By: Creighton S.B. No. 1092

(In the Senate - Filed March 5, 2021; March 18, 2021, read first time and referred to Committee on Higher Education; April 23, 2021, reported adversely, with favorable Committee Substitute by the following vote: Yeas 8, Nays 0; April 23, 2021, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1092 By: Creighton

A BILL TO BE ENTITLED

AN ACT

relating to the disclosure by public institutions of higher education of certain information regarding textbooks and digital courseware and certain charges assessed for those items.

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

SECTION 1. Subchapter I, Chapter 51, Education Code, is amended by adding Section 51.456 to read as follows:

Sec. 51.456. AUTOMATIC CHARGES FOR TEXTBOOKS OR DIGITAL COURSEWARE. (a) In this section:

(1) "Digital courseware" means a system of instructional content and software designed to support the delivery of all or part of a particular course. The term does not include a learning management platform or any other software system designed to provide support for courses generally.

(2) "Institution of higher education," notwithstanding Section 51.451, has the meaning assigned by Section 61.003.

(b) An institution of higher education shall disclose to a student enrolled at the institution as provided by this section an automatic charge for textbooks or access to digital courseware assessed by the institution or another entity to the student on the student's enrollment in a course, course section, or program or in the institution for the applicable semester or term, regardless of whether the charge is assessed on an opt-in, opt-out, or compulsory basis. This subsection does not apply to a charge assessed for a purchase initiated by the student separately from the enrollment process at the institution, such as the purchase of a textbook at a college bookstore that may be charged to the student's account at the institution.

(c) For a charge described by Subsection (b) that is assessed based on the cost of required or recommended textbooks or access to digital courseware for a certain course or course section in which the student is enrolled, the institution of higher education shall:

(1) in a prominent location in the institution's course schedule under Section 51.452, state or provide an Internet website link to:

(A) the full amount of the charge;

(B) if the charge is for a textbook in a primarily electronic format or for access to digital courseware, the terms under which the publisher of the textbook or digital courseware collects and uses student data obtained through a student's use of the textbook or digital courseware; and

(C) any provision that allows the student to opt in or opt out of the charge or the collection or use of the student's data; and

(2) itemize the charge separately from any other charges assessed for the course or course section in the institution's billing to the student.

(d) For a charge described by Subsection (b) that is assessed on the basis of the number of semester credit hours or the equivalent or the number of courses in which the student is enrolled or on any other basis not described by Subsection (c), the institution of higher education shall:

(1) except as provided by Subsection (e), include the amount of the charge in the institution's:

(A) tuition under Section 54.015; or

(B) incidental fees under Section 54.504; and

(2) in a prominent location in any written or electronic agreement authorizing the charge, disclose:

(A) if the charge is for a textbook in a primarily electronic format or for access to digital courseware, the terms under which the publisher of the textbook or digital courseware collects and uses student data obtained through a student's use of the textbook or digital courseware; and

(B) any provision that allows the student to opt in or opt out of the charge or the collection or use of the student's data.

(e) Notwithstanding Subsection (d)(1), an institution of higher education is not required to include the amount of a charge described by that subsection in the institution's tuition or incidental fees if the charge is assessed to a student only on an opt-in basis. For purposes of this subsection, a charge is not considered to be assessed on an opt-in basis if:

(1) the textbooks or access to digital courseware for which the charge is assessed is required for the student to earn the maximum possible grade for a course in which the student is enrolled; and

(2) for a charge for textbooks, the textbooks may only be legally obtained from the institution or certain vendors specified by the institution.

(f) An agreement between an institution of higher education and an entity under which the institution assesses on the entity's behalf or allows the entity to assess a charge described by Subsection (b) to students enrolled at the institution:

(1) may not provide for a quota, charge, or other penalty based on the number or percentage of:

(A) students to whom the charge is assessed; or

(B) courses or course sections for which the charge is assessed; and

(2) is public information under Chapter 552, Government Code.

(g) Any effort by an institution of higher education to reduce the cost of textbooks or access to digital courseware for students enrolled at the institution must also focus on maintaining the quality of education and protecting academic freedom.

(h) This section may not be construed to prohibit an institution of higher education from entering into an agreement with an entity under which a charge for textbooks or access to digital courseware is assessed to students enrolled at the institution on an opt-in or opt-out basis.

SECTION 2. Section 54.504, Education Code, is amended by adding Subsection (d) to read as follows:

(d) If a charge described by Section 51.456(b) is included as part of an institution of higher education's incidental fees under this section that are assessed to each student, or each undergraduate student, enrolled at the institution who does not opt out of the charge, the governing board of the institution shall include a description of the amount of the charge in any notice of the amount of the institution's tuition provided to current or prospective students, the parents of current or prospective students, or the public. The description must state or provide an Internet website link to any provision that allows a student to opt out of the charge.

SECTION 3. This Act applies beginning with the 2022 fall semester.

SECTION 4. This Act takes effect September 1, 2021.

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