By Uher H.B. No. 2553
77R6064 KLA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to repayment assistance for certain law school loans of
1-3 attorneys employed by district or county attorney's offices in
1-4 rural counties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 61, Education Code, is amended by adding
1-7 Subchapter X to read as follows:
1-8 SUBCHAPTER X. REPAYMENT OF CERTAIN LAW SCHOOL EDUCATION LOANS
1-9 Sec. 61.951. DEFINITION. In this subchapter, "rural county"
1-10 means a county with a population of 50,000 or less.
1-11 Sec. 61.952. REPAYMENT ASSISTANCE AUTHORIZED. (a) The
1-12 board shall provide, using funds appropriated for that purpose and
1-13 in accordance with this subchapter and board rules, assistance in
1-14 the repayment of law school education loans for attorneys who apply
1-15 and qualify for the assistance.
1-16 (b) The provision of financial assistance in the repayment
1-17 of education loans under this subchapter promotes a public purpose.
1-18 Sec. 61.953. ELIGIBILITY. To be eligible to receive
1-19 repayment assistance, an attorney must:
1-20 (1) apply to the board;
1-21 (2) be currently employed as an attorney by a district
1-22 or county attorney's office that serves a rural county; and
1-23 (3) enter into an agreement to remain employed by the
1-24 district or county attorney's office as provided by Section 61.955.
2-1 Sec. 61.954. ELIGIBLE LOANS. (a) The board may provide
2-2 repayment assistance for the repayment of any education loan
2-3 received by the attorney through any lender for education at a
2-4 school of law authorized by the board to award a degree that
2-5 satisfies the law study requirements for licensure as an attorney
2-6 in this state.
2-7 (b) The board may not provide repayment assistance for an
2-8 education loan that is in default at the time of the attorney's
2-9 application.
2-10 Sec. 61.955. AGREEMENT. (a) To qualify for loan repayment
2-11 assistance under this subchapter, a person must enter into a
2-12 written agreement with the board as provided by this section. The
2-13 agreement must specify the conditions the person must satisfy to
2-14 receive repayment assistance.
2-15 (b) The agreement must require the person to be employed for
2-16 a period of five years with a district or county attorney's office
2-17 that serves a rural county. Only employment with that district or
2-18 county attorney's office as an attorney after the date the person
2-19 enters into the agreement may be used to satisfy the employment
2-20 requirement under the agreement.
2-21 (c) The agreement must provide that the repayment assistance
2-22 the person receives before the person has been employed for five
2-23 years as required by the agreement constitutes a loan until the
2-24 person completes the five years of employment and satisfies any
2-25 other applicable conditions of the agreement. The agreement must
2-26 require the person to sign a promissory note acknowledging the
2-27 conditional nature of the repayment assistance received and
3-1 promising to repay the amount of that assistance received plus
3-2 applicable interest and reasonable collection costs if the person
3-3 does not satisfy the applicable conditions. The board shall
3-4 determine the terms of the promissory note. To the extent
3-5 practicable, the terms must be the same as those applicable to
3-6 state or federally guaranteed student loans made at the same time.
3-7 All amounts collected in repayment of a loan under this subsection,
3-8 including interest, but excluding collection costs paid by the
3-9 board to another person to collect or assist in collecting the
3-10 amount, shall be deposited to the credit of the trust fund
3-11 established by Section 61.958.
3-12 Sec. 61.956. REPAYMENT. (a) Except as provided by Section
3-13 61.959(a), the board shall provide repayment assistance under this
3-14 subchapter in the following amounts:
3-15 (1) 60 percent of each payment due on an attorney's
3-16 eligible loans during the first 12-month period after the attorney
3-17 enters into the agreement under Section 61.955;
3-18 (2) 80 percent of each payment due on an attorney's
3-19 eligible loans during the second 12-month period after the attorney
3-20 enters into the agreement; and
3-21 (3) 100 percent of each payment due on an attorney's
3-22 eligible loans during the third 12-month period after the attorney
3-23 enters into the agreement.
3-24 (b) The board shall deliver any repayment assistance made
3-25 under this subchapter in a lump sum payable to the lender and the
3-26 attorney and in accordance with any applicable federal law.
3-27 (c) Loan repayment assistance received under this subchapter
4-1 may be applied to the principal amount of the loan and to interest
4-2 that accrues.
4-3 Sec. 61.957. ADVISORY COMMITTEE. The board may appoint an
4-4 advisory committee from outside the board's membership to assist
4-5 the board in performing the board's duties under this subchapter.
4-6 Sec. 61.958. FUNDING. (a) The loan repayment assistance
4-7 program established by this subchapter is funded from the rural
4-8 district and county attorney student loan assistance trust fund.
4-9 The trust fund is established outside the treasury and is
4-10 administered by the comptroller. Money in the trust fund may be
4-11 spent without appropriation and only to fund the program. Interest
4-12 and income from the assets of the trust fund shall be credited to
4-13 and deposited in the trust fund.
4-14 (b) The board may solicit and accept gifts, grants, and
4-15 donations from any public or private source for the purposes of
4-16 this subchapter and shall deposit money accepted under this
4-17 subsection to the credit of the trust fund.
4-18 (c) The legislature may appropriate money to the trust fund.
4-19 Sec. 61.959. RULES. (a) The board shall adopt rules
4-20 necessary for the administration of this subchapter, including a
4-21 rule that sets the maximum amount of loan repayment assistance that
4-22 an attorney may receive in one year.
4-23 (b) The board shall distribute a copy of the rules adopted
4-24 under this section and pertinent information in this subchapter to:
4-25 (1) each school of law authorized by the board to
4-26 award a degree described by Section 61.954(a); and
4-27 (2) any appropriate district or county attorney's
5-1 office.
5-2 SECTION 2. The Texas Higher Education Coordinating Board
5-3 shall adopt the rules for the repayment assistance program under
5-4 Subchapter X, Chapter 61, Education Code, as added by this Act, not
5-5 later than December 1, 2001.
5-6 SECTION 3. This Act takes effect September 1, 2001.