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.