By Hunter of Taylor                                   H.B. No. 1157
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the administration of the Texas Guaranteed Student Loan
    1-3  Corporation.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 57.22, Education Code, is amended to read
    1-6  as follows:
    1-7        Sec. 57.22.  Application of the Texas Non-Profit Corporation
    1-8  Act.  The Corporation is subject to the Texas Non-Profit
    1-9  Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
   1-10  Statutes), except that:
   1-11              (1)  the corporation may not make donations for the
   1-12  public welfare or for charitable, scientific, or educational
   1-13  purposes or in aid of war activities;
   1-14              (2)  the corporation is not required to file articles
   1-15  of incorporation;
   1-16              <(3)  the corporation may not merge or consolidate with
   1-17  another corporation;>
   1-18              <(4)> (3)  the corporation is not subject to voluntary
   1-19  or involuntary dissolution;
   1-20              <(5)> (4)  the corporation may not be placed in
   1-21  receivership; and
   1-22              <(6)> (5)  the corporation is not required to make
   1-23  reports to the secretary of state under Article 9.01 of that Act.
    2-1        SECTION 2.  Section 57.24, Education Code, is amended to read
    2-2  as follows:
    2-3        Sec. 57.24.  Authority to Participate in Other
    2-4  Revenue-Generating Activities; Limitations.  (a)  The corporation
    2-5  may participate in revenue-generating activity that is consistent
    2-6  with the corporation's purposes if the board determines that the
    2-7  revenue from the activity:
    2-8              (1)  is sufficient to cover the costs of the activity;
    2-9  and
   2-10              (2)  may contribute to a reduction in the insurance
   2-11  premium paid by students under Section 57.43 of this code.
   2-12        (b)  If, under Subsection (a) of this section, the board
   2-13  authorizes the corporation to perform additional services, the
   2-14  corporation may not require postsecondary educational institutions
   2-15  of students to use those services unless required by state or
   2-16  federal law.
   2-17        <(c)  The corporation may not guarantee loans for other
   2-18  states.>
   2-19        SECTION 3.  Section 57.761, Education Code, is amended to
   2-20  read as follows:
   2-21        Sec. 57.761.  Internal Auditor.  (a) The president <executive
   2-22  director> shall appoint an internal auditor for the corporation.
   2-23  The appointment of an internal auditor must be approved by the
   2-24  board.
   2-25        (b)  The internal auditor shall report to the president
    3-1  <executive director>.  The board may require the internal auditor
    3-2  to submit directly to the board certain reports specified by the
    3-3  board.
    3-4        (c)  The board or a board <board's executive> committee, as
    3-5  designated by the board, <a subcommittee of the board,> shall meet
    3-6  with the internal auditor on a regular basis.
    3-7        (d)  The internal auditor shall examine the corporation's
    3-8  system of internal controls and its system of identifying fixed and
    3-9  variable costs, including administrative costs.
   3-10        SECTION 4.  This act takes effect September 1, 1995.
   3-11        SECTION 5.  The importance of this legislation and the
   3-12  crowded condition of the calendars in both houses create an
   3-13  emergency and an imperative public necessity that the
   3-14  constitutional rule requiring bills to be read on three several
   3-15  days in each house be suspended, and this rule is hereby suspended.