89R7952 MM-D     By: Middleton, Schwertner S.B. No. 1798       A BILL TO BE ENTITLED   AN ACT   relating to the resident status, tuition rates, and certain   financial support for students enrolled at public institutions of   higher education, including students not lawfully present in the   United States.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter G, Chapter 51, Education Code, is   amended by adding Section 51.3526 to read as follows:          Sec. 51.3526.  RESPONSIBILITY OF GOVERNING BOARDS REGARDING   CERTAIN FINANCIAL SUPPORT PROVIDED TO PERSONS NOT LAWFULLY PRESENT.   (a) The governing board of an institution of higher education shall   ensure that each unit of the institution does not award or provide   to a person who is not authorized under federal statute to be   present in the United States any financial support using money   appropriated or otherwise provided by the state to the institution   or unit, including a scholarship, grant, or other financial aid.          (b)  An institution of higher education may not spend money   appropriated to the institution for a state fiscal year until the   governing board of the institution submits to the legislature and   the Texas Higher Education Coordinating Board a report certifying   the board's compliance with this section during the preceding state   fiscal year.          (c)  In the interim between each regular session of the   legislature, the governing board of each institution of higher   education, or the board's designee, shall testify before the   standing legislative committees with primary jurisdiction over   higher education at a public hearing of the committee regarding the   board's compliance with this section.          (d)  The state auditor shall periodically conduct a   compliance audit of each institution of higher education to   determine whether the institution has spent state money in   violation of this section.  The state auditor shall adopt a schedule   by which the state auditor will conduct compliance audits under   this subsection.  The schedule must ensure that each institution of   higher education is audited at least once during each four-year   period.          (e)  If the state auditor determines pursuant to a compliance   audit conducted under Subsection (d) that an institution of higher   education has spent state money in violation of this section, the   institution:                (1)  must cure the violation not later than the 180th   day after the date on which the determination is made; and                (2)  if the institution fails to cure the violation   during the period described by Subdivision (1), is ineligible to   receive formula funding increases, institutional enhancements, or   exceptional items during the state fiscal biennium immediately   following the state fiscal biennium in which the determination is   made.          SECTION 2.  Section 54.052, Education Code, is amended to   read as follows:          Sec. 54.052.  DETERMINATION OF RESIDENT STATUS. (a)   Subject to the other applicable provisions of this subchapter   governing the determination of resident status, the following   persons are considered residents of this state for purposes of this   title:                (1)  a person who:                      (A)  established a domicile in this state not   later than one year before the census date of the academic term in   which the person is enrolled in an institution of higher education;   and                      (B)  maintained that domicile continuously for   the year preceding that census date; and                (2)  a dependent whose parent:                      (A)  established a domicile in this state not   later than one year before the census date of the academic term in   which the dependent is enrolled in an institution of higher   education; and                      (B)  maintained that domicile continuously for   the year preceding that census date[; and                [(3)  a person who:                      [(A)  graduated from a public or private high   school in this state or received the equivalent of a high school   diploma in this state; and                      [(B)  maintained a residence continuously in this   state for:                            [(i)  the three years preceding the date of   graduation or receipt of the diploma equivalent, as applicable; and                            [(ii)  the year preceding the census date of   the academic term in which the person is enrolled in an institution   of higher education].          (b)  For purposes of this section, the domicile of a   dependent's parent is presumed to be the domicile of the dependent   [unless the person establishes eligibility for resident status   under Subsection (a)(3)].          (c)  A person who is not authorized under federal statute to   be present in the United States may not be considered a resident of   this state for purposes of this title.          SECTION 3.  Section 54.053, Education Code, is amended to   read as follows:          Sec. 54.053.  INFORMATION REQUIRED TO ESTABLISH RESIDENT   STATUS. A person shall submit the following information to an   institution of higher education to establish resident status under   this subchapter:                (1)  if the person applies for resident status under   Section 54.052(a)(1):                      (A)  a statement of the dates and length of time   the person has resided in this state, as relevant to establish   resident status under this subchapter; and                      (B)  a statement by the person that the person's   presence in this state for that period was for a purpose of   establishing and maintaining a domicile; or                (2)  if the person applies for resident status under   Section 54.052(a)(2):                      (A)  a statement of the dates and length of time   any parent of the person has resided in this state, as relevant to   establish resident status under this subchapter; and                      (B)  a statement by the parent or, if the parent is   unable or unwilling to provide the statement, a statement by the   person that the parent's presence in this state for that period was   for a purpose of establishing and maintaining a domicile[; or                [(3)  if the person applies for resident status under   Section 54.052(a)(3):                      [(A)  a statement of the dates and length of time   the person has resided in this state, as relevant to establish   resident status under this subchapter; and                      [(B)  if the person is not a citizen or permanent   resident of the United States, an affidavit stating that the person   will apply to become a permanent resident of the United States as   soon as the person becomes eligible to apply].          SECTION 4.  Section 54.055(a), Education Code, is amended to   read as follows:          (a)  As appropriate based on [On the basis of] additional or   changed information affecting the determination of the person's   status, an institution of higher education shall [may] reclassify   as a resident or nonresident of this state under this subchapter a   person who has previously been classified as a resident or   nonresident under this subchapter.          SECTION 5.  Section 54.056(a), Education Code, is amended to   read as follows:          (a)  If an institution of higher education erroneously   classifies or misclassifies a person as a resident of this state and   the person is not entitled or permitted to pay resident tuition   under this subchapter, the institution of higher education shall   charge nonresident tuition to the person beginning with the first   academic term that begins after the date the institution discovers   the error. Not earlier than the first day of that term, regardless   of whether the person is still enrolled at the institution, the   institution shall [may] request the person to pay the difference   between resident and nonresident tuition for an earlier term as   permitted by Section 54.057. For nonpayment of the amount owed, the   institution may impose sanctions only as provided by that section.   The institution may not require payment as a condition for any   subsequent enrollment by the person in the institution.          SECTION 6.  Section 54.057, Education Code, is amended to   read as follows:          Sec. 54.057.  LIABILITY FOR UNPAID NONRESIDENT TUITION.  (a)     The following persons are liable to the institution of higher   education the person attends for the difference between resident   and nonresident tuition for each academic term in which the person   pays resident tuition to the institution as the result of an   erroneous classification or other misclassification under this   subchapter:                (1)  a person who, in a timely manner after the   information becomes available or on request by the institution of   higher education, fails to provide to the institution information   that the person reasonably should know would be relevant to an   accurate classification by the institution under this subchapter;   [or]                (2)  a person who provides false information to the   institution that the person reasonably should know could lead to an   erroneous classification by the institution under this subchapter;   or                (3)  a person who is not authorized under federal   statute to be present in the United States.          (b)  A [The] person who is liable under this section for the   difference between resident and nonresident tuition shall pay the   applicable amount to the institution not later than the 30th day   after the date the person is notified of the person's liability for   the amount owed.  After receiving the notice and until the amount is   paid in full, the person is not entitled to receive from the   institution a certificate or diploma, if not yet awarded on the date   of the notice, or official transcript that is based at least   partially on or includes credit for courses taken while the person   was erroneously classified or misclassified as a resident of this   state.          (c)  A person who is erroneously classified or misclassified   as a resident of this state under this subchapter but who is   entitled or permitted to pay resident tuition under this subchapter   is not liable for the difference between resident and nonresident   tuition under this section.          SECTION 7.  Section 54.0601, Education Code, is amended to   read as follows:          Sec. 54.0601.  NONRESIDENT TUITION RATES AT CERTAIN   INSTITUTIONS. (a) On the written request of the governing board of   a general academic teaching institution located not more than 100   miles from the boundary of this state with another state, the Texas   Higher Education Coordinating Board may set a nonresident tuition   rate that is lower than the nonresident tuition rate otherwise   provided by this chapter if the coordinating board determines that   the lower rate is in the best interest of the institution and will   not cause unreasonable harm to any other institution of higher   education.          (b)  A person who is not authorized under federal statute to   be present in the United States is not eligible for the nonresident   tuition rate authorized by Subsection (a).          SECTION 8.  (a) Except as provided by Subsection (b) of this   section, Section 51.3526, Education Code, as added by this Act,   applies beginning with the 2025-2026 academic year.          (b)  Section 51.3526(b), Education Code, as added by this   Act, applies beginning with money appropriated to a public   institution of higher education for the state fiscal year beginning   September 1, 2026.          SECTION 9.  Notwithstanding Subchapter B, Chapter 54,   Education Code, as amended by this Act, a public institution of   higher education in this state may, for any semester or academic   term, before the beginning of that semester or academic term,   reclassify as a nonresident a student previously classified as a   resident of this state by the institution or another public   institution of higher education in this state:                (1)  under Section 54.052(a)(3), Education Code, as   that section existed before amendment by this Act, if the student is   not otherwise eligible to be classified as a resident of this state   under Subchapter B, Chapter 54, Education Code; or                (2)  before the enactment of Section 54.052(c),   Education Code, as added by this Act, if the student is not   authorized under federal statute to be present in the United   States.          SECTION 10.  The changes in law made by this Act to Chapter   54, Education Code, apply beginning with tuition charged by a   public institution of higher education for the 2025 fall semester.   Tuition charged by a public institution of higher education for an   academic period before that semester is governed by the law in   effect immediately before the effective date of this Act, and that   law is continued in effect for that purpose.          SECTION 11.  This Act takes effect immediately if it   receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.   If this Act does not receive the vote necessary for immediate   effect, this Act takes effect September 1, 2025.