1-1                                   AN ACT

 1-2     relating to student debit card programs operated by public

 1-3     institutions of higher education.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 51.940, Education Code, as added by

 1-6     Chapter 316, Acts of the 74th Legislature, Regular Session, 1995,

 1-7     is amended to read as follows:

 1-8           Sec. 51.940.  STUDENT DEBIT CARDS.  (a)  [This section

 1-9     applies only to:]

1-10                 [(1)  an institution that is a component of The Texas A

1-11     & M University System; or]

1-12                 [(2)  an institution that is a component of the Texas

1-13     State University System.]

1-14           [(b)]  The governing board of an institution of higher

1-15     education [to which this section applies] may establish a program

1-16     to provide students enrolled at the institution with a debit card.

1-17           (b) [(c)]  A student issued a debit card under the program

1-18     may use the card to purchase merchandise or service available

1-19     through the institution or through a person authorized to sell

1-20     merchandise or service at the institution, as determined by the

1-21     governing board.

1-22           (c) [(d)]  The program must allow a person who is in business

1-23     to sell merchandise or service of the same kind as the merchandise

1-24     or service that a student may purchase under Subsection (b) [(c)]

 2-1     to participate in the program under the same or equivalent terms

 2-2     applicable to a person authorized to sell merchandise under

 2-3     Subsection (b) [(c)] and accept a debit card payment from a student

 2-4     to whom a debit card has been issued under the program for purchase

 2-5     of that merchandise or service. The institution of higher education

 2-6     may assess participating businesses a fee sufficient to cover the

 2-7     cost of implementation and administration of this program.

 2-8           (d) [(e)]  An institution of higher education may not

 2-9     administer or sponsor a debit card program for students of the

2-10     institution that does not conform to this section.

2-11           (e) [(f)]  In this section:

2-12                 (1)  "Governing board" and "institution of higher

2-13     education" have the meanings assigned by Section 61.003.

2-14                 (2)  "Person" has the meaning assigned by Section

2-15     1.201, Business & Commerce Code.

2-16           SECTION 2.  This Act takes effect September 1, 1997.

2-17           SECTION 3.  The importance of this legislation and the

2-18     crowded condition of the calendars in both houses create an

2-19     emergency and an imperative public necessity that the

2-20     constitutional rule requiring bills to be read on three several

2-21     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 63 was passed by the House on April

         11, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 63 on May 23, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 63 was passed by the Senate, with

         amendments, on May 21, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor