H.B. No. 1341

	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.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 1341 was passed by the House on April
	7, 2011, by the following vote:  Yeas 144, Nays 0, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 1341 was passed by the Senate on May
	24, 2011, by the following vote:  Yeas 31, Nays 0
	.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor