HB 1085

CS

CHAMBER ACTION

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

CODING: Words stricken are deletions; words underlined are additions.