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  89R21880 AND-D     By: Smithee H.B. No. 3574     Substitute the following for H.B. No. 3574:     By:  VanDeaver C.S.H.B. No. 3574       A BILL TO BE ENTITLED   AN ACT   relating to the maximum number of nonresident scholarship students   permitted to pay resident tuition and fees at certain public   institutions of higher education.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 54.213, Education Code, is amended by   amending Subsection (b) and adding Subsection (c) to read as   follows:          (b)  The total number of students at an institution paying   resident tuition under this section for a particular semester may   not exceed :                 (1)   five percent of the total number of students   registered at the institution for the same semester of the   preceding academic year if the institution is not an institution to   which Subdivision (2) applies; or                 (2)     20 percent of the total number of students   registered at the institution for the same semester of the   preceding academic year if as determined by Texas Higher Education   Coordinating Board rule:                       (A)     the institution is located in a local   workforce development area that is experiencing a population growth   rate less than the statewide average according to the most recent   federal decennial census; and                         (B)     the most recent space usage efficiency report   prepared by the coordinating board indicates the institution has   sufficient capacity to support the nonresident students .           (c)     The coordinating board shall adopt rules as necessary to   implement this section.          SECTION 2.  The change in law made by this Act to Section   54.213, Education Code, applies beginning with the 2025-2026   academic year.          SECTION 3.  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.