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H.B. 82
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7 LONG TITLE
8 General Description:
9 This bill creates a loan program for teachers.
10 Highlighted Provisions:
11 This bill:
12 . creates a loan program for teachers;
13 . establishes program funding requirements; and
14 . requires the State Board of Education to adopt administrative rules to implement the
15 program.
16 Monies Appropriated in this Bill:
17 This bill appropriates:
18 . as an ongoing appropriation subject to future budget constraints, $1,500,000 from
19 the General Fund for fiscal year 2009-10 to the State Board of Education.
20 Other Special Clauses:
21 This bill takes effect on July 1, 2009.
22 Utah Code Sections Affected:
23 ENACTS:
24 53A-1a-1101, Utah Code Annotated 1953
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26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 53A-1a-1101 is enacted to read:
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29 53A-1a-1101. Teacher Loan Program.
30 (1) There is created the Teacher Loan Program, to be administered by the State Board
31 of Education.
32 (2) The State Board of Education shall:
33 (a) subject to the availability of funding for the loan program from appropriations and
34 loan principal and interest repayments, award available loan funds to individual teachers who:
35 (i) teach full time in a school district or charter school within the state;
36 (ii) have obtained a teaching license for the first time within the prior five years;
37 (iii) except as provided in Subsection (4), have not previously received a program loan;
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39 (iv) demonstrate a desire to pursue a teaching career and purchase a home within the
40 state;
41 (b) provide a program loan of $15,000 to a selected loan recipient, to be used for the
42 purchase of the loan recipient's primary residence;
43 (c) require a loan recipient to make interest payments at least annually on the
44 outstanding loan balance, at a fixed interest rate equal to the state treasurer's Utah Public
45 Treasurers Investment Fund interest rate for the January prior to loan issuance, rounded to the
46 nearest tenth of a percent;
47 (d) forgive:
48 (i) $5,000 of the loan principal if the teacher teaches in a school district or charter
49 school for five consecutive years following receipt of the loan; and
50 (ii) the remaining amount of the loan principal if the teacher teaches in a school district
51 or charter school for ten consecutive years following receipt of the loan;
52 (e) require a loan recipient who:
53 (i) does not teach in a school district or charter school for five consecutive years after
54 receiving the loan to repay the entire $15,000 in loan principal, in addition to loan interest
55 payments, over a period not to exceed five years after discontinuing teaching in a school
56 district or charter school; or
57 (ii) teaches in a school district or charter school for more than five consecutive years
58 but less than ten consecutive years to repay the portion of the loan principal remaining after the
59 forgiveness under Subsection (2)(d), in addition to loan interest payments, over a period not to
60 exceed five years after discontinuing teaching in a school district or charter school;
61 (f) allow a principal prepayment at any time; and
62 (g) allocate repayment, interest, and appropriation funds for new loans.
63 (3) The consecutive years of teaching requirements of this section are based on the
64 time period a teacher teaches in any school district or charter school or combination of school
65 districts or charter schools in the state during the relevant time period.
66 (4) The State Board of Education may award one additional loan to a loan recipient
67 who:
68 (a) sold the primary residence that served as collateral for the program loan within ten
69 years of receiving the loan;
70 (b) repaid the loan principal and outstanding interest in full upon sale of the home; and
71 (c) continues to meet the other eligibility requirements of this section.
72 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
73 Board of Education shall make rules to:
74 (a) establish loan recipient selection criteria, including credit worthiness; and
75 (b) establish procedures for application, loan funding, and repayment, which shall
76 include procedures to:
77 (i) secure the program loan with the primary residence of the loan recipient as
78 collateral; and
79 (ii) require full repayment of the outstanding loan principal and interest if and when the
80 primary residence is sold within ten years of loan issuance.
81 (6) If appropriations and loan principal and interest repayment funds are insufficient to
82 cover the costs associated with the Teacher Loan Program for all eligible applicants, the State
83 Board of Education shall:
84 (a) limit the number of loans authorized to correspond to the amount of available
85 funds; and
86 (b) select loan recipients using the criteria established pursuant to Subsection (5)(a).
87 Section 2. Appropriation.
88 As an ongoing appropriation subject to future budget constraints, there is appropriated
89 from the General Fund for fiscal year 2009-10, $1,500,000 to the State Board of Education to
90 fund the Teacher Loan Program established in Section 53A-1a-1101 .
91 Section 3. Effective date.
92 This bill takes effect on July 1, 2009.
Legislative Review Note
as of 12-2-08 2:41 PM