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 * * * * *