SRC-ARR S.B. 345 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 345
76R3815 JSA-DBy: Bivins
Education
2/8/1999
As Filed


DIGEST 

Currently, Texas law prohibits the state from funding undergraduate
semester credit hours taken by a student in excess of 170 hours beginning
with the 1999 Fall semester. Since higher education institutions would not
receive funding for excessive hours, S.B. 1907, 75th Legislature,
authorized institutions to charge a higher rate of tuition for hours above
the 170-hour cap. S.B. 345 grandfathers all students who in enrolled in
higher education prior to 1999, ensuring that students have advance
knowledge of the undergraduate hour cap. It also replaces the 170-hour cap
with a tiered cap based on the minimum number of hours required to complete
the student's degree, and removes exceptions to the cap that complicate
tracking a student's accumulation of hours. 

PURPOSE

As proposed, S.B. 345 regulates the formula funding and tuition charged for
certain excess credit hours of undergraduate students attending
institutions of higher education.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 61.0595, Education Code, by amending Subsections
(a), (b), and (d), and adding Subsection (e),  to prohibit the Texas Higher
Education Coordinating Board (coordinating board) from including funding
for semester credit hours earned by a resident undergraduate student who
before the semester or other academic session begins has previously
attempted the maximum number, rather than 170 or more, semester credit
hours provided by this subsection. Provides that the maximum number of
semester credit hours previously attempted by a student to be used for the
purposes of this subsection is determined according to the minimum number
of semester credit hours required for completion of the degree or
certificate program in which the student is enrolled in the term or
semester for which the funding is being determined. Sets forth a table
describing the minimum and maximum number of credit hours.  Provides that
for purposes of Subsection (a), an undergraduate student who is not
enrolled in a degree or certificate program is considered to be enrolled in
a degree program requiring a minimum of 120 semester credit hours.
Provides that a technical course is not counted for purposes of determining
whether the student has previously earned the number of semester credit
hours specified by Subsection (a). Provides that Subsection (a) does not
apply to funding for semester credit hours earned by a student who
initially enrolled as an undergraduate student in any institution of higher
education before the 1999 fall semester.  Requires the board to include
funding for those semester credit hours without consideration of Subsection
(a). Deletes the provision stating that Subsection (a) does not apply to
students enrolled in certain programs. 

SECTION 2. Amends Section 54.068, Education Code, to require an institution
of higher education to charge a resident student tuition at a higher rate
than the rate charged to other resident students, not to exceed the rate
charged to nonresident students, for a course for which Section 61.0595
requires the coordinating board, to exclude funding for the semester credit
hours for which the student registers.  Requires the legislature to compute
the local funds available to each institution as if the additional  amount
of tuition collected under Subsection (a), were not collected.  Provides
that for the 1999-2000 and 2000-2001 academic years, this section does not
apply to the tuition  charged to a student who initially enrolled as an
undergraduate student in an institution of higher education before the 1999
fall semester. Provides that this subsection expires January 1, 2002.
Authorizes an institution to charge a student tuition at a higher rate than
the rate charged to other resident students, if the semester credit hours
for which the student registers would have been excluded from the
coordinating board's funding recommendations for those academic years under
Section 61.0595. Provides that this subsection expires January 1, 2002.
Prohibits  appropriation to institutions of higher education for the 1999-
2000 and 2000-2001 state fiscal year from including funding for enrollment
growth attributed to certain semester credit hours. Provides that this
subsection expires January 1, 2002. Makes conforming and nonsubstantive
changes. 

SECTION 3. Provides that Section 61.0595, Education Code, applies beginning
with the funding recommendations made under Section 61.059,  Education
Code, for the 2001-2002 academic year. Provides that Section 54.068,
Education Code, applies beginning with the tuition charged for the 1999
fall semester as provided by Section 3.02, Chapter 1073, Acts of the 75th
Legislature, Regular Session, 1997. 

SECTION 4. Emergency clause.
                      Effective date: upon passage.