Bill Text: TX SB653 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the composition and functions of the Texas Guaranteed Student Loan Corporation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-02-25 - Referred to Higher Education [SB653 Detail]
Download: Texas-2013-SB653-Introduced.html
83R10451 KSD-F | ||
By: Zaffirini | S.B. No. 653 |
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relating to the composition and functions of the Texas Guaranteed | ||
Student Loan Corporation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 57.01 and 57.11, Education Code, are | ||
amended to read as follows: | ||
Sec. 57.01. DECLARATION OF POLICY. The legislature, giving | ||
due consideration to the historical and continuing interest of the | ||
people of the State of Texas in encouraging deserving and qualified | ||
persons to realize their aspirations for education beyond high | ||
school, finds and declares that postsecondary education for | ||
qualified Texans [ |
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and security of this state and the nation and, consequently, is an | ||
important public purpose. The legislature finds and declares that | ||
the state can achieve its full economic and social potential only if | ||
every individual has the opportunity to contribute to the full | ||
extent of the individual's [ |
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financial barriers to the individual's [ |
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social, and educational goals are removed. It is, therefore, the | ||
purpose of this chapter to establish the Texas Guaranteed Student | ||
Loan Corporation to: | ||
(1) administer a guaranteed student loan program, | ||
student financial aid programs, and other student loan programs to | ||
assist qualified [ |
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nation in receiving a postsecondary education in this state or | ||
elsewhere in the nation; [ |
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(2) assist institutions of higher education by | ||
providing [ |
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financial aid and student [ |
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(3) engage in: | ||
(A) revenue-generating activities related to | ||
higher education student financial aid and student loan programs to | ||
the extent the activities are not in conflict with the | ||
corporation's primary purposes under Subdivisions (1) and (2), | ||
including providing: | ||
(i) necessary and desirable information, | ||
products, tools, functions, and services related to public and | ||
private student loan and student financial aid programs; | ||
(ii) support services relating to financial | ||
literacy, student loan debt repayment, and student loan default | ||
prevention; | ||
(iii) policy training; and | ||
(iv) the effective and efficient delivery | ||
of higher education student financial aid; | ||
(B) college promotion, outreach, and awareness | ||
efforts described by Section 57.21(a)(1)(A)(iii); and | ||
(C) coordinating, facilitating, promoting, and | ||
providing expertise-based assistance and support designed to | ||
assist students, families, borrowers, and schools in preventing | ||
higher education loan default throughout the life of the loan, | ||
subject to the limitations of Section 57.21 [ |
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Sec. 57.11. TEXAS GUARANTEED STUDENT LOAN CORPORATION. | ||
(a) The Texas Guaranteed Student Loan Corporation is created to | ||
administer the programs authorized by this chapter. | ||
(b) The corporation is a public nonprofit corporation and, | ||
except as otherwise provided in this chapter, has all the powers and | ||
duties incident to a nonprofit corporation under Chapter 22, | ||
Business Organizations Code [ |
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(c) [ |
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of the corporation shall be paid from revenue [ |
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corporation. | ||
(d) [ |
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551 and 552, Government Code. | ||
(e) [ |
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assembled, or maintained by the corporation is confidential and is | ||
not subject to disclosure under Chapter 552, Government Code. | ||
SECTION 2. Section 57.12(a), Education Code, is amended to | ||
read as follows: | ||
(a) The Texas Guaranteed Student Loan Corporation is | ||
subject to Chapter 325, Government Code (Texas Sunset Act). Unless | ||
continued in existence as provided by that chapter, the corporation | ||
is abolished and this chapter expires September 1, 2023 [ |
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SECTION 3. Section 57.1311(b), Education Code, is amended | ||
to read as follows: | ||
(b) The training program must provide the person with | ||
information regarding: | ||
(1) the provisions of this chapter, including the | ||
policies developed under Section 57.19(i) regarding the separation | ||
of policymaking and management responsibilities, and the | ||
corporation's programs, functions, rules, and budget; | ||
(2) the results of the most recent formal audit of the | ||
corporation; | ||
(3) the requirements of laws relating to open | ||
meetings, public information, and conflicts of interest; and | ||
(4) any applicable ethics policies adopted by the | ||
corporation or the Texas Ethics Commission. | ||
SECTION 4. Subchapter B, Chapter 57, Education Code, is | ||
amended by adding Section 57.181 to read as follows: | ||
Sec. 57.181. MEETING BY TELEPHONE CONFERENCE CALL. (a) The | ||
board or a board committee may hold an open or closed meeting by | ||
telephone conference call if: | ||
(1) the board or board committee, as applicable, | ||
determines that: | ||
(A) an emergency or public necessity exists; or | ||
(B) it is difficult or impossible to convene a | ||
quorum at one location; and | ||
(2) at least one member of the board or board | ||
committee, as applicable, is physically present at the location of | ||
the meeting. | ||
(b) A telephone conference call meeting is subject to the | ||
notice requirements applicable to other meetings under Chapter 551, | ||
Government Code. The meeting notice must also specify the location | ||
of the meeting where at least one member of the board or board | ||
committee, as applicable, will be physically present. | ||
(c) The meeting location where at least one board or board | ||
committee member is physically present must be open to the public | ||
during the open portions of a telephone conference call meeting. | ||
The open portions of the meeting must be audible to the public at | ||
that location and be recorded at that location. The recording must | ||
be made available to the public pursuant to a written request under | ||
Chapter 552, Government Code. | ||
(d) The meeting location where at least one board or board | ||
committee member is physically present must provide two-way | ||
communication during the entire telephone conference call meeting, | ||
and the identification of each party to the telephone conference | ||
call must be clearly stated before each time the party speaks. | ||
(e) A member of the board or board committee who | ||
participates in a board or board committee meeting, as applicable, | ||
by telephone conference call but is not physically present at the | ||
meeting location where at least one board or board committee member | ||
is physically present is not considered to be absent from the | ||
meeting for any purpose. The vote of a member of the board or board | ||
committee who participates in a board or board committee meeting by | ||
telephone conference call is counted for the purpose of determining | ||
the number of votes cast on a motion or other proposition before the | ||
board or board committee, as applicable. | ||
(f) A person who is not a member of the board or board | ||
committee may not speak at the board or board committee meeting from | ||
a remote location by telephone conference call, except as provided | ||
by Section 551.129, Government Code. | ||
(g) The authority provided by this section is in addition to | ||
the authority provided by Section 551.125, Government Code. | ||
SECTION 5. Section 57.19(d), Education Code, is amended to | ||
read as follows: | ||
(d) The president or the president's designee shall develop | ||
a [ |
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program shall require internal corporate [ |
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of all nonentry level positions concurrently with any public | ||
posting. | ||
SECTION 6. Section 57.20(a), Education Code, is amended to | ||
read as follows: | ||
(a) The corporation shall appoint an ombudsman [ |
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the corporation. The ombudsman [ |
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information about parties to the complaint, the subject matter of | ||
the complaint, a summary of the results of the review or | ||
investigation of the complaint, and its disposition. | ||
SECTION 7. Sections 57.21(a) and (c), Education Code, are | ||
amended to read as follows: | ||
(a) The corporation shall take an active role in | ||
coordinating, facilitating, promoting, and providing assistance | ||
and support to: | ||
(1) programs that: | ||
(A) focus on and disseminate [ |
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[ |
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availability of student financial aid, including information | ||
regarding: | ||
(i) financial literacy, student loan debt | ||
repayment considerations, and student loan default prevention; | ||
(ii) the effective and efficient delivery | ||
of higher education financial aid; | ||
(iii) college promotion, outreach, and | ||
awareness efforts with appropriate education and civic | ||
associations that disseminate postsecondary education awareness | ||
information, including information regarding student financial | ||
aid, the Federal Family Education Loan Program established by the | ||
Higher Education Act of 1965 (20 U.S.C. Section 1071 et seq.), and | ||
other student loan programs; and | ||
(iv) other relevant topics; [ |
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(B) [ |
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postsecondary education financing; | ||
(2) programs designed to assist students, families, | ||
borrowers, and schools in preventing [ |
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throughout the life of the loan, provided that such programs are | ||
required as a part of a guaranty agency's obligation under the | ||
Federal Family Education Loan Program established by the Higher | ||
Education Act of 1965 (20 U.S.C. Section 1071 et seq.), or are | ||
funded by statutory or regulatory mandate, compensation, grant, | ||
contract, award, or other appropriate means; and | ||
(3) programs designed to increase student retention | ||
and graduation rates in postsecondary education. | ||
(c) To the extent practicable, each [ |
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that conducts higher education and financial aid outreach | ||
activities shall enter into a memorandum of understanding with the | ||
corporation. The memorandum of understanding may [ |
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how the corporation and the state agency will coordinate outreach | ||
activities to maximize resources and avoid duplication. | ||
SECTION 8. The heading to Section 57.22, Education Code, is | ||
amended to read as follows: | ||
Sec. 57.22. APPLICATION OF BUSINESS ORGANIZATIONS CODE [ |
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SECTION 9. Section 57.22(a), Education Code, is amended to | ||
read as follows: | ||
(a) The corporation is subject to Chapter 22, Business | ||
Organizations Code [ |
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(1) the corporation may not make donations for the | ||
public welfare or for charitable or scientific purposes or in aid of | ||
war activities; | ||
(2) the corporation is not required to file articles | ||
of incorporation; | ||
(3) the corporation is not subject to voluntary or | ||
involuntary dissolution; | ||
(4) the corporation may not be placed in receivership; | ||
and | ||
(5) the corporation is not required to make reports to | ||
the secretary of state under Section 22.357, Business Organizations | ||
Code [ |
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SECTION 10. Section 57.24, Education Code, is amended to | ||
read as follows: | ||
Sec. 57.24. AUTHORITY TO PARTICIPATE IN OTHER | ||
REVENUE-GENERATING ACTIVITIES; LIMITATIONS. (a) The corporation | ||
may engage [ |
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that [ |
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(1) [ |
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is consistent with the corporation's purposes described by Section | ||
57.01; [ |
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(2) revenue from the activity may cover the costs of | ||
the activity; and | ||
(3) revenue from the activity may provide funds to | ||
support activities approved by the board as the corporation's | ||
philanthropic activities or as having strategic or positioning | ||
importance to the corporation [ |
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(b) If, under Subsection (a) [ |
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authorizes the corporation to provide [ |
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services, the corporation may not require postsecondary | ||
educational institutions or students to use those services unless | ||
required by state or federal law. | ||
(c) The corporation's activities under Section 57.01(1) do | ||
not constitute revenue-generating activities for purposes of this | ||
section. | ||
SECTION 11. Section 57.41(a), Education Code, is amended to | ||
read as follows: | ||
(a) The corporation shall serve as the designated guarantee | ||
agency under the Federal Family Education Loan Program in | ||
accordance with [ |
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1001 et seq., as amended, regulations adopted under that Act, and | ||
other applicable federal law. | ||
SECTION 12. Section 57.461, Education Code, is amended to | ||
read as follows: | ||
Sec. 57.461. [ |
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establish advisory committees as the board considers appropriate [ |
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SECTION 13. Sections 57.47(a), (b), and (d), Education | ||
Code, are amended to read as follows: | ||
(a) If a student borrower defaults on a loan and the | ||
corporation is required to honor the guarantee, the corporation may | ||
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against the defaulting party in accordance with the requirements of | ||
the Higher Education Act of 1965, 20 U.S.C. Section [ |
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seq., as amended. | ||
(b) A suit against a defaulting party under this section may | ||
be brought in the county in which the defaulting person resides, in | ||
which the lender is located, or in Travis or Williamson County. | ||
(d) Notwithstanding any other law, if the corporation [ |
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a defaulting party under this section, the corporation [ |
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filing fee or other costs of court taxed and collected in advance | ||
that are in effect on the date on which the suit is filed. If the | ||
defaulting borrower prevails in the suit filed under this section, | ||
the corporation [ |
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pay the remaining 50 percent of the statutory filing fee on the date | ||
of the final disposition of the suit. If the corporation [ |
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(1) the judgment shall find the defaulting borrower | ||
liable to the corporation [ |
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(2) the corporation [ |
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filing fee not later than one week after the date on which the | ||
defaulting borrower pays to the corporation [ |
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which the borrower is liable to the corporation [ |
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SECTION 14. Sections 57.481(a), (b), and (c), Education | ||
Code, are amended to read as follows: | ||
(a) [ |
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[ |
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active role in coordinating, facilitating, and providing technical | ||
assistance on [ |
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borrowing, financial literacy, debt management, research, and | ||
informed policymaking [ |
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appropriate state agencies and other entities inside and outside | ||
this state, including eligible postsecondary educational | ||
institutions, eligible lenders, servicers, secondary markets, the | ||
Texas Higher Education Coordinating Board, the Texas [ |
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Education Agency, [ |
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licensing agencies, and the United States Department of Education. | ||
(b) [ |
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communication among the appropriate state agencies and entities to | ||
address student [ |
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SECTION 15. Section 57.49, Education Code, is amended to | ||
read as follows: | ||
Sec. 57.49. COOPERATION OF STATE AGENCIES AND SUBDIVISIONS. | ||
Each agency and political subdivision of the state shall cooperate | ||
with the corporation in providing information to the agency's or | ||
political subdivision's clients concerning student financial aid, | ||
including information about delinquency, default prevention, and | ||
life-of-loan issues. Each agency and political subdivision shall | ||
provide information to the corporation on request to assist the | ||
corporation in curing delinquent loans, [ |
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loans, and developing information and reports concerning | ||
responsible borrowing. | ||
SECTION 16. Sections 57.50 and 57.71, Education Code, are | ||
amended to read as follows: | ||
Sec. 57.50. NONDISCRIMINATION. The [ |
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corporation [ |
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an eligible student in making a loan or loan guarantee on the basis | ||
of race, age, religion, or sex or any other basis prohibited by | ||
applicable law. | ||
Sec. 57.71. FEDERAL [ |
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corporation shall maintain a federal fund [ |
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an operating fund [ |
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422, 422A, and 422B of the Higher Education Act of 1965 (20 U.S.C. | ||
Sections [ |
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SECTION 17. The following provisions of the Education Code | ||
are repealed: | ||
(1) Sections 57.19(g) and (h); | ||
(2) Sections 57.41(c) and (d); | ||
(3) Section 57.42; | ||
(4) Section 57.43; | ||
(5) Section 57.44; | ||
(6) Section 57.45; | ||
(7) Section 57.46; | ||
(8) Sections 57.481(d), (e), (f), (g), and (h); and | ||
(9) Section 57.78. | ||
SECTION 18. This Act takes effect September 1, 2013. |