84R4382 KSD-D
	By: Lucio III	H.B. No. 727

	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, 2023, 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, 2024.
	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 2016-2017 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, 2015.