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 * * * * *