By:  Ogden                                             S.B. No. 806

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the use of student fees and certain other funds to

 1-2     support intercollegiate athletics at a public institution of higher

 1-3     education.

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

 1-5           SECTION 1.  Subchapter A, Chapter 54, Education Code, is

 1-6     amended by adding Section 54.009 to read as follows:

 1-7           Sec. 54.009.  USE OF FEES TO SUPPORT INTERCOLLEGIATE

 1-8     ATHLETICS.  (a)  Except as provided by Subsections (b) and (c), the

 1-9     governing board of an institution of higher education may not use

1-10     any revenue derived from any student fee or general use fee or any

1-11     money collected from students from any other source, including

1-12     rentals, rates, charges, or fees to support intercollegiate

1-13     athletics.

1-14           (b)  An institution may use, to support intercollegiate

1-15     athletics, funds from:

1-16                 (1)  the noncompulsory sale of tickets or passes to

1-17     intercollegiate athletic events; or

1-18                 (2)  the receipts from an intercollegiate athletic

1-19     event, including a charge for admission to an event or for the

1-20     purchase of food, drinks, or other merchandise.

1-21           (c)  The governing board of an institution of higher

1-22     education may use a student fee, general use fee, or revenue

1-23     derived from a fee to support intercollegiate athletics if:

 2-1                 (1)  the institution informs its students at least once

 2-2     a year of the amount of fees and revenue derived from fees that

 2-3     will be used to support intercollegiate athletics; and

 2-4                 (2)  the ballot expressly states the amount of the fee

 2-5     that will be used to support intercollegiate athletics, if the fee

 2-6     is subject to approval at an election of the student body.

 2-7           (d)  The total amount of student fees and general use fees

 2-8     that may be used to support intercollegiate athletics may not

 2-9     exceed $100 per student for a semester or 12-week summer term or

2-10     $35 per student for a summer term shorter than 12 weeks.

2-11           (e)  This section applies to all student fees and general use

2-12     fees, including fees adopted or approved before the date this

2-13     section became law, except that a fee approved at an election of

2-14     the student body before the date this section became law is subject

2-15     to Subsection (c)(2) only if the amount of the fee is increased.

2-16           (f)  In this section:

2-17                 (1)  "Student fee" means a fee charged under Subchapter

2-18     E.

2-19                 (2)  "General use fee" means a fee charged under

2-20     Section 55.16.

2-21           (g)  A capital improvement project that uses auxiliary funds

2-22     at an institution of higher education to finance, in whole or in

2-23     part, the project is exempt from the restrictions of this section

2-24     if the project was approved by the Texas Higher Education

2-25     Coordinating Board before September 1, 1997.

 3-1           SECTION 2.  (a)  This Act takes effect September 1, 1997, and

 3-2     applies, except as provided by Subsection (b) of this section,

 3-3     beginning with any fees charged to a student of an institution of

 3-4     higher education for the spring semester of 1998.

 3-5           (b)  If, in the fall semester of 1997, an institution of

 3-6     higher education is charging a total amount of student fees and

 3-7     general use fees to support intercollegiate athletics in excess of

 3-8     the amount allowed under Section 54.009, Education Code, as added

 3-9     by this Act, the institution shall comply with the provisions of

3-10     Section 54.009, Education Code, as added by this Act, not later

3-11     than the fall semester of 1998.

3-12           SECTION 3.  The importance of this legislation and the

3-13     crowded condition of the calendars in both houses create an

3-14     emergency and an imperative public necessity that the

3-15     constitutional rule requiring bills to be read on three several

3-16     days in each house be suspended, and this rule is hereby suspended.