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  S.B. No. 1094
 
 
 
 
AN ACT
  relating to the payment of certain education expenses using the
  state's programs for paying, 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 54.605(a), 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 in an
  institution of higher education, a private or independent
  institution of higher education, [or] a career school or college,
  or a registered apprenticeship program described by Section
  54.619(i); or
               (2)  is projected to graduate from high school not
  later than the third anniversary of the date the program is
  terminated.
         SECTION 2.  Section 54.619, Education Code, is amended by
  adding Subsection (i) to read as follows:
         (i)  Notwithstanding other provisions of this subchapter,
  any contract benefits purchased under this subchapter may be
  applied to the payment of tuition and required fees for a registered
  apprenticeship program as if the apprenticeship program were an
  institution of higher education or private or independent
  institution of higher education. On the purchaser's request, the
  board shall apply, in accordance with Section 54.628, any existing
  amount of prepaid tuition contract benefits to the payment of
  registered apprenticeship program tuition and required fees. The
  board is not responsible for the payment of registered
  apprenticeship program tuition and required fees in excess of that
  amount. The board may adopt rules as necessary to implement this
  subsection. In this subsection, "registered apprenticeship
  program" means an apprenticeship program that is registered and
  certified with the United States Department of Labor under Section
  1 of the National Apprenticeship Act (29 U.S.C. Section 50 et seq.).
         SECTION 3.  Section 54.751, Education Code, is amended by
  amending Subdivisions (2) and (6) and adding Subdivision (9-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:
                     (A)  undergraduate tuition and required fees at a
  general academic teaching institution, two-year institution of
  higher education, private or independent institution of higher
  education, medical and dental unit, career school, or accredited
  out-of-state institution of higher education; and
                     (B)  registered apprenticeship program tuition
  and required fees.
               (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:
                     (A)  undergraduate tuition and required fees at a
  general academic teaching institution, two-year institution of
  higher education, private or independent institution of higher
  education, medical and dental unit, career school, or accredited
  out-of-state institution of higher education; or
                     (B)  registered apprenticeship program tuition
  and required fees.
               (9-a)  "Registered apprenticeship program" means an
  apprenticeship program that is registered and certified with the
  United States Department of Labor under Section 1 of the National
  Apprenticeship Act (29 U.S.C. Section 50 et seq.).
         SECTION 4.  Section 54.753(a), 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, medical and dental unit, career
  school, [or] accredited out-of-state institution of higher
  education, or registered apprenticeship program 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.  Sections 54.754(a) and (d), Education Code, are
  amended to read as follows:
         (a)  In accordance with this subchapter, when a beneficiary
  under a prepaid tuition contract redeems one or more tuition units
  to pay costs of tuition and required fees, the board shall apply
  money in the fund, in the amount provided by Section 54.765 to pay
  all or the applicable portion of the costs 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, medical and dental
  unit, career school, [or] accredited out-of-state institution of
  higher education, or registered apprenticeship program in which the
  beneficiary enrolls. Subject to Subsection (b)(2) and the other
  provisions of this section, a beneficiary may redeem any type of
  tuition unit for attendance at an institution, [or] unit, school,
  or program described by this section. A general academic teaching
  institution or two-year institution of higher education shall
  accept the amount transferred to the institution under Section
  54.765(c) when the unit or units are redeemed as payment for all or
  the applicable portion of the beneficiary's tuition and required
  fees.
         (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, medical and
  dental unit, career school, [or] accredited out-of-state
  institution of higher education, or registered apprenticeship
  program 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, [or] unit, school, or program.
         SECTION 6.  Section 54.765(f), Education Code, is amended to
  read as follows:
         (f)  When a beneficiary enrolls at a private or independent
  institution of higher education, medical and dental unit, career
  school, [or] accredited out-of-state institution of higher
  education, or registered apprenticeship program, 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 had the highest tuition and required fee
  cost;
                     (B)  for a Type II unit, at a general academic
  teaching institution that 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 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.
         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, medical and dental
  units, career schools, [and] accredited out-of-state institutions
  of higher education, and registered apprenticeship programs on
  behalf of beneficiaries; and
               (3)  make refunds under prepaid tuition contracts.
         SECTION 8.  Sections 54.769(b) and (c), 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, medical and
  dental unit, career school, [or] accredited out-of-state
  institution of higher education, or registered apprenticeship
  program 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, medical and dental
  unit, career school, [or] accredited out-of-state institution of
  higher education, or registered apprenticeship program under a
  prepaid tuition contract.
         SECTION 9.  Section 54.774(a), 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,
  medical and dental unit, career school, [or] accredited
  out-of-state institution of higher education, or registered
  apprenticeship program; or
               (2)  is projected to graduate from high school not
  later than the third anniversary of the date the program is
  terminated.
         SECTION 10.  Section 54.775(b), 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, medical and
  dental unit, career school, [or] accredited out-of-state
  institution of higher education, or registered apprenticeship
  program at which a beneficiary may enroll or is enrolled. The
  institution, [or] unit, school, or program shall keep the
  information confidential.
         SECTION 11.  Section 54.801(1), Education Code, is amended
  to read as follows:
               (1)  "Accredited out-of-state institution of higher
  education," "career school," "general academic teaching
  institution," "medical and dental unit," "private or independent
  institution of higher education," "registered apprenticeship
  program," and "two-year institution of higher education" have the
  meanings assigned by Section 54.751.
         SECTION 12.  Section 54.806(b), Education Code, is amended
  to read as follows:
         (b)  Notwithstanding Subsection (a), the board or program
  entity may release information described by Subsection (a) to the
  extent required by a general academic teaching institution,
  two-year institution of higher education, private or independent
  institution of higher education, medical and dental unit, career
  school, [or] accredited out-of-state institution of higher
  education, or registered apprenticeship program at which a
  beneficiary may enroll or is enrolled. The institution, unit, [or]
  school, or program receiving information described by Subsection
  (a) shall keep the information confidential.
         SECTION 13.  The change in law made by this Act regarding the
  application of prepaid tuition contract benefits to the payment of
  tuition and required fees for a registered apprenticeship program
  applies to contract benefits purchased under Subchapters F and H,
  Chapter 54, Education Code, as amended by this Act, before, on, or
  after the effective date of this Act.
         SECTION 14.  This Act takes effect September 1, 2021.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1094 passed the Senate on
  April 23, 2021, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 28, 2021, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1094 passed the House, with
  amendment, on May 25, 2021, by the following vote: Yeas 138,
  Nays 1, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor