By: Zaffirini S.B. No. 1231

Substitute the following for S.B. No. 1231:

By: Patrick C.S.S.B. No. 1231

A BILL TO BE ENTITLED

AN ACT

relating to refunding tuition and mandatory fees at institutions of higher education for dropped courses and student withdrawals.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 54.006, Education Code, is amended to read as follows:

Sec. 54.006. REFUND OR ADJUSTMENT OF TUITION AND MANDATORY FEES FOR DROPPED COURSES AND STUDENT WITHDRAWALS.

SECTION 2. Section 54.006, Education Code, is amended by amending Subsections (a), (b), (c), and (e), and adding Subsections (a-1), (b-1), and (b-2) to read as follows:

(a) A general academic teaching institution or medical and dental unit, as soon as practicable, shall refund the amount of [fees and] tuition and mandatory fees [in excess of the minimum tuition] collected for courses from which students drop within the first 12 days of a fall or spring semester or a summer term of 10 weeks or longer, within the first four days of a [summer] term or session of more than five weeks but less than 10 weeks, or within the period specified by the institution for that purpose for a term or session of five weeks or less that is substantially proportional to the period specified by this subsection for a longer term or session. The institution or medical and dental unit may not delay a refund under this subsection on the grounds that the student may withdraw from the institution or unit later in the semester or term.

(a-1) An institution may assess a nonrefundable $15 matriculation fee if the student withdraws from the institution before the first day of classes.

(b) Except as provided by Subsections (b-1) and (b-2), a [A] general academic teaching institution or medical and dental unit shall refund from the amount paid by [to] a student withdrawing from the institution or unit an amount equal to the product of the amount of tuition and mandatory fees charged [collected] for each course in which the student is enrolled on the date the student withdraws multiplied by the applicable percentage derived from the following tables:

(1) if the student withdraws during a fall or spring semester or a summer term of 10 weeks or longer [or comparable trimester]:

(A) prior to the first class day100 percent

(B) during the first five class days80 percent

(C) during the second five class days70 percent

(D) during the third five class days50 percent

(E) during the fourth five class days25 percent

(F) after the fourth five class daysNone; [and]

(2) if the student withdraws during a [summer] term or session of more than five weeks but less than 10 weeks:

(A) prior to the first class day100 percent

(B) during the first, second, or third class day 80 percent

(C) during the fourth, fifth, or sixth class day 50 percent

(D) seventh day of class and thereafterNone; and

(3) if the student withdraws from a term or session of five weeks or less:

(A) prior to the first class day100 percent

(B) during the first class day80 percent

(C) during the second class day50 percent

(D) during the third class day and thereafterNone.

(b-1) If a student has not paid the total amount of the tuition and mandatory fees charged to the student by the institution or unit for the courses in which the student is enrolled by the date the student withdraws from the institution or unit, instead of issuing the student a refund in the amount required under Subsection (b), the institution or unit may credit the amount to be refunded toward the payment of the outstanding tuition and mandatory fees owed by the student. The institution or unit shall issue a refund to the student if any portion of the amount to be refunded remains after the outstanding tuition and mandatory fees have been paid.

(b-2) A general academic teaching institution or medical and dental unit may provide to a student withdrawing from the institution or unit a refund of a portion of the tuition and mandatory fees charged to the student by the institution or unit for the courses in which the student is enrolled on the date the student withdraws in an amount greater than the amount required by Subsection (b). The institution or unit may apply the portion of the refund authorized by this subsection toward the payment of any outstanding tuition and fees as provided by Subsection (b-1), and may refund the remainder of that portion in the form of, as the institution or unit considers appropriate:

(1) a payment made directly to the student; or

(2) credit toward payment of tuition and mandatory fees for a subsequent semester or other academic term at the institution or unit.

(c) Separate withdrawal refund schedules may be established for optional fees [such as intercollegiate athletics, cultural entertainment, parking, and yearbooks].

(e) A general academic teaching institution or medical and dental unit may [shall] terminate a student's student services and privileges, including [such as] health services, library privileges, facilities and technology usage, and athletic and cultural entertainment tickets, when the [a] student withdraws from the institution.

SECTION 3. Subsection (g), Section 54.006, Education Code, is repealed.

SECTION 4. The change in law made by this Act applies to tuition and mandatory fees charged beginning with the fall 2007 semester.

SECTION 5. 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, 2007.