 |
|
 |
| Georgia General Assembly |
SB465.html
02 SB465/AP
Senate Bill
465
By: Senators Thompson of the 33rd, Tanksley of the
32nd and Stokes of the 43rd
AS PASSED
AN ACT
To amend Part 3 of Article 7 of Chapter 3 of Title 20 of the
Official Code of Georgia Annotated, relating to the Georgia Student Finance
Authority, so as to authorize the Georgia Student Finance Authority to establish
and administer education loan forgiveness programs for attorneys working in the
area of public interest; to provide for legislative findings; to establish a
nonprofit corporation to administer the fund for the programs; to provide an
additional purpose; to provide for related matters; to repeal conflicting laws;
and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
GEORGIA:
SECTION 1.
Part 3 of Article 7 of Chapter 3 of Title 20 of the Official
Code of Georgia Annotated, relating to the Georgia Student Finance Authority, is
amended by adding immediately after Subpart 3 a new Subpart 3A to read as
follows:
"Subpart
3A
20-3-380.
The General Assembly
finds that many attorneys graduate from law school with substantial education
debt; that the debt that saddles law school graduates prohibits many from
considering public interest work; that Georgia law firms, on average, pay first
year associates more than twice the entry level salary for public interest work;
that a need exists for public interest entities to hire competent attorneys;
that the public is better served by competent and qualified attorneys working in
the area of public interest; and that programs providing for education loan
forgiveness to encourage law students and other attorneys to seek employment in
the area of public interest would better enable public interest entities to
attract and retain experienced and qualified
attorneys.
20-3-381.
As
used in this subpart, the term:
(1) 'Assistant
district attorney' means an attorney employed full time as an assistant district
attorney.
(2) 'Assistant solicitor-general' or
'assistant solicitor' means an attorney employed full time as an assistant
solicitor-general, assistant city solicitor, or assistant municipal court
solicitor.
(3) 'Civil legal aid attorney' means an
attorney employed full time as an attorney in a tax-exempt legal aid nonprofit
corporation dedicated to providing free or reduced cost legal services to
low-income clients in civil cases.
(4) 'Civil legal
aid organization' means a tax-exempt legal aid nonprofit corporation dedicated
to providing free or reduced cost legal services to low-income clients in civil
cases.
(5) 'Education loan' means any obligation of an
attorney to repay a debt created by the advances of money to the attorney by an
institutional or governmental lender that financed, in whole or in part, the
debt incurred by the attorney to obtain the undergraduate degree necessary to
enter law school, the debt incurred to obtain a Juris Doctor degree or the
equivalent, or both.
(6) 'Fund' means the Public
Interest Lawyers´ Fund created by Code Section
20-3-383.
(7) 'Maximum amount authorized' means
$600.00 per month or an amount authorized by subsection (b) or (c) of Code
Section 20-3-387.
(8) 'Office of Legislative Counsel
attorney' means an attorney employed full time by the Office of Legislative
Counsel.
(9) 'Public defender' means an attorney
employed full time in a city, county, state, or university affiliated public
defender office or a criminal defense organization dedicated exclusively to
providing indigent defense services as a tax-exempt nonprofit corporation.
(10) 'Public defender organization' means a city,
county, state, or university affiliated public defender office or a criminal
defense organization dedicated exclusively to providing indigent defense
services as a tax-exempt nonprofit corporation.
(11)
'State Law Department attorney' means an attorney employed full time by the
State Law
Department.
20-3-382.
The
authority is authorized to establish and administer loan forgiveness programs
for education loans to encourage law students and other attorneys to choose
careers in the area of public interest. The authority is authorized to
prescribe all rules, regulations, policies, and procedures necessary or
convenient for the administration of these programs and all terms and conditions
applicable to payments made under this
subpart.
20-3-383.
(a)
There is created the Public Interest Lawyers´
Fund.
(b) The authority shall maintain the fund to
which shall be credited:
(1) State funds appropriated
for use by the authority for education loan forgiveness purposes;
and
(2) Unrestricted moneys received by gift or
otherwise and other moneys available for and determined by the authority to be
used for the purposes of this subpart.
The authority is
authorized to use moneys available in the fund to make payments to assist in
repaying education loans for eligible attorneys in accordance with its rules and
regulations.
(c) Any private donations made by gift or
otherwise to the fund may not be designated as to the specific program for which
they will be
used.
20-3-384.
(a) The
authority is authorized to establish a corporation to administer the fund. Any
subsidiary corporation created pursuant to this subsection shall be created
pursuant to Chapter 3 of Title 14, the 'Georgia Nonprofit Corporation Code,' and
the Secretary of State shall be authorized to accept any such filing. Upon
dissolution of any subsidiary corporation of the authority created pursuant to
this subsection, any assets shall revert to the authority or to any successor to
the authority or, failing such succession, to the State of Georgia. The
authority shall not be liable for the debts or obligations or bonds of any
subsidiary corporation or for the actions or omissions to act of any subsidiary
corporation unless the authority expressly so
consents.
(b) Any corporation established pursuant to
subsection (a) of this Code section, through the authority, is authorized to
enter into contracts with civil legal aid organizations or the employees of such
organizations and public defender organizations or the employees of such
organizations for the purpose of providing education loan forgiveness in
consideration of such organizations´ contributions and commitment to
providing legal services to low-income civil clients or indigent criminal
defendants of this state.
(c) In order for attorneys
employed by civil legal aid organizations and public defender organizations to
participate, such organizations must contract with the authority and promise to
provide the civil legal aid services or public defender services for the period
of time for which an assisted employee is obligated or some other period
determined by the authority.
20-3-385.
(a) The fund
shall be used by the authority to assist in the repayment of any education loan
owed by an individual who is:
(1) An assistant
district attorney, an assistant solicitor-general, or an assistant
solicitor;
(2) A civil legal aid
attorney;
(3) A public defender; or
(4) An Office of Legislative Counsel attorney or a State
Law Department attorney.
(b) The authority shall
establish four separate programs to assist each of the four categories of
recipients identified in subsection (a) of this Code section and shall account
separately for the funding of each program. Any state appropriation of funds
shall separately identify the amount of funds appropriated for each program.
Private donations and any other funds available for such programs shall be
allocated between such programs by the
authority.
20-3-386.
(a)
Beginning the seventh month that an attorney is employed in one of the positions
listed in Code Section 20-3-385, the authority may distribute education loan
repayment assistance for the attorney in an amount not to exceed $600.00 per
month or the attorney´s monthly debt service at the time the initial
payments on the loan commenced, whichever is smaller except as otherwise
provided in Code Section 20-3-387. The attorney may also elect to receive an
amount less than the maximum amount authorized and less than the attorney´s
monthly debt service.
(b) As a condition of receipt
of the loan forgiveness provided for in subsection (a) of this Code
section, the attorney shall enter into a contract with the authority providing
that the attorney will remain employed in one of the capacities specified in
subsection (a) of Code Section 20-3-385 for one month after receipt of the
attorney´s last monthly installment of such assistance for each month for
which such assistance was received up to a maximum of 18 months. If the
attorney receives the maximum amount authorized, the attorney shall remain
employed in such capacity for 18 months after receipt of the last monthly
installment. If the attorney receives a lesser amount of education loan
repayment assistance than the maximum amount authorized, the employment
commitment shall be decreased proportionately, as determined by the authority;
provided, however, the authority may release the attorney from such obligation
if it is demonstrated to the satisfaction of the authority that such attorney is
unable to obtain employment in said specified capacities.
(c) In the event that the attorney breaches the
conditions of the contract with the authority, all moneys distributed by the
authority under the contract during the 18 months immediately preceding the
month in which the breach occurs shall at once become due and payable to the
authority in cash with interest at a rate to be set by the
authority.
(d) The authority shall attempt to operate
in such a manner as to qualify for the tax benefits provided in 26 U. S. C. A.
Section 108.
(e) Nothing in this subpart shall preclude
the obligations of the attorney to repay his or her student loan by cash or by
service.
20-3-387.
(a)
No entitlement to funds is created by this subpart. Eligibility for education
loan forgiveness shall be dependent on funding through appropriations, as well
as all other conditions of eligibility, as determined by the
authority.
(b) In the event funds available to the
authority for any of the programs listed in Code Section 20-3-385 are not
sufficient for the full education loan forgiveness prescribed by the General
Assembly, education loan forgiveness payable on behalf of the individuals in
that program shall be reduced by the authority on a pro rata
basis.
(c) In the event sufficient funds are available
to the authority, the authority is authorized to increase the amount of the
education loan forgiveness available to individuals in the programs listed in
Code Section
20-3-385."
SECTION 2.
Said part is further amended by striking in its entirety
subsection (b) of Code Section 20-3-311, relating to legislative findings and
purpose of the Georgia Student Finance Authority, and inserting in its place the
following:
"(b)
The purposes of the authority shall be to improve higher educational
opportunities by providing educational scholarship, grant, and loan assistance
and to further other public purposes by loan forgiveness programs in specified
circumstances, all as prescribed and as provided for in this
part."
SECTION 3.
All laws and parts of laws in conflict with this Act are
repealed.