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H.B. No. 1829
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) 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 must be in an
amount reasonable and necessary to reimburse the institution for
the expense incurred by the institution in processing and handling
the payment or payment transaction.
(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 must be in an
amount reasonable and necessary to reimburse the institution for
[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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1829 was passed by the House on May
13, 2005, by the following vote: Yeas 135, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1829 on May 27, 2005, by the following vote: Yeas 142, Nays 0,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1829 was passed by the Senate, with
amendments, on May 25, 2005, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor