S.B. No. 233 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.