85R11702 KJE-F     By: Menéndez S.B. No. 2182       A BILL TO BE ENTITLED   AN ACT   relating to measures to increase participation in state programs   relating to saving money or prepaying for college.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 54.801(2), Education Code, is amended to   read as follows:                (2)  "Beneficiary" means a beneficiary on whose behalf   a purchaser enters into a prepaid tuition contract with the board   under Subchapter H, [or] for whom a savings trust account is opened   under Subchapter G, or for whom a matching account is opened under   Section 54.802(a-1).          SECTION 2.  Section 54.802, Education Code, is amended by   amending Subsection (a) and adding Subsections (a-1) and (d) to   read as follows:          (a)  The board, in cooperation with the program entity, shall   administer the Texas Save and Match Program, under which money   contributed to a savings trust account by an account owner under a   higher education savings plan established under Subchapter G, [or]   paid by a purchaser under a prepaid tuition contract under   Subchapter H on behalf of an eligible beneficiary, or contributed   to a matching account established under Subsection (a-1) may be   matched with:                (1)  contributions made by any person to the program   entity for use in making additional savings trust account   contributions under Subchapter G or in purchasing additional   tuition units under prepaid tuition contracts under Subchapter H;   or                (2)  money appropriated by the legislature for the   program to be used by the board to make additional savings trust   account contributions under Subchapter G or to purchase additional   tuition units under Subchapter H.          (a-1)  The board by rule shall establish an automatic   enrollment plan within the program through which a public or   private entity may request a matching account to be established   automatically, based on factors determined by the board in   consultation with the public or private entity, by the board or   program entity under this subchapter for a child who is not already   a beneficiary of a savings trust account established under   Subchapter G or of a prepaid tuition contract entered into under   Subchapter H.           (d)  For purposes of this subchapter, contributions to a   matching account established by the board or program entity on   behalf of a beneficiary under this subchapter may include,   regardless of whether any corresponding funds are contributed to a   savings trust account established under Subchapter G or paid under   a prepaid tuition contract entered into under Subchapter H:                (1)  initial deposits to the matching account;                (2)  funds for the payment of application fees; and                (3)  matching grants based on the beneficiary's income   level or achievement of specified academic goals.          SECTION 3.  Sections 54.803 and 54.804, Education Code, are   amended to read as follows:          Sec. 54.803.  INITIAL ELIGIBILITY FOR PARTICIPATION IN   PROGRAM. (a)  To be initially eligible to participate in the   program, a beneficiary, at the time a prepaid tuition contract is   entered into on the beneficiary's behalf under Subchapter H, [or] a   savings trust account is opened on the beneficiary's behalf under   Subchapter G, or a matching account is requested on the   beneficiary's behalf under a plan established under Section   54.802(a-1), as applicable, must be:                (1)  a resident of this state; or                (2)  a dependent for purposes of Section 152, Internal   Revenue Code of 1986, of a resident of this state.          (b)  The board shall give preference to awarding [To be   initially eligible to receive] matching funds described by Section   54.802(a)(2) under the program to [,] a beneficiary who, at the time   a prepaid tuition contract is entered into on the beneficiary's   behalf under Subchapter H, [or] a savings trust account is opened on   the beneficiary's behalf under Subchapter G, or a matching account   is requested on the beneficiary's behalf under a plan established   under Section 54.802(a-1), as applicable, is [must be] eligible for   free or reduced-price meals under the national free or   reduced-price breakfast and lunch program.          Sec. 54.804.  LIMITATIONS.  A matching account established   by the board or program entity on behalf of a beneficiary under this   subchapter is forfeited and reverts to the board or program entity   on the occurrence of any of the following, as applicable:                (1)  the 10th anniversary of the date the beneficiary   is projected to graduate from high school, as indicated by the   purchaser in the enrollment contract, except that time spent by the   beneficiary as an active duty member of the United States armed   services tolls the period described by this subdivision;                (2)  a change of beneficiary by the account owner or   purchaser of the matched account;                (3)  a contract cancellation of the matched account and   refund request;                (4)  the successful completion by the beneficiary of a   [an associate or] bachelor's degree program;                (5)  transfer of the matched account to another   qualified tuition program of any state that meets the requirements   of Section 529, Internal Revenue Code of 1986; or                (6)  any other event the board or program entity   determines would be inconsistent with the program's purposes.          SECTION 4.  Section 54.805(c), Education Code, is amended to   read as follows:          (c)  The [To the extent possible, the] board shall include   information about a matching account in the periodic statement   provided to applicable account owners and purchasers under   Subchapters G and H.          SECTION 5.  Sections 54.807 and 54.809, Education Code, are   amended to read as follows:          Sec. 54.807.  PILOT PROJECTS UNDER PROGRAM.  (a)  To fulfill   the intent of the program, the board, in collaboration with   relevant stakeholders, shall [may use funds described by Section   54.802(a)(2) to] establish one or more pilot projects under the   program in an effort to incentivize participation in the higher   education savings program under Subchapter G and the prepaid   tuition unit undergraduate education program under Subchapter H,   including projects that incentivize participation by:                (1)  awarding additional matching grants based on a   beneficiary's achievement of specified academic goals;                (2)  providing initial matching grants and paying   application fees;                (3)  providing incentives for employers to contribute   matching funds to the program; and                (4)  creating a program information portal designed to   increase program awareness and accessibility among school   districts, parents, and students.          (b)  At least one pilot project established under this   section must be an automatic enrollment plan described by Section   54.802(a-1).  Under the pilot project, the board shall award   matching grants based on a beneficiary's achievement of specified   academic goals and may award other matching grants or provide other   incentives for participation.          (c)  The board shall use funds described by Section   54.802(a)(2) and may use funds described by Section 54.802(a)(1) to   establish pilot projects under this section.          Sec. 54.809.  RULES.  The board shall adopt rules for the   administration of this subchapter, including rules to:                (1)  implement an automatic enrollment plan under   Section 54.802(a-1); and                (2)  establish a process for distributing funds   described by Section 54.802(a)(2) among programs and plans under   this subchapter.          SECTION 6.  Chapter 54, Education Code, is amended by adding   Subchapter I-1 to read as follows:   SUBCHAPTER I-1. COLLEGE SAVINGS PLANS TASK FORCE AND STUDY          Sec. 54.851.  DEFINITIONS. In this subchapter:                (1)  "Coordinating board" means the Texas Higher   Education Coordinating Board.                (2)  "Task force" means the college savings plans task   force established under this subchapter.          Sec. 54.852.  COLLEGE SAVINGS PLANS TASK FORCE. (a)  The   task force is established to:                (1)  review and make recommendations for improvements   to the higher education savings plan established under Subchapter G   and the Texas Save and Match Program established under Subchapter   I; and                (2)  evaluate strategies to increase participation in   the higher education savings plan established under Subchapter G,   particularly among economically disadvantaged students, minority   students, and students in geographical areas of the state with   lower rates of participation in the plan.          (b)  The task force is composed of 11 members, consisting of:                (1)  one member appointed by the chair of the house of   representatives committee with primary jurisdiction over higher   education;                (2)  one member appointed by the chair of the senate   committee with primary jurisdiction over higher education;                (3)  a representative of the coordinating board   designated by the commissioner of higher education;                (4)  a representative of the office of the comptroller   designated by the comptroller;                (5)  one member from the Texas Match the Promise   Foundation;                (6)  the director of the Texas GEAR UP program; and                (7)  five members appointed by the commissioner of   higher education as follows:                      (A)  one member with an interest in college   savings accounts representing an organization providing financial   stability services in the state;                      (B)  a representative of the Texas Parent Teacher   Association;                      (C)  a representative of an institution of higher   education;                      (D)  a representative of the philanthropic   community; and                      (E)  a representative of a regional education   service center.          (c)  The task force shall meet at the call of the   coordinating board or the comptroller.          (c-1)  The task force must hold at least two public meetings   not later than March 31, 2019.  This subsection expires September 1,   2019.          (d)  The task force shall:                (1)  develop a selection process for participation in   pilot projects established under Section 54.807 and provide   guidance on those pilot projects; and                (2)  provide guidance on the study conducted by the   coordinating board under Section 54.853.          Sec. 54.853.  STUDY AND REPORT ON COLLEGE SAVINGS PLANS. (a)     The coordinating board shall conduct an ongoing study on the higher   education savings plan established under Subchapter G and the Texas   Save and Match Program established under Subchapter I.          (b)  The study must:                (1)  analyze potential strategies for increasing   participation in the higher education savings plan, particularly   among economically disadvantaged students, minority students, and   students in geographical areas of the state with lower rates of   participation in the plan, including methods to:                      (A)  enhance the competitiveness of the plan;                      (B)  reduce plan fees; and                      (C)  improve access to savings trust accounts   established through the plan for low-income families;                (2)  evaluate potential improvements to the Texas Save   and Match Program to increase participation in the program,   including changes recommended as a result of a pilot project   established under Section 54.807; and                (3)  identify potential sources of funding for the   Texas Save and Match Program.          (c)  Not later than June 1 of each even-numbered year, the   coordinating board shall submit to the governor, the lieutenant   governor, the speaker of the house of representatives, the   comptroller, the standing legislative committees with primary   jurisdiction over higher education, and the task force a report on   the results of the study and any recommendations for legislative or   other action.          (d)  Not later than December 1 of each even-numbered year,   the Prepaid Higher Education Tuition Board shall adopt rules to   implement one or more of the recommendations in the report   submitted under Subsection (c).          SECTION 7.  Section 74.603, Property Code, is amended to   read as follows:          Sec. 74.603.  AUDIT; APPROPRIATION.  (a)  The unclaimed   money received under this chapter or any other statute requiring   the delivery of unclaimed property to the comptroller is subject to   audit by the State Auditor and to appropriation by the legislature   for enforcing and administering this title.          (b)  Unclaimed money received under this chapter in an amount   equal to or less than $5 and held by the comptroller for at least 20   years may be appropriated for the support of the Texas Save and   Match Program under Subchapter I, Chapter 54, Education Code, and,   in accordance with the General Appropriations Act, transferred to   the Prepaid Higher Education Tuition Board for that purpose.          SECTION 8.  Not later than 60 days after the effective date   of this Act, the initial appointments or designations, as   applicable, of the members of the task force established under   Section 54.852, Education Code, as added by this Act, must be made.          SECTION 9.  Not later than June 1, 2018, the Texas Higher   Education Coordinating Board shall submit its initial report   required under Section 54.853, Education Code, as added by this   Act.          SECTION 10.  Not later than September 30, 2019, the Prepaid   Higher Education Tuition Board shall establish the pilot project   required under Section 54.807(b), Education Code, as added by this   Act.          SECTION 11.  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, 2017.