BILL ANALYSIS S.B. 786 By: Ellis (Coleman) April 21, 1995 Committee Report (Unamended) BACKGROUND The University Center fee at the University of Houston was authorized in 1987 and implemented in 1988. It was established to generate operating income and to address the problems of structural neglect brought on by years of deferred maintenance at the center. The fee was capped at $15 per long semester and $7.50 for summer sessions. PURPOSE As proposed, S.B. 786 increases the University Center fees at the University of Houston and places fees under the control of the student fee advisory committee, which is required to submit to the president of the university a complete and itemized budget, to be accompanied by a full and complete report of all activities and expenditures. RULEMAKING It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 54.526, Education Code, as follows: Sec. 54.526. STUDENT FEES FOR UNIVERSITY CENTERS; THE UNIVERSITY OF HOUSTON. (a) Authorizes the board of regents (board) of the University of Houston System to levy a student union fee (fee), not to exceed $35, rather than $15, for each regular semester and not to exceed $17.50, rather than $7.50, per student for each term of the summer session. Provides that the sole purpose of the fee is financing, constructing, operating, maintaining, and improving a Student Union Building for the University of Houston. (b) Requires such fees to be placed under the control of and subject to the order of the student fees advisory committee (committee) established under Section 54.5062, rather than the Student Service Fee Planning and Allocation Committee. Requires the committee to annually submit to the president of the University of Houston, rather than the board, a complete and itemized budget to be accompanied by a full and complete report of all activities conducted during the past year and all expenditures made incident thereto. Requires an increase in the fee of more than 10 percent from one academic year to the next to be approved by a majority vote of the students voting in an election called for that purpose or by a majority vote of the student government. Deletes text authorizing the board of regents to only levy a fee or increase an existing fee after a student referendum has been called on the levying or increase in such a fee, and the majority of the students voting in the referendum approve. SECTION 2. Provides that this Act applies beginning with fees due for the fall semester of 1995. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION S.B. 786 was considered by the committee in a formal meeting on April 20, 1995. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed, by a record vote of 5 ayes, 0 nays, 0 pnv, 4 absent.