Meza Tuition Bill Studies Repealing Schools’ Power To Set Rates

The text as introduced · 495 words

89R5381 CMO-D

By: Meza
H.B. No. 299

A BILL TO BE ENTITLED

AN ACT

relating to a study by the Legislative Budget Board concerning the

long-term effects of regulating tuition rates and amounts charged

by public institutions of higher education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 322, Government Code, is amended by

adding Section 322.0166 to read as follows:

Sec. 322.0166. STUDY CONCERNING REGULATION OF TUITION. (a)

In this section, "institution of higher education" has the meaning

assigned by Section 61.003, Education Code.

(b) The board shall conduct a study to examine the long-term

costs, benefits, and other effects of any legislative action that

may be taken to regulate the rates and amounts of tuition charged by

institutions of higher education, including by repealing the

statutory authority of those institutions to establish tuition

rates as they determine appropriate. The study may explore all

topics relevant to the matter, but in assessing the effects of

regulation, the study must strive to strike a balance between

promoting the affordability and accessibility of higher education

in this state and the institutions' need for sufficient revenue to

maintain educational quality for students and competitiveness with

other institutions outside this state. In the study, the board

shall:

(1) recommend to the legislature an appropriate rate

or rates of tuition for institutions of higher education compared

to the rates currently established by the institutions;

(2) evaluate the potential effects of regulating

tuition rates and amounts on student access to higher education

opportunities in this state, including the effect on enrollment by

disadvantaged or underrepresented Texans, and the potential

effects on affordability, student financial aid, and student loan

debt;

(3) estimate the potential loss or gain of funding or

revenue by the institutions as a result of any repeal of the

existing statutory authority of those institutions to establish

tuition rates; and

(4) if the board projects that regulating tuition

rates and amounts would result in a loss of revenue under

Subdivision (3):

(A) identify any sources of funding or revenue,

such as institutional endowments, that would be available or

necessary to offset the projected decrease in revenue; and

(B) recommend a specific portion or amount of

endowment money that could be used to offset the reduced tuition

revenues.

(c) Not later than December 1, 2026, the board shall submit

to the governor, the lieutenant governor, the speaker of the house

of representatives, and the presiding officer of each standing

legislative committee having jurisdiction over higher education or

state appropriations a report on the results of the study and the

board's recommendations for legislative or other action.

(d) This section expires September 1, 2027.

SECTION 2. 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.