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            |  | AN ACT | 
         
            |  | relating to formula funding for excess undergraduate credit hours | 
         
            |  | at public institutions of higher education and to the tuition rate | 
         
            |  | that may be charged for those credit hours. | 
         
            |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
            |  | SECTION 1.  Section 54.014, Education Code, is amended by | 
         
            |  | amending Subsection (a) and adding Subsections (a-1) and (a-2) to | 
         
            |  | read as follows: | 
         
            |  | (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 30  | 
         
            |  | hours] the number of semester credit hours required for completion | 
         
            |  | of the degree program in which the student is enrolled by at least: | 
         
            |  | (1)  for an associate degree program, 15 hours; or | 
         
            |  | (2)  for a baccalaureate degree program, 30 hours. | 
         
            |  | (a-1)  For purposes of Subsection (a) [ this subsection], an | 
         
            |  | undergraduate student who is not enrolled in a degree program is | 
         
            |  | considered to be enrolled in a baccalaureate degree program [ or  | 
         
            |  | programs requiring a minimum of 120 semester credit hours,  | 
         
            |  | including minors and double majors, and for completion of any  | 
         
            |  | certificate or other special program in which the student is also  | 
         
            |  | enrolled, including a program with a study-abroad component]. | 
         
            |  | (a-2)  An institution of higher education that charges | 
         
            |  | students tuition at a higher rate under Subsection (a) [ this  | 
         
            |  | subsection] may adopt a policy under which the institution exempts | 
         
            |  | from the payment of that higher rate a student that is subject to | 
         
            |  | the payment of the higher rate solely as a result of hardship as | 
         
            |  | determined by the institution under the policy. | 
         
            |  | SECTION 2.  Sections 61.0595(a) and (b), Education Code, are | 
         
            |  | amended to read as follows: | 
         
            |  | (a)  In the formulas established under Section 61.059, the | 
         
            |  | board may not include funding for semester credit hours earned by a | 
         
            |  | resident undergraduate student who before the semester or other | 
         
            |  | academic session begins 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 30 hours] the number of semester | 
         
            |  | credit hours required for completion of the degree program or | 
         
            |  | programs in which the student is enrolled, including minors and | 
         
            |  | double majors, and for completion of any certificate or other | 
         
            |  | special program in which the student is also enrolled, including a | 
         
            |  | program with a study-abroad component, by at least: | 
         
            |  | (1)  for an associate degree program, 15 hours; or | 
         
            |  | (2)  for a baccalaureate degree program, 30 hours. | 
         
            |  | (b)  For purposes of Subsection (a), an undergraduate | 
         
            |  | student who is not enrolled in a degree program is considered to be | 
         
            |  | enrolled in a baccalaureate degree program [ requiring a minimum of  | 
         
            |  | 120 semester credit hours]. | 
         
            |  | SECTION 3.  The change in law made by this Act to Section | 
         
            |  | 54.014, Education Code, applies beginning with tuition charged to | 
         
            |  | students enrolling for the first time in an associate degree | 
         
            |  | program at a public institution of higher education for the 2023 | 
         
            |  | fall semester.  Tuition charged to a student who first enrolled in | 
         
            |  | an associate degree program at a public institution of higher | 
         
            |  | education before the 2023 fall semester is governed 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 4.  The change in law made by this Act to Section | 
         
            |  | 61.0595, Education Code, applies beginning with funding | 
         
            |  | recommendations made under Section 61.059, Education Code, for the | 
         
            |  | state fiscal biennium beginning September 1, 2023, for semester | 
         
            |  | credit hours earned by students initially enrolling in an associate | 
         
            |  | degree program at a public institution of higher education for the | 
         
            |  | 2023 fall semester or a subsequent semester or term.  Funding | 
         
            |  | recommendations for semester credit hours earned by a student who | 
         
            |  | initially enrolled in an associate degree program at a public | 
         
            |  | institution of higher education before the 2023 fall semester are | 
         
            |  | governed 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 5.  This Act takes effect September 1, 2021. | 
         
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            |  | ______________________________ | ______________________________ | 
         
            |  | President of the Senate | Speaker of the House | 
         
            |  | 
         
            |  | I hereby certify that S.B. No. 1531 passed the Senate on | 
         
            |  | April 19, 2021, by the following vote:  Yeas 31, Nays 0; and that | 
         
            |  | the Senate concurred in House amendment on May 28, 2021, by the | 
         
            |  | following vote:  Yeas 31, Nays 0. | 
         
            |  |  | 
         
            |  | 
         
            |  | ______________________________ | 
         
            |  | Secretary of the Senate | 
         
            |  | 
         
            |  | I hereby certify that S.B. No. 1531 passed the House, with | 
         
            |  | amendment, on May 25, 2021, by the following vote:  Yeas 73, | 
         
            |  | Nays 72, one present not voting. | 
         
            |  |  | 
         
            |  | 
         
            |  | ______________________________ | 
         
            |  | Chief Clerk of the House | 
         
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            |  | Approved: | 
         
            |  |  | 
         
            |  | ______________________________ | 
         
            |  | Date | 
         
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            |  |  | 
         
            |  | ______________________________ | 
         
            |  | Governor |