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

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

Sponsorship: Partisan Bill (Republican 2)

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

Download: Texas-2017-SB543-Comm_Sub.html

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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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