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A BILL TO BE ENTITLED
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AN ACT
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relating to student loan repayment assistance for certain state |
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employees. |
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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. STATE EMPLOYEE LOAN REPAYMENT ASSISTANCE PROGRAM |
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Sec. 61.9781. REPAYMENT AUTHORIZED. The board shall |
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establish a program to provide, using funds appropriated for that |
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purpose and in accordance with this subchapter and rules of the |
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board, assistance in the repayment of student loans for full-time |
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state employees who apply and qualify for the assistance. |
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Sec. 61.9782. ELIGIBILITY. To be eligible to receive |
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repayment assistance, a person: |
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(1) must apply for the assistance in the manner |
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prescribed by the board; |
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(2) must be currently employed full-time by this state |
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or an agency of this state; |
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(3) must enter into a written agreement with the board |
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under which the person: |
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(A) agrees to a continuous five-year state |
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employment obligation; and |
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(B) acknowledges the conditional nature of the |
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repayment assistance; |
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(4) may not be receiving loan repayment assistance |
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from any other source; and |
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(5) must comply with any other requirements adopted by |
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board rule under this subchapter. |
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Sec. 61.9783. EXCEPTION TO CONSECUTIVE YEARS OF EMPLOYMENT |
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REQUIREMENT. The board shall excuse an otherwise eligible person |
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from the requirement imposed by Section 61.9782(3)(A) that the |
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employment be performed in consecutive years if the break in |
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employment is a result of the person's: |
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(1) service on active duty as a member of the armed |
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forces of the United States; |
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(2) temporary total disability for a period of not |
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more than 36 months as established by the affidavit of a qualified |
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physician; |
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(3) inability to maintain the person's full-time |
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employment for a period not to exceed 12 months because the person |
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is caring for the person's disabled spouse or child; or |
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(4) satisfaction of the provisions of any other |
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exception adopted by the board for purposes of this section. |
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Sec. 61.9784. ELIGIBLE LOANS. (a) The board may provide |
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repayment assistance for the repayment of any student loan for |
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education at an institution of higher education or a private or |
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independent institution of higher education in this state, |
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including loans for undergraduate education, received by an |
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eligible person through any lender. |
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(b) The board may not provide repayment assistance for a |
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student loan that is in default at the time of the person's |
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application. |
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(c) In each state fiscal biennium, the board shall attempt |
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to use for loan repayment assistance under this subchapter all |
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funds appropriated to the board for that purpose. |
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Sec. 61.9785. REPAYMENT. (a) For the first year of state |
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employment for which a person is eligible to receive repayment |
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assistance under this subchapter and each following consecutive |
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year of state employment, as described by Section 61.9782(3)(A), |
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not to exceed a total of five years, the board shall provide |
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assistance for the repayment of a portion of an eligible person's |
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eligible loans. The board shall reduce the amount of a single |
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assistance payment or refrain from making an assistance payment to |
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an eligible person as necessary to avoid making total payments |
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under this section to the person in an amount greater than the total |
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amount of principal and interest due on the person's eligible |
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loans. |
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(b) The board shall deliver any repayment under this |
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subchapter in a lump sum: |
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(1) payable to both the state employee and the lender |
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or other holder of the affected loan; or |
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(2) delivered on the state employee's behalf directly |
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to the lender or other holder of the loan. |
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(c) A repayment under this subchapter may be applied to any |
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amount due in connection with the loan. |
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Sec. 61.9786. AMOUNT OF REPAYMENT ASSISTANCE. The total |
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amount of repayment assistance distributed by the board under this |
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subchapter may not exceed the total amount of gifts and grants |
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accepted by the board for repayment assistance, legislative |
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appropriations for repayment assistance, and other funds available |
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to the board for purposes of this subchapter. |
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Sec. 61.9787. RULES. (a) The board shall adopt rules |
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necessary to administer this subchapter. |
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(b) The board shall distribute to each state agency copies |
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of the rules adopted under this section and other pertinent |
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information relating to this subchapter. |
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Sec. 61.9788. SOLICITATION AND ACCEPTANCE OF FUNDS. The |
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board may solicit and accept gifts and grants from any public or |
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private source for the purposes of this subchapter. |
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SECTION 2. The Texas Higher Education Coordinating Board |
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shall adopt the rules for repayment assistance under Subchapter FF, |
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Chapter 61, Education Code, as added by this Act, not later than |
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December 1, 2009. |
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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, 2009. |