Senator Joyce Elliott has unsuccessfully tried to pass similar legislation twice before.
Senate Bill 915 says any student who graduated from and attended an Arkansas high school for three years will be charged the in-state rate.
Right now those students face out-of-state tuition rates, which are more expensive.
"This is one thing we can do regarding these kids," says Senator Elliott. "We can't change immigration law, we can't tell Washington what to do, but we do have authority to decide who is going to go to our colleges and under what conditions."
The legislation currently has bi-partisan support, including a Republican co-sponsor.