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


Office of House Bill AnalysisH.B. 2555
By: Cuellar
Higher Education
3/17/1999
Introduced



BACKGROUND AND PURPOSE 

John Sharp, former Comptroller of Public Accounts for the State of Texas,
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
among programs.  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, 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.