Title ED, Education Code

Sec. 54.6175. USE OF TECHNOLOGY. The board shall implement a policy requiring the board to use appropriate technological solutions to improve the board's ability to perform its functions. The policy must ensure that the public is able to interact with the staff of the board on th…

Sec. 54.618. POWERS OF BOARD. (a) The board has the powers necessary or proper to carry out this subchapter. (b) The board may: (1) adopt an official seal; (2) adopt rules to implement this subchapter; (3) sue and be sued; (4) enter into contracts and other necessary instruments;…

Sec. 54.6181. ADVISORY COMMITTEES. (a) The board by rule may establish advisory committees to make recommendations to the board on programs, rules, and policies administered by the board. (b) In establishing an advisory committee under this section, the board shall adopt rules, i…

Sec. 54.619. PREPAID HIGHER EDUCATION TUITION PROGRAM. (a) Under the program, a purchaser may enter into a prepaid tuition contract with the board under which the purchaser agrees to prepay the tuition and required fees for a beneficiary to attend an institution of higher educati…

Sec. 54.6195. APPLICATION FOR ENROLLMENT. (a) The board shall adopt a form for an application for enrollment in the program. The form must indicate the information that the applicant is required to provide in order for the application to be considered, including the information r…

Sec. 54.620. PREPAID TUITION CONTRACT. (a) The board may contract with a purchaser for the purchaser to prepay the tuition and required fees for a beneficiary to attend an institution of higher education or private or independent institution of higher education to which the benef…

Sec. 54.621. BENEFICIARY. (a) Except as provided by Subsection (d), the beneficiary of a prepaid tuition contract must be younger than 18 years of age or 18 years of age or older and enrolled in high school at the time the purchaser enters into the contract and must be: (1) a res…

Sec. 54.622. TYPES OF PLANS. The board shall make prepaid tuition contracts available for the: (1) junior college plan; (2) senior college plan; (3) junior-senior college plan; and (4) private college plan. Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.

Sec. 54.623. JUNIOR COLLEGE PLAN. Through the junior college plan, a prepaid tuition contract shall provide prepaid tuition and required fees for the beneficiary to attend a public junior college for a specified number of undergraduate credit hours not to exceed the typical numbe…

Sec. 54.624. SENIOR COLLEGE PLAN. (a) Through the senior college plan, a prepaid tuition contract shall provide prepaid tuition and required fees for the beneficiary to attend a public senior college or university for a specified number of undergraduate credit hours not to exceed…

Sec. 54.6245. GRADUATE AND PROFESSIONAL DEGREE PLANS. (a) The board may establish one or more plans to allow a person to prepay all or part of the tuition and required fees for enrollment in a graduate or professional degree program at an institution of higher education or privat…

Sec. 54.625. JUNIOR-SENIOR COLLEGE PLAN. Through the junior-senior college plan, a prepaid tuition contract shall provide prepaid tuition and required fees for the beneficiary to attend: (1) a public junior college for a specified number of undergraduate credit hours not to excee…

Sec. 54.6251. PRIVATE COLLEGE PLAN. Through the private college plan, a prepaid tuition contract shall provide prepaid estimated average private tuition and required fees for the beneficiary to attend a private or independent institution of higher education for a specified number…

Sec. 54.6252. CONTRACT FOR ADDITIONAL CREDIT HOURS. (a) The board may permit the purchaser of a prepaid tuition contract for a senior college plan or a private college plan at any time during which the contract is in effect and before the beneficiary graduates from high school to…

Sec. 54.626. CONTRACT PAYMENT. (a) The board may provide for the receipt of payments 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, it must provide …

Sec. 54.6261. DEFERRED USE OF PREPAID CREDIT HOURS. (a) A prepaid tuition contract must permit the beneficiary to elect to pay from another source the beneficiary's tuition and required fees for some or all of the semester credit hours to which the beneficiary is entitled to paym…

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…

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 Sub…

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 c…

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.

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 hig…

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 …

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) …

Sec. 54.633. PREPAID HIGHER EDUCATION TUITION SCHOLARSHIPS FOR STUDENTS. (a) To the extent money is available, the board or the board of a direct-support organization established by the board under Subsection (e) may award a prepaid higher education tuition scholarship to a stude…

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 ot…

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 com…

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 c…

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; an…

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 1…

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…

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 actuar…

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,…

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 cre…

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 in…

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 i…

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 …

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) "El…

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 b…

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 c…

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 wit…

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, a…

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 cond…

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 b…

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 deducti…

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 contr…

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 accoun…