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A BILL TO BE ENTITLED
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AN ACT
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relating to a student loan repayment assistance program for certain |
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full-time peace officers in this state. |
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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 NN to read as follows: |
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SUBCHAPTER NN. PEACE OFFICER LOAN REPAYMENT ASSISTANCE PROGRAM |
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Sec. 61.9951. DEFINITION. In this subchapter, "peace |
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officer" has the meaning assigned by Article 2.12, Code of Criminal |
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Procedure. |
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Sec. 61.9952. LOAN REPAYMENT ASSISTANCE AUTHORIZED; |
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PURPOSE. The board shall establish and administer a program to |
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provide, in accordance with this subchapter and board rules, loan |
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repayment assistance in the repayment of eligible loans for |
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eligible persons who agree to continued employment as full-time |
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peace officers in this state for a specified period. |
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Sec. 61.9953. INITIAL ELIGIBILITY. To be eligible to |
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receive loan repayment assistance under this subchapter for the |
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first year for which the person seeks loan repayment assistance, a |
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person must: |
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(1) be initially employed as a peace officer on or |
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after September 1, 2019; |
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(2) submit to the board an initial application for the |
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loan repayment assistance, in the manner and on a form prescribed by |
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board rule, that requires: |
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(A) employer verification of the person's |
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employment as a full-time peace officer in this state for at least |
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one year and the person's current employment as a peace officer in |
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this state as of the date of the application; |
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(B) a transcript of the person's postsecondary |
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course work; and |
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(C) a statement of the total amount of principal, |
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accrued interest, fees, and other charges due on all outstanding |
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eligible loans for which the person is applying for repayment |
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assistance; |
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(3) have earned at least 60 semester credit hours or |
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the equivalent at an institution of higher education or a private or |
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independent institution of higher education before the person's |
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initial employment as a peace officer; |
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(4) be currently employed, and have completed at least |
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one year of employment, as a full-time peace officer in this state; |
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and |
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(5) comply with any other requirement adopted by the |
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board under this subchapter. |
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Sec. 61.9954. CONTINUING ELIGIBILITY. (a) Except as |
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provided by Subsection (b), after initially qualifying for loan |
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repayment assistance under Section 61.9953, a person may continue |
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to receive loan repayment assistance in a subsequent year only if |
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the person annually submits an application, in the manner and on a |
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form prescribed by board rule, that requires employer verification |
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of the person's continuous employment as a full-time peace officer |
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in this state for the year ending immediately before the date the |
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application is submitted under this section. |
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(b) A person may not receive loan repayment assistance under |
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this subchapter for more than five years. |
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Sec. 61.9955. AWARD. (a) Except as provided by this |
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section, an eligible person is entitled to receive an annual amount |
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of loan repayment assistance payments under this subchapter payable |
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to the holders of the eligible person's eligible loans for each year |
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of eligibility approved by the board under Section 61.9953 or |
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61.9954 in an amount equal to the lesser of $4,000 or 20 percent of |
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the total amount stated in the person's application under Section |
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61.9953, subject to the amount of available funding. |
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(b) If at the time an eligible person submits an initial |
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application under Section 61.9953 the payoff period for the |
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person's total outstanding balance of eligible loans is less than |
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five years, the board shall make annual payments under this |
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subchapter to the holders of the person's eligible loans in the |
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amounts of the payments and accrued interest due for the applicable |
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year. |
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(c) The total amount of repayment assistance provided under |
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this subchapter to an eligible person may not exceed $20,000. |
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(d) If in any year the amount of money available for loan |
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repayment assistance under this subchapter is insufficient to |
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provide loan repayment assistance to cover all the payments for the |
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year for all eligible loans of all eligible persons, the board shall |
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establish criteria to determine the amount of available money to |
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allocate to the holders of student loans of eligible persons as the |
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board determines appropriate to further the purpose of this |
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subchapter. |
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(e) An eligible person whose annual loan repayment |
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assistance under this section is less than the amount necessary to |
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cover the amount of principal and interest due on the person's |
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eligible loans for that year is responsible for the payment of the |
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remainder of the amount due and for otherwise preventing a default |
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on the loan. |
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Sec. 61.9956. ELIGIBLE LOANS. (a) The board may provide |
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loan repayment assistance under this subchapter for the repayment |
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of any student loan received by an eligible person through any |
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lender for the cost of attendance at an institution of higher |
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education or a private or independent institution of higher |
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education for a semester or other term that ended in the five years |
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immediately preceding the person's initial employment as a peace |
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officer. |
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(b) If the loan is not a state or federal guaranteed student |
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loan, the promissory note or other loan agreement document |
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governing the terms of the loan must require all the loan proceeds |
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to be used for expenses incurred by a person in attending an |
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institution of higher education or a private or independent |
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institution of higher education. |
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(c) The board may not provide loan repayment assistance |
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under this subchapter for an eligible loan that is in default on the |
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date the person's application for loan repayment assistance is |
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submitted under Section 61.9953 or 61.9954. |
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Sec. 61.9957. PAYMENT OF LOAN REPAYMENT ASSISTANCE. (a) |
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The board shall pay any loan repayment assistance under this |
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subchapter in a lump sum delivered on the eligible person's behalf |
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directly to the holder of the loan. |
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(b) Loan repayment assistance provided under this |
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subchapter may be applied to any amount due on the loan. |
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(c) Each state fiscal biennium, the board shall attempt to |
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allocate all money available to the board for the purpose of |
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providing loan repayment assistance under this subchapter. |
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Sec. 61.9958. GIFTS, GRANTS, AND DONATIONS. The board may |
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solicit and accept gifts, grants, and other donations from any |
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public or private source for the purposes of this subchapter. |
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Sec. 61.9959. RULES; POSTING REQUIRED. (a) The board shall |
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adopt rules necessary for the administration of this subchapter. |
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(b) The board shall post on the board's Internet website a |
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copy of the rules adopted under this subchapter and information |
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regarding the program established under this subchapter. |
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SECTION 2. The Texas Higher Education Coordinating Board |
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shall adopt rules for the peace officer loan repayment assistance |
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program under Subchapter NN, Chapter 61, Education Code, as added |
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by this Act, not later than December 1, 2019. |
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SECTION 3. This Act takes effect September 1, 2019. |