78(R) SB 722 - Senate Committee Report version


                                                                                


By:  Van de Putte                                                 S.B. No. 722
	(In the Senate - Filed February 26, 2003; March 3, 2003, 
read first time and referred to Committee on Education; 
May 13, 2003, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 7, Nays 0; May 13, 2003, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 722                                    By:  Van de Putte


A BILL TO BE ENTITLED

AN ACT


relating to providing education loan repayment assistance to 
encourage certain individuals to pursue careers in the faculty or 
administration of institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 56, Education Code, is amended by adding 
Subchapter F to read as follows:

SUBCHAPTER F.  DOCTORAL INCENTIVE LOAN REPAYMENT PROGRAM
	Sec. 56.091.  ESTABLISHMENT; ADMINISTRATION.  (a)  The 
Texas Higher Education Coordinating Board shall establish and 
administer the doctoral incentive loan repayment program as 
provided by this subchapter and shall adopt rules as necessary to 
administer the program.
	(b)  The purpose of the doctoral incentive loan repayment 
program is to provide education loan repayment assistance to 
individuals from groups that are underrepresented among the faculty 
and administration of public and independent institutions of higher 
education in this state to increase the number of individuals from 
those underrepresented groups among the faculty and administration 
of public and independent institutions of higher education in this 
state.
	(c)  For purposes of this subchapter, an individual is from a 
group that is underrepresented among the faculty and administration 
of public and independent institutions of higher education in this 
state if:
		(1)  the individual was from a low socioeconomic 
background while pursuing the individual's undergraduate 
education; or
		(2)  when the individual graduated from high school the 
individual resided in an area from which a disproportionately low 
number of high school graduates enrolled in postsecondary 
educational institutions.
	Sec. 56.092.  ELIGIBILITY.  To be eligible for loan 
repayment assistance under the doctoral incentive loan repayment 
program, an individual must:
		(1)  be employed as a full-time faculty or 
administration member in a public or independent institution of 
higher education in this state for at least one year;
		(2)  be a Texas resident;                                              
		(3)  be from a group that is underrepresented among the 
faculty and administration of public and independent institutions 
of higher education in this state;
		(4)  have qualified for student financial aid based on 
financial need while enrolled in a graduate-level degree program; 
and
		(5)  comply with any other requirements adopted by the 
coordinating board for the effective administration of the program.
	Sec. 56.093.  ELIGIBLE LOANS.  The coordinating board may 
provide repayment assistance under the doctoral incentive loan 
repayment program for the repayment of any education loan received 
by an eligible individual through any lender.
	Sec. 56.094.  LOAN REPAYMENT ASSISTANCE.  (a)  The 
coordinating board may provide assistance in the repayment of an 
eligible loan to an eligible individual in the amounts and under the 
terms the coordinating board considers appropriate to further the 
purposes of the doctoral incentive loan repayment program and the 
best interests of this state.
	(b)  An individual may receive loan repayment assistance 
under the doctoral incentive loan repayment program in a total 
amount not to exceed $100,000.
	Sec. 56.095.  FUNDING; LIMITATION ON FUNDING.  (a)  The 
doctoral incentive loan repayment program may be funded only from a 
source provided by this section.  The total amount of loan repayment 
assistance paid under the program may not exceed the amount of money 
available for the program under this section.
	(b)  Each institution of higher education shall set aside a 
portion of the tuition collected from each student enrolled in a 
doctoral degree program, other than a law or health professional 
degree program, equal to $2 for each semester credit hour for which 
the student is enrolled.  The institution shall deliver the money 
set aside to the coordinating board in the manner and at the time 
prescribed by the coordinating board.  The coordinating board shall 
transfer the money to the comptroller to be maintained in the state 
treasury for the sole purpose of providing loan forgiveness under 
this subchapter and paying the costs of administering this 
subchapter.  The money may be used only for those purposes.
	(c)  The coordinating board may solicit and accept gifts and 
grants from any public or private source for the purposes of the 
doctoral incentive loan repayment program.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.
	SECTION 3.  (a)  The Texas Higher Education Coordinating 
Board shall award loan repayments under the doctoral incentive loan 
repayment program established under Subchapter F, Chapter 56, 
Education Code, as added by this Act, beginning with the 2004 fall 
semester.
	(b)  The Texas Higher Education Coordinating Board shall 
adopt the initial rules for awarding loans under the doctoral 
incentive loan repayment program established under Subchapter F, 
Chapter 56, Education Code, as added by this Act, as soon as 
practicable after the effective date of this Act.  The coordinating 
board may adopt those initial rules in the manner provided by law 
for emergency rules.



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