By:  Parker, Lucio                                     S.B. No. 336
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to prohibiting certain extensions of credit by retail
    1-2  stores owned or operated by public institutions of higher
    1-3  education.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter Z, Chapter 51, Education Code, is
    1-6  amended by adding Section 51.929 to read as follows:
    1-7        Sec. 51.929.  PROHIBITION AGAINST CERTAIN EXTENSIONS OF
    1-8  CREDIT BY CERTAIN RETAIL STORES.  (a)  Except as provided by
    1-9  Subsection (b) of this section, a retail store that is owned or
   1-10  operated by an institution of higher education may not enter into a
   1-11  transaction for the sale or lease of goods or services in which the
   1-12  institution extends the credit of the state to the obligor.
   1-13        (b)  This section does not apply to an extension of credit to
   1-14  a student for the purchase of books or other educational supplies
   1-15  if the credit may be offset against undistributed grant or loan
   1-16  funds that are held by the institution for the student or that the
   1-17  institution is entitled to receive on behalf of the student.  The
   1-18  institution may not withhold grant or loan funds to require the
   1-19  student to purchase books or educational supplies from a store that
   1-20  it owns or operates.
   1-21        (c)  In this section, "institution of higher education" has
   1-22  the meaning assigned by Section 61.003 of this code.
   1-23        SECTION 2.  This Act takes effect September 1, 1993, and
   1-24  applies only to sales or leases that are made on or after that
    2-1  date.
    2-2        SECTION 3.  The importance of this legislation and the
    2-3  crowded condition of the calendars in both houses create an
    2-4  emergency   and   an   imperative   public   necessity   that   the
    2-5  constitutional rule requiring bills to be read on three several
    2-6  days in each house be suspended, and this rule is hereby suspended.