By: Morrison, Brown of Brazos H.B. No. 3015
A BILL TO BE ENTITLED
AN ACT
relating to the tuition charged and financial assistance funded by
tuition charged to students of institutions of higher education and
to a study of the accessibility and availability of graduate and
professional programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 54.0513, Education Code, is amended to
read as follows:
Sec. 54.0513. DESIGNATED TUITION [REDESIGNATION OF
BUILDING USE FEE]. (a) [The building use fee previously authorized
in Section 55.16 of this code is redesignated as tuition.
[(b)] 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 is
authorized to charge an amount designated as tuition in an academic
year an amount not to exceed the amount charged under Sections
54.051 or 54.0512, as applicable, in that academic year.
(b) In addition to the amounts authorized by Subsection (a),
the governing board of an institution of higher education may
charge a resident undergraduate student an additional amount
designated as tuition as follows:
(1) for the 2003-2004 academic year, an amount not to
exceed $23 per semester credit hour;
(2) for the 2004-2005 academic year, an amount not to
exceed $46 per semester credit hour;
(3) unless otherwise expressly provided by this code
and subject to Subsection (e), for the 2005-2006 academic year, an
amount the governing board considers necessary, and charged under
the terms the governing board considers appropriate, for the
effective operation of the institution; and
(4) unless otherwise expressly provided by this code,
for the 2006-2007 academic year and thereafter, an amount the
governing board considers necessary, and charged under the terms
the governing board considers appropriate, for the effective
operation of the institution, not to exceed the amount the
institution charged in the 2005-2006 academic year for a resident
undergraduate student in the same degree program.
(b-1) The maximum amounts of tuition permitted by
Subsection (b) are in addition only to the tuition amounts
authorized by Subsection (a). A governing board of an institution
of higher education may not increase the maximum amount of tuition
by combining or aggregating the additional amounts permitted by
Subsections (b)(1) and (b)(2).
(c) For a nonresident student or a student enrolled in a
graduate or professional degree program, the governing board of an
institution of higher education may 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) A governing board may set a different tuition rate 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. This subsection does not authorize a governing board
to set tuition in violation of a limitation provided by another
provision of this chapter.
(e) In an academic year to which Subsection (b)(3) applies,
an institution of higher education may not charge tuition under
Subsection (b) in excess of the amount provided by Subsection
(b)(2) unless the institution is certified by the Texas Higher
Education Coordinating Board to have made satisfactory progress
since the preceding year toward the accessibility goals established
by the coordinating board in the master plan for higher education
and in Closing the Gaps by 2015. For each institution that the
coordinating board determines has not made satisfactory progress
toward those goals, the coordinating board shall establish criteria
that the institution must meet to be considered to be making
satisfactory progress toward those goals by the next January 1. Not
later than September 1, the governing board of the institution must
prepare and submit to the coordinating board a plan for the
institution's efforts to make satisfactory progress toward those
goals, together with information required by the coordinating board
to assist the coordinating board to evaluate the progress of the
institution in meeting the goals, including information on the
race, ethnicity, and economic background of the institution's
student body and most recent entering class.
(f) Notwithstanding the other provisions of this section,
the governing board of an institution of higher education may not
increase the rate of tuition charged to a resident student under
this section from the applicable rate for the preceding academic
year by a greater percentage than the percentage of any increase in
the rate of tuition charged to a similarly situated nonresident
student under this section from the applicable rate for the
preceding academic year. For purposes of this subsection, a
resident student is similarly situated to a nonresident student if
the factors affecting the tuition that would be charged to those
students, other than Texas residency status, are the same,
including the degree program in which the students are enrolled,
whether the students are enrolled in a regular semester or summer
term, and the course load for which the students are enrolled.
(g) Amounts collected by an institution of higher education
under this section are institutional funds as defined by Section
51.009 [of this code] and shall be accounted for as designated
funds. These funds shall not be accounted for in a general
appropriations act in such a way as to reduce the general revenue
appropriation to a particular institution.
(h) [(d)] A governing board may waive all or part of the
tuition charged to a student under this section if it finds that the
payment of such tuition would cause an undue economic hardship on
the student.
(i) [(e)] Section 56.033 of this code requiring certain
percentage amounts of tuition to be set aside for grants and
scholarships does not apply to tuition collected under this
section.
(j) [(f)] A governing board of an institution of higher
education may continue to charge as tuition under this section the
amount that it charged as the building use fee at that institution
in the 1996-1997 academic year without holding a public hearing,
but may not increase tuition under this section above that amount
without holding a public hearing.
(k) An institution of higher education may not charge an
undergraduate student tuition under Subsection (b) or (c) in an
academic year unless the institution applies the same admissions
criteria to all freshman admissions to that academic year.
SECTION 2. Chapter 56, Education Code, is amended by adding
Subchapter B to read as follows:
SUBCHAPTER B. FINANCIAL ASSISTANCE FUNDED
FROM DESIGNATED TUITION
Sec. 56.011. RESIDENT UNDERGRADUATE STUDENT ASSISTANCE.
(a) The governing board of each institution of higher education
shall 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. The funds set
aside under this section by an institution shall be used to provide
financial assistance for resident undergraduate students enrolled
in the institution.
(b) To be eligible for assistance under this section, a
resident undergraduate student must establish financial need in
accordance with rules and procedures established by the Texas
Higher Education Coordinating Board. Priority shall be given to
resident undergraduate students who meet the coordinating board
definition of financial need, and whose cost for tuition and
required fees is not met through other non-loan financial
assistance programs.
(c) The financial assistance provided under this section
may include grants, scholarships, and work-study programs.
Sec. 56.012. NONRESIDENT UNDERGRADUATE STUDENT ASSISTANCE.
(a) The governing board of each institution of higher education
shall cause to be set aside 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.
The funds set aside under this section by an institution shall be
used to provide financial assistance for nonresident undergraduate
students enrolled in the institution.
(b) To be eligible for assistance under this section, a
nonresident undergraduate student must establish financial need in
accordance with rules and procedures prescribed by the Texas Higher
Education Coordinating Board. Priority shall be given to
nonresident undergraduate students who meet the coordinating board
definition of financial need, and whose cost for tuition and
required fees is not met through other non-loan financial
assistance programs.
(c) If the funds set aside under this section exceed the
amount required to provide financial assistance to each eligible
nonresident undergraduate student, the institution may use the
excess funds to provide the same type of financial need for students
who qualify for financial assistance under Section 56.011.
Sec. 56.013. RESIDENT GRADUATE STUDENT ASSISTANCE. (a)
The governing board of each institution of higher education shall
cause to be set aside not less than 15 percent of any 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. The funds set aside under this section by
an institution shall be used to provide financial assistance for
resident students enrolled in graduate and professional degree
programs at the institution.
(b) To be eligible for assistance under this section, a
student enrolled in a graduate or professional degree program must
establish financial need in accordance with rules and procedures
established by the Texas Higher Education Coordinating Board.
Priority shall be given to students who meet the coordinating board
definition of financial need and whose cost for tuition and
required fees is not met through other non-loan financial
assistance programs.
(c) The financial assistance provided under this section
may include grants, scholarships, and work-study programs.
Sec. 56.014. INFORMATION REGARDING FINANCIAL ASSISTANCE
FUNDED FROM DESIGNATED TUITION. The Texas Higher Education
Coordinating Board shall disseminate to each public or accredited
private high school in this state information regarding the
financial assistance available under this subchapter and shall
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. The coordinating board shall recommend a method of
delivery of the information to parents and students under this
section.
SECTION 3. Subchapter H, Chapter 51, Education Code, is
amended by adding Section 51.4031 to read as follows:
Sec. 51.4031. REPORTS OF AFFORDABILITY AND ACCESS. (a) Not
later than November 30, 2004, the chief executive officer of each
institution of higher education, as defined by Section 61.003,
shall provide to the governing board of the institution a report for
the preceding fall, spring, and summer semesters that examines the
affordability and access of the institution.
(b) The report must include:
(1) statistical information on the percentage of gross
family income required for a student who is a resident of this state
to pay tuition and required fees charged by the institution;
(2) the criteria used by the institution to admit
students to the institution;
(3) an analysis of the criteria used to admit students
and to award financial assistance to students, considering the
mission of the institution and the purposes of higher education in
this state;
(4) an analysis of the manner in which the factors
described by Subdivisions (1)-(3) relate to:
(A) the regions of this state in which students
reside;
(B) the race or ethnicity of students;
(C) the gender of students; and
(D) the level of education achieved by the
parents of students; and
(5) comparisons of the institution with peer
institutions in this state and in other states with respect to
affordability and access.
(c) For purposes of the report, a student who applies for
admission to or enrolls in an institution and applies for financial
aid from the institution may be required to provide documentation
necessary for the institution to complete the report.
(d) An institution's report must be in the form prescribed
by the Texas Higher Education Coordinating Board in consultation
with the institution.
SECTION 4. Section 54.624, Education Code, is amended to
read as follows:
Sec. 54.624. SENIOR COLLEGE PLAN. (a) Through the senior
college plan, a prepaid tuition contract shall provide prepaid
tuition and required fees for the beneficiary to attend a public
senior college or university for a specified number of
undergraduate credit hours not to exceed the typical number of
hours required for a baccalaureate degree awarded by a public
senior college or university.
(b) When the beneficiary of a senior college plan prepaid
tuition contract enrolls in a public senior college or university,
the university shall accept as payment in full of the beneficiary's
tuition and required fees the lesser of:
(1) the amount of tuition and required fees charged by
the institution; or
(2) an amount paid by the board under the contract
equal to the weighted average amount of tuition and required fees of
all public senior colleges and universities for that semester or
other academic period as determined by the board.
(c) Each public senior college or university shall 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. The Texas Higher Education Coordinating Board
shall conduct a study of the accessibility and availability of
graduate and professional programs in institutions of higher
education in this state. Not later than January 1, 2004, the board
shall report the results of the study, together with any
recommendations for improving the accessibility and availability
of these programs, to the lieutenant governor, speaker of the house
of representatives, and the members of the legislature.
SECTION 6. 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, 2003.