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8 LONG TITLE
9 General Description:
10 This bill creates the Parental Coaching to Encourage Student Savings Program.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ creates the Parental Coaching to Encourage Student Savings Program (the program)
15 within the Department of Workforce Services which provides:
16 • financial training to parents of certain children experiencing intergenerational
17 poverty, to encourage the parents to start saving money for their child's higher
18 education expenses; and
19 • a financial contribution to the 529 savings accounts of certain children
20 experiencing intergenerational poverty, if a parent successfully meets the
21 requirements of the program;
22 ▸ requires the Department of Workforce Services to make rules to administer the
23 program;
24 ▸ creates the Parental Coaching to Encourage Student Savings Program Restricted
25 Account;
26 ▸ describes the reporting and other requirements of the Department of Workforce
27 Services related to the program;
28 ▸ requires local education agencies to provide written notification of the program to
29 the parents of children attending kindergarten;
30 ▸ requires the Division of Finance to transfer a certain amount of money each year
31 from the Unclaimed Property Trust Fund to the Parental Coaching to Encourage
32 Student Savings Program Restricted Account; and
33 ▸ makes technical changes.
34 Money Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 None
38 Utah Code Sections Affected:
39 AMENDS:
40 63I-1-263, as last amended by Laws of Utah 2021, Chapters 70, 72, 84, 90, 171, 196,
41 260, 280, 282, 345, 382, 401, 421 and last amended by Coordination Clause, Laws
42 of Utah 2021, Chapter 382
43 63J-1-602.1, as last amended by Laws of Utah 2021, Chapters 280, 382, 401, and 438
44 67-4a-801, as repealed and reenacted by Laws of Utah 2017, Chapter 371
45 ENACTS:
46 35A-3-901, Utah Code Annotated 1953
47 35A-3-902, Utah Code Annotated 1953
48 35A-3-903, Utah Code Annotated 1953
49 35A-3-904, Utah Code Annotated 1953
50 53G-4-412, Utah Code Annotated 1953
51
52 Be it enacted by the Legislature of the state of Utah:
53 Section 1. Section 35A-3-901 is enacted to read:
54
55 35A-3-901. Definitions.
56 As used in this part:
57 (1) "529 savings account" means a tax-advantaged method of saving for higher
58 education costs on behalf of a particular individual that:
59 (a) meets the requirements of Section 529, Internal Revenue Code; and
60 (b) is managed by the plan.
61 (2) "Eligible 529 savings account" means a 529 savings account for which:
62 (a) a parent applicant is the account owner; and
63 (b) the parent applicant's qualified child is a beneficiary.
64 (3) "Intergenerational poverty" means the same as that term is defined in Section
65 35A-9-102.
66 (4) "Local education agency" means a school district, a charter school, or the Utah
67 Schools for the Deaf and the Blind.
68 (5) "Parent applicant" means an applicant for the program who is a parent, legal
69 custodian, or legal guardian of a qualified child and who is living with the qualified child.
70 (6) "Parental coaching" means the training described in Subsection 35A-3-902(4).
71 (7) "Plan" means the Utah Educational Savings Plan created in Section 53B-8a-103.
72 (8) "Program" means the Parental Coaching to Encourage Student Savings Program
73 created in Section 35A-3-902.
74 (9) "Qualified child" means a child who is:
75 (a) five or six years old; and
76 (b) experiencing intergenerational poverty.
77 (10) "Restricted account" means the Parental Coaching to Encourage Student Savings
78 Program Restricted Account created in Section 35A-3-903.
79 Section 2. Section 35A-3-902 is enacted to read:
80 35A-3-902. Program creation and description.
81 (1) There is created the Parental Coaching to Encourage Student Savings Program.
82 (2) The program shall be administered by the department.
83 (3) Subject to available funds, the program shall provide:
84 (a) parental coaching to a parent applicant as described in Subsection (4);
85 (b) a one-time contribution of $500 made by the department to an eligible 529 savings
86 account in accordance with Subsection (7), if:
87 (i) the parent applicant completes the parental coaching; and
88 (ii) the parent applicant opens the eligible 529 savings account no later than 60 days
89 after the day on which the parent applicant completes the parental coaching; and
90 (c) an additional one-time contribution of $50 made by the department to an eligible
91 529 savings account in accordance with Subsection (7), if the parent applicant contributes at
92 least $50 to the eligible 529 savings account within 60 days after the day on which the parent
93 applicant completes the parental coaching.
94 (4) The department shall ensure that parental coaching:
95 (a) is a program of financial coaching designed to teach a parent applicant the
96 advantages of beginning a savings program for future higher education expenses of the parent
97 applicant's child while the child is still young;
98 (b) demonstrates how compound interest works in increasing savings over time;
99 (c) describes the general financial and other advantages of individuals who obtain
100 education beyond the high school level;
101 (d) provides information about how to open an eligible 529 savings account;
102 (e) provides information about the benefits of the program, including an explanation of
103 the requirements for an eligible 529 savings account to receive the one-time contributions
104 described in Subsections (3)(b) and (c);
105 (f) encourages a parent applicant to be actively involved in the education of the parent
106 applicant's child; and
107 (g) is provided at no cost to a parent applicant.
108 (5) Parental coaching may be offered by the department or any of the following if
109 approved by the department:
110 (a) a civic organization, if the executive director enters into a contract with the civic
111 organization following the procedures for contracting with a civic organization for the
112 provision of social capital under Section 35A-3-507;
113 (b) a for-profit entity;
114 (c) an educational institution; or
115 (d) a government entity.
116 (6) A parent applicant may apply to the department, in a form approved by the
117 department, to participate in the program.
118 (7) (a) If a parent applicant completes the parental coaching portion of the program and
119 provides evidence to the department of having opened an eligible 529 savings account no later
120 than 60 days after the day on which the parent applicant completes the parental coaching, the
121 department, in coordination with the plan, shall provide a one-time contribution of $500 to the
122 eligible 529 savings account.
123 (b) The department shall provide an additional one-time contribution of $50 to the 529
124 savings account described in Subsection (7)(a) if the parent applicant provides evidence to the
125 department of having contributed at least $50 to the eligible 529 savings account within 60
126 days after the day on which the parent applicant completes the parental coaching.
127 (c) (i) The department shall ensure that the maximum total contribution for one
128 qualified child under Subsection (7)(a) does not exceed $500, even if more than one parent
129 applicant of a qualified child completes the parental coaching portion of the program or more
130 than one eligible 529 savings account is opened on behalf of a qualified child.
131 (ii) The department shall ensure that the maximum total contribution for one qualified
132 child under Subsection (7)(b) does not exceed $50, even if more than one parent applicant of a
133 qualified child completes the parental coaching portion of the program or more than one
134 eligible 529 savings account is opened on behalf of a qualified child.
135 (d) (i) The department shall make the contribution described in Subsection (7)(a)
136 within 30 days after the day on which the department receives from the parent applicant
137 evidence of having opened the eligible 529 savings account.
138 (ii) The department shall make the contribution described in Subsection (7)(b) within
139 30 days after the day on which the department receives from the parent applicant evidence of
140 the parental applicant's contribution to the eligible 529 savings account.
141 (8) The department shall disseminate information about the program to local education
142 agencies, including information regarding program eligibility.
143 (9) (a) The department shall, in accordance with Title 63G, Chapter 3, Utah
144 Administrative Rulemaking Act, make rules to administer the program and carry out the
145 provisions of this part.
146 (b) The rules made under Subsection (9)(a) shall include:
147 (i) procedures for a parent applicant to apply to the department to participate in the
148 program;
149 (ii) standards for the provision of parental coaching under Subsection (4);
150 (iii) procedures for a parent applicant to provide to the department evidence of opening
151 an eligible 529 savings account or contributing to an eligible 529 savings account as required
152 under Subsection (7); and
153 (iv) provisions for information sharing and coordination with the plan.
154 Section 3. Section 35A-3-903 is enacted to read:
155 35A-3-903. Parental Coaching to Encourage Student Savings Program Restricted
156 Account.
157 (1) There is created a restricted account within the General Fund known as the
158 "Parental Coaching to Encourage Student Savings Program Restricted Account".
159 (2) The department is the administrator of the restricted account.
160 (3) (a) Subject to Subsection (3)(b), the department shall use account money to pay for
161 the program.
162 (b) The department may not use more than $1,000,000 each year for the one-time
163 contributions described in Subsections 35A-3-902(3)(b) and (c).
164 (4) The restricted account consists of:
165 (a) money transferred to the restricted account under Section 67-4a-801; and
166 (b) money appropriated or otherwise made available by the Legislature.
167 (5) (a) The restricted account shall earn interest.
168 (b) All interest earned on the restricted account shall be deposited into the restricted
169 account.
170 Section 4. Section 35A-3-904 is enacted to read:
171 35A-3-904. Reporting.
172 As part of the annual written report described in Section 35A-1-109, the department
173 shall:
174 (1) provide the number of parent applicants who have participated in the program;
175 (2) provide the number of parent applicants who have completed parental coaching;
176 (3) provide the number of qualified children who have received a contribution from the
177 program to an eligible 529 savings account opened on behalf of the qualified children;
178 (4) describe the status of the restricted account, including an accounting of
179 expenditures made from the restricted account; and
180 (5) make recommendations to the Legislature regarding the effectiveness of the
181 program and any suggestions for improving the program.
182 Section 5. Section 53G-4-412 is enacted to read:
183 53G-4-412. Parental Coaching to Encourage Student Savings Program
184 notification requirements.
185 (1) As used in this section, "local education agency" means a school district, a charter
186 school, or the Utah Schools for the Deaf and the Blind.
187 (2) On or before October 1 of each school year, a local education agency that offers
188 kindergarten shall provide to a parent, legal custodian, or legal guardian of each incoming
189 kindergarten student, written notification regarding the Parental Coaching to Encourage
190 Student Savings Program created in Section 35A-3-902, including information regarding
191 program eligibility.
192 Section 6. Section 63I-1-263 is amended to read:
193 63I-1-263. Repeal dates, Titles 63A to 63N.
194 (1) In relation to the Utah Transparency Advisory Board, on January 1, 2025:
195 (a) Section 63A-16-102 is repealed;
196 (b) Section 63A-16-201 is repealed; and
197 (c) Section 63A-16-202 is repealed.
198 (2) Subsection 63A-5b-405(5), relating to prioritizing and allocating capital
199 improvement funding, is repealed July 1, 2024.
200 (3) Section 63A-5b-1003, State Facility Energy Efficiency Fund, is repealed July 1,
201 2023.
202 (4) Sections 63A-9-301 and 63A-9-302, related to the Motor Vehicle Review
203 Committee, are repealed July 1, 2023.
204 (5) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
205 1, 2028.
206 (6) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
207 2025.
208 (7) Title 63C, Chapter 12, Snake Valley Aquifer Advisory Council, is repealed July 1,
209 2024.
210 (8) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
211 repealed July 1, 2023.
212 (9) Title 63C, Chapter 18, Behavioral Health Crisis Response Commission, is repealed
213 July 1, 2023.
214 (10) Title 63C, Chapter 23, Education and Mental Health Coordinating Council, is
215 repealed July 1, 2026.
216 (11) Title 63A, Chapter 16, Part 7, Data Security Management Council, is repealed
217 July 1, 2025.
218 (12) Section 63G-6a-805, which creates the Purchasing from Persons with Disabilities
219 Advisory Board, is repealed July 1, 2026.
220 (13) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
221 2025.
222 (14) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
223 2024.
224 (15) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
225 (16) Subsection 63J-1-602.1(17), Nurse Home Visiting Restricted Account is repealed
226 July 1, 2026.
227 (17) (a) Subsection 63J-1-602.1[
228 Restricted Account, is repealed July 1, 2022.
229 (b) When repealing Subsection 63J-1-602.1[
230 Research and General Counsel shall, in addition to the office's authority under Subsection
231 36-12-12(3), make necessary changes to subsection numbering and cross references.
232 (18) Subsection 63J-1-602.2(5), referring to dedicated credits to the Utah Marriage
233 Commission, is repealed July 1, 2023.
234 (19) Subsection 63J-1-602.2(6), referring to the Trip Reduction Program, is repealed
235 July 1, 2022.
236 (20) Subsection 63J-1-602.2(24), related to the Utah Seismic Safety Commission, is
237 repealed January 1, 2025.
238 (21) Title 63J, Chapter 4, Part 5, Resource Development Coordinating Committee, is
239 repealed July 1, 2027.
240 (22) In relation to the advisory committee created in Subsection 63L-11-305(3), on July
241 1, 2022:
242 (a) Subsection 63L-11-305(1)(a), which defines "advisory committee," is repealed; and
243 (b) Subsection 63L-11-305(3), which creates the advisory committee, is repealed.
244 (23) In relation to the Utah Substance Use and Mental Health Advisory Council, on
245 January 1, 2023:
246 (a) Sections 63M-7-301, 63M-7-302, 63M-7-303, 63M-7-304, and 63M-7-306 are
247 repealed;
248 (b) Section 63M-7-305, the language that states "council" is replaced with
249 "commission";
250 (c) Subsection 63M-7-305(1) is repealed and replaced with:
251 "(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
252 (d) Subsection 63M-7-305(2) is repealed and replaced with:
253 "(2) The commission shall:
254 (a) provide ongoing oversight of the implementation, functions, and evaluation of the
255 Drug-Related Offenses Reform Act; and
256 (b) coordinate the implementation of Section 77-18-104 and related provisions in
257 Subsections 77-18-103(2)(c) and (d).".
258 (24) The Crime Victim Reparations and Assistance Board, created in Section
259 63M-7-504, is repealed July 1, 2027.
260 (25) Title 63M, Chapter 7, Part 6, Utah Council on Victims of Crime, is repealed July
261 1, 2022.
262 (26) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
263 (27) Title 63N, Chapter 1, Part 5, Governor's Economic Development Coordinating
264 Council, is repealed July 1, 2024.
265 (28) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
266 (29) Section 63N-2-512, related to the Hotel Impact Mitigation Fund, is repealed July
267 1, 2028.
268 (30) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
269 January 1, 2021.
270 (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
271 calendar years beginning on or after January 1, 2021.
272 (c) Notwithstanding Subsection(30)(b), an entity may carry forward a tax credit in
273 accordance with Section 59-9-107 if:
274 (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
275 31, 2020; and
276 (ii) the qualified equity investment that is the basis of the tax credit is certified under
277 Section 63N-2-603 on or before December 31, 2023.
278 (31) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
279 July 1, 2023.
280 (32) Title 63N, Chapter 7, Part 1, Board of Tourism Development, is repealed July 1,
281 2025.
282 (33) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant Program,
283 is repealed January 1, 2028.
284 Section 7. Section 63J-1-602.1 is amended to read:
285 63J-1-602.1. List of nonlapsing appropriations from accounts and funds.
286 Appropriations made from the following accounts or funds are nonlapsing:
287 (1) The Utah Intracurricular Student Organization Support for Agricultural Education
288 and Leadership Restricted Account created in Section 4-42-102.
289 (2) The Native American Repatriation Restricted Account created in Section 9-9-407.
290 (3) The Martin Luther King, Jr. Civil Rights Support Restricted Account created in
291 Section 9-18-102.
292 (4) The National Professional Men's Soccer Team Support of Building Communities
293 Restricted Account created in Section 9-19-102.
294 (5) Funds collected for directing and administering the C-PACE district created in
295 Section 11-42a-106.
296 (6) Money received by the Utah Inland Port Authority, as provided in Section
297 11-58-105.
298 (7) The "Latino Community Support Restricted Account" created in Section 13-1-16.
299 (8) The Clean Air Support Restricted Account created in Section 19-1-109.
300 (9) The Division of Air Quality Oil, Gas, and Mining Restricted Account created in
301 Section 19-2a-106.
302 (10) The Division of Water Quality Oil, Gas, and Mining Restricted Account created in
303 Section 19-5-126.
304 (11) The "Support for State-Owned Shooting Ranges Restricted Account" created in
305 Section 23-14-13.5.
306 (12) Award money under the State Asset Forfeiture Grant Program, as provided under
307 Section 24-4-117.
308 (13) Funds collected from the program fund for local health department expenses
309 incurred in responding to a local health emergency under Section 26-1-38.
310 (14) The Children with Cancer Support Restricted Account created in Section
311 26-21a-304.
312 (15) State funds for matching federal funds in the Children's Health Insurance Program
313 as provided in Section 26-40-108.
314 (16) The Children with Heart Disease Support Restricted Account created in Section
315 26-58-102.
316 (17) The Nurse Home Visiting Restricted Account created in Section 26-63-601.
317 (18) The Technology Development Restricted Account created in Section 31A-3-104.
318 (19) The Criminal Background Check Restricted Account created in Section
319 31A-3-105.
320 (20) The Captive Insurance Restricted Account created in Section 31A-3-304, except
321 to the extent that Section 31A-3-304 makes the money received under that section free revenue.
322 (21) The Title Licensee Enforcement Restricted Account created in Section
323 31A-23a-415.
324 (22) The Health Insurance Actuarial Review Restricted Account created in Section
325 31A-30-115.
326 (23) The Insurance Fraud Investigation Restricted Account created in Section
327 31A-31-108.
328 (24) The Underage Drinking Prevention Media and Education Campaign Restricted
329 Account created in Section 32B-2-306.
330 (25) The Parental Coaching to Encourage Student Savings Program Restricted Account
331 created in Section 35A-3-903.
332 [
333 [
334 certain products or services, as provided in Section 35A-13-202.
335 [
336 40-6-11.
337 [
338 [
339 40-6-23.
340 [
341 41-1a-121 to the Motor Vehicle Division.
342 [
343 Account created by Section 41-3-110 to the State Tax Commission.
344 [
345 in Section 53-1-120.
346 [
347 Emergency Management, as provided in Section 53-2a-603.
348 [
349 Public Safety, as provided in Section 53-3-106.
350 [
351 Section 53-8-303.
352 [
353 [
354 [
355 53B-2a-118.
356 [
357 53B-22-202.
358 [
359 School Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
360 [
361 54-5-1.5, subject to Subsection 54-5-1.5(4)(d).
362 [
363 access to an electronic reference library, as provided in Section 58-3a-105.
364 [
365 Licensing for violation of unlawful or unprofessional conduct that are used for education and
366 enforcement purposes, as provided in Section 58-17b-505.
367 [
368 access to an electronic reference library, as provided in Section 58-22-104.
369 [
370 access to an electronic reference library, as provided in Section 58-55-106.
371 [
372 access to an electronic reference library, as provided in Section 58-56-3.5.
373 [
374 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
375 provided in Section 58-63-103.
376 [
377 [
378 [
379 background check for a mortgage loan license, as provided in Section 61-2c-202.
380 [
381 background check for principal broker, associate broker, and sales agent licenses, as provided
382 in Section 61-2f-204.
383 [
384 Section 62A-1-111.
385 [
386 Children Issues Restricted Account created in Section 62A-1-202.
387 [
388 provided in Section 62A-4a-110.
389 [
390 62A-4a-608.
391 [
392 provided in Section 63G-3-402.
393 [
394 [
395 provided in Section 63H-1-504.
396 [
397 63H-7a-303.
398 [
399 63H-7a-304.
400 [
401 63H-7a-403.
402 [
403 63N-6-204.
404 [
405 [
406 Commission, as provided under Section 63N-10-301.
407 [
408 inmates, as provided in Subsection 64-13e-104(2).
409 [
410 Fire, and State Lands, as provided in Section 65A-8-103.
411 [
412 created in Section 71-14-102.
413 [
414 72-16-204.
415 [
416 fines or bonds, as provided in Section 73-3-25.
417 [
418 Section 73-23-2.
419 [
420 Subsection 78A-6-203(1)(c).
421 [
422 [
423 78B-6-141, 78B-6-144, and 78B-6-144.5.
424 [
425 Part 4, Utah Indigent Defense Commission.
426 [
427 created in Section 79-3-403.
428 [
429 State Park, and Green River State Park, as provided under Section 79-4-403.
430 [
431 disposal of buffalo, as provided under Section 79-4-1001.
432 [
433 Restricted Account created in Section 32B-2-308.
434 Section 8. Section 67-4a-801 is amended to read:
435 67-4a-801. Deposit of funds by administrator.
436 (1) (a) There is created a private-purpose trust fund entitled the "Unclaimed Property
437 Trust Fund."
438 (b) Except as otherwise provided in this section, the administrator shall deposit all
439 funds received under this chapter, including proceeds from the sale of property under Part 7,
440 Sale of Property by Administrator, in the fund.
441 (c) The fund shall earn interest.
442 (2) The administrator shall:
443 (a) pay any legitimate claims or deductions authorized by this chapter from the fund;
444 (b) before the end of the fiscal year, estimate the amount of money from the fund that
445 will ultimately be needed to be paid to claimants; and
446 (c) at the end of the fiscal year, transfer any amount in excess of that amount to the
447 Uniform School Fund, except that:
448 (i) the lessor of $1,000,000 or five percent of the excess amount shall be transferred to
449 the Parental Coaching to Encourage Student Savings Program Restricted Account created in
450 Section 35A-3-903; and
451 (ii) unclaimed restitution for crime victims shall be transferred to the Crime Victim
452 Reparations Fund.
453 (3) Before making any transfer [
454 the administrator may deduct from the fund:
455 (a) amounts appropriated by the Legislature for administration of this chapter;
456 (b) any costs incurred in connection with the sale of abandoned property;
457 (c) costs of mailing and publication in connection with any abandoned property;
458 (d) reasonable service charges; and
459 (e) costs incurred in examining records of holders of property and in collecting the
460 property from those holders.