89R16389 RDR-D By: Morales of Harris H.B. No. 3959 A BILL TO BE ENTITLED AN ACT relating to tuition and fee exemptions at a public institution of higher education or a career school or college for a student meeting certain income and grade requirements. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 54, Education Code, is amended by adding Section 54.204 to read as follows: Sec. 54.204. EXEMPTION FOR STUDENTS MEETING CERTAIN INCOME AND GRADE REQUIREMENTS. (a) The governing board of an institution of higher education shall exempt from the payment of tuition and required fees charged by the institution an undergraduate student who: (1) is a resident of this state; (2) is a member of a household with a total annual income below $100,000; and (3) maintains an overall grade point average of at least 3.0 on a four-point scale or the equivalent for all coursework attempted at the institution. (b) The Texas Higher Education Coordinating Board shall adopt rules governing the granting or denial of an exemption under this section, including rules relating to the determination of a student's eligibility for an exemption. SECTION 2. Subchapter C, Chapter 132, Education Code, is amended by adding Section 132.0612 to read as follows: Sec. 132.0612. TUITION EXEMPTION FOR STUDENTS MEETING CERTAIN INCOME AND GRADE REQUIREMENTS. As a condition to receiving a certificate of approval under this chapter, including renewal of a certificate of approval, a career school or college must provide an exemption from the payment of tuition and required fees charged by the school for a course or program, as applicable, to a student who is exempt from the payment of tuition and fees at a public institution of higher education as provided by Section 54.204. SECTION 3. (a) The Texas Higher Education Coordinating Board shall adopt the rules required by Section 54.204, Education Code, as added by this Act, as soon as practicable after the effective date of this Act. (b) Section 54.204, Education Code, as added by this Act, applies beginning with tuition and required fees charged for the 2025 fall semester. Tuition and required fees charged for an academic period before that semester are governed 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 4. Section 132.0612, Education Code, as added by this Act, applies to a certificate of approval issued or renewed under Chapter 132, Education Code, on or after the effective date of this Act. 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, 2025.