Bill Text: TX HB3708 | 2011-2012 | 82nd Legislature | Enrolled

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Bill Title: Relating to measures regarding high school completion and enrollment in higher education.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2011-06-17 - See remarks for effective date [HB3708 Detail]

Download: Texas-2011-HB3708-Enrolled.html

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H.B. No. 3708

AN ACT
relating to measures regarding high school completion and
enrollment in higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 29, Education Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. PUBLIC JUNIOR COLLEGE AND SCHOOL DISTRICT
PARTNERSHIP PROGRAM TO PROVIDE DROPOUT RECOVERY
Sec. 29.401. APPLICABILITY. (a) This subchapter applies
only to a public junior college, as defined by Section 61.003,
located in a county:
(1) with a population of 750,000 or more; and
(2) with less than 65 percent of the population 25
years and older having graduated from high school, according to the
most recent American Community Survey five-year estimates compiled
by the United States Census Bureau.
(b) The application of this subchapter to a public junior
college is not affected if, after the public junior college enters
into a partnership and begins providing a dropout recovery program
as provided by this subchapter, the county's demographics under
Subsection (a)(2) change and the county no longer meets the
requirements under Subsection (a)(2).
(c) This subchapter applies only to a school district with a
dropout rate that is higher than 15 percent based on four-year high
school completion rates. The application of this subchapter to a
district is not affected if, after the district enters into a
partnership as provided by this subchapter, the district's dropout
rate changes and the district no longer meets the requirements
under this subsection.
(d) This section expires September 1, 2013.
Sec. 29.402. PARTNERSHIP. (a) Beginning September 1,
2012, a public junior college may enter into an articulation
agreement to partner with one or more school districts located in
the public junior college district to provide on the campus of the
public junior college a dropout recovery program for students
described by Subsection (b) to successfully complete and receive a
diploma from a high school of the appropriate partnering school
district.
(b) A person who is under 26 years of age is eligible to
enroll in a dropout recovery program under this subchapter if the
person:
(1) must complete not more than three course credits
to complete the curriculum requirements for the minimum,
recommended, or advanced high school program, as appropriate, for
high school graduation; or
(2) has failed to perform satisfactorily on an
end-of-course assessment instrument administered under Section
39.023(c) or an assessment instrument administered under Section
39.023(c) as that section existed before amendment by Chapter 1312
(S.B. 1031), Acts of the 80th Legislature, Regular Session, 2007.
(c) A public junior college under this section shall:
(1) design a dropout recovery curriculum that includes
career and technology education courses that lead to industry or
career certification;
(2) integrate into the dropout recovery curriculum
research-based strategies to assist students in becoming able
academically to pursue postsecondary education, including:
(A) high quality, college readiness instruction
with strong academic and social supports;
(B) secondary to postsecondary bridging that
builds college readiness skills, provides a plan for college
completion, and ensures transition counseling; and
(C) information concerning appropriate supports
available in the first year of postsecondary enrollment to ensure
postsecondary persistence and success, to the extent funds are
available for the purpose;
(3) offer advanced academic and transition
opportunities, including dual credit courses and college
preparatory courses, such as advanced placement courses; and
(4) coordinate with each partnering school district to
provide in the articulation agreement that the district retains
accountability for student attendance, student completion of high
school course requirements, and student performance on assessment
instruments as necessary for the student to receive a diploma from a
high school of the partnering school district.
(d) A dropout recovery program provided under this
subchapter must comply with the requirements of Sections 29.081(e)
and (f).
Sec. 29.403. FINANCING. (a) A public junior college
district may receive from each partnering school district for each
student from that district enrolled in a dropout recovery program
under this subchapter an amount negotiated between the junior
college district and that partnering district not to exceed the
total average per student funding amount in that district during
the preceding school year for maintenance and operations, including
state and local funding, but excluding money from the available
school fund.
(b) A student who is enrolled in a program under this
subchapter is included in determining the average daily attendance
under Section 42.005 of the partnering school district.
Sec. 29.404. OTHER FUNDING. (a) To the extent consistent
with the General Appropriations Act, a public junior college under
this subchapter is eligible to receive dropout prevention and
intervention program funds appropriated to the agency.
(b) A public junior college under this subchapter may
receive gifts, grants, and donations to use for the purposes of this
subchapter.
SECTION 2. Section 54.213(b), Education Code, is amended to
read as follows:
(b) [Savings to the foundation school fund that occur as a
result of the Early High School Graduation Scholarship program
created in Subchapter K, Chapter 56, and that are not required for
the funding of state credits for tuition and mandatory fees under
Section 56.204 or school district credits under Section 56.2075
shall be used first to provide tuition exemptions under Section
54.212. Any of those savings remaining after providing tuition
exemptions under Section 54.212 shall be used to provide tuition
exemptions under Section 54.214.] The Texas Education Agency shall
[also] accept and make available to provide tuition exemptions
under Section 54.214 gifts, grants, and donations made to the
agency for that purpose. The commissioner of education shall
transfer those funds to the Texas Higher Education Coordinating
Board to distribute to institutions of higher education that
provide exemptions under that section. [Payment of funds under
this subsection shall be made in the manner provided by Section
56.207 for state credits under Subchapter K, Chapter 56.]
SECTION 3. Chapter 54, Education Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. TEXAS SAVE AND MATCH PROGRAM
Sec. 54.801. DEFINITIONS. In this subchapter:
(1) "Accredited out-of-state institution of higher
education," "career school," "general academic teaching
institution," "private or independent institution of higher
education," and "two-year institution of higher education" have
the meanings assigned by Section 54.751.
(2) "Beneficiary" means a beneficiary on whose behalf
a purchaser enters into a prepaid tuition contract with the board
under Subchapter H or for whom a savings trust account is opened
under Subchapter G.
(3) "Board" means the Prepaid Higher Education Tuition
Board.
(4) "Fund" means the Texas save and match trust fund
established under Section 54.808.
(5) "Program" means the Texas Save and Match Program
established under this subchapter.
(6) "Program entity" means the Texas Match the
Promise Foundation, a Texas nonprofit corporation, or any other
tax-exempt charitable organization established by law to implement
the program.
Sec. 54.802. TEXAS SAVE AND MATCH PROGRAM. (a) The board,
in cooperation with the program entity, shall administer the Texas
Save and Match Program, under which money contributed to a savings
trust account by an account owner under a higher education savings
plan established under Subchapter G or paid by a purchaser under a
prepaid tuition contract under Subchapter H on behalf of an
eligible beneficiary may be matched with:
(1) contributions made by any person to the program
entity for use in making additional savings trust account
contributions under Subchapter G or in purchasing additional
tuition units under prepaid tuition contracts under Subchapter H;
or
(2) money appropriated by the legislature for the
program to be used by the board to make additional savings trust
account contributions under Subchapter G or to purchase additional
tuition units under Subchapter H.
(b) In addition to the board's powers assigned under
Subchapters F, G, and H, the board has the powers necessary or
proper to carry out its duties under this subchapter, including the
power to:
(1) sue and be sued;
(2) enter into contracts and other necessary
instruments;
(3) enter into agreements or other transactions with
the United States, state agencies, general academic teaching
institutions, two-year institutions of higher education, and local
governments;
(4) appear on its own behalf before governmental
agencies;
(5) contract for necessary goods and services,
including specifying in the contract duties to be performed by the
provider of a good or service that are a part of or are in addition
to the person's primary duties under the contract;
(6) engage the services of private consultants,
actuaries, trustees, records administrators, managers, legal
counsel, and auditors for administrative or technical assistance;
(7) solicit and accept gifts, grants, donations,
loans, and other aid from any source or participate in any other
manner in any government program to carry out this subchapter;
(8) impose administrative fees;
(9) contract with a person to market the program;
(10) purchase liability insurance covering the board
and employees and agents of the board; and
(11) establish other policies, procedures, and
eligibility criteria to implement this subchapter.
(c) Notwithstanding other law, for purposes of Subchapter
I, Chapter 659, Government Code:
(1) the program entity is considered an eligible
charitable organization entitled to participate in a state
employee charitable campaign under Subchapter I, Chapter 659,
Government Code; and
(2) a state employee is entitled to authorize a
payroll deduction for contributions to the program entity as a
charitable contribution under Section 659.132, Government Code.
Sec. 54.803. INITIAL ELIGIBILITY FOR PARTICIPATION IN
PROGRAM. (a) To be initially eligible to participate in the
program, a beneficiary, at the time a prepaid tuition contract is
entered into on the beneficiary's behalf under Subchapter H or a
savings trust account is opened on the beneficiary's behalf under
Subchapter G, as applicable, must be:
(1) a resident of this state; or
(2) a dependent for purposes of Section 152, Internal
Revenue Code of 1986, of a resident of this state.
(b) To be initially eligible to receive matching funds
described by Section 54.802(a)(2) under the program, a beneficiary,
at the time a prepaid tuition contract is entered into on the
beneficiary's behalf under Subchapter H, or a savings trust
account is opened on the beneficiary's behalf under Subchapter G,
as applicable, must be eligible for free meals under the national
free or reduced-price breakfast and lunch program.
Sec. 54.804. LIMITATIONS. A matching account established
by the board or program entity on behalf of a beneficiary under
this subchapter is forfeited and reverts to the board or program
entity on the occurrence of any of the following:
(1) the 10th anniversary of the date the beneficiary
is projected to graduate from high school, as indicated by the
purchaser in the enrollment contract, except that time spent by the
beneficiary as an active duty member of the United States armed
services tolls the period described by this subdivision;
(2) a change of beneficiary by the account owner or
purchaser of the matched account;
(3) a contract cancellation of the matched account and
refund request;
(4) the successful completion by the beneficiary of an
associate or bachelor's degree program;
(5) transfer of the matched account to another
qualified tuition program of any state that meets the requirements
of Section 529, Internal Revenue Code of 1986; or
(6) any other event the board or program entity
determines would be inconsistent with the program's purposes.
Sec. 54.805. MATCHING ACCOUNT ADMINISTRATION. (a) A
matching account established by the board or program entity on
behalf of a beneficiary under this subchapter must be accounted for
separately from the beneficiary's prepaid tuition contract balance
or savings trust account balance.
(b) To the extent possible, money or tuition units in a
beneficiary's matching account shall be used or redeemed after
money is used from the beneficiary's savings trust account under
Subchapter G or tuition units are redeemed from the prepaid tuition
contract for the beneficiary under Subchapter H.
(c) To the extent possible, the board shall include
information about a matching account in the periodic statement
provided to applicable account owners and purchasers under
Subchapters G and H.
Sec. 54.806. CONFIDENTIALITY. (a) Records in the custody
of the board or program entity relating to the participation of
specific purchasers, beneficiaries, applicants, scholarship
recipients, or donors under the program are confidential.
(b) Notwithstanding Subsection (a), the board or program
entity may release information described by Subsection (a) to the
extent required by a general academic teaching institution,
two-year institution of higher education, private or independent
institution of higher education, career school, or accredited
out-of-state institution of higher education at which a beneficiary
may enroll or is enrolled. The institution or school receiving
information described by Subsection (a) shall keep the information
confidential.
(c) Notwithstanding any other provision of this subchapter,
the board or program entity may release information to the Internal
Revenue Service or to any state tax agency as required by applicable
tax law.
(d) Notwithstanding any other provision of this subchapter,
the board or program entity may release information relating to
donors who authorize release of that information.
Sec. 54.807. PILOT PROJECTS UNDER PROGRAM. To fulfill the
intent of the program, the board may use funds described by Section
54.802(a)(2) to establish pilot projects under the program in an
effort to incentivize participation in the higher education savings
program under Subchapter G and the prepaid tuition unit
undergraduate education program under Subchapter H, including
projects that incentivize participation by:
(1) awarding additional matching grants based on a
beneficiary's achievement of specified academic goals;
(2) providing initial matching grants and paying
application fees;
(3) providing incentives for employers to contribute
matching funds to the program; and
(4) creating a program information portal designed to
increase program awareness and accessibility among school
districts, parents, and students.
Sec. 54.808. TEXAS SAVE AND MATCH TRUST FUND; AGREEMENTS
BETWEEN BOARD AND PROGRAM ENTITY REGARDING PROGRAM ENTITY FUNDS.
(a) The Texas save and match trust fund is established as a trust
fund to be held with the comptroller.
(b) Money in the fund may be spent without appropriation
and only to establish matching accounts, make deposits, purchase
tuition units, and award matching grants and scholarships under
the program and to pay the costs of program administration and
operations.
(c) The board may invest, reinvest, and direct the
investment of any available money in the fund.
(d) Interest and income from the assets of the fund shall be
credited to and deposited in the fund.
(e) The board and the program entity may enter into an
agreement under which the board may hold and manage funds of the
program entity and provide services to the program entity.
Sec. 54.809. RULES. The board shall adopt rules for the
administration of this subchapter.
SECTION 4. Subchapter A, Chapter 56, Education Code, is
amended by adding Section 56.007 to read as follows:
Sec. 56.007. EXCLUSION OF ASSETS IN PREPAID TUITION
PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. Notwithstanding any
other law, the right of a person to assets held in or the right to
receive payments or benefits under any fund or plan established
under Subchapter G, H, or I, Chapter 54, including an interest in a
savings trust account, prepaid tuition account, or related matching
account, may not be considered an asset of the person, or otherwise
included in the person's household income or other financial
resources, for purposes of determining the person's eligibility for
a TEXAS grant or any other state-funded student financial
assistance.
SECTION 5. Section 56.204(a), Education Code, is amended to
read as follows:
(a) In a total amount not to exceed the amount of funds
appropriated for the current state fiscal year to pay for [An
eligible person under the Early High School Graduation Scholarship
program is entitled to] a state credit to apply toward tuition or
tuition and mandatory fees, as applicable, at a public or private
institution of higher education in this state, the commissioner of
education shall award to eligible persons credits in the following
amounts:
(1) $2,000 to apply toward tuition and mandatory fees
if the person successfully completed the recommended or advanced
high school program established under Section 28.025 and graduated
from high school on or after September 1, 2005, in 36 consecutive
months or less and an additional $1,000 to apply toward tuition and
mandatory fees if the person graduated with at least 15 hours of
college credit;
(2) $500 to apply toward tuition and mandatory fees if
the person successfully completed the recommended or advanced high
school program established under Section 28.025 and graduated from
high school on or after September 1, 2005, in more than 36
consecutive months but not more than 41 consecutive months and an
additional $1,000 to apply toward tuition and mandatory fees if the
person graduated with at least 30 hours of college credit;
(3) $1,000 to apply toward tuition and mandatory fees
if the person successfully completed the recommended or advanced
high school program established under Section 28.025 and graduated
from high school on or after September 1, 2005, in more than 41
consecutive months but not more than 45 consecutive months with at
least 30 hours of college credit; or
(4) $1,000 to apply only toward tuition if the person
graduated before September 1, 2005, after successfully completing
the requirements for a high school diploma in not more than 36
consecutive months.
SECTION 6. Section 56.207(b), Education Code, is amended to
read as follows:
(b) On receipt of a report from the coordinating board under
Subsection (a), the commissioner of education shall transfer to the
coordinating board, from funds appropriated for the purpose of the
Early High [Foundation] School Graduation Scholarship program
[Program], an amount commensurate with the amount of funds
appropriated [sufficient] to pay each eligible institution of
higher education the amount of state credit for tuition or tuition
and mandatory fees, as applicable, that is applied by the
institution during the period covered by the report.
SECTION 7. Subchapter C, Chapter 62, Health and Safety
Code, is amended by adding Section 62.1012 to read as follows:
Sec. 62.1012. EXCLUSION OF ASSETS IN PREPAID TUITION
PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. For purposes of
determining whether a child meets family income and resource
requirements for eligibility for the child health plan, the
commission may not consider as income or resources a right to
assets held in or a right to receive payments or benefits under:
(1) any fund or plan established under Subchapter G,
H, or I, Chapter 54, Education Code, including an interest in a
savings trust account, prepaid tuition contract, or related
matching account; or
(2) any qualified tuition program of any state that
meets the requirements of Section 529, Internal Revenue Code of
1986.
SECTION 8. Subchapter A, Chapter 31, Human Resources Code,
is amended by adding Section 31.0039 to read as follows:
Sec. 31.0039. EXCLUSION OF ASSETS IN PREPAID TUITION
PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. For purposes of
determining the amount of financial assistance granted to an
individual under this chapter for the support of dependent
children or determining whether the family meets household income
and resource requirements for financial assistance under this
chapter, the department may not consider the right to assets held in
or the right to receive payments or benefits under:
(1) any fund or plan established under Subchapter G,
H, or I, Chapter 54, Education Code, including an interest in a
savings trust account, prepaid tuition contract, or related
matching account; or
(2) any qualified tuition program of any state that
meets the requirements of Section 529, Internal Revenue Code of
1986.
SECTION 9. Subchapter B, Chapter 32, Human Resources Code,
is amended by adding Section 32.02611 to read as follows:
Sec. 32.02611. EXCLUSION OF ASSETS IN PREPAID TUITION
PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. (a) Except as
provided by Subsection (b), in determining eligibility and need for
medical assistance, the department may not consider as assets or
resources a right to assets held in or a right to receive payments
or benefits under:
(1) any fund or plan established under Subchapter G,
H, or I, Chapter 54, Education Code, including an interest in a
savings trust account, prepaid tuition contract, or related
matching account; or
(2) any qualified tuition program of any state that
meets the requirements of Section 529, Internal Revenue Code of
1986.
(b) In determining eligibility and need for medical
assistance for an applicant who may be eligible on the basis of the
applicant's eligibility for medical assistance for the aged, blind,
or disabled under 42 U.S.C. Section 1396a(a)(10), the department
may consider as assets or resources a right to assets held in or a
right to receive payments or benefits under any fund, plan, or
tuition program described by Subsection (a).
(c) Notwithstanding Subsection (b), the department shall
seek a federal waiver authorizing the department to exclude, for
purposes of determining the eligibility of an applicant described
by that subsection, the right to assets held in or a right to
receive payments or benefits under any fund, plan, or tuition
program described by Subsection (a) if the fund, plan, or tuition
program was established before the 21st birthday of the beneficiary
of the fund, plan, or tuition program.
SECTION 10. Section 54.7521, Education Code, is repealed.
SECTION 11. Sections 56.202(b) and 56.208, Education Code,
are repealed.
SECTION 12. As soon as practicable after this Act takes
effect, the Texas Higher Education Coordinating Board shall revise
rules adopted under Section 56.209(a), Education Code, as necessary
to conform to changes made by this Act to Subchapter K, Chapter 56,
Education Code. For that purpose, the coordinating board may adopt
the revisions to those rules in the manner provided by law for
emergency rules. This section expires September 1, 2012.
SECTION 13. The changes in law made by this Act apply
beginning with the 2011-2012 academic year, but do not affect any
state credit awarded under Subchapter K, Chapter 56, Education
Code, before the effective date of this Act.
SECTION 14. The Prepaid Higher Education Tuition Board
shall adopt the initial rules required by Subchapter I, Chapter 54,
Education Code, as added by this Act, not later than May 31, 2012.
SECTION 15. The Texas Save and Match Program established by
this Act is an expansion of the Texas Save and Match program created
under Section 54.7521, Education Code. On and after the effective
date of the repeal of Section 54.7521, Education Code, by this Act,
the tax-exempt charitable organization created under that section
to provide matching funds under that program may continue to accept
tax-deductible donations for the purpose of providing matching
funds under the program established by this Act.
SECTION 16. Subchapter I, Chapter 54, Education Code, as
added by this Act, applies to a prepaid tuition contract purchased
for a beneficiary under Subchapter H, Chapter 54, Education Code,
regardless of whether the prepaid tuition contract was purchased
before, on, or after the effective date of this Act. Subchapter I,
Chapter 54, Education Code, as added by this Act, applies only to a
savings trust account opened for a beneficiary under Subchapter G,
Chapter 54, Education Code, on or after January 1, 2012.
SECTION 17. If before implementing any provision of this
Act a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
SECTION 18. The changes in law made by this Act apply to a
person who receives health benefits coverage under Chapter 62,
Health and Safety Code, financial assistance under Chapter 31,
Human Resources Code, or medical assistance under Chapter 32, Human
Resources Code, on or after the effective date of this Act,
regardless of the date on which eligibility for coverage or
assistance was initially determined.
SECTION 19. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2011.
(b) Section 10 of this Act takes effect January 1, 2012.
SECTION 20. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3708 was passed by the House on May 3,
2011, by the following vote: Yeas 143, Nays 1, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3708 on May 27, 2011, by the following vote: Yeas 129, Nays 12,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3708 was passed by the Senate, with
amendments, on May 25, 2011, by the following vote: Yeas 30, Nays
1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor