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78R3013 JRJ-D

By:  Giddings                                                     H.B. No. 531



A BILL TO BE ENTITLED

AN ACT

relating to tuition rebate incentives for persons who complete 
certain degree and certificate programs without excessive credit 
hours.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 54.0065, Education Code, is amended by 
amending Subsections (a) - (f) and (h) and adding Subsections 
(a-1), (a-2), and (h-1) to read as follows:
	(a)  In this section:                                                   
		(1)  "Coordinating board" means the Texas Higher 
Education Coordinating Board.
		(2)  "General academic teaching institution," "public 
junior college," and "public technical institute" have the meanings 
assigned by Section 61.003.
	(a-1)  A qualified student at a general academic teaching 
institution is eligible for a rebate of a portion of the 
undergraduate tuition the student has paid if the student:
		(1)  is awarded a baccalaureate degree from the [a 
general academic teaching] institution; and
		(2)  has attempted no more than three hours in excess of 
the minimum number of semester credit hours required to complete 
the degree, including transfer credits and course credit earned 
exclusively by examination.
	(a-2)  A qualified student at a public junior college, public 
technical institute, or general academic teaching institution that 
offers only freshman-level and sophomore-level courses is eligible 
for a rebate of a portion of the undergraduate tuition the student 
has paid if the student:
		(1)  is awarded an associate degree or other degree or 
certificate in a program that requires at least 60 semester credit 
hours; and
		(2)  has attempted no more than three hours in excess of 
the minimum number of semester credit hours required to complete 
the degree or certificate, including transfer credits and course 
credit earned exclusively by examination.
	(b)  The amount of tuition to be rebated to a student under 
Subsection (a-1) [this section] is $1,000 and the amount of tuition 
to be rebated to a student under Subsection (c) is $500, unless the 
total amount of undergraduate tuition paid by the student to the 
institution of higher education awarding the degree or certificate
was less than that amount [$1,000], in which event the amount of 
tuition to be rebated is an amount equal to the amount of 
undergraduate tuition paid by the student to the institution.  
However, a student who paid the institution awarding the degree or 
certificate an amount of undergraduate tuition less than the 
applicable rebate amount specified by this subsection [$1,000] may 
qualify for an increase in the amount of the rebate, not to exceed a 
total rebate in the applicable amount specified by this subsection
[of $1,000], for any amount of undergraduate tuition the student 
paid to other institutions of higher education by providing the 
institution with proof of the total amount of that tuition paid to 
other institutions of higher education.
	(c)  A student who has transferred from another institution 
of higher education shall provide the institution awarding the 
degree or certificate an official transcript from each institution 
attended by the student in order that the total number of hours 
attempted by the student can be verified.
	(d)  To qualify for a rebate under this section, the student 
must have been a resident of this state and entitled to pay tuition 
at the rate provided by this chapter for a resident student at all 
times while pursuing the degree or certificate.
	(e)  All institutions of higher education shall notify each 
first-time freshman student of the tuition rebate program under 
this section.
	(f)  The institution awarding the degree or certificate
shall pay the rebate under this section from local funds.
	(h)  The legislature shall account in the General 
Appropriations Act for the rebates authorized by this section to an 
institution other than a public junior college in a way that 
provides a corresponding increase in the general revenue funds 
appropriated to the institution.  It is the intent of the 
legislature that rebates authorized by this section shall be 
financed by savings to the state resulting from reductions in the 
number of courses taken by undergraduate students.
	(h-1)  In addition to the amount appropriated for allocation 
to public junior colleges under Section 130.003, the legislature 
shall appropriate an amount sufficient to reimburse each public 
junior college for any rebates paid by the college under this 
section in the period used to determine the contact hours for the 
allocation under Section 130.003.  The coordinating board shall 
transfer the appropriate portion of the amount appropriated under 
this subsection to each public junior college in the same manner as 
the coordinating board transfers money allocated to the college 
under Section 130.003.
	SECTION 2.  (a)  This Act takes effect September 1, 2003.                      
	(b)  The change in law made by this Act applies only to a 
person who receives an associate degree or other degree or 
certificate from a public junior college, public technical 
institute, or general academic teaching institution that offers 
only freshman-level and sophomore-level courses on or after the 
effective date of this Act.