2005 California Education Code Sections 69740-69748 Article 12. Public Interest Attorney Loan Repayment Program

69740.  Unless the context requires otherwise, the definitions in
this section govern the construction of this article.
   (a) "Commission" means the Student Aid Commission.
   (b) "Eligible education and training programs" means education and
training programs approved by the commission that lead to
eligibility for a license to practice law as a licensed attorney.
   (c) "Eligible expenses" means reasonable expenses associated with
the costs of acquiring an education such as tuition, books,
equipment, fees, room and board, and other expenses determined by the
commission.
   (d) "Eligible participant" means a licensed attorney who has been
admitted to the program and is a resident of this state and who can
provide proof of residency in this state.
   (e) "Licensed attorney" means an attorney who resides in this
state who has successfully passed the California bar examination and
has been admitted to practice in this state or has otherwise been
licensed to practice law in this state by the State Bar of
California.
   (f) "Loan repayment" means a loan that is paid in full or in part
if the participant renders legal services in this state in a public
interest area of the law.
   (g) "Participant" means a licensed attorney who has been admitted
to the program and has commenced practice as a licensed attorney in
this state in a public interest area of the law.
   (h) "Program" means the Public Interest Attorney Loan Repayment
Program.
   (i) "Public interest area of the law" means those areas of the law
determined by the commission, in consultation with the advisory
committee, to serve the public interest, including, but not
necessarily limited to, providing direct legal service at a local (1)
legal services organization, (2) prosecuting attorney's office, (3)
child support agency office, or (4) criminal public defender's
office.  For the purposes of this article, a "legal services
organization" is a legal services provider in California that serves
a clientele over 70 percent of whom are low-income persons according
to applicable federal income guidelines.
   (j) "Required service obligation" means an obligation by the
participant to provide legal services in this state in a public
interest area of the law as established pursuant to this article.
69741.  The Public Interest Attorney Loan Repayment Program is
established for licensed attorneys who practice or agree to practice
in public interest areas of the law in this state.  The program shall
be administered by the commission.
69741.5.  The commission is limited to making 3,000 awards of loan
assumption annually.  Participants are eligible for a maximum of
eleven thousand dollars ($11,000) in loan assistance for four years,
as follows:
   (a) For the first year, two thousand dollars ($2,000) in loan
repayment assistance.
   (b) For the second, third, and fourth years, three thousand
dollars ($3,000) in loan repayment assistance for each year.
69742.  (a) The commission shall establish eligibility criteria for
participation in the program based upon need and merit.  These
criteria shall be based on all of the following, which are set forth
in order of importance:
   (1) The applicant's need, which shall be based on the applicant's
salary, personal resources, and law school debt.
   (2) The applicant's commitment to public interest law, which shall
be determined by examining the applicant's employment and volunteer
history, and taking into consideration a low-income applicant's need
to work while in law school.
   (3) The applicant's declared interest in practicing in areas of
the state where the need for public interest attorneys is high.
   (4) The applicant's academic achievements.
   (b) The commission shall adopt initial regulations for the program
within one year of the effective date of the initial appropriation
funding the program.
69743.  The program is intended to supplement, and not to replace,
existing loan repayment programs operated by law schools.  Prior to
participating in the program, an applicant shall apply for any
educational loan assistance from his or her educational institution
for which he or she may qualify.  Only if an applicant has received
no loan repayment assistance, or only partial assistance, from other
available sources, may he or she apply to the program for assistance
in repaying the balance of his or her educational loans.
69743.5.  The commission shall select, from the qualified
applicants, the individuals who are eligible to participate in the
program.  After each year-long period of full-time, or full-time
equivalent, employment in a public interest area of the law, the loan
repayment of the eligible participant shall be made to the lender.
69744.  The commission may use the funds appropriated for the
program, including reasonable administrative costs, for the purposes
of loan repayments.  The commission shall annually establish the
total amount of funding to be awarded for loan repayments.
Allocation of funds shall be established based upon the best use of
funding for that year, as determined by the commission.
69745.  (a) Loans from both government sources and financial
institutions may be repaid by the program.  Each participant shall
agree to allow the commission access to loan records and to acquire
information from lenders necessary to verify eligibility and to
determine payments.  Loans may not be renegotiated with lenders to
accelerate repayment.
   (b) Payments shall be made annually to the lender until the loan
is repaid, fulfilled, or until the required service obligation is
fulfilled and eligibility discontinues, whichever comes first.
   (c) If the participant discontinues practicing in a public
interest area of the law, payments against the loans of the
participant shall cease to be effective on the date that the
participant discontinues service.
69746.  The commission is not responsible for any outstanding
payments on principal and interest to any lender once a participant's
eligibility expires.
69747.  (a) The Public Interest Attorney Loan Repayment Endowment
Account is created in the State Treasury.
   (b) The commission shall deposit in the account all money received
for the program.  The account shall be self-sustaining and consist
of funds appropriated by the Legislature for the program and private
contributions to the program.
   (c) With the exception of the operating costs associated with the
management of the account by the Treasurer, the account shall be
credited with all investment income earned by the account.
69748.  (a) The Treasurer may invest, reinvest, manage, contract,
sell, or exchange money in the account.  Except as provided in
subdivision (d) of Section 69747, earnings from the investment of the
money in the account shall be retained by the account.
   (b) Money in the account may be spent only for the purposes of the
program as specified in this article.
   (c) The Treasurer shall routinely consult and communicate with the
commission on the investment policy, earnings of the trust, and
related needs of the program.