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


Senate Research CenterC.S.S.B. 1527
76R11067 KEL-DBy: Carona
Higher Education
4/9/1999
Committee Report (Substituted)


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.  C.S.S.B. 1527 would authorize the
inclusion of prepaid tuition contracts for proprietary schools under the
prepaid higher education tuition program.   

PURPOSE

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

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Higher Education Coordinating
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 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
between the state and proprietary schools, that offer a two-year associate
degree approved by the Texas Higher Education Coordinating Board (THECB). 

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, by adding Subsection
(h), to authorize any contract benefits purchased under this subchapter 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 THECB,
upon request, to apply any existing amount of prepaid tuition and required
fees at a proprietary school.  Provides that THECB is not responsible in
excess of that amount.  Authorizes THECB to adopt rules as necessary to
implement this section.  

SECTION 6.  Makes application of this Act retroactive.

SECTION 7.  Effective date: September 1, 1999.

SECTION 8.  Emergency clause.




 SUMMARY OF COMMITTEE CHANGES

SECTION 1. 

Amends Section 54.6001, Education Code, to require the proprietary school
to offer a twoyear associate degree that is approved by the THECB. 

SECTION 5.

Amends Section 54.619, Education Code, by adding Subsection (h), to
authorize the payment of tuition and fees to a proprietary school with an
existing prepaid tuition contract. Authorizes THECB to adopt rules as
necessary to implement this subsection.  Deletes proposed SECTIONS 5-11. 

SECTION 6.

 Makes application of this Act prospective.

SECTION 7-8.

 Renumbered from proposed SECTIONS 12-13.