|
|
|
|
AN ACT
|
|
relating to a prohibition against certain activities by a person |
|
employed in the financial aid office of a public institution of |
|
higher education or of a career school or college. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subchapter Z, Chapter 51, Education Code, is |
|
amended by adding Section 51.9645 to read as follows: |
|
Sec. 51.9645. PROHIBITION AGAINST CERTAIN ACTIVITIES BY |
|
FINANCIAL AID EMPLOYEES. (a) In this section: |
|
(1) "Institution of higher education" has the meaning |
|
assigned by Section 61.003. |
|
(2) "Student loan" means a loan for which the loan |
|
agreement requires that all or part of the loan proceeds be used to |
|
assist a person in attending an institution of higher education or |
|
other postsecondary institution. |
|
(3) "Student loan lender" means a person whose primary |
|
business is: |
|
(A) making, brokering, arranging, or accepting |
|
applications for student loans; or |
|
(B) a combination of activities described by |
|
Paragraph (A). |
|
(b) A person employed by an institution of higher education |
|
in the financial aid office of the institution may not: |
|
(1) own stock or hold another ownership interest in a |
|
student loan lender, other than through ownership of shares in a |
|
publicly traded mutual fund or similar investment vehicle in which |
|
the person does not exercise any discretion regarding the |
|
investment of the assets of the fund or other investment vehicle; or |
|
(2) solicit or accept any gift from a student loan |
|
lender. |
|
(c) A person who violates this section is subject to |
|
dismissal or other appropriate disciplinary action. |
|
SECTION 2. Subchapter F, Chapter 132, Education Code, is |
|
amended by adding Section 132.158 to read as follows: |
|
Sec. 132.158. PROHIBITION AGAINST CERTAIN ACTIVITIES BY |
|
FINANCIAL AID EMPLOYEES. (a) In this section: |
|
(1) "Student loan" means a loan for which the loan |
|
agreement requires that all or part of the loan proceeds be used to |
|
assist a person in attending an institution of higher education or |
|
other postsecondary institution, including a career school or |
|
college. |
|
(2) "Student loan lender" means a person whose primary |
|
business is: |
|
(A) making, brokering, arranging, or accepting |
|
applications for student loans; or |
|
(B) a combination of activities described by |
|
Paragraph (A). |
|
(b) A person employed by a career school or college in the |
|
financial aid office of the school or college may not: |
|
(1) own stock or hold another ownership interest in a |
|
student loan lender, other than through ownership of shares in a |
|
publicly traded mutual fund or similar investment vehicle in which |
|
the person does not exercise any discretion regarding the |
|
investment of the assets of the fund or other investment vehicle; or |
|
(2) solicit or accept any gift from a student loan |
|
lender. |
|
(c) A career school or college may not knowingly employ a |
|
person who violates Subsection (b). If a career school or college |
|
discovers that its employee is in violation of Subsection (b), the |
|
school or college shall promptly take appropriate action to cure |
|
the violation, including appropriate disciplinary action, based on |
|
the severity of the violation and whether the violation was |
|
inadvertent. |
|
SECTION 3. This Act takes effect immediately if it receives |
|
a vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for immediate effect, this |
|
Act takes effect September 1, 2009. |
|
|
|
|
|
|
|
|
______________________________ |
______________________________ |
|
President of the Senate |
Speaker of the House |
|
|
I hereby certify that S.B. No. 194 passed the Senate on |
|
April 2, 2009, by the following vote: Yeas 31, Nays 0; and that |
|
the Senate concurred in House amendment on May 30, 2009, by the |
|
following vote: Yeas 31, Nays 0. |
|
|
|
|
______________________________ |
|
Secretary of the Senate |
|
|
I hereby certify that S.B. No. 194 passed the House, with |
|
amendment, on May 27, 2009, by the following vote: Yeas 148, |
|
Nays 0, one present not voting. |
|
|
|
|
______________________________ |
|
Chief Clerk of the House |
|
|
|
|
|
Approved: |
|
|
|
______________________________ |
|
Date |
|
|
|
|
|
______________________________ |
|
Governor |