By Gallego                                            H.B. No. 1576
         76R2434 KEL-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the repayment of student loans for certain public
 1-3     school teachers and college and university faculty members.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter M, Chapter 61, Education Code, is
 1-6     amended to read as follows:
 1-7                     SUBCHAPTER M.  REPAYMENT OF CERTAIN
 1-8                     TEACHER AND FACULTY EDUCATION LOANS
 1-9           Sec. 61.701.  REPAYMENT REQUIRED [AUTHORIZED].  The
1-10     [coordinating] board shall [may] provide, in accordance with this
1-11     subchapter and board rules, assistance in the repayment of student
1-12     loans for persons [teachers] who apply and qualify for the
1-13     assistance.
1-14           Sec. 61.702.  ELIGIBILITY.  [(a)]  To be eligible to receive
1-15     repayment assistance, a person [teacher] must[:]
1-16                 [(1)]  apply to the [coordinating] board[;] and must
1-17     have:
1-18                 (1) [(2)  have] completed at least one year of
1-19     employment as and be employed as a full-time classroom teacher in
1-20     the elementary or secondary schools of this state in an area or
1-21     field of acute teacher shortage as designated by the State Board of
1-22     Education; or
1-23                 (2)  received a doctoral degree not earlier than
1-24     September 1, 1994, from a public or private institution of higher
 2-1     education accredited as required by the board and be employed as a
 2-2     full-time faculty member with instructional duties in an
 2-3     institution of higher education located in a county that borders
 2-4     the United Mexican States.
 2-5           [(b)  The coordinating board may provide by rule for
 2-6     repayment assistance on a pro rata basis for teachers employed
 2-7     part-time in an elementary or secondary school of this state in an
 2-8     area or field of acute teacher shortage as designated by the State
 2-9     Board of Education.]
2-10           Sec. 61.703.  LIMITATION.  A person [teacher] may not receive
2-11     repayment assistance grants for more than 10 [five] years.
2-12           Sec. 61.704.  ELIGIBLE LOANS.  (a)  The [coordinating] board
2-13     may provide repayment assistance for the repayment of any student
2-14     loan for education at a public or private [an] institution of
2-15     higher education, including loans for undergraduate and graduate
2-16     education, received by a person [teacher] through any lender.
2-17           (b)  The [coordinating] board may not provide repayment
2-18     assistance for a student loan that is in default at the time of the
2-19     person's [teacher's] application.
2-20           Sec. 61.705.  REPAYMENT.  (a)  The [coordinating] board shall
2-21     deliver any repayment made under this subchapter in a lump sum
2-22     payable to the lender and the person [teacher], in accordance with
2-23     federal law.
2-24           (b)  A repayment made under this subchapter may be applied to
2-25     the principal amount of the loan and to interest that accrues.
2-26           (c)  The minimum amount of repayment assistance that may be
2-27     received in one year by a person described by Section 61.702(2) is
 3-1     50 percent of the amount of principal and accrued interest that is
 3-2     due that year.
 3-3           Sec. 61.706.  ADVISORY COMMITTEES.  The [coordinating] board
 3-4     may appoint advisory committees from outside the board's membership
 3-5     to assist the board in performing its duties under this subchapter.
 3-6           Sec. 61.707.  ACCEPTANCE OF FUNDS.  The [coordinating] board
 3-7     may accept gifts, grants, and donations for the purposes of this
 3-8     subchapter.
 3-9           Sec. 61.708.  RULES.  (a)  The [coordinating] board shall
3-10     adopt rules necessary for the administration of this subchapter,
3-11     including:
3-12                 (1)  a rule that sets a minimum or maximum amount of
3-13     repayment assistance that may be received in one year by a person
3-14     described by Section 61.702(1); and
3-15                 (2)  a rule that sets a maximum amount of repayment
3-16     assistance that may be received in one year by a person described
3-17     by Section 61.702(2) [teacher in one year].
3-18           (b)  The [coordinating] board shall distribute a copy of the
3-19     rules adopted under this section and pertinent information in this
3-20     subchapter to:
3-21                 (1)  each institution of higher education that offers a
3-22     teacher education program;
3-23                 (2)  the personnel office at each institution of higher
3-24     education described by Section 61.702(2);
3-25                 (3)  any other appropriate state agency; and
3-26                 (4) [(3)]  any appropriate professional association.
3-27           SECTION 2.  This Act takes effect September 1, 1999.
 4-1           SECTION 3.  The importance of this legislation and the
 4-2     crowded condition of the calendars in both houses create an
 4-3     emergency and an imperative public necessity that the
 4-4     constitutional rule requiring bills to be read on three several
 4-5     days in each house be suspended, and this rule is hereby suspended.