Oklahoma 2024 Regular Session

Oklahoma House Bill HB3459 Compare Versions

Version 1 (Old)

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	30	+	March 26, 2024
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3	34		BILL NO. 3459 By: Moore of the House
4	35
5	36		and
6	37
7	38		Rader of the Senate
8		-
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13	43		An Act relating to the Oklahoma Student Loan Act;
14	44		amending 70 O.S. 2021, Section 695.2, which relates
15	45		to definitions; modifying de finition; amending 70
16	46		O.S. 2021, Section 695.3, which relates to the
17	47		authority of Governor and issuance of bonds;
18	48		modifying requirements; amending 70 O.S. 2021,
19	49		Section 695.5, which relates to the Student Loan
20	50		Fund; authorizing use of funds for provision o f
21	51		loans; amending 70 O.S. 2021, Section 695.6, which
22	52		relates to payments of loan money; modifying
23	53		requirement; amending 70 O.S. 2021, Section 695.7,
24	54		which relates to procedures of the Student Loan
25	55		Authority; modifying procedures; amending 70 O.S.
26	56		2021, Section 695.17, which relates to the authority
27	57		to make loans from the Student Loan Fund; modifying
28	58		to whom loans may be made; amending 70 O.S. 2021,
29	59		Section 695.18, which relates to supplemental loan
30	60		program for qualified students; modifying definition;
31	61		modifying due diligence to collect; modifying when
32	62		interest shall be paid on loans; and providing an
33	63		effective date.
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37		-
38		-	SUBJECT: Oklahoma Student Loan Act
39		-
40	67		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
41		-
42	68		SECTION 1. AMENDATORY 70 O.S. 2021, Section 695.2, is
43	69		amended to read as follows:
	70	+	Section 695.2 As used in the Oklahoma Student Loan Act:
	71	+	1. "Authority" means the Oklahoma Student Loan Authority;
44	72
45		-	Section 695.2 As used in the Oklahoma Student Loan Act:
46		-	ENR. H. B. NO. 3459 Page 2
47		-	1. "Authority" means the Oklahoma Student Loan Authority;
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49	99		2. "Participating institution " means any educational
50	100		institution, public or private, including junior colleges and
51	101		vocational-technical schools, which qualifies as an eligible
52	102		institution for the federal insured loan program under the Federal
53	103		Higher Education Act of 1965, as amended, and participating in
54	104		student loan programs under the Oklahoma Student Loan Act;
55		-
56	105		3. "Qualified person" means a person who is eligible for a
57	106		student loan insured by the United States under the Oklahoma Student
58	107		Loan Act; and
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60	108		4. "Bond" or "Bonds" means revenue bonds and notes issued by
61	109		the Authority.
62		-
63	110		SECTION 2. AMENDATORY 7 0 O.S. 2021, Section 695.3, is
64	111		amended to read as follows:
65		-
66	112		Section 695.3 The Governor is hereby authorized to accept
67	113		beneficial interest on behalf of the State of Oklahoma in an express
68	114		trust which shall be an agency of the state for the specific object
69	115		and purpose of providing student loan funds pursuant to requirements
70	116		of any appropriate federal agency to qualified persons as provided
71	117		herein. Said state trust shall be entitled the Oklahoma Student
72	118		Loan Authority. The Authority shall be created in accor dance with
73	119		the provisions of Title 60 of the Oklahoma Statutes, Section 176 et
74	120		seq. of Title 60 of the Oklahoma Statutes. It shall issue bonds or
75	121		other obligations from time to time for and on behalf of the State
76	122		of Oklahoma as such funds are needed to un derwrite loans insured by
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77	150		the United States to qualified persons at participating institutions
78	151		as provided herein. Bonds issued by the Authority, or interest
79	152		thereon, shall be paid through funds received by the Authority as
80	153		provided in Section 695.7 of th is title.
81		-
82	154		All bonds issued under the Oklahoma Student Loan Act are legal
83	155		and authorized investments for banks, savings banks, trust
84	156		companies, savings and loan associations, insurance companies,
85	157		credit unions, fiduciaries, trustees and guardians, and for t he
86	158		State of Oklahoma and any of its political subdivisions,
87	159		departments, institutions and agencies. When accompanied by all
88	160		unmatured coupons appurtenant thereto, the bonds are sufficient
89	161		security for all deposits of state funds and of all funds of any
90	162		board in control at the par value of the bond. The bonds and the
91		-	income therefrom are free from taxation within this state. ENR. H. B. NO. 3459 Page 3
92		-
	163	+	income therefrom are free from taxation within this state.
93	164		SECTION 3. AMENDATORY 70 O.S. 2021, Section 695.5, is
94	165		amended to read as follows:
95		-
96	166		Section 695.5 There shall be created in the Authority the
97	167		"Student Loan Fund". The Authority may use the Student Loan Fund to
98	168		purchase loans insured by the United States made to qualified
99	169		persons at participating institutions , provide loans under the
100	170		Oklahoma Student Loan Act, and such other expenses as may be
101	171		appropriate in connection herewith.
102		-
103	172		SECTION 4. AMENDATORY 70 O.S. 2021, Section 695.6, is
104	173		amended to read as follows:
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106	201		Section 695.6 The amount of any loan to a qualified person
107	202		shall be determined acc ording to regulations promulgated by the
108	203		Student Loan Authority. No payment shall be made to any qualified
109	204		person until he has executed a note , insured by the United States
110	205		and payable to a fund which shall be created to be known as the
111	206		"Student Loan Sinking Fund", for the full amount of the loan and
112	207		interest thereon. For the purpose of the Oklahoma Student Loan Act,
113	208		Section 695.1 et seq. of this title, a qualified person has the
114	209		capacity to contract and is bound by any contract executed by him;
115	210		the defense that he was a minor at the time he executed a note is
116	211		not available to him in any action arising on his note. Payments to
117	212		qualified persons executing notes may be made annually,
118	213		semiannually, or for each semester as determined by the Authority.
119	214		The rate of interest charged the student shall not exceed the
120	215		maximum authorized by federal regulations be determined by the
121	216		Student Loan Authority . Disbursements may be made to a
122	217		participating institution pursuant to a contract between the
123	218		Authority and the pa rticipating institution executed under the
124	219		Oklahoma Student Loan Act.
125		-
126	220		SECTION 5. AMENDATORY 70 O.S. 2021, Section 695.7, is
127	221		amended to read as follows:
128		-
129	222		Section 695.7 A. The Authority shall accumulate individual
130	223		loan applications from the several participating institutions and
131	224		shall submit these applications to the appropriate federally
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132	252		approved guarantor for approval and insurance. The Authority may
133	253		fix deadlines for the receipt of applications relative to each
134	254		academic term.
135		-	ENR. H. B. NO. 3459 Page 4
136	255		B. The Authority may disburse to each of the participating
137	256		institutions funds sufficient only to enable payments to those
138	257		participating students whose loans have been approved and insured.
139	258		Any funds not so disbursed shall be returned to the Authority by the
140	259		participating institution. The Authority may also disburse loan
141	260		funds directly to participating students and t hrough institutional
142	261		officials.
143		-
144	262		C. The Authority shall collect interest payments and interest
145	263		subsidies paid on behalf of the qualified person b y the United
146	264		States and shall also collect all interest and principal payments
147	265		made by the student under the terms of his obligation to the Student
148	266		Loan Fund. When any person who has received a loan fails to make
149	267		payments due in accordance with an execute d note, the Authority may
150	268		declare the full amount of remaining principal and interest due and
151	269		payable immediately. In the event of default of payment, the
152	270		Authority shall undertake collection and, in the event of failure to
153	271		collect on a guaranteed loan after such reasonable efforts as are
154	272		prescribed by federal regulations, shall file a claim for payment
155	273		under the terms of the federal insurance.
156		-
157	274		D. The Authority is authorized to designate the president of
158	275		each participating institution, or an official of t he institution
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159	303		designated by the president, as a representative for the purpose of
160	304		facilitating and processing loan applications, disbursement and
161	305		delivery of loan funds to participating students and the receipt of
162	306		executed notes and payments thereon by pa rticipating students. The
163	307		Authority may promulgate such rules and regulations as shall be
164	308		deemed necessary and proper to carry out the duties imposed upon the
165	309		Authority and any institutional representative under the provisions
166	310		of the Oklahoma Student Loan Act.
167		-
168	311		SECTION 6. AMENDATORY 70 O.S. 2021, Section 695.17, is
169	312		amended to read as follows :
170		-
171	313		Section 695.17 The Oklahoma Student Loan Authority and the
172	314		Oklahoma State Regents for Higher Education functioning as the
173	315		fiscal agent for the Authority in the administration of the Oklahoma
174	316		Student Loan Act (Chapter 125, Oklahoma Session Laws 1972; 70 O.S.
175	317		Supp. 1975, Sections 695.1 to 695.16) shall have authority to make
176	318		loans to qualified students persons under provisions of said act if
177	319		the loans are insured or coinsured by the United States under either
178	320		Title IV-A or Title IV-B of the Higher Educatio n Act of 1965, as
179	321		amended the Oklahoma Student Loan Act .
180		-	ENR. H. B. NO. 3459 Page 5
181	322		SECTION 7. AMENDATORY 70 O.S. 2021, Section 695.18, is
182	323		amended to read as follows:
183		-
184	324		Section 695.18 The Oklahoma Student Loan Authority shall
185	325		establish and operate a supplemental loan program for qualified
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186	353		students who are not eligible for loans under the federally insured
187	354		student loan program, pursuant to the following :
188		-
189		-	A. "Qualified students person" shall be those students enrolled
190		-	in collegiate education a participating institution or a biological
191		-	or adoptive parent of such student who have completed federal needs
192		-	analysis and require additional financial assistance as certified by
193		-	the institution of enrollment but are ineligible for a Guarantee d
194		-	Student Loan sufficient to meet that need, provided that in no
195		-	instance shall a supplemental loan be made to any student whose
196		-	family income, if dependent, or whose personal income, if
	355	+	A. "Qualified students” person" shall be those students
	356	+	enrolled in collegiate education a participating institution or a
	357	+	biological or adoptive parent of such student who have completed
	358	+	federal needs analysis and require additional financial assistance
	359	+	as certified by the institution of enrollment but are ineligible for
	360	+	a Guaranteed Student Loan sufficient to meet that need, provided
	361	+	that in no instance shall a supplemental loan be made to any student
	362	+	whose family income, if dependent, or whose personal income, if
197	363		independent, exceeded Eighty Thousand Dollars ($80,000.00), or the
198	364		income limitation as adjusted pu rsuant to this subsection, in the
199	365		previous tax year meets the eligibility requirements set by the
200	366		Oklahoma Student Loan Authority . Beginning with the fiscal year
201	367		ending June 30, 2002, the Authority shall prescribe a cost -of-living
202	368		adjustment to the income limitation provided in this section. The
203	369		adjustment shall be based on the maximum percentage increase, if
204	370		any, not to exceed the previous year 's Consumer Price Index for All
205	371		Urban Consumers (CPI -U) as prepared by the United States Bureau of
206	372		Labor Statistics.
207		-
208	373		B. The Authority may enter into agreements with the
209	374		Commissioners of the Land Office for funding this loan program or
210	375		may obtain funding th rough authorized procedures as provided for in
211	376		the Oklahoma Student Loan Act.
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213	404		C. The Authority may enter into agreements with the State
214	405		Guarantee Agency or any nationally recognized guarantor approved by
215	406		the United States Secretary of Education for the in surance of such
216	407		loans.
217		-
218	408		D. The Authority shall collect its loans when due; and, in the
219	409		event of a possible defa ult after due diligence has been performed
220	410		to collect on a guaranteed loan , a claim shall be filed with the
221	411		State Guarantee Agency for collection under the insurance program,
222	412		which guarantor shall pay the claim for the Authority, following
223	413		which it shall take whatever action may be necessary to collect from
224	414		the borrower in order to assure that the State of Oklahoma will not
225		-	suffer any loss in ~~connection~~ with ~~defau lt~~ payments; and if ~~ENR. H. B. NO. 3459 Page 6~~
	415	+	suffer any loss in conne ction with default payments; and if
226	416		insurance of the loan is with a nationally recognized guarantor, the
227	417		same procedure shall apply.
228		-
229	418		E. The Authority shall establish the rate of interest to be
230	419		paid on loans, which shall be paid by the borrowers to the Aut hority
231	420		on a quarterly basis , which rate shall be as modest as possible for
232	421		the benefit of the student but shall be at sufficient level to
233	422		assure repayment of the debt incurred to underwrite the loans and
234	423		expenses incurred by the Authority in administration of the program.
235		-
236	424		F. The Authority shall promulgate rules as may be necessary and
237	425		appropriate for the full and effective administration of the loan
238	426		program provided for in the Oklahoma Student Loan Act, and it shall
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239	454		be the sole state agency for providing l oans to eligible persons
240	455		under the federal and state student loan programs.
241		-
242	456		G. As in the case of other trust agencies, the State of
243	457		Oklahoma is not obligated to support with state -appropriated funds
244	458		the loan program provided for in the Oklahoma Student Lo an Act.
245		-
246	459		SECTION 8. This act shall become effective November 1, 2024.
247		-	ENR. H. B. NO. 3459 Page 7
248		-	Passed the House of Representatives the 5th day of March, 2024.
249		-
250		-
251		-
252		-
253		-	Presiding Officer of the House
254		-	of Representatives
255		-
256		-
257		-	Passed the Senate the 24th day of April, 2024.
258		-
259		-
260		-
261		-
262		-	Presiding Officer of the Senate
263		-
264		-
265		-	OFFICE OF THE GOVERNOR
266		-	Received by the Office of the Governor this ____________________
267		-	day of ___________________, 20_______, at _______ o'clock _______ M.
268		-	By: _________________________________
269		-	Approved by the Governor of the State of Oklahoma this _____ ____
270		-	day of ___________________, 20_______, at _______ o'clock _______ M.
271		-
272		-
273		-	_________________________________
274		-	Governor of the State of Oklahoma
275		-
276		-	OFFICE OF THE SECRETARY OF STATE
277		-	Received by the Office of the Secretary of State this __________
278		-	day of ___________________, 20_______, at _______ o'clock _______ M.
279		-	By: _________________________________
	460	+	COMMITTEE REPORT BY: COMM ITTEE ON EDUCATION
	461	+	March 26, 2024 - DO PASS