HB603 Alabama 2012 Session

Summary

Primary Sponsor

Jay Love

Republican

Co-Sponsor

Mary Sue McClurkin

Session

Regular Session 2012

Title

Prepaid Affordable College Tuition (PACT) Program, PACT Board authorized to revise program to meet actuarial requirements, Sec. 16-33C-23 added; Secs. 16-33C-17, 16-33C-19 repealed; Secs. 16-33C-16, 16-33C-20 am'd

Summary

HB603 strengthens the PACT prepaid college tuition program by authorizing new board powers to address actuarial deficits, ensuring full funding, and retroactively adjusting past payments and repeals.

What This Bill Does

It adds authority for the PACT Board to negotiate binding deficit-resolution agreements with purchasers and beneficiaries; it sets specific annual funding levels to aim for full funding of the program according to an actuary; it allows the board to declare that no future appropriations are necessary if an actuary says the program is fully funded; and it repeals two previous sections retroactively, while deeming certain past payments as full payment.

Who It Affects

• PACT purchasers and beneficiaries (students and their families): may experience new ways to address actuarial deficits and how past payments have been counted toward tuition/fees.
• PACT Board and Alabama's funding mechanisms (Education Trust Fund and in-state public colleges): gain authority to handle deficits, follow specified funding amounts, and determine if future appropriations are needed.

Key Provisions

• Adds Section 16-33C-23 granting the PACT Board authority to negotiate and implement binding resolutions with PACT purchasers and beneficiaries to address any actuarial deficit in the PACT Trust Fund.
• Amends Section 16-33C-16 to specify annual appropriations to the PACT Trust Fund: 2016 - $10,000,000; 2017 - $20,000,000; 2018 - $20,000,000; 2019 - $13,000,000; and states these, with other appropriations, will make the program 100 percent funded according to the actuarial assessment.
• Amends Section 16-33C-20 to allow the PACT Board to certify that no future appropriations are necessary if an actuarial report certifies full funding.
• Repeals Sections 16-33C-17 and 16-33C-19 retroactively (to 2010), and declares that payments made between Act 2010-725 and the effective date of this act shall be deemed full payment.
• The act becomes effective immediately after approval by the Governor.

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