By:  Wong (Senate Sponsor - Averitt)                              H.B. No. 1829
	(In the Senate - Received from the House May 16, 2005; 
May 17, 2005, read first time and referred to Committee on 
Education; May 21, 2005, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 6, Nays 0; 
May 21, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 1829                                   By:  Averitt

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) 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.
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