86R17113 SOS-F
By: Hancock S.B. No. 16
A BILL TO BE ENTITLED
AN ACT
relating to a student loan repayment assistance program for certain
persons who agree to employment as full-time peace officers in this
state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 61, Education Code, is amended by adding
Subchapter NN to read as follows:
SUBCHAPTER NN. PEACE OFFICER LOAN REPAYMENT ASSISTANCE PROGRAM
Sec. 61.9951. DEFINITIONS. In this subchapter:
(1) "General academic teaching institution" and
"private or independent institution of higher education" have the
meanings assigned by Section 61.003.
(2) "Peace officer" means a person elected, employed,
or appointed as a peace officer under Article 2.12, Code of Criminal
Procedure, or other law.
Sec. 61.9952. LOAN REPAYMENT ASSISTANCE AUTHORIZED;
PURPOSE. The board shall establish and administer a program to
provide, in accordance with this subchapter and board rules, loan
repayment assistance in the repayment over a four-year period of
the total outstanding balance, plus interest, of a peace officer's
eligible loans for eligible peace officers who agree to continued
employment as full-time peace officers in this state for a
specified period.
Sec. 61.9953. INITIAL ELIGIBILITY; AGREEMENT REQUIREMENTS.
(a) To be eligible to receive loan repayment assistance under this
subchapter for the first year for which the person seeks loan
repayment assistance, a person must:
(1) submit to the board an initial application for the
loan repayment assistance, in the manner and on a form prescribed by
board rule, that requires:
(A) employer verification of the person's
employment as a full-time peace officer in this state for at least
four consecutive years and the person's current employment as a
peace officer in this state as of the date of the application; and
(B) a transcript of the person's postsecondary
course work;
(2) have completed an undergraduate or graduate
program at a general academic teaching institution or a private or
independent institution of higher education;
(3) be currently employed, and have completed at least
four consecutive years of employment, as a full-time peace officer
in this state;
(4) not be in default on any other education loan;
(5) enter into an agreement with the board under
Subsection (b); and
(6) comply with any other requirement adopted by the
board under this subchapter.
(b) To receive loan repayment assistance under this
subchapter, a person must enter into an agreement with the board:
(1) under which the person:
(A) agrees to complete four additional
consecutive years of employment as a full-time peace officer in
this state in exchange for an amount of loan repayment assistance in
each of those years as provided by Section 61.9956; and
(B) acknowledges the conditional nature of the
loan repayment assistance; and
(2) which states the total amount of principal,
accrued interest, fees, and other charges due on all outstanding
eligible loans for which the person is applying for repayment
assistance.
Sec. 61.9954. CONTINUING ELIGIBILITY. After initially
qualifying for loan repayment assistance under Section 61.9953, a
person may continue to receive loan repayment assistance in a
subsequent year only if the person annually submits an application,
in the manner and on a form prescribed by board rule, that requires
employer verification of the person's continuous employment as a
full-time peace officer in this state for the year ending
immediately before the date the application is submitted under this
section.
Sec. 61.9955. EXCEPTION TO CONSECUTIVE YEARS OF FULL-TIME
EMPLOYMENT REQUIREMENT. The board shall excuse an otherwise
eligible person from a requirement imposed by Section 61.9953 or
61.9954 that the employment qualifying the person for loan
repayment assistance be performed in consecutive years if the break
in employment is a result of the person's:
(1) service on active duty as a member of the armed
forces of the United States, including as a member of a reserve or
National Guard unit called for active duty;
(2) temporary total disability for a period of not
more than 36 months, as established by the affidavit of a qualified
physician;
(3) inability to secure employment as required by
Section 61.9953 or 61.9954 for a period not to exceed 12 months
because of care required by a disabled spouse or child;
(4) inability, despite reasonable efforts, to secure
for a single period not to exceed 12 months employment as required
by Section 61.9953 or 61.9954; or
(5) satisfaction of the provisions of any other
exception adopted by the board for purposes of this section.
Sec. 61.9956. AWARD. (a) An eligible person is entitled to
receive an annual amount of loan repayment assistance payments
under this subchapter payable to the holders of the eligible
person's eligible loans for each year of eligibility approved by
the board under Section 61.9953 or 61.9954 in an amount equal to 25
percent of the total amount stated in the person's agreement under
Section 61.9953(b)(2) and any interest that accrues on that amount
during that year, subject to the amount of available funding and
other relevant considerations.
(b) Notwithstanding Subsection (a), if at the time an
eligible person initially enters an agreement with the board under
this subchapter the payoff period for the person's total
outstanding balance of eligible loans is less than four years, the
board shall make payments under this subchapter to the eligible
holders of the person's eligible loans in the amounts of the
payments and accrued interest as those payments become due.
(c) The total amount of loan repayment assistance paid by
the board under this subchapter may not exceed the total amount of
money available in the fund under Section 61.9959 and any other
money that the board is legally authorized to use for purposes of
this subchapter.
(d) If in any year the amount of money available for loan
repayment assistance under this subchapter is insufficient to
provide loan repayment assistance to cover all the payments for the
year for all eligible loans of all eligible persons:
(1) the board shall establish criteria to determine
the amount of eligible money to allocate to the holders of student
loans of eligible persons as the board determines appropriate to
further the purpose of this subchapter; and
(2) an eligible person whose annual loan repayment
assistance allocation under Subdivision (1) is less than the amount
necessary to cover the amount of principal and interest due on the
person's eligible loans for that year is responsible for the
payment of the remainder of the amount due and for otherwise
preventing a default on the loan.
Sec. 61.9957. ELIGIBLE LOANS. (a) The board may provide
loan repayment assistance under this subchapter for the repayment
of any student loan that:
(1) is for education at a postsecondary educational
institution; 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 promissory note or other loan agreement document
governing the terms of the loan must require all 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 an eligible loan that is in default on the
date the person's application for loan repayment assistance is
submitted under Section 61.9953 or 61.9954.
Sec. 61.9958. PAYMENT OF LOAN REPAYMENT ASSISTANCE. (a)
The board shall pay any loan repayment assistance under this
subchapter in a lump sum 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 state 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. 61.9959. PEACE OFFICER LOAN REPAYMENT ASSISTANCE
PROGRAM INVESTMENT FUND. (a) In this section, "fund" means the
peace officer loan repayment assistance program investment fund.
(b) The fund is a dedicated account in the general revenue
fund and consists of:
(1) gifts, grants, and other donations received from
any public or private source for the fund; and
(2) interest and other earnings from the investment of
the fund.
(c) The fund may be used only to provide loan repayment
assistance for the repayment of loans eligible under Section
61.9957, including any related administrative costs.
(d) The fund is exempt from the application of Sections
403.095 and 404.071, Government Code.
(e) The board may accept grants, gifts, and other donations
from any public or private source for the purposes of this
subchapter. All money received under this subchapter shall be
deposited in the fund.
Sec. 61.9960. RULES. The board shall adopt rules necessary
for the administration of this subchapter, including rules
providing for:
(1) the manner in which a person may apply for loan
repayment assistance; and
(2) a method of awarding loan repayment assistance
under this subchapter that gives first priority to applicants who
are renewing their applications for loan repayment assistance
provided under this subchapter.
SECTION 2. The Texas Higher Education Coordinating Board
shall adopt rules for the peace officer loan repayment assistance
program under Subchapter NN, Chapter 61, Education Code, as added
by this Act, not later than December 1, 2019.
SECTION 3. This Act takes effect September 1, 2019.