89R7952 MM-D
By: Middleton, Schwertner S.B. No. 1798
A BILL TO BE ENTITLED
AN ACT
relating to the resident status, tuition rates, and certain
financial support for students enrolled at public institutions of
higher education, including students not lawfully present in the
United States.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter G, Chapter 51, Education Code, is
amended by adding Section 51.3526 to read as follows:
Sec. 51.3526. RESPONSIBILITY OF GOVERNING BOARDS REGARDING
CERTAIN FINANCIAL SUPPORT PROVIDED TO PERSONS NOT LAWFULLY PRESENT.
(a) The governing board of an institution of higher education shall
ensure that each unit of the institution does not award or provide
to a person who is not authorized under federal statute to be
present in the United States any financial support using money
appropriated or otherwise provided by the state to the institution
or unit, including a scholarship, grant, or other financial aid.
(b) An institution of higher education may not spend money
appropriated to the institution for a state fiscal year until the
governing board of the institution submits to the legislature and
the Texas Higher Education Coordinating Board a report certifying
the board's compliance with this section during the preceding state
fiscal year.
(c) In the interim between each regular session of the
legislature, the governing board of each institution of higher
education, or the board's designee, shall testify before the
standing legislative committees with primary jurisdiction over
higher education at a public hearing of the committee regarding the
board's compliance with this section.
(d) The state auditor shall periodically conduct a
compliance audit of each institution of higher education to
determine whether the institution has spent state money in
violation of this section. The state auditor shall adopt a schedule
by which the state auditor will conduct compliance audits under
this subsection. The schedule must ensure that each institution of
higher education is audited at least once during each four-year
period.
(e) If the state auditor determines pursuant to a compliance
audit conducted under Subsection (d) that an institution of higher
education has spent state money in violation of this section, the
institution:
(1) must cure the violation not later than the 180th
day after the date on which the determination is made; and
(2) if the institution fails to cure the violation
during the period described by Subdivision (1), is ineligible to
receive formula funding increases, institutional enhancements, or
exceptional items during the state fiscal biennium immediately
following the state fiscal biennium in which the determination is
made.
SECTION 2. Section 54.052, Education Code, is amended to
read as follows:
Sec. 54.052. DETERMINATION OF RESIDENT STATUS. (a)
Subject to the other applicable provisions of this subchapter
governing the determination of resident status, the following
persons are considered residents of this state for purposes of this
title:
(1) a person who:
(A) established a domicile in this state not
later than one year before the census date of the academic term in
which the person is enrolled in an institution of higher education;
and
(B) maintained that domicile continuously for
the year preceding that census date; and
(2) a dependent whose parent:
(A) established a domicile in this state not
later than one year before the census date of the academic term in
which the dependent is enrolled in an institution of higher
education; and
(B) maintained that domicile continuously for
the year preceding that census date[; and
[(3) a person who:
[(A) graduated from a public or private high
school in this state or received the equivalent of a high school
diploma in this state; and
[(B) maintained a residence continuously in this
state for:
[(i) the three years preceding the date of
graduation or receipt of the diploma equivalent, as applicable; and
[(ii) the year preceding the census date of
the academic term in which the person is enrolled in an institution
of higher education].
(b) For purposes of this section, the domicile of a
dependent's parent is presumed to be the domicile of the dependent
[unless the person establishes eligibility for resident status
under Subsection (a)(3)].
(c) A person who is not authorized under federal statute to
be present in the United States may not be considered a resident of
this state for purposes of this title.
SECTION 3. Section 54.053, Education Code, is amended to
read as follows:
Sec. 54.053. INFORMATION REQUIRED TO ESTABLISH RESIDENT
STATUS. A person shall submit the following information to an
institution of higher education to establish resident status under
this subchapter:
(1) if the person applies for resident status under
Section 54.052(a)(1):
(A) a statement of the dates and length of time
the person has resided in this state, as relevant to establish
resident status under this subchapter; and
(B) a statement by the person that the person's
presence in this state for that period was for a purpose of
establishing and maintaining a domicile; or
(2) if the person applies for resident status under
Section 54.052(a)(2):
(A) a statement of the dates and length of time
any parent of the person has resided in this state, as relevant to
establish resident status under this subchapter; and
(B) a statement by the parent or, if the parent is
unable or unwilling to provide the statement, a statement by the
person that the parent's presence in this state for that period was
for a purpose of establishing and maintaining a domicile[; or
[(3) if the person applies for resident status under
Section 54.052(a)(3):
[(A) a statement of the dates and length of time
the person has resided in this state, as relevant to establish
resident status under this subchapter; and
[(B) if the person is not a citizen or permanent
resident of the United States, an affidavit stating that the person
will apply to become a permanent resident of the United States as
soon as the person becomes eligible to apply].
SECTION 4. Section 54.055(a), Education Code, is amended to
read as follows:
(a) As appropriate based on [On the basis of] additional or
changed information affecting the determination of the person's
status, an institution of higher education shall [may] reclassify
as a resident or nonresident of this state under this subchapter a
person who has previously been classified as a resident or
nonresident under this subchapter.
SECTION 5. Section 54.056(a), Education Code, is amended to
read as follows:
(a) If an institution of higher education erroneously
classifies or misclassifies a person as a resident of this state and
the person is not entitled or permitted to pay resident tuition
under this subchapter, the institution of higher education shall
charge nonresident tuition to the person beginning with the first
academic term that begins after the date the institution discovers
the error. Not earlier than the first day of that term, regardless
of whether the person is still enrolled at the institution, the
institution shall [may] request the person to pay the difference
between resident and nonresident tuition for an earlier term as
permitted by Section 54.057. For nonpayment of the amount owed, the
institution may impose sanctions only as provided by that section.
The institution may not require payment as a condition for any
subsequent enrollment by the person in the institution.
SECTION 6. Section 54.057, Education Code, is amended to
read as follows:
Sec. 54.057. LIABILITY FOR UNPAID NONRESIDENT TUITION. (a)
The following persons are liable to the institution of higher
education the person attends for the difference between resident
and nonresident tuition for each academic term in which the person
pays resident tuition to the institution as the result of an
erroneous classification or other misclassification under this
subchapter:
(1) a person who, in a timely manner after the
information becomes available or on request by the institution of
higher education, fails to provide to the institution information
that the person reasonably should know would be relevant to an
accurate classification by the institution under this subchapter;
[or]
(2) a person who provides false information to the
institution that the person reasonably should know could lead to an
erroneous classification by the institution under this subchapter;
or
(3) a person who is not authorized under federal
statute to be present in the United States.
(b) A [The] person who is liable under this section for the
difference between resident and nonresident tuition shall pay the
applicable amount to the institution not later than the 30th day
after the date the person is notified of the person's liability for
the amount owed. After receiving the notice and until the amount is
paid in full, the person is not entitled to receive from the
institution a certificate or diploma, if not yet awarded on the date
of the notice, or official transcript that is based at least
partially on or includes credit for courses taken while the person
was erroneously classified or misclassified as a resident of this
state.
(c) A person who is erroneously classified or misclassified
as a resident of this state under this subchapter but who is
entitled or permitted to pay resident tuition under this subchapter
is not liable for the difference between resident and nonresident
tuition under this section.
SECTION 7. Section 54.0601, Education Code, is amended to
read as follows:
Sec. 54.0601. NONRESIDENT TUITION RATES AT CERTAIN
INSTITUTIONS. (a) On the written request of the governing board of
a general academic teaching institution located not more than 100
miles from the boundary of this state with another state, the Texas
Higher Education Coordinating Board may set a nonresident tuition
rate that is lower than the nonresident tuition rate otherwise
provided by this chapter if the coordinating board determines that
the lower rate is in the best interest of the institution and will
not cause unreasonable harm to any other institution of higher
education.
(b) A person who is not authorized under federal statute to
be present in the United States is not eligible for the nonresident
tuition rate authorized by Subsection (a).
SECTION 8. (a) Except as provided by Subsection (b) of this
section, Section 51.3526, Education Code, as added by this Act,
applies beginning with the 2025-2026 academic year.
(b) Section 51.3526(b), Education Code, as added by this
Act, applies beginning with money appropriated to a public
institution of higher education for the state fiscal year beginning
September 1, 2026.
SECTION 9. Notwithstanding Subchapter B, Chapter 54,
Education Code, as amended by this Act, a public institution of
higher education in this state may, for any semester or academic
term, before the beginning of that semester or academic term,
reclassify as a nonresident a student previously classified as a
resident of this state by the institution or another public
institution of higher education in this state:
(1) under Section 54.052(a)(3), Education Code, as
that section existed before amendment by this Act, if the student is
not otherwise eligible to be classified as a resident of this state
under Subchapter B, Chapter 54, Education Code; or
(2) before the enactment of Section 54.052(c),
Education Code, as added by this Act, if the student is not
authorized under federal statute to be present in the United
States.
SECTION 10. The changes in law made by this Act to Chapter
54, Education Code, apply beginning with tuition charged by a
public institution of higher education for the 2025 fall semester.
Tuition charged by a public institution of higher education for an
academic period before that semester is governed by the law in
effect immediately before the effective date of this Act, and that
law is continued in effect for that purpose.
SECTION 11. 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.