78R1883 JSA-D

By:  Ogden                                                        S.B. No. 1486



A BILL TO BE ENTITLED

AN ACT

relating to funding of public institutions of higher education, 
including tuition rates that may be charged by those institutions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 54.051, Education Code, is amended by 
amending Subsection (d) and adding Subsection (o) to read as 
follows:
	(d)  Unless a different rate is specified by this section, 
tuition for a nonresident student at a general academic teaching 
institution or medical and dental unit is an amount per semester 
credit hour set by the governing board of the institution or unit as 
the governing board considers necessary for the efficient 
administration of the institution or unit.  The amount may not be 
less than [equal to] the average of the nonresident undergraduate 
tuition charged to a resident of this state at a public state 
university in each of the five most populous states other than this 
state, as computed by the coordinating board under this subsection.  
The coordinating board shall set the minimum tuition rate provided 
by this subsection for each academic year and report that rate to 
each appropriate institution not later than January 1 of the 
calendar year in which the academic year begins, or as soon after 
that January 1 as practicable.  In computing the minimum tuition 
rate, the coordinating board shall use the nonresident tuition 
rates for the other states in effect for the academic year in 
progress when the coordinating board makes the computation.
	(o)  Notwithstanding any other provision of this subchapter, 
for a summer term or session the governing board of an institution 
of higher education may charge resident or nonresident tuition, 
including tuition for students enrolled in graduate or professional 
school courses, at the rates the governing board determines 
appropriate for the efficient operation of the institution.
	SECTION 2.  Section 56.054, Education Code, is amended to 
read as follows:   
	Sec. 56.054.  SOURCE OF PROGRAM FUNDING.  The loans may
[shall] be made from any available [the] funds of the institution 
[set aside for that purpose under Section 56.033 of this code].
	SECTION 3.  Section 61.059, Education Code, is amended by 
adding Subsection (c-1) and amending Subsection (f) to read as 
follows:
	(c-1)  In the formulas for basic funding, the board shall 
account for a nonresident student and for a resident student 
enrolled in a summer term or session as if the tuition and required 
fees collected from the student by the institution of higher 
education in which the student is enrolled are sufficient to cover 
the direct and indirect costs to the institution for providing 
educational services and facilities to the student.  The formulas  
may not include funding from any other source to cover the basic 
funding required for the student.
	(f)  The board shall recommend to the governor and the 
Legislative Budget Board supplemental contingent appropriations to 
provide for increases in enrollment at the institutions of higher 
education.  The board may not recommend contingent appropriations 
for increases in the enrollment of students for whom tuition and 
required fees are treated in the formulas developed by the board as 
the sole source of basic funding as provided by Subsection (c-1).
Contingent appropriations may be made directly to the institutions 
or to the board, as the legislature may direct in each biennial 
appropriations act.  In the event the contingent appropriation is 
made to the board, the funds shall be allocated and distributed by 
the board to the institutions as it may determine, subject only to 
such limitations or conditions as the legislature may prescribe.
	SECTION 4.  (a) Subchapter C, Chapter 56, Education Code, is                   

repealed.                                                                     
	(b)  Section 61.059(m), Education Code, is repealed.                           
	SECTION 5.  (a)  Except as provided by Subsection (b) of this 
section, the changes in law made by this Act apply beginning with 
the 2003-2004 academic year.
	(b)  The change in law made by this Act to Section 61.059, 
Education Code, applies beginning with the formulas developed under 
that section for funding institutions of higher education in the 
state fiscal biennium beginning September 1, 2005.
	SECTION 6.  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.