By:  Wong                                                         H.B. No. 1829



A BILL TO BE ENTITLED

AN ACT

relating to authorizing certain institutions of higher education to 
charge fees for processing or handling certain payments or payment 
transactions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter Z, Chapter 51, Education Code, is 
amended by adding Section 51.9461 to read as follows:
	Sec. 51.9461.  CHARGES AND FEES FOR CERTAIN PAYMENTS AT 
PRIVATE OR INDEPENDENT INSTITUTIONS OF HIGHER EDUCATION.  (a)  In 
this section, "private or independent institution of higher 
education" has the meaning assigned by Section 61.003.
	(b)  This section applies only to a payment of tuition, a 
fee, or another charge made by or on behalf of a student, including 
a person admitted but not yet enrolled, of a private or independent 
institution of higher education if the payment is made or 
authorized in person, by mail, by telephone call, or through the 
Internet by means of:
		(1)  an electronic funds transfer; or                                  
		(2)  a credit card.                                                    
	(c)  Subject to Subsection (d), a private or independent 
institution of higher education may charge a fee or other amount in 
connection with a payment to which this section applies, in 
addition to the amount of the tuition, fee, or other charge being 
paid, including:
		(1)  a discount, convenience, or service charge for the 
transaction; or
		(2)  a service charge in connection with a payment 
transaction that is dishonored or refused for lack of funds or 
insufficient funds.
	(d)  A fee or other charge under this section may not exceed 
the actual expense incurred by the institution as a result of 
accepting the payment by means of an electronic funds transfer or a 
credit card or as a result of the payment transaction being 
dishonored or refused.
	(e)  Before accepting a payment by credit card, the 
institution shall notify the student or other person making the 
payment of any fee to be charged under this section.
	SECTION 2.  Section 54.5011(c), Education Code, is amended 
to read as follows:
	(c)  A fee or other charge under this section may not exceed 
the actual expense incurred by the institution as a result of 
accepting the payment or as a result of the payment transaction 
being dishonored or refused [must be in an amount reasonably 
related to the expense incurred by the institution in processing 
and handling the payment or payment transaction].
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.