By Gallego                                            H.B. No. 2323
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to repayment assistance for certain law school loans of
 1-3     persons providing legal services to the indigent.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 61, Education Code, is amended by adding
 1-6     Subchapter X to read as follows:
 1-7        SUBCHAPTER X. REPAYMENT OF CERTAIN LAW SCHOOL EDUCATION LOANS
 1-8           Sec. 61.951.  REPAYMENT ASSISTANCE AUTHORIZED. (a)  The board
 1-9     shall provide, in accordance with this subchapter and board rules,
1-10     assistance in the repayment of law school education loans for
1-11     attorneys who apply and qualify for the assistance.
1-12           (b)  The provision of financial assistance in the repayment
1-13     of education loans under this subchapter promotes a public purpose.
1-14           Sec. 61.952.  ELIGIBILITY.  To be eligible to receive
1-15     repayment assistance, an attorney must:
1-16                 (1)  apply to the board; and
1-17                 (2)  be currently practicing in this state as an
1-18     attorney employed by an organization that qualifies for an
1-19     exemption from federal income taxes under Section 501(c)(3),
1-20     Internal Revenue Code of 1986, as amended, that is prohibited from
1-21     providing representation in a class-action lawsuit, and that
1-22     provides:
1-23                       (A)  criminal defense for indigent individuals;
1-24     or
 2-1                       (B)  civil legal services for indigent
 2-2     individuals.
 2-3           Sec. 61.953.  LIMITATIONS. (a)  An attorney may receive
 2-4     repayment assistance grants for each of not more than 10 years.
 2-5           (b)  The amount of loan repayment assistance received by an
 2-6     attorney under this subchapter may not exceed 50 percent of the
 2-7     total amount of the attorney's outstanding law school loans,
 2-8     including scheduled interest payments that would become due if the
 2-9     loan is not prepaid, when the attorney enters into the agreement.
2-10           Sec. 61.954.  ELIGIBLE LOANS. (a)  The board may provide
2-11     repayment assistance for the repayment of any education loan
2-12     received by the attorney through any lender for education at a
2-13     school of law authorized by the board to award a degree that
2-14     satisfies the law study requirements for licensure as an attorney
2-15     in this state.
2-16           (b)  The board may not provide repayment assistance for an
2-17     education loan that is in default at the time of the attorney's
2-18     application.
2-19           Sec. 61.955.  REPAYMENT. (a)  The board shall deliver any
2-20     repayment assistance made under this subchapter in a lump sum
2-21     payable to the lender and the attorney and in accordance with any
2-22     applicable federal law.
2-23           (b)  Loan repayment assistance received under this subchapter
2-24     may be applied to the principal amount of the loan and to interest
2-25     that accrues.
2-26           Sec. 61.956.  ADVISORY COMMITTEE.  The board may appoint an
2-27     advisory committee to assist the board in performing the board's
 3-1     duties under this subchapter.
 3-2           Sec. 61.957.  ACCEPTANCE OF GIFTS.  The board may solicit and
 3-3     accept gifts, grants, and donations for the purposes of this
 3-4     subchapter.
 3-5           Sec. 61.958.  RULES. (a)  The board shall adopt rules
 3-6     necessary for the administration of this subchapter, including a
 3-7     rule that sets a maximum amount of repayment assistance that an
 3-8     attorney may receive in one year.
 3-9           (b)  The board shall distribute a copy of the rules adopted
3-10     under this section and pertinent information in this subchapter to:
3-11                 (1)  each school of law authorized by the board to
3-12     award a degree described by Section 61.954(a);
3-13                 (2)  any appropriate state agency; and
3-14                 (3)  any appropriate professional association.
3-15           SECTION 2. The Texas Higher Education Coordinating Board
3-16     shall adopt the rules for the repayment assistance program under
3-17     Subchapter X, Chapter 61, Education Code, as added by this Act, not
3-18     later than December 1, 2001.
3-19           SECTION 3. This Act takes effect September 1, 2001.