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.
2-2 * * * * *