HB 1161 -- REVOCATION OF PROFESSIONAL LICENSES

SPONSOR:  Hosmer

COMMITTEE ACTION:  Voted "do pass" by the Committee on Higher
Education by a vote of 19 to 0.

This bill provides for the revocation, suspension, nonrenewal,
or nonissuance of professional licenses of those in default on
the repayment of any student loan guaranteed or administered by
the Department of Higher Education.  In its main provisions, the
bill:

(1)  Requires the Department of Higher Education to provide the
names of those individuals in default on the repayment of
student loans, who have not made satisfactory repayment
arrangements, to the Director of the Division of Professional
Registration, the State Board of Education, the Clerk of the
Supreme Court, and the Director of the Department of Insurance;

(2)  Requires the Department of Higher Education to establish a
procedure for determining when a person has made satisfactory
arrangements to ensure repayment of a student loan in default;
appeal procedures for persons aggrieved by decisions made by the
department are provided;

(3)  Authorizes the Department of Higher Education to garnish
any state payment, including income tax refunds and lottery
winnings, to persons in default on student loans administered by
the department;

(4)  Authorizes the following actions in cases where individuals
have defaulted on their student loan(s) and have not made
satisfactory arrangements to ensure repayment:

(a)  Licenses to teach will not be issued or renewed, and will
be suspended or revoked by the State Board of Education;

(b)  Licenses for insurance agents and brokers will not be
issued or renewed by the Department of Insurance;

(c)  Licenses for those regulated by boards and commissions
within the Division of Professional Registration will not be
issued or renewed;

(d)  Persons will not be allowed to take the bar exam and will
not be admitted to the Missouri Bar; attorneys will not be
allowed to renew their annual license fee;

(5)  Prohibits adverse licensing actions in cases in which an
individual has defaulted on a student loan and has not made
satisfactory arrangements to ensure repayment, but the most
recent notice from the Department of Higher Education indicates
that satisfactory arrangements to ensure repayment have been
made;

(6)  Specifies that attorneys who in bad faith avoid the
repayment of any student loan have engaged in professional
misconduct and may be removed or suspended from practice; if a
student loan is discharged by a bankruptcy proceeding, an
attorney's behavior may be reviewed to determine if it
constitutes bad faith; and

(7)  Requires the Division of Professional Registration to
maintain a registry of licensees in which the student loan
repayment status of each licensee is indicated.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill helps insure that a
loan contract is enforced and helps guarantee access to
financial resources for those who are serious about attending
college.

Testifying for the bill were Representative Hosmer; and
Associated Students of the University of Missouri.

OPPONENTS:  Debra Cheshier, Senior Legislative Analyst

HB 1161 -- Revocation of Professional Licenses

Sponsor:  Hosmer

This bill provides for the revocation, suspension, nonrenewal,
or nonissuance of professional licenses of those in default on
the repayment of any student loan guaranteed or administered by
the Department of Higher Education.  In its main provisions, the
bill:

(1)  Requires the Department of Higher Education to provide the
names of those individuals in default on the repayment of
student loans, who have not made satisfactory repayment
arrangements, to the Director of the Division of Professional
Registration, the State Board of Education, the Clerk of the
Supreme Court, and the Director of the Department of Insurance;

(2)  Requires the Department of Higher Education to establish a
procedure for determining when a person has made satisfactory
arrangements to ensure repayment of a student loan in default;
appeal procedures for persons aggrieved by decisions made by the
department are provided;

(3)  Authorizes the Department of Higher Education to garnish
any state payment, including income tax refunds and lottery
winnings, to persons in default on student loans administered by
the department;

(4)  Authorizes the following actions in cases where individuals
have defaulted on their student loan(s) and have not made
satisfactory arrangements to ensure repayment:

(a)  Licenses to teach will not be issued or renewed, and will
be suspended or revoked by the State Board of Education;

(b)  Licenses for insurance agents and brokers will not be
issued or renewed by the Department of Insurance;

(c)  Licenses for those regulated by boards and commissions
within the Division of Professional Registration will not be
issued or renewed;

(d)  Persons will not be allowed to take the bar exam and will
not be admitted to the Missouri Bar; attorneys will not be
allowed to renew their annual license fee;

(5)  Prohibits adverse licensing actions in cases in which an
individual has defaulted on a student loan and has not made
satisfactory arrangements to ensure repayment, but the most
recent notice from the Department of Higher Education indicates
that satisfactory arrangements to ensure repayment have been
made;

(6)  Specifies that attorneys who in bad faith avoid the
repayment of any student loan have engaged in professional
misconduct and may be removed or suspended from practice; if a
student loan is discharged by a bankruptcy proceeding, an
attorney's behavior may be reviewed to determine if it
constitutes bad faith; and

(7)  Requires the Division of Professional Registration to
maintain a registry of licensees in which the student loan
repayment status of each licensee is indicated.