Texas 2015 - 84th Regular

Texas Senate Bill SB1858 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Garcia S.B. No. 1858
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to programs in public schools designed to facilitate
7	7	planning and saving for higher education and facilitate personal
8	8	financial literacy instruction.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter A, Chapter 28, Education Code, is
11	11	amended by adding Section 28.0024 to read as follows:
12	12	Sec. 28.0024. SCHOOL-BASED SAVINGS PROGRAM. (a) A school
13	13	district or open-enrollment charter school may establish a
14	14	school-based savings program to facilitate increased awareness of
15	15	the importance of saving for higher education and facilitate
16	16	personal financial literacy instruction. A district or school may
17	17	offer the program in conjunction with a person financial literacy
18	18	course under Section 28.0021.
19	19	(b) A school-based savings program may, through
20	20	partnerships with financial institutions, as defined by Section
21	21	201.101, Finance Code, promote:
22	22	(1) general savings, by offering savings accounts or
23	23	certificates of deposit through partner financial institutions; or
24	24	(2) savings dedicated for higher education, by offering
25	25	accounts through partner financial institutions that are dedicated
26	26	exclusively to paying expenses associated with higher education,
27	27	including:
28	28	(A) an account authorized under Section 529, Internal
29	29	Revenue Code of 1986;
30	30	(B) a Coverdell education savings account established
31	31	under 26 U.S.C. Section 530;
32	32	(C) a certificate of deposit;
33	33	(D) a savings account; and
34	34	(E) a Roth IRA.
35	35	(c) A district or school establishing a program under this
36	36	section shall seek to establish partnerships with financial
37	37	institutions, public sector partners, private businesses,
38	38	nonprofit organizations, or philanthropic organizations in the
39	39	community. A partnership between a district or school and:
40	40	(1) a financial institution may allow a student in the
41	41	program or another adult in the student's family to have an
42	42	opportunity to establish an account described under
43	43	Subsection (b); and
44	44	(2) a financial institution, public sector partner, private
45	45	business, or nonprofit or philanthropic organization may provide:
46	46	(A) a structure for the management of the program; and
47	47	(B) incentives that encourage contribution to a
48	48	school-based account under Subsection (b), including incentives
49	49	that provide matching funds or seed funding.
50	50	SECTION 2. Section 56.007, Education Code, is amended to
51	51	read as follows:
52	52	Sec. 56.007. EXCLUSION OF ASSETS IN PREPAID TUITION
53	53	PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. Notwithstanding any
54	54	other law, the right of a person to assets held in or the right to
55	55	receive payments or benefits under any fund, school-based account,
56	56	or plan established under Section 28.0024(b)(2) up to the amount of
57	57	the highest cost of undergraduate resident tuition and required
58	58	fees for a 30-semester hour academic year at a Texas public college
59	59	or university or Subchapter G, H, or I, Chapter 54, including an
60	60	interest in a savings trust account, prepaid tuition account, or
61	61	related matching account, may not be considered an asset of the
62	62	person, or otherwise included in the person's household income or
63	63	other financial resources, for purposes of determining the person's
64	64	eligibility for a TEXAS grant or any other state-funded student
65	65	financial assistance.
66	66	SECTION 3. Section 31.0039, Human Resources Code, is
67	67	amended to read as follows:
68	68	Sec. 31.0039. EXCLUSION OF ASSETS IN PREPAID TUITION
69	69	PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. For purposes of
70	70	determining the amount of financial assistance granted to an
71	71	individual under this chapter for the support of dependent children
72	72	or determining whether the family meets household income and
73	73	resource requirements for financial assistance under this chapter,
74	74	the department may not consider the right to assets held in or the
75	75	right to receive payments or benefits under:
76	76	(1) any fund, school-based account, or plan established
77	77	under Section 28.0024(b)(2), Education Code, up to the amount of
78	78	the highest cost of undergraduate resident tuition and required
79	79	fees for a 30-semester hour academic year at a Texas public college
80	80	or university. or Subchapter G, H, or I, Chapter 54, Education
81	81	Code, including an interest in a savings trust account, prepaid
82	82	tuition contract, or related matching account; or
83	83	(2) any qualified tuition program of any state that meets
84	84	the requirements of Section 529, Internal Revenue Code of 1986.
85	85	SECTION 4. Subchapter A, Chapter 33, Human Resources Code,
86	86	is amended by adding Section 33.0291 to read as follows:
87	87	Sec. 33.0291. EXCLUSION OF SCHOOL-BASED ACCOUNTS. For
88	88	purposes of determining whether a person meets family income and
89	89	resource requirements for eligibility for the supplemental
90	90	nutrition assistance program, the commission may not consider as
91	91	income or resources a right to assets held in or a right to receive
92	92	payments or benefits under a school-based account established under
93	93	Section 28.0024(b)(2), Education Code up to the amount of the
94	94	highest cost of undergraduate resident tuition and required fees
95	95	for a 30-semester hour academic year at a Texas public college or
96	96	university.
97	97	SECTION 5. If before implementing any provision of this Act
98	98	a state agency determines that a waiver or authorization from a
99	99	federal agency is necessary for implementation of that provision,
100	100	the agency affected by the provision shall request the waiver or
101	101	authorization and may delay implementing that provision until the
102	102	waiver or authorization is granted.
103	103	SECTION 6. This Act takes effect immediately if it receives
104	104	a vote of two-thirds of all the members elected to each house, as
105	105	provided by Section 39, Article III, Texas Constitution. If this
106	106	Act does not receive the vote necessary for immediate effect, this
107	107	Act takes effect September 1, 2015.