S.F. _____ Section 1. Section 261.2, subsection 8, Code 2014, is 1 amended to read as follows: 2 8. Submit by January 15 annually a report to the general 3 assembly which provides, by program, the number of individuals 4 who received loan forgiveness in the previous fiscal year, 5 the amount paid to individuals under sections 261.23 , 261.73 , 6 and 261.112 , and 261.131, and the institutions from which 7 individuals graduated, and that includes any proposed statutory 8 changes and the commission’s findings and recommendations. 9 Sec. 2. NEW SECTION . 261.131 Legal aid attorney loan 10 forgiveness program. 11 1. For purposes of this section, unless the context 12 otherwise requires: 13 a. “Legal aid agency” means a not-for-profit legal aid 14 agency whose primary purpose is to provide legal representation 15 to low-income persons in Iowa and which is exempt from taxation 16 under section 501(c)(3) of the Internal Revenue Code. 17 b. “Legal aid attorney” means a licensed attorney who is 18 employed by a legal aid agency in this state. 19 2. A legal aid attorney loan forgiveness program is 20 established to be administered by the commission. The program 21 shall consist of loan forgiveness for eligible federally 22 guaranteed loans for licensed attorneys who practice at a legal 23 aid agency in this state. 24 3. Each applicant for loan forgiveness shall, in accordance 25 with the rules of the commission, do the following: 26 a. Complete and file an application for legal aid attorney 27 loan forgiveness. The individual shall be responsible for 28 the prompt submission of any information required by the 29 commission. 30 b. File a new application and submit information as 31 required by the commission annually on the basis of which the 32 applicant’s eligibility for the renewed loan forgiveness will 33 be evaluated and determined. 34 c. Complete and return, on a form approved by the 35 -1- LSB 5615XC (2) 85 je/nh 1/ 4

S.F. _____ commission, an affidavit of practice verifying that the 1 applicant meets the eligibility requirements of subsection 2. 2 4. The annual amount of legal aid attorney loan forgiveness 3 shall not exceed the resident tuition rate established for 4 the state university of Iowa college of law by the state 5 board of regents for the first year following the legal aid 6 attorney’s graduation from law school, or ten percent of the 7 legal aid attorney’s total federally guaranteed Stafford loan 8 amount under the federal family education loan program or the 9 federal direct loan program, including principal and interest, 10 whichever amount is less. A legal aid attorney shall be 11 eligible for the loan forgiveness program for not more than ten 12 consecutive years. 13 5. The commission shall develop criteria for prioritization 14 among eligible applicants if there are insufficient funds 15 available to award loan forgiveness to all eligible applicants 16 under the program. The criteria shall include the timeliness 17 of the applicant’s application, the applicant’s salary level, 18 the amount of the applicant’s eligible debt, the availability 19 of other loan repayment assistance to the applicant, the 20 monthly payment on the applicant’s eligible debt, the 21 applicant’s length of service as a legal aid attorney, and the 22 applicant’s prior participation in the program. 23 6. A legal aid attorney loan forgiveness repayment fund 24 is created for deposit of moneys appropriated to or received 25 by the commission for use under the program. Notwithstanding 26 section 8.33, moneys deposited in the fund shall not revert 27 to any fund of the state at the end of any fiscal year but 28 shall remain in the loan forgiveness repayment fund and be 29 continuously available for loan forgiveness under the program. 30 Notwithstanding section 12C.7, subsection 2, interest or 31 earnings on moneys deposited in the fund shall be credited to 32 the fund. 33 7. The commission shall submit in a report to the general 34 assembly by January 1, annually, the number of individuals 35 -2- LSB 5615XC (2) 85 je/nh 2/ 4

S.F. _____ who received loan forgiveness pursuant to this section, where 1 the participants practiced, the amount paid to each program 2 participant, and other information identified by the commission 3 as indicators of outcomes from the program. 4 8. The commission shall adopt rules to administer this 5 section. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill establishes a legal aid attorney loan forgiveness 10 program to be administered by the college student aid 11 commission. The program is to consist of loan forgiveness for 12 eligible federally guaranteed loans for licensed attorneys who 13 practice at a legal aid agency in this state. 14 The bill defines “legal aid agency” as a not-for-profit 15 legal aid agency whose primary purpose is to provide legal 16 representation to low-income persons in Iowa and which is 17 exempt from taxation under section 501(c)(3) of the Internal 18 Revenue Code. The bill defines “legal aid attorney” as a 19 licensed attorney who is employed by a legal aid agency in this 20 state. 21 The bill requires each applicant for loan forgiveness 22 to file an application for loan forgiveness, file a new 23 application annually for renewed loan forgiveness, and return 24 an affidavit of practice verifying that the applicant meets the 25 eligibility requirements of the program. 26 The annual amount of loan forgiveness cannot exceed the 27 resident tuition rate established for the state university 28 of Iowa college of law by the state board of regents for the 29 first year following the legal aid attorney’s graduation from 30 law school, or 10 percent of the legal aid attorney’s total 31 federally guaranteed Stafford loan amount, including principal 32 and interest, whichever amount is less. A legal aid attorney 33 cannot be eligible for the loan forgiveness program for more 34 than 10 consecutive years. 35 -3- LSB 5615XC (2) 85 je/nh 3/ 4

S.F. _____ The bill requires the commission to develop criteria 1 for prioritization among eligible applicants if there are 2 insufficient funds available to award loan forgiveness to 3 all eligible applicants under the program. The criteria 4 must include the timeliness of the applicant’s application, 5 the applicant’s salary level, the amount of the applicant’s 6 eligible debt, the availability of other loan repayment 7 assistance to the applicant, the monthly payment on the 8 applicant’s eligible debt, the applicant’s length of service as 9 a legal aid attorney, and the applicant’s prior participation 10 in the program. 11 The bill creates a legal aid attorney loan forgiveness 12 repayment fund for deposit of moneys appropriated to or 13 received by the commission for use under the program. 14 The bill requires the commission to submit in a report 15 to the general assembly by January 1, annually, the number 16 of individuals who received loan forgiveness pursuant to the 17 bill, where the participants practiced, the amount paid to each 18 program participant, and other information identified by the 19 commission as indicators of outcomes from the program. 20 The bill requires the commission to adopt rules to 21 administer the bill. 22 The bill adds the program to the commission’s ongoing 23 reporting requirements for loan forgiveness programs. 24 -4- LSB 5615XC (2) 85 je/nh 4/ 4