HBA-KMH S.B. 732 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 732 By: Harris Higher Education 4/1/1999 Engrossed BACKGROUND AND PURPOSE Currently, the city of Arlington is the only city in Texas with a population of more than 250,000 that is located in a county with a population of more than 1.1 million in which there are at least two cities with a population of more than 250,000. The Arlington Sports Facilities Development Authority, Inc., was established to create The Ballpark at Arlington which is financed through a sales tax levy, approved by Arlington voters prior to the 1991 legislative session. Seven members of the Arlington city council were appointed to serve on the Arlington Sports Facilities Development Authority, Inc. In an effort to ensure that an intercollegiate athletics fee, to be approved by University of Texas at Arlington students, does not interfere with the city's ability to repay bonds in the future the Arlington city council wants to have final approval of any such fee. S.B. 732 authorizes the University of Texas at Arlington, the only such entity for which this bill currently applies, to impose an intercollegiate athletics fee only with the approval of the Arlington city council. This bill authorizes the Arlington city council to approve the fees only if it will not interfere with the repayment of bonds or other obligations. 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 Article 5190.6, V.T.C.S. (Development Corporation Act of 1979), by adding Subsection (o), as follows: (o) Provides that this subsection applies only to a city with a population of more than 250,000 that is located in a county with a population of more than 1.1 million in which there are at least two municipalities with a population of more than 250,000. _Authorizes the governing board of a general academic teaching institution (institution), as defined by Section 61.003 (Definitions), Education Code, that is located in a city to which this subsection applies that has created a corporation under this article that is governed by this section to impose a mandatory intercollegiate athletics fee on each student at the institution with the approval of the governing body of the city. _Authorizes the governing body of the city to approve the imposition of the fee only if the governing body finds that the operation of any facility at the institution to be financed directly or indirectly with revenue from the fee will not have a seriously detrimental effect on the ability of the corporation to raise revenue to pay the premium of or interest on outstanding bonds or other obligations issued by the corporation. _Authorizes the governing board of the institution to impose the fee without additional approval, and prohibits the governing body of the city from withdrawing or revoking its approval, once approved. _Prohibits the amount of the fee from exceeding $7.75 per semester credit hour for each regular semester, unless increased as provided by this subsection. _Prohibits the fee from being imposed unless approved by a majority vote of the students participating in a general student election held for that purpose. _Authorizes the amount of the fee per semester credit hour to be increased from one academic year to the next only if approved by a majority vote of the students participating in a general student election held for that purpose or, if the amount of the increase does not exceed five percent, by the legislative body of the student government of the institution. _Authorizes the governing board of the institution to prorate the amount of the fee for a summer session. _Prohibits the fee imposed under this subsection from being considered in determining the maximum student services fees that may be imposed under Section 54.503 (Student Services Fees), Education Code. _Authorizes the governing board to impose the fee without calling an additional student election, if a mandatory intercollegiate athletic fee in an amount within the limit provided by this subsection was approved by a majority vote of the students participating in a general student election at the institution no more than two years before the effective date of this subsection. SECTION 2. Makes this Act prospective beginning with the 1999 fall semester. SECTION 3. Emergency clause. Effective date: upon passage.