1. (a) Authority. Authority for this section is provided in the Texas Education Code, §54.231(d) and (e).

2. (b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

   1. (1) Citizen or Permanent Resident of Another Nation--A citizen or permanent resident of a nation other than the United States who resides in the nation of which he or she is a citizen or permanent resident and who plans to return to that nation to live immediately after finishing his/her program of study in Texas.
   2. (2) Originating Institution--The institution from which a participant is relocating as part of the exchange program.
   3. (3) Participating Nation--A nation other than the United States with institutions which have entered into exchange agreements with one or more institutions of higher education in Texas under the provisions of this subchapter.
   4. (4) Receiving Institution--The institution in which a participant enrolls or studies as part of the program.

3. (c) Eligible Institutions. To be eligible to participate in the program, an institution must:

   1. (1) designate a Program Officer who will be responsible for all transactions relating to the program; and

   2. (2) be either:

      1. (A) a public or private degree-granting institution of higher education located in a nation other than the United States whose programs have recognition of official validity, or
      2. (B) an institution of higher education, as defined in §13.1 of this chapter (relating to Definitions) in Texas.

4. (d) Eligible Students. To be eligible to participate in the program, a student must:

   1. (1) have been enrolled for at least one semester at the originating institution;

   2. (2) be either:

      1. (A) a citizen or permanent resident of a participating nation; or
      2. (B) enrolled in an institution of higher education in Texas;
   3. (3) be nominated by his or her originating institution;
   4. (4) meet the admissions requirements and any other restrictive enrollment criteria of the receiving institution;
   5. (5) be enrolled or studying on a full-time basis at the receiving institution; and
   6. (6) have not participated in the program for more than 12 months.

5. (e) Tuition Rate.

   1. (1) If a reciprocal exchange program requires a tuition payment, the tuition rates paid by participants will be defined by the agreements entered into by the participating institutions and will be either the resident tuition rate at the institution of higher education in Texas or the rate normally charged nationals or residents of other nations by their institutions.

   2. (2) The method of charging and collecting tuition is to be negotiated between the two institutions involved in the exchange. The tuition rate and payment may be any of the following methods:

      1. (A) pay the relevant tuition rate of receiving institution, paid to the receiving institution;
      2. (B) pay the relevant tuition rate of the originating institution, paid to the receiving institution; or
      3. (C) pay the relevant tuition rate of the originating institution, paid to the originating institution.
   3. (3) A former participant no longer participating in the program who continues to be enrolled at the receiving institution shall be expected to pay the tuition rate charged other nonresident students, beginning with the first enrollment period after the participant is no longer participating in the program.
6. (f) Reciprocity. The number of units of instruction exchanged would ideally be equal in any given year. If balance is not attained in any one year and more students from other nations are participating in the program than are students from Texas, parity is to be established within a five-year period.

7. (g) Assurances. Each participating institution must maintain records in the appropriate office that include:

   1. (1) proof of each participant's eligibility; and
   2. (2) formally executed exchange agreements with each other exchange partner institution.
8. (h) Formula Funding. When an exchange takes place under this program, an institution of higher education in Texas may request formula funding for the hours taken by foreign students attending classes in Texas. It may not request formula funding for their students who go abroad under this program.

9. (i) Reporting.

   1. (1) Each participating institution shall provide an annual prior-year program report to the Coordinating Board on a form provided by, and by a deadline specified by, the Coordinating Board. The report shall include such things as the number of students who have participated in the exchange program and the names and locations of the institutions with which the exchanges have taken place. Each institution is to define, demonstrate, and report the basis on which their student exchanges are reciprocal.
   2. (2) A nonresident student that is charged resident tuition at an institution of higher education in Texas under this section should be reported as having received a waiver.

Source Note:The provisions of this §13.474 adopted to be effective November 13, 2025, 50 TexReg 7253.