BILL ANALYSIS C.S.H.B. 2467 By: Coleman 04-06-95 Committee Report (Substituted) BACKGROUND In Texas, the tuition rates for public universities are set by law. During the 1980's, the undergraduate rates increased by $2 per semester credit hour. In 1991, that increase was accelerated and will continue to be increased by $2 every year until it is capped at $32 per semester credit hour in 1996. Governing boards may increase graduate tuition up to twice the undergraduate rate. Such rates may vary from program to program and institution to institution. This differential tuition is retained by the institution. Nonresident tuition rates are set by the coordinating board based on the actual cost of education. A limited number of students may receive a waiver allowing them to pay in-state rates if they receive a competitive academic scholarship. PURPOSE H.B. 2467, as substituted increases the base amount that may be charged for law students; allows the optometry program, with authorization of the board, to increase rates up to three times the undergraduate rate; authorizes governing boards to set tuition for a pharmacy program; continues the current stair-step increase for undergraduate tuition at $2 per year until the year 2000 when it reaches $40 per semester credit hour; and raises the scholarship amount from $200 to $1000 for nonresident students to qualify for resident rates. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 54 A, Education Code, by amending Section 54.008 Subsection (a) and adding Subsections (e), (f) and (g) to read as follows: Sec. 54.008. TUITION RATE SET BY GOVERNING BOARD. (a) Except for Subsection (e), authorizes the governing board to set tuition for graduate programs to a rate that is at least equal to that prescribed by Subchapter B. (e) Authorizes the governing board to set rates for optometry programs at not more than triple undergraduates rates. (f) Allows governing boards to set tuition for a pharmacy program at a rate that is at least equal to the rate prescribed by Subchapter B but not more than twice the rate. (g) Provides that the legislature shall not reduce general revenue appropriations based on annual tuition increases under Section 54.0152. SECTION 2. Amends Chapter 54 B, Education Code, by amending Section 54.051 Subsection (i) to read as follows: Sec. 54.051. TUITION RATES. (i) Increases the base tuition for resident law school students from $60 to $75 per semester credit hour and for nonresidents from $150 to $200 per semester credit hour. SECTION 3. Amends Chapter 54 B, Education Code, Section 54.0512 (b) to read as follows: Sec. 54.0512. INTERIM TUITION RATES. (b) To continue stair-step increases for undergraduate tuition at $2 per semester credit hour per year until 2000-2001 academic year at $40 per semester credit hour. SECTION 4. Amends Chapter 54 B, Education Code, Section 54.064 Subsection (a) to read as follows: Sec. 54.064. SCHOLARSHIP STUDENT. (a) Increases competitive academic scholarships for certain nonresidents from $200 to $1000. SECTION 5. (a) Effective date: Section 1 and Section 2 of this Act would apply beginning the Fall, 1995. (b) Grandfather clause: a student awarded a scholarship before this change in law may still pay the charges as defined by Section 54.064, Education Code, when they receive the scholarship. SECTION 6. Emergency clause. COMPARISON OF SUBSTITUTE TO ORIGINAL The committee substitute switches Sections 1 and 2. In the substitute, section 1 amends Section 54.008 (f), Education Code, to read as follows: The governing board of an institution of higher education shall set tuition for a 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. The word "undergraduate" has been deleted from the original bill. In the substitute, section 1 amends Section 54.008, Education Code, by adding Subsection (g) to read as follows: The legislature in an appropriations act shall account for the increase in revenue attributable to the annual statutory tuition increases prescribed by Section 54.0512 (b) in a way that does not reduce the general revenue appropriation to that institution. In the substitute, section 4 amends Section 54.064, Education Code, by amending Subsection (a) as follows: The requirement for competitive academic scholarship tuition waivers for nonresidents is raised to $1000 instead of $500. The substitute clarifies that this Act will apply beginning in the fall semester of 1995. Recipients of a scholarship awarded before September 1, 1995, that would have made the student eligible to pay resident tuition under Section 54.064, are exempted. SUMMARY OF COMMITTEE ACTION H.B. 2467 was considered by the committee in a public hearing on March 28, 1995. The chair recognized Representative Garnet Coleman to explain the bill. The committee considered a complete substitute for the bill. Amendment #1 was offered to the substitute. Amendment #1 was adopted by a record vote of 4 ayes, 1 nay, 2 pnv, 2 absent. The committee reconsidered the previous vote and amendment #1 was adopted by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent. Amendment #2 was offered to the substitute. The amendment was adopted without objection by a non-record vote. The following persons testified neutrally on the bill: Dr. Alex Schilt; and Dr. Jerald W. Strickland. The chair recognized Representative Garnet Coleman to close. The bill was left pending. H.B. 2467 was considered by the committee in a public hearing on April 4, 1995. Amendment #3 was offered to the substitute. The amendment was adopted without objection by a non-record vote. The substitute as amended was adopted without objection by a non-record vote. The chair directed the staff to incorporate the amendments into the substitute. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.