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 H. Prepaid Tuition Unit Undergraduate Education Program: Texas Tomorrow Fund Ii › Section 54.755. Prepaid Tuition Contract

Sec. 54.755.  PREPAID TUITION CONTRACT.  (a)  The board shall adopt a form for a prepaid tuition contract to be used by the board and purchasers.
(b)  A prepaid tuition contract must:
(1)  specify the terms under which the purchaser must pay any amounts owed under the contract;
(2)  specify the consequences of default;
(3)  specify the name and date of birth of the beneficiary under the contract and the terms under which another person may be substituted as the beneficiary;
(4)  specify the date the beneficiary is projected to graduate from high school; and
(5)  contain any other provisions the board considers necessary or appropriate.
(c)  A prepaid tuition contract may provide for the purchase of additional tuition units in subsequent years at the then-current price of the additional units.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.756. Purchaser; Beneficiary

Sec. 54.756.  PURCHASER; BENEFICIARY.  (a)  A purchaser may be any person who is permitted to be a purchaser under Section 529, Internal Revenue Code of 1986.  The purchaser is not required to be a resident of this state, except as provided by Subsection (c)(2).
(b)  In accordance with applicable provisions of Section 529, Internal Revenue Code of 1986, a purchaser is the owner of the account to which the purchaser's prepaid tuition contract money is assigned.
(c)  At the time the purchaser enters into a prepaid tuition contract, the beneficiary of the contract must be:
(1)  a resident of this state at the time the purchaser enters into the contract; or
(2)  a nonresident who is the child of a parent who is a resident of this state at the time that parent enters into the contract.
(d)  For purposes of Subsection (c), the board may require a reasonable period of residence in this state for a beneficiary or the parent of a beneficiary.
(e)  Notwithstanding any provision of Subchapter B, the tuition and required fees charged by a general academic teaching institution or two-year institution of higher education that are paid for with tuition units shall be determined as if the beneficiary of that contract were a resident student.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.757. Contract Payment

Sec. 54.757.  CONTRACT PAYMENT.  (a)  The board may provide for the receipt of payment under prepaid tuition contracts in lump sums or installment payments.  If the board allows payments under a contract to be made in installments over a period longer than one year, the board must provide for a plan that permits those payments to be made in single annual installments in addition to any other permitted installment plans.
(b)  A purchaser may make payments under a prepaid tuition contract by an electronic funds transfer.
(c)  An employee of this state or a political subdivision of this state may make payments under a prepaid tuition contract by payroll deductions made by the appropriate officer of the state or political subdivision.  The board shall implement procedures to facilitate payments under this subsection.
(d)  The board may impose a fee for a late payment under a prepaid tuition contract.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.758. Deferred Use of Prepaid Credit Hours

Sec. 54.758.  DEFERRED USE OF PREPAID CREDIT HOURS.  (a)  A prepaid tuition contract must permit the beneficiary to elect to pay from a source other than tuition units purchased under the contract the beneficiary's tuition and required fees for some or all of the tuition and required fees to which the beneficiary is entitled to payment under the contract, and to defer to a subsequent semester or other academic term the right to payment of the beneficiary's tuition and required fees by using tuition units remaining under the contract.
(b)  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 a payment under the contract after termination of the contract.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.759. Change of Beneficiary

Sec. 54.759.  CHANGE OF BENEFICIARY.  (a)  The purchaser of a prepaid tuition contract may designate a different beneficiary in place of the original beneficiary if the new beneficiary meets the requirements of a beneficiary on the date the designation is changed.  The new beneficiary must meet the requirements of Section 529, Internal Revenue Code of 1986, to prevent the change of beneficiary from being treated as a distribution under that law.
(b)  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.
(c)  The board may not impose a fee in connection with the designation of a new beneficiary.
(d)  The purchaser of a prepaid tuition contract may not sell the contract.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.760. Verification Under Oath

Sec. 54.760.  VERIFICATION UNDER OATH.  The board may require a purchaser to verify under oath a request to:
(1)  change a beneficiary; or
(2)  terminate a contract.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.761. Promise or Guarantee of Admission

Sec. 54.761.  PROMISE OR GUARANTEE OF ADMISSION.  This subchapter is not a promise or guarantee that a beneficiary will be:
(1)  admitted to any public or private institution of higher education;
(2)  admitted to a particular public or private institution of higher education;
(3)  allowed to continue enrollment at a public or private institution of higher education; or
(4)  graduated from a public or private institution of higher education.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.762. Contract Termination

Sec. 54.762.  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 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.763. Refund

Sec. 54.763.  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 computed.
(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 computed.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.764. Fund

Sec. 54.764.  FUND.  (a)  The Texas tomorrow fund II prepaid tuition unit undergraduate education program fund is established as a trust fund outside of the state treasury.
(b)  The board shall:
(1)  deposit in the fund money paid under prepaid tuition contracts; and
(2)  credit to the fund income earned on that money.
(c)  The board shall provide for administering the assets of the fund and establishing and administering the accounts of purchasers under prepaid tuition contracts.
(d)  The board shall provide for assigning payments to the fund to separate accounts for purchasers and may provide for assigning payments to other general accounts as otherwise considered appropriate by the board.
(e)  The board may provide for acquiring, holding, managing, purchasing, selling, assigning, trading, transferring, or disposing of any security, evidence of indebtedness, or other investment in which the fund's assets may be invested.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.766. Investment of Fund Assets

Sec. 54.766.  INVESTMENT OF FUND ASSETS.  (a)  The board shall provide for investing the assets of the fund. In investing the fund, the board has the same investment authority as that provided by Section 11b, Article VII, Texas Constitution, or other law, to the board of regents of The University of Texas System with respect to the investment of the Permanent University Fund.  The board and the board of regents of The University of Texas System may contract for the board of regents to manage and invest the assets of the fund, and for that purpose the board may delegate its duties under this section to the board of regents.
(b)  If the board does not contract with the board of regents of The University of Texas System under Subsection (a) to manage and invest the assets of the fund, the board shall contract with one or more private professional investment managers to serve as plan manager and to invest the assets of the fund on behalf of the board.  In selecting a manager, the board must:
(1)  select a person who has served as a professional investment manager for at least 10 years;
(2)  evaluate each person considered for the position based on the historical net returns of the person's professional investments and the consistency of the person's professional investment returns over a period of at least five years; and
(3)  comply with Section 54.704.
(c)  In monitoring the manager's investments, the board shall ensure that investments are made according to the standard of investment provided by this section.  The plan manager has the same duties imposed on a plan manager by Section 54.705.
(d)  The board shall develop written 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.
(e)  The board may specify in a contract under this section that the plan manager is required to establish and maintain an Internet website through which a purchaser may monitor the account to which the purchaser's prepaid tuition contract money is assigned.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.767. Use of Fund Assets

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, accredited out-of-state institutions of higher education, and registered apprenticeship programs on behalf of beneficiaries; and
(3)  make refunds under prepaid tuition contracts.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 560 (S.B. 1941), Sec. 7, eff. June 19, 2009.
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 12, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 599 (S.B. 1094), Sec. 7, eff. September 1, 2021.
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 54.7671. Transfers Among 529 Plans

Sec. 54.7671.  TRANSFERS AMONG 529 PLANS.  (a)  The board by rule shall provide for a purchaser to transfer money between an account under this subchapter and an account under another plan established by this state or by another state or other authorized entity in accordance with Section 529, Internal Revenue Code of 1986, to the extent and in the manner authorized by that section.
(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 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 units to be transferred from the account, plus the portion of the total return on assets of the fund attributable to that amount.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 560 (S.B. 1941), Sec. 8, eff. June 19, 2009.
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 54.768. Exemption From Securities Laws

Sec. 54.768.  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 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.08, 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 H. Prepaid Tuition Unit Undergraduate Education Program: Texas Tomorrow Fund Ii › Section 54.769. Exemption From Creditors' Claims

Sec. 54.769.  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 a general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, medical and dental unit, career school, 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, accredited out-of-state institution of higher education, or registered apprenticeship program under a prepaid tuition contract.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 560 (S.B. 1941), Sec. 9, eff. June 19, 2009.
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 13, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 599 (S.B. 1094), Sec. 8, eff. September 1, 2021.
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 54.770. Actuarial Soundness of Fund

Sec. 54.770.  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 to 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 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.771. Compliance With Limits on Contributions and Withdrawals

Sec. 54.771.  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 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.772. Tax Exempt Status Requirements

Sec. 54.772.  TAX EXEMPT STATUS REQUIREMENTS.  (a)  This section is intended to meet the requirements of Section 529, 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 or cash equivalent.  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 under a prepaid tuition contract and the beneficiary under the contract may not:
(1)  control or direct the investment of payments under the contract or any earnings of the fund; or
(2)  use any interest in the contract as security for a loan or other obligation.
(e)  The board shall make reports required by the secretary of the United States Treasury.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.773. Suspension of New Enrollment; Program Modification or Termination

Sec. 54.773.  SUSPENSION OF NEW ENROLLMENT; PROGRAM MODIFICATION OR TERMINATION.  (a)  On the request of the comptroller as the comptroller considers necessary to ensure the actuarial soundness of the fund, the board may temporarily suspend new enrollment in the program.
(b)  If the comptroller determines that the program is financially infeasible, the comptroller shall notify the governor and the legislature and recommend that the program be modified or terminated.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
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 54.774. Effect of Program Termination on Contract

Sec. 54.774.  EFFECT OF PROGRAM TERMINATION ON CONTRACT.  (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, 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.
(b)  A prepaid tuition contract terminates when the program is terminated if the contract does not remain in effect under Subsection (a).
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 560 (S.B. 1941), Sec. 10, eff. June 19, 2009.
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 14, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 599 (S.B. 1094), Sec. 9, eff. September 1, 2021.
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 54.775. Confidentiality

Sec. 54.775.  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 a general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, medical and dental unit, career school, accredited out-of-state institution of higher education, or registered apprenticeship program at which a beneficiary may enroll or is enrolled.  The institution, unit, school, or program 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 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 560 (S.B. 1941), Sec. 11, eff. June 19, 2009.
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 15, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 599 (S.B. 1094), Sec. 10, eff. September 1, 2021.
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 54.776. Statement Regarding Status of Prepaid Tuition Contract

Sec. 54.776.  STATEMENT REGARDING STATUS OF PREPAID TUITION CONTRACT.  Not later than January 31 of each year, the board shall provide without charge to each purchaser a statement of:
(1)  the amount paid by the purchaser under the prepaid tuition contract;
(2)  the total number of each type of tuition unit covered by the contract at any one time;
(3)  the number of each type of tuition unit remaining under the contract;
(4)  the value of the purchasers' tuition units if redeemed at any general academic teaching institution or two-year institution of higher education designated for that year by the purchaser in the time and manner required by the board, not to exceed five institutions; and
(5)  any other information the board determines by rule is necessary or appropriate.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 16, 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 H. Prepaid Tuition Unit Undergraduate Education Program: Texas Tomorrow Fund Ii › Section 54.777. Information Required for Annual Report

Sec. 54.777.  INFORMATION REQUIRED FOR ANNUAL REPORT.  (a)  The board shall maintain the following information for the purpose of inclusion in the annual report under Section 54.642:
(1)  the fiscal transactions of the board and the plan manager under this subchapter 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)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 1312, Sec. 99(4), eff. September 1, 2013.
(c)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 1312, Sec. 99(4), eff. September 1, 2013.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1312 (S.B. 59), Sec. 15, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1312 (S.B. 59), Sec. 16, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1312 (S.B. 59), Sec. 99(4), 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 H. Prepaid Tuition Unit Undergraduate Education Program: Texas Tomorrow Fund Ii › Section 54.778. Audit

Sec. 54.778.  AUDIT.  The fund and the operations of the board are subject to audit by the state auditor in accordance with Chapter 321, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter I. Texas Save and Match Program › Section 54.801. Definitions

Sec. 54.801.  DEFINITIONS.  In this subchapter:
(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.
(2)  "Beneficiary" means a beneficiary on whose behalf  a purchaser enters into a prepaid tuition contract with the  board under Subchapter H or for whom a savings trust account is opened under Subchapter G.
(3)  "Board" means the Prepaid Higher Education Tuition Board.
(4)  "Fund" means the Texas save and match trust fund established under Section 54.808.
(5)  "Program" means the Texas Save and Match Program established under this subchapter.
(6)  "Program entity" means the Texas Match the  Promise Foundation, a Texas nonprofit corporation, or any other  tax-exempt charitable organization established by law to implement the program.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1186 (H.B. 3708), Sec. 3, eff. June 17, 2011.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 599 (S.B. 1094), Sec. 11, eff. September 1, 2021.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter I. Texas Save and Match Program › Section 54.802. Texas Save and Match Program

Sec. 54.802.  TEXAS SAVE AND MATCH PROGRAM.  (a)  The board, in cooperation with the program entity, shall administer the Texas Save and Match Program, under which money contributed to a savings trust account by an account owner under a higher education savings plan established under Subchapter G or paid by a purchaser under a prepaid tuition contract under Subchapter H  on behalf of an eligible beneficiary may be matched with:
(1)  contributions made by any person to the program entity for use in making additional savings trust account contributions under Subchapter G or in purchasing additional  tuition units under prepaid tuition contracts under Subchapter H; or
(2)  money appropriated by the legislature for the program to be used by the board to make additional savings trust  account contributions under Subchapter G or to purchase  additional tuition units under Subchapter H.
(b)  In addition to the board's powers assigned under Subchapters F, G, and H, the board has the powers necessary or  proper to carry out its duties under this subchapter, including the power to:
(1)  sue and be sued;
(2)  enter into contracts and other necessary instruments;
(3)  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;
(4)  appear on its own behalf before governmental agencies;
(5)  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;
(6)  engage the services of private consultants, actuaries, trustees, records administrators, managers, legal  counsel, and auditors for administrative or technical assistance;
(7)  solicit and accept gifts, grants, donations,  loans, and other aid from any source or participate in any other  manner in any government program to carry out this subchapter;
(8)  impose administrative fees;
(9)  contract with a person to market the program;
(10)  purchase liability insurance covering the board and employees and agents of the board; and
(11)  establish other policies, procedures, and eligibility criteria to implement this subchapter.
(c)  Notwithstanding other law, for purposes of Subchapter I, Chapter 659, Government Code:
(1)  the program entity 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 program entity as a  charitable contribution under Section 659.132, Government Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1186 (H.B. 3708), Sec. 3, eff. June 17, 2011.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter I. Texas Save and Match Program › Section 54.803. Initial Eligibility for Participation in Program

Sec. 54.803.  INITIAL ELIGIBILITY FOR PARTICIPATION IN PROGRAM.  (a) To be initially eligible to participate in the  program, a beneficiary, at the time a prepaid tuition contract  is entered into on the beneficiary's behalf under Subchapter H or a savings trust account is opened on the beneficiary's behalf  under Subchapter G, as applicable, must be:
(1)  a resident of this state; or
(2)  a dependent for purposes of Section 152, Internal  Revenue Code of 1986, of a resident of this state.
(b)  To be initially eligible to receive matching funds described by Section 54.802(a)(2) under the program, a beneficiary, at the time a prepaid tuition contract is entered into on the beneficiary's behalf under Subchapter H, or a  savings trust account is opened on the beneficiary's behalf  under Subchapter G, as applicable, must be eligible for free  meals under the national free or reduced-price breakfast and lunch program.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1186 (H.B. 3708), Sec. 3, eff. June 17, 2011.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter I. Texas Save and Match Program › Section 54.804. Limitations

Sec. 54.804.  LIMITATIONS.  A matching account established by the board or program entity on behalf of a beneficiary under  this subchapter is forfeited and reverts to the board or program entity on the occurrence of any of the following:
(1)  the 10th anniversary of the date the beneficiary is projected to graduate from high school, as indicated by the  purchaser in the enrollment contract, except that time spent by  the beneficiary as an active duty member of the United States  armed services tolls the period described by this subdivision;
(2)  a change of beneficiary by the account owner or purchaser of the matched account;
(3)  a contract cancellation of the matched account and refund request;
(4)  the successful completion by the beneficiary of an associate or bachelor's degree program;
(5)  transfer of the matched account to another qualified tuition program of any state that meets the requirements of Section 529, Internal Revenue Code of 1986; or
(6)  any other event the board or program entity determines would be inconsistent with the program's purposes.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1186 (H.B. 3708), Sec. 3, eff. June 17, 2011.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter I. Texas Save and Match Program › Section 54.805. Matching Account Administration

Sec. 54.805.  MATCHING ACCOUNT ADMINISTRATION.  (a)  A matching account established by the board or program entity on behalf of a beneficiary under this subchapter must be accounted for separately from the beneficiary's prepaid tuition contract balance or savings trust account balance.
(b)  To the extent possible, money or tuition units in a beneficiary's matching account shall be used or redeemed after money is used from the beneficiary's savings trust account under Subchapter G or tuition units are redeemed from the prepaid tuition contract for the beneficiary under Subchapter H.
(c)  To the extent possible, the board shall include  information about a matching account in the periodic statement provided to applicable account owners and purchasers under Subchapters G and H.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1186 (H.B. 3708), Sec. 3, eff. June 17, 2011.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter I. Texas Save and Match Program › Section 54.806. Confidentiality

Sec. 54.806.  CONFIDENTIALITY.  (a)  Records in the custody of the board or program entity relating to the participation of specific purchasers, beneficiaries, applicants, scholarship  recipients, or donors under the program are confidential.
(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, accredited out-of-state institution of higher education, or registered apprenticeship program at which a beneficiary may enroll or is enrolled.  The institution, unit, school, or program receiving information described by Subsection (a) shall keep the information confidential.
(c)  Notwithstanding any other provision of this subchapter, the board or program entity may release information to the Internal Revenue Service or to any state tax agency as required by applicable tax law.
(d)  Notwithstanding any other provision of this subchapter, the board or program entity may release information relating to donors who authorize release of that information.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1186 (H.B. 3708), Sec. 3, eff. June 17, 2011.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 599 (S.B. 1094), Sec. 12, eff. September 1, 2021.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter I. Texas Save and Match Program › Section 54.807. Pilot Projects Under Program

Sec. 54.807.  PILOT PROJECTS UNDER PROGRAM.  To fulfill the intent of the program, the board may use funds described by Section 54.802(a)(2) to establish pilot projects under the  program in an effort to incentivize participation in the higher education savings program under Subchapter G and the prepaid tuition unit undergraduate education program under Subchapter H, including projects that incentivize participation by:
(1)  awarding additional matching grants based on a beneficiary's achievement of specified academic goals;
(2)  providing initial matching grants and paying application fees;
(3)  providing incentives for employers to contribute matching funds to the program; and
(4)  creating a program information portal designed to increase program awareness and accessibility among school  districts, parents, and students.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1186 (H.B. 3708), Sec. 3, eff. June 17, 2011.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter I. Texas Save and Match Program › Section 54.808. Texas Save and Match Trust Fund; Agreements Between Board and Program Entity Regarding Program Entity Funds

Sec. 54.808.  TEXAS SAVE AND MATCH TRUST FUND; AGREEMENTS  BETWEEN BOARD AND PROGRAM ENTITY REGARDING PROGRAM ENTITY FUNDS.  (a)  The Texas save and match trust fund is established as a trust fund to be held with the comptroller.
(b)  Money in the fund may be spent without appropriation  and only to establish matching accounts, make deposits, purchase  tuition units, and award matching grants and scholarships under  the program and to pay the costs of program administration and operations.
(c)  The board may invest, reinvest, and direct the investment of any available money in the fund.
(d)  Interest and income from the assets of the fund shall be credited to and deposited in the fund.
(e)  The board and the program entity may enter into an agreement under which the board may hold and manage funds of the  program entity and provide services to the program entity.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1186 (H.B. 3708), Sec. 3, eff. June 17, 2011.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter I. Texas Save and Match Program › Section 54.809. Rules

Sec. 54.809.  RULES.  The board shall adopt rules for the administration of this subchapter.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1186 (H.B. 3708), Sec. 3, eff. June 17, 2011.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter J. Texas Achieving a Better Life Experience (Able) Program › Section 54.901. Purposes of Program

Sec. 54.901.  PURPOSES OF PROGRAM.  The purposes of this subchapter are as follows:
(1)  to encourage and assist individuals and families in saving funds for the purpose of supporting individuals with disabilities to maintain health, independence, and quality of life; and
(2)  to provide secure funding for qualified disability expenses on behalf of designated beneficiaries with disabilities that will supplement, but not supplant, benefits provided through private insurance, the Medicaid program under Title XIX of the Social Security Act, the supplemental security income program under Title XVI of the Social Security Act, the beneficiary's employment, and other sources.
Added by Acts 2015, 84th Leg., R.S., Ch. 1213 (S.B. 1664), Sec. 2, eff. June 19, 2015.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter J. Texas Achieving a Better Life Experience (Able) Program › Section 54.902. Definitions

Sec. 54.902.  DEFINITIONS.  In this subchapter:
(1)  "ABLE account" has the meaning assigned by Section 529A, Internal Revenue Code.
(2)  "ABLE program" or "program" means the Texas Achieving a Better Life Experience Program created under this subchapter.
(3)  "Board" means the Prepaid Higher Education Tuition Board established under Section 54.602.
(4)  "Designated beneficiary" means a person with a disability who:
(A)  is an eligible individual;
(B)  is named as the designated beneficiary of an ABLE account; and
(C)  meets any residency requirements established by the board.
(5)  "Eligible individual" means a person who has certified to the board that the person is eligible to participate in the ABLE program.
(6)  "Financial institution" means a bank, a trust company, a depository trust company, an insurance company, a broker-dealer, a registered investment company or investment manager, the Texas Treasury Safekeeping Trust Company, or another similar financial institution authorized to transact business in this state.
(7)  "Internal Revenue Code" means the Internal Revenue Code of 1986.
(8)  "Participant" means a designated beneficiary or the parent or custodian or other fiduciary of the beneficiary who has entered into a participation agreement under this subchapter.
(9)  "Participation agreement" means an agreement between a participant and the board under this subchapter that conforms to the requirements prescribed by this subchapter.
(10)  "Qualified disability expenses" means any expenses related to the eligible individual's blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, and includes expenses for education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, oversight and monitoring, a funeral and burial, and other expenses approved under federal regulations adopted under Section 529A, Internal Revenue Code.
(11)  "Texas ABLE savings plan account" means the Texas ABLE savings plan account created under Section 54.903.
Added by Acts 2015, 84th Leg., R.S., Ch. 1213 (S.B. 1664), Sec. 2, eff. June 19, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 296 (S.B. 377), Sec. 1, eff. May 29, 2017.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter J. Texas Achieving a Better Life Experience (Able) Program › Section 54.903. Creation of Program and Account; Administration

Sec. 54.903.  CREATION OF PROGRAM AND ACCOUNT; ADMINISTRATION.  (a)  The Texas Achieving a Better Life Experience (ABLE) Program is created under this subchapter.  The Texas ABLE savings plan account is established as a trust fund outside of the state treasury.
(b)  The board shall administer the ABLE program.
(c)  The board, the office of the comptroller, and any manager or other contractor that contracts with the board to provide services under this subchapter are not covered entities for purposes of Chapter 181, Health and Safety Code.
Added by Acts 2015, 84th Leg., R.S., Ch. 1213 (S.B. 1664), Sec. 2, eff. June 19, 2015.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter J. Texas Achieving a Better Life Experience (Able) Program › Section 54.9045. Collection of Fees

Sec. 54.9045.  COLLECTION OF FEES.  The board shall collect administrative fees and service charges in connection with any agreement, contract, or transaction relating to the program in amounts not exceeding the amount necessary to recover the cost of establishing and maintaining the program.
Added by Acts 2015, 84th Leg., R.S., Ch. 1213 (S.B. 1664), Sec. 2, eff. June 19, 2015.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter J. Texas Achieving a Better Life Experience (Able) Program › Section 54.906. Treatment of Assets

Sec. 54.906.  TREATMENT OF ASSETS.  (a)  The assets of the ABLE program shall at all times be preserved, invested, and spent only for the purposes provided by this subchapter and in accordance with the participation agreements entered into under this subchapter.
(b)  Except as provided by Section 529A, Internal Revenue Code, the state does not have a property right in the assets of the ABLE program.
Added by Acts 2015, 84th Leg., R.S., Ch. 1213 (S.B. 1664), Sec. 2, eff. June 19, 2015.
2023 Texas Statutes › Education Code › Title 3 - Higher Education › Subtitle A - Higher Education in General › Chapter 54 - Tuition and Fees › Subchapter J. Texas Achieving a Better Life Experience (Able) Program › Section 54.9065. Exclusion of Able Account Assets From Certain Benefit Eligibility Determinations

Sec. 54.9065.  EXCLUSION OF ABLE ACCOUNT ASSETS FROM CERTAIN BENEFIT ELIGIBILITY DETERMINATIONS.  Notwithstanding any other provision of state law that requires consideration of the financial circumstances of an applicant for assistance or a benefit provided under that law, the agency making the determination of eligibility for the assistance or benefit may not consider the amount in the applicant's ABLE account, including earnings on that amount, and any distribution for qualified disability expenses in determining the applicant's eligibility to receive and the amount of the assistance or benefit with respect to the period during which the individual maintains the ABLE account.
Added by Acts 2015, 84th Leg., R.S., Ch. 1213 (S.B. 1664), Sec. 2, eff. June 19, 2015.