81R6288 ALB-D By: Villarreal H.B. No. 1938 A BILL TO BE ENTITLED AN ACT relating to the exclusion of certain college savings plan assets and benefits from eligibility determination for certain public assistance programs. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 62, Health and Safety Code, is amended by adding Section 62.1012 to read as follows: Sec. 62.1012. EXCLUSION OF COLLEGE SAVINGS PLANS. For purposes of determining whether a child meets family income and resource requirements for eligibility for the child health plan, the commission may not consider as income or resources a right to assets held in or a right to receive payments or benefits under any of the following: (1) any fund or plan established under Subchapter F or H, Chapter 54, Education Code, including an interest in a prepaid tuition contract; (2) any fund or plan established under Subchapter G, Chapter 54, Education Code, including an interest in a savings trust account; or (3) any qualified tuition program of any state that meets the requirements of Section 529, Internal Revenue Code of 1986. SECTION 2. Subchapter A, Chapter 31, Human Resources Code, is amended by adding Section 31.0039 to read as follows: Sec. 31.0039. EXCLUSION OF COLLEGE SAVINGS PLANS. For purposes of determining the amount of financial assistance granted to an individual under this chapter for the support of dependent children or determining whether the family meets household income and resource requirements for financial assistance under this chapter, the department may not consider the right to assets held in or the right to receive payments or benefits under any of the following: (1) any fund or plan established under Subchapter F or H, Chapter 54, Education Code, including an interest in a prepaid tuition contract; (2) any fund or plan established under Subchapter G, Chapter 54, Education Code, including an interest in a savings trust account; or (3) any qualified tuition program of any state that meets the requirements of Section 529, Internal Revenue Code of 1986. SECTION 3. Subchapter B, Chapter 32, Human Resources Code, is amended by adding Section 32.02611 to read as follows: Sec. 32.02611. EXCLUSION OF COLLEGE SAVINGS PLANS. (a) Except as provided by Subsection (b), in determining eligibility and need for medical assistance, the department may not consider as assets or resources a right to assets held in or a right to receive payments or benefits under any of the following: (1) any fund or plan established under Subchapter F or H, Chapter 54, Education Code, including an interest in a prepaid tuition contract; (2) any fund or plan established under Subchapter G, Chapter 54, Education Code, including an interest in a savings trust account; or (3) any qualified tuition program of any state that meets the requirements of Section 529, Internal Revenue Code of 1986. (b) In determining eligibility and need for medical assistance for an applicant who may be eligible on the basis of the applicant's eligibility for medical assistance for the aged, blind, or disabled under 42 U.S.C. Section 1396a(10), as amended, the department may consider as assets or resources a right to assets held in or a right to receive payments or benefits under any fund, plan, or tuition program described by Subsection (a). (c) Notwithstanding Subsection (b), the department shall seek a federal waiver authorizing the department to exclude, for purposes of determining the eligibility of an applicant described by that subsection, the right to assets held in or a right to receive payments or benefits under any fund, plan, or tuition program described by Subsection (a) if the fund, plan, or tuition program was established before the 21st birthday of the beneficiary of the fund, plan, or tuition program. SECTION 4. If before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted. SECTION 5. The changes in law made by this Act apply to a person who receives health benefits coverage under Chapter 62, Health and Safety Code, financial assistance under Chapter 31, Human Resources Code, or medical assistance under Chapter 32, Human Resources Code, on or after the effective date of this Act, regardless of the date on which eligibility for coverage or assistance was initially determined. SECTION 6. This Act takes effect September 1, 2009.