HBA-MPM S.B. 345 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 345
By: Bivins
Higher Education
3/23/1999
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Effective with the fall semester of 1999, state law will prohibit the state
from funding undergraduate semester credit hours taken by a student that
exceed 170 total hours while authorizing institutions of higher education
to charge a higher rate of tuition for hours above the 170-hour cap.  S.B.
345 changes the cap from 170 total hours to 45 hours more than required to
complete a student's degree program.  The bill also grandfathers all
students who enrolled in such an institution prior to the fall semester of
1999.  Furthermore, the bill regulates the formula for funding and tuition
charged for certain excess hours of undergraduate students attending
institutions of higher education. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 61.0595, Education Code, by amending Subsections
(a), (b), and (d), and adding Subsection (e), as follows: 

(a) Prohibits the Texas Higher Education Coordinating Board (board) from
including funding for semester credit hours (hours) earned by a resident
undergraduate student, who, before the semester or other academic session
begins, has previously attempted 45 hours more than that required to
complete the student's degree program, rather than a total of 170 or more
hours. 

(b)  Provides that a student not enrolled in a degree program is considered
to be enrolled in a degree program requiring a minimum of 120 hours for
purposes of Subsection (a).  Deletes existing text exempting from this
section a student enrolled in two or more baccalaureate degree programs at
the same time, a double major degree program requiring 130 or more hours,
or a health professional baccalaureate degree program. 

(d)  Excludes credit for a technical course and a workforce education
course funded according to contact hours from those courses that are not
counted for purposes of determining whether a student has previously earned
the number of hours specified by Subsection (a).  Makes a nonsubstantive
change. 

(e)  Makes Subsection (a) inapplicable to funding for hours earned by a
student who initially enrolled as an undergraduate student in any
institution of higher education prior to the fall semester of 1999.
Requires the board to include funding for those hours without consideration
to Subsection (a) in the formulas established under Section 61.059
(Appropriations), Education Code. 

SECTION 2.  Amends Section 54.068, Education Code, as follows:

Sec. 54.068.  TUITION FOR EXCESSIVE UNDERGRADUATE HOURS. (a) Authorizes an
institution of higher education to charge a resident undergraduate student,
rather than a student, at a higher rate than the rate charged to other
resident undergraduate students, rather than students, not to exceed that
charged to nonresident undergraduate students.  Makes this  rate applicable
if, before the semester or other academic session begins, the student has
previously attempted a number of hours for courses taken at any institution
of higher education while classified as a resident student for tuition
purposes that exceeds by at least 45 hours the number of hours required for
completion of the student's degree program. Provides that a student who is
not enrolled in a degree program is considered to be enrolled in a degree
program requiring a minimum of 120 hours.  Deletes the authorization for an
institution of higher education to charge a higher rate for a course for
which Section 61.0595 (Funding for Certain Excess Undergraduate Credit
Hours), Education Code, requires the board to exclude funding for the hours
for which the student registers, if the student has previously attempted
170 or more hours. 

(b)  Provides that hours or other credit listed in Section 61.0595(d) is
not counted in determining the number of hours previously attempted by a
student for purposes of Subsection (a). 

(c)  Makes Subsection (a) inapplicable to tuition charged to a student who
initially enrolled as an undergraduate student in an institution of higher
education prior to the fall semester of 1999. 

(d)  Created from existing text.  Makes a conforming change.

(e)  Prohibits the legislature, in its appropriations to institutions of
higher education for the 1999-2000 and 2000-2001 state fiscal years, from
including funding for hours attributable to enrollment growth for the
1997-1998 and 1998-1999 academic years to be earned in the 1999-2000 and
2000-2001 academic years by resident students who are charged the resident
tuition rate for those hours but who would have been subject to tuition at
a higher rate than charged to other resident students, as permitted by this
section, if this section as it existed on January 1, 1999, were applicable
to those academic years. Provides that this subsection expires January 1,
2002. 

SECTION 3.  Makes the change in law made by this Act applicable beginning
with funding recommendations for the 2001-2002 academic year, and provides
that Section 54.068, Education Code, as amended by this Act, applicable
beginning with tuition charged for the 1999 fall semester. 

SECTION 4.Emergency clause.
  Effective date: upon passage.

EXPLANATION OF AMENDMENTS

Committee Amendment #1

SECTION 2.  Amends Section 54.068, Education Code, by inserting new
Subsection (e), which requires each institution of higher education to
inform a new undergraduate enrolling at the institution in writing of the
limitation provided by this section on the number of hours that a Texas
resident is entitled to complete while paying tuition at the rate provided
for Texas residents. Redesignates existing Subsection (e) to Subsection
(f). 

Committee Amendment #2

SECTION 1.  Amends Section 61.0595(d)(3), Education Code, to make a
nonsubstantive change.