Texas Senate Bill SB1664

Texas 2019 - 86th Regular

Caption

Relating to the administration and operation of the state's programs for paying, prepaying, or saving toward the costs of attending an institution of higher education, including the powers and duties of the Prepaid Higher Education Tuition Board.

Impact

The amendments proposed in SB1664 are intended to modernize and streamline the processes involved in prepaid tuition contracts. Key adjustments include stipulations that allow account owners to withdraw funds with prior notice, with an overview of qualified withdrawals. Such provisions are designed to increase accessibility and flexibility for individuals investing in their or their children's education. Furthermore, the bill outlines the role of the board in establishing tuition unit prices and redemption values annually, promoting transparency in how benefits are calculated and shared with participants.

Summary

SB1664 is a legislative proposal aimed at enhancing the administration and operation of Texas' prepaid tuition programs, which allow beneficiaries to pay or save for the costs associated with attending institutions of higher education. This bill primarily focuses on establishing clearer guidelines and expanding the roles of the Prepaid Higher Education Tuition Board, ensuring they can effectively manage these programs. It emphasizes the need for the board to develop plans consistent with existing legislation and to oversee the pricing and redemption process for prepaid tuition units that beneficiaries can utilize at participating educational institutions.

Contention

While SB1664 seeks to enhance the structure of prepaid tuition programs, its potential impact on existing regulations may generate discussions regarding fairness and accessibility. Critics may raise concerns about the complexities of tuition units and whether they adequately address the rising costs of education. The bill proposes the collection of sensitive information and the board's discretion in determining the types of institutions eligible for contracts, which may lead to debates over equity in educational financing. Such discussions will be vital as the legislature evaluates how to improve higher education funding without compromising service delivery to diverse student populations.