By Ogden S.B. No. 1703
75R2021 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to restructuring higher education tuition and fees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 51.009(c), Education Code, is amended to
1-5 read as follows:
1-6 (c) Each of the following shall be accounted for as
1-7 educational and general funds: net tuition, special course fees
1-8 charged under Sections 54.051(e) and (l), [Education Code,] lab
1-9 fees, student teaching fees, fees collected under Section 54.0025,
1-10 [hospital and clinic fees, organized activity fees,] proceeds from
1-11 the sale of educational and general equipment, and indirect cost
1-12 recovery fees.
1-13 SECTION 2. Section 54.001, Education Code, is amended to
1-14 read as follows:
1-15 Sec. 54.001. DEFINITIONS. In this chapter:
1-16 (1) "Institution of higher education" has the same
1-17 meaning as is assigned to it by Section 61.003 [of this code].
1-18 (2) "Fee" means an essential student education fee or
1-19 a discretionary student services fee collected by an institution of
1-20 higher education under Section 54.0025.
1-21 (3) [(2)] "Governing board" has the same meaning as is
1-22 assigned to it by Section 61.003 [of this code].
1-23 SECTION 3. Subchapter A, Chapter 54, Education Code, is
1-24 amended by adding Section 54.0025 to read as follows:
2-1 Sec. 54.0025. COMPOSITION OF TUITION AND FEES. (a) An
2-2 institution of higher education, except as permitted by other law,
2-3 may only collect from a student at the institution tuition,
2-4 essential student education fees, and discretionary student service
2-5 fees.
2-6 (b) Tuition is a student's part of the minimum amount of
2-7 money determined by the legislature to be necessary to operate the
2-8 essential academic programs of an institution, including the direct
2-9 cost of instruction and administration of the academic programs and
2-10 the operation of the infrastructure of the institution required to
2-11 operate the essential academic programs of the institution.
2-12 (c) Essential student education fees are the fees determined
2-13 by the governing board of an institution to be necessary to
2-14 supplement the total tuition collected from all students to support
2-15 the institution in complying with the institution's statutory or
2-16 constitutional mission or to maintain any necessary accreditation.
2-17 In adopting an essential student education fee, the governing board
2-18 must make a written determination that if the institution does not
2-19 charge the fee, the institution cannot accomplish its mission and
2-20 will lose any necessary accreditation. The total amount of
2-21 essential student education fees charged to a student may not
2-22 exceed 125 percent of the fee for resident tuition.
2-23 (d) Discretionary student services fees are fees relating to
2-24 services provided to students of the institution that are not
2-25 related to maintaining the academic quality or accreditation of an
2-26 institution. The adoption and amount of a discretionary student
2-27 services fee must be by a majority vote of the institution's
3-1 students participating in a general election called for that
3-2 purpose. A fee adopted under this section may include a group
3-3 hospital and medical services fee, medical services fee, student
3-4 recreation or recreational sport fee, shuttle bus or bus fee,
3-5 international education fee, statue fee, student union fee,
3-6 university center fee, or an art and performance center fee. The
3-7 total amount of discretionary student services fees charged to a
3-8 student may not exceed the amount of resident tuition.
3-9 (e) Intercollegiate athletics at an institution may only be
3-10 funded by a discretionary student services fee. A discretionary
3-11 student services fee that is designated for the funding of
3-12 intercollegiate athletics must be presented for approval separately
3-13 from each other discretionary student services fee. The issue for
3-14 approval must clearly state the uses and amount of the fee.
3-15 SECTION 4. Section 54.005, Education Code, is amended to
3-16 read as follows:
3-17 Sec. 54.005. RIGHT TO COLLECT OTHER [SPECIAL] FEES. The
3-18 provisions of this subchapter requiring the governing board of each
3-19 institution of higher education to collect tuition and fees do not
3-20 deprive the board of the right to collect special fees authorized
3-21 by law, fees for nonessential discretionary goods or services
3-22 provided for the convenience of students at the institution, or
3-23 fees that are fines for conduct that violates an institution's
3-24 disciplinary regulations.
3-25 SECTION 5. Sections 54.006(b) and (c), Education Code, are
3-26 amended to read as follows:
3-27 (b) A general academic teaching institution or medical and
4-1 dental unit shall refund to a student withdrawing from the
4-2 institution or unit an amount equal to the product of the amount of
4-3 tuition and essential student education [mandatory] fees collected
4-4 for each course in which the student is enrolled on the date the
4-5 student withdraws multiplied by the applicable percentage derived
4-6 from the following tables:
4-7 (1) if the student withdraws during a fall or spring
4-8 semester or comparable trimester:
4-9 (A) prior to the first class day 100 percent
4-10 (B) during the first five class days 80 percent
4-11 (C) during the second five class days 70 percent
4-12 (D) during the third five class days 50 percent
4-13 (E) during the fourth five class days 25 percent
4-14 (F) after the fourth five class days None; and
4-15 (2) if the student withdraws during a summer term:
4-16 (A) prior to the first class day 100 percent
4-17 (B) during the first, second, or
4-18 third class day 80 percent
4-19 (C) during the fourth, fifth, or
4-20 sixth class day 50 percent
4-21 (D) seventh day of class and
4-22 thereafter None.
4-23 (c) Separate withdrawal refund schedules may be established
4-24 for discretionary student services fees or other [optional] fees
4-25 that may be collected under Section 54.005 [such as intercollegiate
4-26 athletics, cultural entertainment, parking, and yearbooks].
4-27 SECTION 6. Subchapter D, Chapter 54, Education Code, is
5-1 amended by adding Section 54.2015 to read as follows:
5-2 Sec. 54.2015. EXEMPTION OF FEES. In this subchapter, unless
5-3 otherwise expressly stated, an exemption that waives tuition or
5-4 tuition fees waives tuition described in Section 54.0025 and an
5-5 exemption that waives fees or all fees waives any essential student
5-6 education fee described in Section 54.0025.
5-7 SECTION 7. Section 54.5031, Education Code, is amended to
5-8 read as follows:
5-9 Sec. 54.5031. STUDENT SERVICES FEE ADVISORY COMMITTEE. (a)
5-10 A student services fee advisory committee is established at each
5-11 institution of higher education [except The University of Texas at
5-12 Austin] to advise the governing board and administration of the
5-13 institution on the type, amount, and expenditure of discretionary
5-14 [compulsory fees for] student services fees [under Section 54.503
5-15 of this code].
5-16 (b) Each committee is composed of the following nine
5-17 members:
5-18 (1) five student members who are enrolled for not less
5-19 than six semester credit hours at the institution and who are
5-20 representative of all students enrolled at the institution,
5-21 selected under Subsection (c) of this section; and
5-22 (2) four members who are representative of the entire
5-23 institution, appointed by the president of the institution.
5-24 (c) If the institution has a student government, the student
5-25 government shall appoint three students to serve two-year terms on
5-26 the committee and two students to serve one-year terms on the
5-27 committee. If the institution does not have a student government,
6-1 the students enrolled at the institution shall elect three students
6-2 to serve two-year terms on the committee and two students to serve
6-3 one-year terms on the committee. A candidate for a position on the
6-4 committee must designate whether the position is for a one-year or
6-5 two-year term.
6-6 (d) A student member of the committee who withdraws from the
6-7 institution must resign from the committee.
6-8 (e) A vacancy in an appointive position on the committee
6-9 shall be filled for the unexpired portion of the term in the same
6-10 manner as the original appointment. A vacancy in an elective
6-11 position on the committee shall be filled for the unexpired portion
6-12 of the term by appointment by the president of the institution.
6-13 (f) The committee shall:
6-14 (1) study the type, amount, and expenditure of a
6-15 discretionary student services fee [compulsory fee under Section
6-16 54.503 of this code]; and
6-17 (2) meet with appropriate administrators of the
6-18 institution, submit a written report on the study under Subdivision
6-19 (1) of this subsection, and recommend the type, amount, and
6-20 expenditure of the [a compulsory] fee to be charged for the next
6-21 academic year.
6-22 (g) Before recommending the student services fee budget to
6-23 the governing board of the institution, the president of the
6-24 institution shall consider the report and recommendations of the
6-25 committee. If the president's recommendations to the governing
6-26 board are substantially different from the committee's
6-27 recommendations to the president, the administration of the
7-1 institution shall notify the committee not later than the last date
7-2 on which the committee may request an appearance at the board
7-3 meeting. On request of a member of the committee, the
7-4 administration of the institution shall provide the member with a
7-5 written report of the president's recommendations to the board.
7-6 SECTION 8. Section 54.504(a), Education Code, is amended to
7-7 read as follows:
7-8 (a) The governing board of an institution of higher
7-9 education may fix the rate of incidental fees to be paid to an
7-10 institution under its governance by students and prospective
7-11 students and may make rules for the collection of the fees and for
7-12 the distribution of the funds, such funds to be accounted for as
7-13 other designated funds. The rate of an incidental fee must
7-14 reasonably reflect the actual cost to the university of the
7-15 materials or services for which the fee is collected. In fixing
7-16 such rate, the governing board may consult with a student services
7-17 fee advisory committee which the governing board may establish if
7-18 such student committee does not presently exist.
7-19 SECTION 9. Section 54.601, Education Code, is amended to
7-20 read as follows:
7-21 Sec. 54.601. DEFINITIONS. In this subchapter:
7-22 (1) "Beneficiary" means a person who is entitled to
7-23 receive benefits under a prepaid tuition contract.
7-24 (2) "Board" means the Prepaid Higher Education Tuition
7-25 Board.
7-26 (3) "Estimated average private tuition and required
7-27 fees" means an estimated average of tuition and required fees to be
8-1 charged by private or independent institutions of higher education
8-2 as determined annually by the board.
8-3 (4) "Fund" means the Texas tomorrow fund.
8-4 (5) "Institution of higher education" has the meaning
8-5 assigned by Section 61.003.
8-6 (6) "Prepaid tuition contract" means a contract
8-7 entered into under this subchapter by the board and a purchaser to
8-8 provide for the payment of higher education tuition and required
8-9 fees of a beneficiary.
8-10 (7) "Private or independent institution of higher
8-11 education" has the meaning assigned by Section 61.003.
8-12 (8) "Program" means the prepaid higher education
8-13 tuition program.
8-14 (9) "Public junior college" has the meaning assigned
8-15 by Section 61.003.
8-16 (10) "Public senior college or university" has the
8-17 meaning assigned by Section 61.003.
8-18 (11) "Purchaser" means a person who is obligated to
8-19 make payments under a prepaid tuition contract.
8-20 (12) "Required fees" means essential student education
8-21 fees determined by the governing board of an institution of higher
8-22 education under Section 54.0025.
8-23 SECTION 10. Section 55.16, Education Code, is amended by
8-24 amending the heading of the section and Subsection (a) to read as
8-25 follows:
8-26 Sec. 55.16. BUILDING USE FEES CHARGED BY BOARD [RENTALS,
8-27 RATES, CHARGES, AND FEES]. (a) Each board shall be authorized to
9-1 fix and collect rentals, rates, charges, and fees from students and
9-2 others for the occupancy, services, use, and/or availability of all
9-3 or any of its property, buildings, structures, activities,
9-4 operations, or other facilities, in such amounts and in such manner
9-5 as may be determined by the board. The fee collected is an
9-6 essential student education fee adopted under Section 54.0025 [;
9-7 provided, however, that all student use fees shall be fixed and
9-8 collected in proportion to the number of semester credit hours for
9-9 which a student registers, and shall not exceed the amount
9-10 permitted by Subsection (b), except that those schools charging
9-11 more than $6 per semester hour as of May 1, 1975, shall not exceed
9-12 the amount being charged as of that date]. The board may waive all
9-13 or any part of any [such student use] fees in the case of any
9-14 student for whom the payment of the [such student use] fee would
9-15 cause an undue economic hardship, except that the number of such
9-16 students for whom such waivers are granted shall not exceed 5% of
9-17 the total enrollment; and further provided that nothing in this
9-18 section shall affect, limit, or impair any pledge, covenant, or
9-19 option made or reserved by the board with respect to any revenue
9-20 bonds outstanding as of the 1975 amendment to this section, issued
9-21 by the board pursuant to this chapter; and provided that hereafter
9-22 if bonds are issued pursuant to Section 55.17 of this code, to be
9-23 secured by a pledge of a limited or unlimited use fee, and if, at
9-24 the time of authorizing the issuance of the bonds, (1) the
9-25 estimated maximum amount per semester hour of such pledged use fee
9-26 (based on then current enrollment and conditions) during any future
9-27 semester necessary to provide for the payment of the principal of
10-1 and interest on the bonds when due, together with (2) the aggregate
10-2 amount of all use fees which were levied on a semester hour basis
10-3 for the then current semester to pay the principal of and interest
10-4 on all previously issued bonds, do not exceed the amount permitted
10-5 by Subsection (b), then such limited or unlimited use fee shall be
10-6 levied and collected when and to the extent required by the
10-7 resolution authorizing the issuance of the bonds in any amount
10-8 required to provide for the payment of the principal of and
10-9 interest on the bonds, regardless of any other provision of this
10-10 section or the limitations contained herein.
10-11 SECTION 11. Sections 55.17(a) and (b), Education Code, are
10-12 amended to read as follows:
10-13 (a) Each board may pledge all or any part of its revenues,
10-14 income, or receipts from such rentals, rates, charges, and/or fees,
10-15 or other resources to the payment of the bonds, including the
10-16 payment of principal, interest, and any other amounts required or
10-17 permitted in connection with the bonds. The pledged rentals,
10-18 rates, charges, and/or fees shall be fixed and collected in amounts
10-19 that will be at least sufficient, together with any other pledged
10-20 resources, to provide for all payments of principal, interest, and
10-21 any other amounts required in connection with the bonds and, to the
10-22 extent required by the resolution authorizing the issuance of the
10-23 bonds, to provide for the payment of expenses in connection with
10-24 the bonds and for the payment of operation, maintenance, and other
10-25 expenses in connection with the aforesaid property, buildings,
10-26 structures, activities, services, operations, or other facilities.
10-27 The institution may not pledge under this subchapter any fee for a
11-1 service provided under Section 54.0025 that is in excess of the
11-2 amount of money allowed to be collected under that section.
11-3 (b) Each board may establish and enforce parietal rules for
11-4 students and others, and enter into agreements regarding occupancy,
11-5 use, and availability of facilities, and the amounts and collection
11-6 of pledged revenues, income, receipts, rentals, rates, charges,
11-7 fees, or other resources, that will assure making all the required
11-8 payments and deposits. The institution may not pledge under this
11-9 subchapter any fee for a service provided under Section 54.0025
11-10 that is in excess of the amount of money allowed to be collected
11-11 under that section.
11-12 SECTION 12. Section 56.051, Education Code, is amended to
11-13 read as follows:
11-14 Sec. 56.051. EMERGENCY LOANS. (a) Each institution of
11-15 higher education may establish an emergency loan program under
11-16 which students are loaned money to pay tuition and required fees.
11-17 (b) In this subchapter, "required fees" means essential
11-18 student education fees adopted by the governing board of an
11-19 institution of higher education under Section 54.0025.
11-20 SECTION 13. Section 56.102, Education Code, is amended to
11-21 read as follows:
11-22 Sec. 56.102. PURPOSE. (a) The purpose of this subchapter
11-23 is to provide an eligible person a grant of money for tuition and
11-24 required fees to enable that person to attend an institution of
11-25 higher education.
11-26 (b) In this subchapter, "required fees" means essential
11-27 student education fees adopted by the governing board of an
12-1 institution of higher education under Section 54.0025.
12-2 SECTION 14. Sections 56.144(b) and (c), Education Code, are
12-3 amended to read as follows:
12-4 (b) Each semester the department shall distribute a
12-5 conditional grant to each student selected under the criteria
12-6 adopted under Subsection (a) on receipt of an enrollment report
12-7 from the institution enrolling the student and certification from
12-8 the institution of the amount of tuition and essential student
12-9 education fees for the student.
12-10 (c) The amount of a conditional grant is the sum of:
12-11 (1) the certified amount of tuition and essential
12-12 student education fees for the student; and
12-13 (2) a stipend for each whole calendar month in the
12-14 semester in an amount determined by the department based on
12-15 financial need.
12-16 SECTION 15. Section 61.809, Education Code, is amended by
12-17 amending Subsection (a) and adding Subsection (h) to read as
12-18 follows:
12-19 (a) The board shall award a scholarship for tuition and
12-20 compulsory fees or laboratory fees[, including laboratory and
12-21 building use fees], as provided by this section to a student:
12-22 (1) who has received a certificate of completion from
12-23 the board under Section 61.807;
12-24 (2) who, not later than the second anniversary of the
12-25 date that the student completes high school, enrolls at a public or
12-26 private institution of higher education in this state or an
12-27 out-of-state public or private institution of higher education; and
13-1 (3) who applies for the scholarship on a form provided
13-2 by the board.
13-3 (h) In this section, "compulsory fees" means essential
13-4 student education fees established under Section 54.0025 or fees
13-5 charged by a private institution equivalent to the essential
13-6 student education fees.
13-7 SECTION 16. Section 96.705, Education Code, is amended to
13-8 read as follows:
13-9 Sec. 96.705. APPLICATION OF OTHER LAW. All other provisions
13-10 of law, including provisions for fees under Section 54.0025
13-11 [student fees], applicable to institutions of the Texas State
13-12 University System apply to Lamar University and its educational
13-13 centers.
13-14 SECTION 17. Sections 54.503, 54.5061, 54.5062, 54.507,
13-15 54.508, 54.5081, 54.5085, 54.5089, 54.50891, 54.509, 54.510,
13-16 54.511, 54.512, 54.513, 54.5131, 54.5132, 54.5133, 54.514, 54.515,
13-17 54.516, 54.518, 54.519, 54.520, 54.521, 54.522, 54.523, 54.524,
13-18 54.525, 54.526, 54.527, 54.529, 54.530, 54.531, 54.532, 54.534,
13-19 54.535, 54.536, 54.537, 54.5371, 54.538, 54.539, 54.540, 54.541,
13-20 54.542, 54.543, and 54.544, Education Code, are repealed.
13-21 SECTION 18. (a) This Act takes effect beginning with the
13-22 fall semester of 1998.
13-23 (b) Not later than January 1, 1998, each institution of
13-24 higher education shall adopt a schedule for the amount of tuition
13-25 or fees to be charged for the 1998 fall semester under Section
13-26 54.0025, Education Code, as added by this Act.
13-27 (c) If the governing board of an institution of higher
14-1 education has pledged any tuition, fees, revenues, income,
14-2 receipts, or other resources of the board or institution to the
14-3 payment of principal and interest on any bonds or notes, the repeal
14-4 or amendment of a law by this Act does not affect any pledge or
14-5 covenants with respect to any such bonds or notes, and all such
14-6 pledges and covenants shall remain in full force and effect in
14-7 accordance with their terms and provisions, it being the intent of
14-8 the legislature that this Act shall not impair the ability of an
14-9 institution of higher education to satisfy obligations incurred in
14-10 respect to any bonds or notes issued by the institution. The
14-11 governing board may continue to charge any fee necessary to pay the
14-12 principal or interest on any bonds or notes affected by this
14-13 subsection. The fee shall be considered an essential student
14-14 education fee under Section 54.0025, Education Code, as added by
14-15 this Act.
14-16 (d) Nothing in this Act limits or impairs any pledge or
14-17 covenant made by the governing board of an institution of higher
14-18 education with respect to any bond or note issued before the
14-19 effective date of this Act.
14-20 SECTION 19. The importance of this legislation and the
14-21 crowded condition of the calendars in both houses create an
14-22 emergency and an imperative public necessity that the
14-23 constitutional rule requiring bills to be read on three several
14-24 days in each house be suspended, and this rule is hereby suspended.