SRC-JJJ S.B. 315 76(R)BILL ANALYSIS Senate Research CenterS.B. 315 By: Ellis Higher Education 7/26/1999 Enrolled DIGEST Currently, Texas law does not allow the Texas Prepaid Higher Education Tuition Board (board) to offer fifth year Texas Tomorrow Fund contracts for private colleges. This bill will allow the board to offer Texas Tomorrow Fund contracts for private colleges. PURPOSE As enrolled, 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 Rulemaking authority is granted to the Prepaid Higher Education Tuition Board in SECTION 5 (Section 54.619(h), Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 54.6001, Education Code, to include the preservation of the partnership between the state and proprietary schools that offer two-year associate degrees in order to provide a wide variety of educational environments and instructional systems. SECTION 2. Amends Section 54.601, Education Code, to define "proprietary school." Makes conforming changes. SECTION 3. Amends Section 54.605(a), Education Code, to make conforming changes. SECTION 4. Amends Section 54.618(b), Education Code, to make conforming changes. SECTION 5. Amends Section 54.619, Education Code, by adding Subsection (h), to authorize contract benefits purchased to be applied to the payment of tuition and required fees at a proprietary school as if the proprietary school were an institution of higher education or private or independent institution of higher education. Requires the Texas Prepaid Higher Education Tuition Board (board) to apply, on the purchaser's request, any existing amount of prepaid tuition and required fees at a proprietary school. Provides that the board is not responsible for the payments at the proprietary school in excess of that amount. Authorizes the board to adopt rules as necessary to implement this subsection. SECTION 6. Amends Section 54.6252(a), Education Code, to authorize the 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 7. (a) Makes application of this Act retroactive. (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 (c) of this SECTION. (c) 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 8. Effective date: September 1, 1999. SECTION 9. Emergency clause.