TITLE 22.EXAMINING BOARDS

Part 10. TEXAS FUNERAL SERVICE COMMISSION

Chapter 206. GUARANTEED STUDENT LOANS

22 TAC §206.1

The Texas Funeral Service Commission (commission) proposes new §206.1, concerning Default and Repayment Agreements.

The new section is proposed to comply with the requirements of Education Code, §57.491 which directs all regulatory agencies to adopt rules on this subject.

The new section describes instances when the commission will and will not issue new licenses or renew outstanding licenses when a licensee or applicant is in default on a guaranteed student loan or a repayment agreement.

O.C. "Chet" Robbins, Executive Director has determined that for the first five-year period the new section is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed section.

Mr. Robbins has also determined that for each year of the first five-year period the new section is in effect, the public benefit anticipated as a result of enforcing the section will be eliminating redundancy. There will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with this section will be no more nor less than the costs to the individuals before this new section becomes effective and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capitol Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The new section is proposed under the authority of the Texas Occupations Code, §651.152 which authorizes the commission to issue such rules and regulations as may be necessary to administer Chapter 651. The new section is also proposed under Education Code, §57.491 which directs all regulatory agencies to adopt rules on this subject.

No other statutes, articles, or codes are affected by the new section.

§206.1.Default and Repayment Agreements.

Applicability of Education Code. All individual license renewals are subject to Texas Education Code, §57.491 relating to defaults on guaranteed student loans and repayment agreements.

(1) The commission may issue an initial license to a person who is in default on a guaranteed student loan but shall not renew the license, unless the applicant furnishes a certification from the Texas Guaranteed Student Loan Corporation that the licensee has entered into a repayment plan on the loan or that the licensee is no longer in default on the loan.

(2) The commission shall not renew the license of a person who is in default on a guaranteed student loan, unless the renewal is the first renewal following the commission's receipt of notice of the licensee's default or the licensee has furnished the certification described in paragraph (1) of this section.

(3) The commission shall not renew the license of a person who defaults on a repayment agreement on a defaulted loan, unless the commission receives a certification that the licensee has entered into another repayment agreement or that the licensee is no longer in default.

(4) The commission shall give the licensee an opportunity for hearing before taking action concerning the non-renewal of a license for default on a guaranteed student loan or a repayment agreement.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 20, 2005.

TRD-200502956

O.C. "Chet" Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: September 4, 2005

For further information, please call: (512) 936-2466