1 | 1 | | 89R8352 CMO-F |
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2 | 2 | | By: Phelan H.B. No. 5211 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to student loan repayment assistance for certain attorneys |
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10 | 10 | | providing legal services in rural counties. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. The heading to Subchapter Y, Chapter 61, |
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13 | 13 | | Education Code, is amended to read as follows: |
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14 | 14 | | SUBCHAPTER Y. REPAYMENT OF CERTAIN STUDENT [LAW SCHOOL EDUCATION] |
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15 | 15 | | LOANS: RURAL CRIMINAL JUSTICE SYSTEM [ASSISTANT DISTRICT OR |
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16 | 16 | | COUNTY] ATTORNEY |
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17 | 17 | | SECTION 2. Subchapter Y, Chapter 61, Education Code, is |
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18 | 18 | | amended by amending Sections 61.9601, 61.9602, 61.9603, 61.9604, |
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19 | 19 | | 61.9606, and 61.9607 and adding Sections 61.96061 and 61.96062 to |
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20 | 20 | | read as follows: |
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21 | 21 | | Sec. 61.9601. DEFINITION. In this subchapter, "rural |
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22 | 22 | | county" means a county with a population of 100,000 [50,000] or |
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23 | 23 | | less. |
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24 | 24 | | Sec. 61.9602. REPAYMENT ASSISTANCE AUTHORIZED. (a) The |
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25 | 25 | | board shall provide, using funds appropriated for that purpose and |
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26 | 26 | | in accordance with this subchapter and board rules, assistance in |
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27 | 27 | | the repayment of eligible student [law school education] loans for |
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28 | 28 | | eligible attorneys who apply and qualify for the assistance. |
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29 | 29 | | (b) The provision of financial assistance in the repayment |
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30 | 30 | | of student [education] loans under this subchapter promotes a |
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31 | 31 | | public purpose. |
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32 | 32 | | Sec. 61.9603. ELIGIBILITY. To be eligible to receive |
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33 | 33 | | repayment assistance, an attorney must: |
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34 | 34 | | (1) apply to the board; |
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35 | 35 | | (2) have earned a law degree from an accredited law |
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36 | 36 | | school; |
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37 | 37 | | (3) be an attorney licensed in this state; |
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38 | 38 | | (4) have an outstanding student loan balance; and |
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39 | 39 | | (5) be currently: |
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40 | 40 | | (A) employed full time, or part time working an |
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41 | 41 | | annualized average of at least 15 hours per week, as: |
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42 | 42 | | (i) a prosecuting [an] attorney by a |
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43 | 43 | | district or county attorney's office that serves one or more [a] |
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44 | 44 | | rural counties [county]; or |
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45 | 45 | | (ii) a public defender by a county public |
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46 | 46 | | defender's office that serves one or more rural counties; or |
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47 | 47 | | (B) appointed as an attorney to represent |
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48 | 48 | | indigent individuals in criminal or juvenile cases who, in the most |
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49 | 49 | | recent calendar year, provided services to those individuals in one |
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50 | 50 | | or more rural counties for an average of at least 15 hours per week |
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51 | 51 | | [and |
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52 | 52 | | [(3) enter into an agreement to remain employed by the |
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53 | 53 | | district or county attorney's office as provided by Section |
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54 | 54 | | 61.9605]. |
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55 | 55 | | Sec. 61.9604. ELIGIBLE LOANS. (a) The board may provide |
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56 | 56 | | repayment assistance under this subchapter for the repayment of any |
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57 | 57 | | student [education] loan [received by the attorney through any |
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58 | 58 | | lender] for the costs of attendance [education] at an institution |
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59 | 59 | | of higher education, including loans for undergraduate education, |
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60 | 60 | | received by an eligible person through any lender [a school of law |
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61 | 61 | | authorized by the board to award a degree that satisfies the law |
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62 | 62 | | study requirements for licensure as an attorney in this state]. |
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63 | 63 | | (b) The board may not provide repayment assistance for a |
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64 | 64 | | student [an education] loan that is in default at the time of the |
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65 | 65 | | attorney's application. |
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66 | 66 | | Sec. 61.9606. REPAYMENT. (a) [Except as provided by |
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67 | 67 | | Section 61.9609(a), the board shall provide repayment assistance |
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68 | 68 | | under this subchapter in the following amounts: |
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69 | 69 | | [(1) 60 percent of each payment due on an attorney's |
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70 | 70 | | eligible loans during the first 12-month period after the attorney |
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71 | 71 | | enters into the agreement under Section 61.9605; |
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72 | 72 | | [(2) 80 percent of each payment due on an attorney's |
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73 | 73 | | eligible loans during the second 12-month period after the attorney |
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74 | 74 | | enters into the agreement; and |
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75 | 75 | | [(3) 100 percent of each payment due on an attorney's |
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76 | 76 | | eligible loans during the third 12-month period after the attorney |
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77 | 77 | | enters into the agreement. |
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78 | 78 | | [(b)] The board shall deliver any repayment assistance made |
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79 | 79 | | under this subchapter in a lump sum payable: |
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80 | 80 | | (1) to both the lender or other holder of the loan and |
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81 | 81 | | the attorney; or |
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82 | 82 | | (2) directly to the lender or other holder of the loan |
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83 | 83 | | on the attorney's behalf [and in accordance with any applicable |
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84 | 84 | | federal law]. |
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85 | 85 | | (b) [(c)] Loan repayment assistance received under this |
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86 | 86 | | subchapter may be applied to the principal amount of the loan and to |
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87 | 87 | | interest that accrues. |
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88 | 88 | | Sec. 61.96061. AMOUNT OF REPAYMENT ASSISTANCE. (a) |
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89 | 89 | | Subject to Subsection (b), an attorney may receive loan repayment |
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90 | 90 | | assistance under this subchapter for each year the attorney |
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91 | 91 | | establishes eligibility for the assistance in an amount determined |
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92 | 92 | | by the board not to exceed: |
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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 received by an |
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98 | 98 | | attorney under this subchapter may not exceed $180,000. |
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99 | 99 | | Sec. 61.96062. LIMITATIONS. An attorney may receive loan |
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100 | 100 | | repayment assistance under this subchapter for not more than four |
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101 | 101 | | years. |
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102 | 102 | | Sec. 61.9607. ADVISORY COMMITTEE. (a) The board shall |
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103 | 103 | | [may] appoint an advisory committee from outside the board's |
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104 | 104 | | membership to assist the board in performing the board's duties |
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105 | 105 | | under this subchapter. |
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106 | 106 | | (b) The advisory committee shall be composed of an equal |
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107 | 107 | | number of members appointed by: |
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108 | 108 | | (1) the Texas District and County Attorneys |
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109 | 109 | | Association; |
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110 | 110 | | (2) the Texas Indigent Defense Commission; and |
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111 | 111 | | (3) the Texas Judicial Council. |
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112 | 112 | | (c) The advisory committee shall make recommendations to |
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113 | 113 | | the board regarding rules that: |
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114 | 114 | | (1) establish a method for documenting and verifying |
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115 | 115 | | the number of hours worked for purposes of Section 61.9603(5); and |
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116 | 116 | | (2) allocate repayment funding under this subchapter |
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117 | 117 | | in a manner that incentivizes service in the most rural counties. |
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118 | 118 | | (d) In developing recommendations under Subsection (c)(2), |
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119 | 119 | | the advisory committee shall consider: |
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120 | 120 | | (1) the population of the counties in which applicants |
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121 | 121 | | for repayment assistance under this subchapter provide services; |
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122 | 122 | | (2) the degree of scarcity of prosecutors, public |
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123 | 123 | | defenders, and indigent criminal or juvenile defense services |
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124 | 124 | | providers in those counties; and |
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125 | 125 | | (3) for applicants who are attorneys appointed to |
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126 | 126 | | represent indigent criminal or juvenile defendants: |
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127 | 127 | | (A) the distances between counties in which an |
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128 | 128 | | applicant provides indigent criminal or juvenile defense services; |
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129 | 129 | | (B) the volume of cases handled by an applicant; |
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130 | 130 | | and |
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131 | 131 | | (C) the number of hours that an applicant |
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132 | 132 | | provided indigent criminal or juvenile defense services in the |
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133 | 133 | | applicable calendar year. |
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134 | 134 | | SECTION 3. Section 61.9608(a), Education Code, is amended |
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135 | 135 | | to read as follows: |
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136 | 136 | | (a) The loan repayment assistance program established by |
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137 | 137 | | this subchapter is funded from the rural criminal justice system |
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138 | 138 | | [district and county] attorney student loan assistance trust fund. |
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139 | 139 | | The trust fund is established outside the treasury and is |
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140 | 140 | | administered by the comptroller. Money in the trust fund may be |
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141 | 141 | | spent without appropriation and only to fund the program. Interest |
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142 | 142 | | and income from the assets of the trust fund shall be credited to |
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143 | 143 | | and deposited in the trust fund. |
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144 | 144 | | SECTION 4. Section 61.9609, Education Code, is amended to |
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145 | 145 | | read as follows: |
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146 | 146 | | Sec. 61.9609. RULES. (a) The board shall adopt rules |
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147 | 147 | | necessary for the administration of this subchapter[, including a |
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148 | 148 | | rule that sets the maximum amount of loan repayment assistance that |
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149 | 149 | | an attorney may receive in one year]. |
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150 | 150 | | (b) The board shall distribute a copy of the rules adopted |
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151 | 151 | | under this section and pertinent information in this subchapter to: |
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152 | 152 | | (1) each school of law authorized by the board to award |
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153 | 153 | | a degree that satisfies the law study requirements for licensure as |
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154 | 154 | | an attorney in this state [described by Section 61.9604(a)]; [and] |
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155 | 155 | | (2) any appropriate district or county attorney's |
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156 | 156 | | office; |
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157 | 157 | | (3) the Texas Indigent Defense Commission; and |
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158 | 158 | | (4) any appropriate public defender's office |
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159 | 159 | | [attorneys]. |
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160 | 160 | | (c) The board shall administer the program under this |
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161 | 161 | | subchapter in a manner that maximizes any matching funds available |
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162 | 162 | | through other sources. |
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163 | 163 | | SECTION 5. Section 61.9605, Education Code, is repealed. |
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164 | 164 | | SECTION 6. (a) As soon as practicable after the effective |
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165 | 165 | | date of this Act, the Texas Higher Education Coordinating Board |
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166 | 166 | | shall adopt rules necessary to administer Subchapter Y, Chapter 61, |
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167 | 167 | | Education Code, as amended by this Act. |
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168 | 168 | | (b) Subchapter Y, Chapter 61, Education Code, as amended by |
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169 | 169 | | this Act, applies only to loan repayment assistance initially |
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170 | 170 | | provided under that subchapter on or after the effective date of |
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171 | 171 | | this Act. A loan repayment assistance agreement entered into under |
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172 | 172 | | that subchapter before the effective date of this Act is governed by |
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173 | 173 | | the law in effect immediately before that date, and the former law |
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174 | 174 | | is continued in effect for that purpose. |
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175 | 175 | | SECTION 7. This Act takes effect September 1, 2025. |
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