1-1     By:  Gallego (Senate Sponsor - Shapleigh)             H.B. No. 2323
 1-2           (In the Senate - Received from the House May 9, 2001;
 1-3     May 10, 2001, read first time and referred to Committee on
 1-4     Education; May 11, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 6, Nays 1;
 1-6     May 11, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 2323                  By:  Nelson
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to repayment assistance for certain law school loans of
1-11     persons providing legal services to the indigent.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Chapter 61, Education Code, is amended by adding
1-14     Subchapter X to read as follows:
1-15        SUBCHAPTER X. REPAYMENT OF CERTAIN LAW SCHOOL EDUCATION LOANS
1-16           Sec. 61.951.  REPAYMENT ASSISTANCE AUTHORIZED. (a)  The board
1-17     shall provide, in accordance with this subchapter and board rules,
1-18     assistance in the repayment of law school education loans for
1-19     attorneys who apply and qualify for the assistance.
1-20           (b)  The provision of financial assistance in the repayment
1-21     of education loans under this subchapter promotes a public purpose.
1-22           Sec. 61.952.  ELIGIBILITY. To be eligible to receive
1-23     repayment assistance, an attorney must:
1-24                 (1)  apply to the board; and
1-25                 (2)  be currently practicing in this state as an
1-26     attorney employed by an organization that:
1-27                       (A)  qualifies for an exemption from federal
1-28     income taxes under Section 501(c)(3), Internal Revenue Code of
1-29     1986, as amended, that is prohibited from providing representation
1-30     in a class-action lawsuit; and
1-31                       (B)  receives funds for providing legal services
1-32     to indigent individuals from:
1-33                             (i)  the Interest on Lawyers' Trust
1-34     Accounts program administered by the Texas Equal Access to Justice
1-35     Foundation; or
1-36                             (ii)  the basic civil legal services
1-37     account under Section 51.943, Government Code.
1-38           Sec. 61.953.  LIMITATIONS. (a)  An attorney may receive
1-39     repayment assistance grants for each of not more than 10 years.
1-40           (b)  The amount of loan repayment assistance received by an
1-41     attorney under this subchapter may not exceed 50 percent of the
1-42     total amount of the attorney's outstanding law school loans,
1-43     including scheduled interest payments that would become due if the
1-44     loan is not prepaid, when the attorney enters into the agreement.
1-45           Sec. 61.954.  ELIGIBLE LOANS. (a)  The board may provide
1-46     repayment assistance for the repayment of any education loan
1-47     received by the attorney through any lender for education at a
1-48     school of law authorized by the board to award a degree that
1-49     satisfies the law study requirements for licensure as an attorney
1-50     in this state.
1-51           (b)  The board may not provide repayment assistance for an
1-52     education loan that is in default at the time of the attorney's
1-53     application.
1-54           Sec. 61.955.  REPAYMENT. (a)  The board shall deliver any
1-55     repayment assistance made under this subchapter in a lump sum
1-56     payable to the lender and the attorney and in accordance with any
1-57     applicable federal law.
1-58           (b)  Loan repayment assistance received under this subchapter
1-59     may be applied to the principal amount of the loan and to interest
1-60     that accrues.
1-61           Sec. 61.956.  ADVISORY COMMITTEE.  The board may appoint an
1-62     advisory committee to assist the board in performing the board's
1-63     duties under this subchapter.
1-64           Sec. 61.957.  ACCEPTANCE OF GIFTS.  The board may solicit and
 2-1     accept gifts, grants, and donations for the purposes of this
 2-2     subchapter.
 2-3           Sec. 61.958.  RULES. (a)  The board shall adopt rules
 2-4     necessary for the administration of this subchapter, including a
 2-5     rule that sets a maximum amount of repayment assistance that an
 2-6     attorney may receive in one year.
 2-7           (b)  The board shall distribute a copy of the rules adopted
 2-8     under this section and pertinent information in this subchapter to:
 2-9                 (1)  each school of law authorized by the board to
2-10     award a degree described by Section 61.954(a);
2-11                 (2)  any appropriate state agency; and
2-12                 (3)  any appropriate professional association.
2-13           SECTION 2. The Texas Higher Education Coordinating Board
2-14     shall adopt the rules for the repayment assistance program under
2-15     Subchapter X, Chapter 61, Education Code, as added by this Act, not
2-16     later than December 1, 2001.
2-17           SECTION 3. This Act takes effect September 1, 2001.
2-18                                  * * * * *