HBA-KMH H.B. 1114 76(R)    BILL ANALYSIS

C.S.H.B. 1114
By: Christian
Higher Education
2/26/1999
Committee Report (Substituted)

BACKGROUND AND PURPOSE

Currently, state law prohibits state-owned or state-leased retail stores
from extending the credit of the state to the obligor (customer).  However,
the law does allow for the extension of credit against funds yet to be
received which are held for a student by an institution of higher
education.  In some cases, institutions are using this provision to
withhold funds from students by not issuing student loan funds until a date
after school has commenced.  Instead, some institutions issue a student a
voucher, which can be used only at businesses operated by or for the
institution.  Since the voucher can be redeemed only at business operated
by or for the institution, other providers of instructional materials
(providers)  are limited in their ability to provide materials for the
students.  Additionally, some institutions have failed to provide
non-institutional businesses with timely and accurate information relating
to the provision of materials or opportunities to reach students regarding
the availability of materials 

C.S.H.B. 1114 requires institutions of higher learning to provide an equal
opportunity to the extension of credit, use of a student charge or delayed
payment for instructional materials to all providers.  This bill also
requires the institution to provide information related to instructional
materials and opportunities to reach the students regarding available
material equally to all providers. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter Z, Chapter 51, Education Code, by adding
Section 51.960, as follows: 

Sec.  51.960.  INFORMATION RELATING TO TEXTBOOKS.  Defines "institution of
higher education," "instruction materials," and "on-campus bookstore."
Requires each institution of higher education (institution) before the
start of each semester to prepare a list of each course to be offered at
the institution including the name of the instructor, a description of the
instructional materials required or recommended for the students, and the
anticipated enrollment in the course.  Requires an institution to furnish
the above described list, and any information related to instructional
materials provided by the institution to the on-campus bookstore
(bookstore), on request of any person not later than one business day after
the date of the request.  Sets forth that an institution must provide to
all providers of instructional material (providers) the same opportunity as
a bookstore to participate in any programs related to reaching students, or
the sale or repurchase of the materials.  Prohibits an institution from
charging a provider an amount greater than that charged to a bookstore for
participation in the above described programs.  Requires an institution to
give all providers equal opportunity to the extension of credit, or the use
of a student charge or delayed payment for instructional materials. 

SECTION 2.  Requires each institution of higher education to designate an
officer or employee of the institution to ensure the institution's
compliance with Section 51.960, Education Code, as added by this Act, and
provide notice to each known provider doing regular business with students
of the institution of information relating to the method that the
institution will use to comply with Section 51.960, Education Code, as
added by this Act. 

 SECTION 3.  Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1.  Requires an institution which has been requested to provide the
list prepared under Subsection (b) to provide it not later than one
business day after the date of the request. 

SECTION 2.  Makes no changes.

SECTION 3.  Makes no changes.