SRC-JJJ S.B. 1527 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1527
76R6066 AJA-DBy: Carona
Higher Education
4/6/1999
As Filed


DIGEST 

The Texas Tomorrow Fund was created by the legislature in 1995 to allow
Texas families to prepay tuition for students attending public and private
institutions of higher education.  S.B. 1527 would authorize the inclusion
of prepaid tuition contracts for proprietary schools under the prepaid
higher education tuition program.   

PURPOSE

As proposed, S.B. 1527 establishes provisions regarding the authorization
of prepaid tuition contracts for proprietary schools under the prepaid
higher education tuition program.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 54.6001, Education Code, to increase
opportunities for young Texans to take advantage of a wide variety of
higher education opportunities in order to preserve the partnership between
the state and private or independent institutions of higher education and
proprietary schools. 

SECTION 2.  Amends Section 54.601, Education Code, to define "proprietary
schools."  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, to provide that if the
beneficiary of a plan described by certain sections enrolls in a private or
public institution of higher education, the board is required to pay
certain funds regarding tuition. Provide that if the beneficiary of a plan
described by certain sections enrolls in a private or public institution of
higher education, the beneficiary is requires to pay certain fees exceeding
the amount paid by the board.  Sets forth fees that the board shall pay, if
the beneficiary of a plan described by, certain sections including, Section
54.6253 enrolls in a proprietary school.  If the beneficiary of a plan
described by certain sections enrolls in a private or independent
institution of higher education, the board shall pay certain educational
fees. Provides that if the beneficiary of plan described by certain
sections enrolls in proprietary school, the beneficiary is responsible for
certain payments to the school that exceed the amount paid by the board.
Sets forth fees the board shall pay if the beneficiary of a plan enrolls in
an institution of higher education.  Provides that the beneficiary is
responsible for paying certain balances exceeding the amount paid by the
board.  Make conforming changes. 

SECTION 6.  Amends Sections 54.620(a), (b), and (d), Education Code, to
make conforming changes. 

SECTION 7.  Amends Section 54.622, Education Code, to make a conforming
change. 

 SECTION 8.  Amends Chapter 54F, Education Code, by adding Section 54.6253,
as follows: 

Sec. 54.6253.  PROPRIETARY SCHOOL PLAN.  Requires a prepaid tuition
contract to provide prepaid tuition and required fees for the beneficiary
to attend a proprietary school for a specified number of credit hours not
to exceed the typical number of hours required for a degree approved by the
Texas Higher Education Board and awarded by a proprietary school. 
 
SECTION 9.  Amends Section 54.630, Education Code, to make conforming
changes. 

SECTION 10.  Amends Section 54.637, Education Code, to make conforming and
nonsubstantive changes. 

SECTION 11.  Amends Sections 54.639(b) and (c), Education Code, to make
conforming and nonsubstantive changes. 

SECTION 12.  Effective date: September 1, 1999.

SECTION 13.  Emergency clause.