By McCall                                               H.B. No. 51
       74R94(1) JSA
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the reimbursement of the value of certain athletic
    1-3  scholarships.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 56, Education Code, is amended by adding
    1-6  Subchapter B to read as follows:
    1-7                 SUBCHAPTER B.  ATHLETIC SCHOLARSHIPS
    1-8        Sec. 56.011.  REIMBURSEMENT OF ATHLETIC SCHOLARSHIP BY
    1-9  PROFESSIONAL ATHLETE.  (a)  In this section:
   1-10              (1)  "Athletic scholarship" means an agreement by an
   1-11  institution of higher education to exempt a student from fees for
   1-12  tuition, housing, food, or other goods or services or to provide to
   1-13  a student without charge or at a reduced charge goods or services
   1-14  for which a fee is ordinarily charged, if the student participates
   1-15  or agrees to participate as an athlete in athletic activities of
   1-16  the institution.
   1-17              (2)  "Public junior college" has the meaning assigned
   1-18  by Section 61.003.
   1-19              (3)  "Public senior college or university" has the
   1-20  meaning assigned by Section 61.003.
   1-21        (b)  An athletic scholarship offered or awarded by a public
   1-22  junior college or public senior college or university must include
   1-23  a provision requiring the student, under the circumstances
   1-24  described by Subsection (c), to reimburse the college or university
    2-1  for the goods and services received under the scholarship.  For
    2-2  purposes of this section, the amount that must be paid as
    2-3  reimbursement is the total amount of fees and other charges that
    2-4  the student would have paid without the scholarship for the goods
    2-5  and services received, less any amount the student paid for those
    2-6  goods and services.
    2-7        (c)  A scholarship covered by this section must require the
    2-8  person receiving the scholarship to reimburse the college or
    2-9  university under this section if, before the third anniversary of
   2-10  the last day of the last term or semester to which the scholarship
   2-11  applies, the person receives or signs one or more contracts to
   2-12  receive $250,000 or more in compensation, including any bonuses,
   2-13  for services or performance as a professional athlete in the same
   2-14  sport or other athletic activity in which the person participated
   2-15  or agreed to participate as a student under the scholarship.  The
   2-16  amount required to be reimbursed is limited to the amount of the
   2-17  compensation that the person actually receives for service or
   2-18  performance as a professional athlete in that sport or other
   2-19  athletic activity in excess of $250,000 before the 13th anniversary
   2-20  of the last date of the last term or semester to which the
   2-21  scholarship applies.  No interest is due on the amount required to
   2-22  be reimbursed.
   2-23        (d)  The reimbursement must be paid in equal annual amounts
   2-24  during the 10 years beginning on the third anniversary of the last
   2-25  day of the last term or semester to which the scholarship applies,
   2-26  unless the person required to make the reimbursement elects a
   2-27  shorter period. The person may elect to make monthly payments of
    3-1  the amount due each year.  The person and the college or university
    3-2  may agree to any other terms for payment of the reimbursement.
    3-3        (e)  The governing board of the college or university may
    3-4  waive payment of all or part of the amount required to be
    3-5  reimbursed because of financial or other hardship on the part of
    3-6  the person required to make the reimbursement.
    3-7        (f)  A delinquent amount owed under this section may be
    3-8  collected in the same manner as any other delinquent amount owed to
    3-9  the college or university by a student or former student of the
   3-10  college or university.
   3-11        (g)  This section does not apply to an athletic scholarship
   3-12  accepted by a person before January 1, 1996.
   3-13        SECTION 2.  The importance of this legislation and the
   3-14  crowded condition of the calendars in both houses create an
   3-15  emergency and an imperative public necessity that the
   3-16  constitutional rule requiring bills to be read on three several
   3-17  days in each house be suspended, and this rule is hereby suspended.