By:  Carter                                           H.B. No. 2299
       73R3826 SOS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the peace officer college loan program.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Chapter 415, Government Code, is amended by
    1-5  adding Subchapter G to read as follows:
    1-6           SUBCHAPTER G.  PEACE OFFICER COLLEGE LOAN PROGRAM
    1-7        Sec. 415.131.  DEFINITIONS.  In this subchapter:
    1-8              (1)  "Full assistance loan" means a loan for tuition,
    1-9  fees, and all education expenses for attendance at an institution
   1-10  of higher education.
   1-11              (2)  "Institution of higher education" has the meaning
   1-12  assigned by Section 61.003, Education Code.
   1-13              (3)  "Program" means the peace officer college loan
   1-14  program established under this subchapter.
   1-15              (4)  "Tuition assistance loan" means a loan for
   1-16  tuition, fees, books, and certain education expenses for attendance
   1-17  at an institution of higher education.
   1-18        Sec. 415.132.  ESTABLISHMENT; ADMINISTRATION.  (a)  The peace
   1-19  officer college loan program is established to provide assistance
   1-20  to peace officers and prospective peace officers who attend
   1-21  institutions of higher education.
   1-22        (b)  The commission shall administer the program and shall
   1-23  adopt rules relating to:
   1-24              (1)  retention requirements for full assistance or
    2-1  tuition assistance loan recipients;
    2-2              (2)  full assistance or tuition assistance loan
    2-3  cancellation provisions and procedures;
    2-4              (3)  license suspension for full assistance or tuition
    2-5  assistance loan defaults;
    2-6              (4)  the review of all pending full assistance and all
    2-7  pending tuition assistance loan applications not less often than
    2-8  twice a year;
    2-9              (5)  annual limits on amounts of and number of full
   2-10  assistance and tuition assistance loans;
   2-11              (6)  the allocation of full assistance and tuition
   2-12  assistance loans between peace officers and individuals who intend
   2-13  to become peace officers;
   2-14              (7)  reporting requirements for institutions of higher
   2-15  education that enroll full assistance or tuition assistance loan
   2-16  recipients; and
   2-17              (8)  the administration of this subchapter.
   2-18        (c)  The commission may contract with an insurance carrier
   2-19  licensed to do business in this state for insurance on the life of
   2-20  a recipient in an amount sufficient to repay a full assistance or
   2-21  tuition assistance loan under this subchapter.  If the commission
   2-22  enters into a contract under this subsection, each loan recipient
   2-23  shall pay a fee to offset the full cost of the life insurance.
   2-24        Sec. 415.133.  RECRUITMENT OF LOAN APPLICANTS.  (a)  The
   2-25  commission shall actively recruit full assistance and tuition
   2-26  assistance loan applicants who intend to enroll in an institution
   2-27  of higher education and to be peace officers.  For that purpose,
    3-1  the commission shall inform students and counselors of school
    3-2  districts and of institutions of higher education about the
    3-3  program.
    3-4        (b)  The commission shall focus recruiting efforts on
    3-5  students who, without a full assistance or tuition assistance loan
    3-6  from the program, would not otherwise begin or complete their
    3-7  college studies.
    3-8        Sec. 415.134.  ELIGIBILITY.  To be eligible for a full
    3-9  assistance or tuition assistance loan under this subchapter, an
   3-10  individual must:
   3-11              (1)  be a peace officer or intend to become a peace
   3-12  officer;
   3-13              (2)  be a Texas resident, as defined by Texas Higher
   3-14  Education Coordinating Board rule;
   3-15              (3)  complete and file with the commission, on a form
   3-16  prescribed by the commission, a full assistance or tuition
   3-17  assistance loan application;
   3-18              (4)  be accepted for admission to an institution of
   3-19  higher education;
   3-20              (5)  have not defaulted on a full assistance or tuition
   3-21  assistance loan under this subchapter; and
   3-22              (6)  have complied with any other requirements adopted
   3-23  by the commission under this subchapter.
   3-24        Sec. 415.135.  FULL ASSISTANCE LOANS.  (a)  Each academic
   3-25  year, the commission shall provide a full assistance loan in an
   3-26  amount determined by the commission to each eligible individual on
   3-27  receipt of the individual's full assistance loan application.
    4-1        (b)  The amount included in a full assistance loan provided
    4-2  under this section for reasonable living expenses to attend an
    4-3  institution of higher education may not exceed $2,000 each
    4-4  semester.
    4-5        (c)  Proceeds of a full assistance loan may be used only to
    4-6  pay:
    4-7              (1)  tuition or fees at an institution of higher
    4-8  education; or
    4-9              (2)  reasonable living expenses to attend an
   4-10  institution of higher education.
   4-11        Sec. 415.136.  TUITION ASSISTANCE LOANS.  (a)  Each academic
   4-12  year, the commission shall provide a tuition assistance loan in an
   4-13  amount determined by the commission to each eligible individual on
   4-14  receipt of the individual's tuition assistance loan application.
   4-15        (b)  Except as provided by Subsection (c), proceeds of a
   4-16  tuition assistance loan may be used only to pay for tuition, fees,
   4-17  books, or education expenses at an institution of higher education.
   4-18        (c)  Proceeds of a tuition assistance loan may not be used to
   4-19  pay living expenses.
   4-20        Sec. 415.137.  LIMITATION ON AMOUNT OF ALL LOANS.  The total
   4-21  amount of all full assistance and all tuition assistance loans for
   4-22  an academic year may not exceed the greater of:
   4-23              (1)  30 percent of the amount appropriated for that
   4-24  biennium for the program; or
   4-25              (2)  the unexpended and unobligated balance of the
   4-26  total amount appropriated for full assistance and tuition
   4-27  assistance loans computed on a date determined by commission rule.
    5-1        Sec. 415.138.  TERMS OF LOANS.  (a)  Each full assistance or
    5-2  tuition assistance loan must be evidenced by a promissory note that
    5-3  provides for the repayment of the loan with interest and for the
    5-4  charging of necessary collection costs.
    5-5        (b)  Except as provided by Section 415.141 or 415.142, a full
    5-6  assistance or tuition assistance loan must be repayable in equal
    5-7  monthly installments over a period beginning with the first day of
    5-8  the 12th month after the date on which the recipient ceases to be
    5-9  enrolled at an institution of higher education.
   5-10        (c)  A full assistance or tuition assistance loan must bear
   5-11  simple interest at a rate determined by the board, but not to
   5-12  exceed three percent plus the prime interest rate.
   5-13        (d)  The commission by rule shall determine the other terms
   5-14  of a full assistance or tuition assistance loan, including a grace
   5-15  period for repayment.
   5-16        Sec. 415.139.  GRADE REPORTS OF LOAN RECIPIENT.  (a)  A full
   5-17  assistance or tuition assistance loan recipient shall submit a copy
   5-18  of the recipient's grades at the institution of higher education in
   5-19  which the student is enrolled not later than the 45th day after the
   5-20  last day of a semester during which the student was enrolled at the
   5-21  institution.
   5-22        Sec. 415.140.  LOAN REPAYMENTS.  (a)  Full assistance or
   5-23  tuition assistance loan repayments must be made to the commission.
   5-24        (b)  The commission shall deposit repayments of principal or
   5-25  interest on a full assistance or tuition assistance loan under this
   5-26  subchapter to the law enforcement officer standards and education
   5-27  fund.
    6-1        Sec. 415.141.  LOAN SUSPENSION.  Interest on a recipient's
    6-2  full assistance or tuition assistance loan is suspended during any
    6-3  period during which the recipient is employed as a peace officer.
    6-4        Sec. 415.142.  LOAN FORGIVENESS.  (a)  A full assistance or
    6-5  tuition assistance loan recipient who, on the date on which the
    6-6  recipient applied for the loan, intended to become a peace officer
    6-7  is eligible for forgiveness of the repayment of accrued interest if
    6-8  the recipient:
    6-9              (1)  completes and files with the commission, on a form
   6-10  prescribed by the commission, an application for forgiveness of
   6-11  accrued interest; and
   6-12              (2)  has served as a peace officer for less than two
   6-13  years after the date on which the recipient ceases to be enrolled
   6-14  at an institution of higher education.
   6-15        (b)  A tuition assistance loan recipient is eligible for
   6-16  forgiveness of the repayment of principal and accrued interest if
   6-17  the recipient:
   6-18              (1)  completes and files with the commission, on a form
   6-19  prescribed by the commission, an application for forgiveness of
   6-20  principal and accrued interest; and
   6-21              (2)  has served as a peace officer for not less than
   6-22  two years after the date on which the recipient ceases to be
   6-23  enrolled at an institution of higher education.
   6-24        (c)  Except as provided by Subsection (d), the commission
   6-25  shall determine the amount of forgiveness under this section based
   6-26  on the number of complete years of service by the recipient as a
   6-27  peace officer and on other terms set by commission rule.
    7-1        (d)  The commission shall forgive the principal and interest
    7-2  of a tuition assistance loan of an eligible recipient for an amount
    7-3  not to exceed the amount of tuition charged for 15 semester hours
    7-4  of credit multiplied by the number of years of service by the
    7-5  recipient as a peace officer.
    7-6        (e)  If the commission forgives principal and accrued
    7-7  interest on a tuition assistance loan, the commission shall forgive
    7-8  the principal first and then the accrued interest.
    7-9        Sec. 415.143.  DEFAULT; ACCELERATION.  (a)  A full assistance
   7-10  or tuition assistance loan recipient is in default on the loan if
   7-11  the recipient fails to make a monthly payment on the loan.
   7-12        (b)  If a default has continued for five or more months, the
   7-13  commission shall accelerate the outstanding balance due on the
   7-14  loan.
   7-15        (c)  If interest on the loan has been suspended or forgiven
   7-16  on a loan whose outstanding balance has been accelerated, the
   7-17  suspension or forgiveness is void and the amount suspended or
   7-18  forgiven is due on the date of acceleration.
   7-19        Sec. 415.144.  REMEDIES.  (a)  If a full assistance or
   7-20  tuition assistance loan recipient whose loan has been accelerated
   7-21  has not paid the amounts due, the commission may refer the default
   7-22  to the attorney general for collection.
   7-23        (b)  The commission may institute an action in its own name
   7-24  to enforce this subchapter or to enjoin a violation of this
   7-25  subchapter or a rule adopted by the commission under this
   7-26  subchapter.
   7-27        (c)  An action under this section must be brought in a
    8-1  district court in Travis County.
    8-2        Sec. 415.145.  AUDIT; ANNUAL REPORT.  (a)  The transactions
    8-3  of the commission under this subchapter are subject to audit by the
    8-4  state auditor in accordance with Chapter 321.
    8-5        (b)  The commission shall report on the operations of the
    8-6  program to the governor annually and to the legislature not later
    8-7  than February 1 of each odd-numbered year.
    8-8        (c)  The report must include by fiscal year for the program
    8-9  and for each institution of higher education that enrolls full
   8-10  assistance or tuition assistance loan recipients:
   8-11              (1)  the number of full assistance or tuition
   8-12  assistance loans;
   8-13              (2)  the maximum and minimum full assistance or tuition
   8-14  assistance loan amounts;
   8-15              (3)  the total amount of outstanding full assistance or
   8-16  tuition assistance loan payments;
   8-17              (4)  the amount of principal and accrued interest
   8-18  forgiven;
   8-19              (5)  the law enforcement agencies that employ full
   8-20  assistance or tuition assistance loan recipients; and
   8-21              (6)  a list of full assistance or tuition assistance
   8-22  loan recipients that have defaulted on their loans, showing the
   8-23  loan balance due and the recipient's last known address.
   8-24        (d)  The report may include any other information the
   8-25  commission considers necessary to describe the effectiveness of the
   8-26  program.
   8-27        SECTION 2.  Section 415.084(c), Government Code, is amended
    9-1  to read as follows:
    9-2        (c)  Money remaining in the law enforcement officer standards
    9-3  and education fund at the end of the state fiscal year, except
    9-4  funds appropriated to the commission and loan repayments under
    9-5  Subchapter G, shall be transferred to the general revenue fund.
    9-6        SECTION 3.  Chapter 142, Local Government Code, is amended by
    9-7  adding Section 142.011 to read as follows:
    9-8        Sec. 142.011.  EDUCATIONAL LEAVE.  (a)  On written
    9-9  application by a peace officer, a municipality may grant the peace
   9-10  officer a leave of absence for the peace officer to enroll in a
   9-11  college on a full-time basis to pursue an educational study plan
   9-12  related to law enforcement or public safety.
   9-13        (b)  A municipality may not adopt a policy that denies
   9-14  employee benefits, including health and life insurance plans,
   9-15  promotional seniority, and accumulation of retirement credit, to a
   9-16  peace officer on leave as provided by Subsection (a) if the peace
   9-17  officer pays both the peace officer's and the municipality's share
   9-18  of the cost of the benefits.
   9-19        SECTION 4.  Section 23.101(a), Government Code, is amended to
   9-20  read as follows:
   9-21        (a)  The trial courts of this state shall regularly and
   9-22  frequently set hearings and trials of pending matters, giving
   9-23  preference to hearings and trials of the following:
   9-24              (1)  temporary injunctions;
   9-25              (2)  criminal actions, with criminal actions against
   9-26  defendants who are detained in jail pending trial given preference
   9-27  over other criminal actions;
   10-1              (3)  election contests and suits under the Election
   10-2  Code;
   10-3              (4)  orders for the protection of the family under
   10-4  Section 3.581, 71.11, or 71.12, Family Code;
   10-5              (5)  appeals of final rulings and decisions of the
   10-6  Texas Workers' Compensation Commission and claims under the Federal
   10-7  Employers' Liability Act  and the Jones Act;
   10-8              (6)  suits for declaratory judgment under Section
   10-9  89.085, Natural Resources Code; <and>
  10-10              (7)  appeals of final orders of the commissioner of the
  10-11  General Land Office under Section 51.3021, Natural Resources Code;
  10-12  and
  10-13              (8)  actions under Subchapter G, Chapter 415.
  10-14        SECTION 5.  (a)  The Commission on Law Enforcement Officer
  10-15  Standards and Education shall adopt initial rules required by
  10-16  Subchapter G, Chapter 415, Government Code, as added by this Act,
  10-17  not later than January 1, 1995.
  10-18        (b)  The Commission on Law Enforcement Officer Standards and
  10-19  Education shall make full assistance and tuition assistance loans
  10-20  to eligible students under Subchapter G, Chapter 415, Government
  10-21  Code, as added by this Act, not later than the beginning of the
  10-22  fall semester in 1996.
  10-23        SECTION 6.  This Act takes effect September 1, 1994.
  10-24        SECTION 7.  The importance of this legislation and the
  10-25  crowded condition of the calendars in both houses create an
  10-26  emergency and an imperative public necessity that the
  10-27  constitutional rule requiring bills to be read on three several
   11-1  days in each house be suspended, and this rule is hereby suspended.