HB 1085

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 to provide services as a secondary
5	student loan market; providing for a board of directors
6	and specifying membership; providing powers and duties of
7	the corporation; authorizing the corporation to borrow
8	through public bonds and private financial sources;
9	providing exemptions from taxation, procurement
10	procedures, and administrative procedures; providing an
11	effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1.  Section 1009.9997, Florida Statutes, is created
16	to read:
17	1009.9997  Educational Loan Marketing Corporation of
18	Florida.--
19	(1)  There is created the Educational Loan Marketing
20	Corporation of Florida. The corporation is created pursuant to
21	chapter 617 as a not-for-profit entity separate from the state
22	to purchase, service, and otherwise provide access and service
23	as a secondary market for student loans in the state.
24	(2)  The corporation shall be administered by an 11-member
25	board of directors composed of five members appointed by the
26	Governor, three members appointed by the President of the
27	Senate, and three members appointed by the Speaker of the House
28	of Representatives. The members shall be appointed through
29	collaboration by the appointing authorities and shall be
30	confirmed by the Senate. The membership of the board of
31	directors shall include:
32	(a)  Two members who are representatives of lending
33	institutions that originate student loans in the state and who
34	have a favorable reputation for skill, knowledge, and experience
35	in the field of higher education loan finance.
36	(b)  Two members who are representatives of state
37	universities.
38	(c)  Two members who are representatives of community
39	colleges.
40	(d)  One member who represents technical schools that are
41	eligible to receive student loans.
42	(e)  One member who represents independent colleges and
43	universities.
44	(f)  Two members who are chosen from a list submitted by
45	the Chief Financial Officer.
46	(g)  One lay citizen who does not derive a majority of his
47	or her income from education or an education-related field.
48
49	All members of the board of directors, including the chair,
50	shall be appointed to serve 3-year terms; however, for the
51	purpose of providing staggered terms, of the initial
52	appointments, three members shall be appointed to 1-year terms,
53	three members shall be appointed to 2-year terms, and five
54	members shall be appointed to 3-year terms.
55	(3)(a)  The board of directors may employ or retain such
56	persons as are necessary to perform the administrative and
57	financial transactions and responsibilities of the corporation
58	and to perform other necessary and proper functions not
59	prohibited by law.
60	(b)  Members of the board of directors may be reimbursed
61	from moneys of the corporation for expenses incurred as members,
62	consistent with chapters 112 and 287, but may not otherwise be
63	compensated for their services.
64	(c)  There shall be no liability on the part of, and no
65	cause of action of any nature shall arise against, agents or
66	employees of the corporation, members of the board of directors
67	of the corporation, or representatives of the state for any act
68	or omission of the board of directors in the performance of
69	their powers and duties under this section.
70	(d)  Meetings of the board of directors are subject to the
71	provisions of s. 286.011.
72	(4)  The board of directors shall adopt a plan of operation
73	and articles, bylaws, and operating rules.
74	(5)  The corporation may:
75	(a)  Sue or be sued.
76	(b)  Borrow through public bonds pursuant to ss. 159.807
77	and 159.8083 and private finance sources in order to meet the
78	demands of the student loan servicing program.
79	(c)  Exercise all powers granted the corporation under
80	chapter 617.
81	(6)(a)  It is the intent of the Legislature that the tax
82	exemptions provided in this subsection will augment the
83	financial resources of the corporation to better enable the
84	corporation to fulfill its public purposes.
85	(b)  The corporation shall not be considered a political
86	subdivision of the state, but shall be exempt from the corporate
87	income tax. The revenues of the corporation are funds received
88	for providing services as a secondary student loan market as
89	required by this section and for conducting all other activities
90	of the corporation and shall not be considered taxes, fees,
91	licenses, or charges for services imposed by the Legislature on
92	individuals, businesses, or agencies outside state government.
93	Bonds and other debt obligations issued by or on behalf of the
94	corporation are not to be considered state bonds within the
95	meaning set forth in s. 215.58(8). The corporation is not
96	subject to the procurement provisions of chapter 287, and
97	policies and decisions of the corporation relating to incurring
98	debt, loan procurement, and service under corporation policies,
99	and all services relating thereto, are not subject to the
100	provisions of chapter 120. Any bonds issued by the corporation,
101	their transfer, and the income therefrom, including any profit
102	made on the sale thereof, shall at all times be free from
103	taxation of every kind by the state and any political
104	subdivision or local unit or other instrumentality thereof.
105	However, this exemption does not apply to any tax imposed by
106	chapter 220 on interest, income, or profits on debt obligations
107	owned by corporations other than the Educational Loan Marketing
108	Corporation of Florida.
109	Section 2.  This act shall take effect upon becoming a law.

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