By:  Bivins                                  S.B. No. 1485

         97S0755/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the tuition charged to certain students at public

 1-2     institutions of higher education and to state funding related to

 1-3     those students.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter B, Chapter 54, Education Code, is

 1-6     amended by adding Section 54.068 to read as follows:

 1-7           Sec. 54.068.  INCREASED TUITION FOR CERTAIN RESIDENT

 1-8     UNDERGRADUATE STUDENTS.  (a)  For a student enrolled in a

 1-9     baccalaureate program at an institution of higher education who is

1-10     otherwise entitled to pay tuition at the rate provided by this

1-11     chapter for a resident student, the governing board of the

1-12     institution may charge tuition at the rate charged to nonresident

1-13     students for any course for which the student registers if the

1-14     student has previously earned 170 or more semester credit hours for

1-15     courses taken as an undergraduate student at any institution of

1-16     higher education.

1-17           (b)  Subsection (a) does not apply to a student enrolled in:

1-18                 (1)  two or more baccalaureate degree programs at the

1-19     same time;

1-20                 (2)  a double major degree program that requires 130 or

1-21     more semester credits for completion; or

1-22                 (3)  a health professional baccalaureate degree program

1-23     at a medical or dental unit as defined in Section 61.003.

 2-1           (c)  For a student admitted to a baccalaureate degree program

 2-2     who begins that program at least two years after being awarded a

 2-3     previous baccalaureate degree by an institution of higher education

 2-4     in a different major, semester credit hours earned by the student

 2-5     while enrolled in the previous baccalaureate degree program are not

 2-6     counted for purposes of determining whether the student has

 2-7     previously earned the number of semester credit hours specified by

 2-8     Subsection (a).

 2-9           (d)  For a student enrolled in a baccalaureate program under

2-10     Section 51.931, semester credit hours earned by the student 10 or

2-11     more years before the date the student begins the new degree

2-12     program under Section 51.931 are not counted for purposes of

2-13     determining whether the student has previously earned the number of

2-14     semester credit hours specified by Subsection (a).

2-15           (e)  The following semester credit hours are not counted for

2-16     purposes of determining whether the student has previously earned

2-17     the number of semester credit hours specified by Subsection (a):

2-18                 (1)  semester credit hours for which the institution

2-19     may not receive funding under the formulas established under

2-20     Section 61.059; or

2-21                 (2)  credit for remedial education courses or any other

2-22     courses that do not count toward a degree program at the

2-23     institution.

2-24           (f)  In consultation with institutions of higher education,

2-25     the Texas Higher Education Coordinating Board shall adopt rules to

 3-1     provide for the administration and uniform application of this

 3-2     section.

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

 3-4     amended by adding Section 54.0065 to read as follows:

 3-5           Sec. 54.0065.  TUITION REBATE FOR CERTAIN UNDERGRADUATES.

 3-6     (a)  A qualified student is eligible for a rebate of a portion of

 3-7     the undergraduate tuition the student has paid if the student:

 3-8                 (1)  is awarded a baccalaureate degree from a general

 3-9     academic teaching institution; and

3-10                 (2)  has attempted no more than six hours in excess of

3-11     the minimum number of semester credit hours required to complete

3-12     the degree, including transfer credits and course credit earned

3-13     exclusively by examination.

3-14           (b)  The amount of tuition to be rebated to a student under

3-15     this section is $1,000, unless the total amount of tuition paid by

3-16     the student to the institution of higher education awarding the

3-17     degree was less than $1,000, in which event the amount of tuition

3-18     to be rebated is an amount equal to the amount of tuition paid by

3-19     the student.  If the student has paid the institution awarding the

3-20     degree less than $1,000, the student may qualify for a $1,000

3-21     rebate by providing the institution with proof of the total amount

3-22     of tuition paid to an institution of higher education.

3-23           (c)  A student who has transferred from another institution

3-24     of higher education shall provide the institution awarding the

3-25     degree an official transcript from each institution attended by the

 4-1     student in order that the total number of hours attempted by the

 4-2     student can be verified.

 4-3           (d)  To qualify for a rebate under this section, the student

 4-4     must have been a resident of this state and entitled to pay tuition

 4-5     at the rate provided by this chapter for a resident student at all

 4-6     times while pursuing the degree.

 4-7           (e)  All institutions of higher education shall notify each

 4-8     first-time freshman student of the tuition rebate program.

 4-9           (f)  The institution awarding the degree shall pay the rebate

4-10     under this section from local funds.

4-11           (g)  The legislature shall account in the General

4-12     Appropriations Act for the rebates authorized by this section in a

4-13     way that provides a corresponding increase in the general revenue

4-14     funds appropriated to the institution.  It is the intent of the

4-15     legislature that rebates authorized by this section shall be

4-16     financed by savings to the state resulting from reductions in the

4-17     number of courses taken by undergraduate students.

4-18           (h)  The Texas Higher Education Coordinating Board, in

4-19     consultation with the institutions of higher education, shall adopt

4-20     rules for the administration of this section.

4-21           SECTION 3.  Section 61.059, Education Code, is amended by

4-22     adding Subsection (n) to read as follows:

4-23           (n)  The board may not include in any formula under this

4-24     section funding based on undergraduate resident students who have

4-25     earned a total of 170 or more semester credit hours for courses

 5-1     taken as an undergraduate student at any institution of higher

 5-2     education if the institution is entitled to charge tuition to such

 5-3     students at the rate charged to nonresident students under Section

 5-4     54.068.

 5-5           SECTION 4.  (a)  Section 54.068, Education Code, as added by

 5-6     this Act, applies beginning with tuition charged for the 1997 fall

 5-7     semester.

 5-8           (b)  Section 54.0065, Education Code, as added by this Act,

 5-9     applies only to students completing a baccalaureate degree program

5-10     on or after September 1, 1997.

5-11           (c)  Subsection (n), Section 61.059, Education Code, as added

5-12     by this Act, applies to funding beginning with the 1997 fall

5-13     semester.

5-14           SECTION 5.  The importance of this legislation and the

5-15     crowded condition of the calendars in both houses create an

5-16     emergency and an imperative public necessity that the

5-17     constitutional rule requiring bills to be read on three several

5-18     days in each house be suspended, and this rule is hereby suspended,

5-19     and that this Act take effect and be in force from and after its

5-20     passage, and it is so enacted.