HBA-EDN, JLV H.B. 1755 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1755
By: Gutierrez
Higher Education
7/19/2001
Enrolled


BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, medical professionals who defaulted on their
student loans were excluded from participating in Medicare and Medicaid,
but no other sanctions were levied against their practice.  These
individuals have received substantial economic benefit through student
loans, and some feel that they should be required to honor their
commitment.  House Bill 1755 authorizes a licensing authority to suspend or
deny the renewal of any state-issued license for a chiropractor, dentist,
podiatrist, or medical doctor who has been found to be delinquent in the
repayment of an educational loan or scholarship contract.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1755 amends the Occupations Code to authorize certain licensing
authorities, if they receive information that a person has defaulted on a
student loan or has breached a student loan repayment contract or
scholarship contract, to deny the person's application for license or
license renewal, suspend the person's license, or take other disciplinary
action against the person.  The bill applies to the Texas Board of
Chiropractic Examiners, the State Board of Dental Examiners, the Texas
State Board of Podiatric Medical Examiners, and the Texas State Board of
Medical Examiners. 

The bill authorizes a licensing authority to rescind any action taken on
the receipt of information from an administering entity that the person
against whom the action was taken has entered into an agreement with the
administering entity to either repay the student loan, perform the service
obligation, or pay any damages required by the student loan repayment
contract or scholarship contract, or that the person has 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. 

The bill authorizes a licensing authority to reinstate any action taken
under the bill and to take other disciplinary action on the receipt of
information from an administering entity that the person against whom the
action was taken has either defaulted on or breached an agreement or has
otherwise defaulted on the student loan or breached the student loan
repayment contract or scholarship contract. 

EFFECTIVE DATE

June 11, 2001.