administered by the Texas Guaranteed Student Loan Corporation,
73	73	under Section 57.491, Education Code; or
74	74	[(4)] during the current term of the license, the
75	75	commissioner becomes aware of any fact that would have been grounds
76	76	for denial of an original license if the fact had been known by the
77	77	commissioner on the date the license was granted.
78	78	SECTION 5. Sections 466.155(a) and (g), Government Code,
79	79	are amended to read as follows:
80	80	(a) After a hearing, the director shall deny an application
81	81	for a license or the commission shall suspend or revoke a license if
82	82	the director or commission, as applicable, finds that the applicant
83	83	or sales agent:
84	84	(1) is an individual who:
85	85	(A) has been convicted of a felony, criminal
86	86	fraud, gambling or a gambling-related offense, or a misdemeanor
87	87	involving moral turpitude, if less than 10 years has elapsed since
88	88	the termination of the sentence, parole, mandatory supervision, or
89	89	probation served for the offense;
90	90	(B) is or has been a professional gambler;
91	91	(C) is married to an individual:
92	92	(i) described in Paragraph (A) or (B); or
93	93	(ii) who is currently delinquent in the
94	94	payment of any state tax;
95	95	(D) is an officer or employee of the commission
96	96	or a lottery operator; or
97	97	(E) is a spouse, child, brother, sister, or
98	98	parent residing as a member of the same household in the principal
99	99	place of residence of a person described by Paragraph (D);
100	100	(2) is not an individual, and an individual described
101	101	in Subdivision (1):
102	102	(A) is an officer or director of the applicant or
103	103	sales agent;
104	104	(B) holds more than 10 percent of the stock in the
105	105	applicant or sales agent;
106	106	(C) holds an equitable interest greater than 10
107	107	percent in the applicant or sales agent;
108	108	(D) is a creditor of the applicant or sales agent
109	109	who holds more than 10 percent of the applicant's or sales agent's
110	110	outstanding debt;
111	111	(E) is the owner or lessee of a business that the
112	112	applicant or sales agent conducts or through which the applicant
113	113	will conduct a ticket sales agency;
114	114	(F) shares or will share in the profits, other
115	115	than stock dividends, of the applicant or sales agent; or
116	116	(G) participates in managing the affairs of the
117	117	applicant or sales agent;
118	118	(3) has been finally determined to be[:
119	119	[(A)] delinquent in the payment of a tax or other
120	120	money collected by the comptroller, the Texas Workforce Commission,
121	121	or the Texas Alcoholic Beverage Commission;
122	122	[(B) in default on a loan made under Chapter 52,
123	123	Education Code; or
124	124	[(C) in default on a loan guaranteed under
125	125	Chapter 57, Education Code;]
126	126	(4) is a person whose location for the sales agency is:
127	127	(A) a location licensed for games of bingo under
128	128	Chapter 2001, Occupations Code;
129	129	(B) on land that is owned by:
130	130	(i) this state; or
131	131	(ii) a political subdivision of this state
132	132	and on which is located a public primary or secondary school, an
133	133	institution of higher education, or an agency of the state; or
134	134	(C) a location for which a person holds a wine and
135	135	beer retailer's permit, mixed beverage permit, mixed beverage late
136	136	hours permit, private club registration permit, or private club
137	137	late hours permit issued under Chapter 25, 28, 29, 32, or 33,
138	138	Alcoholic Beverage Code, other than a location for which a person
139	139	holds a wine and beer retailer's permit issued under Chapter 25,
140	140	Alcoholic Beverage Code, that derives less than 30 percent of the
141	141	location's gross receipts from the sale or service of alcoholic
142	142	beverages; or
143	143	(5) has violated this chapter or a rule adopted under
144	144	this chapter.
145	145	(g) For purposes of Subsection (a)(3), the comptroller,
146	146	Texas Workforce Commission, and Texas Alcoholic Beverage
147	147	Commission[, Texas Higher Education Coordinating Board, and Texas
148	148	Guaranteed Student Loan Corporation] shall each provide the
149	149	executive director with a report of persons who have been finally
150	150	determined to be delinquent in the payment of any money owed to or
151	151	collected by that agency. The commission shall adopt rules
152	152	regarding the form and frequency of reports under this subsection.
153	153	SECTION 6. The following laws are repealed:
154	154	(1) Section 57.491, Education Code;
155	155	(2) Section 82.022(c), Government Code;
156	156	(3) Section 154.110(e), Government Code; and
157	157	(4) Sections 56.001(1), 56.002, 56.004, 56.005, and
158	158	56.006, Occupations Code.
159	159	SECTION 7. A disciplinary action proceeding under Chapter
160	160	56, Occupations Code, that was initiated before the effective date
161	161	of this Act and that is pending on the effective date of this Act is
162	162	terminated on that date.
163	163	SECTION 8. This Act takes effect immediately if it receives
164	164	a vote of two-thirds of all the members elected to each house, as
165	165	provided by Section 39, Article III, Texas Constitution. If this
166	166	Act does not receive the vote necessary for immediate effect, this
167	167	Act takes effect September 1, 2019.