Part 1. COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 7. PREPAID HIGHER EDUCATION TUITION PROGRAM
Subchapter E. APPLICATION, ENROLLMENT, PAYMENT, AND FEES
The Comptroller of Public Accounts proposes an amendment to §7.42, concerning enrollment period. House Bill 2173, 80th Legislature, 2007, effective June 15, 2007, requires the board to establish by rule criteria and procedures to guide the board in determining when and under what conditions to reopen new enrollment in the program and requires the board to develop procedures for annually assessing whether administration changes could be made that would enable the board to reopen enrollment. Subsection (a) amended to remove obsolete language. Subsection (b) is amended to account for temporary suspensions of enrollment. New subsection (d) is added to require the board, in each year that new enrollment in the program remains closed, to determine if new enrollment may be reopened. The amendments set forth the procedures and the criteria on which the board bases this determination and permits the board to reopen new enrollment in the program in certain circumstances. The amendments also require the board to consider annually the structure of the program and whether statutory or administrative changes could be made that would lead to reopening new enrollment in the program.
John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government.
Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the proposed amendment would benefit the public by setting forth the procedures and criteria on which the Board could reopen enrollment in the program. The proposed amendment would have no significant fiscal impart on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.
Comments on the amendment may be submitted to Linda Fernandez, Manager, Texas Tomorrow Funds, Post Office Box 13407, Austin, Texas 78711-3407, or transmitted electronically to linda.fernandez@cpa.state.tx.us.
The amendment is proposed under Education Code, §54.619(k), which requires the board to establish by rule procedures and criteria used by the board to make an annual determination whether new enrollment in the program may be reopened.
The amendment implements Education Code, §54.619(k).
§7.42.Enrollment Period.
(a) Except as provided in subsection (c) of this section,
each enrollment period shall begin and end on dates set annually by
the board and published in the Texas Register [
with the initial enrollment period beginning January 2, 1996, and
ending March 31, 1996]. The official postmark date affixed by
the United States Postal Service or date stamp evidencing actual receipt
of the application at the address specified as follows, whichever
is earlier, shall be considered the date of receipt of an application
for purposes of the enrollment period. Applications may be mailed
to the following address: Prepaid Higher Education Tuition Program,
Office of the Comptroller of Public Accounts, P.O. Box 13407, Austin,
Texas 78711-3407. In the alternative applications may be delivered
to the following address: 111 East 17th Street, Room 1114, Austin,
Texas 78774-0001.
(b) The board reserves the right to limit or suspend enrollment
if [as] necessary to ensure the actuarial soundness
of the fund.
(c) An extended enrollment period for beneficiaries classified as "newborns" may be established by the Board on an annual basis.
(d) In each year that new enrollment in the program is temporarily suspended under Education Code, §54.619(j), the board shall determine whether to reopen new enrollment in the program based on the following criteria: the sufficiency of available alternatives for college savings offered by the State: whether analysis of actuarial data shows that the new enrollment in the program may be reopened in an actuarially sound manner, and any other relevant criteria. The board may reopen the program to new enrollment if it determines that the alternatives for college savings offered by the state do not offer Texans sufficient help to attain a college education, and that the program could be reopened in an actuarially sound manner. In each year that new enrollment in the program remains closed, the board shall consider the current structure of the program and determine whether statutory or administrative changes are needed to enable the board to reopen the program to new enrollment in an actuarially sound manner.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on May 7, 2008.
TRD-200802385
Martin Cherry
General Counsel
Comptroller of Public Accounts
Earliest possible date of adoption: June 22, 2008
For further information, please call: (512) 475-0387