| 1 | 1 | | By: Zwiener H.B. No. 100 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the creation of a universal higher education savings |
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| 7 | 7 | | trust account by the Prepaid Higher Education Tuition Board. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 54.701(10), Education Code, is amended |
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| 10 | 10 | | to read as follows: |
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| 11 | 11 | | (10) "Savings trust account" means an account |
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| 12 | 12 | | established through the plan by an individual or the board under |
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| 13 | 13 | | this subchapter on behalf of a beneficiary in order to apply |
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| 14 | 14 | | distributions from the account toward qualified higher education |
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| 15 | 15 | | expenses at eligible educational institutions. |
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| 16 | 16 | | SECTION 2. Subchapter G, Chapter 54, Education Code, is |
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| 17 | 17 | | amended by adding Section 54.7071 to read as follows: |
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| 18 | 18 | | Sec. 54.7071. UNIVERSAL SAVINGS TRUST ACCOUNT. (a) From |
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| 19 | 19 | | money available for the purpose, the board shall open a universal |
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| 20 | 20 | | savings trust account to save money for the payment of the qualified |
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| 21 | 21 | | higher education expenses of each child born in this state. |
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| 22 | 22 | | (b) For purposes of this subchapter, the board is the owner |
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| 23 | 23 | | of the universal savings trust account. Except as provided by |
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| 24 | 24 | | Subsection (d), each child born in this state on or after September |
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| 25 | 25 | | 1, 2023, is a beneficiary of the account. |
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| 26 | 26 | | (c) Except as provided by Subsection (d), on receipt of |
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| 27 | 27 | | notice regarding the birth of a child in this state from the |
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| 28 | 28 | | Department of State Health Services under Section 191.011, Health |
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| 29 | 29 | | and Safety Code, the board shall deposit $100 in the universal |
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| 30 | 30 | | savings trust account on behalf of the child. |
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| 31 | 31 | | (d) The parent or legal guardian of a child born in this |
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| 32 | 32 | | state may opt out of the contribution to the universal savings trust |
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| 33 | 33 | | account on the child's behalf under Subsection (c) by submitting a |
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| 34 | 34 | | written request to the board. |
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| 35 | 35 | | (e) The board shall distribute money in the universal |
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| 36 | 36 | | savings trust account to a beneficiary of the account in accordance |
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| 37 | 37 | | with board rule. |
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| 38 | 38 | | (f) The board shall develop and implement an outreach |
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| 39 | 39 | | program to inform parents and legal guardians of children born in |
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| 40 | 40 | | this state regarding the universal savings trust account and the |
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| 41 | 41 | | right to opt out of the contribution to the account under Subsection |
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| 42 | 42 | | (d). |
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| 43 | 43 | | SECTION 3. Section 54.709(d), Education Code, is amended to |
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| 44 | 44 | | read as follows: |
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| 45 | 45 | | (d) A savings trust agreement must provide that, if after a |
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| 46 | 46 | | specified period the savings trust agreement has not been |
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| 47 | 47 | | terminated and the beneficiary's rights in the account have not |
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| 48 | 48 | | been exercised, the board, after making reasonable efforts to |
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| 49 | 49 | | contact the owner and beneficiary of the account or their agents, |
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| 50 | 50 | | shall: |
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| 51 | 51 | | (1) report the unclaimed money in the account to the |
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| 52 | 52 | | comptroller; or |
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| 53 | 53 | | (2) if the account is the universal savings trust |
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| 54 | 54 | | account opened under Section 54.7071, withdraw from the account the |
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| 55 | 55 | | money attributable to the beneficiary and deposit the money in the |
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| 56 | 56 | | general revenue fund. |
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| 57 | 57 | | SECTION 4. Subchapter A, Chapter 191, Health and Safety |
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| 58 | 58 | | Code, is amended by adding Section 191.011 to read as follows: |
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| 59 | 59 | | Sec. 191.011. BIRTH INFORMATION FOR PREPAID HIGHER |
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| 60 | 60 | | EDUCATION TUITION BOARD. (a) The department shall implement an |
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| 61 | 61 | | efficient and effective method to inform the Prepaid Higher |
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| 62 | 62 | | Education Tuition Board regarding the birth of a child in this state |
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| 63 | 63 | | as necessary for the board to administer the universal savings |
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| 64 | 64 | | trust account under Section 54.7071, Education Code. |
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| 65 | 65 | | (b) The department shall enter into a memorandum of |
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| 66 | 66 | | understanding with the Prepaid Higher Education Tuition Board to |
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| 67 | 67 | | implement this section. |
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| 68 | 68 | | SECTION 5. This Act takes effect September 1, 2024. |
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