Bill Text: TX SB543 | 2017-2018 | 85th Legislature | Comm Sub


Bill Title: Relating to performance-based tuition limitations for certain public institutions of higher education and a temporary tuition limitation for those institutions.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2017-03-29 - Co-author authorized [SB543 Detail]

Download: Texas-2017-SB543-Comm_Sub.html
 
 
  By: Seliger  S.B. No. 543
         (In the Senate - Filed January 19, 2017; February 8, 2017,
  read first time and referred to Committee on Higher Education;
  March 28, 2017, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 7, Nays 0; March 28, 2017,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 543 By:  Seliger
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to performance-based tuition limitations for certain
  public institutions of higher education and a temporary tuition
  limitation for those institutions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 54, Education Code, is
  amended by adding Sections 54.05131 and 54.05132 to read as
  follows:
         Sec. 54.05131.  PERFORMANCE-BASED DESIGNATED TUITION
  LIMITATIONS.  (a)  In this section:
               (1)  "Administrative costs" means the percentage of an
  institution's operating budget expended on institutional expenses,
  as designated in an institution's annual financial reports in the
  subcategories of executive management, fiscal operations, general
  administrative and logistical services, administrative computing
  support, and public relations/development.
               (2)  "Coordinating board" means the Texas Higher
  Education Coordinating Board.
               (3)  "General academic teaching institution" and
  "public state college" have the meanings assigned by Section
  61.003.
               (4)  "Performance measure" means a performance measure
  defined by coordinating board rule under Subsection (b).
         (b)  The coordinating board, using the negotiated rulemaking
  procedures under Chapter 2008, Government Code, shall define the
  following performance measures to be used for purposes of this
  section:
               (1)  the total number of undergraduate degrees awarded
  by the institution;
               (2)  the total number of undergraduate degrees awarded
  by the institution, adjusted by the institution's six-year
  graduation rate under Subdivision (10);
               (3)  the total number of undergraduate degrees awarded
  by the institution per 100 undergraduate full-time student
  equivalents;
               (4)  the total number of undergraduate degrees awarded
  by the institution to at-risk students;
               (5)  the total number of undergraduate students at the
  institution having successfully completed at least 25 percent of
  the student's degree requirements or having earned at least 30
  credit hours toward a 120-credit-hour degree;
               (6)  the total number of undergraduate students at the
  institution having successfully completed at least 50 percent of
  the student's degree requirements or having earned at least 60
  credit hours toward a 120-credit-hour degree;
               (7)  the total number of undergraduate students at the
  institution having successfully completed at least 75 percent of
  the student's degree requirements or having earned at least 90
  credit hours toward a 120-credit-hour degree;
               (8)  the average length of a student's enrollment, by
  number of semesters, for undergraduate degree completion;
               (9)  the four-year graduation rate of first-time,
  full-time, bachelor's degree-seeking students who enrolled in at
  least 12 semester credit hours in the student's first fall semester
  at the institution and who graduated from the institution or from
  any other institution of higher education or private or independent
  institution of higher education;
               (10)  the six-year graduation rate of first-time,
  full-time, bachelor's degree-seeking students who enrolled in at
  least 12 semester credit hours in the student's first fall semester
  at the institution and who graduated from the institution or from
  any other institution of higher education or private or independent
  institution of higher education; and
               (11)  the institution's administrative costs.
         (c)  This section applies only to a general academic teaching
  institution other than a public state college.
         (d)  Not later than November 1 of each even-numbered year,
  the coordinating board shall:
               (1)  in consultation with the president of each
  institution to which this section applies, establish a target level
  for each performance measure applicable to the institution for each
  of the two next academic years to encourage the institution to
  achieve reasonable incremental progress toward appropriate
  long-term goals for performance in each performance measure, taking
  into account the mission, resources, and circumstances of the
  particular institution; and
               (2)  submit to the standing committee of each house of
  the legislature with primary jurisdiction over higher education and
  to each institution to which this section applies a report that
  includes the target levels established by the coordinating board
  under Subdivision (1) for each institution.
         (e)  The coordinating board, using the negotiated rulemaking
  procedures under Chapter 2008, Government Code, by rule shall
  develop standards to be considered by the coordinating board in
  establishing an institution's target levels for performance
  measures under Subsection (d). In developing the standards, the
  negotiated rulemaking committee established for purposes of this
  subsection and the coordinating board shall consider institutional
  improvement on target levels. The coordinating board shall
  reconvene the negotiated rulemaking committee to assist the
  coordinating board whenever the coordinating board modifies or
  updates the standards.
         (f)  In adopting rules under this section, the coordinating
  board shall prescribe any necessary adjustments or exceptions for
  institutions that offer only upper-division courses and to which
  certain performance measures prescribed by Subsection (b) do not
  apply.
         (g)  As soon as practicable after each academic year, the
  coordinating board shall determine whether an institution has
  achieved the applicable target levels for that academic year.
  Using the negotiated rulemaking procedures under Chapter 2008,
  Government Code, the coordinating board by rule shall establish the
  process by which an institution's achievement on a performance
  measure is submitted to and verified by the coordinating board.
         (h)  After the coordinating board makes a determination for
  an institution under Subsection (g), the coordinating board shall
  notify the governing board of the institution that Subsection (i)
  or (j), as applicable, applies to the tuition charged by the
  institution for the second academic year following the academic
  year for which the determination is made and of the limitation
  prescribed by the applicable subsection on the amount of tuition
  that may be charged by the institution for that academic year.
         (i)  This subsection applies to tuition charged for an
  academic year by an institution to which this section applies only
  if the institution did not achieve, in the second academic year
  preceding that academic year, the target level assigned by the
  coordinating board for the administrative costs performance
  measure as applicable to the institution for that preceding
  academic year and a majority of the target levels assigned to the
  remaining performance measures by the coordinating board as
  applicable to the institution for that preceding academic year.
  For an academic year in which this subsection applies to the tuition
  charged by an institution, unless the institution has been granted
  an exception under Subsection (m) for that year, the amount of
  tuition the governing board of the institution charges under
  Section 54.0513 to a student for that academic year may not exceed
  the total amount of tuition that the governing board would have
  charged under that section to a similarly situated student in the
  preceding academic year, as that amount is adjusted for each
  academic year for inflation as determined under Subsection (l).
  The governing board may not increase the amount of tuition charged
  under this subsection to a student more than once in any academic
  year.
         (j)  This subsection applies to tuition charged for an
  academic year by an institution to which this section applies only
  if the institution achieved, in the second academic year preceding
  that academic year, the target level assigned by the coordinating
  board for the administrative costs performance measure as
  applicable to the institution for that preceding academic year and
  a majority of the target levels assigned to the remaining
  performance measures by the coordinating board as applicable to the
  institution for that preceding academic year. For an academic year
  in which this subsection applies to the tuition charged by an
  institution, the amount of tuition the governing board of the
  institution charges under Section 54.0513 to a student for that
  academic year may not exceed by more than three percent the total
  amount of tuition that the governing board would have charged under
  that section to a similarly situated student in the preceding
  academic year, as that amount is adjusted for each academic year for
  inflation as determined under Subsection (l). The governing board
  may not increase the amount of tuition charged under this
  subsection to a student more than once in any academic year.
         (k)  For purposes of this section:
               (1)  an institution is considered to have achieved a
  target level assigned to a performance measure if the institution
  has achieved at least 98 percent of the target level; and
               (2)  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.
         (l)  Not later than August 31 of each year, or as soon
  thereafter as practicable, the Legislative Budget Board shall
  publish and certify to the governing board of each institution to
  which this section applies 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 12-month period as compared to the consumer price
  index for the 12-month period preceding that period.
         (m)  The coordinating board, using the negotiated rulemaking
  procedures under Chapter 2008, Government Code, by rule shall
  establish an exception to the application of Subsection (i) for an
  institution to which that subsection would otherwise apply for an
  academic year in the event of a natural disaster or other
  extraordinary circumstance affecting the institution's achievement
  on performance measures.  In an academic year for which an
  institution is granted an exception under this subsection,
  Subsection (j) applies to the institution.
         Sec. 54.05132.  TEMPORARY LIMITATION ON TOTAL AMOUNT OF
  TUITION. (a)  In this section:
               (1)  "General academic teaching institution" and
  "public state college" have the meanings assigned by Section
  61.003.
               (2)  "Tuition" includes:
                     (A)  tuition for which the rates are prescribed by
  this chapter; and
                     (B)  tuition charged by an institution of higher
  education under Section 54.0513 or another law authorizing an
  institution to establish tuition rates.
         (b)  Notwithstanding Section 54.0513, the total amount of
  tuition charged by a general academic teaching institution other
  than a public state college to a student for the 2018-2019 or
  2019-2020 academic year may not exceed by more than one percent the
  total amount of tuition that the institution would have charged
  under this chapter to a similarly situated student for the
  preceding academic year, as that amount is adjusted for each
  academic year for inflation as determined under Subsection (c).
  For purposes of this subsection, 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. This subsection 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.
         (c)  Not later than August 31 of each year, or as soon
  thereafter as practicable, the Legislative Budget Board shall
  publish and certify to the governing board of each institution to
  which this section applies 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 12-month period as compared to the consumer price
  index for the 12-month period preceding that period.
         (d)  This section expires September 1, 2020.
         SECTION 2.  Section 54.05131, Education Code, as added by
  this Act, applies beginning with tuition charged by a general
  academic teaching institution to which that section applies for the
  2020-2021 academic year.
         SECTION 3.  This Act takes effect September 1, 2017.
 
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