BILL ANALYSIS



C.S.H.B. 2812
By: Ogden
03-23-95
Committee Report (Substituted)


BACKGROUND

Recently, the State auditor reported large deficits in the athletic
program funds of several universities.  They also reported that
student fees were being used to augment the athletic program funds. 



PURPOSE

C.S.H.B. 2812 prohibits the use of student fees to support
intercollegiate athletics unless the governing board of a
university informs students of the amount that will be used for
that purpose; and if the fee is subject to approval at an election
of the student body, the ballot expressly states the amount of the
fee.  The fee may not exceed $75 for a regular semester or $25 for
a summer semester.


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 54 A, Education Code, by adding Section
54.009 to read as follows:

     Sec.  54.009.  USE OF FEES TO SUPPORT INTERCOLLEGIATE
ATHLETICS.  (a)  The governing board of an institution of higher
education may not use revenue derived from a student fee to support
intercollegiate athletics unless the (1) institution informs
students of the amount that will be used to support intercollegiate
athletics; and (2) if the fee is subject to approval at an election
of the student body, the ballot expressly states the amount of the
fee that will be used for intercollegiate athletics.

(b)  The total amount of the student fees may not exceed $75 for a
semester or 12-week summer term or $25 for a summer term shorter
than 12 weeks.

(c)  This section applies to all student fees.

(d)  Defines "student fee"; "governing board" and "institutions of
higher education".

SECTION 2.  Effective date:  September 1, 1995.  Applies beginning
with fees charged for the spring semester of 1996.

SECTION 3. Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill in Section 1, Section 54.009 (a) indicated that
the governing board could not use revenue derived from student fees
to support intercollegiate athletics unless expressly stated by
law.  The committee substitute requires that the institution inform
the students of the amount that will be used to support
intercollegiate athletics.  The substitute also deletes Subsection
(a)(1) of the original bill which provides if the fee is imposed by
action of the governing board, the governing board would indicate
that the fee may be used for intercollegiate athletics.

The original bill in Subsection (b) set the fee amount at $50 for
a semester and the substitute increased the cap at $75.

The substitute in Subsection (c) allows an exception that a fee
approved at an election of the student body before the date this
law is effective is subject to (a)(2) if the amount is increased.


SUMMARY OF COMMITTEE ACTION

H.B. 2812 was considered by the committee in a public hearing on
March 28, 1995.

The following person testified in favor of the bill:
Mr. Chuck Hempstead.

The bill was left pending.

H.B. 2812 was considered by the committee in a public hearing on
April 4, 1995.

The committee considered a complete substitute for the bill.  The
substitute was adopted without objection by a non-record vote.  

The bill was left pending.

H.B. 2812, as substituted was considered by the committee in a
public hearing on April 11, 1995. 
The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed, by a record vote of
6 ayes, 0 nays, 1 pnv, 2 absent.