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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 prepaid tuition unit reward and |
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incentive program for certain economically disadvantaged students |
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who achieve commended performance levels on standardized |
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assessments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 39, Education Code, is |
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amended by adding Section 39.0236 to read as follows: |
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Sec. 39.0236. NOTICE REGARDING ELIGIBILITY FOR PREPAID |
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TUITION UNIT REWARD AND INCENTIVE PROGRAM. (a) Each year, to |
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facilitate the administration of the prepaid tuition unit reward |
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and incentive program under Section 54.779, the agency shall: |
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(1) provide to the Prepaid Higher Education Tuition |
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Board, using codes or other methods as necessary to protect the |
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identity of students, a list of those seventh grade students |
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classified as economically disadvantaged students by the most |
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recent economically disadvantaged status report issued by the |
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agency whose performance on one or more seventh grade assessment |
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instruments administered under Section 39.023(a) is identified by |
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the State Board of Education as commended; and |
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(2) provide to each school district the information |
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necessary for the school district to comply with Subsection (b). |
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(b) A school district, in a manner consistent with the |
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confidentiality requirements prescribed by Section 39.030, shall |
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notify the parents or guardians of each district student included |
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in the list described by Subsection (a) regarding: |
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(1) the student's eligibility for the prepaid tuition |
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unit reward and incentive program under Section 54.779; |
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(2) the educational benefits available to the student |
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under that program; and |
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(3) the procedure for claiming the student's benefits |
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as a beneficiary of a tuition unit account established by the |
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Prepaid Higher Education Tuition Board on behalf of the student |
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under that program. |
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SECTION 2. Subchapter H, Chapter 54, Education Code, is |
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amended by adding Section 54.779 to read as follows: |
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Sec. 54.779. PREPAID TUITION UNIT REWARD AND INCENTIVE |
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PROGRAM. (a) In an effort to incentivize participation in the |
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prepaid tuition unit undergraduate education program by |
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economically disadvantaged families and to reward high-level |
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academic performance by economically disadvantaged students, the |
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board, using funds available for the purposes of this section, |
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shall develop and implement a prepaid tuition unit reward and |
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incentive program under which the board, based on the list provided |
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by the Texas Education Agency under Section 39.0236(a)(1): |
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(1) opens an access-restricted account under this |
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subchapter on behalf of each student included on the list provided |
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under Section 39.0236(a)(1); |
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(2) purchases for the student's account, at the time |
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the account is opened, 10 Type III tuition units or the equivalent |
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as determined by the board under this subchapter; and |
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(3) subject to the limitation prescribed by Subsection |
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(c), periodically purchases additional tuition units for the |
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student's account: |
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(A) to award continued academic achievement or |
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high-level performance on statewide assessment instruments by the |
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student; or |
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(B) to match purchases of tuition units made by |
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other persons on behalf of the student under a prepaid tuition |
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contract under this subchapter. |
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(b) The board, in collaboration with the Texas Education |
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Agency, shall: |
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(1) use codes or other methods as necessary to protect |
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the identity of eligible students in compliance with the Family |
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Educational Rights and Privacy Act of 1974 (20 U.S.C. Section |
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1232g) or other law; and |
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(2) establish procedures by which the board may verify |
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the identity of a beneficiary who applies to the board to redeem |
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tuition units purchased on the beneficiary's behalf under the |
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program or to match purchases of tuition units under Subsection |
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(a)(3). |
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(c) The board may not purchase more than 100 Type III |
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tuition units or the equivalent under this subchapter for any |
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student under the reward and incentive program. |
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(d) Tuition units purchased by the board on behalf of a |
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student under this section may be redeemed only by the board or by a |
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qualified institution of higher education in the manner prescribed |
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by the board. |
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(e) The board, in consultation with the Texas Education |
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Agency, shall adopt rules for the administration of this section, |
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including rules: |
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(1) establishing a procedure by which an eligible |
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student may claim the student's benefits as a beneficiary of a |
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tuition unit account established by the board under this section; |
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(2) providing for the disposition of tuition units in |
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unclaimed accounts; and |
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(3) providing for the ongoing analysis and assessment |
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of: |
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(A) the level of participation in the reward and |
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incentive program among eligible students; |
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(B) the effectiveness of the reward and incentive |
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program in incentivizing: |
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(i) participation in the prepaid tuition |
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unit undergraduate education program by other persons on behalf of |
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eligible students; and |
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(ii) the enrollment of participating |
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students in institutions of higher education; and |
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(C) whether to expand the reward and incentive |
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program to include students enrolled in other grades at public |
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schools in this state. |
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(f) The board, in coordination with the Texas Education |
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Agency, may conduct outreach to the households of beneficiaries of |
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claimed accounts under this section for the purposes of providing |
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general information regarding the reward and incentive program, |
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federal income tax filing assistance, and other related financial |
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education assistance. |
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(g) 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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(h) If funds available for the purposes of this section in |
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any fiscal year are insufficient to purchase tuition units for all |
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eligible students, the board shall give priority to purchasing |
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tuition units for eligible students who achieved commended |
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performance levels on all of the assessment instruments |
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administered under Section 39.023(a). |
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SECTION 3. The Prepaid Higher Education Tuition Board shall |
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adopt rules to implement Section 54.779, Education Code, as added |
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by this Act, beginning with the 2010-2011 school year. |
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SECTION 4. 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, 2009. |