1 | 1 | | 2023S0259-T 03/07/23 |
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2 | 2 | | By: Smith H.B. No. 4487 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to student loan repayment assistance for prosecutors and |
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8 | 8 | | certain criminal lawyers practicing in rural counties. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Subchapter Y, Chapter 61, Education Code, is |
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11 | 11 | | amended to read as follows: |
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12 | 12 | | SUBCHAPTER Y. REPAYMENT OF CERTAIN LAW SCHOOL EDUCATION LOANS: |
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13 | 13 | | RURAL CRIMINAL LAWYERS [ASSISTANT DISTRICT OR COUNTY ATTORNEY] |
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14 | 14 | | Sec. 61.9601. DEFINITIONS [DEFINITION]. In this |
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15 | 15 | | subchapter: |
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16 | 16 | | (1) "Rural[, "rural] county" means a county with a |
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17 | 17 | | population of 100,000 [50,000] or less. |
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18 | 18 | | (2) "Appointed attorney" means an attorney who accepts |
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19 | 19 | | appointments to represent adult or juvenile indigent criminal |
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20 | 20 | | defendants. |
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21 | 21 | | (3) "Employed" means: |
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22 | 22 | | (A) full-time salaried work; |
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23 | 23 | | (B) for part-time employees, an annualized |
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24 | 24 | | average of 15 hours per week of salaried work; or |
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25 | 25 | | (C) an annualized average of 15 hours per week of |
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26 | 26 | | work as an appointed attorney. |
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27 | 27 | | Sec. 61.9602. REPAYMENT ASSISTANCE AUTHORIZED. (a) The |
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28 | 28 | | board shall provide, using funds appropriated for that purpose and |
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29 | 29 | | in accordance with this subchapter and board rules, assistance in |
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30 | 30 | | the repayment of [law school] education loans for attorneys who |
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31 | 31 | | apply and qualify for the assistance. |
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32 | 32 | | (b) The provision of financial assistance in the repayment |
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33 | 33 | | of education loans under this subchapter promotes a public purpose. |
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34 | 34 | | Sec. 61.9603. ELIGIBILITY. To be eligible to receive |
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35 | 35 | | repayment assistance, an attorney must: |
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36 | 36 | | (1) apply to the board; |
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37 | 37 | | (2) hold a law degree from an accredited institution |
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38 | 38 | | of higher education; |
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39 | 39 | | (3) at the time of the application, be licensed to |
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40 | 40 | | practice law in the State of Texas; |
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41 | 41 | | (4) have outstanding student loan debt; and |
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42 | 42 | | (5) be employed as a prosecutor, public defender, or |
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43 | 43 | | appointed attorney providing services in one or more rural counties |
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44 | 44 | | [be currently employed as an attorney by a district or county |
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45 | 45 | | attorney's office that serves a rural county; and |
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46 | 46 | | [(3) enter into an agreement to remain employed by the |
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47 | 47 | | district or county attorney's office as provided by Section |
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48 | 48 | | 61.9605]. |
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49 | 49 | | Sec. 61.9604. ELIGIBLE LOANS. (a) The board may provide |
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50 | 50 | | repayment assistance for the repayment of any student loan for |
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51 | 51 | | education at an institution of higher education, including loans |
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52 | 52 | | for undergraduate education, received by the individual [education |
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53 | 53 | | loan received by the attorney] through any lender [for education at |
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54 | 54 | | a school of law authorized by the board to award a degree that |
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55 | 55 | | satisfies the law study requirements for licensure as an attorney |
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56 | 56 | | in this state]. |
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57 | 57 | | (b) The board may not provide repayment assistance for an |
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58 | 58 | | education loan that is in default at the time of the attorney's |
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59 | 59 | | application. |
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60 | 60 | | [Sec. 61.9605. AGREEMENT. (a) To qualify for loan |
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61 | 61 | | repayment assistance under this subchapter, a person must enter |
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62 | 62 | | into a written agreement with the board as provided by this section. |
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63 | 63 | | The agreement must specify the conditions the person must satisfy |
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64 | 64 | | to receive repayment assistance. |
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65 | 65 | | [(b) The agreement must require the person to be employed |
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66 | 66 | | for a period of five years with a district or county attorney's |
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67 | 67 | | office that serves a rural county. Only employment with that |
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68 | 68 | | district or county attorney's office as an attorney after the date |
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69 | 69 | | the person enters into the agreement may be used to satisfy the |
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70 | 70 | | employment requirement under the agreement. |
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71 | 71 | | [(c) The agreement must provide that the repayment |
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72 | 72 | | assistance the person receives before the person has been employed |
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73 | 73 | | for five years as required by the agreement constitutes a loan until |
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74 | 74 | | the person completes the five years of employment and satisfies any |
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75 | 75 | | other applicable conditions of the agreement. The agreement must |
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76 | 76 | | require the person to sign a promissory note acknowledging the |
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77 | 77 | | conditional nature of the repayment assistance received and |
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78 | 78 | | promising to repay the amount of that assistance received plus |
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79 | 79 | | applicable interest and reasonable collection costs if the person |
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80 | 80 | | does not satisfy the applicable conditions. The board shall |
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81 | 81 | | determine the terms of the promissory note. To the extent |
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82 | 82 | | practicable, the terms must be the same as those applicable to state |
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83 | 83 | | or federally guaranteed student loans made at the same time. All |
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84 | 84 | | amounts collected in repayment of a loan under this subsection, |
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85 | 85 | | including interest, but excluding collection costs paid by the |
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86 | 86 | | board to another person to collect or assist in collecting the |
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87 | 87 | | amount, shall be deposited to the credit of the trust fund |
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88 | 88 | | established by Section 61.9608.] |
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89 | 89 | | Sec. 61.9606. REPAYMENT. (a) The amount of loan repayment |
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90 | 90 | | provided under this program shall be determined by the board and |
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91 | 91 | | shall not exceed the following amounts for each year for which the |
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92 | 92 | | individual establishes eligibility for the assistance: |
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93 | 93 | | (1) for the first year, $30,000; |
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94 | 94 | | (2) for the second year, $40,000; |
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95 | 95 | | (3) for the third year, $50,000; and |
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96 | 96 | | (4) for the fourth year, $60,000. |
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97 | 97 | | (b) The total amount of repayment assistance made to an |
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98 | 98 | | individual may not exceed $180,000. |
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99 | 99 | | (c) An individual may receive repayment assistance grants |
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100 | 100 | | for not more than four years [Except as provided by Section |
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101 | 101 | | 61.9609(a), the board shall provide repayment assistance under this |
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102 | 102 | | subchapter in the following amounts: |
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103 | 103 | | [(1) 60 percent of each payment due on an attorney's |
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104 | 104 | | eligible loans during the first 12-month period after the attorney |
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105 | 105 | | enters into the agreement under Section 61.9605; |
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106 | 106 | | [(2) 80 percent of each payment due on an attorney's |
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107 | 107 | | eligible loans during the second 12-month period after the attorney |
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108 | 108 | | enters into the agreement; and |
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109 | 109 | | [(3) 100 percent of each payment due on an attorney's |
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110 | 110 | | eligible loans during the third 12-month period after the attorney |
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111 | 111 | | enters into the agreement]. |
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112 | 112 | | (d) [(b)] The board shall deliver any repayment assistance |
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113 | 113 | | made under this subchapter in a lump sum payable: |
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114 | 114 | | (1) to both the individual and the lender or other |
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115 | 115 | | holder of the affected loan; or |
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116 | 116 | | (2) directly to the lender or other holder of the loan |
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117 | 117 | | on the individual's behalf [and the attorney and in accordance with |
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118 | 118 | | any applicable federal law]. |
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119 | 119 | | (e) [(c)] Loan repayment assistance received under this |
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120 | 120 | | subchapter may be applied to the principal amount of the loan and to |
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121 | 121 | | interest that accrues. |
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122 | 122 | | Sec. 61.9607. ADVISORY COMMITTEE. (a) The board shall |
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123 | 123 | | [may] appoint an advisory committee from outside the board's |
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124 | 124 | | membership to assist the board in performing the board's duties |
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125 | 125 | | under this subchapter. |
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126 | 126 | | (b) The advisory committee members must be comprised of |
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127 | 127 | | equal numbers of members recommended by: |
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128 | 128 | | (1) the Texas District and County Attorneys |
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129 | 129 | | Association; |
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130 | 130 | | (2) the Texas Indigent Defense Commission; and |
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131 | 131 | | (3) the Texas Judicial Council. |
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132 | 132 | | (c) The advisory committee shall make recommendations to |
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133 | 133 | | the board regarding rules that: |
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134 | 134 | | (1) establish a method for documenting and verifying |
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135 | 135 | | the hours worked or cases defended by applicants who are appointed |
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136 | 136 | | attorneys; and |
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137 | 137 | | (2) allocate repayment in a manner that incentivizes |
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138 | 138 | | service in the most rural counties. To do so, the advisory |
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139 | 139 | | committee shall consider: |
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140 | 140 | | (A) the population of the counties in which |
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141 | 141 | | applicants provide services; |
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142 | 142 | | (B) the degree of criminal lawyer scarcity in |
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143 | 143 | | those counties; and |
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144 | 144 | | (C) for appointed attorneys: |
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145 | 145 | | (i) the distances between the counties in |
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146 | 146 | | which an applicant provides service; |
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147 | 147 | | (ii) the volume of cases handled by the |
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148 | 148 | | applicant; and |
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149 | 149 | | (iii) the hours that the applicant devoted |
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150 | 150 | | to rural appointed cases during the previous calendar year. |
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151 | 151 | | Sec. 61.9608. FUNDING. (a) The loan repayment assistance |
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152 | 152 | | program established by this subchapter is funded from the rural |
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153 | 153 | | prosecution and defense [district and county attorney] student loan |
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154 | 154 | | assistance trust fund. The trust fund is established outside the |
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155 | 155 | | treasury and is administered by the comptroller. Money in the trust |
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156 | 156 | | fund may be spent without appropriation and only to fund the |
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157 | 157 | | program. Interest and income from the assets of the trust fund |
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158 | 158 | | shall be credited to and deposited in the trust fund. |
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159 | 159 | | (b) The board may solicit and accept gifts, grants, and |
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160 | 160 | | donations from any public or private source for the purposes of this |
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161 | 161 | | subchapter and shall deposit money accepted under this subsection |
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162 | 162 | | to the credit of the trust fund. |
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163 | 163 | | (c) The legislature may appropriate money to the trust fund. |
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164 | 164 | | Sec. 61.9609. RULES. (a) The board shall adopt rules |
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165 | 165 | | necessary for the administration of this subchapter[, including a |
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166 | 166 | | rule that sets the maximum amount of loan repayment assistance that |
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167 | 167 | | an attorney may receive in one year]. |
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168 | 168 | | (b) The board shall distribute a copy of the rules adopted |
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169 | 169 | | under this section and pertinent information in this subchapter to: |
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170 | 170 | | (1) each school of law authorized by the board to award |
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171 | 171 | | a degree described by Section 61.9604(a); [and] |
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172 | 172 | | (2) any appropriate district or county attorneys; |
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173 | 173 | | (3) the Texas Indigent Defense Commission; and |
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174 | 174 | | (4) any appropriate public defender offices. |
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175 | 175 | | (c) The board shall administer the program under this |
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176 | 176 | | subchapter in a manner that maximizes any matching funds available |
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177 | 177 | | through other sources. |
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178 | 178 | | SECTION 2. This Act takes effect September 1, 2023. |
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