Amend HB 9 as follows: (1) Add a new Section 3 to the bill (page 2, between lines 7 and 8, committee printing) to read as follows: SECTION 3. Subchapter F, Chapter 54, Education Code, is amended by adding Sections 54.6252, 54.6261, and 54.6262 to read as follows: Sec. 54.6252. CONTRACT FOR ADDITIONAL CREDIT HOURS. (a) The board may permit the purchaser of a prepaid tuition contract for a senior college plan at any time during which the contract is in effect and before the beneficiary graduates from high school to enter into a supplemental contract to prepay the tuition and required fees of the beneficiary for a number of undergraduate credit hours, in addition to the undergraduate credit hours included in the primary contract, equal to the number of credit hours purchased for one year under the primary contract. The additional credit hours must be for the same type of institution as the credit hours purchased under the primary contract. (b) The contract is subject to Section 54.620. Sec. 54.6261. DEFERRED USE OF PREPAID CREDIT HOURS. (a) A prepaid tuition contract must permit the beneficiary to elect to pay from another source the beneficiary's tuition and required fees for some or all of the semester credit hours to which the beneficiary is entitled to payment under the contract, and to defer to a subsequent semester or term the right to payment of the beneficiary's tuition and required fees for the number of semester credit hours remaining under the contract. The beneficiary is responsible for payment of the amount of tuition and required fees for the number of semester credit hours that the beneficiary elects not to pay under the contract. (b) This section does not affect the date on which a prepaid tuition contract terminates under this subchapter and does not give the beneficiary the right to any payment under the contract after termination of the contract. Sec. 54.6262. APPLICATION OF UNUSED CREDIT HOURS TO GRADUATE TUITION. (a) If the beneficiary of a prepaid tuition contract registers in a graduate or professional degree program before the termination of the contract and the beneficiary has not received payment under the contract for tuition and required fees for all of the semester credit hours to which the beneficiary is entitled, the beneficiary may apply the value of the remaining semester credit hours under the contract to the payment of the beneficiary's tuition and required fees in the graduate or professional degree program. (b) For purposes of this section, the value of a semester credit hour under a prepaid tuition contract is equal to the average amount of undergraduate tuition and required fees for a semester credit hour that would have been paid under the contract if the beneficiary registered in an undergraduate program for the same term or semester for which the beneficiary applies the payment to the beneficiary's tuition and required fees in a graduate or professional degree program under this section. (c) This section does not affect the date on which a prepaid tuition contract terminates under this subchapter and does not give the beneficiary the right to any payment under the contract after termination of the contract. (2) Add the following new sections, appropriately numbered, after existing Section 11 (page 4, between lines 65 and 66, committee printing): SECTION ____ . The comptroller shall study the feasibility of and potential options for providing prepaid tuition and fees for residents of this state who may enroll in a graduate or professional degree program. Not later than December 1, 1998, the comptroller shall report to the legislature the results of the study and make any recommendations for legislative or administrative action relating to the provision of prepaid tuition for graduate and professional degree programs. SECTION ____ . (a) Except as provided by Subsection (b) of this section, Sections 54.6261 and 54.6262, Education Code, as added by this Act, do not apply to a prepaid tuition contract entered into before the effective date of this Act. (b) The Prepaid Higher Education Tuition Board may permit the purchaser of a prepaid tuition contract entered into before the effective date of this Act to amend the contract to conform to Sections 54.6261 and 54.6262, Education Code, as added by this Act. The board may require the purchaser to make increased or additional payments as necessary to compensate for any additional costs that the board estimates will be incurred under the contract because of the contract amendment. (3) Renumber the sections of the bill accordingly.