81R4721 SJM-D By: Guillen H.B. No. 4181 A BILL TO BE ENTITLED AN ACT relating to student loan repayment assistance for certain professionals employed by the Texas Department of Criminal Justice. 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. LOAN REPAYMENT ASSISTANCE FOR CERTAIN PROFESSIONAL EMPLOYEES OF TEXAS DEPARTMENT OF CRIMINAL JUSTICE Sec. 61.9801. DEFINITIONS. In this subchapter: (1) "Department" means the Texas Department of Criminal Justice. (2) "Eligible profession" means the profession of social work or psychology or another profession designated by the department because members of that profession are qualified to offer services for which the department has determined a need exists in the department's workforce. (3) "Eligible professional" means a person who holds an appropriate license or certification required to practice an eligible profession. Sec. 61.9802. REPAYMENT ASSISTANCE AUTHORIZED. The board shall provide, in accordance with this subchapter and board rules, assistance in the repayment of student loans for eligible professionals who apply and qualify for assistance. Sec. 61.9803. ELIGIBILITY. To be eligible to receive repayment assistance, an eligible professional must: (1) apply to the board; (2) at the time the eligible professional applies for the assistance, have been employed in the profession on which the professional's eligibility is based for at least one year by the department and be currently employed full-time in that profession by the department; and (3) comply with any other requirements adopted by board rule under this subchapter. Sec. 61.9804. LIMITATION. (a) On qualifying for the assistance, an eligible professional may receive repayment assistance grants for each year of employment by the department, not to exceed five years. (b) The amount of repayment assistance grants that an eligible professional may receive for each year of employment by the department may not exceed 20 percent of the eligible professional's total outstanding principal amount of student loans as of the time the person initially applies for the assistance. Sec. 61.9805. DESIGNATION OF ELIGIBLE PROFESSION. The department shall notify the board, in the time and manner specified by the board, of any profession the department designates as an eligible profession for purposes of this subchapter. Sec. 61.9806. ELIGIBLE LOANS. (a) The board may provide repayment assistance for the repayment of any student loan for education at an institution of higher education, including loans for undergraduate education, received by an eligible professional through any lender. (b) The board may not provide repayment assistance for a student loan that is in default at the time of the eligible professional's application. (c) Each state fiscal biennium, the board shall attempt to provide repayment assistance in amounts sufficient to use all the money appropriated to the board for that biennium for the purpose of providing repayment assistance under this subchapter. Sec. 61.9807. REPAYMENT. (a) The board shall deliver any repayment made under this subchapter in a lump sum payable to the lender or holder of the loan and the eligible professional, or may deliver the repayment directly to the lender or loan holder on behalf of the eligible professional, in accordance with any applicable federal law. (b) A repayment made under this subchapter may be applied to the principal amount of the loan and to any interest that becomes due on the loan. Sec. 61.9808. ADVISORY COMMITTEES. The board may appoint advisory committees to assist the board in administering this subchapter. Sec. 61.9809. ACCEPTANCE OF GIFTS. The board may accept gifts, grants, and donations for the purposes of this subchapter. Sec. 61.9810. RULES. (a) The board shall adopt rules necessary for the administration of this subchapter. (b) The board shall distribute a copy of the rules adopted under this section and pertinent information regarding this subchapter to: (1) each institution of higher education; (2) the department; and (3) any appropriate professional association. SECTION 2. This Act takes effect September 1, 2009.