Office of House Bill AnalysisH.B. 2765
By: Brown, Fred
Higher Education


Under current law, state-owned or state-leased retail stores are prohibited
from extending credit of the state to a 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 (institution).
In some instances, institutions are using this provision to withhold funds
from students by not issuing student loan funds until a date after school
has commenced and instead issuing vouchers, which can only be used at
businesses operated by or for the institution.  Since the voucher can be
redeemed only at businesses 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.
House Bill 2765 requires institutions to provide an equal opportunity for
all providers to the extension of credit, use of a student charge, or
delayed payment for instructional materials and to information related to
instructional materials and opportunities to reach students regarding
available materials.      


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. 


House Bill 2765 amends the Education Code to require 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.  The bill
sets forth provisions relating to such a list.  The bill provides that an
institution must provide to a retailer or other provider of instructional
materials (provider) the same opportunity as an on-campus bookstore to
participate in programs related to instructional materials for the
institution, receive mailing lists or address labels of students, or
advertise in any publication or other mass media product of the institution
and prohibits an institution from charging a provider an amount greater
than the amount charged the operator of an on-campus bookstore for these
activities.  If an institution provides 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 an extension of credit
for educational supplies which may be offset against undistributed grant or
loan funds, the institution is required to provide any provider with equal
access to the method of payment. 

H.B. 2765 requires each institution, as soon as practicable on or after the
effective date of the Act, to designate an officer or employee of the
institution to ensure compliance with these provisions and provide to each
known provider doing regular business with students of the institution
information relating to the method that the institution will use to comply
with these provisions. 


On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.