HBA-MPM H.B. 1576 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1576 By: Gallego Higher Education 3/10/1999 Introduced BACKGROUND AND PURPOSE The teacher loan repayment program was designed to provide loans to persons regularly employed as teachers in public schools, who are enrolled in a course that will lead to a certificate or endorsement to teach a primary or secondary grade subject in which the State Board of Education has determined that a teacher shortage exists. The program also provides loans to a qualified undergraduate or graduate student enrolled in a program leading to certification as a classroom teacher or leading to a master's degree in a field for which the student is seeking certification or already holds certification. In addition to addressing the need for educators in certain subject areas, the program has the potential to serve as a useful tool for attracting and retaining educators in higher education in certain underserved or economically depressed areas. H.B. 1576 expands eligibility for the teacher loan repayment program to include Ph.D.s teaching at institutions located along the Texas-Mexico border. Additionally, this bill requires the Texas Higher Education Coordinating Board to provide assistance in the repayment of student loans for qualified applicants. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority expressly granted to the Texas Higher Education Coordinating Board is modified in SECTION 1 (Section 61.708, Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter M, Chapter 61, Education Code, as follows: SUBCHAPTER M. New title: REPAYMENT OF CERTAIN TEACHER AND FACULTY EDUCATION LOANS Sec. 61.701. New title: REPAYMENT REQUIRED. Requires the Texas Higher Education Coordinating Board (board), rather than authorizes the board, to provide assistance in the repayment of student loans for persons, rather than teachers, who apply and qualify for the assistance under this subchapter and board rules. Sec. 61.702. ELIGIBILITY. Specifies that in addition to completing at least one year of employment in the elementary or secondary schools of this state or in an area or field of acute teacher shortage as designated by the State Board of Education, a person must be employed as a full-time classroom teacher in order to be eligible to receive repayment assistance. Optionally, the person must have received a doctoral degree no earlier than September 1, 1994, from a public or private institution of higher education accredited as required by the board and be employed as a full-time faculty member with instructional duties in an institution of higher education located in a county bordering Mexico. Makes conforming changes. Sec. 61.703. LIMITATION. Prohibits a person from receiving repayment assistance grants for more than 10 years, rather than five years. Makes a conforming change. Sec. 61.704. ELIGIBLE LOANS. Authorizes the board to provide repayment assistance for repayment of any student loan for education at a public or private institution of higher education, including loans for graduate, in addition to undergraduate, education. Makes conforming and nonsubstantive changes. Sec. 61.705. REPAYMENT. Provides that the minimum amount of repayment assistance that may be received in one year by a person described by Section 61.702(2), Education Code (under which a person's eligibility for repayment assistance depends on completing at least one year of employment in the elementary or secondary schools of this state in an area or field of acute teacher shortage as designated by the State Board of Education), is 50 percent of the amount of the principal and accrued interest that is due that year. Makes conforming changes. Sec. 61.706. ADVISORY COMMITTEES. Makes a conforming change. Sec. 61.707. ACCEPTANCE OF FUNDS. Makes a conforming change. Sec. 61.708. RULES. Requires the board to adopt rules necessary for the administration of this subchapter, including a rule that sets a minimum, in addition to a maximum, amount of repayment assistance that may be received in one year by a person described by Section 61.702(1), Education Code, (under which a person's eligibility to receive repayment assistance depends upon application to the board), and a rule that sets a maximum amount of repayment assistance that may be received in one year by a person described by Section 61.702(2), Education Code, rather than by a teacher in one year. Adds the personnel office at each institution of higher education described by Section 61.702(2), Education Code, to a list of locations at which a copy of the rules adopted under this section and pertinent information in this subchapter is required to be distributed by the board. Makes conforming changes. Redesignates Subdivision (b)(3) to Subdivision (b)(4). SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.