Middleton Bill Ends In-State Tuition For Students Not Lawfully Present

The text as introduced · 2,004 words

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.