SRC-CTC H.B. 2323 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2323
By: Gallego (Shapleigh)
Education
5/10/2001
Engrossed


DIGEST AND PURPOSE 

There is concern that the number of attorneys who provide legal services to
the indigent is declining because of uncompetitive salary and benefits.  To
remedy this situation, an incentive may need to be provided  to an attorney
who chooses to serve the public through indigent legal services.  H.B. 2323
requires the Texas Higher Education Coordinating Board to provide
assistance in the repayment of law school education loans  for an attorney
who provides legal services to the indigent.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Higher Education
Coordinating Board in SECTION 1 (Section 61.958, Education Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 61, Education Code, by adding Subchapter X, as
follows: 

SUBCHAPTER X.  REPAYMENT OF CERTAIN LAW SCHOOL EDUCATION LOANS

Sec. 61.951.  REPAYMENT ASSISTANCE AUTHORIZED.  Requires the Texas Higher
Education Coordinating Board (board) to provide, in accordance with this
subchapater and board rules, assistance in the repayment of law school
education loans for attorneys who apply and qualify for the assistance.
Provides that the provision of financial assistance in the repayment of
education loans under this subchapter provides a public purpose. 

Sec. 61.952.  ELIGIBILITY.  Sets forth the eligibility requirements to
receive repayment assistance. 

Sec. 61.953.  LIMITATIONS.  Authorizes an attorney to receive repayment
assistance grants for each of not more than 10 years.  Prohibits the amount
of loan repayment assistance received by an attorney under this subchapter
from exceeding 50 percent of the total amount of the attorney's outstanding
law school loans, including scheduled interest payments that would become
due if the loan is not prepaid, when the attorney enters into the
aggreement. 

Sec. 61.954.  ELIGIBLE LOANS.  Authorizes the board to provide repayment
assistance for the repayment of any education loan received by the attorney
through any lender for education at a school of law authorized by the board
to award  a degree that satisfies the law study requirements for licensure
as an attorney in this state.  Prohibits the board from providing repayment
assistance for an education loan that is in default at the time of the
attorney's application. 

Sec. 61.955.  REPAYMENT.  Requires the board to deliver any repayment
assistance made under this subchapter in a lump sum payable to the lender
and the attorney in accordance with any applicable federal law.  Authorizes
loan repayment assistance received under this subchapter to be applied to
the principal amount of the loan and to interest that accrues. 
 
Sec. 61.956.  ADVISORY COMMITTEE.  Authorizes the board to appoint an
advisory committee to assist the board in performing the board's duties
under this subchapter. 

Sec. 61.957.  ACCEPTANCE OF GIFTS.  Authorizes the board to solicit and
accept gifts, grants, and donations for the purposes of this subchapter. 

Sec. 61.958.  RULES.  Requires the board to adopt rules necessary for the
administration of this subchapter, including a rule that sets a maximum
amount of repayment assistance that an attorney may receive in one year.
Requires the board to distribute a copy of the rules adopted under this
section and pertinent information in this subchapter to certain entities. 

SECTION 2.  Requires the board to adopt the rules for the repayment
assistance program under Chapter 61X, Education Code, as added by this Act,
not later than December 1, 2001. 

SECTION 3.  Effective date: September 1, 2001.