Texas 2017 - 85th Regular

Texas Senate Bill SB2182 Compare Versions

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

Old	New	Differences
1	1	85R11702 KJE-F
2	2	By: Menéndez S.B. No. 2182
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to measures to increase participation in state programs
8	8	relating to saving money or prepaying for college.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 54.801(2), Education Code, is amended to
11	11	read as follows:
12	12	(2) "Beneficiary" means a beneficiary on whose behalf
13	13	a purchaser enters into a prepaid tuition contract with the board
14	14	under Subchapter H, [or] for whom a savings trust account is opened
15	15	under Subchapter G, or for whom a matching account is opened under
16	16	Section 54.802(a-1).
17	17	SECTION 2. Section 54.802, Education Code, is amended by
18	18	amending Subsection (a) and adding Subsections (a-1) and (d) to
19	19	read as follows:
20	20	(a) The board, in cooperation with the program entity, shall
21	21	administer the Texas Save and Match Program, under which money
22	22	contributed to a savings trust account by an account owner under a
23	23	higher education savings plan established under Subchapter G, [or]
24	24	paid by a purchaser under a prepaid tuition contract under
25	25	Subchapter H on behalf of an eligible beneficiary, or contributed
26	26	to a matching account established under Subsection (a-1) may be
27	27	matched with:
28	28	(1) contributions made by any person to the program
29	29	entity for use in making additional savings trust account
30	30	contributions under Subchapter G or in purchasing additional
31	31	tuition units under prepaid tuition contracts under Subchapter H;
32	32	or
33	33	(2) money appropriated by the legislature for the
34	34	program to be used by the board to make additional savings trust
35	35	account contributions under Subchapter G or to purchase additional
36	36	tuition units under Subchapter H.
37	37	(a-1) The board by rule shall establish an automatic
38	38	enrollment plan within the program through which a public or
39	39	private entity may request a matching account to be established
40	40	automatically, based on factors determined by the board in
41	41	consultation with the public or private entity, by the board or
42	42	program entity under this subchapter for a child who is not already
43	43	a beneficiary of a savings trust account established under
44	44	Subchapter G or of a prepaid tuition contract entered into under
45	45	Subchapter H.
46	46	(d) For purposes of this subchapter, contributions to a
47	47	matching account established by the board or program entity on
48	48	behalf of a beneficiary under this subchapter may include,
49	49	regardless of whether any corresponding funds are contributed to a
50	50	savings trust account established under Subchapter G or paid under
51	51	a prepaid tuition contract entered into under Subchapter H:
52	52	(1) initial deposits to the matching account;
53	53	(2) funds for the payment of application fees; and
54	54	(3) matching grants based on the beneficiary's income
55	55	level or achievement of specified academic goals.
56	56	SECTION 3. Sections 54.803 and 54.804, Education Code, are
57	57	amended to read as follows:
58	58	Sec. 54.803. INITIAL ELIGIBILITY FOR PARTICIPATION IN
59	59	PROGRAM. (a) To be initially eligible to participate in the
60	60	program, a beneficiary, at the time a prepaid tuition contract is
61	61	entered into on the beneficiary's behalf under Subchapter H, [or] a
62	62	savings trust account is opened on the beneficiary's behalf under
63	63	Subchapter G, or a matching account is requested on the
64	64	beneficiary's behalf under a plan established under Section
65	65	54.802(a-1), as applicable, must be:
66	66	(1) a resident of this state; or
67	67	(2) a dependent for purposes of Section 152, Internal
68	68	Revenue Code of 1986, of a resident of this state.
69	69	(b) The board shall give preference to awarding [To be
70	70	initially eligible to receive] matching funds described by Section
71	71	54.802(a)(2) under the program to [,] a beneficiary who, at the time
72	72	a prepaid tuition contract is entered into on the beneficiary's
73	73	behalf under Subchapter H, [or] a savings trust account is opened on
74	74	the beneficiary's behalf under Subchapter G, or a matching account
75	75	is requested on the beneficiary's behalf under a plan established
76	76	under Section 54.802(a-1), as applicable, is [must be] eligible for
77	77	free or reduced-price meals under the national free or
78	78	reduced-price breakfast and lunch program.
79	79	Sec. 54.804. LIMITATIONS. A matching account established
80	80	by the board or program entity on behalf of a beneficiary under this
81	81	subchapter is forfeited and reverts to the board or program entity
82	82	on the occurrence of any of the following, as applicable:
83	83	(1) the 10th anniversary of the date the beneficiary
84	84	is projected to graduate from high school, as indicated by the
85	85	purchaser in the enrollment contract, except that time spent by the
86	86	beneficiary as an active duty member of the United States armed
87	87	services tolls the period described by this subdivision;
88	88	(2) a change of beneficiary by the account owner or
89	89	purchaser of the matched account;
90	90	(3) a contract cancellation of the matched account and
91	91	refund request;
92	92	(4) the successful completion by the beneficiary of a
93	93	[an associate or] bachelor's degree program;
94	94	(5) transfer of the matched account to another
95	95	qualified tuition program of any state that meets the requirements
96	96	of Section 529, Internal Revenue Code of 1986; or
97	97	(6) any other event the board or program entity
98	98	determines would be inconsistent with the program's purposes.
99	99	SECTION 4. Section 54.805(c), Education Code, is amended to
100	100	read as follows:
101	101	(c) The [To the extent possible, the] board shall include
102	102	information about a matching account in the periodic statement
103	103	provided to applicable account owners and purchasers under
104	104	Subchapters G and H.
105	105	SECTION 5. Sections 54.807 and 54.809, Education Code, are
106	106	amended to read as follows:
107	107	Sec. 54.807. PILOT PROJECTS UNDER PROGRAM. (a) To fulfill
108	108	the intent of the program, the board, in collaboration with
109	109	relevant stakeholders, shall [may use funds described by Section
110	110	54.802(a)(2) to] establish one or more pilot projects under the
111	111	program in an effort to incentivize participation in the higher
112	112	education savings program under Subchapter G and the prepaid
113	113	tuition unit undergraduate education program under Subchapter H,
114	114	including projects that incentivize participation by:
115	115	(1) awarding additional matching grants based on a
116	116	beneficiary's achievement of specified academic goals;
117	117	(2) providing initial matching grants and paying
118	118	application fees;
119	119	(3) providing incentives for employers to contribute
120	120	matching funds to the program; and
121	121	(4) creating a program information portal designed to
122	122	increase program awareness and accessibility among school
123	123	districts, parents, and students.
124	124	(b) At least one pilot project established under this
125	125	section must be an automatic enrollment plan described by Section
126	126	54.802(a-1). Under the pilot project, the board shall award
127	127	matching grants based on a beneficiary's achievement of specified
128	128	academic goals and may award other matching grants or provide other
129	129	incentives for participation.
130	130	(c) The board shall use funds described by Section
131	131	54.802(a)(2) and may use funds described by Section 54.802(a)(1) to
132	132	establish pilot projects under this section.
133	133	Sec. 54.809. RULES. The board shall adopt rules for the
134	134	administration of this subchapter, including rules to:
135	135	(1) implement an automatic enrollment plan under
136	136	Section 54.802(a-1); and
137	137	(2) establish a process for distributing funds
138	138	described by Section 54.802(a)(2) among programs and plans under
139	139	this subchapter.
140	140	SECTION 6. Chapter 54, Education Code, is amended by adding
141	141	Subchapter I-1 to read as follows:
142	142	SUBCHAPTER I-1. COLLEGE SAVINGS PLANS TASK FORCE AND STUDY
143	143	Sec. 54.851. DEFINITIONS. In this subchapter:
144	144	(1) "Coordinating board" means the Texas Higher
145	145	Education Coordinating Board.
146	146	(2) "Task force" means the college savings plans task
147	147	force established under this subchapter.
148	148	Sec. 54.852. COLLEGE SAVINGS PLANS TASK FORCE. (a) The
149	149	task force is established to:
150	150	(1) review and make recommendations for improvements
151	151	to the higher education savings plan established under Subchapter G
152	152	and the Texas Save and Match Program established under Subchapter
153	153	I; and
154	154	(2) evaluate strategies to increase participation in
155	155	the higher education savings plan established under Subchapter G,
156	156	particularly among economically disadvantaged students, minority
157	157	students, and students in geographical areas of the state with
158	158	lower rates of participation in the plan.
159	159	(b) The task force is composed of 11 members, consisting of:
160	160	(1) one member appointed by the chair of the house of
161	161	representatives committee with primary jurisdiction over higher
162	162	education;
163	163	(2) one member appointed by the chair of the senate
164	164	committee with primary jurisdiction over higher education;
165	165	(3) a representative of the coordinating board
166	166	designated by the commissioner of higher education;
167	167	(4) a representative of the office of the comptroller
168	168	designated by the comptroller;
169	169	(5) one member from the Texas Match the Promise
170	170	Foundation;
171	171	(6) the director of the Texas GEAR UP program; and
172	172	(7) five members appointed by the commissioner of
173	173	higher education as follows:
174	174	(A) one member with an interest in college
175	175	savings accounts representing an organization providing financial
176	176	stability services in the state;
177	177	(B) a representative of the Texas Parent Teacher
178	178	Association;
179	179	(C) a representative of an institution of higher
180	180	education;
181	181	(D) a representative of the philanthropic
182	182	community; and
183	183	(E) a representative of a regional education
184	184	service center.
185	185	(c) The task force shall meet at the call of the
186	186	coordinating board or the comptroller.
187	187	(c-1) The task force must hold at least two public meetings
188	188	not later than March 31, 2019. This subsection expires September 1,
189	189	2019.
190	190	(d) The task force shall:
191	191	(1) develop a selection process for participation in
192	192	pilot projects established under Section 54.807 and provide
193	193	guidance on those pilot projects; and
194	194	(2) provide guidance on the study conducted by the
195	195	coordinating board under Section 54.853.
196	196	Sec. 54.853. STUDY AND REPORT ON COLLEGE SAVINGS PLANS. (a)
197	197	The coordinating board shall conduct an ongoing study on the higher
198	198	education savings plan established under Subchapter G and the Texas
199	199	Save and Match Program established under Subchapter I.
200	200	(b) The study must:
201	201	(1) analyze potential strategies for increasing
202	202	participation in the higher education savings plan, particularly
203	203	among economically disadvantaged students, minority students, and
204	204	students in geographical areas of the state with lower rates of
205	205	participation in the plan, including methods to:
206	206	(A) enhance the competitiveness of the plan;
207	207	(B) reduce plan fees; and
208	208	(C) improve access to savings trust accounts
209	209	established through the plan for low-income families;
210	210	(2) evaluate potential improvements to the Texas Save
211	211	and Match Program to increase participation in the program,
212	212	including changes recommended as a result of a pilot project
213	213	established under Section 54.807; and
214	214	(3) identify potential sources of funding for the
215	215	Texas Save and Match Program.
216	216	(c) Not later than June 1 of each even-numbered year, the
217	217	coordinating board shall submit to the governor, the lieutenant
218	218	governor, the speaker of the house of representatives, the
219	219	comptroller, the standing legislative committees with primary
220	220	jurisdiction over higher education, and the task force a report on
221	221	the results of the study and any recommendations for legislative or
222	222	other action.
223	223	(d) Not later than December 1 of each even-numbered year,
224	224	the Prepaid Higher Education Tuition Board shall adopt rules to
225	225	implement one or more of the recommendations in the report
226	226	submitted under Subsection (c).
227	227	SECTION 7. Section 74.603, Property Code, is amended to
228	228	read as follows:
229	229	Sec. 74.603. AUDIT; APPROPRIATION. (a) The unclaimed
230	230	money received under this chapter or any other statute requiring
231	231	the delivery of unclaimed property to the comptroller is subject to
232	232	audit by the State Auditor and to appropriation by the legislature
233	233	for enforcing and administering this title.
234	234	(b) Unclaimed money received under this chapter in an amount
235	235	equal to or less than $5 and held by the comptroller for at least 20
236	236	years may be appropriated for the support of the Texas Save and
237	237	Match Program under Subchapter I, Chapter 54, Education Code, and,
238	238	in accordance with the General Appropriations Act, transferred to
239	239	the Prepaid Higher Education Tuition Board for that purpose.
240	240	SECTION 8. Not later than 60 days after the effective date
241	241	of this Act, the initial appointments or designations, as
242	242	applicable, of the members of the task force established under
243	243	Section 54.852, Education Code, as added by this Act, must be made.
244	244	SECTION 9. Not later than June 1, 2018, the Texas Higher
245	245	Education Coordinating Board shall submit its initial report
246	246	required under Section 54.853, Education Code, as added by this
247	247	Act.
248	248	SECTION 10. Not later than September 30, 2019, the Prepaid
249	249	Higher Education Tuition Board shall establish the pilot project
250	250	required under Section 54.807(b), Education Code, as added by this
251	251	Act.
252	252	SECTION 11. This Act takes effect immediately if it
253	253	receives a vote of two-thirds of all the members elected to each
254	254	house, as provided by Section 39, Article III, Texas Constitution.
255	255	If this Act does not receive the vote necessary for immediate
256	256	effect, this Act takes effect September 1, 2017.