BILL ANALYSIS

S.B. 702

By: Paxton

Higher Education

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The Prepaid Higher Education Tuition Board helps Texans save for education and disability-related expenses through a variety of tax-advantaged savings plans. While the types of plans and investments have evolved over time, the plans continue to provide a clear benefit for tens of thousands of Texans each year. Following review by the Sunset Advisory Commission during the 2020-2021 sunset review cycle, the commission found that the board effectively manages and administers the plans and should be continued. S.B. 702 seeks to continue the board with statutory modifications aimed at implementing certain standard good government provisions.

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 rulemaking authority is expressly granted to the Prepaid Higher Education Tuition Board in SECTION 4 of this bill.

ANALYSIS

S.B. 702 amends the Education Code to continue the Prepaid Higher Education Tuition Board under the Texas Sunset Act until September 1, 2033. With respect to the board, the bill also does the following:

·         removes provisions subjecting certain programs administered by the board to termination if the board is not continued following review under that act;

·         revises provisions related to board member training and provides for the creation of a related training manual that each member must acknowledge having received and reviewed;

·         provides for the transition to the new training requirements for board members appointed before the bill's effective date;

·         provides an exception to the requirement for the board periodically to notify parties to a complaint of the status of the complaint if such notification would jeopardize the investigation;

·         authorizes the board by rule to establish advisory committees to make recommendations to the board on programs, rules, and policies administered by the board and sets out certain rules the board must adopt when establishing a committee; and

·         exempts any such advisory committee from Government Code provisions governing state agency advisory committees.

EFFECTIVE DATE

September 1, 2021.