SB201 Alabama 2021 Session

Summary

Primary Sponsor

Tom ButlerSenator

Republican

Session

Regular Session 2021

Title

Prepaid Affordable College Tuition Program, extend contract period from 10 to 12 years, Sec. 16-33C-7 am'd.

Summary

SB201 would extend the time to use PACT benefits from 10 years to 12 years after a designated beneficiary begins college.

What This Bill Does

If passed, it changes the window to claim and use PACT benefits from 10 years to 12 years after college entrance. If, after 12 years, the contract hasn’t been terminated or benefits exercised, the PACT board would treat the contract purchase amount as unclaimed and abandoned property, after trying to locate the purchaser, and would handle it under Alabama’s Unclaimed Property Act. The change applies to both standard and accelerated students, and the bill specifies the period is measured from the beneficiary’s college entrance date.

Who It Affects

• PACT contract purchasers (often parents or guardians) who fund contracts for designated beneficiaries, as they gain a longer period to claim benefits or refunds.
• Designated beneficiaries (students) whose PACT contracts provide a longer window to utilize benefits.

Key Provisions

• Amends Section 16-33C-7 to extend the period for utilizing PACT benefits from 10 years to 12 years after the designated beneficiary's college entrance date.
• If, after 12 years, neither the contract has been terminated nor the beneficiary's rights exercised, the contract purchase amount is presumed unclaimed and abandoned property and handled under the Alabama Unclaimed Property Act, with the PACT board attempting to locate the purchaser first.
• The act becomes effective on the first day of the third month following its passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Prepaid Affordable College Tuition (PACT) Program