HBA-MPM, KMH H.B. 2555 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2555
By: Cuellar
Higher Education
7/19/1999
Enrolled



BACKGROUND AND PURPOSE 

The office of the comptroller of public accounts, at the direction of the
legislature, conducted a study of the feasibility of and potential options
for providing prepaid tuition and fees for residents of this state who may
enroll in a graduate professional degree program.  That study found that
creating a prepaid tuition program for graduate or professional school is
feasible.  It also found that structuring and administering such a program
poses a number of significant challenges.  Tuition and fee charges for
graduate and professional study vary widely.  Also, increases in graduate
and professional tuition and fee rates have been significant in recent
years, outpacing increases at the undergraduate level. There is no
generally accepted "average" amount for graduate tuition and fee rates in
Texas.  Finally, although current law allows purchasers to buy additional
undergraduate credit hours under the senior college plan and beneficiaries
may use these credits for graduate or professional school, only 62
contracts for additional benefits have been purchased.  This indicates that
demand for additional coverage under the existing prepaid tuition program
may be limited.  The study further determined that as of December 1, 1998,
no state offered a prepaid tuition program specifically tailored for
graduate or professional school, although, a number of states allow
beneficiaries to use their benefits for graduate or professional school.  

H.B. 2555 authorizes the State Board of Education (board) to establish one
or more plans (plan) to allow a person to prepay all or part of the tuition
and required fees for enrollment in a graduate or professional degree
program at an institution of higher education, if the board determines a
particular plan is feasible and there is sufficient demand for the plan to
justify administration of the plan.  This bill also authorizes the board to
modify the terms of a prepaid tuition contract otherwise required by this
subchapter for a plan as the board considers necessary. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter F, Chapter 54, Education Code, by adding
Section 54.6245, as follows: 

Sec.  54.6245.  GRADUATE AND PROFESSIONAL DEGREE PLANS.  (a) Authorizes the
State Board of Education (board) to establish one or more plans (plan) to
allow a person to prepay all or part of the tuition and required fees for
enrollment in a graduate or professional degree program at an institution
of higher education or private or independent institution of higher
education, if the board determines a particular plan is feasible and there
is sufficient demand for the plan to justify administration of the plan. 

(b) Authorizes the board to limit a plan established under this section to
a specified field or fields of study, to a specified level or type of
degree, or number of hours or semesters, as the board considers
appropriate. 

(c) Provides that the board is not required to continue offering a plan in
subsequent years. 

 (d) Authorizes the board to modify the terms of a prepaid tuition contract
otherwise required by this subchapter for a plan as the board considers
necessary. 

SECTION 2.Emergency clause.
  Effective date: upon passage.