(a) In this section, “child” and “undergraduate professional nursing program” have the meanings assigned by § 54.355.
(b) The governing board of an institution of higher education shall exempt from the payment of $500 of the total amount of tuition a resident of this state enrolled as a student at the institution who:
(1) is a registered nurse; and
(2) serves under a written preceptor agreement with an undergraduate professional nursing program as a clinical preceptor for students enrolled in the program.

(b-1) A person is entitled to an exemption under Subsection (b) for one semester or other academic term for each semester or other academic term during which the person serves as a clinical preceptor as described by Subsection (b). The person may claim the exemption in:
(1) the semester or other academic term in which the person serves as a clinical preceptor; or
(2) a different semester or other academic term that begins before the first anniversary of the last day of a semester or other academic term described by Subdivision (1), if the person does not claim the exemption in the semester or other term during which the person serves as a clinical preceptor.
(c) The governing board of an institution of higher education shall exempt from the payment of $500 of the total amount of tuition a resident of this state enrolled as an undergraduate student at the institution who is a child of a person who meets the requirements of Subsection (b). The child is entitled to an exemption for one semester or other academic term for each semester or other academic term during which the parent serves as a clinical preceptor. The child may claim the exemption in any semester or other academic term during which the parent could have claimed an exemption under Subsection (b). The child’s eligibility for an exemption is not affected by whether the parent also received an exemption under Subsection (b) for the same qualifying service as a clinical preceptor.
(d) Notwithstanding Subsections (b) and (c), if a person eligible for an exemption under this section owes less than $500 in tuition, the governing board of the institution of higher education in which the person is enrolled shall exempt the person from the payment of only the amount of tuition the person owes.
(e) A person is not eligible for an exemption under Subsection (c) if the person:
(1) has previously received an exemption under this section for 10 semesters or summer sessions at any institution or institutions of higher education; or
(2) has received a baccalaureate degree.
(f) For purposes of Subsection (e), a summer session that is less than nine weeks in duration is considered one-half of a summer session.
(g) The Texas Higher Education Coordinating Board shall adopt:
(1) rules governing the granting or denial of an exemption under this section, including rules relating to the determination of eligibility for an exemption; and
(2) a uniform application form for an exemption under this section.