87R1567 KJE-D
 
  By: Powell S.B. No. 2021
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to student loan forgiveness for certain public service
  employees or interns.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 61, Education Code, is amended by adding
  Subchapter OO to read as follows:
  SUBCHAPTER OO. PUBLIC SERVICE STUDENT LOAN FORGIVENESS PROGRAM
         Sec. 61.9971.  LOAN FORGIVENESS AUTHORIZED. The board shall
  provide, in accordance with this subchapter and board rules, loan
  forgiveness of eligible student loans for eligible public service
  employees.
         Sec. 61.9972.  ELIGIBILITY. To be eligible to receive loan
  forgiveness under this subchapter, a person must:
               (1)  have earned a baccalaureate degree at a public or
  private institution of higher education in this state;
               (2)  be employed or interning in this state with:
                     (A)  a state agency or political subdivision of
  the state; or
                     (B)  an organization exempt from federal income
  taxation under Section 501(a), Internal Revenue Code of 1986, by
  being described as an exempt organization by Section 501(c)(3) of
  that code; and
               (3)  comply with any other requirement adopted by the
  board under this subchapter.
         Sec. 61.9973.  ELIGIBLE LOANS. The board may provide
  forgiveness under this subchapter for the following amounts owed
  for the cost of education at a public or private institution of
  higher education:
               (1)  a loan made under Chapter 52;
               (2)  an amount owed in repayment of a scholarship
  awarded under Subchapter FF; or
               (3)  a Texas B-On-time student loan made under former
  Section 56.463.
         Sec. 61.9974.  AMOUNT OF FORGIVENESS; LIMITATIONS.  (a)  
  Subject to Subsection (b), a person may receive loan forgiveness
  under this subchapter for each year the person establishes
  eligibility for the forgiveness in an amount not to exceed $5,000
  per year.
         (b)  A person may not receive loan forgiveness under this
  subchapter for more than four years.
         (c)  The total amount of loan forgiveness provided under this
  subchapter may not exceed $10 million for a state fiscal biennium.
         (d)  If in any state fiscal biennium the amount of money
  available for loan forgiveness under this subchapter is
  insufficient to provide loan forgiveness to all eligible persons
  for that biennium, the board shall prioritize awarding loan
  forgiveness to eligible persons who are employed or interning with
  health-care providers or other entities affected by the coronavirus
  disease (COVID-19) pandemic, as determined by the board.
         Sec. 61.9975.  GIFTS, GRANTS, AND DONATIONS.  The board may
  solicit and accept gifts, grants, and other donations from any
  public or private source for the purpose of this subchapter.
         Sec. 61.9976.  REPORT. Not later than December 1 of each
  year, the board shall submit to the governor, the lieutenant
  governor, and the speaker of the house of representatives a report
  on the loan forgiveness program under this subchapter.
         Sec. 61.9977.  RULES. (a)  The board shall adopt rules
  necessary to administer this subchapter, including rules:
               (1)  establishing guidelines for qualifying employment
  and internships, including requiring at least 20 hours of work per
  week; and
               (2)  making any necessary adjustments to the qualifying
  loan programs to account for loan forgiveness under this
  subchapter.
         (b)  In adopting rules, the board shall consult with the
  governor's office, the Texas Workforce Commission, the Texas
  Association of Counties, the Texas Association of School Boards,
  the Texas Municipal League, and the Texas Conference of Urban
  Counties.
         SECTION 2.  The Texas Higher Education Coordinating Board
  shall begin awarding loan forgiveness under Subchapter OO, Chapter
  61, Education Code, as added by this Act, to eligible persons
  beginning January 1, 2022.
         SECTION 3.  Not later than December 1, 2022, the Texas Higher
  Education Coordinating Board shall submit the initial report
  required by Section 61.9976, Education Code, as added by this Act.
         SECTION 4.  This Act takes effect September 1, 2021.