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	Amend SB 132 (Senate Engrossment) as follows:                                  
	(1)  In SECTION 2 of the bill, strike amended Paragraph (B), 
Subdivision (1), Subsection (a), Section 61.9623, Education Code 
(page 2, lines 14-16), and substitute "(B) nursing faculty 
enhancement in accordance with Section 61.96231 [assuring the 
retention of an adequate number of qualified faculty, including 
providing faculty salaries];[or]".
	(2)  In SECTION 3 of the bill, in amended Section 61.9624, 
Education Code (page 3, line 21), strike "Sections 
61.9623(a)(1)(A), [and] B, and (D)" and substitute "Sections 
61.9623(a)(1)(A) and (D) [B]".
	(3)  Add the following appropriately numbered new SECTIONS 
to the bill and renumber subsequent SECTIONS of the bill 
accordingly:
	SECTION ___.  Subchapter D, Chapter 54, Education Code, is 
amended by adding Sections 54.221 and 54.222 to read as follows:
	Sec. 54.221.  CHILDREN OF PROFESSIONAL NURSING PROGRAM 
FACULTY.  (a)  In this section:
		(1)  "Child" means a child of any age, including an 
adult child.  The term includes an adopted child.
		(2)  "Graduate professional nursing program" means an 
educational program of a public or private institution of higher 
education that prepares students for a master's or doctoral degree 
in nursing.
		(3)  "Undergraduate professional nursing program" 
means a public or private educational program for preparing 
students for initial licensure as registered nurses.
	(b)  The governing board of an institution of higher 
education shall exempt from the payment of tuition a resident of 
this state enrolled as an undergraduate student at the institution 
who is a child of a person who, at the beginning of the semester or 
other academic term for which an exemption is sought, holds a 
master's or doctoral degree in nursing, if not employed or under 
contract as a teaching assistant under Subdivision (1) or (2), or a 
baccalaureate degree in nursing, if employed or under contract as a 
teaching assistant under Subdivision (1) or (2), and:
		(1)  is employed by an undergraduate or graduate 
professional nursing program in this state as a full-time member of 
its faculty or staff with duties that include teaching, serving as a 
teaching assistant, performing research, serving as an 
administrator, or performing other professional services; or
		(2)  has contracted with an undergraduate or graduate 
professional nursing program in this state to serve as a full-time 
member of its faculty or staff to perform duties described by 
Subdivision (1) during all or part of the semester or other academic 
term for which an exemption is sought or, if the child is enrolled 
for a summer session, during all or part of that session or for the 
next academic year.
	(c)  A child who would qualify for an exemption under this 
section but for the fact that the child's parent is not employed 
full-time is eligible for an exemption on a pro rata basis equal to 
the percentage of full-time employment the parent is employed, 
except that a parent employed for less than 25 percent of full-time 
employment is considered to be employed for 25 percent of full-time 
employment.
	(d)  A person is not eligible for an exemption under this 
section if the person:
		(1)  has previously received an exemption under this 
section for 10 semesters or summer sessions at any institution or 
institutions of higher education; or
		(2)  has received a baccalaureate degree.                              
	(e)  For purposes of Subsection (d), a summer session that is 
less than nine weeks in duration is considered one-half of a summer 
session.
	(f)  A person attending an institution of higher education 
who becomes eligible to receive an exemption from tuition under 
this section is eligible for a refund of the amount of money that 
the person paid to any institution of higher education for tuition 
as a resident student in the three-year period preceding the 
beginning of the first semester or other academic term for which the 
person receives the exemption.
	(g)  To receive a refund under Subsection (f), the person 
must apply to the institution from which the refund is sought before 
the first anniversary of the date the person becomes eligible for 
the refund.  The institution shall pay the refund from any available 
funds of the institution.
	(h)  The Texas Higher Education Coordinating Board shall 
adopt:       
		(1)  rules governing the granting or denial of an 
exemption under this section, including rules relating to the 
determination of eligibility for an exemption or for a refund of 
previously paid tuition; and
		(2)  a uniform application form for an exemption under 
this section. 
	Sec. 54.222.  PRECEPTORS FOR PROFESSIONAL NURSING EDUCATION 
PROGRAMS.  (a)  In this section, "child" and "undergraduate 
professional nursing program" have the meanings assigned by Section 
54.221.
	(b)  The governing board of an institution of higher 
education shall exempt from the payment of $500 of the total amount 
of tuition a resident of this state enrolled as a student at the 
institution who:
		(1)  is a registered nurse; and                                        
		(2)  is serving under a written preceptor agreement 
with an undergraduate professional nursing program as a clinical 
preceptor for students enrolled in the program for the semester or 
other academic term for which the exemption is sought.
	(c)  The governing board of an institution of higher 
education shall exempt from the payment of $500 of the total amount 
of tuition a resident of this state enrolled as an undergraduate 
student at the institution who is a child of a person who meets the 
requirements of Subsections (b)(1) and (2).
	(d)  Notwithstanding Subsections (b) and (c), if a person 
eligible for an exemption under this section owes less than $500 in 
tuition, the governing board of the institution of higher education 
in which the person is enrolled shall exempt the person from the 
payment of only the amount of tuition the person owes.
	(e)  A person is not eligible for an exemption under 
Subsection (c) if the person:
		(1)  has previously received an exemption under this 
section for 10 semesters or summer sessions at any institution or 
institutions of higher education; or
		(2)  has received a baccalaureate degree.                              
	(f)  For purposes of Subsection (e), a summer session that is 
less than nine weeks in duration is considered one-half of a summer 
session.
	(g)  The Texas Higher Education Coordinating Board shall 
adopt:       
		(1)  rules governing the granting or denial of an 
exemption under this section, including rules relating to the 
determination of eligibility for an exemption; and
		(2)  a uniform application form for an exemption under 
this section. 
	SECTION ___.  Subchapter Z, Chapter 61, Education Code, is 
amended by adding Section 61.96231 to read as follows:
	Sec. 61.96231.  NURSING FACULTY ENHANCEMENT GRANTS.  (a)  
Under the professional nursing shortage reduction program, the 
board may award nursing faculty enhancement grants to professional 
nursing programs to assist the programs in the education, 
recruitment, and retention of a sufficient number of faculty 
members to enable the programs to enroll a sufficient number of 
students to meet the state's need for registered nurses.
	(b)  A grant awarded under this section may be used only for 
the purposes specified by Subsection (a), including providing 
salary supplements and enhancements and reducing the number of 
hours a faculty member must teach.
	(c)  In awarding a grant under this section, the board may 
require matching funds from a professional nursing program or may 
give preference in awarding a grant to a program providing matching 
funds.
	(d)  The board may appoint an advisory committee to advise 
the board on successful strategies, in addition to the grants 
awarded under this section, for educating, recruiting, and 
retaining qualified professional nursing program faculty members 
who hold master's or doctoral degrees.
	SECTION ___.  Section 824.602(a), Government Code, is 
amended to read as follows:
	(a)  Subject to Section 825.506, the retirement system may 
not, under Section 824.601, withhold a monthly benefit payment if 
the retiree is employed in a Texas public educational institution:
		(1)  as a substitute only with pay not more than the 
daily rate of substitute pay established by the employer and, if the 
retiree is a disability retiree, the employment has not exceeded a 
total of 90 days in the school year;
		(2)  in a position, other than as a substitute, on no 
more than a one-half time basis for the month;
		(3)  in one or more positions on as much as a full-time 
basis, if the work occurs in not more than six months of a school 
year that begins after the retiree's effective date of retirement;
		(4)  in a position, other than as a substitute, on no 
more than a one-half time basis for no more than 90 days in the 
school year, if the retiree is a disability retiree;
		(5)  in a position as a classroom teacher on as much as 
a full-time basis, if the retiree has retired under Section 
824.202(a), is certified under Subchapter B, Chapter 21, Education 
Code, to teach the subjects assigned, is teaching in an acute 
shortage area as determined by the board of trustees of a school 
district as provided by Subsection (m), and has been separated from 
service with all public schools for at least 12 months;
		(6)  in a position as a principal, including as an 
assistant principal, on as much as a full-time basis, if the retiree 
has retired under Section 824.202(a) without reduction for 
retirement at an early age, is certified under Subchapter B, 
Chapter 21, Education Code, to serve as a principal, and has been 
separated from service with all public schools for at least 12 
months; [or]
		(7)  as a bus driver for a school district on as much as 
a full-time basis, if the retiree has retired under Section 
824.202(a); or
		(8)  as a faculty member, during the period beginning 
with the 2005 fall semester and ending on the last day of the 2015 
spring semester, in an undergraduate professional nursing program 
or graduate professional nursing program, as defined by Section 
54.221, Education Code.
	SECTION ___.  Subchapter B, Chapter 1372, Government Code, 
is amended by adding Section 1372.0223 to read as follows:
	Sec. 1372.0223.  DEDICATION OF PORTION OF STATE CEILING FOR 
PROFESSIONAL NURSING PROGRAM FACULTY MEMBER HOME LOAN PROGRAM.  
Until August 1, out of that portion of the state ceiling that is 
available exclusively for reservations by issuers of qualified 
mortgage bonds under Section 1372.022, $5 million shall be allotted 
each year and made available exclusively to the Texas State 
Affordable Housing Corporation for the purpose of issuing qualified 
mortgage bonds in connection with the professional nursing program 
faculty member home loan program established under Section 
2306.5622.
	SECTION ___.  (a)  This section takes effect only if the Act 
of the 79th Legislature, Regular Session, 2005, relating to the 
nonsubstantive additions to and corrections in enacted codes (the 
general code update bill) is enacted and becomes law.
	(b)  Section 2306.553(a), Government Code, is amended to 
read as follows:    
	(a)  The public purpose of the corporation is to perform 
activities and services that the corporation's board of directors 
determines will promote the public health, safety, and welfare 
through the provision of adequate, safe, and sanitary housing 
primarily for individuals and families of low, very low, and 
extremely low income, for professional educators under the 
professional educators home loan program as provided by Section 
2306.562, [and] for fire fighters and police officers under the 
fire fighter and police officer home loan program as provided by 
Section 2306.5621, and for professional nursing program faculty 
members under the professional nursing program faculty member home 
loan program as provided by Section 2306.5622 [2306.563].  The 
activities and services shall include engaging in mortgage banking 
activities and lending transactions and acquiring, holding, 
selling, or leasing real or personal property.
	SECTION ___.  (a)  This section takes effect only if the Act 
of the 79th Legislature, Regular Session, 2005, relating to 
nonsubstantive additions to and corrections in enacted codes (the 
general code update bill) does not become law.
	(b)  Section 2306.553(a), Government Code, is amended to 
read as follows:    
	(a)  The public purpose of the corporation is to perform 
activities and services that the corporation's board of directors 
determines will promote the public health, safety, and welfare 
through the provision of adequate, safe, and sanitary housing 
primarily for individuals and families of low, very low, and 
extremely low income, for professional educators under the 
professional educators home loan program as provided by Section 
2306.562, [and] for fire fighters and police officers under the 
fire fighter and police officer home loan program as provided by 
Section 2306.563, and for professional nursing program faculty 
members under the professional nursing program faculty member home 
loan program as provided by Section 2306.5622.  The activities and 
services shall include engaging in mortgage banking activities and 
lending transactions and acquiring, holding, selling, or leasing 
real or personal property.
	SECTION ___.  Section 2306.553(b), Government Code, is 
amended to read as follows:
	(b)  The corporation's primary public purpose is to 
facilitate the provision of housing by issuing qualified 501(c)(3) 
bonds and qualified residential rental project bonds and by making 
affordable loans to individuals and families of low, very low, and 
extremely low income, to professional educators under the 
professional educators home loan program, [and] to fire fighters 
and police officers under the fire fighter and police officer home 
loan program, and to professional nursing program faculty members 
under the professional nursing program faculty member home loan 
program.  The corporation may make first lien, single family 
purchase money mortgage loans for single family homes only to 
individuals and families of low, very low, and extremely low income 
if the individual's or family's household income is not more than 
the greater of 60 percent of the median income for the state, as 
defined by the United States Department of Housing and Urban 
Development, or 60 percent of the area median family income, 
adjusted for family size, as defined by that department.  The 
corporation may make loans for multifamily developments if:
		(1)  at least 40 percent of the units in a multifamily 
development are affordable to individuals and families with incomes 
at or below 60 percent of the median family income, adjusted for 
family size; or
		(2)  at least 20 percent of the units in a multifamily 
development are affordable to individuals and families with incomes 
at or below 50 percent of the median family income, adjusted for 
family size.
	SECTION ___.  Subchapter Y, Chapter 2306, Government Code, 
is amended by adding Section 2306.5622 to read as follows:
	Sec. 2306.5622.  PROFESSIONAL NURSING PROGRAM FACULTY 
MEMBER HOME LOAN PROGRAM.  (a)  In this section:
		(1)  "Graduate professional nursing program" and 
"undergraduate professional nursing program" have the meanings 
assigned by Section 54.221, Education Code.
		(2)  "Home" means a dwelling in this state in which a 
professional nursing program faculty member intends to reside as 
the faculty member's principal residence.
		(3)  "Mortgage lender" has the meaning assigned by 
Section 2306.004. 
		(4)  "Professional nursing program faculty member" 
means a full-time member of the faculty of either an undergraduate 
or graduate professional nursing program.
		(5)  "Program" means the professional nursing program 
faculty member home loan program.
	(b)  The corporation shall establish a program to provide 
eligible professional nursing program faculty members with 
low-interest home mortgage loans.
	(c)  To be eligible for a loan under this section, at the time 
a person files an application for the loan, the person must:
		(1)  be a faculty member of an undergraduate or 
graduate professional nursing program;
		(2)  reside in this state; and                                         
		(3)  have an income of not more than 115 percent of area 
median family income, adjusted for family size.
	(d)  The corporation may contract with other agencies of the 
state or with private entities to determine whether applicants 
qualify as professional nursing program faculty members under this 
section or otherwise to administer all or part of this section.
	(e)  The board of directors of the corporation may set and 
collect from each applicant any fees the board considers reasonable 
and necessary to cover the expenses of administering the program.
	(f)  The board of directors of the corporation shall adopt 
rules governing:
		(1)  the administration of the program;                                
		(2)  the making of loans under the program;                            
		(3)  the criteria for approving mortgage lenders;                      
		(4)  the use of insurance on the loans and the homes 
financed under the program, as considered appropriate by the board 
to provide additional security for the loans;
		(5)  the verification of occupancy of the home by the 
professional nursing program faculty member as the professional 
nursing program faculty member's principal residence; and
		(6)  the terms of any contract made with any mortgage 
lender for processing, originating, servicing, or administering 
the loans.
	(g)  The corporation shall ensure that a loan under this 
section is structured in a way that complies with any requirements 
associated with the source of the funds used for the loan.
	(h)  In addition to funds set aside for the program under 
Section 1372.0223, the corporation may solicit and accept funding 
for the program from the following sources:
		(1)  gifts and grants for the purposes of this section;                
		(2)  available money in the housing trust fund 
established under Section 2306.201, to the extent available to the 
corporation;
		(3)  federal block grants that may be used for the 
purposes of this section, to the extent available to the 
corporation;
		(4)  other state or federal programs that provide money 
that may be used for the purposes of this section; and
		(5)  amounts received by the corporation in repayment 
of loans made under this section.
	(i)  This section expires September 1, 2016.                            
	SECTION ___.  (a)  Except as provided by Subsection (b) of 
this section, Sections 54.221 and 54.222, Education Code, as added 
by this Act, take effect beginning with the 2006 fall semester.
	(b)  Not later than January 1, 2006, the Texas Higher 
Education Coordinating Board shall adopt rules and forms relating 
to tuition exemptions under Sections 54.221 and 54.222, Education 
Code, as added by this Act.
	SECTION ___.  The change in law made by this Act to Section 
61.9623(a), Education Code, applies only to expenditure of grant 
money under that section after this Act takes effect.  Expenditure 
of grant money under that section before this Act takes effect is 
governed by the law in effect at the time grant money was spent, and 
that law is continued in effect for that purpose.
	SECTION ___.  The change in law made by this Act to Section 
824.602, Government Code, applies beginning with the 2005 fall 
semester.
	SECTION ___.  The Texas State Affordable Housing Corporation 
shall:          
		(1)  aggressively pursue funding for the professional 
nursing school faculty member home loan program required by Section 
2306.5622, Government Code, as added by this Act; and
		(2)  implement the professional nursing school faculty 
member home loan program required by that section not later than 
September 1, 2005, or as soon thereafter as practicable.