By Delisi H.B. No. 2766
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to repayment of certain law school education loans.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 61, Education Code, is amended by adding
1-5 Subchapter U. to read as follows:
1-6 SUBCHAPTER U. REPAYMENT OF CERTAIN LAW SCHOOL
1-7 EDUCATION LOANS
1-8 Sec. 61.1001. DEFINITIONS. In this subchapter:
1-9 (1) "Accredited law school" means any institution of
1-10 higher education that confers a juris doctor degree, a master of
1-11 law degree, or a doctor of juridical science degree and is fully
1-12 accredited by the American Bar Association.
1-13 (2) "Board" means the Texas Higher Education
1-14 Coordinating Board, as defined in Section 61.002, Education Code.
1-15 (3) "Default" means a loan on which payment has not
1-16 been made, resulting in the loan being foreclosed and reduced to
1-17 judgment.
1-18 (4) "Eligible lender or holder" means a lender who
1-19 makes education loans to individuals for the purpose of attending
1-20 an institution of higher education. The term includes a bank,
1-21 savings and loan association, credit union, institution of higher
1-22 education, secondary market, governmental agency, pension fund,
1-23 private foundation, or insurance company. A private individual is
2-1 not an eligible lender or holder.
2-2 (5) "Licensed lawyer" means a lawyer who is fully
2-3 licensed by the Supreme Court of Texas, is on active status with
2-4 the State Bar of Texas, and is in good standing with both the State
2-5 of Bar of Texas and the Supreme Court of Texas.
2-6 Sec. 61.1002. REPAYMENT AUTHORIZED. The board may provide,
2-7 using funds appropriated for that purpose and in accordance with
2-8 this subchapter and rules of the board, assistance in the repayment
2-9 of student loans for licensed lawyers who apply and qualify for the
2-10 assistance.
2-11 Sec. 61.1003. ELIGIBILITY FOR ASSISTANCE. To be eligible to
2-12 receive repayment assistance, a licensed lawyer must:
2-13 (1) apply to the board;
2-14 (2) be currently employed by the State of Texas as a
2-15 lawyer; and
2-16 (3) have completed at least one year of employment
2-17 with the State of Texas as a lawyer.
2-18 Sec. 61.1004. LIMITATION. A lawyer may receive payment
2-19 assistance grants for each of not more than five years.
2-20 Sec. 61.1005. ELIGIBLE LOANS. (a) The board may provide
2-21 repayment assistance for the repayment of any student loan received
2-22 by a lawyer through any eligible lender or holder for:
2-23 (1) undergraduate education at a public or private
2-24 institution of higher education accredited by a recognized
2-25 accrediting agency, as defined by Section 61.003, Education Code;
2-26 and
3-1 (2) law school education at a public or private
3-2 institution of higher education accredited by the American Bar
3-3 Association.
3-4 (b) The board may withhold repayment assistance for a
3-5 student loan that is in default at the time of the lawyer's
3-6 application.
3-7 (c) Each fiscal biennium, the board shall attempt to
3-8 allocate all funds appropriated to it for the purposes of providing
3-9 repayment assistance under this subchapter.
3-10 Sec. 61.1006. REPAYMENT. (a) The board shall deliver any
3-11 repayment made under this subchapter in payments payable to the
3-12 eligible lender or holder and to the lawyer, in accordance with any
3-13 applicable federal law.
3-14 (b) A repayment made under this subchapter may be applied to
3-15 any amount of principal and interest due in connection with the
3-16 loan.
3-17 Sec. 61.1007. ADVISORY COMMITTEES. The board may:
3-18 (1) appoint advisory committees from outside the
3-19 board's membership to assist the board in performing its duties
3-20 under this subchapter; and
3-21 (2) request the assistance of the State Bar of Texas
3-22 and the Office of the Attorney General in performing those duties.
3-23 Sec. 61.1008. ACCEPTANCE OF FUNDS. The board may accept
3-24 gifts, grants, and donations for the purposes of this subchapter.
3-25 Sec. 61.1009. RULES. (a) The board shall adopt rules
3-26 necessary for the administration of this subchapter, including a
4-1 rule that sets a maximum amount of repayment assistance that may be
4-2 received by a lawyer in one year. The board may consult with the
4-3 State Bar of Texas and the Office of the Attorney General to assist
4-4 the board in preparing such rules.
4-5 (b) (1) The board shall distribute to each accredited law
4-6 school in the state and to appropriate state agencies and
4-7 professional associations copies of the rules adopted under this
4-8 section and other pertinent information relating to this
4-9 subchapter.
4-10 (2) The board may distribute to any law school
4-11 accredited by the American Bar Association located outside the
4-12 state copies of the rules adopted under this section and other
4-13 pertinent information relating to this subchapter.
4-14 Sec. 61.1010. TOTAL AMOUNT OF REPAYMENT ASSISTANCE. (a) The
4-15 total amount of repayment assistance distributed by the board under
4-16 this subchapter may not exceed the total amount of gifts and grants
4-17 accepted by the board for repayment assistance, legislative
4-18 appropriations for repayment assistance, and other funds available
4-19 to the board for purposes of this subchapter.
4-20 (b) The total amount of gifts and grants accepted by the
4-21 board for repayment assistance, legislative appropriations for
4-22 repayment assistance, and all other funds available to the board
4-23 for purposes of this subchapter shall be maintained by the
4-24 comptroller of public accounts in a separate account in the state
4-25 treasury for the sole purpose of repayment of student loans of
4-26 lawyers under this subchapter. Section 403.095(b), Government
5-1 Code, does not apply to the amount set aside by this section.
5-2 SECTION 2. Section 191.145, Tax Code, is amended to read as
5-3 follows:
5-4 Sec. 191.145. DISTRIBUTION OF TAX. The supreme court shall
5-5 forward tax received under this subchapter to the state for
5-6 deposit:
5-7 (1) twenty-five percent of the taxes shall be
5-8 deposited to the credit of the foundation school fund; [and]
5-9 (2) sixty-five [seventy-five] percent of the taxes
5-10 shall be deposited to the credit of the general revenue fund; and
5-11 (3) ten percent of the taxes shall be deposited to the
5-12 credit of the account established by Section 61.1010(b), Education
5-13 Code.
5-14 SECTION 3. In addition to all other monies appropriated to
5-15 the board by the Seventy-seventh Legislature, the legislature shall
5-16 appropriate money to the board in an amount sufficient to establish
5-17 a pilot program for student loan assistance repayment in the Office
5-18 of the Attorney General under Subchapter U. of Chapter 61,
5-19 Education Code. This section is repealed effective September 1,
5-20 2003.
5-21 SECTION 4. SEVERABILITY. If any provision of this Act or its
5-22 application to any person or circumstance is held invalid, the
5-23 invalidity does not affect other provisions or applications of this
5-24 Act that can be given effect without the invalid provision or
5-25 application, and to this end the provisions of this Act are
5-26 declared to be severable.
6-1 SECTION 5. EFFECTIVE DATE. This Act takes effect on
6-2 August 27, 2001.