85R2519 KSD-D     By: Seliger S.B. No. 543       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 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 October 1 of each even-numbered year, the   coordinating board shall:                (1)  in consultation with the governing board and   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 maintain, or make reasonable progress toward,   appropriate performance in each performance measure, taking into   account the mission, resources, and circumstances of the particular   institution; and                (2)  submit to the legislative 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)  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.          (g)  After the coordinating board makes a determination for   an institution under Subsection (f), the coordinating board shall   notify the governing board of the institution that Subsection (h)   or (i), 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.          (h)  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 (l) 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 (k).   The governing board may not increase the amount of tuition charged   under this subsection to a student more than once in any 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 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 (k). 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)  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.          (k)  Not later than January 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 calendar year as compared to the consumer price   index for the year preceding that year.          (l)  The coordinating board, using the negotiated rulemaking   procedures under Chapter 2008, Government Code, by rule shall   establish an exception to the application of Subsection (h) 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 (i) 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 January 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 calendar year as compared to the consumer price   index for the year preceding that year.          (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.