89R5381 CMO-D
By: Meza H.B. No. 299
A BILL TO BE ENTITLED
AN ACT
relating to a study by the Legislative Budget Board concerning the
long-term effects of regulating tuition rates and amounts charged
by public institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 322, Government Code, is amended by
adding Section 322.0166 to read as follows:
Sec. 322.0166. STUDY CONCERNING REGULATION OF TUITION. (a)
In this section, "institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
(b) The board shall conduct a study to examine the long-term
costs, benefits, and other effects of any legislative action that
may be taken to regulate the rates and amounts of tuition charged by
institutions of higher education, including by repealing the
statutory authority of those institutions to establish tuition
rates as they determine appropriate. The study may explore all
topics relevant to the matter, but in assessing the effects of
regulation, the study must strive to strike a balance between
promoting the affordability and accessibility of higher education
in this state and the institutions' need for sufficient revenue to
maintain educational quality for students and competitiveness with
other institutions outside this state. In the study, the board
shall:
(1) recommend to the legislature an appropriate rate
or rates of tuition for institutions of higher education compared
to the rates currently established by the institutions;
(2) evaluate the potential effects of regulating
tuition rates and amounts on student access to higher education
opportunities in this state, including the effect on enrollment by
disadvantaged or underrepresented Texans, and the potential
effects on affordability, student financial aid, and student loan
debt;
(3) estimate the potential loss or gain of funding or
revenue by the institutions as a result of any repeal of the
existing statutory authority of those institutions to establish
tuition rates; and
(4) if the board projects that regulating tuition
rates and amounts would result in a loss of revenue under
Subdivision (3):
(A) identify any sources of funding or revenue,
such as institutional endowments, that would be available or
necessary to offset the projected decrease in revenue; and
(B) recommend a specific portion or amount of
endowment money that could be used to offset the reduced tuition
revenues.
(c) Not later than December 1, 2026, the board shall submit
to the governor, the lieutenant governor, the speaker of the house
of representatives, and the presiding officer of each standing
legislative committee having jurisdiction over higher education or
state appropriations a report on the results of the study and the
board's recommendations for legislative or other action.
(d) This section expires September 1, 2027.
SECTION 2. 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, 2025.