HBA-MPM S.B. 345 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 345 By: Bivins (Rangel) Higher Education 3/3/1999 Engrossed 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.