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Substitute for HOUSE BILL No. 2595
AN A CT concerning attorneys at law; relating to the practice of law in rural Kansas;
enacting the attorney training program for rural Kansas act; providing stipends to law
students who meet certain requirements and agree to practice law in rural areas;
providing loan forgiveness to lawyers who meet certain requirements and practice
law in rural areas; establishing the attorney training program for rural Kansas fund.
Be it enacted by the Legislature of the State of Kansas:
Section 1. (a) Section 1 et seq., and amendments thereto, shall be
known and may be cited as the attorney training program for rural
Kansas act.
(b) The purpose of the act is to provide encouragement,
opportunities and incentives for licensed attorneys or individuals who
are pursing a law degree at Washburn university or the university of
Kansas to practice law in rural Kansas communities.
(c) As used in this act:
(1) "Department" means the department of commerce.
(2) "Law school" means the Washburn university school of law
and the university of Kansas school of law.
(3) "Law student" means an individual enrolled in and attending
law school at Washburn university or the university of Kansas.
(4) "Practice of law" includes:
(A) Representing a client in the practice of law;
(B) serving as corporate counsel or an attorney with a local, state
or federal government body;
(C) teaching at a law school approved by the American bar
association; and
(D) serving as a judge or judicial law clerk in a federal, state or
local court if the position requires a license to practice law.
(5) "Program agreement" means an agreement to meet all the
obligations provided in section 3, and amendments thereto.
(6) "Rural" or "rural community" means any county of this state
other than Douglas, Johnson, Sedgwick, Shawnee and Wyandotte
counties.
(d) The provisions of this section shall expire on July 1, 2031.
Sec. 2. (a) There is hereby established the law student training and
stipend program for rural Kansas. The program shall be administered
by the department in coordination with:
(1) Washburn university for Washburn university law students;
and
(2) the university of Kansas for university of Kansas law students.
(b) Subject to appropriations by the legislature, each law school
may enter into program agreements with law students who meet the
requirements of this section and any other requirements established by
the department and the applicable law school. Preference shall be given
to students who are Kansas residents.
(c) Each student entering into a program agreement under this
section shall receive a stipend in an amount of not to exceed $3,000 per
school year for not more than three years for tuition, books, supplies
and other school expenses incurred by a law student in pursuing a law
degree. Upon satisfaction of all obligations under this section and the
program agreement, the stipends provided pursuant to this section shall
be deemed satisfied and forgiven.
(d) The program agreement shall require each law student who
participates in the program to:
(1) Complete the law degree program at the law school;
(2) engage in the full-time practice of law in rural Kansas within
90 days after admittance to the Kansas bar for a period of at least 12
continuous months for each separate school year that a student receives
a stipend under the program, unless such obligation is otherwise
satisfied as provided in this section; and
(3) upon failure to satisfy the obligation to engage in the full-time
practice of law in rural Kansas in accordance with the provisions of this
section, repay to such university, within 90 days of such failure, the
amount equal to the total amount of the stipend received by such law
student less a prorated amount based on any such periods of practice of
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law in rural Kansas meeting the requirements of this section, plus
interest at the prime rate of interest plus 2% from the date that such
stipend accrued. Such interest shall be compounded annually.
(e) Each law school, in coordination with the department, may
adopt additional provisions, requirements or conditions for
participation in this program as deemed practicable and appropriate or
necessary for the implementation or administration of the program. Any
additional provisions, requirements or conditions shall not be
inconsistent with this act or appropriation acts of the legislature.
(f) Nothing in this section shall be construed to obligate or require
a law school to enter into a program agreement with a law student.
(g) (1) An obligation to engage in the practice of law in
accordance with this section shall be postponed during any:
(A) Period of temporary medical disability during which the
individual obligated is unable to practice law due to such disability;
(B) period of inability to engage in the practice of law for a reason
covered in the family and medical leave act; or
(C) other period of postponement agreed to or determined in the
program agreement.
(2) The obligation to engage in the practice of law required by this
section or the program agreement shall be satisfied if:
(A) The individual obligated is unable to practice law because of
permanent disability; or
(B) the individual obligated dies.
(h) The dean of university of Kansas school of law and the dean of
Washburn university school of law shall annually submit a report about
the program to the senate committees on ways and means and judiciary
and the house of representatives committees on appropriations,
judiciary and higher education budget.
(i) The provisions of this section shall expire on July 1, 2031.
Sec. 3. (a) There is hereby established the attorney training and
loan repayment program for rural Kansas. The program shall be
administered by the department.
(b) Subject to appropriations by the legislature, the department, in
coordination with Washburn university and the University of Kansas ,
shall develop and maintain a Kansas rural attorney loan repayment
program in which the state agrees to pay all or part of the principal,
interest and related expenses of the educational loans of each eligible
rural attorney selected for participation in the program. The department
shall establish the total amount of a nnual financial assistance available
under the loan repayment program. The amount of loan repayment
provided to each eligible attorney under this program shall be
determined by the department and shall not exceed $20,000 for each
year that each such attorney establishes eligibility for assistance. The
total amount of repayment assistance made to any eligible rural
attorney shall not exceed $100,000. No eligible rural attorney may
receive loan repayment assistance under this program for more than
five years.
(c) A rural attorney is eligible for loan repayment assistance under
the program if the rural attorney:
(1) Applies to the department on a form and in a manner
determined by the department;
(2) holds a law degree from an accredited postsecondary
educational institution;
(3) is licensed to practice law in Kansas and is in good standing at
the time of application;
(4) has outstanding student loan debt;
(5) resides in a rural community; and
(6) is engaged in the practice of law in a rural community.
(d) The department, in coordination with Washburn university and
the University of Kansas may approve applications and provide
repayment assistance for the repayment of any student loan for
education at a postsecondary educational institution, including, but not
limited to, loans for undergraduate education received by the rural
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attorney through a lender.
(e) (1) Loan repayment shall be available to eligible rural
attorneys on an annual basis. To receive loan repayment assistance, an
eligible rural attorney shall enter into an agreement to practice law in a
rural community for a period of at least 12 continuous months for each
separate year that such attorney receives loan repayment assistance
under the program, unless the loan repayment obligation is otherwise
satisfied as provided in this section.
(2) Each agreement entered into under this section shall include
reasonable penalties for breach of contract. The department shall be
responsible for enforcing the contract and collecting any damages or
penalties owed.
(f) An obligation to engage in the practice of law in accordance
with this section shall be postponed during any:
(1) Period of temporary medical disability during which the
individual obligated is unable to practice law due to such disability;
(2) period of inability to engage in the practice of law for a reason
covered in the family and medical leave act; or
(3) other period of postponement agreed to or determined in the
program agreement.
(g) An obligation to engage in the practice of law in accordance
with this section shall be satisfied if:
(1) The obligation to engage in the practice of law required by this
section or the program agreement has been completed;
(2) the individual obligated is unable to practice law because of
permanent disability; or
(3) the individual obligated dies.
(h) The department shall annually submit a report about the
program to the senate committees on ways and means and judiciary and
the house of representatives committees on appropriations, judiciary
and higher education budget. Such report shall include:
(1) The amount of moneys allocated to the attorney training
program for rural Kansas fund;
(2) the number of eligible rural attorneys who applied for the
program;
(3) the number of eligible rural attorneys who received loan
repayment assistance;
(4) the portion of moneys appropriated from the attorney training
program for rural Kansas fund reported by use, county, number and
categories of clients served in a manner that does not violate attorney-
client privilege; and
(5) the process for allocating funding.
(i) Nothing in this section shall be construed to create a legal
entitlement to loan repayment assistance.
(j) The provisions of this section shall expire on July 1, 2031.
Sec. 4. (a) There is hereby established in the state treasury the
attorney training program for rural Kansas fund. Such fund shall be
administered by the department of commerce . All moneys credited to
the attorney training program for rural Kansas fund shall be expended
only for student stipends for students who enter into an agreement
pursuant to section 3, and amendments thereto, or student loan
repayment for licensed attorneys who enter into an agreement pursuant
to section 4, and amendments thereto. All expenditures from the
attorney training program for rural Kansas fund shall be made in
accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the
secretary of commerce or the secretary's designee. All moneys received
by the department of commerce for the law student training and stipend
program for rural Kansas and the attorney training and loan repayment
program for rural Kansas shall be deposited in the state treasury in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury to the credit of the
attorney training program for rural Kansas fund.
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(b) The provisions of this section shall expire on July 1, 2031.
Sec. 5. The office of judicial administration shall coordinate with
the department as requested by the department to administer the
provisions of this act. Such coordination shall include, but not be
limited to, providing verification of bar admission, law school
graduation and employment verification for students who participate in
the attorney training program for rural Kansas. The supreme court may
establish rules to provide for securely sharing the information as
required in this section.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the House, and passed
that body
HOUSE concurred in
SENATE amendments __________________________________________________________________
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
President of the Senate.
Secretary of the Senate.
APPROVED ______________________________________________________________________________
Governor.