81R14522 KSD-D By: Branch H.B. No. 4222 A BILL TO BE ENTITLED AN ACT relating to limitations on increases in designated tuition charged by general academic teaching institutions and a biennial report to the legislature regarding the operational costs of those institutions. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 54.0513, Education Code, is amended by adding Subsections (g), (g-1), (g-2), (h), (i), (j), and (k) to read as follows: (g) Except as provided by Subsection (j), the amount of tuition the governing board of a general academic teaching institution charges under this section to a student for an academic year may not exceed the total amount of tuition that the governing board would have charged under this section to a similarly situated student in the preceding academic year by more than the greater of: (1) 3.95 percent; or (2) $280. (g-1) Notwithstanding Subsection (g), for the 2010-2011 academic year, the amount of tuition the governing board of a general academic teaching institution charges under this section to a student may not exceed the total amount of tuition that the governing board would have charged under this section to a similarly situated student in the 2008-2009 academic year by more than the greater of: (1) 3.95 percent; or (2) $280. (g-2) Subsection (j) applies to Subsection (g-1) in the same manner as Subsection (j) applies to Subsection (g). This subsection and Subsection (g-1) expire September 1, 2011. (h) For purposes of Subsection (g), 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 a student. (i) Subsection (g) does not ensure that the designated tuition charged to an individual student will not increase by more than the limitation prescribed by that subsection based on a change in the student's residency status, degree program, course load, course level, tuition exemption status, or other circumstance affecting the amount of tuition charged to the student. (j) The Texas Higher Education Coordinating Board shall adopt rules authorizing a general academic teaching institution to increase the amount of designated tuition charged to students by more than the limitation prescribed by Subsection (g) in the event of an emergency, as defined by the coordinating board for purposes of this subsection. (k) In this section, "general academic teaching institution" has the meaning assigned by Section 61.003. SECTION 2. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.973 to read as follows: Sec. 51.973. BIENNIAL REPORT BY LEGISLATIVE BUDGET BOARD REGARDING UNIVERSITY CORE OPERATIONAL COSTS. Not later than December 1 of each even-numbered year, the Legislative Budget Board shall submit to the senate finance committee, the house appropriations committee, and the standing committee of each house with primary jurisdiction over higher education, for consideration by the members of those committees in determining the amount of general revenue appropriations to general academic teaching institutions and tuition rates at those institutions, a report that includes: (1) each general academic teaching institution's actual core operational costs for the current state fiscal biennium according to the institution's most recent annual financial reports; and (2) the Legislative Budget Board's estimate of the core operational costs for the next state fiscal biennium for each general academic teaching institution, based on a methodology that: (A) projects for each year of the next biennium: (i) changes in student enrollment for each institution; and (ii) a rate of inflation; and (B) uses data from each institution's annual financial report regarding costs for instruction, academic support, institutional support, operations and maintenance of physical plants, and student services. SECTION 3. Section 54.0513, Education Code, as amended by this Act, applies beginning with tuition charged by a general academic teaching institution for the 2010-2011 academic year. Tuition charged by a general academic teaching institution in an academic year before that academic year is covered by the law in effect before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 4. The Texas Higher Education Coordinating Board shall adopt the rules required by Section 54.0513(j), Education Code, as added by this Act, as soon as practicable after this Act takes effect. SECTION 5. 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, 2009.