HBA-KMH H.B. 724 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 724 By: Delisi Public Education 4/21/1999 Introduced BACKGROUND AND PURPOSE Currently, teachers may receive loan repayment assistance under the Education Code, if eligible, after completion of at least one year of employment at an elementary or secondary school of this state in an area or field of acute teacher shortage. H.B. 724 restructures the existing statutory provisions for repayment of certain teacher education loans to create the "Texas Classroom Teachers Loan Repayment Program." The bill also provides for new eligibility requirements and authorizes appropriation of funds from the lottery. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority previously delegated to the Texas Higher Education Coordinating Board is modified in SECTION 1 (Sections 6.701 and 6.709, Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter M, Chapter 61, Education Code, as follows: SUBCHAPTER M. New Title: TEXAS CLASSROOM TEACHERS LOAN REPAYMENT PROGRAM. Sec. 61.701. REPAYMENT AUTHORIZED. Requires, rather than authorizes, the Texas Higher Education Coordinating Board (board) to provide assistance in the repayment of student loans for classroom teachers, rather than teachers, who apply and qualify for assistance, in accordance with this subchapter and board rules. Makes nonsubstantive changes. Sec. 61.702. ELIGIBILITY. Clarifies that the provisions of this section are determinative of the eligibility under this subchapter of a person, rather than a teacher, to receive loan repayment assistance. Designates the commissioner of education, rather than the State Board of Education, to determine an area or field of acute teacher shortage. Provides additional eligibility requirements. Provides that a person is not eligible under this section if the person has been convicted of a felony, a crime involving moral turpitude, or an offense under Chapter 481 (Texas Controlled Substances Act), Health and Safety Code, or under the law of any other jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code. Deletes authorization to the coordinating board to provide by rule for the amount of assistance for each part-time teacher. Sec. 61.703. New Title: LOAN REPAYMENT; LIMITATIONS. Prohibits an eligible person from receiving an amount for each school year that the person qualifies for assistance that exceeds the lesser of one-fifth of the total amount of the person's outstanding student loans that qualify for assistance when the person is initially determined to be eligible for assistance or $3,000. Prohibits a person from receiving repayment assistance in excess of the amount of the person's outstanding student loans eligible for repayment assistance at the time the payment is made. Prohibits a teacher from receiving repayment assistance under this subchapter for more than five years. Sec. 61.704. ELIGIBLE LOANS. Provides that the repayment assistance loans are for state or federally guaranteed student loans. Makes conforming and nonsubstantive changes. Sec. 61.705. New Title: DISQUALIFICATION FROM PROGRAM. Provides the conditions under which a person initially qualified for loan repayment assistance under this subchapter becomes disqualified for continued loan repayment assistance under this subchapter. Makes conforming changes by deleting the provision requiring payment by the coordinating board and the designation of the payment toward interest and principal of the student loans. Sec. 61.706. New Title: INTERRUPTION OF TEACHING DUTIES. Requires the board to grant a person who is otherwise eligible for loan repayment assistance and who serves as a classroom teacher as required by Section 61.702(a)(6) for at least one month of the school year a prorated portion of the loan repayment assistance the person would have received for teaching for the entire school year, if the person demonstrates to the board that the person is unable to complete the school year for certain prescribed reasons. Sec. 61.707. ADVISORY COMMITTEES. Redesignated from Section 61.706. Makes a conforming change. Sec. 61.708. ACCEPTANCE OF FUNDS. Redesignated from Section 61.707. Makes a conforming change. Sec. 61.709. RULES. Redesignated from Section 61.708. Makes conforming changes. Sec. 61.710. FUNDING. Provides that the loan repayment assistance program is funded by amounts appropriated for the program from the state lottery account or from other available resources. SECTION 2. Amends Section 466.355(b), Government Code, to include in the authorized uses of funds from the state lottery fund the transfer to the Texas Higher Education Coordinating Board of any amount appropriated for the current state fiscal year for the Texas Classroom Teachers Loan Repayment Program under Subchapter M, Chapter 61, Education Code. SECTION 3. Provides that this Act takes effect beginning with the fall semester 1999. SECTION 4. Emergency clause. Effective date: upon passage.