By: Zaffirini S.B. No. 1323               A BILL TO BE ENTITLED   AN ACT   relating to the academic costs charged to resident undergraduate   students by general academic teaching institutions and to certain   reports regarding certain costs of those institutions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 54, Education Code, is   amended by adding Section 54.018 to read as follows:          Sec. 54.018.  LIMITATION ON INCREASE IN TOTAL ACADEMIC COSTS   CHARGED TO RESIDENT UNDERGRADUATE STUDENTS. (a)  In this section:                (1)  "General academic teaching institution" has the   meaning assigned by Section 61.003.                (2)  "Core operational costs" means those costs as   estimated by the Legislative Budget Board under Section 51.979.                (3)  "Total academic costs":                      (A)  includes:                            (i)  tuition for which the rates are   prescribed by this chapter;                            (ii)  tuition charged by a general academic   teaching institution under Section 54.0513 or another law   authorizing a general academic teaching institution to establish   tuition rates;                            (iii)  mandatory academic fees; and                            (iv)  any other academic-related general   fees and course fees, including fees for laboratories, field trips,   access to Internet or multimedia service, equipment replacement,   and instructional technology; and                      (B)  does not include optional fees charged to a   student for voluntary services or a fee approved by students of the   institution in a referendum held at the institution for that   purpose.          (b)  If for any state fiscal biennium the legislature   appropriates to a general academic teaching institution from   undedicated general revenue an amount that is less than the amount   necessary to fully fund the institution's core operational costs   for that biennium, the total academic costs charged by the   institution to undergraduate students who are residents of this   state for an academic year of that biennium may not exceed the   amount that, when added to the amount of undedicated general   revenue appropriated to the institution for the corresponding state   fiscal year for that purpose, is equal to the institution's core   operational costs for that corresponding state fiscal year.          (c)  Notwithstanding Section 54.0513(c), the legislature in   an appropriations Act may provide for an adjustment of general   revenue appropriated to a general academic teaching institution for   a state fiscal year to account for an increase in the amount of   total academic costs charged by the institution in that fiscal year   to an individual student of the institution to whom this section   applies, in excess of an amount specified in the appropriations   Act, if the legislature specifies such an amount in that Act.          (d)  For purposes of this section, 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 total academic costs charged to the   student.          (e)  This section does not ensure that the total academic   costs charged to an individual student will not increase by more   than the limitation prescribed by Subsection (b) based on a change   in the student's residency status, degree program, course load,   course level, tuition exemption status, or other circumstance   affecting the total academic costs charged to the student.          SECTION 2.  Section 54.0513, Education Code, is amended by   amending Subsection (c) as follows:          (c)  Amounts collected by an institution of higher education   under this section are institutional funds as defined by Section   51.009 [of this code] and shall be accounted for as designated   funds. These funds shall not be accounted for in a general   appropriations act in such a way as to reduce the general revenue   appropriation to a particular institution except as provided by   Section 54.018(c).          SECTION 3.  Subchapter Z, Chapter 51, Education Code, is   amended by adding Section 51.979 to read as follows:          Sec. 51.979.  BIENNIAL REPORT BY LEGISLATIVE BUDGET BOARD   REGARDING CERTAIN UNIVERSITY COSTS. (a)  Not later than September   1 of each even-numbered year, the Legislative Budget Board shall   submit to the Senate Finance Committee, the House Appropriations   Committee, and the standing committee of each house with primary   jurisdiction over higher education for consideration by the members   of those committees in determining the amount of general revenue   appropriations to general academic teaching institutions and   tuition rates at those institutions, the Legislative Budget Board's   estimate of the core operational costs for the next state fiscal   biennium for each general academic teaching institution, based on a   methodology that:                (1)  projects for each year of the next biennium:                      (A)  changes in student enrollment for each   institution; and                      (B)  a rate of inflation; and                (2)  uses data from each institution's annual financial   report regarding costs for instruction, academic support,   institutional support, operations and maintenance of physical   plants, and student services.          (b)  The Legislative Budget Board shall submit with its   estimate under Subsection (a)(1) a comparison of each institution's   actual core operational costs for the preceding state fiscal   biennium to the board's previous estimate of the institution's core   operational costs for that biennium.          SECTION 4.  Not later than September 1, 2018, each general   academic teaching institution shall submit to the Legislative   Budget Board, the Senate Committee on Finance, the House   Appropriations Committee, and the standing committee of each house   with primary jurisdiction over higher education a detailed plan for   reducing the institution's operational costs by at least five   percent.          SECTION 5.  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, 2017.