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A BILL TO BE ENTITLED
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AN ACT
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relating to performance-based tuition limitations for certain |
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public institutions of higher education and a temporary tuition |
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limitation for those institutions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 54, Education Code, is |
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amended by adding Sections 54.05131 and 54.05132 to read as |
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follows: |
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Sec. 54.05131. PERFORMANCE-BASED DESIGNATED TUITION |
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LIMITATIONS. (a) In this section: |
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(1) "Administrative costs" means the percentage of an |
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institution's operating budget expended on institutional expenses, |
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as designated in an institution's annual financial reports in the |
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subcategories of executive management, fiscal operations, general |
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administrative and logistical services, administrative computing |
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support, and public relations/development. |
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(2) "Coordinating board" means the Texas Higher |
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Education Coordinating Board. |
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(3) "General academic teaching institution" and |
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"public state college" have the meanings assigned by Section |
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61.003. |
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(4) "Performance measure" means a performance measure |
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defined by coordinating board rule under Subsection (b). |
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(b) The coordinating board, using the negotiated rulemaking |
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procedures under Chapter 2008, Government Code, shall define the |
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following performance measures to be used for purposes of this |
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section: |
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(1) the total number of undergraduate degrees awarded |
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by the institution; |
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(2) the total number of undergraduate degrees awarded |
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by the institution, adjusted by the institution's six-year |
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graduation rate under Subdivision (10); |
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(3) the total number of undergraduate degrees awarded |
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by the institution per 100 undergraduate full-time student |
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equivalents; |
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(4) the total number of undergraduate degrees awarded |
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by the institution to at-risk students; |
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(5) the total number of undergraduate students at the |
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institution having successfully completed at least 25 percent of |
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the student's degree requirements or having earned at least 30 |
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credit hours toward a 120-credit-hour degree; |
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(6) the total number of undergraduate students at the |
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institution having successfully completed at least 50 percent of |
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the student's degree requirements or having earned at least 60 |
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credit hours toward a 120-credit-hour degree; |
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(7) the total number of undergraduate students having |
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successfully completed at least 75 percent of the student's degree |
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requirements or having earned at least 90 credit hours toward a |
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120-credit-hour degree; |
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(8) the average length of a student's enrollment, by |
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number of semesters, for undergraduate degree completion; |
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(9) the four-year graduation rate of first-time, |
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full-time, bachelor's degree-seeking students who enrolled in at |
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least 12 semester credit hours in the student's first fall semester |
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at the institution and who graduated from the institution or from |
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any other institution of higher education or private or independent |
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institution of higher education; |
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(10) the six-year graduation rate of first-time, |
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full-time, bachelor's degree-seeking students who enrolled in at |
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least 12 semester credit hours in the student's first fall semester |
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at the institution and who graduated from the institution or from |
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any other institution of higher education or private or independent |
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institution of higher education; and |
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(11) the institution's administrative costs. |
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(c) This section applies only to a general academic teaching |
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institution other than a public state college. |
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(d) Not later than October 1 of each even-numbered year, the |
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coordinating board shall: |
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(1) in consultation with the governing board and |
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president of each institution to which this section applies, |
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establish a target level for each performance measure applicable to |
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the institution for each of the two next academic years to encourage |
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the institution to maintain, or make reasonable progress toward, |
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appropriate performance in each performance measure, taking into |
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account the mission, resources, and circumstances of the particular |
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institution; and |
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(2) submit to the legislative standing committee of |
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each house of the legislature with primary jurisdiction over higher |
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education and to each institution to which this section applies a |
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report that includes the target levels established by the |
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coordinating board under Subdivision (1) for each institution. |
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(e) The coordinating board, using the negotiated rulemaking |
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procedures under Chapter 2008, Government Code, by rule shall |
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develop standards to be considered by the coordinating board in |
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establishing an institution's target levels for performance |
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measures under Subsection (d). In developing the standards, the |
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negotiated rulemaking committee established for purposes of this |
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subsection and the coordinating board shall consider institutional |
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improvement on target levels. The coordinating board shall |
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reconvene the negotiated rulemaking committee to assist the |
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coordinating board whenever the coordinating board modifies or |
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updates the standards. |
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(f) As soon as practicable after each academic year, the |
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coordinating board shall determine whether an institution has |
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achieved the applicable target levels for that academic year. |
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Using the negotiated rulemaking procedures under Chapter 2008, |
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Government Code, the coordinating board by rule shall establish the |
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process by which an institution's achievement on a performance |
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measure is submitted to and verified by the coordinating board. |
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(g) After the coordinating board makes a determination for |
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an institution under Subsection (f), the coordinating board shall |
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notify the governing board of the institution that Subsection (h) |
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or (i), as applicable, applies to the tuition charged by the |
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institution for the second academic year following the academic |
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year for which the determination is made and of the limitation |
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prescribed by the applicable subsection on the amount of tuition |
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that may be charged by the institution for that academic year. |
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(h) This subsection applies to tuition charged for an |
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academic year by an institution to which this section applies only |
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if the institution did not achieve, in the second academic year |
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preceding that academic year, the target level assigned by the |
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coordinating board for the administrative costs performance |
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measure as applicable to the institution for that preceding |
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academic year and a majority of the target levels assigned to the |
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remaining performance measures by the coordinating board as |
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applicable to the institution for that preceding academic year. |
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For an academic year in which this subsection applies to the tuition |
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charged by an institution, unless the institution has been granted |
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an exception under Subsection (l) for that year, the amount of |
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tuition the governing board of the institution charges under |
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Section 54.0513 to a student for that academic year may not exceed |
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the total amount of tuition that the governing board would have |
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charged under that section to a similarly situated student in the |
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preceding academic year, as that amount is adjusted for each |
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academic year for inflation as determined under Subsection (k). |
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The governing board may not increase the amount of tuition charged |
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under this subsection to a student more than once in any academic |
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year. |
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(i) This subsection applies to tuition charged for an |
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academic year by an institution to which this section applies only |
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if the institution achieved, in the second academic year preceding |
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that academic year, the target level assigned by the coordinating |
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board for the administrative costs performance measure as |
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applicable to the institution for that preceding academic year and |
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a majority of the target levels assigned to the remaining |
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performance measures by the coordinating board as applicable to the |
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institution for that preceding academic year. For an academic year |
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in which this subsection applies to the tuition charged by an |
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institution, the amount of tuition the governing board of the |
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institution charges under Section 54.0513 to a student for that |
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academic year may not exceed by more than three percent the total |
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amount of tuition that the governing board would have charged under |
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that section to a similarly situated student in the preceding |
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academic year, as that amount is adjusted for each academic year for |
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inflation as determined under Subsection (k). The governing board |
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may not increase the amount of tuition charged under this |
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subsection to a student more than once in any academic year. |
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(j) For purposes of this section: |
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(1) an institution is considered to have achieved a |
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target level assigned to a performance measure if the institution |
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has achieved at least 98 percent of the target level; and |
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(2) students are similarly situated if they share the |
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same residency status, degree program, course load, course level, |
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tuition exemption status, and other circumstances affecting the |
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tuition charged to the student. |
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(k) Not later than January 31 of each year, or as soon |
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thereafter as practicable, the Legislative Budget Board shall |
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publish and certify to the governing board of each institution to |
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which this section applies the inflation rate to be used for |
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purposes of this section for the next academic year. The inflation |
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rate is the percentage increase, if any, as expressed in decimal |
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form rounded to the nearest thousandth of one percent, in the |
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consumer price index, as defined by Section 341.201, Finance Code, |
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for the preceding calendar year as compared to the consumer price |
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index for the year preceding that year. |
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(l) The coordinating board, using the negotiated rulemaking |
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procedures under Chapter 2008, Government Code, by rule shall |
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establish an exception to the application of Subsection (h) for an |
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institution to which that subsection would otherwise apply for an |
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academic year in the event of a natural disaster or other |
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extraordinary circumstance affecting the institution's achievement |
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on performance measures. In an academic year for which an |
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institution is granted an exception under this subsection, |
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Subsection (i) applies to the institution. |
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Sec. 54.05132. TEMPORARY LIMITATION ON TOTAL AMOUNT OF |
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TUITION. (a) In this section: |
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(1) "General academic teaching institution" and |
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"public state college" have the meanings assigned by Section |
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61.003. |
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(2) "Tuition" includes: |
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(A) tuition for which the rates are prescribed by |
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this chapter; and |
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(B) tuition charged by an institution of higher |
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education under Section 54.0513 or another law authorizing an |
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institution to establish tuition rates. |
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(b) Notwithstanding Section 54.0513, the total amount of |
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tuition charged by a general academic teaching institution other |
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than a public state college to a student for the 2018-2019 or |
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2019-2020 academic year may not exceed by more than one percent the |
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total amount of tuition that the institution would have charged |
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under this chapter to a similarly situated student for the |
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preceding academic year, as that amount is adjusted for each |
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academic year for inflation as determined under Subsection (c). |
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For purposes of this subsection, students are similarly situated if |
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they share the same residency status, degree program, course load, |
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course level, tuition exemption status, and other circumstances |
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affecting the tuition charged to the student. This subsection does |
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not ensure that the total amount of tuition charged to an individual |
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student does not increase based on a change in the student's |
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residency status, degree program, course load, course level, |
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tuition exemption status, or other circumstance affecting the |
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tuition charged to the student. |
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(c) Not later than January 31 of each year, or as soon |
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thereafter as practicable, the Legislative Budget Board shall |
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publish and certify to the governing board of each institution to |
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which this section applies the inflation rate to be used for |
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purposes of this section for the next academic year. The inflation |
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rate is the percentage increase, if any, as expressed in decimal |
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form rounded to the nearest thousandth of one percent, in the |
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consumer price index, as defined by Section 341.201, Finance Code, |
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for the preceding calendar year as compared to the consumer price |
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index for the year preceding that year. |
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(d) This section expires September 1, 2020. |
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SECTION 2. Section 54.05131, Education Code, as added by |
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this Act, applies beginning with tuition charged by a general |
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academic teaching institution to which that section applies for the |
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2020-2021 academic year. |
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SECTION 3. This Act takes effect September 1, 2017. |