By: Zaffirini S.B. No. 1232
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the manner of payment of higher education tuition and
fees and to the repayment of emergency student loans.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 54.007, Education Code, is amended by
amending Subsections (a), (b), and (d), by amending and relettering
Subsection (f), as added by Chapter 888, Acts of the 79th
Legislature, Regular Session, 2005, as Subsection (g), and by
adding Subsection (b-1) to read as follows:
       (a)  The governing board of each institution of higher
education shall provide for the payment of tuition and fees for
[during] the fall and spring semesters through one of the following
alternatives:
             (1)  except as provided by Subsection (b-1), full
payment of tuition and fees in advance of the beginning of the
semester; or
             (2)  [one-half] payment in installments under one or
more payment plan options that require the first payment to be made
[of tuition and fees] in advance of the beginning of the semester
and the final payment to be made before the last day of the
semester[, one-quarter payment prior to the start of the sixth
class week, and the final one-quarter payment before the beginning
of the eleventh class week].
       (b)  The governing board of each institution of higher
education shall provide for [may permit] the payment of tuition and
fees for [during] a summer term through one of the following
alternatives:
             (1)  except as provided by Subsection (b-1), full [for
a student enrolled for a summer term of 12 weeks or longer that is
not covered by Subdivision (2), one-half] payment of tuition and
fees in advance of the beginning of the summer term[, one-quarter
payment before the beginning of the fifth class week, and the final
one-quarter payment before the beginning of the ninth class week];
             (2)  [for a student enrolled for a summer term of 16
weeks or longer, one-half] payment in installments under one or
more payment plan options that require the first payment to be made
[of tuition and fees] in advance of the beginning of the summer term
and the final payment to be made before the last day of the term[,
one-quarter payment before the beginning of the sixth class week,
and the final one-quarter payment before the beginning of the 11th
class week]; or [and]
             (3)  for a student enrolled for a summer term [not
covered by Subdivision (1) or (2)] in a public junior college,
public technical institute, or public state college, one-half
payment of tuition and fees in advance of the beginning of the
summer term and the remaining amount in one or two later payments to
be made in the percentages and by the dates determined by the
governing board of the college or institute, provided that the
final payment must be made before the beginning of the last week of
the summer term.
       (b-1)  A student who owes a balance of tuition and fees as a
result of a change in the student's class schedule or who owes a
balance of tuition and fees of less than $100 after making an
insufficient payment of tuition and fees previously due shall pay
the balance owed not later than the next payment date established by
the governing board under a payment plan adopted under Subsection
(a)(2) or (b)(2), as applicable.
       (d)  A student who fails to make a full payment of the
required amount of tuition and fees, including any incidental fees,
by the due date may be prohibited from registering for classes until
full payment is made. A student who fails to make full payment
prior to the end of the semester or summer term may be denied credit
for the work done that semester or term. The governing board may
not impose on a student any sanction authorized by this subsection
unless the governing board includes in any written or electronic
agreement authorized [promissory note signed] by the [a] student
the following statement printed in bold-faced type or in capital
letters: "A STUDENT WHO FAILS TO MAKE FULL PAYMENT OF TUITION AND
FEES, INCLUDING ANY INCIDENTAL FEES, BY THE DUE DATE MAY BE
PROHIBITED FROM REGISTERING FOR CLASSES UNTIL FULL PAYMENT IS MADE.
A STUDENT WHO FAILS TO MAKE FULL PAYMENT PRIOR TO THE END OF THE
SEMESTER OR TERM MAY BE DENIED CREDIT FOR THE WORK DONE THAT
SEMESTER OR TERM." The governing board shall notify a student of
any delinquent tuition or fee payment as soon as practicable. The
institution's records may be adjusted to reflect the student's
failure to have properly enrolled for that semester.
       (g) [(f)]  The governing board shall require a student who
elects to pay tuition and fees by installment under this section to
enter into a written or electronic agreement reflecting the terms
and conditions required by this section for the installment plan
provided for the student by the governing board.
       SECTION 2.  Subsection (a), Section 56.053, Education Code,
as amended by Chapters 80 and 655, Acts of the 77th Legislature,
Regular Session, 2001, is reenacted and amended to read as follows:
       (a)  The governing board of each institution shall adopt
rules providing for the terms of the loan, subject to the following:
             (1)  the loan must be repaid over a period not to exceed
90 days for a loan made for a regular semester or long summer
session or over a proportionately shorter period for loans made for
a six-week summer session;
             (2)  the loan must be evidenced by a written or
electronic agreement providing for one of the following:
                   (A)  [promissory note that bears] interest on the
loan at a rate of not more than five percent per year; or
                   (B)  an origination fee of not more than 1.25
percent of the amount of the loan; and
             (3)  the maximum loan amount per student may not be
greater than an amount equal to the tuition and mandatory
[required] fees for the courses in which the student is actually
enrolling.
             [(3)  the maximum loan amount per student may not be
less than an amount equal to the tuition and required fees for the
courses in which the student is actually enrolling, unless the
institution determines that a lower amount would be in the best
interest of the student.]
       SECTION 3.  Section 56.053, Education Code, is amended by
adding Subsection (c) to read as follows:
       (c)  The maximum loan amount established under Subsection
(a)(3) does not entitle a student to a loan in that amount, and an
institution may lend the student an amount that is less than the
maximum amount if the institution determines that a lower amount is
in the best interest of the student.
       SECTION 4.  (a)  The change in law made by this Act applies
to payment of tuition and fees and to emergency student loans for an
academic period beginning with the 2007 fall semester unless this
Act takes effect after July 1, 2007, in which event the change in
law applies beginning with the 2008 spring semester.
       (b)  Payment of tuition and fees and emergency student loans
for an academic period before the semester provided by Subsection
(a) of this section are covered by the applicable law in effect
before the effective date of this Act, and the former law is
continued in effect for that purpose.
       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.