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AN ACT
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relating to the continuation and functions of the Prepaid Higher |
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Education Tuition Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 54.603, Education Code, is amended to |
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read as follows: |
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Sec. 54.603. SUNSET PROVISION. The Prepaid Higher |
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Education Tuition Board is subject to Chapter 325, Government Code |
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(Texas Sunset Act). Unless continued in existence as provided by |
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that chapter, the board is abolished and the programs established |
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under this subchapter and under Subchapter G terminate September 1, |
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2019 [2007]. |
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SECTION 2. Sections 54.608(b), (c), and (f), Education |
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Code, are amended to read as follows: |
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(b) A person [An officer, employee, or paid consultant of a
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Texas trade association in the field of higher education] may not be |
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a member [or employee] of the board and may not be a board employee |
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employed in a "bona fide executive, administrative, or professional |
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capacity," as that phrase is used for purposes of establishing an |
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exemption to the overtime provisions of the federal Fair Labor |
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Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if: |
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(1) the [who is exempt from the state's position
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classification plan or is compensated at or above the amount
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prescribed by the General Appropriations Act for step 1, salary
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group 17, of the position classification salary schedule.
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[(c) A] person [who] is [the spouse of] an officer, employee |
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[manager], or paid consultant of a Texas trade association in the |
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field of higher education, banking, securities, or investments; or |
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(2) the person's spouse is an officer, manager, or paid |
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consultant of a Texas trade association in the field of higher |
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education, banking, securities, or investments [may not be a board
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member and may not be a board employee who is exempt from the
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state's position classification plan or is compensated at or above
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the amount prescribed by the General Appropriations Act for step 1,
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salary group 17, of the position classification salary schedule]. |
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(f) In [For the purposes of] this section, " [a] Texas trade |
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association" means [is] a [nonprofit,] cooperative[,] and |
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voluntarily joined statewide association of business or |
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professional competitors in this state designed to assist its |
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members and its industry or profession in dealing with mutual |
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business or professional problems and in promoting their common |
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interest. |
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SECTION 3. Subchapter F, Chapter 54, Education Code, is |
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amended by adding Section 54.6085 to read as follows: |
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Sec. 54.6085. PREPAID HIGHER EDUCATION TUITION BOARD ETHICS |
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POLICY. (a) In addition to any other requirements provided by law, |
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the board shall adopt and enforce an ethics policy that provides |
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standards of conduct relating to the management and investment |
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decisions of the board. The ethics policy must include provisions |
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that address the following issues as they apply to the management |
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and investment decisions of the board: |
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(1) general ethical standards; |
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(2) conflicts of interest, including disclosure and |
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recusal requirements; |
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(3) the acceptance of gifts and entertainment; and |
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(4) compliance with and enforcement of the ethics |
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policy. |
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(b) The ethics policy must include provisions applicable |
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to: |
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(1) members of the board; |
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(2) the comptroller; and |
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(3) employees of the board. |
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SECTION 4. Section 54.609, Education Code, is amended by |
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amending Subsection (a) and adding Subsection (c) to read as |
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follows: |
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(a) It is a ground for removal from the board if a member: |
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(1) does not have at the time of taking office the |
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applicable qualifications required by Section 54.606(b); |
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(2) is ineligible for membership under [violates a
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prohibition established by] Section 54.608; |
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(3) [(2)] cannot because of illness or disability |
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discharge the member's duties for a substantial part of the term for |
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which the member is appointed; or |
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(4) [(3)] is absent from more than half of the |
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regularly scheduled board meetings that the member is eligible to |
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attend during a calendar year unless the absence is excused by |
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majority vote of the board. |
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(c) If the staff of the board has knowledge that a potential |
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ground for removal exists, the staff shall notify the presiding |
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officer of the board of the potential ground. The presiding officer |
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shall then notify the governor and the attorney general that a |
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potential ground for removal exists. If the potential ground for |
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removal involves the presiding officer, the staff of the board |
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shall notify the next highest ranking officer of the board, who |
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shall then notify the governor and the attorney general that a |
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potential ground for removal exists. |
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SECTION 5. Section 54.610, Education Code, is amended by |
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amending Subsection (a) and adding Subsection (c) to read as |
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follows: |
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(a) A person who is appointed to and qualifies for office as |
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[Before] a member of the board may not vote, deliberate, or be |
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counted as a member in attendance at a meeting of the board until |
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the person completes a [assume the member's duties and before an
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appointed member may be confirmed by the senate, the member must
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complete at least one course of the] training program that complies |
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with [established under] this section. |
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(c) A person appointed to the board is entitled to |
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reimbursement, as provided by the General Appropriations Act, for |
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the travel expenses incurred in attending the training program |
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regardless of whether the attendance at the program occurs before |
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or after the person qualifies for office. |
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SECTION 6. Section 54.617, Education Code, is amended by |
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amending Subsections (c) and (d) and adding Subsection (e) to read |
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as follows: |
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(c) The board shall maintain a system to promptly and |
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efficiently act on complaints filed with the board. The board shall |
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maintain information about parties to the complaint, the subject |
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matter of the complaint, a summary of the results of the review or |
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investigation of the complaint, and its disposition [keep
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information about each complaint filed with the board. The
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information shall include:
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[(1) the date the complaint is received;
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[(2) the name of the complainant;
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[(3) the subject matter of the complaint;
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[(4)
a record of all persons contacted in relation to
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the complaint;
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[(5)
a summary of the results of the review or
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investigation of the complaint; and
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[(6)
for complaints for which the board took no
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action, an explanation of the reason the complaint was closed
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without action]. |
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(d) The board shall make information available describing |
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its procedures for complaint investigation and resolution [keep a
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file for each written complaint filed with the board that the board
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has authority to resolve. The board shall provide to the person
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filing the complaint and the persons or entities complained about
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the board's policies and procedures pertaining to complaint
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investigation and resolution. The board, at least quarterly and
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until final disposition of the complaint, shall notify the person
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filing the complaint and the persons or entities complained about
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of the status of the complaint unless the notice would jeopardize an
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undercover investigation]. |
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(e) The board shall periodically notify the complaint |
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parties of the status of the complaint until final disposition. |
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SECTION 7. Subchapter F, Chapter 54, Education Code, is |
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amended by adding Sections 54.6175 and 54.6185 to read as follows: |
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Sec. 54.6175. USE OF TECHNOLOGY. The board shall implement |
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a policy requiring the board to use appropriate technological |
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solutions to improve the board's ability to perform its functions. |
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The policy must ensure that the public is able to interact with the |
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staff of the board on the Internet. |
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Sec. 54.6185. COMPLIANCE WITH SUNSET MANAGEMENT |
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RECOMMENDATIONS. (a) The board shall: |
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(1) comply with and implement the management action |
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recommendations regarding the board adopted by the Sunset Advisory |
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Commission on January 10, 2007, as a result of its review of the |
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board; and |
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(2) report to the Sunset Advisory Commission not later |
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than November 1, 2008, the information the Sunset Advisory |
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Commission requires regarding the board's implementation of the |
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recommendations as required by Subdivision (1). |
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(b) This section expires June 1, 2009. |
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SECTION 8. Section 54.619, Education Code, is amended by |
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adding Subsections (c-1) and (k) to read as follows: |
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(c-1) If the beneficiary of a prepaid tuition contract |
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entered into after December 31, 2003, under Section 54.623, 54.624, |
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or 54.625 enrolls in an institution of higher education, the board: |
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(1) shall pay to the institution the tuition and |
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required fees of the institution; and |
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(2) may pay to the purchaser all or part of any amount |
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paid or accrued under the contract that exceeds the tuition and |
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required fees of the institution if the board determines that it may |
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do so in a manner consistent with the actuarial soundness of the |
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program. |
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(k) The board by rule shall establish criteria and |
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procedures to guide the board in determining when and under what |
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conditions to reopen new enrollment in the program in the event new |
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enrollment in the program is suspended under Subsection (j). The |
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procedure must require that, each year in which new enrollment in |
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the program is suspended, the board consider the current structure |
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of the program and determine whether any statutory or |
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administrative changes are needed to enable the board to reopen new |
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enrollment in the program in an actuarially sound manner. |
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SECTION 9. Subchapter F, Chapter 54, Education Code, is |
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amended by adding Section 54.6195 to read as follows: |
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Sec. 54.6195. APPLICATION FOR ENROLLMENT. (a) The board |
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shall adopt a form for an application for enrollment in the program. |
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The form must indicate the information that the applicant is |
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required to provide in order for the application to be considered, |
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including the information required by Subsection (b) and any other |
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information the board considers appropriate. |
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(b) An application for enrollment in the program must |
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include the following information: |
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(1) the annual household income of the purchaser; |
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(2) the highest educational level of the purchaser; |
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(3) the race or ethnicity of the beneficiary; |
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(4) how the purchaser first learned about the program; |
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and |
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(5) how the purchaser intends to finance the prepaid |
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tuition contract. |
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SECTION 10. Section 54.621, Education Code, is amended by |
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amending Subsection (a) and adding Subsection (d) to read as |
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follows: |
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(a) Except as provided by Subsection (d), the [The] |
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beneficiary of a prepaid tuition contract must be younger than 18 |
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years of age or 18 years of age or older and enrolled in high school |
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at the time the purchaser enters into the contract and must be: |
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(1) a resident of this state at the time the purchaser |
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enters into the contract; or |
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(2) a nonresident who is the child of a parent who is a |
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resident of this state at the time that parent enters into the |
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contract. |
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(d) In order to provide sufficient time for program |
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investments to mature in an actuarially sound manner with regard to |
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the amounts prepaid under a contract entered into after December |
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31, 2003, the board may require a maturity period between the time a |
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purchaser enters into the contract and the time the board must act |
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on its contractual obligation to pay any tuition or fees on behalf |
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of the beneficiary. |
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SECTION 11. Section 54.624(b), Education Code, is amended |
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to read as follows: |
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(b) When the beneficiary of a senior college plan prepaid |
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tuition contract entered into on or before December 31, 2003, |
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enrolls in a public senior college or university, the university |
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shall accept as payment in full of the beneficiary's tuition and |
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required fees the lesser of: |
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(1) the amount of tuition and required fees charged by |
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the institution; or |
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(2) an amount paid by the board under the contract |
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equal to the weighted average amount of tuition and required fees of |
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all public senior colleges and universities for that semester or |
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other academic period as determined by the board. |
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SECTION 12. Section 54.608(e), Education Code, is repealed. |
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SECTION 13. Not later than September 1, 2008, the Prepaid |
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Higher Education Tuition Board shall conduct a study to determine |
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the feasibility of the board and an institution of higher education |
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entering into an agreement under which the institution offers |
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tuition discounts or other benefits to beneficiaries of prepaid |
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tuition contracts who enroll in the institution. The study must |
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include an analysis of the benefits of such an agreement to the |
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board and to institutions of higher education and an evaluation of |
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the level of interest in such agreements on the part of institutions |
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of higher education. |
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SECTION 14. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2173 was passed by the House on May 2, |
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2007, by the following vote: Yeas 143, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2173 on May 24, 2007, by the following vote: Yeas 144, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2173 was passed by the Senate, with |
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amendments, on May 22, 2007, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |