Texas 2017 - 85th Regular

Texas Senate Bill SB19 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Seliger, Nelson S.B. No. 19
2		-	(In the Senate - Filed January 19, 2017; January 24, 2017,
3		-	read first time and referred to Committee on Higher Education;
4		-	March 28, 2017, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 6, Nays 1; March 28, 2017,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 19 By: Seliger
9	2
10	3
11	4		A BILL TO BE ENTITLED
12	5		AN ACT
13	6		relating to performance-based tuition limitations for and a
14	7		temporary limitation on the amount of tuition and fees charged by
15	8		certain public institutions of higher education.
16	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	10		SECTION 1. Subchapter B, Chapter 54, Education Code, is
18	11		amended by adding Sections 54.05131 and 54.0514 to read as follows:
19	12		Sec. 54.05131. PERFORMANCE-BASED DESIGNATED TUITION
20	13		LIMITATIONS. (a) In this section:
21	14		(1) "Administrative costs" means the percentage of an
22	15		institution's operating budget expended on institutional expenses,
23	16		as designated in an institution's annual financial reports in the
24	17		subcategories of executive management, fiscal operations, general
25	18		administrative and logistical services, administrative computing
26	19		support, and public relations/development.
27	20		(2) "Coordinating board" means the Texas Higher
28	21		Education Coordinating Board.
29	22		(3) "General academic teaching institution" and
30	23		"public state college" have the meanings assigned by Section
31	24		61.003.
32	25		(4) "Performance measure" means a performance measure
33	26		defined by coordinating board rule under Subsection (b).
34	27		(b) The coordinating board, using the negotiated rulemaking
35	28		procedures under Chapter 2008, Government Code, shall define the
36	29		following performance measures to be used for purposes of this
37	30		section:
38	31		(1) the total number of undergraduate degrees awarded
39	32		by the institution;
40	33		(2) the total number of undergraduate degrees awarded
41	34		by the institution, adjusted by the institution's six-year
42	35		graduation rate under Subdivision (10);
43	36		(3) the total number of undergraduate degrees awarded
44	37		by the institution per 100 undergraduate full-time student
45	38		equivalents;
46	39		(4) the total number of undergraduate degrees awarded
47	40		by the institution to at-risk students;
48	41		(5) the total number of undergraduate students at the
49	42		institution having successfully completed at least 25 percent of
50	43		the student's degree requirements or having earned at least 30
51	44		credit hours toward a 120-credit-hour degree;
52	45		(6) the total number of undergraduate students at the
53	46		institution having successfully completed at least 50 percent of
54	47		the student's degree requirements or having earned at least 60
55	48		credit hours toward a 120-credit-hour degree;
56	49		(7) the total number of undergraduate students at the
57	50		institution having successfully completed at least 75 percent of
58	51		the student's degree requirements or having earned at least 90
59	52		credit hours toward a 120-credit-hour degree;
60	53		(8) the average length of a student's enrollment, by
61	54		number of semesters, for undergraduate degree completion;
62	55		(9) the four-year graduation rate of first-time,
63	56		full-time, bachelor's degree-seeking students who enrolled in at
64	57		least 12 semester credit hours in the student's first fall semester
65	58		at the institution and who graduated from the institution or from
66	59		any other institution of higher education or private or independent
67	60		institution of higher education;
68	61		(10) the six-year graduation rate of first-time,
69	62		full-time, bachelor's degree-seeking students who enrolled in at
70	63		least 12 semester credit hours in the student's first fall semester
71	64		at the institution and who graduated from the institution or from
72	65		any other institution of higher education or private or independent
73	66		institution of higher education; and
74	67		(11) the institution's administrative costs.
75	68		(c) This section applies only to a general academic teaching
76	69		institution other than a public state college.
77	70		(d) Not later than November 1 of each even-numbered year,
78	71		the coordinating board shall:
79	72		(1) in consultation with the president of each
80	73		institution to which this section applies, establish a target level
81	74		for each performance measure applicable to the institution for each
82	75		of the two next academic years to encourage the institution to
83	76		achieve reasonable incremental progress toward appropriate
84	77		long-term goals for performance in each performance measure, taking
85	78		into account the mission, resources, and circumstances of the
86	79		particular institution; and
87	80		(2) submit to the standing committee of each house of
88	81		the legislature with primary jurisdiction over higher education and
89	82		to each institution to which this section applies a report that
90	83		includes the target levels established by the coordinating board
91	84		under Subdivision (1) for each institution.
92	85		(e) The coordinating board, using the negotiated rulemaking
93	86		procedures under Chapter 2008, Government Code, by rule shall
94	87		develop standards to be considered by the coordinating board in
95	88		establishing an institution's target levels for performance
96	89		measures under Subsection (d). In developing the standards, the
97	90		negotiated rulemaking committee established for purposes of this
98	91		subsection and the coordinating board shall consider institutional
99	92		improvement on target levels. The coordinating board shall
100	93		reconvene the negotiated rulemaking committee to assist the
101	94		coordinating board whenever the coordinating board modifies or
102	95		updates the standards.
103	96		(f) In adopting rules under this section, the coordinating
104	97		board shall prescribe any necessary adjustments or exceptions for
105	98		institutions that offer only upper-division courses and to which
106	99		certain performance measures prescribed by Subsection (b) do not
107	100		apply.
108	101		(g) As soon as practicable after each academic year, the
109	102		coordinating board shall determine whether an institution has
110	103		achieved the applicable target levels for that academic year.
111	104		Using the negotiated rulemaking procedures under Chapter 2008,
112	105		Government Code, the coordinating board by rule shall establish the
113	106		process by which an institution's achievement on a performance
114	107		measure is submitted to and verified by the coordinating board.
115	108		(h) After the coordinating board makes a determination for
116	109		an institution under Subsection (g), the coordinating board shall
117	110		notify the governing board of the institution that Subsection (i)
118	111		or (j), as applicable, applies to the tuition charged by the
119	112		institution for the second academic year following the academic
120	113		year for which the determination is made and of the limitation
121	114		prescribed by the applicable subsection on the amount of tuition
122	115		that may be charged by the institution for that academic year.
123	116		(i) This subsection applies to tuition charged for an
124	117		academic year by an institution to which this section applies only
125	118		if the institution did not achieve, in the second academic year
126	119		preceding that academic year, the target level assigned by the
127	120		coordinating board for the administrative costs performance
128	121		measure as applicable to the institution for that preceding
129	122		academic year and a majority of the target levels assigned to the
130	123		remaining performance measures by the coordinating board as
131	124		applicable to the institution for that preceding academic year.
132	125		For an academic year in which this subsection applies to the tuition
133	126		charged by an institution, unless the institution has been granted
134	127		an exception under Subsection (m) for that year, the amount of
135	128		tuition the governing board of the institution charges under
136	129		Section 54.0513 to a student for that academic year may not exceed
137	130		the total amount of tuition that the governing board would have
138	131		charged under that section to a similarly situated student in the
139	132		preceding academic year, as that amount is adjusted for each
140	133		academic year for inflation as determined under Subsection (l).
141	134		The governing board may not increase the amount of tuition charged
142	135		under this subsection to a student more than once in any academic
143	136		year.
144	137		(j) This subsection applies to tuition charged for an
145	138		academic year by an institution to which this section applies only
146	139		if the institution achieved, in the second academic year preceding
147	140		that academic year, the target level assigned by the coordinating
148	141		board for the administrative costs performance measure as
149	142		applicable to the institution for that preceding academic year and
150	143		a majority of the target levels assigned to the remaining
151	144		performance measures by the coordinating board as applicable to the
152	145		institution for that preceding academic year. For an academic year
153	146		in which this subsection applies to the tuition charged by an
154	147		institution, the amount of tuition the governing board of the
155	148		institution charges under Section 54.0513 to a student for that
156		-	academic year may not exceed by more than ~~three~~ percent the total
	149	+	academic year may not exceed by more than one percent the total
157	150		amount of tuition that the governing board would have charged under
158	151		that section to a similarly situated student in the preceding
159	152		academic year, as that amount is adjusted for each academic year for
160	153		inflation as determined under Subsection (l). The governing board
161	154		may not increase the amount of tuition charged under this
162	155		subsection to a student more than once in any academic year.
163	156		(k) For purposes of this section:
164	157		(1) an institution is considered to have achieved a
165	158		target level assigned to a performance measure if the institution
166	159		has achieved at least 98 percent of the target level; and
167	160		(2) students are similarly situated if they share the
168	161		same residency status, degree program, course load, course level,
169	162		tuition exemption status, and other circumstances affecting the
170	163		tuition charged to the student.
171	164		(l) Not later than August 31 of each year, or as soon
172	165		thereafter as practicable, the Legislative Budget Board shall
173	166		publish and certify to the governing board of each institution to
174	167		which this section applies the inflation rate to be used for
175	168		purposes of this section for the next academic year. The inflation
176	169		rate is the percentage increase, if any, as expressed in decimal
177	170		form rounded to the nearest thousandth of one percent, in the
178	171		consumer price index, as defined by Section 341.201, Finance Code,
179	172		for the preceding 12-month period as compared to the consumer price
180	173		index for the 12-month period preceding that period.
181	174		(m) The coordinating board, using the negotiated rulemaking
182	175		procedures under Chapter 2008, Government Code, by rule shall
183	176		establish an exception to the application of Subsection (i) for an
184	177		institution to which that subsection would otherwise apply for an
185	178		academic year in the event of a natural disaster or other
186	179		extraordinary circumstance affecting the institution's achievement
187	180		on performance measures. In an academic year for which an
188	181		institution is granted an exception under this subsection,
189	182		Subsection (j) applies to the institution.
190	183		Sec. 54.0514. TEMPORARY LIMITATION ON TOTAL AMOUNT OF
191	184		TUITION. (a) In this section:
192	185		(1) "General academic teaching institution" has the
193	186		meaning assigned by Section 61.003.
194	187		(2) "Tuition" includes:
195	188		(A) tuition for which the rates are prescribed by
196	189		this chapter; and
197	190		(B) tuition charged by a general academic
198	191		teaching institution under Section 54.0513 or another law
199	192		authorizing an institution to establish tuition rates.
200	193		(b) Notwithstanding Section 54.0513 or another law
201	194		authorizing an institution to establish tuition rates, the total
202	195		amount of tuition charged by a general academic teaching
203	196		institution to a student for the 2018-2019 or 2019-2020 academic
204	197		year may not exceed the total amount of tuition that the institution
205	198		would have charged under this chapter to a similarly situated
206	199		student for the 2016-2017 academic year.
207	200		(c) For purposes of this section, students are similarly
208	201		situated if they share the same residency status, degree program,
209	202		course load, course level, tuition exemption status, and other
210	203		circumstances affecting the tuition charged to the student.
211	204		(d) This section does not ensure that the total amount of
212	205		tuition charged to an individual student does not increase based on
213	206		a change in the student's residency status, degree program, course
214	207		load, course level, tuition exemption status, or other circumstance
215	208		affecting the tuition charged to the student.
216	209		(e) The Texas Higher Education Coordinating Board may adopt
217	210		rules as necessary to administer this section.
218	211		(f) This section expires August 31, 2020.
219	212		SECTION 2. Subchapter E, Chapter 54, Education Code, is
220	213		amended by adding Section 54.5001 to read as follows:
221	214		Sec. 54.5001. TEMPORARY LIMITATIONS ON FEE INCREASES.
222	215		(a) In this section, "general academic teaching institution" has
223	216		the meaning assigned by Section 61.003.
224	217		(b) Notwithstanding any other provision of this subchapter
225	218		or other law, in each of the 2018-2019 and 2019-2020 academic years,
226	219		the governing board of a general academic teaching institution may
227	220		not charge a fee under this subchapter in an amount that is greater
228	221		than the amount of the fee charged by the institution in the
229	222		2016-2017 academic year.
230	223		(c) The limitation provided by this section applies to a fee
231	224		even if an increase in the amount of the fee is approved by a vote of
232	225		the students, student government, or student fee advisory committee
233	226		of the general academic teaching institution.
234	227		(d) This section expires August 31, 2020.
235	228		SECTION 3. Section 54.05131, Education Code, as added by
236	229		this Act, applies beginning with tuition charged by a general
237	230		academic teaching institution to which that section applies for the
238	231		2020-2021 academic year.
239	232		SECTION 4. This Act takes effect immediately if it receives
240	233		a vote of two-thirds of all the members elected to each house, as
241	234		provided by Section 39, Article III, Texas Constitution. If this
242	235		Act does not receive the vote necessary for immediate effect, this
243	236		Act takes effect September 1, 2017.
244		-	* * * * *