Enrolled Bill Summary

            House Bill 9 amends the Education Code to provide that a high school student, regardless of age, may qualify as a beneficiary of the Texas Tomorrow Fund prepaid tuition program. The act expands scholarship opportunities under the program by allowing state and local governments to finance prepaid tuition scholarships, brings the program into compliance with federal tax law, and prohibits awarding a scholarship using state or local government derived funds unless it is determined that the award will not jeopardize funds or require an additional state appropriation to cover necessary costs. It permits a prepaid tuition contract purchaser to contract for additional credit hours, defer the use of prepaid credit hours, and apply any remaining credit hours to graduate or professional studies.

            House Bill 9 directs the comptroller to study the possibility of providing for prepaid tuition and fees for graduate studies. In addition, the act directs the comptroller to serve as executive director of, and to provide staff support for, a direct support organization formed to administer program funds, clarifies the duties of a direct support organization, and adopts the prudent person rule to govern fund investment decisions.