[2] In 2003, the 78th Legislature passed House Bill (HB) 3015, amending Texas Education Code §54.0513 to allow governing boards of public universities to set different designated tuition rates, rather than being forced to charge what the State thought was appropriate.
The state shall hold the assets of the fund for the exclusive purposes of providing benefits to participants and beneficiaries and defraying reasonable expenses of administering the program.
Investments shall be made in the exercise of judgment and care under the circumstances that a person of ordinary prudence, discretion, and intelligence exercises in the management of the person's affairs, not for speculation, but for the permanent disposition of funds, considering the probable income from the disposition as well as the probable safety of capital.
A February 19, 2007 article in the Daily Texan reported that the Texas Tomorrow Fund program is in debt due to tuition deregulation.
From one of these three categories, parents will be able to buy semester hours in units (a unit represents 1% of a year's tuition, based on two semesters of 15 credit-hours each), with prices based on the type of college the student plans to attend: If the student enrolls in a college more expensive than the weighted average for their level of plan, they will have to pay the difference (either with extra units or with money from other sources), ensuring that this program should not experience the shortfall problems of the previous program.
On August 24, 2009, the Texas Prepaid Higher Education Tuition Board published a substantial change to the contract terms of the program.
Participants cancel matured contracts will receive a refund based upon their contributions plus earnings, minus applicable fees.
Those who choose to opt out of the plan (and receive either actual tuition-based earnings or lump sum actuarial value) may do so through January 31, 2010.