89R8121 RDR-F

By: Blanco S.B. No. 915

A BILL TO BE ENTITLED

AN ACT

relating to a limitation on the amount of tuition charged by 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 Section 54.0514 to read as follows:

Sec. 54.0514. LIMITATION ON TOTAL AMOUNT OF TUITION. (a) In this section, "tuition" includes:

(1) tuition for which the rates are prescribed by this chapter; and

(2) tuition charged by an institution of higher education under Section 54.0513 or another law authorizing an institution to establish tuition rates.

(b) Beginning with the 2026-2027 academic year, the total amount of tuition charged by an institution of higher education to a student for an academic year may not exceed the total amount of tuition that the institution would have charged under this chapter to a similarly situated student for the 2025-2026 academic year. This subsection does not apply to tuition for an academic year after the 2029-2030 academic year and expires September 1, 2030.

(c) The total amount of tuition charged by an institution of higher education to a student for the 2030-2031 or a later academic year may not exceed the total amount of tuition that the institution would have charged under this chapter to a similarly situated student of the institution for the preceding academic year, based on the tuition rates in effect for that academic year, as that amount is adjusted for inflation according to the inflation rate determined under Subsection (d). The institution may not increase the amount of tuition charged under this section to a student more than once in any academic year.

(d) Not later than January 31 of each year beginning January 31, 2030, or as soon thereafter as practicable, the Legislative Budget Board shall publish and certify to the governing board of each institution of higher education 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 calendar year preceding that calendar year.

(e) For purposes of this section, 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.

(f) This section 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.

(g) The Texas Higher Education Coordinating Board may adopt rules as necessary to administer this section.

SECTION 2. Sections 54.0513(a) and (b), Education Code, are amended to read as follows:

(a) In addition to amounts that a governing board of an institution of higher education is authorized to charge as tuition under the other provisions of this chapter, the governing board[, under the terms the governing board considers appropriate,] may charge any student an amount designated as tuition, not to exceed the amount that enables the institution to comply with Section 54.0514, that the governing board considers necessary for the effective operation of the institution.

(b) Subject to the limit provided by Subsection (a) on the amount designated as tuition charged under this section, a [A] governing board may set a different tuition rate under this section for each program and course level offered by each institution of higher education[. A governing board may set a different tuition rate] as the governing board considers appropriate to increase graduation rates, encourage efficient use of facilities, or enhance employee performance.

SECTION 3. Sections 54.0515(e) and (f), Education Code, are amended to read as follows:

(e) It is the legislature's intent that each institution of higher education[, as a condition to tuition deregulation under Section 54.0513,] reasonably implement the following:

(1) each institution shall make satisfactory progress towards the goals provided in its master plan for higher education and in "Closing the Gaps," the state's master plan for higher education, or a successor state master plan; and

(2) each institution shall meet acceptable performance criteria, including measures such as graduation rates, retention rates, enrollment growth, educational quality, efforts to enhance minority participation, opportunities for financial aid, and affordability.

(f) The committee shall:

(1) meet at the call of either chair;

(2) monitor and regularly report to the legislature on each institution of higher education's compliance with the requirements of Subsection (e); and

(3) receive and review information concerning the affordability and accessibility of higher education[, including the impact of tuition deregulation].

SECTION 4. This Act applies beginning with tuition charged by public institutions of higher education for the 2026 fall semester. Tuition charged by an institution of higher education in an academic period before that semester is governed by the law in effect before the effective date of this Act, and the former law is continued in effect for that purpose.

SECTION 5. This Act takes effect January 1, 2026.