HBA-MPM, KMH H.B. 3138 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3138 By: Naishtat Higher Education 7/19/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, law did not allow Texas schools to discount tuition as part of a plan to increase graduation rates through positive incentives. H.B. 3138 authorizes Texas institutions of higher education to discount tuition for students enrolled in at least 15 semester credit hours and making satisfactory progress toward a degree. This bill requires such a reduction to be part of an overall plan to increase the average semester credit hour course load of students and to improve retention and graduation rates. 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 Subchapter A, Chapter 54, Education Code, by adding Section 54.010, as follows: Sec. 54.010. REDUCTION IN TUITION. (a) Authorizes the governing board of an institution of higher education (governing board) to reduce the amount of tuition charged to a student under this chapter to an amount less than the amount otherwise required by this chapter: _if the governing board offers the tuition reduction under this section (tuition reduction) to the student as part of an institutional policy to increase the average semester credit hour course load and improve the retention and graduation rate of students enrolled in the institution; and _if the governing board determines that the student is enrolled in at least 15 semester credit hours (hours) and making satisfactory progress toward completion of a degree program offered at the institution. (b) Authorizes the governing board to offer a tuition reduction in any manner it considers appropriate. (c) Prohibits the tuition reduction from exceeding the amount of tuition that would have been charged to the student under this chapter for enrollment in three hours during the semester or term. (d) Authorizes the governing board to prorate the amount of the tuition reduction based on the number of hours in which the student is enrolled, or the length of the semester or term for which the student is enrolled. (e) Provides that the governing board is not required to offer a tuition reduction to all institutions of higher education or all degree plans under its governance. SECTION 2. Amends Subchapter E, Chapter 54, Education Code, by adding Section 54.5025, as follows: Sec. 54.5025. PRORATION OF FEES. Authorizes the governing board to prorate the amount of any fee charged to the student under this chapter, based on the length of the semester or term for which a student is enrolled. SECTION 3. Makes this Act effective beginning with tuition and fees charged for the fall 1999 semester. SECTION 4. Emergency clause. Effective date: upon passage.