By: Van de Putte S.B. No. 215

(In the Senate - Filed November 10, 2008; February 11, 2009, read first time and referred to Committee on Higher Education; April 20, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 5, Nays 0; April 20, 2009, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 215 By: Patrick

A BILL TO BE ENTITLED

AN ACT

relating to the sale of instructional materials to students of public institutions of higher education.

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

SECTION 1. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.949 to read as follows:

Sec. 51.949. FAIR TREATMENT OF INDEPENDENT BOOKSTORES. (a) In this section:

(1) "Institution of higher education" has the meaning assigned by Section 61.003.

(2) "Instructional materials" means any printed or computer-generated educational material, including textbooks, or any equipment or supplies that a student is required or recommended to use in connection with a course at an institution of higher education.

(3) "University-affiliated bookstore" means a store that sells instructional materials, regardless of whether the store is located on the campus of an institution of higher education, and that is operated by or with the approval of the institution through ownership or through a management, lease, rental, or similar agreement.

(b) This section does not apply to an institution of higher education with a university-affiliated bookstore if the bookstore is owned and operated by the institution.

(c) Each institution of higher education shall make available for public inspection through the Internet or in person a list of required or recommended instructional materials for a semester or other academic term at the same time the institution provides the list to the operator of a university-affiliated bookstore.

(d) An institution of higher education shall provide to a retailer or other provider of instructional materials that holds a sales tax permit issued to the provider under Subchapter F, Chapter 151, Tax Code, including the operator of a university-affiliated bookstore, a variety of opportunities to participate in any promotional activities related to the sale or repurchase of instructional materials to or from students of the institution. A provider of instructional materials, other than an operator of a university-affiliated bookstore, may conduct the promotional activities described by this subsection only during the following periods:

(1) during the week preceding each semester or summer term;

(2) during the first week of each semester or summer term;

(3) during any student orientation conducted by or for the institution; and

(4) during the two-week period preceding the last final examination administered during each semester or summer term.

(e) If sufficient space is not available for each provider of instructional materials, other than an operator of a university-affiliated bookstore, that holds a sales tax permit and that applies to participate in an activity described by Subsection (d), the institution shall provide the available space in the same order as those providers applied to participate in the activity.

(f) Subsections (d) and (e) do not permit any provider of instructional materials that is not an operator of a university-affiliated bookstore to sell or repurchase instructional materials on the campus of the institution.

(g) An institution of higher education may charge to a provider of instructional materials, other than an operator of a university-affiliated bookstore, a reasonable fee for participation in an activity described by Subsection (d).

(h) If an institution of higher education works with a university-affiliated bookstore to provide a method for the extension of credit or the ability of a student to charge or otherwise delay the payment of the costs of instructional materials, including the extension of credit under Section 51.929(b), the institution shall provide to any other provider of instructional materials to students of the institution that holds a sales tax permit issued to the provider under Subchapter F, Chapter 151, Tax Code, equal access and opportunity to use or develop the same or similar method of payment at a reasonable cost to that person.

(i) Subsection (h) does not restrict an institution of higher education from adopting or enforcing a policy that is necessary to ensure the institution's compliance with a rule or policy of the National Collegiate Athletic Association or of another organization governing intercollegiate athletic competition of which the institution is a member.

SECTION 2. (a) Section 51.949, Education Code, as added by this Act, applies only to a semester or term that begins on or after the effective date of this Act.

(b) Section 51.949, Education Code, as added by this Act, does not affect the terms of a contract entered into before the effective date of this Act, except that if the contract is renewed, modified, or extended on or after the effective date of this Act, Section 51.949 applies to the contract beginning on the date of renewal, modification, or extension.

(c) As soon as practicable on or after the effective date of this Act, each public institution of higher education to which Section 51.949, Education Code, as added by this Act, applies shall designate an officer or employee of the institution to ensure the institution's compliance with that section.

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, 2009.

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