Revision: July 9, 2024, 1:49 p.m.
CHAPTER 150
SB 334 - FINAL VERSION
2024 SESSION
24-2845
08/02
SENATE BILL 334
SPONSORS: Sen. Innis, Dist 7; Sen. Lang, Dist 2; Rep. Potucek, Rock. 13
COMMITTEE: Commerce
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ANALYSIS
This bill includes the business finance authority of the state of New Hampshire as an entity authorized to issue bonds and other obligations to finance student loans.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2845
08/02
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
Be it Enacted by the Senate and House of Representatives in General Court convened:
150:1 Loan Corporations; Declaration of Policy. Amend RSA 195-E:1 to read as follows:
195-E:1 Declaration of Policy. It is declared to be the policy of this state that for the benefit of the people of the state, the increase of their commerce, welfare, and prosperity and the improvement of their health and living conditions, it is essential that students attending higher educational institutions be given the fullest opportunity to learn and develop their intellectual and mental capacities. It is recognized that the financial costs to obtain an education beyond the high school level are often burdensome or prohibitive, and it is essential that qualified students or their parents be provided with low cost financial assistance in order that the students may attend such schools and to reduce the total amount of loan payments following graduation. In order to achieve this policy, it is essential that state residents be provided with an appropriate source of financing their postsecondary educations and that educational institutions wherever situated be provided with appropriate additional means to assist qualified students or their parents financially so that the students might achieve the required levels of learning and development of their intellectual and mental capacities. In order to assure the continued viability of existing loan programs whereby educational loans are made available to qualified students or their parents, it is necessary and desirable to provide an efficient, stable secondary market to which such loans may be sold, transferred, or pledged in exchange for funds with which the original lender will be enabled to continue or increase participation in such loan programs. Therefore, the general court has conferred certain powers on educational institutions, on loan corporations, on the New Hampshire higher education assistance foundation, on the New Hampshire business finance authority and on the New Hampshire health and education facilities authority to assure the successful origination, distribution and collection of loans so as to accomplish the purposes of this chapter, all to the public benefit and good. It is further declared that the exercise by the educational institutions, the loan corporations, the New Hampshire business finance authority, the New Hampshire higher education assistance foundation and the New Hampshire health and education facilities authority of the powers conferred under this chapter will constitute the performance of an essential governmental function.
150:2 New Paragraph; Loan Corporations; Definition. Amend RSA 195-E:2 by inserting after paragraph VII the following new paragraph:
VIII. "Business finance authority" means the New Hampshire business finance authority established pursuant to RSA 162-I.
150:3 Loan Corporations; Issuance of Bonds. Amend RSA 195-E:10 to read as follows:
195-E:10 Issuance of Bonds.
I. The authority is empowered to issue bonds and other obligations for the purposes specified in this chapter in accordance with this section, and the business finance authority is empowered to issue bonds and other obligations for the purposes specified in this chapter and in accordance with this section.
II. [Repealed.]
III. No bonds or other obligations shall be issued except after the governor and council, or their designee, after hearing, shall have found that:
(a) The origination or acquisition of low cost loans by a loan corporation, a qualified educational institution or the foundation to qualified students or their parents will assist the students in attending their educational institutions and will lower the cost to the students of financing their educations;
(b) Adequate provision has been or will be made for the payment of the principal of, or interest on, any obligations issued by the authority to finance such loan programs.
(c) Adequate provision has been made for the payment of the reasonable expenses of administration of the loan programs as are necessitated by the programs.
(d) The proposed procedures for redistribution of the bond proceeds, collection of student payments, interest charges and any other matters concerning the administration of the loan program are in conformance with law.
IV. The authority and the business finance authority, to further [its] their respective student loan programs, each shall have the power to:
(a) Determine the nature of student loan programs for eligible students or their parents for which the authority or the business finance authority, as applicable, will issue bonds;
(b) Enter into contracts for any or all student loan program purposes;
(c) Enter into contracts for the administration or servicing of student loans;
(d) Designate the foundation, a particular qualified educational institution or institutions, or loan corporation or corporations, as its agent for accomplishing its purposes;
(e) Make loans with proceeds of the sale of its bonds to the foundation, any qualified educational institution, or any loan corporation in accordance with an agreement between the authority or the business finance authority, as applicable, and such other party or parties; provided that the proceeds of any loan made to the foundation shall be used by the foundation to purchase, originate or make loans to any eligible student or to the parents of any eligible student, but the proceeds of any loan made to a qualified educational institution or to a loan corporation shall be used by such qualified educational institution or such loan corporation to purchase, originate or make loans only to eligible students attending qualified educational institutions, or to the parents of these students;
(f) Receive and accept from any public agency or any other source loans, grants, guarantees or insurance with respect to student loans and the student loan programs;
(g) Establish guidelines governing the actions of the foundation, loan corporations, and qualified educational institutions in participating in the authority's or the business finance authority's student loan program, as applicable; and
(h) Exercise all powers incidental and necessary for the performance of the powers listed in this paragraph.
150:4 Loan Corporations; Rights of the Authority, Foundation, Qualified Education Institution and Loan Corporations. Amend RSA 195-E:11 to read as follows:
195-E:11 Rights of the Authority, Business Finance Authority, Foundation, Qualified Educational Institution and Loan Corporations.
I. In issuing bonds for a student loan program, the authority, the foundation, any qualified educational institution and any loan corporations created under this chapter shall have all the power and authority and be subject to all of the rights, liabilities and responsibilities as provided in RSA 195-D, insofar as these provisions do not conflict with this chapter. Nothing in this chapter shall otherwise limit any other bond issuance or other powers of the authority set forth in RSA 195-D.
II. In issuing bonds for a student loan program, the business finance authority shall have all the power and authority and be subject to all of the rights, liabilities and responsibilities as provided in RSA 162-I, insofar as these provisions do not conflict with this chapter. Nothing in this chapter shall otherwise limit any other bond issuance or other powers of the business finance authority set forth in RSA 162-I.
150:5 Loan Corporations; Credit of State Not Pledged. Amend RSA 195-E:12, II to read as follows:
II. These revenue bonds are payable solely from the revenues or other funds derived from student loans, either directly or indirectly provided by this chapter for their payment. All such revenue bonds shall contain on the face of the bond a statement to the effect that neither the state nor the authority nor the business finance authority, as applicable, is obligated to pay the bond or the interest on the bond except from revenues or other funds derived from student loans, either directly or indirectly provided by this chapter, and that neither the faith and credit nor the taxing power of the state or of any municipality or political subdivision of the state is pledged to the payment of the principal of or the interest on the bonds. The issuance of revenue bonds under this chapter shall not directly or indirectly or contingently obligate the state or any municipality or political subdivision of the state to levy or to pledge any form of taxation whatever for the bonds or to make any appropriation for their payment.
150:6 Loan Corporations; Source of Payment and Expenses. Amend RSA 195-E:13 to read as follows:
195-E:13 Source of Payment of Expenses. All reasonable expenses incurred in carrying out the provisions of this chapter shall be payable by the foundation, the respective qualified educational institutions, or the respective loan corporations, as the case may be, and no liability or obligation shall be incurred by the authority or the business finance authority, as applicable, or any other state agency. Provided however, that the authority and or the business finance authority, may waive fees and incur issuance expenses on behalf of the foundation if approved by board of directors of the business finance authority, or authority, as applicable.
150:7 Exemption from Taxation. Amend RSA 195-E:15 to read as follows:
195-E:15 Exemption From Taxation. The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of the state, for the increase of their commerce, welfare and prosperity, and for the improvement of their health and living conditions, and will constitute the performance of an essential governmental function. Neither the authority nor the business finance authority, as applicable, nor the loan corporations shall be required to pay any taxes or assessment upon the activities of the authority or the business finance authority, as applicable, or the loan corporations or their agents in the administration and operation of loan programs pursuant to this chapter.
150:8 Effective Date. This act shall take effect 60 days after its passage.
Approved: July 03, 2024
Effective Date: September 01, 2024