1 | 1 | | 84R4382 KSD-D |
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2 | 2 | | By: Lucio III H.B. No. 727 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the establishment of a pilot program under which high |
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8 | 8 | | school students may accrue prepaid tuition units at public |
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9 | 9 | | institutions of higher education by completing certain community |
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10 | 10 | | service activities. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Subchapter H, Chapter 54, Education Code, is |
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13 | 13 | | amended by adding Section 54.7522 to read as follows: |
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14 | 14 | | Sec. 54.7522. SERVE YOUR WAY TO COLLEGE PILOT PROGRAM. (a) |
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15 | 15 | | In this section: |
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16 | 16 | | (1) "Participating organization" means a nonprofit, |
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17 | 17 | | charitable, or community organization that registers with and is |
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18 | 18 | | approved by the board to participate in the Serve Your Way to |
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19 | 19 | | College pilot program under this section. |
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20 | 20 | | (2) "Pilot program" means the Serve Your Way to |
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21 | 21 | | College pilot program established under this section. |
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22 | 22 | | (3) "Qualifying community service activity" includes |
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23 | 23 | | work performed by a student for a participating organization, other |
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24 | 24 | | than: |
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25 | 25 | | (A) fund-raising activities; |
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26 | 26 | | (B) political activities; |
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27 | 27 | | (C) any activity for which the student may earn |
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28 | 28 | | course credit; or |
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29 | 29 | | (D) any activity that reduces the work of or |
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30 | 30 | | displaces a current employee of the organization. |
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31 | 31 | | (b) The board by rule shall develop and implement the Serve |
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32 | 32 | | Your Way to College pilot program, under which students enrolled in |
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33 | 33 | | grades 7-12 at public schools in participating school districts in |
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34 | 34 | | this state may accrue prepaid tuition units under this subchapter |
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35 | 35 | | for completing qualifying community service activities. |
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36 | 36 | | (c) The board, in cooperation with the commissioner of |
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37 | 37 | | education, shall select to participate in the pilot program one |
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38 | 38 | | school district from each of the following geographic regions of |
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39 | 39 | | this state: |
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40 | 40 | | (1) North Texas; |
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41 | 41 | | (2) South Texas; |
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42 | 42 | | (3) East Texas; |
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43 | 43 | | (4) West Texas; and |
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44 | 44 | | (5) Central Texas. |
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45 | 45 | | (d) The school districts selected under Subsection (c) to |
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46 | 46 | | participate in the pilot program must include at least one urban |
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47 | 47 | | district, one rural district, one small district, and one large |
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48 | 48 | | district. |
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49 | 49 | | (e) To participate in the pilot program, a student must |
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50 | 50 | | register with the board, in the manner prescribed by the board, not |
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51 | 51 | | later than 3-1/2 academic years before the student's expected high |
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52 | 52 | | school graduation date. |
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53 | 53 | | (f) Except as provided by Subsection (h)(2), for each hour a |
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54 | 54 | | participating student engages in a qualifying community service |
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55 | 55 | | activity, the student earns a credit in the amount prescribed by the |
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56 | 56 | | board to be applied toward the purchase of tuition units on behalf |
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57 | 57 | | of the student under this subchapter. The hourly amount of the |
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58 | 58 | | credit prescribed under this subsection may not be less than the |
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59 | 59 | | federal minimum hourly wage. |
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60 | 60 | | (g) The board shall act as purchaser under this subchapter |
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61 | 61 | | for each student who participates in the pilot program. In |
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62 | 62 | | purchasing prepaid tuition credits for the student, the board shall |
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63 | 63 | | purchase the type of unit as directed by the student or, if the |
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64 | 64 | | student is a minor, as directed by the student's parents or |
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65 | 65 | | guardian. If the student or the student's parents or guardian does |
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66 | 66 | | not direct the board regarding the type of unit to be purchased, the |
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67 | 67 | | board shall purchase the type of prepaid tuition unit the board |
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68 | 68 | | considers appropriate. |
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69 | 69 | | (h) Each participating student: |
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70 | 70 | | (1) is responsible for securing the student's |
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71 | 71 | | placement with a participating organization; and |
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72 | 72 | | (2) may accrue prepaid tuition units under this |
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73 | 73 | | section for qualifying community service activities performed by |
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74 | 74 | | the student for one or more participating organizations, except |
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75 | 75 | | that the student: |
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76 | 76 | | (A) must perform at least 50 hours of qualifying |
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77 | 77 | | community service activities before any tuition unit may be |
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78 | 78 | | purchased on behalf of the student under this section; and |
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79 | 79 | | (B) may not accrue tuition units under this |
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80 | 80 | | section for qualifying community service activities performed by |
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81 | 81 | | the student for one or more participating organizations in excess |
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82 | 82 | | of 250 hours per year. |
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83 | 83 | | (i) Notwithstanding any other provision of this subchapter, |
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84 | 84 | | a student: |
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85 | 85 | | (1) may redeem tuition units purchased by the board on |
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86 | 86 | | behalf of the student under this section only to pay costs of |
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87 | 87 | | tuition and required fees for enrollment at a general academic |
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88 | 88 | | teaching institution or two-year institution of higher education; |
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89 | 89 | | and |
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90 | 90 | | (2) may not redeem tuition units purchased by the |
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91 | 91 | | board on behalf of the student under this section: |
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92 | 92 | | (A) before the third anniversary of the date the |
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93 | 93 | | tuition units were purchased; or |
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94 | 94 | | (B) after the 10th anniversary of the date the |
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95 | 95 | | beneficiary was projected to graduate from high school when the |
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96 | 96 | | beneficiary initially registered with the board to participate in |
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97 | 97 | | the pilot program. |
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98 | 98 | | (j) Sections 54.759(a) and (b) do not apply to tuition units |
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99 | 99 | | purchased under this section. For tuition units purchased on |
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100 | 100 | | behalf of a beneficiary under this section, the board shall |
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101 | 101 | | designate a new beneficiary only if: |
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102 | 102 | | (1) the original beneficiary has died; |
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103 | 103 | | (2) the original beneficiary's parents or guardian has |
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104 | 104 | | requested the designation of the new beneficiary; and |
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105 | 105 | | (3) the new beneficiary: |
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106 | 106 | | (A) is related to the original beneficiary by |
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107 | 107 | | consanguinity or marriage; |
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108 | 108 | | (B) is currently enrolled in a high school or |
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109 | 109 | | institution of higher education in this state; |
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110 | 110 | | (C) meets the requirements for a beneficiary |
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111 | 111 | | under this subchapter on the date the designation is changed; and |
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112 | 112 | | (D) meets the requirements of Section 529, |
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113 | 113 | | Internal Revenue Code of 1986, to prevent the change of beneficiary |
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114 | 114 | | from being treated as a distribution under that law. |
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115 | 115 | | (k) Notwithstanding Section 54.763, money used to purchase |
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116 | 116 | | tuition units under this section may not be refunded to the board or |
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117 | 117 | | any other person. |
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118 | 118 | | (l) The board shall adopt forms for the administration of |
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119 | 119 | | this section, including registration forms for students and |
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120 | 120 | | participating organizations. |
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121 | 121 | | (m) The board may solicit and accept gifts, grants, and |
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122 | 122 | | donations from any public or private source for the purposes of this |
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123 | 123 | | section. |
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124 | 124 | | (n) Each participating school district, as soon as |
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125 | 125 | | practicable at the beginning of a student's seventh, eighth, and |
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126 | 126 | | ninth grade years, shall provide information to the student and the |
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127 | 127 | | student's parents or guardian regarding the pilot program. |
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128 | 128 | | (o) Not later than January 1, 2023, the board shall prepare |
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129 | 129 | | and deliver to the lieutenant governor, the speaker of the house of |
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130 | 130 | | representatives, and the presiding officer of the standing |
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131 | 131 | | committee of each house of the legislature with primary |
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132 | 132 | | jurisdiction over higher education a report addressing the success |
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133 | 133 | | of the pilot program under this section. This subsection expires |
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134 | 134 | | September 1, 2024. |
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135 | 135 | | SECTION 2. The Prepaid Higher Education Tuition Board shall |
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136 | 136 | | adopt rules to implement the Serve Your Way to College pilot program |
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137 | 137 | | as required by Section 54.7522, Education Code, as added by this |
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138 | 138 | | Act, beginning with the 2016-2017 school year. |
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139 | 139 | | SECTION 3. This Act takes effect immediately if it receives |
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140 | 140 | | a vote of two-thirds of all the members elected to each house, as |
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141 | 141 | | provided by Section 39, Article III, Texas Constitution. If this |
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142 | 142 | | Act does not receive the vote necessary for immediate effect, this |
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143 | 143 | | Act takes effect September 1, 2015. |
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