BILL NUMBER: SB 91	CHAPTERED  08/24/07

	CHAPTER  184
	FILED WITH SECRETARY OF STATE  AUGUST 24, 2007
	APPROVED BY GOVERNOR  AUGUST 24, 2007
	PASSED THE SENATE  JULY 20, 2007
	PASSED THE ASSEMBLY  JULY 20, 2007
	AMENDED IN ASSEMBLY  JULY 20, 2007
	AMENDED IN ASSEMBLY  JULY 16, 2007

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 17, 2007

   An act to repeal Article 2.5 (commencing with Section 69522) and
Article 13 (commencing with Section 69760) of Chapter 2 of Part 42 of
Division 5 of Title 3 of the Education Code, relating to student
financial aid.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 91, Committee on Budget and Fiscal Review. Student financial
aid.
   Existing law establishes the Student Aid Commission as the primary
state agency for the administration of state-authorized student
financial aid programs available to students attending all segments
of postsecondary education. Existing law authorizes the commission to
carry out prescribed tasks, and authorizes the commission to
establish an auxiliary organization for the purpose of providing
operational and administrative services for the commission's
participation in the Federal Family Education Loan Program. Under
existing law, the operations of the auxiliary organization are
required to be conducted in conformity with an operating agreement
approved, for a period not to exceed 5 years, by the commission.
   This bill would repeal provisions of existing law relating to the
establishment and operation of the auxiliary organization and the
state's participation in the Federal Family Education Loan Program if
and when the Director of Finance notifies the Secretary of State and
the Chairperson of the Joint Legislative Budget Committee that
specified occurrences, related to either a sale of the state student
loan guarantee program assets to a transferee guaranty agency, as
defined, or a transaction with a transferee guarantee program
operator, have been consummated and 30 days elapse after the receipt
of the notice.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 2.5 (commencing with Section 69522) of Chapter
2 of Part 42 of Division 5 of Title 3 of the Education Code is
repealed.
  SEC. 2.  Article 13 (commencing with Section 69760) of Chapter 2 of
Part 42 of Division 5 of Title 3 of the Education Code is repealed.
  SEC. 3.  Section 1 shall not become operative unless and until both
of the following occur:
   (a) Pursuant to paragraph (2) or (3) of subdivision (b) of Section
69521.5 of the Education Code, the Director of Finance notifies the
Secretary of State and the Chairperson of the Joint Legislative
Budget Committee that either of the following has occurred:
   (1) A sale of the student loan guarantee program assets to a
transferee guaranty agency within the meaning of paragraph (2) of
subdivision (b) of Section 69521.5 of the Education Code has been
consummated.
   (2) A transaction with a transferee guarantee program operator
within the meaning of paragraph (3) of subdivision (b) of Section
69521.5 of the Education Code has been consummated.
   (b) Thirty days elapse after the receipt of the notice referred to
in subdivision (a).
  SEC. 4.  Section 2 shall not become operative unless and until both
of the following occur:
   (a) Pursuant to paragraph (2) of subdivision (b) of Section
69521.5 of the Education Code, the Director of Finance notifies the
Secretary of State and the Chairperson of the Joint Legislative
Budget Committee that a sale of the student loan guarantee program
assets to a transferee guaranty agency within the meaning of that
paragraph has been consummated.
   (b) Thirty days elapse after the receipt of the notice referred to
in subdivision (a).