HBA-KDB H.B. 2323 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2323
By: Gallego
Higher Education
8/7/2001
Enrolled



BACKGROUND AND PURPOSE 

There is concern that the number of attorneys who provide legal services to
the indigent and who  work in district or county attorney's offices in
rural counties 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 or
through employment in a district or county attorney's office in a rural
county.  House Bill 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 or who is
employed in a district or county attorney's office in a rural county. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Higher Education Coordinating
Board in SECTION 1 (Section 61.958, Education Code), SECTION 2 (Section
61.9609, Education Code), and SECTION 3 of this bill. 

ANALYSIS

House Bill 2323 amends the Education Code to require the Texas Higher
Education Coordinating Board (THECB) to provide assistance in the repayment
of law school education loans for attorneys who are employed in nonprofit
organizations that provide legal services to indigent persons.  The bill
sets forth eligibility requirements for an attorney to receive repayment
assistance (Secs. 61.951 and 61.952).  The bill sets forth limitations on
the repayment assistance (Sec. 61.953).  The bill authorizes THECB to
provide repayment assistance for loans received for education at an
authorized law school.  The bill prohibits THECB from providing repayment
assistance for an education loan that is in default at the time of the
attorney's application (Sec. 61.954).  The bill requires THECB to deliver
any repayment assistance in a lump sum payable to the lender and the
attorney.  The bill requires any repayment assistance to be reasonably
related to the amount of time an attorney is employed by the eligible
organization (Sec. 61.955). The bill authorizes THECB to appoint an
advisory committee to assist THECB in performing its duties in relation to
repayment assistance for  attorneys of nonprofit organizations serving
indigent persons (Sec. 61.956).  The bill requires THECB to adopt, not
later than December 1, 2001, rules necessary for the administration of the
repayment assistance and the repayment assistance program, including a rule
that sets a maximum amount of repayment assistance that an attorney may
receive in one year, and to distribute a copy of the adopted rules and
pertinent information to each authorized law school, any appropriate state
agency, and any appropriate professional association (Sec. 61.958 and
SECTION 3). 

The bill requires THECB to provide assistance in the repayment of law
school education loans for attorneys who are employed by a district or
county attorney's office that serves a rural county.  The bill sets forth
eligibility requirements for an attorney to receive repayment assistance
(Secs. 61.9602 and  61.9603).   The bill authorizes THECB to provide
repayment assistance for loans received for education at an authorized law
school.  The bill prohibits THECB from providing repayment assistance for
an education loan that is in default at the time of the attorney's
application (Sec. 61.9604).  To qualify for loan repayment assistance, a
person must enter into a written agreement with THECB.  The bill sets forth
the conditions of the agreement (Sec. 61.9605).  The bill sets forth the
amounts of repayment assistance THECB is  required to provide. The bill
requires THECB to deliver any repayment assistance in a lump sum payable to
the lender and the attorney (Sec. 61.9606).  The bill authorizes THECB to
appoint an advisory committee to assist THECB in performing its duties in
relation to repayment assistance for district or county attorneys (Sec.
61.9607).  The bill provides that the loan repayment assistance program is
funded from the rural district and county attorney student loan trust fund,
which is established outside of the treasury and is administered by the
comptroller of public accounts.  The bill provides that money in the trust
fund may be spent without appropriation and only to fund the program.  The
bill authorizes the legislature to appropriate money to the trust fund
(Sec. 61.9608).  The bill requires THECB to adopt rules necessary for the
administration of the repayment assistance and the repayment assistance
program, including a rule that sets a maximum amount of repayment
assistance that an attorney may receive in one year.  The bill requires
THECB to distribute a copy of the adopted rules and pertinent information
to each authorized law school and any appropriate district or county
attorneys (Sec. 61.9609). 

EFFECTIVE DATE

September 1, 2001.