Bill Text: TX HB2114 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the establishment of an empowerment scholarship account program.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-09 - Referred to Public Education [HB2114 Detail]
Download: Texas-2023-HB2114-Introduced.html
88R6150 JES-D | ||
By: Toth | H.B. No. 2114 |
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relating to the establishment of an empowerment scholarship account | ||
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. EMPOWERMENT SCHOLARSHIP ACCOUNT PROGRAM | ||
Sec. 29.351. DEFINITIONS. In this subchapter: | ||
(1) "Account" means an empowerment scholarship | ||
account established under the program. | ||
(2) "Child with a disability" means a child who is: | ||
(A) eligible to participate in a school | ||
district's special education program under Section 29.003; or | ||
(B) covered by Section 504, Rehabilitation Act of | ||
1973 (29 U.S.C. Section 794). | ||
(3) "Curriculum" means a complete course of study for | ||
a particular content area or grade level. | ||
(4) "Financial institution" means a bank, credit | ||
union, savings bank, or savings and loan association organized | ||
under the laws of this state, the laws of another state, or federal | ||
law that has its main office or a branch office in this state. The | ||
term does not include any institution the deposits of which are not | ||
insured by the Federal Deposit Insurance Corporation or the | ||
National Credit Union Administration. | ||
(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) "Postsecondary educational institution" means: | ||
(A) an institution of higher education or a | ||
private or independent institution of higher education as defined | ||
by Section 61.003; or | ||
(B) a career school or college as defined by | ||
Section 132.001. | ||
(7) "Program" means the empowerment scholarship | ||
account program established under this subchapter. | ||
(8) "Program participant" means a child and a parent | ||
of a child enrolled in the program. | ||
Sec. 29.352. PURPOSES. The purposes of the empowerment | ||
scholarship account program are to: | ||
(1) improve public schools and overall academic | ||
performance; | ||
(2) promote efficiency; | ||
(3) promote and preserve the liberties and rights of | ||
the people; and | ||
(4) increase parental options. | ||
Sec. 29.353. ESTABLISHMENT OF PROGRAM. (a) The | ||
comptroller shall establish and administer an empowerment | ||
scholarship account program to provide funding for certain | ||
education-related expenses of eligible children. | ||
(b) The comptroller, with cooperation from the agency, | ||
shall ensure that information about the program is readily | ||
available to the public through various sources, including the | ||
agency's Internet website. The comptroller shall make information | ||
about the program available to parents of children eligible to | ||
participate in the program through the comptroller's Internet | ||
website. | ||
Sec. 29.354. ELIGIBLE CHILD. (a) A child is eligible to | ||
participate in the program if the child is eligible to attend a | ||
public school under Section 25.001. | ||
(b) A child 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. | ||
(c) Notwithstanding Subsection (b), the comptroller shall | ||
establish guidelines for, in the least disruptive manner possible: | ||
(1) a child participating in the program to cease | ||
participation and enroll in a public school, including an | ||
open-enrollment charter school; and | ||
(2) a child who previously participated in the program | ||
and subsequently enrolled in a public school, including an | ||
open-enrollment charter school, to resume participation in the | ||
program. | ||
Sec. 29.355. ENROLLMENT IN PROGRAM. (a) A parent of an | ||
eligible child may enroll the child in the program for the following | ||
school year. | ||
(b) The comptroller shall by rule create an enrollment form | ||
for the program and make the enrollment form readily available to | ||
interested parents through various sources, including the | ||
comptroller's Internet website. | ||
(c) The comptroller shall provide to each parent who submits | ||
an enrollment form a publication that describes the operation of | ||
the program, including: | ||
(1) expenses allowed under the program under Section | ||
29.357; | ||
(2) expense reporting requirements; and | ||
(3) a description of the responsibilities of program | ||
participants and the duties of the comptroller under this | ||
subchapter. | ||
Sec. 29.356. PARTICIPATION IN PROGRAM. (a) To receive | ||
funding under the program, a parent of an eligible child must agree | ||
to: | ||
(1) spend funds received through the program only for | ||
expenses allowed under Section 29.357; | ||
(2) notify the comptroller if the child enrolls in a | ||
public school, including an open-enrollment charter school, not | ||
later than the 30th day after the date of enrollment; and | ||
(3) inform the comptroller if the child graduates from | ||
high school. | ||
(b) The parent of a child participating in the program is | ||
the trustee of the child's account. | ||
(c) The comptroller shall provide annually to each program | ||
participant the publication provided under Section 29.355(c). | ||
Sec. 29.357. APPROVED EDUCATION-RELATED EXPENSES. (a) | ||
Funds received under the program may be used only for the following | ||
expenses incurred by a program participant: | ||
(1) tuition and fees: | ||
(A) at a private school accredited by an | ||
organization that is recognized by the Texas Private School | ||
Accreditation Commission; | ||
(B) at a postsecondary educational institution; | ||
or | ||
(C) for an online educational course or program; | ||
(2) the purchase of textbooks or other instructional | ||
materials; | ||
(3) the purchase of a curriculum; | ||
(4) fees for classes or other educational services | ||
provided by a public school, if the classes or services do not | ||
qualify the child to be included in the school's average daily | ||
attendance; | ||
(5) fees for services provided by a private tutor or | ||
teaching service; | ||
(6) for a child with a disability, fees for | ||
educational therapies or services provided by a practitioner or | ||
provider; | ||
(7) costs of computer hardware and software and other | ||
technological devices, not to exceed in any year 10 percent of the | ||
total amount paid to the program participant's account that year; | ||
(8) fees for a nationally norm-referenced achievement | ||
test or examination, an assessment instrument adopted by the agency | ||
under Section 39.023, an advanced placement test or similar | ||
examination, or any examination related to college or university | ||
admission; and | ||
(9) fees for the management of the participant's | ||
account charged by a financial institution. | ||
(b) Expenses allowed under Subsection (a) do not include | ||
expenses for: | ||
(1) consumable supplies, including paper, pens, | ||
pencils, folders, and notebooks; | ||
(2) food; or | ||
(3) before-school or after-school child care or child | ||
care during school holidays and vacations. | ||
(c) An education service provider or vendor of educational | ||
products must provide a program participant with a receipt for each | ||
expense allowed under Subsection (a) charged by the provider or | ||
vendor to the participant. | ||
(d) The content or religious nature of a product or service | ||
may not be considered in determining whether a payment for the | ||
product or service is an expense allowed under Subsection (a). | ||
(e) A finding that a program participant used funds | ||
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. 29.358. AMOUNT OF PAYMENT; FINANCING. (a) A parent of | ||
an eligible child shall receive each year that the child | ||
participates in the program quarterly payments from the state to | ||
the child's account equal to a total amount of $10,000. | ||
(b) In addition to any funding the district receives under | ||
Chapter 48, for each child participating in the program, the school | ||
district the child would otherwise attend is entitled to receive | ||
for the first year in which the child participates in the program an | ||
amount equal to 50 percent of the difference between: | ||
(1) the state average maintenance and operations | ||
expenditures per student in average daily attendance for the | ||
preceding fiscal year; and | ||
(2) the amount the child's parent receives under | ||
Subsection (a) for the year. | ||
(c) Any funds remaining in a child's account at the end of a | ||
fiscal year are carried forward to the next fiscal year unless | ||
another provision of this subchapter mandates the closure of the | ||
account. | ||
(d) The parent of a child participating in the program may | ||
make payments for the expenses of educational programs, services, | ||
and products not covered by funds in the child's account. | ||
(e) A payment under Subsection (a) may not be financed using | ||
federal funds or money appropriated from the available school fund. | ||
Sec. 29.359. ADMINISTRATION OF ACCOUNTS. (a) The | ||
comptroller may contract with one or more financial institutions to | ||
establish and manage an account for each child participating in the | ||
program. A program participant must be able to access the | ||
participant's account by using a debit card or online or electronic | ||
transfer payment service. | ||
(b) The comptroller shall make quarterly payments to each | ||
program participant's account in equal amounts on or before the | ||
15th day of August, November, February, and May. | ||
(c) 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 five percent of the payment. | ||
(d) Not later than 30 days after the end of each fiscal year, | ||
the comptroller shall reconcile payments made to and from all | ||
accounts under the program. | ||
(e) On the date on which a child who participated in the | ||
program is no longer eligible to participate in the program under | ||
Section 29.354(b), the child's account is closed and any remaining | ||
funds are returned to the state for deposit in the foundation school | ||
fund. | ||
(f) The comptroller may contract with a private entity to | ||
administer all or any part of the program. | ||
Sec. 29.360. RANDOM AUDITING OF ACCOUNTS. (a) The | ||
comptroller shall contract with a private entity to randomly audit | ||
accounts as necessary to ensure compliance with applicable law and | ||
the requirements of the program. | ||
(b) In auditing an account, the comptroller or private | ||
entity may require that a program participant provide further | ||
information and documentation regarding any payment from the | ||
participant's account. | ||
(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. 29.361. 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, | ||
including a requirement under Section 29.356(a), or who | ||
substantially misuses funds received under 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 further 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 funds distributed under the | ||
program that were used for expenses not allowed under Section | ||
29.357(a) from the program participant or the entity that received | ||
the funds if the participant's account is suspended or closed under | ||
this section. | ||
Sec. 29.362. 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 funds 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 | ||
funds paid or owed by the participant to the provider or vendor. | ||
Sec. 29.363. REFERRAL TO ATTORNEY GENERAL. (a) If the | ||
comptroller obtains evidence of fraudulent use of an account, the | ||
comptroller 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. 29.364. PROVIDER ACCOUNTABILITY. (a) A private | ||
school must be accredited by an organization that is recognized by | ||
the Texas Private School Accreditation Commission to receive funds | ||
distributed under the program. | ||
(b) A private tutor or teaching service and a practitioner | ||
or provider who provides educational therapies or services for a | ||
child with a disability must be licensed or accredited by a regional | ||
or national accrediting organization to receive funds distributed | ||
under the program. | ||
Sec. 29.365. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR | ||
AUTONOMY. (a) An education service provider or vendor of | ||
educational products that receives funds distributed under the | ||
program is not an agent of the state or federal government. | ||
(b) Except as provided by this subchapter, the comptroller, | ||
the agency, the State Board of Education, any other state agency, or | ||
any school district may not: | ||
(1) regulate the educational program of an education | ||
service provider or vendor of educational products that receives | ||
funds distributed under the program; or | ||
(2) exercise control or supervision over a program | ||
participant or an education service provider or vendor of | ||
educational products that receives funds distributed under the | ||
program. | ||
(c) 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. | ||
(d) A private school may not be required to modify the | ||
school's creed, practices, admissions policies, curriculum, | ||
performance standards, or assessments to receive funds distributed | ||
under the program. | ||
(e) A private school voluntarily selected by a parent for | ||
the parent's child to attend or a parent who homeschools the | ||
parent's child, with or without governmental assistance, may not be | ||
required to comply with any state law or rule governing the | ||
applicable educational program that was not in effect on January 1, | ||
2023. | ||
(f) 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 funds | ||
distributed under the program. | ||
Sec. 29.366. STUDENT RECORDS AND INFORMATION. (a) On | ||
request by the parent of a child participating 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 the comptroller any | ||
information available to the agency requested by the comptroller | ||
regarding a child who participates or seeks to participate in the | ||
program. | ||
Sec. 29.367. REPORTING NUMBER OF PARTICIPANTS. (a) Not | ||
later than October 1 of each year, the comptroller shall notify the | ||
commissioner and the Legislative Budget Board of the number of | ||
eligible children likely to participate in the program, | ||
disaggregated by the school district or open-enrollment charter | ||
school the eligible children would otherwise attend. | ||
(b) Not later than March 1 of each year, the comptroller | ||
shall provide final information to the commissioner and the | ||
Legislative Budget Board regarding the number of children | ||
participating in the program, disaggregated in the same manner as | ||
the initial information under Subsection (a). | ||
Sec. 29.368. ANNUAL SURVEY. The comptroller may conduct an | ||
annual parental satisfaction survey that asks each parent of a | ||
child participating in the program to express: | ||
(1) the parent's overall level of satisfaction with | ||
the program; and | ||
(2) the parent's opinion on specified topics and | ||
issues relevant to the effectiveness of the program. | ||
Sec. 29.369. RULES. The comptroller shall: | ||
(1) adopt rules as necessary to implement this | ||
subchapter, including: | ||
(A) rules regarding expense reporting | ||
requirements for program participants; and | ||
(B) rules for implementing this subchapter in a | ||
manner that ensures compliance with federal law regarding | ||
confidentiality of student educational information, including the | ||
Family Educational Rights and Privacy Act of 1974 (20 U.S.C. | ||
Section 1232g); and | ||
(2) coordinate as necessary to: | ||
(A) calculate annually the savings to the state | ||
from the implementation of the program; and | ||
(B) prevent fraud in financial transactions | ||
under the program, including by adopting measures to permit | ||
anonymous fraud reporting by telephone hotline or online | ||
communication. | ||
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. | ||
SECTION 2. Section 48.266, Education Code, is amended by | ||
adding Subsection (b-1) to read as follows: | ||
(b-1) Notwithstanding Subsection (b), the commissioner | ||
shall adjust enrollment estimates and entitlement for each school | ||
district for each school year based on information provided by the | ||
comptroller under Section 29.367. This subsection expires | ||
September 1, 2026. | ||
SECTION 3. Notwithstanding Section 29.359(b), Education | ||
Code, as added by this Act, not later than September 15, 2024, the | ||
comptroller shall make the initial payment to each program | ||
participant's education savings account as provided by Subchapter | ||
J, Chapter 29, Education Code, as added by this Act. | ||
SECTION 4. This Act applies beginning with the 2024-2025 | ||
school year. | ||
SECTION 5. 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, 2023. |