The Texas Higher Education Coordinating Board proposes new §§13.100 - 13.109 concerning Formula Funding and Tuition Charged for Repeated and Excess Hours of Undergraduate Students. These new sections are being proposed to implement the changes made to Texas Education Code, §§54.068 and 61.0595, by Senate Bill 1172, 79th Texas Legislature, Regular Session and to incorporate current §§13.100 - 13.106 and §13.25 of Board rules into one subchapter regarding formula funding and tuition charged for repeated and excess hours. Specifically, proposed new §§13.100 and 13.101 provide the purpose and authority for these rules. Definitions for all the terms used in these sections are provided in proposed new §13.102. Institutions are not permitted to submit excess hours to the Board for formula funding under §13.103, unless those hours are exempted from this provision under §13.104. Likewise, institutions are not permitted to submit repeated hours for attempted courses to the Board for formula funding under §13.105, unless those hours are exempted under §13.106. Section 13.107 provides the limitations on the number of hours for remedial and developmental courses which may be submitted for formula funding. Proposed new §13.108 provides that institutions may charge a higher tuition rate to students who take excess hours or certain repeated courses, if a higher tuition rate is charged, institutions must adopt a policy which exempts a student from the payment of the increased tuition rate upon the showing of an economic hardship to the student. Finally, proposed new §13.109 requires the institutions to provide reports to the Board and to publish information about excess and repeated hours in their catalogs. Institutions are also required to track the progress of students and notify those students who are approaching the limitations on formula funding set out in these sections.

Dr. Deborah Greene, Acting Assistant Commissioner for Planning and Accountability, has determined that for each year of the first five years the section is in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Greene has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering these sections will be the facilitation of the progress of students through their academic programs and provision of incentives for students to complete their degree programs expeditiously. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Deborah L. Greene, Acting Assistant Commissioner, Planning and Accountability, P.O. Box 12788, Austin, TX 78711; deborah.greene@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are being proposed under the Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, Texas Education Code, §54.068, which permits the institutions to charge a higher rate of tuition to students who enroll in excess or repeated hours, Texas Education Code, §51.3062(l), which limits the number of hours for remedial and developmental courses that are eligible for formula funding, and Texas Education Code, §61.0595, which limits formula funding for certain excess or repeated hours.

The new sections affect Texas Education Code, §§54.068, 51.3062(l), and 61.0595.