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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