By: Bivins S.B. No. 1907
97S0765/2
A BILL TO BE ENTITLED
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. Section 54.004, Education Code, is amended to
1-7 read as follows:
1-8 Sec. 54.004. RETENTION AND USE OF FUNDS. (a) Except as
1-9 provided by Subsection (b), all [All] tuition, local funds, and
1-10 fees collected by an institution of higher education shall be
1-11 retained and expended by the institution and accounted for annually
1-12 as provided in the general appropriations act.
1-13 (b) Amounts collected by an institution of higher education
1-14 from the portion of resident tuition charged in excess of the
1-15 minimum resident tuition rate established by Section 54.051(c) and
1-16 amounts collected from the portion of nonresident tuition charged
1-17 in excess of the basic nonresident tuition rate established by
1-18 Section 54.051(d) are institutional funds as defined by Section
1-19 51.009 and shall be accounted for as designated funds. These funds
1-20 may be used for any lawful purpose and shall not be accounted for
1-21 in a general appropriations act in such a way as to reduce the
1-22 general revenue appropriation to a particular institution.
1-23 SECTION 1.02. Section 54.008, Education Code, is amended by
2-1 amending Subsection (a) and adding Subsections (g) and (h) to read
2-2 as follows:
2-3 (a) [The tuition rates provided by Subchapter B of this
2-4 chapter are minimum rates.] Except as provided by Subsection (e),
2-5 the governing board of each institution of higher education shall
2-6 set tuition for graduate programs for that institution at a rate
2-7 that is at least equal to the minimum rate [that] prescribed by
2-8 Subchapter B [of this chapter], but that is not more than 1.5 times
2-9 [twice] the maximum rate prescribed by Subchapter B [of this
2-10 chapter]. Between the maximum and minimum rates allowed by this
2-11 subsection, the board may set the differential tuition among
2-12 graduate programs offered by the [an] institution [of higher
2-13 education].
2-14 (g) The governing board of an institution of higher
2-15 education may waive all or part of the tuition charged to a
2-16 graduate or undergraduate student that is in excess of the minimum
2-17 tuition rates prescribed by Subchapter B if it finds that the
2-18 payment of such tuition would cause an undue economic hardship on
2-19 the student.
2-20 (h) A board shall hold a public hearing before it may
2-21 increase resident tuiton rates above the minimum rates established
2-22 by Subchapter B.
2-23 SECTION 1.03. Subsection (c), Section 51.009, Education
2-24 Code, is amended to read as follows:
2-25 (c) Each of the following shall be accounted for as
3-1 educational and general funds: net tuition other than tuition
3-2 classified as institutional funds by Section 54.004(b), special
3-3 course fees charged under Sections 54.051(e) and (l), [Education
3-4 Code,] lab fees, student teaching fees, hospital and clinic fees,
3-5 organized activity fees, proceeds from the sale of educational and
3-6 general equipment, and indirect cost recovery fees.
3-7 SECTION 1.04. Section 54.0512, Education Code, is amended to
3-8 read as follows:
3-9 Sec. 54.0512. INTERIM TUITION RATES. (a) Notwithstanding
3-10 Section 54.051 [of this code], tuition for the applicable academic
3-11 years is as provided by this section.
3-12 (b) Tuition for a resident student at a general academic
3-13 teaching institution is [the greater of $120 for each semester or
3-14 12-week summer session and $60 for each six-week summer term or]:
3-15 (1) [for the 1994-1995 academic year, $28 per semester
3-16 credit hour;]
3-17 [(2) for the 1995-1996 academic year, $30 per semester
3-18 credit hour;]
3-19 [(3) for the 1996-1997 academic year, $32 per semester
3-20 credit hour;]
3-21 [(4)] for the 1997-1998 academic year, an amount per
3-22 semester credit hour established by the governing board of the
3-23 institution, which may not be less than $34 per semester credit
3-24 hour or more than $68 per semester credit hour;
3-25 (2) [(5)] for the 1998-1999 academic year, an amount
4-1 per semester credit hour established by the governing board of the
4-2 institution, which may not be less than $36 per semester credit
4-3 hour or more than $72 per semester credit hour;
4-4 (3) [(6)] for the 1999-2000 academic year, an amount
4-5 per semester credit hour established by the governing board of the
4-6 institution, which may not be less than $38 per semester credit
4-7 hour or more than $76 per semester credit hour; and
4-8 (4) [(7)] for the 2000-2001 academic year, an amount
4-9 per semester credit hour established by the governing board of the
4-10 institution, which may not be less than $40 per semester credit
4-11 hour or more than $80 per semester credit hour.
4-12 (c) [Tuition for a nonresident student at a general academic
4-13 teaching institution for the 1985-1986 and 1986-1987 academic years
4-14 is $120 per semester credit hour.]
4-15 [(d) Tuition for a resident student enrolled in a program
4-16 leading to an M.D. or D.O. degree is:]
4-17 [(1) for the 1985-1986 academic year, $1,219;]
4-18 [(2) for the 1986-1987 academic year, $2,400;]
4-19 [(3) for the 1987-1988 academic year, $3,600; and]
4-20 [(4) for the 1988-1989 academic year, $4,800.]
4-21 [(e) Tuition for a resident student enrolled in a program
4-22 leading to a D.D.S. degree is:]
4-23 [(1) for the 1985-1986 academic year, $900;]
4-24 [(2) for the 1986-1987 academic year, $1,600;]
4-25 [(3) for the 1987-1988 academic year, $2,500; and]
5-1 [(4) for the 1988-1989 academic year, $3,500.]
5-2 [(f) Tuition for a resident student enrolled in a program
5-3 leading to a D.V.M. degree is:]
5-4 [(1) for the 1985-1986 academic year, $800;]
5-5 [(2) for the 1986-1987 academic year, $1,200;]
5-6 [(3) for the 1987-1988 academic year, $2,400; and]
5-7 [(4) for the 1988-1989 academic year, $3,600.]
5-8 [(g) Tuition for a resident student registered at a law
5-9 school is:]
5-10 [(1) for the 1985-1986 academic year, $24 per semester
5-11 credit hour;]
5-12 [(2) for the 1986-1987 academic year, $36 per semester
5-13 credit hour; and]
5-14 [(3) for the 1987-1988 academic year, $48 per semester
5-15 credit hour.]
5-16 [(h)] Tuition for academic years not specifically covered by
5-17 this section is at the rates provided by Section 54.051 [of this
5-18 code]. This section expires January 1, 2002.
5-19 SECTION 1.05. Subsections (c) and (d), Section 54.051,
5-20 Education Code, are amended to read as follows:
5-21 (c) Unless a different rate is specified by this section,
5-22 tuition for a resident student at a general academic teaching
5-23 institution for the 2001-2002 academic year and thereafter is an
5-24 amount per semester credit hour established by the governing board
5-25 of the institution, which may not be less than [the greater of:]
6-1 [(1) $120 for each semester or 12-week summer session
6-2 and $60 for each six-week summer term; or]
6-3 [(2)] $40 per semester credit hour or more than $80
6-4 per semester credit hour.
6-5 (d) Unless a different rate is specified by this section,
6-6 tuition for a nonresident student at a general academic teaching
6-7 institution or medical and dental unit is a basic nonresident
6-8 tuition rate in an amount per semester credit hour equal to the
6-9 average of the nonresident undergraduate tuition charged per
6-10 semester credit hour to a resident of this state at a public state
6-11 university in each of the five most populous states other than this
6-12 state, as computed by the coordinating board under this subsection,
6-13 plus an additional amount set by the governing board of the
6-14 institution not to exceed $40 per semester credit hour. The
6-15 coordinating board shall set the basic nonresident tuition rate
6-16 provided by this subsection for each academic year and report that
6-17 rate to each appropriate institution not later than January 1 of
6-18 the calendar year in which the academic year begins, or as soon
6-19 after that January 1 as practicable. In computing the basic
6-20 nonresident tuition rate, the coordinating board shall use the
6-21 nonresident tuition rates for the other states in effect for the
6-22 academic year in progress when the board makes the computation.
6-23 SECTION 1.06. Subchapter D, Chapter 54, Education Code, is
6-24 amended by adding Section 54.2001 to read as follows:
6-25 Sec. 54.2001. ADJUSTMENTS TO TUITION AND FEES TO REFLECT
7-1 EXEMPTIONS. If a student at an institution of higher education
7-2 receives an exemption or waiver from the payment of all or part of
7-3 tuition and fees prescribed or authorized by this title, the
7-4 institution shall make the appropriate adjustments to the student's
7-5 charges for tuition and fees not later than the third business day
7-6 after the date on which the enrollment of the institution for the
7-7 semester or term is determined for general administrative purposes.
7-8 SECTION 1.07. Section 55.01, Education Code, is amended by
7-9 adding Subdivision (4) to read as follows:
7-10 (4) "Bonds" means bonds, notes, or credit agreements a
7-11 board is authorized to enter into either by this title or by other
7-12 laws.
7-13 SECTION 1.08. Section 55.16, Education Code, is amended to
7-14 read as follows:
7-15 Sec. 55.16. BOARD RESPONSIBILITY [RENTALS, RATES, CHARGES,
7-16 AND FEES]. (a) Each board shall be authorized to fix and collect
7-17 rentals, rates, and charges[, and fees] from students and others
7-18 for the occupancy, services, use, and/or availability of all or any
7-19 of its property, buildings, structures, activities, operations, or
7-20 other facilities, in such amounts and in such manner as may be
7-21 determined by the board. If[; provided, however, that all student
7-22 use fees shall be fixed and collected in proportion to the number
7-23 of semester credit hours for which a student registers, and shall
7-24 not exceed the amount permitted by Subsection (b), except that
7-25 those schools charging more than $6 per semester hour as of May 1,
8-1 1975, shall not exceed the amount being charged as of that date.
8-2 The board may waive all or any part of any such student use fees in
8-3 the case of any student for whom the payment of such student use
8-4 fee would cause an undue economic hardship, except that the number
8-5 of such students for whom such waivers are granted shall not exceed
8-6 5% of the total enrollment; and further provided that nothing in
8-7 this section shall affect, limit, or impair any pledge, covenant,
8-8 or option made or reserved by the board with respect to any revenue
8-9 bonds outstanding as of the 1975 amendment to this section, issued
8-10 by the board pursuant to this chapter; and provided that hereafter
8-11 if] bonds have been or are issued pursuant to [Section 55.17 of]
8-12 this title [code], or secured or to be secured by a pledge of part
8-13 or all of the board's revenue funds [a limited or unlimited use
8-14 fee], and if, at the time of authorizing the issuance of the bonds,
8-15 (1) the estimated maximum amount per semester hour of such pledged
8-16 revenue funds [use fee] (based on then current enrollment and
8-17 conditions) during any future semester necessary to provide for the
8-18 payment of the principal of and interest on the bonds when due,
8-19 together with (2) the aggregate amount of all such pledged revenue
8-20 funds [use fees] which were levied on a semester hour basis for the
8-21 then current semester to pay the principal of and interest on all
8-22 previously issued bonds, do not exceed the amount permitted by this
8-23 title [Subsection (b)], then any necessary fees, tuition, rentals,
8-24 rates, or other charges constituting revenue funds [such limited or
8-25 unlimited use fee] shall be levied and collected when and to the
9-1 extent required by the resolution authorizing the issuance of the
9-2 bonds in any amount required to provide revenue funds sufficient
9-3 for the payment of the principal of and interest on the bonds,
9-4 regardless of any other provision or limitation provided by this
9-5 title [of this section or the limitations contained herein].
9-6 (b) [A board may not charge rentals, rates, charges, and
9-7 fees under this section in a total amount per semester credit hour
9-8 that exceeds the tuition rate per semester credit hour for a
9-9 resident student at a general academic teaching institution under
9-10 Subchapter B, Chapter 54, for the academic year in which the
9-11 rentals, rates, charges, and fees are charged.] A board is not
9-12 required to charge students enrolled in different degree programs
9-13 at the institution the same rentals, rates, charges, and fees under
9-14 this section.
9-15 [(c) A board that charges a rental, rate, charge, or fee
9-16 under this section may use the revenue for any purpose at the
9-17 institution at which the revenue is collected, subject to the laws
9-18 governing the institution and the board. This subsection does not
9-19 decrease the authority of a board of regents to enter into pledges
9-20 or covenants with respect to bonds, notes, or other obligations
9-21 under law existing before the effective date of this subsection.]
9-22 [(d) Before a board increases a rental, rate, charge, or fee
9-23 collected under this section at an institution under the direction,
9-24 management, and control of the board, the board or, if the board
9-25 directs, the chief executive officer of the institution must hold a
10-1 public hearing at the institution on the increase.]
10-2 SECTION 1.09. Subsections (a) and (b), Section 56.033,
10-3 Education Code, are amended to read as follows:
10-4 (a) The governing boards of institutions of higher education
10-5 and the Texas State Technical College System shall cause to be set
10-6 aside:
10-7 (1) [for the 1991-1992 academic year,] not less than
10-8 nine percent nor more than 15 percent out of each resident
10-9 student's tuition charge under Section 54.051 of this code as
10-10 provided by the General Appropriations Act for the applicable
10-11 academic year;
10-12 (2) [for the 1992-1993 academic year and each
10-13 subsequent academic year, not less than 15 percent nor more than 20
10-14 percent out of each resident student's tuition charge under Section
10-15 54.051 of this code as provided by the General Appropriations Act
10-16 for the applicable academic year; in specifying the percentage to
10-17 be set aside for the 1991-1992 and 1992-1993 academic years, the
10-18 legislature shall consider the recommendations of the Select
10-19 Committee on Higher Education established by H.C.R. No. 105, Acts
10-20 of the 69th Legislature, Regular Session, 1985;]
10-21 [(3)] three percent out of each nonresident student's
10-22 tuition charge under Section 54.051 of this code;
10-23 (3) [(4)] six percent out of each resident student's
10-24 hourly tuition charge, and $1.50 out of each nonresident student's
10-25 hourly tuition charge, for academic courses at public community and
11-1 junior colleges; and
11-2 (4) [(5)] six percent of hourly tuition charges for
11-3 vocational-technical courses at public community and junior
11-4 colleges.
11-5 (b) Of the funds set aside under this section by an
11-6 institution, not less than 95 [90] percent shall be used for Texas
11-7 Public Educational Grants and not more than five [10] percent shall
11-8 be used for emergency loans under Subchapter D of this chapter.
11-9 SECTION 1.10. Subsection (d), Section 55.17, Education Code,
11-10 is repealed.
11-11 ARTICLE 2. CONFORMING AMENDMENTS
11-12 SECTION 2.01. Subsection (a), Section 55.13, Education Code,
11-13 is amended to read as follows:
11-14 (a) For the purpose of providing funds to acquire, purchase,
11-15 construct, improve, enlarge, and/or equip any property, buildings,
11-16 structures, activities, services, operations, or other facilities,
11-17 for and on behalf of its institution or institutions, or any branch
11-18 or branches thereof, each board may issue its revenue bonds from
11-19 time to time and in one or more issue or series, to be payable from
11-20 and secured by liens on and pledges of all or any part of any of
11-21 the revenue funds [revenues, income, or receipts] of the board and
11-22 its institution or institutions, or any branch or branches of any
11-23 of its institutions [thereof, including, without limitation, any
11-24 rentals, rates, charges, fees, or other resources, in the manner
11-25 provided by this subchapter].
12-1 SECTION 2.02. Subsections (a), (b), and (c), Section 55.17,
12-2 Education Code, are amended to read as follows:
12-3 (a) Each board may pledge all or any part of its revenue
12-4 funds [revenues, income, or receipts from such rentals, rates,
12-5 charges, and/or fees, or other resources] to the payment of the
12-6 bonds, including the payment of principal, interest, and any other
12-7 amounts required or permitted in connection with the bonds. The
12-8 pledged revenue funds [rentals, rates, charges, and/or fees] shall
12-9 be fixed and collected in amounts that will be at least
12-10 sufficient[, together with any other pledged resources,] to provide
12-11 for all payments of principal, interest, and any other amounts
12-12 required in connection with the bonds and, to the extent required
12-13 by the resolution authorizing the issuance of the bonds, to provide
12-14 for the payment of expenses in connection with the bonds and for
12-15 the payment of operation, maintenance, and other expenses in
12-16 connection with the aforesaid property, buildings, structures,
12-17 activities, services, operations, or other facilities.
12-18 (b) Each board may establish and enforce parietal rules for
12-19 students and others, and enter into agreements regarding occupancy,
12-20 use, and availability of facilities, and the amounts and collection
12-21 of pledged revenue funds [revenues, income, receipts, rentals,
12-22 rates, charges, fees, or other resources,] that will assure making
12-23 all the required payments and deposits.
12-24 (c) Tuition, rentals, rates, and other charges of an
12-25 institution of higher education authorized by this title [Fees for
13-1 the use by or availability to the students of all or any property,
13-2 buildings, structures, activities, services, operations, or other
13-3 facilities,] may be pledged to the payment of the bonds[,] and
13-4 shall be fixed and collected from all or any designated part of the
13-5 students enrolled in the institution or institutions, or any branch
13-6 or branches thereof, in the amounts and in the manner as determined
13-7 and provided by the board in the resolution authorizing the
13-8 issuance of the bonds; and said tuition, rentals, rates, and other
13-9 charges [fees] may be collected in the full amounts required or
13-10 permitted herein, without regard to actual use, availability, or
13-11 existence of any facility, commencing at any time designated by the
13-12 board. [Said fees may be fixed and collected for the use or
13-13 availability of any specifically described property, buildings,
13-14 structures, activities, services, operations, or other facilities;
13-15 or said fees may be fixed and collected as general fees for the
13-16 general use or availability of the institution or institutions, or
13-17 any branch or branches thereof.] Such tuition, rentals, rates, and
13-18 other charges [specific and/or general fees] may be fixed and
13-19 collected, and pledged to the payment of any issue or series of
13-20 bonds issued by the board, in the full amounts required or
13-21 permitted herein, in addition to, and regardless of the existence
13-22 of, any other specific or general fees at the institution or
13-23 institutions, or any branch or branches thereof; provided that
13-24 each board may restrict its power to pledge such additional
13-25 tuition, rentals, rates, or other charges [specific or general
14-1 fees] in any manner that may be provided in any resolution
14-2 authorizing the issuance of bonds, and provided that no such
14-3 additional tuition, rentals, rates, or other charges [specific
14-4 fees] shall be pledged if prohibited by any resolution which
14-5 authorized the issuance of any then outstanding bonds.
14-6 SECTION 2.03. Section 55.24, Education Code, is amended to
14-7 read as follows:
14-8 Sec. 55.24. PLEDGES UNDER PREVIOUS LAWS TO REMAIN IN EFFECT.
14-9 (a) Where any revenues, income, receipts, or other resources of
14-10 any board have been pledged to the payment of principal of and
14-11 interest on any bonds or notes issued and delivered pursuant to any
14-12 other law, the repeal of such law by virtue of the enactment of
14-13 Title 3 of this code shall not affect any such pledge or any
14-14 covenants with respect to such bonds or notes, or any bonds issued
14-15 to refund same, and all such pledges and covenants shall remain in
14-16 full force and effect in accordance with the terms and provisions
14-17 thereof.
14-18 (b) Where all or any part of the revenue funds of any board
14-19 have been pledged to the payment of the principal of and interest
14-20 on any bonds or notes or any other obligation issued or entered
14-21 into and delivered pursuant to any provision of this title or any
14-22 other law, the repeal or amendment of any provision of this title
14-23 shall not affect any such pledge or any covenants with respect to
14-24 such bonds, notes, or obligations or any bonds or notes issued to
14-25 refund same, and all such pledges and covenants shall remain in
15-1 full force and effect in accordance with the terms and provisions
15-2 thereof.
15-3 (c) In furtherance of the provisions of Subsection (b) and
15-4 in recognition that certain boards have outstanding bonds, notes,
15-5 and other obligations secured by various liens on the tuition or a
15-6 portion of the tuition charged and collected at certain
15-7 institutions and that the provisions of Chapter 54 would make it
15-8 difficult or impossible to identify and secure that portion of the
15-9 revised tuition charges pledged to the payment of such bonds,
15-10 notes, and obligations, net tuition, as defined in Section
15-11 51.009(c) and classified as educational and general funds by such
15-12 provision, shall be set aside and utilized first to satisfy the
15-13 obligations of each board secured by tuition in the order of
15-14 priority of the liens on such funds. It is further provided for
15-15 the benefit of the owners of such bonds and notes and the counter
15-16 parties to such obligations of the boards that the charges per
15-17 semester credit hour or for each semester or summer session, as the
15-18 case may be, for tuition constituting the educational and general
15-19 funds portion of tuition shall never be less than the amount
15-20 charged for the 1996-1997 academic year.
15-21 SECTION 2.04. Chapter 55, Education Code, is amended by
15-22 adding Section 55.25 to read as follows:
15-23 Sec. 55.25. APPLICABILITY OF OTHER LAW; CONFLICTS. Chapter
15-24 656, Acts of the 68th Legislature, Regular Session, 1983 (Article
15-25 717q, Vernon's Texas Civil Statutes), Chapter 3, Acts of the 61st
16-1 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
16-2 Civil Statutes), the Bond Procedures Act of 1981 (Article 717k-6,
16-3 Vernon's Texas Civil Statutes), and Chapter 53, Acts of the 70th
16-4 Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
16-5 Texas Civil Statutes) apply to all bonds issued pursuant to this
16-6 chapter; provided, however, that in the event of any conflict
16-7 between such laws and this chapter, the provisions of this chapter
16-8 prevail.
16-9 ARTICLE 3. VALIDATION AND SAVINGS PROVISIONS;
16-10 EFFECTIVE DATE; EMERGENCY
16-11 SECTION 3.01. (a) All revenue bonds heretofore approved by
16-12 the attorney general and registered by the comptroller, which were
16-13 issued, sold, and delivered by any board, and which are payable
16-14 from or secured by a pledge of any revenues, income, receipts, or
16-15 other resources of such board, are hereby validated in all
16-16 respects, together with all proceedings authorizing the issuance
16-17 thereof, and said bonds and proceedings are and shall be valid and
16-18 binding obligations in accordance with their terms and conditions
16-19 for all purposes, as though they had been duly and legally issued
16-20 and authorized originally.
16-21 (b) Nothing in this Act limits or impairs any pledge or
16-22 covenant made by the governing board of an institution of higher
16-23 education with respect to any bond or note issued before the
16-24 effective date of this Act.
16-25 (c) The provisions of Subsection (b), Section 55.24,
17-1 Education Code, as added by Section 2.03 of this Act, regarding the
17-2 effect of an amendment or a repeal on a pledge or covenant made by
17-3 the governing board of an institution of higher education, apply to
17-4 any such amendment or repeal made by this Act.
17-5 SECTION 3.02. (a) This Act takes effect August 1, 1997, if
17-6 this Act may take effect on that date under Section 39, Article
17-7 III, Texas Constitution. Otherwise, this Act takes effect
17-8 September 1, 1997.
17-9 (b) The change in law made by this Act applies beginning
17-10 with tuition and fees charged for the 1997 fall semester.
17-11 SECTION 3.03. The importance of this legislation and the
17-12 crowded condition of the calendars in both houses create an
17-13 emergency and an imperative public necessity that the
17-14 constitutional rule requiring bills to be read on three several
17-15 days in each house be suspended, and this rule is hereby suspended,
17-16 and that this Act take effect and be in force according to its
17-17 terms, and it is so enacted.