73R7425 SOS-F
By Delco H.B. No. 166
Substitute the following for H.B. No. 166:
By Delco C.S.H.B. No. 166
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to establishing a minority doctoral incentive program.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 56, Education Code, is amended by adding
1-5 Subchapter J to read as follows:
1-6 SUBCHAPTER J. MINORITY DOCTORAL INCENTIVE PROGRAM
1-7 Sec. 56.161. DEFINITIONS. In this subchapter:
1-8 (1) "Academic administrator" means a person employed
1-9 by an institution as a supervisor in an educational department of
1-10 the institution in a position that is not classified under the
1-11 state position classification plan.
1-12 (2) "Board" means the Texas Higher Education
1-13 Coordinating Board.
1-14 (3) "Faculty member" has the meaning assigned by
1-15 Section 51.101 of this code.
1-16 (4) "Institution" means an institution of higher
1-17 education, as defined by Section 61.003 of this code, or a private
1-18 college or university that is located in this state and is
1-19 accredited by a recognized accrediting agency, as defined by
1-20 Section 61.003 of this code.
1-21 (5) "Minority" means a group that is significantly
1-22 underrepresented in an academic discipline, as determined by board
1-23 rule.
1-24 (6) "Program" means the minority doctoral incentive
2-1 program established under this subchapter.
2-2 Sec. 56.162. ESTABLISHMENT; ADMINISTRATION. (a) The board
2-3 shall establish and administer the minority doctoral incentive
2-4 program to:
2-5 (1) provide loans to minority students who pursue
2-6 doctorates or pursue master's degrees and commit to pursue a
2-7 doctorate; and
2-8 (2) increase minority representation among the faculty
2-9 and administration of institutions.
2-10 (b) The board shall adopt and distribute to the governing
2-11 board of each institution copies of all rules adopted under this
2-12 subchapter.
2-13 Sec. 56.163. ELIGIBILITY. (a) To be eligible for a loan
2-14 under this subchapter, a person must:
2-15 (1) be accepted for admission to an institution as a
2-16 full-time graduate student in a doctoral program approved by the
2-17 board or be accepted for admission to an institution as a full-time
2-18 graduate student in a master's program approved by the board and
2-19 demonstrate a commitment to pursue a doctoral program approved by
2-20 the board;
2-21 (2) be sponsored by a faculty member of the program in
2-22 which the person is enrolled;
2-23 (3) be nominated by the institution in which the
2-24 person is enrolled based on academic achievement, career interest,
2-25 and other factors the institution considers relevant;
2-26 (4) have not defaulted on another student loan; and
2-27 (5) have complied with any other requirements adopted
3-1 by the board under this subchapter.
3-2 (b) The board shall adopt eligibility requirements under
3-3 Subsection (a)(5) of this section to ensure that Texas residents,
3-4 as defined by board rule, are first given the opportunity to
3-5 receive loans under this subchapter.
3-6 Sec. 56.164. TUITION CHARGED NONRESIDENT LOAN RECIPIENTS.
3-7 An institution that enrolls a loan recipient who is not a Texas
3-8 resident, as defined by board rule, may charge the recipient only
3-9 the tuition required for resident students under Subchapter B,
3-10 Chapter 54, of this code.
3-11 Sec. 56.165. LOAN DISBURSEMENT. (a) If an eligible student
3-12 applies for a loan from a lending institution, the board shall
3-13 provide the institution a conditional guaranty of the loan, in
3-14 accordance with Section 56.170 of this code, on the board's receipt
3-15 of:
3-16 (1) the student's application to the board for a
3-17 conditional guaranty;
3-18 (2) a verification of the student's enrollment from
3-19 the institution enrolling the student;
3-20 (3) a certification from the institution enrolling the
3-21 student of the amount of tuition and fees for the student; and
3-22 (4) a certification from the lending institution that
3-23 the terms of the loan conform with the requirements of Section
3-24 56.166 of this code, including requirements adopted by the board
3-25 under that section, and that the lending institution agrees to
3-26 suspend interest on the student's loan as provided by Sections
3-27 56.168 and 56.169 of this code.
4-1 (b) If an eligible student applies for a loan from the
4-2 board, the board shall provide a loan in an amount determined by
4-3 the board to the student on the board's receipt of:
4-4 (1) the student's application to the board for a loan;
4-5 (2) a verification of the student's enrollment from
4-6 the institution enrolling the student; and
4-7 (3) a certification from the institution enrolling the
4-8 student of the amount of tuition and fees for the student.
4-9 Sec. 56.166. TERMS OF LOAN. (a) A loan must be evidenced
4-10 by a promissory note that provides for the repayment of the loan
4-11 with interest and for the charging of necessary collection costs.
4-12 (b) Except as provided by Sections 56.168 and 56.169 of this
4-13 code, a loan must be repayable, at the option of the board, in
4-14 equal monthly installments over a period beginning with the first
4-15 day of the seventh month after the date on which the recipient
4-16 ceases to be enrolled in a graduate program at an institution.
4-17 (c) A loan must bear simple interest at a rate determined by
4-18 the board.
4-19 (d) A loan provided under this subchapter may not exceed
4-20 $14,000 each year for a maximum of four years.
4-21 (e) The board shall determine the other terms of a loan.
4-22 Sec. 56.167. MENTORS. The institution at which a student
4-23 who receives a loan is enrolled shall provide the student with a
4-24 mentor who is a faculty member at the institution to assist the
4-25 student in pursuing a master's or doctoral degree.
4-26 Sec. 56.168. POSTDOCTORAL FELLOWSHIP. (a) A loan recipient
4-27 is eligible for suspension of the recipient's loan if the recipient
5-1 enters a postdoctoral fellowship not later than the first day of
5-2 the seventh month after the date on which the recipient ceases to
5-3 be enrolled in a doctoral program at an institution.
5-4 (b) The board shall suspend the accrual of interest and the
5-5 repayment of principal and interest on an eligible recipient's loan
5-6 until a date determined by board rule.
5-7 Sec. 56.169. LOAN SUSPENSION AND FORGIVENESS. (a) A loan
5-8 recipient is eligible for suspension and forgiveness of the
5-9 recipient's loan if, after the recipient obtains a doctorate, the
5-10 recipient is employed as a full-time faculty member or academic
5-11 administrator at an institution.
5-12 (b) In accordance with Subsections (c), (d), and (e) of this
5-13 section, the board shall suspend the accrual of interest and
5-14 forgive the repayment of a loan made to an eligible recipient.
5-15 (c) The board shall suspend the accrual of interest and the
5-16 repayment of principal and interest on an eligible recipient's loan
5-17 until the recipient is not employed as a full-time faculty member
5-18 or academic administrator at an institution.
5-19 (d) The board shall forgive the repayment of 20 percent of
5-20 the unpaid principal balance and all accrued interest of an
5-21 eligible recipient's loan for each academic year of service by the
5-22 recipient as a full-time faculty member or academic administrator
5-23 at an institution.
5-24 (e) A loan to an eligible recipient is repayable under the
5-25 terms of Section 56.166 of this code beginning with the first day
5-26 of the seventh month after the date on which the recipient
5-27 discontinues full-time study and is not employed as a full-time
6-1 faculty member or academic administrator at an institution and must
6-2 be repaid in full not later than the 10th anniversary of the date
6-3 on which the loan becomes repayable.
6-4 Sec. 56.170. CONDITIONAL GUARANTY. A conditional guaranty
6-5 of a loan under Section 56.165(a) of this code must provide that
6-6 the board shall repay the lending institution to which the guaranty
6-7 is executed the amount of the loan that the board would be required
6-8 to forgive under Section 56.169 of this code if the loan had been
6-9 made by the board.
6-10 Sec. 56.171. FUNDING. (a) The board may accept gifts and
6-11 grants from a public or private source for the program.
6-12 (b) Gifts, grants, and other funds appropriated by the
6-13 legislature may be used for the program.
6-14 SECTION 2. (a) The Texas Higher Education Coordinating
6-15 Board shall adopt and distribute initial rules required by
6-16 Subchapter J, Chapter 56, Education Code, as added by this Act, not
6-17 later than January 1, 1994.
6-18 (b) The coordinating board shall make loans to eligible
6-19 students under Subchapter J, Chapter 56, Education Code, as added
6-20 by this Act, for use beginning with the fall semester in 1994.
6-21 SECTION 3. The importance of this legislation and the
6-22 crowded condition of the calendars in both houses create an
6-23 emergency and an imperative public necessity that the
6-24 constitutional rule requiring bills to be read on three several
6-25 days in each house be suspended, and this rule is hereby suspended,
6-26 and that this Act take effect and be in force from and after its
6-27 passage, and it is so enacted.