By Truan, et al.                                S.B. No. 1872

      75R9050 T                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the Minority Doctoral Incentive Program.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (a), Section 56.162, Chapter 56,

 1-5     Education Code is amended to read as follows:

 1-6           Sec. 56.162. ESTABLISHMENT; ADMINISTRATION.  (a)  The board

 1-7     shall establish and administer the minority doctoral incentive

 1-8     program to(:

 1-9                 [(1)]  provide assistance in the repayment of loans for

1-10     [loans to] minority faculty and academic administrators to

1-11     [students who pursue doctorates or pursue master's degrees and

1-12     commit to pursue a doctorate; and]

1-13                 [(2)]  increase minority representation among the

1-14     faculty and administration of institutions in academic disciplines

1-15     in which there is significant underrepresentation.

1-16           SECTION 2.  Section 56.163, Chapter 56, Education Code is

1-17     amended to read as follows:

1-18           Sec. 56.163.  ELIGIBILITY.  (a)  To be eligible to receive

1-19     loan repayment assistance [for a loan] under this subchapter, a

1-20     person must:

1-21                 (1)  have completed at least one year of employment as

1-22     a full-time faculty member or academic administrator at an

1-23     institution.  A faculty member should be teaching in an academic

1-24     discipline in which minorities are significantly underrepresented

 2-1     [be accepted for admission to an institution as a full-time

 2-2     graduate student in a doctoral program approved by the board or be

 2-3     accepted for admission to an institution as a full-time graduate

 2-4     student in a master's program approved by the board and demonstrate

 2-5     a commitment to pursue a doctoral program approved by the board];

 2-6                 (2)  hold a doctoral degree [be sponsored by a faculty

 2-7     member of the program in which the person is enrolled];

 2-8                 (3)  [be nominated by the institution in which the

 2-9     person is employed enrolled based on academic achievement, career

2-10     interest, and other factors the institution considers relevant;]

2-11                 [(4)]  not have defaulted on another student loan; and

2-12                 (4) [(5)]  have complied with any other requirements

2-13     adopted by the board under this subchapter.

2-14           (b)  The board shall adopt criteria for the selection of

2-15     recipients and eligibility requirements under Subsection

2-16     (a)(4)[(5)] of this section to ensure that a recipient whose degree

2-17     was awarded by a Texas institution and who during the time of study

2-18     was a Texas resident [residents], as defined by board rule, is

2-19     [are] first given the opportunity to receive loan repayment

2-20     assistance [loans] under this subchapter.

2-21           SECTION 3.  Section 56.169, Chapter 56, Education Code, is

2-22     amended to read as follows:

2-23           Sec. 56.169.  LOAN REPAYMENT [SUSPENSION AND FORGIVENESS].

2-24     (a)  A full-time minority faculty member or academic administrator

2-25     at an institution [loan recipient] is eligible for the repayment of

2-26     loans for the person's doctoral studies [suspension and forgiveness

2-27     of the recipient's loan if, after the recipient obtains a

 3-1     doctorate, the recipient is employed as a full-time faculty member

 3-2     or academic administrator at an institution].

 3-3           (b)  The [In accordance with Subsections (c), (d), and (e) of

 3-4     this section, the] board shall determine the maximum amount of loan

 3-5     repayment assistance a person may receive [suspend the accrual of

 3-6     interest and forgive the repayment of a loan made to an eligible

 3-7     recipient].

 3-8           (c)  [The board shall suspend the accrual of interest and the

 3-9     repayment of principal and interest on an eligible recipient's loan

3-10     until the recipient is not employed as a full-time faculty member

3-11     or academic administrator at an institution.]

3-12           [(d)]  The board shall repay no more than [forgive the

3-13     repayment of] 20 percent of the unpaid principal balance and [all]

3-14     accrued interest of an eligible recipient's loan for each academic

3-15     year of service by the recipient as a full-time faculty member or

3-16     academic administrator at an institution.

3-17           (d) [(e)]  The board shall deliver any repayment made under

3-18     this section in a lump sum payable to the lender and the recipient,

3-19     in accordance with applicable law [A loan to an eligible recipient

3-20     is repayable under the terms of Section 56.166 of this code

3-21     beginning with the first day of the seventh month after the date on

3-22     which the recipient discontinues full-time study and is not

3-23     employed as a full-time faculty member or academic administrator at

3-24     an institution and must be repaid in full not later than the 10th

3-25     anniversary of the date on which the loan becomes repayable].

3-26           SECTION 4.  PLEDGES UNDER PRIOR LAW REMAIN IN EFFECT.  The

3-27     repeal or amendment of the law by this Act does not affect any

 4-1     pledge made by the coordinating board to a student for a loan or

 4-2     loan forgiveness made under the program.

 4-3           SECTION 5.  REPEALER.  Sections 56.164, 56.165, 56.166,

 4-4     56.167, 56.168, and 56.170, Chapter 56, Education Code are

 4-5     repealed.

 4-6           SECTION 6.  This Act takes effect September 1, 1997.

 4-7           SECTION 7.  The importance of this legislation and the

 4-8     crowded condition of the calendars in both houses create an

 4-9     emergency and an imperative public necessity that the

4-10     constitutional rule requiring bills to be read on three several

4-11     days in each house be suspended, and this rule is hereby suspended.