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.