By Hodge                                              H.B. No. 3544
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to student loan repayment assistance for certain dentists.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Chapter 61, Education Code, is amended by adding
 1-5     Subchapter S to read as follows:
 1-6                     SUBCHAPTER S.  REPAYMENT OF CERTAIN
 1-7                           DENTAL EDUCATION LOANS
 1-8           Sec. 61.901.  REPAYMENT AUTHORIZED.  The board may provide,
 1-9     using funds appropriated for that purpose and in accordance with
1-10     this subchapter and rules of the board, assistance in the repayment
1-11     of student loans for dentists who apply and qualify for the
1-12     assistance.
1-13           Sec. 61.902.  ELIGIBILITY.  (a) To be eligible to receive
1-14     repayment assistance, a dentist must apply to the board and have
1-15     completed at least one year of dental practice in an area of the
1-16     state that is underserved with respect to dental care.
1-17           (b)  The board by rule may provide for repayment assistance
1-18     on a pro rata basis for dentists in part-time practice described by
1-19     Subsection (a).
1-20           Sec. 61.903.  LIMITATION.  A dentist may receive repayment
1-21     assistance grants for each of not more than five years.
 2-1           Sec. 61.904.  ELIGIBLE LOANS.  (a)  The board may provide
 2-2     repayment assistance for the repayment of any student loan for
 2-3     education at an institution of higher education, including loans
 2-4     for undergraduate education, received by a dentist through any
 2-5     lender.
 2-6           (b)  The board may withhold repayment assistance for a
 2-7     student loan that is in default at the time of the dentist's
 2-8     application.
 2-9           (c)  Each fiscal biennium, the board shall attempt to
2-10     allocate all funds appropriated to it for the purpose of providing
2-11     repayment assistance under this subchapter.
2-12           Sec. 61.905.  REPAYMENT.  (a)  The coordinating board shall
2-13     deliver any repayment made under this subchapter in a lump sum
2-14     payable to the lender and the dentist, in accordance with any
2-15     applicable federal law.
2-16           (b)  A repayment made under this subchapter may be applied to
2-17     any amount due in connection with the loan.
2-18           Sec. 61.906.  ADVISORY COMMITTEES.  The board may:
2-19                 (1)  appoint advisory committees from outside the
2-20     board's membership to assist the board in performing its duties
2-21     under this subchapter; and
2-22                 (2)  request the assistance of the Oral Health Services
2-23     Advisory Committee in performing those duties.
2-24           Sec. 61.907.  ACCEPTANCE OF FUNDS.  The board may accept
2-25     gifts, grants, and donations for the purposes of this subchapter.
 3-1           Sec. 61.908. RULES.  (a) The board shall adopt rules
 3-2     necessary for the administration of this subchapter, including a
 3-3     rule that sets a maximum amount of repayment assistance that may be
 3-4     received by a dentist in one year. The board may consult with the
 3-5     Oral Health Services Advisory Committee to assist the board in
 3-6     establishing priorities among eligible dentists for repayment
 3-7     assistance, taking into account the degree of an area's shortage of
 3-8     dental services, geographic locations, whether the dentist is or
 3-9     will be providing service in an underserved area with respect to
3-10     dental services, and other criteria the board considers
3-11     appropriate.
3-12           (b)  The coordinating board shall distribute to each dental
3-13     school in this state and to appropriate state agencies and
3-14     professional associations copies of the rules adopted under this
3-15     section and other pertinent information relating to this
3-16     subchapter.
3-17           Sec. 61.909.  TOTAL AMOUNT OF REPAYMENT ASSISTANCE.  The
3-18     total amount of repayment assistance distributed by the board under
3-19     this subchapter may not exceed the total amount of gifts and grants
3-20     accepted by the board for repayment assistance, dental school
3-21     tuition set aside under Section 61.910, legislative appropriations
3-22     for repayment assistance, and other funds available to the board
3-23     for purposes of this subchapter.
3-24           Sec. 61.910.  DENTAL SCHOOL TUITION SET ASIDE FOR CERTAIN
3-25     LOAN REPAYMENTS.  (a)  The governing board of each dental school of
 4-1     an institution of higher education shall set aside two percent of
 4-2     tuition charges for resident students enrolled in a degree program
 4-3     for training dentists.
 4-4           (b)  The amount set aside shall be transferred to the
 4-5     comptroller of public accounts to be maintained in the state
 4-6     treasury for the sole purpose of repayment of student loans of
 4-7     dentists under this subchapter.  Section 403.095(b), Government
 4-8     Code, does not apply to the amount set aside by this section.
 4-9           SECTION 2.  This Act takes effect September 1, 1997.
4-10           SECTION 3.  The importance of this legislation and the
4-11     crowded condition of the calendars in both houses create an
4-12     emergency and an imperative public necessity that the
4-13     constitutional rule requiring bills to be read on three several
4-14     days in each house be suspended, and this rule is hereby suspended.