The bill replaces MELMAC's president as a member of the MELA board with a representative from technical colleges appointed by the Governor. The bill provides that the Treasurer of State will no longer be a voting member of the MELA board. It requires MELA to use competitive bidding for administrative and clerical services. It adds language clarifying that MELA has authority to issue supplemental education loans only. It requires MELA to provide public notice of its activities and demonstrate that its use of bond proceeds is consistent with a public purpose. The bill adds a sunset of March 15, 2001 to the statutory provision allowing MELA to delegate its powers and duties to a nonprofit corporation and asks the MELA board to recommend whether the statutory provision should be retained. The bill also requires that the MELA board study the issue of whether to move the functions of MELA to FAME and report back to the First Regular Session of the 120th Legislature.

The bill removes language authorizing an allocation of the state ceiling to FAME for the Loans to Lenders Pilot Program.

The bill changes the timing of required disclosures to a time before any loans using bond cap money are issued.

The bill clarifies that the provisions in the bill are not intended to impair any outstanding bond obligations or contracts of MELMAC or MELA or adversely impact the exclusion from gross income of interest on outstanding tax-exempt bonds previously issued by MELMAC or MELA.

The bill also includes a fiscal note.