HBA-BSM S.B. 1472 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1472
By: Ogden
Higher Education
4/27/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, institutions of higher education are required to collect a
property deposit of up to $10 from all students and refund the deposit if
the student is graduating or is no longer enrolled in the institution.  The
deposit gives institutions insurance against losses and damage to the
institution's property.  However, for smaller institutions , the
administrative requirements and costs associated with the deposits may
outweigh any benefit from deposit forfeitures.  Senate Bill 1472 increases
the amount to $100 that an institution is authorized to collect  as a
deposit. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 1472 amends the Education Code to authorize, rather than
require, an institution of  higher education to collect a reasonable
deposit in an amount not to exceed $100, rather than $10, from each student
to insure the institution against losses, damages, and breakage in
libraries and laboratories.  The deposit is required to be returned on the
withdrawal or graduation of a student, less an amount necessary to cover
any loss, damage, or breakage caused by the student.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.