Hawaii-2014-HB2182-Introduced

SECTION 1. This Act shall be known as the Hawaii Justice League Act of 2014.

The legislature finds that there is a lack of access to justice within the State in both civil and criminal contexts. The supreme court of Hawaii access to justice commission, established in 2008 to increase access to justice in civil legal matters for low- and moderate-income residents, found that one of the reasons for the severe disparity among citizens' abilities to access the judicial system is the insufficient number of attorneys choosing to practice public interest law.

The legislature finds that few new lawyers are able to practice public interest law due to the high cost of attending law school, the debt that law school graduates incur to finance their legal education, the high cost of living in Hawaii, and the compensation which is much lower than in other practice areas. Because of these circumstances, new lawyers pursuing public interest jobs often cannot service their student loan debt. Lawyers that choose to serve in public interest law can only do so by maintaining a "no-frills" subsistence level lifestyle. The increasingly high cost of attending law school requires lawyers to seek out higher paying jobs that allow for repayment of student loans.

The legislature further finds that twenty-six other jurisdictions nationwide have loan repayment assistance programs to encourage lawyers to pursue public interest work within their jurisdiction. Additionally, the legislature finds that the current federal programs, although helpful, are inadequate to incentivize public interest work in Hawaii because it is more economically feasible for lawyers to live in jurisdictions that offer a lower cost of living and higher salary levels.

Loan repayment programs have been successfully used in Hawaii to increase the number of educators serving in hard-to-fill teaching positions, and the legislature believes that loan repayment programs can also be used to encourage and enable lawyers to pursue public interest work in the State.

The legislature finds that encouraging law students and lawyers to practice public interest law is essential to ensuring access to the justice system. Therefore, it is the intent of the legislature in enacting this legislation to provide for the partial repayment of student loans of lawyers who provide public interest legal services.

The purpose of this Act is to establish the Hawaii justice league, under the University of Hawaii William S. Richardson school of law, to provide student loan repayment for lawyers who agree to pursue public interest work in Hawaii.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII JUSTICE LEAGUE

§ -1 Definitions. As used in this chapter, unless the context requires otherwise:

"Lawyer" means a person admitted to practice law as required by the rules of the supreme court of Hawaii.

"Loan repayment" means the payment, per year, of up to twenty per cent of a Hawaii justice league program participant's legal training costs, including but not limited to the cost of in-state tuition at the William S. Richardson school of law, for a maximum of five years.

"Participant" means a lawyer who is receiving loan repayment assistance through the Hawaii justice league loan repayment assistance program.

"Public interest work" means work for an organization that has been granted tax exempt status as a charitable organization by the Internal Revenue Service pursuant to section 501(c)(3), 501(c)(4), 501(c)(5), or 501(c)(6) of the Internal Revenue Code of 1986, as amended; local, state, or federal government; Native Hawaiian public interest organizations; and low-income community based private practice.

§ -2 Hawaii justice league program established. The Hawaii justice league program is established to encourage lawyers to pursue public interest work in Hawaii. The program shall be administered by the University of Hawaii William S. Richardson school of law. In administering the program, the University of Hawaii William S. Richardson school of law shall:

(1) Adopt rules and develop guidelines to administer the program;

(2) Identify and designate areas of the State with greatest need for public interest work;

(3) Establish criteria and a certification process for what constitutes eligible "community based private practice" for public interest work;

(4) Establish criteria for the selection by the University of Hawaii William S. Richardson school of law of lawyers to participate in the program;

(5) Define and determine compliance with the service commitments of the program;

(6) Collect and manage reimbursements from participants who do not meet their service commitments under the program;

(7) Publicize the program, particularly to maximize participation by individuals who live in areas of the State where there is greatest need for public interest work; and

(8) Solicit and accept grants and donations from public and private sources for the program, including maximizing the use of federal matching funds.

§ -3 Hawaii justice league loan repayment assistance program. (a) There is created within the Hawaii justice league program, the Hawaii justice league loan repayment assistance program to be administered by the University of Hawaii William S. Richardson school of law, in partnership with a lending financial institution whose operations are principally conducted in Hawaii. The Hawaii justice league loan repayment assistance program shall provide loan repayments to lawyers who make the service commitment under subsection (b). The University of Hawaii William S. Richardson school of law shall make loan repayments directly to the financial institution under subsection (a) to offset the loan repayment for which the Hawaii justice league program recipient would otherwise be liable. The University of Hawaii William S. Richardson school of law shall prioritize loan repayments in accordance with the greatest need for public interest work.

(b) The Hawaii justice league program shall provide loan repayments on behalf of a lawyer who agrees to serve for at least five consecutive years as a lawyer pursuing public interest work in Hawaii; provided that eligible lawyers, as applicable, shall have graduated from a duly accredited law school within the United States; provided further that preference shall be given to graduates of the University of Hawaii William S. Richardson school of law, as applicable.

(c) Eligible participants in the program shall be determined by the University of Hawaii William S. Richardson school of law on a competitive basis and in accordance with subsection (b).

(d) If a Hawaii justice league program participant fails to satisfy the recipient's service commitment under subsection (b), the Hawaii justice league program participant shall be liable for the repayment of the outstanding balance of the loan to the lending financial institution under subsection (a). In addition, the University of Hawaii William S. Richardson school of law may seek reimbursement for any loan repayment made by the university on behalf of the Hawaii justice league program participant.

(e) In accordance with chapter 103D, the University of Hawaii William S. Richardson school of law may enter into written contracts with collection agencies to collect delinquent reimbursements of loan repayments. All payments collected, exclusive of a collection agency's commissions, shall revert and be credited to the Hawaii justice league revolving fund. A collection agency that enters into a written contract with the University of Hawaii William S. Richardson school of law to collect delinquent reimbursements of loan repayments pursuant to this section may collect a commission from the debtor in accordance with the terms of, and up to the amounts authorized in, the written contract.

§ -4 Rules. The University of Hawaii William S. Richardson school of law shall adopt rules to administer this chapter. The rules shall be adopted pursuant to chapter 91, but shall be exempt from public notice and public hearing requirements.

§ -5 Hawaii justice league revolving fund. (a) There is established in the treasury of the State the Hawaii justice league revolving fund, which shall be administered by the University of Hawaii William S. Richardson school of law, and into which shall be deposited:

(1) Any funds appropriated by the legislature for the Hawaii justice league program;

(2) Gifts, donations, and grants from public agencies and private persons;

(3) Reimbursements of loan repayments under the Hawaii justice league loan repayment assistance program;

(4) Proceeds of the operations of the Hawaii justice league program; and

(5) Interest earned or accrued on moneys deposited into the fund.

(b) The University of Hawaii William S. Richardson school of law may expend moneys from the fund for the purposes of this chapter, including the operational expenses of the Hawaii justice league program."

SECTION 3. The University of Hawaii William S. Richardson school of law shall implement the Hawaii justice league program no later than June 30, 2015.

The dean of the University of Hawaii William S. Richardson school of law shall report to the legislature on the status of the Hawaii justice league program no later than twenty days prior to the convening of each regular session beginning with the regular session of 2016.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2014-2015 for deposit into the Hawaii justice league revolving fund.

SECTION 5. There is appropriated out of the Hawaii justice league revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2014-2015 for the purposes of establishing and administering the Hawaii justice league program.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 6. This Act shall take effect on July 1, 2014.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2182
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII