Senator Lincoln Fillmore proposes the following substitute bill:


1     
FINANCIAL EDUCATION AND SAVINGS PLAN TO

2     
BENEFIT AT-RISK CHILDREN

3     
2017 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Lincoln Fillmore

6     
House Sponsor: Rebecca P. Edwards

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions related to the Utah Workforce Services Code.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     creates the Parental Coaching to Encourage Student Savings Program within the
15     Department of Workforce Services;
16          ▸     describes the program, which provides:
17               •     financial training to parents of economically disadvantaged children attending
18     kindergarten to encourage the parents to start saving money for their child's
19     eventual higher education expenses; and
20               •     a financial contribution to the 529 savings accounts of economically
21     disadvantaged children attending kindergarten, if their parents successfully meet
22     the requirements of the program; and
23          ▸     describes the reporting and other requirements of the Department of Workforce
24     Services related to the program.
25     Money Appropriated in this Bill:

26          This bill appropriates in fiscal year 2018:
27          ▸     to the Department of Workforce Services -- Administration, as an ongoing
28     appropriation:
29               •     from the General Fund, $500,000.
30     Other Special Clauses:
31          None
32     Utah Code Sections Affected:
33     AMENDS:
34          63J-1-602.2, as last amended by Laws of Utah 2015, Chapters 86, 93, and 189
35     ENACTS:
36          35A-3-901, Utah Code Annotated 1953
37          35A-3-902, Utah Code Annotated 1953
38          35A-3-903, Utah Code Annotated 1953
39          35A-3-904, Utah Code Annotated 1953
40          53A-3-433, Utah Code Annotated 1953
41     

42     Be it enacted by the Legislature of the state of Utah:
43          Section 1. Section 35A-3-901 is enacted to read:
44     
Part 9. Parental Coaching to Encourage Student Savings Program

45          35A-3-901. Title.
46          This part is known as the "Parental Coaching to Encourage Student Savings Program."
47          Section 2. Section 35A-3-902 is enacted to read:
48          35A-3-902. Definitions.
49          As used in this part:
50          (1) "529 savings account" means a tax-advantaged method of saving for higher
51     education costs on behalf of a particular individual that:
52          (a) meets the requirements of Section 529, Internal Revenue Code; and
53          (b) is managed by the Utah Educational Savings Plan created in Section 53B-8a-103.
54          (2) "Economically disadvantaged" means that a qualified child is:
55          (a) experiencing intergenerational poverty;
56          (b) receiving SNAP benefits; or

57          (c) receiving Medicaid benefits.
58          (3) "Intergenerational poverty" means the same as that term is defined in Section
59     35A-9-102.
60          (4) "Parent applicant" means an applicant for the program who is a parent, legal
61     custodian, or legal guardian of a qualified child and who is living with the qualified child.
62          (5) "Parental coaching" means the training described in Subsection 35A-3-903(4).
63          (6) "Program" means the Parental Coaching to Encourage Student Savings Program
64     created in Section 35A-3-903.
65          (7) "Qualified child" means a child who is:
66          (a) five or six years old; and
67          (b) economically disadvantaged.
68          Section 3. Section 35A-3-903 is enacted to read:
69          35A-3-903. Program creation and description.
70          (1) There is created the Parental Coaching to Encourage Student Savings Program.
71          (2) The program shall be administered by the department.
72          (3) The program shall provide:
73          (a) parental coaching of a parent applicant as described in Subsection (4);
74          (b) a one-time contribution of $50 made by the department to a 529 savings account on
75     behalf of a qualified child, if one or more parent applicants successfully complete the parental
76     coaching described in Subsection (4); and
77          (c) an additional one-time matching contribution of $50 made by the department to a
78     529 savings account on behalf of a qualified child if:
79          (i) one or more parent applicants provide evidence to the department of having
80     contributed at least $50 to the 529 savings account on behalf of the qualified child; or
81          (ii) the Utah Educational Savings Plan informs the department that one or more parent
82     applicants have contributed at least $50 to the 529 savings account on behalf of the qualified
83     child.
84          (4) The department shall ensure that parental coaching:
85          (a) is a program of financial coaching designed to teach a parent applicant the
86     advantages of beginning a savings program for future higher education expenses of the parent
87     applicant's child while the child is still young;

88          (b) demonstrates to a parent applicant how compound interest works in increasing
89     savings over time;
90          (c) describes to a parent applicant the general financial and other advantages of
91     individuals who obtain education beyond the high school level;
92          (d) provides information to a parent applicant on opening a 529 savings account on
93     behalf of the parent applicant's child;
94          (e) encourages a parent applicant to be actively involved in the education of the parent
95     applicant's child; and
96          (f) is provided at no cost to a parent applicant.
97          (5) Parental coaching may be offered by the department or any of the following if
98     approved by the department:
99          (a) a civic organization, if the executive director follows the procedures for contracting
100     with a civic organization for the provision of social capital as described in Section 35A-3-507;
101          (b) a for-profit entity;
102          (c) an educational institution; or
103          (d) any state or local entity.
104          (6) A parent applicant may apply to the department, in a form approved by the
105     department, to participate in the program.
106          (7) The department shall verify that the parent applicant is eligible for the program,
107     including that the parent applicant is the parent, legal custodian, or legal guardian of a qualified
108     child and is living with the qualified child.
109          (8) Within 30 days of a parent applicant completing the parental coaching portion of
110     the program, the department, in cooperation with the Utah Educational Savings Plan:
111          (a) shall open a 529 savings account in the name of the parent applicant with the
112     qualified child as the beneficiary;
113          (b) subject to Subsection (8)(c), will deposit $50 into the 529 savings account; and
114          (c) will ensure that the maximum total contribution for each qualified child under this
115     Subsection (8) is no more than $50, even if more than one parent applicant of a qualified child
116     participates in the parental coaching described in this section.
117          (9) (a) Subject to Subsection (9)(b), if within 60 days of a parent applicant completing
118     the parental coaching portion of the program, the parent applicant or the Utah Educational

119     Savings Plan provides evidence to the department of having contributed $50 to the 529 savings
120     account opened under Subsection (8), the department will contribute a matching contribution
121     of $50 to the 529 savings account within 30 days of receiving evidence of the parent applicant
122     contribution.
123          (b) The department shall ensure that the maximum total contribution for each qualified
124     child under this Subsection (9) is no more than $50, even if more than one parent applicant of a
125     qualified child contributes to the 529 savings account.
126          (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
127     the department shall make rules to administer this part, to coordinate with the Utah Educational
128     Savings Plan, and to provide information to local education agencies so that local education
129     agencies can notify potential participants about the program as described in Section 53A-3-433.
130          Section 4. Section 35A-3-904 is enacted to read:
131          35A-3-904. Reporting.
132          As part of the annual written report described in Section 35A-1-109, the department
133     shall:
134          (1) provide the number of parent applicants who have participated in the program;
135          (2) provide the number of parent applicants who have completed parental coaching;
136          (3) provide the number of qualified children who have received a contribution from the
137     program to the 529 savings account opened on behalf of the qualified children;
138          (4) describe any marketing efforts by the department to make the families of qualified
139     children aware of the program;
140          (5) describe efforts to fund the program through private charitable donations; and
141          (6) make recommendations to the Legislature regarding the effectiveness of the
142     program and any suggestions for improving the program.
143          Section 5. Section 53A-3-433 is enacted to read:
144          53A-3-433. Parental Coaching to Encourage Student Savings Program
145     notification requirements.
146          (1) As used in this section:
147          (a) "Local education agency" or "LEA" means:
148          (i) a school district;
149          (ii) a charter school; or

150          (iii) the Utah Schools for the Deaf and the Blind.
151          (2) On or before October 1 of each school year, each LEA that offers kindergarten shall
152     provide to a parent, legal custodian, or legal guardian of each incoming kindergarten student
153     who is eligible for free lunch, written notification regarding the Parental Coaching to
154     Encourage Student Savings Program created in Section 35A-3-903.
155          Section 6. Section 63J-1-602.2 is amended to read:
156          63J-1-602.2. List of nonlapsing funds and accounts -- Title 31 through Title 45.
157          (1) Appropriations from the Technology Development Restricted Account created in
158     Section 31A-3-104.
159          (2) Appropriations from the Criminal Background Check Restricted Account created in
160     Section 31A-3-105.
161          (3) Appropriations from the Captive Insurance Restricted Account created in Section
162     31A-3-304, except to the extent that Section 31A-3-304 makes the money received under that
163     section free revenue.
164          (4) Appropriations from the Title Licensee Enforcement Restricted Account created in
165     Section 31A-23a-415.
166          (5) Appropriations from the Health Insurance Actuarial Review Restricted Account
167     created in Section 31A-30-115.
168          (6) Appropriations from the Insurance Fraud Investigation Restricted Account created
169     in Section 31A-31-108.
170          (7) Appropriations from the Underage Drinking Prevention Media and Education
171     Campaign Restricted Account created in Section 32B-2-306.
172          (8) Funding for the General Assistance program administered by the Department of
173     Workforce Services, as provided in Section 35A-3-401.
174          (9) The Youth Development Organization Restricted Account created in Section
175     35A-8-1903.
176          (10) The Youth Character Organization Restricted Account created in Section
177     35A-8-2003.
178          (11) Appropriations to the Parental Coaching to Encourage Student Savings Program
179     created in Section 35A-3-903.
180          [(11)] (12) Funding for a new program or agency that is designated as nonlapsing under

181     Section 36-24-101.
182          [(12)] (13) Appropriations to the Utah National Guard, created in Title 39, Militia and
183     Armories.
184          [(13)] (14) Appropriations from the Oil and Gas Conservation Account created in
185     Section 40-6-14.5.
186          [(14)] (15) Appropriations from the Electronic Payment Fee Restricted Account
187     created by Section 41-1a-121 to the Motor Vehicle Division.
188          [(15)] (16) Funds available to the Tax Commission under Section 41-1a-1201 for the:
189          (a) purchase and distribution of license plates and decals; and
190          (b) administration and enforcement of motor vehicle registration requirements.
191          [(16)] (17) Appropriations from the Motor Vehicle Enforcement Division Temporary
192     Permit Restricted Account created by Section 41-3-110 to the Tax Commission.
193          Section 7. Appropriation.
194          The following sums of money are appropriated for the fiscal year beginning July 1,
195     2017, and ending June 30, 2018. These are additions to amounts previously appropriated for
196     fiscal year 2018. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
197     Act, the Legislature appropriates the following sums of money from the funds or accounts
198     indicated for the use and support of the government of the state of Utah.
199          To the Department of Workforce Services -- Administration
200               From General Fund
$500,000

201               Schedule of Programs:
202                    Administration                    $500,000
203          The Legislature intends that in accordance with Subsection 63J-1-602(2), the
204     appropriation provided in this section be nonlapsing and that the Department of Workforce
205     Services use the appropriation under this section to carry out the program described in Sections
206     35A-3-901 through 35A-3-904.