LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 18, 2001
  
  
          TO:  Honorable Irma Rangel, Chair, House Committee on Higher
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2553  by Uher (Relating to repayment assistance for
               certain law school loans of attorneys employed by
               district or county attorney's offices in rural
               counties.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill creates an education loan repayment program for attorneys, who
work in district or county offices that serve rural areas and agree to
be employed as such for five years.  The bill establishes a rural
district and county attorney student loan assistance trust fund outside
the treasury which would be administered by the Comptroller.  The Texas
Higher Education Coordinating Board estimates loan repayments in the
amount of $48,000 in fiscal year 2002 for ten attorneys, and $112,000 in
fiscal year 2003 for 20 attorneys.  The Texas Higher Education
Coordinating Board also estimates $80,000 in administrative costs for
fiscal year 2002 and $30,000 for fiscal year 2003.  These amounts would
not significantly impact State appropriations.
  
Technology Impact
  
The program would require creation of a loan repayment tracking system,
an employment tracking system, a loan forgiveness system, a diligence
letter and collections system, a system to convert repayments to loans
for those who do not fulfill the five-year agreement, and a system for
filing suit and entering judgement for those who do not repay remaining
loan balances.  Mainframe and PC programming, imaging system
programming, and telecommunications system programming would be
required.  PCs, monitors, and laser printers would also be required.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   781   Texas Higher Education Coordinating Board
LBB Staff:         JK, CT, DB, KC