BILL ANALYSIS

C.S.H.B. 4279

By: Davis, Yvonne

Higher Education

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that the urban scholarship program was established by the 74th Legislature with the cooperation of the three largest local telephone companies in Texas at that time. The bill author has further informed the committee that since the establishment of the fund, over 20,000 students have been able to begin or continue their college educations due to over $11 million awarded to them through the fund. Currently, local exchange companies have the option to direct unclaimed funds to a scholarship fund for urban students. However, the bill author has informed the committee that because this provision is not a requirement, there are inconsistent contributions across companies, potentially limiting the availability of scholarships for students in need. C.S.H.B. 4279 seeks to increase resources available for certain scholarships by requiring local exchange companies to deliver reported unclaimed money to the urban scholarship fund.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 4279 amends the Property Code to revise statutory provisions relating to the delivery of money to an urban scholarship fund as follows:

· replaces the authorization for a local exchange company to deliver reported money to a scholarship fund for urban students instead of delivering the money to the comptroller of public accounts as prescribed by applicable state law with a requirement that it do so;

· replaces the authorization for the local exchange company to deliver that money only to a scholarship fund established by one or more local exchange companies in Texas to enable needy students from urban areas to attend college, technical school, or another postsecondary educational institution with a requirement that it do so; and

· subjects a local exchange company that violates the provisions relating to the delivery of money to an urban scholarship fund to the penalty required under enforcement provisions applicable to the reporting, delivery, and claims process relating to unclaimed property.

If a holder fails to deliver property to a scholarship fund for urban students as required on or before the latest date for delivery of property to the comptroller under applicable state law, a penalty equal to 10 percent of the value of the property due must be imposed on the holder for each day on and after that date on which the holder fails to deliver the property. The bill clarifies that, for purposes of the required penalty, a "holder" does not include a local governmental entity or an officer or employee of a local governmental entity who is performing the officer's or employee's official duties for the local governmental entity.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 4279 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute replaces the provision of the introduced that subjected a local exchange company that fails to comply with provisions relating to the delivery of money to an urban scholarship fund to the enforcement provisions applicable to the reporting, delivery, and claims process relating to unclaimed property with a provision subjecting such a local exchange company to the penalty established under the substitute's provisions.