84R4382 KSD-D
By: Lucio III H.B. No. 727
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a pilot program under which high
school students may accrue prepaid tuition units at public
institutions of higher education by completing certain community
service activities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 54, Education Code, is
amended by adding Section 54.7522 to read as follows:
Sec. 54.7522. SERVE YOUR WAY TO COLLEGE PILOT PROGRAM. (a)
In this section:
(1) "Participating organization" means a nonprofit,
charitable, or community organization that registers with and is
approved by the board to participate in the Serve Your Way to
College pilot program under this section.
(2) "Pilot program" means the Serve Your Way to
College pilot program established under this section.
(3) "Qualifying community service activity" includes
work performed by a student for a participating organization, other
than:
(A) fund-raising activities;
(B) political activities;
(C) any activity for which the student may earn
course credit; or
(D) any activity that reduces the work of or
displaces a current employee of the organization.
(b) The board by rule shall develop and implement the Serve
Your Way to College pilot program, under which students enrolled in
grades 7-12 at public schools in participating school districts in
this state may accrue prepaid tuition units under this subchapter
for completing qualifying community service activities.
(c) The board, in cooperation with the commissioner of
education, shall select to participate in the pilot program one
school district from each of the following geographic regions of
this state:
(1) North Texas;
(2) South Texas;
(3) East Texas;
(4) West Texas; and
(5) Central Texas.
(d) The school districts selected under Subsection (c) to
participate in the pilot program must include at least one urban
district, one rural district, one small district, and one large
district.
(e) To participate in the pilot program, a student must
register with the board, in the manner prescribed by the board, not
later than 3-1/2 academic years before the student's expected high
school graduation date.
(f) Except as provided by Subsection (h)(2), for each hour a
participating student engages in a qualifying community service
activity, the student earns a credit in the amount prescribed by the
board to be applied toward the purchase of tuition units on behalf
of the student under this subchapter. The hourly amount of the
credit prescribed under this subsection may not be less than the
federal minimum hourly wage.
(g) The board shall act as purchaser under this subchapter
for each student who participates in the pilot program. In
purchasing prepaid tuition credits for the student, the board shall
purchase the type of unit as directed by the student or, if the
student is a minor, as directed by the student's parents or
guardian. If the student or the student's parents or guardian does
not direct the board regarding the type of unit to be purchased, the
board shall purchase the type of prepaid tuition unit the board
considers appropriate.
(h) Each participating student:
(1) is responsible for securing the student's
placement with a participating organization; and
(2) may accrue prepaid tuition units under this
section for qualifying community service activities performed by
the student for one or more participating organizations, except
that the student:
(A) must perform at least 50 hours of qualifying
community service activities before any tuition unit may be
purchased on behalf of the student under this section; and
(B) may not accrue tuition units under this
section for qualifying community service activities performed by
the student for one or more participating organizations in excess
of 250 hours per year.
(i) Notwithstanding any other provision of this subchapter,
a student:
(1) may redeem tuition units purchased by the board on
behalf of the student under this section only to pay costs of
tuition and required fees for enrollment at a general academic
teaching institution or two-year institution of higher education;
and
(2) may not redeem tuition units purchased by the
board on behalf of the student under this section:
(A) before the third anniversary of the date the
tuition units were purchased; or
(B) after the 10th anniversary of the date the
beneficiary was projected to graduate from high school when the
beneficiary initially registered with the board to participate in
the pilot program.
(j) Sections 54.759(a) and (b) do not apply to tuition units
purchased under this section. For tuition units purchased on
behalf of a beneficiary under this section, the board shall
designate a new beneficiary only if:
(1) the original beneficiary has died;
(2) the original beneficiary's parents or guardian has
requested the designation of the new beneficiary; and
(3) the new beneficiary:
(A) is related to the original beneficiary by
consanguinity or marriage;
(B) is currently enrolled in a high school or
institution of higher education in this state;
(C) meets the requirements for a beneficiary
under this subchapter on the date the designation is changed; and
(D) meets the requirements of Section 529,
Internal Revenue Code of 1986, to prevent the change of beneficiary
from being treated as a distribution under that law.
(k) Notwithstanding Section 54.763, money used to purchase
tuition units under this section may not be refunded to the board or
any other person.
(l) The board shall adopt forms for the administration of
this section, including registration forms for students and
participating organizations.
(m) The board may solicit and accept gifts, grants, and
donations from any public or private source for the purposes of this
section.
(n) Each participating school district, as soon as
practicable at the beginning of a student's seventh, eighth, and
ninth grade years, shall provide information to the student and the
student's parents or guardian regarding the pilot program.
(o) Not later than January 1, 2023, the board shall prepare
and deliver to the lieutenant governor, the speaker of the house of
representatives, and the presiding officer of the standing
committee of each house of the legislature with primary
jurisdiction over higher education a report addressing the success
of the pilot program under this section. This subsection expires
September 1, 2024.
SECTION 2. The Prepaid Higher Education Tuition Board shall
adopt rules to implement the Serve Your Way to College pilot program
as required by Section 54.7522, Education Code, as added by this
Act, beginning with the 2016-2017 school year.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.