| 1 | The Colleges & Universities Committee recommends the following: |
| 2 |
|
| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to educational loan marketing; creating s. |
| 7 | 1009.9997, F.S.; creating the Educational Loan Marketing |
| 8 | Corporation of Florida, Inc., to provide services as a |
| 9 | secondary student loan market; requiring compliance with |
| 10 | not-for-profit corporation requirements and public records |
| 11 | and public meetings requirements; authorizing the |
| 12 | corporation to borrow through public bonds and private |
| 13 | financial sources; providing uses of proceeds of the |
| 14 | corporation; providing for a board of directors and |
| 15 | specifying membership; providing for powers and duties of |
| 16 | the board of directors; requiring the corporation to |
| 17 | submit a business plan to the Department of Education; |
| 18 | providing accounting and audit requirements; requiring |
| 19 | revenues of the corporation to be used for providing |
| 20 | secondary student loan market services; prohibiting state |
| 21 | indebtedness or obligation; exempting bonds issued by the |
| 22 | corporation, their transfer, and the income therefrom from |
| 23 | taxation; providing intent and requirements relating to |
| 24 | costs; requiring budget approval by the department; |
| 25 | providing an effective date. |
| 26 |
|
| 27 | Be It Enacted by the Legislature of the State of Florida: |
| 28 |
|
| 29 | Section 1. Section 1009.9997, Florida Statutes, is created |
| 30 | to read: |
| 31 | 1009.9997 Educational Loan Marketing Corporation of |
| 32 | Florida, Inc.-- |
| 33 | (1) There is created a not-for-profit corporation, to be |
| 34 | known as the Educational Loan Marketing Corporation of Florida, |
| 35 | Inc., which shall be registered, incorporated, organized, and |
| 36 | operated in compliance with chapter 617 and which shall not be a |
| 37 | unit or entity of state government. The Legislature determines, |
| 38 | however, that public policy dictates that the Educational Loan |
| 39 | Marketing Corporation of Florida, Inc., operate in the most open |
| 40 | and accessible manner consistent with its public purpose. To |
| 41 | this end, the Legislature specifically declares that the |
| 42 | Educational Loan Marketing Corporation of Florida, Inc., and its |
| 43 | boards and advisory committees or similar groups created by the |
| 44 | Educational Loan Marketing Corporation of Florida, Inc., are |
| 45 | subject to the provisions of chapter 119, relating to public |
| 46 | records, and the provisions of chapter 286, relating to public |
| 47 | meetings and records. |
| 48 | (2)(a) The corporation shall purchase, service, and |
| 49 | otherwise provide access and service as a secondary market for |
| 50 | student loans in this state. The corporation is authorized to |
| 51 | borrow funds and incur debt, including the issuance of revenue |
| 52 | bonds, for the purposes set forth in this section. The |
| 53 | corporation is authorized to apply for private activity bond |
| 54 | allocation in accordance with the provisions of part VI of |
| 55 | chapter 159. |
| 56 | (b) Proceeds of the corporation shall be used for the |
| 57 | creation of incentive programs serving Florida residents, such |
| 58 | as, but not limited to, interest rate reductions for automated |
| 59 | and timely payments and programs for students pursuing a degree |
| 60 | in areas of critical need in the state. |
| 61 | (3) The corporation shall be administered by a 13-member |
| 62 | board of directors composed of 11 members appointed by the |
| 63 | Governor, one member appointed by the President of the Senate, |
| 64 | and one member appointed by the Speaker of the House of |
| 65 | Representatives. The members shall be confirmed by the Senate. |
| 66 | The membership of the board of directors shall include: |
| 67 | (a) Two members who are representatives of lending |
| 68 | institutions that originate student loans in the state and who |
| 69 | have a favorable reputation for skill, knowledge, and experience |
| 70 | in the field of higher education loan finance. |
| 71 | (b) Two members who are representatives of state |
| 72 | universities. |
| 73 | (c) Two members who are representatives of community |
| 74 | colleges. |
| 75 | (d) One member who represents technical schools that are |
| 76 | eligible to receive student loans. |
| 77 | (e) One member who represents independent colleges and |
| 78 | universities. |
| 79 | (f) Two members who are chosen from a list of five names |
| 80 | submitted by the Chief Financial Officer. |
| 81 | (g) One lay citizen who does not derive a majority of his |
| 82 | or her income from education or an education-related field. |
| 83 | (h) A member of the Senate, who shall be appointed by the |
| 84 | President of the Senate as an ex officio member of the board of |
| 85 | directors and who shall serve at the pleasure of the President |
| 86 | of the Senate. |
| 87 | (i) A member of the House of Representatives, who shall be |
| 88 | appointed by the Speaker of the House of Representatives as an |
| 89 | ex officio member of the board of directors and who shall serve |
| 90 | at the pleasure of the Speaker of the House of Representatives. |
| 91 |
|
| 92 | Except for the members of the Legislature, all members of the |
| 93 | board of directors, including the chair, shall be appointed to |
| 94 | serve 3-year terms. However, for the purpose of providing |
| 95 | staggered terms, of the initial appointments, three members |
| 96 | shall be appointed to 1-year terms, three members shall be |
| 97 | appointed to 2-year terms, and five members shall be appointed |
| 98 | to 3-year terms. |
| 99 | (4)(a) The board of directors shall annually elect a chair |
| 100 | and vice chair. |
| 101 | (b) Members of the board of directors may be reimbursed |
| 102 | from moneys of the corporation for expenses incurred as members, |
| 103 | pursuant to s. 112.061, but shall not otherwise be compensated |
| 104 | for their services. |
| 105 | (c) Each member of the board of directors who is not |
| 106 | otherwise required to file financial disclosure pursuant to s. |
| 107 | 8, Art. II of the State Constitution or s. 112.3144 shall file |
| 108 | disclosure of financial interests pursuant to s. 112.3145. |
| 109 | (5) The board of directors may employ or retain such |
| 110 | persons as are necessary to perform the administrative and |
| 111 | financial transactions and responsibilities of the corporation |
| 112 | and to perform other necessary and proper functions required by |
| 113 | law. |
| 114 | (6)(a) The corporation shall annually prepare and submit a |
| 115 | business plan to the Department of Education. The department |
| 116 | shall monitor the corporation and set performance standards that |
| 117 | are consistent with its mission. |
| 118 | (b) The corporation must maintain adequate accounting |
| 119 | records that comply with all applicable federal and state laws |
| 120 | and must authorize the department to have access to and conduct |
| 121 | audits of all records concerning the contracted and outsourced |
| 122 | functions or services. |
| 123 | (c) The corporation must meet all legal and auditing |
| 124 | requirements for record retention and transfer to the state, at |
| 125 | no cost to the state, of all public records in its possession |
| 126 | upon termination or dissolution. All records stored |
| 127 | electronically must be provided to the state in a format that is |
| 128 | compatible with state information technology systems. |
| 129 | (7)(a) It is the intent of the Legislature that the tax |
| 130 | exemptions provided in this subsection will augment the |
| 131 | financial resources of the corporation to better enable the |
| 132 | corporation to fulfill its public purpose. |
| 133 | (b) The revenues of the corporation are funds received for |
| 134 | providing services as a secondary student loan market as |
| 135 | required by this section and for conducting all other activities |
| 136 | of the corporation and shall not be considered taxes, fees, |
| 137 | licenses, or charges for services imposed by the Legislature on |
| 138 | individuals, businesses, or agencies outside state government. |
| 139 | Bonds and other debt obligations issued by or on behalf of the |
| 140 | corporation shall be payable solely from funds derived directly |
| 141 | from sources other than state tax revenues, shall not constitute |
| 142 | a general obligation or indebtedness of the state or any of its |
| 143 | agencies or political subdivisions, and shall not be a debt of |
| 144 | the state or any of its agencies or political subdivisions, and |
| 145 | the full faith and credit of the state is not pledged to the |
| 146 | payment of the principal of, premium if any on, or interest on |
| 147 | such obligations. The issuance of such obligations shall not |
| 148 | directly, indirectly, or contingently obligate the state to use |
| 149 | state funds, to levy or to pledge any form of taxation |
| 150 | whatsoever, or to make any appropriation for payment of the |
| 151 | principal of, premium if any on, or interest on such |
| 152 | obligations. Any bonds issued by the corporation, their |
| 153 | transfer, and the income therefrom, including any profit made on |
| 154 | the sale thereof, shall at all times be free from taxation of |
| 155 | every kind by the state or any political subdivision, local |
| 156 | unit, or other instrumentality thereof. However, this exemption |
| 157 | does not apply to any tax imposed by chapter 220 on interest, |
| 158 | income, or profits on debt obligations owned by corporations |
| 159 | other than the Educational Loan Marketing Corporation of |
| 160 | Florida, Inc. |
| 161 | (8)(a) It is the intent of the Legislature that the |
| 162 | corporation be self-sustaining and that all operational costs, |
| 163 | with the exception of reasonable and necessary start-up costs, |
| 164 | be paid through income received by the corporation from |
| 165 | activities authorized pursuant to this section. Any funds |
| 166 | received from the state to assist in start-up costs must be |
| 167 | repaid by the corporation. |
| 168 | (b) In keeping with its public mission, the corporation |
| 169 | shall keep expenses, including salaries and benefits, on par |
| 170 | with similarly situated public-private entities, subject to |
| 171 | approval by the Department of Education. The corporation shall |
| 172 | annually submit a proposed budget to the department, which shall |
| 173 | approve it consistent with this subsection. |
| 174 | Section 2. This act shall take effect upon becoming a law. |