Part 8.
TEXAS JUDICIAL COUNCIL
Chapter 172.
COURT LAW CLERK EDUCATION
LOAN REPAYMENT PROGRAM
1 TAC §§172.1 - 172.7
The Texas Judicial Council proposes new §§172.1 - 172.7
concerning court law clerk education loan repayment program
rules. The 76th Legislature, 1999, appropriated funds to be
expended for the subsidization of the repayment of student
loans of those with proven need who accept clerkship positions
in the courts. These rules define the specific criteria for loan
repayment assistance and for the administration of the program.
Denise Davis, Director, has determined that for each year of
the first two years the sections are in effect there will be
fiscal implications as a result of enforcing or administering the
sections. She has determined that for each year of years three
through five that the sections are in effect there will be fiscal
implications to the extent that funds are appropriated for the
program.
The additional estimated cost to the state expected as a result
of administering the rule is $255,763 in fiscal year 2000 and
$255,763 in fiscal year 2001. No estimates are available for the
next three years, because it is unknown at this time whether the
program will be funded by the 76th Legislature, and the cost will
be to the extent that funds are appropriated.
There will be no estimated effects on local governments.
Denise Davis, Director, has determined that for each year of the
first five years that the rules will be in effect:
The public benefits expected as a result of adoption of the proposed
rule are that attorneys who choose court law clerk positions
will receive assistance in making student loan payments,
thereby lessening the financial disincentive in choosing this public
sector type of legal work;
The probable economic cost to persons required to comply with
the rule is minimal or nonexistent; and
The rule has no effect on small businesses.
Comments may be submitted to Denise Davis, Texas Judicial
Council, P.O. Box 12066, Austin, Texas 78711-2066.
The new sections are proposed under Texas Government Code
§71.019, which authorizes the Texas Judicial Council to adopt
rules expedient for the administration of its functions. Article IV,
§1, Office of Court Administration/Texas Judicial Council, Rider
7 (§7), Student Loan Repayment Program (Pg. IV-13) of the
1999 Appropriations Act provides for expenditure of funds for
the subsidization of the repayment of student loans of those
with proven need who accept clerkships or temporary attorney
positions in the courts. It further states that it is the intent of the
Legislature that the Texas Judicial Council, in connection with an
advisory group that includes law school deans, define specific
criteria for loan repayment assistance, and for the administration
of the program.
No article, statute, or code is affected by the proposed action.
§172.1. Purpose.
The purpose of the Court Law Clerk Education Loan Repayment
Program is to facilitate the recruitment of qualified individuals to
work as law clerks in Texas’ appellate courts.
§172.2. Definitions.
In this rule:
(1) "Court" means the Supreme Court of Texas, the Texas Court of Criminal
Appeals, or a court of appeals described by §22.201, Government Code.
(2) "Court law clerk" means a person who is employed by the Supreme Court of
Texas, the Texas Court of Criminal Appeals, or a court of appeals in Class
Number 3610, Salary Group B-9, of the State Auditor’s Position Classification
Plan.
(3) "Council" means the Texas Judicial Council.
(4) "Default" means a loan that has been reduced to judgment.
(5) "Eligible lender or holder" means a lender who makes education loans to
individuals for the purposes of attending an institution of higher education.
The term includes a bank, savings and loan association, credit union,
institution of higher education, secondary market, governmental agency, pension
fund, private foundation, or insurance company. A private individual is not an
eligible lender or holder.
(6) "Institution of higher education" means an accredited public or private
non-profit college, university, law school , or other professional school. The
term includes :
(A) an institution in the State of Texas that is described by §61.003, Education
Code; and
(B) an institution outside of the State of Texas described by §61.003, Education
Code, as determined by the Texas Judicial Council.
(7) "Program" means the Court Law Clerk Education Loan Repayment Program.
(8) "Service Period" means a term of employment with a court that is not less
than nine consecutive months and not more than 24 consecutive months.
§172.3. Administration.
(a) The Council administers the Court Law Clerk Education Loan Repayment
Program.
(b) The Council shall seek the advice and assistance of the Judiciary, the
Office of Court Administration, the Higher Education Coordinating Board, the
deans of the Texas law schools, and members of the legal profession in
performing its duties under this rule.
§172.4. Eligibility for Assistance.
To be eligible to receive student loan repayment assistance under this rule, a
person must:
(1) be employed by a court as a court law clerk for a service period of at least
nine consecutive months and not more than 24 consecutive months; and
(2) complete a court law clerk education loan repayment application.
§172.5. Eligible Education Loans.
(a) An education loan eligible for repayment is one that:
(1) was obtained through an eligible lender or holder for education at an
institution of higher education;
(2) does not entail a service obligation; and
(3) is not in default at the time of the court law clerk’s application for loan
repayment assistance under this rule.
(b) The note or other document governing the terms of the loan must require the
loan proceeds to be used for expenses incurred by the person attending an
institution of higher education.
§172.6. Procedures for Repayment of Education Loans.
(a) Repayments are subject to availability of funds and will be determined based
on the length of an applicant’s service period with a court and the total number
of court law clerks who are eligible to participate in the program.
(b) A repayment will be made when the court law clerk completes a service period
with a court. A repayment for a service period that is more than 12 months may
be made in two installments and prorated based on the number of additional
months remaining in the court law clerk’s service period and the amount of
available funds.
(c) A repayment must be made co-payable to an eligible lender or holder and to
the court law clerk as provided by law and may be applied to the principal
amount of the loan and to the interest that accrues on the loan.
(d) The Council retains the right to determine the eligibility of a lender or
holder of an education loan to which a payment may be made.
§ 172.7. Commencement of Service Period.
An eligible service period begins on or after August 1, 1999. A court law clerk
whose service period began before August 1, 1999, and who meets the eligibility
requirements of this rule may participate in the student loan repayment program.
A term of employment with a court that began before August 1, 1999, is not
calculated as part of a service period.
This agency hereby certifies that the proposal has been reviewed by legal
counsel and found to be within the agency’s legal authority to adopt.
Filed with the Office of the Secretary of State, on January 24,
2000.
TRD-200000456
Margaret McGloin Bennett
General Counsel, Office of Court Administration
Texas Judicial Council
Earliest possible date of adoption: March 12, 2000
For further information, please call: (512) 463-1625