HB309 Alabama 2014 Session

Summary

Primary Sponsor

Craig Ford

Independent

Co-Sponsors

Thomas JacksonBarbara Bigsby BoydDarrio MeltonMerika ColemanArtis McCampbellMarcel Black

Session

Regular Session 2014

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funds for out-of-state colleges, Secs. 16-33C-6, 16-33C-7, 16-33C-8, am'd; Secs. 16-33C-17, 16-33C-18, 16-33C-20 repealed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

HB309 would reshuffle PACT program assets and future funding to Alabama colleges and universities, require tuition waivers for PACT beneficiaries at state institutions, and preserve funds to support private or out-of-state tuition under prior rules.

What This Bill Does

It directs 84% of the PACT Trust Fund assets to Alabama public colleges and universities according to specific percentages, with 16% kept in the fund to cover out-of-state/private tuition, refunds, and administrative costs; future appropriations from the Education Trust Fund would follow the same distribution. It requires state higher education institutions to honor remaining PACT contracts by waiving tuition and fees for eligible beneficiaries admitted, and to fund private/out-of-state PACT tuition using the retained funds per pre-2010-725 methods. It repeals certain prior sections and updates governance and reporting requirements for the PACT program, including actuarial oversight, investment rules, and coordination with institutions.

Who It Affects

• PACT beneficiaries (students with PACT contracts): in-state beneficiaries admitted to Alabama public colleges would have full tuition and fees waived under the contract terms; beneficiaries who elect private or out-of-state institutions would receive funds according to pre-Act 2010-725 methods.
• Alabama public and private higher education institutions: state colleges and universities must honor remaining contracts and allocate the distributed assets and future appropriations to fund PACT benefits and any out-of-state/private tuition as directed; they must also coordinate with the PACT Board and comply with new reporting and governance requirements.

Key Provisions

• 84% of PACT Trust Fund assets to be distributed to state higher education institutions in specified percentages (e.g., University of Alabama 33.14%, Auburn University 30.74%, etc.), with 16% retained in the PACT Trust Fund for out-of-state/private tuition, refunds, and administrative fees; future receipts distributed similarly.
• Future Education Trust Fund appropriations to PACT would be distributed to the same institutions in the same proportions as the assets.
• State institutions must honor remaining PACT contracts by waiving full tuition and fees for eligible beneficiaries admitted, and handle private/out-of-state tuition payments from the retained funds as provided by prior methods (pre-2010-725 rules).
• A PACT contract must include specified terms (payment amounts, due dates, late charges, withdrawal/refunds, beneficiary details, substitution, termination, claim periods, credit hours, and rights/obligations).
• No state institution may deny admission to a PACT beneficiary solely because of the beneficiary’s PACT status.
• PACT Board duties include annual actuarial evaluation, quarterly funding status reports, coordination with institutions, required RFPs for investments or contracts, and investment guidelines to limit market risk.
• Repeals of Sections 16-33C-17, 16-33C-18, and 16-33C-20, with sections 16-33C-6, 16-33C-7, and 16-33C-8 amended to implement these changes.
• The act becomes effective immediately upon passage and 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

Education Trust Fund