SB193 Alabama 2010 Session

Summary

Primary Sponsor

T.D. “Ted” Little

Democrat

Session

Regular Session 2010

Title

Prepaid Affordable College Tuition (PACT) Program, annual appropriations from Education Trust Fund to PACT Fund based on a formula for fiscal years for certain period of time, Sec. 16-33C-9 repealed

Summary

SB193 would use Education Trust Fund money to cover shortfalls in the PACT program and wind it down, repealing the current dissolution rules.

What This Bill Does

Starting in 2014, it would annually transfer an amount from the Education Trust Fund to the PACT Trust Fund equal to the positive difference between APSCA base year debt service and the current year’s debt service, to be used for existing PACT contract obligations. The funds would be invested and used to pay tuition and fees for existing contracts, and the program would not be reopened to new entrants or used for new contracts. The transfer would continue until there are sufficient assets to meet all remaining obligations; upon that certification, further appropriations would stop and any remaining funds would be returned to the Education Trust Fund; the law would repeal the old provision about disposition of funds if the PACT program dissolves.

Who It Affects

• Existing PACT contract holders, whose tuition and fee obligations would be funded from the PACT Trust Fund using state appropriations if assets are insufficient.
• PACT Board and APSCA, which manage the funds, investments, and debt-service calculations used to determine appropriations.
• Education Trust Fund, which serves as the funding source and would receive any remaining funds after all obligations are paid.
• Potential new entrants to the PACT program, who would not be eligible for new contracts since the program would not be reopened.

Key Provisions

• Section 3: Beginning in fiscal year 2014, annual appropriation from the Education Trust Fund to the PACT Trust Fund equal to the difference between APSCA base year debt service and current year debt service (if positive).
• Section 3: Funds must be invested and used to meet tuition and fee obligations of the PACT Trust Fund; the PACT Board shall not reopen the program for new entrants or use funds for new contracts.
• Section 4: Annual audits; if actuarial audit shows assets are sufficient to fund remaining obligations, the PACT Board must certify to the Legislature and stop further appropriations; remaining funds are transferred back to the Education Trust Fund after last obligation is met.
• Section 5: Repeals Section 16-33c-9 related to disposition of funds upon dissolution of the PACT Program.
• Section 7: Effective immediately upon passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Prepaid Affordable College Tuition (PACT) Program