By: Walle (Senate Sponsor - Zaffirini) H.B. No. 1341
(In the Senate - Received from the House April 11, 2011;
April 26, 2011, read first time and referred to Committee on Higher
Education; May 19, 2011, reported favorably by the following vote:
Yeas 6, Nays 0; May 19, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the manner of payment of tuition and mandatory fees at
public institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 54.007, Education Code, is amended by
amending Subsections (a), (b), (b-1), (c), (d), (e), (f), and (g)
and adding Subsections (a-1) and (b-2) to read as follows:
(a) The governing board of each institution of higher
education shall provide for the payment of tuition and mandatory
fees for a semester or term of 10 weeks or longer [the fall and
spring semesters] through one of the following alternatives:
(1) [except as provided by Subsection (b-1),] full
payment of tuition and mandatory fees not later than the date
established by the institution for purposes of this subdivision [in
advance of the beginning of the semester]; or
(2) payment in installments under one or more payment
plan options that require the first payment to be made not later
than the date established by the institution for purposes of this
subdivision [in advance of the beginning of the semester and the
final payment to be made before the last day of the semester].
(a-1) In providing for the payment of tuition and mandatory
fees by installment under Subsection (a)(2), an institution of
higher education must also establish subsequent dates at periodic
intervals within the applicable semester or term by which
subsequent installment payments are due.
(b) For a term of less than 10 weeks, the [The] governing
board of each institution of higher education:
(1) shall provide for the payment of tuition and
mandatory fees by requiring [for a summer term through one of the
following alternatives:
[(1) except as provided by Subsection (b-1),] full
payment of tuition and mandatory fees not later than the date
established by the institution for purposes of this subdivision [in
advance of the beginning of the summer term]; and
(2) may provide for the payment of tuition and
mandatory fees by requiring payment in installments under one or
more payment plan options that require the first payment to be made
not later than the date established by the institution for purposes
of this subdivision [in advance of the beginning of the summer term
and the final payment to be made before the last day of the term; or
[(3) for a student enrolled for a summer term in a
public junior college, public technical institute, or public state
college, one-half payment of tuition and fees in advance of the
beginning of the summer term and the remaining amount in one or two
later payments to be made in the percentages and by the dates
determined by the governing board of the college or institute,
provided that the final payment must be made before the beginning of
the last week of the summer term].
(b-1) A date established by an institution of higher
education for purposes of Subsection (a)(1), (a)(2), (b)(1), or
(b)(2) may not be later than the date established by the Texas
Higher Education Coordinating Board for certifying student
enrollment for the semester or term for purposes of formula funding
[A student who owes a balance of tuition and fees as a result of a
change in the student's class schedule or who owes a balance of
tuition and fees of less than $100 after making an insufficient
payment of tuition and fees previously due shall pay the balance
owed not later than the next payment date established by the
governing board under a payment plan adopted under Subsection
(a)(2) or (b)(2), as applicable].
(b-2) An institution of higher education may collect on a
due date subsequent to a due date established under Subsection (a)
or (b):
(1) unpaid tuition and mandatory fee balances
resulting from an adjustment to a student's enrollment status or an
administrative action; or
(2) unpaid residual balances of tuition and mandatory
fees constituting less than five percent of the total amount of
tuition and mandatory fees charged to the student by the
institution for that semester or term.
(c) The governing board of an institution of higher
education may assess and collect incidental fees for students
utilizing the payment alternative authorized by Subsection (a)(2)
or (b)(2) [and the alternatives authorized by Subsection (b)] and
for students delinquent in payments. The fees must reasonably
reflect the cost to the institution of handling those payments.
(d) A student who fails to make a full payment of the
required amount of tuition and mandatory fees, including any
incidental fees, by the applicable due date under this section may
be prohibited from registering for classes until full payment is
made. A student who fails to make full payment prior to the end of
the semester or [summer] term may be denied credit for the work done
that semester or term. The governing board of an institution of
higher education may not impose on a student any sanction
authorized by this subsection unless the governing board includes
in any written or electronic agreement authorized by the student
the following statement printed in bold-faced type or in capital
letters: "A STUDENT WHO FAILS TO MAKE FULL PAYMENT OF TUITION AND
MANDATORY FEES, INCLUDING ANY INCIDENTAL FEES, BY THE DUE DATE MAY
BE PROHIBITED FROM REGISTERING FOR CLASSES UNTIL FULL PAYMENT IS
MADE. A STUDENT WHO FAILS TO MAKE FULL PAYMENT PRIOR TO THE END OF
THE SEMESTER OR TERM MAY BE DENIED CREDIT FOR THE WORK DONE THAT
SEMESTER OR TERM." The governing board shall notify a student of any
delinquent tuition or fee payment as soon as practicable. The
institution's records may be adjusted to reflect the student's
failure to have properly enrolled for that semester or term.
(e) In addition to other payment alternatives provided by
this section, the governing board of a medical and dental unit or of
a general academic teaching institution with a department or
college of veterinary medicine may provide for the payment of
tuition and mandatory fees at the unit or at the department or
college of veterinary medicine during any academic year through a
one-fourth payment of tuition and mandatory fees in advance of the
beginning of the year and subsequent one-fourth payments of tuition
and mandatory fees to be made at periods designated by the governing
board. Subsection (b) [of this section] applies to tuition and
mandatory fee payments under this subsection. In this subsection,
"general academic teaching institution" and "medical and dental
unit" have the meanings assigned by Section 61.003 [of this code].
(f) A student may elect to pay the tuition and mandatory
fees of an institution of higher education by installment under
this section regardless of whether the student intends to apply a
financial aid award administered by the institution toward the
tuition and mandatory fees, except that a student whose financial
aid award or awards are available to cover the total amount of
tuition and mandatory fees may not pay by installment under this
section. On receipt of notice of a student's election to pay
tuition and mandatory fees by installment, the governing board of
the institution shall apply any financial aid award administered
for the student toward the amount of tuition and mandatory fees due
for that semester or term [summer session] until the tuition and
mandatory fees are paid in full and shall immediately release any
remaining amount of the award to the student, except that the
institution is not required to apply the award or awards toward the
total amount of tuition and mandatory fees in exigent circumstances
as determined by the institution.
(g) The governing board of an institution of higher
education shall require a student who elects to pay tuition and
mandatory fees by installment under this section to enter into a
written or electronic agreement reflecting the terms and conditions
required by this section for the installment plan provided for the
student by the governing board.
SECTION 2. Sections 54.0071(a), (b), (c), and (e),
Education Code, are amended to read as follows:
(a) The governing board of an institution of higher
education may postpone the due date for the payment of all or part
of the tuition and mandatory fees for a student for a semester or
term [summer session] in which the student will receive one or more
delayed financial aid awards if:
(1) the student has not received the awards by the
regular due date for payment of the tuition and mandatory fees; and
(2) the student agrees to assign to the institution a
portion of the awards equal to the amount of tuition and mandatory
fees for which the due date is postponed.
(b) A postponed due date under Subsection (a) applies only
to the portion of tuition and mandatory fees to be covered by the
student's delayed financial aid awards. When the financial aid
awards become available, a governing board that postpones a due
date under this section shall apply the awards toward the amount of
tuition and mandatory fees due and immediately release any
remaining amount of the awards to the student.
(c) If after the due date for a student's tuition and
mandatory fees is postponed under this section the student becomes
ineligible to receive one or more of the delayed financial aid
awards, or the amount awarded is less than the amount of tuition and
mandatory fees due, the governing board shall provide the student a
reasonable period, not to exceed 30 days, to pay the unpaid amount
of tuition and mandatory fees. The board may deny a student credit
for work done in the semester or term [summer session] if the
student fails to pay the tuition and mandatory fees by the end of
that period.
(e) If a student with delayed financial aid awards has
elected to pay tuition and mandatory fees by installment as
permitted by Section 54.007 and if the governing board elects to
postpone the due date for the student's tuition and mandatory fees
as authorized by this section, the governing board in the manner
provided by this section shall postpone the due date for each
installment payment that becomes due before the student receives
the awards.
SECTION 3. The changes in law made by this Act apply
beginning with the payment of tuition and fees at a public
institution of higher education for the 2011 fall semester.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.
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