S.B. No. 1528
AN ACT
relating to the payment of tuition and fees at public institutions
of higher education and the determination of Texas residency for
that purpose.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 54, Education Code, is
amended by adding Section 54.0015 to read as follows:
Sec. 54.0015. ADOPTION OF CERTAIN DEFINITIONS BY RULE. In
consultation with representatives of institutions of higher
education, the Texas Higher Education Coordinating Board by rule
shall adopt definitions related to the resident status of students
for purposes of this title and to tuition and fee exemptions and
waivers for students under this chapter as necessary to ensure
consistency in the application of this chapter and other related
state laws and policies.
SECTION 2. Subchapter B, Chapter 54, Education Code, is
amended by adding Section 54.0501 to read as follows:
Sec. 54.0501. DEFINITIONS. In this subchapter:
(1) "Census date" means the date in an academic term on
which an institution of higher education is required to certify a
student's enrollment to the coordinating board for purposes of
determining formula funding for the institution.
(2) "Dependent" means a person who:
(A) is less than 18 years of age and has not been
emancipated by marriage or court order; or
(B) as provided by coordinating board rule, is
eligible to be claimed as a dependent of a parent of the person for
purposes of determining the parent's income tax liability under the
Internal Revenue Code of 1986.
(3) "Domicile" means a person's principal, permanent
residence to which the person intends to return after any temporary
absence.
(4) "Nonresident tuition" means the amount of tuition
paid by a person who is not a resident of this state and who is not
entitled or permitted to pay resident tuition under this
subchapter.
(5) "Parent" means a natural or adoptive parent,
managing or possessory conservator, or legal guardian of a person.
(6) "Residence" means a person's home or other
dwelling place.
(7) "Resident tuition" means the amount of tuition
paid by a person who is a resident of this state.
SECTION 3. Sections 54.052, 54.053, 54.054, 54.055, 54.056,
and 54.057, Education Code, are amended to read as follows:
Sec. 54.052. DETERMINATION OF RESIDENT STATUS.
(a) Subject to the other applicable provisions of this subchapter
governing the determination of resident status, the following
persons are considered residents of this state for purposes of this
title:
(1) a person who:
(A) established a domicile in this state not
later than one year before the census date of the academic term in
which the person is enrolled in an institution of higher education;
and
(B) maintained that domicile continuously for
the year preceding that census date;
(2) a dependent whose parent:
(A) established a domicile in this state not
later than one year before the census date of the academic term in
which the dependent is enrolled in an institution of higher
education; and
(B) maintained that domicile continuously for
the year preceding that census date; and
(3) a person who:
(A) graduated from a public or private high
school in this state or received the equivalent of a high school
diploma in this state; and
(B) maintained a residence continuously in this
state for:
(i) the three years preceding the date of
graduation or receipt of the diploma equivalent, as applicable; and
(ii) the year preceding the census date of
the academic term in which the person is enrolled in an institution
of higher education.
(b) For purposes of this section, the domicile of a
dependent's parent is presumed to be the domicile of the dependent
unless the person establishes eligibility for resident status under
Subsection (a)(3) [RESIDENTS; NONRESIDENTS; GENERAL RULES.
(a) In this subchapter:
[(1) "Residence" means "domicile."
[(2) "Resided in" means "domiciled in."
[(3) "Dependent" means an individual who is claimed as
a dependent for federal income tax purposes by the individual's
parent or guardian at the time of registration and for the tax year
preceding the year in which the individual registers.
[(b) For the purposes of this subchapter, the status of a
student as a resident or nonresident student is determined as
prescribed by this section, subject to the other applicable
provisions of this subchapter.
[(c) An individual who is under 18 years of age or is a
dependent and who is living away from his family and whose family
resides in another state or has not resided in Texas for the
12-month period immediately preceding the date of registration
shall be classified as a nonresident student.
[(d) An individual who is 18 years of age or under or is a
dependent and whose family has not resided in Texas for the 12-month
period immediately preceding the date of registration shall be
classified as a nonresident student, regardless of whether he has
become the legal ward of residents of Texas or has been adopted by
residents of Texas while he is attending an educational institution
in Texas, or within a 12-month period before his attendance, or
under circumstances indicating that the guardianship or adoption
was for the purpose of obtaining status as a resident student.
[(e) An individual who is 18 years of age or over who has
come from outside Texas and who is gainfully employed in Texas for a
12-month period immediately preceding registration in an
educational institution shall be classified as a resident student
as long as he continues to maintain a legal residence in Texas.
[(f) An individual who is 18 years of age or over who resides
out of the state or who has come from outside Texas and who
registers in an educational institution before having resided in
Texas for a 12-month period shall be classified as a nonresident
student.
[(g) An individual who would have been classified as a
resident for the first five of the six years immediately preceding
registration but who resided in another state for all or part of the
year immediately preceding registration shall be classified as a
resident student.
[(h) An individual who has come from outside Texas and
registered in an educational institution before having resided in
Texas for a 12-month period immediately preceding the date of
registration is entitled to pay the tuition fee and other fees
required of Texas residents if the individual or a member of his
family has located in Texas as an employee of a business or
organization that became established in this state as part of the
program of state economic development and diversification
authorized by the constitution and laws of this state and if the
individual files with the Texas institution of higher education at
which he registers a letter of intent to establish residency in
Texas.
[(i) The Texas Higher Education Coordinating Board shall
adopt rules allowing a homeless individual, as defined by 42 U.S.C.
Sec. 11302, who resides in Texas for the 12-month period
immediately preceding the date of registration but who does not
have a permanent residence to be classified as a resident student
only for purposes of vocational education courses at public junior
colleges.
[(j) Notwithstanding any other provision of this
subchapter, an individual shall be classified as a Texas resident
until the individual establishes a residence outside this state if
the individual resided with the individual's parent, guardian, or
conservator while attending a public or private high school in this
state and:
[(1) graduated from a public or private high school or
received the equivalent of a high school diploma in this state;
[(2) resided in this state for at least three years as
of the date the person graduated from high school or received the
equivalent of a high school diploma;
[(3) registers as an entering student in an
institution of higher education not earlier than the 2001 fall
semester; and
[(4) provides to the institution an affidavit stating
that the individual will file an application to become a permanent
resident at the earliest opportunity the individual is eligible to
do so].
Sec. 54.053. INFORMATION REQUIRED TO ESTABLISH RESIDENT
STATUS. A person shall submit the following information to an
institution of higher education to establish resident status under
this subchapter:
(1) if the person applies for resident status under
Section 54.052(a)(1):
(A) a statement of the dates and length of time
the person has resided in this state, as relevant to establish
resident status under this subchapter; and
(B) a statement by the person that the person's
presence in this state for that period was for a purpose of
establishing and maintaining a domicile;
(2) if the person applies for resident status under
Section 54.052(a)(2):
(A) a statement of the dates and length of time
any parent of the person has resided in this state, as relevant to
establish resident status under this subchapter; and
(B) a statement by the parent or, if the parent is
unable or unwilling to provide the statement, a statement by the
person that the parent's presence in this state for that period was
for a purpose of establishing and maintaining a domicile; or
(3) if the person applies for resident status under
Section 54.052(a)(3):
(A) a statement of the dates and length of time
the person has resided in this state, as relevant to establish
resident status under this subchapter; and
(B) if the person is not a citizen or permanent
resident of the United States, an affidavit stating that the person
will apply to become a permanent resident of the United States as
soon as the person becomes eligible to apply [REGULATIONS OF
COORDINATING BOARD. The governing board of each institution
required by this chapter to charge a nonresident tuition or
registration fee is subject to the rules, regulations, and
interpretations issued by the Coordinating Board, Texas College and
University System, for the administration of the nonresident
tuition provisions of this subchapter. The rules, regulations, and
interpretations promulgated by the coordinating board shall be
furnished to the presidents or administrative heads of all Texas
public senior and junior colleges and universities].
Sec. 54.054. CONTINUING RESIDENT STATUS. (a) Except as
otherwise provided by Subsection (c) of this section or by Section
54.055 or 54.056, a person classified by an institution of higher
education as a resident of this state under this subchapter is
entitled, without submitting the information required by Section
54.053, to be classified as a resident by that institution in each
subsequent academic term in which the person enrolls.
(b) Except as otherwise provided by Subsection (c) of this
section or by Section 54.055 or 54.056, a person classified by an
institution of higher education as a resident is entitled, without
submitting the information required by Section 54.053 to the
subsequent institution, to be classified as a resident by another
institution of higher education in which the person subsequently
enrolls.
(c) Subsections (a) and (b) do not apply to a person who
enrolls in an institution of higher education after two or more
consecutive regular semesters during which the person is not
enrolled in an institution of higher education. To be classified as
a resident on that enrollment, the person must submit the
information required by Section 54.053 and satisfy all applicable
requirements to establish resident status. If the person is
classified as a resident on that enrollment, Subsections (a) and
(b) apply to the person in a subsequent academic term [NONRESIDENT
STATUS: PRESUMPTION; RECLASSIFICATION. A nonresident student
classification is presumed to be correct as long as the residence of
the individual in the state is primarily for the purpose of
attending an educational institution. After residing in Texas for
at least 12 months, a nonresident student may be reclassified as a
resident student as provided in the rules and regulations adopted
by the Coordinating Board, Texas College and University System.
Any individual reclassified as a resident student is entitled to
pay the tuition fee for a resident of Texas at any subsequent
registration as long as he continues to maintain his legal
residence in Texas. Before February 15, 1972, the Coordinating
Board, Texas College and University System, shall promulgate such
rules and regulations].
Sec. 54.055. RECLASSIFICATION BASED ON ADDITIONAL OR
CHANGED INFORMATION. (a) On the basis of additional or changed
information, an institution of higher education may reclassify as a
resident or nonresident of this state under this subchapter a
person who has previously been classified as a resident or
nonresident under this subchapter.
(b) A reclassification does not apply to an academic term if
the reclassification is made on or after the census date of that
term [PARENTS, CHANGE OF RESIDENCE TO ANOTHER STATE. An individual
who is 18 years of age or under or is a dependent and whose parents
were formerly residents of Texas is entitled to pay the resident
tuition fee following the parents' change of legal residence to
another state, as long as the individual remains continuously
enrolled in a regular session in a state-supported institution of
higher education].
Sec. 54.056. ERRORS IN CLASSIFICATION. (a) If an
institution of higher education erroneously classifies a person as
a resident of this state and the person is not entitled or permitted
to pay resident tuition under this subchapter, the institution of
higher education shall charge nonresident tuition to the person
beginning with the first academic term that begins after the date
the institution discovers the error. Not earlier than the first day
of that term, regardless of whether the person is still enrolled at
the institution, the institution may request the person to pay the
difference between resident and nonresident tuition for an earlier
term as permitted by Section 54.057. For nonpayment of the amount
owed, the institution may impose sanctions only as provided by that
section. The institution may not require payment as a condition for
any subsequent enrollment by the person in the institution.
(b) Regardless of the reason for the error, if an
institution of higher education erroneously classifies a person as
a nonresident of this state, the institution shall charge resident
tuition to the person beginning with the academic term in which the
institution discovers the error. The institution immediately shall
refund to the person the amount of tuition the person paid in excess
of resident tuition [EFFECT OF MARRIAGE. A student who is a
resident of Texas and who marries a nonresident is entitled to pay
the resident tuition fee as long as the student does not adopt the
legal residence of the spouse in another state].
Sec. 54.057. LIABILITY FOR UNPAID NONRESIDENT TUITION.
(a) The following persons are liable for the difference between
resident and nonresident tuition for each academic term in which
the person pays resident tuition as the result of an erroneous
classification under this subchapter:
(1) a person who, in a timely manner after the
information becomes available or on request by the institution of
higher education, fails to provide to the institution information
that the person reasonably should know would be relevant to an
accurate classification by the institution under this subchapter;
or
(2) a person who provides false information to the
institution that the person reasonably should know could lead to an
erroneous classification by the institution under this subchapter.
(b) The person shall pay the applicable amount to the
institution not later than the 30th day after the date the person is
notified of the person's liability for the amount owed. After
receiving the notice and until the amount is paid in full, the
person is not entitled to receive from the institution a
certificate or diploma, if not yet awarded on the date of the
notice, or official transcript that is based at least partially on
or includes credit for courses taken while the person was
erroneously classified as a resident of this state.
(c) A person who is erroneously classified as a resident of
this state under this subchapter but who is entitled or permitted to
pay resident tuition under this subchapter is not liable for the
difference between resident and nonresident tuition under this
section [ALIENS. (a) An alien who is living in this country under
a visa permitting permanent residence or who has applied to or has a
petition pending with the Immigration and Naturalization Service to
attain lawful status under federal immigration law has the same
privilege of qualifying for resident status for tuition and fee
purposes under this subchapter as has a citizen of the United
States. A resident alien residing in a junior college district
located immediately adjacent to Texas boundary lines shall be
charged the resident tuition by that junior college.
[(b) A nonimmigrant alien who resides in this state in
accordance with the Agreement between the Parties to the North
Atlantic Treaty Regarding the Status of Their Forces (4 U.S.T.
1792) and the spouse or children of such an alien are residents for
tuition and fee purposes under this code].
SECTION 4. Subchapter B, Chapter 54, Education Code, is
amended by adding Sections 54.073, 54.074, and 54.075 to read as
follows:
Sec. 54.073. ECONOMIC DEVELOPMENT AND DIVERSIFICATION. A
person who registers at an institution of higher education without
having established resident status in this state under Section
54.052 is entitled to pay tuition and required fees at the rate
provided for residents of this state if:
(1) the person or, as determined by coordinating board
rule, an adult member of the person's family who resides in the
person's household and is a primary caretaker of the person
establishes by the institution's enrollment date a residence in
this state as a result of the person's or caretaker's employment by
a business or organization that became established in this state as
part of the program of state economic development and
diversification authorized by the law of this state; and
(2) the person files with that institution of higher
education a letter of intent to establish residency in this state.
Sec. 54.074. NATO AGREEMENT. A nonimmigrant alien who
resides in this state in accordance with the Agreement between the
Parties to the North Atlantic Treaty Regarding the Status of Their
Forces (4 U.S.T. 1792) and the spouse or children of that alien are
considered to be residents for tuition and fee purposes under this
title.
Sec. 54.075. COORDINATING BOARD RULES; SUPPLEMENTATION OF
RULES BY INSTITUTIONS LIMITED. (a) The coordinating board shall
adopt rules to carry out the purposes of this subchapter.
(b) An institution of higher education may not require a
person to provide evidence of resident status that is not required
by coordinating board rule.
SECTION 5. Section 54.007, Education Code, is amended by
adding Subsection (f) to read as follows:
(f) The governing board shall require a student who elects
to pay tuition and fees by installment under this section to enter
into a written agreement reflecting the terms and conditions
required by this section.
SECTION 6. Subsection (m), Section 54.051, Education Code,
is amended to read as follows:
(m) Unless the student establishes residency or is entitled
or permitted to pay resident tuition as provided by this subchapter
[Section 54.052(j) or 54.057], tuition for a student who is a
citizen of any country other than the United States of America is
the same as the tuition required of other nonresident students.
SECTION 7. Subsection (c), Section 54.621, Education Code,
is amended to read as follows:
(c) Notwithstanding any provision of Subchapter B [Section
54.052(d)], the tuition and required fees charged by an institution
of higher education for semester hours and fees that are paid for by
a prepaid tuition contract shall be determined as if the
beneficiary of that contract were a resident student.
SECTION 8. Sections 54.062, 54.066, 54.067, 54.068, 54.071,
and 54.072, Education Code, are transferred to Subchapter A,
Chapter 54, Education Code, renumbered as Sections 54.011, 54.012,
54.013, 54.014, 54.015, and 54.016, Education Code, and amended to
read as follows:
Sec. 54.011 [54.062]. TUITION LIMIT IN CASES OF CONCURRENT
ENROLLMENT. When a student registers at more than one public
institution of higher education at the same time, his tuition
charges shall be determined in the following manner:
(1) The student shall pay the full tuition charge to
the first institution at which he is registered; and in any event he
shall pay an amount at least equal to the minimum tuition specified
in this code.
(2) If the minimum tuition specified in this code for
the first institution at which the student is registered is equal to
or greater than the minimum tuition specified in this code for the
second institution at which the student is registered concurrently,
the student shall not be required to pay the specified minimum
tuition charge to the second institution in addition to the tuition
charge paid to the first institution, but shall pay only the hourly
rates, as provided in this code, to the second institution.
(3) If the minimum tuition specified in this code for
the first institution at which the student is registered is less
than the specified minimum tuition charge at the second institution
(that is, if the second institution has a higher minimum tuition
charge specified in this code), then the student shall first
register at the institution having the lower minimum tuition and
shall pay to the second institution only the amount equal to the
difference between his total tuition charge at the second
institution and his total tuition charge at the first institution,
but in no case shall the student pay to the second institution less
than the hourly rates as provided in this code.
(4) If a student is considered to be a Texas resident
and therefore qualified to pay Texas resident tuition rates by one
institution at which he is registered, that student shall be
considered a Texas resident at each of the institutions at which he
is concurrently registered for the purposes of determining the
proper tuition charges. Nothing in this subdivision [subsection]
shall be so construed as to allow a nonresident to pay resident
tuition except at institutions covered by Section 54.060 of this
code.
Sec. 54.012 [54.066]. TUITION RATES FOR CERTAIN DOCTORAL
STUDENTS. The governing board of an institution of higher
education may charge a resident doctoral student who has more
semester credit hours of doctoral work than allowed for purposes of
state funding for the current state fiscal biennium under Section
61.059(l) tuition at the rate charged nonresident doctoral
students. Tuition charged at the rate provided by this section
shall be accounted for as if collected under Section 54.008.
Sec. 54.013 [54.067]. STUDENTS 55 YEARS OF AGE OR OLDER.
(a) An institution of higher education may charge a student 55
years of age or older tuition and fees at rates that are lower than
the rates otherwise provided by this chapter, under the condition
that a student under 55 years of age will not be precluded from
enrolling in a course for credit toward a degree or certificate.
The institution may set additional qualifications that a student
must meet to qualify for tuition and fees at rates set under this
section and may set different rates for different programs,
campuses, or courses. The institution may set rates under this
section for resident students, nonresident students, or both, and
may set different rates for resident students and nonresident
students.
(b) A tuition or fee rate set under this section must apply
uniformly to each student that meets the applicable qualifications
set by the institution to pay tuition or fees at that rate.
(c) The legislature in an appropriations act shall account
for the rates authorized by Subsection (a) in a way that does not
increase the general revenue appropriations to that institution.
Sec. 54.014 [54.068]. TUITION FOR EXCESSIVE UNDERGRADUATE
HOURS. (a) An institution of higher education may charge a
resident undergraduate student tuition at a higher rate than the
rate charged to other resident undergraduate students, not to
exceed the rate charged to nonresident undergraduate students, if
before the semester or other academic session begins the student
has previously attempted a number of semester credit hours for
courses taken at any institution of higher education while
classified as a resident student for tuition purposes that exceeds
by at least 45 hours the number of semester credit hours required
for completion of the degree program in which the student is
enrolled. For purposes of this subsection, an undergraduate
student who is not enrolled in a degree program is considered to be
enrolled in a degree program requiring a minimum of 120 semester
credit hours.
(b) Semester credit hours or other credit listed in Section
61.0595(d) is not counted in determining the number of semester
credit hours previously attempted by a student for purposes of
Subsection (a).
(c) Subsection (a) does not apply to the tuition charged to
a student who initially enrolled as an undergraduate student in an
institution of higher education before the 1999 fall semester.
(d) In its appropriations to institutions of higher
education, the legislature shall compute the local funds available
to each institution as if the tuition collected under Subsection
(a) were not collected.
(e) Each institution of higher education shall inform each
new undergraduate student enrolling at the institution in writing
of the limitation provided by this section on the number of hours
that a Texas resident is entitled to complete while paying tuition
at the rate provided for Texas residents.
Sec. 54.015 [54.071]. BILLING AND NOTIFICATION FOR
TUITION. For billing and catalogue purposes, each governing board
shall accumulate all the tuition that it charges under this chapter
[subchapter] into one tuition charge.
Sec. 54.016 [54.072]. FLAT RATE TUITION PILOT PROJECT.
(a) In this section, "tuition" means all academic program costs
related to enrollment in an academic course or degree program that
are charged to a student, including all charges designated as
tuition, mandatory fees, and incidental fees. The term does not
include voluntary fees.
(b) Notwithstanding any other provision of this chapter,
the board of regents of The University of Texas System may establish
a pilot project at The University of Texas at Austin involving not
more than two colleges or degree programs designated by the board of
regents under which the university charges the same amount of
tuition to all undergraduate students enrolled in a college or
degree program included in the pilot project.
(c) The board of regents may not require a full-time student
who pays tuition under the pilot project to pay more tuition than
the average amount of tuition that a student not included in the
pilot project would pay for enrolling in the university for 14
semester credit hours for the same semester or term.
(d) The board of regents shall evaluate the effect of flat
rate tuition charged under the pilot project on the number of
semester credit hours taken by students included in the project
each semester. The board shall report the results of the evaluation
to the legislature not later than December 31, 2002, and December
31, 2004.
(e) This section expires September 1, 2005.
SECTION 9. Section 54.203, Education Code, is amended by
amending Subsection (g) and adding Subsection (h) to read as
follows:
(g) The governing board of a junior college district may
establish a fee for extraordinary costs associated with a specific
course or program and may provide that the exemptions provided by
Subsections (a) and (b) do not apply to this [a course] fee [or
training fee charged a student by the junior college district to
cover the flight time costs associated with a course in aircraft
flight training, to the extent those costs are incurred by a
student:
[(1) who does not have a private pilot rating; or
[(2) who has a private pilot rating but is not actively
seeking to fulfill the requirements of the Federal Aviation
Administration for an additional certification or rating].
(h) In determining whether to admit a person to any
certificate program or any baccalaureate, graduate, postgraduate,
or professional degree program, an institution of higher education
may not consider the fact that the person is eligible for an
exemption under this section.
SECTION 10. Section 65.45, Education Code, is amended by
adding Subsection (d) to read as follows:
(d) To the extent provided for in an agreement authorized by
this section, a person employed by the entity with whom the system
enters such an agreement, or the person's spouse or child, may pay
the tuition and fees charged to residents of this state when
enrolled in a system institution.
SECTION 11. Sections 54.0521, 54.0551, and 54.061,
Education Code, are repealed.
SECTION 12. (a) A person who was enrolled in a public
institution of higher education for any part of the 2005-2006
academic year and who was classified as a resident of this state
under Subchapter B, Chapter 54, Education Code, in the last
academic period of that year for which the person was enrolled is
considered to be a resident of this state for purposes of Subchapter
B, Chapter 54, Education Code, as amended by this Act, as of the
beginning of the 2006-2007 academic year, subject to a
redetermination of resident status as provided by that subchapter.
(b) The change in law made by this Act applies beginning
with tuition and fees charged for the 2006 fall semester. Tuition
and fees charged for a semester or session before the 2006 fall
semester are governed by the applicable law in effect before the
effective date of this Act, and that law is continued in effect for
that purpose.
(c) The Texas Higher Education Coordinating Board shall
adopt the rules required by Section 54.075, Education Code, as
added by this Act, not later than January 1, 2006.
SECTION 13. The Texas Higher Education Coordinating Board
shall compile data on the tuition and fees charged at each two-year
and four-year institution of public higher education, beginning
with the fall semester of 2003 through the spring semester of 2007,
and shall submit a report to the 80th Legislature describing the
amount and percent change per semester for each institution and
ranking the two-year and four-year institutions in order of the
total increase.
SECTION 14. Subsection (h), Section 54.203, Education Code,
as added by this Act, applies beginning with admissions to a public
institution of higher education for the 2006 spring semester.
Admissions to a public institution of higher education before that
semester are covered by the law in effect before the effective date
of this Act, and the former law is continued in effect for that
purpose.
SECTION 15. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1528 passed the Senate on
May 2, 2005, by the following vote: Yeas 31, Nays 0; and that the
Senate concurred in House amendments on May 27, 2005, by the
following vote: Yeas 29, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1528 passed the House, with
amendments, on May 25, 2005, by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor