SB1063: Bill Text

SB1063,1,4 An Act to create 20.285 (1) (cm) and 36.615 of the statutes; relating to: creating a teacher pledge loan repayment program administered by the Board of Regents of the University of Wisconsin System, granting rule-making authority, and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill creates a teacher pledge loan repayment program to be administered by the Board of Regents of the University of Wisconsin System. Under the program, individuals may apply to have the board repay their educational loans. “ Educational loan” is defined in the bill to mean an education loan obtained by an individual from a public or private lending institution for education to cover the cost of attendance of any semester in which the individual is enrolled in a UW System institution teacher education program. To be eligible to participate in the loan repayment program, an individual must do all of the following: 1) obtain a teacher license from the Department of Public Instruction within one year of successful completion of a teacher education program at a UW System institution; 2) hold at least a 75 percent teaching position in a public elementary or secondary school in this state; and 3) agree to hold at least a 75 percent teaching position in a public elementary or secondary school in this state for five of the seven years following the individual's completion of the teacher education program. The board may repay 25 percent of an eligible participant's educational loan principal and interest after each full academic year in which the individual held a 75 percent or greater teaching position in a public elementary or secondary school in this state.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB1063,1 Section 1. 20.285 (1) (cm) of the statutes is created to read:

SB1063,2,3 20.285 (1) (cm) Teacher pledge loan repayment program. A sum sufficient for the teacher pledge loan repayment program under s. 36.615.

SB1063,2 Section 2. 36.615 of the statutes is created to read:

SB1063,2,9 36.615 Teacher pledge loan repayment program. (1) Definition. In this section, “educational loan” means an educational loan obtained by an individual from a public or private lending institution for education to cover the cost of attendance of any semester in which the individual is enrolled in an institution's teacher education program.

SB1063,2,12 (2) Creation; administration. The board shall create and administer a teacher pledge loan repayment program that repays, on behalf of an individual, any educational loans obtained by the individual.

SB1063,2,14 (3) Eligibility. An individual is eligible to participate in the program if the individual meets all of the following requirements:

SB1063,2,17 (a) The individual obtains a teacher license from the department of public instruction within one year of successful completion of a teacher education program at an institution.

SB1063,2,19 (b) The individual holds at least a 75 percent teaching position in a public elementary or secondary school in this state.

SB1063,2,20 (c) The individual enters into the agreement under sub. (4).

SB1063,3,5 (4) Agreement. (a) The board shall enter into a written agreement with an individual in which the individual agrees to hold a 75 percent or greater teaching position in a public elementary or secondary school in this state for at least 5 academic years within the 7 years following the individual's completion of his or her teacher education program at an institution.

SB1063,3,7 (5) Loan repayment. Principal and interest due on educational loans, exclusive of any penalties, may be repaid by the board at the following rate:

SB1063,3,11 (a) Twenty-five percent of the principal and interest of the educational loan after the individual has entered into the agreement under sub. (4) and held a 75 percent or greater teaching position in a public elementary or secondary school for one full academic year.

SB1063,3,15 (b) Twenty-five percent of the principal and interest of the educational loan after the individual has entered into the agreement under sub. (4) and held a 75 percent or greater teaching position in a public elementary or secondary school for a 2nd full academic year.

SB1063,3,19 (c) Twenty-five percent of the principal and interest of the educational loan after the individual has entered into the agreement under sub. (4) and held a 75 percent or greater teaching position in a public elementary or secondary school for a 3rd full academic year.

SB1063,3,23 (d) Twenty-five percent of the principal and interest of the educational loan after the individual has entered into the agreement under sub. (4) and held a 75 percent or greater teaching position in a public elementary or secondary school for a 4th full academic year.

SB1063,4,2 (6) Right of action against the state. The obligation of the board to make payments under an agreement entered into under sub. (4) does not create a right of action against the state on the part of an individual or a lending institution for failure to make a payment.

SB1063,4,5 (7) Penalty. The board shall, by rule, establish penalties to be assessed by the board against individuals who breach an agreement entered into under sub. (4). The rules shall do all of the following:

SB1063,4,6 (a) Specify what actions constitute a breach of agreement.

SB1063,4,7 (b) Provide specific penalty amounts for specific breaches.

SB1063,4,9 (c) Provide exceptions for certain actions, including breaches resulting from death or disability.

SB1063,4,11 (8) Rules. The board shall promulgate rules to implement and administer this section.

SB1063,4,12 (End)