By Bivins S.B. No. 1907
Substitute the following for S.B. No. 1907:
By Rabuck C.S.S.B. No. 1907
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to tuition and fees charged by public institutions of
1-3 higher education, including the redesignation of certain fees as
1-4 tuition.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. TUITION AND FEES
1-7 SECTION 1.01. Subchapter B, Chapter 54, Education Code, is
1-8 amended by adding Section 54.0513 to read as follows:
1-9 Sec. 54.0513. REDESIGNATION OF BUILDING USE FEE. (a) The
1-10 building use fee previously authorized in Section 55.16 of this
1-11 code is redesignated as tuition.
1-12 (b) In addition to amounts that a governing board of an
1-13 institution of higher education is authorized to charge as tuition
1-14 under this chapter, the governing board is authorized to charge as
1-15 tuition the following maximum amounts:
1-16 (1) $34 per semester credit hour for the 1997-1998
1-17 academic year;
1-18 (2) $36 per semester credit hour for the 1998-1999
1-19 academic year;
1-20 (3) $38 per semester credit hour for the 1999-2000
1-21 academic year; and
1-22 (4) $40 per semester credit hour for the 2000-2001
1-23 academic year and each academic year thereafter.
1-24 (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 Sections 54.008
2-25 and 54.051(d) of this code [$200 per semester credit hour].
2-26 SECTION 1.03. Subchapter D, Chapter 54, Education Code, is
2-27 amended by adding Section 54.214 to read as follows:
3-1 Sec. 54.214. DISTANCE LEARNING OR OFF-CAMPUS COURSES. The
3-2 governing board of an institution of higher education may waive a
3-3 fee which it is authorized to charge if the board determines that:
3-4 (1) a student is enrolled only in distance learning
3-5 courses or other off-campus courses of the institution;
3-6 (2) the student cannot reasonably be expected to use
3-7 the activities, services, or facilities on which the fee is based;
3-8 and
3-9 (3) the waiver of the fee will not materially impair
3-10 the ability of the institution either to service any debt on which
3-11 the fee is based or to offer or operate the particular activity,
3-12 service, or facility supported by the fee.
3-13 SECTION 1.04. Section 55.01, Education Code, is amended by
3-14 amending Subdivision (3) and adding Subdivision (4) to read as
3-15 follows:
3-16 (3) "Revenue funds" means the revenues, incomes,
3-17 receipts, rentals, rates, charges, fees, grants, and tuition levied
3-18 or collected from any public or private source by an institution of
3-19 higher education, including interest or other income from those
3-20 funds.
3-21 (4) "Bonds" means bonds, notes, or credit agreements a
3-22 board is authorized to enter into either by this title or by other
3-23 laws.
3-24 SECTION 1.05. Section 55.16, Education Code, is amended to
3-25 read as follows:
3-26 Sec. 55.16. BOARD RESPONSIBILITY [RENTALS, RATES, CHARGES,
3-27 AND FEES]. (a) If [Each board shall be authorized to fix and
4-1 collect rentals, rates, charges, and fees from students and others
4-2 for the occupancy, services, use, and/or availability of all or any
4-3 of its property, buildings, structures, activities, operations, or
4-4 other facilities, in such amounts and in such manner as may be
4-5 determined by the board; provided, however, that all student use
4-6 fees shall be fixed and collected in proportion to the number of
4-7 semester credit hours for which a student registers, and shall not
4-8 exceed the amount permitted by Subsection (b), except that those
4-9 schools charging more than $6 per semester hour as of May 1, 1975,
4-10 shall not exceed the amount being charged as of that date. The
4-11 board may waive all or any part of any such student use fees in the
4-12 case of any student for whom the payment of such student use fee
4-13 would cause an undue economic hardship, except that the number of
4-14 such students for whom such waivers are granted shall not exceed 5%
4-15 of the total enrollment; and further provided that nothing in this
4-16 section shall affect, limit, or impair any pledge, covenant, or
4-17 option made or reserved by the board with respect to any revenue
4-18 bonds outstanding as of the 1975 amendment to this section, issued
4-19 by the board pursuant to this chapter; and provided that hereafter
4-20 if] bonds have been or are issued pursuant to [Section 55.17 of]
4-21 this title [code], or secured or to be secured by a pledge of part
4-22 or all of the board's revenue funds [a limited or unlimited use
4-23 fee], and if, at the time of authorizing the issuance of the bonds,
4-24 (1) the estimated maximum amount per semester hour of such pledged
4-25 revenue funds [use fee] (based on then current enrollment and
4-26 conditions) during any future semester necessary to provide for the
4-27 payment of the principal of and interest on the bonds when due,
5-1 together with (2) the aggregate amount of all such pledged revenue
5-2 funds [use fees] which were levied on a semester hour basis for the
5-3 then current semester to pay the principal of and interest on all
5-4 previously issued bonds, do not exceed the amount permitted by this
5-5 title [Subsection (b)], then any necessary fees, tuition, rentals,
5-6 rates, or other charges constituting revenue funds [such limited or
5-7 unlimited use fee] shall be levied and collected when and to the
5-8 extent required by the resolution authorizing the issuance of the
5-9 bonds in any amount required to provide revenue funds sufficient
5-10 for the payment of the principal of and interest on the bonds,
5-11 regardless of any other provision or limitation provided by this
5-12 title [of this section or the limitations contained herein].
5-13 (b) [A board may not charge rentals, rates, charges, and
5-14 fees under this section in a total amount per semester credit hour
5-15 that exceeds the tuition rate per semester credit hour for a
5-16 resident student at a general academic teaching institution under
5-17 Subchapter B, Chapter 54, for the academic year in which the
5-18 rentals, rates, charges, and fees are charged.] A board is not
5-19 required to charge students enrolled in different degree programs
5-20 at the institution the same rentals, rates, charges, and fees under
5-21 this section.
5-22 [(c) A board that charges a rental, rate, charge, or fee
5-23 under this section may use the revenue for any purpose at the
5-24 institution at which the revenue is collected, subject to the laws
5-25 governing the institution and the board. This subsection does not
5-26 decrease the authority of a board of regents to enter into pledges
5-27 or covenants with respect to bonds, notes, or other obligations
6-1 under law existing before the effective date of this subsection.]
6-2 [(d) Before a board increases a rental, rate, charge, or fee
6-3 collected under this section at an institution under the direction,
6-4 management, and control of the board, the board or, if the board
6-5 directs, the chief executive officer of the institution must hold a
6-6 public hearing at the institution on the increase.]
6-7 SECTION 1.06. Subsection (d), Section 55.17, Education Code,
6-8 is repealed.
6-9 ARTICLE 2. CONFORMING AMENDMENTS
6-10 SECTION 2.01. Section 55.24, Education Code, is amended to
6-11 read as follows:
6-12 Sec. 55.24. Pledges Under Previous Laws to Remain in Effect.
6-13 (a) Where any revenues, income, receipts, or other resources of
6-14 any board have been pledged to the payment of principal of and
6-15 interest on any bonds or notes issued and delivered pursuant to any
6-16 other law, the repeal of such law by virtue of the enactment of
6-17 Title 3 of this code shall not affect any such pledge or any
6-18 covenants with respect to such bonds or notes, or any bonds issued
6-19 to refund same, and all such pledges and covenants shall remain in
6-20 full force and effect in accordance with the terms and provisions
6-21 thereof.
6-22 (b) Where all or any part of the revenue funds of any board
6-23 have been pledged to the payment of the principal of and interest
6-24 on any bonds or notes or any other obligation issued or entered
6-25 into and delivered pursuant to any provision of this title or any
6-26 other law, the repeal or amendment of any provision of this title
6-27 shall not affect any such pledge or any covenants with respect to
7-1 such bonds, notes, or obligations or any bonds or notes issued to
7-2 refund same, and all such pledges and covenants shall remain in
7-3 full force and effect in accordance with the terms and provisions
7-4 thereof.
7-5 (c) In furtherance of the provisions of Subsection (b) and
7-6 in recognition that certain boards have outstanding bonds, notes,
7-7 and other obligations secured by various liens on the tuition or a
7-8 portion of the tuition charged and collected at certain
7-9 institutions and that the provisions of Chapter 54 would make it
7-10 difficult or impossible to identify and secure that portion of the
7-11 revised tuition charges pledged to the payment of such bonds,
7-12 notes, and obligations, net tuition, as defined in Section
7-13 51.009(c) and classified as educational and general funds by such
7-14 provision, shall be set aside and utilized first to satisfy the
7-15 obligations of each board secured by tuition in the order of
7-16 priority of the liens on such funds. It is further provided for
7-17 the benefit of the owners of such bonds and notes and the counter
7-18 parties to such obligations of the boards that the charges per
7-19 semester credit hour or for each semester or summer session, as the
7-20 case may be, for tuition constituting the educational and general
7-21 funds portion of tuition shall never be less than the amount
7-22 charged for the 1996-1997 academic year.
7-23 SECTION 2.02. Chapter 55, Education Code, is amended by
7-24 adding Section 55.25 to read as follows:
7-25 Sec. 55.25. APPLICABILITY OF OTHER LAW; CONFLICTS. Chapter
7-26 656, Acts of the 68th Legislature, Regular Session, 1983 (Article
7-27 717q, Vernon's Texas Civil Statutes), Chapter 3, Acts of the 61st
8-1 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
8-2 Civil Statutes), the Bond Procedures Act of 1981 (Article 717k-6,
8-3 Vernon's Texas Civil Statutes), and Chapter 53, Acts of the 70th
8-4 Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
8-5 Texas Civil Statutes) apply to all bonds issued pursuant to this
8-6 chapter; provided, however, that in the event of any conflict
8-7 between such laws and this chapter, the provisions of this chapter
8-8 prevail.
8-9 ARTICLE 3. VALIDATION, SAVINGS, AND TRANSITIONAL PROVISIONS;
8-10 EFFECTIVE DATE; EMERGENCY
8-11 SECTION 3.01. (a) All revenue bonds heretofore approved by
8-12 the attorney general and registered by the comptroller, or
8-13 authorized by proceedings approved by the attorney general, which
8-14 were issued, sold, and delivered or entered into by any board, and
8-15 which are payable from or secured by a pledge of any revenues,
8-16 income, receipts, or other resources of such board, are hereby
8-17 validated in all respects, together with all proceedings
8-18 authorizing the issuance thereof, and said bonds and proceedings
8-19 are and shall be valid and binding obligations in accordance with
8-20 their terms and conditions for all purposes, as though they had
8-21 been duly and legally issued or entered into and authorized
8-22 originally.
8-23 (b) Nothing in this Act limits or impairs any pledge or
8-24 covenant made by the governing board of an institution of higher
8-25 education with respect to any bond or note issued before the
8-26 effective date of this Act.
8-27 (c) The provisions of Subsection (b), Section 55.24,
9-1 Education Code, as added by Section 2.01 of this Act, regarding the
9-2 effect of an amendment or a repeal on a pledge or covenant made by
9-3 the governing board of an institution of higher education, apply to
9-4 any such amendment or repeal made by this Act.
9-5 SECTION 3.02. (a) This Act takes effect August 1, 1997, if
9-6 this Act may take effect on that date under Section 39, Article
9-7 III, Texas Constitution. Otherwise, this Act takes effect
9-8 September 1, 1997.
9-9 (b) The changes in law made by this Act apply beginning with
9-10 tuition and fees charged for the 1997 fall semester.
9-11 SECTION 3.03. The importance of this legislation and the
9-12 crowded condition of the calendars in both houses create an
9-13 emergency and an imperative public necessity that the
9-14 constitutional rule requiring bills to be read on three several
9-15 days in each house be suspended, and this rule is hereby suspended,
9-16 and that this Act take effect and be in force according to its
9-17 terms, and it is so enacted.