SB1076 - 521R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 15-1782, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1782. Mathematics, science, special education and elementary education teacher student loans; requirements; report

A. The commission may grant loans from the mathematics, science and special education teacher student loan fund established by section 15‑1784 to defray the costs of tuition, instructional materials and mandatory fees of the education of students who are pursuing a teaching degree or teaching certificate at a qualifying postsecondary institution and who are deemed qualified by the commission to receive these loans. A student who is pursuing a teaching degree or is in a teacher certification program after obtaining a bachelor's degree is not disqualified from eligibility for a loan issued pursuant to this article. Loans shall be granted on such terms and conditions as may be imposed by the commission and shall be distributed on a first come, first served basis.

B. The commission shall grant loans to qualified applicants who agree to provide instruction in the area of mathematics, science or special education in a public school in this state or in elementary education in a public school that is located in a geographic area in this state that is experiencing a shortage of teachers, as determined by the state board of education. The board shall allocate no more than twenty‑five per cent of the annual amount appropriated for loans to applicants who agree to provide instruction in elementary education.

C. The loans granted by the commission shall be used to cover the costs of tuition and mandatory fees for each loan recipient and may also defray the cost of instructional materials, but shall not exceed seven ten thousand dollars each year, excluding all grants, scholarships and tuition benefits such as military, tribal and employee grants, scholarships and benefits.

D. The commission shall adopt policies for screening qualified applicants based on ability and financial need, including requiring all applicants to complete a free application for student federal aid.

E. The commission shall grant loans on the terms and conditions the commission imposes. The commission shall establish procedures for the timely repayment of loans plus interest at a rate determined by the commission. The commission is responsible for the collection of loan repayments.

F. The commission may partner with qualifying postsecondary institutions to administer these loans. The commission shall provide initial public notice of the availability of the loans and collect the application forms directly from each qualified applicant. The commission shall forward a request for verification of attendance, satisfactory academic progress, financial need and enrollment in a qualified program to the institution.

G. On or before December 1 of each year, the commission shall submit an approved report to the governor, the speaker of the house of representatives, the president of the senate and the joint legislative budget committee. The commission shall provide a copy of this report to the secretary of state. The report shall include the number of applicants, the number of loan recipients, the qualifying postsecondary institution each loan recipient attends, the name of the school at which each loan recipient is employed, the number of good cause repayment exceptions granted by the commission, the reason for each good cause exception granted and teacher retention data. The commission shall collect and maintain data on the retention of mathematics, science and special education teachers who received loans pursuant to this article. The commission shall collect this data for at least five years after each loan recipient completes the recipient's service commitment. END_STATUTE

Sec. 2. Section 15-1783, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1783. Mathematics, science, special education and elementary education teacher student loans; interest; obligations; repayment; authority of attorney general

A. Each applicant who is approved for a loan by the commission may be granted a loan for a period of up to five years.

B. The commission, on behalf of this state, shall enter into a written contract with the qualified student. The contract shall set forth the methods and terms of repayment by the loan recipient to this state and shall be on terms and conditions and in a form provided by the commission. The contract shall provide for the following:

1. The loan recipient shall begin the service commitment providing instruction in the area of mathematics, science or special education in a public school in this state or in elementary education in a public school that is located in a geographic area in this state that is experiencing a shortage of teachers, as determined by the state board of education, within one calendar year after attaining a bachelor's degree completing a teaching degree or teacher certification program at a qualifying postsecondary institution. The service commitment shall be full‑time as determined by the commission and requires one year of service for each year of loan support plus one additional year of service.

2. If the loan recipient engages in postgraduate studies without a lapse of more than one calendar year following the completion of the loan recipient's bachelor's degree teaching degree or teacher certification program at a qualifying postsecondary institution, the loan recipient shall begin the service commitment required under paragraph 1 of this subsection within one calendar year after completing postgraduate studies.

3. If the loan recipient is inducted into military service, or for any other cause beyond the loan recipient's control deemed sufficient by the commission is unable to begin the service commitment required under paragraph 1 of this subsection within one calendar year after completing a bachelor's degree and any graduate studies teaching degree or teacher certification program, the loan recipient shall begin the service commitment required under paragraph 1 of this subsection within one calendar year after completing the required military service or the termination of any other cause.

4. If the loan recipient fulfills the service commitment required under paragraph 1 of this subsection in a public school in this state or while completing military service resulting from induction, the loan recipient's indebtedness to this state may be discharged in one of the following ways:

(a) One year of full‑time service required under paragraph 1 of this subsection for each year of loan support plus one additional year of service.

(b) Repayment to this state of the total loan amount for each year of support with interest at the rate prescribed in subsection C of this section.

5. If the loan recipient fails to complete the required course of study teaching degree or teacher certification program, if the course of study teaching degree or teacher certification program is interrupted by one academic year or more for a cause or causes not resulting from induction into military service or any other cause beyond the loan recipient's control deemed sufficient by the commission or if the loan recipient fails to fully discharge the service commitment required under paragraph 1 of this subsection, except for delays resulting from an excusable cause as prescribed in this section, the amount of the loan not repaid or fully discharged shall be due and payable with interest at the rate prescribed in subsection C of this section. The commission may extend the time of payment over a period not exceeding fifteen years and shall not require payment of interest during the existence of any excusable cause as prescribed in this section.

6. If the loan recipient does not begin the service commitment required under paragraph 1 of this subsection within the time prescribed in this section but paid an agreed part of the loan, the commission may allow the loan recipient to discharge the balance of the obligation by subsequent teaching in this state.

7. If the loan recipient dies during the period of the loan recipient's education or practice as a teacher, the loan recipient's obligation to this state under this article ceases.

8. The loan recipient may choose at any time to provide a different category of service commitment prescribed in paragraph 1 of this subsection without violating the contract, unless the contract requires the loan recipient to provide instruction in the area of mathematics or science.

9. If the loan recipient begins the service commitment required under paragraph 1 of this subsection in a geographic area in this state that is experiencing a shortage of teachers, as determined by the state board of education, but the state board of education subsequently determines that geographic area is no longer experiencing a shortage of teachers, the loan recipient may discharge the balance of the obligation by completing the service commitment in the geographic area where the loan recipient began the service commitment.

C. The loan recipient shall repay the full amount borrowed at an interest rate of at least seven per cent.

D. On receipt of supporting documentation, the commission for good cause shown may defer the loan recipient's service commitment or repayment obligation or may enter into repayment arrangements with the loan recipient or allow service that is equivalent to full-time service if the commission determines that this action is justified after a review of the individual's circumstances. At the discretion of the commission, the commission may allow service by teaching in another area of recognized need in this state that is not specified in the qualified student's contract, but only following prior written approval by the commission.

E. The attorney general may commence whatever actions are necessary to enforce the contract and achieve repayment of loans provided by the commission pursuant to this article. END_STATUTE

Sec. 3. Appropriation; commission for postsecondary education; mathematics, science and special education teacher student loan fund

In addition to any other monies appropriated to the commission for postsecondary education in fiscal year 2015-2016, the sum of $200,000 is appropriated from the state general fund in fiscal year 2015-2016 to the commission for postsecondary education for deposit in the mathematics, science and special education teacher student loan fund established by section 15‑1784, Arizona Revised Statutes.