By: Truan S.B. No. 233
73R1745 SOS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to establishing a science, engineering, and mathematics
1-3 minority scholars loan fund.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 56, Education Code, is amended by adding
1-6 Subchapter J to read as follows:
1-7 SUBCHAPTER J. SCIENCE, ENGINEERING, AND MATHEMATICS MINORITY
1-8 SCHOLARS LOAN FUND
1-9 Sec. 56.161. DEFINITIONS. In this subchapter:
1-10 (1) "Board" means the Texas Higher Education
1-11 Coordinating Board.
1-12 (2) "Fund" means the science, engineering, and
1-13 mathematics minority scholars loan fund.
1-14 (3) "Institution" means an institution of higher
1-15 education or a private college or university that issues degrees in
1-16 this state and that is accredited by a recognized accrediting
1-17 agency under Section 61.003 of this code.
1-18 Sec. 56.162. ESTABLISHMENT. (a) A special fund to be known
1-19 as the science, engineering, and mathematics minority scholars loan
1-20 fund is created in the state treasury.
1-21 (b) The fund consists of gifts, grants, and other funds
1-22 appropriated by the legislature, including funds from the proceeds
1-23 of bonds issued by the board for student loans.
1-24 Sec. 56.163. ADMINISTRATION. (a) The board shall
2-1 administer the fund.
2-2 (b) The board shall adopt and distribute to each institution
2-3 rules for the administration of the fund.
2-4 (c) The board may accept gifts and grants from a public or
2-5 private source for the benefit of the fund.
2-6 Sec. 56.164. ELIGIBILITY. To be eligible to receive a loan
2-7 from the fund, a student must:
2-8 (1) complete and file with the financial aid office of
2-9 the institution in which the student is enrolled or intends to
2-10 enroll a loan application on a form prescribed by the board;
2-11 (2) enroll or intend to enroll in a course of graduate
2-12 study leading to a graduate degree in the field of science,
2-13 engineering, or mathematics at an institution; and
2-14 (3) establish financial need as determined by board
2-15 rule.
2-16 Sec. 56.165. PROCESSING OF APPLICATION. (a) The financial
2-17 aid office of an institution that receives a loan application from
2-18 a student shall determine in accordance with board rules whether
2-19 the student complies with Section 56.164 of this code.
2-20 (b) The financial aid office shall send a conforming
2-21 application to the board.
2-22 Sec. 56.166. PAYMENT OF LOAN. The board may provide a
2-23 student whose conforming application has been sent to the board a
2-24 loan from the fund.
2-25 Sec. 56.167. TERMS OF LOAN. (a) A loan from the fund must
2-26 be evidenced by a promissory note or other written instrument that
2-27 provides for the repayment of the loan with interest.
3-1 (b) Except as provided by Section 56.168 of this code, a
3-2 loan from the fund must be repayable, at the option of the board,
3-3 in equal quarterly, bimonthly, or monthly installments over a
3-4 period of time beginning with the ninth month after the date on
3-5 which the recipient ceases to be enrolled in a graduate program in
3-6 science, engineering, or mathematics at an institution.
3-7 (c) A loan from the fund must bear simple interest at a rate
3-8 determined by the board.
3-9 (d) The board shall determine other terms and conditions of
3-10 a loan from the fund.
3-11 Sec. 56.168. LOAN SUSPENSION AND FORGIVENESS. (a) A loan
3-12 recipient is eligible for suspension and forgiveness of the
3-13 recipient's loan if the recipient is employed or reemployed in a
3-14 full-time instructional or research position by an institution.
3-15 (b) In accordance with Subsections (c), (d), and (e) of this
3-16 section, the board shall suspend and forgive the repayment of a
3-17 loan made to an eligible recipient.
3-18 (c) The board shall suspend the accrual of interest and the
3-19 repayment of principal and interest on an eligible recipient's loan
3-20 until the recipient is not employed in a full-time instructional or
3-21 research position at an institution.
3-22 (d) The board shall forgive 10 percent of the principal
3-23 balance and accrued interest of an eligible recipient's loan for
3-24 each academic year of service in a full-time instructional or
3-25 research position by the recipient at an institution.
3-26 (e) A loan to an eligible recipient is repayable under the
3-27 terms of Section 56.167 of this code beginning on the first
4-1 anniversary of the date on which the recipient ceases to be
4-2 employed in a full-time instructional or research position at an
4-3 institution. The balance of the loan is due and payable not sooner
4-4 than the fifth year after the date of the first anniversary.
4-5 SECTION 2. The importance of this legislation and the
4-6 crowded condition of the calendars in both houses create an
4-7 emergency and an imperative public necessity that the
4-8 constitutional rule requiring bills to be read on three several
4-9 days in each house be suspended, and this rule is hereby suspended,
4-10 and that this Act take effect and be in force from and after its
4-11 passage, and it is so enacted.