HBA-MPM, KMH H.B. 2555 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2555 By: Cuellar Higher Education 7/19/1999 Enrolled BACKGROUND AND PURPOSE The office of the comptroller of public accounts, at the direction of the legislature, conducted a study of the feasibility of and potential options for providing prepaid tuition and fees for residents of this state who may enroll in a graduate professional degree program. That study found that creating a prepaid tuition program for graduate or professional school is feasible. It also found that structuring and administering such a program poses a number of significant challenges. Tuition and fee charges for graduate and professional study vary widely. Also, increases in graduate and professional tuition and fee rates have been significant in recent years, outpacing increases at the undergraduate level. There is no generally accepted "average" amount for graduate tuition and fee rates in Texas. Finally, although current law allows purchasers to buy additional undergraduate credit hours under the senior college plan and beneficiaries may use these credits for graduate or professional school, only 62 contracts for additional benefits have been purchased. This indicates that demand for additional coverage under the existing prepaid tuition program may be limited. The study further determined that as of December 1, 1998, no state offered a prepaid tuition program specifically tailored for graduate or professional school, although, a number of states allow beneficiaries to use their benefits for graduate or professional school. H.B. 2555 authorizes the State Board of Education (board) to establish one or more plans (plan) 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, if the board determines a particular plan is feasible and there is sufficient demand for the plan to justify administration of the plan. This bill also authorizes the board to modify the terms of a prepaid tuition contract otherwise required by this subchapter for a plan as the board considers necessary. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter F, Chapter 54, Education Code, by adding Section 54.6245, as follows: Sec. 54.6245. GRADUATE AND PROFESSIONAL DEGREE PLANS. (a) Authorizes the State Board of Education (board) to establish one or more plans (plan) 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 private or independent institution of higher education, if the board determines a particular plan is feasible and there is sufficient demand for the plan to justify administration of the plan. (b) Authorizes the board to limit a plan established under this section to a specified field or fields of study, to a specified level or type of degree, or number of hours or semesters, as the board considers appropriate. (c) Provides that the board is not required to continue offering a plan in subsequent years. (d) Authorizes the board to modify the terms of a prepaid tuition contract otherwise required by this subchapter for a plan as the board considers necessary. SECTION 2.Emergency clause. Effective date: upon passage.