87R8530 MM-D
 
  By: Creighton S.B. No. 1094
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the payment of apprenticeship education expenses using
  the state's programs for paying, prepaying, or saving toward the
  costs of attending an institution of higher education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 54.605(a), Education Code, is amended to
  read as follows:
         (a)  A prepaid tuition contract remains in effect after the
  program is terminated if, when the program is terminated, the
  beneficiary:
               (1)  has been accepted by or is enrolled in an
  institution of higher education, a private or independent
  institution of higher education, [or] a career school or college,
  or an apprenticeship program described by Section 54.619(i); or
               (2)  is projected to graduate from high school not
  later than the third anniversary of the date the program is
  terminated.
         SECTION 2.  Section 54.619, Education Code, is amended by
  adding Subsection (i) to read as follows:
         (i)  Notwithstanding other provisions of this subchapter,
  any contract benefits purchased under this subchapter may be
  applied to the payment of apprenticeship program expenses for a
  registered apprenticeship program as if the apprenticeship program
  were an institution of higher education or private or independent
  institution of higher education. On the purchaser's request, the
  board shall apply, in accordance with Section 54.628, any existing
  amount of prepaid tuition contract benefits to the payment of
  apprenticeship program expenses. The board is not responsible for
  the payment of apprenticeship program expenses in excess of that
  amount. The board may adopt rules as necessary to implement this
  subsection. In this subsection, "apprenticeship program expenses"
  means expenses for fees, books, supplies, and equipment required
  for a beneficiary to participate in an apprenticeship program that
  is registered and certified with the United States Department of
  Labor under the National Apprenticeship Act (29 U.S.C. Section 50
  et seq.).
         SECTION 3.  Section 54.701(8), Education Code, is amended to
  read as follows:
               (8)  "Qualified higher education expenses" has the
  meaning assigned by Section 529, Internal Revenue Code of 1986, as
  amended, and includes expenses for fees, books, supplies, and
  equipment required for the beneficiary to participate in an
  apprenticeship program that is registered and certified with the
  United States Department of Labor under the National Apprenticeship
  Act (29 U.S.C. Section 50 et seq.).
         SECTION 4.  Section 54.751, Education Code, is amended by
  adding Subdivisions (1-a) and (9-a) and amending Subdivisions (2)
  and (6) to read as follows:
               (1-a)  "Apprenticeship program expenses" means the
  expenses for fees, books, supplies, and equipment required for a
  beneficiary to participate in a registered apprenticeship program.
               (2)  "Beneficiary" means the person designated under a
  prepaid tuition contract as the person entitled to apply one or more
  tuition units purchased under the contract to the payment of the
  person's:
                     (A)  undergraduate tuition and required fees at a
  general academic teaching institution, two-year institution of
  higher education, private or independent institution of higher
  education, medical and dental unit, career school, or accredited
  out-of-state institution of higher education; and
                     (B)  apprenticeship program expenses.
               (6)  "Prepaid tuition contract" means a contract under
  which a person purchases from the board on behalf of a beneficiary
  one or more tuition units that the beneficiary is entitled to apply
  to the payment of the beneficiary's:
                     (A)  undergraduate tuition and required fees at a
  general academic teaching institution, two-year institution of
  higher education, private or independent institution of higher
  education, medical and dental unit, career school, or accredited
  out-of-state institution of higher education; or
                     (B)  apprenticeship program expenses.
               (9-a)  "Registered apprenticeship program" means an
  apprenticeship program that is registered and certified with the
  United States Department of Labor under the National Apprenticeship
  Act (29 U.S.C. Section 50 et seq.).
         SECTION 5.  Section 54.753(a), Education Code, is amended to
  read as follows:
         (a)  Under the program, a purchaser may prepay the costs of
  all or a portion of a beneficiary's undergraduate tuition and
  required fees at a general academic teaching institution, two-year
  institution of higher education, private or independent
  institution of higher education, medical and dental unit, career
  school, or accredited out-of-state institution of higher education
  or all or a portion of the beneficiary's apprenticeship program
  expenses by entering into a prepaid tuition contract with the board
  to purchase one or more tuition units of a type described by this
  section at the applicable price established by the board for that
  type of unit for the year in which the unit is purchased. The
  portion of the beneficiary's undergraduate tuition and required
  fees for which a tuition unit may be redeemed at a particular
  general academic teaching institution or two-year institution of
  higher education is assigned to the tuition unit at the time of
  purchase, and the tuition unit may be redeemed to pay that portion
  of the tuition and fees at the general academic teaching
  institution or two-year institution of higher education in any
  academic year in which the unit is redeemed in accordance with this
  subchapter. The purchaser may purchase one type of unit or a
  combination of two or three types of units.
         SECTION 6.  Sections 54.754(a), (d), and (e), Education
  Code, are amended to read as follows:
         (a)  In accordance with this subchapter, when a beneficiary
  under a prepaid tuition contract redeems one or more tuition units
  to pay costs of tuition and required fees or apprenticeship program
  expenses, the board shall apply money in the fund, in the amount
  provided by Section 54.765 to pay all or the applicable portion of
  the costs of the beneficiary's tuition and required fees at the
  general academic teaching institution, two-year institution of
  higher education, private or independent institution of higher
  education, medical and dental unit, or accredited out-of-state
  institution of higher education in which the beneficiary enrolls or
  the beneficiary's apprenticeship program expenses. Subject to
  Subsection (b)(2) and the other provisions of this section, a
  beneficiary may redeem any type of tuition unit for attendance at an
  institution, [or] unit, or program described by this section. A
  general academic teaching institution or two-year institution of
  higher education shall accept the amount transferred to the
  institution under Section 54.765(c) when the unit or units are
  redeemed as payment for all or the applicable portion of the
  beneficiary's tuition and required fees.
         (d)  If a beneficiary redeems fewer tuition units of the type
  or combination of types necessary to pay the total cost of the
  beneficiary's tuition and required fees at the general academic
  teaching institution, two-year institution of higher education,
  private or independent institution of higher education, medical and
  dental unit, career school, or accredited out-of-state institution
  of higher education at which the beneficiary enrolls or
  apprenticeship program expenses, the beneficiary is responsible
  for paying the amount of the difference between the amount of
  tuition and required fees or expenses for which the beneficiary
  pays through the redemption of one or more tuition units and the
  total cost of the beneficiary's tuition and required fees at the
  institution or unit or the beneficiary's apprenticeship program
  expenses.
         (e)  If the beneficiary redeems fewer tuition units to pay
  the cost of tuition and required fees or apprenticeship program
  expenses than the number of units purchased on behalf of the
  beneficiary under a prepaid tuition contract, other than to defer
  redemption as permitted in accordance with Section 54.758, the
  purchaser may:
               (1)  redeem for cash the amount of the purchase price of
  the excess units, plus annual interest earned on that money,
  accrued at a rate set by the board not to exceed five percent
  annually; or
               (2)  transfer the remaining units to another
  beneficiary in accordance with this subchapter.
         SECTION 7.  Section 54.758(a), Education Code, is amended to
  read as follows:
         (a)  A prepaid tuition contract must permit the beneficiary
  to elect to pay from a source other than tuition units purchased
  under the contract the beneficiary's tuition and required fees or
  apprenticeship program expenses for some or all of the tuition and
  required fees or apprenticeship program expenses to which the
  beneficiary is entitled to payment under the contract, and to defer
  to a subsequent semester or other academic term the right to payment
  of the beneficiary's tuition and required fees or apprenticeship
  program expenses by using tuition units remaining under the
  contract.
         SECTION 8.  Section 54.765(f), Education Code, is amended to
  read as follows:
         (f)  When a beneficiary enrolls at a private or independent
  institution of higher education, medical and dental unit, career
  school, [or] accredited out-of-state institution of higher
  education, or registered apprenticeship program, on written
  authorization from the purchaser of the tuition unit or units for
  that beneficiary, the comptroller or the comptroller's authorized
  representative shall transfer to the institution the lesser of:
               (1)  an amount equal to the current cost of the tuition
  and required fees or apprenticeship program expenses that would be
  covered by redemption of the number and type of tuition units the
  beneficiary is redeeming if the beneficiary were redeeming the unit
  or units at a general academic teaching institution or two-year
  institution of higher education as follows:
                     (A)  for a Type I unit, at the general academic
  teaching institution that had the highest tuition and required fee
  cost;
                     (B)  for a Type II unit, at a general academic
  teaching institution that had tuition and required fee cost at the
  weighted average; and
                     (C)  for a Type III unit, at a two-year
  institution of higher education that had tuition and required fee
  cost at the weighted average; or
               (2)  an amount equal to the total purchase price of the
  tuition unit or units the beneficiary redeems for the semester or
  other academic term plus the portion of the total return on assets
  of the fund attributable to that amount.
         SECTION 9.  Section 54.767, Education Code, is amended to
  read as follows:
         Sec. 54.767.  USE OF FUND ASSETS. The assets of the fund may
  be used only to:
               (1)  pay the costs of program administration and
  operations;
               (2)  make payments to general academic teaching
  institutions, two-year institutions of higher education, private
  or independent institutions of higher education, medical and dental
  units, career schools, [and] accredited out-of-state institutions
  of higher education, and registered apprenticeship programs on
  behalf of beneficiaries; and
               (3)  make refunds under prepaid tuition contracts.
         SECTION 10.  Sections 54.769(b) and (c), Education Code, are
  amended to read as follows:
         (b)  The rights of a purchaser, beneficiary, or successor in
  interest of a purchaser or beneficiary in and under a prepaid
  tuition contract and the payment of tuition and required fees for a
  beneficiary under a prepaid tuition contract to a general academic
  teaching institution, two-year institution of higher education,
  private or independent institution of higher education, medical and
  dental unit, career school, or accredited out-of-state institution
  of higher education or apprenticeship program expenses under this
  chapter are exempt from attachment, levy, garnishment, execution,
  and seizure for the satisfaction of any debt, judgment, or claim
  against a purchaser, beneficiary, or successor in interest of a
  purchaser or beneficiary.
         (c)  A claim or judgment against a purchaser, beneficiary, or
  successor in interest of a purchaser or beneficiary does not impair
  or entitle the claim or judgment holder to assert or enforce a lien
  against:
               (1)  the rights of a purchaser, beneficiary, or
  successor in interest of a purchaser or beneficiary in and under a
  prepaid tuition contract; or
               (2)  the right of a beneficiary to the payment of
  tuition and required fees to a general academic teaching
  institution, two-year institution of higher education, private or
  independent institution of higher education, medical and dental
  unit, career school, or accredited out-of-state institution of
  higher education or apprenticeship program expenses under a prepaid
  tuition contract.
         SECTION 11.  Section 54.774(a), Education Code, is amended
  to read as follows:
         (a)  A prepaid tuition contract remains in effect after the
  program is terminated if, when the program is terminated, the
  beneficiary:
               (1)  has been accepted by or is enrolled at a general
  academic teaching institution, two-year institution of higher
  education, private or independent institution of higher education,
  medical and dental unit, career school, [or] accredited
  out-of-state institution of higher education, or registered
  apprenticeship program; or
               (2)  is projected to graduate from high school not
  later than the third anniversary of the date the program is
  terminated.
         SECTION 12.  Section 54.775(b), Education Code, is amended
  to read as follows:
         (b)  Notwithstanding Subsection (a), the board may release
  information described by that subsection to a general academic
  teaching institution, two-year institution of higher education,
  private or independent institution of higher education, medical and
  dental unit, career school, [or] accredited out-of-state
  institution of higher education, or registered apprenticeship
  program at which a beneficiary may enroll or is enrolled. The
  institution, [or] unit, or program shall keep the information
  confidential.
         SECTION 13.  Section 54.806(b), Education Code, is amended
  to read as follows:
         (b)  Notwithstanding Subsection (a), the board or program
  entity may release information described by Subsection (a) to the
  extent required by a general academic teaching institution,
  two-year institution of higher education, private or independent
  institution of higher education, career school, [or] accredited
  out-of-state institution of higher education, or registered
  apprenticeship program at which a beneficiary may enroll or is
  enrolled. The institution, [or] school, or program receiving
  information described by Subsection (a) shall keep the information
  confidential.
         SECTION 14.  The change in law made by this Act regarding the
  application of prepaid tuition contract benefits to the payment of
  apprenticeship program expenses for a registered apprenticeship
  program applies to contract benefits purchased under Subchapters F
  and H, Chapter 54, Education Code, as amended by this Act, before,
  on, or after the effective date of this Act.
         SECTION 15.  This Act takes effect September 1, 2021.