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.