General Assembly: 82 (2008 Regular GA) - Chapter 1132 - Student loans, lenders, and funding


Published: 2008-05-05

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499 LAWS OF THE EIGHTY-SECOND G.A., 2008 SESSION CH. 1132

Sec. 2. Section 422.7, subsection 51,CodeSupplement 2007, is amended to read as follows: 51. Subtract, to the extent included, the amount of any Vietnam Conflict veterans bonus

provided pursuant to section 35A.8, subsection 5, and section 35A.8A.

Sec. 3. EFFECTIVEDATE. This Act, being deemed of immediate importance, takes effect upon enactment.

Sec. 4. RETROACTIVE APPLICABILITY. The section of this Act amending section 422.7, is retroactively applicable to January 1, 2008, and is applicable for tax years beginning on and after that date.

Approved May 5, 2008

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CH. 1132CH. 1132

CHAPTER 1132 STUDENT LOANS, LENDERS, AND FUNDING

H.F. 2690

AN ACT relating to student loans, including the protection of students and parents from cer- tain lenders and institutions of higher education with conflicts of interest, establishing a student lending education fund, establishing penalties, and providing for properly related matters, and including an effective date.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. Section 7C.12, subsection 2, Code 2007, is amendedby adding the followingnew paragraph: NEW PARAGRAPH. c. Shall report quarterly any reallocation of the amount of the state

ceiling by the governor’s designee in accordance with this chapter to the legislative govern- ment oversight committee and the auditor of state. The report shall contain, at a minimum, the amount of each reallocation, the date of each reallocation, thenameof the political subdivi- sion and a description of all bonds issued pursuant to a reallocation, a brief explanation of the reason for the reallocation, and such other information as may be required by the committee.

Sec. 2. NEW SECTION. 7C.13 QUALIFIED STUDENT LOAN BOND ISSUER — OPEN RECORDS AND MEETINGS — OVERSIGHT. 1. CONDITION OF ALLOCATION. As a condition of receiving the allocation of the state

ceiling as provided in section 7C.4A, subsection 3, the qualified student loan bond issuer shall comply with the provisions of this section. 2. ANNUALREPORTANDAUDIT. The qualified student loan bond issuer shall submit an

annual report to the governor, general assembly, and the auditor of state by January 15 setting forth its operations andactivities conducted andnewly implemented in theprevious fiscal year related to use of the allocation of the state ceiling in accordance with this chapter and the out- look for the future. The report shall describe how the operations and activities serve students and parents. The annual audit of the qualified student loan bond issuer shall be filed with the office of auditor. 3. OPEN MEETINGS FOR CONSIDERATION OF TAX-EXEMPT ISSUANCE. The delib-

erations ormeetings of the board of directors of the qualified student loan bond issuer that re- late to the issuance of bonds in accordancewith this chapter shall be conducted in accordance with chapter 21.

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4. PUBLICHEARING PRIOR TO ISSUANCEOF TAX-EXEMPT BONDS. Prior to the issu- ance of tax-exempt bonds in accordance with this chapter, the board of directors of the quali- fied student loan bond issuer shall hold a public meeting after reasonable notice. The board shall give notice of the time, date, and place of themeeting, and its tentative agenda, in aman- ner reasonably calculated to apprise the public of that information and provide interested par- ties with an opportunity to submit or present data, views, or arguments related to the issuance of the bonds. 5. OPENRECORDS FORCONSIDERATIONOF TAX-EXEMPTBONDS. All of the follow-

ing shall be subject to chapter 22: a. Minutes of the meetings conducted in accordance with subsection 3. b. The data and written views or arguments submitted in accordance with subsection 4. c. Letters seeking approval from the governor for issuance of tax-exempt bonds in accor-

dance with this chapter. d. Thepublished official statement of each tax-exempt bond issue authorized in accordance

with this chapter. 6. STATE SUPERINTENDENT OF BANKING — REVIEW. a. The state superintendent of banking shall not serve on the board of directors of the quali-

fied student loan bond issuer. b. The superintendent of banking shall annually review the qualified student loan bond is-

suer’s total assets, loan volume, and reserves. Additionally, the superintendent shall review the qualified student loan bond issuer’s procedures to inform students, prior to the submission of an application to the qualified student loan bond issuer for a loanmade by the qualified stu- dent loan bond issuer, about the advantages of loans available under Title IV of the federal Higher EducationAct of 1965, as amended, forwhich the studentsmay be eligible. The review shall verify that the qualified student loan bond issuer issued bonds in accordance with this chapter in conformance to the letter requesting approval of the governor as set forth in subsec- tion 5. The superintendent shall submit the review to the general assembly by January 15. 7. NO STATE OBLIGATION FOR BONDS. The obligations of the qualified student loan

bond issuer are not the obligations of the state or any political subdivision of the state within themeaning of any constitutional or statutory debt limitations, but are obligations of the quali- fied student loanbond issuerpayable solely andonly from thequalified student loanbond issu- er’s funds. The qualified student loan bond issuer shall not and cannot pledge the credit or taxing power of this state or any political subdivision of this state or make its debts payable out of any moneys except those of the qualified student loan bond issuer.

Sec. 3. NEW SECTION. 261E.1 DEFINITIONS. As used in this chapter, unless otherwise specified: 1. “Borrower” means a student attending a covered institution in this state, or a parent or

person in parental relation to such student, who obtains an educational loan from a lending institution to pay for or finance a student’s higher education expenses. 2. “Covered institution”means any educational institution that offers a postsecondary edu-

cational degree, certificate, or program of study and receives any Title IV funds under the fed- eral Higher EducationAct of 1965, as amended, or state funding or assistance. “Covered insti- tution” includes an authorized agent of the educational institution, including an alumni association, booster club, or other organization directly or indirectly associatedwith or autho- rized by the institution or an employee of the institution. 3. “Covered institution employee”means any employee, agent, contract employee, director,

officer, or trustee of a covered institution. 4. “Educational loan” means any loan that is made, insured, or guaranteed under Title IV

of the federal Higher Education Act of 1965, as amended, directly to a borrower solely for edu- cational purposes, or any private educational loan. 5. “Gift” means any gratuity, favor, discount, entertainment, hospitality, loan, or other item

having amonetary value ofmore than a deminimus amount. “Gift” includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment

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in advance, or reimbursement after the expensehas been incurred. “Gift” doesnot includeany of the following: a. Standard material, activities, or programs on issues related to a loan, default aversion,

default prevention, or financial literacy. b. Food or refreshments furnished to an officer, employee, or agent of an institution as an

integral part of a training sessionor conference that is designed to contribute to theprofession- al development of the officer, employee, or agent of the institution. c. Favorable terms, conditions, and borrower benefits on an educational loan provided to

a borrower employed by the covered institution if such terms, conditions, or benefits are com- parable to those provided to all students of the institution. d. Philanthropic contributions to a covered institution from a lender, guarantor, or servicer

of educational loans that are unrelated to educational loans provided, as applicable, that the contributions are disclosed pursuant to section 261E.4, subsection 6. e. State education grants, scholarships, or financial aid funds administered under chapter

261. f. Toll-free telephone numbers for use by covered institutions or other toll-free telephone

numbers open to the public to obtain information about loans available under Title IV of the federal Higher Education Act of 1965, as amended, or private educational loans, or free data transmission service for use by a covered institution to electronically submit applicant loan processing information or student status confirmation data for loans available under Title IV of the federal Higher Education Act of 1965. g. A reduced origination fee. h. A reduced interest rate. i. Payment of federal default fees. j. Purchase of a loan made by another lender at a premium. k. Other benefits to a borrower under a repayment incentive program that requires, at a

minimum, one or more scheduled payments to receive or retain the benefit or under a loan forgiveness program for public service or other targeted purposes approved by the attorney general, provided these benefits are not marketed to secure loan applications or loan guaran- tees. l. Items of nominal value to a covered institution, covered institution employee, covered in-

stitution-affiliated organization, or borrower that are offered as a form of generalizedmarket- ing or advertising, or to create goodwill. m. Items of value which are offered to a borrower or to a covered institution employee that

are also offered to the general public. n. Other services as identified and approved by the attorney general through a public an-

nouncement, such as a notice on the attorney general’s web site. 6. “Lender” or “lending institution”means a creditor as defined in section 103 of the federal

Truth in Lending Act, 15 U.S.C. § 1602. 7. “Postsecondary educational expenses” means any of the expenses that are included as

part of a student’s cost of attendance as defined in Title IV, part F, of the federal Higher Educa- tion Act of 1965, as amended. 8. “Preferred lender arrangement” means an arrangement or agreement between a lender

and a covered institution under which the lender provides or otherwise issues educational loans to borrowers and which relates to the covered institution recommending, promoting, or endorsing the educational loan product of the lender. “Preferred lender arrangement” does not include arrangements or agreements with respect to loans under part D or E of Title IV of the federal Higher Education Act of 1965, as amended. 9. “Preferred lender list”means a list of at least three recommendedor suggested, unaffiliat-

ed lending institutions that a covered institution makes available for use, in print or any other medium or form, by borrowers, prospective borrowers, or others. 10. “Private educational loan” means a private loan provided by a lender that is not made,

insured, or guaranteedunderTitle IV of the federalHigherEducationAct of 1965, as amended, and is issued by a lender solely for postsecondary educational expenses to a borrower, regard-

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less of whether the loan involves enrollment certification by the educational institution that the student for which the loan is made attends. “Private educational loan” does not include a private educational loan secured by adwelling or under anopen-end credit plan. For purpos- es of this subsection, “dwelling” and “open-end credit plan” have the meanings given such terms in section 103 of the federal Truth in Lending Act, 15 U.S.C. § 1602. 11. “Revenue sharing arrangement” means an arrangement between a covered institution

and a lender in which the lender provides or issues educational loans to persons attending the institution or on behalf of persons attending the institution and the covered institution recom- mends the lender or the educational loan products of the lender, in exchange for which the lender pays a fee or provides other material benefits, including revenue or profit sharing, to the institution or officers, employees, or agents of the institution. “Revenue sharing arrange- ment” does not include arrangements related solely to products which are not educational loans.

Sec. 4. NEW SECTION. 261E.2 CODE OF CONDUCT. 1. A covered institution shall do the following: a. Develop, in consultation with the college student aid commission, a code of conduct gov-

erning educational loanactivitieswithwhich the covered institution’s officers, employees, and agents shall comply. b. Publish the code of conduct developed in accordancewith paragraph “a” prominently on

its internet site. c. Administer and enforce the code of conduct developed in accordancewith paragraph “a”. 2. The college student aid commission shall provide to covered institutions assistance and

guidance relating to the development, administration, and monitoring of a code of conduct governing educational loan activities. 3. Except as provided in this section, the college student aid commission is not subject to

the duties, restrictions, prohibitions, and penalties of this chapter.

Sec. 5. NEW SECTION. 261E.3 PROHIBITIONS — REPORT. 1. GIFTBAN. Noofficer, employee, or agent of a covered institutionwho is employed in the

financial aid office of the institution, or who otherwise has direct responsibilities with respect to educational loans, shall solicit or accept any gift froma lender, guarantor, or servicer of edu- cational loans. The attorney general shall investigate any reported violation of this subsection and shall annually submit a report to the general assembly by January 15 identifying all sub- stantiated violations of this subsection, including the lenders and covered institutions involved in each such violation, for the preceding year. 2. GIFTSTOFAMILYMEMBERSOROTHERS. For purposes of this section, a gift to a fam-

ilymember of an officer, employee, or agent of a covered institution, or a gift to any other indi- vidual based on that individual’s relationshipwith the officer, employee, or agent, shall be con- sidered a gift to the officer, employee, or agent if either of the following applies: a. The gift is given with the knowledge and acquiescence of the officer, employee, or agent. b. The officer, employee, or agent has reason to believe the gift was given because of the

official position of the officer, employee, or agent. 3. CONTRACTINGARRANGEMENTS. An officer, employee, or agent who is employed in

the financial aid office of a covered institution, or who otherwise has direct responsibilities with respect to educational loans, shall not accept from any lender or affiliate of any lender any fee, payment, or other financial benefit including but not limited to the opportunity to pur- chase stock on other than free market terms, as compensation for any type of consulting ar- rangement or other contract to provide services to a lender or on behalf of a lender. 4. REVENUE SHARING ARRANGEMENTS. A covered institution shall not enter into any

revenue sharing arrangement with any lender. 5. PROHIBITION ON OFFERS OF FUNDS FOR PRIVATE LOANS. A covered institution

shall not request or accept from any lender any offer of funds, including any opportunity pool, to be used for private educational loans to borrowers in exchange for the covered institution

503 LAWS OF THE EIGHTY-SECOND G.A., 2008 SESSION CH. 1132

providing concessions or promises to the lender with respect to such institution providing the lenderwitha specifiednumberof loans, a specified loanvolume, or apreferred lender arrange- ment for any loanmade, insured, or guaranteed under Title IV of the federal Higher Education Act of 1965, as amended, and a lender shall not make any such offer. For purposes of this sub- section, “opportunity pool” means an educational loanmade by a private lender to a borrower that is in anymanner guaranteed by a covered institution, or that involves a payment, directly or indirectly, by such an institution of points, premiums, payments, additional interest, or oth- er financial support to the lender for the purpose of that lender extending credit to the borrow- er. 6. PARTICIPATION ON ADVISORY COUNCILS. An officer, employee, or agent who is

employed in the financial aid office of a covered institution, or who otherwise has direct re- sponsibilitieswith respect to educational loans, shall not serveonorotherwiseparticipatewith advisory councils of lenders or affiliates of lenders. Nothing in this subsection shall prohibit lenders from seeking advice from covered institutions or groups of covered institutions, in- cluding through telephonic or electronic means, or a meeting, in order to improve products and services for borrowers, provided there are no gifts or compensation including but not lim- ited to transportation, lodging, or related expenses, provided by lenders in connection with seeking such advice from the institutions. Nothing in this subsection shall prohibit an officer, employee, or agent of a covered institution from serving on the board of directors of a lender if required by law. 7. EXCEPTIONS. a. Nothing in this section shall be construed as prohibiting any of the following: (1) Anofficer, employee, or agent of a covered institutionwho is not employed in the institu-

tion’s financial aid office, or who does not otherwise have direct responsibilities with respect to educational loans, frompaid or unpaid service on aboard of directors of a lender, guarantor, or servicer of educational loans. (2) An officer, employee, or agent of a covered institution who is not employed in the finan-

cial aid office but who has direct responsibility with respect to educational loans as a result of a position held at the covered institution, frompaid or unpaid service on a board of directors of a lender, guarantor, or servicer of educational loans, provided that the covered institution has a written conflict of interest policy that clearly sets forth that such an officer, employee, or agent must be recused from participating in any decision of the board with respect to any transaction regarding educational loans. (3) An officer, employee, or agent of a lender, guarantor, or servicer of educational loans

from serving on a board of directors or serving as a trustee of a covered institution, provided that the covered institution has a written conflict of interest policy that clearly sets forth the procedures to be followed in instances where such a board member’s or trustee’s personal or business interestswith respect to educational loansmay be advanced by an action of the board of directors or trustees, including a provision that such a board member or trustee may not participate in any decision to approve any transaction where such conflicting interests may be advanced. b. Nothing in this chapter shall be construed to prohibit a covered institution from lowering

educational loan costs for borrowers, including payments made by the covered institution to lending institutions on behalf of borrowers.

Sec. 6. NEW SECTION. 261E.4 MISLEADING IDENTIFICATION — COVERED INSTI- TUTION — LENDING INSTITUTIONS’ EMPLOYEES. 1. A lending institution shall prohibit an employee or agent of the lending institution from

being identified to borrowers or prospective borrowers of a covered institution as an employ- ee, representative, or agent of the covered institution. 2. A covered institution shall prohibit an employee or agent of a lending institution frombe-

ing identified as an employee, representative, or agent of the covered institution. 3. An employee, representative, or agent of a lending institution included on a covered insti-

tution’s preferred lending list shall not staff a covered institution’s financial aid offices or call

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center and shall not prepare any of the covered institution’s materials related to educational loans. 4. A covered institution that has entered into a preferred lender arrangement with a lender

regarding private educational loans shall not agree to the lender’s use of the name, emblem, mascot, or logo of the institution, or other words, pictures, or symbols readily identified with the institution, in themarketing of private educational loans to the students attending the insti- tution in any way that implies that the institution endorses the private educational loans of- fered by the lender. However, the covered institutionmay allow the use of its name if it is part of the lending institution’s legal name. 5. Nothing in this section shall prohibit a covered institution from requesting or accepting

the following assistance from a lender related to any of the following: a. Providing educational counselingmaterials, financial literacymaterials, or debtmanage-

mentmaterials to borrowers, provided that suchmaterials disclose toborrowers the identifica- tion of any lender that assisted in preparing or providing such materials. b. Staffing services on a short-term, nonrecurring basis to assist the institution with finan-

cial aid-related functions during emergencies, including state-declared or federally declared natural disasters, federally declared national disasters, and other localized disasters and emergencies identified by the attorney general. 6. The attorney general shall adopt rules providing for the disclosure, for lenderswith a pre-

ferred lender arrangement, of philanthropic contributionsmadeas specified in section261E.1, subsection 5, paragraph “d”.

Sec. 7. NEWSECTION. 261E.5 LOANDISCLOSURE—LOANBUNDLING—PROHIBI- TIONS. 1. A covered institution that has entered into a preferred lender arrangement with a lender

regarding private educational loans shall inform the borrower or prospective borrower of all available state education financing options, and financing options under Title IV of the federal HigherEducationAct of 1965, as amended, including informationonany terms and conditions of available loans under such title that are more favorable to the borrower. 2. A covered institution shall prohibit the bundling of private educational loans in financial

aid packages, unless the borrower is ineligible for financing, is not eligible for any additional funding, or has exhausted the limits of loan eligibility, underTitle IV of the federalHigherEdu- cation Act of 1965, as amended, or has not filled out a free application for federal student aid, and the bundling of the private educational loans is clearly and conspicuously disclosed to the borrower prior to acceptance of the package by the borrower. The provisions of this subsec- tion shall not apply if the borrower does not desire or refuses to apply for a loan under Title IV of the federal Higher Education Act of 1965. 3. A lending institution included on a covered institution’s preferred lender list shall dis-

close, clearly and conspicuously, in any application for a private educational loan, all of the following: a. The rate of interest or the potential range of rates of interest applicable to the loan and

whether such rates are fixed or variable. b. Limitations, if any, on interest rate adjustments, both in terms of frequency and amount,

or lack thereof. c. Coborrower requirements, including changes in interest rates. d. Any fees associated with the loan. e. The repayment terms available on the loan. f. The opportunity for deferment or forbearance in repayment of the loan, includingwheth-

er the loan payments can be deferred if the borrower is in school. g. Any additional terms and conditions applied to the loan, including any benefits that are

contingent on the repayment behavior of the borrower. h. Information comparing federal and private educational loans. i. An example of the total cost of the educational loan over the life of the loan which shall

be calculated using the following:

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(1) A principal amount and the maximum rate of interest actually offered by the lender, or, if there is nomaximumrate provided under the termsof the loan agreement or applicable state or federal law, a statement to that effect. (2) Both with and without capitalization of interest, if that is an option for postponing in-

terest payments. j. The consequences for the borrower of defaulting on a loan, including any limitations on

the discharge of an educational loan in bankruptcy. k. Contact information for the lender. 4. Not later than January 31, 2009, the attorney general shall develop and make available

to lenders a model disclosure form that is based on the requirements of subsection 3. Use of the model disclosure form by a lending institution in a manner consistent with this chapter shall constitute compliance with subsection 3.

Sec. 8. NEW SECTION. 261E.6 STANDARDS FOR PREFERRED LENDER LISTS. 1. A covered institutionmaymake available a list of preferred lenders, in print or any other

mediumor form, for use by the covered institution’s students or their parents, provided the list meets the following conditions: a. The list is not used to deny or otherwise impede a borrower’s choice of lender. b. The list contains at least three lenders that are not affiliated and will make loans to bor-

rowers or students attending the school. For the purposes of this paragraph, a lender is affili- ated with another lender if any of the following applies: (1) The lenders are under the ownership or control of the same entity or individuals. (2) The lenders are wholly or partly owned subsidiaries of the same parent company. (3) The directors, trustees, or general partners, or individuals exercising similar functions,

of one of the lenders constitute amajority of the persons holding similar positionswith the oth- er lender. c. The list does not include lenders that have offered, or have offered in response to a solici-

tation by the covered institution, financial or other benefits to the covered institution in ex- change for inclusion on the list or any promise that a certain number of loan applications will be sent to the lender by the covered institution or its students. 2. A covered institution that provides or makes available a preferred lender list shall do the

following: a. Disclose to prospective borrowers, as part of the list, the method and criteria used by the

covered institution in selecting any lender that it recommends or suggests. b. Provide comparative information to prospective borrowers about interest rates andother

benefits offered by the lenders. c. Include a prominent statement in any information related to its preferred lender list ad-

vising prospective borrowers that the borrowers are not required to use one of the covered in- stitution’s recommended or suggested lenders. d. For first-time borrowers, refrain from assigning, through award packaging or other

methods, a borrower’s loan to a particular lender. e. Not cause unnecessary certification delays for borrowers who use a lender that is not in-

cluded on the covered institution’s preferred lender list. f. Update the preferred lender list and any information accompanying the list at least annu-

ally. 3. If the servicer of a private educational loan is changedbya lending institution, the lending

institution shall disclose the change to the affected borrower. 4. A lending institution shall not be placed on a covered institution’s preferred lender list

or in favored placement on a covered institution’s preferred lender list for a particular type of loan, in exchange for benefits provided to the covered institution or to the covered institution’s students in connection with a different type of loan.

Sec. 9. NEW SECTION. 261E.7 DISCLOSURE REQUIREMENTS. Except for educational loans made, insured, or guaranteed by the federal government, a

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lending institution included on a covered institution’s preferred lender list shall, upon receiv- ing a request from a borrower, covered institution, or government entity, disclose to the re- quester in reasonable detail and form, the terms of private educational loansmade to borrow- ers by that lending institution and the rates of interest charged to borrowers for private educational loans in the year preceding the disclosures.

Sec. 10. NEW SECTION. 261E.8 PENALTIES. 1. If after providing notice and an opportunity for a hearing the attorney general determines

that a covered institution or lending institutionhas violated a provision of this chapter, the cov- ered institution or lending institution may be liable for a civil penalty of up to five thousand dollars per violation. In taking action against a covered institution or lending institution, con- sideration shall be given to the nature and severity of a violation of this chapter. 2. If after providing notice and an opportunity for a hearing the attorney general determines

that a covered institution employeehas violated aprovision of this chapter, the covered institu- tion employee may be liable for a civil penalty of up to two thousand five hundred dollars per violation. In taking action against a covered institution employee, consideration shall be given to the nature and severity of a violation of this chapter. 3. If after providing notice and an opportunity for a hearing the attorney general determines

that a lending institution has violated a provision of this chapter, such lending institution shall not be placed or remain on any covered institution’s preferred lender list unless notice of such violation is provided to all potential borrowers of the covered institution. However, consider- ation shall be given to the nature and severity of a violation of this chapter in determining whether and for how long to ban a lender from a preferred lender list. 4. Nothing in this section shall prohibit the attorney general from reaching a settlement

agreement with a covered institution, covered institution employee, or lending institution in order to effectuate the purposes of this section. Provided, however, if such settlement agree- ment is reachedwith a covered institutionor lending institution, the attorneygeneral shall pro- vide notice of such action to the borrowers in a form and manner prescribed by the attorney general. 5. The attorney general shall deposit the funds generated pursuant to this section into the

student lending education fund, created in section 261E.10. 6. Each individual incident of a violation of this chapter shall be considered a separate viola-

tion for the purpose of imposing civil penalties.

Sec. 11. NEW SECTION. 261E.9 RULES — INVESTIGATION AUTHORITY — EN- FORCEMENT. 1. The attorney general shall administer this chapter and promulgate rules, pursuant to

chapter 17A, necessary for the implementation of this chapter. Unless otherwise provided, all actions by the attorney general pursuant to this chapter shall be subject to the provisions of chapter 17A. 2. The attorney general is authorized to conduct an investigation to determine whether to

initiate proceedings pursuant to this chapter to the same extent as the investigation authority granted the attorney general under section 714.16.

Sec. 12. NEW SECTION. 261E.10 STUDENT LENDING EDUCATION FUND. 1. There is established in the state treasury a student lending education fund. 2. The fund shall consist of all revenues generated pursuant to section 261E.8 and all other

moneys credited or transferred to the fund from any other fund or source pursuant to law. 3. Moneys in the fund shall be made available to the attorney general for the purpose of en-

forcing this chapter.

Sec. 13. NEW SECTION. 261E.11 EFFECT ON OTHER LAWS OR REGULATIONS. This chapter shall not be interpreted to affect the liability of any person, covered institution,

or lending institution under any other state statute or rule.

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Sec. 14. STUDENT LOAN SECONDARY MARKET INVESTIGATION REPORT. 1. The attorney general shall submit the findings and recommendations resulting from the

investigation of the student loan secondary market and the Iowa student loan liquidity corpo- ration to the general assembly by January 15, 2009. 2. The attorney general shall present the findings and recommendations resulting from the

investigation of the student loan secondary market and the Iowa student loan liquidity corpo- ration to the legislative government oversight committee at the committee’s October 2008 meeting.

Sec. 15. EFFECTIVE DATE. The sections of this Act enacting sections 261E.3, 261E.5, 261E.6, and 261E.7, take effect January 31, 2009.

Approved May 5, 2008

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CH. 1133CH. 1133

CHAPTER 1133 ENERGY EFFICIENCY STANDARDS,

PRACTICES, AND REPORTING

S.F. 2386

ANACT relating to energy efficiency by establishing a commission on energy efficiency stan- dards and practices, providing for the reporting of energy efficiency results and savings by gas and electric public utilities, specifying procedures for assessing potential energy and capacity savings and developing energy efficiency goals by gas and electric utilities not subject to rate regulation, providing for the establishment or participation in a pro- gram to track, record, or verify the trading of credits for electricity generated from speci- fied sources, andproviding for the establishment of an interimstudycommittee to conduct an examination of energy efficiency plans and programswith an emphasis on the demand or customer perspective, and providing an effective date.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. NEW SECTION. 103A.27 COMMISSION ON ENERGY EFFICIENCY STAN- DARDS AND PRACTICES. 1. A commission on energy efficiency standards and practices is established within the de-

partment of public safety. The commission shall be composed of the following members: a. The state building code commissioner, or the commissioner’s designee. b. The director of the office of energy independence, or the director’s designee. c. A professional engineer licensed pursuant to chapter 542B. d. An architect registered pursuant to chapter 544A. e. Two individuals recognized in the construction industry as possessing expertise and ex-

perience in the construction or renovation of energy-efficient residential and commercial buildings. f. A member of a local planning and zoning commission or county board of supervisors. g. Three individuals representing gas and electric public utilities within this state, com-

prised of one individual representing rural electric cooperatives, one individual representing municipal utilities, and one individual representing investor-owned utilities.