HB181 Summary

• Repeals existing limits on tuition costs for certain PACT plan contract participants, allowing PACT payments to track actual current semester tuition and mandatory fees at in-state institutions.

• Authorizes the PACT Board to enroll new eligible families in the PACT program and requires the State of Alabama to commit to paying all obligations to PACT participants.

• Extends tuition caps to all colleges and universities in the state, including those under constitutional board of trustee oversight, and mandates all public institutions limit annual fee and tuition increases to the average percentage increase over the previous 10-year period.

• Limits PACT portfolio investments to no more than 60 percent equity holdings and no more than 40 percent income holdings, with investment guidelines including failsafe measures against extreme market fluctuations.

• Becomes effective on the first day of the third month following passage and approval by the Governor.