89R8121 RDR-F
By: Blanco S.B. No. 915
A BILL TO BE ENTITLED
AN ACT
relating to a limitation on the amount of tuition charged by public
institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 54, Education Code, is
amended by adding Section 54.0514 to read as follows:
Sec. 54.0514. LIMITATION ON TOTAL AMOUNT OF TUITION. (a)
In this section, "tuition" includes:
(1) tuition for which the rates are prescribed by this
chapter; and
(2) tuition charged by an institution of higher
education under Section 54.0513 or another law authorizing an
institution to establish tuition rates.
(b) Beginning with the 2026-2027 academic year, the total
amount of tuition charged by an institution of higher education to a
student for an academic year may not exceed the total amount of
tuition that the institution would have charged under this chapter
to a similarly situated student for the 2025-2026 academic year.
This subsection does not apply to tuition for an academic year after
the 2029-2030 academic year and expires September 1, 2030.
(c) The total amount of tuition charged by an institution of
higher education to a student for the 2030-2031 or a later academic
year may not exceed the total amount of tuition that the institution
would have charged under this chapter to a similarly situated
student of the institution for the preceding academic year, based
on the tuition rates in effect for that academic year, as that
amount is adjusted for inflation according to the inflation rate
determined under Subsection (d). The institution may not increase
the amount of tuition charged under this section to a student more
than once in any academic year.
(d) Not later than January 31 of each year beginning
January 31, 2030, or as soon thereafter as practicable, the
Legislative Budget Board shall publish and certify to the governing
board of each institution of higher education the inflation rate to
be used for purposes of this section for the next academic year.
The inflation rate is the percentage increase, if any, as expressed
in decimal form rounded to the nearest thousandth of one percent, in
the consumer price index, as defined by Section 341.201, Finance
Code, for the preceding calendar year as compared to the consumer
price index for the calendar year preceding that calendar year.
(e) For purposes of this section, 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.
(f) This section does not ensure that the total amount of
tuition charged to an individual student does not increase based on
a change in the student's residency status, degree program, course
load, course level, tuition exemption status, or other circumstance
affecting the tuition charged to the student.
(g) The Texas Higher Education Coordinating Board may adopt
rules as necessary to administer this section.
SECTION 2. Sections 54.0513(a) and (b), Education Code, are
amended 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,] may
charge any student an amount designated as tuition, not to exceed
the amount that enables the institution to comply with Section
54.0514, that the governing board considers necessary for the
effective operation of the institution.
(b) Subject to the limit provided by Subsection (a) on the
amount designated as tuition charged under this section, a [A]
governing board may set a different tuition rate under this section
for each program and course level offered by each institution of
higher education[. A governing board may set a different tuition
rate] as the governing board considers appropriate to increase
graduation rates, encourage efficient use of facilities, or enhance
employee performance.
SECTION 3. Sections 54.0515(e) and (f), Education Code, are
amended to read as follows:
(e) It is the legislature's intent that each institution of
higher education[, as a condition to tuition deregulation under
Section 54.0513,] reasonably implement the following:
(1) each institution shall make satisfactory progress
towards the goals provided in its master plan for higher education
and in "Closing the Gaps," the state's master plan for higher
education, or a successor state master plan; and
(2) each institution shall meet acceptable
performance criteria, including measures such as graduation rates,
retention rates, enrollment growth, educational quality, efforts
to enhance minority participation, opportunities for financial
aid, and affordability.
(f) The committee shall:
(1) meet at the call of either chair;
(2) monitor and regularly report to the legislature on
each institution of higher education's compliance with the
requirements of Subsection (e); and
(3) receive and review information concerning the
affordability and accessibility of higher education[, including
the impact of tuition deregulation].
SECTION 4. This Act applies beginning with tuition charged
by public institutions of higher education for the 2026 fall
semester. Tuition charged by an institution of higher education in
an academic period before that semester is governed by the law in
effect before the effective date of this Act, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect January 1, 2026.