reglab/statecodes huggingface dataset:
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.6262. Application of Unused Credit Hours to Graduate Tuition

Sec. 54.6262.  APPLICATION OF UNUSED CREDIT HOURS TO GRADUATE TUITION.  (a)  If the beneficiary of a prepaid tuition contract registers in a graduate or professional degree program before the termination of the contract and the beneficiary has not received payment under the contract for tuition and required fees for all of the semester credit hours to which the beneficiary is entitled, the beneficiary may apply the value of the remaining semester credit hours under the contract to the payment of the beneficiary's tuition and required fees in the graduate or professional degree program.
(b)  For purposes of this section, the value of a semester credit hour under a prepaid tuition contract is equal to the average amount of undergraduate tuition and required fees for a semester credit hour that would have been paid under the contract if the beneficiary registered in an undergraduate program for the same term or semester for which the beneficiary applies the payment to the beneficiary's tuition and required fees in a graduate or professional degree program under this section.
(c)  This section does not affect the date on which a prepaid tuition contract terminates under this subchapter and does not give the beneficiary the right to any payment under the contract after termination of the contract.
Added by Acts 1997, 75th Leg., ch. 522, Sec. 3, eff. Sept. 1, 1997.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.627. Change of Beneficiary

Sec. 54.627.  CHANGE OF BENEFICIARY.  (a)  The purchaser of a prepaid tuition contract may designate a new beneficiary instead of the original beneficiary if the new beneficiary meets the requirements of a beneficiary on the date the designation is changed.  Except as provided by Subsection (b), the new beneficiary must meet the requirements of Section 529 of the Internal Revenue Code of 1986 so that the change of beneficiary is not treated as a distribution under that law.
(b)  If the purchaser is this state, a local government of this state, or an organization exempt from taxation under Section 501(a) of the Internal Revenue Code of 1986 because it is listed in Section 501(c)(3) of that code that purchases an interest in a prepaid tuition contract as part of a scholarship program operated by the government or organization, the purchaser may designate a new beneficiary without regard to the relationship of the new beneficiary to the original beneficiary.
(c)  The board may adjust the terms of the contract so that the purchaser is required to pay the amount the purchaser would have been required to pay had the purchaser originally designated the new beneficiary as the beneficiary, taking into account any payments made before the date the designation is changed.
(d)  The purchaser of a prepaid tuition contract may not sell the contract.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 522, Sec. 4, eff. Sept. 1, 1997.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.628. Conversion to Another Plan

Sec. 54.628.  CONVERSION TO ANOTHER PLAN.  (a)  A purchaser may convert a prepaid tuition contract from one plan to another plan.
(b)  The board may adjust the terms of the contract so that the purchaser is required to pay the amount required under the plan to which the contract is converted, taking into account any payments made before the date the contract is converted.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.629. Verification Under Oath

Sec. 54.629.  VERIFICATION UNDER OATH.  The board may require a purchaser to verify under oath a request to:
(1)  change a beneficiary;
(2)  convert a contract to another plan;  or
(3)  terminate a contract.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.630. Promise or Guarantee of Admission

Sec. 54.630.  PROMISE OR GUARANTEE OF ADMISSION.  This subchapter is not a promise or guarantee that a beneficiary will be:
(1)  admitted to any institution of higher education or private or independent institution of higher education;
(2)  admitted to a particular institution of higher education or private or independent institution of higher education;
(3)  allowed to continue enrollment at an institution of higher education or private or independent institution of higher education after admission;  or
(4)  graduated from an institution of higher education or private or independent institution of higher education.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.631. Contract Termination

Sec. 54.631.  CONTRACT TERMINATION.  (a)  A prepaid tuition contract shall specify:
(1)  the name of any person who may terminate the contract;  and
(2)  the terms under which the contract may be terminated.
(b)  A prepaid tuition contract terminates on the 10th anniversary of the date the beneficiary is projected to graduate from high school, not counting time spent by the beneficiary as an active duty member of the United States armed services.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.632. Refund

Sec. 54.632.  REFUND.  (a)  A prepaid tuition contract shall specify:
(1)  the name of the person entitled to any refund if the contract is terminated;
(2)  the terms under which a person is entitled to a refund;  and
(3)  the method by which the amount of the refund is calculated.
(b)  The person named in the contract is entitled to a refund following termination of a prepaid tuition contract.
(c)  The board shall determine the method by which the amount of the refund is calculated.
(d)  The board shall comply with Section 529 of the Internal Revenue Code of 1986 in imposing penalties for refunds and excess amounts payable under Sections 54.619(d) and (e).
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 522, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.634. Establishment of Trust Fund; College Savings Plan Account

Sec. 54.634.  ESTABLISHMENT OF TRUST FUND;  COLLEGE SAVINGS PLAN ACCOUNT.  (a)  The Texas tomorrow constitutional trust fund is created as a trust fund to be held with the comptroller. The fund consists of:
(1)  state appropriations for purposes of the fund;
(2)  money acquired from other governmental or private sources;
(3)  money paid under prepaid tuition contracts;  and
(4)  the income from money deposited in the fund.
(b)  The board shall administer the assets of the fund.  The board is the trustee of the fund's assets.
(c)  The board may:
(1)  segregate contributions and payments to the fund into various accounts;  and
(2)  acquire, hold, manage, purchase, sell, assign, trade, transfer, and dispose of any security, evidence of indebtedness, or other investment in which the fund's assets may be invested.
(d)  The Texas college savings plan account is created within the Texas tomorrow constitutional trust fund and is financed through administrative fees and service charges as authorized by Section 54.702(c).
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 2001, 77th Leg., ch. 1250, Sec. 4, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.635. Comptroller

Sec. 54.635.  COMPTROLLER.  (a)  Except as provided by Subsection (d), 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 on a voucher signed by the comptroller or the comptroller's authorized representative.
(c)  The comptroller annually shall furnish to the board a sworn statement of the amount of the fund's assets in the comptroller's custody.
(d)  The board may select one or more commercial banks, depository trust companies, or other entities to serve as custodian of all or part of the fund's assets.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 5.13, eff. Sept. 1, 1997.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.636. Investment of Fund Assets

Sec. 54.636.  INVESTMENT OF FUND ASSETS.  (a)  The board shall invest the assets of the fund.
(b)  The board may contract with private professional investment managers to assist the board in investing the assets of the fund.
(c)  The board shall develop written investment objectives concerning the investment of the assets of the fund.  The objectives may address desired rates of return, risks involved, investment time frames, and any other relevant considerations.
(d)  The comptroller shall develop a comprehensive plan for the investment of the assets of the fund consistent with the objectives developed by the board under Subsection (c).  The plan shall specify the policies under which the board shall invest the assets of the fund.  The board must approve the plan.
(e)  In making investments of the assets of the fund, the board shall exercise the judgment and care, under the circumstances at the time of the investment, that a person of ordinary prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation but for making a permanent disposition of funds, considering the probable income from the disposition and the probable safety of capital.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 522, Sec. 7, eff. Sept. 1, 1997.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.637. Use of Fund Assets

Sec. 54.637.  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 institutions of higher education or private or independent institutions of higher education on behalf of beneficiaries;  and
(3)  make refunds under prepaid tuition contracts.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.6385. Exemption From Securities Laws

Sec. 54.6385.  EXEMPTION FROM SECURITIES LAWS.  The registration requirements of The Securities Act (Title 12, Government Code) do not apply to the sale of a prepaid tuition contract by the board or by a registered securities dealer or registered investment adviser.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 2001, 77th Leg., ch. 1091, Sec. 4.01, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.07, eff. January 1, 2022.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.639. Exemption From Creditors' Claims

Sec. 54.639.  EXEMPTION FROM CREDITORS' CLAIMS.  (a)  Money in the fund is exempt from claims of creditors, including claims of creditors of a purchaser, a beneficiary, or a successor in interest of a purchaser or beneficiary.
(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 an institution of higher education or a private or independent 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 a 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 an institution of higher education or a private or independent institution of higher education under a prepaid tuition contract.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 522, Sec. 8, eff. Sept. 1, 1997.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.640. Actuarial Soundness of Fund

Sec. 54.640.  ACTUARIAL SOUNDNESS OF FUND.  (a)  The board shall administer the fund in a manner that is sufficiently actuarially sound to pay the costs of program administration and operations and meet the obligations of the program.
(b)  The board shall annually evaluate the actuarial soundness of the fund.
(c)  The board may adjust the terms of subsequent prepaid tuition contracts as necessary to ensure the actuarial soundness of the fund.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.6401. Compliance With Limits on Contributions and Withdrawals

Sec. 54.6401.  COMPLIANCE WITH LIMITS ON CONTRIBUTIONS AND WITHDRAWALS.  The board shall monitor contributions to and withdrawals from the fund and any account within the fund to ensure that any applicable limits on contributions or withdrawals are not exceeded.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 5, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.641. Statement Regarding Status of Prepaid Tuition Contract

Sec. 54.641.  STATEMENT REGARDING STATUS OF PREPAID TUITION CONTRACT.  (a)  Not later than January 31 of each year, the board shall furnish without charge to each purchaser a statement of:
(1)  the amount paid by the purchaser under the prepaid tuition contract;
(2)  the number of credit hours originally covered by the contract;
(3)  the number of credit hours remaining under the contract; and
(4)  any other information the board determines by rule is necessary or appropriate.
(b)  The board shall furnish a statement complying with Subsection (a) to a purchaser or beneficiary on written request.  The board may charge a reasonable fee for each statement furnished under this subsection.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 522, Sec. 9, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 3, eff. June 10, 2019.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.642. Reports

Sec. 54.642.  REPORTS.  (a)  Not later than December 1 of each year, the board shall submit to the governor, lieutenant governor, speaker of the house of representatives, Legislative Budget Board, Legislative Audit Committee, and Texas Higher Education Coordinating Board a report including:
(1)  the board's fiscal transactions during the preceding fiscal year;
(2)  the market and book value of the fund as of the end of the preceding fiscal year;
(3)  the asset allocations of the fund expressed in percentages of stocks, fixed income, cash, or other financial investments;
(4)  the rate of return on the investment of the fund's assets during the preceding fiscal year; and
(5)  an actuarial valuation of the assets and liabilities of the program, including the extent to which the program's liabilities are unfunded.
(b)  The board shall make the report described by Subsection (a) available to purchasers of prepaid tuition contracts.
(c)  The board shall include in the report described by Subsection (a):
(1)  complete prepaid tuition contract sales information, including projected enrollments of beneficiaries at institutions of higher education; and
(2)  the information maintained by the board under Section 54.777.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1312 (S.B. 59), Sec. 14, eff. September 1, 2013.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.643. Confidentiality

Sec. 54.643.  CONFIDENTIALITY.  (a)  Records in the custody of the board relating to the participation of specific purchasers and beneficiaries in the program are confidential.
(b)  Notwithstanding Subsection (a), the board may release information described by that subsection to an institution of higher education in which a beneficiary may enroll or is enrolled.  The institution of higher education shall keep the information confidential.
(c)  Notwithstanding any other provision of this subchapter, the board may release information to the Internal Revenue Service and to any state tax agencies as required by applicable tax law.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 522, Sec. 10, eff. Sept. 1, 1997.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter F. Prepaid Higher Education Tuition Program › Section 54.644. Tax Exempt Status Requirements

Sec. 54.644.  TAX EXEMPT STATUS REQUIREMENTS.  (a)  The provisions of this section are intended to meet the requirements of Section 529 of the Internal Revenue Code of 1986.
(b)  A payment of an amount due to the fund for a prepaid tuition contract must be made in cash.  A person may not make a payment to the fund in excess of the amounts required to be paid under a prepaid tuition contract.
(c)  The board shall maintain a separate accounting for each beneficiary.
(d)  The purchaser of a prepaid tuition contract and the beneficiary of the contract may not control or direct the investment of payments under the contract or any earnings of the fund.
(e)  The purchaser of a prepaid tuition contract and the beneficiary of the contract may not use any interest in the contract as security for a loan or other obligation.
(f)  The board shall make reports required by the secretary of the United States Treasury.
Added by Acts 1997, 75th Leg., ch. 522, Sec. 11, eff. Sept. 1, 1997.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.701. Definitions

Sec. 54.701.  DEFINITIONS.  In this subchapter:
(1)  "Beneficiary" means an individual designated as the individual whose qualified higher education expenses are expected to be paid from the savings trust account.
(2)  "Board" means the Prepaid Higher Education Tuition Board.
(3)  "Eligible educational institution" has the meaning assigned by Section 529, Internal Revenue Code of 1986, as amended.
(4)  "Financial institution" means a bank, trust company, savings and loan association, credit union, broker-dealer, mutual fund, insurance company, or other similar financial institution authorized to transact business in this state.
(5)  "Nonqualified withdrawal" means a withdrawal from a savings trust account other than:
(A)  a qualified withdrawal;
(B)  a withdrawal made as the result of the death or disability of the beneficiary of the account;  or
(C)  a withdrawal made due to a scholarship or to an allowance or payment described by Section 135(d)(1)(B) or (C), Internal Revenue Code of 1986, as amended, received by the beneficiary to the extent the amount of the withdrawal does not exceed the amount of the scholarship, allowance, or payment, in accordance with federal law.
(6)  "Plan" means the higher education savings plan established under this subchapter.
(7)  "Plan manager" means a financial institution under contract with the board to serve as plan administrator.
(8)  "Qualified higher education expenses" has the meaning assigned by Section 529, Internal Revenue Code of 1986, as amended.
(9)  "Qualified withdrawal" means a withdrawal from a savings trust account to pay the qualified higher education expenses of the beneficiary of the account.
(10)  "Savings trust account" means an account established through the plan by an individual under this subchapter on behalf of a beneficiary in order to apply distributions from the account toward qualified higher education expenses at eligible educational institutions.
(11)  "Savings trust agreement" means the agreement between an individual establishing a savings trust account and the board.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 4, eff. June 10, 2019.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.702. Powers and Duties of Board

Sec. 54.702.  POWERS AND DUTIES OF BOARD.  (a)  The board shall:
(1)  develop and implement the plan in a manner consistent with this subchapter;
(2)  select the financial institution or institutions to serve as plan manager; and
(3)  adopt rules to implement this subchapter.
(b)  The board may seek rulings and other guidance from the United States Department of the Treasury, the Internal Revenue Service, and the Securities and Exchange Commission relating to the plan as necessary for proper implementation and development of the plan.  The board shall make changes to the plan as necessary for savings trust account owners and beneficiaries of the plan to obtain or maintain federal income tax benefits or treatment provided by Section 529, Internal Revenue Code of 1986, as amended, and exemptions under federal securities laws.
(c)  The board shall collect administrative fees and service charges in connection with any agreement, contract, or transaction relating to the plan in amounts not exceeding the cost of establishing and maintaining the plan.
(d)  A savings trust agreement must be developed and approved by the board.  The board shall review for compliance with applicable law and must approve in advance any informational materials that a plan manager provides to participants or potential participants in the plan.
(e)  The board shall adopt a policy to prevent contributions to an account on behalf of a beneficiary in excess of those necessary to pay the qualified higher education expenses of the beneficiary.
(f)  The board shall monitor contributions to and withdrawals from the plan and each plan account to ensure that any applicable limits on contributions or withdrawals are not exceeded.
(g)  The board shall prepare and file statements and information returns relating to accounts to the extent required by federal or state tax law.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 5, eff. June 10, 2019.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.703. Operation of Plan; Accounts Held in Trust

Sec. 54.703.  OPERATION OF PLAN;  ACCOUNTS HELD IN TRUST.  (a)  The board shall administer a higher education savings plan to enable individuals to save money for the qualified higher education expenses of an individual by establishing a savings trust account in the plan.
(b)  Money contributed to a savings trust account and earnings on the account are held in trust by the board for the sole benefit of the account owner and beneficiary.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.704. Selection of Financial Institution as Plan Manager

Sec. 54.704.  SELECTION OF FINANCIAL INSTITUTION AS PLAN MANAGER.  (a)  The board shall contract with one or more financial institutions to serve as plan manager and to invest the money in savings trust accounts.  The board shall ensure that investments by a plan manager are made with the judgment and care that persons of prudence, discretion, and intelligence exercise in the management of the property of another, not in regard to speculation but in regard to the permanent disposition of funds, considering the probable income as well as the probable safety of capital.
(b)  The board shall solicit proposals from financial institutions to serve as plan managers.
(c)  The board shall select a plan manager or managers from among bidding financial institutions that demonstrate the most advantageous combination to account owners and beneficiaries, based on the following factors:
(1)  financial stability and integrity;
(2)  the ability of the financial institution, directly or through a subcontract, to satisfy recordkeeping and reporting requirements;
(3)  the financial institution's strategy for promoting the plan and the investment that the financial institution is willing to make to promote the plan;
(4)  the historic ability of the portfolios or investment strategies to be used by the financial institution to track the estimated costs of higher education as calculated by the United States Department of Education;
(5)  the fees, if any, proposed to be charged to account owners for maintaining accounts;
(6)  the minimum contributions that the financial institution will require and the willingness of the financial institution to accept contributions through payroll deduction plans or systematic deposit plans;  and
(7)  any other proposed benefits to this state or to its residents.
(d)  The board may require that any financial institution selected provide several investment options to account owners, taking into consideration the age of the beneficiary and the number of years remaining until likely enrollment at an eligible educational institution.  To the extent permitted by federal law, the investment options may include mutual funds, fixed annuities, variable annuities, and variable life insurance policies.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.705. Duties of Plan Manager

Sec. 54.705.  DUTIES OF PLAN MANAGER.  (a)  A plan manager shall:
(1)  take all actions required to keep the plan in compliance with this subchapter, to ensure that the plan qualifies as a qualified state tuition program under Section 529, Internal Revenue Code of 1986, as amended, and to ensure that the plan is exempt from registration under federal securities law;
(2)  keep adequate and separate records of each savings trust account and provide the board with the information necessary to prepare the reports required by Section 529, Internal Revenue Code of 1986, as amended, or to file those reports on behalf of the board;
(3)  compile necessary information for statements to account owners and statements required by federal or state tax law and provide those compilations to the board;  and
(4)  provide representatives of the board with access to the books and records of the manager as necessary to determine compliance with the plan manager contract.
(b)  A plan manager shall hold all savings trust accounts in trust as authorized by the board in the plan manager contract.  A plan manager shall make investments according to the standard provided by Section 54.704(a).
(c)  A plan manager shall develop a strategy to promote the plan and, on approval by the board, promote the plan according to that strategy.
(d)  A plan manager may provide for any financial institution to market the plan on its behalf and to provide account services to an individual who opens or owns a savings trust account administered by the plan manager.  A financial institution that markets the plan or provides account services under this subsection may charge a fee or commission for those services.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.706. Contract Between Board and Plan Manager

Sec. 54.706.  CONTRACT BETWEEN BOARD AND PLAN MANAGER.  (a)  A contract between the board and a financial institution to act as a plan manager under this subchapter must be for a term of at least five years and may be renewable.
(b)  If the contract is not renewed, the following conditions apply at the end of the term of the contract, so long as applying the conditions does not disqualify the plan as a qualified state tuition program under Section 529, Internal Revenue Code of 1986, as amended:
(1)  the board shall continue to maintain the plan at the financial institution;
(2)  accounts previously established at the financial institution may not be terminated, except as provided by Subdivision (5) or Subsection (c);
(3)  additional contributions may be made to the accounts;
(4)  new accounts may not be opened with that financial institution;  and
(5)  if the board determines that continuing the accounts at that financial institution is not in the best interest of the account owners, the accounts may be transferred to another financial institution acting as a plan manager.
(c)  The board may cancel a plan manager contract with a financial institution for a violation of the contract or a provision of this subchapter by the financial institution at any time.  If a contract is terminated under this subsection, the board shall take custody of accounts held at that financial institution and shall promptly seek to transfer the accounts to another financial institution acting as a plan manager and into investment instruments as similar to the original investment instruments as possible.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.707. Savings Trust Accounts

Sec. 54.707.  SAVINGS TRUST ACCOUNTS.  (a)  An individual may open a savings trust account to save money for the payment of the qualified higher education expenses of a beneficiary.  The individual who opens the account is the owner of the account.  The owner of the account may also be the beneficiary.
(b)  An individual may open an account by entering into a savings trust agreement with the board as prescribed and approved by the board and making the minimum contribution required by the plan manager selected by the individual to open an account.
(c)  A savings trust agreement must include the following terms:
(1)  the name and address of the savings trust account owner;
(2)  the name, address, and date of birth of the beneficiary on whose behalf the account is opened;
(3)  the maximum and minimum contributions allowed to the account;
(4)  provisions for withdrawals, refunds, transfers, and any penalties;
(5)  terms and conditions for a substitution of the beneficiary originally named;
(6)  terms and conditions for termination of the account, including any refunds, withdrawals, or transfers, and applicable penalties, and the name of the person or persons entitled to terminate the account;
(7)  all other rights and obligations of the account owner, the plan manager, and the board;  and
(8)  any other terms and conditions the board considers necessary or appropriate, including those necessary to conform the savings trust account to the requirements of Section 529, Internal Revenue Code of 1986, as amended, or other applicable federal law.
(d)  An account owner may change the designated beneficiary of an account as provided by Section 529, Internal Revenue Code of 1986, as amended, in accordance with procedures established by the board.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.708. Contributions and Withdrawals

Sec. 54.708.  CONTRIBUTIONS AND WITHDRAWALS.  (a)  Contributions to a savings trust account may be made only in cash or by electronic funds transfer.  An employee of the state or a political subdivision of the state may make contributions to a savings trust account by payroll deductions made by the appropriate officer of the state or political subdivision.
(b)  An account owner may withdraw all or part of the balance of an account on prior notice as authorized by board rules.
(c)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 17, eff. June 10, 2019.
(d)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 17, eff. June 10, 2019.
(e)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 17, eff. June 10, 2019.
(f)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 17, eff. June 10, 2019.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 6, eff. June 10, 2019.
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 7, eff. June 10, 2019.
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 17, eff. June 10, 2019.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.709. Administration of Accounts

Sec. 54.709.  ADMINISTRATION OF ACCOUNTS.  (a)  A plan manager shall provide separate accounting for each savings trust account.
(b)  An account owner or beneficiary may not direct the investment of any contributions to or earnings on an account.
(c)  If the board terminates the contract of a financial institution to act as a plan manager and accounts must be transferred from that financial institution to another financial institution, the board shall select the financial institution to which the balances of the accounts are transferred.
(d)  A savings trust agreement must provide that, if after a specified period the savings trust agreement has not been terminated and the beneficiary's rights in the account have not been exercised, the board, after making reasonable efforts to contact the owner and beneficiary of the account or their agents, shall report the unclaimed money in the account to the comptroller.
(e)  Money in a savings trust account is exempt from attachment, execution, and seizure for the satisfaction of debt or liability of an account owner or beneficiary.
(f)  A savings trust account may not be assigned for the benefit of creditors, used as security or collateral for any loan, or otherwise subject to alienation, sale, transfer, assignment, pledge, encumbrance, or charge.
(g)  A distribution from an account to any individual or for the benefit of any individual during a calendar year shall be reported to the Internal Revenue Service and to the account owner or the beneficiary to the extent required by federal law.
(h)  A plan manager shall provide an annual statement to each account owner not later than the January 31 after the end of each calendar year and may provide statements more frequently than annually.  A statement must identify the contributions made during the reporting period, the total contributions made through the end of the reporting period, the value of the account at the end of the reporting period, withdrawals made during the reporting period, and any other information the board requires.
(i)  Notwithstanding Subsection (b), if Section 529, Internal Revenue Code of 1986, as amended, is amended to permit an account owner to direct the investment of a contribution to or an account balance in a qualified state tuition program, the board in each subsequent plan manager contract shall provide that each plan manager must provide a savings trust account owner with the ability to direct the investment of a contribution to the account or the balance in the account among a wide variety of investment options.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.710. Plan Limitations

Sec. 54.710.  PLAN LIMITATIONS.  (a)  Nothing in this subchapter or in any savings trust agreement entered into under this subchapter may be construed to:
(1)  give a beneficiary any rights or legal interest with respect to a savings trust account unless the beneficiary is the account owner;
(2)  guarantee that amounts saved under the plan will be sufficient to cover the qualified higher education expenses of a beneficiary;  or
(3)  establish state residency for tuition or other purposes for a beneficiary because of the designation as a beneficiary.
(b)  Nothing in this subchapter or in any savings trust agreement entered into under this subchapter may be construed to create any obligation of the state, any agency or instrumentality of the state, or a plan manager to guarantee for the benefit of an account owner or beneficiary:
(1)  the return of any amount contributed to an account;
(2)  the rate of interest or other return on an account;
(3)  the payment of interest or other return on an account;  or
(4)  tuition rates or the cost of related education expenditures.
(c)  The board by rule shall require that every savings trust agreement, deposit slip, and other similar document used in connection with a contribution to an account clearly indicate that the account is not insured by this state and that neither the principal deposited nor the investment return is guaranteed by this state.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.711. No Promise of Admission, Enrollment, or Graduation

Sec. 54.711.  NO PROMISE OF ADMISSION, ENROLLMENT, OR GRADUATION.  The opening or maintenance of a savings trust account does not promise or guarantee that a beneficiary of the account will:
(1)  be admitted to any eligible educational institution;
(2)  be admitted to a particular eligible educational institution;
(3)  be allowed to continue enrollment at an eligible educational institution after admission;  or
(4)  receive a degree or certificate from an eligible educational institution.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.712. Residency Not Required

Sec. 54.712.  RESIDENCY NOT REQUIRED.  A savings trust account owner or beneficiary is not required to be a resident of this state.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
Sec. 54.713.  POLICIES FOR PROMOTION AND DISCLOSURE OF INFORMATION.  The board shall adopt policies for promotion of the plan and the disclosure of plan information to savings trust account owners and beneficiaries in a manner consistent with this subchapter and the requirements of Section 529, Internal Revenue Code of 1986, as amended, to ensure that:
(1)  promotional material and plan information disclose that no money invested in the plan is insured by this state and that neither the principal deposited nor the investment returned is guaranteed by this state;  and
(2)  any fees imposed under this subchapter are disclosed in promotional material and plan information provided to the public and to account owners and beneficiaries.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.714. Confidentiality of Records

Sec. 54.714.  CONFIDENTIALITY OF RECORDS.  (a)  Except as otherwise provided by this section, all information relating to the plan is public and subject to disclosure under Chapter 552, Government Code.
(b)  Information relating to a beneficiary or owner of a savings trust account, including any personally identifiable information about an owner or beneficiary, is confidential except that the board may disclose that information to an account owner regarding the owner's account.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.715. Termination or Modification of Plan

Sec. 54.715.  TERMINATION OR MODIFICATION OF PLAN.  If the comptroller determines that the plan is not financially feasible, the comptroller shall notify the governor and the legislature and recommend that the board not administer a higher education savings plan or that the plan be modified or terminated.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter G. Higher Education Savings Plan › Section 54.716. Effect of Termination of Plan on Savings Trust Agreement

Sec. 54.716.  EFFECT OF TERMINATION OF PLAN ON SAVINGS TRUST AGREEMENT.  If the plan is terminated, the balance of each savings trust account shall be paid to the account owner, to the extent possible, and any unclaimed assets shall escheat to the state in accordance with general law regarding unclaimed property.
Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter H. Prepaid Tuition Unit Undergraduate Education Program: Texas Tomorrow Fund Ii › Section 54.752. Powers and Duties of Board Concerning Program

Sec. 54.752.  POWERS AND DUTIES OF BOARD CONCERNING PROGRAM.  (a)  In addition to carrying out duties assigned under Subchapters F and G, the Prepaid Higher Education Tuition Board shall administer the prepaid tuition unit undergraduate education program established under this subchapter.  The board shall comply with federal and state law related to the program.
(b)  In addition to the board's powers assigned under Subchapters F and G, the board has the powers necessary or proper to carry out this subchapter, including the power to:
(1)  adopt rules to implement this subchapter;
(2)  sue and be sued;
(3)  enter into contracts and other necessary instruments;
(4)  enter into agreements or other transactions with the United States, state agencies, general academic teaching institutions, two-year institutions of higher education, and local governments;
(5)  appear on its own behalf before governmental agencies;
(6)  contract for necessary goods and services, including specifying in the contract duties to be performed by the provider of a good or service that are a part of or are in addition to the person's primary duties under the contract;
(7)  engage the services of private consultants, actuaries, trustees, records administrators, managers, legal counsel, and auditors for administrative or technical assistance;
(8)  solicit and accept gifts, grants, loans, and other aid from any source or participate in any other way in any government program to carry out this subchapter;
(9)  impose administrative fees;
(10)  contract with a person to market the program;
(11)  purchase liability insurance covering the board and employees and agents of the board; and
(12)  establish other policies, procedures, and eligibility criteria to implement this subchapter.
(c)  In marketing the program, regardless of whether the board markets the program directly or under contract as authorized by Subsection (b)(10), the board, in coordination with the Health and Human Services Commission, the Texas Workforce Commission, and the Texas Higher Education Coordinating Board, shall ensure that:
(1)  the program is marketed across the state in a manner that promotes the participation goals and targets of the most recent revision of "Closing the Gaps," the state's master plan for higher education; and
(2)  any marketing plan for the program includes a specific strategy to promote enrollment in the program by persons likely to qualify for federal earned income tax credits.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.