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.