By: Seliger S.B. No. 778
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to performance-based tuition limitations for certain
  public institutions of higher education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 54, Education Code, is
  amended by adding Sections 54.05131 and 54.05132 to read as
  follows:
         Sec. 54.05131.  PERFORMANCE-BASED DESIGNATED TUITION
  LIMITATIONS.  (a)  In this section:
               (1)  "Administrative costs" means the percentage of an
  institution's operating budget expended on institutional expenses,
  as designated in an institution's annual financial reports in the
  subcategories of executive management, fiscal operations, general
  administrative and logistical services, administrative computing
  support, and public relations/development. 
               (2)  "Coordinating board" means the Texas Higher
  Education Coordinating Board.
               (3)  "General academic teaching institution" and
  "public state college" have the meanings assigned by Section
  61.003.
               (4)  "Performance measure" includes only a performance
  measure defined by coordinating board rule under Subsection (b).
         (b)  The coordinating board, using the negotiated rulemaking
  procedures under Chapter 2008, Government Code, shall define the
  following performance measures to be used for purposes of this
  section: 
               (1)  the total number of undergraduate degrees awarded
  by the institution;
               (2)  the total number of undergraduate degrees awarded
  by the institution, adjusted by the institution's six-year
  graduation rate under Subdivision (10);
               (3)  the total number of undergraduate degrees awarded
  by the institution per 100 undergraduate full-time student
  equivalents;
               (4)  the total number of undergraduate degrees awarded
  by the institution to at-risk students;
               (5)  the total number of undergraduate students at the
  institution having successfully completed at least 25 percent of
  the student's degree requirements or having earned at least 30
  credit hours toward a 120-credit-hour degree;
               (6)  the total number of undergraduate students at the
  institution having successfully completed at least 50 percent of
  the student's degree requirements or having earned at least 60
  credit hours toward a 120-credit-hour degree;
               (7)  the total number of undergraduate students having
  successfully completed at least 75 percent of the student's degree
  requirements or having earned at least 90 credit hours toward a
  120-credit-hour degree;
               (8)  the average length of enrollment, by number of
  semesters, required for undergraduate degree completion;
               (9)  the four-year graduation rate of first-time,
  full-time, bachelor's degree-seeking students who enrolled in at
  least 12 semester credit hours in the student's first fall semester
  at the institution and who graduated from the institution or from
  any other institution of higher education or private or independent
  institution of higher education;
               (10)  the six-year graduation rate of first-time,
  full-time, bachelor's degree-seeking students who enrolled in at
  least 12 semester credit hours in the student's first fall semester
  at the institution and who graduated from the institution or from
  any other institution of higher education or private or independent
  institution of higher education; and
               (11)  the institution's administrative costs.
         (c)  This section applies only to a general academic teaching
  institution other than a public state college.
         (d)  The coordinating board in consultation with the
  Legislative Budget Board shall determine whether an institution has
  achieved the applicable target levels for purposes of Subsections
  (f) and (g). Using the negotiated rulemaking procedures under
  Chapter 2008, Government Code, the coordinating board by rule shall
  establish the process by which an institution's achievement on a
  performance measure is submitted to and verified by the
  coordinating board.
         (e)  The coordinating board shall notify the governing board
  of an institution as soon as practicable after the coordinating
  board determines that Subsection (f) or (g) applies to the tuition
  charged by the institution for an academic year and of the
  limitation prescribed by the applicable subsection on the amount of
  tuition that may be charged by the institution for that academic
  year.
         (f)  This subsection applies to tuition charged for an
  academic year by an institution to which this section applies only
  if the institution did not achieve, in the most recent state fiscal
  year preceding that academic year for which information is
  available, a majority of the target levels assigned to the
  performance measures included in the General Appropriations Act as
  applicable to the institution for that state fiscal year. For an
  academic year in which this subsection applies to the tuition
  charged by an institution, unless the institution has been granted
  an exception under Subsection (j) for that year, the amount of
  tuition the governing board of the institution charges under
  Section 54.0513 to a student for that academic year may not exceed
  the total amount of tuition that the governing board would have
  charged under that section to a similarly situated student in the
  preceding academic year, as that amount is adjusted for each
  academic year for inflation as determined under Subsection (i).
  The governing board may not increase the amount of tuition charged
  under this subsection to a student more than once in any academic
  year.
         (g)  This subsection applies to tuition charged for an
  academic year by an institution to which this section applies only
  if the institution achieved, in the most recent state fiscal year
  preceding that academic year for which information is available, a
  majority of the target levels assigned to the performance measures
  included in the General Appropriations Act as applicable to the
  institution for that state fiscal year. For an academic year in
  which this subsection applies to the tuition charged by an
  institution, the amount of tuition the governing board of the
  institution charges under Section 54.0513 to a student for that
  academic year may not exceed by more than three percent the total
  amount of tuition that the governing board would have charged under
  that section to a similarly situated student in the preceding
  academic year, as that amount is adjusted for each academic year for
  inflation as determined under Subsection (i). The governing board
  may not increase the amount of tuition charged under this
  subsection to a student more than once in any academic year.
         (h)  For purposes of this section:
               (1)  an institution is considered to have achieved a
  target level assigned to a performance measure if the institution
  has achieved at least 98 percent of the target level; and
               (2)  students are similarly situated if they share the
  same residency status, degree program, course load, course level,
  tuition exemption status, and other circumstances affecting the
  tuition charged to the student.
         (i)  Not later than January 31 of each year, or as soon
  thereafter as practicable, the Legislative Budget Board shall
  publish and certify to the governing board of each institution to
  which this section applies the inflation rate to be used for
  purposes of this section for the next academic year.  The inflation
  rate is the percentage increase, if any, as expressed in decimal
  form rounded to the nearest thousandth of one percent, in the
  consumer price index, as defined by Section 341.201, Finance Code,
  for the preceding calendar year as compared to the consumer price
  index for the year preceding that year.
         (j)  The coordinating board, using the negotiated rulemaking
  procedures under Chapter 2008, Government Code, by rule shall
  establish an exception to the application of Subsection (f) for an
  institution to which that subsection would otherwise apply for an
  academic year in the event of a natural disaster or other
  extraordinary circumstance affecting the institution's achievement
  on performance measures.  Subsection (g) applies to an institution
  that is granted an exception under this subsection.
         Sec. 54.05132.  TEMPORARY LIMITATION ON TOTAL AMOUNT OF
  TUITION. (a)  In this section:
               (1)  "General academic teaching institution" and
  "public state college" have the meanings assigned by Section
  61.003.
               (2)  "Tuition" includes:
                     (A)  tuition for which the rates are prescribed by
  this chapter; and
                     (B)  tuition charged by an institution of higher
  education under Section 54.0513 or another law authorizing an
  institution to establish tuition rates.
         (b)  Notwithstanding Section 54.0513, the total amount of
  tuition charged by a general academic teaching institution other
  than a public state college to a student for the 2016-2017 or
  2017-2018 academic year may not exceed by more than one percent the
  total amount of tuition that the institution would have charged
  under this chapter to a similarly situated student for the
  preceding academic year, as that amount is adjusted for each
  academic year for inflation as determined under Subsection (c).
  For purposes of this subsection, students are similarly situated if
  they share the same residency status, degree program, course load,
  course level, tuition exemption status, and other circumstances
  affecting the tuition charged to the student. This subsection does
  not ensure that the total amount of tuition charged to an individual
  student does not increase based on a change in the student's
  residency status, degree program, course load, course level,
  tuition exemption status, or other circumstance affecting the
  tuition charged to the student.
         (c)  Not later than January 31 of each year, or as soon
  thereafter as practicable, the Legislative Budget Board shall
  publish and certify to the governing board of each institution to
  which this section applies the inflation rate to be used for
  purposes of this section for the next academic year. The inflation
  rate is the percentage increase, if any, as expressed in decimal
  form rounded to the nearest thousandth of one percent, in the
  consumer price index, as defined by Section 341.201, Finance Code,
  for the preceding calendar year as compared to the consumer price
  index for the year preceding that year.
         (d)  This section expires September 1, 2018.
         SECTION 2.  Chapter 322, Government Code, is amended by
  adding Section 322.025 to read as follows:
         Sec. 322.025.  RECOMMENDATIONS FOR PERFORMANCE MEASURE
  TARGET LEVELS FOR CERTAIN INSTITUTIONS OF HIGHER EDUCATION.
  (a)  In this section:
               (1)  "Institution of higher education" and "university
  system" have the meanings assigned by Section 61.003, Education
  Code.
               (2)  "Performance measure" means a performance measure
  adopted under Section 54.05131(b), Education Code.
         (b)  The governing board of each institution of higher
  education to which Section 54.05131, Education Code, applies shall
  submit to the board, as part of the institution's legislative
  appropriations request for the general appropriations bill
  prepared by the board under Section 322.008, a target level for each
  performance measure applicable to the institution for each of the
  state fiscal years covered by the bill. The target levels submitted
  by an institution under this subsection must be established by the
  institution's governing board in consultation with the
  institution's president and provosts and with the institution's
  system administration, if the institution is a component
  institution of a university system. In establishing the target
  levels, the institution's governing board shall adhere to the Texas
  Higher Education Coordinating Board's standards under Subsection
  (c).
         (c)  The Texas Higher Education Coordinating Board, using
  the negotiated rulemaking procedures under Chapter 2008, by rule
  shall develop standards to be considered by the governing board of
  an institution of higher education in establishing the
  institution's target levels for performance measures under
  Subsection (b). In developing the standards, the negotiating
  committee established for purposes of this subsection and the
  coordinating board shall consider institutional improvement on
  target levels. The coordinating board shall reconvene the
  negotiating committee to assist the coordinating board whenever the
  coordinating board modifies or updates the standards.
         (d)  The board, in preparing the general appropriations bill
  under Section 322.008, shall include the performance measure target
  levels submitted by each institution under Subsection (b) of this
  section to which money is to be appropriated in the bill, as
  recommendations for the target levels to be included in the
  appropriations to the institution for each of the state fiscal
  years covered by the bill.
         SECTION 3.  Section 54.05131, Education Code, as added by
  this Act, applies beginning with tuition charged by a general
  academic teaching institution to which that section applies for the
  2018-2019 academic year.
         SECTION 4.  This Act takes effect September 1, 2015.