HBA-KMH S.B. 315 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 315
By: Ellis 
Higher Education
4/24/1999
Engrossed


BACKGROUND AND PURPOSE

Currently, Texas law does not allow the Prepaid Higher Education Tuition
Board (board) to offer fifth year Texas Tomorrow Fund contracts for private
colleges.  S.B. 315 authorizes certain prepaid tuition contracts to cover
tuition for an additional period of attendance at an institution of higher
education. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 54.6252(a), Education Code, to authorize the
Prepaid Higher Education Tuition Board (board) to permit the purchaser of a
prepaid tuition contract for a senior college plan or a private college
plan, at any time during which the contract is in effect and before the
beneficiary graduates from high school, to make a supplemental payment to
prepay certain fees and tuition. 

SECTION 2.  (a)  Provides that the amendment made by this Act does not
apply to a prepaid tuition contract entered into before the effective date
of the Act, except as provided by Subsection (b).  

(b)  Authorizes the board to permit the purchaser of a prepaid tuition
contract entered into before the effective date of this Act to amend the
contract to conform to Section 54.6252, Education Code, and may require the
purchaser to increase or make additional payments necessary to compensate
for additional costs. 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.