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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 Money Appropriated in this Bill:
17 This bill appropriates:
18 ▸ to the State Board of Education, as an ongoing appropriation:
19 • from the Uniform School Fund, $1,500,000.
20 Other Special Clauses:
21 This bill provides a special effective date.
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 Board of Education shall:
33 (a) award appropriated loan funds to individual teachers who:
34 (i) teach full time in a public school within the state;
35 (ii) have obtained, as defined in Section 53A-6-103, a level 1 license or
36 competency-based license for the first time within the previous five years;
37 (iii) except as provided in Subsection (4), have not previously received a program loan;
38 and
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 before 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 public school for five
49 consecutive years following receipt of the loan; and
50 (ii) the remaining amount of the loan principal if the teacher teaches in a public school
51 for 10 consecutive years following receipt of the loan;
52 (e) require a loan recipient who:
53 (i) does not teach in a public school for five consecutive years after receiving the loan
54 to repay the entire $15,000 in loan principal, in addition to loan interest payments, over a
55 period not to exceed five years after discontinuing teaching in a public school; or
56 (ii) teaches in a public school for more than five consecutive years but less than 10
57 consecutive years to repay the portion of the loan principal remaining after the forgiveness
58 under Subsection (2)(d), in addition to loan interest payments, over a period not to exceed five
59 years after discontinuing teaching in a public school;
60 (f) allow a principal prepayment at any time; and
61 (g) allocate repayment, interest, and appropriation funds for new loans.
62 (3) The consecutive years of teaching requirements of this section are based on the
63 time period a teacher teaches in any public school or combination of public schools in the state
64 during the relevant time period.
65 (4) The State Board of Education may award one additional loan to a loan recipient
66 who:
67 (a) sold the primary residence that served as collateral for the program loan within 10
68 years of receiving the loan;
69 (b) repaid the loan principal and outstanding interest in full upon sale of the home; and
70 (c) continues to meet the other eligibility requirements of this section.
71 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
72 State Board of Education shall make rules to:
73 (a) establish loan recipient selection criteria, including credit worthiness; and
74 (b) establish procedures for application, loan funding, and repayment, which shall
75 include procedures to:
76 (i) secure the program loan with the primary residence of the loan recipient as
77 collateral; and
78 (ii) require full repayment of the outstanding loan principal and interest if the primary
79 residence is sold within 10 years of loan issuance.
80 Section 2. Appropriation.
81 The following sums of money are appropriated for the fiscal year beginning July 1,
82 2017, and ending June 30, 2018. These are additions to amounts previously appropriated for
83 fiscal year 2018. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
84 Act, the Legislature appropriates the following sums of money from the funds or accounts
85 indicated for the use and support of the government of the state of Utah.
86 To State Board of Education
87 From Uniform School Fund
$1,500,000
88 Schedule of Programs:
89 Teacher Loan Program $1,500,000
90 The Legislature intends that the State Board of Education use the $1,500,000 ongoing
91 appropriation described in this section to award a loan to a teacher as part of the program
92 described in Section 53A-1a-1101.
93 Section 3. Effective date.
94 This bill takes effect on July 1, 2017.
Legislative Review Note
Office of Legislative Research and General Counsel