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.