By Duncan                                             S.B. No. 1548
         77R4685 SGA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of a program to provide low-interest home
 1-3     mortgage loans to certain teachers.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 2306, Government Code, is amended by
 1-6     adding Subchapter GG to read as follows:
 1-7                  SUBCHAPTER GG.  TEACHER HOME LOAN PROGRAM
 1-8           Sec. 2306.801.  DEFINITIONS. In this subchapter:
 1-9                 (1)  "Critical shortage area" means a location
1-10     designated by the commissioners of education as experiencing a
1-11     critical shortage of teachers.
1-12                 (2)  "Critical shortage field" means an instructional
1-13     field designated by the commissioner of education as experiencing a
1-14     critical shortage of teachers.
1-15                 (3)  "Program" means the teacher home loan program
1-16     established under this subchapter.
1-17           Sec. 2306.802.  TEACHER HOME LOAN PROGRAM. (a)  The
1-18     department shall establish a program to provide eligible teachers
1-19     with low-interest home mortgage loans.
1-20           (b)  To be eligible for a loan under this subchapter, a
1-21     teacher must have taught in a critical shortage area or field for
1-22     at least three years before the date of application for the loan.
1-23     If an eligible teacher dies after filing an application, a
1-24     surviving spouse may complete the transaction.
 2-1           Sec. 2306.803.  FUNDING. The department may solicit and
 2-2     accept funding for the program from the following sources:
 2-3                 (1)  gifts and grants for the purposes of this
 2-4     subchapter;
 2-5                 (2)  available money in the housing trust fund
 2-6     established  under Section 2306.201;
 2-7                 (3)  federal block grants that may be used for the
 2-8     purposes of this subchapter;
 2-9                 (4)  other state or federal programs that provide money
2-10     that may be used for the purposes of this subchapter; and
2-11                 (5)  amounts received by the department in repayment of
2-12     loans made under this subchapter.
2-13           Sec. 2306.804.  ADVISORY COMMITTEE; PROGRAM OPERATION. (a)
2-14     The department shall create an advisory committee to research:
2-15                 (1)  areas or fields with a critical need for the
2-16     program;
2-17                 (2)  any similar programs existing in political
2-18     subdivisions of this state or in any other state; and
2-19                 (3)  potential funding sources.
2-20           (b)  Based on its research, the advisory committee shall
2-21     recommend rules and policies for the operation of the program.
2-22           (c)  The advisory committee is not subject to Chapter 2110.
2-23           Sec. 2306.805.  EXPIRATION. This subchapter expires September
2-24     1, 2010.
2-25           SECTION 2. The Texas Department of Housing and Community
2-26     Affairs shall:
2-27                 (1)  create the advisory committee required by
 3-1     Subchapter GG, Chapter 2306, Government Code, as added by this Act,
 3-2     not later than January 1, 2002; and
 3-3                 (2)  implement the teacher home loan program required
 3-4     by that subchapter not later than September 1, 2002.
 3-5           SECTION 3.  This Act takes effect immediately if it receives
 3-6     a vote of two-thirds of all the members elected to each house, as
 3-7     provided by Section 39, Article III, Texas Constitution.  If this
 3-8     Act does not receive the vote necessary for immediate effect, this
 3-9     Act takes effect September 1, 2001.