HBA-KMH H.B. 1114 76(R) BILL ANALYSIS C.S.H.B. 1114 By: Christian Higher Education 2/26/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, state law prohibits state-owned or state-leased retail stores from extending the credit of the state to the obligor (customer). However, the law does allow for the extension of credit against funds yet to be received which are held for a student by an institution of higher education. In some cases, institutions are using this provision to withhold funds from students by not issuing student loan funds until a date after school has commenced. Instead, some institutions issue a student a voucher, which can be used only at businesses operated by or for the institution. Since the voucher can be redeemed only at business operated by or for the institution, other providers of instructional materials (providers) are limited in their ability to provide materials for the students. Additionally, some institutions have failed to provide non-institutional businesses with timely and accurate information relating to the provision of materials or opportunities to reach students regarding the availability of materials C.S.H.B. 1114 requires institutions of higher learning to provide an equal opportunity to the extension of credit, use of a student charge or delayed payment for instructional materials to all providers. This bill also requires the institution to provide information related to instructional materials and opportunities to reach the students regarding available material equally to all providers. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter Z, Chapter 51, Education Code, by adding Section 51.960, as follows: Sec. 51.960. INFORMATION RELATING TO TEXTBOOKS. Defines "institution of higher education," "instruction materials," and "on-campus bookstore." Requires each institution of higher education (institution) before the start of each semester to prepare a list of each course to be offered at the institution including the name of the instructor, a description of the instructional materials required or recommended for the students, and the anticipated enrollment in the course. Requires an institution to furnish the above described list, and any information related to instructional materials provided by the institution to the on-campus bookstore (bookstore), on request of any person not later than one business day after the date of the request. Sets forth that an institution must provide to all providers of instructional material (providers) the same opportunity as a bookstore to participate in any programs related to reaching students, or the sale or repurchase of the materials. Prohibits an institution from charging a provider an amount greater than that charged to a bookstore for participation in the above described programs. Requires an institution to give all providers equal opportunity to the extension of credit, or the use of a student charge or delayed payment for instructional materials. SECTION 2. Requires each institution of higher education to designate an officer or employee of the institution to ensure the institution's compliance with Section 51.960, Education Code, as added by this Act, and provide notice to each known provider doing regular business with students of the institution of information relating to the method that the institution will use to comply with Section 51.960, Education Code, as added by this Act. SECTION 3. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1. Requires an institution which has been requested to provide the list prepared under Subsection (b) to provide it not later than one business day after the date of the request. SECTION 2. Makes no changes. SECTION 3. Makes no changes.