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78R1704 JSA-D
By: Brown of Brazos H.B. No. 3064
A BILL TO BE ENTITLED
AN ACT
relating to tuition and other revenue charged or received by public
institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 54.008(a), (b), (c), and (d), Education
Code, are amended to read as follows:
(a) The tuition rates prescribed [provided] by Subchapter B
[of this chapter] are minimum rates. The governing board of each
institution of higher education shall set resident and nonresident
tuition for undergraduate or graduate programs for that institution
at the rate or rates the governing board considers necessary for the
effective administration of the institution. Unless otherwise
provided by law, a tuition rate set under this section may not be
less than the applicable minimum rate prescribed by Subchapter B.
The governing [Except as provided by Subsections (e), (f), and (g),
the governing board of each institution of higher education shall
set tuition for graduate programs for that institution at a rate
that is at least equal to that prescribed by Subchapter B, but that
is not more than twice the rate prescribed by Subchapter B. Between
the maximum and minimum rates, the] board may set a different
tuition rate for each program [the differential tuition among
programs] offered by an institution of higher education.
(b) The governing board of a university system is not
required to set the same [uniform] tuition rates at [for graduate
programs among] the component institutions of the system.
(c) The limit on tuition rates provided by Subsection (a)
[of this section] does not apply to tuition at a public junior
college.
(d) In its formulas established under Section 61.059, the
coordinating board shall account for tuition charged at a rate in
excess of [The difference between] the minimum rate prescribed by
Subchapter B as if the tuition was charged at the applicable minimum
rate prescribed by Subchapter B [of this chapter and that set by
the governing board of an institution of higher education for an
institution shall not be accounted for in an appropriations act in
such a way as to reduce the general revenue appropriations to that
institution].
SECTION 2. Section 54.064, Education Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) An institution of higher education may permit a [A]
student who holds a competitive scholarship of at least $1,000 for
the academic year or summer for which the student is enrolled and
who is not otherwise entitled to pay tuition at the rate provided
for Texas residents [either a nonresident or a citizen of a country
other than the United States of America is entitled] to pay an
amount of tuition that is less than the amount of nonresident
tuition the student would otherwise be required to pay, but not less
than the amount of tuition the person would pay if the person were
classified as a Texas resident [the fees and charges required of
Texas residents without regard to the length of time the student has
resided in Texas]. To be entitled to reduced tuition under this
section, the [The] student must compete with other students,
including Texas residents, for the scholarship and the scholarship
must be awarded by a scholarship committee officially recognized by
the administration and be approved by the Texas Higher Education
Coordinating Board under criteria developed by the board.
(c) In its formulas established under Section 61.059, the
Texas Higher Education Coordinating Board shall account for a
student who pays tuition at a reduced rate under this section as if
the student paid the full amount of nonresident tuition the student
would be required to pay if the tuition charged to the student were
not reduced under this section.
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 54.622, 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 5. 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 6. Section 56.033(a), Education Code, is amended to
read as follows:
(a) The governing board of each institution of higher
education, including the Texas State Technical College System,
shall cause to be set aside:
(1) not less than 15 percent nor more than 20 percent
out of the portion of each resident student's tuition charge
attributable to the minimum tuition rates prescribed by Subchapter
B, Chapter 54, [under Section 54.051] as provided by the General
Appropriations Act for the applicable academic year;
(2) three percent out of the portion of each
nonresident student's tuition charge attributable to the minimum
tuition rates prescribed by Subchapter B, Chapter 54 [under Section
54.051];
(3) not less than six percent nor more than 20 percent
out of each resident student's hourly tuition charge, and $1.50 out
of each nonresident student's hourly tuition charge, for academic
courses at a public community or junior college; and
(4) not less than six percent nor more than 20 percent
of hourly tuition charges for vocational-technical courses at a
public community or junior college.
SECTION 7. Section 145.001(c), Education Code, is amended
to read as follows:
(c) In the General Appropriations Act for a state fiscal
year ending on or before August 31, 2007, the legislature may adopt
a method of funding provision that provides for the application of
certain locally generated funds to the general revenue funds to be
appropriated to a general academic teaching institution or a
medical or dental unit in such a way as to reduce the general
revenue to be appropriated to it. If such a provision is adopted,
it is specifically provided:
(1) that the amount [no more than 50 percent] of funds
received by a general academic teaching institution or a medical or
dental unit for paying overhead costs that may be [so] applied to
reduce general revenue may not exceed:
(A) 50 percent for a fiscal year that ends on or
before August 31, 2003;
(B) 40 percent for the fiscal year ending August
31, 2004;
(C) 30 percent for the fiscal year ending August
31, 2005;
(D) 20 percent for the fiscal year ending August
31, 2006; and
(E) 10 percent for the fiscal year ending August
31, 2007;
(2) that no less than 50 percent of the funds that are
retained but not applied to reduce general revenue appropriations
shall be expended under guidelines approved by the institution's
governing board for projects encouraging further research at the
unit, agency, or department level at which the research was
conducted, including:
(A) conducting early pregnant feasibility
studies;
(B) preparing competitive proposals for
sponsored programs;
(C) providing carryover funding for research
teams to provide continuity between externally funded projects;
(D) supporting new researchers pending external
funding;
(E) engaging in research programs of critical
interest to the general welfare of the citizens of this state;
(F) purchasing capital equipment directly
related to expanding the research capability of the institution;
and
(G) research or project administrative costs;
and
(3) that the retained funds not applied to reduce
general revenue appropriations remaining after the application of
Subdivision (2) of this subsection will be used by a general
academic teaching institution or a medical or dental unit to
support research as approved by a general academic teaching
institution or a medical or dental unit.
SECTION 8. Effective September 1, 2007, Section 145.001(c),
Education Code, is amended to read as follows:
(c) Funds retained by a defined institution under
Subsection (b) must be used as follows [In the General
Appropriations Act, the legislature may adopt a method of funding
provision that provides for the application of certain locally
generated funds to the general revenue funds to be appropriated to a
general academic teaching institution or a medical or dental unit
in such a way as to reduce the general revenue to be appropriated to
it. If such a provision is adopted, it is specifically provided]:
(1) not [that no more than 50 percent of funds received
by a general academic teaching institution or a medical or dental
unit for paying overhead costs may be so applied;
[(2) that no] less than 50 percent of the funds [that
are retained but not applied to reduce general revenue
appropriations] shall be expended under guidelines approved by the
institution's governing board for projects encouraging further
research at the unit, agency, or department level at which the
research was conducted, including:
(A) conducting early pregnant feasibility
studies;
(B) preparing competitive proposals for
sponsored programs;
(C) providing carryover funding for research
teams to provide continuity between externally funded projects;
(D) supporting new researchers pending external
funding;
(E) engaging in research programs of critical
interest to the general welfare of the citizens of this state;
(F) purchasing capital equipment directly
related to expanding the research capability of the institution;
and
(G) research or project administrative costs;
and
(2) [(3) that] the [retained] funds [not applied to
reduce general revenue appropriations] remaining after the
application of Subdivision (1) must [(2) of this subsection
will] be used by a general academic teaching institution or a
medical or dental unit to support research at the [as approved by a
general academic teaching] institution or [a medical or dental]
unit.
SECTION 9. The following statutes are repealed:
(1) Sections 54.008(e), (f), and (g), Education Code;
and
(2) Section 54.0513, Education Code.
SECTION 10. (a) Tuition rates set by the governing board of
an institution of higher education before the effective date of
this Act for the 2003-2004 academic year or a subsequent academic
year, including the rate of tuition to be charged under former
Section 54.0513, Education Code, remain in effect for that academic
year unless changed by the governing board under Section 54.008,
Education Code, as amended by this Act.
(b) If before the effective date of this Act an amount of
tuition to be collected after the effective date of this Act under
former Section 54.0513, Education Code, was pledged to the payment
of bonds or other obligations of an institution of higher education
or university system, the governing board of the institution or
system shall impose tuition under Section 54.008, Education Code,
as amended by this Act, at a rate or rates in excess of the minimum
tuition rates prescribed by Subchapter B, Chapter 54, Education
Code, sufficient to impose not less than the amount of tuition under
former Section 54.0513, Education Code, pledged to the payment of
those bonds or other obligations. A pledge made before the
effective date of this Act to collect an amount of tuition under
former Section 54.0513, Education Code, is considered to be a
pledge to collect the same amount of tuition under Section 54.008,
Education Code, as amended by this Act, in excess of the minimum
tuition rates prescribed by Subchapter B, Chapter 54, Education
Code.
SECTION 11. This Act applies to each academic term or
semester that begins after the effective date of this Act, other
than a term or semester before the 2003 fall semester.
SECTION 12. 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.