78R8703 JSA-D
By: Ogden S.B. No. 1485
A BILL TO BE ENTITLED
AN ACT
relating to tuition and fees charged by institutions of higher
education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 51.009(c), Education Code, is amended to
read as follows:
(c) Each of the following shall be accounted for as
educational and general funds: net tuition, special course fees
charged under Sections 54.051(e) and (l), [Education Code,] lab
fees, student teaching fees, fees collected under Section 54.0025,
[hospital and clinic fees, organized activity fees,] proceeds from
the sale of educational and general equipment, and indirect cost
recovery fees.
SECTION 2. Section 54.001, Education Code, is amended by
adding Subdivision (1-a) to read as follows:
(1-a) "Fee" means an essential student education fee
or a discretionary student services fee imposed by an institution
of higher education under Section 54.0025.
SECTION 3. Subchapter A, Chapter 54, Education Code, is
amended by adding Section 54.0025 to read as follows:
Sec. 54.0025. CLASSIFICATION OF TUITION AND FEES; FEE
AUTHORITY. (a) An institution of higher education, except as
permitted by other law, may collect only the following charges from
a student at the institution:
(1) tuition in the amounts authorized by this chapter;
(2) essential student education fees; and
(3) discretionary student services fees.
(b) Tuition is the student's share of the minimum amount of
money determined by the legislature to be necessary to operate the
essential academic programs of an institution, including the direct
cost of instruction and administration of the institution's
academic programs and of the operation of the infrastructure
required to conduct the essential academic programs of the
institution.
(c) Essential student education fees are the fees
determined by the governing board of an institution to be necessary
to supplement the total tuition collected from all students to
support the institution in complying with the institution's
statutory or constitutional mission or to maintain any necessary
accreditation. The governing board of an institution of higher
education may impose the essential student education fees the
governing board considers appropriate. In adopting an essential
student education fee, the governing board must make a written
determination that the institution cannot accomplish its mission
without charging the fee and will lose any necessary accreditation.
The total amount of essential student education fees charged to a
student may not exceed 150 percent of the amount of tuition that the
student would pay if the student paid full tuition at the rate
provided for Texas residents.
(d) Discretionary student services fees are fees relating
to services provided to students of an institution that are not
related to maintaining the academic quality or accreditation of the
institution. The governing board of an institution of higher
education may impose the discretionary student services fees the
governing board considers appropriate. The adoption and amount of
a discretionary student services fee must be approved by a majority
vote of the institution's students participating in a general
election called for that purpose. A group hospital and medical
services fee, medical services fee, student recreation or
recreational sport fee, bus or other transportation fee,
international education fee, statue fee, student union fee,
university center fee, or an art and performance center fee is a
discretionary student services fee. The total amount of
discretionary student services fees charged to a student may not
exceed the amount of tuition that the student would pay if the
student paid full tuition at the rate provided for Texas residents.
(e) Intercollegiate athletics at an institution may not be
funded by revenue derived from student charges other than a
discretionary student services fee. A discretionary student
services fee to fund or support intercollegiate athletics and any
increase in the amount of such a fee must be submitted for student
body approval separately from any other discretionary student
services fee. The issue for approval must clearly state the uses of
the fee and the amount of the proposed fee or fee increase. This
subsection does not prohibit an institution from charging a student
of the institution an admission charge to an intercollegiate
athletic event.
SECTION 4. Section 54.005, Education Code, is amended to
read as follows:
Sec. 54.005. RIGHT TO COLLECT OTHER [SPECIAL] FEES. The
provisions of this subchapter requiring or authorizing the
governing board of each institution of higher education to collect
tuition and fees do not deprive the board of the authority [right]
to collect special fees authorized by law, fees for nonessential
discretionary goods or services provided for the convenience of
students at the institution, or fees that are fines for conduct that
violates an institution's disciplinary regulations.
SECTION 5. Sections 54.006(b) and (c), Education Code, are
amended to read as follows:
(b) A general academic teaching institution or medical and
dental unit shall refund to a student withdrawing from the
institution or unit an amount equal to the product of the amount of
tuition and essential student education [mandatory] fees collected
for each course in which the student is enrolled on the date the
student withdraws multiplied by the applicable percentage derived
from the following tables:
(1) if the student withdraws during a fall or spring
semester or comparable trimester:
(A) prior to the first class day 100 percent
(B) during the first five class days 80 percent
(C) during the second five class days 70 percent
(D) during the third five class days 50 percent
(E) during the fourth five class days 25 percent
(F) after the fourth five class days None; and
(2) if the student withdraws during a summer term:
(A) prior to the first class day 100 percent
(B) during the first, second, or third class
day80 percent
(C) during the fourth, fifth, or sixth class
day50 percent
(D) seventh day of class and thereafter None.
(c) Separate withdrawal refund schedules may be established
for discretionary student services fees or other [optional] fees
that may be collected under Section 54.005 [such as intercollegiate
athletics, cultural entertainment, parking, and yearbooks].
SECTION 6. Subchapter D, Chapter 54, Education Code, is
amended by adding Section 54.2015 to read as follows:
Sec. 54.2015. APPLICATION OF EXEMPTIONS. (a) For purposes
of this subchapter, unless otherwise expressly stated:
(1) an exemption from fees or required fees is an
exemption from essential student education fees collected under
Section 54.0025; and
(2) an exemption from tuition fees, charges, or
student charges is an exemption from tuition and from essential
student education fees collected under Section 54.0025.
(b) For purposes of this section, a waiver of tuition, fees,
or other charge made or authorized by this subchapter is considered
an exemption from the tuition, fees, or other charge.
SECTION 7. The heading to Section 54.5031, Education Code,
is amended to read as follows:
Sec. 54.5031. STUDENT SERVICES FEE ADVISORY COMMITTEE.
SECTION 8. Sections 54.5031(a), (f), and (g), Education
Code, are amended to read as follows:
(a) A student services fee advisory committee is
established at each institution of higher education [except The
University of Texas at Austin] to advise the governing board and
administration of the institution on the type, amount, and
expenditure of discretionary [compulsory fees for] student
services fees collected under Section 54.0025 [54.503 of this
code].
(f) The committee shall:
(1) study the type, amount, and expenditure of each
discretionary student services fee [a compulsory fee under Section
54.503 of this code]; and
(2) meet with appropriate administrators of the
institution, submit a written report on the study under Subdivision
(1) of this subsection, and recommend the type, amount, and
expenditure of each fee [a compulsory fee] to be charged for the
next academic year.
(g) Before recommending the student services fee budget to
the governing board of the institution, the president of the
institution shall consider the report and recommendations of the
committee. If the president's recommendations to the governing
board are substantially different from the committee's
recommendations to the president, the administration of the
institution shall notify the committee not later than the last date
on which the committee may request an appearance at the board
meeting. On request of a member of the committee, the
administration of the institution shall provide the member with a
written report of the president's recommendations to the board.
SECTION 9. Section 54.504(a), Education Code, is amended to
read as follows:
(a) The governing board of an institution of higher
education may fix the rate of incidental fees to be paid to an
institution under its governance by students and prospective
students and may make rules for the collection of the fees and for
the distribution of the funds, such funds to be accounted for as
other designated funds. The rate of an incidental fee must
reasonably reflect the actual cost to the university of the
materials or services for which the fee is collected. In fixing
such rate, the governing board may consult with a student services
fee advisory committee which the governing board may establish if
such student committee does not presently exist.
SECTION 10. Section 54.601, Education Code, is amended by
adding Subdivision (14) to read as follows:
(14) "Required fees" means essential student
education fees collected under Section 54.0025.
SECTION 11. Section 55.16(c), Education Code, as amended by
Chapters 769 and 1432, Acts of the 77th Legislature, Regular
Session, 2001, is reenacted and amended to read as follows:
(c) A board shall fix each rental, rate, charge, or fee that
the board has authority under this title to fix in an amount
determined to be necessary to pay or provide, for each activity or
service, all associated capital costs, including debt service,
operation and maintenance costs, including associated overhead
costs of a system or institution, and prudent reserves. Except as
otherwise provided by Subsection (e), this section does not
authorize a board to impose a rental, rate, charge, or fee at an
amount exceeding a limit imposed by another provision of this
title, including the limits imposed by Section 54.0025 on the total
amounts of student fees.
SECTION 12. Section 56.051, Education Code, is amended to
read as follows:
Sec. 56.051. EMERGENCY LOANS. (a) Each institution of
higher education may establish an emergency loan program under
which students are loaned money to pay tuition and required fees.
(b) In this subchapter, "required fees" means essential
student education fees collected under Section 54.0025.
SECTION 13. Sections 54.0513, 54.503, 54.5061, 54.5062,
54.507, 54.508, 54.5081, 54.5082, 54.5085, 54.5089, 54.50891,
54.509, 54.5091, 54.510, 54.511, 54.512, 54.5121, 54.5122, 54.513,
54.5131, 54.5132, 54.5133, 54.5134, 54.514, 54.515, 54.518,
54.519, 54.520, 54.521, 54.522, 54.5221, 54.5222, 54.523, 54.524,
54.525, 54.526, 54.527, 54.528, 54.529, 54.530, 54.531, 54.532,
54.533, 54.5331, 54.534, 54.5341, 54.5342, 54.535, 54.536, 54.537,
54.5371, 54.5372, 54.538, 54.539, 54.540, 54.541, 54.542, 54.543,
54.544, 54.545, and 54.546, Education Code, are repealed.
SECTION 14. (a) The change in law made by this Act applies
beginning with tuition and fees charged by an institution of higher
education for the 2004 fall semester.
(b) Not later than January 1, 2004, each institution of
higher education shall adopt a schedule for the amount of tuition or
fees to be charged for the 2004 fall semester under Section 54.0025,
Education Code, as added by this Act.
(c) If the governing board of an institution of higher
education has pledged revenue derived from any tuition, fee, or
other charge collected under a law repealed by this Act to the
payment of principal and interest on any bonds or notes, the repeal
of the law does not affect any pledge or covenants with respect to
any of those bonds or notes, and those pledges and covenants remain
in full force and effect in accordance with their terms and
provisions, it being the intent of the legislature that this Act not
impair the ability of an institution of higher education to satisfy
obligations incurred in respect to any bonds or notes issued by the
institution. The governing board may continue to collect the
tuition, fee, or other charge as necessary to pay the principal or
interest on the bonds or notes. The governing board shall classify
the tuition, fee, or charge as tuition, an essential student
education fee, or a discretionary student services fee under
Section 54.0025, Education Code, as added by this Act, and treat the
fee accordingly, except that the applicable limit on the total
amount of essential student education fees or discretionary student
service fees under Section 54.0025 does not apply to the extent that
charging a total amount of fees in excess of the applicable limit is
necessary to allow the governing board to satisfy obligations
incurred in respect to any bonds or notes described by this
subsection.
(d) Nothing in this Act limits or impairs any pledge or
covenant made by the governing board of an institution of higher
education with respect to any bond or note issued before the
effective date of this Act.
SECTION 15. 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.