SRC-AAA H.B. 634 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 634
By: Pitts (Ratliff)
Finance
4-13-97
Engrossed


DIGEST 

Currently, prepaid higher education payments to the Texas Tomorrow Fund
are made in monthly installments.  While monthly payments are allowed,
lump sum yearly payments are not.  This bill would allow yearly lump sum
contributions to the Texas Tomorrow Fund. 

PURPOSE

As proposed, H.B. 634 would allow yearly lump sum contributions to the
Texas Tomorrow Fund. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 54.626(a), Education Code, to require the
Prepaid Higher Education Tuition Board (board), to provide for payments to
be made to the Texas Tomorrow Fund in single annual installments in
addition to any other permitted installment plans, if the board allows
payments under a contract to be made in installments over a period longer
than one year. 

SECTION 2. (a)  Requires the board to begin offering single annual
installments as required by this Act no later than January 1, 1998. 

(b)  Sets forth requirements of converting a prepaid tuition contract to
provide for annual installments. 

SECTION 3 Emergency clause.
  Effective date: upon passage.