HB 593

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

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