Bill Text: TX HB150 | 2021 | 87th Legislature 2nd Special Session | Introduced
Bill Title: Relating to the establishment of the Family Educational Relief Program and an insurance premium tax credit for contributions made for purposes of that program.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2021-08-10 - Filed [HB150 Detail]
Download: Texas-2021-HB150-Introduced.html
| By: Middleton | H.B. No. 150 | |
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| relating to the establishment of the Family Educational Relief | ||
| Program and an insurance premium tax credit for contributions made | ||
| for purposes of that program. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 29, Education Code, is amended by adding | ||
| Subchapter J to read as follows: | ||
| SUBCHAPTER J. FAMILY EDUCATIONAL RELIEF PROGRAM | ||
| Sec. 29.351. DEFINITIONS. In this subchapter: | ||
| (1) "Account" means a family educational relief | ||
| account established under the program. | ||
| (2) "Certified educational assistance organization" | ||
| means an educational assistance organization certified under | ||
| Section 29.355 to administer the program. | ||
| (3) "Child with a disability" means a child who is | ||
| eligible to participate in a school district's special education | ||
| program under Section 29.003. | ||
| (4) "Institution of higher education" and "private or | ||
| independent institution of higher education" have the meanings | ||
| assigned by Section 61.003. | ||
| (5) "Parent" means a resident of this state who is a | ||
| natural or adoptive parent, managing or possessory conservator, | ||
| legal guardian, custodian, or other person with legal authority to | ||
| act on behalf of a child. | ||
| (6) "Program" means the Family Educational Relief | ||
| Program established under this subchapter. | ||
| (7) "Program participant" means a child and a parent | ||
| of a child enrolled in the program. | ||
| Sec. 29.352. PURPOSE. The purpose of the Family | ||
| Educational Relief Program is to provide children from low-income | ||
| households with additional educational options in order to achieve | ||
| a general diffusion of knowledge. | ||
| Sec. 29.353. ESTABLISHMENT OF PROGRAM. The comptroller | ||
| shall establish the Family Educational Relief Program to provide | ||
| funding for approved education-related expenses of eligible | ||
| children admitted into the program. | ||
| Sec. 29.354. FAMILY EDUCATIONAL RELIEF PROGRAM FUND. (a) | ||
| The Family Educational Relief Program fund is an account in the | ||
| general revenue fund to be administered by the comptroller. | ||
| (b) The fund is composed of: | ||
| (1) general revenue transferred to the fund; | ||
| (2) money appropriated to the fund; | ||
| (3) gifts, grants, and donations received under | ||
| Section 29.370; | ||
| (4) contributions to the fund for which an entity | ||
| receives a credit against the entity's state premium tax liability | ||
| under Chapter 230, Insurance Code; and | ||
| (5) any other money available for purposes of the | ||
| program. | ||
| (c) Money in the fund may be appropriated only to the | ||
| comptroller for purposes of making payments to program participants | ||
| and administering the program under this subchapter. | ||
| Sec. 29.355. SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE | ||
| ORGANIZATIONS. (a) An organization may apply to the comptroller | ||
| for certification as a certified educational assistance | ||
| organization during an application period established by the | ||
| comptroller. | ||
| (b) To be eligible for certification, the organization | ||
| must: | ||
| (1) have the ability to perform the duties and | ||
| functions required of a certified educational assistance | ||
| organization under this subchapter as provided by the | ||
| organization's charter; | ||
| (2) be exempt from federal tax under Section 501(a) of | ||
| the Internal Revenue Code of 1986 by being listed as an exempt | ||
| organization in Section 501(c)(3) of that code; | ||
| (3) be in good standing with the state; and | ||
| (4) be able to administer the program, including the | ||
| ability to: | ||
| (A) accept, process, and track applications for | ||
| the program; and | ||
| (B) verify that program funding is used only for | ||
| approved education-related expenses. | ||
| (c) The comptroller shall certify at least one but no more | ||
| than three educational assistance organizations to assist in | ||
| administering the program, including by verifying: | ||
| (1) a child's eligibility for the program; and | ||
| (2) the use of funds in a program participant's account | ||
| only for purposes approved under Section 29.360. | ||
| Sec. 29.356. ELIGIBLE CHILD. (a) A child is eligible to | ||
| participate in the program if the child is: | ||
| (1) eligible to attend a public school under Section | ||
| 25.001; and | ||
| (2) a member of a household with a total annual income | ||
| that is at or below the income guidelines necessary to qualify for | ||
| the national free or reduced-price lunch program established under | ||
| 42 U.S.C. Section 1751 et seq. | ||
| (b) A sibling of a child who is eligible to participate in | ||
| the program under Subsection (a) is eligible to participate in the | ||
| program if the sibling is eligible to attend a public school under | ||
| Section 25.001. | ||
| (c) A child who establishes eligibility under this section | ||
| may participate in the program until the earliest of the following | ||
| dates: | ||
| (1) the date on which the child graduates from high | ||
| school; | ||
| (2) the date on which the child is no longer eligible | ||
| to attend a public school under Section 25.001; | ||
| (3) the date on which the child enrolls in a public | ||
| school, including an open-enrollment charter school; or | ||
| (4) the date on which the child is declared ineligible | ||
| for the program by the comptroller under this subchapter. | ||
| Sec. 29.357. APPLICATION TO PROGRAM. (a) A parent of an | ||
| eligible child may apply to a certified educational assistance | ||
| organization to enroll the child in the program for the following | ||
| school year. The parent must provide any information requested by | ||
| the organization for purposes of verifying the child's eligibility | ||
| for the program. | ||
| (b) Each certified educational assistance organization | ||
| shall create an application form for the program and make the | ||
| application form readily available to interested parents through | ||
| various sources, including the organization's Internet website. | ||
| The organization shall ensure that the application form is capable | ||
| of being submitted to the organization electronically. | ||
| (c) Each certified educational assistance organization | ||
| shall post on the organization's Internet website and provide to | ||
| each parent who submits an application form to the organization a | ||
| publication that describes the operation of the program, including: | ||
| (1) expenses allowed under the program under Section | ||
| 29.360; | ||
| (2) the organization's expense reporting | ||
| requirements; and | ||
| (3) a description of the responsibilities of program | ||
| participants and the duties of the organization under this | ||
| subchapter. | ||
| (d) Subject to the availability of funding, a certified | ||
| educational assistance organization shall admit into the program | ||
| each child for whom the organization received an application under | ||
| this section if the organization verifies that the child is | ||
| eligible to participate in the program. If available funding is | ||
| insufficient to admit each eligible child into the program, the | ||
| organization shall prioritize admitting children in the following | ||
| order: | ||
| (1) children who participated in the program in the | ||
| preceding school year; | ||
| (2) siblings of children who participated in the | ||
| program in the preceding school year; and | ||
| (3) children who demonstrate the greatest financial | ||
| need. | ||
| Sec. 29.358. PARTICIPATION IN PROGRAM. (a) To receive | ||
| funding under the program, a parent of an eligible child must agree | ||
| to: | ||
| (1) spend money received through the program only for | ||
| expenses allowed under Section 29.360; and | ||
| (2) notify the parent's certified educational | ||
| assistance organization not later than 30 days after the date on | ||
| which the child: | ||
| (A) enrolls in a public school, including an | ||
| open-enrollment charter school; | ||
| (B) graduates from high school; or | ||
| (C) is no longer eligible to enroll in a public | ||
| school under Section 25.001. | ||
| (b) The parent of a child participating in the program is | ||
| the trustee of the child's account. | ||
| (c) Each certified educational assistance organization | ||
| shall provide annually to each program participant for whom the | ||
| organization is responsible the publication provided under Section | ||
| 29.357(c). The publication may be provided electronically. | ||
| Sec. 29.359. APPROVED PROVIDERS. (a) The comptroller | ||
| shall by rule establish a process for the preapproval of education | ||
| service providers and vendors of educational products for | ||
| participation in the program. The comptroller shall post on the | ||
| comptroller's Internet website and provide to each certified | ||
| educational assistance organization the list of preapproved | ||
| providers and vendors. | ||
| (b) The comptroller shall approve an education service | ||
| provider or vendor of educational products for participation in the | ||
| program if the provider or vendor: | ||
| (1) for a private school, executes a notarized | ||
| affidavit, with supporting documents, concerning the school's | ||
| qualification to serve program participants, including evidence | ||
| of: | ||
| (A) accreditation by an organization recognized | ||
| by the Texas Private School Accreditation Commission; | ||
| (B) annual administration of a nationally | ||
| norm-referenced assessment instrument or the appropriate | ||
| assessment instrument required under Section 39.023; | ||
| (C) valid certificate of occupancy; | ||
| (D) policy statements regarding: | ||
| (i) admissions; | ||
| (ii) curriculum; | ||
| (iii) safety; | ||
| (iv) food service inspection; | ||
| (v) student to teacher ratios; and | ||
| (vi) assessments; and | ||
| (E) the school's agreement that program | ||
| participants are eligible to apply for scholarships offered by the | ||
| school to the same extent as other children; | ||
| (2) for a private tutor, therapist, or teaching | ||
| service: | ||
| (A) executes a notarized affidavit, with | ||
| supporting documents, concerning the tutor's, therapist's, or | ||
| service's qualification to serve program participants, including | ||
| evidence that the tutor or therapist or each employee of the service | ||
| who intends to provide services to a program participant: | ||
| (i) is certified under Subchapter B, | ||
| Chapter 21; | ||
| (ii) holds a relevant license or | ||
| accreditation issued by a state, regional, or national licensing or | ||
| accreditation organization; or | ||
| (iii) is employed in a teaching or tutoring | ||
| capacity at an institution of higher education or private or | ||
| independent institution of higher education; and | ||
| (B) the tutor or therapist or each employee of | ||
| the teaching service who intends to provide educational services to | ||
| a program participant either: | ||
| (i) completes a national criminal history | ||
| record information review; or | ||
| (ii) provides to the comptroller | ||
| documentation indicating that the tutor, therapist, or employee, as | ||
| applicable, has completed a national criminal history record | ||
| information review within a period established by comptroller rule; | ||
| (3) for an online educational course or program | ||
| provider, executes a notarized affidavit, with supporting | ||
| documents, concerning the provider's qualification to serve | ||
| program participants, including evidence of accreditation by an | ||
| organization recognized by the Texas Private School Accreditation | ||
| Commission; or | ||
| (4) for any provider or vendor not described by | ||
| Subdivision (1), (2), or (3), presents any necessary supporting | ||
| documents concerning the provider's or vendor's qualification to | ||
| serve program participants. | ||
| (c) The comptroller shall review the national criminal | ||
| history record information or documentation for each private tutor, | ||
| therapist, or teaching service who submits an application. The | ||
| tutor, therapist, or service must provide the comptroller with any | ||
| information requested by the comptroller to enable the comptroller | ||
| to complete the review. | ||
| (d) Each certified educational assistance organization | ||
| shall post on the organization's Internet website the list of | ||
| preapproved education service providers and vendors of educational | ||
| products provided under Subsection (a). | ||
| Sec. 29.360. APPROVED EDUCATION-RELATED EXPENSES. (a) | ||
| Subject to Subsection (b), money received under the program may be | ||
| used only for the following expenses incurred by a program | ||
| participant at a preapproved education service provider or vendor: | ||
| (1) tuition and fees: | ||
| (A) at a private school; | ||
| (B) at an institution of higher education or a | ||
| private or independent institution of higher education; or | ||
| (C) for an online educational course or program; | ||
| (2) the purchase of textbooks or other instructional | ||
| materials or uniforms required by a school, institution, course, or | ||
| program described by Subdivision (1) in which the child is | ||
| enrolled; | ||
| (3) fees for services provided by a private tutor or | ||
| teaching service; and | ||
| (4) fees for educational therapies or services | ||
| provided by a practitioner or provider, only for fees that are not | ||
| covered by any federal, state, or local government benefits such as | ||
| Medicaid or the Children's Health Insurance Program (CHIP) or by | ||
| any private insurance that the child is enrolled in at the time of | ||
| receiving the therapies or services. | ||
| (b) Money received under the program may not be used to pay | ||
| any person who is: | ||
| (1) related to the program participant within the | ||
| third degree of consanguinity or affinity, as determined under | ||
| Chapter 573, Government Code; or | ||
| (2) a member of the program participant's household. | ||
| (c) A finding that a program participant used money | ||
| distributed under the program to pay for an expense not allowed | ||
| under Subsection (a) does not affect the validity of any payment | ||
| made by the participant for an expense that is allowed under that | ||
| subsection. | ||
| Sec. 29.361. AMOUNT OF PAYMENT; FINANCING. (a) A parent of | ||
| an eligible child shall receive each year that the child | ||
| participates in the program a payment from the state to the child's | ||
| account in an amount that is equal to 90 percent of the state | ||
| average maintenance and operations expenditures per student in | ||
| average daily attendance for the preceding state fiscal year. | ||
| (b) Any money remaining in a child's account at the end of a | ||
| fiscal year is carried forward to the next fiscal year unless | ||
| another provision of this subchapter mandates the closure of the | ||
| account. | ||
| (c) The parent of a child participating in the program may | ||
| make payments for the expenses of educational programs, services, | ||
| and products not covered by money in the child's account. | ||
| (d) A payment under Subsection (a) may not be financed using | ||
| federal money or money appropriated from the permanent school fund | ||
| or the available school fund. | ||
| (e) Not later than November 1 of each even-numbered year, | ||
| the comptroller shall submit to the legislature an estimate of the | ||
| total amount of funding required for the program for the following | ||
| state fiscal biennium. | ||
| Sec. 29.362. ADMINISTRATION OF ACCOUNTS. (a) The | ||
| comptroller shall make quarterly payments to each program | ||
| participant's account in equal amounts on or before the first day of | ||
| August, November, February, and May. | ||
| (b) The comptroller may deduct an amount from each quarterly | ||
| payment to a program participant's account to cover the | ||
| comptroller's cost of administering the program. The amount | ||
| deducted may not exceed three percent of the payment. | ||
| (c) Each quarter, the comptroller shall disburse to each | ||
| certified educational assistance organization an amount from the | ||
| total amount of money appropriated for purposes of this subchapter | ||
| to cover the organization's cost of administering the program. The | ||
| total amount disbursed to certified educational assistance | ||
| organizations under this subsection for a fiscal year may not | ||
| exceed five percent of the amount appropriated for purposes of this | ||
| subchapter for that fiscal year. | ||
| (d) Before each payment is made under Subsection (a), each | ||
| certified educational assistance organization shall: | ||
| (1) compare the list of program participants for whom | ||
| the organization is responsible with public school enrollment lists | ||
| maintained by the agency; and | ||
| (2) notify the comptroller if the organization | ||
| determines that a program participant is enrolled in a public | ||
| school, including an open-enrollment charter school. | ||
| (e) On the date on which a child who participated in the | ||
| program is no longer eligible to participate in the program under | ||
| Section 29.356(c), the child's account is closed and any remaining | ||
| money is returned to the state for deposit in the Family Educational | ||
| Relief Program fund. | ||
| Sec. 29.363. RANDOM AUDITING. (a) The comptroller may | ||
| contract with a private entity to randomly audit accounts and the | ||
| certified educational assistance organizations as necessary to | ||
| ensure compliance with applicable law and the requirements of the | ||
| program. | ||
| (b) In conducting an audit, the comptroller or private | ||
| entity may require that a program participant or certified | ||
| educational assistance organization provide additional information | ||
| and documentation regarding any payment made under the program. | ||
| (c) The private entity shall report to the comptroller any | ||
| violation of this subchapter or other relevant law found by the | ||
| entity during an audit conducted under this section. | ||
| Sec. 29.364. SUSPENSION OF ACCOUNT. (a) The comptroller | ||
| shall suspend the account of a program participant who fails to | ||
| comply with applicable law or a requirement of the program. | ||
| (b) On suspension of an account under Subsection (a), the | ||
| comptroller shall notify the program participant in writing that | ||
| the account has been suspended and that no additional payments may | ||
| be made from the account. The notification must specify the grounds | ||
| for the suspension and state that the participant has 10 business | ||
| days to respond and take any corrective action required by the | ||
| comptroller. | ||
| (c) On the expiration of the 10-day period under Subsection | ||
| (b), the comptroller shall: | ||
| (1) order permanent closure of the suspended account | ||
| and declare the program participant ineligible for the program; | ||
| (2) order temporary reinstatement of the account, | ||
| conditioned on the performance of a specified action by the | ||
| participant; or | ||
| (3) order full reinstatement of the account. | ||
| (d) The comptroller may recover money distributed under the | ||
| program that was used for expenses not allowed under Section 29.360 | ||
| from the program participant or the entity that received the money | ||
| if the participant's account is suspended or closed under this | ||
| section. | ||
| Sec. 29.365. TUITION AND FEES; REFUND PROHIBITED. (a) An | ||
| education service provider may not charge a child participating in | ||
| the program an amount greater than the standard amount charged for | ||
| that service by the provider. | ||
| (b) An education service provider or a vendor of educational | ||
| products receiving money distributed under the program may not in | ||
| any manner rebate, refund, or credit to or share with a program | ||
| participant, or any person on behalf of a participant, any program | ||
| money paid or owed by the participant to the provider or vendor. | ||
| Sec. 29.366. REFERRAL TO ATTORNEY GENERAL. (a) If the | ||
| comptroller or a certified educational assistance organization | ||
| obtains evidence of fraudulent use of an account, the comptroller | ||
| or organization may refer the case to the attorney general for | ||
| investigation. | ||
| (b) With the consent of the appropriate local county or | ||
| district attorney, the attorney general has concurrent | ||
| jurisdiction with the consenting local prosecutor to prosecute an | ||
| offense referred to the attorney general under Subsection (a). | ||
| Sec. 29.367. SPECIAL EDUCATION NOTICE. (a) Each certified | ||
| educational assistance organization shall post on the | ||
| organization's Internet website and provide to each parent who | ||
| submits an application for the program on behalf of a child with a | ||
| disability a notice that: | ||
| (1) states that a private school is not subject to laws | ||
| regarding the provision of educational services in the same manner | ||
| as a public school, and a child with a disability attending a | ||
| private school may not receive the services a child with a | ||
| disability attending a public school is entitled to receive under | ||
| federal and state law; and | ||
| (2) provides information regarding rights to which a | ||
| child with a disability is entitled under federal and state law if | ||
| the child attends a public school, including: | ||
| (A) rights provided under the Individuals with | ||
| Disabilities Education Act (20 U.S.C. Section 1400 et seq.), | ||
| including: | ||
| (i) an individualized education program; | ||
| (ii) educational services provided in the | ||
| least restrictive environment; | ||
| (iii) instruction from certified teachers; | ||
| (iv) due process hearings to ensure proper | ||
| and full implementation of an individualized education program; | ||
| (v) transition and planning services; and | ||
| (vi) supplementary aids and services; | ||
| (B) rights provided under Subchapter A; and | ||
| (C) other rights provided under federal or state | ||
| law. | ||
| (b) A private school in which a child with a disability who | ||
| is participating in the program enrolls shall provide to the | ||
| child's parent a copy of the notice required under Subsection (a). | ||
| Sec. 29.368. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR | ||
| AUTONOMY. (a) An education service provider or vendor of | ||
| educational products that receives money distributed under the | ||
| program is not an agent of the state or federal government. | ||
| (b) The program does not expand the regulatory authority of | ||
| the state or any school district to impose any additional | ||
| regulation on an education service provider or vendor of | ||
| educational products except those reasonably necessary to enforce | ||
| the program as provided by this subchapter. | ||
| (c) An education service provider may not be required to | ||
| modify the provider's creed, practices, admissions policies, | ||
| curriculum, performance standards, or assessments, as applicable, | ||
| to receive money distributed under the program. | ||
| (d) In any proceeding challenging a rule adopted by a state | ||
| agency or officer under this subchapter, the agency or officer has | ||
| the burden of proof to establish that the rule: | ||
| (1) is necessary to implement or enforce the program | ||
| as provided by this subchapter; and | ||
| (2) does not impose an undue burden on a program | ||
| participant or an education service provider or vendor of | ||
| educational products that receives or seeks to receive money | ||
| distributed under the program. | ||
| Sec. 29.369. STUDENT RECORDS AND INFORMATION. (a) On | ||
| request by the parent of a child participating or seeking to | ||
| participate in the program, the school district or open-enrollment | ||
| charter school that the child would otherwise attend shall provide | ||
| a copy of the child's school records possessed by the district or | ||
| school, if any, to the child's parent or, if applicable, the private | ||
| school the child attends. | ||
| (b) The agency shall provide to each certified educational | ||
| assistance organization any information available to the agency | ||
| requested by the organization regarding a child who participates or | ||
| seeks to participate in the program. The organization may not | ||
| retain information provided under this subsection beyond the period | ||
| necessary to determine a child's eligibility to participate in the | ||
| program. | ||
| Sec. 29.370. GIFTS, GRANTS, AND DONATIONS. The comptroller | ||
| may solicit and accept gifts, grants, and donations from any public | ||
| or private source for any expenses related to the administration of | ||
| the program, including the initial implementation of the program. | ||
| Sec. 29.371. RULES; PROCEDURES. (a) The comptroller shall | ||
| adopt rules and procedures only as necessary to implement, | ||
| administer, and enforce this subchapter. | ||
| (b) A rule adopted under Subsection (a) is binding on an | ||
| organization that applies for certification as an educational | ||
| assistance organization and a state or local governmental entity, | ||
| including a political subdivision, as necessary to implement, | ||
| administer, and enforce this subchapter. | ||
| Sec. 29.372. PARENTAL AND STUDENT RIGHT TO INTERVENE IN | ||
| CIVIL ACTION. (a) A program participant may intervene in any civil | ||
| action challenging the constitutionality of the program or the | ||
| insurance premium tax credit under Chapter 230, Insurance Code. | ||
| (b) A court in which a civil action described by Subsection | ||
| (a) is filed may require that all program participants wishing to | ||
| intervene in the action file a joint brief. A program participant | ||
| may not be required to join a brief filed on behalf of the state or a | ||
| state agency. | ||
| SECTION 2. Section 411.109, Government Code, is amended by | ||
| adding Subsection (c) to read as follows: | ||
| (c) The comptroller is entitled to obtain criminal history | ||
| record information maintained by the department about a person who | ||
| is a private tutor, a therapist, or an employee of a teaching | ||
| service who intends to provide educational services to a child | ||
| participating in the program established under Subchapter J, | ||
| Chapter 29, Education Code, and is seeking approval to receive | ||
| money distributed under that program. | ||
| SECTION 3. Subtitle B, Title 3, Insurance Code, is amended | ||
| by adding Chapter 230 to read as follows: | ||
| CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO | ||
| FAMILY EDUCATIONAL RELIEF PROGRAM | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 230.001. DEFINITIONS. In this chapter: | ||
| (1) "Fund" means the Family Educational Relief Program | ||
| fund under Section 29.354, Education Code. | ||
| (2) "State premium tax liability" means any liability | ||
| incurred by an entity under Chapters 221 through 226. | ||
| SUBCHAPTER B. CREDIT | ||
| Sec. 230.051. CREDIT. An entity may apply for a credit | ||
| against the entity's state premium tax liability in the amount and | ||
| under the conditions provided by this chapter. The comptroller | ||
| shall award credits as provided by Section 230.053. | ||
| Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a) | ||
| Subject to Subsections (b) and (c), the amount of an entity's credit | ||
| is equal to the lesser of the amount contributed to the fund during | ||
| the period covered by the tax report or 50 percent of the entity's | ||
| state premium tax liability for the report. | ||
| (b) For the 2022 state fiscal year, the total amount of | ||
| credits that may be awarded under this chapter may not exceed $200 | ||
| million. For each subsequent state fiscal year, the total amount of | ||
| credits that may be awarded is: | ||
| (1) the same total amount of credits available under | ||
| this subsection for the previous state fiscal year, if Subdivision | ||
| (2) does not apply; or | ||
| (2) 125 percent of the total amount of credits | ||
| available under this subsection for the previous state fiscal year, | ||
| if the total amount of credits awarded in the previous state fiscal | ||
| year was at least 90 percent of the total amount of credits | ||
| available under this subsection for that fiscal year. | ||
| (c) The comptroller by rule shall prescribe procedures by | ||
| which the comptroller may allocate credits under this chapter. The | ||
| procedures must provide that credits are allocated first to | ||
| entities that received preliminary approval for a credit under | ||
| Section 230.0525 and that apply under Section 230.053. The | ||
| procedures must provide that any remaining credits are allocated to | ||
| entities that apply under Section 230.053 on a first-come, | ||
| first-served basis, based on the date the contribution was | ||
| initially made. | ||
| (d) The comptroller may require an entity to notify the | ||
| comptroller of the amount the entity intends or expects to apply for | ||
| under this chapter before the beginning of a state fiscal year or at | ||
| any other time required by the comptroller. | ||
| Sec. 230.0525. PRELIMINARY APPROVAL FOR CREDIT. (a) | ||
| Before making a contribution to the fund, an entity may apply to the | ||
| comptroller for preliminary approval of a credit under this chapter | ||
| for the contribution. | ||
| (b) An entity must apply for preliminary approval on a form | ||
| provided by the comptroller that includes the amount the entity | ||
| expects to contribute and any other information the comptroller | ||
| requires. | ||
| (c) The comptroller shall grant preliminary approval for | ||
| credits under this chapter on a first-come, first-served basis, | ||
| based on the date the comptroller receives the application for | ||
| preliminary approval. | ||
| (d) The comptroller shall grant preliminary approval for a | ||
| credit under this chapter for a state fiscal year if the sum of the | ||
| amount of the credit and the total amount of all other credits | ||
| preliminarily approved under this chapter does not exceed the | ||
| amount provided by Section 230.052(b). | ||
| (e) Final award of a credit preliminarily approved under | ||
| this section remains subject to the limitations under Section | ||
| 230.052(a) and all other requirements of this chapter. | ||
| Sec. 230.053. APPLICATION FOR CREDIT. (a) An entity must | ||
| apply for a credit under this chapter on or with the tax report | ||
| covering the period in which the contribution was made. | ||
| (b) The comptroller shall adopt a form for the application | ||
| for the credit. An entity must use this form in applying for the | ||
| credit. | ||
| (c) Subject to Section 230.052(c), the comptroller may | ||
| award a credit to an entity that applies for the credit under | ||
| Subsection (a) if the entity is eligible for the credit and the | ||
| credit is available under Section 230.052(b). The comptroller has | ||
| broad discretion in determining whether to grant or deny an | ||
| application for a credit. | ||
| (d) The comptroller shall notify an entity in writing of the | ||
| comptroller's decision to grant or deny the application under | ||
| Subsection (a). If the comptroller denies an entity's application, | ||
| the comptroller shall include in the notice of denial the reasons | ||
| for the comptroller's decision. | ||
| (e) If the comptroller denies an entity's application under | ||
| Subsection (a), the entity may request in writing a reconsideration | ||
| of the application not later than the 10th day after the date the | ||
| notice under Subsection (d) is received. If the entity does not | ||
| request a reconsideration of the application on or before that | ||
| date, the comptroller's decision is final. | ||
| (f) An entity that requests a reconsideration under | ||
| Subsection (e) may submit to the comptroller, not later than the | ||
| 30th day after the date the request for reconsideration is | ||
| submitted, additional information and documents to support the | ||
| entity's request for reconsideration. | ||
| (g) The comptroller's reconsideration of an application | ||
| under this section is not a contested case under Chapter 2001, | ||
| Government Code. The comptroller's decision on a request for | ||
| reconsideration of an application is final and is not appealable. | ||
| (h) This section does not create a cause of action to | ||
| contest a decision of the comptroller to deny an application for a | ||
| credit under this chapter. | ||
| Sec. 230.054. RULES; PROCEDURES. The comptroller shall | ||
| adopt rules and procedures to implement, administer, and enforce | ||
| this chapter. | ||
| Sec. 230.055. ASSIGNMENT PROHIBITED; EXCEPTION. An entity | ||
| may not convey, assign, or transfer the credit allowed under this | ||
| chapter to another entity unless all of the assets of the entity are | ||
| conveyed, assigned, or transferred in the same transaction. | ||
| Sec. 230.056. NOTICE OF AVAILABILITY OF CREDIT. The | ||
| comptroller shall provide notice of the availability of the credit | ||
| under this chapter on the comptroller's Internet website, in the | ||
| instructions for insurance premium tax report forms, and in any | ||
| notice sent to an entity concerning the requirement to file an | ||
| insurance premium tax report. | ||
| SECTION 4. Subchapter J, Chapter 29, Education Code, as | ||
| added by this Act, applies beginning with the 2022-2023 school | ||
| year. | ||
| SECTION 5. An entity may apply for a credit under Chapter | ||
| 230, Insurance Code, as added by this Act, only for a contribution | ||
| made on or after the effective date of this Act. | ||
| SECTION 6. Not later than February 15, 2022, the | ||
| comptroller of public accounts shall adopt rules as provided by | ||
| Section 230.054, Insurance Code, as added by this Act. | ||
| SECTION 7. Chapter 230, Insurance Code, as added by this | ||
| Act, applies only to a tax report originally due on or after the | ||
| effective date of this Act. | ||
| SECTION 8. (a) The constitutionality and other validity | ||
| under the state or federal constitution of all or any part of | ||
| Subchapter J, Chapter 29, Education Code, as added by this Act, or | ||
| Chapter 230, Insurance Code, as added by this Act, may be determined | ||
| in an action for declaratory judgment in a district court in Travis | ||
| County under Chapter 37, Civil Practice and Remedies Code, except | ||
| that this section does not authorize an award of attorney's fees | ||
| against this state and Section 37.009, Civil Practice and Remedies | ||
| Code, does not apply to an action filed under this section. This | ||
| section does not authorize a taxpayer suit to contest the denial of | ||
| a tax credit by the comptroller of public accounts. | ||
| (b) An appeal of a declaratory judgment or order, however | ||
| characterized, of a district court, including an appeal of the | ||
| judgment of an appellate court, holding or otherwise determining | ||
| that all or any part of Subchapter J, Chapter 29, Education Code, as | ||
| added by this Act, or Chapter 230, Insurance Code, as added by this | ||
| Act, is constitutional or unconstitutional, or otherwise valid or | ||
| invalid, under the state or federal constitution is an accelerated | ||
| appeal. | ||
| (c) If the judgment or order is interlocutory, an | ||
| interlocutory appeal may be taken from the judgment or order and is | ||
| an accelerated appeal. | ||
| (d) A district court in Travis County may grant or deny a | ||
| temporary or otherwise interlocutory injunction or a permanent | ||
| injunction on the grounds of the constitutionality or | ||
| unconstitutionality, or other validity or invalidity, under the | ||
| state or federal constitution of all or any part of Subchapter J, | ||
| Chapter 29, Education Code, as added by this Act, or Chapter 230, | ||
| Insurance Code, as added by this Act. | ||
| (e) There is a direct appeal to the Texas Supreme Court from | ||
| an order, however characterized, of a trial court granting or | ||
| denying a temporary or otherwise interlocutory injunction or a | ||
| permanent injunction on the grounds of the constitutionality or | ||
| unconstitutionality, or other validity or invalidity, under the | ||
| state or federal constitution of all or any part of Subchapter J, | ||
| Chapter 29, Education Code, as added by this Act, or Chapter 230, | ||
| Insurance Code, as added by this Act. | ||
| (f) The direct appeal is an accelerated appeal. | ||
| (g) This section exercises the authority granted by Section | ||
| 3-b, Article V, Texas Constitution. | ||
| (h) The filing of a direct appeal under this section will | ||
| automatically stay any temporary or otherwise interlocutory | ||
| injunction or permanent injunction granted in accordance with this | ||
| section pending final determination by the Texas Supreme Court, | ||
| unless the supreme court makes specific findings that the applicant | ||
| seeking such injunctive relief has pleaded and proved that: | ||
| (1) the applicant has a probable right to the relief it | ||
| seeks on final hearing; and | ||
| (2) the applicant will suffer a probable injury that | ||
| is imminent and irreparable, and that the applicant has no other | ||
| adequate legal remedy. | ||
| (i) An appeal under this section, including an | ||
| interlocutory, accelerated, or direct appeal, is governed, as | ||
| applicable, by the Texas Rules of Appellate Procedure, including | ||
| Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1), | ||
| 38.6(a) and (b), 40.1(b), and 49.4. | ||
| SECTION 9. 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 on the 91st day after the last day of the | ||
| legislative session.. | ||
