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	Amend CSHB 10 (House Committee Printing) as follows:                         
	(1)  On page 9, following line 27, insert the following new 
SECTION, appropriately numbered:
	SECTION      . TEXAS HIGHER EDUCATION COORDINATING BOARD: 
FORMULA FUNDING.  In addition to amounts previously appropriated 
for the state fiscal biennium ending August 31, 2005, the amount of 
$600,000,000 is appropriated out of the general revenue fund to the 
Texas Higher Education Coordinating Board for the two-year period 
beginning on the effective date of this Act for the purpose of 
increasing the amount of formula funding distributed to 
institutions of higher education. The coordinating board shall 
allocate money appropriated by this section to institutions of 
higher education as determined appropriate by the board, consistent 
with the board's funding formulas, to supplement other money 
appropriated to those institutions.
	(2)  On page 14, between lines 1 and 2, insert the following 
new SECTION, appropriately numbered:
	SECTION      . LIMITATION ON EXPENDITURE OF APPROPRIATED 
TUITION AND FEES:  INSTITUTIONS OF HIGHER EDUCATION.  (a)  An 
institution of higher education may not expend any revenue 
appropriated to the institution derived from tuition and compulsory 
fees charged to any student of the institution for any academic 
period of the 2005-2006 academic year to the extent that the amount 
of that revenue derived from that student exceeds 103 percent of the 
total amount of such tuition and compulsory fees that a similarly 
situated student would have paid for the corresponding academic 
period of the 2004-2005 academic year.
	(b)  For the two-year period beginning on the effective date 
of this Act, an institution of higher education may not expend any 
revenue appropriated to the institution derived from tuition and 
compulsory fees charged to any student of the institution for any 
academic period of the 2006-2007 academic year to the extent that 
the amount of that revenue derived from that student exceeds 106 
percent of the total amount of such tuition and compulsory fees that 
a similarly situated student would have paid for the corresponding 
academic period of the 2004-2005 academic year.
	(c)  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 and compulsory fees charged to 
the student.
	(d)  This section applies only to increased revenue received 
on a per student basis. This section does not restrict the 
expenditure of increased revenue to the extent that the increase in 
revenue is due to an increase in the number of students.
	(3)  Renumber SECTIONS of the bill accordingly: