77R12863 KSD-D                           
         By Delisi                                             H.B. No. 2766
         Substitute the following for H.B. No. 2766:
         By Rangel                                         C.S.H.B. No. 2766
                                A BILL TO BE ENTITLED
 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, using funds appropriated for that purpose and in
1-11     accordance with this subchapter and board rules, assistance in the
1-12     repayment of education loans for attorneys who apply and qualify
1-13     for the assistance.
1-14           (b)  The provision of financial assistance in the repayment
1-15     of education loans under this subchapter promotes a public purpose.
1-16           Sec. 61.952.  ELIGIBILITY.  To be eligible to receive
1-17     repayment assistance, an attorney must:
1-18                 (1)  apply to the board;
1-19                 (2)  be employed by or have been offered employment
1-20     with the office of the attorney general at the time the attorney
1-21     applies for the assistance; and
1-22                 (3)  enter into an agreement to serve as an attorney
1-23     with the office of the attorney general as provided by Section
1-24     61.953.
 2-1           Sec. 61.953.  AGREEMENT; TERMS.  (a)  To qualify for
 2-2     repayment assistance under this subchapter, an attorney must enter
 2-3     into a written agreement with the board as provided by this
 2-4     subchapter.  The agreement must specify the conditions the attorney
 2-5     must satisfy to receive the repayment assistance.
 2-6           (b)  To be eligible to receive the repayment assistance, an
 2-7     attorney must agree to serve at least three years as an attorney
 2-8     with the office of the attorney general.
 2-9           (c)  Only service as an attorney with the office of the
2-10     attorney general after the date the attorney enters into the
2-11     agreement may be used to satisfy the service requirement under the
2-12     agreement.
2-13           (d)  The attorney must complete the service obligation during
2-14     the three years following the date of the agreement unless the
2-15     board grants the attorney additional time to begin fulfilling the
2-16     service obligation.  The board shall grant the attorney additional
2-17     time to complete the service obligation for good cause.
2-18           (e)  The board shall cancel an attorney's service obligation
2-19     if the board determines that the attorney:
2-20                 (1)  has become permanently disabled so that the
2-21     attorney is not able to serve as an attorney with the office of the
2-22     attorney general; or
2-23                 (2)  has died.
2-24           (f)  The board shall require an attorney who receives the
2-25     repayment assistance to sign an agreement in the nature of a
2-26     contract under which the attorney agrees to perform the required
2-27     years of service.  If the attorney does not fulfill the terms of
 3-1     the agreement, all repayment assistance paid under this subchapter
 3-2     on behalf of the attorney becomes a loan and must be repaid.  The
 3-3     agreement must include a promissory note acknowledging the
 3-4     conditional nature of the repayment assistance and promising to
 3-5     repay the amount of the loan repayment, applicable interest, and
 3-6     reasonable collection costs if the attorney does not satisfy the
 3-7     applicable conditions.  The board shall determine the terms of the
 3-8     promissory note.
 3-9           Sec. 61.954.  LIMITATIONS.  (a)  For each year that an
3-10     attorney serves as an attorney with the office of the attorney
3-11     general under an agreement under Section 61.953, the attorney may
3-12     receive repayment assistance under this subchapter in an amount not
3-13     to exceed $6,000.
3-14           (b)  An attorney may not receive repayment assistance under
3-15     this subchapter for more than three years.
3-16           Sec. 61.955.  ELIGIBLE LOANS. (a)  The board may provide
3-17     repayment assistance for the repayment of any education loan
3-18     received by the attorney through any lender, other than a private
3-19     individual, for:
3-20                 (1)  education at a school of law authorized by the
3-21     board to award a degree that satisfies the law study requirements
3-22     for licensure as an attorney in this state; or
3-23                 (2)  undergraduate education at an institution of
3-24     higher education or an accredited private or independent
3-25     institution of higher education.
3-26           (b)  The board may not provide repayment assistance for an
3-27     education loan that is in default at the time of the attorney's
 4-1     application.
 4-2           (c)  Each state fiscal biennium the board shall attempt to
 4-3     allocate all funds appropriated for the purpose of providing
 4-4     repayment assistance under this subchapter.
 4-5           Sec. 61.956.  REPAYMENT. (a)  The board shall deliver any
 4-6     repayment assistance made under this subchapter in a lump sum
 4-7     payable to the lender and the attorney and in accordance with any
 4-8     applicable federal law.
 4-9           (b)  Repayment assistance received under this subchapter may
4-10     be applied to the principal amount of the loan and to interest that
4-11     accrues.
4-12           Sec. 61.957.  ASSISTANCE AVAILABLE TO BOARD.  The board may:
4-13                 (1)  appoint an advisory committee from outside the
4-14     board's membership to assist the board in performing the board's
4-15     duties under this subchapter; and
4-16                 (2)  request the assistance of the State Bar of Texas
4-17     and the office of the attorney general in performing those duties.
4-18           Sec. 61.958.  ACCEPTANCE OF FUNDS.  The board may solicit and
4-19     accept gifts, grants, and donations for the purposes of this
4-20     subchapter.
4-21           Sec. 61.959.  RULES. (a)  The board shall adopt rules
4-22     necessary for the administration of this subchapter.
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 61.955(a)(1);
4-27                 (2)  any appropriate state agency; and
 5-1                 (3)  any appropriate professional association.
 5-2           Sec. 61.960.  TOTAL AMOUNT OF REPAYMENT ASSISTANCE.  The
 5-3     total amount of repayment assistance distributed by the board under
 5-4     this subchapter may not exceed the total amount of gifts, grants,
 5-5     and donations accepted by the board for repayment assistance,
 5-6     tuition set aside under Section 61.961, and legislative
 5-7     appropriations for repayment assistance.
 5-8           Sec. 61.961.  LAW SCHOOL TUITION SET ASIDE FOR CERTAIN LOAN
 5-9     REPAYMENTS. (a)  The governing board of each public school of law
5-10     in this state authorized by the board to award a degree that
5-11     satisfies the law study requirements for licensure as an attorney
5-12     in this state shall set aside one percent of tuition charges for
5-13     resident students enrolled in the school of law.
5-14           (b)  The amount set aside shall be transferred to the
5-15     comptroller to be maintained in the state treasury for the sole
5-16     purpose of repayment of education loans of attorneys under this
5-17     subchapter.  Section 403.095(b), Government Code, does not apply to
5-18     the amount set aside under this section.
5-19           SECTION 2.  The Texas Higher Education Coordinating Board
5-20     shall adopt the rules for the repayment assistance program under
5-21     Subchapter X, Chapter 61, Education Code, as added by this Act, not
5-22     later than December 1, 2001.
5-23           SECTION 3.  The Texas Higher Education Coordinating Board
5-24     shall submit a report to the legislature regarding the board's
5-25     activities under Subchapter X, Chapter 61, Education Code, as added
5-26     by this Act, not later than December 1, 2004.
5-27           SECTION 4.  This Act takes effect September 1, 2001.