| 1 | 1 | | 87R1567 KJE-D |
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| 2 | 2 | | By: Powell S.B. No. 2021 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to student loan forgiveness for certain public service |
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| 8 | 8 | | employees or interns. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 61, Education Code, is amended by adding |
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| 11 | 11 | | Subchapter OO to read as follows: |
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| 12 | 12 | | SUBCHAPTER OO. PUBLIC SERVICE STUDENT LOAN FORGIVENESS PROGRAM |
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| 13 | 13 | | Sec. 61.9971. LOAN FORGIVENESS AUTHORIZED. The board shall |
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| 14 | 14 | | provide, in accordance with this subchapter and board rules, loan |
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| 15 | 15 | | forgiveness of eligible student loans for eligible public service |
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| 16 | 16 | | employees. |
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| 17 | 17 | | Sec. 61.9972. ELIGIBILITY. To be eligible to receive loan |
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| 18 | 18 | | forgiveness under this subchapter, a person must: |
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| 19 | 19 | | (1) have earned a baccalaureate degree at a public or |
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| 20 | 20 | | private institution of higher education in this state; |
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| 21 | 21 | | (2) be employed or interning in this state with: |
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| 22 | 22 | | (A) a state agency or political subdivision of |
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| 23 | 23 | | the state; or |
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| 24 | 24 | | (B) an organization exempt from federal income |
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| 25 | 25 | | taxation under Section 501(a), Internal Revenue Code of 1986, by |
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| 26 | 26 | | being described as an exempt organization by Section 501(c)(3) of |
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| 27 | 27 | | that code; and |
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| 28 | 28 | | (3) comply with any other requirement adopted by the |
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| 29 | 29 | | board under this subchapter. |
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| 30 | 30 | | Sec. 61.9973. ELIGIBLE LOANS. The board may provide |
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| 31 | 31 | | forgiveness under this subchapter for the following amounts owed |
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| 32 | 32 | | for the cost of education at a public or private institution of |
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| 33 | 33 | | higher education: |
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| 34 | 34 | | (1) a loan made under Chapter 52; |
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| 35 | 35 | | (2) an amount owed in repayment of a scholarship |
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| 36 | 36 | | awarded under Subchapter FF; or |
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| 37 | 37 | | (3) a Texas B-On-time student loan made under former |
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| 38 | 38 | | Section 56.463. |
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| 39 | 39 | | Sec. 61.9974. AMOUNT OF FORGIVENESS; LIMITATIONS. (a) |
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| 40 | 40 | | Subject to Subsection (b), a person may receive loan forgiveness |
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| 41 | 41 | | under this subchapter for each year the person establishes |
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| 42 | 42 | | eligibility for the forgiveness in an amount not to exceed $5,000 |
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| 43 | 43 | | per year. |
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| 44 | 44 | | (b) A person may not receive loan forgiveness under this |
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| 45 | 45 | | subchapter for more than four years. |
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| 46 | 46 | | (c) The total amount of loan forgiveness provided under this |
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| 47 | 47 | | subchapter may not exceed $10 million for a state fiscal biennium. |
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| 48 | 48 | | (d) If in any state fiscal biennium the amount of money |
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| 49 | 49 | | available for loan forgiveness under this subchapter is |
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| 50 | 50 | | insufficient to provide loan forgiveness to all eligible persons |
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| 51 | 51 | | for that biennium, the board shall prioritize awarding loan |
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| 52 | 52 | | forgiveness to eligible persons who are employed or interning with |
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| 53 | 53 | | health-care providers or other entities affected by the coronavirus |
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| 54 | 54 | | disease (COVID-19) pandemic, as determined by the board. |
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| 55 | 55 | | Sec. 61.9975. GIFTS, GRANTS, AND DONATIONS. The board may |
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| 56 | 56 | | solicit and accept gifts, grants, and other donations from any |
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| 57 | 57 | | public or private source for the purpose of this subchapter. |
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| 58 | 58 | | Sec. 61.9976. REPORT. Not later than December 1 of each |
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| 59 | 59 | | year, the board shall submit to the governor, the lieutenant |
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| 60 | 60 | | governor, and the speaker of the house of representatives a report |
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| 61 | 61 | | on the loan forgiveness program under this subchapter. |
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| 62 | 62 | | Sec. 61.9977. RULES. (a) The board shall adopt rules |
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| 63 | 63 | | necessary to administer this subchapter, including rules: |
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| 64 | 64 | | (1) establishing guidelines for qualifying employment |
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| 65 | 65 | | and internships, including requiring at least 20 hours of work per |
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| 66 | 66 | | week; and |
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| 67 | 67 | | (2) making any necessary adjustments to the qualifying |
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| 68 | 68 | | loan programs to account for loan forgiveness under this |
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| 69 | 69 | | subchapter. |
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| 70 | 70 | | (b) In adopting rules, the board shall consult with the |
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| 71 | 71 | | governor's office, the Texas Workforce Commission, the Texas |
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| 72 | 72 | | Association of Counties, the Texas Association of School Boards, |
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| 73 | 73 | | the Texas Municipal League, and the Texas Conference of Urban |
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| 74 | 74 | | Counties. |
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| 75 | 75 | | SECTION 2. The Texas Higher Education Coordinating Board |
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| 76 | 76 | | shall begin awarding loan forgiveness under Subchapter OO, Chapter |
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| 77 | 77 | | 61, Education Code, as added by this Act, to eligible persons |
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| 78 | 78 | | beginning January 1, 2022. |
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| 79 | 79 | | SECTION 3. Not later than December 1, 2022, the Texas Higher |
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| 80 | 80 | | Education Coordinating Board shall submit the initial report |
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| 81 | 81 | | required by Section 61.9976, Education Code, as added by this Act. |
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| 82 | 82 | | SECTION 4. This Act takes effect September 1, 2021. |
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