80R8161 CAS-F

By: Morrison H.B. No. 3830

A BILL TO BE ENTITLED

AN ACT

relating to exemptions from payment of tuition and mandatory fees and waivers from payment of nonresident tuition at public institutions of higher education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 54, Education Code, is amended by adding Subchapter C to read as follows: SUBCHAPTER C. MANDATORY TUITION AND FEE EXEMPTIONS

Sec. 54.101. DEFINITIONS. In this subchapter:

(1) "Child" means a person who is 25 years of age or younger.

(2) "Coordinating board" means the Texas Higher Education Coordinating Board.

(3) "Graduate professional nursing program" means an educational program of a public or private institution of higher education that prepares students for a master's or doctoral degree in nursing.

(4) "Undergraduate professional nursing program" means a public or private educational program for preparing students for initial licensure as registered nurses.

Sec. 54.102. ELIGIBLE PERSONS. The governing board of each institution of higher education shall exempt from the payment of tuition and mandatory fees, other than property deposit fees and charges for room and board, a person:

(1) who satisfies the general eligibility requirements prescribed by Section 54.113; and

(2) to whom this subchapter applies according to another provision of this subchapter.

Sec. 54.103. MILITARY VETERAN; CHILD OF VETERAN. (a) Subject to Subsection (c), this subchapter applies to an honorably discharged veteran who served in the armed forces of the United States, the Texas National Guard, or the Texas Air National Guard and who:

(1) entered the service in this state or was a resident of this state at the time of entry into the service; and

(2) served on active duty for at least 180 days or, on or after January 1, 1999, was classified by the United States Department of Defense as a prisoner of war for any period of time.

(b) Subject to Subsection (c), this subchapter applies to a child of a person described by Subsection (a)(1) if that person:

(1) dies or is killed in a manner that is documented to be directly caused by an illness or injury related to service in the armed forces, the Texas National Guard, or the Texas Air National Guard; or

(2) at the beginning of the semester or other term for which the exemption is claimed, is classified by the United States Department of Defense as:

(A) missing in action; or

(B) a prisoner of war.

(c) A person described by Subsection (a) or (b):

(1) may be exempted under this subchapter only from the amount of tuition and mandatory fee costs remaining after the person has used for the payment of tuition and mandatory fees any federal veterans benefits available to the person for that purpose; and

(2) may not receive an exemption under this subchapter if the person is in default on any educational loan made or guaranteed by the federal government or this state.

Sec. 54.104. CHILD AND SURVIVING SPOUSE OF PUBLIC OFFICIAL IN LAW ENFORCEMENT, CORRECTIONS, FIREFIGHTING, OR OTHER AT-RISK POSITION. This subchapter applies to:

(1) a child of an individual listed by Section 615.003, Government Code, if that individual, while performing the duties of the office or employment described by Section 615.003, has been disabled by injury or killed; and

(2) the surviving spouse of an individual listed by Section 615.003, Government Code, if that individual has been killed while performing the duties of the office or employment described by Section 615.003.

Sec. 54.105. DEAF OR BLIND PERSON. This subchapter applies to a person who is a deaf or blind person, as defined by rules adopted by the executive commissioner of the Health and Human Services Commission.

Sec. 54.106. PERSON IN RESIDENTIAL OR FOSTER CARE. (a) This subchapter applies to a child who:

(1) was in foster or other residential care under the conservatorship of a state agency in this state on:

(A) the child's 18th birthday;

(B) the date the child graduated from high school or earned a high school equivalency certificate; or

(C) the child's 14th birthday, if the child was eligible for adoption on or after that date; and

(2) enrolls in an institution of higher education before the child's 21st birthday.

(b) This subchapter applies to a person who:

(1) was in foster or other residential care under the conservatorship of a state agency in this state; and

(2) was adopted and was the subject of an adoption assistance agreement under Subchapter D, Chapter 162, Family Code.

Sec. 54.107. DEPENDENT CHILD RECEIVING PUBLIC ASSISTANCE. This subchapter applies to a person who:

(1) during the person's last year of high school attendance was a dependent child receiving financial assistance for not less than six months under Chapter 31, Human Resources Code; and

(2) graduated from a public high school in this state.

Sec. 54.108. FIREFIGHTER. This subchapter applies to a person who:

(1) is employed as a firefighter by any political subdivision of this state; and

(2) enrolls in one or more courses considered to be part of a fire science curriculum at the institution at which the person is enrolled.

Sec. 54.109. EDUCATIONAL AIDE. This subchapter applies to a person who:

(1) is a public school employee;

(2) has worked as an educational aide for at least one complete school year during the five-year period preceding the first day of the semester or other term for which the exemption is claimed; and

(3) is enrolled in courses required for initial certification as a public school teacher in an educator preparation program at the institution of higher education granting the exemption.

Sec. 54.110. CHILD OF FACULTY MEMBER OR TEACHING ASSISTANT. This subchapter applies to a child of a person employed as a faculty member or teaching assistant in a graduate or undergraduate professional nursing program at an institution of higher education.

Sec. 54.111. CLINICAL PRECEPTOR AND CHILD. (a) To the extent provided by Subsection (b), this subchapter applies to:

(1) a person who:

(A) is a registered nurse; and

(B) is serving in an undergraduate professional nursing program as a clinical preceptor; and

(2) the child of a person described by Subdivision (1).

(b) A person described by Subsection (a) is entitled to an exemption under this subchapter only for a semester or other term during which the person described by Subsection (a)(1) is serving as a preceptor.

(c) The amount of the exemption provided to a person described by Subsection (a) in a semester or other term is the lesser of:

(1) $500; or

(2) the amount of tuition and mandatory fees the person owes.

Sec. 54.112. HIGHEST RANKING HIGH SCHOOL GRADUATE. This subchapter applies to the highest ranking graduate of an accredited high school in this state in each school year, according to rankings determined as prescribed by the Texas Education Agency.

Sec. 54.113. GENERAL ELIGIBILITY REQUIREMENTS. (a) To be eligible for an exemption under this subchapter, a person to whom this subchapter applies must:

(1) be a resident of this state for the semester or other term for which the person claims the exemption;

(2) be enrolled in a certificate or degree program at an institution of higher education in this state;

(3) provide to the institution at which the person claims the exemption, in the time and manner required by coordinating board rule, proof of eligibility for the exemption; and

(4) meet the standards for satisfactory progress that the institution uses for determining eligibility for financial aid.

(b) For purposes of Subsection (a)(1), a person described by Section 54.103(a) or (b) is considered to be a resident of this state.

Sec. 54.114. HOLDER OF BACCALAUREATE DEGREE INELIGIBLE; EXCEPTIONS. (a) Except as provided by Subsection (b), a person who has earned a baccalaureate degree is not eligible for an exemption under this subchapter.

(b) Subsection (a) does not apply to a person who:

(1) is described by Section 54.103(a) or (b), 54.109, or 54.111(a)(1); or

(2) to the extent authorized by Subsection (c), is enrolled in a program of study in a field in which the coordinating board by rule has determined there is an acute shortage of qualified workers in this state.

(c) The exception provided by Subsection (b)(2) expires on the third anniversary of the date a person earns a baccalaureate degree.

Sec. 54.115. LIMITATIONS: TYPES OF COURSES; AMOUNTS. An exemption provided by this subchapter:

(1) applies only to a course for which an institution of higher education receives formula funding; and

(2) does not apply to tuition and mandatory fee charges in amounts greater than 200 percent of the average amount of tuition and fees charged at the institution providing the exemption.

Sec. 54.116. PUBLICIZING EXEMPTIONS. (a) Each institution of higher education shall publicize the availability of the exemptions provided by this subchapter by:

(1) listing and explaining the exemptions:

(A) in each student course catalog;

(B) on the institution's Internet website; and

(C) in student recruitment literature; and

(2) explaining the exemptions at student recruitment events.

(b) In explaining the exemptions for purposes of this section, the institution shall provide information concerning:

(1) eligibility requirements;

(2) an e-mail or Internet address, physical address, or telephone number at which a person may obtain more information;

(3) the e-mail, Internet, or physical address to which the person may submit an application; and

(4) the deadline for submitting an application.

Sec. 54.117. COORDINATION WITH FINANCIAL AID OFFICE. To avoid granting aid to which a student is not entitled, the financial aid office of each institution of higher education shall maintain a record of tuition and fee exemptions granted under this subchapter to a student enrolled at the institution.

Sec. 54.118. CONSIDERATION OF EXEMPTION ELIGIBILITY IN ADMISSIONS PROHIBITED. In determining whether to admit a person to an academic program for which the institution receives formula funding, an institution of higher education may not consider the fact that the person is eligible for an exemption under this subchapter.

Sec. 54.119. RULES. The coordinating board shall adopt rules to administer this subchapter.

SECTION 2. Section 54.2155, Education Code, is transferred to Subchapter C, Chapter 54, Education Code, redesignated as Section 54.120, Education Code, and amended to read as follows:

Sec. 54.120 [54.2155]. PAYMENT OF TUITION ASSISTANCE FOR MEMBERS OF STATE MILITARY FORCES. (a) For each semester, the adjutant general of the state military forces shall certify to institutions of higher education as described by Section 431.090, Government Code, information identifying the persons to whom the adjutant general has awarded tuition assistance under that section.

(b) An institution of higher education shall exempt a person certified by the adjutant general as described by Subsection (a) from the payment of tuition for the semester credit hours for which the person enrolls, not to exceed 12 semester credit hours. If the person is not charged tuition at the rate provided for other Texas residents, the amount of the exemption may not exceed the amount of tuition the person would be charged as a Texas resident for the number of semester credit hours for which the person enrolls, not to exceed 12 semester credit hours.

(c) Sections 54.113, 54.114, and 54.115 do not apply to an exemption provided by this section.

SECTION 3. Section 54.213, Education Code, is transferred to Subchapter C, Chapter 54, Education Code, redesignated as Section 54.121, Education Code, and amended to read as follows:

Sec. 54.121 [54.213]. FUNDING OF CERTAIN EXEMPTIONS. (a) An institution of higher education may fund tuition exemptions under Section 54.107 or 54.109 [54.212 or 54.214] from local funds or from funds appropriated to the institution. An institution of higher education is not required to provide tuition exemptions beyond those funded through appropriations specifically designated for this purpose.

(b) Savings to the foundation school fund that occur as a result of the Early High School Graduation Scholarship program created in Subchapter K, Chapter 56, and that are not required for the funding of state credits for tuition and mandatory fees under Section 56.204 or school district credits under Section 56.2075 shall be used first to provide tuition exemptions under Section 54.107 [54.212]. Any of those savings remaining after providing tuition exemptions under Section 54.107 [54.212] shall be used to provide tuition exemptions under Section 54.109 [54.214]. The Texas Education Agency shall also accept and make available to provide tuition exemptions under Section 54.109 [54.214] gifts, grants, and donations made to the agency for that purpose. Payment of funds under this subsection shall be made in the manner provided by Section 56.207 for state credits under Subchapter K, Chapter 56.

SECTION 4. Chapter 54, Education Code, is amended by adding Subchapter C-1 to read as follows: SUBCHAPTER C-1. MANDATORY WAIVERS OF NONRESIDENT TUITION

Sec. 54.151. DEFINITIONS. In this subchapter:

(1) "Child" means a person who is 25 years of age or younger.

(2) "Coordinating board" means the Texas Higher Education Coordinating Board.

(3) "Faculty member" means a person employed by an institution of higher education who:

(A) has tenure or is in a tenure track position; or

(B) is a research professional.

(4) "General academic teaching institution," "public junior college," and "public technical institute" have the meanings assigned by Section 61.003.

(5) "Waiver of nonresident tuition" means a grant of entitlement to pay tuition and mandatory fees at the rate provided by this chapter for residents of this state to a person who would otherwise be required to pay tuition and fees at the rate provided by this chapter for nonresidents.

Sec. 54.152. PERSONS ELIGIBLE. Notwithstanding any other provision of this chapter, a person is entitled to a waiver of nonresident tuition if:

(1) the person satisfies the general eligibility requirements prescribed by Section 54.159; and

(2) this subchapter applies to the person according to another provision of this subchapter.

Sec. 54.153. MEMBER OF ARMED FORCES; SPOUSE; CHILD. (a) Subject to Subsection (b), this subchapter applies to:

(1) a member of the United States armed forces who is stationed in this state and the person's spouse and child;

(2) the spouse and child of a member of the armed forces of the United States stationed outside of this state, or a retired or honorably discharged member of the armed forces of the United States residing in this state and that member's spouse and child residing in this state, if the person applying for the waiver of nonresident tuition:

(A) files with the institution of higher education at which the person enrolls a statement declaring the person's intention to be a permanent resident of this state; or

(B) continuously resides in this state after the member of the armed forces was stationed in this state; and

(3) the spouse or a child of a member of the armed forces of the United States if:

(A) the member of the armed forces dies or is killed in a manner that is documented to be directly caused by illness or injury connected to service in the armed forces; and

(B) the spouse or child becomes a resident of this state not later than the 60th day after the date of the member's death.

(b) Subsection (a)(1), (2), or (3) applies to a person only during a semester or other academic term in which the person is enrolled in the same degree or certificate program in which the person was enrolled at the time of initial eligibility under that subsection.

Sec. 54.154. NONIMMIGRANT ALIEN. This subchapter applies to a nonimmigrant alien who resides in this state in accordance with the Agreement Between the Parties in the North Atlantic Treaty Regarding the Status of Their Forces (4 U.S.T. 1792) and the alien's spouse and child.

Sec. 54.155. PART-TIME FACULTY MEMBER OR TEACHING ASSISTANT; SPOUSE AND CHILD. (a) This subchapter applies to a faculty member who is employed at least one-half time at an institution of higher education and the faculty member's spouse and child.

(b) This subchapter applies to a teaching or research assistant who is employed at least one-half time at an institution of higher education in a teaching or research position that relates to the person's degree program and the person's spouse and child.

Sec. 54.156. SCHOLARSHIP STUDENT. (a) Subject to Subsection (c), this subchapter applies to a student who holds for the academic year or summer term for which the student is enrolled one or more competitive scholarships in a total amount of at least $1,000.

(b) This subchapter applies to a student who:

(1) holds a competitive academic scholarship or receives a stipend awarded on a competitive academic basis; and

(2) is enrolled in an institution of higher education's clinical or biomedical research training program that offers both Doctor of Medicine and Doctor of Philosophy degrees.

(c) Subsection (a) applies to a student only if each scholarship:

(1) is awarded by an entity recognized for the purpose of awarding competitive scholarships by the governing board of the institution of higher education in which the student is enrolled; and

(2) is awarded and maintained in a manner that complies with applicable coordinating board rules.

Sec. 54.157. EMPLOYEE IN STATE AS RESULT OF ECONOMIC DEVELOPMENT PROGRAM; CHILD. This subchapter applies to:

(1) a person who by the date the person enrolls in the institution of higher education granting the waiver of nonresident tuition establishes residence in this state in connection with the person's employment by a business or organization that became established in this state as part of the state program of economic development and diversification authorized by the law of this state; and

(2) the child of a person described by Subdivision (1) if the person described by Subdivision (1) serves as the child's primary adult caretaker.

Sec. 54.158. RESIDENT OF UNITED MEXICAN STATES. This subchapter applies to a resident of the United Mexican States who demonstrates financial need as determined under coordinating board rule and who enrolls in:

(1) any general academic teaching institution, component of the Texas State Technical College System, or public junior college located in a county bordering the United Mexican States;

(2) courses that are part of a graduate degree program in public health and that are conducted in a county bordering the United Mexican States; or

(3) Texas A&M University--Kingsville, Texas A&M University--Corpus Christi, or The University of Texas at San Antonio.

Sec. 54.159. GENERAL ELIGIBILITY REQUIREMENTS. To be eligible for a waiver of nonresident tuition under this subchapter, a person to whom this subchapter applies must:

(1) be enrolled in a certificate or degree program at an institution of higher education in this state;

(2) provide to the institution at which the person claims the waiver, in the time and manner required by coordinating board rule, proof of eligibility for the exemption; and

(3) meet the standards for satisfactory progress that the institution uses for determining eligibility for financial aid.

Sec. 54.160. LIMITATION: TYPES OF COURSES. A waiver of nonresident tuition provided by this subchapter applies only to a course for which an institution of higher education receives formula funding.

Sec. 54.161. PUBLICIZING WAIVERS. Each institution of higher education shall publicize and explain the waivers of nonresident tuition available under this subchapter in the same manner as is required by Section 54.116 for publicizing and explaining tuition exemptions.

Sec. 54.162. COORDINATION WITH FINANCIAL AID OFFICE. To avoid granting aid to which a student is not entitled, the financial aid office of each institution of higher education shall maintain a record of waivers of nonresident tuition granted under this subchapter to a student enrolled at the institution.

Sec. 54.163. CONSIDERATION OF WAIVER ELIGIBILITY IN ADMISSIONS PROHIBITED. In determining whether to admit a person to an academic program for which the institution receives formula funding, an institution of higher education may not consider the fact that the person is eligible for a waiver of nonresident tuition under this subchapter.

Sec. 54.164. RULES. The coordinating board shall adopt rules to administer this subchapter.

SECTION 5. Section 54.060, Education Code, is transferred to Subchapter C-1, Chapter 54, Education Code, as added by this Act, redesignated as Section 54.165, Education Code, and amended to read as follows:

Sec. 54.165 [54.060]. RESIDENT OF BORDERING STATE OR NATION OR PARTICIPANT IN STUDENT EXCHANGE PROGRAM: TUITION. (a) The nonresident tuition fee prescribed by this chapter does not apply to a nonresident student who is a resident of Arkansas, Louisiana, New Mexico, or Oklahoma and who registers in a public upper-level institution of higher education, Lamar State College--Orange, Lamar State College--Port Arthur, a [Texas] public junior college, or a public technical institute that is situated in a county immediately adjacent to the state in which the nonresident student resides. The nonresident tuition fee prescribed by this chapter does not apply to a nonresident student who is a resident of New Mexico or Oklahoma and who registers in a public technical institute that is situated in a county that is within 100 miles of the state in which the nonresident student resides and who is admitted for the purpose of utilizing available instructional facilities. The nonresident student described in this subsection shall pay an amount equivalent to the amount charged a Texas student registered at a similar school in the state in which the nonresident student resides. For purposes of this subsection, "public upper-level institution of higher education" means an institution of higher education that offers only junior-level and senior-level courses or only junior-level, senior-level, and graduate-level courses.

(b) [The foreign student tuition fee prescribed in this chapter does not apply to a foreign student who is a resident of a nation situated adjacent to Texas, demonstrates financial need as provided by Subsection (c), and registers in:

[(1) any general academic teaching institution or component of the Texas State Technical College System located in a county immediately adjacent to the nation in which the foreign student resides;

[(2) lower division courses at a community or junior college having a partnership agreement pursuant to Subchapter N, Chapter 51, with an upper-level university and both institutions are located in the county immediately adjacent to the nation in which the foreign student resides;

[(3) Texas A&M University--Kingsville, Texas A&M University--Corpus Christi, or The University of Texas at San Antonio; or

[(4) courses that are part of a graduate degree program in public health and are conducted in a county immediately adjacent to the nation in which the foreign student resides.

[(c) A foreign student to whom Subsection (b) applies shall pay tuition equal to that charged Texas residents under Sections 54.051 and 54.0512. The coordinating board shall adopt rules governing the determination of financial need of students to whom Subsection (b) applies and rules governing a pilot project to be established at general academic teaching institutions and at components of the Texas State Technical College System in counties that are not immediately adjacent to the nation in which the foreign student resides.

[(d)] The coordinating board by rule shall establish a program with the United Mexican States and with Canada for the exchange of students and shall establish programs with other nations for the exchange of students to the extent practicable. The foreign student tuition fee prescribed in this chapter does not apply to a foreign student participating in an exchange program established under this section.

(c) [(e)] The coordinating board shall adopt rules to determine the number of students who may participate in the program [programs] provided by Subsection [Subsections] (b) [and (d) and the students who may transfer from any general academic teaching institution or component of the Texas State Technical College System in a county immediately adjacent to the nation in which the foreign student resides to attend another general academic teaching institution or component of the Texas State Technical College System to complete a degree, certificate, or diploma or attend graduate school].

(d) [(f)] The payment of resident tuition at Lamar State College--Orange, Lamar State College--Port Arthur, or a public technical institute as authorized by Subsection (a) or at an institution of higher education as authorized by Subsection (e) [(g)] does not affect the constitutionally dedicated funding to which institutions of higher education are entitled under Article VII, Section 17, of the Texas Constitution.

(e) [(g)] The nonresident tuition fee prescribed by this chapter does not apply to a nonresident student who is a resident of a county or parish of Arkansas, Louisiana, New Mexico, or Oklahoma that is adjacent to this state and who registers in an institution of higher education, the governing board of which has agreed to admit the student at the resident tuition fee prescribed by this chapter. The state in which the student resides must allow a resident of a county of this state that is adjacent to that state to register in a public institution of higher education in that state at the tuition fee charged residents of that state. The student shall pay tuition equal to that charged residents of this state at the institution.

(f) Sections 54.159 and 54.160 do not apply to this section. [(h)In this section:

[(1) "Coordinating board" means the Texas Higher Education Coordinating Board.

[(2) "General academic teaching institution" and "public technical institute" have the meanings assigned by Section 61.003.]

SECTION 6. Section 54.073, Education Code, as added by Chapter 865, Acts of the 79th Legislature, Regular Session, 2005, is transferred to Subchapter C-1, Education Code, as added by this Act, redesignated as Section 54.166, Education Code, and amended to read as follows:

Sec. 54.166 [54.073]. TUITION RATES FOR OLYMPIC ATHLETES. (a) A person enrolled in The University of Texas at Brownsville and Texas Southmost College is entitled to pay tuition and fees at the rates provided for Texas residents if the person:

(1) is in residence and in training as a participating athlete in a Community Olympic Development Program or at a United States Olympic training center located in this state;

(2) is residing permanently or temporarily in this state while in training as a participating athlete:

(A) in a Community Olympic Development Program located in this state; or

(B) at a United States Olympic training center located in this state in a program approved by the governing body for the athlete's Olympic sport; or

(3) is residing permanently or temporarily in this state while in training as a participating athlete at a facility in this state approved by the governing body for the athlete's Olympic sport, in a program approved by that body.

(b) Notwithstanding any other law, a person who is entitled to pay resident tuition and fees only as permitted by this section is not considered a Texas resident under this subchapter for purposes of a financial aid program offered by this state.

(c) Sections 54.159 and 54.160 do not apply to this section.

SECTION 7. Section 21.050(c), Education Code, is amended to read as follows:

(c) A person who receives a bachelor's degree required for a teaching certificate on the basis of higher education coursework completed while receiving an exemption from tuition and fees under Section 54.109 [54.214] may not be required to participate in any field experience or internship consisting of student teaching to receive a teaching certificate.

SECTION 8. Section 51.803(a), Education Code, is amended to read as follows:

(a) Each general academic teaching institution shall admit an applicant for admission to the institution as an undergraduate student if the applicant graduated with a grade point average in the top 10 percent of the student's high school graduating class in one of the two school years preceding the academic year for which the applicant is applying for admission and the applicant graduated from a public or private high school in this state accredited by a generally recognized accrediting organization or from a high school operated by the United States Department of Defense. To qualify for admission under this section, an applicant must submit an application before the expiration of any application filing deadline established by the institution and, if the applicant graduated from a high school operated by the United States Department of Defense, must be a Texas resident under Section 54.052 or be entitled to pay tuition fees at the rate provided for Texas residents under Section 54.153 [54.058(d)] for the term or semester to which admitted.

SECTION 9. Section 54.011, Education Code, is amended to read as follows:

Sec. 54.011. TUITION LIMIT IN CASES OF CONCURRENT ENROLLMENT. (a) When a student registers at more than one public institution of higher education at the same time, the student's [his] tuition charges shall be determined in the following manner:

(1) the [The] student shall pay the full tuition charge to the first institution at which the student [he] is registered, [;] and in any event the student [he] shall pay an amount at least equal to the minimum tuition specified in this code; [.]

(2) if [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 [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 the student's [his] total tuition charge at the second institution and the student's [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; and [.]

(4) if [If] a student is considered to be a Texas resident and therefore qualified to pay Texas resident tuition rates by one institution at which the student [he] is registered, that student shall be considered a Texas resident at each of the institutions at which the student [he] is concurrently registered for the purposes of determining the proper tuition charges.

(b) Nothing in Subsection (a)(4) [this subdivision] shall be [so] construed [as] to allow a nonresident to pay resident tuition except at institutions covered by Section 54.158 or 54.165 [54.060 of this code].

SECTION 10. The heading to Subchapter D, Chapter 54, Education Code, is amended to read as follows:

SUBCHAPTER D. PERMISSIVE EXEMPTIONS FROM TUITION

SECTION 11. Section 54.545(c), Education Code, is amended to read as follows:

(c) Subchapters B, C, C-1, and D do not apply to a fee charged under this section[, except to a fee for a correspondence course taken by a student who would qualify for an exemption from tuition under Section 54.203 if the correspondence course applies towards the student's degree plan. The governing board of an institution of higher education may grant an exemption provided by Section 54.203 for continuing education courses].

SECTION 12. Section 56.455, Education Code, is amended to read as follows:

Sec. 56.455. INITIAL ELIGIBILITY FOR LOAN. To be eligible initially for a Texas B-On-time loan, a person must:

(1) be a resident of this state under Section 54.052 or be entitled, as a child of a member of the armed forces of the United States, to pay tuition at the rate provided for residents of this state under Section 54.153(a)(2) or (3) [54.058];

(2) meet one of the following academic requirements:

(A) be a graduate of a public or accredited private high school in this state who graduated not earlier than the 2002-2003 school year under the recommended or advanced high school program established under Section 28.025(a);

(B) be a graduate of a high school operated by the United States Department of Defense who:

(i) graduated from that school not earlier than the 2002-2003 school year; and

(ii) at the time of graduation from that school was a dependent child of a member of the armed forces of the United States; or

(C) have received an associate degree from an eligible institution not earlier than May 1, 2005;

(3) be enrolled for a full course load for an undergraduate student, as determined by the coordinating board, in an undergraduate degree or certificate program at an eligible institution;

(4) be eligible for federal financial aid, except that a person is not required to meet any financial need requirement applicable to a particular federal financial aid program; and

(5) comply with any additional nonacademic requirement adopted by the coordinating board under this subchapter.

SECTION 13. Section 61.0516, Education Code, is amended to read as follows:

Sec. 61.0516. ELECTRONIC SYSTEM TO MONITOR TUITION EXEMPTIONS FOR VETERANS AND DEPENDENTS. The board shall develop a system to electronically monitor the use of tuition exemptions under Sections 54.103(a) and (b) [Section 54.203]. The system must allow the board to electronically receive, for each semester, the following information from institutions of higher education:

(1) the name of the institution;

(2) the name, identification number, and date of birth of each individual attending the institution and receiving benefits for the semester under Section 54.103(a) or (b) [54.203];

(3) for each individual receiving benefits, the number of credit hours for which the individual received an exemption for the semester;

(4) for each individual receiving benefits at the institution during the semester, the total cumulative number of credit hours for which the individual has received an exemption at the institution; and

(5) any other information required by the board.

SECTION 14. Section 61.073, Education Code, is amended to read as follows:

Sec. 61.073. ALLOCATION OF FUNDS FOR TUITION AND FEE EXEMPTIONS. Funds shall be appropriated to the Texas Higher Education Coordinating Board for allocation to each junior and community college in an amount equal to the total of all tuition and laboratory fees foregone each semester as a result of the tuition and laboratory fee exemptions required by law under [in] Sections 54.103(b)(2), 54.105, 54.108, 54.112, and 54.207 [54.201 through 54.209, Texas Education Code].

SECTION 15. Section 76.07(c), Education Code, is amended to read as follows:

(c) A nonresident student who is simultaneously enrolled in the institution and another public institution of higher education under a program offered jointly by the two institutions under a partnership agreement and who pays the fees and charges required of Texas residents at one of the institutions as provided by Section 54.156(a) [54.064] because the student holds a competitive scholarship is entitled to pay the fees and charges required of Texas residents at each public institution of higher education in which the student is simultaneously enrolled under the program.

SECTION 16. Section 130.003(f), Education Code, is amended to read as follows:

(f) This section does not alter, amend, or repeal Section 54.158 or 54.165 [54.060 of this code].

SECTION 17. Section 131.005(a), Education Code, is amended to read as follows:

(a) A Texas resident student enrolled in the institute is exempt from tuition fees under Section 54.105 [54.205 of this code].

SECTION 18. Section 431.090(h), Government Code, is amended to read as follows:

(h) From money appropriated for purposes of this section, the adjutant general shall authorize the comptroller to reimburse an institution of higher education in an amount equal to the amount of the tuition exemption the institution grants to a person under Section 54.120 [54.2155], Education Code.

SECTION 19. Section 824.602(a), Government Code, is amended to read as follows:

(a) Subject to Section 825.506, the retirement system may not, under Section 824.601, withhold a monthly benefit payment if the retiree is employed in a Texas public educational institution:

(1) as a substitute only with pay not more than the daily rate of substitute pay established by the employer and, if the retiree is a disability retiree, the employment has not exceeded a total of 90 days in the school year;

(2) in a position, other than as a substitute, on no more than a one-half time basis for the month;

(3) in one or more positions on as much as a full-time basis, if the work occurs in not more than six months of a school year that begins after the retiree's effective date of retirement;

(4) in a position, other than as a substitute, on no more than a one-half time basis for no more than 90 days in the school year, if the retiree is a disability retiree;

(5) in a position as a classroom teacher on as much as a full-time basis, if the retiree has retired under Section 824.202(a) or (a-1), is certified under Subchapter B, Chapter 21, Education Code, to teach the subjects assigned, is teaching in an acute shortage area as determined by the board of trustees of a school district as provided by Subsection (m), and has been separated from service with all public schools for at least 12 months;

(6) in a position as a principal, including as an assistant principal, on as much as a full-time basis, if the retiree has retired under Section 824.202(a) or (a-1) without reduction for retirement at an early age, is certified under Subchapter B, Chapter 21, Education Code, to serve as a principal, and has been separated from service with all public schools for at least 12 months;

(7) as a bus driver for a school district on as much as a full-time basis, if the retiree has retired under Section 824.202(a) or (a-1), and the retiree's primary employment is as a bus driver; or

(8) as a faculty member, during the period beginning with the 2005 fall semester and ending on the last day of the 2015 spring semester, in an undergraduate professional nursing program or graduate professional nursing program, as defined by Section 54.101 [54.221], Education Code, and if the retiree has been separated from service with all public schools for at least 12 months.

SECTION 20. Section 2306.5622(a)(1), Government Code, is amended to read as follows:

(1) "Graduate professional nursing program" and "undergraduate professional nursing program" have the meanings assigned by Section 54.101 [54.221], Education Code.

SECTION 21. The following statutes are repealed:

(1) Sections 54.058, 54.059, 54.063, 54.064, 54.065, 54.069, 54.070, 54.074, 54.201, 54.203, 54.204, 54.205, 54.208, 54.209, 54.211, 54.2111, 54.212, 54.214, 54.219, 54.221, and 54.222, Education Code;

(2) Section 54.073, Education Code, as added by Chapter 888, Acts of the 79th Legislature, Regular Session, 2005; and

(3) Section 615.0225, Government Code.

SECTION 22. The changes in law made by this Act apply beginning with tuition and fees for the 2009 fall semester. Tuition and fees for a term or semester before the 2009 fall semester are covered by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose.

SECTION 23. 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, 2007.