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