Texas 2009 - 81st Regular

Texas House Bill HB4351 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R5700 KEL-F
2	2	By: Morrison H.B. No. 4351
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the administration and operation of, and the
8	8	participation of state employees in, the state's programs for
9	9	prepaying or saving toward the costs of attending an institution of
10	10	higher education.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 54.603, Education Code, is amended to
13	13	read as follows:
14	14	Sec. 54.603. SUNSET PROVISION. The Prepaid Higher
15	15	Education Tuition Board is subject to Chapter 325, Government Code
16	16	(Texas Sunset Act). Unless continued in existence as provided by
17	17	that chapter, the board is abolished and the programs established
18	18	under this subchapter and under Subchapters [Subchapter] G and H
19	19	terminate September 1, 2019.
20	20	SECTION 2. Section 54.702, Education Code, is amended by
21	21	adding Subsection (h) to read as follows:
22	22	(h) The board may enter into an interagency contract with
23	23	the Employees Retirement System of Texas to allow an employee of
24	24	this state to enroll in the plan during the retirement system's
25	25	annual enrollment period. The board shall provide information and
26	26	materials regarding the plan to the retirement system for
27	27	distribution to state employees during the enrollment period.
28	28	SECTION 3. Section 54.751, Education Code, is amended by
29	29	amending Subdivisions (2) and (6) and adding Subdivision (3-a) to
30	30	read as follows:
31	31	(2) "Beneficiary" means the person designated under a
32	32	prepaid tuition contract as the person entitled to apply one or more
33	33	tuition units purchased under the contract to the payment of the
34	34	person's undergraduate tuition and required fees at a general
35	35	academic teaching institution, two-year institution of higher
36	36	education, private or independent institution of higher education,
37	37	career school, or accredited out-of-state institution of higher
38	38	education.
39	39	(3-a) "Career school" means a career school or college
40	40	as defined by Section 132.001 that offers a two-year associate
41	41	degree as approved by the Texas Higher Education Coordinating
42	42	Board.
43	43	(6) "Prepaid tuition contract" means a contract under
44	44	which a person purchases from the board on behalf of a beneficiary
45	45	one or more tuition units that the beneficiary is entitled to apply
46	46	to the payment of the beneficiary's undergraduate tuition and
47	47	required fees at a general academic teaching institution, two-year
48	48	institution of higher education, private or independent
49	49	institution of higher education, career school, or accredited
50	50	out-of-state institution of higher education.
51	51	SECTION 4. Section 54.752, Education Code, is amended by
52	52	adding Subsection (d) to read as follows:
53	53	(d) The board may enter into an interagency contract with
54	54	the Employees Retirement System of Texas to allow an employee of
55	55	this state to enroll in the program during the retirement system's
56	56	annual enrollment period. The board shall provide information and
57	57	materials regarding the program to the retirement system for
58	58	distribution to state employees during the enrollment period.
59	59	SECTION 5. Section 54.7521, Education Code, is amended to
60	60	read as follows:
61	61	Sec. 54.7521. TEXAS SAVE AND MATCH PROGRAM. (a) The board
62	62	by rule shall develop and shall implement the Texas Save and Match
63	63	program under which money paid by a purchaser under a prepaid
64	64	tuition contract may be matched with:
65	65	(1) contributions made by any person to the Texas Save
66	66	and Match program and used to purchase additional tuition units on
67	67	behalf of beneficiaries selected as provided by board rule; and
68	68	(2) money appropriated by the legislature for the
69	69	Texas Save and Match program and used to purchase additional
70	70	tuition units on behalf of beneficiaries:
71	71	(A) whose annual household income is below the
72	72	state median family income, adjusted for household size;
73	73	(B) whose enrollment in the program would, as
74	74	determined by the board, promote the participation goals and
75	75	targets of the most recent revision of "Closing the Gaps," the
76	76	state's master plan for higher education; or
77	77	(C) who meet other criteria established by board
78	78	rule.
79	79	(b) Notwithstanding other law, for purposes of Subchapter
80	80	I, Chapter 659, Government Code:
81	81	(1) the Texas Save and Match program is considered an
82	82	eligible charitable organization entitled to participate in a state
83	83	employee charitable campaign under Subchapter I, Chapter 659,
84	84	Government Code; and
85	85	(2) a state employee is entitled to authorize a
86	86	payroll deduction for contributions to the Texas Save and Match
87	87	program as a charitable contribution under Section 659.132,
88	88	Government Code.
89	89	SECTION 6. Section 54.753(a), Education Code, is amended to
90	90	read as follows:
91	91	(a) Under the program, a purchaser may prepay the costs of
92	92	all or a portion of a beneficiary's undergraduate tuition and
93	93	required fees at a general academic teaching institution, two-year
94	94	institution of higher education, private or independent
95	95	institution of higher education, career school, or accredited
96	96	out-of-state institution of higher education by entering into a
97	97	prepaid tuition contract with the board to purchase one or more
98	98	tuition units of a type described by this section at the applicable
99	99	price established by the board for that type of unit for the year in
100	100	which the unit is purchased. The portion of the beneficiary's
101	101	undergraduate tuition and required fees for which a tuition unit
102	102	may be redeemed at a particular general academic teaching
103	103	institution or two-year institution of higher education is assigned
104	104	to the tuition unit at the time of purchase, and the tuition unit
105	105	may be redeemed to pay that portion of the tuition and fees at the
106	106	general academic teaching institution or two-year institution of
107	107	higher education in any academic year in which the unit is redeemed
108	108	in accordance with this subchapter. The purchaser may purchase one
109	109	type of unit or a combination of two or three types of units.
110	110	SECTION 7. Section 54.754(d), Education Code, is amended to
111	111	read as follows:
112	112	(d) If a beneficiary redeems fewer tuition units of the type
113	113	or combination of types necessary to pay the total cost of the
114	114	beneficiary's tuition and required fees at the general academic
115	115	teaching institution, two-year institution of higher education,
116	116	private or independent institution of higher education, career
117	117	school, or accredited out-of-state institution of higher education
118	118	at which the beneficiary enrolls, the beneficiary is responsible
119	119	for paying the amount of the difference between the amount of
120	120	tuition and required fees for which the beneficiary pays through
121	121	the redemption of one or more tuition units and the total cost of
122	122	the beneficiary's tuition and required fees at the institution.
123	123	SECTION 8. Sections 54.765(a), (b), (c), (f), and (g),
124	124	Education Code, are amended to read as follows:
125	125	(a) Except as provided by Subsection (h) [(e)], the
126	126	comptroller is the custodian of the assets of the fund.
127	127	(b) The comptroller shall pay money from the fund [on a
128	128	warrant drawn by the comptroller] supported only by [on] a voucher
129	129	signed by the comptroller or the comptroller's authorized
130	130	representative. The comptroller may designate the plan manager as
131	131	the comptroller's authorized representative to pay expenditures or
132	132	transfer funds under this section and Sections 54.766 and 54.767.
133	133	(c) When a beneficiary enrolls at a general academic
134	134	teaching institution or two-year institution of higher education,
135	135	on written authorization from the purchaser of the tuition unit or
136	136	units for that beneficiary, the comptroller or the comptroller's
137	137	authorized representative shall transfer to the institution an
138	138	amount equal to the lesser of:
139	139	(1) the sum of:
140	140	(A) the total purchase price of the tuition unit
141	141	or units the beneficiary redeems for the semester or other academic
142	142	term; and
143	143	(B) the amount determined under Subsection (d);
144	144	or
145	145	(2) an amount equal to 101 percent of the amount of
146	146	tuition and required fees covered by the tuition units being
147	147	redeemed.
148	148	(f) When a beneficiary enrolls at a private or independent
149	149	institution of higher education, career school, or accredited
150	150	out-of-state institution of higher education, on written
151	151	authorization from the purchaser of the tuition unit or units for
152	152	that beneficiary, the comptroller or the comptroller's authorized
153	153	representative shall transfer to the institution the lesser of:
154	154	(1) an amount equal to the current cost of the tuition
155	155	and required fees that would be covered by redemption of the number
156	156	and type of tuition units the beneficiary is redeeming if the
157	157	beneficiary were redeeming the unit or units at a general academic
158	158	teaching institution or two-year institution of higher education as
159	159	follows:
160	160	(A) for a Type I unit, at the general academic
161	161	teaching institution that[, in the sales year in which the unit was
162	162	purchased,] had the highest tuition and required fee cost;
163	163	(B) for a Type II unit, at a general academic
164	164	teaching institution that[, in the sales year in which the unit was
165	165	purchased,] had tuition and required fee cost at the weighted
166	166	average; and
167	167	(C) for a Type III unit, at a two-year
168	168	institution of higher education that[, in the sales year in which
169	169	the unit was purchased,] had tuition and required fee cost at the
170	170	weighted average; or
171	171	(2) an amount equal to the total purchase price of the
172	172	tuition unit or units the beneficiary redeems for the semester or
173	173	other academic term plus the portion of the total return on assets
174	174	of the fund attributable to that amount.
175	175	(g) The comptroller annually shall provide to the board a
176	176	sworn statement of the amount of the fund's assets in the
177	177	comptroller's or plan manager's custody. The plan manager shall
178	178	provide to the comptroller a quarterly report of all funds
179	179	distributed during the previous quarter. The comptroller may
180	180	require more frequent reports or may request that the plan manager
181	181	provide any additional information at any time necessary to ensure
182	182	that the fund's assets are adequately protected.
183	183	SECTION 9. Section 54.767, Education Code, is amended to
184	184	read as follows:
185	185	Sec. 54.767. USE OF FUND ASSETS. The assets of the fund may
186	186	be used only to:
187	187	(1) pay the costs of program administration and
188	188	operations;
189	189	(2) make payments to general academic teaching
190	190	institutions, two-year institutions of higher education, private
191	191	or independent institutions of higher education, career schools,
192	192	and accredited out-of-state institutions of higher education on
193	193	behalf of beneficiaries; and
194	194	(3) make refunds under prepaid tuition contracts.
195	195	SECTION 10. Section 54.7671(b), Education Code, is amended
196	196	to read as follows:
197	197	(b) For purposes of a transfer of money from an account
198	198	under this subchapter, the value of the account at the time of
199	199	transfer is the lesser of:
200	200	(1) an amount equal to the cost, at the time of the
201	201	transfer, of the tuition and required fees that would be covered by
202	202	redemption of the number and type of tuition units to be transferred
203	203	from the account if the beneficiary were redeeming the units at a
204	204	general academic teaching institution or two-year institution of
205	205	higher education as follows:
206	206	(A) for a Type I unit, at the general academic
207	207	teaching institution that[, in the sales year in which the unit was
208	208	purchased,] had the highest tuition and required fee cost;
209	209	(B) for a Type II unit, at a general academic
210	210	teaching institution that[, in the sales year in which the unit was
211	211	purchased,] had tuition and required fee cost at the weighted
212	212	average; and
213	213	(C) for a Type III unit, at a two-year
214	214	institution of higher education that[, in the sales year in which
215	215	the unit was purchased,] had tuition and required fee cost at the
216	216	weighted average; or
217	217	(2) an amount equal to the total purchase price of the
218	218	tuition units to be transferred from the account, plus the portion
219	219	of the total return on assets of the fund attributable to that
220	220	amount.
221	221	SECTION 11. Sections 54.769(b) and (c), Education Code, are
222	222	amended to read as follows:
223	223	(b) The rights of a purchaser, beneficiary, or successor in
224	224	interest of a purchaser or beneficiary in and under a prepaid
225	225	tuition contract and the payment of tuition and required fees for a
226	226	beneficiary under a prepaid tuition contract to a general academic
227	227	teaching institution, two-year institution of higher education,
228	228	private or independent institution of higher education, career
229	229	school, or accredited out-of-state institution of higher education
230	230	under this chapter are exempt from attachment, levy, garnishment,
231	231	execution, and seizure for the satisfaction of any debt, judgment,
232	232	or claim against a purchaser, beneficiary, or successor in interest
233	233	of a purchaser or beneficiary.
234	234	(c) A claim or judgment against a purchaser, beneficiary, or
235	235	successor in interest of a purchaser or beneficiary does not impair
236	236	or entitle the claim or judgment holder to assert or enforce a lien
237	237	against:
238	238	(1) the rights of a purchaser, beneficiary, or
239	239	successor in interest of a purchaser or beneficiary in and under a
240	240	prepaid tuition contract; or
241	241	(2) the right of a beneficiary to the payment of
242	242	tuition and required fees to a general academic teaching
243	243	institution, two-year institution of higher education, private or
244	244	independent institution of higher education, career school, or
245	245	accredited out-of-state institution of higher education under a
246	246	prepaid tuition contract.
247	247	SECTION 12. Section 54.774(a), Education Code, is amended
248	248	to read as follows:
249	249	(a) A prepaid tuition contract remains in effect after the
250	250	program is terminated if, when the program is terminated, the
251	251	beneficiary:
252	252	(1) has been accepted by or is enrolled at a general
253	253	academic teaching institution, two-year institution of higher
254	254	education, private or independent institution of higher education,
255	255	career school, or accredited out-of-state institution of higher
256	256	education; or
257	257	(2) is projected to graduate from high school not
258	258	later than the third anniversary of the date the program is
259	259	terminated.
260	260	SECTION 13. Section 54.775(b), Education Code, is amended
261	261	to read as follows:
262	262	(b) Notwithstanding Subsection (a), the board may release
263	263	information described by that subsection to a general academic
264	264	teaching institution, two-year institution of higher education,
265	265	private or independent institution of higher education, career
266	266	school, or accredited out-of-state institution of higher education
267	267	at which a beneficiary may enroll or is enrolled. The institution
268	268	shall keep the information confidential.
269	269	SECTION 14. The Texas Save and Match program is entitled to
270	270	participate in the state employee charitable campaign conducted
271	271	during the autumn of 2009 without regard to any limitation on the
272	272	time during which an organization must apply to participate in the
273	273	campaign.
274	274	SECTION 15. (a) If this Act takes effect immediately, a
275	275	state employee is entitled to enroll in the Texas tomorrow fund II
276	276	plan during the Employees Retirement System of Texas' annual open
277	277	enrollment period during the summer of 2009.
278	278	(b) If this Act takes effect September 1, 2009, it is the
279	279	legislature's intent that the Employees Retirement System of Texas
280	280	take the appropriate administrative actions necessary to ensure
281	281	that state employees be allowed to enroll in the Texas tomorrow fund
282	282	II plan effective September 1, 2009. Those administrative actions
283	283	may include allowing state employees to participate in the annual
284	284	open enrollment period during the summer of 2009.
285	285	SECTION 16. This Act takes effect immediately if it
286	286	receives a vote of two-thirds of all the members elected to each
287	287	house, as provided by Section 39, Article III, Texas Constitution.
288	288	If this Act does not receive the vote necessary for immediate
289	289	effect, this Act takes effect September 1, 2009.