BILL ANALYSIS

C.S.H.B. 2668

By: Turner, Chris

Higher Education

Committee Report (Substituted)

BACKGROUND AND PURPOSE

It has been noted that a direct-support organization established by the Prepaid Higher Education Tuition Board has not awarded new scholarships for some time and that associated scholarship accounts currently revert on termination to this inactive organization. C.S.H.B. 2668 seeks to address this situation by providing for the dissolution of the organization and the transfer of its remaining funds to the Texas Match the Promise Foundation.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2668 amends the Education Code to authorize the comptroller of public accounts to dissolve a direct-support organization established by the Prepaid Higher Education Tuition Board for the purpose of awarding prepaid higher education tuition scholarships if the comptroller determines that the purpose of the organization has been substantially complied with and orders the dissolution. The bill transfers title to all funds and property held by a dissolved direct-support organization to the Texas Match the Promise Foundation or a successor entity on dissolution of the organization.

EFFECTIVE DATE

September 1, 2019.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 2668 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute changes the requirement for the Prepaid Higher Education Tuition Board to dissolve a direct-support organization under certain conditions to an authorization for the comptroller to do so.

The substitute changes the entity to which the organization's funds and property are transferred on dissolution of the organization from the Texas save and match trust fund to the Texas Match the Promise Foundation or a successor entity. The substitute does not require the board to make the transfer and establishes instead that title to the funds and property is so transferred.