H.B. No. 3574 amends Section 54.213 of the Education Code to establish new limits on the number of nonresident scholarship students who can pay resident tuition and fees at certain public institutions of higher education in Texas. The bill specifies that the total number of such students for a semester cannot exceed either five percent of the total number of students registered at the institution for the same semester of the preceding academic year, or 20 percent if the institution is located in a local workforce development area with a population growth rate below the statewide average and has sufficient capacity to support the nonresident students, as determined by the Texas Higher Education Coordinating Board.

Additionally, the bill mandates that the Coordinating Board adopt necessary rules to implement these changes. The new provisions will take effect starting with the 2025-2026 academic year, and the bill will become effective immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Education Code 54.213 (Education Code 54)
House Committee Report: Education Code 54.213 (Education Code 54)