By: Blanco S.B. No. 2545
A BILL TO BE ENTITLED
AN ACT
relating to student loan repayment assistance for certain health
care workers employed in rural counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 61, Education Code, is amended by adding
Subchapter L-1 to read as follows:
SUBCHAPTER L-1. REPAYMENT OF EDUCATION LOANS FOR RURAL HEALTH CARE
WORKERS
Sec. 61.671. DEFINITIONS. In this subchapter:
(1) "Health care worker" means a person who furnishes
health care services in direct patient care situations under a
license, certificate, or registration issued by this state or a
person providing direct patient care in the course of a training or
educational program.
(2) "Rural county" means a county in this state with a
population of less than 100,000.
Sec. 61.672. LOAN REPAYMENT ASSISTANCE AUTHORIZED. The
board shall provide, in accordance with this subchapter and board
rules, assistance in the repayment of eligible student loans for
eligible health care workers who apply and qualify for the
assistance.
Sec. 61.673. ELIGIBILITY. To be eligible to receive loan
repayment assistance under this subchapter, a health care worker
may not be receiving loan repayment assistance under another
program administered by the board and must:
(1) apply to the board in a manner prescribed by the
board;
(2) at the time of application for repayment
assistance be employed full-time as a health care worker in a rural
county; and
(3) commit to full-time employment as a health care
worker in a rural county for not less than two years after the
health care worker receives the loan repayment lump sum under
Section 61.676.
Sec. 61.674. LIMITATIONS. A health care worker may receive
loan repayment assistance under this subchapter for not more than
four years.
Sec. 61.675. ELIGIBLE LOANS. (a) The board may provide loan
repayment assistance under this subchapter for the repayment of any
student loan for education at an institution of higher education, a
private or independent institution of higher education, or a public
or private out-of-state institution of higher education accredited
by a recognized accrediting agency, including loans for
undergraduate education, received by an eligible person through any
lender.
(b) The board may not provide repayment assistance for a
student loan that is in default at the time of the person's
application.
(c) In each state fiscal biennium, the board shall attempt
to allocate all funds appropriated to the board for the purpose of
providing loan repayment assistance under this subchapter.
Sec. 61.676. REPAYMENT. (a) The board shall deliver any
repayment under this subchapter in a lump sum payable:
(1) to both the lender or other holder of the loan and
the health care worker; or
(2) directly to the lender or other holder of the loan
on the health care worker's behalf.
(b) A repayment under this subchapter may be applied to any
amount due in connection with the loan.
Sec. 61.677. AMOUNT OF REPAYMENT ASSISTANCE. (a) A health
care worker may receive loan repayment assistance under this
subchapter for each year the health care worker establishes
eligibility for the assistance in an amount determined by the
board.
(b) The board by rule shall determine the maximum amount of
loan repayment assistance received by a health care worker under
this subchapter in any one year.
(c) The total amount of loan repayment assistance provided
under this subchapter may not exceed the sum of:
(1) the total amount of gifts and grants accepted by
the board for the repayment assistance;
(2) legislative appropriations for the repayment
assistance; and
(3) other funds available to the board for the
repayment assistance.
(d) The board may adjust in an equitable manner the
distribution amounts that health care workers would otherwise
receive under Subsection (a) for a year as necessary to comply with
Subsection (c).
Sec. 61.678. RULES; ADMINISTRATION. (a) The board shall
adopt rules necessary to administer this subchapter.
(b) The board shall distribute to each institution of higher
education or private or independent institution of higher education
and to any appropriate state agency and professional association
copies of the rules adopted under this section and other pertinent
information relating to this subchapter.
(c) The board shall administer the program under this
subchapter in a manner that maximizes any matching funds available
through other sources.
(d) A reasonable amount, not to exceed three percent, of any
money appropriated for purposes of this subchapter may be used to
pay the costs of administering this subchapter.
Sec. 61.679. SOLICITATION AND ACCEPTANCE OF FUNDS. The
board may solicit and accept gifts and grants from any public or
private source for the purposes of this subchapter.
SECTION 2. This Act takes effect September 1, 2023.