Texas 2009 - 81st Regular

Texas Senate Bill SB1760 Compare Versions

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1	1	S.B. No. 1760
2	2
3	3
4	4	AN ACT
5	5	relating to the administration of the Texas Save and Match Program
6	6	to assist qualifying beneficiaries under the state's prepaid
7	7	tuition plans and college savings plans and to the treatment of a
8	8	beneficiary's assets under prepaid tuition plans and college
9	9	savings plans in determining eligibility for student financial
10	10	assistance and other assistance programs.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 54, Education Code, is amended by adding
13	13	Subchapter I to read as follows:
14	14	SUBCHAPTER I. TEXAS SAVE AND MATCH PROGRAM
15	15	Sec. 54.801. DEFINITIONS. In this subchapter:
16	16	(1) "Beneficiary" means a beneficiary on whose behalf
17	17	a purchaser enters into a prepaid tuition contract with the board
18	18	under Subchapter F or H or for whom a savings trust account is
19	19	opened under Subchapter G.
20	20	(2) "Board" means the Prepaid Higher Education Tuition
21	21	Board.
22	22	(3) "Participating beneficiary" means a beneficiary
23	23	for whom a matching account has been opened under this subchapter.
24	24	(4) "Program" means the Texas Save and Match Program
25	25	established under this subchapter.
26	26	Sec. 54.802. TEXAS SAVE AND MATCH PROGRAM. (a) The board
27	27	shall develop and implement the Texas Save and Match Program under
28	28	which the board:
29	29	(1) opens a matching account for each eligible
30	30	beneficiary, as determined by Section 54.803; and
31	31	(2) matches money paid by a purchaser under a prepaid
32	32	tuition contract under Subchapter F or H on behalf of the
33	33	beneficiary, or contributed to a savings trust account by an
34	34	account owner under the Higher Education Savings Plan under
35	35	Subchapter G on behalf of the beneficiary with matching
36	36	contributions or a matching purchase of tuition units, as
37	37	applicable, using money appropriated by the legislature for the
38	38	program and any contributions made by any person to the
39	39	beneficiary's matching account.
40	40	(b) Notwithstanding other law, for purposes of Subchapter
41	41	I, Chapter 659, Government Code:
42	42	(1) the Texas Save and Match Program is considered an
43	43	eligible charitable organization entitled to participate in a state
44	44	employee charitable campaign under Subchapter I, Chapter 659,
45	45	Government Code; and
46	46	(2) a state employee is entitled to authorize a
47	47	payroll deduction for contributions to the Texas Save and Match
48	48	Program as a charitable contribution under Section 659.132,
49	49	Government Code.
50	50	Sec. 54.803. INITIAL ELIGIBILITY FOR PARTICIPATION IN
51	51	PROGRAM. (a) To be initially eligible to participate in the
52	52	program, a beneficiary, at the time a prepaid tuition contract is
53	53	entered into on the beneficiary's behalf under Subchapter F or H, or
54	54	a savings trust account is opened on the beneficiary's behalf under
55	55	Subchapter G, as applicable, must:
56	56	(1) be:
57	57	(A) a resident of this state; or
58	58	(B) a dependent for purposes of Section 152,
59	59	Internal Revenue Code of 1986, of a resident described by Paragraph
60	60	(A);
61	61	(2) be younger than seven years of age; and
62	62	(3) have a household adjusted gross income, for the
63	63	most recently completed tax year, that is not more than 400 percent
64	64	of the federal poverty level.
65	65	(b) To determine whether a beneficiary is initially
66	66	eligible to participate in the program, the board shall solicit
67	67	from the purchaser who enters into a prepaid tuition contract on the
68	68	beneficiary's behalf under Subchapter F or H, or the individual who
69	69	opens a savings trust account on the beneficiary's behalf under
70	70	Subchapter G, as applicable, at the time the purchaser or
71	71	individual enters into the contract or agreement with the board and
72	72	in the manner prescribed by board rule, information necessary to
73	73	determine the beneficiary's eligibility.
74	74	Sec. 54.804. LIMITATIONS. (a) An eligible beneficiary may
75	75	participate in the program for not more than five calendar years if
76	76	the beneficiary continues to meet the criteria prescribed by
77	77	Section 54.803(a). The five-year period may be consecutive or
78	78	nonconsecutive. The board shall prescribe procedures for verifying
79	79	a participating beneficiary's continued eligibility under this
80	80	section.
81	81	(b) A participating beneficiary may receive a matching
82	82	grant or a purchase of matching tuition units to the beneficiary's
83	83	matching account in any particular calendar year only if at least
84	84	$100 is paid under a prepaid tuition contract under Subchapter F or
85	85	H or is contributed to the beneficiary's savings trust account
86	86	under Subchapter G, as applicable, during that year. Contributions
87	87	or purchases in excess of $500 in any calendar year are not eligible
88	88	for a match under the program.
89	89	(c) Withdrawals from a matching account may be used only for
90	90	qualified higher educational expenses of the participating
91	91	beneficiary for whom the matching account is established. Funds in
92	92	a matching account must be disbursed directly to providers of
93	93	qualified higher education services and may not be disbursed
94	94	directly to the beneficiary.
95	95	(d) Tuition units in a participating beneficiary's matching
96	96	account may be redeemed only by the board or by a qualified
97	97	institution of higher education in the manner prescribed by the
98	98	board on behalf of the participating beneficiary.
99	99	(e) Any funds or unused tuition units in a matching account
100	100	that are not withdrawn or redeemed by the participating beneficiary
101	101	before the beneficiary's 30th birthday are forfeited and shall be
102	102	returned to a pool of matching funds maintained by the board.
103	103	Sec. 54.805. MATCH RATIOS. The board shall develop a
104	104	variable formula based on adjusted annual household income to
105	105	determine the amount of matching funds or matching purchases of
106	106	tuition units to which eligible participating beneficiaries are
107	107	entitled under the program in a year. Depending on the availability
108	108	of funds, for each dollar contributed to a participating
109	109	beneficiary's savings trust account under Subchapter G or paid by a
110	110	purchaser under a prepaid tuition contract on behalf of the
111	111	beneficiary under Subchapter F or H in a calendar year, the board
112	112	shall match the contribution or purchase using the following
113	113	guidelines:
114	114	(1) $2, if the beneficiary's household adjusted income
115	115	for the most recently completed tax year is less than or equal to
116	116	200 percent of the federal poverty level;
117	117	(2) $1, if the beneficiary's household adjusted income
118	118	for the most recently completed tax year is more than 200 percent of
119	119	the federal poverty level but not more than 300 percent of the
120	120	federal poverty level; or
121	121	(3) 50 cents, if the beneficiary's household adjusted
122	122	income for the most recently completed tax year is more than 300
123	123	percent of the federal poverty level but not more than 400 percent
124	124	of the federal poverty level.
125	125	Sec. 54.806. MATCHING ACCOUNT ADMINISTRATION. (a) A
126	126	matching account opened on behalf of a beneficiary under this
127	127	subchapter must be accounted separately from the beneficiary's
128	128	prepaid tuition contract balance or savings trust account balance.
129	129	(b) To the extent possible, money or tuition units in a
130	130	participating beneficiary's matching account shall be withdrawn or
131	131	redeemed before money is withdrawn or tuition units are redeemed
132	132	under Subchapter F, G, or H, as applicable.
133	133	(c) Information relating to the beneficiary of a matching
134	134	account, including personally identifiable information regarding
135	135	the beneficiary, is confidential and is not subject to disclosure
136	136	under Chapter 552, Government Code.
137	137	(d) The board shall, to the extent possible, provide with
138	138	any periodic statement provided by the board in regard to a
139	139	beneficiary the balance of the matching account opened on the
140	140	beneficiary's behalf under this subchapter.
141	141	Sec. 54.807. EFFECT OF ACCOUNT BALANCE ON BENEFICIARY'S
142	142	ELIGIBILITY FOR STUDENT FINANCIAL ASSISTANCE. Money or tuition
143	143	units in a beneficiary's matching account may not be considered as
144	144	available to the beneficiary, or otherwise included in the
145	145	beneficiary's household income or financial resources, for
146	146	purposes of determining the beneficiary's eligibility for a TEXAS
147	147	grant or any other state-funded student financial assistance.
148	148	Sec. 54.808. SOLICITATION AND ACCEPTANCE OF GIFTS, GRANTS,
149	149	AND DONATIONS. The board may accept gifts, grants, and donations
150	150	from any public or private source for the purposes of this
151	151	subchapter.
152	152	Sec. 54.809. PILOT PROJECTS UNDER PROGRAM. To fulfill the
153	153	intent of the program, the board may establish pilot projects under
154	154	the program in an effort to incentivize participation in the
155	155	Prepaid Higher Education Tuition Program under Subchapter F, the
156	156	Higher Education Savings Program under Subchapter G, and the
157	157	Prepaid Tuition Unit Undergraduate Education Program under
158	158	Subchapter H, including projects that incentivize participation
159	159	by:
160	160	(1) awarding additional matching grants based on a
161	161	beneficiary's achievement of specified academic goals;
162	162	(2) offering additional seed matching grants on the
163	163	opening of a savings trust account or the purchase of a prepaid
164	164	tuition contract; and
165	165	(3) providing incentives for employers to contribute
166	166	matching funds to the program.
167	167	Sec. 54.810. RULES. The board shall adopt rules for the
168	168	administration of this subchapter.
169	169	SECTION 2. Section 54.702, Education Code, is amended by
170	170	adding Subsection (c-1) to read as follows:
171	171	(c-1) The board shall waive the amount of any enrollment fee
172	172	charged by the board for a new account under this subchapter for any
173	173	beneficiary whose household adjusted gross income for the most
174	174	recently completed tax year is not more than 200 percent of the
175	175	federal poverty level.
176	176	SECTION 3. Subchapter C, Chapter 62, Health and Safety
177	177	Code, is amended by adding Section 62.1012 to read as follows:
178	178	Sec. 62.1012. EXCLUSION OF ASSETS IN PREPAID TUITION
179	179	PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. For purposes of
180	180	determining whether a child meets family income and resource
181	181	requirements for eligibility for the child health plan, the
182	182	commission may not consider as income or resources a right to assets
183	183	held in or a right to receive payments or benefits under:
184	184	(1) any fund or plan established under Subchapter F,
185	185	G, H, or I, Chapter 54, Education Code, including an interest in a
186	186	savings trust account, prepaid tuition contract, or related
187	187	matching account; or
188	188	(2) any qualified tuition program of any state that
189	189	meets the requirements of Section 529, Internal Revenue Code of
190	190	1986.
191	191	SECTION 4. Subchapter A, Chapter 31, Human Resources Code,
192	192	is amended by adding Section 31.0039 to read as follows:
193	193	Sec. 31.0039. EXCLUSION OF ASSETS IN PREPAID TUITION
194	194	PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. For purposes of
195	195	determining the amount of financial assistance granted to an
196	196	individual under this chapter for the support of dependent children
197	197	or determining whether the family meets household income and
198	198	resource requirements for financial assistance under this chapter,
199	199	the department may not consider the right to assets held in or the
200	200	right to receive payments or benefits under:
201	201	(1) any fund or plan established under Subchapter F,
202	202	G, H, or I, Chapter 54, Education Code, including an interest in a
203	203	savings trust account, prepaid tuition contract, or related
204	204	matching account; or
205	205	(2) any qualified tuition program of any state that
206	206	meets the requirements of Section 529, Internal Revenue Code of
207	207	1986.
208	208	SECTION 5. Subchapter B, Chapter 32, Human Resources Code,
209	209	is amended by adding Section 32.02611 to read as follows:
210	210	Sec. 32.02611. EXCLUSION OF ASSETS IN PREPAID TUITION
211	211	PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. (a) Except as
212	212	provided by Subsection (b), in determining eligibility and need for
213	213	medical assistance, the department may not consider as assets or
214	214	resources a right to assets held in or a right to receive payments
215	215	or benefits under:
216	216	(1) any fund or plan established under Subchapter F,
217	217	G, H, or I, Chapter 54, Education Code, including an interest in a
218	218	savings trust account, prepaid tuition contract, or related
219	219	matching account; or
220	220	(2) any qualified tuition program of any state that
221	221	meets the requirements of Section 529, Internal Revenue Code of
222	222	1986.
223	223	(b) In determining eligibility and need for medical
224	224	assistance for an applicant who may be eligible on the basis of the
225	225	applicant's eligibility for medical assistance for the aged, blind,
226	226	or disabled under 42 U.S.C. Section 1396a(a)(10), as amended, the
227	227	department may consider as assets or resources a right to assets
228	228	held in or a right to receive payments or benefits under any fund,
229	229	plan, or tuition program described by Subsection (a).
230	230	(c) Notwithstanding Subsection (b), the department shall
231	231	seek a federal waiver authorizing the department to exclude, for
232	232	purposes of determining the eligibility of an applicant described
233	233	by that subsection, the right to assets held in or a right to
234	234	receive payments or benefits under any fund, plan, or tuition
235	235	program described by Subsection (a) if the fund, plan, or tuition
236	236	program was established before the 21st birthday of the beneficiary
237	237	of the fund, plan, or tuition program.
238	238	SECTION 6. Section 54.7521, Education Code, is repealed.
239	239	SECTION 7. The Prepaid Higher Education Tuition Board shall
240	240	adopt rules as required by Subchapter I, Chapter 54, Education
241	241	Code, as added by this Act, not later than November 1, 2009.
242	242	SECTION 8. Subchapter I, Chapter 54, Education Code, as
243	243	added by this Act, applies only to a prepaid tuition contract
244	244	purchased for a beneficiary under Subchapter F or H, Chapter 54,
245	245	Education Code, or a savings trust account opened for a beneficiary
246	246	under Subchapter G, Chapter 54, Education Code, on or after January
247	247	1, 2010.
248	248	SECTION 9. The Texas Save and Match Program is entitled to
249	249	participate in the state employee charitable campaign conducted
250	250	during the autumn of 2009 without regard to any limitation on the
251	251	time during which an organization must apply to participate in the
252	252	campaign.
253	253	SECTION 10. If before implementing any provision of this
254	254	Act a state agency determines that a waiver or authorization from a
255	255	federal agency is necessary for implementation of that provision,
256	256	the agency affected by the provision shall request the waiver or
257	257	authorization and may delay implementing that provision until the
258	258	waiver or authorization is granted.
259	259	SECTION 11. The changes in law made by this Act apply to a
260	260	person who receives health benefits coverage under Chapter 62,
261	261	Health and Safety Code, financial assistance under Chapter 31,
262	262	Human Resources Code, or medical assistance under Chapter 32, Human
263	263	Resources Code, on or after the effective date of this Act,
264	264	regardless of the date on which eligibility for coverage or
265	265	assistance was initially determined.
266	266	SECTION 12. This Act takes effect September 1, 2009.
267	267	______________________________ ______________________________
268	268	President of the Senate Speaker of the House
269	269	I hereby certify that S.B. No. 1760 passed the Senate on
270	270	April 22, 2009, by the following vote: Yeas 30, Nays 0; and that
271	271	the Senate concurred in House amendment on May 29, 2009, by the
272	272	following vote: Yeas 31, Nays 0.
273	273	______________________________
274	274	Secretary of the Senate
275	275	I hereby certify that S.B. No. 1760 passed the House, with
276	276	amendment, on May 26, 2009, by the following vote: Yeas 146,
277	277	Nays 0, one present not voting.
278	278	______________________________
279	279	Chief Clerk of the House
280	280	Approved:
281	281	______________________________
282	282	Date
283	283	______________________________
284	284	Governor