Senate Bill 2724

AN ACT TO AMEND SECTION 37-155-25, MISSISSIPPI CODE OF 1972, TO REQUIRE THE LEGISLATURE TO FULLY FUND THE MISSISSIPPI PREPAID AFFORDABLE COLLEGE TUITION PROGRAM; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 37-155-25, Mississippi Code of 1972, is amended as follows:

37-155-25. The state shall * * * ~~agree to~~ meet the obligations of the board to beneficiaries if monies in the fund fail to offset the obligations of the board. Effective with fiscal year 2022, the Legislature shall fully fund the Mississippi Prepaid Affordable College Tuition program. If there is not enough money in the fund to pay the tuition and required fees of the institution of higher education in which a beneficiary enrolls as provided by the prepaid tuition contract, the Legislature shall appropriate to the fund the amount necessary for the board to pay the applicable amount of tuition and required fees of the institution.

In the event that the board determines the program to be financially infeasible, the board may discontinue the program. Any qualified beneficiary who has been accepted by and is enrolled or is within five (5) years of enrollment in an institution of higher learning or any in-state or out-of-state regionally accredited private four- or two-year college or an out-of-state regionally accredited, state-supported, nonprofit four- or two-year college or university shall be entitled to exercise the complete benefits for which he has contracted. All other contract holders shall receive a refund, pursuant to Section 37-155-9, of the amount paid in and an additional amount in the nature of interest at a rate that corresponds, at a minimum, to the prevailing interest rates for savings accounts provided by banks and savings and loan associations.

SECTION 2. This act shall take effect and be in force from and after July 1, 2021.