HB181 Alabama 2012 Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

Regular Session 2012

Title

Prepaid Affordable College Tuition Program (PACT), limit on cost for certain PACT plan contract participants repealed, extend tuition caps to include any college and university in the state, Secs. 16-33C-3, 16-33C-8, 16-33C-18 am'd; Sec. 16-33C-17 repealed

Summary

HB181 would overhaul the PACT program by removing tuition limits for some participants, tying PACT payments to actual in-state tuition and fees, expanding tuition caps to all state colleges, and imposing price and investment rules to stabilize funding while re-opening enrollment.

What This Bill Does

If enacted, the bill repeals the existing tuition-cost limit for certain PACT participants. It defines PACT tuition as the actual in-state tuition and mandatory fees, linking payments to current costs. It extends tuition caps to all Alabama colleges and universities and requires public institutions to limit annual fee increases to the average growth seen in the prior 10 years. It restores the state's obligation to pay promised PACT benefits and limits PACT investments to 60% equity and 40% fixed income. It also allows the PACT Board to enroll new families and may reopen enrollment, with changes taking effect after a short delay.

Who It Affects

• PACT program participants and future enrollees: benefits and costs tied to actual in-state tuition and fees; enrollment could reopen.
• Public colleges and universities in Alabama: must apply tuition caps to all institutions and limit annual fee increases.
• State of Alabama and taxpayers: commits to paying PACT obligations and manages the investment mix (60/40).

Key Provisions

• Repeals the limit on the cost of tuition for certain PACT plan contract participants.
• Defines tuition and mandatory fees for PACT as the actual in-state tuition and fees charged by the institution, tying PACT payments to current costs.
• Extends tuition caps to all colleges and universities in the state (including those under trustee boards).
• Requires public institutions to limit annual increases in fees to the average percentage increase over the past 10 years.
• Restores the state's commitment to pay all obligations promised to PACT participants.
• Limits PACT investments to no more than 60 percent equity holdings and no more than 40 percent fixed-income holdings.
• Repeals Section 16-33C-17 (limits on the cost of tuition for certain PACT plan contract participants).
• Authorizes the PACT Board to enroll new eligible families and to reopen enrollment.
• Effective date: the act becomes law on the first day of the third month after passage.

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