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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.