HB0390 Hosmer, Craig Scheve, May et al

P R E F I L E D

HB 390 -- Revocation of Professional Licenses

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

(1) Requires the Department of Higher Education to provide the names of individuals in default on the repayment of any student loan 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 board 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.