By: Truan, Zaffirini S.B. No. 233
A BILL TO BE ENTITLED
AN ACT
1-1 relating to establishing a minority doctoral incentive program.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Chapter 56, Education Code, is amended by adding
1-4 Subchapter J to read as follows:
1-5 SUBCHAPTER J. MINORITY DOCTORAL INCENTIVE PROGRAM
1-6 Sec. 56.161. DEFINITIONS. In this subchapter:
1-7 (1) "Academic administrator" means a person employed
1-8 by an institution as a supervisor in an educational department of
1-9 the institution in a position that is not classified under the
1-10 state position classification plan.
1-11 (2) "Board" means the Texas Higher Education
1-12 Coordinating Board.
1-13 (3) "Faculty member" has the meaning assigned by
1-14 Section 51.101 of this code.
1-15 (4) "Institution" means an institution of higher
1-16 education, as defined by Section 61.003 of this code, or a private
1-17 college or university that is located in this state and is
1-18 accredited by a recognized accrediting agency, as defined by
1-19 Section 61.003 of this code.
1-20 (5) "Minority" means a group that is significantly
1-21 underrepresented in an academic discipline, as determined by board
1-22 rule.
1-23 (6) "Program" means the minority doctoral incentive
1-24 program established under this subchapter.
2-1 Sec. 56.162. ESTABLISHMENT; ADMINISTRATION. (a) The board
2-2 shall establish and administer the minority doctoral incentive
2-3 program to:
2-4 (1) provide loans to minority students who pursue
2-5 doctorates or pursue master's degrees and commit to pursue a
2-6 doctorate; and
2-7 (2) increase minority representation among the faculty
2-8 and administration of institutions.
2-9 (b) The board shall adopt and distribute to the governing
2-10 board of each institution copies of all rules adopted under this
2-11 subchapter.
2-12 Sec. 56.163. ELIGIBILITY. (a) To be eligible for a loan
2-13 under this subchapter, a person must:
2-14 (1) 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 or be accepted for admission to an institution as a full-time
2-17 graduate student in a master's program approved by the board and
2-18 demonstrate a commitment to pursue a doctoral program approved by
2-19 the board;
2-20 (2) be sponsored by a faculty member of the program in
2-21 which the person is enrolled;
2-22 (3) be nominated by the institution in which the
2-23 person is enrolled based on academic achievement, career interest,
2-24 and other factors the institution considers relevant;
2-25 (4) not have defaulted on another student loan; and
2-26 (5) have complied with any other requirements adopted
2-27 by the board under this subchapter.
3-1 (b) The board shall adopt eligibility requirements under
3-2 Subsection (a)(5) of this section to ensure that Texas residents,
3-3 as defined by board rule, are first given the opportunity to
3-4 receive loans under this subchapter.
3-5 Sec. 56.164. TUITION CHARGED CERTAIN NONRESIDENT LOAN
3-6 RECIPIENTS. If a loan recipient is a resident of another state
3-7 that has a program that is similar to the program under this
3-8 subchapter and the loan recipient enrolls at an institution of
3-9 higher education, as defined by Section 61.003 of this code, the
3-10 institution may charge the loan recipient only the tuition required
3-11 for resident students under Subchapter B, Chapter 54, of this code.
3-12 Sec. 56.165. LOAN DISBURSEMENT. (a) If an eligible student
3-13 applies for a loan from a lending institution, the board shall
3-14 provide the institution a conditional guaranty of the loan, in
3-15 accordance with Section 56.170 of this code, on the board's receipt
3-16 of:
3-17 (1) the student's application to the board for a
3-18 conditional guaranty;
3-19 (2) a verification of the student's enrollment from
3-20 the institution enrolling the student;
3-21 (3) a certification from the institution enrolling the
3-22 student of the amount of tuition and fees for the student; and
3-23 (4) a certification from the lending institution that
3-24 the terms of the loan conform with the requirements of Section
3-25 56.166 of this code, including requirements adopted by the board
3-26 under that section, and that the lending institution agrees to
3-27 suspend interest on the student's loan as provided by Sections
4-1 56.168 and 56.169 of this code.
4-2 (b) If an eligible student applies for a loan from the
4-3 board, the board shall provide a loan in an amount determined by
4-4 the board to the student on the board's receipt of:
4-5 (1) the student's application to the board for a loan;
4-6 (2) a verification of the student's enrollment from
4-7 the institution enrolling the student; and
4-8 (3) a certification from the institution enrolling the
4-9 student of the amount of tuition and fees for the student.
4-10 Sec. 56.166. TERMS OF LOAN. (a) A loan must be evidenced
4-11 by a promissory note that provides for the repayment of the loan
4-12 with interest and for the charging of necessary collection costs.
4-13 (b) Except as provided by Sections 56.168 and 56.169 of this
4-14 code, a loan must be repayable, at the option of the board, in
4-15 equal monthly installments over a period beginning with the first
4-16 day of the seventh month after the date on which the recipient
4-17 ceases to be enrolled in a graduate program at an institution.
4-18 (c) A loan must bear simple interest at a rate determined by
4-19 the board.
4-20 (d) A loan provided under this subchapter may not exceed
4-21 $14,000 each year for a maximum of four years.
4-22 (e) The board shall determine the other terms of a loan.
4-23 Sec. 56.167. MENTORS. The institution at which a student
4-24 who receives a loan is enrolled shall provide the student with a
4-25 mentor who is a faculty member at the institution to assist the
4-26 student in pursuing a master's or doctoral degree.
4-27 Sec. 56.168. POSTDOCTORAL FELLOWSHIP. (a) A loan recipient
5-1 is eligible for suspension of the recipient's loan if the recipient
5-2 enters a postdoctoral fellowship not later than the first day of
5-3 the seventh month after the date on which the recipient ceases to
5-4 be enrolled in a doctoral program at an institution.
5-5 (b) The board shall suspend the accrual of interest and the
5-6 repayment of principal and interest on an eligible recipient's loan
5-7 until a date determined by board rule.
5-8 Sec. 56.169. LOAN SUSPENSION AND FORGIVENESS. (a) A loan
5-9 recipient is eligible for suspension and forgiveness of the
5-10 recipient's loan if, after the recipient obtains a doctorate, the
5-11 recipient is employed as a full-time faculty member or academic
5-12 administrator at an institution.
5-13 (b) In accordance with Subsections (c), (d), and (e) of this
5-14 section, the board shall suspend the accrual of interest and
5-15 forgive the repayment of a loan made to an eligible recipient.
5-16 (c) The board shall suspend the accrual of interest and the
5-17 repayment of principal and interest on an eligible recipient's loan
5-18 until the recipient is not employed as a full-time faculty member
5-19 or academic administrator at an institution.
5-20 (d) The board shall forgive the repayment of 20 percent of
5-21 the unpaid principal balance and all accrued interest of an
5-22 eligible recipient's loan for each academic year of service by the
5-23 recipient as a full-time faculty member or academic administrator
5-24 at an institution.
5-25 (e) A loan to an eligible recipient is repayable under the
5-26 terms of Section 56.166 of this code beginning with the first day
5-27 of the seventh month after the date on which the recipient
6-1 discontinues full-time study and is not employed as a full-time
6-2 faculty member or academic administrator at an institution and must
6-3 be repaid in full not later than the 10th anniversary of the date
6-4 on which the loan becomes repayable.
6-5 Sec. 56.170. CONDITIONAL GUARANTY. A conditional guaranty
6-6 of a loan under Section 56.165(a) of this code must provide that
6-7 the board shall repay the lending institution to which the guaranty
6-8 is executed the amount of the loan that the board would be required
6-9 to forgive under Section 56.169 of this code if the loan had been
6-10 made by the board.
6-11 Sec. 56.171. FUNDING. (a) The board may accept gifts and
6-12 grants from a public or private source for the program.
6-13 (b) Gifts, grants, and other funds appropriated by the
6-14 legislature may be used for the program.
6-15 SECTION 2. (a) The Texas Higher Education Coordinating
6-16 Board shall adopt and distribute initial rules required by
6-17 Subchapter J, Chapter 56, Education Code, as added by this Act, not
6-18 later than January 1, 1994.
6-19 (b) The Texas Higher Education Coordinating Board shall make
6-20 loans to eligible students under Subchapter J, Chapter 56,
6-21 Education Code, as added by this Act, for use beginning with the
6-22 fall semester in 1994.
6-23 SECTION 3. The importance of this legislation and the
6-24 crowded condition of the calendars in both houses create an
6-25 emergency and an imperative public necessity that the
6-26 constitutional rule requiring bills to be read on three several
6-27 days in each house be suspended, and this rule is hereby suspended,
7-1 and that this Act take effect and be in force from and after its
7-2 passage, and it is so enacted.