HBA-EDN, JLV H.B. 1755 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1755 By: Gutierrez Higher Education 3/5/2001 Introduced BACKGROUND AND PURPOSE Medical professionals who default on their student loans are excluded from participating in Medicare and Medicaid, but no other sanctions are levied against their practice. These individuals have received substantial economic benefit through student loans, and some feel that such individuals 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 licensing authorities to which the bill applies are 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 provides that if an administering entity determines that a person has defaulted on a student loan or has breached a student loan repayment contract or scholarship contract, then it creates a rebuttable presumption that the person has committed the default or breach. 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 these provisions and is authorized 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 On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.