1-1                                   AN ACT
 1-2     relating to certain higher education tuition rates and loan amount
 1-3     limits.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 54.060, Education Code, is amended to
 1-6     read as follows:
 1-7           Sec. 54.060.  RESIDENT OF BORDERING STATE OR NATION OR
 1-8     PARTICIPANT IN STUDENT EXCHANGE PROGRAM:  TUITION.  (a)  The
 1-9     nonresident tuition fee prescribed by this chapter does not apply
1-10     to a nonresident student who is a resident of Arkansas, Louisiana,
1-11     New Mexico, or Oklahoma and who registers in a public upper-level
1-12     institution of higher education, Lamar State College--Orange, Lamar
1-13     State College--Port Arthur, a Texas public junior college, or a
1-14     public technical institute that is situated in a county immediately
1-15     adjacent to the state in which the nonresident student resides.
1-16     The nonresident tuition fee prescribed by this chapter does not
1-17     apply to a nonresident student who is a resident of New Mexico or
1-18     Oklahoma and who registers in a public technical institute that is
1-19     situated in a county that is within 100 miles of the state in which
1-20     the nonresident student resides and who is admitted for the purpose
1-21     of utilizing available instructional facilities.  The nonresident
1-22     student described in this subsection shall pay an amount equivalent
1-23     to the amount charged a Texas student registered at a similar
1-24     school in the state in which the nonresident student resides.  For
1-25     purposes of this subsection, "public upper-level institution of
 2-1     higher education" means an institution of higher education that
 2-2     offers only junior-level and senior-level courses or only
 2-3     junior-level, senior-level, and graduate-level courses.
 2-4           (b)  The foreign student tuition fee prescribed in this
 2-5     chapter does not apply to a foreign student who is a resident of a
 2-6     nation situated adjacent to Texas, demonstrates financial need as
 2-7     provided by Subsection (c), and [who] registers in:
 2-8                 (1)  any general academic teaching institution[, as
 2-9     defined in Section 61.003(3) of this code,] or component of the
2-10     Texas State Technical College System located in a county
2-11     immediately adjacent to the nation in which the foreign student
2-12     resides;
2-13                 (2)  [or who registers for] lower division courses at a
2-14     community or junior college having a partnership agreement pursuant
2-15     to Subchapter N, Chapter 51, [of this code,] with an upper-level
2-16     university and both institutions are located in the county
2-17     immediately adjacent to the nation in which the foreign student
2-18     resides;
2-19                 (3)  [, or who registers in] Texas A&M
2-20     University--Kingsville or Texas A&M University--Corpus Christi; or
2-21                 (4)  courses that are part of a graduate degree program
2-22     in public health and are conducted in a county immediately adjacent
2-23     to the nation in which the foreign student resides[, and, except as
2-24     provided by this subsection, who demonstrates a financial need
2-25     after the financial resources of the foreign student and the
2-26     student's family are considered].
 3-1           (c)  A [The] foreign student to whom Subsection (b) applies
 3-2     [described in this subsection] shall pay tuition equal to that
 3-3     charged Texas residents under Sections 54.051 and 54.0512 [of this
 3-4     code].  The coordinating board shall adopt rules governing the
 3-5     determination of financial need of students to whom Subsection (b)
 3-6     applies [under this subsection] and rules governing a pilot project
 3-7     to be established at general academic teaching institutions and at
 3-8     components of the Texas State Technical College System in counties
 3-9     that are not immediately adjacent to the nation in which the
3-10     foreign student resides.
3-11           (d) [(c)]  The coordinating board by rule shall establish a
3-12     program with the United Mexican States and with Canada for the
3-13     exchange of students and shall establish programs with other
3-14     nations for the exchange of students to the extent practicable.
3-15     The foreign student tuition fee prescribed in this chapter does not
3-16     apply to a foreign student participating in an exchange program
3-17     established under this section.
3-18           (e) [(d)]  The coordinating board shall adopt rules to
3-19     determine the number of students who may participate in the
3-20     programs provided by Subsections (b) and (d) [(c) of this section]
3-21     and the students who may transfer from any general academic
3-22     teaching institution or component of the Texas State Technical
3-23     College System in a county immediately adjacent to the nation in
3-24     which the foreign student resides to attend another general
3-25     academic teaching institution or component of the Texas State
3-26     Technical College System to complete a degree, certificate, or
 4-1     diploma or attend graduate school.
 4-2           (f) [(e)]  The payment of resident tuition at Lamar State
 4-3     College--Orange, Lamar State College--Port Arthur, or a public
 4-4     technical institute as authorized by Subsection (a) [of this
 4-5     section] or at an institution of higher education as authorized by
 4-6     Subsection (g) [(f)] does not affect the constitutionally dedicated
 4-7     funding to which institutions of higher education are entitled
 4-8     under Article VII, Section 17, of the Texas Constitution.
 4-9           (g) [(f)]  The nonresident tuition fee prescribed by this
4-10     chapter does not apply to a nonresident student who is a resident
4-11     of a county or parish of Arkansas, Louisiana, New Mexico, or
4-12     Oklahoma that is adjacent to this state and who registers in an
4-13     institution of higher education[, as defined by Section 61.003],
4-14     the governing board of which has agreed to admit the student at the
4-15     resident tuition fee prescribed by this chapter.  The state in
4-16     which the student resides must allow a resident of a county of this
4-17     state that is adjacent to that state to register in a public
4-18     institution of higher education in that state at the tuition fee
4-19     charged residents of that state.  The student shall pay tuition
4-20     equal to that charged residents of this state at the institution.
4-21           (h) [(g)]  In this section:
4-22                 (1)  "Coordinating board" means the Texas Higher
4-23     Education Coordinating Board.
4-24                 (2)  "General academic teaching institution" and[,]
4-25     "public technical institute" have [has] the meanings [meaning]
4-26     assigned by Section 61.003 [of this code].
 5-1           SECTION 2.  Subchapter B, Chapter 54, Education Code, is
 5-2     amended by adding Section 54.069 to read as follows:
 5-3           Sec. 54.069.  FOREIGN SERVICE OFFICERS.  A foreign service
 5-4     officer employed by the United States Department of State and
 5-5     enrolled in an institution of higher education is entitled to pay
 5-6     the tuition and fees at the rates provided for Texas residents if
 5-7     the person is assigned to an office of the department of state that
 5-8     is located in a foreign nation that borders on this state.
 5-9           SECTION 3.  Subsection (a), Section 56.053, Education Code,
5-10     is amended to read as follows:
5-11           (a)  The governing board of each institution shall adopt
5-12     rules providing for the terms of the loan, subject to the
5-13     following:
5-14                 (1)  the loan must be repaid over a period not to
5-15     exceed 90 days for a loan made for a regular semester or long
5-16     summer session or over a proportionately shorter period for loans
5-17     made for a six-week summer session;
5-18                 (2)  the loan must be evidenced by a promissory note
5-19     that bears interest at a rate of not more than five percent per
5-20     year; and
5-21                 (3)  the maximum loan amount per student may not be
5-22     greater [less] than an amount equal to the tuition and required
5-23     fees for the courses in which the student is actually enrolling.
5-24           SECTION 4.  (a)  The change in law made by this Act to
5-25     Section 54.060, Education Code, applies beginning with tuition
5-26     charged for the 2001 fall semester.
 6-1           (b)  Section 54.069, Education Code, as added by this Act,
 6-2     applies beginning with tuition charged for the 2001 fall semester.
 6-3           (c)  The change in law made by this Act to Section 56.053,
 6-4     Education Code, applies to each emergency student loan made under
 6-5     Subchapter D, Chapter 56, Education Code, on or after the effective
 6-6     date of this Act.
 6-7           SECTION 5.  This Act takes effect immediately if it receives
 6-8     a vote of two-thirds of all the members elected to each house, as
 6-9     provided by Section 39, Article III, Texas Constitution.  If this
6-10     Act does not receive the vote necessary for immediate effect, this
6-11     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 743 passed the Senate on
         April 5, 2001, by the following vote:  Yeas 30, Nays 0, one
         present, not voting; and that the Senate concurred in House
         amendment on May 1, 2001, by the following vote:  Yeas 30, Nays 0,
         one present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 743 passed the House, with
         amendment, on April 27, 2001, by the following vote:  Yeas 143,
         Nays 0, two present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor