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�	S.B.�No.�1941

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�	AN ACT
�	relating to the administration and operation of the state's
�	programs for 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 54.603, Education Code, is amended to
�	read as follows:
�	�������Sec.�54.603.��SUNSET PROVISION. �The Prepaid Higher
�	Education Tuition Board is subject to Chapter 325, Government Code
�	(Texas Sunset Act). �Unless continued in existence as provided by
�	that chapter, the board is abolished and the programs established
�	under this subchapter and under Subchapters [Subchapter] G and H
�	terminate September 1, 2019.
�	�������SECTION�2.��Section 54.751, Education Code, is amended by
�	amending Subdivisions (2) and (6) and adding Subdivision (3-a) to
�	read as follows:
�	�������������(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 undergraduate tuition and required fees at 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.
�	�������������(3-a)��"Career school" means a career school or college
�	as defined by Section 132.001 that offers a two-year associate
�	degree as approved by the Texas Higher Education Coordinating
�	Board.
�	�������������(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 undergraduate tuition and
�	required fees at 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.
�	�������SECTION�3.��Section 54.7521, Education Code, is amended to
�	read as follows:
�	�������Sec.�54.7521.��TEXAS SAVE AND MATCH PROGRAM. �(a)��The board
�	by rule shall develop and shall implement the Texas Save and Match
�	program under which money paid by a purchaser under a prepaid
�	tuition contract may be matched with:
�	�������������(1)��contributions made by any person to the Texas Save
�	and Match program and used to purchase additional tuition units on
�	behalf of beneficiaries selected as provided by board rule; and
�	�������������(2)��money appropriated by the legislature for the
�	Texas Save and Match program and used to purchase additional
�	tuition units on behalf of beneficiaries:
�	�������������������(A)��whose annual household income is below the
�	state median family income, adjusted for household size;
�	�������������������(B)��whose enrollment in the program would, as
�	determined by the board, promote the participation goals and
�	targets of the most recent revision of "Closing the Gaps," the
�	state's master plan for higher education; or
�	�������������������(C)��who meet other criteria established by board
�	rule.
�	�������(b)��Notwithstanding other law, for purposes of Subchapter
�	I, Chapter 659, Government Code:
�	�������������(1)��the Texas Save and Match program is considered an
�	eligible charitable organization entitled to participate in a state
�	employee charitable campaign under Subchapter I, Chapter 659,
�	Government Code; and
�	�������������(2)��a state employee is entitled to authorize a
�	payroll deduction for contributions to the Texas Save and Match
�	program as a charitable contribution under Section 659.132,
�	Government Code.
�	�������SECTION�4.��Subsection (a), Section 54.753, 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, career school, or accredited
�	out-of-state institution of higher education 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�5.��Subsection (d), Section 54.754, Education Code,
�	is amended to read as follows:
�	�������(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, career
�	school, or accredited out-of-state institution of higher education
�	at which the beneficiary enrolls, the beneficiary is responsible
�	for paying the amount of the difference between the amount of
�	tuition and required fees 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.
�	�������SECTION�6.��Subsections (a), (b), (c), (f), and (g), Section
�	54.765, Education Code, are amended to read as follows:
�	�������(a)��Except as provided by Subsection (h) [(e)], the
�	comptroller is the custodian of the assets of the fund.
�	�������(b)��The comptroller shall pay money from the fund [on a
�	warrant drawn by the comptroller] supported only by [on] a voucher
�	signed by the comptroller or the comptroller's authorized
�	representative. The comptroller may designate the plan manager as
�	the comptroller's authorized representative to pay expenditures or
�	transfer funds under this section and Sections 54.766 and 54.767.
�	�������(c)��When a beneficiary enrolls at a general academic
�	teaching institution or two-year institution of higher education,
�	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 an
�	amount equal to the lesser of:
�	�������������(1)��the sum of:
�	�������������������(A)��the total purchase price of the tuition unit
�	or units the beneficiary redeems for the semester or other academic
�	term; and
�	�������������������(B)��the amount determined under Subsection (d);
�	or
�	�������������(2)��an amount equal to 101 percent of the amount of
�	tuition and required fees covered by the tuition units being
�	redeemed.
�	�������(f)��When a beneficiary enrolls at a private or independent
�	institution of higher education, career school, or accredited
�	out-of-state institution of higher education, 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 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[, in the sales year in which the unit was
�	purchased,] had the highest tuition and required fee cost;
�	�������������������(B)��for a Type II unit, at a general academic
�	teaching institution that[, in the sales year in which the unit was
�	purchased,] 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[, in the sales year in which
�	the unit was purchased,] 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.
�	�������(g)��The comptroller annually shall provide to the board a
�	sworn statement of the amount of the fund's assets in the
�	comptroller's or plan manager's custody. The plan manager shall
�	provide to the comptroller a quarterly report of all funds
�	distributed during the previous quarter. The comptroller may
�	require more frequent reports or may request that the plan manager
�	provide any additional information at any time necessary to ensure
�	that the fund's assets are adequately protected.
�	�������SECTION�7.��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, career schools,
�	and accredited out-of-state institutions of higher education on
�	behalf of beneficiaries; and
�	�������������(3)��make refunds under prepaid tuition contracts.
�	�������SECTION�8.��Subsection (b), Section 54.7671, Education Code,
�	is amended to read as follows:
�	�������(b)��For purposes of a transfer of money from an account
�	under this subchapter, the value of the account at the time of
�	transfer is the lesser of:
�	�������������(1)��an amount equal to the cost, at the time of the
�	transfer, of the tuition and required fees that would be covered by
�	redemption of the number and type of tuition units to be transferred
�	from the account if the beneficiary were redeeming the 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[, in the sales year in which the unit was
�	purchased,] had the highest tuition and required fee cost;
�	�������������������(B)��for a Type II unit, at a general academic
�	teaching institution that[, in the sales year in which the unit was
�	purchased,] 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[, in the sales year in which
�	the unit was purchased,] had tuition and required fee cost at the
�	weighted average; or
�	�������������(2)��an amount equal to the total purchase price of the
�	tuition units to be transferred from the account, plus the portion
�	of the total return on assets of the fund attributable to that
�	amount.
�	�������SECTION�9.��Subsections (b) and (c), Section 54.769,
�	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, career
�	school, or accredited out-of-state institution of higher education
�	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, career school, or
�	accredited out-of-state institution of higher education under a
�	prepaid tuition contract.
�	�������SECTION�10.��Subsection (a), Section 54.774, 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,
�	career school, or accredited out-of-state institution of higher
�	education; or
�	�������������(2)��is projected to graduate from high school not
�	later than the third anniversary of the date the program is
�	terminated.
�	�������SECTION�11.��Subsection (b), Section 54.775, 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, career
�	school, or accredited out-of-state institution of higher education
�	at which a beneficiary may enroll or is enrolled.��The institution
�	shall keep the information confidential.
�	�������SECTION�12.��The Texas Save and Match program is entitled to
�	participate in the state employee charitable campaign conducted
�	during the autumn of 2009 without regard to any limitation on the
�	time during which an organization must apply to participate in the
�	campaign.
�	�������SECTION�13.��This Act takes effect immediately if it
�	receives a vote of two-thirds of all the members elected to each
�	house, as provided by Section 39, Article III, Texas Constitution.
�	If this Act does not receive the vote necessary for immediate
�	effect, this Act takes effect September 1, 2009.
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�	______________________________	______________________________
�	���President of the Senate	Speaker of the House�����
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�	�������I hereby certify that S.B.�No.�1941 passed the Senate on
�	April�23,�2009, by the following vote:��Yeas�30, Nays�0.
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�	______________________________
�	Secretary of the Senate����
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�	�������I hereby certify that S.B.�No.�1941 passed the House on
�	May�26,�2009, by the following vote:��Yeas�145, Nays�0, one
�	present not voting.
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�	______________________________
�	Chief Clerk of the House���
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�	Approved:
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�	______________________________�
�	������������Date
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�	______________________________�
�	����������Governor