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Amend HB 3851 (Senate committee printing) by adding the 
following appropriately numbered SECTIONS to the bill and 
renumbering the subsequent SECTIONS accordingly:
	SECTION ___.  Chapter 61, Education Code, is amended by 
adding Subchapter FF to read as follows:
	SUBCHAPTER FF. TEXAS TEACH CORPS SCHOLARSHIP PROGRAM                    
	Sec. 61.9831.  SCHOLARSHIP PROGRAM; AMOUNT OF SCHOLARSHIP. 
(a)  In accordance with this subchapter and board rules, the board 
shall establish and administer the Texas Teach Corps Scholarship 
Program to award scholarships to undergraduate students who:
		(1)  are enrolled in educator preparation programs 
provided by public or private institutions of higher education in 
this state; and
		(2)  agree to teach for a specified period in the public 
schools in this state that are determined by the Texas Education 
Agency to have shortages of teachers in academic subjects.
	(b)  The amount of a scholarship under this subchapter for an 
academic year is equal to the lesser of:
		(1)  the total amount of tuition that the public or 
private institution of higher education in which the scholarship 
recipient is enrolled charges the recipient for that academic year 
for semester credit hours for which the recipient may use the 
scholarship to pay tuition as provided by Subsection (c); or
		(2)  $5,000.                                                           
	(c)  A student may use a scholarship under this subchapter 
only to pay tuition for a semester credit hour that is required for 
completion of the educator preparation program in which the student 
is enrolled.
	(d)  For purposes of this subchapter, not later than April 1 
of each school year, the Texas Education Agency shall determine 
which public schools in this state are anticipated to have 
shortages of teachers during the following school year and shall 
provide that information to the board and to each educator 
preparation program in this state accredited by the State Board for 
Educator Certification. In making the determination required by 
this subsection, the agency shall consider the availability of 
teachers for only those subjects designated by agency rule as 
academic subjects. In making those designations, the agency may not 
consider athletics, physical education, art, or music, including 
band, as academic subjects.
	Sec. 61.9832.  ELIGIBILITY; LIMITATION ON NUMBER OF 
SCHOLARSHIPS. (a)  To be eligible to receive a scholarship under 
this subchapter, a person must:
		(1)  have graduated from a high school in this state 
with an overall grade point average:
			(A)  of at least 3.0 on a four-point scale or the 
equivalent; and   
			(B)  in the top 25 percent of the student's 
graduating class;       
		(2)  be enrolled in an educator preparation program 
accredited by the State Board for Educator Certification that is 
provided by a public or private institution of higher education in 
this state; and
		(3)  enter into an agreement with the board as provided 
by Section 61.9833.
	(b)  Not more than 4,000 scholarships may be awarded under 
this subchapter for an academic year.
	(b-1)  This subsection expires September 1, 2011. 
Notwithstanding Subsection (b), not more than the following number 
of scholarships may be awarded under this subchapter for the 
specified academic year:
		(1)  for the 2008-2009 academic year, not more than 
1,000 scholarships may be awarded;
		(2)  for the 2009-2010 academic year, not more than 
2,000 scholarships may be awarded; and
		(3)  for the 2010-2011 academic year, not more than 
3,000 scholarships may be awarded.
	(c)  If in any year the amount of money available for 
scholarships under this subchapter is insufficient to award a 
scholarship to each eligible applicant or if there are more 
eligible applicants than the number of scholarships authorized by 
this section, the board shall establish criteria to determine which 
eligible applicants will be granted scholarships as the board 
determines appropriate to further the purposes of this subchapter, 
including criteria that:
		(1)  are related to the financial need of an applicant; 
and          
		(2)  serve to ensure geographic and ethnic diversity 
among scholarship recipients.
	Sec. 61.9833.  AGREEMENT REQUIREMENTS. (a)  To qualify for a 
scholarship under this subchapter, a person must enter into a 
written agreement with the board as provided by this section. The 
agreement must:
		(1)  specify the conditions the person must satisfy to 
receive the scholarship award;
		(2)  require the person to earn a baccalaureate degree 
through completion of an educator preparation program accredited by 
the State Board for Educator Certification that is provided by a 
public or private institution of higher education in this state;
		(3)  require the person to obtain, within the period 
prescribed by board rule, appropriate certification under 
Subchapter B, Chapter 21, to teach in a public school in this state;
		(4)  require the person to accept, for the first school 
year that begins after the date the person obtains the appropriate 
certification, an offer of full-time employment to teach in a 
public school in this state selected by the person from among 
schools anticipated by the Texas Education Agency to have shortages 
of teachers in academic subjects for that first school year for 
which the person is accepting employment;
		(5)  require the person to complete eight years of 
full-time employment teaching as follows:
			(A)  beginning with the school year described by 
Subdivision (4), four consecutive school years of employment 
teaching in one or more public schools in this state selected by the 
person from among schools anticipated by the Texas Education Agency 
to have shortages of teachers in academic subjects for the person's 
applicable year of employment by the school; and
			(B)  beginning with the school year immediately 
following the last of the four consecutive school years described 
by Paragraph (A), four additional consecutive school years teaching 
in any public school in this state;
		(6)  provide that any scholarship award the person 
receives under this subchapter constitutes an interest-free loan 
until the person:
			(A)  subject to Section 61.9835, satisfies the 
requirements of Subdivision (5) and any other applicable conditions 
of the agreement; or
			(B)  is excused from the repayment obligation in 
accordance with law; and
		(7)  require the person to sign a promissory note 
acknowledging the conditional nature of the scholarship award 
received and promising to repay any unforgiven amount of that award 
and reasonable collection costs if the person does not satisfy the 
applicable conditions and is not excused from the repayment 
obligation in accordance with law.
	(b)  To satisfy the teaching obligation prescribed by an 
agreement under this section, a person must teach an academic 
subject for not less than four hours each school day. For purposes 
of this subsection, an academic subject is a subject designated as 
such under Texas Education Agency rule as provided by Section 
61.9831(d).
	(c)  For purposes of Subsection (a)(5)(A), if a person is 
employed as a teacher in a public school anticipated to have a 
shortage of teachers in academic subjects in the first year of 
employment, each subsequent year of continuous employment as a 
teacher in that school is considered to be employment in a school 
anticipated to have such a shortage of teachers in that subsequent 
year, regardless of whether the Texas Education Agency anticipated 
that the school would have a shortage of teachers in that year.
	(d)  The board shall determine the terms of the promissory 
note required by Subsection (a)(7). To the extent practicable, the 
terms must be the same as those applicable to state or federally 
guaranteed student loans made at the same time.
	Sec. 61.9834.  EXCEPTIONS TO TEACHING AND REPAYMENT 
OBLIGATIONS. (a)  A person is not considered to be in violation of 
the teaching obligation in the agreement described by Section 
61.9833 during any period in which the person:
		(1)  is pursuing a full-time course of study related to 
the field of teaching offered by a public or private institution of 
higher education in this state and approved by the State Board for 
Educator Certification;
		(2)  is serving on active duty as a member of the armed 
forces of the United States, including as a member of a reserve 
force or National Guard called to active duty;
		(3)  is temporarily totally disabled for a period not 
to exceed 36 months as established by the affidavit of a qualified 
physician;
		(4)  is unable to secure employment for a period not to 
exceed 12 months because of care required by a disabled spouse or 
child;
		(5)  is seeking and unable to find, for a single period 
not to exceed 12 months, full-time employment teaching in a public 
school in this state, or if the person is within the period of the 
agreement described by Section 61.9833(a)(5)(A), full-time 
employment teaching in a public school in this state anticipated to 
have a shortage of teachers in academic subjects for the year for 
which the person is seeking employment; or
		(6)  satisfies the provisions of any other teaching 
exception adopted by the board.
	(b)  A person is excused from the repayment obligation in a 
promissory note described by Section 61.9833 if:
		(1)  the person becomes permanently totally disabled as 
established by the affidavit of a qualified physician; or
		(2)  the board waives repayment in the case of extreme 
hardship to the person.
	Sec. 61.9835.  FORGIVENESS OF REPAYMENT OBLIGATION. The 
board shall forgive 25 percent of the total amount of a person's 
scholarship awards under this subchapter for each complete school 
year the person teaches in accordance with the agreement under 
Section 61.9833 after the expiration of the period described by 
Subsection (a)(5)(A) of that section.
	Sec. 61.9836.  GRANTS, GIFTS, AND DONATIONS. In addition to 
money appropriated by the legislature, the board may solicit and 
accept grants, gifts, and donations from any public or private 
source for the purposes of this subchapter.
	Sec. 61.9837.  RULES. (a)  The board shall adopt rules to 
administer this subchapter, including rules:
		(1)  providing for the manner in which a student may 
apply for a scholarship; and
		(2)  providing for notification of the scholarship 
program under this subchapter to students enrolled in educator 
preparation programs in this state.
	(b)  The board shall distribute to each educator preparation 
program of a public or private institution of higher education in 
this state a copy of the rules adopted under this section.
	SECTION ___.  Not later than December 31, 2007, the Texas 
Higher Education Coordinating Board and the Texas Education Agency 
shall adopt rules for the Texas Teach Corps Scholarship Program 
under Subchapter FF, Chapter 61, Education Code, as added by this 
Act.