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."