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A BILL TO BE ENTITLED
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AN ACT
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relating to a prohibition against certain activities by a person |
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employed in the financial aid office of a public institution of |
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higher education or of a career school or college. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 51, Education Code, is |
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amended by adding Section 51.9645 to read as follows: |
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Sec. 51.9645. PROHIBITION AGAINST CERTAIN ACTIVITIES BY |
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FINANCIAL AID EMPLOYEES. (a) In this section: |
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(1) "Institution of higher education" has the meaning |
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assigned by Section 61.003. |
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(2) "Student loan" means a loan for which the loan |
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agreement requires that all or part of the loan proceeds be used to |
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assist a person in attending an institution of higher education or |
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other postsecondary institution. |
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(3) "Student loan lender" means a person whose primary |
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business is: |
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(A) making, brokering, arranging, or accepting |
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applications for student loans; or |
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(B) a combination of activities described by |
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Paragraph (A). |
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(b) A person employed by an institution of higher education |
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in the financial aid office of the institution may not: |
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(1) own stock or hold another ownership interest in a |
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student loan lender, other than through ownership of shares in a |
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publicly traded mutual fund or similar investment vehicle in which |
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the person does not exercise any discretion regarding the |
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investment of the assets of the fund or other investment vehicle; or |
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(2) solicit or accept any gift from a student loan |
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lender. |
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(c) A person who violates this section is subject to |
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dismissal or other appropriate disciplinary action. |
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SECTION 2. Subchapter F, Chapter 132, Education Code, is |
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amended by adding Section 132.158 to read as follows: |
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Sec. 132.158. PROHIBITION AGAINST CERTAIN ACTIVITIES BY |
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FINANCIAL AID EMPLOYEES. (a) In this section: |
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(1) "Student loan" means a loan for which the loan |
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agreement requires that all or part of the loan proceeds be used to |
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assist a person in attending an institution of higher education or |
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other postsecondary institution, including a career school or |
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college. |
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(2) "Student loan lender" means a person whose primary |
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business is: |
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(A) making, brokering, arranging, or accepting |
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applications for student loans; or |
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(B) a combination of activities described by |
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Paragraph (A). |
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(b) A person employed by a career school or college in the |
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financial aid office of the school or college may not: |
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(1) own stock or hold another ownership interest in a |
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student loan lender, other than through ownership of shares in a |
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publicly traded mutual fund or similar investment vehicle in which |
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the person does not exercise any discretion regarding the |
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investment of the assets of the fund or other investment vehicle; or |
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(2) solicit or accept any gift from a student loan |
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lender. |
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(c) A career school or college may not knowingly employ a |
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person who violates Subsection (b). If a career school or college |
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discovers that its employee is in violation of Subsection (b), the |
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school or college shall promptly take appropriate action to cure |
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the violation, including appropriate disciplinary action, based on |
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the severity of the violation and whether the violation was |
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inadvertent. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |