81R11733 KSD-D By: Smith of Tarrant H.B. No. 3463 A BILL TO BE ENTITLED AN ACT relating to student loan repayment assistance for undergraduate students who agree to teach in public schools in this state that have shortages of teachers in math and science. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 61, Education Code, is amended by adding Subchapter GG to read as follows: SUBCHAPTER GG. STUDENT LOAN REPAYMENT ASSISTANCE FOR MATHEMATICS AND SCIENCE CLASSROOM TEACHERS Sec. 61.9831. LOAN REPAYMENT ASSISTANCE AUTHORIZED. The board may provide, in accordance with this subchapter and board rules, assistance in the repayment of eligible student loans for eligible undergraduate students who agree to teach mathematics or science for a specified period in public schools in this state that are determined by the Texas Education Agency to have shortages of teachers in math and science. Sec. 61.9832. ELIGIBILITY; AGREEMENT REQUIREMENTS. (a) To be eligible to receive loan repayment assistance under this subchapter, a person must: (1) apply for the loan repayment assistance in the manner prescribed by the board; (2) be currently enrolled in an educator preparation program accredited by the State Board for Educator Certification that is provided by an institution of higher education or by a private or independent institution of higher education in this state; (3) have a cumulative grade point average of at least 2.75 on a four-point scale or the equivalent; (4) enter into an agreement with the board providing that: (A) the person will earn a baccalaureate degree through completion of an educator preparation program described by Subdivision (2); (B) the person will graduate with a cumulative grade point average of at least 2.75 on a four-point scale or the equivalent; (C) the person will obtain, within the period prescribed by board rule, appropriate certification under Subchapter B, Chapter 21, to teach mathematics or science in a public school in this state; (D) beginning with the first school year that begins after the date the person obtains the appropriate certification described by Paragraph (C), the person will accept an offer of full-time employment to teach in a public school in this state selected by the person from among schools anticipated by the Texas Education Agency to have shortages of teachers in math and science for that first school year for which the person is accepting employment; (E) the person will complete seven consecutive years of employment as a full-time classroom teacher in a school described by Paragraph (D) whose primary duty is to teach mathematics or science; and (F) the person acknowledges the conditional nature of the loan repayment assistance; and (5) comply with any other requirement adopted by the board under this subchapter. (b) Except as provided by Section 61.9833, for the first school year of employment and each following consecutive school year of employment, as described by Subsections (a)(4)(D) and (E), not to exceed a total of seven years, the board may provide assistance for the repayment of a portion of an eligible person's eligible loans. Subject to the availability of funding under Section 61.9836 and except as otherwise provided by this subsection, the amount of an assistance payment provided under this subsection in any year to an eligible person is $5,000. The board shall increase that amount as necessary to adjust for inflation or, as determined by the board, on the basis of other relevant considerations. The board shall reduce the amount of a single assistance payment or refrain from making an assistance payment to an eligible person as necessary to avoid making total payments under this subsection to the person in an amount greater than the total amount of principal and interest due on the person's eligible loans. (c) For purposes of this subchapter, not later than April 1 of each school year, the Texas Education Agency shall determine which public schools in this state are anticipated to have shortages of math and science teachers during the following school year and shall provide that information to the board and to each educator preparation program in this state accredited by the State Board for Educator Certification. Sec. 61.9833. EXCEPTION TO CONSECUTIVE YEARS OF EMPLOYMENT REQUIREMENT. The board shall excuse an otherwise eligible person from the requirement imposed by Section 61.9832(a)(4)(E) that the employment be performed in consecutive years if the break in employment is a result of the person's: (1) full-time enrollment in a course of study related to the field of teaching that is approved by the State Board for Educator Certification and provided by an institution of higher education or by a private or independent institution of higher education in this state; (2) service on active duty as a member of the armed forces of the United States; (3) temporary total disability for a period of not more than 36 months as established by the affidavit of a qualified physician; (4) inability to secure employment as required by Section 61.9832 for a period not to exceed 12 months, because of care required by a disabled spouse or child; (5) inability, despite reasonable efforts, to secure, for a single period not to exceed 12 months, employment as required by Section 61.9832; or (6) satisfaction of the provisions of any other exception adopted by the board for purposes of this section. Sec. 61.9834. ELIGIBLE LOANS. (a) The board may provide under this subchapter repayment assistance for the repayment of any student loan that: (1) is for education at a public or private institution of higher education; and (2) is received by an eligible person through an eligible lender. (b) If the loan is not a state or federal guaranteed student loan, the note or other writing governing the terms of the loan must require the loan proceeds to be used for expenses incurred by a person in attending a postsecondary educational institution. (c) The board may not provide loan repayment assistance under this subchapter for a student loan that is in default at the time of the person's application for repayment assistance. Sec. 61.9835. PAYMENT OF ASSISTANCE. (a) The board shall pay any loan repayment assistance under this subchapter in a lump sum: (1) payable to both the holder of the loan and the eligible person; or (2) delivered on the eligible person's behalf directly to the holder of the loan. (b) Loan repayment assistance provided under this subchapter may be applied to any amount due on the loan. (c) Each fiscal biennium, the board shall attempt to allocate all money available to the board for the purpose of providing loan repayment assistance under this subchapter. Sec. 61.9836. FUNDING. In addition to money appropriated by the legislature for purposes of this subchapter, the board may solicit and accept gifts, grants, and donations from any public or private entity for purposes of this subchapter. Sec. 61.9837. TOTAL AMOUNT OF LOAN REPAYMENT ASSISTANCE. The total amount of loan repayment assistance paid by the board under this subchapter may not exceed the total amount of money available under Section 61.9836 for that purpose and any other money that the board is legally authorized to use for purposes of this subchapter. Sec. 61.9838. RULES. If the board provides loan repayment assistance under this subchapter, the board shall: (1) adopt rules necessary for the administration of this subchapter, including a rule providing for the manner in which a person may apply for repayment assistance; and (2) distribute to each educator preparation program approved by the State Board for Educator Certification offered by an institution of higher education or by a private or independent institution of higher education in this state a copy of the rules adopted under this section. SECTION 2. The Texas Higher Education Coordinating Board shall adopt the rules for loan repayment assistance under Subchapter GG, Chapter 61, Education Code, as added by this Act, not later than December 1, 2009. The board may, if it is feasible, begin administering the loan repayment assistance program established by that subchapter in the 2009-2010 academic year. Otherwise, the board shall begin administering the program in the 2010-2011 academic year. SECTION 3. 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.