HB228 Alabama 2010 Session

Sponsors

Session

Regular Session 2010

Title

Prepaid Affordable College Tuition (PACT) Program, separate board of directors, members, duties, annual appropriations from Education Trust Fund to PACT Fund based on a formula for fiscal years for certain period of time, dissolution of PACT Program, Sec. 16-33C-4.1 added; Secs. 16-33C-3, 16-33C-4, 16-33C-5, 16-33C-6, 16-33C-7, 16-33C-8, 16-33C-10, 16-33C-11, 16-33C-12 am'd.; Sec. 16-33C-9 repealed

Description

The Prepaid Affordable College Tuition program which was enacted in 1989 has provided an opportunity for the purchase of PACT contracts to provide for future college tuition payments to be made. The program has provided these payments for each year since inception. The PACT Board has suspended new entrants into the program and has expressed concerns about the ability to meet the contractual obligations for those participants still in the program. Since the PACT program was enacted by the Legislature and the PACT Board is an agency of the state, the payment of contractual obligations of this state agency is an issue that should be addressed by this Legislature. This bill will provide for the funding to offset any shortfall if the assets of the program are insufficient to meet the obligations.

To provide for additional funds to be appropriated from the Education Trust Fund to the Prepaid Affordable College Tuition program under certain conditions until there are sufficient funds to meet the future obligations for existing PACT contracts and to repeal Section 16-33c-9 Code of Alabama 1975 as amended relating to the disposition of funds upon the dissolution of the PACT Program.

Subjects

Prepaid Affordable College Tuition (PACT) Program