Amend CSHB 3459 as follows:                                                  

(1)  On page 20, between lines 13 and 14, insert the 	following appropriately numbered sections:
	SECTION __.  Section 53.47(a)(6), Education Code, is amended 
to read as follows:
		(6)  "Qualified nonprofit corporation" means a 
nonprofit corporation:       
			(A)(i)  that issued bonds on or after January 1, 
1990, and before January 1, 2001, that qualified as qualified 
student loan bonds under Section 144(b), Internal Revenue Code of 
1986, as amended; or
				(ii)  that issues bonds the proceeds of 
which are used to refund bonds issued on or after January 1, 1990, 
and before January 1, 2001, that qualified as qualified student 
loan bonds under Section 144(b), Internal Revenue Code of 1986, as 
amended; or
			(B)  that the office of the governor, in 
consultation with the state student loan guaranty agency or any 
other public or private entity the office of the governor considers 
appropriate, has determined meets a need for student loan financing 
that existing qualified nonprofit corporations cannot meet, which 
determination may include information provided by the nonprofit 
corporation's plan for doing business that should include 
documented limitations in:
				(i)  the geographic coverage of existing 
qualified nonprofit corporations in the nonprofit corporation's 
proposed area of service;
				(ii)  the willingness of existing qualified 
nonprofit corporations to serve the eligible lenders in the 
proposed area of service; and
				(iii)  the ability of existing qualified 
nonprofit corporations to serve the eligible lenders in the 
proposed area of service.
	SECTION __.  Section 53.47, Education Code, is amended by 
adding Subsection (l) to read as follows:
	(l)  The governing body of a city by ordinance or resolution 
may authorize the incorporation of a nonprofit corporation under 
this chapter to act on behalf of the city as its duly constituted 
instrumentality for the purpose of exercising the powers set forth 
in this subsection.  On approval by the city, the nonprofit 
corporation is authorized to issue its revenue bonds and to loan the 
proceeds of the bonds to an entity that has assumed the outstanding 
bond obligations of a nonprofit corporation, such loan being for 
the limited purpose of refunding the outstanding bonds.  In issuing 
the bonds, the nonprofit corporation is considered to be acting on 
behalf of the city by which it was created.  The bonds to be refunded 
must have been originally issued as "qualified scholarship funding 
bonds," as defined by Section 150(d)(2), Internal Revenue Code of 
1986, as amended, by a nonprofit corporation that was acting 
pursuant to Subsection (f) and that subsequently made the election 
permitted under Section 150(d)(3), Internal Revenue Code of 1986, 
as amended.  Any refunding bonds shall be solely the obligation of 
the nonprofit corporation and shall not be or constitute a debt or 
obligation of the city.  The ordinance or resolution of the city 
authorizing the incorporation of the corporation must approve the 
articles of incorporation and any amendments to the articles of 
incorporation. On dissolution of the corporation, title to all 
property owned by the corporation shall be vested in and become the 
property of the city.  A corporation may be incorporated under this 
chapter by filing its articles of incorporation with the secretary 
of state in the manner prescribed for the incorporation of 
nonprofit corporations under the Texas Non-Profit Corporation Act 
(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).  On 
filing of the articles of incorporation, the secretary of state 
shall issue a certificate of incorporation showing that the 
corporation is incorporated under this chapter.  Except to the 
extent provided by this section, Sections 53.131, 53.14, 53.15, 
53.31, 53.32, 53.35(a), and 53.39 apply to and govern such 
corporation and its procedures and bonds.  In addition to the 
specific powers granted under this subsection, the corporation 
shall have all powers granted under the Texas Non-Profit 
Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil 
Statutes) that are necessary, incidental, or subordinate in 
carrying out the purposes authorized in this subsection.
	(2)  On page 26, line 5, strike "8.051(a) and 8.121" and 
substitute "8.051(a), 8.121, and 53.47(k)".
	(3)  Renumber the sections of the bill accordingly.