S.B. No. 1760
 
 
 
 
AN ACT
  relating to the administration of the Texas Save and Match Program
  to assist qualifying beneficiaries under the state's prepaid
  tuition plans and college savings plans and to the treatment of a
  beneficiary's assets under prepaid tuition plans and college
  savings plans in determining eligibility for student financial
  assistance and other assistance programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 54, Education Code, is amended by adding
  Subchapter I to read as follows:
  SUBCHAPTER I. TEXAS SAVE AND MATCH PROGRAM
         Sec. 54.801.  DEFINITIONS. In this subchapter:
               (1)  "Beneficiary" means a beneficiary on whose behalf
  a purchaser enters into a prepaid tuition contract with the board
  under Subchapter F or H or for whom a savings trust account is
  opened under Subchapter G.
               (2)  "Board" means the Prepaid Higher Education Tuition
  Board.
               (3)  "Participating beneficiary" means a beneficiary
  for whom a matching account has been opened under this subchapter.
               (4)  "Program" means the Texas Save and Match Program
  established under this subchapter.
         Sec. 54.802.  TEXAS SAVE AND MATCH PROGRAM. (a)  The board
  shall develop and implement the Texas Save and Match Program under
  which the board:
               (1)  opens a matching account for each eligible
  beneficiary, as determined by Section 54.803; and
               (2)  matches money paid by a purchaser under a prepaid
  tuition contract under Subchapter F or H on behalf of the
  beneficiary, or contributed to a savings trust account by an
  account owner under the Higher Education Savings Plan under
  Subchapter G on behalf of the beneficiary with matching
  contributions or a matching purchase of tuition units, as
  applicable, using money appropriated by the legislature for the
  program and any contributions made by any person to the
  beneficiary's matching account.
         (b)  Notwithstanding other law, for purposes of Subchapter
  I, Chapter 659, Government Code:
               (1)  the Texas Save and Match Program is considered an
  eligible charitable organization entitled to participate in a state
  employee charitable campaign under Subchapter I, Chapter 659,
  Government Code; and
               (2)  a state employee is entitled to authorize a
  payroll deduction for contributions to the Texas Save and Match
  Program as a charitable contribution under Section 659.132,
  Government Code.
         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 F or H, or
  a savings trust account is opened on the beneficiary's behalf under
  Subchapter G, as applicable, must:
               (1)  be:
                     (A)  a resident of this state; or
                     (B)  a dependent for purposes of Section 152,
  Internal Revenue Code of 1986, of a resident described by Paragraph
  (A);
               (2)  be younger than seven years of age; and
               (3)  have a household adjusted gross income, for the
  most recently completed tax year, that is not more than 400 percent
  of the federal poverty level.
         (b)  To determine whether a beneficiary is initially
  eligible to participate in the program, the board shall solicit
  from the purchaser who enters into a prepaid tuition contract on the
  beneficiary's behalf under Subchapter F or H, or the individual who
  opens a savings trust account on the beneficiary's behalf under
  Subchapter G, as applicable, at the time the purchaser or
  individual enters into the contract or agreement with the board and
  in the manner prescribed by board rule, information necessary to
  determine the beneficiary's eligibility.
         Sec. 54.804.  LIMITATIONS. (a)  An eligible beneficiary may
  participate in the program for not more than five calendar years if
  the beneficiary continues to meet the criteria prescribed by
  Section 54.803(a). The five-year period may be consecutive or
  nonconsecutive. The board shall prescribe procedures for verifying
  a participating beneficiary's continued eligibility under this
  section.
         (b)  A participating beneficiary may receive a matching
  grant or a purchase of matching tuition units to the beneficiary's
  matching account in any particular calendar year only if at least
  $100 is paid under a prepaid tuition contract under Subchapter F or
  H or is contributed to the beneficiary's savings trust account
  under Subchapter G, as applicable, during that year. Contributions
  or purchases in excess of $500 in any calendar year are not eligible
  for a match under the program.
         (c)  Withdrawals from a matching account may be used only for
  qualified higher educational expenses of the participating
  beneficiary for whom the matching account is established. Funds in
  a matching account must be disbursed directly to providers of
  qualified higher education services and may not be disbursed
  directly to the beneficiary.
         (d)  Tuition units in a participating beneficiary's matching
  account may be redeemed only by the board or by a qualified
  institution of higher education in the manner prescribed by the
  board on behalf of the participating beneficiary.
         (e)  Any funds or unused tuition units in a matching account
  that are not withdrawn or redeemed by the participating beneficiary
  before the beneficiary's 30th birthday are forfeited and shall be
  returned to a pool of matching funds maintained by the board.
         Sec. 54.805.  MATCH RATIOS. The board shall develop a
  variable formula based on adjusted annual household income to
  determine the amount of matching funds or matching purchases of
  tuition units to which eligible participating beneficiaries are
  entitled under the program in a year. Depending on the availability
  of funds, for each dollar contributed to a participating
  beneficiary's savings trust account under Subchapter G or paid by a
  purchaser under a prepaid tuition contract on behalf of the
  beneficiary under Subchapter F or H in a calendar year, the board
  shall match the contribution or purchase using the following
  guidelines:
               (1)  $2, if the beneficiary's household adjusted income
  for the most recently completed tax year is less than or equal to
  200 percent of the federal poverty level;
               (2)  $1, if the beneficiary's household adjusted income
  for the most recently completed tax year is more than 200 percent of
  the federal poverty level but not more than 300 percent of the
  federal poverty level; or
               (3)  50 cents, if the beneficiary's household adjusted
  income for the most recently completed tax year is more than 300
  percent of the federal poverty level but not more than 400 percent
  of the federal poverty level.
         Sec. 54.806.  MATCHING ACCOUNT ADMINISTRATION. (a)  A
  matching account opened on behalf of a beneficiary under this
  subchapter must be accounted separately from the beneficiary's
  prepaid tuition contract balance or savings trust account balance.
         (b)  To the extent possible, money or tuition units in a
  participating beneficiary's matching account shall be withdrawn or
  redeemed before money is withdrawn or tuition units are redeemed
  under Subchapter F, G, or H, as applicable.
         (c)  Information relating to the beneficiary of a matching
  account, including personally identifiable information regarding
  the beneficiary, is confidential and is not subject to disclosure
  under Chapter 552, Government Code.
         (d)  The board shall, to the extent possible, provide with
  any periodic statement provided by the board in regard to a
  beneficiary the balance of the matching account opened on the
  beneficiary's behalf under this subchapter.
         Sec. 54.807.  EFFECT OF ACCOUNT BALANCE ON BENEFICIARY'S
  ELIGIBILITY FOR STUDENT FINANCIAL ASSISTANCE. Money or tuition
  units in a beneficiary's matching account may not be considered as
  available to the beneficiary, or otherwise included in the
  beneficiary's household income or financial resources, for
  purposes of determining the beneficiary's eligibility for a TEXAS
  grant or any other state-funded student financial assistance.
         Sec. 54.808.  SOLICITATION AND ACCEPTANCE OF GIFTS, GRANTS,
  AND DONATIONS. The board may accept gifts, grants, and donations
  from any public or private source for the purposes of this
  subchapter.
         Sec. 54.809.  PILOT PROJECTS UNDER PROGRAM.  To fulfill the
  intent of the program, the board may establish pilot projects under
  the program in an effort to incentivize participation in the
  Prepaid Higher Education Tuition Program under Subchapter F, 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)  offering additional seed matching grants on the
  opening of a savings trust account or the purchase of a prepaid
  tuition contract; and
               (3)  providing incentives for employers to contribute
  matching funds to the program.
         Sec. 54.810.  RULES. The board shall adopt rules for the
  administration of this subchapter.
         SECTION 2.  Section 54.702, Education Code, is amended by
  adding Subsection (c-1) to read as follows:
         (c-1)  The board shall waive the amount of any enrollment fee
  charged by the board for a new account under this subchapter for any
  beneficiary whose household adjusted gross income for the most
  recently completed tax year is not more than 200 percent of the
  federal poverty level.
         SECTION 3.  Subchapter C, Chapter 62, Health and Safety
  Code, is amended by adding Section 62.1012 to read as follows:
         Sec. 62.1012.  EXCLUSION OF ASSETS IN PREPAID TUITION
  PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. For purposes of
  determining whether a child meets family income and resource
  requirements for eligibility for the child health plan, the
  commission may not consider as income or resources a right to assets
  held in or a right to receive payments or benefits under:
               (1)  any fund or plan established under Subchapter F,
  G, H, or I, Chapter 54, Education Code, including an interest in a
  savings trust account, prepaid tuition contract, or related
  matching account; or
               (2)  any qualified tuition program of any state that
  meets the requirements of Section 529, Internal Revenue Code of
  1986.
         SECTION 4.  Subchapter A, Chapter 31, Human Resources Code,
  is amended by adding Section 31.0039 to read as follows:
         Sec. 31.0039.  EXCLUSION OF ASSETS IN PREPAID TUITION
  PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. For purposes of
  determining the amount of financial assistance granted to an
  individual under this chapter for the support of dependent children
  or determining whether the family meets household income and
  resource requirements for financial assistance under this chapter,
  the department may not consider the right to assets held in or the
  right to receive payments or benefits under:
               (1)  any fund or plan established under Subchapter F,
  G, H, or I, Chapter 54, Education Code, including an interest in a
  savings trust account, prepaid tuition contract, or related
  matching account; or
               (2)  any qualified tuition program of any state that
  meets the requirements of Section 529, Internal Revenue Code of
  1986.
         SECTION 5.  Subchapter B, Chapter 32, Human Resources Code,
  is amended by adding Section 32.02611 to read as follows:
         Sec. 32.02611.  EXCLUSION OF ASSETS IN PREPAID TUITION
  PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. (a)  Except as
  provided by Subsection (b), in determining eligibility and need for
  medical assistance, the department may not consider as assets or
  resources a right to assets held in or a right to receive payments
  or benefits under:
               (1)  any fund or plan established under Subchapter F,
  G, H, or I, Chapter 54, Education Code, including an interest in a
  savings trust account, prepaid tuition contract, or related
  matching account; or
               (2)  any qualified tuition program of any state that
  meets the requirements of Section 529, Internal Revenue Code of
  1986.
         (b)  In determining eligibility and need for medical
  assistance for an applicant who may be eligible on the basis of the
  applicant's eligibility for medical assistance for the aged, blind,
  or disabled under 42 U.S.C. Section 1396a(a)(10), as amended, the
  department may consider as assets or resources a right to assets
  held in or a right to receive payments or benefits under any fund,
  plan, or tuition program described by Subsection (a).
         (c)  Notwithstanding Subsection (b), the department shall
  seek a federal waiver authorizing the department to exclude, for
  purposes of determining the eligibility of an applicant described
  by that subsection, the right to assets held in or a right to
  receive payments or benefits under any fund, plan, or tuition
  program described by Subsection (a) if the fund, plan, or tuition
  program was established before the 21st birthday of the beneficiary
  of the fund, plan, or tuition program.
         SECTION 6.  Section 54.7521, Education Code, is repealed.
         SECTION 7.  The Prepaid Higher Education Tuition Board shall
  adopt rules as required by Subchapter I, Chapter 54, Education
  Code, as added by this Act, not later than November 1, 2009.
         SECTION 8.  Subchapter I, Chapter 54, Education Code, as
  added by this Act, applies only to a prepaid tuition contract
  purchased for a beneficiary under Subchapter F or H, Chapter 54,
  Education Code, or a savings trust account opened for a beneficiary
  under Subchapter G, Chapter 54, Education Code, on or after January
  1, 2010.
         SECTION 9.  The Texas Save and Match Program is entitled to
  participate in the state employee charitable campaign conducted
  during the autumn of 2009 without regard to any limitation on the
  time during which an organization must apply to participate in the
  campaign.
         SECTION 10.  If before implementing any provision of this
  Act a state agency determines that a waiver or authorization from a
  federal agency is necessary for implementation of that provision,
  the agency affected by the provision shall request the waiver or
  authorization and may delay implementing that provision until the
  waiver or authorization is granted.
         SECTION 11.  The changes in law made by this Act apply to a
  person who receives health benefits coverage under Chapter 62,
  Health and Safety Code, financial assistance under Chapter 31,
  Human Resources Code, or medical assistance under Chapter 32, Human
  Resources Code, on or after the effective date of this Act,
  regardless of the date on which eligibility for coverage or
  assistance was initially determined.
         SECTION 12.  This Act takes effect September 1, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1760 passed the Senate on
  April 22, 2009, by the following vote: Yeas 30, Nays 0; and that
  the Senate concurred in House amendment on May 29, 2009, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1760 passed the House, with
  amendment, on May 26, 2009, by the following vote: Yeas 146,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor