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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of a universal higher education savings |
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trust account by the Prepaid Higher Education Tuition Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 54.701(10), Education Code, is amended |
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to read as follows: |
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(10) "Savings trust account" means an account |
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established through the plan by an individual or the board under |
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this subchapter on behalf of a beneficiary in order to apply |
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distributions from the account toward qualified higher education |
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expenses at eligible educational institutions. |
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SECTION 2. Subchapter G, Chapter 54, Education Code, is |
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amended by adding Section 54.7071 to read as follows: |
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Sec. 54.7071. UNIVERSAL SAVINGS TRUST ACCOUNT. (a) From |
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money available for the purpose, the board shall open a universal |
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savings trust account to save money for the payment of the qualified |
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higher education expenses of each child born in this state. |
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(b) For purposes of this subchapter, the board is the owner |
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of the universal savings trust account. Except as provided by |
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Subsection (d), each child born in this state on or after September |
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1, 2023, is a beneficiary of the account. |
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(c) Except as provided by Subsection (d), on receipt of |
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notice regarding the birth of a child in this state from the |
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Department of State Health Services under Section 191.011, Health |
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and Safety Code, the board shall deposit $100 in the universal |
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savings trust account on behalf of the child. |
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(d) The parent or legal guardian of a child born in this |
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state may opt out of the contribution to the universal savings trust |
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account on the child's behalf under Subsection (c) by submitting a |
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written request to the board. |
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(e) The board shall distribute money in the universal |
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savings trust account to a beneficiary of the account in accordance |
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with board rule. |
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(f) The board shall develop and implement an outreach |
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program to inform parents and legal guardians of children born in |
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this state regarding the universal savings trust account and the |
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right to opt out of the contribution to the account under Subsection |
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(d). |
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SECTION 3. Section 54.709(d), Education Code, is amended to |
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read as follows: |
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(d) A savings trust agreement must provide that, if after a |
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specified period the savings trust agreement has not been |
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terminated and the beneficiary's rights in the account have not |
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been exercised, the board, after making reasonable efforts to |
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contact the owner and beneficiary of the account or their agents, |
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shall: |
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(1) report the unclaimed money in the account to the |
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comptroller; or |
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(2) if the account is the universal savings trust |
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account opened under Section 54.7071, withdraw from the account the |
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money attributable to the beneficiary and deposit the money in the |
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general revenue fund. |
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SECTION 4. Subchapter A, Chapter 191, Health and Safety |
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Code, is amended by adding Section 191.011 to read as follows: |
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Sec. 191.011. BIRTH INFORMATION FOR PREPAID HIGHER |
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EDUCATION TUITION BOARD. (a) The department shall implement an |
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efficient and effective method to inform the Prepaid Higher |
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Education Tuition Board regarding the birth of a child in this state |
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as necessary for the board to administer the universal savings |
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trust account under Section 54.7071, Education Code. |
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(b) The department shall enter into a memorandum of |
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understanding with the Prepaid Higher Education Tuition Board to |
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implement this section. |
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SECTION 5. This Act takes effect September 1, 2023. |