Introduced Version






HOUSE BILL No. 1118

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 21-14-2.

Synopsis: University tuition and fees. Provides that the commission for higher education shall establish the maximum amount by which tuition and mandatory fees may increase for each state educational institution. Provides that the budget committee may review the amounts established by the commission for higher education. Requires a state educational institution to submit a report to the commission for higher education concerning the financial and budgetary factors considered by the board of trustees of the state educational institution in determining the amount of the increase. (Current law provides that the state educational institution must submit a report concerning the financial and budgetary factors considered to the budget committee.) Provides that tuition and mandatory fee rate increases approved by a state educational institution for the state fiscal year beginning July 1, 2012, and ending June 30, 2013, are void and may not go into effect. Provides that the commission for higher education shall establish the amount by which a state educational institution may increase its tuition and mandatory fees for the state fiscal year beginning July 1, 2012, and ending June 30, 2013. Makes a technical correction.

Effective: Upon passage; July 1, 2012.





Espich




    January 9, 2012, read first time and referred to Committee on Ways and Means.







Introduced

Second Regular Session 117th General Assembly (2012)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2011 Regular Session of the General Assembly.

HOUSE BILL No. 1118



    A BILL FOR AN ACT to amend the Indiana Code concerning education.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 21-14-2-6; (12)IN1118.1.1. -->     SECTION 1. IC 21-14-2-6, AS ADDED BY P.L.234-2007, SECTION 270, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6. Subject to section 12 12.5 of this chapter, a state educational institution shall set tuition and fee rates for a two (2) year period.
SOURCE: IC 21-14-2-8; (12)IN1118.1.2. -->     SECTION 2. IC 21-14-2-8, AS AMENDED BY P.L.229-2011, SECTION 233, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 8. A state educational institution shall hold a public hearing before adopting a proposed tuition and fee rate increase. The state educational institution shall give public notice of the hearing at least ten (10) days before the hearing. The public notice must include the specific proposal for the tuition and fee rate increase and the expected uses of the revenue to be raised by the proposed increase. The hearing must be held not later than thirty (30) days after the commission for higher education has established the recommended maximum tuition and mandatory fee increase targets amounts for each state educational institution under section 12.5 of

this chapter.

SOURCE: IC 21-14-2-12.5; (12)IN1118.1.3. -->     SECTION 3. IC 21-14-2-12.5, AS AMENDED BY P.L.229-2011, SECTION 234, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 12.5. (a) This section applies to tuition and mandatory fees that a board of trustees of a state educational institution votes to increase under section 7 of this chapter.
    (b) (a) Not later than thirty (30) days after the enactment of a state budget, the commission for higher education shall recommend nonbinding establish the maximum amount by which tuition and mandatory fee increase targets fees may increase for each state educational institution for each school year in the ensuing biennium. State educational institutions may not adopt tuition and mandatory fee increases that exceed the maximum tuition and mandatory fee increase amounts established by the commission under this subsection unless the budget director authorizes a modification under subsection (c).
    (c) (b) The state educational institution shall submit a report to the state budget committee commission for higher education concerning the financial and budgetary factors considered by the board of trustees in determining the amount of the increase.
    (d) (c) The state budget committee shall may review the targets recommended maximum tuition and mandatory fee increase amounts established under subsection (b) (a) and reports received under subsection (c) and (b) for one (1) or more state educational institutions. To facilitate a review, the budget committee may request that a state educational institution appear at a public meeting of the state budget committee concerning the report. Upon recommendation by the budget committee, the budget director may increase or decrease one (1) or more maximum tuition and mandatory fee increase amounts established by the commission. A maximum tuition and mandatory fee increase amount established under this subsection replaces the amount established by the commission. State educational institutions may not adopt tuition and mandatory fee increases that exceed the maximum tuition and mandatory fee increase amounts established by the budget director under this subsection.
    (d) If a state educational institution implements a tuition and mandatory fee increase that exceeds the applicable maximum tuition and mandatory fee increase amounts set under this section, the budget director may withhold from the operating appropriation to the state educational institution an amount equal to the amount by which revenue generated by the tuition and

mandatory fee increases adopted by the state educational institution exceeds the revenue that would have been generated by imposing tuition and mandatory fee increases equal to the applicable maximum tuition and mandatory fee increase amounts established under this section.

SOURCE: ; (12)IN1118.1.4. -->     SECTION 4. [EFFECTIVE UPON PASSAGE] (a) This SECTION applies to the tuition and mandatory fees charged by a state educational institution for the state fiscal year beginning July 1, 2012, and ending June 30, 2013.
    (b) As used in this SECTION, "commission" refers to the commission for higher education established under IC 21-18-2-1.
    (c) Notwithstanding IC 21-14-2, or any other law, tuition and mandatory fee rate increases adopted by a state educational institution under IC 21-14-2-6 for the state fiscal year beginning July 1, 2012, and ending June 30, 2013, are void and may not go into effect.
    (d) Not later than April 30, 2012, the commission shall establish the amounts by which each state educational institution's tuition and mandatory fees may increase for the state fiscal year beginning July 1, 2012, and ending June 30, 2013.
    (e) The commission may not establish a tuition or mandatory fee rate increase amount for a state educational institution under subsection (d) that exceeds the allowable increase percentage described in this subsection. The percentage by which a state educational institution's tuition or mandatory fees may be increased from the tuition and mandatory fee rates charged by the state educational institution for the state fiscal year beginning July 1, 2012, and ending June 30, 2013, may not exceed:
        (1) the combined tuition and mandatory fee increase target percentages recommended by the commission for the state educational institution for the state biennium beginning July 1, 2011, and ending June 30, 2013; minus
        (2) the actual percentage increase for tuition and mandatory fees, as determined by the commission, that was adopted by the state educational institution for the state fiscal year beginning July 1, 2011, and ending June 30, 2012.
    (f) If a state educational institution implements a tuition and mandatory fee increase that exceeds the applicable tuition and mandatory fee increase amount set under this SECTION, the budget director shall withhold from the operating appropriation to the state educational institution an amount equal to the amount by which revenue generated by the tuition and mandatory
fee

increases adopted by the state educational institution exceeds the revenue that would have been generated by imposing tuition and mandatory fee increases equal to the applicable maximum tuition and mandatory fee increase amount established under this SECTION.
    (g) This SECTION expires July 1, 2013.

SOURCE: ; (12)IN1118.1.5. -->     SECTION 5. An emergency is declared for this act.