1-1                                   AN ACT
 1-2     relating to the total amount of student services fees that may be
 1-3     charged at certain institutions of higher education.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 54.503(b) and (f), Education Code, are
 1-6     amended to read as follows:
 1-7           (b)  The governing board of an institution of higher
 1-8     education may charge and collect from students registered at the
 1-9     institution fees to cover the cost of student services.  The fee or
1-10     fees may be either voluntary or compulsory as determined by the
1-11     governing board.  The total of all compulsory student services fees
1-12     collected from a student at an institution of higher education
1-13     other than The University of Texas at Austin or a component
1-14     institution of the University of Houston System for any one
1-15     semester or summer session shall not exceed $250 [$150.  If
1-16     approved by a majority vote of those students participating in a
1-17     general election called for that purpose, the total of all
1-18     compulsory student services fees that may be collected from a
1-19     student at The University of Texas at El Paso may be increased to
1-20     an amount not to exceed $250.  Approval at the election of an
1-21     increase in the total fees that may be collected from a student at
1-22     The University of Texas at El Paso does not affect the application
1-23     of Subsection (f) to an increase in the total fees actually charged
1-24     from one year to the next].  All compulsory student services fees
 2-1     charged and collected under this section by the governing board of
 2-2     an institution of higher education, other than a public junior
 2-3     college, shall be assessed in proportion to the number of semester
 2-4     credit hours for which a student registers.  No portion of the
 2-5     compulsory fees collected may be expended for parking facilities or
 2-6     services, except as related to providing shuttle bus services.
 2-7           (f)  If[, in an academic year,] the total compulsory fee
 2-8     charged under this section is more than $150 [10 percent higher
 2-9     than the compulsory fee charged for the previous academic year],
2-10     the increase does not take effect unless the increase is approved
2-11     by a majority vote of the students voting in an election held for
2-12     that purpose or by a majority vote of the student government at the
2-13     institution. In subsequent years, an election authorizing a fee
2-14     increase must be held before the fee can be increased by more than
2-15     10 percent of the fee approved at the last student election.
2-16           SECTION 2. Sections 54.513(i) and (j), Education Code, are
2-17     amended to read as follows:
2-18           (i)  If[, in an academic year,] the total compulsory fee
2-19     [fees] charged under this section is [are] more than $150 [10
2-20     percent higher than the previous year's compulsory fees], the
2-21     increase does [is] not take effect [effective] unless the increase
2-22     is approved by a majority vote of the students voting in an
2-23     election held for that purpose or by a majority vote of the duly
2-24     elected student government.  In subsequent years, an election
2-25     authorizing a fee increase must be held before the fee can be
2-26     increased by more than 10 percent of the fee approved at the last
2-27     student election.
 3-1           (j)  The total of all compulsory fees charged under this
 3-2     section to students for any semester or summer session may not
 3-3     exceed $250 [$150].
 3-4           SECTION 3. The change in law made by this Act applies only to
 3-5     fees imposed for a semester or term that begins on or after the
 3-6     effective date of this Act.
 3-7           SECTION 4. This Act takes effect immediately if it receives a
 3-8     vote of two-thirds of all the members elected to each house, as
 3-9     provided by Section 39, Article III, Texas Constitution.  If this
3-10     Act does not receive the vote necessary for immediate effect, this
3-11     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2575 was passed by the House on April
         18, 2001, by the following vote:  Yeas 141, Nays 3, 1 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 2575 on May 25, 2001, by the following vote:  Yeas 125, Nays
         10, 2 present, not voting; and that the House adopted H.C.R. No.
         326 authorizing certain corrections in H.B. No. 2575 on May 28,
         2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2575 was passed by the Senate, with
         amendments, on May 21, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting; and that the Senate adopted H.C.R. No.
         326 authorizing certain corrections in H.B. No. 2575 on May 28,
         2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor