86(R) SB 37 - Enrolled version - Bill Text

	S.B.  No.  37

	AN ACT
	relating to a prohibition on the use of student loan default or
	breach of a student loan repayment or scholarship contract as a
	ground for refusal to grant or renew an occupational license or
	other disciplinary action in relation to an occupational license.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION  1.    The heading to Chapter 56, Occupations Code, is
	amended to read as follows:
	CHAPTER 56. DISCIPLINARY ACTION AGAINST RECIPIENTS OF STUDENT
	FINANCIAL ASSISTANCE PROHIBITED
	SECTION  2.    Sections 56.001(3), (4), (5), and (6),
	Occupations Code, are amended to read as follows:
	(3)    "Licensing authority" means a department,
	commission, board, office, or other agency of the state or of a
	political subdivision of the state that issues a license.
	(4)    "Scholarship contract" means an agreement by this
	state, an agency of this state, a political subdivision of this
	state, or the United States to make a grant to a person to support
	the person while attending a public or private institution of
	higher education or other postsecondary educational establishment
	in exchange for the person's agreement to perform a service
	obligation.
	(5)    "Student loan" means a loan made to a person by a
	public or private entity to support the person while attending a
	public or private institution of higher education or other
	postsecondary educational establishment [that is:
	[(A)     owed to this state, an agency of this state,
	or the United States; or
	[(B)     guaranteed by this state, an agency of this
	state, or the United States].
	(6)    "Student loan repayment contract" means an
	agreement by this state, an agency of this state, a political
	subdivision of this state, or the United States to repay all or part
	of a person's student loan in exchange for the person's agreement to
	perform a service obligation.
	SECTION  3.    Section 56.003, Occupations Code, is amended to
	read as follows:
	Sec.  56.003.    DISCIPLINARY [AUTHORITY TO TAKE] ACTION IN
	EVENT OF DEFAULT OR BREACH PROHIBITED. A [On receipt of information
	from an administering entity that a person has defaulted on a
	student loan or has breached a student loan repayment contract or
	scholarship contract by failing to perform the person's service
	obligation under the contract, a] licensing authority may not take
	disciplinary action against a person based on the person's default
	on a student loan or breach of a student loan repayment contract or
	scholarship contract, including by:
	(1)    denying [deny] the person's application for a
	license or license renewal;
	(2)    suspending [suspend] the person's license; or
	(3)    taking [take] other disciplinary action against
	the person.
	SECTION  4.    Sections 157.015(f) and (g), Finance Code, are
	amended to read as follows:
	(f)    The commissioner may deny the renewal application for a
	residential mortgage loan originator license for the same reasons
	and grounds on which the commissioner could have denied an original
	application for a license, other than on the basis of the person's
	default on a student loan.
	(g)    The commissioner may deny the renewal application for a
	residential mortgage loan originator license if:
	(1)    the person seeking the renewal of the residential
	mortgage loan originator license is in violation of this chapter,
	Chapter 156, or Chapter 180, an applicable rule adopted under this
	chapter, Chapter 156, or Chapter 180, or any order previously
	issued to the person by the commissioner;
	(2)    the person seeking renewal of the residential
	mortgage loan originator license is in default in the payment of any
	administrative penalty, fee, charge, or other indebtedness owed
	under this title; or
	(3)    [the person seeking the renewal of the residential
	mortgage loan originator license is in default on a student loan
	administered by the Texas Guaranteed Student Loan Corporation,
	under Section 57.491, Education Code; or
	[(4)]    during the current term of the license, the
	commissioner becomes aware of any fact  that would have been grounds
	for denial of an original license if the fact had been known by the
	commissioner on the date the license was granted.
	SECTION  5.    Section 180.055(d), Finance Code, is amended to
	read as follows:
	(d)    For purposes of Subsection (a)(3), an individual is
	considered not to be financially responsible if the individual has
	shown a lack of regard in managing the individual's own financial
	affairs or condition.  A determination that an individual has not
	shown financial responsibility may not be based on the individual