(a) A prepaid tuition contract shall specify:(1) the name of the person entitled to any refund if the contract is terminated;(2) the terms under which a person is entitled to a refund; and(3) the method by which the amount of the refund is calculated.(b) The person named in the contract is entitled to a refund following termination of a prepaid tuition contract.(c) The board shall determine the method by which the amount of the refund is calculated.(d) The board shall comply with Section 529 of the Internal Revenue Code of 1986 in imposing penalties for refunds and excess amounts payable under Sections 54.619(d) and (e).Amended by Acts 1997, 75th Leg., ch. 522, Sec. 5, eff. 9/1/1997.Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. 9/1/1995.