SRC-AMY C.S.H.B. 3015 78(R)    BILL ANALYSIS


Senate Research CenterC.S.H.B. 3015
78R17120 JSA-DBy: Morrison (Shapiro)
Education
5/21/2003
Committee Report (Substituted)

DIGEST AND PURPOSE 

The current system used to set tuition in Texas mandates the same basic
rate across the state. With tuition flexibility, universities could use
flexible rates to  achieve strategic goals such as improving graduation
rates, more efficient use of facilities, and improving academic programs.
C.S.H.B. 3015 establishes the structure to implement a  flexible pricing
plan, to measure the performance of each institution of higher education.
This bill also establishes a committee of the Senate Committee on
Education and the House Committee on Higher Education to jointly conduct a
study of alternative methods by which rates for tuition and fees at public
institutions of higher education may be set up by the legislature and by
the governing boards of those institutions and the impact of those
alternatives on certain areas related to higher education. 
 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter A, Chapter 54, Education Code, by adding
Section 54.0031, as follows: 

Sec. 54.0031.  EXPIRATION OF AUTHORITY TO IMPOSE TUITION AND STUDENT FEES.
(a) Prohibits a general academic teaching institution, as defined by
Section 61.003 (Definitions), from imposing, charging, or collecting
tuition or a fee authorized by this title from any student enrolled at the
institution for a term or semester that begins on or after January 1,
2006. 

(b) Provides that this section does not apply to a charge or fee for goods
or services that are not provided as part of the institution's academic
program, such as a charge for housing or food service or for attendance at
athletic or cultural events, unless every student not exempted by law from
payment of the charge or fee who registers at the institution is required
to pay the charge or fee. 

SECTION 2.  Amends Section 54.0513, Education Code, as follows:

Sec. 54.0513.  New heading: DESIGNATED TUITION.  (a)  Deletes text
referring to redesignating the building use fee previously authorized in
Section 55.16 of this code as tuition.  Authorizes the governing board, 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, to charge an amount designated as tuition in an academic
year an amount not to exceed the amount charged under Sections 54.051
(Tuition Rates) or 54.0512 (Interim Tuition Rates), as applicable, in that
academic year. 

(b) Authorizes the governing board of an institution of higher education,
in addition to the amounts authorized by Subsection (a) or the other
provisions of this chapter, to charge a resident undergraduate student an
amount designated as tuition in a certain manner. 

 (b-1) Prohibits the governing board of an institution of higher education
from increasing the maximum amount of tuition charged under this section
by combining or aggregating the additional amounts permitted by
Subsections (b)(1) and (b)(2). 

(c) Authorizes the governing board of an institution of higher education,
for a nonresident student or a student enrolled in a graduate degree
program, including a dental or medical degree program, a graduate degree
program in an allied health field, or another graduate-level professional
degree program, to charge amounts designated as tuition in the amounts and
under the terms the governing board considers necessary for the effective
operation of the institution. 

(d) Authorizes a governing board to set the tuition authorized by this
section at a different rate for each program and course level offered by
an institution of higher education and to set different tuition rates at
an institution for different academic periods or based on any other factor
the governing board considers appropriate to increase graduation rates,
enhance employee performance, or further the efficient use of facilities
or resources.  Provides that this subsection does not authorize a
governing board to set tuition in violation of a limitation provided by
another provision of this chapter. 

(e) Creates this subsection from existing text.  Deletes the specification
that Section 51.009 is of this code. 

(f)  Redesignates this subsection from Subsection (d).

(g) Redesignates this subsection from Subsection (e).  Deletes the
specification that Section 56.033 is of this code. 

(h) Redesignates this subsection from Subsection (f).

SECTION 3.  Amends Section 54.619, Education Code, by adding Subsection
(j) to authorize the Prepaid Higher Education Tuition Board (board) to
suspend new enrollment in the program as the board considers necessary to
ensure the actuarial soundness of the fund. 

SECTION 4.  Amends Section 54.624, Education Code, as follows:

Sec. 54.624.  SENIOR COLLEGE PLAN.  (a)  Creates this subsection from
existing text. 

(b) Requires the university, when the beneficiary of a senior college plan
prepaid tuition contract enrolls in a public senior college or university,
to accept as payment in full of the beneficiary's tuition and required
fees the lesser of certain amounts. 

(c) Requires each public senior college or university to provide the
information requested by the board on or before June 1 each year to assist
the board in determining the weighted average amount of tuition and
required fees of all public senior colleges and universities for each
semester or other academic term of the following academic year for
purposes of this section. 

SECTION 5.  Amends Chapter 56, Education Code, by adding Subchapter B, as
follows: 

SUBCHAPTER B.  FINANCIAL ASSISTANCE FUNDED
FROM DESIGNATED TUITION

Sec. 56.011.  UNDERGRADUATE STUDENT ASSISTANCE.  (a) Requires the
governing board of each institution of higher education to cause to be set
aside not less than 20 percent of any amount of tuition charged to a
resident undergraduate student under Section 54.0513 in excess of $46 per
semester credit hour and  not less than three  percent of any amount of
tuition charged under Section 54.0513 to a nonresident undergraduate
student in excess of $46 per semester credit hour.    

(b) Requires the money set aside under this section to be used to support
the undergraduate work-study programs at the institution and the Texas
B-on-time loan program, if that program is enacted by the 78th
Legislature. 

Sec. 56.012.  RESIDENT GRADUATE STUDENT ASSISTANCE.  (a) Requires the
governing board of each institution of higher education to cause to be set
aside not less than 15 percent of the amount of tuition charged to a
resident student enrolled in a graduate or professional degree program
under Section 54.0513 in excess of $46 per semester credit hour. 

(b) Requires the money set aside under this section to be used to provide
financial assistance for resident students enrolled in graduate and
professional degree programs at the institution. 

(c) Authorizes the financial assistance provided under this section to
include grants, scholarships, and work-study programs. 

Sec. 56.013.  INFORMATION REGARDING FINANCIAL ASSISTANCE FUNDED FROM
DESIGNATED TUITION.  Requires THECB to disseminate to each public or
accredited private high school in this state information regarding the
financial assistance available under this subchapter and to include
information designed to educate high school students and the parents of
those students on available opportunities and required preparation with
respect to institutions of higher education.  Requires THECB to recommend
a method for delivering the information to parents and students under this
section. 

SECTION 6.  Amends Subchapter H, Chapter 51, Education Code, by adding
Section 51.4015, as follows: 

Sec. 51.4015.  ACCOUNTABILITY REPORTS.  (a) Provides that in this section
"institution of higher education," "governing board," and "university
system" have the meanings assigned by Section 61.003 (Definitions). 

(b) Requires THECB, in furtherance of the policies of this state to
provide an affordable, accessible, accountable, and high-quality system of
higher education that prepares individuals for a changing economy and
workforce and to promote the development and application of knowledge
through instruction, research, and public service, to adopt standards to
measure the performance of each institution of higher education. 

(c) Requires the standards to include the standards included in the
performance system established by THECB for the master plan for higher
education and any other standards THECB considers appropriate to measure. 

(d) Requires the governing board of each institution of higher education,
other than a public junior college, to prepare a report of the performance
of the institution in meeting the standards adopted under this section in
each academic year.  Authorizes the governing board to prepare a single
report for all the institutions under its jurisdiction. 

(e) Sets forth the required distribution, not later than January 1 of each
oddnumbered year, of the governing board's report. 

SECTION 7.  (a) Requires the Senate Committee on Education and the House
Committee on Higher Education to jointly conduct a study of alternative
methods by which rates for tuition and fees at public institutions of
higher education may be set up by the legislature and by the  governing
boards of those institutions.  Requires the study to consider the impact
of those alternatives on certain areas related to higher education. 

(b) Requires the chairs of the committees, in consultation with the
members, to jointly determine the procedures governing the conduct of
study. 

(c) Requires the committees to present the results of the study along with
any recommendations to the legislature not later than December 1, 2004. 

SECTION 8.  (a) Provides that the changes in law made by this Act,
relating to tuition charged by institutions of higher education, apply
beginning with the 2003 fall semester. 

(b) Requires the initial report required by Section 51.4015, Education
Code, as added by this Act, to be prepared for the 2002-2003 academic
year. 

SECTION 9.  Effective date:  upon passage or September 1, 2003.