1-1     By:  Delisi (Senate Sponsor - Ellis)                  H.B. No. 2766
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on
 1-4     Education; May 10, 2001, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; May 10, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to repayment assistance for certain education loans owed
 1-9     by certain state attorneys.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Chapter 61, Education Code, is amended by adding
1-12     Subchapter X to read as follows:
1-13          SUBCHAPTER X.  REPAYMENT OF CERTAIN EDUCATION LOANS OWED
1-14                         BY CERTAIN STATE ATTORNEYS
1-15           Sec. 61.951.  REPAYMENT ASSISTANCE AUTHORIZED.  (a)  The
1-16     board may provide, using funds appropriated for that purpose and in
1-17     accordance with this subchapter and board rules, assistance in the
1-18     repayment of education loans for attorneys who apply and qualify
1-19     for the assistance.
1-20           (b)  The provision of financial assistance in the repayment
1-21     of education loans under this subchapter promotes a public purpose.
1-22           Sec. 61.952.  ELIGIBILITY.  To be eligible to receive
1-23     repayment assistance, an attorney must:
1-24                 (1)  apply to the board;
1-25                 (2)  be employed by or have been offered employment
1-26     with the office of the attorney general at the time the attorney
1-27     applies for the assistance; and
1-28                 (3)  enter into an agreement to serve as an attorney
1-29     with the office of the attorney general as provided by Section
1-30     61.953.
1-31           Sec. 61.953.  AGREEMENT; TERMS.  (a)  To qualify for
1-32     repayment assistance under this subchapter, an attorney must enter
1-33     into a written agreement with the board as provided by this
1-34     subchapter.  The agreement must specify the conditions the attorney
1-35     must satisfy to receive the repayment assistance.
1-36           (b)  To be eligible to receive the repayment assistance, an
1-37     attorney must agree to serve at least three years as an attorney
1-38     with the office of the attorney general.
1-39           (c)  Only service as an attorney with the office of the
1-40     attorney general after the date the attorney enters into the
1-41     agreement may be used to satisfy the service requirement under the
1-42     agreement.
1-43           (d)  The attorney must complete the service obligation during
1-44     the three years following the date of the agreement unless the
1-45     board grants the attorney additional time to begin fulfilling the
1-46     service obligation.  The board shall grant the attorney additional
1-47     time to complete the service obligation for good cause.
1-48           (e)  The board shall cancel an attorney's service obligation
1-49     if the board determines that the attorney:
1-50                 (1)  has become permanently disabled so that the
1-51     attorney is not able to serve as an attorney with the office of the
1-52     attorney general; or
1-53                 (2)  has died.
1-54           (f)  The board shall require an attorney who receives the
1-55     repayment assistance to sign an agreement in the nature of a
1-56     contract under which the attorney agrees to perform the required
1-57     years of service.  If the attorney does not fulfill the terms of
1-58     the agreement, all repayment assistance paid under this subchapter
1-59     on behalf of the attorney becomes a loan and must be repaid.  The
1-60     agreement must include a promissory note acknowledging the
1-61     conditional nature of the repayment assistance and promising to
1-62     repay the amount of the loan repayment, applicable interest, and
1-63     reasonable collection costs if the attorney does not satisfy the
1-64     applicable conditions.  The board shall determine the terms of the
 2-1     promissory note.
 2-2           Sec. 61.954.  LIMITATIONS.  (a)  For each year that an
 2-3     attorney serves as an attorney with the office of the attorney
 2-4     general under an agreement under Section 61.953, the attorney may
 2-5     receive repayment assistance under this subchapter in an amount not
 2-6     to exceed $6,000.
 2-7           (b)  An attorney may not receive repayment assistance under
 2-8     this subchapter for more than three years.
 2-9           Sec. 61.955.  ELIGIBLE LOANS. (a)  The board may provide
2-10     repayment assistance for the repayment of any education loan
2-11     received by the attorney through any lender, other than a private
2-12     individual, for:
2-13                 (1)  education at a school of law authorized by the
2-14     board to award a degree that satisfies the law study requirements
2-15     for licensure as an attorney in this state; or
2-16                 (2)  undergraduate education at an institution of
2-17     higher education or an accredited private or independent
2-18     institution of higher education.
2-19           (b)  The board may not provide repayment assistance for an
2-20     education loan that is in default at the time of the attorney's
2-21     application.
2-22           (c)  Each state fiscal biennium the board shall attempt to
2-23     allocate all funds appropriated for the purpose of providing
2-24     repayment assistance under this subchapter.
2-25           Sec. 61.956.  REPAYMENT. (a)  The board shall deliver any
2-26     repayment assistance made under this subchapter in a lump sum
2-27     payable to the lender and the attorney and in accordance with any
2-28     applicable federal law.
2-29           (b)  Repayment assistance received under this subchapter may
2-30     be applied to the principal amount of the loan and to interest that
2-31     accrues.
2-32           Sec. 61.957.  ASSISTANCE AVAILABLE TO BOARD.  The board may:
2-33                 (1)  appoint an advisory committee from outside the
2-34     board's membership to assist the board in performing the board's
2-35     duties under this subchapter; and
2-36                 (2)  request the assistance of the State Bar of Texas
2-37     and the office of the attorney general in performing those duties.
2-38           Sec. 61.958.  ACCEPTANCE OF FUNDS.  The board may solicit and
2-39     accept gifts, grants, and donations for the purposes of this
2-40     subchapter.
2-41           Sec. 61.959.  RULES. (a)  The board shall adopt rules
2-42     necessary for the administration of this subchapter.
2-43           (b)  The board shall distribute a copy of the rules adopted
2-44     under this section and pertinent information in this subchapter to:
2-45                 (1)  each school of law authorized by the board to
2-46     award a degree described by Section 61.955(a)(1);
2-47                 (2)  any appropriate state agency; and
2-48                 (3)  any appropriate professional association.
2-49           Sec. 61.960.  TOTAL AMOUNT OF REPAYMENT ASSISTANCE.  The
2-50     total amount of repayment assistance distributed by the board under
2-51     this subchapter may not exceed the total amount of gifts, grants,
2-52     and donations accepted by the board for repayment assistance,
2-53     tuition set aside under Section 61.961, and legislative
2-54     appropriations for repayment assistance.
2-55           Sec. 61.961.  LAW SCHOOL TUITION SET ASIDE FOR CERTAIN LOAN
2-56     REPAYMENTS. (a)  The governing board of each public school of law
2-57     in this state authorized by the board to award a degree that
2-58     satisfies the law study requirements for licensure as an attorney
2-59     in this state shall set aside one percent of tuition charges for
2-60     resident students enrolled in the school of law.
2-61           (b)  The amount set aside shall be transferred to the
2-62     comptroller to be maintained in the state treasury for the sole
2-63     purpose of repayment of education loans of attorneys under this
2-64     subchapter.  Section 403.095(b), Government Code, does not apply to
2-65     the amount set aside under this section.
2-66           SECTION 2.  The Texas Higher Education Coordinating Board
2-67     shall adopt the rules for the repayment assistance program under
2-68     Subchapter X, Chapter 61, Education Code, as added by this Act, not
2-69     later than December 1, 2001.
 3-1           SECTION 3.  The Texas Higher Education Coordinating Board
 3-2     shall submit a report to the legislature regarding the board's
 3-3     activities under Subchapter X, Chapter 61, Education Code, as added
 3-4     by this Act, not later than December 1, 2004.
 3-5           SECTION 4.  This Act takes effect September 1, 2001.
 3-6                                  * * * * *