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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a pilot program under which high |
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school students may accrue prepaid tuition units at public |
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institutions of higher education by completing certain community |
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service activities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 54, Education Code, is |
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amended by adding Section 54.7522 to read as follows: |
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Sec. 54.7522. SERVE YOUR WAY TO COLLEGE PILOT PROGRAM. (a) |
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In this section: |
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(1) "Participating organization" means a nonprofit, |
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charitable, or community organization that registers with and is |
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approved by the board to participate in the Serve Your Way to |
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College pilot program under this section. |
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(2) "Pilot program" means the Serve Your Way to |
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College pilot program established under this section. |
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(3) "Qualifying community service activity" includes |
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work performed by a student for a participating organization, other |
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than: |
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(A) fund-raising activities; |
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(B) political activities; |
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(C) any activity for which the student may earn |
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course credit; or |
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(D) any activity that reduces the work of or |
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displaces a current employee of the organization. |
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(b) The board by rule shall develop and implement the Serve |
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Your Way to College pilot program, under which students enrolled in |
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grades 7-12 at public schools in participating school districts in |
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this state may accrue prepaid tuition units under this subchapter |
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for completing qualifying community service activities. |
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(c) The board, in cooperation with the commissioner of |
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education, shall select to participate in the pilot program one |
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school district from each of the following geographic regions of |
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this state: |
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(1) North Texas; |
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(2) South Texas; |
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(3) East Texas; |
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(4) West Texas; and |
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(5) Central Texas. |
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(d) The school districts selected under Subsection (c) to |
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participate in the pilot program must include at least one urban |
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district, one rural district, one small district, and one large |
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district. |
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(e) To participate in the pilot program, a student must |
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register with the board, in the manner prescribed by the board, not |
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later than 3-1/2 academic years before the student's expected high |
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school graduation date. |
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(f) Except as provided by Subsection (h)(2), for each hour a |
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participating student engages in a qualifying community service |
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activity, the student earns a credit in the amount prescribed by the |
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board to be applied toward the purchase of tuition units on behalf |
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of the student under this subchapter. The hourly amount of the |
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credit prescribed under this subsection may not be less than the |
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federal minimum hourly wage. |
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(g) The board shall act as purchaser under this subchapter |
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for each student who participates in the pilot program. In |
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purchasing prepaid tuition credits for the student, the board shall |
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purchase the type of unit as directed by the student or, if the |
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student is a minor, as directed by the student's parents or |
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guardian. If the student or the student's parents or guardian does |
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not direct the board regarding the type of unit to be purchased, the |
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board shall purchase the type of prepaid tuition unit the board |
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considers appropriate. |
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(h) Each participating student: |
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(1) is responsible for securing the student's |
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placement with a participating organization; and |
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(2) may accrue prepaid tuition units under this |
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section for qualifying community service activities performed by |
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the student for one or more participating organizations, except |
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that the student: |
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(A) must perform at least 50 hours of qualifying |
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community service activities before any tuition unit may be |
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purchased on behalf of the student under this section; and |
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(B) may not accrue tuition units under this |
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section for qualifying community service activities performed by |
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the student for one or more participating organizations in excess |
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of 250 hours per year. |
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(i) Notwithstanding any other provision of this subchapter, |
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a student: |
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(1) may redeem tuition units purchased by the board on |
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behalf of the student under this section only to pay costs of |
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tuition and required fees for enrollment at a general academic |
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teaching institution or two-year institution of higher education; |
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and |
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(2) may not redeem tuition units purchased by the |
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board on behalf of the student under this section: |
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(A) before the third anniversary of the date the |
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tuition units were purchased; or |
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(B) after the 10th anniversary of the date the |
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beneficiary was projected to graduate from high school when the |
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beneficiary initially registered with the board to participate in |
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the pilot program. |
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(j) Sections 54.759(a) and (b) do not apply to tuition units |
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purchased under this section. For tuition units purchased on |
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behalf of a beneficiary under this section, the board shall |
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designate a new beneficiary only if: |
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(1) the original beneficiary has died; |
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(2) the original beneficiary's parents or guardian has |
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requested the designation of the new beneficiary; and |
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(3) the new beneficiary: |
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(A) is related to the original beneficiary by |
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consanguinity or marriage; |
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(B) is currently enrolled in a high school or |
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institution of higher education in this state; |
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(C) meets the requirements for a beneficiary |
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under this subchapter on the date the designation is changed; and |
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(D) meets the requirements of Section 529, |
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Internal Revenue Code of 1986, to prevent the change of beneficiary |
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from being treated as a distribution under that law. |
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(k) Notwithstanding Section 54.763, money used to purchase |
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tuition units under this section may not be refunded to the board or |
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any other person. |
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(l) The board shall adopt forms for the administration of |
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this section, including registration forms for students and |
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participating organizations. |
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(m) The board may solicit and accept gifts, grants, and |
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donations from any public or private source for the purposes of this |
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section. |
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(n) Each participating school district, as soon as |
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practicable at the beginning of a student's seventh, eighth, and |
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ninth grade years, shall provide information to the student and the |
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student's parents or guardian regarding the pilot program. |
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(o) Not later than January 1, 2021, the board shall prepare |
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and deliver to the lieutenant governor, the speaker of the house of |
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representatives, and the presiding officer of the standing |
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committee of each house of the legislature with primary |
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jurisdiction over higher education a report addressing the success |
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of the pilot program under this section. This subsection expires |
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September 1, 2022. |
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SECTION 2. The Prepaid Higher Education Tuition Board shall |
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adopt rules to implement the Serve Your Way to College pilot program |
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as required by Section 54.7522, Education Code, as added by this |
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Act, beginning with the 2014-2015 school year. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |