Sec. 54.633.  PREPAID HIGHER EDUCATION TUITION SCHOLARSHIPS FOR STUDENTS.  (a)  To the extent money is available, the board or the board of a direct-support organization established by the board under Subsection (e) may award a prepaid higher education tuition scholarship to a student who meets:
(1)  economic or academic requirements adopted by the board;  or
(2)  economic or academic requirements established by the board of a direct-support organization that are approved by the board.
(b)  A scholarship awarded under this section terminates if the student to whom the scholarship is awarded is:
(1)  convicted of, or adjudicated as having engaged in delinquent conduct constituting, an offense under Chapter 481, Health and Safety Code;  or
(2)  convicted of, or adjudicated as having engaged in delinquent conduct constituting, a felony or Class A misdemeanor.
(c)  The board shall ensure that each region of the state is equitably represented in the awarding of scholarships under this section.
(d)  Scholarships under this section may be funded by the private sector, the state, or a local government of the state.
(e)  The board may establish a direct-support organization under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) to:
(1)  receive, hold, invest, and administer money, gifts, grants, loans, or other property for or on behalf of the program;  
(2)  purchase and award scholarships under this section;  and
(3)  establish economic and academic eligibility requirements that are approved by the board.
(f)  The board of directors of the direct-support organization consists of:
(1)  the comptroller;
(2)  a member appointed by the governor with the advice and consent of the senate;  and
(3)  three members appointed jointly by the comptroller and the member appointed by the governor.
(g)  The comptroller serves as executive director of the board of the direct-support organization.  The comptroller shall:
(1)  select and assign employees of the comptroller to serve as the staff to the board of the direct-support organization;
(2)  select and supervise the staff of the board of the direct-support organization and perform other duties delegated to the comptroller by the board of the direct-support organization;  and
(3)  provide to the board of the direct-support organization and to that board's staff, as necessary, information regarding that board's qualifications for office or employment under this subchapter and responsibilities under applicable laws relating to standards of conduct for state officers or employees.
(h)  The board of the direct-support organization shall develop and implement policies that clearly separate the policy-making responsibilities of the board of the direct-support organization and the management responsibilities of the comptroller and the staff of the board of the direct-support organization.
(i)  The board must certify that the direct-support organization operates in a manner consistent with the goals of this state and in the best interests of this state.
(j)  The board may contract with an independent certified public accountant to annually audit the direct-support organization under rules adopted by the board.  The board shall submit the audit to the comptroller, governor, lieutenant governor, speaker of the house of representatives, Legislative Budget Board, Legislative Audit Committee, and Texas Higher Education Coordinating Board.  The comptroller may require the direct-support organization or independent certified public accountant to provide additional information relating to the operation of the organization.
(k)  The identity of a donor under this section who desires to remain anonymous and the records of the direct-support organization, other than the records disclosed under Subsection (j), are confidential.
(l)  A prepaid tuition contract may be purchased for scholarship purposes under this section without identifying a specific beneficiary.
(m)  In awarding a scholarship under this section, the awarding entity may not award a scholarship using funds derived from this state or a local government unless the awarding entity determines, using sound actuarial principles, that awarding the scholarship will not jeopardize the soundness of the fund or require an appropriation from the state to cover the tuition and required fees.
 
Text of subsection as added by Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 2
 
(n)  If the comptroller determines that the purpose of a direct-support organization established under Subsection (e) has been substantially complied with, the comptroller may dissolve the organization.  On dissolution, the title to all funds and properties then owned by the organization shall transfer to the Texas Match the Promise Foundation.
 
Text of subsection as added by Acts 2019, 86th Leg., R.S., Ch. 837 (H.B. 2668), Sec. 1
 
(n)  The comptroller may dissolve a direct-support organization established under Subsection (e) if the comptroller determines that the purpose of the organization has been substantially complied with and orders the dissolution.  On dissolution of the organization, title to all funds and property held by the organization is transferred to the Texas Match the Promise Foundation or a successor entity.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 522, Sec. 6, eff. Sept. 1, 1997.
Amended by: 
Acts 2013, 83rd Leg., R.S., Ch. 1312 (S.B. 59), Sec. 13, eff. September 1, 2013.
Acts 2019, 86th Leg., R.S., Ch. 837 (H.B. 2668), Sec. 1, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 903 (H.B. 3655), Sec. 2, eff. June 10, 2019.