HBA-KDB H.B. 2323 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2323 By: Gallego Higher Education 8/7/2001 Enrolled BACKGROUND AND PURPOSE There is concern that the number of attorneys who provide legal services to the indigent and who work in district or county attorney's offices in rural counties is declining because of uncompetitive salary and benefits. To remedy this situation, an incentive may need to be provided to an attorney who chooses to serve the public through indigent legal services or through employment in a district or county attorney's office in a rural county. House Bill 2323 requires the Texas Higher Education Coordinating Board to provide assistance in the repayment of law school education loans for an attorney who provides legal services to the indigent or who is employed in a district or county attorney's office in a rural county. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Higher Education Coordinating Board in SECTION 1 (Section 61.958, Education Code), SECTION 2 (Section 61.9609, Education Code), and SECTION 3 of this bill. ANALYSIS House Bill 2323 amends the Education Code to require the Texas Higher Education Coordinating Board (THECB) to provide assistance in the repayment of law school education loans for attorneys who are employed in nonprofit organizations that provide legal services to indigent persons. The bill sets forth eligibility requirements for an attorney to receive repayment assistance (Secs. 61.951 and 61.952). The bill sets forth limitations on the repayment assistance (Sec. 61.953). The bill authorizes THECB to provide repayment assistance for loans received for education at an authorized law school. The bill prohibits THECB from providing repayment assistance for an education loan that is in default at the time of the attorney's application (Sec. 61.954). The bill requires THECB to deliver any repayment assistance in a lump sum payable to the lender and the attorney. The bill requires any repayment assistance to be reasonably related to the amount of time an attorney is employed by the eligible organization (Sec. 61.955). The bill authorizes THECB to appoint an advisory committee to assist THECB in performing its duties in relation to repayment assistance for attorneys of nonprofit organizations serving indigent persons (Sec. 61.956). The bill requires THECB to adopt, not later than December 1, 2001, rules necessary for the administration of the repayment assistance and the repayment assistance program, including a rule that sets a maximum amount of repayment assistance that an attorney may receive in one year, and to distribute a copy of the adopted rules and pertinent information to each authorized law school, any appropriate state agency, and any appropriate professional association (Sec. 61.958 and SECTION 3). The bill requires THECB to provide assistance in the repayment of law school education loans for attorneys who are employed by a district or county attorney's office that serves a rural county. The bill sets forth eligibility requirements for an attorney to receive repayment assistance (Secs. 61.9602 and 61.9603). The bill authorizes THECB to provide repayment assistance for loans received for education at an authorized law school. The bill prohibits THECB from providing repayment assistance for an education loan that is in default at the time of the attorney's application (Sec. 61.9604). To qualify for loan repayment assistance, a person must enter into a written agreement with THECB. The bill sets forth the conditions of the agreement (Sec. 61.9605). The bill sets forth the amounts of repayment assistance THECB is required to provide. The bill requires THECB to deliver any repayment assistance in a lump sum payable to the lender and the attorney (Sec. 61.9606). The bill authorizes THECB to appoint an advisory committee to assist THECB in performing its duties in relation to repayment assistance for district or county attorneys (Sec. 61.9607). The bill provides that the loan repayment assistance program is funded from the rural district and county attorney student loan trust fund, which is established outside of the treasury and is administered by the comptroller of public accounts. The bill provides that money in the trust fund may be spent without appropriation and only to fund the program. The bill authorizes the legislature to appropriate money to the trust fund (Sec. 61.9608). The bill requires THECB to adopt rules necessary for the administration of the repayment assistance and the repayment assistance program, including a rule that sets a maximum amount of repayment assistance that an attorney may receive in one year. The bill requires THECB to distribute a copy of the adopted rules and pertinent information to each authorized law school and any appropriate district or county attorneys (Sec. 61.9609). EFFECTIVE DATE September 1, 2001.