SB162 Alabama 2010 Session

Sponsors

Session

Regular Session 2010

Title

Prepaid Affordable College Tuition (PACT) Program, separate board of directors from Alabama College Education Savings (ACES) Program, members, duties, annual appropriations from Education Trust Fund to PACT Trust Fund for certain fiscal years, certain specific appropriations made to PACT Trust Fund for certain years, tuition limited at certain colleges, limited liability of PACT Board and ACES Board, 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Secs. 16-33C-3, 16-33C-4, 16-33C-5, 16-33C-6, 16-33C-7, 16-33C-8, 16-33C-10, 16-33C-11, 16-33C-12 am'd.; Sec. 16-33C-9 repealed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. This bill will provide for a source of funding to help offset the shortfall if the assets of the program are insufficient to meet the obligations by appropriating funds from the Education Trust Fund as debt service from such fund declines.

To provide for additional funds to be appropriated from the Education Trust Fund to the Prepaid Affordable College Tuition program beginning in the fiscal year ending September 30, 2014 and continuing into the fiscal year ending September 30, 2021 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