H.B. No. 3015
AN ACT
relating to the tuition and fees charged to students of
institutions of higher education, to financial assistance funded by
tuition, and to reports of availability and access by institutions
of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 54.0513, Education Code,
is amended to read as follows:
Sec. 54.0513. DESIGNATED TUITION [REDESIGNATION OF
BUILDING USE FEE].
SECTION 2. Sections 54.0513(a) and (b), Education Code, are
amended to read as follows:
(a) [The building use fee previously authorized in Section
55.16 of this code is redesignated as tuition.
[(b)] In addition to amounts that a governing board of an
institution of higher education is authorized to charge as tuition
under the other provisions of this chapter, the governing board,
under the terms the governing board considers appropriate, may [is
authorized to] charge any student an amount designated as tuition
that the governing board considers necessary for the effective
operation of the institution [in an academic year an amount not to
exceed the amount charged under Sections 54.051 or 54.0512, as
applicable, in that academic year].
(b) A governing board may set a different tuition rate for
each program and course level offered by each institution of higher
education. A governing board may set a different tuition rate as
the governing board considers appropriate to increase graduation
rates, encourage efficient use of facilities, or enhance employee
performance.
SECTION 3. Subchapter B, Chapter 54, Education Code, is
amended by adding Section 54.0515 to read as follows:
Sec. 54.0515. LEGISLATIVE OVERSIGHT COMMITTEE ON HIGHER
EDUCATION. (a) In this section, "committee" means the legislative
oversight committee on higher education.
(b) The legislative oversight committee on higher education
is composed of 12 members as follows:
(1) six members of the senate appointed by the
lieutenant governor; and
(2) six members of the house of representatives
appointed by the speaker of the house of representatives.
(c) The lieutenant governor shall designate one of the
committee members appointed by the lieutenant governor as committee
co-chair and the speaker shall designate one of the committee
members appointed by the speaker as committee co-chair.
(d) An appointed member of the committee serves at the
pleasure of the appointing official. In making appointments to the
committee, the appointing officials shall attempt to appoint
persons who represent the gender composition, minority
populations, and geographic regions of the state.
(e) It is the legislature's intent that each institution of
higher education, as a condition to tuition deregulation under
Section 54.0513, reasonably implement the following:
(1) each institution shall make satisfactory progress
towards the goals provided in its master plan for higher education
and in "Closing the Gaps," the state's master plan for higher
education; and
(2) each institution shall meet acceptable
performance criteria, including measures such as graduation rates,
retention rates, enrollment growth, educational quality, efforts
to enhance minority participation, opportunities for financial
aid, and affordability.
(f) The committee shall:
(1) meet at the call of either chair;
(2) monitor and regularly report to the legislature on
each institution of higher education's compliance with the
requirements of Subsection (e); and
(3) receive and review information concerning the
affordability and accessibility of higher education, including the
impact of tuition deregulation.
(g) The committee may request reports and other information
from institutions of higher education and the Texas Higher
Education Coordinating Board as necessary to carry out this
section.
(h) The committee shall make recommendations for any
legislative action the committee considers necessary to meet the
criteria provided by Subsection (e), and such other criteria as the
legislature may establish, and to improve higher education
affordability and access.
(i) This section does not create a cause of action.
SECTION 4. Section 54.624, Education Code, is amended to
read as follows:
Sec. 54.624. SENIOR COLLEGE PLAN. (a) Through the senior
college plan, a prepaid tuition contract shall provide prepaid
tuition and required fees for the beneficiary to attend a public
senior college or university for a specified number of
undergraduate credit hours not to exceed the typical number of
hours required for a baccalaureate degree awarded by a public
senior college or university.
(b) When the beneficiary of a senior college plan prepaid
tuition contract enrolls in a public senior college or university,
the university shall accept as payment in full of the beneficiary's
tuition and required fees the lesser of:
(1) the amount of tuition and required fees charged by
the institution; or
(2) an amount paid by the board under the contract
equal to the weighted average amount of tuition and required fees of
all public senior colleges and universities for that semester or
other academic period as determined by the board.
(c) Each public senior college or university shall provide
the information requested by the board on or before June 1 each year
to assist the board in determining the weighted average amount of
tuition and required fees of all public senior colleges and
universities for each semester or other academic term of the
following academic year for purposes of this section.
SECTION 5. Chapter 56, Education Code, is amended by adding
Subchapter B to read as follows:
SUBCHAPTER B. FINANCIAL ASSISTANCE FUNDED
FROM DESIGNATED TUITION
Sec. 56.011. RESIDENT UNDERGRADUATE STUDENT ASSISTANCE.
(a) The governing board of each institution of higher education
shall cause to be set aside not less than 20 percent of any amount of
tuition charged to a resident undergraduate student under Section
54.0513 in excess of $46 per semester credit hour. The funds set
aside under this section by an institution shall be used to provide
financial assistance for resident undergraduate students enrolled
in the institution.
(b) To be eligible for assistance under this section, a
student must establish financial need in accordance with rules and
procedures established by the Texas Higher Education Coordinating
Board. Priority shall be given to students who meet the
coordinating board definition of financial need and whose cost for
tuition and required fees is not met through other non-loan
financial assistance programs.
(c) The financial assistance provided under this section
may include grants, scholarships, work-study programs, student
loans, and student loan repayment assistance.
Sec. 56.012. RESIDENT GRADUATE STUDENT ASSISTANCE. (a)
The governing board of each institution of higher education shall
cause to be set aside not less than 15 percent of any amount of
tuition charged to a resident student enrolled in a graduate or
professional degree program under Section 54.0513 in excess of $46
per semester credit hour. The funds set aside under this section by
an institution shall be used to provide financial assistance for
resident students enrolled in graduate and professional degree
programs at the institution.
(b) To be eligible for assistance under this section, a
student must establish financial need in accordance with rules and
procedures established by the Texas Higher Education Coordinating
Board. Priority shall be given to students who meet the
coordinating board definition of financial need and whose cost for
tuition and required fees is not met through other non-loan
financial assistance programs.
(c) The financial assistance provided under this section
may include grants, scholarships, work-study programs, student
loans, and student loan repayment assistance.
Sec. 56.013. INFORMATION REGARDING FINANCIAL ASSISTANCE
FUNDED FROM DESIGNATED TUITION. The Texas Higher Education
Coordinating Board shall disseminate to each public or accredited
private high school in this state information regarding the
financial assistance available under this subchapter and shall
include information designed to educate high school students and
the parents of those students on available opportunities and
required preparation with respect to institutions of higher
education. The coordinating board shall recommend a method of
delivery of the information to parents and students under this
section.
SECTION 6. Subchapter H, Chapter 51, Education Code, is
amended by adding Section 51.4031 to read as follows:
Sec. 51.4031. REPORTS OF AFFORDABILITY AND ACCESS. (a) Not
later than November 1 of each year, the chief executive officer of
each institution of higher education, as defined by Section 61.003,
shall provide to the governing board of the institution a report for
the preceding fall, spring, and summer semesters that examines the
affordability and access of the institution.
(b) The report must include:
(1) statistical information on the percentage of gross
family income required for a student who is a resident of this state
to pay tuition and required fees charged by the institution;
(2) the criteria used by the institution to admit
students to the institution;
(3) an analysis of the criteria used to admit students
and to award financial assistance to students, considering the
mission of the institution and the purposes of higher education in
this state;
(4) an analysis of the manner in which the factors
described by Subdivisions (1)-(3) relate to:
(A) the regions of this state in which students
reside;
(B) the race or ethnicity of students;
(C) the gender of students; and
(D) the level of education achieved by the
parents of students; and
(5) comparisons of the institution with peer
institutions in this state and in other states with respect to
affordability and access.
(c) For purposes of the report, a student who applies for
admission to or enrolls in an institution and applies for financial
aid from the institution may be required to provide documentation
necessary for the institution to complete the report.
(d) An institution's report must be in the form prescribed
by the Texas Higher Education Coordinating Board in consultation
with the institution.
SECTION 7. (a) This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2003.
(b) The changes in law made by this Act relating to tuition
charged by institutions of higher education apply beginning with
the 2003 fall semester.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3015 was passed by the House on April
30, 2003, by the following vote: Yeas 87, Nays 54, 2 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3015 on May 29, 2003, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 3015 on June 1, 2003, by the following vote: Yeas 100,
Nays 43.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3015 was passed by the Senate, with
amendments, on May 27, 2003, by the following vote: Yeas 23, Nays
8; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
3015 on June 1, 2003, by the following vote: Yeas 17, Nays 14.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor