By: Morrison, Brown of Brazos H.B. No. 3015
(Senate Sponsor - Shapiro)
(In the Senate - Received from the House May 1, 2003;
May 7, 2003, read first time and referred to Subcommittee on Higher
Education; May 15, 2003, rereferred to Committee on Education;
May 22, 2003, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 5, Nays 2; May 22, 2003,
sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 3015 By: Shapiro
A BILL TO BE ENTITLED
AN ACT
relating to the tuition and fees charged to students of
institutions of higher education, to financial assistance funded by
tuition, and to accountability reports by institutions of higher
education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 54, Education Code, is
amended by adding Section 54.0031 to read as follows:
Sec. 54.0031. EXPIRATION OF AUTHORITY TO IMPOSE TUITION AND
STUDENT FEES. (a) A general academic teaching institution, as
defined by Section 61.003, may not impose, charge, or collect
tuition or a fee authorized by this title from any student enrolled
at the institution for a term or semester that begins on or after
January 1, 2006.
(b) This section does not apply to a charge or fee for goods
or services that are not provided as part of the institution's
academic program, such as a charge for housing or food service or
for attendance at athletic or cultural events, unless every student
not exempted by law from payment of the charge or fee who registers
at the institution is required to pay the charge or fee.
SECTION 2. 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)
or the other provisions of this chapter, the governing board of an
institution of higher education may charge a resident undergraduate
student an amount designated as tuition as follows:
(1) for the 2003-2004 academic year, an amount not to
exceed $23 per semester credit hour; and
(2) for the 2004-2005 academic year, an amount not to
exceed $46 per semester credit hour.
(b-1) The governing board of an institution of higher
education may not increase the maximum amount of tuition charged
under this section by combining or aggregating the additional
amounts permitted by Subsections (b)(1) and (2).
(c) For a nonresident student or a student enrolled in a
graduate degree program, including a dental or medical degree
program, a graduate degree program in an allied health field, or
another graduate-level 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 the tuition authorized by this
section at a different rate for each program and course level
offered by an institution of higher education and may set different
tuition rates at an institution for different academic periods or
based on any other factor the governing board considers appropriate
to increase graduation rates, enhance employee performance, or
further the efficient use of facilities or resources. This
subsection does not authorize a governing board to set tuition in
violation of a limitation provided by another provision of this
chapter.
(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.
(g) [(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.
(h) [(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 3. 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 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. UNDERGRADUATE STUDENT ASSISTANCE. (a) The
governing board of each institution of higher education shall cause
to be set aside:
(1) not less than 20 percent of the amount of tuition
charged to a resident undergraduate student under Section 54.0513
in excess of $46 per semester credit hour; and
(2) not less than three percent of the amount of
tuition charged to a nonresident undergraduate student under
Section 54.0513 in excess of $46 per semester credit hour.
(b) The money set aside under this section shall be used to
support:
(1) undergraduate work-study programs at the
institution; and
(2) the Texas B-on-time loan program, if that program
is enacted by the 78th Legislature.
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 the amount of
tuition charged to a resident student enrolled in a graduate or
professional degree program under Section 54.0513(c) in excess of
$46 per semester credit hour.
(b) The money set aside under this section shall be used to
provide financial assistance for resident students enrolled in
graduate and professional degree programs at the institution.
(c) The financial assistance provided under this section
may include grants, scholarships, and work-study programs.
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 for
delivering the information to parents and students under this
section.
SECTION 6. Subchapter H, Chapter 51, Education Code, is
amended by adding Section 51.4015 to read as follows:
Sec. 51.4015. ACCOUNTABILITY REPORTS. (a) In this
section, "institution of higher education," "governing board," and
"university system" have the meanings assigned by Section 61.003.
(b) In furtherance of the policies of this state to provide
an affordable, accessible, accountable, and high-quality system of
higher education that prepares individuals for a changing economy
and workforce and to promote the development and application of
knowledge through instruction, research, and public service, the
Texas Higher Education Coordinating Board shall adopt standards to
measure the performance of each institution of higher education.
(c) The standards must include the standards included in the
performance system established by the coordinating board for the
master plan for higher education and any other standards the
coordinating board considers appropriate to measure:
(1) the availability of each institution to potential
students and the success of students in meeting the academic
requirements of the institution;
(2) academic excellence;
(3) service to and support by communities; and
(4) organizational efficiency and productivity.
(d) The governing board of each institution of higher
education, other than a public junior college, shall prepare a
report of the performance of the institution in meeting the
standards adopted under this section in each academic year. The
governing board may prepare a single report for all the
institutions under the jurisdiction of the governing board.
(e) The governing board shall deliver:
(1) a copy of the report to the coordinating board not
later than January 1 following the end of the academic year for
which the report is prepared; and
(2) copies of the reports for each of the two preceding
academic years to the governor's budget office, lieutenant
governor, speaker of the house of representatives, Legislative
Budget Board, legislative audit committee, and presiding officer of
the standing committee of each house of the legislature with
primary jurisdiction over higher education not later than January 1
of each odd-numbered year.
SECTION 7. (a) The Senate Committee on Education and the
House Committee on Higher Education, after the regular session of
the 78th Legislature, shall jointly conduct a study of alternative
methods by which rates for tuition and fees at public institutions
of higher education may be set by the legislature and by the
governing boards of those institutions. The study shall consider
the impact of those alternatives on:
(1) revenue for the operation of institutions of
higher education;
(2) enrollment;
(3) graduation;
(4) educational quality;
(5) affordability;
(6) student financial aid;
(7) state college savings and guaranteed tuition
plans;
(8) progress toward the goals and targets of the
master plan for higher education established under Section
61.051(a), Education Code; and
(9) any other factors determined by the committees to
be significant.
(b) The chairs of the committees, in consultation with the
members, shall jointly determine the procedures governing the
conduct of the study.
(c) The committees shall present the results of the study
along with any recommendations to the legislature not later than
December 1, 2004.
SECTION 8. (a) The changes in law made by this Act relating
to tuition charged by institutions of higher education apply
beginning with the 2003 fall semester.
(b) The initial report required by Section 51.4015,
Education Code, as added by this Act, shall be prepared for the
2002-2003 academic year.
SECTION 9. 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.
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