HBA-KMH H.B. 724 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 724
By: Delisi
Public Education
4/21/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, teachers may receive loan repayment assistance under the
Education Code, if eligible, after completion of at least one year of
employment at an elementary or secondary school of this state in an area or
field of acute teacher shortage.  H.B. 724 restructures the existing
statutory provisions for repayment of certain teacher education loans to
create the "Texas Classroom Teachers Loan Repayment Program."  The bill
also provides for new eligibility requirements and authorizes appropriation
of funds from the lottery. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority previously delegated to the Texas Higher Education Coordinating
Board is modified in SECTION 1 (Sections 6.701 and 6.709, Education Code)
of this bill. 


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter M, Chapter 61, Education Code, as follows:

SUBCHAPTER M. New Title: TEXAS CLASSROOM TEACHERS LOAN REPAYMENT PROGRAM.

Sec.  61.701.  REPAYMENT AUTHORIZED.  Requires, rather than authorizes, the
Texas Higher Education Coordinating Board (board) to provide assistance in
the repayment of student loans for classroom teachers, rather than
teachers, who apply and qualify for assistance, in accordance with this
subchapter and board rules.  Makes nonsubstantive changes. 

Sec.  61.702.  ELIGIBILITY.  Clarifies that the provisions of this section
are determinative of the eligibility under this subchapter of a person,
rather than a teacher, to receive loan repayment assistance.  Designates
the commissioner of education, rather than the State Board of Education, to
determine an area or field of acute teacher shortage.  Provides additional
eligibility requirements.  Provides that a person is not eligible under
this section if the person has been convicted of a felony, a crime
involving moral turpitude, or an offense under Chapter 481 (Texas
Controlled Substances Act), Health and Safety Code, or under the law of any
other jurisdiction involving a controlled substance as defined by Chapter
481, Health and Safety Code.  Deletes authorization to the coordinating
board to provide by rule for the amount of assistance for each part-time
teacher. 

Sec.  61.703.  New Title: LOAN REPAYMENT; LIMITATIONS.  Prohibits an
eligible person from receiving an amount for each school year that the
person qualifies for assistance that exceeds the lesser of one-fifth of the
total amount of the person's outstanding student loans that qualify for
assistance  when the person is initially determined to be eligible for
assistance or $3,000.  Prohibits a person from receiving repayment
assistance in excess of the amount of the person's outstanding student
loans eligible for repayment assistance at the time the payment is made.
Prohibits a teacher from receiving repayment assistance under this
subchapter for more than five years. 
 
Sec.  61.704.  ELIGIBLE LOANS.  Provides that the repayment assistance
loans are for state or federally guaranteed student loans.  Makes
conforming and nonsubstantive changes. 

Sec.  61.705.  New Title: DISQUALIFICATION FROM PROGRAM.  Provides the
conditions under which a person initially qualified for loan repayment
assistance under this subchapter becomes disqualified for continued loan
repayment assistance under this subchapter.  Makes conforming changes by
deleting the provision requiring payment by the coordinating board and the
designation of the payment toward interest and principal of the student
loans. 

Sec.  61.706.  New Title: INTERRUPTION OF TEACHING DUTIES.  Requires the
board to grant a person who is otherwise eligible for loan repayment
assistance and who serves as a classroom teacher as required by Section
61.702(a)(6) for at least one month of the school year a prorated  portion
of the loan repayment assistance the person would have received for
teaching for the entire school year, if the person demonstrates to the
board that the person is unable to complete the school year for certain
prescribed reasons. 

Sec.  61.707.  ADVISORY COMMITTEES.  Redesignated from Section 61.706.
Makes a conforming change. 

Sec.  61.708.  ACCEPTANCE OF FUNDS.  Redesignated from Section 61.707.
Makes a conforming change. 

Sec.  61.709.  RULES.  Redesignated from Section 61.708.  Makes conforming
changes. 

Sec.  61.710.  FUNDING.  Provides that the loan repayment assistance
program is funded by amounts appropriated for the program from the state
lottery account or from other available resources. 

SECTION 2.  Amends Section 466.355(b), Government Code, to include in the
authorized uses of funds from the state lottery fund the transfer to the
Texas Higher Education Coordinating Board of any amount appropriated for
the current state fiscal year for the Texas Classroom Teachers Loan
Repayment Program under Subchapter M, Chapter 61, Education Code. 

SECTION 3.  Provides that this Act takes effect beginning with the fall
semester 1999. 

SECTION 4. Emergency clause.
  Effective date: upon passage.