The following types of hours are exempt and are not subject to the limitation on formula funding set out in §13.103 of this title (relating to Limitation on Formula Funding for Excess Hours):
  (1) hours earned by an undergraduate student before the award of a prior associate or bachelor's degree;
  (2) hours earned through examination or similar method without registering for a course;
  (3) hours from remedial and developmental courses and/or interventions, workforce education courses, or other courses that would not generate credit that could be applied to an academic degree at the institution if the course work is within limitations specified in §13.107 of this title (relating to Limitation on Formula Funding for Remedial and Developmental Courses and Interventions);
  (4) hours earned by the student at a private institution or an out-of-state institution;
  (5) hours not eligible for formula funding;
  (6) semester credit hours earned by the student before graduating from high school and used to satisfy high school graduation requirements;
  (7) hours abandoned through enrollment under the Academic Fresh Start Program under Tex. Educ. Code Section 51.931; and
  (8) 15 semester credit hours not otherwise exempt earned toward a degree program by a student who:
    (A) has reenrolled at the institution following a break in enrollment from the institution or another institution of higher education covering at least the 24-month period preceding the first class day of the initial semester or other academic term of the student's reenrollment; and
    (B) successfully completed at least 50 semester credit hours of course work at an institution of higher education that are not exempt in paragraphs (1) - (7) of this section before that break in enrollment.

Source Note: The provisions of this §13.104 adopted to be effective November 22, 2005, 30 TexReg 7730; amended to be effective August 26, 2009, 34 TexReg 5679; amended to be effective February 26, 2013, 38 TexReg 1161; amended to be effective February 28, 2018, 43 TexReg 1082; amended to be effective May 18, 2023, 48 TexReg 2496; amended to be effective February 15, 2024, 49 TexReg 668