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A BILL TO BE ENTITLED
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AN ACT
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relating to the student loan program administered by the Texas |
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Higher Education Coordinating Board and to the repeal of a related |
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bond program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 52.11(c), (d), (h), (k), and (n), |
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Education Code, are amended to read as follows: |
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(c) The proceeds from the sale of bonds shall be placed in |
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the student loan auxiliary fund [Texas Opportunity Plan Fund]. |
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(d) To assure the orderly and economical marketing of the |
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bonds and the reasonable availability of money in the student loan |
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auxiliary fund [Texas Opportunity Plan Fund], the bonds may be |
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issued in installments. |
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(h) The bonds shall be executed on behalf of the |
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coordinating board, or its successor, as general obligations of the |
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State of Texas [in the following manner: They shall be signed by
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the chairman or vice chairman and the secretary of the board, and
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the seal of the board shall be impressed on them. They shall be
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signed by the governor and attested by the secretary of state and
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the state seal impressed on them. The resolution authorizing the
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issuance of any installment or series of bonds may prescribe the
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extent to which facsimile signatures and facsimile seals may be
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used in executing the bonds and appurtenant coupons. Interest
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coupons may be signed with the facsimile signatures of the chairman
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or vice chairman and the secretary of the board. In the event any
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officer whose manual or facsimile signature appears on any bond or
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coupon ceases to hold that office before the delivery of the bond or
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coupon, the signature will nevertheless be valid and sufficient for
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all purposes as if he had remained in office until the delivery had
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been made]. |
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(k) The performance of official duties prescribed by |
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Sections 50b-4, 50b-5, 50b-6, and 50b-7, Article III, [Section 50b,
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of the] Texas Constitution, in reference to the provision for the |
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payment and the payment of the bonds may be enforced in any court of |
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competent jurisdiction through mandamus or other appropriate |
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proceedings. |
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(n) This section applies only to bonds issued under Sections |
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50b-4, 50b-5, 50b-6, and 50b-7, Article III, [Section 50b, of the] |
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Texas Constitution. |
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SECTION 2. Section 52.16, Education Code, is amended to |
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read as follows: |
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Sec. 52.16. PROCEEDS FROM BOND SALE. All proceeds from the |
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sale of bonds authorized by Sections 50b-4, 50b-5, 50b-6, and |
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50b-7, Article III, [Section 50b, 50b-1, or 50b-2 of the] Texas |
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Constitution, shall be deposited in the state treasury in the |
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student loan auxiliary fund [Texas Opportunity Plan Fund]. |
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SECTION 3. Section 52.32(a), Education Code, is amended to |
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read as follows: |
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(a) The board may authorize loans from the Texas Opportunity |
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Plan Fund or the student loan auxiliary fund to a qualified |
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applicant who: |
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(1) is a resident of this state as defined by the board |
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in accordance with Subchapter B, Chapter 54; |
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(2) has been accepted for enrollment at a |
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participating higher educational institution[, provided that if
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the institution is a public or private postsecondary educational
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institution, the institution must be approved by an agency of the
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United States government for the purpose of guaranteeing the maker
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of such loans against loss due to the death, disability, or default
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of the borrower]; |
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(3) has established that the student has insufficient |
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resources to finance the student's college education or alternative |
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educator certification program; |
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(4) has submitted to the board at least two |
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references, including the names of the persons giving those |
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references and appropriate contact information for those persons; |
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and |
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(5) has complied with other requirements established |
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by the rules adopted by the board in conformity with this chapter. |
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SECTION 4. Section 52.33, Education Code, is amended to |
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read as follows: |
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Sec. 52.33. AMOUNT OF LOAN. The amount of the loan to any |
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qualified applicant shall be limited to the difference between the |
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financial resources available to the applicant, including [but not
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limited to] the applicant's [income from parents and other
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sources,] scholarships, gifts, grants, and other financial aid, |
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[and the amount the applicant can reasonably be expected to earn,] |
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and the amount necessary to pay the applicant's reasonable expenses |
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as a student at the participating institution of higher education |
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where the applicant has been accepted for enrollment, under the |
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rules and regulations adopted by the board. The total loan to any |
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individual student may never be more than the amount the student can |
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reasonably be expected to repay in the maximum loan period provided |
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by board rule, except as otherwise provided for in this chapter. |
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SECTION 5. Sections 52.34(a) and (f), Education Code, are |
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amended to read as follows: |
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(a) No payment may be made to any student until the student |
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has executed a note payable to the Texas Opportunity Plan Fund or |
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the student loan auxiliary fund for the full amount of the |
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authorized loan plus interest. |
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(f) The board shall distribute money to a participating |
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institution through the current statewide accounting system |
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[electronic funds transfer system maintained by the Texas
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Guaranteed Student Loan Corporation for disbursing loan funds from
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commercial lenders participating in the guaranteed student loan
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program under Chapter 57, except that at the request of a
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participating institution the board may distribute the money
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through other means. The board shall enter into a contract with the
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corporation for the use of the system, and the corporation shall
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make the system available to the board as necessary to carry out
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this subsection]. |
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SECTION 6. Section 52.38, Education Code, is amended to |
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read as follows: |
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Sec. 52.38. REPAYMENT OF LOANS. Repayment of any loan and |
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interest authorized under this chapter shall be made monthly and |
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shall begin not later than nine months after the date the student |
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borrower is last enrolled in a participating institution or any |
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other institution of higher education [and in no event later than
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five years from the date the first note evidencing a loan under this
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chapter is executed]. The board may, however, authorize a longer |
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period before beginning repayment of loans to medical students, |
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dental students, and other students seeking professional or |
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graduate degrees. The board may extend the time for beginning |
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repayment for unusual financial hardships, with the approval of the |
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attorney general. Repayment shall be made directly to the board [or
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to a participating institution] pursuant to a contract executed by |
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the board in accordance with its rules and regulations. |
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SECTION 7. The heading to Section 52.41, Education Code, is |
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amended to read as follows: |
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Sec. 52.41. SERVICING [RESTRICTION ON ISSUANCE] OF CERTAIN |
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FEDERALLY INSURED STUDENT LOANS. |
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SECTION 8. Section 52.41(b), Education Code, is amended to |
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read as follows: |
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(b) The board may service any outstanding student loans |
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issued by the board under the Federal Family Education Loan Program |
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authorized under Part B, Title IV, of the Higher Education Act of |
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1965 (20 U.S.C. Section 1071 et seq.). |
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SECTION 9. Section 52.53, Education Code, is amended to |
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read as follows: |
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Sec. 52.53. GIFTS AND GRANTS. The board may accept gifts, |
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grants, or donations of real or personal property from any |
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individual, group, association, or corporation or the United |
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States, subject to limitations or conditions set by law. The board |
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shall deposit gifts, grants, or donations of money [in the Texas
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Opportunity Plan Fund or] in the student loan auxiliary fund and |
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shall separately account for and expend the funds in accordance |
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with the specific purpose for which given and under such conditions |
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as are imposed by the donor and as provided by law. |
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SECTION 10. Section 52.541(a), Education Code, is amended |
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to read as follows: |
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(a) The board shall establish separate accounting within |
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the Texas Opportunity Plan Fund and the student loan auxiliary fund |
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for each of its existing loan programs[, including accounting for
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the federally insured loans that are insured by the United States
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Department of Education, the federally insured loans that are
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insured by the United States Department of Health and Human
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Services, and each loan program that consists of loans insured by
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the State of Texas]. |
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SECTION 11. The following provisions of the Education Code |
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are repealed: |
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(1) Sections 52.32(a-1) and (b); |
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(2) Section 52.40; |
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(3) Sections 52.41(a) and (c); and |
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(4) Subchapter E, Chapter 52. |
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SECTION 12. This Act takes effect September 1, 2017. |