Bill Title: To revise the laws regarding designation of the student loan secondary market agency and allocation of private activity bonds.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-05-13 - To Finance & Financial Institutions
[SB259 Detail]Download: Ohio-2009-SB259-Introduced.html
As Introduced
| 128th General Assembly | | Regular Session | | 2009-2010 |
| |
A BILL
| To amend sections 133.021 and 3351.07 of the Revised | 1 |
|
Code to revise the laws regarding designation of | 2 |
|
the student loan secondary market agency and | 3 |
|
allocation of private activity bonds. | 4 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
| Section 1. That sections 133.021 and 3351.07 of the Revised | 5 |
|
Code be amended to read as follows: | 6 |
| Sec. 133.021. The general assembly hereby finds and declares | 7 |
|
that the "Tax Reform Act of 1986" (the "Act") establishes a | 8 |
|
unified volume ceiling on the aggregate amount of private activity | 9 |
|
bonds that can be issued in each state. The amount of the unified | 10 |
|
volume ceiling shall be the amount determined as set forth in | 11 |
|
section 146(d) of the Internal Revenue Code. | 12 |
| The general assembly further finds and declares that the Act | 13 |
|
requires the state to allocate its volume ceiling according to a | 14 |
|
specified formula unless a different procedure is established by | 15 |
|
the governor or general assembly. | 16 |
| The general assembly further finds and declares that pursuant | 17 |
|
to authorization of state legislation the general assembly has, by | 18 |
|
division (D)(3) of section 133.02 of the Revised Code, effective | 19 |
|
October 30, 1989, provided for delegating such function to the | 20 |
|
governor and for further delegation as therein provided, subject | 21 |
|
to such prospectively effective actions as may subsequently be | 22 |
|
taken by the general assembly. | 23 |
| The general assembly further finds and declares that it | 24 |
|
desires to by legislation provide for an efficient, effective, and | 25 |
|
equitable procedure under which the state will allocate the | 26 |
|
unified volume ceiling. | 27 |
| The general assembly therefore finds and declares that it is | 28 |
|
necessary to create the joint select committee on volume cap to | 29 |
|
create a process for the allocation of the unified volume ceiling. | 30 |
| (A) Pursuant to section 146(e)(2)(B)(ii) of the Internal | 31 |
|
Revenue Code, which provides that a state may by law provide a | 32 |
|
different formula for allocating the state ceiling, there is | 33 |
|
hereby created the joint select committee on volume cap to provide | 34 |
|
for the allocation and the reallocation of the unified volume | 35 |
|
ceiling among the governmental units (or other authorities) in the | 36 |
|
state having authority to issue tax exempt private activity bonds. | 37 |
| (B) The committee shall consist of eight members. Two members | 38 |
|
shall be from the house of representatives appointed by the | 39 |
|
speaker of the house of representatives; two members shall be from | 40 |
|
the senate appointed by the president of the senate; and four | 41 |
|
members shall be appointed by the governor. Each member shall be | 42 |
|
selected for the member's knowledge and experience in tax exempt | 43 |
|
private activity bonds. The members shall serve at the pleasure of | 44 |
|
the appointing authority. A vacancy shall be filled in the same | 45 |
|
manner as the original appointment. | 46 |
| (C) The purpose of the committee shall be to maximize the | 47 |
|
economic benefits of the unified volume ceiling to all citizens of | 48 |
|
the state. To this end, the joint select committee on volume cap | 49 |
|
shall: | 50 |
| (1) Set forth procedures for making allocations, reallocation | 51 |
|
and carry forward of the state's unified volume ceiling in | 52 |
|
accordance with the Act; | 53 |
| (2) Develop strategies for allocating and reallocating the | 54 |
|
unified volume ceiling which are designed to maximize the | 55 |
|
availability of tax exempt private activity bonds among competing | 56 |
|
sectors of the state. | 57 |
| (D) To provide for the orderly and prompt issuance of private | 58 |
|
activity bonds, the committee is authorized to allocate the | 59 |
|
unified volume ceiling among those governmental units (or other | 60 |
|
authorities) in the state having authority to issue tax exempt | 61 |
|
private activity bonds. The committee shall reserve a portion of | 62 |
|
the unified volume ceiling to be allocated for multi-family rental | 63 |
|
housing projects. The committee in determination of unified volume | 64 |
|
ceiling allocations and reallocations shall consider the | 65 |
|
following: | 66 |
| (1) The interest of the state with regard to long-term | 67 |
|
economic development, housing, education, redevelopment, and solid | 68 |
|
waste management; | 69 |
| (2) The projected increase of jobs in the state; | 70 |
| (3) The needs of political subdivisions. | 71 |
| (E) The director of development shall adopt rules in | 72 |
|
accordance with Chapter 119. of the Revised Code to carry out the | 73 |
|
purposes of this section. | 74 |
| (F) Any allocation of the state's unified volume ceiling | 75 |
|
pursuant to this section for the purposes of the issuance of | 76 |
|
student loan notes shall be awarded only to either of the | 77 |
|
following: | 78 |
(1) The nonprofit corporation designated under division (B) | 79 |
of section 3351.07 of the Revised Codeorganized at the request of | 80 |
|
the governor, on behalf of the state, pursuant to a letter dated | 81 |
|
February 3, 2005, and authorized to issue qualified scholarship | 82 |
|
funding bonds as described in section 150(d) of the Internal | 83 |
|
Revenue Code of 1986, as amended, or other such entity that may be | 84 |
|
requested to replace that nonprofit corporation; | 85 |
| (2) The treasurer of state for the purposes of carrying out | 86 |
|
the student loan program described in Chapter 3366. of the Revised | 87 |
|
Code. | 88 |
| Sec. 3351.07. (A) For the purposes of this chapter, | 89 |
|
"approved lender" means any bank as defined in section 1101.01 of | 90 |
|
the Revised Code, any domestic savings and loan association as | 91 |
|
defined in section 1151.01 of the Revised Code, any credit union | 92 |
|
as defined in section 1733.01 of the Revised Code, any federal | 93 |
|
credit union established pursuant to federal law, any insurance | 94 |
|
company organized or authorized to do business in this state, any | 95 |
|
pension fund eligible under the "Higher Education Amendments of | 96 |
|
1968," 82 Stat. 1026, 20 U.S.C.A. 1085, as amended, the secondary | 97 |
|
market operation designated under division (B) of this section, or | 98 |
|
any secondary market operation established pursuant to the | 99 |
|
"Education Amendments of 1972," 86 Stat. 261, 20 U.S.C.A. 1071, as | 100 |
|
amended, or under the laws of any state. | 101 |
| (B) The governor may designate one nonprofit corporation | 102 |
|
secondary market operation to be the single nonprofit private | 103 |
|
agency designated by the state under the "Higher Education Act of | 104 |
1965," 101 Stat. 347, 20 U.S.C.A. 1085(d)(1)(D), as amended. AThe | 105 |
|
designation in effect on the effective date of this amendment | 106 |
expires December 31, 2009shall expire on June 30, 2015. Each | 107 |
|
designation after the effective date of this amendment shall be | 108 |
made by competitive selection and shall be valid for one yearfive | 109 |
|
years. The controlling board shall not waive the competitive | 110 |
|
selection requirement. | 111 |
| (C) The nonprofit corporation designated by the governor | 112 |
|
under division (B) of this section as the private agency secondary | 113 |
|
market operation shall be considered to be an agency of the state, | 114 |
|
in accordance with section 435(d)(1)(F) of the "Higher Education | 115 |
|
Act of 1965," 101 Stat. 347, 20 U.S.C.A. 1085(d)(1)(F), as | 116 |
|
amended, exclusively for the purpose of functioning as a secondary | 117 |
|
student loan market. The corporation shall be considered a state | 118 |
|
agency only for the purposes of this division and no other | 119 |
|
division or section of the Revised Code regarding state agencies | 120 |
|
shall apply to the corporation. No liability or obligation | 121 |
|
incurred by the corporation shall be considered to be a liability | 122 |
|
or debt of the state, nor shall the state be construed to act as | 123 |
|
guarantor of any debt of the corporation. | 124 |
| (D) The nonprofit corporation designated under division (B) | 125 |
|
of this section shall designate a separate nonprofit corporation | 126 |
|
to operate exclusively for charitable and educational purposes, | 127 |
|
complementing and supplementing the designating corporation's | 128 |
|
secondary market operation for student loans authorized under the | 129 |
|
"Higher Education Act of 1965," 101 Stat. 347, 20 U.S.C.A. 1085, | 130 |
|
as amended, and promoting the general health and welfare of the | 131 |
|
state, the public interest, and a public purpose through improving | 132 |
|
student assistance programs by expanding access to higher | 133 |
|
education financing programs for students and families in need of | 134 |
|
student financial aid. In furtherance of such purposes, the | 135 |
|
separate nonprofit corporation may do all of the following: | 136 |
| (1) Assist educational institutions in establishing financial | 137 |
|
aid programs to help students obtain an economical education; | 138 |
| (2) Encourage financial institutions to increase educational | 139 |
|
opportunities by making funds available to both students and | 140 |
|
educational institutions; | 141 |
| (3) Make available financial aid that supplements the | 142 |
|
financial assistance provided by eligible and approved lenders | 143 |
|
under state and federal programs; | 144 |
| (4) Develop and administer programs that do all of the | 145 |
|
following: | 146 |
| (a) Provide financial aid and incidental student financial | 147 |
|
aid information to students and their parents or other persons | 148 |
|
responsible for paying educational costs of those students at | 149 |
|
educational institutions; | 150 |
| (b) Provide financial aid and information relating to it to | 151 |
|
and through educational institutions, enabling those institutions | 152 |
|
to assist students financially in obtaining an education and fully | 153 |
|
expanding their intellectual capacity and skills; | 154 |
| (c) Better enable financial institutions to participate in | 155 |
|
student loan programs and other forms of financial aid, assisting | 156 |
|
students and educational institutions to increase education | 157 |
|
excellence and accessibility. | 158 |
| (E) The nonprofit corporation designated under authority of | 159 |
|
division (D) of this section shall do both of the following: | 160 |
| (1) Establish the criteria, standards, terms, and conditions | 161 |
|
for participation by students, parents, educational institutions, | 162 |
|
and financial institutions in that corporation's programs; | 163 |
| (2) Provide the governor a report of its programs and a copy | 164 |
|
of its audited financial statements not later than one hundred | 165 |
|
eighty days after the end of each fiscal year of the corporation. | 166 |
| No liability, obligation, or debt incurred by the corporation | 167 |
|
designated under authority of division (D) of this section or by | 168 |
|
any person under that corporation's programs shall be, or be | 169 |
|
considered to be, a liability, obligation, or debt of, or a pledge | 170 |
|
of the faith and credit of, the state, any political subdivision | 171 |
|
of the state, or any state-supported or state-assisted institution | 172 |
|
of higher education, nor shall the state or any political | 173 |
|
subdivision of the state or any state-supported or state-assisted | 174 |
|
institution of higher education be or be construed to act as an | 175 |
|
obligor under or guarantor of any liability, obligation, or debt | 176 |
|
of that corporation or of any person under that corporation's | 177 |
|
programs or incur or be construed to have incurred any other | 178 |
|
liability, obligation, or debt as a result of any acts of the | 179 |
|
corporation. | 180 |
| (F) The nonprofit corporation designated under authority of | 181 |
|
division (D) of this section shall not be deemed to qualify by | 182 |
|
reason of the designation as a guarantor or an eligible lender | 183 |
|
under sections 435(d) and (j) of the "Higher Education Act of | 184 |
|
1965," 101 Stat. 347, 20 U.S.C.A. 1085(d) and (j), as amended. | 185 |
| Section 2. That existing sections 133.021 and 3351.07 of the | 186 |
|
Revised Code are hereby repealed. | 187 |
