MMA C.S.H.B. 2456 75(R)BILL ANALYSIS HIGHER EDUCATION C.S.H.B. 2456 By: Swinford 4-4-97 Committee Report (Substituted) BACKGROUND A bachelor's degree generally requires 120 semester hours of course work over four years. However, a recent nationwide survey by the State System of Florida documented that the average number of hours for a degree has been increasing. The longer a student remains in college, the less of a return on the state's investment; classroom space becomes more limited for prospective students, and the cost increases for students and parents. By limiting the number of funded undergraduate semester credit hours (SCH) to 170 the state would save approximately $4.5 million in general revenue funds for each fiscal year starting in 1999. PURPOSE C.S.H.B. 2456 would eliminate formula funding for undergraduate students who have attempted 170 or more SCH toward a degree without graduating. C.S.H.B. 2456 allows institutions to charge a higher tuition rate for students attempting 170 SCH or more and establishes a tuition rebate for undergraduates who complete their degree with no more than 6 hours in excess of the minimum required. RULEMAKING AUTHORITY It is the committee's opinion that this bill does expressly grant additional rulemaking authority to the Texas Higher Education Coordinating Board in SECTION 3 [Sec. 54.0065 (h)]. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 61, Education Code, by adding Sec. 61.0595 to read as follows: Sec. 61.0595. FUNDING FOR CERTAIN EXCESS UNDERGRADUATE CREDIT HOURS. (a) Requires that the Texas Higher Education Coordinating Board (THECB) not include funding for SCH attempted by a resident undergraduate student who had previously attempted 170 or more SCH for courses taken at an institution while classified as a resident student for tuition purposes in the formulas established under Section 61.059. (b) Exempts from Subsection (a) a student enrolled in: (1) two or more concurrent baccalaureate degree programs; (2) a double major that requires 130 SCH or more; or (3) a health professional baccalaureate degree program. (c) Exempts a student from Subsection (a) if the SCH were earned ten or more years before beginning a new degree program under Section 51.931. (d) States the following are not counted for purposes of determining previously earned SCH specified by Subsection (a): (1) SCH earned for an already awarded baccalaureate degree; (2) SCH earned by examination or other procedure not involving the registration of a course; (3) credit for remedial education or other courses not counted toward a degree program; and (4) SCH earned at a private or out-of-state institution. SECTION 2. Amends Subchapter B, Chapter 54, Education Code, by adding Sec. 54.068 to read as follows: Sec. 54.068. TUITION FOR EXCESSIVE UNDERGRADUATE HOURS. Authorizes an institution to charge a resident student a higher tuition rate, not to exceed nonresident tuition, for courses beyond 170 SCH. SECTION 3. Amends Subchapter A, Chapter 54, Education Code, by adding Section 54.0065, to read as follows: Sec. 54.0065. TUITION REBATE FOR CERTAIN UNDERGRADUATES. (a) An eligible student for a rebate must: (1) be awarded a baccalaureate degree; and (2) have attempted no more than six hours in excess of the minimum number of SCH required, including transfer and course credits by examination. (b) Establishes the tuition rebate to be $1,000, unless the student paid less than $1,000 in tuition, in which case they would have to prove the total amount of tuition paid in order to receive the full amount. (c) Requires transfer students to provide the awarding institution with a transcript from each institution attended in order to verify the number of hours attempted. (d) Requires a student to have been a resident of the state entitled to pay resident tuition rate at all times while pursuing the degree in order to be eligible to receive the rebate. (e) Requires institutions to notify first-time freshmen of the tuition rebate program. (f) Requires awarding institutions to pay the rebate from local funds. (g) Mandates that the legislature account for and pay the institutions for this rebate in the General Appropriations Act. States the legislative intent to be that rebates under this section be financed by savings resulting from reductions in the number of courses taken by undergraduate students. (h) Grants additional rulemaking authority to the THECB to administer this section. SECTION 4. Amends Subchapter C, Chapter 61, Education Code, by adding Sec. 61.0551, to read as follows: Sec. 61.0551. CREDIT HOURS REQUIRED FOR DEGREE. (a) Prohibits an institution from requiring that a student complete more than 120 SCH for completion of a baccalaureate program, except as otherwise provided in this section. (b) Authorizes THECB to permit an institution to require more than 120 SCH to complete a baccalaureate degree program if the institution shows reason as determined by THECB. Requires that institutions reestablish reasonableness of the requirement every five years. (c) States that Subsection (a) does not prohibit a student from completing more SCH than required for the degree program. (d) Exempts degree programs in existence as of January 1, 1997 until September 1, 1999. By September 1, 1999 all baccalaureate degree programs must comply with this section. SECTION 5. (a) Effective date: September 1, 1997. (b) States that Section 54.068, Education Code, as added, applies beginning with tuition charged for the 1997 fall semester. (c) States that Section 54.0065, Education Code, as added, applies only to students completing a baccalaureate degree program on or after September 1, 1997. (d) States that Section 61.059, Education Code, as added, applies to funding beginning with the 1997 fall semester. SECTION 6. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2456 in Sec. 61.0595 replaces the word "earned" with "attempted", changes subsection sequences and adds a new Subsection (b) that exempts students who are getting two baccalaureate degrees, two majors or is in a health professional program from the 170 or more SCH ceiling. Also, adds to Subsection (d) an exemption that SCH earned at a private institution or an out-of-state institution not be counted in determining the number of previously earned SCH specified by Subsection (a). C.S.H.B. 2456 adds a new SECTION to the bill (Section 54.0065) establishing guidelines for a $1,000 tuition rebate program for undergraduates who complete their degree within 6 hours of the minimum SCH required. Makes conforming sequence changes. C.S.H.B. 2456 deletes Section 61.0552 which required THECB to maintain an up-to-date inventory of the prerequisites required for each degree or certificate program at each institution of higher education other than a junior college. C.S.H.B. 2456, SECTION 5, also determines when certain Sections of the bill would be applicable and to what.