MMA H.B. 634 75(R)BILL ANALYSIS HIGHER EDUCATION H.B. 634 By: Pitts 2-19-97 Committee Report (Unamended) BACKGROUND The Texas Tomorrow Fund (TTF) has provided Texans with an option for prepaid higher education for future generations. Currently prepaid higher education payments to the TTF are made in monthly installments providing for an affordable low cost payment. While monthly payments are allowed, lump sum yearly payments are not. This limits end of the year gifts many family members give and receive that could go toward future education in Texas. PURPOSE As proposed, HB 634 would allow yearly lump sum contributions to the Texas Tomorrow Fund. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sec. 54.626, subsection (a), Education Code by adding language directing the Prepaid Higher Education Tuition Board to allow annual payments, in addition to other permitted installments, when a contract has installments that extend in excess of one year. SECTION 2. (a) Effective date: January 1, 1998 (b) Provides a mechanism for current contract holders to convert to annual installments. SECTION 3. Emergency clause.