83R10451 KSD-F
	By: Zaffirini	S.B. No. 653

	A BILL TO BE ENTITLED
	AN ACT
	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 [those] who desire to pursue such [an] education
	[and are properly qualified therefor] is important to the welfare
	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 [his or her] capabilities and only when
	financial barriers to the individual's [his or her] economic,
	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 [Texas] students in this state and across the
	nation in receiving a postsecondary education in this state or
	elsewhere in the nation; [and]
	(2)  assist institutions of higher education by
	providing [provide] necessary and desirable services related to
	financial aid and student [the] loan programs; and
	(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 [program, including
	cooperative awareness efforts with appropriate educational and
	civic associations designed to disseminate postsecondary education
	awareness information, including information regarding student
	financial aid and the Federal Family Education Loan Program, and
	other relevant topics including the prevention of student loan
	default].
	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 [the Texas Non-Profit Corporation Act
	(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes)].
	(c) [(b)]  Except as otherwise provided by law, all expenses
	of the corporation shall be paid from revenue [income] of the
	corporation.
	(d) [(c)]  The corporation is subject to Chapters [Chapter]
	551 and 552, Government Code.
	(e) [(d)]  Student loan borrower information collected,
	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 [2021].
	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 [an intra-agency] career ladder program for the corporation. The
	program shall require internal corporate [intra-agency] postings
	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 [maintain a
	system] to promptly and efficiently act on complaints filed with
	the corporation.  The ombudsman [corporation] shall maintain
	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 [designed to make
	available to the residents of this state] information regarding
	[concerning] postsecondary education awareness and the
	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; [the Federal
	Family Education Loan Program,] and
	(B)  [to] assist families in obtaining [needed]
	postsecondary education financing;
	(2)  programs designed to assist students, families,
	borrowers, and schools in preventing [prevent] student loan default
	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 [Each] state agency
	that conducts higher education and financial aid outreach
	activities shall enter into a memorandum of understanding with the
	corporation.  The memorandum of understanding may [must] outline
	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 [THE
	TEXAS NON-PROFIT CORPORATION ACT].
	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 [the Texas Non-Profit Corporation Act (Article
	1396-1.01 et seq., Vernon's Texas Civil Statutes)], except that:
	(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 [Article 9.01 of that Act].
	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 [participate] in a revenue-generating activity [that is
	consistent with the corporation's purposes] if the board determines
	that [the revenue from the activity]:
	(1)  [is sufficient to cover the costs of] the activity
	is consistent with the corporation's purposes described by Section
	57.01; [and]
	(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 [may contribute to a reduction in the
	insurance premium paid by students under Section 57.43 of this
	code].
	(b)  If, under Subsection (a) [of this section], the board
	authorizes the corporation to provide [perform] additional
	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 [loans made to eligible borrowers by eligible
	lenders as provided by the federal guaranteed student loan program
	under] the Higher Education Act of 1965, 20 U.S.C. Section [Sec.]
	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.  [POSTSECONDARY EDUCATIONAL INSTITUTIONS AND
	LENDER] ADVISORY COMMITTEES.  [(a)]  The corporation shall
	establish advisory committees as the board considers appropriate [:
	[(1)     an advisory committee that is composed of 15
	members who represent the postsecondary educational institutions
	that participate in the corporation's guaranteed student loan
	program; and
	[(2)     an advisory committee that is composed of 12
	members including:
	[(A)     one member who represents the Texas Higher
	Education Coordinating Board; and
	[(B)     11 members who represent lenders that
	participate in the corporation's guaranteed student loan program].
	[(b)     The board shall appoint advisory committee members on
	the recommendation of the president.
	[(c)     The board may establish other advisory committees as
	the board considers necessary.
	[(d)  The board shall:
	[(1)     specify each advisory committee's purpose and
	duties; and
	[(2)     require each committee to report to the board in a
	manner specified by the board relating to each committee's
	activities and work results.]
	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
	[or the Texas Higher Education Coordinating Board shall] bring suit
	against the defaulting party in accordance with the requirements of
	the Higher Education Act of 1965, 20 U.S.C. Section [Sec.] 1001 et
	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 [or
	the Texas Higher Education Coordinating Board] brings suit against
	a defaulting party under this section, the corporation [or the
	coordinating board, as appropriate,] shall pay 50 percent of the
	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 [or the coordinating board, as appropriate,] shall
	pay the remaining 50 percent of the statutory filing fee on the date
	of the final disposition of the suit. If the corporation [or
	coordinating board] prevails in the suit:
	(1)  the judgment shall find the defaulting borrower
	liable to the corporation [or the coordinating board, as
	appropriate,] for the amount of the filing fee; and
	(2)  the corporation [or coordinating board, as
	appropriate,] shall pay the remaining 50 percent of the statutory
	filing fee not later than one week after the date on which the
	defaulting borrower pays to the corporation [or coordinating board,
	as appropriate,] the full amount, including the filing fee, for
	which the borrower is liable to the corporation [or coordinating
	board].
	SECTION 14.  Sections 57.481(a), (b), and (c), Education
	Code, are amended to read as follows:
	(a)  [In this section, "loan default rate" means the rate at
	which student borrowers default on loans guaranteed by the
	corporation as determined by the corporation in compliance with
	federal guidelines.
	[(b)]  The corporation shall take a comprehensive and [an]
	active role in coordinating, facilitating, and providing technical
	assistance on [guaranteed] student loan default prevention [and
	reduction] initiatives and programs that promote responsible
	borrowing, financial literacy, debt management, research, and
	informed policymaking [in the state] and shall work with the
	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 [Central]
	Education Agency, [and] state professional and occupational
	licensing agencies, and the United States Department of Education.
	(b) [(c)]  The corporation shall maintain a system of
	communication among the appropriate state agencies and entities to
	address student [reduce] loan default prevention issues [claims].
	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, [and] collecting defaulted
	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 [Neither the]
	corporation [nor an eligible lender] may not discriminate against
	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 [RESERVE] AND OPERATING FUNDS. The
	corporation shall maintain a federal fund [establish reserve] and
	an operating fund [funds] in accordance with Sections [Section]
	422, 422A, and 422B of the Higher Education Act of 1965 (20 U.S.C.
	Sections [Section] 1072, 1072a, and 1072b), as amended.
	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.