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.