Texas Education Code

§ 54.706 — CONTRACT BETWEEN BOARD AND PLAN MANAGER

ED § 54.706Title 3. HIGHER EDUCATION · Part A. HIGHER EDUCATION IN GENERAL · Ch. 54. TUITION AND FEES · Art. G. HIGHER EDUCATION SAVINGS PLAN

Statute text

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(a)A contract between the board and a financial institution to act as a plan manager under this subchapter must be for a term of at least five years and may be renewable.

(b)If the contract is not renewed, the following conditions apply at the end of the term of the contract, so long as applying the conditions does not disqualify the plan as a qualified state tuition program under Section 529, Internal Revenue Code of 1986, as amended:

(1)the board shall continue to maintain the plan at the financial institution;

(2)accounts previously established at the financial institution may not be terminated, except as provided by Subdivision (5) or Subsection (c);

(3)additional contributions may be made to the accounts;

(4)new accounts may not be opened with that financial institution; and

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Legislative history

Added by Acts 2001, 77th Leg., ch. 1250, Sec. 1, eff. June 15, 2001.