By: Watson S.B. No. 2025

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a prepaid tuition unit reward and incentive program for certain economically disadvantaged students who achieve commended performance levels on standardized assessments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 39, Education Code, is amended by adding Section 39.0236 to read as follows:

Sec. 39.0236. NOTICE REGARDING ELIGIBILITY FOR PREPAID TUITION UNIT REWARD AND INCENTIVE PROGRAM. (a) Each year, to facilitate the administration of the prepaid tuition unit reward and incentive program under Section 54.779, the agency shall:

(1) provide to the Prepaid Higher Education Tuition Board, using codes or other methods as necessary to protect the identity of students, a list of those seventh grade students classified as economically disadvantaged students by the most recent economically disadvantaged status report issued by the agency whose performance on the seventh grade assessment instruments administered under Section 39.023(a) in mathematics, reading, and writing are identified by the State Board of Education as commended; and

(2) provide to each school district the information necessary for the school district to comply with Subsection (b).

(b) A school district, in a manner consistent with the confidentiality requirements prescribed by Section 39.030, shall notify the parents or guardians of each district student included in the list described by Subsection (a) regarding:

(1) the student's eligibility for the prepaid tuition unit reward and incentive program under Section 54.779;

(2) the educational benefits available to the student under that program; and

(3) the procedure for claiming the student's benefits as a beneficiary of a tuition unit account established by the Prepaid Higher Education Tuition Board on behalf of the student under that program.

SECTION 2. Subchapter H, Chapter 54, Education Code, is amended by adding Section 54.779 to read as follows:

Sec. 54.779. PREPAID TUITION UNIT REWARD AND INCENTIVE PROGRAM. (a) In an effort to incentivize participation in the prepaid tuition unit undergraduate education program by economically disadvantaged families and to reward high-level academic performance by economically disadvantaged students, the board, using funds available for the purposes of this section, shall develop and implement a prepaid tuition unit reward and incentive program under which the board, based on the list provided by the Texas Education Agency under Section 39.0236(a)(1):

(1) opens an access-restricted account under this subchapter on behalf of each student included on the list provided under Section 39.0236(a)(1);

(2) purchases for the student's account, at the time the account is opened, 10 Type III tuition units or the equivalent as determined by the board under this subchapter; and

(3) subject to the limitation prescribed by Subsection (c), periodically purchases additional tuition units for the student's account:

(A) to award continued academic achievement or high-level performance on statewide assessment instruments by the student; or

(B) to match purchases of tuition units made by other persons on behalf of the student under a prepaid tuition contract under this subchapter.

(b) The board, in collaboration with the Texas Education Agency, shall:

(1) use codes or other methods as necessary to protect the identity of eligible students in compliance with the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g) or other law; and

(2) establish procedures by which the board may verify the identity of a beneficiary who applies to the board to redeem tuition units purchased on the beneficiary's behalf under the program or to match purchases of tuition units under Subsection (a)(3).

(c) The board may not purchase more than 100 Type III tuition units or the equivalent under this subchapter for any student under the reward and incentive program.

(d) Tuition units purchased by the board on behalf of a student under this section may be redeemed only by the board or by a qualified institution of higher education in the manner prescribed by the board.

(e) The board, in consultation with the Texas Education Agency, shall adopt rules for the administration of this section, including rules:

(1) establishing a procedure by which an eligible student may claim the student's benefits as a beneficiary of a tuition unit account established by the board under this section;

(2) providing for the disposition of tuition units in unclaimed accounts; and

(3) providing for the ongoing analysis and assessment of:

(A) the level of participation in the reward and incentive program among eligible students;

(B) the effectiveness of the reward and incentive program in incentivizing:

(i) participation in the prepaid tuition unit undergraduate education program by other persons on behalf of eligible students; and

(ii) the enrollment of participating students in institutions of higher education; and

(C) whether to expand the reward and incentive program to include students enrolled in other grades at public schools in this state.

(f) The board, in coordination with the Texas Education Agency, may conduct outreach to the households of beneficiaries of claimed accounts under this section for the purposes of providing general information regarding the reward and incentive program, federal income tax filing assistance, and other related financial education assistance.

(g) The board may solicit and accept gifts, grants, and donations from any public or private source for the purposes of this section.

(h) If funds available for the purposes of this section in any fiscal year are insufficient to purchase tuition units for all eligible students, the board shall give priority to purchasing tuition units for eligible students who achieved commended performance levels on all of the assessment instruments administered under Section 39.023(a).

SECTION 3. The Prepaid Higher Education Tuition Board shall adopt rules to implement Section 54.779, Education Code, as added by this Act, beginning with the 2010-2011 school year.

SECTION 4. This Act does not make an appropriation. This Act takes effect only if a specific appropriation for the implementation of the Act is provided in a general appropriations act of the 81st Legislature.

SECTION 5. Except as otherwise provided by this Act, 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, 2009, except as otherwise provided by this Act.