SB 0848 Allows refusal, suspension or revocation of certain professional licenses due to student loan defaults
LR Number:3416S.01I Fiscal Note:3416-01
Committee:Financial and Governmental Organization
Last Action:03/04/02 - Hearing Conducted S Financial & Governmental Journal page:
Effective Date:multiple effective dates
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Current Bill Summary

SB 848 - This act allows refusal, suspension, or revocation of certain professional licenses due to student loan default.

Currently the Missouri State Board of Education may refuse, suspend, or revoke a teaching certification for certain reasons. This act allows the Board to do so upon proof that a person is in default on the repayment of a student loan guaranteed by the Department of Higher Education if the person has not made arrangements to repay. The Board may not refuse, suspend, or revoke based only on a failure to make satisfactory arrangements (Section 168.071).

A new section is created to require the Department of Higher Education to provide notice of any person in default on school loans. Notice must be given to certain departments within sixty days of determination. Sixty days after passage of this act, the Department must provide names of those currently in default to all such departments. The Department must also, however, provide the names of those who have made arrangements to repay. The Department must create a procedure for determination of default by rule and may garnish state payments to persons in default (Section 173.117).

Another new section prohibits the issuance of a license required by Chapter 375, RMSo, to any person in default who has not made satisfactory arrangements to repay. A license may not be refused if a person has made satisfactory arrangements (Section 375.091).

Current law lists reasons the Director of the Department of Insurance may revoke, refuse, or suspend an insurance producer license. This act allows the Director to refuse to issue or renew the license of an insurance agent or broker if that person is in default and has not made arrangements to repay. Refusal will not be allowed if such arrangements are made (Section 375.141).

The law currently outlines reasons an attorney may be removed or suspended from practice. New language adds bad faith avoidance of repayment of a loan as a reason (Section 484.190).

A new section is created to prohibit the Board of Law Examiners from allowing a person to take the Bar exam, admit a person to the Bar, or accept enrollment fees from a person if he or she is in default, unless proof of satisfactory arrangement is shown. It will be considered professional misconduct for a person to avoid repayment of a loan in bad faith if such loan is guaranteed by Higher Education. The discharge of a loan due to bankruptcy will not be considered bad faith (Section 484.280 ).

A new section requires the Director of the Division of Professional Registration to notify its boards and commissions of members who are in default, unless satisfactory arrangements have been made. The Director must maintain indicators of loan status in the Division's registry. Boards and Commissions are prohibited from renewing or granting licenses to those persons in default, unless satisfactory arrangements have been made (Section 620.143).

This act is identical to HB 1071 (2002).