HB171 Alabama 2013 Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

Regular Session 2013

Title

Prepaid Affordable College Tuition Program (PACT), assets and future appropriations from Education Trust Fund, transferred to institution of higher education, state college to allow eligible students to attend without tuition or fees, certain funds for out-of-state colleges, Secs. 16-33C-6, 16-33C-7, 16-33C-8, am'd; Secs. 16-33C-17, 16-33C-18, 16-33C-20 repealed

Summary

HB171 would shift most PACT assets and future Education Trust Fund appropriations to Alabama colleges and universities, require tuition and fees waivers for remaining PACT contracts at state institutions, and preserve funds for private or out-of-state use under prior rules.

What This Bill Does

It directs that the majority of the PACT Trust Fund assets and future appropriations be distributed to Alabama public colleges and universities in specific shares, while keeping a 16% balance for private or out-of-state tuition and related costs. It requires state institutions to honor remaining PACT contracts by waiving tuition and fees for eligible beneficiaries, and lets beneficiaries who choose private or out-of-state options receive funds per preexisting rules. It repeals certain older sections and strengthens PACT governance, actuarial oversight, reporting requirements, and procurement rules.

Who It Affects

• PACT contract beneficiaries (students and their families): in-state beneficiaries would have tuition and fees waived at Alabama public colleges/universities, while those electing private or out-of-state institutions would receive funds according to pre-Act 2010-725 rules.
• Alabama public colleges and universities, the PACT Board, and the State Treasurer: they would receive redistributed assets, manage the funds, ensure contracts are honored, and implement new governance, reporting, and investment requirements.

Key Provisions

• Amends Sections 16-33C-6, 16-33C-7, and 16-33C-8 to transfer PACT Trust Fund assets and future Education Trust Fund appropriations to state higher education institutions and require honoring remaining contracts.
• Distributes 84% of PACT Trust Fund assets to Alabama institutions in specified percentages (e.g., University of Alabama 33.14%, Auburn University 30.74%, etc.) and retains 16% in the PACT Trust Fund for out-of-state/private tuition, refunds, and administrative fees.
• Future receipts into the PACT Trust Fund will be distributed in the same way as assets.
• Public institutions must honor remaining PACT contracts and waive full tuition and fees as contracted; beneficiaries choosing private or out-of-state options are paid under prior methods.
• Repeals Sections 16-33C-17, 16-33C-18, and 16-33C-20.
• Requires the PACT Board to adopt rules, prepare annual and quarterly reports, solicit proposals (RFPs), and establish investment guidelines with safeguards.
• No state institution may deny admission to a PACT beneficiary solely because of the contract.
• The PACT Board may adjust contract terms to preserve actuarial soundness of the program.
• Effective immediately upon 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

Education Trust Fund