HBA-KDB H.B. 2323 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2323
By: Gallego
Higher Education
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

There is concern that the number of attorneys who provide legal services to
the indigent 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.  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. 

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) and SECTION 2 of this
bill. 

ANALYSIS

House Bill 2323 amends the Education Code to require the Texas Higher
Education Coordinating Board (board) to provide assistance in the repayment
of law school education loans for attorneys who apply and qualify for the
assistance.  To be eligible to receive repayment assistance, an attorney
must apply to the board and be currently practicing in this state as an
attorney employed by an organization that qualifies for an exemption from
federal income taxes, that is prohibited from providing representation in a
class-action lawsuit, and that provides a criminal defense or civil legal
services for indigent individuals.  The bill sets forth limitations on
repayment assistance.  The bill authorizes the board to provide repayment
assistance for loans received through any lender for education at an
authorized law school.  The bill prohibits the board from providing
repayment assistance for an education loan that is in default at the time
of the attorney's application.  The bill requires the board to deliver any
repayment assistance in a lump sum payable to the lender and the attorney
and in accordance with any applicable federal law.  The bill authorizes the
board to appoint an advisory committee to assist the board in performing
the board's duties in relation to repayment assistance for certain law
school education loans.  The bill requires the board to adopt, not later
than December 1, 2001, rules necessary for the administration of such
repayment assistance and the repayment assistance program, 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. 

EFFECTIVE DATE

September 1, 2001.