BILL ANALYSIS


                                                         S.B. 786
                                                        By: Ellis
                                                        Education
                                                         03-30-95
                                     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 council, 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 AUTHORITY

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.  New heading:  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.
           Effective date:  upon passage.