Texas 2019 - 86th Regular

Texas House Bill HB3655 Compare Versions

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Version 2 (New)

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1		-	H.B. No. 3655
	1	+	By: Turner of Tarrant (Senate Sponsor - Buckingham) H.B. No. 3655
	2	+	(In the Senate - Received from the House May 6, 2019;
	3	+	May 6, 2019, read first time and referred to Committee on Higher
	4	+	Education; May 9, 2019, reported favorably by the following vote:
	5	+	Yeas 8, Nays 0; May 9, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the administration and operation of the state's
6	12		programs for paying, prepaying, or saving toward the costs of
7	13		attending an institution of higher education, including the powers
8	14		and duties of the Prepaid Higher Education Tuition Board.
9	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	16		SECTION 1. Section 54.602, Education Code, is amended by
11	17		adding Subsection (c) to read as follows:
12	18		(c) Unless otherwise specified, the provisions of this
13	19		subchapter concerning the following requirements applicable to the
14	20		board under this subchapter also apply to the board for purposes of
15	21		Subchapters G, H, I, and J of this chapter:
16	22		(1) membership;
17	23		(2) appointments of members;
18	24		(3) removal of members;
19	25		(4) ethics policy;
20	26		(5) training;
21	27		(6) board officers;
22	28		(7) compensation;
23	29		(8) meetings;
24	30		(9) public interest information and complaints;
25	31		(10) use of technology;
26	32		(11) program and facility accessibility;
27	33		(12) executive director; and
28	34		(13) staff.
29		-	SECTION 2. Section 54.633, Education Code, is amended by
30		-	adding Subsection (n) to read as follows:
31		-	(n) If the comptroller determines that the purpose of a
32		-	direct-support organization established under Subsection (e) has
33		-	been substantially complied with, the comptroller may dissolve the
34		-	organization. On dissolution, the title to all funds and
35		-	properties then owned by the organization shall transfer to the
36		-	Texas Match the Promise Foundation.
37		-	SECTION 3. Section 54.641(a), Education Code, is amended to
	35	+	SECTION 2. Section 54.641(a), Education Code, is amended to
38	36		read as follows:
39	37		(a) Not later than January 31 [1] of each year, the board
40	38		shall furnish without charge to each purchaser a statement of:
41	39		(1) the amount paid by the purchaser under the prepaid
42	40		tuition contract;
43	41		(2) the number of credit hours originally covered by
44	42		the contract;
45	43		(3) the number of credit hours remaining under the
46	44		contract; and
47	45		(4) any other information the board determines by rule
48	46		is necessary or appropriate.
49		-	SECTION 4. Section 54.701(8), Education Code, is amended to
	47	+	SECTION 3. Section 54.701(8), Education Code, is amended to
50	48		read as follows:
51	49		(8) "Qualified higher education expenses" has the
52	50		meaning assigned by [means tuition, fees, or expenses for books,
53	51		supplies, and equipment required for the enrollment or attendance
54	52		of an individual at an eligible educational institution, the costs
55	53		of room and board, and any other higher education expenses that may
56	54		be permitted under] Section 529, Internal Revenue Code of 1986, as
57	55		amended.
58		-	SECTION 5. Section 54.702(a), Education Code, is amended to
	56	+	SECTION 4. Section 54.702(a), Education Code, is amended to
59	57		read as follows:
60	58		(a) The board shall:
61	59		(1) develop and implement the plan in a manner
62	60		consistent with this subchapter;
63	61		(2) select the financial institution or institutions
64	62		to serve as plan manager; and
65	63		(3) adopt rules to implement this subchapter
66	64		[governing withdrawal of money from a savings trust account and
67	65		develop policies and penalties for nonqualified withdrawals].
68		-	SECTION 6. The heading to Section 54.708, Education Code,
	66	+	SECTION 5. The heading to Section 54.708, Education Code,
69	67		is amended to read as follows:
70	68		Sec. 54.708. CONTRIBUTIONS AND WITHDRAWALS[; PENALTY FOR
71	69		NONQUALIFIED WITHDRAWAL].
72		-	SECTION 7. Section 54.708(b), Education Code, is amended to
	70	+	SECTION 6. Section 54.708(b), Education Code, is amended to
73	71		read as follows:
74	72		(b) An account owner may withdraw all or part of the balance
75	73		of an account on prior notice as authorized by board rules. [The
76	74		board shall adopt rules governing the determination whether a
77	75		withdrawal is a qualified withdrawal or a nonqualified withdrawal.
78	76		The rules may require an account owner requesting to make a
79	77		qualified withdrawal to provide a certification of qualified higher
80	78		education expenses.]
81		-	SECTION 8. Sections 54.751(2), (6), and (7), Education
	79	+	SECTION 7. Sections 54.751(2), (6), and (7), Education
82	80		Code, are amended to read as follows:
83	81		(2) "Beneficiary" means the person designated under a
84	82		prepaid tuition contract as the person entitled to apply one or more
85	83		tuition units purchased under the contract to the payment of the
86	84		person's undergraduate tuition and required fees at a general
87	85		academic teaching institution, two-year institution of higher
88	86		education, private or independent institution of higher education,
89	87		medical and dental unit, career school, or accredited out-of-state
90	88		institution of higher education.
91	89		(6) "Prepaid tuition contract" means a contract under
92	90		which a person purchases from the board on behalf of a beneficiary
93	91		one or more tuition units that the beneficiary is entitled to apply
94	92		to the payment of the beneficiary's undergraduate tuition and
95	93		required fees at a general academic teaching institution, two-year
96	94		institution of higher education, private or independent
97	95		institution of higher education, medical and dental unit, career
98	96		school, or accredited out-of-state institution of higher
99	97		education.
100	98		(7) "Medical and dental unit," "private ["Private] or
101	99		independent institution of higher education," "public junior
102	100		college," "public state college," "public technical institute,"
103	101		and "recognized accrediting agency" have the meanings assigned by
104	102		Section 61.003.
105		-	SECTION 9. Section 54.753, Education Code, is amended by
	103	+	SECTION 8. Section 54.753, Education Code, is amended by
106	104		amending Subsection (a) and adding Subsection (c-1) to read as
107	105		follows:
108	106		(a) Under the program, a purchaser may prepay the costs of
109	107		all or a portion of a beneficiary's undergraduate tuition and
110	108		required fees at a general academic teaching institution, two-year
111	109		institution of higher education, private or independent
112	110		institution of higher education, medical and dental unit, career
113	111		school, or accredited out-of-state institution of higher education
114	112		by entering into a prepaid tuition contract with the board to
115	113		purchase one or more tuition units of a type described by this
116	114		section at the applicable price established by the board for that
117	115		type of unit for the year in which the unit is purchased. The
118	116		portion of the beneficiary's undergraduate tuition and required
119	117		fees for which a tuition unit may be redeemed at a particular
120	118		general academic teaching institution or two-year institution of
121	119		higher education is assigned to the tuition unit at the time of
122	120		purchase, and the tuition unit may be redeemed to pay that portion
123	121		of the tuition and fees at the general academic teaching
124	122		institution or two-year institution of higher education in any
125	123		academic year in which the unit is redeemed in accordance with this
126	124		subchapter. The purchaser may purchase one type of unit or a
127	125		combination of two or three types of units.
128	126		(c-1) On or before June 1, each general academic teaching
129	127		institution and each two-year institution of higher education shall
130	128		annually provide information for the next fall semester to the
131	129		board in a format requested by the board, to assist the board in
132	130		determining tuition unit sales prices for the next sales period and
133	131		redemption values for the next academic year.
134		-	SECTION 10. Sections 54.754(a) and (d), Education Code, are
	132	+	SECTION 9. Sections 54.754(a) and (d), Education Code, are
135	133		amended to read as follows:
136	134		(a) In accordance with this subchapter, when a beneficiary
137	135		under a prepaid tuition contract redeems one or more tuition units
138	136		to pay costs of tuition and required fees, the board shall apply
139	137		money in the fund, in the amount provided by Section 54.765 to pay
140	138		all or the applicable portion of the costs of the beneficiary's
141	139		tuition and required fees at the general academic teaching
142	140		institution, two-year institution of higher education, private or
143	141		independent institution of higher education, medical and dental
144	142		unit, or accredited out-of-state institution of higher education in
145	143		which the beneficiary enrolls. Subject to Subsection (b)(2) and the
146	144		other provisions of this section, a beneficiary may redeem any type
147	145		of tuition unit for attendance at an institution or unit described
148	146		by this section. A general academic teaching institution or
149	147		two-year institution of higher education shall accept the amount
150	148		transferred to the institution under Section 54.765(c) when the
151	149		unit or units are redeemed as payment for all or the applicable
152	150		portion of the beneficiary's tuition and required fees.
153	151		(d) If a beneficiary redeems fewer tuition units of the type
154	152		or combination of types necessary to pay the total cost of the
155	153		beneficiary's tuition and required fees at the general academic
156	154		teaching institution, two-year institution of higher education,
157	155		private or independent institution of higher education, medical and
158	156		dental unit, career school, or accredited out-of-state institution
159	157		of higher education at which the beneficiary enrolls, the
160	158		beneficiary is responsible for paying the amount of the difference
161	159		between the amount of tuition and required fees for which the
162	160		beneficiary pays through the redemption of one or more tuition
163	161		units and the total cost of the beneficiary's tuition and required
164	162		fees at the institution or unit.
165		-	SECTION 11. Section 54.765(f), Education Code, is amended
	163	+	SECTION 10. Section 54.765(f), Education Code, is amended
166	164		to read as follows:
167	165		(f) When a beneficiary enrolls at a private or independent
168	166		institution of higher education, medical and dental unit, career
169	167		school, or accredited out-of-state institution of higher
170	168		education, on written authorization from the purchaser of the
171	169		tuition unit or units for that beneficiary, the comptroller or the
172	170		comptroller's authorized representative shall transfer to the
173	171		institution the lesser of:
174	172		(1) an amount equal to the current cost of the tuition
175	173		and required fees that would be covered by redemption of the number
176	174		and type of tuition units the beneficiary is redeeming if the
177	175		beneficiary were redeeming the unit or units at a general academic
178	176		teaching institution or two-year institution of higher education as
179	177		follows:
180	178		(A) for a Type I unit, at the general academic
181	179		teaching institution that had the highest tuition and required fee
182	180		cost;
183	181		(B) for a Type II unit, at a general academic
184	182		teaching institution that had tuition and required fee cost at the
185	183		weighted average; and
186	184		(C) for a Type III unit, at a two-year
187	185		institution of higher education that had tuition and required fee
188	186		cost at the weighted average; or
189	187		(2) an amount equal to the total purchase price of the
190	188		tuition unit or units the beneficiary redeems for the semester or
191	189		other academic term plus the portion of the total return on assets
192	190		of the fund attributable to that amount.
193		-	SECTION 12. Section 54.767, Education Code, is amended to
	191	+	SECTION 11. Section 54.767, Education Code, is amended to
194	192		read as follows:
195	193		Sec. 54.767. USE OF FUND ASSETS. The assets of the fund may
196	194		be used only to:
197	195		(1) pay the costs of program administration and
198	196		operations;
199	197		(2) make payments to general academic teaching
200	198		institutions, two-year institutions of higher education, private
201	199		or independent institutions of higher education, medical and dental
202	200		units, career schools, and accredited out-of-state institutions of
203	201		higher education on behalf of beneficiaries; and
204	202		(3) make refunds under prepaid tuition contracts.
205		-	SECTION 13. Sections 54.769(b) and (c), Education Code, are
	203	+	SECTION 12. Sections 54.769(b) and (c), Education Code, are
206	204		amended to read as follows:
207	205		(b) The rights of a purchaser, beneficiary, or successor in
208	206		interest of a purchaser or beneficiary in and under a prepaid
209	207		tuition contract and the payment of tuition and required fees for a
210	208		beneficiary under a prepaid tuition contract to a general academic
211	209		teaching institution, two-year institution of higher education,
212	210		private or independent institution of higher education, medical and
213	211		dental unit, career school, or accredited out-of-state institution
214	212		of higher education under this chapter are exempt from attachment,
215	213		levy, garnishment, execution, and seizure for the satisfaction of
216	214		any debt, judgment, or claim against a purchaser, beneficiary, or
217	215		successor in interest of a purchaser or beneficiary.
218	216		(c) A claim or judgment against a purchaser, beneficiary, or
219	217		successor in interest of a purchaser or beneficiary does not impair
220	218		or entitle the claim or judgment holder to assert or enforce a lien
221	219		against:
222	220		(1) the rights of a purchaser, beneficiary, or
223	221		successor in interest of a purchaser or beneficiary in and under a
224	222		prepaid tuition contract; or
225	223		(2) the right of a beneficiary to the payment of
226	224		tuition and required fees to a general academic teaching
227	225		institution, two-year institution of higher education, private or
228	226		independent institution of higher education, medical and dental
229	227		unit, career school, or accredited out-of-state institution of
230	228		higher education under a prepaid tuition contract.
231		-	SECTION 14. Section 54.774(a), Education Code, is amended
	229	+	SECTION 13. Section 54.774(a), Education Code, is amended
232	230		to read as follows:
233	231		(a) A prepaid tuition contract remains in effect after the
234	232		program is terminated if, when the program is terminated, the
235	233		beneficiary:
236	234		(1) has been accepted by or is enrolled at a general
237	235		academic teaching institution, two-year institution of higher
238	236		education, private or independent institution of higher education,
239	237		medical and dental unit, career school, or accredited out-of-state
240	238		institution of higher education; or
241	239		(2) is projected to graduate from high school not
242	240		later than the third anniversary of the date the program is
243	241		terminated.
244		-	SECTION 15. Section 54.775(b), Education Code, is amended
	242	+	SECTION 14. Section 54.775(b), Education Code, is amended
245	243		to read as follows:
246	244		(b) Notwithstanding Subsection (a), the board may release
247	245		information described by that subsection to a general academic
248	246		teaching institution, two-year institution of higher education,
249	247		private or independent institution of higher education, medical and
250	248		dental unit, career school, or accredited out-of-state institution
251	249		of higher education at which a beneficiary may enroll or is
252	250		enrolled. The institution or unit shall keep the information
253	251		confidential.
254		-	SECTION 16. Section 54.776, Education Code, is amended to
	252	+	SECTION 15. Section 54.776, Education Code, is amended to
255	253		read as follows:
256	254		Sec. 54.776. STATEMENT REGARDING STATUS OF PREPAID TUITION
257	255		CONTRACT. Not later than January 31 [1] of each year, the board
258	256		shall provide without charge to each purchaser a statement of:
259	257		(1) the amount paid by the purchaser under the prepaid
260	258		tuition contract;
261	259		(2) the total number of each type of tuition unit
262	260		covered by the contract at any one time;
263	261		(3) the number of each type of tuition unit remaining
264	262		under the contract;
265	263		(4) the value of the purchasers' tuition units if
266	264		redeemed at any general academic teaching institution or two-year
267	265		institution of higher education designated for that year by the
268	266		purchaser in the time and manner required by the board, not to
269	267		exceed five institutions; and
270	268		(5) any other information the board determines by rule
271	269		is necessary or appropriate.
272		-	SECTION 17. Sections 54.708(c), (d), (e), and (f),
	270	+	SECTION 16. Sections 54.708(c), (d), (e), and (f),
273	271		Education Code, are repealed.
274		-	SECTION 18. This Act takes effect immediately if it
	272	+	SECTION 17. This Act takes effect immediately if it
275	273		receives a vote of two-thirds of all the members elected to each
276	274		house, as provided by Section 39, Article III, Texas Constitution.
277	275		If this Act does not receive the vote necessary for immediate
278	276		effect, this Act takes effect September 1, 2019.
279		-	______________________________ ______________________________
280		-	President of the Senate Speaker of the House
281		-	I certify that H.B. No. 3655 was passed by the House on May 3,
282		-	2019, by the following vote: Yeas 136, Nays 4, 2 present, not
283		-	voting; and that the House concurred in Senate amendments to H.B.
284		-	No. 3655 on May 22, 2019, by the following vote: Yeas 145, Nays 0,
285		-	1 present, not voting.
286		-	______________________________
287		-	Chief Clerk of the House
288		-	I certify that H.B. No. 3655 was passed by the Senate, with
289		-	amendments, on May 14, 2019, by the following vote: Yeas 31, Nays
290		-	0.
291		-	______________________________
292		-	Secretary of the Senate
293		-	APPROVED: __________________
294		-	Date
295		-	__________________
296		-	Governor
	277	+	* * * * *