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.