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.