By: Luna S.B. No. 711
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the administration of the Texas Guaranteed Student Loan
1-2 Corporation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 57.22, Education Code, is amended to read
1-5 as follows:
1-6 57.22 APPLICATION OF THE TEXAS NON-PROFIT CORPORATION ACT
1-7 The Corporation is subject to the Texas Non-Profit
1-8 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
1-9 Statutes), except that:
1-10 (1) the corporation may not make donations for the
1-11 public welfare or for charitable, scientific, or educational
1-12 purposes or in aid of war activities;
1-13 (2) the corporation is not required to file articles
1-14 of incorporation;
1-15 <(3) the corporation may not merge or consolidate with
1-16 another corporation;>
1-17 <(4)> (3) the corporation is not subject to voluntary
1-18 or involuntary dissolution;
1-19 <(5)> (4) the corporation may not be placed in
1-20 receivership; and
1-21 <(6)> (5) the corporation is not required to make
1-22 reports to the secretary of state under Article 9.01 of that Act.
1-23 SECTION 2. Section 57.24, Education Code, is amended to read
2-1 as follows:
2-2 57.24 AUTHORITY TO PARTICIPATE IN OTHER REVENUE-GENERATING
2-3 ACTIVITIES; LIMITATIONS
2-4 (a) The corporation may participate in revenue-generating
2-5 activity that is consistent with the corporation's purposes if the
2-6 board determines that the revenue from the activity:
2-7 (1) is sufficient to cover the costs of the activity;
2-8 and
2-9 (2) may contribute to a reduction in the insurance
2-10 premium paid by students under Section 57.43 of this code.
2-11 (b) If, under Subsection (a) of this section, the board
2-12 authorizes the corporation to perform additional services, the
2-13 corporation may not require postsecondary educational institutions
2-14 of students to use those services unless required by state or
2-15 federal law.
2-16 <(c) The Corporation may not guarantee loans for other
2-17 states.>
2-18 SECTION 3. Section 57.761, Education Code, is amended to
2-19 read as follows:
2-20 57.761 INTERNAL AUDITOR
2-21 (a) The president <executive director> shall appoint an
2-22 internal auditor for the corporation. The appointment of an
2-23 internal auditor must be approved by the board.
2-24 (b) The internal auditor shall report to the president
2-25 <executive director>. The board may require the internal auditor
3-1 to submit directly to the board certain reports specified by the
3-2 board.
3-3 (c) The board or a board <board's executive> committee, as
3-4 designated by the board, <a subcommittee of the board,> shall meet
3-5 with the internal auditor on a regular basis.
3-6 (d) The internal auditor shall examine the corporation's
3-7 system of internal controls and its system of identifying fixed and
3-8 variable costs, including administrative costs.
3-9 SECTION 4. This act takes effect September 1, 1995.
3-10 SECTION 5. The importance of this legislation and the
3-11 crowded condition of the calendars in both houses create an
3-12 emergency and an imperative public necessity that the
3-13 constitutional rule requiring bills to be read on three several
3-14 days in each house be suspended, and this rule is hereby suspended.