HF 1170

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/05/2015 03:50pm

A bill for an act
relating to education; postsecondary; providing a teacher shortage loan
forgiveness program; authorizing rulemaking; appropriating money; proposing
coding for new law in Minnesota Statutes, chapter 136A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [136A.1791] TEACHER SHORTAGE LOAN FORGIVENESS
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The terms used in this section have the meanings
given them in this subdivision.
new text end

new text begin (b) "Qualified educational loan" means a government, commercial, or foundation
loan for actual costs paid for tuition, reasonable education expenses, and reasonable living
expenses related to a teacher's education.
new text end

new text begin (c) "School district" means an independent school district, special school district,
intermediate district, education district, special education cooperative, service cooperative,
a cooperative center for vocational education, or a charter school located in Minnesota.
new text end

new text begin (d) "Teacher" means an individual holding a teaching license issued by the Board of
Teaching, who is employed by a school district in a nonadministrative teaching position in
a teacher shortage area.
new text end

new text begin (e) "Teacher shortage area" means a subject area and licensure field designated by
the commissioner of education as an area and field in which a shortage of teachers exists
in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Program established; administration. new text end

new text begin The commissioner shall establish
and administer a teacher shortage loan forgiveness program. A teacher is eligible for
the program if the teacher is teaching in a teacher shortage area and complies with
requirements of this section.
new text end

new text begin Subd. 3. new text end

new text begin Annual designation of teacher shortage areas. new text end

new text begin The commissioner of
education shall annually designate the subject areas and licensure field experiencing
teacher shortages. The commissioner of education shall periodically survey school
districts and approved teacher preparation programs to identify teacher shortage areas.
new text end

new text begin Subd. 4. new text end

new text begin Application for loan forgiveness. new text end

new text begin Each applicant for loan forgiveness,
according to the rules of the commissioner, shall:
new text end

new text begin (1) complete and file an application for teacher shortage loan forgiveness. The
applicant must promptly submit any information required by the commissioner;
new text end

new text begin (2) annually file a new application and submit information the commissioner
requires to determine the applicant's eligibility for renewing loan forgiveness; and
new text end

new text begin (3) submit to the commissioner a completed affidavit, prescribed by the
commissioner, verifying that the teacher is teaching in a teacher shortage area.
new text end

new text begin Subd. 5. new text end

new text begin Amount of loan forgiveness. new text end

new text begin Within the limits of available funding, the
annual amount of teacher shortage loan forgiveness for an approved recipient shall not
exceed $....... or the cumulative balance of the recipient's qualified educational loans,
including principal and interest, whichever amount is less. Recipients must secure
their own qualified educational loans. A teacher who graduates from an approved
teacher preparation program is eligible to apply for the loan forgiveness program for five
consecutive years after graduation. A teacher who adds a licensure field in a teacher
shortage area may also apply immediately after adding the licensure field.
new text end

new text begin Subd. 6. new text end

new text begin Penalties. new text end

new text begin A teacher who submits a false or misleading application or
other information to the commissioner may have his or her teaching license suspended or
revoked under section 122A.20 or may be subject to discipline by the teacher's employing
school district.
new text end

new text begin Subd. 7. new text end

new text begin Fund established. new text end

new text begin A teacher shortage loan forgiveness repayment fund is
created for depositing money appropriated to or received by the commissioner for this
program. Money deposited in the fund shall not revert to any fund of the state at the
end of any fiscal year but shall remain in the loan forgiveness repayment fund and be
continuously available for loan forgiveness under this program.
new text end

new text begin Subd. 8. new text end

new text begin Annual reporting. new text end

new text begin The commissioner, annually by February 1, must
report to the chairs of the K-12 and higher education committees of the legislature on the
number of individuals who received loan forgiveness under this section, which teacher
shortage areas teachers taught, the amount paid to each program participant, and other
information identified by the commissioner as outcome indicators.
new text end

new text begin Subd. 9. new text end

new text begin Rulemaking. new text end

new text begin The commissioner shall adopt rules under chapter 14 to
administer this section.
new text end

Sec. 2. new text begin APPROPRIATIONS.
new text end

new text begin $....... in fiscal year 2016 and $....... in fiscal year 2017 are appropriated from the
general fund to the commissioner of the Office of Higher Education for the purposes of the
teacher shortage loan forgiveness program under Minnesota Statutes, section 136A.1791,
and for creating rules to administer the program.
new text end