BILL ANALYSIS


                                                    C.S.H.B. 1792
                                              By: Junell (Bivins)
                                                          Finance
                                                          4-28-95
                            Senate Committee Report (Substituted)
BACKGROUND

Historically, Texas charges one of the lowest tuition rates in the
country at public institutions of higher education.  In fact, it is
often less expensive for a resident of another state to attend
school in Texas paying a nonresident tuition than to pay resident
tuition in his or her home state.  The tuition paid by nonresident
students attending Texas public colleges and universities do not
come close to defraying the entire cost of providing that
education.

PURPOSE

As proposed, C.S.H.B. 1792 raises tuition paid by non-Texas
residents to the average of the five most populous states,
excluding Texas.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 54.008, Education Code, by amending
Subsection (a) and adding Subsections (e), (f), and (g), as
follows:

     (a)  Requires the governing board of each institution of
     higher education (institution) to set tuition for graduate
     programs for that institution at a rate that is at least equal
     to that prescribed by Subchapter B of this chapter, but that
     is not more than twice the rate prescribed by Subchapter B of
     this chapter, except as provided by Subsection (f).
     
     (e)  Requires the legislature in an appropriations act to
     account for the increase in revenue attributable to the
     statutory tuition increases prescribed by Section 54.051(c)(2)
     and Section 54.0512(b) in a way that does not reduce the
     general revenue appropriations to that institution.
     
     (f)  Requires the governing board of an institution to set
     tuition for an optometry program at the institution at a rate
     that is at least equal to the rate prescribed by Subchapter B
     of this chapter but not more than three times the rate
     prescribed by Subchapter B of this chapter.
     
     (g)  Requires the governing board of an institution to set
     tuition for an undergraduate pharmacy program at the
     institution at a rate that is at least equal to the rate
     prescribed by Subchapter B of this chapter but not more than
     twice the rate prescribed by Subchapter B of this chapter.
     
SECTION 2. Amends Sections 54.051(a), (c), (d), and (i), Education
Code, as follows:

     (a)  Defines "coordinating board" and "medical and dental
     unit."  Makes a conforming change.
     
     (c)  Sets forth the tuition rate for a resident student at a
     general academic teaching institution.
     
     (d)  Provides that tuition for a nonresident student at a
     general academic teaching institution or medical and dental
     unit is an amount per semester credit hour equal to the
     average of the nonresident undergraduate tuition charged to a
     resident of this state at a public state university in each of
     the five most populous states other than this state, as
     computed by the Texas Higher Education Coordinating Board
     (coordinating board) under this subsection.  Requires the
     coordinating board to set the tuition rate provided by this
     subsection for each academic year and report that rate to each
     appropriate institution not later than January 1 of the
     calendar year in which the academic year begins, or as soon
     after that January 1 as practicable.  Requires the
     coordinating board to use the nonresident tuition rates for
     the other states in effect for the academic year in progress
     when the coordinating board makes the computation in computing
     the tuition rate.
     
     (i)  Sets forth tuition rates for resident and nonresident
     students registered at a law school.
     
     SECTION 3.     Amends Sections 54.0512(b) and (h), Education Code, as
follows:

     (b)  Provides that tuition for a resident student at an
     institution is the greater of $120, rather than $100, for each
     semester or 12-week summer session and $60, rather than $50,
     for each six-week summer term or specific amounts for specific
     years.
     
     (h)  Provides that this section expires January 1, 2002.
     
SECTION 4. Amends Section 54.060(b), Education Code, to provide
that the foreign student tuition fee prescribed in this chapter
does not apply to a foreign student who is a resident of a nation
situated adjacent to Texas, who registers in an institution, as
defined in Section 61.003(3) of this code, in a county immediately
adjacent to the nation in which the foreign student resides or who
registers in Texas A&M University--Kingsville, and, except as
provided by this subsection, who demonstrates a financial need
after the financial resources of the foreign student and the
student's family are considered.

SECTION 5. Amends Chapter 54B, Education Code, by adding Section
54.0601, as follows:

     Sec.  54.0601.  NONRESIDENT TUITION RATES AT CERTAIN
     INSTITUTIONS.  Authorizes the coordinating board to set a
     nonresident tuition rate that is lower than the nonresident
     tuition rate otherwise provided by this chapter on the written
     request of the governing board of a general academic teaching
     institution located not more than 100 miles from the boundary
     of this state with another state if the coordinating board
     determines that the lower rate is in the best interest of the
     institution and will not cause unreasonable harm to any other
     institution of higher education.
SECTION 6. Amends Section 54.064(a), Education Code, to provide
that a student who holds a competitive academic scholarship of at
least $500, rather than $200, for the academic year or summer for
which the student is enrolled and who is either a nonresident or a
citizen of a country other than the U.S. is entitled to pay the
fees and charges required of Texas residents.

SECTION 7. Amends Section 54.507, Education Code, by amending
Subsection (a) and by adding Subsections (d), (e), and (f) as
follows:

     (a)  Authorizes the board of regents of the Texas A&M
     University System (system) to levy and collect from each
     student at any institution which is a part of the system a
     compulsory group hospital and medical services fee not to
     exceed $75, rather than $25, for each regular semester and not
     to exceed $25, rather than $12.50, for each term of each
     summer session.
     
     (d)  Provides that the increase does not take effect unless
     the increase is approved by a majority vote of the students
     voting in an election held for that purpose if, in an academic
     year, the total compulsory fee charged under this section is
     more than 10 percent higher than the compulsory fee charged
     under this section for the previous academic year.
     
     (e)  Authorizes the board of the system, in lieu of an
     election, to hold a public meeting on the increase prior to
     its taking effect in which students have the opportunity to
     comment if, in an academic year, the total compulsory fee
     charged under this section is proposed to be increased by an
     amount less than 10 percent over that charged in the previous
     academic year.
     
     (f)  Requires an election under this section to also permit
     the students to vote on whether hospital and medical services
     should be provided to students at the institution by the
     institution or by a private entity.  Provides that the vote by
     the students on the responsibility for provision of hospital
     and medical services to students at the institution is not
     binding on the institution.
     
     SECTION 8.     Amends Chapter 54E, Education Code, by adding Section
54.5133, as follows:

     Sec.  54.5133.  MARTIN LUTHER KING, JR. STATUE FEE; THE
     UNIVERSITY OF TEXAS AT AUSTIN.  (a)  Authorizes the board of
     the University of Texas System to charge and collect from
     students registered at the University of Texas at Austin a fee
     of $1 for any semester or summer session.  Requires the fee to
     be used for funding the construction of a Martin Luther King,
     Jr. statue on the campus of the University of Texas at Austin,
     and to establish Martin Luther King, Jr. student scholarships.
     
     (b)  Requires any funds raised in excess of the cost of the
       construction of the Martin Luther King, Jr. statue to be
       used to establish Martin Luther King, Jr. student
       scholarships.
       
       (c)  Requires the fees collected to be deposited into the
       Martin Luther King, Jr. statue fee account for the purposes
       outlined in Subsections (a) and (b).
     SECTION 9.     Amends Section 54.524(a), Education Code, to authorize
the board of Texas Tech University to levy a regular fixed student
fee not to exceed $50, rather than $20, per student for each
semester of the long session and not to exceed $25, rather than
$10, per student for each term of the summer session, or any
fractional part thereof.  Authorizes the amount of the fee to be
changed at any time within the limits specified in order to provide
sufficient funds to support the center, but requires any increase
in the fee of more than 10 percent from one academic year to the
next to be approved by a majority vote of those students
participating in a general election called for that purpose or by
majority vote of the student government.

SECTION 10.    Amends Sections 54.538(a), (b), and (c), Education
Code, to make conforming  and nonsubstantive changes.

SECTION 11.    Amends Chapter 54E, Education Code, by adding
Section 54.542, as follows:

     Sec.  54.542.  FEES FOR CONTINUING EDUCATION COURSES.  (a) 
     Requires the governing board of an institution to charge a
     reasonable fee to each person registered in a continuing
     education course at the institution.  Requires the board to
     set the fee in an amount sufficient to permit the institution
     to recover the costs to the institution of providing the
     course.
     
     (b)  Provides that this section applies only to a course for
       which an institution does not collect tuition or receive
       formula funding, including an extension course,
       correspondence course, or other self-supporting course.
       
       (c)  Provides that Subchapters B and D do not apply to a fee
       charged under this section.
     SECTION 12.    Amends Section 55.16, Education Code, as follows:

     Sec.  55.16.  RENTALS, RATES, CHARGES, AND FEES.  (a)  Makes
     conforming changes.
     
     (b)  Prohibits a board from charging rentals, rates,
       charges, and fees under this section in a total amount per
       semester credit hour that exceeds the tuition rate per
       semester credit hour for a resident student at an
       institution under Chapter 54B, for the academic year in
       which the rentals, rates, charges, and fees are charged. 
       Provides that a board is not required to charge students
       enrolled in different degree programs at the institution the
       same rentals, rates, charges, and fees under this section.
       
       (c)  Authorizes a board that charges rentals, rates,
       charges, and fees under this section in a total amount that
       exceeds $12 per semester credit hour to use the revenue
       collected from the part of the rentals, rates, charges, and
       fees that exceeds that amount as it determines appropriate,
       considering the needs, demands, role, scope, and mission of,
       and subject to the laws governing, the institution and the
       university system, if any, of which it is a part, and may
       use the revenue collected at an institution that is a
       component of a university system for the benefit of another
       institution in the university system.
     SECTION 13.    Amends Section 61.059, Education Code, by adding
Subsection (m), to prohibit the Texas Higher Education Coordinating
Board (coordinating board) from including in a formula under this
section funding based on the number of nonresident students
enrolled at the institution in excess of 10 percent of the total
number of students enrolled at the institution for an institution
that charges a reduced nonresident tuition rate under Section
54.0601.

SECTION 14.    Amends Chapter 54D, Education Code, by adding
Section 54.212, as follows:

     Sec.  54.212.  TEXAS NATIONAL GUARD/ROTC STUDENTS.  (a) 
     Defines "exempt student," "exemption," "ROTC institution," and
     "tuition fees."
     
     (b)(1)  Requires the governing boards of ROTC institutions,
       for a period not to exceed four years, to exempt from the
       payment of tuition fees a student selected by the ROTC
       institution's selection committee to receive such exemption.
       
       (2)  Requires participating ROTC institutions to receive
         reimbursement for exempted tuition fees, lodging, and
         board charges and fees from appropriations made by the
         legislature.
       (c)  Requires a student selected to receive an exemption
       from tuition fees to be exempt from the ROTC institution's
       fees and charges for lodging and board for the first two
       years of enrollment.
       
       (d)  Requires a student who is selected to receive an
       exemption under Subsections (b) and (c) to be required to
       certain services.
       
       (e)(1)  Requires a maximum of 150 students to be selected
       each academic year to receive an exemption.  Requires the
       coordinating board, after consultation with representatives
       of the governing boards of ROTC institutions and the
       adjutant general, to formulate and prescribe a plan
       governing the selection of students desiring to qualify for
       exemption under this section and the allocation of the
       exemptions available to each ROTC institution.
       
       (2)  Requires the adjutant general and each participating
         ROTC institution to make special efforts to recruit
         students for the program that reflect the state's ethnic,
         gender, and racial diversity.
         
         (3)  Requires each ROTC institution to be allocated at
         least two exempt students each academic year.  Provides
         the maximum number of exempt students for each ROTC
         institution will be determined by the percentage of the
         institution's Army and Air Force Reserves Officers'
         Training Corps enrollment.  Requires percentages to be
         calculated during the fall semester of every odd-numbered
         year beginning September 1, 1995.  Requires the
         coordinating board to be informed by the ROTC institution
         of the number of excess exemptions and to allocate excess
         exemptions to ROTC institutions which have attained
         maximum recruiting percentages but have additional
         students who are qualified under Subsection (f) to receive
         the exemption in the event an ROTC institution does not
         recruit its maximum percentage of exempt students.
       (f)  Requires selection committees to be established at ROTC
       institutions to review applications of students who have
       applied for the exemption set forth in this section. 
       Requires selection of qualified students to be based on
       certain criteria.
       
       (g)  Requires exemption from tuition fees to be limited to
       four years, and exemption from lodging and board fees and
       charges to be limited to the first two years of enrollment
       at the institution during the student's enrollment at a ROTC
       institution, except in the case of an exempt student who is
       called into active military service under Section 431.111,
       Government Code.
       
       (h)(1)  Requires the student to be required to perform
       certain duties in the event a student fails to maintain
       exempt status as set forth in Subsection (d).
       
       (2)  Requires the student's option to be subject to
         approval by the selection committee of the student's ROTC
         institution.
SECTION 15.    Repealer:  Section 54.0511, Education Code (Cost of
Education).

SECTION 16.    Provides that the changes in law made by this Act
apply beginning with the 1995 fall semester.  Provides that the fee
authorized by Section 54.5133 expires on August 31, 1999.

SECTION 17.    (a)  Provides that this Act applies beginning with
tuition, fees, and other charges imposed for the 1995 fall
semester, except as provided by Subsections (b) and (d) of this
section.

     (b)  Provides that the change in law made by this Act to
     Section 54.064, Education Code, applies beginning with tuition
     charged for the fall semester of 1995, except that a student
     awarded a scholarship before September 1, 1995, for a semester
     or term of the 1995-1996 academic year that would have made
     the student eligible to pay resident tuition under Section
     54.064 as that section existed on January 1, 1995, is covered
     by Section 54.064 as that section existed on January 1, 1995,
     for each semester or term of the 1995-1996 academic year for
     which the student receives the scholarship.
     
     (c)  Requires the coordinating board to compute the
     nonresident tuition applicable to the 1995-1996 academic year
     under Section 54.051(d), Education Code, as amended by this
     Act, as soon as practicable after this Act takes effect. 
     Requires the coordinating board to use nonresident tuition
     rates for the other states in effect for the 1994-1995
     academic year in computing that tuition rate.
     
     (d)  Provides that the exemptions authorized by Section
     54.212, Education Code, as added by this Act, take effect
     beginning with the 1996-1997 academic year.  Provides that
     implementation of the exemption program authorized by Section
     54.212, Education Code, as added by this Act, is contingent
     upon appropriations being made by the legislature for the
     specified purposes of the program.
SECTION 18.    Emergency clause.
           Effective date:  upon passage.