81R820 CAS-D By: Dutton H.B. No. 898 A BILL TO BE ENTITLED AN ACT relating to limiting the tuition rates that certain public institutions of higher education may charge to resident students. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 54.0513, Education Code, is amended by amending Subsections (a) and (b) and adding Subsections (b-1) and (b-2) to read as follows: (a) 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, under the terms the governing board considers appropriate and subject to Subsection (b), may charge any student an amount designated as tuition that the governing board considers necessary for the effective operation of the institution. (b) A governing board may set a different tuition rate for each program and course level offered by each institution of higher education, except that for a program or course level for an academic year a governing board may not set a resident tuition rate under this section that, when combined with any other amount of tuition the governing board charges under the other provisions of this chapter, exceeds the rate determined by the Texas Higher Education Coordinating Board to be the national average tuition rate for that type of program or course level that public senior colleges and universities of states other than this state charge to similarly situated students who pay resident tuition. In determining a national average tuition rate for a program or course level under this subsection, the coordinating board shall use the resident tuition rates in effect at appropriate institutions of other states for the academic year in progress when the board makes the determination and may use resident tuition rates from not fewer than five states to the extent that the board determines that those rates would fairly represent the national average tuition rate for the program or course level. The coordinating board shall determine the national average tuition rates to be used by governing boards to set resident tuition rates for an academic year and shall report those national rates to each appropriate institution in this state not later than January 1 of the calendar year in which that academic year begins, or as soon after that January 1 as practicable. The coordinating board may adopt rules as necessary to administer this subsection. (b-1) For purposes of Subsection (b), 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 the student. (b-2) Except as provided by Subsection (b), a [A] governing board may set a different tuition rate under this section as the governing board considers appropriate to increase graduation rates, encourage efficient use of facilities, or enhance employee performance. SECTION 2. The changes in law made by this Act apply beginning with tuition charged by a public institution of higher education for the 2010-2011 academic year. Tuition charged by a public institution of higher education for an academic year before that academic year is covered by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 3. 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.