1-1     By:  Uher (Senate Sponsor - Bivins)                   H.B. No. 1545
 1-2           (In the Senate - Received from the House April 2, 2001;
 1-3     April 3, 2001, read first time and referred to Committee on
 1-4     Education; April 18, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 7, Nays 0;
 1-6     April 18, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1545                  By:  Bivins
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the operation, regulation, administration, and
1-11     financing of public institutions of higher education.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13                           ARTICLE 1.  PURCHASING
1-14           SECTION 1.01.  Sections 51.9335(a)-(e), Education Code, are
1-15     amended to read as follows:
1-16           (a)  An institution of higher education [A medical and dental
1-17     unit] may acquire goods or services by the method that provides the
1-18     best value to the institution [unit], including:
1-19                 (1)  competitive bidding;
1-20                 (2)  competitive sealed proposals;
1-21                 (3)  a catalogue purchase;
1-22                 (4)  a group purchasing program; or
1-23                 (5)  an open market contract.
1-24           (b)  In determining what is the best value to an institution
1-25     of higher education [a medical and dental unit], the institution
1-26     [unit] shall consider:
1-27                 (1)  the purchase price;
1-28                 (2)  the reputation of the vendor and of the vendor's
1-29     goods or services;
1-30                 (3)  the quality of the vendor's goods or services;
1-31                 (4)  the extent to which the goods or services meet the
1-32     institution's [unit's] needs;
1-33                 (5)  the vendor's past relationship with the
1-34     institution [unit];
1-35                 (6)  the impact on the ability of the institution
1-36     [unit] to comply with laws and rules relating to historically
1-37     underutilized businesses and to the procurement of goods and
1-38     services from persons with disabilities;
1-39                 (7)  the total long-term cost to the institution [unit]
1-40     of acquiring the vendor's goods or services; [and]
1-41                 (8)  any other relevant factor that a private business
1-42     entity would consider in selecting a vendor; and
1-43                 (9) the use of material in construction or repair to
1-44     real property that is not proprietary to a single vendor unless the
1-45     institution provides written justification in the request for bids
1-46     for use of the unique material specified.
1-47           (c)  The state auditor may audit purchases of goods or
1-48     services by an institution of higher education or by a component of
1-49     an institution of higher education that purchases goods and
1-50     services [a medical and dental unit].
1-51           (d)  To the extent of any conflict, this section prevails
1-52     over any other law, including Chapters 2155, 2156, 2157, 2158, 2167
1-53     and 2170, Government Code, except a law or rule relating to
1-54     contracting with historically underutilized businesses or relating
1-55     to the procurement of goods and services from persons with
1-56     disabilities.  An institution of higher education may, but is not
1-57     required to, acquire goods or services as provided by Chapters
1-58     2155, 2156, 2157, 2158, 2167 and 2170, Government Code.
1-59           (e)  In this section, "institution of higher education"
1-60     ["medical and dental unit"] has the meaning assigned by Section
1-61     61.003 and includes a school of veterinary medicine and a health
1-62     care facility operated by a medical and dental unit, except that
1-63     the term does not include The University of Texas M. D. Anderson
1-64     Cancer Center, The University of Texas Medical Branch at Galveston,
 2-1     or a public junior college.
 2-2           SECTION 1.02.  Subchapter Z, Chapter 51, Education Code, is
 2-3     amended by adding Section 51.966 to read as follows:
 2-4           Sec. 51.966.  INSURANCE COVERAGE.  (a)  The governing board
 2-5     of an institution of higher education may purchase insurance
 2-6     insuring the institution and its employees against any liability,
 2-7     risk or exposure and covering the losses of any institutional
 2-8     property.
 2-9           (b)  The governing board may pay the cost of any insurance
2-10     from any funds of the institution.
2-11           (c)  As used in this section, "governing board" and
2-12     "institution of higher education" have the meanings assigned by
2-13     Section 61.003 of this code.
2-14           SECTION 1.03.  Subchapter B, Chapter 497, Government Code, is
2-15     amended by adding Section 497.0211 to read as follows:
2-16           Sec. 497.0211.  EXCEPTION:  INSTITUTIONS OF HIGHER EDUCATION.
2-17     This subchapter does not apply to an institution of higher
2-18     education, as defined by Section 61.003, Education Code.
2-19           SECTION 1.04.  Section 2155.067(b), Government Code, is
2-20     amended to read as follows:
2-21           (b)  The agency head or the presiding officer of the agency's
2-22     governing body must sign the written justification.  [For an
2-23     institution of higher education, the individual designated by the
2-24     president or governing body as purchasing officer for the
2-25     institution may sign the written justification.]
2-26           SECTION 1.05.  Section 2155.268(a), Government Code, is
2-27     amended to read as follows:
2-28           (a)  A state agency may not maintain and use its own bidders
2-29     list.  The prohibition of this subsection does not apply to the
2-30     Texas Department of Transportation [or to an institution of higher
2-31     education as defined by Section 61.003, Education Code, but an
2-32     institution of higher education should use the master bidders list
2-33     when possible].
2-34           SECTION 1.06.  Sections 2155.133, 2155.134, and 2155.135,
2-35     Government Code, are repealed.
2-36                         ARTICLE 2.  HUMAN RESOURCES
2-37           SECTION 2.01.  Subchapter Z, Chapter 51, Education Code, is
2-38     amended by adding Section 51.961 to read as follows:
2-39           Sec. 51.961.  LEAVE PROVISIONS FOR CERTAIN EMPLOYEES OF
2-40     UNIVERSITY SYSTEM.  (a)  In this section:
2-41                 (1)  "Governing board," "medical and dental unit," and
2-42     "university system" have the meanings assigned by Section 61.003.
2-43                 (2)  "Leave" includes vacation leave, sick leave, and
2-44     holidays.
2-45           (b)  The governing board of a university system may adopt a
2-46     comprehensive leave policy that applies to employees working in a
2-47     hospital or clinic of a medical and dental unit of the university
2-48     system.
2-49           (c)  A policy adopted under this section may combine
2-50     vacation, sick, and holiday leave into a paid leave system that
2-51     does not distinguish or separate the types of leave to be awarded
2-52     and may award leave in an amount determined by the governing board
2-53     to be appropriate and cost-effective.
2-54           (d)  Chapters 661 and 662, Government Code, do not apply to
2-55     employees covered by a policy adopted under this section.  The
2-56     policy must include provisions addressing the subject matter of
2-57     each subchapter of Chapters 661 and 662, Government Code, and the
2-58     intended effect of the policy on the rights, duties, and
2-59     responsibilities of employees and the employing entity under those
2-60     subchapters.
2-61           (e)  A policy adopted under this section must include
2-62     provisions for:
2-63                 (1)  payment for accrued leave to:
2-64                       (A)  the estates or heirs of deceased employees;
2-65                       (B)  employees separating from the employing
2-66     entity; and
2-67                       (C)  contributing members of state retirement
2-68     systems who retire; and
2-69                 (2)  awards of accrued leave to employees separating
 3-1     from the employing entity who are to be employed by other state
 3-2     agencies or institutions of higher education.
 3-3           (f)  A policy authorized by this section may include other
 3-4     matters as determined relevant and appropriate by the governing
 3-5     board.
 3-6           (g)  A policy authorized by this section must be adopted by a
 3-7     governing board in an open meeting of the board.
 3-8           (h)  Before implementing a policy adopted under this section,
 3-9     the governing board shall make reasonable efforts to enter into a
3-10     memorandum of understanding with the office of the state auditor,
3-11     the Employees Retirement System of Texas, and the Texas Higher
3-12     Education Coordinating Board concerning awards of accrued leave for
3-13     the purposes of retirement and other issues of concern related to
3-14     the implementation of the policy.
3-15           (i)  On or after September 15, 2005, the governing board of
3-16     an institution of higher education may adopt a leave policy as
3-17     provided by this section for employees of the institution.
3-18           SECTION 2.02.  Subchapter Z, Chapter 51, Education Code, is
3-19     amended by adding Section 51.962 to read as follows:
3-20           Sec. 51.962.  MERIT SALARY INCREASES.  (a)  An institution of
3-21     higher education as defined by Section 61.003 may grant merit
3-22     salary increases, including one-time merit payments, to employees
3-23     described by this section.
3-24           (b)  A merit salary increase made under this section is
3-25     compensation for purposes of Chapter 659, Government Code, and
3-26     salary and wages and member compensation for purposes of Title 8,
3-27     Government Code.
3-28           (c)  An institution of higher education may pay merit salary
3-29     increases under this section from any funds.
3-30           (d)  Before awarding a merit salary increase under this
3-31     section, an institution of higher education must adopt criteria for
3-32     the granting of merit salary increases.
3-33           (e)  To be eligible for a merit salary increase under this
3-34     section, an employee must have been employed by the institution of
3-35     higher education for the six months immediately preceding the
3-36     effective date of the increase and at least six months must have
3-37     elapsed since the employee's last merit salary increase.
3-38           SECTION 2.03.  Subchapter Z, Chapter 51, Education Code, is
3-39     amended by adding Section 51.963 to read as follows:
3-40           Sec. 51.963.  EMPLOYEE WITH MULTIPLE APPOINTMENTS.  A
3-41     full-time employee of an institution of higher education as defined
3-42     by Section 61.003 who has appointments to more than one position at
3-43     the same institution may receive pay for working more than 40 hours
3-44     in a week if the institution determines that pay in lieu of
3-45     compensatory time is in the best interests of the institution.
3-46           SECTION 2.04.  Subchapter Z, Chapter 51, Education Code, is
3-47     amended by adding Section 51.964 to read as follows:
3-48           Sec. 51.964.  HIRING OF CERTAIN RETIREES.  (a)  An
3-49     institution of higher education as defined by Section 61.003 may
3-50     employ a person who has retired under the Teacher Retirement System
3-51     (Subtitle C, Title 8, Government Code) or the optional retirement
3-52     program (Chapter 830, Government Code) if:
3-53                 (1)  the governing board of the institution determines
3-54     that the employment is in the best interests of the institution;
3-55     and
3-56                 (2)  the person has been retired for at least one
3-57     calendar year before the effective date of the employment, except
3-58     that a person retired under the optional retirement program may be
3-59     rehired after retirement without a break in service.
3-60           (b)  The governing board may pay a person employed under this
3-61     section an amount considered by the governing board to be
3-62     appropriate, notwithstanding any other provision of law.
3-63           SECTION 2.05.  Subchapter Z, Chapter 51, Education Code, is
3-64     amended by adding Section 51.965 to read as follows:
3-65           Sec. 51.965.  EMPLOYEE NOTIFICATION.  (a)  If a state law
3-66     requires an institution of higher education as defined by Section
3-67     61.003 to provide written notification to its officers or employees
3-68     of any requirement, right, duty, or responsibility provided by
3-69     state law, the institution may provide the notification by use of
 4-1     electronic media.
 4-2           (b)  An institution of higher education may adopt rules and
 4-3     guidelines to ensure that notification provided by electronic media
 4-4     under this section is effective and that any required notification
 4-5     is provided to officers and employees who do not have access to
 4-6     electronic media.
 4-7           SECTION 2.06.  Section 661.062(a), Government Code, is
 4-8     amended to read as follows:
 4-9           (a)  A state employee who, at any time during the employee's
4-10     lifetime, has accrued six months of continuous state employment and
4-11     who resigns, is dismissed, or otherwise separates from state
4-12     employment by a state agency other than an institution of higher
4-13     education is entitled to be paid for the accrued balance of the
4-14     employee's vacation time as of the date of separation, if the
4-15     individual is not reemployed by the state in a position under which
4-16     the employee accrues vacation leave during the 30-day period
4-17     immediately following the date of separation from state employment.
4-18     A state employee who, at any time during the employee's lifetime,
4-19     has accrued six months of continuous state employment and who
4-20     resigns, is dismissed, or otherwise separates from state employment
4-21     by an institution of higher education is entitled to be paid for
4-22     the accrued balance of the employee's vacation time as of the date
4-23     of separation.
4-24           SECTION 2.07.  The heading to Subchapter J, Chapter 659,
4-25     Government Code, is amended to read as follows:
4-26          SUBCHAPTER J.  PAYROLL REDUCTION OR DEDUCTION FOR CERTAIN
4-27               EMPLOYEE BENEFITS [OF PARKING FEES AND PERMITS]
4-28                     AT INSTITUTIONS OF HIGHER EDUCATION
4-29           SECTION 2.08.  Section 659.202, Government Code, is amended
4-30     to read as follows:
4-31           Sec. 659.202.  PAYROLL REDUCTION OR DEDUCTION AUTHORIZED; USE
4-32     OF FUNDS.  (a)  An employee of an institution of higher education
4-33     may authorize in writing a reduction [deduction] each pay period
4-34     from the employee's salary or wage payment for the payment of any
4-35     fee or charge for parking, a parking permit, a transportation pass,
4-36     or other qualified transportation benefit authorized under Section
4-37     132(f), Internal Revenue Code of 1986, as amended [parking fees
4-38     charged by the institution of higher education or for the purchase
4-39     of a parking permit from an institution of higher education].  An
4-40     authorization for a reduction [deduction] under this subchapter by
4-41     the employee must be [is] voluntary.  The institution shall
4-42     determine which fee or charge an employee may pay under this
4-43     subsection.
4-44           (b)  An employee of an institution of higher education may
4-45     authorize in writing a deduction each pay period from the
4-46     employee's salary or wage payment for the payment of any fee or
4-47     charge for parking or for a club membership, recreational sports
4-48     membership, or similar activity or program.  An authorization for a
4-49     deduction under this subchapter by the employee must be voluntary.
4-50     The institution shall determine which fee or charge an employee may
4-51     pay under this subsection.  [Funds collected under this section may
4-52     be used only to provide parking facilities for employees of the
4-53     institution.]
4-54           SECTION 2.09.  Subchapter J, Chapter 659, Government Code, is
4-55     amended by adding Section 659.205 to read as follows:
4-56           Sec. 659.205.  STATUS OF DEDUCTION OR SALARY REDUCTION.
4-57     (a)  If so designated by the employing institution of higher
4-58     education, a salary deduction made by an employee under this
4-59     subchapter shall be considered compensation under this chapter and
4-60     salary and wages and member compensation under Title 8.
4-61           (b)  If authorized by federal law, a salary deduction or
4-62     salary reduction under this subchapter may be made on a pretax
4-63     basis.
4-64           SECTION 2.10.  Section 822.201(b), Government Code, is
4-65     amended to read as follows:
4-66           (b)  "Salary and wages" as used in Subsection (a) means:
4-67                 (1)  normal periodic payments of money for service the
4-68     right to which accrues on a regular basis in proportion to the
4-69     service performed;
 5-1                 (2)  amounts by which the member's salary is reduced
 5-2     under a salary reduction agreement authorized by Chapter 610;
 5-3                 (3)  amounts that would otherwise qualify as salary and
 5-4     wages under Subdivision (1) but are not received directly by the
 5-5     member pursuant to a good faith, voluntary written salary reduction
 5-6     agreement in order to finance payments to a deferred compensation
 5-7     or tax sheltered annuity program specifically authorized by state
 5-8     law or to finance benefit options under a cafeteria plan qualifying
 5-9     under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.
5-10     Section 125), if:
5-11                       (A)  the program or benefit options are made
5-12     available to all employees of the employer; and
5-13                       (B)  the benefit options in the cafeteria plan
5-14     are limited to one or more options that provide deferred
5-15     compensation, group health and disability insurance, group term
5-16     life insurance, dependent care assistance programs, or group legal
5-17     services plans;
5-18                 (4)  performance pay awarded to an employee by a school
5-19     district as part of a total compensation plan approved by the board
5-20     of trustees of the district and meeting the requirements of
5-21     Subsection (e); [and]
5-22                 (5)  the benefit replacement pay a person earns under
5-23     Subchapter H, Chapter 659, as added by Chapter 417, Acts of the
5-24     74th Legislature, 1995, except as provided by Subsection (c); [and]
5-25                 (6)  stipends paid to teachers in accordance with
5-26     Section 21.410, Education Code;
5-27                 (7)  amounts by which the member's salary is reduced or
5-28     that are deducted from the member's salary as authorized by
5-29     Subchapter J, Chapter 659; and
5-30                 (8)  a merit salary increase made under Section 51.962,
5-31     Education Code.
5-32           SECTION 2.11.  Section 658.001, Government Code is amended to
5-33     read as follows:
5-34           Sec. 658.001.  DEFINITIONS.  In this chapter:
5-35                 (1)  "Full-time state employee" means a person employed
5-36     by a state agency who, if not participating in a voluntary work
5-37     reduction program under Section 658.003, is required to work for
5-38     the agency not less than 40 hours a week.
5-39                 (2)  "State agency" means:
5-40                       (A)  a board, commission, department,
5-41     institution, office, or other agency in the executive branch of
5-42     state government that is created by the constitution or a statute
5-43     of this state, including an institution of higher education as
5-44     defined by Section 61.003, Education Code, other than a public
5-45     junior college; or
5-46                       (B)  the Supreme Court of Texas, the Texas Court
5-47     of Criminal Appeals, a court of appeals, or other agency in the
5-48     judicial branch.
5-49           SECTION 2.12.  Section 659.002(b), Government Code, is
5-50     amended to read as follows:
5-51           (b)  In this section "state agency" means"
5-52                 (1)  a board, commission, department, office, or other
5-53     agency that is in the executive branch of state government and that
5-54     was created by the constitution or a statute of this state,
5-55     including an institution of higher education as defined by Section
5-56     61.003, Education Code, other than a public junior college;
5-57                 (2)  the legislature or a legislative agency; or
5-58                 (3)  the supreme court, the court of criminal appeals,
5-59     a court of appeals, the state bar, or another state judicial
5-60     agency.
5-61           SECTION 2.13.  Chapter 661, Government Code, is amended by
5-62     adding Section 661.915 to read as follows:
5-63           Sec. 661.915.  APPLICABILITY TO JUNIOR COLLEGES.  The
5-64     provisions of this chapter do not apply to a public junior college
5-65     as defined by Section 61.003, Education Code.
5-66                      ARTICLE 3.  FINANCIAL MANAGEMENT
5-67           SECTION 3.01.  Section 74.103, Education Code, is amended to
5-68     read as follows:
5-69           Sec. 74.103.  GIFTS AND GRANTS.  The board may accept and
 6-1     administer, on terms and conditions satisfactory to it, grants and
 6-2     gifts tendered to it in aid of research and teaching at the medical
 6-3     school.  The board may also accept from the federal government or
 6-4     any foundation, trust fund, corporation, or individual donations,
 6-5     gifts, and grants, including real estate, buildings, libraries,
 6-6     laboratories, apparatus, equipment, records, and leases, for the
 6-7     exclusive use and benefit of the medical school.  [Before
 6-8     acceptance of gifts, grants, and donations of real property, the
 6-9     board shall secure the opinion of the attorney general on the title
6-10     of the real property to be conveyed.]
6-11           SECTION 3.02.  Section 74.153, Education Code, is amended to
6-12     read as follows:
6-13           Sec. 74.153.  GIFTS AND GRANTS.  The board may accept and
6-14     administer, on terms and conditions satisfactory to it, grants and
6-15     gifts tendered to it in aid of research and teaching at the medical
6-16     school.  The board may also accept from the federal government, any
6-17     foundation, trust fund, corporation, or individual donations,
6-18     gifts, and grants, including real estate, buildings, libraries,
6-19     laboratories, apparatus, equipment, records, and money, for the
6-20     exclusive use and benefit of the medical school.  [Before
6-21     acceptance of gifts, grants, and donations of real property, the
6-22     board shall secure the opinion of the attorney general on the title
6-23     of the real property to be conveyed.]
6-24           SECTION 3.03.  Section 2251.026, Government Code, is amended
6-25     by adding Subsection (g) to read as follows:
6-26           (g)  No interest accrues or may be paid under this section on
6-27     a payment if the total amount of interest that would otherwise have
6-28     accrued is equal to or less than $5 and the payment is made from
6-29     the institutional funds of an institution of higher education as
6-30     defined by Section 61.003, Education Code.
6-31           SECTION 3.04.  Subchapter Z, Chapter 51 of the Education
6-32     Code, is amended by adding Section 51.967 to read as follows:
6-33           Sec. 51.967.  LIMITATION ON EDUCATIONAL DEBT.  No statute of
6-34     limitations shall apply to a lawsuit, to the enforcement of a
6-35     judgment, or to any other legal action to collect an educational
6-36     debt owed to an institution of higher education or to the Texas
6-37     Higher Education Coordinating Board.
6-38           SECTION 3.05.  The change in law made by this article to
6-39     Section 2251.026, Government Code, applies only to interest on a
6-40     payment by an institution of higher education that becomes overdue
6-41     under Chapter 2251, Government Code, on or after the effective date
6-42     of this Act.  Interest on a payment by an institution of higher
6-43     education that becomes overdue under Chapter 2251, Government Code,
6-44     before that date is governed by Section 2251.026, Government Code,
6-45     as that section exists on the date the payment becomes overdue, and
6-46     the prior law is continued in effect for that purpose.
6-47           SECTION 3.06.  Section 66.08(h), Education Code, is amended
6-48     to read as follows:
6-49           (h)  The corporation:
6-50                 (1)  is subject to the Texas Non-Profit Corporation Act
6-51     (Article 1396-1.01 et. seq., Vernon's Texas Civil Statutes); and 
6-52                 (2)  is subject to the provisions of Chapter 551,
6-53     Government Code (the open meetings law) that apply to the board of
6-54     regents of the University of Texas System, except that the board of
6-55     directors of the corporation:
6-56                       (A)  may discuss an investment or potential
6-57     investment with one or more employees of the corporation or with a
6-58     third party to the extent permitted to the board of trustees of the
6-59     Texas growth fund under Section 551.075, Government Code; and
6-60                       (B)  is not subject to Section 551.121 or Section
6-61     551.125, Government Code, rather any director of the corporation
6-62     may attend any meeting of the board of directors by telephone
6-63     conference call provided that the telephone conference is audible
6-64     to the public at the meeting location specified in the notice of
6-65     the meeting during each part of the meeting that is required to be
6-66     open to the public.
6-67                            ARTICLE 4.  REPORTING
6-68           SECTION 4.01.  Section 2166.101, Government Code, is amended
6-69     by adding Subsection (f) to read as follows:
 7-1           (f)  If information to be obtained from an institution of
 7-2     higher education, as defined by Section 61.003, Education Code, for
 7-3     inclusion in the report is also included in another report to be
 7-4     made by the institution of higher education to another state
 7-5     agency, the commission, the agency receiving the other report, and
 7-6     the institution of higher education shall enter into a memorandum
 7-7     of understanding concerning the information to be reported in order
 7-8     to enable the institution of higher education to provide the
 7-9     required information in the most cost-effective manner taking into
7-10     account the costs to each affected agency.  This subsection does
7-11     not limit the authority of the state auditor to request and receive
7-12     information directly from an institution of higher education.
7-13           SECTION 4.02.  Section 2167.005, Government Code, is amended
7-14     by adding Subsection (c) to read as follows:
7-15           (c)  If information to be included in the report is also
7-16     included in another report to be made by the institution of higher
7-17     education to another state agency, the commission, the agency
7-18     receiving the other report, and the institution of higher education
7-19     shall enter into a memorandum of understanding concerning the
7-20     information to be reported in order to enable the institution of
7-21     higher education to provide the required information in the most
7-22     cost-effective manner taking into account the costs to each
7-23     affected agency.
7-24                       ARTICLE 5.  STRATEGIC PLANNING
7-25           SECTION 5.01.  Section 2056.001, Government Code, is amended
7-26     to read as follows:
7-27           Sec. 2056.001.  DEFINITION.  In this chapter, "state agency"
7-28     means a department, board, commission, or other entity of state
7-29     government, other than [including] a university system or [and] an
7-30     institution of higher education as defined by Section 61.003,
7-31     Education Code, that:
7-32                 (1)  has authority that is not limited to a
7-33     geographical portion of the state;
7-34                 (2)  was created by the constitution or a state statute
7-35     with an ongoing mission and responsibilities;
7-36                 (3)  is not the office of the governor or lieutenant
7-37     governor;
7-38                 (4)  is not within the judicial or legislative branch
7-39     of government; and
7-40                 (5)  is not a committee created under state law whose
7-41     primary function is to advise an agency[; and]
7-42                 [(6)  is not a state-funded junior or community
7-43     college].
7-44                     ARTICLE 6.  OTHER FINANCIAL MATTERS
7-45           SECTION 6.01.  Subchapter E, Chapter 54, Education Code, is
7-46     amended by adding Section 54.5011 to read as follows:
7-47           Sec. 54.5011.  CREDIT CARD FEES.  (a)  An institution of
7-48     higher education that accepts payment of tuition, a fee, or other
7-49     charge by credit card may charge the credit card user a fee for
7-50     processing the payment.
7-51           (b)  A fee charged under this section may not exceed the
7-52     amount charged the institution by the issuer of the credit card in
7-53     connection with the payment.
7-54           (c)  Before accepting a payment by credit card, the
7-55     institution shall notify the student of any fee to be charged under
7-56     this section.
7-57           SECTION 6.02.  Section 54.010, Education Code, as added by
7-58     Chapter 1053, Acts of the 76th Legislature, Regular Session, 1999,
7-59     is repealed.
7-60                         ARTICLE 7.  EFFECTIVE DATE
7-61           SECTION 7.01.  This Act takes effect immediately if it
7-62     receives a vote of two-thirds of all the members elected to each
7-63     house, as provided by Section 39, Article III, Texas Constitution.
7-64     If this Act does not receive the vote necessary for immediate
7-65     effect, this Act takes effect September 1, 2001.
7-66                                  * * * * *