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.