82R653 KSD-D

By: Lucio III H.B. No. 448

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a pilot program under which high school students may accrue prepaid tuition units at public institutions of higher education by completing certain community service activities.

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

SECTION 1. Subchapter H, Chapter 54, Education Code, is amended by adding Section 54.7522 to read as follows:

Sec. 54.7522. SERVE YOUR WAY TO COLLEGE PILOT PROGRAM. (a) In this section:

(1) "Participating organization" means a nonprofit, charitable, or community organization that registers with and is approved by the board to participate in the Serve Your Way to College pilot program under this section.

(2) "Pilot program" means the Serve Your Way to College pilot program established under this section.

(3) "Qualifying community service activity" includes work performed by a student for a participating organization, other than:

(A) fund-raising activities;

(B) political activities;

(C) any activity for which the student may earn course credit; or

(D) any activity that reduces the work of or displaces a current employee of the organization.

(b) The board by rule shall develop and implement the Serve Your Way to College pilot program, under which students enrolled in grades 7-12 at public schools in participating school districts in this state may accrue prepaid tuition units under this subchapter for completing qualifying community service activities.

(c) The board, in cooperation with the commissioner of education, shall select to participate in the pilot program one school district from each of the following geographic regions of this state:

(1) North Texas;

(2) South Texas;

(3) East Texas;

(4) West Texas; and

(5) Central Texas.

(d) The school districts selected under Subsection (c) to participate in the pilot program must include at least one urban district, one rural district, one small district, and one large district.

(e) To participate in the pilot program, a student must register with the board, in the manner prescribed by the board, not later than 3-1/2 academic years before the student's expected high school graduation date.

(f) Except as provided by Subsection (h)(2), for each hour a participating student engages in a qualifying community service activity, the student earns a credit in the amount prescribed by the board to be applied toward the purchase of tuition units on behalf of the student under this subchapter. The hourly amount of the credit prescribed under this subsection may not be less than the federal minimum hourly wage.

(g) The board shall act as purchaser under this subchapter for each student who participates in the pilot program. In purchasing prepaid tuition credits for the student, the board shall purchase the type of unit as directed by the student or, if the student is a minor, as directed by the student's parents or guardian. If the student or the student's parents or guardian does not direct the board regarding the type of unit to be purchased, the board shall purchase the type of prepaid tuition unit the board considers appropriate.

(h) Each participating student:

(1) is responsible for securing the student's placement with a participating organization; and

(2) may accrue prepaid tuition units under this section for qualifying community service activities performed by the student for one or more participating organizations, except that the student:

(A) must perform at least 50 hours of qualifying community service activities before any tuition unit may be purchased on behalf of the student under this section; and

(B) may not accrue tuition units under this section for qualifying community service activities performed by the student for one or more participating organizations in excess of 250 hours per year.

(i) Notwithstanding any other provision of this subchapter, a student:

(1) may redeem tuition units purchased by the board on behalf of the student under this section only to pay costs of tuition and required fees for enrollment at a general academic teaching institution or two-year institution of higher education; and

(2) may not redeem tuition units purchased by the board on behalf of the student under this section:

(A) before the third anniversary of the date the tuition units were purchased; or

(B) after the 10th anniversary of the date the beneficiary was projected to graduate from high school when the beneficiary initially registered with the board to participate in the pilot program.

(j) Sections 54.759(a) and (b) do not apply to tuition units purchased under this section. For tuition units purchased on behalf of a beneficiary under this section, the board shall designate a new beneficiary only if:

(1) the original beneficiary has died;

(2) the original beneficiary's parents or guardian has requested the designation of the new beneficiary; and

(3) the new beneficiary:

(A) is related to the original beneficiary by consanguinity or marriage;

(B) is currently enrolled in a high school or institution of higher education in this state;

(C) meets the requirements for a beneficiary under this subchapter on the date the designation is changed; and

(D) meets the requirements of Section 529, Internal Revenue Code of 1986, to prevent the change of beneficiary from being treated as a distribution under that law.

(k) Notwithstanding Section 54.763, money used to purchase tuition units under this section may not be refunded to the board or any other person.

(l) The board shall adopt forms for the administration of this section, including registration forms for students and participating organizations.

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

(n) Each participating school district, as soon as practicable at the beginning of a student's seventh, eighth, and ninth grade years, shall provide information to the student and the student's parents or guardian regarding the pilot program.

(o) Not later than January 1, 2019, the board shall prepare and deliver to the lieutenant governor, the speaker of the house of representatives, and the presiding officer of the standing committee of each house of the legislature with primary jurisdiction over higher education a report addressing the success of the pilot program under this section. This subsection expires September 1, 2020.

SECTION 2. The Prepaid Higher Education Tuition Board shall adopt rules to implement the Serve Your Way to College pilot program as required by Section 54.7522, Education Code, as added by this Act, beginning with the 2012-2013 school year.

SECTION 3. 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, 2011.