MMA C.S.S.B. 1485 75(R)    BILL ANALYSIS


HIGHER EDUCATION
C.S.S.B. 1485
By: Bivins (Swinford)
4-30-97
Committee Report (Substituted)

BACKGROUND 

A bachelor's degree generally requires 120 semester credit hours (SCH) of
course work over four years.  However, a recent nationwide survey by the
State System of Florida documented that the average number of SCH 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 (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.S.B. 1485 would eliminate formula funding for undergraduate students
who have attempted 170 or more SCH toward a degree without graduating.
C.S.S.B. 1485 allows institutions to charge a higher tuition rate for
students attempting 170 or more SCH and establishes a tuition rebate for
undergraduates who complete their degree with no more than 6 hours in
excess of the minimum required.  The measure also caps at 120 SCH the
number of SCH of course work an institution can require for a degree with
certain exemptions. 

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), Education Code]. 

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)  Prohibits the Texas Higher Education Coordinating Board (THECB) from
including in funding 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 a previously 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) A qualified
student eligible 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 freshman of the tuition
rebate program. 
(f) Requires awarding institutions to pay the rebate from local funds.
(g) Mandates the legislature to 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 a student to complete more than 120 SCH for 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. On and after that date, all baccalaureate degree
programs are required to 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 entering a baccalaureate degree program on or after September
1, 1997. 
(d) States that Section 61.0595, Education Code, as added, applies to
funding beginning with the 1997 fall semester. 

SECTION 6.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 1485 makes language changes that do not alter the intent of the
measure but are to match the content of the house version previously
reported from committee. 

C.S.S.B. 1485 simplifies Section 54.068 (increased tuition), as added, by
removing certain  exemptions from the original bill [Section 54.068 (b),
(c), (d), (e) and (f)] and moves Section 54.068 from SECTION 1 (original
bill) to SECTION 2 of the substitute. 

The provisions in Section 54.068 (b), (d), and (e) are included in the
committee substitute in Section 61.0595 (funding), a new section not
included in the original measure, as (b), (c) and (d) respectively.
Section 54.068 (e) of the original bill (now Section 61.0595(d), SECTION 1
of the committee substitute) is amended by deleting language relating to
SCH for which an institution cannot receive formula funding, and adds
three provisions which would explicitly exempt SCH from a previously
awarded degree [previously in Sec. 54.068(c)], SCH earned by examination
and SCH earned at a private or out-of-state institution. 

C.S.S.B. 1485 changes the word "earned" to "attempted" in several areas of
the measure. 

C.S.S.B. 1485 simplifies and further clarifies Section 54.0065(b), SECTION
3 (tuition rebate). 

C.S.S.B. 1485 deletes Subsection (n), Section 61.059, SECTION 3 (original
bill), which relates to funding for SCH above 170 and instead adds similar
language to Section 61.0595, SECTION 1 (committee substitute) which
further clarifies the application of the formula funding restriction.  

C.S.S.B. 1485 adds Section 61.0551 (SCH required), SECTION 4, which places
a 120 SCH cap on baccalaureate degree programs and requires all
institutions to comply by a certain date.  This was not included in the
original bill. 

C.S.S.B. 1485 adds effective dates for Section 61.0595, as added by the
committee substitute and inserts an effective date for the measure.  Also
deletes the specification of "first-time freshmen" from the effective date
for Section 54.068 and changes it to "students entering a baccalaureate
program" in the effective date for Section 54.0065.  Also changes the
effective date for Section 54.0065 to "on or after September 1, 1997,"
rather than "in or after the 1997 fall semester."