HB122 Alabama 2010 Session

Summary

Primary Sponsor

Mike Curtis

Democrat

Co-Sponsors

David GrimesSteve ClouseJamie IsonAlan BakerChad FincherJoe HubbardVictor GastonCraig FordGreg Wren

Session

Regular Session 2010

Title

Prepaid Affordable College Tuition (PACT) Program, contracts, Legislative intent regarding expressed, each contract in force on effective date of this act to be honored regardless of date issued

Summary

The bill guarantees that the state will honor the benefits of all PACT contracts that are in force on the act’s effective date, even if the PACT Trust Fund cannot cover all obligations.

What This Bill Does

It states the Legislature’s intent to honor the promises inside each PACT contract. It requires the state to honor benefits payable under PACT contracts that are in force as of the act’s effective date if the PACT Trust Fund runs short of assets to cover what is owed to beneficiaries. It overrides other laws to ensure this, and it becomes effective immediately upon passage and governor approval (or otherwise becomes law).

Who It Affects

• PACT contract beneficiaries (students and families) whose contracts are in force as of the effective date, who would have their contract benefits honored even if funds are insufficient.
• Alabama state government and PACT program administrators, who would be required to fulfill these guaranteed benefits if the fund assets are not enough to cover all obligations.

Key Provisions

• Section 1: Expresses the Legislature’s intent to honor the promises contained in each PACT contract.
• Section 2: Provides that all benefits payable under PACT contracts in force as of the effective date will be honored by the state if the PACT Trust Fund assets are insufficient to cover obligations to any beneficiary.
• Section 3: Establishes that the act becomes effective immediately upon passage and governor’s approval, or otherwise becomes law.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Prepaid Affordable College Tuition (PACT) Program