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A BILL TO BE ENTITLED
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AN ACT
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relating to student loan forgiveness for certain public service |
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employees or interns. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 61, Education Code, is amended by adding |
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Subchapter OO to read as follows: |
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SUBCHAPTER OO. PUBLIC SERVICE STUDENT LOAN FORGIVENESS PROGRAM |
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Sec. 61.9971. LOAN FORGIVENESS AUTHORIZED. The board shall |
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provide, in accordance with this subchapter and board rules, loan |
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forgiveness of eligible student loans for eligible public service |
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employees. |
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Sec. 61.9972. ELIGIBILITY. To be eligible to receive loan |
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forgiveness under this subchapter, a person must: |
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(1) have earned a baccalaureate degree at a public or |
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private institution of higher education in this state; |
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(2) be employed or interning in this state with: |
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(A) a state agency or political subdivision of |
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the state; or |
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(B) an organization exempt from federal income |
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taxation under Section 501(a), Internal Revenue Code of 1986, by |
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being described as an exempt organization by Section 501(c)(3) of |
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that code; and |
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(3) comply with any other requirement adopted by the |
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board under this subchapter. |
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Sec. 61.9973. ELIGIBLE LOANS. The board may provide |
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forgiveness under this subchapter for the following amounts owed |
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for the cost of education at a public or private institution of |
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higher education: |
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(1) a loan made under Chapter 52; |
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(2) an amount owed in repayment of a scholarship |
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awarded under Subchapter FF; or |
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(3) a Texas B-On-time student loan made under former |
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Section 56.463. |
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Sec. 61.9974. AMOUNT OF FORGIVENESS; LIMITATIONS. (a) |
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Subject to Subsection (b), a person may receive loan forgiveness |
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under this subchapter for each year the person establishes |
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eligibility for the forgiveness in an amount not to exceed $5,000 |
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per year. |
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(b) A person may not receive loan forgiveness under this |
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subchapter for more than four years. |
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(c) The total amount of loan forgiveness provided under this |
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subchapter may not exceed $10 million for a state fiscal biennium. |
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(d) If in any state fiscal biennium the amount of money |
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available for loan forgiveness under this subchapter is |
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insufficient to provide loan forgiveness to all eligible persons |
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for that biennium, the board shall prioritize awarding loan |
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forgiveness to eligible persons who are employed or interning with |
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health-care providers or other entities affected by the coronavirus |
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disease (COVID-19) pandemic, as determined by the board. |
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Sec. 61.9975. GIFTS, GRANTS, AND DONATIONS. The board may |
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solicit and accept gifts, grants, and other donations from any |
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public or private source for the purpose of this subchapter. |
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Sec. 61.9976. REPORT. Not later than December 1 of each |
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year, the board shall submit to the governor, the lieutenant |
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governor, and the speaker of the house of representatives a report |
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on the loan forgiveness program under this subchapter. |
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Sec. 61.9977. RULES. (a) The board shall adopt rules |
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necessary to administer this subchapter, including rules: |
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(1) establishing guidelines for qualifying employment |
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and internships, including requiring at least 20 hours of work per |
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week; and |
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(2) making any necessary adjustments to the qualifying |
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loan programs to account for loan forgiveness under this |
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subchapter. |
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(b) In adopting rules, the board shall consult with the |
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governor's office, the Texas Workforce Commission, the Texas |
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Association of Counties, the Texas Association of School Boards, |
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the Texas Municipal League, and the Texas Conference of Urban |
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Counties. |
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SECTION 2. The Texas Higher Education Coordinating Board |
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shall begin awarding loan forgiveness under Subchapter OO, Chapter |
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61, Education Code, as added by this Act, to eligible persons |
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beginning January 1, 2022. |
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SECTION 3. Not later than December 1, 2022, the Texas Higher |
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Education Coordinating Board shall submit the initial report |
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required by Section 61.9976, Education Code, as added by this Act. |
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SECTION 4. This Act takes effect September 1, 2021. |