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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 exemption from fees |
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and tuition of certain persons at institutions of higher education; |
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authorizing the issuance of bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 52.01, Education Code, is amended to |
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read as follows: |
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Sec. 52.01. ADMINISTRATION. The Texas Higher Education |
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Coordinating Board, or its successors, shall administer the student |
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loan program authorized by this chapter pursuant to [Article III,] |
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Sections [50b, 50b-1, 50b-2, 50b-3,] 50b-4, [and] 50b-5, and 50b-6, |
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Article III, [of the] Texas Constitution, and any former provision |
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of the Texas Constitution authorizing bonds to finance educational |
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loans to students. Personnel and other expenses required to |
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properly administer this chapter shall be funded by: |
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(1) the general appropriations acts; or |
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(2) any other source of revenue received by the board |
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in connection with the operation of the student loan program. |
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SECTION 2. Subdivision (4), Section 52.501, Education Code, |
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is amended to read as follows: |
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(4) "Bond" means a general obligation bond issued by |
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the board under [Article III,] Section [50b, 50b-1, 50b-2, 50b-3,] |
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50b-4, [or] 50b-5, or 50b-6, Article III, [of the] Texas |
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Constitution, or any former provision of the Texas Constitution |
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authorizing bonds to finance educational loans to students. |
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SECTION 3. Subdivision (2), Section 52.81, Education Code, |
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is amended to read as follows: |
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(2) "Bond" means a general obligation bond issued by |
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the board under former [Article III,] Section 50b-3[,] or Section |
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50b-4, [or] 50b-5, or 50b-6, Article III, [of the] Texas |
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Constitution. |
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SECTION 4. Subsection (a), Section 52.82, Education Code, |
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is amended to read as follows: |
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(a) The board may by resolution authorize the issuance of |
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general obligation bonds in total aggregate amounts not to exceed: |
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(1) $300 million under former Section 50b-3, Article |
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III, Texas Constitution; |
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(2) $300 million under Section 50b-4, Article III, |
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Texas Constitution; [and] |
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(3) $400 million under Section 50b-5, Article III, |
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Texas Constitution; and |
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(4) $500 million under Section 50b-6, Article III, |
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Texas Constitution. |
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SECTION 5. Section 52.87, Education Code, is amended to |
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read as follows: |
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Sec. 52.87. MANDAMUS. The performance of official duties |
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prescribed by this subchapter and by former Section [Article III,
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Sections] 50b-3[,] and Sections 50b-4, [and] 50b-5, and 50b-6, |
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Article III, [of the] Texas Constitution, in reference to the |
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payment of the bonds, may be enforced in a court of competent |
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jurisdiction by mandamus or other appropriate proceedings. |
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SECTION 6. (a) Section 52.17, Education Code, is amended |
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by amending Subsections (a), (c), and (d) and adding Subsection |
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(a-1) to read as follows: |
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(a) Each fiscal year a sufficient portion of the funds |
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received by the board as repayment of student loans granted under |
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this chapter, as interest on the loans, and as other available funds |
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relating to the student loan program shall be deposited in the state |
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treasury in the Texas college interest and sinking fund or a board |
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interest and sinking fund to: |
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(1) pay the interest and principal coming due during |
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the next [ensuing] fiscal year on [and to establish and maintain a
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reserve in the interest and sinking fund equal to the average annual
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principal and interest requirements of] all outstanding bonds |
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issued under this chapter that are secured by money [funds] in, as |
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applicable, the Texas college interest and sinking fund or a board |
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interest and sinking fund; and |
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(2) establish and maintain any reserves required by |
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the board resolution authorizing the issuance of the bonds. |
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(a-1) With respect to any bonds that remain outstanding |
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under this chapter, the board may, subject to the terms of the |
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applicable board resolution authorizing the issuance of those |
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bonds: |
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(1) reduce, eliminate, or replace any reserve portion |
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of the Texas college interest and sinking fund or a board interest |
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and sinking fund; and |
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(2) apply any excess money in accordance with |
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Subsection (b). |
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(c) If [In the event that] funds received by the board in any |
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fiscal year as repayment of student loans and as interest on the |
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loans are insufficient to pay the interest coming due and the |
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principal maturing on the bonds during the next [ensuing] fiscal |
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year as described by Subsection (a), the comptroller shall transfer |
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into the Texas college interest and sinking fund and each board |
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interest and sinking fund out of the first money coming into the |
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treasury that[, which] is not otherwise appropriated by the |
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constitution[,] an additional amount sufficient to pay that [the] |
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interest [coming due] and [the] principal [maturing on the bonds
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during the ensuing fiscal year]. |
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(d) The resolution authorizing the issuance of the bonds may |
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provide for the deposit, from bond proceeds, of not more than 36 |
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[24] months' interest, and may provide for the use of bond proceeds |
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as a reserve for the payment of principal of and interest on the |
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bonds. |
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(b) Section 52.19, Education Code, is amended to read as |
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follows: |
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Sec. 52.19. INVESTMENT OF FUNDS. All money in the Texas |
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college interest and sinking fund and in each board interest and |
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sinking fund, including any [the] reserve portion, and all money in |
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the Texas Opportunity Plan Fund and in the student loan auxiliary |
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fund in excess of the amount necessary for student loans, and all |
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money in each board student loan fund shall be invested by the |
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comptroller in the investments prescribed by board resolution. The |
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board shall furnish to the comptroller a copy of the resolution |
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prescribing authorized investments. The board may sell any |
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instruments owned in the Texas college interest and sinking fund, a |
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board interest and sinking fund, the Texas Opportunity Plan Fund, |
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the student loan auxiliary fund, or a board student loan fund at the |
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prevailing market price. Income from these investments may be |
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deposited in any of those funds. |
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(c) Subsection (c), Section 52.541, Education Code, is |
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amended to read as follows: |
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(c) The board may transfer funds between the Texas |
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Opportunity Plan Fund and the student loan auxiliary fund and among |
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the separate accounts established under this section within those |
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funds if: |
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(1) the transfer is approved by the board and is |
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necessary to administer the Texas Opportunity Plan Fund or the |
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student loan auxiliary fund; and |
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(2) the reason for the transfer is documented in the |
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accounting of the funds. |
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(d) Subsection (c), Section 52.82, Education Code, is |
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amended to read as follows: |
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(c) The board may sell the bonds at a negotiated sale if the |
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board determines that a negotiated sale is a more efficient and |
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economical method of selling the bonds. If the board has determined |
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that the bonds will be sold by competitive bid, the board by |
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resolution shall prescribe the manner of giving notice of the sale. |
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(e) The following statutes are repealed: |
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(1) Sections 52.14 and 52.15, Education Code; and |
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(2) Subsection (d), Section 52.32, Education Code. |
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(f) Notwithstanding any other provision of this Act, this |
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section takes effect September 1, 2007. |
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SECTION 7. Section 54.203, Education Code, is amended by |
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amending Subsection (e) and adding Subsection (e-1) to read as |
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follows: |
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(e) The exemption from fees provided for in Subsection (a) |
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[of this section] does not apply to a person who [if] at the time of |
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[his] registration [he] is entitled to receive [eligible for] |
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educational benefits under federal legislation [in effect at the
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time of his registration] if the value of those benefits received in |
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a semester or other term is equal to or exceeds the value of the |
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exemption for the same semester or other term. If the value of |
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federal benefits received in a semester or other term does not equal |
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or exceed the value of the exemption for the same semester or other |
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term, [except that] the person [must first utilize the federal
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benefit for which he] is entitled to receive both the federal |
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benefit and the exemption in the same semester or other term. The |
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[eligible and the] combined amount of the federal benefit plus the |
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amount of the exemption received in a semester or other term may |
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[this waiver shall] not exceed the cost of tuition and fees for that |
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semester or other term [maximum value of the waiver]. A person is |
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covered by the exemption [exemptions] if the person's [his] right |
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to benefits under federal legislation is extinguished at the time |
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of the person's [his] registration, except that a person may [is] |
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not receive [eligible for] an exemption from fees under this |
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section if the person's right to benefits under federal legislation |
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is extinguished because the person is in default of repayment of a |
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loan made to the person under a federal program to provide or |
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guarantee loans for educational purposes. |
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(e-1) A person may [is] not receive an [eligible for the] |
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exemption under this section if the person is in default on a loan |
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made or guaranteed for educational purposes by the State of Texas. |
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SECTION 8. Subsection (e), Section 54.203, Education Code, |
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as amended by this Act, and Subsection (e-1), Section 54.203, |
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Education Code, as added by this Act, apply beginning with tuition |
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and fees for the 2007 fall semester. Tuition and fees for a term or |
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semester before the 2007 fall semester are covered by the law in |
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effect immediately before the effective date of this Act, and the |
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former law is continued in effect for that purpose. |
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SECTION 9. Sections 1 through 5 of this Act takes effect on |
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the date on which the constitutional amendment proposed by the 80th |
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Legislature, Regular Session, 2007, providing for the issuance of |
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$500 million in general obligation bonds to finance educational |
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loans to students and authorizing bond enhancement agreements with |
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respect to general obligation bonds issued for that purpose takes |
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effect. If that amendment is not approved by the voters, then |
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Sections 1 through 5 of this Act have no effect. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1640 passed the Senate on |
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May 17, 2007, by the following vote: Yeas 31, Nays 0; and that the |
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Senate concurred in House amendments on May 25, 2007, by the |
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following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1640 passed the House, with |
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amendments, on May 23, 2007, by the following vote: Yeas 139, |
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Nays 0, one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |