1.1 	A bill for an act
1.2 	relating to education; establishing a loan forgiveness
1.3 	program account and program for certain teachers;
1.4 	appropriating money; proposing coding for new law in
1.5 	Minnesota Statutes, chapter 136A.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [136A.1704] LOAN FORGIVENESS PROGRAM FOR
1.8 	TEACHERS LICENSED TO INSTRUCT STUDENTS WITH EMOTIONAL OR
1.9 	BEHAVIORAL DISORDERS.
1.10 		Subdivision 1.Creation of account. A loan forgiveness
1.11 	program account is established to promote the recruitment and
1.12 	retention of teachers licensed to instruct students who have
1.13 	emotional or behavioral disorders.  Money appropriated to this
1.14 	account does not cancel, but is available until expended.
1.15 		Subd. 2.Eligibility for loan forgiveness. A student
1.16 	loan administered by the Higher Education Services Office under
1.17 	section 136A.16, subdivision 1, may be forgiven if the recipient
1.18 	graduates from a postsecondary institution with an appropriate
1.19 	teaching degree, becomes licensed to teach students with
1.20 	emotional or behavioral disorders as defined in Minnesota Rules,
1.21 	part 3525.1329, and is employed as a teacher as defined in
1.22 	section 122A.40 or 122A.41 in Minnesota, with primary
1.23 	responsibilities to instruct students who are diagnosed with
1.24 	emotional or behavioral disorders.
1.25 		Subd. 3.Loan forgiveness. (a) One-fourth of the
2.1 	principal of the outstanding loan amount shall be forgiven for
2.2 	each year of eligible employment or a pro rata amount for
2.3 	eligible employment during part of a school year, part-time
2.4 	employment as a substitute teacher, or other eligible part-time
2.5 	teaching.  Loans for $2,500 or less may be forgiven at the rate
2.6 	of up to $1,250 per year.  The following Minnesota schools and
2.7 	programs are eligible for the purpose of loan forgiveness:
2.8 	(1) a school or program operated by a school district or a
2.9 	group of school districts;
2.10 	(2) a tribal contract school eligible to receive aid
2.11 	according to section 124D.83;
2.12 	(3) a charter school;
2.13 	(4) a private school;
2.14 	(5) a Head Start program;
2.15 	(6) an early childhood family education program; or 
2.16 	(7) a program providing early intervention services to
2.17 	children with disabilities who have not entered kindergarten.
2.18 	(b) If an eligible recipient has an outstanding loan
2.19 	administered by the Higher Education Services Office, the duty
2.20 	to make payments of principal and interest may be deferred
2.21 	during any time period the person is enrolled at least one-half
2.22 	time in an advanced degree program in a field related to
2.23 	educating students with disabilities or administering special
2.24 	education services.  To defer loan obligations, the person shall
2.25 	provide written notification to the commissioner of education.
2.26 	(c) The Higher Education Services Office shall approve the
2.27 	loan forgiveness and deferral, and develop procedures to
2.28 	administer the program.

2.29 	Sec. 2. APPROPRIATION.
 2.30 	$....... is appropriated from the general fund to the
2.31 	Higher Education Services Office for the biennium ending June
2.32 	30, 2007, for the loan forgiveness program under section 1 for
2.33 	teachers licensed to instruct students with emotional or
2.34 	behavioral disorders.  This amount is to be deposited in the
2.35 	loan forgiveness account under section 1, subdivision 1.