Texas 2019 - 86th Regular

Texas Senate Bill SB37 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 37
	1	+	By: Zaffirini, et al. S.B. No. 37
	2	+	(Krause, Hernandez, Blanco, Oliverson, Shaheen)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to a prohibition on the use of student loan default or
6	8		breach of a student loan repayment or scholarship contract as a
7	9		ground for refusal to grant or renew an occupational license or
8	10		other disciplinary action in relation to an occupational license.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. The heading to Chapter 56, Occupations Code, is
11	13		amended to read as follows:
12	14		CHAPTER 56. DISCIPLINARY ACTION AGAINST RECIPIENTS OF STUDENT
13	15		FINANCIAL ASSISTANCE PROHIBITED
14	16		SECTION 2. Sections 56.001(3), (4), (5), and (6),
15	17		Occupations Code, are amended to read as follows:
16	18		(3) "Licensing authority" means a department,
17	19		commission, board, office, or other agency of the state or of a
18	20		political subdivision of the state that issues a license.
19	21		(4) "Scholarship contract" means an agreement by this
20	22		state, an agency of this state, a political subdivision of this
21	23		state, or the United States to make a grant to a person to support
22	24		the person while attending a public or private institution of
23	25		higher education or other postsecondary educational establishment
24	26		in exchange for the person's agreement to perform a service
25	27		obligation.
26	28		(5) "Student loan" means a loan made to a person by a
27	29		public or private entity to support the person while attending a
28	30		public or private institution of higher education or other
29	31		postsecondary educational establishment [that is:
30	32		[(A) owed to this state, an agency of this state,
31	33		or the United States; or
32	34		[(B) guaranteed by this state, an agency of this
33	35		state, or the United States].
34	36		(6) "Student loan repayment contract" means an
35	37		agreement by this state, an agency of this state, a political
36	38		subdivision of this state, or the United States to repay all or part
37	39		of a person's student loan in exchange for the person's agreement to
38	40		perform a service obligation.
39	41		SECTION 3. Section 56.003, Occupations Code, is amended to
40	42		read as follows:
41	43		Sec. 56.003. DISCIPLINARY [AUTHORITY TO TAKE] ACTION IN
42	44		EVENT OF DEFAULT OR BREACH PROHIBITED. A [On receipt of information
43	45		from an administering entity that a person has defaulted on a
44	46		student loan or has breached a student loan repayment contract or
45	47		scholarship contract by failing to perform the person's service
46	48		obligation under the contract, a] licensing authority may not take
47	49		disciplinary action against a person based on the person's default
48	50		on a student loan or breach of a student loan repayment contract or
49	51		scholarship contract, including by:
50	52		(1) denying [deny] the person's application for a
51	53		license or license renewal;
52	54		(2) suspending [suspend] the person's license; or
53	55		(3) taking [take] other disciplinary action against
54	56		the person.
55	57		SECTION 4. Sections 157.015(f) and (g), Finance Code, are
56	58		amended to read as follows:
57	59		(f) The commissioner may deny the renewal application for a
58	60		residential mortgage loan originator license for the same reasons
59	61		and grounds on which the commissioner could have denied an original
60	62		application for a license, other than on the basis of the person's
61	63		default on a student loan.
62	64		(g) The commissioner may deny the renewal application for a
63	65		residential mortgage loan originator license if:
64	66		(1) the person seeking the renewal of the residential
65	67		mortgage loan originator license is in violation of this chapter,
66	68		Chapter 156, or Chapter 180, an applicable rule adopted under this
67	69		chapter, Chapter 156, or Chapter 180, or any order previously
68	70		issued to the person by the commissioner;
69	71		(2) the person seeking renewal of the residential
70	72		mortgage loan originator license is in default in the payment of any
71	73		administrative penalty, fee, charge, or other indebtedness owed
72	74		under this title; or
73	75		(3) [the person seeking the renewal of the residential
74	76		mortgage loan originator license is in default on a student loan
75	77		administered by the Texas Guaranteed Student Loan Corporation,
76	78		under Section 57.491, Education Code; or
77	79		[(4)] during the current term of the license, the
78	80		commissioner becomes aware of any fact that would have been grounds
79	81		for denial of an original license if the fact had been known by the
80	82		commissioner on the date the license was granted.
81	83		SECTION 5. Section 180.055(d), Finance Code, is amended to
82	84		read as follows:
83	85		(d) For purposes of Subsection (a)(3), an individual is
84	86		considered not to be financially responsible if the individual has
85	87		shown a lack of regard in managing the individual's own financial
86	88		affairs or condition. A determination that an individual has not
87	89		shown financial responsibility may not be based on the individual's
88	90		default on a student loan but may include:
89	91		(1) an outstanding judgment against the individual,
90	92		other than a judgment imposed solely as a result of medical
91	93		expenses;
92	94		(2) an outstanding tax lien or other governmental
93	95		liens and filings;
94	96		(3) a foreclosure during the three-year period
95	97		preceding the date of the license application; and
96	98		(4) a pattern of seriously delinquent accounts, other
97	99		than student loan accounts, during the three-year period preceding
98	100		the date of the application.
99	101		SECTION 6. Sections 466.155(a) and (g), Government Code,
100	102		are amended to read as follows:
101	103		(a) After a hearing, the director shall deny an application
102	104		for a license or the commission shall suspend or revoke a license if
103	105		the director or commission, as applicable, finds that the applicant
104	106		or sales agent:
105	107		(1) is an individual who:
106	108		(A) has been convicted of a felony, criminal
107	109		fraud, gambling or a gambling-related offense, or a misdemeanor
108	110		involving moral turpitude, if less than 10 years has elapsed since
109	111		the termination of the sentence, parole, mandatory supervision, or
110	112		probation served for the offense;
111	113		(B) is or has been a professional gambler;
112	114		(C) is married to an individual:
113	115		(i) described in Paragraph (A) or (B); or
114	116		(ii) who is currently delinquent in the
115	117		payment of any state tax;
116	118		(D) is an officer or employee of the commission
117	119		or a lottery operator; or
118	120		(E) is a spouse, child, brother, sister, or
119	121		parent residing as a member of the same household in the principal
120	122		place of residence of a person described by Paragraph (D);
121	123		(2) is not an individual, and an individual described
122	124		in Subdivision (1):
123	125		(A) is an officer or director of the applicant or
124	126		sales agent;
125	127		(B) holds more than 10 percent of the stock in the
126	128		applicant or sales agent;
127	129		(C) holds an equitable interest greater than 10
128	130		percent in the applicant or sales agent;
129	131		(D) is a creditor of the applicant or sales agent
130	132		who holds more than 10 percent of the applicant's or sales agent's
131	133		outstanding debt;
132	134		(E) is the owner or lessee of a business that the
133	135		applicant or sales agent conducts or through which the applicant
134	136		will conduct a ticket sales agency;
135	137		(F) shares or will share in the profits, other
136	138		than stock dividends, of the applicant or sales agent; or
137	139		(G) participates in managing the affairs of the
138	140		applicant or sales agent;
139	141		(3) has been finally determined to be[:
140	142		[(A)] delinquent in the payment of a tax or other
141	143		money collected by the comptroller, the Texas Workforce Commission,
142	144		or the Texas Alcoholic Beverage Commission;
143	145		[(B) in default on a loan made under Chapter 52,
144	146		Education Code; or
145	147		[(C) in default on a loan guaranteed under
146	148		Chapter 57, Education Code;]
147	149		(4) is a person whose location for the sales agency is:
148	150		(A) a location licensed for games of bingo under
149	151		Chapter 2001, Occupations Code;
150	152		(B) on land that is owned by:
151	153		(i) this state; or
152	154		(ii) a political subdivision of this state
153	155		and on which is located a public primary or secondary school, an
154	156		institution of higher education, or an agency of the state; or
155	157		(C) a location for which a person holds a wine and
156	158		beer retailer's permit, mixed beverage permit, mixed beverage late
157	159		hours permit, private club registration permit, or private club
158	160		late hours permit issued under Chapter 25, 28, 29, 32, or 33,
159	161		Alcoholic Beverage Code, other than a location for which a person
160	162		holds a wine and beer retailer's permit issued under Chapter 25,
161	163		Alcoholic Beverage Code, that derives less than 30 percent of the
162	164		location's gross receipts from the sale or service of alcoholic
163	165		beverages; or
164	166		(5) has violated this chapter or a rule adopted under
165	167		this chapter.
166	168		(g) For purposes of Subsection (a)(3), the comptroller,
167	169		Texas Workforce Commission, and Texas Alcoholic Beverage
168	170		Commission[, Texas Higher Education Coordinating Board, and Texas
169	171		Guaranteed Student Loan Corporation] shall each provide the
170	172		executive director with a report of persons who have been finally
171	173		determined to be delinquent in the payment of any money owed to or
172	174		collected by that agency. The commission shall adopt rules
173	175		regarding the form and frequency of reports under this subsection.
174	176		SECTION 7. The following laws are repealed:
175	177		(1) Section 57.491, Education Code;
176	178		(2) Section 82.022(c), Government Code;
177	179		(3) Section 154.110(e), Government Code; and
178	180		(4) Sections 56.001(1), 56.002, 56.004, 56.005, and
179	181		56.006, Occupations Code.
180	182		SECTION 8. A disciplinary action proceeding under Chapter
181	183		56, Occupations Code, that was initiated before the effective date
182	184		of this Act and that is pending on the effective date of this Act is
183	185		terminated on that date.
184	186		SECTION 9. This Act takes effect immediately if it receives
185	187		a vote of two-thirds of all the members elected to each house, as
186	188		provided by Section 39, Article III, Texas Constitution. If this
187	189		Act does not receive the vote necessary for immediate effect, this
188	190		Act takes effect September 1, 2019.
189		-	______________________________ ______________________________
190		-	President of the Senate Speaker of the House
191		-	I hereby certify that S.B. No. 37 passed the Senate on
192		-	April 16, 2019, by the following vote: Yeas 29, Nays 2.
193		-	______________________________
194		-	Secretary of the Senate
195		-	I hereby certify that S.B. No. 37 passed the House on
196		-	May 21, 2019, by the following vote: Yeas 146, Nays 0, one
197		-	present not voting.
198		-	______________________________
199		-	Chief Clerk of the House
200		-	Approved:
201		-	______________________________
202		-	Date
203		-	______________________________
204		-	Governor