LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 27, 2001
  
  
          TO:  Honorable Irma Rangel, Chair, House Committee on Higher
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2766  by Delisi (Relating to repayment of certain law
               school education loans.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2766, As Introduced:  negative impact of $(3,676,322) through       *
*  the biennium ending August 31, 2003.                                  *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                         $(1,860,411)  *
          *       2003                          (1,815,911)  *
          *       2004                          (1,101,911)  *
          *       2005                          (1,107,911)  *
          *       2006                          (1,114,911)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***********************************************************************
*Fiscal    Probable    Probable    Probable    Probable   Change in    *
* Year     Savings/    Revenue     Revenue     Savings/   Number of    *
*        (Cost) from Gain/(Loss) Gain/(Loss) (Cost) from    State      *
*          General       from      from New  New General  Employees    *
*          Revenue     General     General     Revenue   from FY 2001  *
*          Fund for    Revenue     Revenue    Dedicated                *
*        Administra-     Fund     Dedicated    for Loan                *
*         tive Cost      0001                 Repayments               *
*         and Pilot                                                    *
*          Project                                                     *
*            0001                                                      *
*  2002    $(818,411)              $1,042,000                     1.5  *
*                    $(1,042,000)            $(1,042,000)              *
*  2003     (766,911) (1,049,000)   1,049,000 (1,049,000)         1.5  *
*  2004      (46,911) (1,055,000)   1,055,000 (1,055,000)         1.5  *
*  2005      (46,911) (1,061,000)   1,061,000 (1,061,000)         1.5  *
*  2006      (46,911) (1,068,000)   1,068,000 (1,068,000)         1.5  *
***********************************************************************
  
Technology Impact
  
Programming would be required for: systems to process applications and
vouchers; for a system to track participants and make loan payments; for
an accounting system; for a system to monitor education loan debt and
holders of education loan notes; for a system to track lawyers employed
by state agencies; for an imaging system; and for a telecommunications
system.
  
  
Fiscal Analysis
  
The bill creates an education loan repayment program to be administered
by the Higher Education Coordinating Board (THECB) to provide repayment
of education loans incurred during undergraduate and professional
education for lawyers, who practice law for any Texas state agency.
Lawyers would be eligible to receive loan repayment for up to five years.

In addition, the bill would create a dedicated account in the General
Revenue Fund - Lawyer Student Loan Repayments - and require 10 percent
of the Attorney Occupation Tax to be deposited to the credit of this
account for the sole purpose of repayment of student loans of lawyers.
  
  
Methodology
  
According to the Office of the Attorney General, there are currently 120
attorneys in their office who would qualify for student loan repayment
assistance grants in a pilot program.  If grants of $6,000 per year were
provided for 120 attorneys the annual cost of the pilot project would be
$720,000.

The THECB estimates that administrative costs for the program would be
$98,411 in fiscal year 2002 and $46,911 annually each year thereafter.

The Comptroller's Office estimates that the amounts to be transferred
from the undedicated portion of General Revenue to the dedicated portion
would be $1,042,000 in fiscal year 2002, $1,049,000 in fiscal year 2003,
$1,055,000 in fiscal year 2004, $1,061,000 in fiscal year 2005, and
$1,068,000 in fiscal year 2006.   The full amount of the fund is assumed
to be distributed for loan repayments each year.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   200   Supreme Court, 304   Comptroller of Public
                   Accounts, 781   Texas Higher Education Coordinating
                   Board, 302   Office of the Attorney General
LBB Staff:         JK, CT, DB, KC