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79R4588 KSD-F

By:  Wong                                                         H.B. No. 1829



A BILL TO BE ENTITLED

AN ACT

relating to authorizing private or independent 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 reasonably related to 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.  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.