88R3895 KJE-D
By: Zwiener H.B. No. 3149
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a universal higher education savings
trust account by the Prepaid Higher Education Tuition Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 54.701(10), Education Code, is amended
to read as follows:
(10) "Savings trust account" means an account
established through the plan by an individual or the board under
this subchapter on behalf of a beneficiary in order to apply
distributions from the account toward qualified higher education
expenses at eligible educational institutions.
SECTION 2. Subchapter G, Chapter 54, Education Code, is
amended by adding Section 54.7071 to read as follows:
Sec. 54.7071. UNIVERSAL SAVINGS TRUST ACCOUNT. (a) From
money available for the purpose, the board shall open a universal
savings trust account to save money for the payment of the qualified
higher education expenses of each child born in this state.
(b) For purposes of this subchapter, the board is the owner
of the universal savings trust account. Except as provided by
Subsection (d), each child born in this state on or after September
1, 2023, is a beneficiary of the account.
(c) Except as provided by Subsection (d), on receipt of
notice regarding the birth of a child in this state from the
Department of State Health Services under Section 191.011, Health
and Safety Code, the board shall deposit $100 in the universal
savings trust account on behalf of the child.
(d) The parent or legal guardian of a child born in this
state may opt out of the contribution to the universal savings trust
account on the child's behalf under Subsection (c) by submitting a
written request to the board.
(e) The board shall distribute money in the universal
savings trust account to a beneficiary of the account in accordance
with board rule.
(f) The board shall develop and implement an outreach
program to inform parents and legal guardians of children born in
this state regarding the universal savings trust account and the
right to opt out of the contribution to the account under Subsection
(d).
SECTION 3. Section 54.709(d), Education Code, is amended to
read as follows:
(d) A savings trust agreement must provide that, if after a
specified period the savings trust agreement has not been
terminated and the beneficiary's rights in the account have not
been exercised, the board, after making reasonable efforts to
contact the owner and beneficiary of the account or their agents,
shall:
(1) report the unclaimed money in the account to the
comptroller; or
(2) if the account is the universal savings trust
account opened under Section 54.7071, withdraw from the account the
money attributable to the beneficiary and deposit the money in the
general revenue fund.
SECTION 4. Subchapter A, Chapter 191, Health and Safety
Code, is amended by adding Section 191.011 to read as follows:
Sec. 191.011. BIRTH INFORMATION FOR PREPAID HIGHER
EDUCATION TUITION BOARD. (a) The department shall implement an
efficient and effective method to inform the Prepaid Higher
Education Tuition Board regarding the birth of a child in this state
as necessary for the board to administer the universal savings
trust account under Section 54.7071, Education Code.
(b) The department shall enter into a memorandum of
understanding with the Prepaid Higher Education Tuition Board to
implement this section.
SECTION 5. This Act takes effect September 1, 2023.