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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation and administration of the professional  | 
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nurse graduate education scholarship program. | 
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
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       SECTION 1.  Chapter 61, Education Code, is amended by adding  | 
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Subchapter FF to read as follows: | 
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SUBCHAPTER FF. PROFESSIONAL | 
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NURSE GRADUATE EDUCATION SCHOLARSHIP PROGRAM | 
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       Sec. 61.9831.  DEFINITIONS.  In this subchapter: | 
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             (1)  "Graduate professional nursing program" means an  | 
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educational program: | 
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                   (A)  of a public or private institution of higher  | 
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education in this state; | 
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                   (B)  that leads to a master's or doctoral degree  | 
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in nursing; and | 
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                   (C)  that is approved by the board or the Board of  | 
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Nurse Examiners. | 
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             (2)  "Professional nursing" has the meaning assigned by  | 
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Section 301.002, Occupations Code. | 
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             (3)  "Undergraduate professional nursing program"  | 
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means an educational program: | 
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                   (A)  of a public or private institution of higher  | 
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education in this state; | 
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                   (B)  that prepares students for initial licensure  | 
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as registered nurses; and | 
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                   (C)  that is approved by the board or the Board of  | 
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Nurse Examiners. | 
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       Sec. 61.9832.  SCHOLARSHIP PROGRAM; AMOUNT OF SCHOLARSHIP.   | 
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(a)  In accordance with this subchapter and board rules, the board  | 
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shall establish and administer a program to award scholarships to  | 
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students who: | 
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             (1)  are enrolled in graduate professional nursing  | 
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programs; and | 
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             (2)  agree to be employed to teach in undergraduate or  | 
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graduate professional nursing programs for a specified period. | 
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       (b)  The amount of a scholarship under this subchapter for an  | 
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academic year is equal to the lesser of: | 
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             (1)  $20,000; or | 
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             (2)  the total amount of tuition and mandatory fees  | 
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that the institution that offers the graduate professional nursing  | 
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program in which the scholarship recipient is enrolled charges the  | 
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recipient for that academic year for semester credit hours for  | 
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which the recipient may use the scholarship as provided by  | 
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Subsection (c). | 
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       (c)  A student may use a scholarship under this subchapter  | 
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only to pay tuition and mandatory fees for a semester credit hour  | 
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that is required for completion of the degree program in which the  | 
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student is enrolled. | 
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       Sec. 61.9833.  ELIGIBILITY.  (a)  To be eligible to receive a  | 
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scholarship under this subchapter, a person must: | 
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             (1)  be enrolled in a graduate professional nursing  | 
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program; and | 
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             (2)  enter into an agreement with the board as provided  | 
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by Section 61.9834. | 
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       (b)  If in any year the amount of money available for  | 
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scholarships under this subchapter is insufficient to award a  | 
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scholarship to each eligible applicant or if there are more  | 
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eligible applicants than the number of scholarships authorized by  | 
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this section, the board shall establish criteria to determine which  | 
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eligible applicants will be granted scholarships as the board  | 
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determines appropriate to further the purposes of this subchapter. | 
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       Sec. 61.9834.  AGREEMENT REQUIREMENTS.  (a)  To qualify for a  | 
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scholarship under this subchapter, a person must enter into a  | 
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written agreement with the board as provided by this section.  The  | 
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agreement must: | 
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             (1)  specify the conditions the person must satisfy to  | 
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receive the scholarship award in any academic year the person is  | 
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enrolled in the graduate professional nursing program; | 
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             (2)  require the person to remain continuously enrolled  | 
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in a graduate professional nursing program; | 
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             (3)  require the person to earn a master's or doctoral  | 
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degree through completion of a graduate professional nursing  | 
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program; | 
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             (4)  require the person to accept, not later than the  | 
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first anniversary of the date the person earns a degree described by  | 
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Subdivision (3), an offer of full-time employment to teach in an  | 
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undergraduate or graduate professional nursing program; | 
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             (5)  beginning on the date the person first becomes  | 
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employed as described by Subdivision (4), require the person to  | 
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complete five consecutive academic years of that full-time  | 
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employment; | 
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             (6)  provide that any scholarship award the person  | 
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receives under this subchapter constitutes a loan until the person: | 
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                   (A)  subject to Section 61.9835, satisfies the  | 
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requirements of Subdivision (5) and any other applicable conditions  | 
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of the agreement; or | 
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                   (B)  is excused from the repayment obligation in  | 
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accordance with law; and | 
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             (7)  require the person to sign a promissory note  | 
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acknowledging the conditional nature of the scholarship award  | 
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received and promising to repay any unforgiven amount of that award  | 
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plus applicable interest and reasonable collection costs if the  | 
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person does not satisfy the applicable conditions and is not  | 
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excused from the repayment obligation in accordance with law. | 
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       (b)  The board shall determine the terms of the promissory  | 
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note required by Subsection (a)(7).  To the extent practicable, the  | 
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terms must be the same as those applicable to state or federally  | 
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guaranteed student loans made at the same time. | 
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       Sec. 61.9835.  EXCEPTIONS TO SCHOLARSHIP OBLIGATIONS.  (a)   | 
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A person is not considered to be in violation of the continuous  | 
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enrollment obligations in the agreement described by Section  | 
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61.9834 if the person is unable to remain continuously enrolled in  | 
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the person's degree program, remain continuously employed as  | 
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required by Section 61.9834(a)(5), or to satisfy any other  | 
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condition specified by the board solely because of a hardship or  | 
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other good cause, as determined by the board, including for a reason  | 
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specified by Subsection (b)(2) or (3). | 
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       (b)  A person is not considered to be in violation of the  | 
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employment obligation in the agreement described by Section 61.9834  | 
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during any period in which the person: | 
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             (1)  is pursuing a full-time course of study: | 
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                   (A)  related to the field of professional nursing; | 
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                   (B)  offered by a public or private institution of  | 
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higher education in this state; and | 
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                   (C)  approved by the appropriate licensing or  | 
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higher education authority; | 
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             (2)  is serving on active duty as a member of the armed  | 
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forces of the United States, including as a member of a reserve  | 
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force or National Guard called to active duty; | 
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             (3)  is temporarily totally disabled for a period not  | 
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to exceed 36 months as established by the affidavit of a qualified  | 
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physician; | 
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             (4)  is unable to secure employment for a period not to  | 
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exceed 12 months because of care required by a disabled spouse or  | 
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child; | 
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             (5)  is seeking and unable to find, for a single period  | 
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not to exceed 12 months, full-time employment in the applicable  | 
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field;  or | 
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             (6)  satisfies the provisions of any other employment  | 
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exception adopted by the board. | 
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       (c)  A person is excused from the repayment obligation in a  | 
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promissory note described by Section 61.9834 if: | 
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             (1)  the person becomes permanently totally disabled as  | 
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established by the affidavit of a qualified physician; or | 
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             (2)  the board waives repayment in the case of extreme  | 
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hardship to the person. | 
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       Sec. 61.9836.  FORGIVENESS OF REPAYMENT OBLIGATION.  The  | 
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board shall forgive 20 percent of the total amount required to be  | 
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repaid according to the promissory note under Section 61.9834(7)  | 
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for each complete academic year the person teaches in an  | 
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undergraduate or graduate professional nursing program in  | 
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accordance with the agreement under Section 61.9834 after earning a  | 
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degree as required by Subsection (a)(3) of that section. | 
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       Sec. 61.9837.  GRANTS, GIFTS, AND DONATIONS.  In addition to  | 
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money appropriated by the legislature, the board may solicit and  | 
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accept grants, gifts, and donations from any public or private  | 
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source for the purposes of this subchapter. | 
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       Sec. 61.9838.  RULES.  (a)  The board shall adopt rules to  | 
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administer this subchapter, including rules: | 
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             (1)  providing for the manner in which a student may  | 
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apply for a scholarship; and | 
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             (2)  providing for notification of the scholarship  | 
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program under this subchapter to students enrolled in an  | 
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undergraduate or graduate professional nursing program. | 
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       (b)  The board shall distribute a copy of the rules adopted  | 
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under this section to each undergraduate or graduate professional  | 
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nursing program. | 
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       Sec. 61.9839.  REPORT.  As part of the biennial report  | 
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required by Section 61.051(a-3), the board shall include  | 
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information for the preceding biennium concerning: | 
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             (1)  the number of scholarships awarded under this  | 
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subchapter; | 
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             (2)  the amount and sources of funds used to award the  | 
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scholarships; and | 
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             (3)  any other program information that the board  | 
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determines would be helpful to the legislature. | 
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       SECTION 2.  Not later than December 31, 2007, the Texas  | 
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Higher Education Coordinating Board shall adopt rules for the  | 
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professional nurse graduate education scholarship program under  | 
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Subchapter FF, Chapter 61, Education Code, as added by this Act. | 
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       SECTION 3.  This Act takes effect immediately if it receives  | 
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a vote of two-thirds of all the members elected to each house, as  | 
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provided by Section 39, Article III, Texas Constitution.  If this  | 
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Act does not receive the vote necessary for immediate effect, this  | 
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Act takes effect September 1, 2007. |