By Swinford                                           H.B. No. 2456

         Substitute the following for H.B. No. 2456:

         By Rangel                                         C.S.H.B. No. 2456

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to state funding for and tuition charged to certain

 1-3     undergraduate students who accumulate excessive credit hours and to

 1-4     the number of credit hours required in a degree program.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter C, Chapter 61, Education Code, is

 1-7     amended by adding Section 61.0595 to read as follows:

 1-8           Sec. 61.0595.  FUNDING FOR CERTAIN EXCESS UNDERGRADUATE

 1-9     CREDIT HOURS.  (a)  In the formulas established under Section

1-10     61.059, the board may not include funding for semester credit hours

1-11     attempted by a resident undergraduate student who before the

1-12     semester or other academic session begins has previously attempted

1-13     170 or more semester credit hours for courses taken at any

1-14     institution of higher education while classified as a resident

1-15     student for tuition purposes.

1-16           (b)  Subsection (a) does not apply to a student enrolled in:

1-17                 (1)  two or more baccalaureate degree programs at the

1-18     same time;

1-19                 (2)  a double major degree program that requires 130 or

1-20     more semester credits for completion; or

1-21                 (3)  a health professional baccalaureate degree

1-22     program.

1-23           (c)  For a student enrolled in a baccalaureate program under

1-24     Section 51.931, semester credit hours earned by the student 10 or

 2-1     more years before the date the student begins the new degree

 2-2     program under Section 51.931 are not counted for purposes of

 2-3     determining whether the student has previously earned the number of

 2-4     semester credit hours specified by Subsection (a).

 2-5           (d)  The following are not counted for purposes of

 2-6     determining whether the student has previously earned the number of

 2-7     semester credit hours specified by Subsection (a):

 2-8                 (1)  semester credit hours earned by the student before

 2-9     receiving a baccalaureate degree that has previously been awarded

2-10     to the student;

2-11                 (2)  semester credit hours earned by the student by

2-12     examination or under any other procedure by which credit is earned

2-13     without registering for a course for which tuition is charged; and

2-14                 (3)  credit for a remedial education course or another

2-15     course that does not count toward a degree program at the

2-16     institution.

2-17                 (4)  semester credit hours earned by the student at a

2-18     private institution or an out-of-state institution.

2-19           SECTION 2.  Subchapter B, Chapter 54, Education Code, is

2-20     amended by adding Section 54.068 to read as follows:

2-21           Sec. 54.068.  TUITION FOR EXCESSIVE UNDERGRADUATE HOURS.  An

2-22     institution of higher education may charge a resident student

2-23     tuition at a higher rate than the rate charged to other resident

2-24     students, not to exceed the rate charged to nonresident students,

2-25     for a course for which Section 61.0595 requires the Texas Higher

2-26     Education Coordinating Board to exclude funding for the semester

2-27     credit hours for which the student registers if the student has

 3-1     previously attempted 170 or more semester credit hours.

 3-2           SECTION 3.  Subchapter A, Chapter 54, Education Code, is

 3-3     amended by adding Section 54.0065 to read as follows:

 3-4           Sec. 54.0065.  TUITION REBATE FOR CERTAIN UNDERGRADUATES.

 3-5     (a)  A qualified student is eligible for a rebate of a portion of

 3-6     the undergraduate tuition the student has paid if the student:

 3-7                 (1)  is awarded a baccalaureate degree from a general

 3-8     academic teaching institution; and

 3-9                 (2)  has attempted no more than six hours in excess of

3-10     the minimum number of semester credit hours required to complete

3-11     the degree, including transfer credits and course credit earned

3-12     exclusively by examination.

3-13           (b)  The amount of tuition to be rebated to a student under

3-14     this section is $1,000, unless the total amount of tuition paid by

3-15     the student to the institution of higher education awarding the

3-16     degree was less than $1,000, the student may qualify for a $1,000

3-17     rebate by providing the institution with proof of the total amount

3-18     of tuition paid to an institution of higher education.

3-19           (c)  A student who has transferred from another institution

3-20     of higher education shall provide the institution awarding the

3-21     degree an official transcript from each institution attended by the

3-22     student in order that the total number of hours attempted by the

3-23     student can be verified.

3-24           (d)  To qualify for a rebate under this section, the student

3-25     must have been a resident of this state and entitled to pay tuition

3-26     at at rate provided by this chapter for a resident student at all

3-27     times while pursuing the degree.

 4-1           (e)  All institutions of higher education shall notify each

 4-2     first-time freshman student of the tuition rebate program.

 4-3           (f)  The institution awarding the degree shall pay the rebate

 4-4     under this section from local funds.

 4-5           (g)  The legislature shall account in the General

 4-6     Appropriations Act for the rebates authorized by this section in a

 4-7     way that provides a corresponding increase in the general revenue

 4-8     funds appropriated to the institution.  It is the intent of the

 4-9     legislature that rebates authorized by this section shall be

4-10     financed by savings to the state resulting from reductions in the

4-11     number of courses taken by undergraduate students.

4-12           (h)  The Texas Higher Education Coordinating Board, in

4-13     consultation with the institutions of higher education, shall adopt

4-14     rules for the administration of this section.

4-15           SECTION 4.  Subchapter C, Chapter 61, Education Code, is

4-16     amended by adding Section 61.0551 to read as follows:

4-17           Sec. 61.0551.  CREDIT HOURS REQUIRED FOR DEGREE.  (a)  An

4-18     institution of higher education may not require a student to

4-19     complete more than 120 semester credit hours to complete a

4-20     baccalaureate degree program, except as otherwise provided by this

4-21     section.

4-22           (b)  The Board may permit an institution to require a student

4-23     to complete more than the number of semester credit hours permitted

4-24     by Subsection (a) to complete a baccalaureate degree program if the

4-25     institution establishes to the satisfaction of the board that the

4-26     requirement is reasonable considering the requirements for

4-27     comparable degree programs at other institutions, applicable

 5-1     accreditation standards, professional trends and licensing

 5-2     requirements in the field, and other relevant factors.  The board

 5-3     shall require an institution that receives approval of the semester

 5-4     credit hour requirement for a degree program under this subsection

 5-5     to reestablish the reasonableness of the requirement for that

 5-6     degree program every five years.

 5-7           (c)  Subsection (a) does not prohibit a student from

 5-8     completing more semester hours than required for the degree

 5-9     program.

5-10           (d)  Subsection (a) does not apply to a degree program in

5-11     existence on January 1, 1997, until September 1, 1999.  On and

5-12     after that date, every baccalaureate degree program at an

5-13     institution of higher education must comply with this section.

5-14           SECTION 5.  (a)  This Act takes effect September 1, 1997.

5-15           (b)  Section 54.068, Education Code, as added by this Act,

5-16     applies beginning with tuition charged for the 1997 fall semester.

5-17           (c)  Section 54.0065, Education Code, as added by this Act

5-18     applies only to students completing a baccalaureate degree program

5-19     on or after September 1, 1997.

5-20           (d)  Section 61.059, Education Code, as added by this Act,

5-21     applies to funding beginning with the 1997 fall semester.

5-22           SECTION 6.  The importance of this legislation and the

5-23     crowded condition of the calendars in both houses create an

5-24     emergency and an imperative public necessity that the

5-25     constitutional rule requiring bills to be read on three several

5-26     days in each house be suspended, and this rule is hereby suspended.