81R973 KSD-D
By: Shapleigh S.B. No. 194
A BILL TO BE ENTITLED
AN ACT
relating to a prohibition against certain activities by a person
employed in the financial aid office of a public institution of
higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 51, Education Code, is
amended by adding Section 51.9645 to read as follows:
Sec. 51.9645. PROHIBITION AGAINST CERTAIN ACTIVITIES BY
FINANCIAL AID EMPLOYEES. (a) In this section:
(1) "Institution of higher education" has the meaning
assigned by Section 61.003.
(2) "Student loan" means a loan for which the loan
agreement requires that all or part of the loan proceeds be used to
assist a person in attending an institution of higher education or
other postsecondary institution.
(3) "Student loan lender" means a person whose primary
business is:
(A) making, brokering, arranging, or accepting
applications for student loans; or
(B) a combination of activities described by
Paragraph (A).
(b) A person employed by an institution of higher education
in the financial aid office of the institution may not:
(1) own stock or hold another ownership interest in a
student loan lender, other than through ownership of shares in a
publicly traded mutual fund or similar investment vehicle in which
the person does not exercise any discretion regarding the
investment of the assets of the fund or other investment vehicle; or
(2) solicit or accept any gift from a student loan
lender.
(c) A person who violates this section is subject to
dismissal or other appropriate disciplinary action.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.