OCCUPATIONS CODE

CHAPTER 56. ACTION AGAINST RECIPIENTS OF STUDENT FINANCIAL 
ASSISTANCE


	§ 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, § 1, eff. June 11, 2001.           


	§ 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, § 1, eff. June 11, 2001.           


	§ 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, § 1, eff. June 11, 2001.           


	§ 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, § 1, eff. June 11, 2001.           


	§ 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, § 1, eff. June 11, 2001.           


	§ 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, § 1, eff. June 11, 2001.