By: Delco H.B. No. 166 73R1646 SOS-D 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 provide loans to minority students who pursue doctorates 2-5 and to increase minority representation among the faculty and 2-6 administration of institutions. 2-7 (b) The board shall adopt and distribute to the governing 2-8 board of each institution copies of all rules adopted under this 2-9 subchapter. 2-10 Sec. 56.163. ELIGIBILITY. (a) To be eligible for a loan 2-11 under this subchapter, a person must: 2-12 (1) complete and file with the board, on a form 2-13 prescribed by the board, a loan application; 2-14 (2) be accepted for admission to an institution as a 2-15 full-time graduate student in a doctoral program approved by the 2-16 board; 2-17 (3) be sponsored by a faculty member of the doctoral 2-18 program in which the person is enrolled; 2-19 (4) be nominated by the institution in which the 2-20 person is enrolled based on academic achievement, career interest, 2-21 and other factors the institution considers relevant; 2-22 (5) have not defaulted on another student loan; and 2-23 (6) have complied with any other requirements adopted 2-24 by the board under this subchapter. 2-25 (b) The board shall adopt eligibility requirements under 2-26 Subsection (a)(6) of this section to ensure that Texas residents, 2-27 as defined by board rule, are first given the opportunity to 3-1 receive loans under this subchapter. 3-2 Sec. 56.164. TUITION CHARGED NONRESIDENT LOAN RECIPIENTS. 3-3 An institution that enrolls a loan recipient who is not a Texas 3-4 resident, as defined by board rule, may charge the recipient only 3-5 the tuition required for resident students under Subchapter B, 3-6 Chapter 54, of this code. 3-7 Sec. 56.165. LOAN DISBURSEMENT. (a) Each academic year the 3-8 board shall provide a loan in an amount determined by the board to 3-9 each eligible student on receipt of the student's application, 3-10 verification of enrollment from the institution enrolling the 3-11 student, and certification from the institution of the amount of 3-12 tuition and fees for the student. 3-13 (b) A loan provided under this subchapter may not exceed 3-14 $14,000 each year for a maximum of four years. 3-15 Sec. 56.166. TERMS OF LOAN. (a) A loan must be evidenced 3-16 by a promissory note that provides for the repayment of the loan 3-17 with interest and for the charging of necessary collection costs. 3-18 (b) Except as provided by Sections 56.168 and 56.169 of this 3-19 code, a loan must be repayable, at the option of the board, in 3-20 equal monthly installments over a period beginning with the first 3-21 day of the 12th month after the date on which the recipient ceases 3-22 to be enrolled in a doctoral program at an institution. 3-23 (c) A loan must bear simple interest at a rate determined by 3-24 the board. 3-25 (d) The board shall determine the other terms of a loan. 3-26 Sec. 56.167. MENTORS. The institution at which a student 3-27 who receives a loan is enrolled shall provide the student with a 4-1 mentor who is a faculty member at the institution to assist the 4-2 student in pursuing a doctoral degree. 4-3 Sec. 56.168. POSTDOCTORAL FELLOWSHIP. (a) A loan recipient 4-4 is eligible for suspension of the recipient's loan if the recipient 4-5 enters a postdoctoral fellowship not later than the first day of 4-6 the 12th month after the date on which the recipient ceases to be 4-7 enrolled in a doctoral program at an institution. 4-8 (b) The board shall suspend the accrual of interest and the 4-9 repayment of principal and interest on an eligible recipient's loan 4-10 until a date determined by board rule. 4-11 Sec. 56.169. LOAN FORGIVENESS. (a) A loan recipient is 4-12 eligible for forgiveness of the recipient's loan if, after the 4-13 recipient obtains a doctorate, the recipient is employed as a 4-14 full-time faculty member or academic administrator at an 4-15 institution. 4-16 (b) In accordance with Subsections (c) and (d) of this 4-17 section, the board shall forgive the repayment of a loan made to an 4-18 eligible recipient. 4-19 (c) The board shall forgive the repayment of 20 percent of 4-20 the unpaid principal balance and all accrued interest of an 4-21 eligible recipient's loan for each academic year of service by the 4-22 recipient as a full-time faculty member or academic administrator 4-23 at an institution. 4-24 (d) A loan to an eligible recipient is repayable under the 4-25 terms of Section 56.166 of this code beginning with the first 4-26 anniversary of the date on which the recipient discontinues 4-27 full-time study and is not employed as a full-time faculty member 5-1 or academic administrator at an institution. The balance of the 5-2 loan is due and payable not later than the first day of the 15th 5-3 year after the date of the first anniversary. 5-4 Sec. 56.170. FUNDING. (a) The board may accept gifts and 5-5 grants from a public or private source for the program. 5-6 (b) Loans issued under this subchapter are payable from 5-7 gifts, grants, and other funds appropriated by the legislature. 5-8 SECTION 2. (a) The Texas Higher Education Coordinating 5-9 Board shall adopt and distribute initial rules required by 5-10 Subchapter J, Chapter 56, Education Code, as added by this Act, not 5-11 later than January 1, 1994. 5-12 (b) The coordinating board shall make loans to eligible 5-13 students under Subchapter J, Chapter 56, Education Code, as added 5-14 by this Act, for use beginning with the fall semester in 1994. 5-15 SECTION 3. The importance of this legislation and the 5-16 crowded condition of the calendars in both houses create an 5-17 emergency and an imperative public necessity that the 5-18 constitutional rule requiring bills to be read on three several 5-19 days in each house be suspended, and this rule is hereby suspended, 5-20 and that this Act take effect and be in force from and after its 5-21 passage, and it is so enacted.