AN ACT

 1-1     relating to tuition and fees charged by public institutions of

 1-2     higher education, including the redesignation of certain fees as

 1-3     tuition.

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

 1-5                        ARTICLE 1.  TUITION AND FEES

 1-6           SECTION 1.01.  Subchapter B, Chapter 54, Education Code, is

 1-7     amended by adding Section 54.0513 to read as follows:

 1-8           Sec. 54.0513.  REDESIGNATION OF BUILDING USE FEE.  (a)  The

 1-9     building use fee previously authorized in Section 55.16 of this

1-10     code is redesignated as tuition.

1-11           (b)  In addition to amounts that a governing board of an

1-12     institution of higher education is authorized to charge as tuition

1-13     under this chapter, the governing board is authorized to charge as

1-14     tuition the following maximum amounts:

1-15                 (1)  $34 per semester credit hour for the 1997-1998

1-16     academic year;

1-17                 (2)  $36 per semester credit hour for the 1998-1999

1-18     academic year;

1-19                 (3)  $38 per semester credit hour for the 1999-2000

1-20     academic year; and

1-21                 (4)  $40 per semester credit hour for the 2000-2001

1-22     academic year and each academic year thereafter.

1-23           (c)  Amounts collected by an institution of higher education

 2-1     under this section are institutional funds as defined by Section

 2-2     51.009 of this code and shall be accounted for as designated funds.

 2-3     These funds shall not be accounted for in a general appropriations

 2-4     act in such a way as to reduce the general revenue appropriation to

 2-5     a particular institution.

 2-6           (d)  A governing board may waive all or part of the tuition

 2-7     charged to a student under this section if it finds that the

 2-8     payment of such tuition would cause an undue economic hardship on

 2-9     the student.

2-10           (e)  Section 56.033 of this code requiring certain percentage

2-11     amounts of tuition to be set aside for grants and scholarships does

2-12     not apply to tuition collected under this section.

2-13           (f)  A governing board of an institution of higher education

2-14     may continue to charge as tuition under this section the amount

2-15     that it charged as the building use fee at that institution in the

2-16     1996-1997 academic year without holding a public hearing, but may

2-17     not increase tuition under this section above that amount without

2-18     holding a public hearing.

2-19           SECTION 1.02.  Subsection (i), Section 54.051, Education

2-20     Code, is amended to read as follows:

2-21           (i)  Tuition for a resident student registered at a law

2-22     school is $80 [$75] per semester credit hour.  Tuition for a

2-23     nonresident student registered at a law school is the amount that

2-24     can be charged a nonresident graduate student under Subsection (d)

2-25     and Section 54.008 [$200 per semester credit hour].

 3-1           SECTION 1.03.  Subchapter D, Chapter 54, Education Code, is

 3-2     amended by adding Section 54.214 to read as follows:

 3-3           Sec. 54.214.  DISTANCE LEARNING OR OFF-CAMPUS COURSES.  The

 3-4     governing board of an institution of higher education may waive a

 3-5     fee it is authorized to charge if the board determines that:

 3-6                 (1)  a student is enrolled only in distance learning

 3-7     courses or other off-campus courses of the institution;

 3-8                 (2)  the student cannot reasonably be expected to use

 3-9     the activities, services, or facilities on which the fee is based;

3-10     and

3-11                 (3)  the waiver of the fee will not materially impair

3-12     the ability of the institution either to service any debt on which

3-13     the fee is based or to offer or operate the particular activity,

3-14     service, or facility supported by the fee.

3-15           SECTION 1.04.  Section 55.01, Education Code, is amended by

3-16     amending Subdivision (3) and adding Subdivision (4) to read as

3-17     follows:

3-18                 (3)  "Revenue funds" means the revenues, incomes,

3-19     receipts, rentals, rates, charges, fees, grants, and tuition levied

3-20     or collected from any public or private source by an institution of

3-21     higher education, including interest or other income from those

3-22     funds.

3-23                 (4)  "Bonds" means bonds, notes, or credit agreements a

3-24     board is authorized to enter into either by this title or by other

3-25     laws.

 4-1           SECTION 1.05.  Section 55.16, Education Code, is amended to

 4-2     read as follows:

 4-3           Sec. 55.16.  BOARD RESPONSIBILITY [RENTALS, RATES, CHARGES,

 4-4     AND FEES].  (a)  Each board shall be authorized to fix and collect

 4-5     rentals, rates, and charges[, and fees] from students and others

 4-6     for the occupancy, services, use, and/or availability of all or any

 4-7     of its property, buildings, structures, activities, operations, or

 4-8     other facilities, in such amounts and in such manner as may be

 4-9     determined by the board.  If [; provided, however, that all student

4-10     use fees shall be fixed and collected in proportion to the number

4-11     of semester credit hours for which a student registers, and shall

4-12     not exceed the amount permitted by Subsection (b), except that

4-13     those schools charging more than $6 per semester hour as of May 1,

4-14     1975, shall not exceed the amount being charged as of that date.

4-15     The board may waive all or any part of any such student use fees in

4-16     the case of any student for whom the payment of such student use

4-17     fee would cause an undue economic hardship, except that the number

4-18     of such students for whom such waivers are granted shall not exceed

4-19     5% of the total enrollment; and further provided that nothing in

4-20     this section shall affect, limit, or impair any pledge, covenant,

4-21     or option made or reserved by the board with respect to any revenue

4-22     bonds outstanding as of the 1975 amendment to this section, issued

4-23     by the board pursuant to this chapter; and provided that hereafter

4-24     if] bonds have been or are issued pursuant to [Section 55.17 of]

4-25     this title [code], or secured or to be secured by a pledge of part

 5-1     or all of the board's revenue funds [a limited or unlimited use

 5-2     fee], and if, at the time of authorizing the issuance of the bonds,

 5-3     (1) the estimated maximum amount per semester hour of such pledged

 5-4     revenue funds [use fee] (based on then current enrollment and

 5-5     conditions) during any future semester necessary to provide for the

 5-6     payment of the principal of and interest on the bonds when due,

 5-7     together with (2) the aggregate amount of all such pledged revenue

 5-8     funds [use fees] which were levied on a semester hour basis for the

 5-9     then current semester to pay the principal of and interest on all

5-10     previously issued bonds, do not exceed the amount permitted by this

5-11     title [Subsection (b)], then any necessary fees, tuition, rentals,

5-12     rates, or other charges constituting revenue funds [such limited or

5-13     unlimited use fee] shall be levied and collected when and to the

5-14     extent required by the resolution authorizing the issuance of the

5-15     bonds in any amount required to provide revenue funds sufficient

5-16     for the payment of the principal of and interest on the bonds,

5-17     regardless of any other provision or limitation provided by this

5-18     title [of this section or the limitations contained herein].

5-19           (b)  [A board may not charge rentals, rates, charges, and

5-20     fees under this section in a total amount per semester credit hour

5-21     that exceeds the tuition rate per semester credit hour for a

5-22     resident student at a general academic teaching institution under

5-23     Subchapter B, Chapter 54, for the academic year in which the

5-24     rentals, rates, charges, and fees are charged.]  A board is not

5-25     required to charge students enrolled in different degree programs

 6-1     at the institution the same rentals, rates, charges, and fees under

 6-2     this section.

 6-3           [(c)  A board that charges a rental, rate, charge, or fee

 6-4     under this section may use the revenue for any purpose at the

 6-5     institution at which the revenue is collected, subject to the laws

 6-6     governing the institution and the board.  This subsection does not

 6-7     decrease the authority of a board of regents to enter into pledges

 6-8     or covenants with respect to bonds, notes, or other obligations

 6-9     under law existing before the effective date of this subsection.]

6-10           [(d)  Before a board increases a rental, rate, charge, or fee

6-11     collected under this section at an institution under the direction,

6-12     management, and control of the board, the board or, if the board

6-13     directs, the chief executive officer of the institution must hold a

6-14     public hearing at the institution on the increase.]

6-15           SECTION 1.06.  Subsection (d), Section 55.17, Education Code,

6-16     is repealed.

6-17           SECTION 1.07.  Subchapter C, Chapter 61, Education Code, is

6-18     amended by adding Section 61.0595 to read as follows:

6-19           Sec. 61.0595.  FUNDING FOR CERTAIN EXCESS UNDERGRADUATE

6-20     CREDIT HOURS.  (a)  In the formulas established under Section

6-21     61.059, the board may not include funding for semester credit hours

6-22     earned by a resident undergraduate student who before the semester

6-23     or other academic session begins has previously attempted 170 or

6-24     more semester credit hours for courses taken at any institution of

6-25     higher education while classified as a resident student for tuition

 7-1     purposes.

 7-2           (b)  Subsection (a) does not apply to a student enrolled in:

 7-3                 (1)  two or more baccalaureate degree programs at the

 7-4     same time;

 7-5                 (2)  a double major degree program that requires 130 or

 7-6     more semester credits for completion; or

 7-7                 (3)  a health professional baccalaureate degree

 7-8     program.

 7-9           (c)  For a student enrolled in a baccalaureate program under

7-10     Section 51.931, semester credit hours earned by the student 10 or

7-11     more years before the date the student begins the new degree

7-12     program under Section 51.931 are not counted for purposes of

7-13     determining whether the student has previously earned the number of

7-14     semester credit hours specified by Subsection (a).

7-15           (d)  The following are not counted for purposes of

7-16     determining whether the student has previously earned the number of

7-17     semester credit hours specified by Subsection (a):

7-18                 (1)  semester credit hours earned by the student before

7-19     receiving a baccalaureate degree that has previously been awarded

7-20     to the student;

7-21                 (2)  semester credit hours earned by the student by

7-22     examination or under any other procedure by which credit is earned

7-23     without registering for a course for which tuition is charged;

7-24                 (3)  credit for a remedial education course or another

7-25     course that does not count toward a degree program at the

 8-1     institution; and

 8-2                 (4)  semester credit hours earned by the student at a

 8-3     private institution or an out-of-state institution.

 8-4           SECTION 1.08.  Subchapter B, Chapter 54, Education Code, is

 8-5     amended by adding Section 54.068 to read as follows:

 8-6           Sec. 54.068.  TUITION FOR EXCESSIVE UNDERGRADUATE HOURS.  An

 8-7     institution of higher education may charge a resident student

 8-8     tuition at a higher rate than the rate charged to other resident

 8-9     students, not to exceed the rate charged to nonresident students,

8-10     for a course for which Section 61.0595 requires the coordinating

8-11     board to exclude funding for the semester credit hours for which

8-12     the student registers if the student has previously attempted 170

8-13     or more semester credit hours.  In its appropriations to

8-14     institutions of higher education, the legislature shall compute the

8-15     local funds available to each institution as if the tuition

8-16     collected under this section were not collected.

8-17           SECTION 1.09.  Subchapter A, Chapter 54, Education Code, is

8-18     amended by adding Section 54.0065 to read as follows:

8-19           Sec. 54.0065.  TUITION REBATE FOR CERTAIN UNDERGRADUATES.

8-20     (a)  A qualified student is eligible for a rebate of a portion of

8-21     the undergraduate tuition the student has paid if the student:

8-22                 (1)  is awarded a baccalaureate degree from a general

8-23     academic teaching institution; and

8-24                 (2)  has attempted no more than three hours in excess

8-25     of the minimum number of semester credit hours required to complete

 9-1     the degree, including transfer credits and course credit earned

 9-2     exclusively by examination.

 9-3           (b)  The amount of tuition to be rebated to a student under

 9-4     this section is $1,000, unless the total amount of undergraduate

 9-5     tuition paid by the student to the institution of higher education

 9-6     awarding the degree was less than $1,000, in which event the amount

 9-7     of tuition to be rebated is an amount equal to the amount of

 9-8     undergraduate tuition paid by the student to the institution.

 9-9     However, a student who paid the institution awarding the degree an

9-10     amount of undergraduate tuition less than $1,000 may qualify for an

9-11     increase in the amount of the rebate, not to exceed a total rebate

9-12     of $1,000, for any amount of undergraduate tuition the student paid

9-13     to other institutions of higher education by providing the

9-14     institution with proof of the total amount of that tuition paid to

9-15     other institutions of higher education.

9-16           (c)  A student who has transferred from another institution

9-17     of higher education shall provide the institution awarding the

9-18     degree an official transcript from each institution attended by the

9-19     student in order that the total number of hours attempted by the

9-20     student can be verified.

9-21           (d)  To qualify for a rebate under this section, the student

9-22     must have been a resident of this state and entitled to pay tuition

9-23     at the rate provided by this chapter for a resident student at all

9-24     times while pursuing the degree.

9-25           (e)  All institutions of higher education shall notify each

 10-1    first-time freshman student of the tuition rebate program.

 10-2          (f)  The institution awarding the degree shall pay the rebate

 10-3    under this section from local funds.

 10-4          (g)  If a student entitled to a rebate under this section has

 10-5    an outstanding student loan, including an emergency loan, owed or

 10-6    guaranteed by this state, including the Texas Guaranteed Student

 10-7    Loan Corporation, the institution shall apply the amount of the

 10-8    rebate to the student's loan.  If a student has more than one

 10-9    outstanding loan, the institution shall apply the amount of the

10-10    rebate to the loans as directed by the student or, if the student

10-11    fails to provide timely instructions on the application of the

10-12    amount, the institution shall apply the amount of the rebate to the

10-13    loans according to priorities established by the coordinating

10-14    board.  If the amount of the rebate exceeds the amount of the loan

10-15    indebtedness, the institution shall pay the student the excess

10-16    amount.

10-17          (h)  The legislature shall account in the General

10-18    Appropriations Act for the rebates authorized by this section in a

10-19    way that provides a corresponding increase in the general revenue

10-20    funds appropriated to the institution.  It is the intent of the

10-21    legislature that rebates authorized by this section shall be

10-22    financed by savings to the state resulting from reductions in the

10-23    number of courses taken by undergraduate students.

10-24          (i)  The coordinating board, in consultation with the

10-25    institutions of higher education, shall adopt rules for the

 11-1    administration of this section.

 11-2          SECTION 1.10.  Subsection (a), Section 54.5131, Education

 11-3    Code, is amended to read as follows:

 11-4          (a)  The board of regents of The University of Texas System

 11-5    may charge and collect from students registered at The University

 11-6    of Texas at Austin a fee of $2 if approved by the students in a

 11-7    student referendum [$1] for any semester or summer session.  The

 11-8    fee may be increased to an amount not to exceed $4 if approved by

 11-9    the students in a student referendum.  The fee may be used only for

11-10    funding an international education program [financial aid fund] to

11-11    be used to assist students participating in international student

11-12    exchange or study programs.

11-13          SECTION 1.11.  Section 54.532, Education Code, is amended to

11-14    read as follows:

11-15          Sec. 54.532.  STUDENT UNION BUILDING FEES; THE UNIVERSITY OF

11-16    TEXAS AT SAN ANTONIO.  (a)  The board of regents of The University

11-17    of Texas System may levy a student union fee of not less than $20

11-18    or more than $75 for each semester or summer session, assessed in

11-19    proportion to the number of credit hours for which a student

11-20    registers, [not to exceed $30 per student for each regular semester

11-21    and not to exceed $15 per student for each term of the summer

11-22    session,] for the sole purpose of financing, [constructing,]

11-23    operating, maintaining, and improving a student union building for

11-24    The University of Texas at San Antonio.  This fee may be levied in

11-25    addition to any other use or service fee.  [Furthermore, the fee

 12-1    may be levied only upon an affirmative vote of a majority of the

 12-2    student body voting of The University of Texas at San Antonio.]

 12-3          (b)  The fees collected under Subsection (a) of this section

 12-4    shall be deposited to an account known as The University of Texas

 12-5    at San Antonio University Center Fee Account and shall be placed

 12-6    under the control of and subject to the order of the university

 12-7    center advisory committee.  The committee shall annually submit to

 12-8    the president of The University of Texas at San Antonio a complete

 12-9    and itemized budget to be accompanied by a full and complete report

12-10    of all activities conducted during the past year and all

12-11    expenditures made incident to those activities.  The president

12-12    shall submit the budget to the board of regents as part of the

12-13    institutional budget.  The board of regents shall make such changes

12-14    in the budget as it deems necessary before approving the budget[,

12-15    but only after a student referendum has been called on the issue of

12-16    increase in the fee, and the issue has been approved by a majority

12-17    of the students voting in the election].  The board shall then levy

12-18    the fees, within the limits fixed in this section, in such amounts

12-19    as will be sufficient to meet the budgetary needs of the student

12-20    union building.

12-21          (c)  The board may not increase the amount of the student

12-22    union fee by more than 10 percent in any academic year unless the

12-23    amount of the increase is approved by a majority of the students

12-24    voting in an election held for that purpose and by a majority of

12-25    the student government of the institution.

 13-1                     ARTICLE 2.  CONFORMING AMENDMENTS

 13-2          SECTION 2.01.  Subsection (a), Section 55.13, Education Code,

 13-3    is amended to read as follows:

 13-4          (a)  For the purpose of providing funds to acquire, purchase,

 13-5    construct, improve, enlarge, and/or equip any property, buildings,

 13-6    structures, activities, services, operations, or other facilities,

 13-7    for and on behalf of its institution or institutions, or any branch

 13-8    or branches thereof, each board may issue its revenue bonds from

 13-9    time to time and in one or more issue or series, to be payable from

13-10    and secured by liens on and pledges of all or any part of any of

13-11    the revenue funds [revenues, income, or receipts] of the board and

13-12    its institution or institutions, or any branch or branches of any

13-13    of its institutions [thereof, including, without limitation, any

13-14    rentals, rates, charges, fees, or other resources, in the manner

13-15    provided by this subchapter].

13-16          SECTION 2.02.  Subsections (a), (b), and (c), Section 55.17,

13-17    Education Code, are amended to read as follows:

13-18          (a)  Each board may pledge all or any part of its revenue

13-19    funds [revenues, income, or receipts from such rentals, rates,

13-20    charges, and/or fees, or other resources] to the payment of the

13-21    bonds, including the payment of principal, interest, and any other

13-22    amounts required or permitted in connection with the bonds.  The

13-23    pledged revenue funds [rentals, rates, charges, and/or fees] shall

13-24    be fixed and collected in amounts that will be at least

13-25    sufficient[, together with any other pledged resources,] to provide

 14-1    for all payments of principal, interest, and any other amounts

 14-2    required in connection with the bonds and, to the extent required

 14-3    by the resolution authorizing the issuance of the bonds, to provide

 14-4    for the payment of expenses in connection with the bonds and for

 14-5    the payment of operation, maintenance, and other expenses in

 14-6    connection with the aforesaid property, buildings, structures,

 14-7    activities, services, operations, or other facilities.

 14-8          (b)  Each board may establish and enforce parietal rules for

 14-9    students and others, and enter into agreements regarding occupancy,

14-10    use, and availability of facilities, and the amounts and collection

14-11    of pledged revenue funds [revenues, income, receipts, rentals,

14-12    rates, charges, fees, or other resources,] that will assure making

14-13    all the required payments and deposits.

14-14          (c)  Tuition, rentals, rates, and other charges of an

14-15    institution of higher education authorized by this title [Fees for

14-16    the use by or availability to the students of all or any property,

14-17    buildings, structures, activities, services, operations, or other

14-18    facilities,] may be pledged to the payment of the bonds[,] and

14-19    shall be fixed and collected from all or any designated part of the

14-20    students enrolled in the institution or institutions, or any branch

14-21    or branches thereof, in the amounts and in the manner as determined

14-22    and provided by the board in the resolution authorizing the

14-23    issuance of the bonds; and said tuition, rentals, rates, and other

14-24    charges [fees] may be collected in the full amounts required or

14-25    permitted herein, without regard to actual use, availability, or

 15-1    existence of any facility, commencing at any time designated by the

 15-2    board. [Said fees may be fixed and collected for the use or

 15-3    availability of any specifically described property, buildings,

 15-4    structures, activities, services, operations, or other facilities;

 15-5    or said fees may be fixed and collected as general fees for the

 15-6    general use or availability of the institution or institutions, or

 15-7    any branch or branches thereof.]  Such tuition, rentals, rates, and

 15-8    other charges [specific and/or general fees] may be fixed and

 15-9    collected, and pledged to the payment of any issue or series of

15-10    bonds issued by the board, in the full amounts required or

15-11    permitted herein, in addition to, and regardless of the existence

15-12    of, any other specific or general fees at the institution or

15-13    institutions, or any branch or branches thereof; provided that each

15-14    board may restrict its power to pledge such additional tuition,

15-15    rentals, rates, or other charges [specific or general fees] in any

15-16    manner that may be provided in any resolution authorizing the

15-17    issuance of bonds, and provided that no such additional tuition,

15-18    rentals, rates, or other charges [specific fees] shall be pledged

15-19    if prohibited by any resolution which authorized the issuance of

15-20    any then outstanding bonds.

15-21          SECTION 2.03.  Section 55.24, Education Code, is amended to

15-22    read as follows:

15-23          Sec. 55.24.  Pledges Under Previous Laws to Remain in Effect.

15-24    (a)  Where any revenues, income, receipts, or other resources of

15-25    any board have been pledged to the payment of principal of and

 16-1    interest on any bonds or notes issued and delivered pursuant to any

 16-2    other law, the repeal of such law by virtue of the enactment of

 16-3    Title 3 of this code shall not affect any such pledge or any

 16-4    covenants with respect to such bonds or notes, or any bonds issued

 16-5    to refund same, and all such pledges and covenants shall remain in

 16-6    full force and effect in accordance with the terms and provisions

 16-7    thereof.

 16-8          (b)  Where all or any part of the revenue funds of any board

 16-9    have been pledged to the payment of the principal of and interest

16-10    on any bonds or notes or any other obligation issued or entered

16-11    into and delivered pursuant to any provision of this title or any

16-12    other law, the repeal or amendment of any provision of this title

16-13    shall not affect any such pledge or any covenants with respect to

16-14    such bonds, notes, or obligations or any bonds or notes issued to

16-15    refund same, and all such pledges and covenants shall remain in

16-16    full force and effect in accordance with the terms and provisions

16-17    thereof.

16-18          (c)  In furtherance of the provisions of Subsection (b) and

16-19    in recognition that certain boards have outstanding bonds, notes,

16-20    and other obligations secured by various liens on the tuition or a

16-21    portion of the tuition charged and collected at certain

16-22    institutions and that the provisions of Chapter 54 would make it

16-23    difficult or impossible to identify and secure that portion of the

16-24    revised tuition charges pledged to the payment of such bonds,

16-25    notes, and obligations, net tuition, as defined in Section

 17-1    51.009(c) and classified as educational and general funds by such

 17-2    provision, shall be set aside and utilized first to satisfy the

 17-3    obligations of each board secured by tuition in the order of

 17-4    priority of the liens on such funds.  It is further provided for

 17-5    the benefit of the owners of such bonds and notes and the

 17-6    counterparties to such obligations of the boards that the charges

 17-7    per semester credit hour or for each semester or summer session, as

 17-8    the case may be, for tuition constituting the educational and

 17-9    general funds portion of tuition shall never be less than the

17-10    amount charged for the 1996-1997 academic year.

17-11          SECTION 2.04.  Subchapter B, Chapter 55, Education Code, is

17-12    amended by adding Section 55.25 to read as follows:

17-13          Sec. 55.25.  APPLICABILITY OF OTHER LAW; CONFLICTS.  Chapter

17-14    656, Acts of the 68th Legislature, Regular Session, 1983 (Article

17-15    717q, Vernon's Texas Civil Statutes), Chapter 3, Acts of the 61st

17-16    Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas

17-17    Civil Statutes), the Bond Procedures Act of 1981 (Article 717k-6,

17-18    Vernon's Texas Civil Statutes), and Chapter 53, Acts of the 70th

17-19    Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's

17-20    Texas Civil Statutes), apply to all bonds issued pursuant to this

17-21    chapter; provided, however, that in the event of any conflict

17-22    between such laws and this chapter, the provisions of this chapter

17-23    prevail.

 18-1       ARTICLE 3.  VALIDATION, SAVINGS, AND TRANSITIONAL PROVISIONS;

 18-2                         EFFECTIVE DATE; EMERGENCY

 18-3          SECTION 3.01.  (a)  All revenue bonds heretofore approved by

 18-4    the attorney general and registered by the comptroller of public

 18-5    accounts, or authorized by proceedings approved by the attorney

 18-6    general, which were issued, sold, and delivered or entered into by

 18-7    any governing board of an institution of higher education and which

 18-8    are payable from or secured by a pledge of any revenues, income,

 18-9    receipts, or other resources of such board, are hereby validated in

18-10    all respects, together with all proceedings authorizing the

18-11    issuance thereof, and said bonds and proceedings are and shall be

18-12    valid and binding obligations in accordance with their terms and

18-13    conditions for all purposes, as though they had been duly and

18-14    legally issued or entered into and authorized originally.

18-15          (b)  Nothing in this Act limits or impairs any pledge or

18-16    covenant made by the governing board of an institution of higher

18-17    education with respect to any bond or note issued before the

18-18    effective date of this Act.

18-19          (c)  The provisions of Subsection (b), Section 55.24,

18-20    Education Code, as added by Section 2.03 of this Act, regarding the

18-21    effect of an amendment or a repeal on a pledge or covenant made by

18-22    the governing board of an institution of higher education apply to

18-23    any such amendment or repeal made by this Act.

18-24          SECTION 3.02.  (a)  This Act takes effect August 1, 1997, if

18-25    this Act may take effect on that date under Section 39, Article

 19-1    III, Texas Constitution.  Otherwise, this Act takes effect

 19-2    September 1, 1997.

 19-3          (b)  Except as otherwise provided in this section, the

 19-4    changes in law made by this Act apply beginning with tuition and

 19-5    fees charged for the 1997 fall semester.  Section 54.068, Education

 19-6    Code, as added by this Act, applies beginning with tuition charged

 19-7    for the 1999 fall semester.  Section 54.0065, Education Code, as

 19-8    added by this Act, applies only to students entering a

 19-9    baccalaureate degree program on or after September 1, 1997.

19-10    Section 61.0595, Education Code, as added by this Act, applies to

19-11    funding beginning with the 1999 fall semester.

19-12          SECTION 3.03.  The importance of this legislation and the

19-13    crowded condition of the calendars in both houses create an

19-14    emergency and an imperative public necessity that the

19-15    constitutional rule requiring bills to be read on three several

19-16    days in each house be suspended, and this rule is hereby suspended,

19-17    and that this Act take effect and be in force according to its

19-18    terms, and it is so enacted.

                                                               S.B. No. 1907

         ________________________________   ________________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1907 passed the Senate on

         April 29, 1997, by the following vote:  Yeas 31, Nays 0;

         May 28, 1997, Senate refused to concur in House amendment and

         requested appointment of Conference Committee; May 29, 1997, House

         granted request of the Senate; May 31, 1997, Senate adopted

         Conference Committee Report by the following vote:  Yeas 30,

         Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1907 passed the House, with

         amendment, on May 23, 1997, by the following vote:  Yeas 145,

         Nays 0, two present not voting; May 29, 1997, House granted request

         of the Senate for appointment of Conference Committee;

         June 1, 1997, House adopted Conference Committee Report by the

         following vote:  Yeas 141, Nays 0, two present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         ________________________________

                      Date

         ________________________________

                    Governor