HB123 Summary

• Establishes separate boards of directors for the Alabama Prepaid Affordable College Tuition (PACT) Program and the Alabama College Education Savings (ACES) Program, each with independent governance authority.

• ACES board consists of 10 members including the Lieutenant Governor, State Treasurer, Chancellor of the Alabama Department of Postsecondary Education, and representatives appointed by various legislative and executive officials.

• PACT board expanded to 15 members including the Director of Finance, State Treasurer, Governor appointees, legislative representatives, and education sector leaders with expertise in investments and financial planning.

• PACT board members must have fiduciary responsibility to devise and implement investment strategies designed to maximize returns correlating with future benefit payouts and board membership must reflect racial, gender, geographic, urban/rural, and economic diversity of the state.

• Both boards granted authority over trust funds, administrative funds, contract terms, investment guidelines, and reporting requirements to state officials and legislators.