S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1660
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced  by  M.  of  A. CARROLL, CAHILL, L. ROSENTHAL, SIMON, SAYEGH,
   GOTTFRIED, DINOWITZ, DARLING, HYNDMAN -- Multi-Sponsored by --  M.  of
   A.  BUTTENSCHON, GRIFFIN -- read once and referred to the Committee on
   Judiciary
 
 AN ACT to amend the state finance law and the judiciary law, in relation
   to  establishing  a fund to assist public service attorneys practicing
   public service law to repay their student loans
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  shall be known and may be cited as the "public
 interest legal services loan assistance act".
   § 2. Declaration of policy and  legislative  intent.  The  legislature
 reaffirms  that  the  efficient  and effective provision of high-quality
 legal services on behalf of the state, its  political  subdivisions  and
 the populations therein depends on competent, dedicated attorneys making
 a  long-term  commitment to public-service work, whether as prosecutors,
 public defenders  or  other  indigent  defense  attorneys,  civil  legal
 services  attorneys,  or the equivalent. The legislature finds, however,
 that because these attorneys  often  carry  significant  and  increasing
 student  loan  debt  burdens  and have grave difficulty in repaying such
 debts on the relatively low salaries paid by most public interest  posi-
 tions, many of these attorneys are being forced to leave public service.
 The loss of so many capable public interest attorneys, often at the very
 time they have achieved sufficient training and experience to handle the
 most  complex  matters  of  public concern, has had an adverse impact on
 government generally and reduced the capacity of the criminal and  civil
 justice systems to provide  the consistently high-quality legal services
 the  people  of  New  York state deserve. The legislature finds that the
 difficulty of attracting  and  retaining  well-trained  public  interest
 lawyers due to student loan debt frustrates the achievement of important
 constitutional  and  statutory  policy objectives, increases the cost of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05347-01-1

 A. 1660                             2
 
 state and local government, and  diminishes  public  confidence  in  the
 criminal and civil justice systems. The legislature therefore recognizes
 the value of retaining these seasoned public servants in public interest
 positions  and finds that it is in the public interest to provide finan-
 cial assistance to help  these  attorneys  repay  their  student  loans.
 Accordingly,  the  legislature  hereby  establishes  the public interest
 legal services loan assistance fund.
   § 3. The state finance law is amended by adding a new section 99-g  to
 read as follows:
   §  99-G. PUBLIC INTEREST LEGAL SERVICES LOAN ASSISTANCE FUND. 1. THERE
 IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER  AND
 THE  CHIEF ADMINISTRATOR OF THE COURTS A SPECIAL FUND TO BE KNOWN AS THE
 "PUBLIC INTEREST LEGAL SERVICES LOAN ASSISTANCE FUND" OF  THE  STATE  OF
 NEW YORK.
   2.    THE  PUBLIC  INTEREST  LEGAL SERVICES LOAN ASSISTANCE FUND SHALL
 CONSIST OF THE MONIES DEPOSITED THEREIN PURSUANT TO SUBDIVISION  ONE  OF
 SECTION  FOUR  HUNDRED  SIXTY-FIVE  OF THE JUDICIARY LAW, AND ALL MONIES
 DEPOSITED THEREIN OR TRANSFERRED THERETO FROM ANY OTHER FUND  OR  SOURCE
 PURSUANT  TO  LAW,  INCLUDING VOLUNTARY CONTRIBUTIONS, TOGETHER WITH ANY
 INTEREST ACCRUED THEREON.
   3. ALL MONIES IN THE PUBLIC INTEREST LEGAL  SERVICES  LOAN  ASSISTANCE
 FUND  SHALL  BE AVAILABLE, SUBJECT TO APPROPRIATIONS, FOR THE PAYMENT OF
 SERVICES AND EXPENSES AS PROVIDED  FOR  IN  THE  PUBLIC  INTEREST  LEGAL
 SERVICES  LOAN ASSISTANCE PROGRAM AUTHORIZED BY ARTICLE FIFTEEN-B OF THE
 JUDICIARY LAW, INCLUDING THE COSTS TO THE UNIFIED COURT SYSTEM  INCURRED
 IN THE ADMINISTRATION OF SUCH PROGRAM.
   4.  ALL PAYMENTS OF MONEY FROM THE PUBLIC INTEREST LEGAL SERVICES LOAN
 ASSISTANCE FUND SHALL BE MADE ON THE AUDIT  AND  WARRANT  OF  THE  COMP-
 TROLLER  ON VOUCHERS CERTIFIED OR APPROVED BY THE CHIEF ADMINISTRATOR OF
 THE COURTS.
   § 4. Subdivision 1 of section 465 of the judiciary law, as amended  by
 section  6  of  part  K of chapter 56 of the laws of 2010, is amended to
 read as follows:
   1. Every person applying for examination for admission to practice  as
 an  attorney  and counselor at law shall pay a fee of [two] FOUR hundred
 [fifty] dollars, or seven hundred fifty dollars if, to qualify  to  take
 the  bar  examination, the person must satisfy the rules of the court of
 appeals for the admission of attorneys and counselors at  law  governing
 the  study  of  law in a foreign country, for each taking or retaking of
 the examination, or if dispensation has been received from the taking of
 the examination, [four] FIVE hundred dollars for credential  review  for
 admission on motion. All such fees shall be paid into the state treasury
 in  the  manner  provided by section one hundred twenty-one of the state
 finance law, PROVIDED THAT ONE HUNDRED FIFTY DOLLARS OF EACH FEE FOR THE
 TAKING OR RETAKING OF THE EXAMINATION AND ONE HUNDRED  DOLLARS  OF  EACH
 FEE  FOR CREDENTIAL REVIEW FOR ADMISSION ON MOTION SHALL BE DEPOSITED IN
 THE PUBLIC INTEREST LEGAL  SERVICES  LOAN  ASSISTANCE  FUND  ESTABLISHED
 PURSUANT TO SECTION NINETY-NINE-G OF THE STATE FINANCE LAW.
   § 5. The judiciary law is amended by adding a new article 15-B to read
 as follows:
                               ARTICLE 15-B
          PUBLIC INTEREST LEGAL SERVICES LOAN ASSISTANCE PROGRAM
 SECTION 499-AA. DEFINITIONS.
         499-BB. PROGRAM ADMINISTRATION.
         499-CC. PUBLIC INTEREST LEGAL SERVICES LOAN ASSISTANCE.
   § 499-AA. DEFINITIONS. AS USED IN THIS ARTICLE:

 A. 1660                             3
 
   1.  "ELIGIBLE  ATTORNEY" MEANS AN ATTORNEY ADMITTED TO PRACTICE LAW IN
 NEW YORK STATE WHO DURING THE STATE FISCAL YEAR FOR WHICH SUCH  ATTORNEY
 SEEKS  REIMBURSEMENT  FOR  THE  PAYMENT  OF  A  STUDENT LOAN EXPENSE WAS
 EMPLOYED EITHER AS A PROSECUTOR, AN  INDIGENT  DEFENSE  ATTORNEY,  OR  A
 CIVIL LEGAL SERVICES ATTORNEY; AND WHO HAS BOTH HELD A DEGREE FROM A LAW
 SCHOOL FOR NOT MORE THAN ELEVEN YEARS AND WAS WITHIN THE ELIGIBLE PERIOD
 DURING THE TIME FOR WHICH SUCH PERSON IS SEEKING SUCH REIMBURSEMENT.
   2.  "PROSECUTOR"  MEANS  A  FULL-TIME DISTRICT ATTORNEY, AS DEFINED IN
 SUBDIVISION THIRTY-ONE OF SECTION 1.20 OF THE CRIMINAL PROCEDURE LAW.
   3. "INDIGENT DEFENSE ATTORNEY" MEANS AN ATTORNEY WHO  IS  A  FULL-TIME
 EMPLOYEE  OF  ANY OF THE AGENCIES DESIGNATED BY SUBDIVISIONS ONE AND TWO
 OF SECTION SEVEN HUNDRED TWENTY-TWO  OF  THE  COUNTY  LAW,  AND  WHO  IS
 ENGAGED  FULL-TIME  IN THE PRACTICE OF CRIMINAL LAW ON BEHALF OF PERSONS
 CHARGED WITH A CRIME WHO ARE FINANCIALLY UNABLE TO OBTAIN COUNSEL.
   4. "CIVIL LEGAL SERVICES ATTORNEY" MEANS AN ATTORNEY WHO IS AN EMPLOY-
 EE OF:
   (A) THE STATE OR ANY  POLITICAL  SUBDIVISION  THEREOF,  INCLUDING  ALL
 PUBLIC INSTRUMENTALITIES THEREUNDER, AND WHO IS ENGAGED IN THE FULL-TIME
 PRACTICE  OF  LAW  ON  BEHALF  OF THE STATE OR ANY POLITICAL SUBDIVISION
 THEREOF; OR
   (B) A NOT-FOR-PROFIT CORPORATION OF THIS STATE THAT IS (I) EXEMPT FROM
 THE PAYMENT OF FEDERAL INCOME TAXES PURSUANT TO SECTION 501(C)(3) OF THE
 INTERNAL REVENUE CODE, AND (II) ESTABLISHED FOR THE PURPOSE OF PROVIDING
 LEGAL SERVICES THAT INCLUDE CIVIL LEGAL SERVICES TO PERSONS  WITHIN  NEW
 YORK STATE WHOSE ANNUAL INCOME DOES NOT EXCEED ONE HUNDRED FIFTY PERCENT
 OF THE PREVAILING POVERTY GUIDELINES ISSUED BY THE UNITED STATES DEPART-
 MENT  OF  HEALTH  AND HUMAN SERVICES OR ANY SUCCESSOR AGENCY; AND WHO IS
 ENGAGED IN THE FULL-TIME PRACTICE OF LAW ON BEHALF OF SUCH PERSONS.
   5. "ELIGIBLE PERIOD" MEANS THE SIX-YEAR PERIOD BETWEEN THE  COMPLETION
 OF  THE  THIRD  YEAR  AND  BEFORE  THE COMMENCEMENT OF THE TENTH YEAR OF
 EMPLOYMENT AS A  PROSECUTOR  AS  DEFINED  IN  SUBDIVISION  TWO  OF  THIS
 SECTION, OR INDIGENT DEFENSE ATTORNEY AS DEFINED IN SUBDIVISION THREE OF
 THIS SECTION, OR CIVIL LEGAL SERVICES ATTORNEY AS DEFINED IN SUBDIVISION
 FOUR  OF THIS SECTION. FOR PURPOSES OF THIS ARTICLE, ALL PERIODS OF TIME
 DURING WHICH AN ADMITTED ATTORNEY WAS EMPLOYED AS A PROSECUTOR, INDIGENT
 DEFENSE ATTORNEY OR CIVIL LEGAL SERVICES ATTORNEY SHALL BE COMBINED.
   6. "STUDENT LOAN EXPENSE" MEANS THE TOTAL PAYMENTS IN SATISFACTION  OF
 THE CUMULATIVE TOTAL OF THE ELIGIBLE ATTORNEY'S OUTSTANDING STUDENT LOAN
 DEBT COVERING THE TUITION AND OTHER COSTS OF ATTENDANCE AT A LAW SCHOOL,
 INCLUDING  INTEREST, REQUIRED TO BE MADE BY THE ELIGIBLE ATTORNEY DURING
 A STATE FISCAL YEAR. FOR PURPOSES OF THIS ARTICLE,  THE  AMOUNT  OF  THE
 STUDENT LOAN EXPENSE SHALL BE REDUCED BY THE TOTAL OF ALL GRANTS, SCHOL-
 ARSHIPS,  REIMBURSEMENTS,  LOAN FORGIVENESS OR SIMILAR REDUCTIONS TO THE
 ATTORNEY'S INDEBTEDNESS THAT THE ATTORNEY HAS RECEIVED OR SHALL  RECEIVE
 IN OR FOR SUCH YEAR.
   §  499-BB.  PROGRAM  ADMINISTRATION.  THE  CHIEF  ADMINISTRATOR OF THE
 COURTS SHALL ADMINISTER THE PUBLIC INTEREST LEGAL SERVICES LOAN  ASSIST-
 ANCE  PROGRAM AND SHALL PROMULGATE RULES AND REGULATIONS CONSISTENT WITH
 THIS ARTICLE TO GOVERN THE ADMINISTRATION OF  SUCH  PROGRAM.  THE  CHIEF
 ADMINISTRATOR SHALL CREATE AN APPLICATION PROCESS TO DETERMINE ELIGIBIL-
 ITY  FOR  APPLICANTS  TO RECEIVE STUDENT LOAN EXPENSE GRANTS PURSUANT TO
 THIS ARTICLE.
   § 499-CC. PUBLIC INTEREST LEGAL SERVICES LOAN ASSISTANCE.  1.  (A)  AN
 ELIGIBLE  ATTORNEY MAY APPLY, CONSISTENT WITH THIS ARTICLE AND THE RULES
 AND  REGULATIONS  PROMULGATED  BY  THE  CHIEF  ADMINISTRATOR,  FOR   THE
 REIMBURSEMENT  OF  STUDENT  LOAN  EXPENSE  PAYMENTS MADE BY THE ELIGIBLE

 A. 1660                             4
 
 ATTORNEY DURING A STATE FISCAL YEAR THAT  FALLS  COMPLETELY  WITHIN  THE
 ELIGIBLE  PERIOD  FOR  SUCH ATTORNEY. SUCH APPLICATION SHALL BE FILED AT
 SUCH TIME AS THE CHIEF ADMINISTRATOR MAY REQUIRE.
   (B)  AN  ELIGIBLE ATTORNEY, TO RECEIVE REIMBURSEMENT OF A STUDENT LOAN
 EXPENSE UNDER THIS ARTICLE, MAY APPLY FOR SUCH  REIMBURSEMENT  UPON  THE
 COMPLETION  OF  THE  FIRST  YEAR  OF HIS OR HER ELIGIBLE PERIOD, AND MAY
 APPLY FOR SUCH REIMBURSEMENT ANNUALLY THEREAFTER UPON THE COMPLETION  OF
 THE SECOND THROUGH SIXTH YEARS OF SUCH ELIGIBLE PERIOD; PROVIDED, HOWEV-
 ER, THAT EACH SUCH APPLICATION SHALL BE ONLY FOR HIS OR HER STUDENT LOAN
 EXPENSE PAYMENTS DURING THE PREVIOUS STATE FISCAL YEAR.
   2.  DURING  EACH STATE FISCAL YEAR COMMENCING ON OR AFTER APRIL FIRST,
 TWO THOUSAND TWENTY-ONE, THE STATE  SHALL  APPORTION  AND  PAY  TO  EACH
 ELIGIBLE  ATTORNEY,  PURSUANT  TO THIS ARTICLE AND SUBJECT TO THE AVAIL-
 ABILITY OF APPROPRIATIONS THEREFOR, AN AMOUNT EQUAL TO THE LESSER OF THE
 STUDENT LOAN EXPENSE OF SUCH ELIGIBLE ATTORNEY OR SIX THOUSAND  DOLLARS.
 THE  STATE ASSISTANCE APPORTIONED UNDER THIS SECTION SHALL BE DETERMINED
 BY THE CHIEF ADMINISTRATOR AND PAID OUT OF  THE  PUBLIC  INTEREST  LEGAL
 SERVICES LOAN ASSISTANCE FUND. IN THE EVENT THAT THE MONIES APPROPRIATED
 FROM SUCH FUND DURING A STATE FISCAL YEAR FOR PURPOSES OF MAKING ASSIST-
 ANCE  PAYMENTS  ARE  NOT SUFFICIENT TO PAY FULLY THE AMOUNTS APPORTIONED
 DURING SUCH FISCAL YEAR TO ALL ELIGIBLE ATTORNEYS ENTITLED THERETO, EACH
 ELIGIBLE ATTORNEY SHALL BE ENTITLED TO RECEIVE ONLY AN AMOUNT REPRESENT-
 ING THE SAME PROPORTION TO THE TOTAL MONIES APPROPRIATED, LESS NECESSARY
 ADMINISTRATIVE COSTS, AS THE AMOUNT APPORTIONED TO HIM OR HER  BEARS  TO
 THE  TOTAL  AMOUNT APPORTIONED TO ALL ELIGIBLE ATTORNEYS FOR SUCH FISCAL
 YEAR.
   § 6. Subdivision 1 of section 212 of the judiciary law is  amended  by
 adding a new paragraph (z) to read as follows:
   (Z)  ADMINISTER  THE  PUBLIC  INTEREST  LEGAL SERVICES LOAN ASSISTANCE
 PROGRAM PURSUANT TO ARTICLE FIFTEEN-B OF THIS CHAPTER.
   § 7. This act shall take effect September 1, 2021; provided,  however,
 that  the chief administrator of the courts is immediately authorized to
 promulgate  any  rules  and  regulations  necessary  to  implement   the
 provisions of this act on or before such effective date.