By: Kolkhorst, et al. (Senate Sponsor - Van de Putte) H.B. No. 518

(In the Senate - Received from the House May 18, 2009; May 21, 2009, read first time and referred to Committee on Finance; May 25, 2009, reported favorably by the following vote: Yeas 14, Nays 0; May 25, 2009, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to programs to provide student loan repayment assistance for certain correctional officers and for certain speech-language pathologists and audiologists.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 61, Education Code, is amended by adding Subchapter FF to read as follows:

SUBCHAPTER FF. CORRECTIONAL OFFICER LOAN REPAYMENT

ASSISTANCE PILOT PROGRAM

Sec. 61.9781. DEFINITIONS. In this subchapter:

(1) "Correctional officer" means a correctional officer employed in a confinement facility operated by the Texas Department of Criminal Justice.

(2) "Trust fund" means the correctional officer loan repayment assistance trust fund.

Sec. 61.9782. REPAYMENT AUTHORIZED. The board shall establish a pilot program to provide, using money in the trust fund and in accordance with this subchapter and rules of the board, assistance in the repayment of student loans for correctional officers who apply and qualify for the assistance.

Sec. 61.9783. ELIGIBILITY. To be eligible to receive repayment assistance, a correctional officer must:

(1) have received a baccalaureate degree from Sam Houston State University or from another general academic teaching institution that is selected to participate in the program by the board under Section 61.9789(b) if the board expands the program to include an additional general academic teaching institution;

(2) establish to the board that:

(A) the repayment assistance will be used to repay any part of a student loan received by the correctional officer to cover the officer's cost of attendance in connection with enrollment in junior-level or senior-level course work in the baccalaureate degree program at the institution;

(B) during the period of the correctional officer's enrollment at the institution as described by Paragraph (A), the officer:

(i) was employed full-time as a correctional officer in this state;

(ii) was classified as a resident of this state under Subchapter B, Chapter 54;

(iii) established financial need as determined by board rule; and

(iv) maintained good academic standing at the institution as determined by board rule; and

(C) the correctional officer has not committed an offense:

(i) under Chapter 39, Penal Code;

(ii) under Section 38.11 or 38.114, Penal Code;

(iii) under any other provision of the Penal Code in which the victim was a person in the custody of the Texas Department of Criminal Justice at the time the offense occurred; or

(iv) the elements of which are equivalent to a criminal offense under the law of another state, federal law, or the law of a foreign government;

(3) complete at least two full years of employment as a full-time correctional officer in this state not later than the second anniversary of the date of the person's graduation from the institution; and

(4) comply with any other requirements adopted by board rule under this subchapter.

Sec. 61.9784. ELIGIBLE LOANS. (a) The board may provide repayment assistance for the repayment of any student loan received by an eligible correctional officer through any lender for the cost of attendance for enrollment at Sam Houston State University or at another general academic teaching institution that is selected by the board to participate in the program under Section 61.9789(b).

(b) The board may withhold repayment assistance for a student loan that is in default at the time of the correctional officer's application.

(c) Subject to Sections 61.9785 and 61.9788, in each state fiscal biennium the board shall attempt to allocate all funds available in the trust fund for the purpose of providing repayment assistance under this subchapter.

Sec. 61.9785. REPAYMENT. (a) The board shall deliver any repayment under this subchapter in a lump sum:

(1) payable to both the lender or other holder of the loan and the correctional officer; or

(2) on the correctional officer's behalf directly to the lender or other holder of the loan.

(b) A repayment under this subchapter may be applied to any amount due in connection with the loan.

(c) The board may grant prior conditional approval to a correctional officer who completes each eligibility requirement under Section 61.9783 other than the requirement under Section 61.9783(3) and may reserve money in the trust fund for disbursement under this subchapter on the officer's completion of that requirement.

Sec. 61.9786. RULES. (a) The board shall adopt rules necessary to administer this subchapter. The board may consult with the Texas Department of Criminal Justice to assist the board in establishing priorities among eligible correctional officers for repayment assistance.

(b) The board shall distribute to Sam Houston State University, any other general academic teaching institution that is selected by the board to participate in the program under Section 61.9789(b), each public junior college, and appropriate state agencies and professional associations copies of the rules adopted under this section and other pertinent information relating to this subchapter.

Sec. 61.9787. AMOUNT OF REPAYMENT ASSISTANCE. (a) The loan repayment amount for one year of full-time employment as a correctional officer beginning two years after graduation from Sam Houston State University or from another general academic teaching institution that is selected by the board to participate in the program under Section 61.9789(b) may not exceed the cost of attendance for the officer to enroll in 30 semester credit hours of junior-level or senior-level course work at the institution, as applicable.

(b) The total amount of repayment assistance distributed by the board under this subchapter may not exceed the total amount of gifts and grants accepted by the board for repayment assistance, legislative appropriations for repayment assistance, and other funds available to the board for purposes of this subchapter.

Sec. 61.9788. TRUST FUND. (a) The board shall award repayment assistance under this subchapter from the amount available in the trust fund. The trust fund is established outside the treasury but is held in trust by the comptroller. Money in the trust fund may be spent without appropriation and only to fund the pilot program. Interest and income from the assets of the trust fund shall be credited to and deposited in the trust fund. In each state fiscal year the board may spend from the trust fund to cover the costs of administering this subchapter an amount not to exceed 2.5 percent of the total amount of money deposited into the trust fund in that fiscal year.

(b) The board may solicit and accept gifts and grants from any public or private source for the purposes of this subchapter and shall deposit a gift or grant to the credit of the trust fund.

(c) The legislature may appropriate money to the trust fund.

Sec. 61.9789. EVALUATION OF PILOT PROGRAM. (a) The board shall evaluate the effectiveness of the pilot program established under this subchapter and report the results of the evaluation to the legislature not later than December 31 of each even-numbered year.

(b) If the board determines that expansion of the program would enhance the effectiveness of the program or improve the board's ability to evaluate the program, the board by rule may expand the program to include as eligible to receive repayment assistance under Section 61.9783 a correctional officer who:

(1) received a baccalaureate degree from a general academic teaching institution other than Sam Houston State University that is located near a confinement facility operated by the Texas Department of Criminal Justice and that is selected by the board to participate in the program; and

(2) meets all other eligibility requirements prescribed by or adopted under Section 61.9783.

(c) If the board by rule expands the program under Subsection (b) to include graduates of one or more other general academic teaching institutions, the board shall include in the report under Subsection (a) information regarding the effectiveness of the expansion and the name of each additional general academic teaching institution selected to participate in the program.

Sec. 61.9790. TERMINATION OF PILOT PROGRAM. The board may not award repayment assistance under this subchapter to pay the costs of enrollment in an academic year after the 2015-2016 academic year. On January 1, 2019, the trust fund is abolished and any amount remaining in the trust fund shall be transferred to the general revenue fund.

SECTION 2. Chapter 61, Education Code, is amended by adding Subchapter GG to read as follows:

SUBCHAPTER GG. REPAYMENT OF CERTAIN SPEECH-LANGUAGE PATHOLOGIST

AND AUDIOLOGIST EDUCATION LOANS

Sec. 61.9801. DEFINITIONS. In this subchapter:

(1) "Audiologist" means a person licensed as an audiologist under Chapter 401, Occupations Code.

(2) "Communicative disorders program" means a graduate degree program in audiology or speech-language pathology accredited by the Council on Academic Accreditation in Audiology and Speech-Language Pathology.

(3) "Public school" means a public preschool or primary or secondary school in this state.

(4) "Speech-language pathologist" means a person licensed as a speech-language pathologist under Chapter 401, Occupations Code.

Sec. 61.9802. REPAYMENT ASSISTANCE AUTHORIZED. The board shall provide, in accordance with this subchapter and board rules, assistance in the repayment of student loans for speech-language pathologists and audiologists who apply and qualify for assistance.

Sec. 61.9803. ELIGIBILITY. (a) To be eligible to receive repayment assistance, a speech-language pathologist or an audiologist must:

(1) apply to the board; and

(2) at the time the speech-language pathologist or audiologist applies for the assistance:

(A) have been employed as a speech-language pathologist or as an audiologist, as applicable, for at least one year by, and be currently employed full-time in that capacity by, a public school; or

(B) have been employed as a faculty member of a communicative disorders program at an institution of higher education for at least one year, and be currently employed full-time in that capacity at such an institution.

(b) The board by rule may provide for repayment assistance on a pro rata basis for speech-language pathologists and audiologists employed part-time by a public school or institution of higher education.

Sec. 61.9804. LIMITATION. (a) On qualifying for the assistance, a speech-language pathologist or an audiologist may receive repayment assistance grants for each year of employment, not to exceed five years, by:

(1) a public school; or

(2) a communicative disorders program at an institution of higher education.

(b) The amount of repayment assistance grants that a speech-language pathologist or an audiologist may receive for each year of employment by a public school or a communicative disorders program at an institution of higher education may not exceed 20 percent of the speech-language pathologist's or audiologist's total principal amount of student loans.

(c) The total amount of repayment assistance grants received by a speech-language pathologist or an audiologist under this subchapter may not exceed $30,000 for an eligible recipient who holds a master's degree but not a doctoral degree, or $45,000 for an eligible recipient who holds a doctoral degree.

Sec. 61.9805. ELIGIBLE LOANS. (a) The board may provide repayment assistance for the repayment of any student loan for education at an institution of higher education, including loans for undergraduate education, received by a speech-language pathologist or an audiologist through any lender.

(b) The board may not provide repayment assistance for a student loan that is in default at the time of the speech-language pathologist's or audiologist's application.

(c) Each state fiscal biennium, the board shall attempt to provide repayment assistance in amounts sufficient to use all the money appropriated to the board for that biennium for the purpose of providing repayment assistance under this subchapter.

Sec. 61.9806. REPAYMENT. (a) The board shall deliver any repayment made under this subchapter in a lump sum payable to the lender and the speech-language pathologist or audiologist, in accordance with any applicable federal law.

(b) A repayment made under this subchapter may be applied only to the principal amount of the loan.

Sec. 61.9807. ADVISORY COMMITTEES. The board may appoint advisory committees to assist the board in administering this subchapter.

Sec. 61.9808. ACCEPTANCE OF GIFTS. The board may accept gifts, grants, and donations for the purposes of this subchapter.

Sec. 61.9809. RULES. (a) The board shall adopt rules necessary for the administration of this subchapter.

(b) The board shall distribute a copy of the rules adopted under this section and pertinent information regarding this subchapter to:

(1) each institution of higher education;

(2) any appropriate state agency; and

(3) any appropriate professional association.

SECTION 3. The Texas Higher Education Coordinating Board shall adopt the rules for repayment assistance under Subchapter FF, Chapter 61, Education Code, as added by this Act, not later than December 1, 2009.

SECTION 4. 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, 2009.

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