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 ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** 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