Texas 2017 - 85th Regular

Texas Senate Bill SB2048 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Bettencourt S.B. No. 2048
2		-	(Morrison)
3	2
4	3
5	4		A BILL TO BE ENTITLED
6	5		AN ACT
7	6		relating to the student loan program administered by the Texas
8	7		Higher Education Coordinating Board and to the repeal of a related
9	8		bond program.
10	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	10		SECTION 1. Sections 52.11(c), (d), (h), (k), and (n),
12	11		Education Code, are amended to read as follows:
13	12		(c) The proceeds from the sale of bonds shall be placed in
14	13		the student loan auxiliary fund [Texas Opportunity Plan Fund].
15	14		(d) To assure the orderly and economical marketing of the
16	15		bonds and the reasonable availability of money in the student loan
17	16		auxiliary fund [Texas Opportunity Plan Fund], the bonds may be
18	17		issued in installments.
19	18		(h) The bonds shall be executed on behalf of the
20	19		coordinating board, or its successor, as general obligations of the
21	20		State of Texas [in the following manner: They shall be signed by
22	21		the chairman or vice chairman and the secretary of the board, and
23	22		the seal of the board shall be impressed on them. They shall be
24	23		signed by the governor and attested by the secretary of state and
25	24		the state seal impressed on them. The resolution authorizing the
26	25		issuance of any installment or series of bonds may prescribe the
27	26		extent to which facsimile signatures and facsimile seals may be
28	27		used in executing the bonds and appurtenant coupons. Interest
29	28		coupons may be signed with the facsimile signatures of the chairman
30	29		or vice chairman and the secretary of the board. In the event any
31	30		officer whose manual or facsimile signature appears on any bond or
32	31		coupon ceases to hold that office before the delivery of the bond or
33	32		coupon, the signature will nevertheless be valid and sufficient for
34	33		all purposes as if he had remained in office until the delivery had
35	34		been made].
36	35		(k) The performance of official duties prescribed by
37	36		Sections 50b-4, 50b-5, 50b-6, and 50b-7, Article III, [Section 50b,
38	37		of the] Texas Constitution, in reference to the provision for the
39	38		payment and the payment of the bonds may be enforced in any court of
40	39		competent jurisdiction through mandamus or other appropriate
41	40		proceedings.
42	41		(n) This section applies only to bonds issued under Sections
43	42		50b-4, 50b-5, 50b-6, and 50b-7, Article III, [Section 50b, of the]
44	43		Texas Constitution.
45	44		SECTION 2. Section 52.16, Education Code, is amended to
46	45		read as follows:
47	46		Sec. 52.16. PROCEEDS FROM BOND SALE. All proceeds from the
48	47		sale of bonds authorized by Sections 50b-4, 50b-5, 50b-6, and
49	48		50b-7, Article III, [Section 50b, 50b-1, or 50b-2 of the] Texas
50	49		Constitution, shall be deposited in the state treasury in the
51	50		student loan auxiliary fund [Texas Opportunity Plan Fund].
52	51		SECTION 3. Section 52.32(a), Education Code, is amended to
53	52		read as follows:
54	53		(a) The board may authorize loans from the Texas Opportunity
55	54		Plan Fund or the student loan auxiliary fund to a qualified
56	55		applicant who:
57	56		(1) is a resident of this state as defined by the board
58	57		in accordance with Subchapter B, Chapter 54;
59	58		(2) has been accepted for enrollment at a
60	59		participating higher educational institution[, provided that if
61	60		the institution is a public or private postsecondary educational
62	61		institution, the institution must be approved by an agency of the
63	62		United States government for the purpose of guaranteeing the maker
64	63		of such loans against loss due to the death, disability, or default
65	64		of the borrower];
66	65		(3) has established that the student has insufficient
67	66		resources to finance the student's college education or alternative
68	67		educator certification program;
69	68		(4) has submitted to the board at least two
70	69		references, including the names of the persons giving those
71	70		references and appropriate contact information for those persons;
72	71		and
73	72		(5) has complied with other requirements established
74	73		by the rules adopted by the board in conformity with this chapter.
75	74		SECTION 4. Section 52.33, Education Code, is amended to
76	75		read as follows:
77	76		Sec. 52.33. AMOUNT OF LOAN. The amount of the loan to any
78	77		qualified applicant shall be limited to the difference between the
79	78		financial resources available to the applicant, including [but not
80	79		limited to] the applicant's [income from parents and other
81	80		sources,] scholarships, gifts, grants, and other financial aid,
82	81		[and the amount the applicant can reasonably be expected to earn,]
83	82		and the amount necessary to pay the applicant's reasonable expenses
84	83		as a student at the participating institution of higher education
85	84		where the applicant has been accepted for enrollment, under the
86	85		rules and regulations adopted by the board. The total loan to any
87	86		individual student may never be more than the amount the student can
88	87		reasonably be expected to repay in the maximum loan period provided
89	88		by board rule, except as otherwise provided for in this chapter.
90	89		SECTION 5. Sections 52.34(a) and (f), Education Code, are
91	90		amended to read as follows:
92	91		(a) No payment may be made to any student until the student
93	92		has executed a note payable to the Texas Opportunity Plan Fund or
94	93		the student loan auxiliary fund for the full amount of the
95	94		authorized loan plus interest.
96	95		(f) The board shall distribute money to a participating
97	96		institution through the current statewide accounting system
98	97		[electronic funds transfer system maintained by the Texas
99	98		Guaranteed Student Loan Corporation for disbursing loan funds from
100	99		commercial lenders participating in the guaranteed student loan
101	100		program under Chapter 57, except that at the request of a
102	101		participating institution the board may distribute the money
103	102		through other means. The board shall enter into a contract with the
104	103		corporation for the use of the system, and the corporation shall
105	104		make the system available to the board as necessary to carry out
106	105		this subsection].
107	106		SECTION 6. Section 52.38, Education Code, is amended to
108	107		read as follows:
109	108		Sec. 52.38. REPAYMENT OF LOANS. Repayment of any loan and
110	109		interest authorized under this chapter shall be made monthly and
111	110		shall begin not later than nine months after the date the student
112	111		borrower is last enrolled in a participating institution or any
113	112		other institution of higher education [and in no event later than
114	113		five years from the date the first note evidencing a loan under this
115	114		chapter is executed]. The board may, however, authorize a longer
116	115		period before beginning repayment of loans to medical students,
117	116		dental students, and other students seeking professional or
118	117		graduate degrees. The board may extend the time for beginning
119	118		repayment for unusual financial hardships, with the approval of the
120	119		attorney general. Repayment shall be made directly to the board [or
121	120		to a participating institution] pursuant to a contract executed by
122	121		the board in accordance with its rules and regulations.
123	122		SECTION 7. The heading to Section 52.41, Education Code, is
124	123		amended to read as follows:
125	124		Sec. 52.41. SERVICING [RESTRICTION ON ISSUANCE] OF CERTAIN
126	125		FEDERALLY INSURED STUDENT LOANS.
127	126		SECTION 8. Section 52.41(b), Education Code, is amended to
128	127		read as follows:
129	128		(b) The board may service any outstanding student loans
130	129		issued by the board under the Federal Family Education Loan Program
131	130		authorized under Part B, Title IV, of the Higher Education Act of
132	131		1965 (20 U.S.C. Section 1071 et seq.).
133	132		SECTION 9. Section 52.53, Education Code, is amended to
134	133		read as follows:
135	134		Sec. 52.53. GIFTS AND GRANTS. The board may accept gifts,
136	135		grants, or donations of real or personal property from any
137	136		individual, group, association, or corporation or the United
138	137		States, subject to limitations or conditions set by law. The board
139	138		shall deposit gifts, grants, or donations of money [in the Texas
140	139		Opportunity Plan Fund or] in the student loan auxiliary fund and
141	140		shall separately account for and expend the funds in accordance
142	141		with the specific purpose for which given and under such conditions
143	142		as are imposed by the donor and as provided by law.
144	143		SECTION 10. Section 52.541(a), Education Code, is amended
145	144		to read as follows:
146	145		(a) The board shall establish separate accounting within
147	146		the Texas Opportunity Plan Fund and the student loan auxiliary fund
148	147		for each of its existing loan programs[, including accounting for
149	148		the federally insured loans that are insured by the United States
150	149		Department of Education, the federally insured loans that are
151	150		insured by the United States Department of Health and Human
152	151		Services, and each loan program that consists of loans insured by
153	152		the State of Texas].
154	153		SECTION 11. The following provisions of the Education Code
155	154		are repealed:
156	155		(1) Sections 52.32(a-1) and (b);
157	156		(2) Section 52.40;
158	157		(3) Sections 52.41(a) and (c); and
159	158		(4) Subchapter E, Chapter 52.
160	159		SECTION 12. This Act takes effect September 1, 2017.