Relating to the resident status, tuition rates, certain financial support, and certain documentation requirements for students enrolled at public institutions of higher education, including students not lawfully present in the United States.

89(R) SB 1798 - Senate Committee Report version - Bill Text

By: Middleton, et al.

S.B. No. 1798

(In the Senate - Filed March 3, 2025; March 13, 2025, read

first time and referred to Committee on Education K-16;

May 14, 2025, reported adversely, with favorable Committee

Substitute by the following vote: Yeas 9, Nays 2; May 14, 2025,

sent to printer.)
Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1798

By: Bettencourt

A BILL TO BE ENTITLED

AN ACT

relating to the resident status, tuition rates, certain financial

support, and certain documentation requirements 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. Subchapter Z, Chapter 51, Education Code, is

amended by adding Section 51.9244 to read as follows:

Sec.

51.9244.

VERIFICATION OF CITIZENSHIP OR IMMIGRATION

STATUS INFORMATION AS PART OF ADMISSION PROCEDURE. (a) In this

section, "institution of higher education" has the meaning assigned

by Section 61.003.

(b)

To the extent allowed by state or federal law, each

institution of higher education shall verify the citizenship or

immigration status of each applicant who:

(1) is 18 years of age or older;

(2)

has accepted an offer of admission and confirmed

the applicant's intent to enroll at the institution; and

(3) has:

(A)

indicated that the applicant is a resident of

this state for purposes of Subchapter B, Chapter 54;

(B)

applied to receive a scholarship, grant,

loan, tuition or fee waiver, or other financial assistance that is

paid wholly or partly with state money; or

(C)

submitted a completed Free Application for

Federal Student Aid (FAFSA) as proof of the applicant's citizenship

or immigration status.

(c)

If the applicant for whom a determination is being made

under Subsection (b) indicates that:

(1)

the applicant is a citizen of the United States,

the applicant must submit to the institution of higher education

one of the following documents or its replacement:

(A) a birth certificate issued by:

(i) an agency of the United States; or

(ii)

a state or territory of the United

States, or the District of Columbia;

(B) a Certificate of United States Citizenship;

(C)

a Consular Report of Birth Abroad of a

Citizen of the United States or Certificate of Report of Birth

issued by the United States Department of State;

(D) an unexpired United States passport;

(E)

a Certificate of United States

Naturalization; or

(F) a United States Citizen Identification Card;

(2)

the applicant is not a citizen of the United

States, the applicant may submit a completed Free Application for

Federal Student Aid (FAFSA) as evidence that the applicant is

lawfully present in the United States only if the applicant:

(A) is a legal permanent resident;

(B)

has an Arrival-Departure Record Form I-94

with "Asylee," "Parolee or Parole," "Refugee," "Asylum,"

"Conditional Permanent Resident," "Conditional Entrant,"

"Cuban-Haitian Entrant," "HP-Humanitarian Parolee," or "PIP-Public

Interest Parolee" stamp; or

(C)

holds an unexpired visa issued by the federal

government in category T-1 (victim of human trafficking); or

(3)

the applicant is not a citizen of the United States

described by Subdivision (2), the applicant must submit to the

institution of higher education two documents issued by the

appropriate United States agency that authorize the applicant to be

present in the United States, including:

(A) a Permanent Resident Card;

(B)

an unexpired passport issued by another

country with a "Processed for I-551" stamp or with an expired visa;

(C)

a Re-entry Permit or other travel document

issued to Permanent Residents;

(D)

an Arrival-Departure Record Form I-94 that

bears the holder's photograph with "Temporary I-551" stamp;

(E)

a Notice of Approval Status with the bottom

I-94 portion attached;

(F) a refugee travel document;

(G) an Employment Authorization Document;

(H)

a Certificate of Eligibility for

Nonimmigrant Student Status (Form I-20);

(I)

a form DS-2019 or IAP-66 for J-1 visa

holders;

(J)

a Nonresident Alien Canadian Border Crossing

Identification Card; or

(K)

any other document determined by the United

States Department of Homeland Security to be acceptable through the

federal Systematic Alien Verification for Entitlements (SAVE)

program, or a successor program.

(c-1)

An applicant described by Subsection (c)(3) who is

unable to submit two documents described by that subdivision may

only be required to submit one document if the applicable

institution of higher education is able to verify that document and

the applicant's immigration status using the federal Systematic

Alien Verification for Entitlements (SAVE) program, the federal

Student and Exchange Visitor Information System (SEVIS), or

successor programs.

(d)

An institution of higher education may not require

additional verification under Subsection (c) for an applicant who:

(1)

is employed by the institution and has had the

applicant's citizenship or immigration status verified through the

E-verify program, as described by Section 673.001, Government Code;

or

(2)

has had the applicant's immigration status

verified through the federal Student and Exchange Visitor

Information System (SEVIS) or a successor program.

(e)

All applications, other than an application for

employment, that indicate that the applicant is a resident of this

state for purposes of Subchapter B, Chapter 54, or that are for a

scholarship, grant, loan, tuition or fee waiver, or other financial

assistance that is paid wholly or partly with state money must

include the following text:

"State law requires an applicant for resident tuition or for

financial assistance funded by state money to complete and sign the

following statement:

I, [NAME], swear or affirm under penalty of perjury under the

laws of this state that: (check one)

I am a citizen of the United States; or

I am an alien lawfully present in the United States.

I understand that this statement is required under state law

because I have applied for a public benefit.

I understand that

state law requires me to provide documentation verifying the status

indicated above before receiving any public benefit.

I understand

that knowingly and willingly making a false, fictitious, or

fraudulent statement or representation will subject me to

investigation by the attorney general.

I understand that if I am

found to have made a false or misleading statement, my admission may

be rescinded or I may be disciplined by [UNIVERSITY NAME].

[SIGNATURE/DATE]"

(f)

On receipt of final verification that an applicant or

student, as applicable, is not a citizen of the United States or

lawfully present in the United States, an institution of higher

education must terminate any recurring financial aid or other

benefit.

An administrator at the institution must notify the

attorney general in writing if the administrator has a good faith

belief that:

(1)

an applicant has knowingly and willingly made a

false, fictitious, or fraudulent statement or representation

concerning the applicant's citizenship or immigration status; or

(2)

any person has conspired to defraud the

institution by securing a false claim allowed or paid to the

applicant.

(g)

Each institution of higher education shall retain each

record containing documentation submitted for purposes of this

section for the same period as the institution would retain a

similarly dated record related to resident tuition and financial

aid.

(h)

This section may not be construed to permit an

institution of higher education to:

(1)

consider the citizenship or immigration status of

an applicant for purposes of admission to the institution; or

(2)

delay the award of financial aid or other benefit

to an applicant or student.

SECTION 3. 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 4. 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 5. 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 6. 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 7. 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 8. 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 9. (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 10. Section 51.9244, Education Code, as added by

this Act, applies beginning with admissions to public institutions

of higher education for the 2026-2027 academic year. Admissions to

public institutions of higher education for an academic period

before that academic year are governed by the law in effect

immediately before the effective date of this Act, and the former

law is continued in effect for that purpose.

SECTION 11. 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 12. 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 13. 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.

* * * * *