1-1 AN ACT
1-2 relating to repayment assistance for certain education loans owed
1-3 by certain state attorneys.
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 EDUCATION LOANS OWED
1-8 BY CERTAIN STATE ATTORNEYS
1-9 Sec. 61.951. REPAYMENT ASSISTANCE AUTHORIZED. (a) The
1-10 board may provide, in accordance with this subchapter and board
1-11 rules, assistance in the repayment of education loans for attorneys
1-12 who apply and qualify for the assistance.
1-13 (b) The provision of financial assistance in the repayment
1-14 of education loans under this subchapter promotes a public purpose.
1-15 Sec. 61.952. ELIGIBILITY. To be eligible to receive
1-16 repayment assistance, an attorney must:
1-17 (1) apply to the board;
1-18 (2) be employed by or have been offered employment
1-19 with the office of the attorney general at the time the attorney
1-20 applies for the assistance; and
1-21 (3) enter into an agreement to serve as an attorney
1-22 with the office of the attorney general as provided by Section
1-23 61.953.
1-24 Sec. 61.953. AGREEMENT; TERMS. (a) To qualify for
2-1 repayment assistance under this subchapter, an attorney must enter
2-2 into a written agreement with the board as provided by this
2-3 subchapter. The agreement must specify the conditions the attorney
2-4 must satisfy to receive the repayment assistance.
2-5 (b) To be eligible to receive the repayment assistance, an
2-6 attorney must agree to serve at least three years as an attorney
2-7 with the office of the attorney general.
2-8 (c) Only service as an attorney with the office of the
2-9 attorney general after the date the attorney enters into the
2-10 agreement may be used to satisfy the service requirement under the
2-11 agreement.
2-12 (d) The attorney must complete the service obligation during
2-13 the three years following the date of the agreement unless the
2-14 board grants the attorney additional time to begin fulfilling the
2-15 service obligation. The board shall grant the attorney additional
2-16 time to complete the service obligation for good cause.
2-17 (e) The board shall cancel an attorney's service obligation
2-18 if the board determines that the attorney:
2-19 (1) has become permanently disabled so that the
2-20 attorney is not able to serve as an attorney with the office of the
2-21 attorney general; or
2-22 (2) has died.
2-23 (f) The board shall require an attorney who receives the
2-24 repayment assistance to sign an agreement in the nature of a
2-25 contract under which the attorney agrees to perform the required
2-26 years of service. If the attorney does not fulfill the terms of
2-27 the agreement, all repayment assistance paid under this subchapter
3-1 on behalf of the attorney becomes a loan and must be repaid. The
3-2 agreement must include a promissory note acknowledging the
3-3 conditional nature of the repayment assistance and promising to
3-4 repay the amount of the loan repayment, applicable interest, and
3-5 reasonable collection costs if the attorney does not satisfy the
3-6 applicable conditions. The board shall determine the terms of the
3-7 promissory note.
3-8 Sec. 61.954. LIMITATIONS. (a) For each year that an
3-9 attorney serves as an attorney with the office of the attorney
3-10 general under an agreement under Section 61.953, the attorney may
3-11 receive repayment assistance under this subchapter in an amount not
3-12 to exceed $6,000.
3-13 (b) An attorney may not receive repayment assistance under
3-14 this subchapter for more than three years.
3-15 Sec. 61.955. ELIGIBLE LOANS. (a) The board may provide
3-16 repayment assistance for the repayment of any education loan
3-17 received by the attorney through any lender, other than a private
3-18 individual, for:
3-19 (1) education at a school of law authorized by the
3-20 board to award a degree that satisfies the law study requirements
3-21 for licensure as an attorney in this state; or
3-22 (2) undergraduate education at an institution of
3-23 higher education or an accredited private or independent
3-24 institution of higher education.
3-25 (b) The board may not provide repayment assistance for an
3-26 education loan that is in default at the time of the attorney's
3-27 application.
4-1 (c) Each state fiscal biennium the board shall attempt to
4-2 allocate all funds appropriated for the purpose of providing
4-3 repayment assistance under this subchapter.
4-4 Sec. 61.956. REPAYMENT. (a) The board shall deliver any
4-5 repayment assistance made under this subchapter in a lump sum
4-6 payable to the lender and the attorney and in accordance with any
4-7 applicable federal law.
4-8 (b) Repayment assistance received under this subchapter may
4-9 be applied to the principal amount of the loan and to interest that
4-10 accrues.
4-11 Sec. 61.957. ASSISTANCE AVAILABLE TO BOARD. The board may:
4-12 (1) appoint an advisory committee from outside the
4-13 board's membership to assist the board in performing the board's
4-14 duties under this subchapter; and
4-15 (2) request the assistance of the State Bar of Texas
4-16 and the office of the attorney general in performing those duties.
4-17 Sec. 61.958. ACCEPTANCE OF FUNDS. The board may solicit and
4-18 accept gifts, grants, and donations for the purposes of this
4-19 subchapter.
4-20 Sec. 61.959. RULES. (a) The board shall adopt rules
4-21 necessary for the administration of this subchapter.
4-22 (b) The board shall distribute a copy of the rules adopted
4-23 under this section and pertinent information in this subchapter to:
4-24 (1) each school of law authorized by the board to
4-25 award a degree described by Section 61.955(a)(1);
4-26 (2) any appropriate state agency; and
4-27 (3) any appropriate professional association.
5-1 Sec. 61.960. TOTAL AMOUNT OF REPAYMENT ASSISTANCE. The total
5-2 amount of repayment assistance distributed by the board under this
5-3 subchapter may not exceed the total amount of gifts, grants, and
5-4 donations accepted by the board for repayment assistance and
5-5 tuition set aside under Section 61.961.
5-6 Sec. 61.961. LAW SCHOOL TUITION SET ASIDE FOR CERTAIN LOAN
5-7 REPAYMENTS. (a) The governing board of each public school of law
5-8 in this state authorized by the board to award a degree that
5-9 satisfies the law study requirements for licensure as an attorney
5-10 in this state shall set aside one percent of tuition charges for
5-11 resident students enrolled in the school of law.
5-12 (b) The amount set aside shall be transferred to the
5-13 comptroller to be maintained in the state treasury for the sole
5-14 purpose of repayment of education loans of attorneys under this
5-15 subchapter. Section 403.095(b), Government Code, does not apply to
5-16 the amount set aside under this section.
5-17 Sec. 61.962. LIMITATIONS ON FUNDING. The loan repayment
5-18 program under this subchapter may be funded only from:
5-19 (1) gifts, grants, and donations accepted by the
5-20 board; and
5-21 (2) tuition set aside under Section 61.961.
5-22 SECTION 2. The Texas Higher Education Coordinating Board
5-23 shall adopt the rules for the repayment assistance program under
5-24 Subchapter X, Chapter 61, Education Code, as added by this Act, not
5-25 later than December 1, 2001.
5-26 SECTION 3. The Texas Higher Education Coordinating Board
5-27 shall submit a report to the legislature regarding the board's
6-1 activities under Subchapter X, Chapter 61, Education Code, as added
6-2 by this Act, not later than December 1, 2004.
6-3 SECTION 4. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2766 was passed by the House on May
4, 2001, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 2766 on May 25, 2001, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2766 was passed by the Senate, with
amendments, on May 21, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor