By Ellis S.B. No. 1470
75R6466 JSA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a prepaid tuition plan for graduate studies.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 54.622, Education Code, is amended to
1-5 read as follows:
1-6 Sec. 54.622. TYPES OF PLANS. The board shall make prepaid
1-7 tuition contracts available for the:
1-8 (1) junior college plan;
1-9 (2) senior college plan;
1-10 (3) junior-senior college plan; [and]
1-11 (4) private college plan; and
1-12 (5) graduate tuition assistance plan.
1-13 SECTION 2. Subchapter F, Chapter 54, Education Code, is
1-14 amended by adding Section 54.6252 to read as follows:
1-15 Sec. 54.6252. GRADUATE TUITION ASSISTANCE PLAN. (a) The
1-16 board shall permit the purchaser of a plan other than a plan
1-17 authorized by this section to enter into a supplemental contract to
1-18 provide the beneficiary with a source of funds to apply toward the
1-19 payment of tuition for graduate studies.
1-20 (b) A contract for a graduate tuition assistance plan must
1-21 permit the purchaser to deposit an amount into the plan not to
1-22 exceed 25 percent of each amount paid by the purchaser under the
1-23 principal contract. The board shall maintain a separate account
1-24 for each contract.
2-1 (c) Section 54.620(b) and Sections 54.620(d)(5) through (8)
2-2 do not apply to a contract for a graduate tuition assistance plan.
2-3 (d) The board shall credit to each account established under
2-4 this section at least monthly the income earned by the fund
2-5 attributable to the amount in the account and shall deduct from
2-6 the current balance any amount paid out from the account. In
2-7 determining the income attributable to the amount in the account,
2-8 the board shall take into account the appropriate proportion of the
2-9 board's costs of program administration and operations attributable
2-10 to the account.
2-11 (e) The beneficiary of the plan may apply any portion of the
2-12 current balance in the account to pay tuition and required fees
2-13 when the beneficiary is enrolled in a postgraduate degree program
2-14 at any accredited public or private institution of higher education
2-15 in or outside of this state at which the beneficiary is enrolled.
2-16 The board shall establish payment procedures to ensure that the
2-17 money is applied to tuition and fees as required by this
2-18 subsection.
2-19 (f) If the program is abolished, the board shall refund to
2-20 the person who established the account the current value of the
2-21 account when the refund is made.
2-22 SECTION 3. Section 54.631(b), Education Code, is amended to
2-23 read as follows:
2-24 (b) A prepaid tuition contract for a plan other than a
2-25 graduate tuition assistance plan terminates on the 10th anniversary
2-26 of the date the beneficiary is projected to graduate from high
2-27 school, not counting time spent by the beneficiary as an active
3-1 duty member of the United States armed services. A prepaid tuition
3-2 contract for a graduate tuition assistance plan terminates on the
3-3 10th anniversary of the date the first payment of tuition or fees
3-4 from the account is made, not counting time spent by the
3-5 beneficiary as an active duty member of the United States armed
3-6 services.
3-7 SECTION 4. (a) This Act takes effect September 1, 1997.
3-8 (b) The Prepaid Higher Education Tuition Board shall begin
3-9 offering contracts for graduate tuition assistance plans not later
3-10 than January 1, 1998.
3-11 SECTION 5. The importance of this legislation and the
3-12 crowded condition of the calendars in both houses create an
3-13 emergency and an imperative public necessity that the
3-14 constitutional rule requiring bills to be read on three several
3-15 days in each house be suspended, and this rule is hereby suspended.