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House
File
2760
-
Introduced
HOUSE
FILE
2760
BY
COMMITTEE
ON
APPROPRIATIONS
(SUCCESSOR
TO
HF
2331)
(SUCCESSOR
TO
HSB
532)
A
BILL
FOR
An
Act
creating
an
attorney
loan
repayment
program,
and
making
1
appropriations.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5083HZ
(2)
91
mb/jh
H.F.
2760
Section
1.
NEW
SECTION
.
256.232
Attorney
loan
repayment
1
program
——
fund.
2
1.
Program
established.
The
college
student
aid
commission
3
shall
establish
an
attorney
loan
repayment
program
to
encourage
4
attorneys
to
remain
and
practice
law
in
this
state.
5
2.
Eligibility.
An
individual
is
eligible
to
apply
to
6
enter
into
a
program
agreement
with
the
college
student
aid
7
commission
pursuant
to
subsection
3
if
the
individual
meets
all
8
of
the
following
requirements:
9
a.
Is
a
graduate
of
an
accredited
law
school.
10
b.
Is
licensed
to
practice
law
in
Iowa.
11
c.
Is
practicing
law
in
Iowa
at
the
time
of
application
or
12
commits
to
begin
practicing
law
in
this
state
upon
execution
13
of
a
program
agreement.
14
3.
Program
agreements.
An
agreement
shall
be
entered
into
15
by
an
eligible
attorney
and
the
college
student
aid
commission.
16
Under
the
agreement,
to
receive
loan
repayments
pursuant
to
17
subsection
5,
an
eligible
attorney
shall
agree
to
and
fulfill
18
all
of
the
following
requirements:
19
a.
Remain
and
practice
law
in
Iowa
in
the
area
designated
20
pursuant
to
the
attorney’s
preference
determination
during
each
21
year
for
which
loan
repayment
assistance
is
received.
22
b.
Provide
not
less
than
the
number
of
hours
per
year
of
23
legal
services
as
an
indigent
defense
attorney
as
designated
24
pursuant
to
the
attorney’s
preference
determination.
25
4.
Priority.
26
a.
In
awarding
loan
repayment
assistance
under
this
section,
27
the
commission
shall
give
priority
to
attorneys
who
practice
28
law
in
this
state
in
the
following
order:
29
(1)
Attorneys
who
reside
and
practice
law
in
rural
areas
30
of
the
state
and
provide
a
minimum
of
fifty
hours
of
indigent
31
defense
services
annually.
32
(2)
Attorneys
who
practice
law
in
rural
areas
of
the
state
33
and
provide
a
minimum
of
one
hundred
hours
of
indigent
defense
34
services
annually.
35
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(3)
Attorneys
who
practice
law
in
Iowa
and
provide
two
1
hundred
hours
of
indigent
defense
services
annually.
2
(4)
Attorneys
who
graduated
from
an
Iowa
law
school,
an
3
Iowa
high
school,
or
completed
private
instruction
pursuant
to
4
chapter
299A.
5
b.
For
purposes
of
this
section,
“rural
area”
means
a
county
6
or
municipality
that
has
a
population
of
less
than
twenty-six
7
thousand
and
is
located
more
than
twenty
miles
from
a
city
with
8
a
population
of
at
least
fifty
thousand,
based
on
the
most
9
recent
federal
decennial
census.
10
5.
Loan
repayment
assistance.
An
eligible
attorney
11
who
enters
into
and
remains
in
compliance
with
a
program
12
agreement
pursuant
to
subsection
3
shall
receive
loan
repayment
13
assistance
in
an
amount
not
to
exceed
ten
thousand
dollars
per
14
year
or
the
outstanding
balance
of
the
attorney’s
eligible
15
loans,
whichever
is
less.
In
the
event
an
attorney
who
16
receives
loan
repayment
assistance
under
this
section
ceases
17
to
practice
law
in
accordance
with
the
program
agreement,
the
18
loan
repayment
assistance
shall
terminate
immediately,
the
19
loan
repayment
assistance
shall
be
prorated
for
the
months
the
20
attorney
complied
with
the
agreement,
and
no
further
payment
21
shall
be
made.
Loan
repayment
assistance
may
be
provided
for
22
each
year
of
eligible
practice
during
a
period
of
not
more
than
23
six
consecutive
years.
The
total
amount
of
loan
repayment
24
assistance
an
attorney
may
receive
under
the
program
shall
25
not
exceed
the
total
outstanding
balance
of
the
attorney’s
26
eligible
student
loans
at
the
time
the
program
agreement
27
is
executed.
For
purposes
of
this
section,
“eligible
loan”
28
means
the
attorney’s
total
federally
guaranteed
Stafford
loan
29
amount
under
the
federal
family
education
loan
program
or
the
30
federal
direct
loan
program,
the
attorney’s
federal
graduate
31
plus
loans,
or
the
attorney’s
federal
Perkins
loan,
including
32
principal
and
interest.
Loan
payment
assistance
received
33
pursuant
to
this
section
is
not
subject
to
Iowa
income
tax.
34
6.
Fund
established.
An
attorney
loan
repayment
program
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fund
is
created
in
the
state
treasury
under
the
control
of
the
1
college
student
aid
commission.
The
commission
may
accept
2
gifts,
grants,
bequests,
and
other
private
contributions,
as
3
well
as
state
or
federal
moneys,
for
deposit
in
the
fund.
All
4
moneys
deposited
in
the
fund
are
appropriated
to
the
commission
5
to
be
used
for
purposes
of
this
section.
Notwithstanding
6
section
8.33,
moneys
in
the
fund
that
remain
unencumbered
or
7
unobligated
at
the
close
of
a
fiscal
year
shall
not
revert
8
but
shall
remain
available
for
expenditure
for
the
purposes
9
designated.
Notwithstanding
section
12C.7,
subsection
2,
10
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
11
to
the
fund.
12
7.
Rules.
The
college
student
aid
commission
shall
adopt
13
rules
to
administer
this
section.
14
8.
Limitation.
The
program
shall
not
provide
assistance
for
15
more
than
twenty-five
attorneys
in
a
single
year.
16
Sec.
2.
Section
422.7,
Code
2026,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
46.
a.
Subtract,
to
the
extent
included,
19
income
resulting
from
the
payment
of
the
amount
of
any
loan
20
repayment
assistance
received
pursuant
to
section
256.232,
21
whether
paid
to
the
taxpayer
or
the
lender,
not
to
exceed
ten
22
thousand
dollars
in
any
tax
year.
23
b.
If
the
taxpayer
has
a
deduction
in
computing
federal
24
taxable
income
under
section
221
of
the
Internal
Revenue
Code
25
for
interest
on
a
qualified
education
loan,
the
taxpayer
shall
26
recompute
for
purposes
of
this
subsection
the
amount
of
the
27
deduction
under
paragraph
“a”
by
not
subtracting
any
amount
of
28
income
resulting
from
the
loan
repayment
assistance
received
29
pursuant
to
section
256.232
that
was
also
deducted
by
the
30
taxpayer
under
section
221
of
the
Internal
Revenue
Code.
31
c.
A
taxpayer
is
eligible
to
receive
a
deduction
pursuant
to
32
this
subsection
for
not
more
than
six
consecutive
tax
years
in
33
the
taxpayer’s
lifetime.
34
EXPLANATION
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The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
This
bill
establishes
an
attorney
loan
repayment
program
3
to
encourage
attorneys
to
remain
and
practice
law
in
Iowa.
4
The
program
is
to
be
administered
by
the
college
student
aid
5
commission.
6
The
bill
provides
that
an
individual
is
eligible
to
apply
for
7
the
program
if
the
individual
is
a
graduate
of
an
accredited
8
law
school,
is
licensed
to
practice
law
in
Iowa,
and
is
9
practicing
law
in
Iowa
at
the
time
of
application
or
commits
to
10
begin
practicing
law
in
the
state
upon
execution
of
a
program
11
agreement.
12
The
bill
requires
a
program
agreement
to
be
entered
into
by
13
the
commission
and
an
eligible
attorney.
Under
the
agreement,
14
an
attorney
must
agree
to
remain
and
practice
law
in
Iowa
15
during
each
year
for
which
loan
repayment
assistance
is
16
received
and
must
provide
not
less
than
the
number
of
hours
17
per
year
of
legal
services
as
an
indigent
defense
attorney
as
18
designated
pursuant
to
the
attorney’s
preference
determination.
19
The
bill
requires
the
commission
to
give
priority
in
20
awarding
loan
repayment
assistance
to
attorneys
who
practice
21
law
in
this
state
in
the
following
order:
(1)
attorneys
who
22
reside
and
practice
law
in
rural
areas
and
provide
a
minimum
of
23
50
hours
of
indigent
defense
services
annually;
(2)
attorneys
24
who
practice
law
in
rural
areas
and
provide
a
minimum
of
100
25
hours
of
indigent
defense
services
annually;
(3)
attorneys
who
26
practice
law
in
the
state
and
provide
200
hours
of
indigent
27
defense
services
annually;
and
(4)
attorneys
who
graduated
from
28
an
Iowa
law
school,
Iowa
high
school,
or
completed
private
29
instruction
pursuant
to
Code
chapter
299A.
30
The
bill
defines
“rural
area”
as
a
county
or
municipality
31
that
has
a
population
of
less
than
26,000
and
is
located
more
32
than
20
miles
from
a
city
with
a
population
of
at
least
50,000,
33
based
on
the
most
recent
federal
decennial
census.
34
The
bill
provides
that
an
eligible
attorney
who
enters
35
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into
and
remains
in
compliance
with
a
program
agreement
may
1
receive
loan
repayment
assistance
in
an
amount
not
to
exceed
2
$10,000
per
year
or
the
outstanding
balance
of
the
attorney’s
3
eligible
student
loans,
whichever
is
less.
If
an
attorney
4
who
receives
assistance
ceases
to
practice
law
in
accordance
5
with
the
attorney’s
program
agreement,
the
assistance
shall
6
terminate,
be
prorated,
and
no
further
payments
shall
be
made.
7
Loan
repayment
assistance
may
be
provided
for
not
more
than
8
six
consecutive
years,
and
the
total
amount
of
assistance
may
9
not
exceed
the
outstanding
balance
of
the
attorney’s
eligible
10
student
loans
at
the
time
the
agreement
is
executed.
The
bill
11
defines
“eligible
loan”
as
the
attorney’s
total
federally
12
guaranteed
Stafford
loan
amount
under
the
federal
family
13
education
loan
program
or
the
federal
direct
loan
program,
14
the
attorney’s
federal
graduate
plus
loans,
or
the
attorney’s
15
federal
Perkins
loan,
including
principal
and
interest.
16
The
bill
creates
an
attorney
loan
repayment
program
fund
17
in
the
state
treasury
under
the
control
of
the
commission.
18
The
fund
consists
of
gifts,
grants,
bequests,
private
19
contributions,
and
state
or
federal
moneys.
Moneys
in
the
fund
20
are
appropriated
to
the
commission
for
purposes
of
the
program,
21
do
not
revert
at
the
end
of
a
fiscal
year,
and
retain
interest
22
earnings.
23
The
bill
requires
the
commission
to
adopt
rules
to
24
administer
the
program
and
limits
participation
to
not
more
25
than
25
attorneys
in
a
single
year.
26
The
bill
provides
that
loan
payment
assistance
received
27
pursuant
to
the
program
is
not
subject
to
the
Iowa
income
tax.
28
The
bill
adds
a
corresponding
provision.
29
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