Report Title:

Public Interest Attorneys; Loan Repayment Assistance Program

Description:

Creates a loan repayment assistance program for licensed attorneys who practice public interest law in Hawaii. (HB1002 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1002

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to public interest attorneys.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the cost of a legal education is high and steadily increasing. Numerous law students graduate with enormous amounts of debt to pay for their education. As a result, many students who aspire to work for the public interest--a field of law that sorely needs greater numbers of talented and enthusiastic attorneys--often cannot because they find it financially impossible to do so.

The purpose of this Act is to encourage and enable attorneys to practice law in the public interest by establishing a loan repayment assistance program for licensed attorneys who practice public interest law in Hawaii.

SECTION 2. Chapter 304, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304- Public interest law loan repayment program; special fund; established. (a) As used in this section:

"Administrator" means the assistant dean of the William S. Richardson school of law of the University of Hawaii.

"Advisory committee" means the committee responsible for proposing policy and guideline recommendations for approval by the administrator.

"Eligible loans" means all need-based federal, university, and educational loans incurred during the recipient's law school education that are not eligible for forgiveness or repayment assistance through another source. These loans include those owed to government sources, commercial lending institutions, or educational institutions, which are used to cover law school tuition and other reasonable expenses associated directly with the costs of education, such as books, equipment, fees, room and board, and other expenses determined by the administrator. Educational loans extended by a private individual or family member are not considered eligible loans for the purposes of this section.

(b) There shall be established a public interest law loan repayment program to be:

(1) Maintained by the William S. Richardson school of law of the University of Hawaii; and

(2) Administered by the administrator.

(c) To be considered for loan repayment assistance under the public interest law loan repayment program, an attorney shall:

(1) Have graduated from the William S. Richardson school of law of the University of Hawaii;

(2) Be licensed to practice law in the state under chapter 605; and

(3) Practice law in the public interest in the state, as determined by the administrator in consultation with the advisory committee, including but not limited to providing direct legal services to:

(A) A legal services organization that serves clients more than seventy per cent of whom are low-income persons according to applicable federal income guidelines;

(B) The department of the prosecuting attorney of any county;

(C) The child support enforcement agency of the state;

(D) The office of the state public defender; and

(E) A non-profit organization under Section 501(c)(3) of the Internal Revenue Code.

(d) The administrator shall make loan repayment assistance available to eligible attorneys on an annual basis. As a condition of receiving such assistance, the attorney shall enter into a contract with the public interest law loan repayment program in which the attorney shall agree to practice in a qualifying organization for a minimum of one year. In addition, the attorney shall notify the administrator in writing within thirty days of the date the attorney:

(1) Leaves employment with the qualifying organization; or

(2) Takes a leave of absence from the qualifying organization.

The contract for loan repayment assistance shall include penalties for breach of contract, as allowed by law.

(e) In consultation with the advisory committee, the administrator shall:

(1) Determine the total amount of annual loan repayment assistance available under the public interest law loan repayment program; and

(2) Establish selection criteria for eligibility for the program based upon need and merit.

The administrator shall use but not be limited to the following criteria in determining the priority and amount of loan repayment assistance provided:

(1) The demonstrated need of the applicant, which shall be based on the applicant's salary, personal resources, and amount of law school debt;

(2) The applicant's commitment to public interest law, which shall be determined by reviewing the applicant's record of employment and volunteer service, taking into consideration an applicant's need for remunerative employment while attending law school;

(3) The applicant's declared interest in practicing in areas where the need for public interest attorneys in the state is high; and

(4) The applicant's record of academic achievement.

The applicant shall provide to the public interest law loan repayment program the information listed in paragraphs (1) to (4), and other information as required, in an application form to be prepared by the program.

(f) The advisory committee shall be comprised of nine members appointed by the administrator and shall include but not be limited to:

(1) Attorneys licensed to practice law in the state, particularly those practicing law in the public interest;

(2) Faculty of the William S. Richardson school of law of the University of Hawaii; and

(3) Members of the general public.

(g) Nothing in this section shall be construed to create in any attorney a right to any loan repayment assistance or any specific amount of assistance offered under the public interest law loan repayment program.

(h) There shall be established a special fund to be known as the William S. Richardson school of law public interest law loan repayment program special fund, into which all appropriations, donations, and gifts shall be deposited. The administrator may use any amount of the moneys in the fund to provide eligible attorneys with loan repayment assistance. Upon determination by the administrator, the fiscal officer of the William S. Richardson school of law of the University of Hawaii shall disburse payments to eligible attorneys. The administrator shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session of an accounting of the program and the fund."

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2005-2006 for the William S. Richardson school of law public interest law loan repayment program for the purposes of this Act.

The sum appropriated shall be expended by the William S. Richardson school of law public interest law loan repayment program.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050.