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A BILL TO BE ENTITLED
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AN ACT
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relating to a study by the Legislative Budget Board concerning the |
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long-term effects of regulating tuition rates and amounts charged |
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by public institutions of higher education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 322, Government Code, is amended by |
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adding Section 322.0166 to read as follows: |
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Sec. 322.0166. STUDY CONCERNING REGULATION OF TUITION. (a) |
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In this section, "institution of higher education" has the meaning |
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assigned by Section 61.003, Education Code. |
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(b) The board shall conduct a study to examine the long-term |
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costs, benefits, and other effects of any legislative action that |
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may be taken to regulate the rates and amounts of tuition charged by |
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institutions of higher education, including by repealing the |
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statutory authority of those institutions to establish tuition |
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rates as they determine appropriate. The study may explore all |
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topics relevant to the matter, but in assessing the effects of |
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regulation, the study must strive to strike a balance between |
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promoting the affordability and accessibility of higher education |
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in this state and the institutions' need for sufficient revenue to |
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maintain educational quality for students and competitiveness with |
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other institutions outside this state. In the study, the board |
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shall: |
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(1) recommend to the legislature an appropriate rate |
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or rates of tuition for institutions of higher education compared |
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to the rates currently established by the institutions; |
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(2) evaluate the potential effects of regulating |
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tuition rates and amounts on student access to higher education |
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opportunities in this state, including the effect on enrollment by |
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disadvantaged or underrepresented Texans, and the potential |
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effects on affordability, student financial aid, and student loan |
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debt; |
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(3) estimate the potential loss or gain of funding or |
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revenue by the institutions as a result of any repeal of the |
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existing statutory authority of those institutions to establish |
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tuition rates; and |
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(4) if the board projects that regulating tuition |
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rates and amounts would result in a loss of revenue under |
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Subdivision (3): |
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(A) identify any sources of funding or revenue, |
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such as institutional endowments, that would be available or |
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necessary to offset the projected decrease in revenue; and |
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(B) recommend a specific portion or amount of |
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endowment money that could be used to offset the reduced tuition |
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revenues. |
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(c) Not later than December 1, 2026, the board shall submit |
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to the governor, the lieutenant governor, the speaker of the house |
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of representatives, and the presiding officer of each standing |
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legislative committee having jurisdiction over higher education or |
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state appropriations a report on the results of the study and the |
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board's recommendations for legislative or other action. |
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(d) This section expires September 1, 2027. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |