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By: Morrison H.B. No. 3015
Substitute the following for H.B. No. 3015:
By: Chavez C.S.H.B. No. 3015
A BILL TO BE ENTITLED
AN ACT
relating to the tuition charged to students of institutions of
higher education and to student financial assistance funded by
tuition.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 54.0513, Education Code, is amended to
read as follows:
Sec. 54.0513. DESIGNATED TUITION [REDESIGNATION OF
BUILDING USE FEE]. (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 is
authorized to charge an amount designated as tuition 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) In addition to the amounts authorized by Subsection (a),
the governing board of an institution of higher education may
charge a resident undergraduate student an additional amount
designated as tuition as follows:
(1) for the 2003-2004 academic year, an amount not to
exceed $23 per semester credit hour;
(2) for the 2004-2005 academic year, an amount not to
exceed $46 per semester credit hour; and
(3) unless otherwise expressly provided by this code,
for the 2005-2006 academic year and thereafter, an amount the
governing board considers necessary, and charged under the terms
the governing board considers appropriate, for the effective
operation of the institution.
(c) For a nonresident student or a student enrolled in a
graduate or professional degree program, the governing board of an
institution of higher education may charge amounts designated as
tuition in the amounts and under the terms the governing board
considers necessary for the effective operation of the institution.
(d) 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.
(e) Amounts collected by an institution of higher education
under this section are institutional funds as defined by Section
51.009 [of this code] and shall be accounted for as designated
funds. These funds shall not be accounted for in a general
appropriations act in such a way as to reduce the general revenue
appropriation to a particular institution.
(f) [(d)] A governing board may waive all or part of the
tuition charged to a student under this section if it finds that the
payment of such tuition would cause an undue economic hardship on
the student.
(f) [(e)] Section 56.033 of this code requiring certain
percentage amounts of tuition to be set aside for grants and
scholarships does not apply to tuition collected under this
section.
(g) [(f)] A governing board of an institution of higher
education may continue to charge as tuition under this section the
amount that it charged as the building use fee at that institution
in the 1996-1997 academic year without holding a public hearing,
but may not increase tuition under this section above that amount
without holding a public hearing.
SECTION 2. Section 54.051, Education Code, is amended by
adding Subsection (o) to read as follows:
(o) Tuition may not be charged under this section or under
Section 54.0512 for any academic period after the 2004-2005
academic year.
SECTION 3. 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 15 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
resident undergraduate student must establish financial need in
accordance with rules and procedures established by the Texas
Higher Education Coordinating Board. Priority shall be given to
resident undergraduate 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, and work-study programs.
Sec. 56.012. NONRESIDENT UNDERGRADUATE STUDENT ASSISTANCE.
(a) The governing board of each institution of higher education
shall cause to be set aside not less than three percent of any
amount of tuition charged under Section 54.0513 to a nonresident
undergraduate student 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 nonresident undergraduate
students enrolled in the institution.
(b) To be eligible for assistance under this section, a
nonresident undergraduate student must establish financial need in
accordance with rules and procedures prescribed by the Texas Higher
Education Coordinating Board. Priority shall be given to
nonresident undergraduate 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) If the funds set aside under this section exceed the
amount required to provide financial assistance to each eligible
nonresident undergraduate students eligible, the institution may
use the excess funds to provide the same type of financial need for
students who qualify for financial assistance under Section 56.011.
SECTION 4. 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 30, 2004, 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; and
(4) 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 5. Section 54.619, Education Code, is amended by
adding Subsection (j) to read as follows:
(j) The board may suspend new enrollment in the program as
the board considers necessary to ensure the actuarial soundness of
the fund.
SECTION 6. Section 54.622, Education Code, is amended to
read as follows:
Sec. 54.622. TYPES OF PLANS. The board may, in its sole
discretion, [shall] make prepaid tuition contracts available for
the:
(1) junior college plan;
(2) senior college plan;
(3) junior-senior college plan; and
(4) private college plan.
SECTION 7. 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 8. 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.