1-1  By:  Hunter of Taylor, et al. (Senate Sponsor - Luna) H.B. No. 1157
    1-2        (In the Senate - Received from the House March 22, 1995;
    1-3  March 23, 1995, read first time and referred to Committee on
    1-4  Education; April 5, 1995, reported favorably by the following vote:
    1-5  Yeas 9, Nays 0; April 5, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the administration of the Texas Guaranteed Student Loan
    1-9  Corporation.
   1-10        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  Section 57.22, Education Code, is amended to read
   1-12  as follows:
   1-13        Sec. 57.22.  Application of the Texas Non-Profit Corporation
   1-14  Act.  The corporation is subject to the Texas Non-Profit
   1-15  Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
   1-16  Statutes), except that:
   1-17              (1)  the corporation may not make donations for the
   1-18  public welfare or for charitable, scientific, or educational
   1-19  purposes or in aid of war activities;
   1-20              (2)  the corporation is not required to file articles
   1-21  of incorporation;
   1-22              (3)  <the corporation may not merge or consolidate with
   1-23  another corporation;>
   1-24              <(4)>  the corporation is not subject to voluntary or
   1-25  involuntary dissolution;
   1-26              (4) <(5)>  the corporation may not be placed in
   1-27  receivership; and
   1-28              (5) <(6)>  the corporation is not required to make
   1-29  reports to the secretary of state under Article 9.01 of that Act.
   1-30        SECTION 2.  Section 57.24, Education Code, is amended to read
   1-31  as follows:
   1-32        Sec. 57.24.  Authority to Participate in Other
   1-33  Revenue-Generating Activities; Limitations.  (a)  The corporation
   1-34  may participate in a revenue-generating activity that is consistent
   1-35  with the corporation's purposes if the board determines that the
   1-36  revenue from the activity:
   1-37              (1)  is sufficient to cover the costs of the activity;
   1-38  and
   1-39              (2)  may contribute to a reduction in the insurance
   1-40  premium paid by students under Section 57.43 of this code.
   1-41        (b)  If, under Subsection (a) of this section, the board
   1-42  authorizes the corporation to perform additional services, the
   1-43  corporation may not require postsecondary educational institutions
   1-44  or students to use those services unless required by state or
   1-45  federal law.
   1-46        <(c)  The corporation may not guarantee loans for other
   1-47  states.>
   1-48        SECTION 3.  Section 57.761, Education Code, is amended to
   1-49  read as follows:
   1-50        Sec. 57.761.  Internal Auditor.  (a) The president <executive
   1-51  director> shall appoint an internal auditor for the corporation.
   1-52  The appointment of an internal auditor must be approved by the
   1-53  board.
   1-54        (b)  The internal auditor shall report to the president
   1-55  <executive director>.  The board may require the internal auditor
   1-56  to submit directly to the board certain reports specified by the
   1-57  board.
   1-58        (c)  The board or a board <board's executive> committee, as
   1-59  designated by the board, <a subcommittee of the board,> shall meet
   1-60  with the internal auditor on a regular basis.
   1-61        (d)  The internal auditor shall examine the corporation's
   1-62  system of internal controls and its system of identifying fixed and
   1-63  variable costs, including administrative costs.
   1-64        SECTION 4.  This Act takes effect September 1, 1995.
   1-65        SECTION 5.  The importance of this legislation and the
   1-66  crowded condition of the calendars in both houses create an
   1-67  emergency and an imperative public necessity that the
   1-68  constitutional rule requiring bills to be read on three several
    2-1  days in each house be suspended, and this rule is hereby suspended.
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