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.