CHAPTER 56. ACTION AGAINST RECIPIENTS OF STUDENT FINANCIAL ASSISTANCE
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.