73R4976 SOS-F
          By Stiles                                              H.B. No. 718
          Substitute the following for H.B. No. 718:
          By Goolsby                                         C.S.H.B. No. 718
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to prohibiting certain extensions of credit by retail
    1-3  stores owned or operated by public institutions of higher
    1-4  education.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter Z, Chapter 51, Education Code, is
    1-7  amended by adding Section 51.929 to read as follows:
    1-8        Sec. 51.929.  PROHIBITION AGAINST CERTAIN EXTENSIONS OF
    1-9  CREDIT BY CERTAIN RETAIL STORES.  (a)  Except as provided by
   1-10  Subsection (b) of this section, a retail store that is owned or
   1-11  operated by an institution of higher education may not enter into a
   1-12  transaction for the sale or lease of goods or services in which the
   1-13  institution extends credit of the state to the obligor.
   1-14        (b)  This section does not apply to an extension of credit to
   1-15  a student for the purchase of books or other educational supplies
   1-16  if the credit may be offset against undistributed grant or loan
   1-17  funds held by the institution for a student or that the institution
   1-18  is entitled to receive on behalf of a student.  The institution may
   1-19  not withhold grant or loan funds to require the student to purchase
   1-20  books or educational supplies from a store that it owns or
   1-21  operates.
   1-22        (c)  In this section, "institution of higher education" has
   1-23  the meaning assigned by Section 61.003 of this code.
   1-24        SECTION 2.  This Act takes effect September 1, 1993, and
    2-1  applies only to sales or leases that are made on or after that
    2-2  date.
    2-3        SECTION 3.  The importance of this legislation and the
    2-4  crowded condition of the calendars in both houses create an
    2-5  emergency   and   an   imperative   public   necessity   that   the
    2-6  constitutional rule requiring bills to be read on three several
    2-7  days in each house be suspended, and this rule is hereby suspended.