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AL SB162

Bill

Status

Passed

4/22/2010

Primary Sponsor

Hinton Mitchem

Click for details

Origin

Senate

Regular Session 2010

AI Summary

SB162 Summary

  • Appropriates funds from the Education Trust Fund to Alabama's Prepaid Affordable College Tuition (PACT) Program for fiscal years 2015-2027, with specific amounts ranging from $7.1 million to $81.6 million annually to achieve full funding by fiscal year 2020.

  • Establishes the PACT Program with its own independent 15-member board of directors (separate from the ACES Program board), including representatives from state agencies, legislature, higher education institutions, and contract holders.

  • Caps tuition and mandatory fees charged to PACT plan beneficiaries at public Alabama colleges and universities at September 30, 2009 levels, allowing only 2.5% annual increases or actual increases, whichever is less, unless fund earnings exceed specific thresholds.

  • Repeals Section 16-33C-9 regarding fund dissolution and provides that remaining PACT Trust Fund assets transfer to the Education Trust Fund after all contract obligations are paid.

  • Creates legal protections limiting personal liability of PACT and ACES board members for investment losses and program actions taken in good faith.

Legislative Description

Prepaid Affordable College Tuition (PACT) Program, separate board of directors from Alabama College Education Savings (ACES) Program, members, duties, annual appropriations from Education Trust Fund to PACT Trust Fund for certain fiscal years, certain specific appropriations made to PACT Trust Fund for certain years, tuition limited at certain colleges, limited liability of PACT Board and ACES Board, Sec. 16-33C-4.1 added; Secs. 16-33C-3, 16-33C-4, 16-33C-5, 16-33C-6, 16-33C-7, 16-33C-8, 16-33C-10, 16-33C-11, 16-33C-12 am'd.; Sec. 16-33C-9 repealed

Prepaid Affordable College Tuition (PACT) Program

Last Action

Forwarded to Executive Department on April 22, 2010

4/22/2010

Committee Referrals

Education Appropriations2/16/2010
Fiscal Responsibility and Accountability1/12/2010

Full Bill Text

No bill text available