Amend SB 1640 (house committee printing) by adding the
following appropriately numbered SECTION to the bill and
renumbering the subsequent SECTIONS of the bill accordingly:
SECTION ____. (a) Section 52.17, Education Code, is
amended by amending Subsections (a), (c), and (d) and adding
Subsection (a-1) to read as follows:
(a) Each fiscal year a sufficient portion of the funds
received by the board as repayment of student loans granted under
this chapter, as interest on the loans, and as other available funds
relating to the student loan program shall be deposited in the state
treasury in the Texas college interest and sinking fund or a board
interest and sinking fund to:
(1) pay the interest and principal coming due during
the next [ensuing] fiscal year on [and to establish and maintain a
reserve in the interest and sinking fund equal to the average annual
principal and interest requirements of] all outstanding bonds
issued under this chapter that are secured by money [funds] in, as
applicable, the Texas college interest and sinking fund or a board
interest and sinking fund; and
(2) establish and maintain any reserves required by
the board resolution authorizing the issuance of the bonds.
(a-1) With respect to any bonds that remain outstanding
under this chapter, the board may, subject to the terms of the
applicable board resolution authorizing the issuance of those
bonds:
(1) reduce, eliminate, or replace any reserve portion
of the Texas college interest and sinking fund or a board interest
and sinking fund; and
(2) apply any excess money in accordance with
Subsection (b).
(c) If [In the event that] funds received by the board in any
fiscal year as repayment of student loans and as interest on the
loans are insufficient to pay the interest coming due and the
principal maturing on the bonds during the next [ensuing] fiscal
year as described by Subsection (a), the comptroller shall transfer
into the Texas college interest and sinking fund and each board
interest and sinking fund out of the first money coming into the
treasury that[, which] is not otherwise appropriated by the
constitution[,] an additional amount sufficient to pay that [the]
interest [coming due] and [the] principal [maturing on the bonds
during the ensuing fiscal year].
(d) The resolution authorizing the issuance of the bonds may
provide for the deposit, from bond proceeds, of not more than 36
[24] months' interest, and may provide for the use of bond proceeds
as a reserve for the payment of principal of and interest on the
bonds.
(b) Section 52.19, Education Code, is amended to read as
follows:
Sec. 52.19. INVESTMENT OF FUNDS. All money in the Texas
college interest and sinking fund and in each board interest and
sinking fund, including any [the] reserve portion, and all money in
the Texas Opportunity Plan Fund and in the student loan auxiliary
fund in excess of the amount necessary for student loans, and all
money in each board student loan fund shall be invested by the
comptroller in the investments prescribed by board resolution. The
board shall furnish to the comptroller a copy of the resolution
prescribing authorized investments. The board may sell any
instruments owned in the Texas college interest and sinking fund, a
board interest and sinking fund, the Texas Opportunity Plan Fund,
the student loan auxiliary fund, or a board student loan fund at the
prevailing market price. Income from these investments may be
deposited in any of those funds.
(c) Section 52.541(c), Education Code, is amended to read as
follows:
(c) The board may transfer funds between the Texas
Opportunity Plan Fund and the student loan auxiliary fund and among
the separate accounts established under this section within those
funds if:
(1) the transfer is approved by the board and is
necessary to administer the Texas Opportunity Plan Fund or the
student loan auxiliary fund; and
(2) the reason for the transfer is documented in the
accounting of the funds.
(d) Section 52.82(c), Education Code, is amended to read as
follows:
(c) The board may sell the bonds at a negotiated sale if the
board determines that a negotiated sale is a more efficient and
economical method of selling the bonds. If the board has determined
that the bonds will be sold by competitive bid, the board by
resolution shall prescribe the manner of giving notice of the sale.
(e) The following statutes are repealed:
(1) Sections 52.14 and 52.15, Education Code; and
(2) Section 52.32(d), Education Code.
(f) Notwithstanding any other provision of this Act, this
section takes effect September 1, 2007.