78R11847 JSA-F


By:  Wise                                                         H.B. No. 2915

Substitute the following for H.B. No. 2915:                                   

By:  Chavez                                                   C.S.H.B. No. 2915



A BILL TO BE ENTITLED

AN ACT

relating to the nonprofit organizations qualified to finance 
certain guaranteed student loans.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 53.47(k), Education Code, is repealed.                     
	SECTION 2.  If this Act takes effect on or after September 1, 
2003, Section 53.47(a), Education Code, is amended by adding 
Subdivision (6) to read as follows:
		(6)  "Qualified nonprofit corporation" means a 
nonprofit corporation:
			(A)  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
			(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 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.