Bill Text: TX HB3655 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: 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.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-10 - Effective immediately [HB3655 Detail]
Download: Texas-2019-HB3655-Enrolled.html
H.B. No. 3655 |
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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. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 54.602, Education Code, is amended by | ||
adding Subsection (c) to read as follows: | ||
(c) Unless otherwise specified, the provisions of this | ||
subchapter concerning the following requirements applicable to the | ||
board under this subchapter also apply to the board for purposes of | ||
Subchapters G, H, I, and J of this chapter: | ||
(1) membership; | ||
(2) appointments of members; | ||
(3) removal of members; | ||
(4) ethics policy; | ||
(5) training; | ||
(6) board officers; | ||
(7) compensation; | ||
(8) meetings; | ||
(9) public interest information and complaints; | ||
(10) use of technology; | ||
(11) program and facility accessibility; | ||
(12) executive director; and | ||
(13) staff. | ||
SECTION 2. Section 54.633, Education Code, is amended by | ||
adding Subsection (n) to read as follows: | ||
(n) If the comptroller determines that the purpose of a | ||
direct-support organization established under Subsection (e) has | ||
been substantially complied with, the comptroller may dissolve the | ||
organization. On dissolution, the title to all funds and | ||
properties then owned by the organization shall transfer to the | ||
Texas Match the Promise Foundation. | ||
SECTION 3. Section 54.641(a), Education Code, is amended to | ||
read as follows: | ||
(a) Not later than January 31 [ |
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shall furnish without charge to each purchaser a statement of: | ||
(1) the amount paid by the purchaser under the prepaid | ||
tuition contract; | ||
(2) the number of credit hours originally covered by | ||
the contract; | ||
(3) the number of credit hours remaining under the | ||
contract; and | ||
(4) any other information the board determines by rule | ||
is necessary or appropriate. | ||
SECTION 4. Section 54.701(8), Education Code, is amended to | ||
read as follows: | ||
(8) "Qualified higher education expenses" has the | ||
meaning assigned by [ |
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amended. | ||
SECTION 5. Section 54.702(a), Education Code, is amended to | ||
read as follows: | ||
(a) The board shall: | ||
(1) develop and implement the plan in a manner | ||
consistent with this subchapter; | ||
(2) select the financial institution or institutions | ||
to serve as plan manager; and | ||
(3) adopt rules to implement this subchapter | ||
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SECTION 6. The heading to Section 54.708, Education Code, | ||
is amended to read as follows: | ||
Sec. 54.708. CONTRIBUTIONS AND WITHDRAWALS[ |
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SECTION 7. Section 54.708(b), Education Code, is amended to | ||
read as follows: | ||
(b) An account owner may withdraw all or part of the balance | ||
of an account on prior notice as authorized by board rules. [ |
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SECTION 8. Sections 54.751(2), (6), and (7), Education | ||
Code, are amended to read as follows: | ||
(2) "Beneficiary" means the person designated under a | ||
prepaid tuition contract as the person entitled to apply one or more | ||
tuition units purchased under the contract to the payment of the | ||
person's undergraduate tuition and required fees at a general | ||
academic teaching institution, two-year institution of higher | ||
education, private or independent institution of higher education, | ||
medical and dental unit, career school, or accredited out-of-state | ||
institution of higher education. | ||
(6) "Prepaid tuition contract" means a contract under | ||
which a person purchases from the board on behalf of a beneficiary | ||
one or more tuition units that the beneficiary is entitled to apply | ||
to the payment of the beneficiary's undergraduate tuition and | ||
required fees at a general academic teaching institution, two-year | ||
institution of higher education, private or independent | ||
institution of higher education, medical and dental unit, career | ||
school, or accredited out-of-state institution of higher | ||
education. | ||
(7) "Medical and dental unit," "private [ |
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independent institution of higher education," "public junior | ||
college," "public state college," "public technical institute," | ||
and "recognized accrediting agency" have the meanings assigned by | ||
Section 61.003. | ||
SECTION 9. Section 54.753, Education Code, is amended by | ||
amending Subsection (a) and adding Subsection (c-1) to read as | ||
follows: | ||
(a) Under the program, a purchaser may prepay the costs of | ||
all or a portion of a beneficiary's undergraduate tuition and | ||
required fees at a general academic teaching institution, two-year | ||
institution of higher education, private or independent | ||
institution of higher education, medical and dental unit, career | ||
school, or accredited out-of-state institution of higher education | ||
by entering into a prepaid tuition contract with the board to | ||
purchase one or more tuition units of a type described by this | ||
section at the applicable price established by the board for that | ||
type of unit for the year in which the unit is purchased. The | ||
portion of the beneficiary's undergraduate tuition and required | ||
fees for which a tuition unit may be redeemed at a particular | ||
general academic teaching institution or two-year institution of | ||
higher education is assigned to the tuition unit at the time of | ||
purchase, and the tuition unit may be redeemed to pay that portion | ||
of the tuition and fees at the general academic teaching | ||
institution or two-year institution of higher education in any | ||
academic year in which the unit is redeemed in accordance with this | ||
subchapter. The purchaser may purchase one type of unit or a | ||
combination of two or three types of units. | ||
(c-1) On or before June 1, each general academic teaching | ||
institution and each two-year institution of higher education shall | ||
annually provide information for the next fall semester to the | ||
board in a format requested by the board, to assist the board in | ||
determining tuition unit sales prices for the next sales period and | ||
redemption values for the next academic year. | ||
SECTION 10. Sections 54.754(a) and (d), Education Code, are | ||
amended to read as follows: | ||
(a) In accordance with this subchapter, when a beneficiary | ||
under a prepaid tuition contract redeems one or more tuition units | ||
to pay costs of tuition and required fees, the board shall apply | ||
money in the fund, in the amount provided by Section 54.765 to pay | ||
all or the applicable portion of the costs of the beneficiary's | ||
tuition and required fees at the general academic teaching | ||
institution, two-year institution of higher education, private or | ||
independent institution of higher education, medical and dental | ||
unit, or accredited out-of-state institution of higher education in | ||
which the beneficiary enrolls. Subject to Subsection (b)(2) and the | ||
other provisions of this section, a beneficiary may redeem any type | ||
of tuition unit for attendance at an institution or unit described | ||
by this section. A general academic teaching institution or | ||
two-year institution of higher education shall accept the amount | ||
transferred to the institution under Section 54.765(c) when the | ||
unit or units are redeemed as payment for all or the applicable | ||
portion of the beneficiary's tuition and required fees. | ||
(d) If a beneficiary redeems fewer tuition units of the type | ||
or combination of types necessary to pay the total cost of the | ||
beneficiary's tuition and required fees at the general academic | ||
teaching institution, two-year institution of higher education, | ||
private or independent institution of higher education, medical and | ||
dental unit, career school, or accredited out-of-state institution | ||
of higher education at which the beneficiary enrolls, the | ||
beneficiary is responsible for paying the amount of the difference | ||
between the amount of tuition and required fees for which the | ||
beneficiary pays through the redemption of one or more tuition | ||
units and the total cost of the beneficiary's tuition and required | ||
fees at the institution or unit. | ||
SECTION 11. Section 54.765(f), Education Code, is amended | ||
to read as follows: | ||
(f) When a beneficiary enrolls at a private or independent | ||
institution of higher education, medical and dental unit, career | ||
school, or accredited out-of-state institution of higher | ||
education, on written authorization from the purchaser of the | ||
tuition unit or units for that beneficiary, the comptroller or the | ||
comptroller's authorized representative shall transfer to the | ||
institution the lesser of: | ||
(1) an amount equal to the current cost of the tuition | ||
and required fees that would be covered by redemption of the number | ||
and type of tuition units the beneficiary is redeeming if the | ||
beneficiary were redeeming the unit or units at a general academic | ||
teaching institution or two-year institution of higher education as | ||
follows: | ||
(A) for a Type I unit, at the general academic | ||
teaching institution that had the highest tuition and required fee | ||
cost; | ||
(B) for a Type II unit, at a general academic | ||
teaching institution that had tuition and required fee cost at the | ||
weighted average; and | ||
(C) for a Type III unit, at a two-year | ||
institution of higher education that had tuition and required fee | ||
cost at the weighted average; or | ||
(2) an amount equal to the total purchase price of the | ||
tuition unit or units the beneficiary redeems for the semester or | ||
other academic term plus the portion of the total return on assets | ||
of the fund attributable to that amount. | ||
SECTION 12. Section 54.767, Education Code, is amended to | ||
read as follows: | ||
Sec. 54.767. USE OF FUND ASSETS. The assets of the fund may | ||
be used only to: | ||
(1) pay the costs of program administration and | ||
operations; | ||
(2) make payments to general academic teaching | ||
institutions, two-year institutions of higher education, private | ||
or independent institutions of higher education, medical and dental | ||
units, career schools, and accredited out-of-state institutions of | ||
higher education on behalf of beneficiaries; and | ||
(3) make refunds under prepaid tuition contracts. | ||
SECTION 13. Sections 54.769(b) and (c), Education Code, are | ||
amended to read as follows: | ||
(b) The rights of a purchaser, beneficiary, or successor in | ||
interest of a purchaser or beneficiary in and under a prepaid | ||
tuition contract and the payment of tuition and required fees for a | ||
beneficiary under a prepaid tuition contract to a general academic | ||
teaching institution, two-year institution of higher education, | ||
private or independent institution of higher education, medical and | ||
dental unit, career school, or accredited out-of-state institution | ||
of higher education under this chapter are exempt from attachment, | ||
levy, garnishment, execution, and seizure for the satisfaction of | ||
any debt, judgment, or claim against a purchaser, beneficiary, or | ||
successor in interest of a purchaser or beneficiary. | ||
(c) A claim or judgment against a purchaser, beneficiary, or | ||
successor in interest of a purchaser or beneficiary does not impair | ||
or entitle the claim or judgment holder to assert or enforce a lien | ||
against: | ||
(1) the rights of a purchaser, beneficiary, or | ||
successor in interest of a purchaser or beneficiary in and under a | ||
prepaid tuition contract; or | ||
(2) the right of a beneficiary to the payment of | ||
tuition and required fees to a general academic teaching | ||
institution, two-year institution of higher education, private or | ||
independent institution of higher education, medical and dental | ||
unit, career school, or accredited out-of-state institution of | ||
higher education under a prepaid tuition contract. | ||
SECTION 14. Section 54.774(a), Education Code, is amended | ||
to read as follows: | ||
(a) A prepaid tuition contract remains in effect after the | ||
program is terminated if, when the program is terminated, the | ||
beneficiary: | ||
(1) has been accepted by or is enrolled at a general | ||
academic teaching institution, two-year institution of higher | ||
education, private or independent institution of higher education, | ||
medical and dental unit, career school, or accredited out-of-state | ||
institution of higher education; or | ||
(2) is projected to graduate from high school not | ||
later than the third anniversary of the date the program is | ||
terminated. | ||
SECTION 15. Section 54.775(b), Education Code, is amended | ||
to read as follows: | ||
(b) Notwithstanding Subsection (a), the board may release | ||
information described by that subsection to a general academic | ||
teaching institution, two-year institution of higher education, | ||
private or independent institution of higher education, medical and | ||
dental unit, career school, or accredited out-of-state institution | ||
of higher education at which a beneficiary may enroll or is | ||
enrolled. The institution or unit shall keep the information | ||
confidential. | ||
SECTION 16. Section 54.776, Education Code, is amended to | ||
read as follows: | ||
Sec. 54.776. STATEMENT REGARDING STATUS OF PREPAID TUITION | ||
CONTRACT. Not later than January 31 [ |
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shall provide without charge to each purchaser a statement of: | ||
(1) the amount paid by the purchaser under the prepaid | ||
tuition contract; | ||
(2) the total number of each type of tuition unit | ||
covered by the contract at any one time; | ||
(3) the number of each type of tuition unit remaining | ||
under the contract; | ||
(4) the value of the purchasers' tuition units if | ||
redeemed at any general academic teaching institution or two-year | ||
institution of higher education designated for that year by the | ||
purchaser in the time and manner required by the board, not to | ||
exceed five institutions; and | ||
(5) any other information the board determines by rule | ||
is necessary or appropriate. | ||
SECTION 17. Sections 54.708(c), (d), (e), and (f), | ||
Education Code, are repealed. | ||
SECTION 18. This Act takes effect immediately if it | ||
receives a vote of two-thirds of all the members elected to each | ||
house, as provided by Section 39, Article III, Texas Constitution. | ||
If this Act does not receive the vote necessary for immediate | ||
effect, this Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3655 was passed by the House on May 3, | ||
2019, by the following vote: Yeas 136, Nays 4, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 3655 on May 22, 2019, by the following vote: Yeas 145, Nays 0, | ||
1 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3655 was passed by the Senate, with | ||
amendments, on May 14, 2019, by the following vote: Yeas 31, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |