February 28, 2001

Mr. Speaker:

Your EDUCATION COMMITTEE, to whom has been referred

HOUSE BILL 600

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

1. On page 3, line 24 through page 4, line 1, strike Subsection B and insert the following subsection:

"B. A loan shall bear interest at the rate of:

(1) eighteen percent per year if the loan recipient completes his teacher preparation and no portion of the principal and interest is forgiven pursuant to Subsection E of this section; or

(2) seven percent per year in all other cases.".

2. On page 4, line 22, after "forgive" strike the remainder of the line and strike lines 23 and 24 and insert in lieu thereof:

"a portion of the loan principal and interest if the loan recipient is employed as a teacher in a qualifying public school for three years or more. Forty percent of the principal plus accrued interest shall be forgiven upon the completion of the first three years of employment, an additional thirty percent of the principal plus accrued interest shall be forgiven upon completion of the fourth year of employment and the remainder of the principal plus interest shall be forgiven upon completion of the fifth year of employment.".

3. On page 5, between lines 3 and 4, insert the following subsection:

"G. If a loan recipient completes the teacher preparation program and does not serve in a qualifying public school, the commission shall assess a penalty of up to three times the principal due, plus eighteen percent interest, unless the commission finds acceptable extenuating circumstances that prevent the loan recipient from serving. If the commission does not find acceptable extenuating circumstances for the loan recipient's failure to carry out his declared intent to serve, the commission shall require immediate repayment of the unpaid principal amount of the loan plus accrued interest owed the state plus the amount of any penalty assessed pursuant to this subsection.".

4. Reletter the succeeding subsection accordingly.

and thence referred to the JUDICIARY COMMITTEE.

Respectfully submitted,

Rick Miera, Chairman

Adopted Not Adopted

(Chief Clerk) (Chief Clerk)

The roll call vote was 8 For 4 Against

Yes: 8

No: Hamilton, Tinnin, Wilson, Williams

Excused: Cordova

Absent: None

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