CHAPTER 56. ACTION AGAINST RECIPIENTS OF STUDENT FINANCIAL ASSISTANCE - Texas Statutes

OCCUPATIONS CODE

TITLE 2. GENERAL PROVISIONS RELATING TO LICENSING

CHAPTER 56. ACTION AGAINST RECIPIENTS OF STUDENT FINANCIAL

ASSISTANCE

Sec. 56.001. DEFINITIONS. In this chapter:

(1) "Administering entity" means a governmental entity that

administers a student loan, student loan repayment, or

scholarship program.

(2) "License" means a license, certificate, registration,

permit, or other authorization that:

(A) is issued by a licensing authority; and

(B) a person must obtain to practice or engage in a particular

business, occupation, or profession.

(3) "Licensing authority" means a department, commission, board,

office, or other agency of the state that issues a license.

(4) "Scholarship contract" means an agreement by this state, an

agency 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 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, 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.

Added by Acts 2001, 77th Leg., ch. 512, Sec. 1, eff. June 11,

2001.

Sec. 56.002. APPLICABILITY. This chapter applies only to the

following licensing authorities:

(1) Texas Board of Chiropractic Examiners;

(2) State Board of Dental Examiners;

(3) Texas State Board of Podiatric Medical Examiners; and

(4) Texas State Board of Medical Examiners.

Added by Acts 2001, 77th Leg., ch. 512, Sec. 1, eff. June 11,

2001.

Sec. 56.003. AUTHORITY TO TAKE ACTION IN EVENT OF DEFAULT OR

BREACH. 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:

(1) deny the person's application for a license or license

renewal;

(2) suspend the person's license; or

(3) take other disciplinary action against the person.

Added by Acts 2001, 77th Leg., ch. 512, Sec. 1, eff. June 11,

2001.

Sec. 56.004. REBUTTABLE PRESUMPTION. A determination by 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 creates a rebuttable presumption

that the person has committed the default or breach.

Added by Acts 2001, 77th Leg., ch. 512, Sec. 1, eff. June 11,

2001.

Sec. 56.005. RESCISSION OF ACTION. A licensing authority may

rescind any action taken under Section 56.003 on the receipt of

information from an administering entity that the person against

whom the action was taken has:

(1) entered into an agreement with the administering entity to:

(A) repay the student loan;

(B) perform the service obligation; or

(C) pay any damages required by the student loan repayment

contract or scholarship contract; or

(2) taken other action resulting in the person no longer being

in default on the student loan or in breach of the student loan

repayment contract or scholarship contract.

Added by Acts 2001, 77th Leg., ch. 512, Sec. 1, eff. June 11,

2001.

Sec. 56.006. REINSTATEMENT OF ACTION. A licensing authority may

reinstate any action taken under Section 56.003 and may take

other disciplinary action on the receipt of information from an

administering entity that the person against whom the action was

taken has:

(1) defaulted on or breached an agreement under Section

56.005(1); or

(2) otherwise defaulted on the student loan or breached the

student loan repayment contract or scholarship contract.

Added by Acts 2001, 77th Leg., ch. 512, Sec. 1, eff. June 11,

2001.