1-1 By: Truan S.B. No. 233
1-2 (In the Senate - Filed February 2, 1993; February 2, 1993,
1-3 read first time and referred to Committee on International
1-4 Relations, Trade, and Technology; March 25, 1993, reported
1-5 adversely, with favorable Committee Substitute by the following
1-6 vote: Yeas 7, Nays 0; March 25, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Truan x
1-10 Barrientos x
1-11 Bivins x
1-12 Brown x
1-13 Carriker x
1-14 Harris of Tarrant x
1-15 Lucio x
1-16 Rosson x
1-17 Wentworth x
1-18 COMMITTEE SUBSTITUTE FOR S.B. No. 233 By: Truan
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to establishing a minority doctoral incentive program.
1-22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-23 SECTION 1. Chapter 56, Education Code, is amended by adding
1-24 Subchapter J to read as follows:
1-25 SUBCHAPTER J. MINORITY DOCTORAL INCENTIVE PROGRAM
1-26 Sec. 56.161. DEFINITIONS. In this subchapter:
1-27 (1) "Academic administrator" means a person employed
1-28 by an institution as a supervisor in an educational department of
1-29 the institution in a position that is not classified under the
1-30 state position classification plan.
1-31 (2) "Board" means the Texas Higher Education
1-32 Coordinating Board.
1-33 (3) "Faculty member" has the meaning assigned by
1-34 Section 51.101 of this code.
1-35 (4) "Institution" means an institution of higher
1-36 education, as defined by Section 61.003 of this code, or a private
1-37 college or university that is located in this state and is
1-38 accredited by a recognized accrediting agency, as defined by
1-39 Section 61.003 of this code.
1-40 (5) "Minority" means a group that is significantly
1-41 underrepresented in an academic discipline, as determined by board
1-42 rule.
1-43 (6) "Program" means the minority doctoral incentive
1-44 program established under this subchapter.
1-45 Sec. 56.162. ESTABLISHMENT; ADMINISTRATION. (a) The board
1-46 shall establish and administer the minority doctoral incentive
1-47 program to:
1-48 (1) provide loans to minority students who pursue
1-49 doctorates or pursue master's degrees and commit to pursue a
1-50 doctorate; and
1-51 (2) increase minority representation among the faculty
1-52 and administration of institutions.
1-53 (b) The board shall adopt and distribute to the governing
1-54 board of each institution copies of all rules adopted under this
1-55 subchapter.
1-56 Sec. 56.163. ELIGIBILITY. (a) To be eligible for a loan
1-57 under this subchapter, a person must:
1-58 (1) be accepted for admission to an institution as a
1-59 full-time graduate student in a doctoral program approved by the
1-60 board or be accepted for admission to an institution as a full-time
1-61 graduate student in a master's program approved by the board and
1-62 demonstrate a commitment to pursue a doctoral program approved by
1-63 the board;
1-64 (2) be sponsored by a faculty member of the program in
1-65 which the person is enrolled;
1-66 (3) be nominated by the institution in which the
1-67 person is enrolled based on academic achievement, career interest,
1-68 and other factors the institution considers relevant;
2-1 (4) not have defaulted on another student loan; and
2-2 (5) have complied with any other requirements adopted
2-3 by the board under this subchapter.
2-4 (b) The board shall adopt eligibility requirements under
2-5 Subsection (a)(5) of this section to ensure that Texas residents,
2-6 as defined by board rule, are first given the opportunity to
2-7 receive loans under this subchapter.
2-8 Sec. 56.164. TUITION CHARGED NONRESIDENT LOAN RECIPIENTS.
2-9 An institution that enrolls a loan recipient who is not a Texas
2-10 resident, as defined by board rule, may charge the recipient only
2-11 the tuition required for resident students under Subchapter B of
2-12 Chapter 54 of this code.
2-13 Sec. 56.165. LOAN DISBURSEMENT. (a) If an eligible student
2-14 applies for a loan from a lending institution, the board shall
2-15 provide the institution a conditional guaranty of the loan, in
2-16 accordance with Section 56.170 of this code, on the board's receipt
2-17 of:
2-18 (1) the student's application to the board for a
2-19 conditional guaranty;
2-20 (2) a verification of the student's enrollment from
2-21 the institution enrolling the student;
2-22 (3) a certification from the institution enrolling the
2-23 student of the amount of tuition and fees for the student; and
2-24 (4) a certification from the lending institution that
2-25 the terms of the loan conform with the requirements of Section
2-26 56.166 of this code, including requirements adopted by the board
2-27 under that section, and that the lending institution agrees to
2-28 suspend interest on the student's loan as provided by Sections
2-29 56.168 and 56.169 of this code.
2-30 (b) If an eligible student applies for a loan from the
2-31 board, the board shall provide a loan in an amount determined by
2-32 the board to the student on the board's receipt of:
2-33 (1) the student's application to the board for a loan;
2-34 (2) a verification of the student's enrollment from
2-35 the institution enrolling the student; and
2-36 (3) a certification from the institution enrolling the
2-37 student of the amount of tuition and fees for the student.
2-38 Sec. 56.166. TERMS OF LOAN. (a) A loan must be evidenced
2-39 by a promissory note that provides for the repayment of the loan
2-40 with interest and for the charging of necessary collection costs.
2-41 (b) Except as provided by Sections 56.168 and 56.169 of this
2-42 code, a loan must be repayable, at the option of the board, in
2-43 equal monthly installments over a period beginning with the first
2-44 day of the seventh month after the date on which the recipient
2-45 ceases to be enrolled in a graduate program at an institution.
2-46 (c) A loan must bear simple interest at a rate determined by
2-47 the board.
2-48 (d) A loan provided under this subchapter may not exceed
2-49 $14,000 each year for a maximum of four years.
2-50 (e) The board shall determine the other terms of a loan.
2-51 Sec. 56.167. MENTORS. The institution at which a student
2-52 who receives a loan is enrolled shall provide the student with a
2-53 mentor who is a faculty member at the institution to assist the
2-54 student in pursuing a master's or doctoral degree.
2-55 Sec. 56.168. POSTDOCTORAL FELLOWSHIP. (a) A loan recipient
2-56 is eligible for suspension of the recipient's loan if the recipient
2-57 enters a postdoctoral fellowship not later than the first day of
2-58 the seventh month after the date on which the recipient ceases to
2-59 be enrolled in a doctoral program at an institution.
2-60 (b) The board shall suspend the accrual of interest and the
2-61 repayment of principal and interest on an eligible recipient's loan
2-62 until a date determined by board rule.
2-63 Sec. 56.169. LOAN SUSPENSION AND FORGIVENESS. (a) A loan
2-64 recipient is eligible for suspension and forgiveness of the
2-65 recipient's loan if, after the recipient obtains a doctorate, the
2-66 recipient is employed as a full-time faculty member or academic
2-67 administrator at an institution.
2-68 (b) In accordance with Subsections (c), (d), and (e) of this
2-69 section, the board shall suspend the accrual of interest and
2-70 forgive the repayment of a loan made to an eligible recipient.
3-1 (c) The board shall suspend the accrual of interest and the
3-2 repayment of principal and interest on an eligible recipient's loan
3-3 until the recipient is not employed as a full-time faculty member
3-4 or academic administrator at an institution.
3-5 (d) The board shall forgive the repayment of 20 percent of
3-6 the unpaid principal balance and all accrued interest of an
3-7 eligible recipient's loan for each academic year of service by the
3-8 recipient as a full-time faculty member or academic administrator
3-9 at an institution.
3-10 (e) A loan to an eligible recipient is repayable under the
3-11 terms of Section 56.166 of this code beginning with the first day
3-12 of the seventh month after the date on which the recipient
3-13 discontinues full-time study and is not employed as a full-time
3-14 faculty member or academic administrator at an institution and must
3-15 be repaid in full not later than the 10th anniversary of the date
3-16 on which the loan becomes repayable.
3-17 Sec. 56.170. CONDITIONAL GUARANTY. A conditional guaranty
3-18 of a loan under Section 56.165(a) of this code must provide that
3-19 the board shall repay the lending institution to which the guaranty
3-20 is executed the amount of the loan that the board would be required
3-21 to forgive under Section 56.169 of this code if the loan had been
3-22 made by the board.
3-23 Sec. 56.171. FUNDING. (a) The board may accept gifts and
3-24 grants from a public or private source for the program.
3-25 (b) Gifts, grants, and other funds appropriated by the
3-26 legislature may be used for the program.
3-27 SECTION 2. (a) The Texas Higher Education Coordinating
3-28 Board shall adopt and distribute initial rules required by
3-29 Subchapter J, Chapter 56, Education Code, as added by this Act, not
3-30 later than January 1, 1994.
3-31 (b) The Texas Higher Education Coordinating Board shall make
3-32 loans to eligible students under Subchapter J, Chapter 56,
3-33 Education Code, as added by this Act, for use beginning with the
3-34 fall semester in 1994.
3-35 SECTION 3. The importance of this legislation and the
3-36 crowded condition of the calendars in both houses create an
3-37 emergency and an imperative public necessity that the
3-38 constitutional rule requiring bills to be read on three several
3-39 days in each house be suspended, and this rule is hereby suspended,
3-40 and that this Act take effect and be in force from and after its
3-41 passage, and it is so enacted.
3-42 * * * * *
3-43 Austin,
3-44 Texas
3-45 March 25, 1993
3-46 Hon. Bob Bullock
3-47 President of the Senate
3-48 Sir:
3-49 We, your Committee on International Relations, Trade, and
3-50 Technology to which was referred S.B. No. 233, have had the same
3-51 under consideration, and I am instructed to report it back to the
3-52 Senate with the recommendation that it do not pass, but that the
3-53 Committee Substitute adopted in lieu thereof do pass and be
3-54 printed.
3-55 Truan,
3-56 Chairman
3-57 * * * * *
3-58 WITNESSES
3-59 FOR AGAINST ON
3-60 ___________________________________________________________________
3-61 Name: Dr. Manuel Ibanez x
3-62 Representing: Texas A & I University
3-63 City: Kingsville, Tx
3-64 -------------------------------------------------------------------
3-65 Name: Mr. Mack Adams x
3-66 Representing: Tx Higher Ed. Coordinating Bd
3-67 City: Austin, Tx
3-68 -------------------------------------------------------------------
3-69 Name: Mr. Kenneth L. Peddicord x
3-70 Representing: Tx Engineering Exp. Station
4-1 City: College Station, Tx
4-2 -------------------------------------------------------------------
4-3 Name: Dr. Ana M. Guzman x
4-4 Representing: Tx Engineering Exp. Station
4-5 City: College Station, Tx
4-6 -------------------------------------------------------------------