HBA-KMH C.S.S.B. 315 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 315
By: Ellis 
Higher Education
4/30/1999
Committee Report (Substituted)


BACKGROUND AND PURPOSE

Currently, Texas law does not allow the Prepaid Higher Education Tuition
Board (board) to offer fifth year Texas Tomorrow Fund contracts for private
colleges.  C.S.S.B. 315 authorizes certain prepaid tuition contracts to
cover tuition for an additional period of attendance at an institution of
higher education.  This substitute also authorizes proprietary schools to
be treated as an institution of higher education for the purposes of the
Prepaid Higher Education Tuition Program. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Prepaid Higher Education Tuition
Board in SECTION 5 (Section 54.619, Education Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 54.6001, Education Code, to modify the statement
of the public purpose of the Prepaid Higher Education Tuition Program
(program) to include state and proprietary schools in the partnership
effort behind the program. 

SECTION 2.  Amends Section 54.601, Education Code, to define "proprietary
school." 

SECTION 3.  Amends Section 54.605(a), Education Code, to make a conforming
change. 

SECTION 4.  Amends Section 54.618(b), Education Code, to make a conforming
change. 

SECTION 5.  Amends Section 54.619, Education Code, by adding Subsection
(h), as follows: 

(h) Authorizes any contract benefits under this subchapter (Prepaid Higher
Education Tuition Program) to be applied to the payment of tuition and
required fees at a proprietary school as if the proprietary school were an
institution of higher education, notwithstanding other provisions of this
subchapter.  Requires the Prepaid Higher Education Tuition Board (board),
on the purchaser's request, to apply, in accordance with Section 54.628
(Conversion to Another Plan), any existing amount of prepaid tuition
contract benefits to the payment of tuition and required fees at a
proprietary school.  Provides that the board is not responsible for the
payment of tuition and required fees at the proprietary school in excess of
the amount. Authorizes the board to adopt rules as necessary to implement
this section. 

SECTION 6.  Amends Section 54.6252(a), Education Code, to authorize the
Prepaid Higher Education Tuition Board (board) to permit the purchaser of a
prepaid tuition contract for a senior college plan or a private college
plan, at any time during which the contract is in effect and before the
beneficiary graduates from high school, to make a supplemental payment to
prepay certain fees and tuition. 

SECTION 7.  (a) Provides that the change in the law made by this Act
regarding the application of prepaid tuition contract benefits to the
payment of tuition and required fees at a proprietary school applies to
contract benefits purchased under Subchapter F (Prepaid Higher Education
Tuition Program), Chapter 54 (Tuition and Fees), Education Code, as amended
by this Act, before, on, or after the effective date of this Act. 
 
(b) Provides that except as provided by Subsection (c) of this section, the
amendment made by this Act to Section 54.6252 (Contract for Additional
Credit Hours), Education Code, does not apply to a prepaid tuition contract
entered into before the effective date of this Act. 

(c) Authorizes the board to permit the purchaser of a prepaid tuition
contract entered into before the effective date of this Act to amend the
contract to conform to Section 54.6252 , Education Code, and may require
the purchaser to increase or make additional payments necessary to
compensate for additional costs. 

SECTION 8.  Effective date: September 1, 1999.

SECTION 9.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 315 redesignates SECTIONS 1-4 of the original as SECTIONS 6-9.

C.S.H.B. 315 modifies the original by adding new SECTIONS 1-5.  For a more
detailed analysis of these SECTIONS please see the Section-by-Section
Analysis of this document. 

C.S.H.B. 315 modifies SECTION 7 (redesignated from SECTION 2 of the
original) to add Subsection (a) providing that the change in the law made
by this Act regarding the application of prepaid tuition contract benefits
to the payment of tuition and required fees at a proprietary school applies
to contract benefits purchased under Subchapter F (Prepaid Higher Education
Tuition Program), Chapter 54 (Tuition and Fees), Education Code, as amended
by this Act, before, on, or after the effective date of this Act.
Redesignates Subsections (a) and (b) of the original as Subsections (b) and
(c).  The substitute also makes a conforming change.