Texas 2009 - 81st Regular

Texas Senate Bill SB1941 Compare Versions

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1	1	S.B. No. 1941
2	2
3	3
4	4	AN ACT
5	5	relating to the administration and operation of the state's
6	6	programs for prepaying or saving toward the costs of attending an
7	7	institution of higher education.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 54.603, Education Code, is amended to
10	10	read as follows:
11	11	Sec. 54.603. SUNSET PROVISION. The Prepaid Higher
12	12	Education Tuition Board is subject to Chapter 325, Government Code
13	13	(Texas Sunset Act). Unless continued in existence as provided by
14	14	that chapter, the board is abolished and the programs established
15	15	under this subchapter and under Subchapters [Subchapter] G and H
16	16	terminate September 1, 2019.
17	17	SECTION 2. Section 54.751, Education Code, is amended by
18	18	amending Subdivisions (2) and (6) and adding Subdivision (3-a) to
19	19	read as follows:
20	20	(2) "Beneficiary" means the person designated under a
21	21	prepaid tuition contract as the person entitled to apply one or more
22	22	tuition units purchased under the contract to the payment of the
23	23	person's undergraduate tuition and required fees at a general
24	24	academic teaching institution, two-year institution of higher
25	25	education, private or independent institution of higher education,
26	26	career school, or accredited out-of-state institution of higher
27	27	education.
28	28	(3-a) "Career school" means a career school or college
29	29	as defined by Section 132.001 that offers a two-year associate
30	30	degree as approved by the Texas Higher Education Coordinating
31	31	Board.
32	32	(6) "Prepaid tuition contract" means a contract under
33	33	which a person purchases from the board on behalf of a beneficiary
34	34	one or more tuition units that the beneficiary is entitled to apply
35	35	to the payment of the beneficiary's undergraduate tuition and
36	36	required fees at a general academic teaching institution, two-year
37	37	institution of higher education, private or independent
38	38	institution of higher education, career school, or accredited
39	39	out-of-state institution of higher education.
40	40	SECTION 3. Section 54.7521, Education Code, is amended to
41	41	read as follows:
42	42	Sec. 54.7521. TEXAS SAVE AND MATCH PROGRAM. (a) The board
43	43	by rule shall develop and shall implement the Texas Save and Match
44	44	program under which money paid by a purchaser under a prepaid
45	45	tuition contract may be matched with:
46	46	(1) contributions made by any person to the Texas Save
47	47	and Match program and used to purchase additional tuition units on
48	48	behalf of beneficiaries selected as provided by board rule; and
49	49	(2) money appropriated by the legislature for the
50	50	Texas Save and Match program and used to purchase additional
51	51	tuition units on behalf of beneficiaries:
52	52	(A) whose annual household income is below the
53	53	state median family income, adjusted for household size;
54	54	(B) whose enrollment in the program would, as
55	55	determined by the board, promote the participation goals and
56	56	targets of the most recent revision of "Closing the Gaps," the
57	57	state's master plan for higher education; or
58	58	(C) who meet other criteria established by board
59	59	rule.
60	60	(b) Notwithstanding other law, for purposes of Subchapter
61	61	I, Chapter 659, Government Code:
62	62	(1) the Texas Save and Match program is considered an
63	63	eligible charitable organization entitled to participate in a state
64	64	employee charitable campaign under Subchapter I, Chapter 659,
65	65	Government Code; and
66	66	(2) a state employee is entitled to authorize a
67	67	payroll deduction for contributions to the Texas Save and Match
68	68	program as a charitable contribution under Section 659.132,
69	69	Government Code.
70	70	SECTION 4. Subsection (a), Section 54.753, Education Code,
71	71	is amended to read as follows:
72	72	(a) Under the program, a purchaser may prepay the costs of
73	73	all or a portion of a beneficiary's undergraduate tuition and
74	74	required fees at a general academic teaching institution, two-year
75	75	institution of higher education, private or independent
76	76	institution of higher education, career school, or accredited
77	77	out-of-state institution of higher education by entering into a
78	78	prepaid tuition contract with the board to purchase one or more
79	79	tuition units of a type described by this section at the applicable
80	80	price established by the board for that type of unit for the year in
81	81	which the unit is purchased. The portion of the beneficiary's
82	82	undergraduate tuition and required fees for which a tuition unit
83	83	may be redeemed at a particular general academic teaching
84	84	institution or two-year institution of higher education is assigned
85	85	to the tuition unit at the time of purchase, and the tuition unit
86	86	may be redeemed to pay that portion of the tuition and fees at the
87	87	general academic teaching institution or two-year institution of
88	88	higher education in any academic year in which the unit is redeemed
89	89	in accordance with this subchapter. The purchaser may purchase one
90	90	type of unit or a combination of two or three types of units.
91	91	SECTION 5. Subsection (d), Section 54.754, Education Code,
92	92	is amended to read as follows:
93	93	(d) If a beneficiary redeems fewer tuition units of the type
94	94	or combination of types necessary to pay the total cost of the
95	95	beneficiary's tuition and required fees at the general academic
96	96	teaching institution, two-year institution of higher education,
97	97	private or independent institution of higher education, career
98	98	school, or accredited out-of-state institution of higher education
99	99	at which the beneficiary enrolls, the beneficiary is responsible
100	100	for paying the amount of the difference between the amount of
101	101	tuition and required fees for which the beneficiary pays through
102	102	the redemption of one or more tuition units and the total cost of
103	103	the beneficiary's tuition and required fees at the institution.
104	104	SECTION 6. Subsections (a), (b), (c), (f), and (g), Section
105	105	54.765, Education Code, are amended to read as follows:
106	106	(a) Except as provided by Subsection (h) [(e)], the
107	107	comptroller is the custodian of the assets of the fund.
108	108	(b) The comptroller shall pay money from the fund [on a
109	109	warrant drawn by the comptroller] supported only by [on] a voucher
110	110	signed by the comptroller or the comptroller's authorized
111	111	representative. The comptroller may designate the plan manager as
112	112	the comptroller's authorized representative to pay expenditures or
113	113	transfer funds under this section and Sections 54.766 and 54.767.
114	114	(c) When a beneficiary enrolls at a general academic
115	115	teaching institution or two-year institution of higher education,
116	116	on written authorization from the purchaser of the tuition unit or
117	117	units for that beneficiary, the comptroller or the comptroller's
118	118	authorized representative shall transfer to the institution an
119	119	amount equal to the lesser of:
120	120	(1) the sum of:
121	121	(A) the total purchase price of the tuition unit
122	122	or units the beneficiary redeems for the semester or other academic
123	123	term; and
124	124	(B) the amount determined under Subsection (d);
125	125	or
126	126	(2) an amount equal to 101 percent of the amount of
127	127	tuition and required fees covered by the tuition units being
128	128	redeemed.
129	129	(f) When a beneficiary enrolls at a private or independent
130	130	institution of higher education, career school, or accredited
131	131	out-of-state institution of higher education, on written
132	132	authorization from the purchaser of the tuition unit or units for
133	133	that beneficiary, the comptroller or the comptroller's authorized
134	134	representative shall transfer to the institution the lesser of:
135	135	(1) an amount equal to the current cost of the tuition
136	136	and required fees that would be covered by redemption of the number
137	137	and type of tuition units the beneficiary is redeeming if the
138	138	beneficiary were redeeming the unit or units at a general academic
139	139	teaching institution or two-year institution of higher education as
140	140	follows:
141	141	(A) for a Type I unit, at the general academic
142	142	teaching institution that[, in the sales year in which the unit was
143	143	purchased,] had the highest tuition and required fee cost;
144	144	(B) for a Type II unit, at a general academic
145	145	teaching institution that[, in the sales year in which the unit was
146	146	purchased,] had tuition and required fee cost at the weighted
147	147	average; and
148	148	(C) for a Type III unit, at a two-year
149	149	institution of higher education that[, in the sales year in which
150	150	the unit was purchased,] had tuition and required fee cost at the
151	151	weighted average; or
152	152	(2) an amount equal to the total purchase price of the
153	153	tuition unit or units the beneficiary redeems for the semester or
154	154	other academic term plus the portion of the total return on assets
155	155	of the fund attributable to that amount.
156	156	(g) The comptroller annually shall provide to the board a
157	157	sworn statement of the amount of the fund's assets in the
158	158	comptroller's or plan manager's custody. The plan manager shall
159	159	provide to the comptroller a quarterly report of all funds
160	160	distributed during the previous quarter. The comptroller may
161	161	require more frequent reports or may request that the plan manager
162	162	provide any additional information at any time necessary to ensure
163	163	that the fund's assets are adequately protected.
164	164	SECTION 7. Section 54.767, Education Code, is amended to
165	165	read as follows:
166	166	Sec. 54.767. USE OF FUND ASSETS. The assets of the fund may
167	167	be used only to:
168	168	(1) pay the costs of program administration and
169	169	operations;
170	170	(2) make payments to general academic teaching
171	171	institutions, two-year institutions of higher education, private
172	172	or independent institutions of higher education, career schools,
173	173	and accredited out-of-state institutions of higher education on
174	174	behalf of beneficiaries; and
175	175	(3) make refunds under prepaid tuition contracts.
176	176	SECTION 8. Subsection (b), Section 54.7671, Education Code,
177	177	is amended to read as follows:
178	178	(b) For purposes of a transfer of money from an account
179	179	under this subchapter, the value of the account at the time of
180	180	transfer is the lesser of:
181	181	(1) an amount equal to the cost, at the time of the
182	182	transfer, of the tuition and required fees that would be covered by
183	183	redemption of the number and type of tuition units to be transferred
184	184	from the account if the beneficiary were redeeming the units at a
185	185	general academic teaching institution or two-year institution of
186	186	higher education as follows:
187	187	(A) for a Type I unit, at the general academic
188	188	teaching institution that[, in the sales year in which the unit was
189	189	purchased,] had the highest tuition and required fee cost;
190	190	(B) for a Type II unit, at a general academic
191	191	teaching institution that[, in the sales year in which the unit was
192	192	purchased,] had tuition and required fee cost at the weighted
193	193	average; and
194	194	(C) for a Type III unit, at a two-year
195	195	institution of higher education that[, in the sales year in which
196	196	the unit was purchased,] had tuition and required fee cost at the
197	197	weighted average; or
198	198	(2) an amount equal to the total purchase price of the
199	199	tuition units to be transferred from the account, plus the portion
200	200	of the total return on assets of the fund attributable to that
201	201	amount.
202	202	SECTION 9. Subsections (b) and (c), Section 54.769,
203	203	Education Code, are amended to read as follows:
204	204	(b) The rights of a purchaser, beneficiary, or successor in
205	205	interest of a purchaser or beneficiary in and under a prepaid
206	206	tuition contract and the payment of tuition and required fees for a
207	207	beneficiary under a prepaid tuition contract to a general academic
208	208	teaching institution, two-year institution of higher education,
209	209	private or independent institution of higher education, career
210	210	school, or accredited out-of-state institution of higher education
211	211	under this chapter are exempt from attachment, levy, garnishment,
212	212	execution, and seizure for the satisfaction of any debt, judgment,
213	213	or claim against a purchaser, beneficiary, or successor in interest
214	214	of a purchaser or beneficiary.
215	215	(c) A claim or judgment against a purchaser, beneficiary, or
216	216	successor in interest of a purchaser or beneficiary does not impair
217	217	or entitle the claim or judgment holder to assert or enforce a lien
218	218	against:
219	219	(1) the rights of a purchaser, beneficiary, or
220	220	successor in interest of a purchaser or beneficiary in and under a
221	221	prepaid tuition contract; or
222	222	(2) the right of a beneficiary to the payment of
223	223	tuition and required fees to a general academic teaching
224	224	institution, two-year institution of higher education, private or
225	225	independent institution of higher education, career school, or
226	226	accredited out-of-state institution of higher education under a
227	227	prepaid tuition contract.
228	228	SECTION 10. Subsection (a), Section 54.774, Education Code,
229	229	is amended to read as follows:
230	230	(a) A prepaid tuition contract remains in effect after the
231	231	program is terminated if, when the program is terminated, the
232	232	beneficiary:
233	233	(1) has been accepted by or is enrolled at a general
234	234	academic teaching institution, two-year institution of higher
235	235	education, private or independent institution of higher education,
236	236	career school, or accredited out-of-state institution of higher
237	237	education; or
238	238	(2) is projected to graduate from high school not
239	239	later than the third anniversary of the date the program is
240	240	terminated.
241	241	SECTION 11. Subsection (b), Section 54.775, Education Code,
242	242	is amended to read as follows:
243	243	(b) Notwithstanding Subsection (a), the board may release
244	244	information described by that subsection to a general academic
245	245	teaching institution, two-year institution of higher education,
246	246	private or independent institution of higher education, career
247	247	school, or accredited out-of-state institution of higher education
248	248	at which a beneficiary may enroll or is enrolled. The institution
249	249	shall keep the information confidential.
250	250	SECTION 12. The Texas Save and Match program is entitled to
251	251	participate in the state employee charitable campaign conducted
252	252	during the autumn of 2009 without regard to any limitation on the
253	253	time during which an organization must apply to participate in the
254	254	campaign.
255	255	SECTION 13. This Act takes effect immediately if it
256	256	receives a vote of two-thirds of all the members elected to each
257	257	house, as provided by Section 39, Article III, Texas Constitution.
258	258	If this Act does not receive the vote necessary for immediate
259	259	effect, this Act takes effect September 1, 2009.
260	260	______________________________ ______________________________
261	261	President of the Senate Speaker of the House
262	262	I hereby certify that S.B. No. 1941 passed the Senate on
263	263	April 23, 2009, by the following vote: Yeas 30, Nays 0.
264	264	______________________________
265	265	Secretary of the Senate
266	266	I hereby certify that S.B. No. 1941 passed the House on
267	267	May 26, 2009, by the following vote: Yeas 145, Nays 0, one
268	268	present not voting.
269	269	______________________________
270	270	Chief Clerk of the House
271	271	Approved:
272	272	______________________________
273	273	Date
274	274	______________________________
275	275	Governor