HBA-EDN H.B. 2765 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2765 By: Brown, Fred Higher Education 3/26/2001 Introduced BACKGROUND AND PURPOSE 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. 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. ANALYSIS 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. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.