Bill Text: TX SB1 | 2023 | 88th Legislature 3rd Special Session | Engrossed
Bill Title: Relating to the establishment of an education savings account program.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Engrossed - Dead) 2023-10-13 - Referred to Educational Opportunity & Enrichment, Select [SB1 Detail]
Download: Texas-2023-SB1-Engrossed.html
| By: Creighton, et al. | S.B. No. 1 | |
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| relating to the establishment of an education savings account | ||
| program. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The purpose of this Act is to: | ||
| (1) provide additional educational options to assist | ||
| families in this state in exercising the right to direct the | ||
| educational needs of their children; and | ||
| (2) achieve a general diffusion of knowledge. | ||
| SECTION 2. Chapter 29, Education Code, is amended by adding | ||
| Subchapter J to read as follows: | ||
| SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM | ||
| Sec. 29.351. DEFINITIONS. In this subchapter: | ||
| (1) "Account" means an education savings account | ||
| established under the program. | ||
| (2) "Certified educational assistance organization" | ||
| means an organization certified under Section 29.354 to support the | ||
| administration of 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) "Higher education provider" means an institution | ||
| of higher education or a private or independent institution of | ||
| higher education, as those terms are defined 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) "Participating child" means a child enrolled in | ||
| the program. | ||
| (7) "Participating parent" means a parent of a | ||
| participating child. | ||
| (8) "Program" means the program established under this | ||
| subchapter. | ||
| (9) "Program participant" means a participating child | ||
| or a participating parent. | ||
| Sec. 29.352. ESTABLISHMENT OF PROGRAM. The comptroller | ||
| shall establish a program to provide funding for approved | ||
| education-related expenses of children participating in the | ||
| program. | ||
| Sec. 29.353. PROGRAM FUND. (a) The 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; and | ||
| (4) any other money available for purposes of the | ||
| program. | ||
| (c) Money in the fund may be appropriated only for the uses | ||
| specified by this subchapter. | ||
| Sec. 29.3535. PROMOTION OF PROGRAM. Notwithstanding | ||
| Chapter 2113, Government Code, the comptroller or the comptroller's | ||
| designee may enter into contracts or agreements and engage in | ||
| marketing, advertising, and other activities to promote, market, | ||
| and advertise the development and use of the program. The | ||
| comptroller may use money from the program fund to pay for | ||
| activities authorized under this section. | ||
| Sec. 29.354. 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, an organization must: | ||
| (1) have the ability to perform one or more of the | ||
| duties and functions required of a certified educational assistance | ||
| organization under this subchapter; | ||
| (2) be in good standing with the state; and | ||
| (3) be able to assist the comptroller in administering | ||
| the program in whole or in part, including the ability to: | ||
| (A) accept, process, and track applications for | ||
| the program; | ||
| (B) assist prospective applicants, applicants, | ||
| and program participants with finding preapproved education | ||
| service providers and vendors of educational products; | ||
| (C) accept and process payments for approved | ||
| education-related expenses; and | ||
| (D) verify that program funding is used only for | ||
| approved education-related expenses. | ||
| (c) The comptroller may certify not more than five | ||
| educational assistance organizations to support the administration | ||
| of the program, including by: | ||
| (1) administering in whole or in part: | ||
| (A) the application process under Section | ||
| 29.356; and | ||
| (B) the program expenditures process under | ||
| Section 29.360; and | ||
| (2) assisting prospective applicants, applicants, and | ||
| program participants with understanding approved education-related | ||
| expenses and finding preapproved education service providers and | ||
| vendors of educational products. | ||
| (d) A certified educational assistance organization is not | ||
| considered to be a provider of professional or consulting services | ||
| under Chapter 2254, Government Code. | ||
| Sec. 29.355. ELIGIBLE CHILD. (a) A child is eligible to | ||
| participate in the program and may, subject to available funding, | ||
| enroll in the program for the semester following the semester in | ||
| which the child's application is submitted under Section 29.356 if | ||
| the child: | ||
| (1) is eligible to: | ||
| (A) attend a public school under Section 25.001; | ||
| or | ||
| (B) enroll in a public school's prekindergarten | ||
| program under Section 29.153; and | ||
| (2) either: | ||
| (A) was enrolled in a public school in this state | ||
| for at least 90 percent of the school year preceding the school year | ||
| for which the child applies to enroll in the program; | ||
| (B) is enrolling in prekindergarten or | ||
| kindergarten for the first time; | ||
| (C) attended a private school on a full-time | ||
| basis for the preceding school year; or | ||
| (D) was a home-schooled student, as defined by | ||
| Section 29.916(a)(1), for the preceding school year. | ||
| (b) A child who establishes eligibility under this section | ||
| may, subject to available funding and the requirements of this | ||
| subchapter, 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 either attend a public school under Section 25.001 or enroll in a | ||
| public school's prekindergarten program under Section 29.153, as | ||
| applicable; | ||
| (3) the date on which the child enrolls in a public | ||
| school, including an open-enrollment charter school, in a manner in | ||
| which the child will be counted toward the school's average daily | ||
| attendance for purposes of the allocation of funding under the | ||
| foundation school program; or | ||
| (4) the date on which the child is declared ineligible | ||
| for the program by the comptroller under this subchapter. | ||
| (c) Notwithstanding Subsection (a) or (b), a child is not | ||
| eligible to participate in the program during the period in which | ||
| the child's parent or legal guardian is a state representative, | ||
| state senator, or a statewide elected official. | ||
| Sec. 29.356. APPLICATION TO PROGRAM. (a) A parent of an | ||
| eligible child may apply to a certified educational assistance | ||
| organization designated by the comptroller to enroll the child in | ||
| the program for the following semester, term, or school year, as | ||
| determined by the comptroller. The comptroller shall establish | ||
| deadlines by which an applicant must complete and submit an | ||
| application form to participate in the program. | ||
| (b) On receipt of more acceptable applications during an | ||
| application period for admission under this section than available | ||
| positions in the program due to insufficient funding, a certified | ||
| educational assistance organization shall, at the direction of the | ||
| comptroller, fill the available positions by lottery of applicants | ||
| within each category as follows: | ||
| (1) for not more than 40 percent of available | ||
| positions in the program, children described by Section | ||
| 29.355(a)(2)(A) or (B) who are members of a household with a total | ||
| annual income that is at or below 185 percent of the federal poverty | ||
| guidelines; | ||
| (2) for not more than 30 percent of the available | ||
| positions in the program, children described by Section | ||
| 29.355(a)(2)(A) or (B) who are members of a household with a total | ||
| annual income that is above 185 percent of the federal poverty | ||
| guidelines and below 500 percent of the federal poverty guidelines; | ||
| (3) for not more than 20 percent of the available | ||
| positions in the program, children with a disability described by | ||
| Section 29.355(a)(2)(A) or (B) who are not accepted into the | ||
| program under Subdivision (1) or (2) of this subsection; and | ||
| (4) for any remaining available positions in the | ||
| program, all eligible applicants who are not accepted into the | ||
| program under Subdivision (1), (2), or (3) of this subsection. | ||
| (b-1) The comptroller shall adopt rules necessary to | ||
| administer Subsection (b). The comptroller shall post on the | ||
| comptroller's Internet website any rule adopted under this | ||
| subsection. | ||
| (c) The comptroller shall create an application form for the | ||
| program and each certified educational assistance organization | ||
| designated by the comptroller shall make the application form | ||
| readily available through various sources, including the | ||
| organization's Internet website. The application form must state | ||
| the application deadlines established by the comptroller under | ||
| Subsection (a). Each organization shall ensure that the | ||
| application form, including any required supporting document, is | ||
| capable of being submitted to the organization electronically. | ||
| (d) Each certified educational assistance organization | ||
| designated under Subsection (a) shall post on the organization's | ||
| Internet website an applicant and participant handbook with a | ||
| description of the program, including: | ||
| (1) expenses allowed under the program under Section | ||
| 29.359; | ||
| (2) a list of preapproved education service providers | ||
| and vendors of educational products under Section 29.358; | ||
| (3) a description of the application process under | ||
| this section and the program expenditures process under Section | ||
| 29.360; and | ||
| (4) a description of the responsibilities of program | ||
| participants. | ||
| (e) Each certified educational assistance organization | ||
| designated under Subsection (a) shall annually provide to the | ||
| parent of each child participating in the program the information | ||
| described by Subsection (d). The organization may provide the | ||
| information electronically. | ||
| (f) The comptroller or a certified educational assistance | ||
| organization designated under Subsection (a): | ||
| (1) may require the participating parent to submit | ||
| annual notice regarding the parent's intent for the child to | ||
| continue participating in the program for the next school year; and | ||
| (2) may not require a program participant in good | ||
| standing to annually resubmit an application for continued | ||
| participation in the program. | ||
| (g) The agency shall provide to the comptroller the | ||
| information necessary to make the determinations required under | ||
| Subsection (b). | ||
| Sec. 29.357. PARTICIPATION IN PROGRAM. To receive funding | ||
| under the program, a participating parent must agree to: | ||
| (1) spend money received through the program only for | ||
| expenses allowed under Section 29.359; | ||
| (2) share or authorize the administrator of an | ||
| assessment instrument to share with the program participant's | ||
| certified educational assistance organization the results of any | ||
| assessment instrument required to be administered to the child | ||
| under Section 29.358(b)(1)(B) or other law; | ||
| (3) refrain from selling an item purchased with | ||
| program money; and | ||
| (4) notify the program participant's certified | ||
| educational assistance organization not later than 30 business 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 either: | ||
| (i) enroll in a public school under Section | ||
| 25.001; or | ||
| (ii) enroll in a public school's | ||
| prekindergarten program under Section 29.153. | ||
| Sec. 29.358. PREAPPROVED PROVIDERS AND VENDORS. (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 allow for | ||
| the submission of applications on a rolling basis. | ||
| (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, demonstrates: | ||
| (A) accreditation by an organization recognized | ||
| by: | ||
| (i) the Texas Private School Accreditation | ||
| Commission; or | ||
| (ii) the agency; and | ||
| (B) annual administration of a nationally | ||
| norm-referenced assessment instrument or the appropriate | ||
| assessment instrument required under Subchapter B, Chapter 39; | ||
| (2) for a public school, demonstrates: | ||
| (A) accreditation by the agency; and | ||
| (B) the ability to provide services or products | ||
| to children participating in the program in a manner in which the | ||
| children are not counted toward the school's average daily | ||
| attendance; | ||
| (3) for a private tutor, therapist, or teaching | ||
| service, demonstrates that: | ||
| (A) the tutor or therapist or each employee of | ||
| the teaching service who intends to provide educational services to | ||
| a participating child: | ||
| (i) is an educator employed by or a retired | ||
| educator formerly employed by a school accredited by the agency, an | ||
| organization recognized by the agency, or an organization | ||
| recognized by the Texas Private School Accreditation Commission; | ||
| (ii) holds a relevant license or | ||
| accreditation issued by a state, regional, or national | ||
| certification or accreditation organization; or | ||
| (iii) is employed in or retired from a | ||
| teaching or tutoring capacity at a higher education provider; | ||
| (B) the tutor or therapist or each employee of | ||
| the teaching service who intends to provide educational services to | ||
| a participating child provides to the comptroller a national | ||
| criminal history record information review completed by the tutor, | ||
| therapist, or employee, as applicable, within a period established | ||
| by comptroller rule; and | ||
| (C) the tutor or therapist or each employee of | ||
| the teaching service who intends to provide educational services to | ||
| a participating child is not: | ||
| (i) required to be discharged or refused to | ||
| be hired by a school district under Section 22.085; or | ||
| (ii) included in the registry under Section | ||
| 22.092; or | ||
| (4) for a higher education provider, demonstrates | ||
| nationally recognized postsecondary accreditation. | ||
| (c) The comptroller may approve only an education service | ||
| provider or vendor of educational products that operates in this | ||
| state. | ||
| (d) The comptroller shall review the national criminal | ||
| history record information or documentation for each private tutor, | ||
| therapist, or teaching service employee who submits information or | ||
| documentation under this section. The tutor, therapist, or | ||
| employee must provide the comptroller with any information | ||
| requested by the comptroller to enable the comptroller to complete | ||
| the review. | ||
| (e) An education service provider or vendor of educational | ||
| products shall provide information requested by the comptroller to | ||
| verify the provider's or vendor's eligibility for preapproval under | ||
| Subsection (b). The comptroller may not approve a provider or | ||
| vendor if the comptroller cannot verify the provider's or vendor's | ||
| eligibility for preapproval. | ||
| (f) An education service provider or vendor of educational | ||
| products must agree to: | ||
| (1) abide by the disbursement schedule under Section | ||
| 29.360(c) and all other requirements of this subchapter; | ||
| (2) accept money from the program only for | ||
| education-related expenses approved under Section 29.359; | ||
| (3) notify the comptroller not later than the 30th day | ||
| after the date that the provider or vendor no longer meets the | ||
| requirements of this section; and | ||
| (4) return any money received, including any interest | ||
| or other additions received related to the money, in violation of | ||
| this subchapter or other relevant law to the comptroller for | ||
| deposit into the program fund. | ||
| (g) An education service provider or vendor of educational | ||
| products that receives approval under this section may participate | ||
| in the program until the earliest of the date on which the provider | ||
| or vendor: | ||
| (1) no longer meets the requirements under this | ||
| section; or | ||
| (2) violates this subchapter or other relevant law. | ||
| (h) This section may not be construed to allow a learning | ||
| pod, as defined by Section 27.001, or a home school to qualify as an | ||
| approved education service provider or vendor of educational | ||
| products. | ||
| Sec. 29.359. APPROVED EDUCATION-RELATED EXPENSES. (a) | ||
| Subject to Subsection (b), money received under the program may be | ||
| used only for the following education-related expenses incurred by | ||
| a participating child at a preapproved education service provider | ||
| or vendor of educational products: | ||
| (1) tuition and fees for a private school; | ||
| (2) the purchase of textbooks or other instructional | ||
| materials or uniforms; | ||
| (3) costs related to academic assessments; | ||
| (4) fees for services provided by a private tutor or | ||
| teaching service; | ||
| (5) fees for transportation provided by a | ||
| fee-for-service transportation provider for the child to travel to | ||
| and from a preapproved education service provider or vendor of | ||
| educational products; and | ||
| (6) 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 related to the program participant within the | ||
| third degree by consanguinity or affinity, as determined under | ||
| Chapter 573, Government Code. | ||
| (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 approved education-related expense | ||
| that is allowed under that subsection. | ||
| Sec. 29.360. PROGRAM EXPENDITURES. (a) The comptroller | ||
| shall disburse from the program fund to each certified educational | ||
| assistance organization the amount specified under Section | ||
| 29.361(a) for each participating child served by the organization. | ||
| (b) To initiate payment to an education service provider or | ||
| vendor of educational products for an education-related expense | ||
| approved under Section 29.359, the participating parent must submit | ||
| a request in a form prescribed by comptroller rule to the certified | ||
| educational assistance organization that serves the child. | ||
| (c) Subject to Subsection (d) and Sections 29.362(f) and | ||
| 29.364, on receiving a request under Subsection (b), a certified | ||
| educational assistance organization shall verify that the request | ||
| is for an expense approved under Section 29.359 and, not later than | ||
| the 15th business day after the date the organization verifies the | ||
| request, send payment to the education service provider or vendor | ||
| of educational products. | ||
| (d) A disbursement under this section may not exceed the | ||
| applicable participating child's account balance. | ||
| (e) A certified educational assistance organization shall | ||
| provide participating parents with electronic access to: | ||
| (1) view the participating child's current account | ||
| balance; | ||
| (2) initiate the payment process under Subsection (b); | ||
| and | ||
| (3) view a summary of past account activity, including | ||
| payments from the account to education service providers and | ||
| vendors of educational products. | ||
| Sec. 29.361. AMOUNT OF PAYMENT; FINANCING. (a) Regardless | ||
| of the deadline by which the parent applies for enrollment in the | ||
| program under Section 29.356(a), a participating parent shall | ||
| receive each year that the child participates in the program | ||
| payments from the state from funds available under Section 29.353 | ||
| to the child's account equal to a total amount of: | ||
| (1) $1,000, if the participating child is a | ||
| home-schooled student, as defined by Section 29.916(a)(1); or | ||
| (2) $8,000, if the child is a participating child not | ||
| described by Subdivision (1). | ||
| (b) This subsection does not apply to an open-enrollment | ||
| charter school and applies only to a school district with a student | ||
| enrollment of 5,000 or less that experiences a net decline in | ||
| student enrollment from the previous school year that is | ||
| attributable to students participating in the program who would | ||
| otherwise enroll in the district. For the first three school years | ||
| during which a child residing in the district participates in the | ||
| program, a school district to which this subsection applies is | ||
| entitled to receive $10,000 per child from money appropriated for | ||
| purposes of this subchapter. | ||
| (c) Any money remaining in a participating 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. | ||
| (d) The participating parent may make payments for the | ||
| expenses of educational programs, services, and products not | ||
| covered by money in the participating child's account. | ||
| (e) A payment under Subsection (a) may not be financed using | ||
| federal money or money from the available school fund or | ||
| instructional materials and technology fund. | ||
| (f) Payments received under this subchapter do not | ||
| constitute taxable income to a participating parent, unless | ||
| otherwise provided by federal law. | ||
| (g) Not later than May 1 of each year, the agency shall | ||
| submit to the comptroller the data necessary to calculate the | ||
| amount specified under Subsection (a). | ||
| Sec. 29.362. ADMINISTRATION OF ACCOUNTS. (a) On receipt | ||
| of money distributed by the comptroller for purposes of making | ||
| payments to program participants, a certified educational | ||
| assistance organization shall hold that money in trust for the | ||
| benefit of children participating in the program and make quarterly | ||
| payments to the account of each participating child served by the | ||
| organization in equal amounts on or before the first day of July, | ||
| October, January, and April. | ||
| (b) Each year, the comptroller may deduct from the total | ||
| amount of money appropriated for purposes of this subchapter an | ||
| amount, not to exceed three percent of that total amount, to cover | ||
| the comptroller's cost of administering the program. | ||
| (c) Each quarter, each certified educational assistance | ||
| organization shall submit to the comptroller a breakdown of the | ||
| organization's costs of administering the program for the previous | ||
| quarter and the comptroller shall disburse from money appropriated | ||
| for the program to each certified educational assistance | ||
| organization the amount necessary to cover the organization's costs | ||
| of administering the program for that quarter. The total amount | ||
| disbursed to all certified educational assistance organizations | ||
| under this subsection for a state fiscal year may not exceed five | ||
| percent of the amount appropriated for the purposes of the program | ||
| for that fiscal year. | ||
| (d) On or before the first day of October and February, a | ||
| certified educational assistance organization shall: | ||
| (1) verify with the agency that each participating | ||
| child is not enrolled in a public school, including an | ||
| open-enrollment charter school, in a manner in which the child is | ||
| counted toward the school's average daily attendance for purposes | ||
| of the allocation of state funding under the foundation school | ||
| program; and | ||
| (2) notify the comptroller if the organization | ||
| determines that a participating child is: | ||
| (A) enrolled in a public school, including an | ||
| open-enrollment charter school, in a manner in which the child is | ||
| counted toward the school's average daily attendance for purposes | ||
| of the allocation of state funding under the foundation school | ||
| program; or | ||
| (B) not enrolled in a preapproved private school. | ||
| (e) The comptroller by rule shall establish a process by | ||
| which a participating parent may authorize the comptroller or a | ||
| certified educational assistance organization to make a payment | ||
| directly from the participant's account to a preapproved education | ||
| service provider or vendor of educational products for an expense | ||
| allowed under Section 29.359. | ||
| (f) On the date on which a child who participated in the | ||
| program is no longer eligible to participate in the program under | ||
| Section 29.355 and payments for any education-related expenses | ||
| allowed under Section 29.359 from the child's account have been | ||
| completed, the participating child's account shall be closed and | ||
| any remaining money returned to the comptroller for deposit in the | ||
| program fund. | ||
| (g) Each quarter, any interest or other earnings | ||
| attributable to money held by a certified educational assistance | ||
| organization for purposes of the program shall be remitted to the | ||
| comptroller for deposit in the program fund. | ||
| Sec. 29.363. AUDITING. (a) The comptroller shall contract | ||
| with a private entity to audit accounts and program participant | ||
| eligibility data not less than once per year to ensure compliance | ||
| with applicable law and program requirements. The audit must | ||
| include a review of: | ||
| (1) each certified educational assistance | ||
| organization's internal controls over program transactions; and | ||
| (2) compliance by: | ||
| (A) certified educational assistance | ||
| organizations with Section 29.354 and other program requirements; | ||
| (B) program participants with Section 29.357 and | ||
| other program requirements; and | ||
| (C) education service providers and vendors of | ||
| educational products with Section 29.358 and other program | ||
| requirements. | ||
| (b) In conducting an audit, the private entity may require a | ||
| program participant, education service provider or vendor of | ||
| educational products, or a certified educational assistance | ||
| organization to provide information and documentation regarding | ||
| any transaction occurring under the program. | ||
| (c) The private entity shall report to the comptroller any | ||
| violation of this subchapter or other relevant law and any | ||
| transactions the entity determines to be unusual or suspicious | ||
| found by the entity during an audit conducted under this section. | ||
| The comptroller shall report the violation or transaction to: | ||
| (1) the applicable certified educational assistance | ||
| organization; | ||
| (2) the education service provider or vendor of | ||
| educational products, as applicable; and | ||
| (3) each participating parent who is affected by the | ||
| violation or transaction. | ||
| Sec. 29.364. SUSPENSION OF ACCOUNT. (a) The comptroller | ||
| shall suspend the account of a participating child who fails to | ||
| remain in good standing by complying with applicable law or a | ||
| requirement of the program. | ||
| (b) On suspension of an account under Subsection (a), the | ||
| comptroller shall notify the participating parent 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 participating parent has 30 | ||
| days to respond and take any corrective action required by the | ||
| comptroller. | ||
| (c) On the expiration of the 30-day period under Subsection | ||
| (b), the comptroller shall: | ||
| (1) order closure of the suspended account; | ||
| (2) order temporary reinstatement of the account, | ||
| conditioned on the performance of a specified action by the | ||
| participating parent; 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 | ||
| 29.359, for a child who was not eligible to participate in the | ||
| program at the time of the expenditure, or from an education service | ||
| provider or vendor of educational products that was not approved at | ||
| the time of the expenditure. The money and any interest or other | ||
| additions received related to the money may be recovered from the | ||
| participating parent or the education service provider or vendor of | ||
| educational products that received the money in accordance with | ||
| Subtitles A and B, Title 2, Tax Code, or as provided by other law if | ||
| the participating child's account is suspended or closed under this | ||
| section. The comptroller shall deposit money recovered under this | ||
| subsection into the program fund. | ||
| Sec. 29.365. TUITION AND FEES; REFUND PROHIBITED. (a) An | ||
| education service provider or vendor of educational products may | ||
| not charge a participating child an amount greater than the | ||
| standard amount charged for that service or product by the provider | ||
| or vendor. | ||
| (b) An education service provider or 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 DISTRICT ATTORNEY. If the | ||
| comptroller obtains evidence of fraudulent use of an account or | ||
| money distributed under the program or any other violation of law by | ||
| a certified educational assistance organization, education | ||
| services provider or vendor of educational products, or program | ||
| participant, the comptroller shall notify the appropriate local | ||
| county or district attorney with jurisdiction over, as applicable: | ||
| (1) the principal place of business of the | ||
| organization or provider or vendor; or | ||
| (2) the residence of the program participant. | ||
| Sec. 29.367. SPECIAL EDUCATION NOTICE. (a) A certified | ||
| educational assistance organization shall post on the | ||
| organization's Internet website and provide to each parent who | ||
| submits an application for the program a notice that: | ||
| (1) states that a private school is not subject to | ||
| federal and state laws regarding the provision of educational | ||
| services to a child with a disability in the same manner as a public | ||
| school; 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.); and | ||
| (B) rights provided under Subchapter A. | ||
| (b) A private school in which a child with a disability who | ||
| is a participating child enrolls shall provide to the participating | ||
| 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 a recipient of federal financial assistance and may | ||
| not be considered to be an agent of state government on the basis of | ||
| receiving that money. | ||
| (b) A rule adopted or other governmental action taken | ||
| related to the program may not impose requirements that are | ||
| contrary to or limit the religious or institutional values or | ||
| practices of an education service provider, vendor of educational | ||
| products, or program participant, including by limiting the ability | ||
| of the provider, vendor, or participant, as applicable, to: | ||
| (1) determine the methods of instruction or curriculum | ||
| used to educate students; | ||
| (2) determine admissions and enrollment practices, | ||
| policies, and standards; | ||
| (3) modify or refuse to modify the provider's, | ||
| vendor's, or participant's religious or institutional values or | ||
| practices, including operations, conduct, policies, standards, | ||
| assessments, or employment practices that are based on the | ||
| provider's, vendor's, or participant's religious or institutional | ||
| values or practices; or | ||
| (4) exercise the provider's, vendor's, or | ||
| participant's religious or institutional practices as determined | ||
| by the provider, vendor, or participant. | ||
| Sec. 29.369. STUDENT RECORDS AND INFORMATION. (a) On | ||
| request by the participating parent or parent of a child 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) As necessary to verify a child's eligibility for the | ||
| program, the agency, a school district, or an open-enrollment | ||
| charter school shall provide to a certified educational assistance | ||
| organization any information available to the agency, district, or | ||
| school requested by the organization regarding a child who | ||
| participates or seeks to participate in the program, including | ||
| information regarding the child's public school enrollment status | ||
| and whether the child can be counted toward a public school's | ||
| average daily attendance for purposes of the allocation of funding | ||
| under the foundation school 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. | ||
| (c) The certified educational assistance organization or an | ||
| education service provider or vendor of educational products that | ||
| obtains information regarding a participating child: | ||
| (1) shall comply with state and federal law regarding | ||
| the confidentiality of student educational information; and | ||
| (2) may not sell or otherwise distribute information | ||
| regarding a participating child. | ||
| Sec. 29.370. GIFTS, GRANTS, AND DONATIONS. The comptroller | ||
| and a certified educational assistance organization 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 establishing the program and contracting for the | ||
| report required under Section 29.371. | ||
| Sec. 29.371. ANNUAL REPORT. (a) The comptroller shall | ||
| require that each certified educational assistance organization | ||
| compile program data and produce an annual longitudinal report | ||
| regarding: | ||
| (1) the number of program applications received, | ||
| accepted, and wait-listed, disaggregated by age; | ||
| (2) program participant satisfaction; | ||
| (3) the results of assessment instruments shared in | ||
| accordance with Section 29.357(2); | ||
| (4) the effect of the program on public and private | ||
| school capacity and availability; | ||
| (5) the amount of cost savings accruing to the state as | ||
| a result of the program; | ||
| (6) in a report submitted in an even-numbered year | ||
| only, an estimate of the total amount of funding required for the | ||
| program for the next state fiscal biennium; | ||
| (7) the amount of gifts, grants, and donations | ||
| received under Section 29.370; and | ||
| (8) based on surveys of former program participants or | ||
| other sources available to an organization, the number and | ||
| percentage of children participating in the program who, within one | ||
| year after graduating from high school, are: | ||
| (A) college ready, as indicated by earning a | ||
| minimum of 12 non-remedial semester credit hours or the equivalent | ||
| or an associate degree from a postsecondary educational | ||
| institution; | ||
| (B) career ready, as indicated by: | ||
| (i) earning a credential of value included | ||
| in a library of credentials established under Section 2308A.007, | ||
| Government Code; or | ||
| (ii) employment at or above the median wage | ||
| in the child's region; or | ||
| (C) military ready, as indicated by achieving a | ||
| passing score set by the applicable military branch on the Armed | ||
| Services Vocational Aptitude Battery and enlisting in the armed | ||
| forces of the United States or the Texas National Guard. | ||
| (b) In producing the report, each certified educational | ||
| assistance organization shall: | ||
| (1) use appropriate analytical and behavioral science | ||
| methodologies to ensure public confidence in the report; and | ||
| (2) comply with the requirements regarding the | ||
| confidentiality of student educational information under the | ||
| Family Educational Rights and Privacy Act of 1974 (20 U.S.C. | ||
| Section 1232g). | ||
| (c) The report must cover a period of not less than five | ||
| years and include, subject to Subsection (b)(2), the data analyzed | ||
| and methodology used. | ||
| (d) The comptroller and each certified educational | ||
| assistance organization shall post the report on the comptroller's | ||
| and organization's respective Internet websites. | ||
| Sec. 29.3715. COLLECTION AND REPORTING OF DEMOGRAPHIC | ||
| INFORMATION. (a) Each certified educational assistance | ||
| organization shall collect and report to the comptroller | ||
| demographic information regarding each participating child for | ||
| whom the organization is responsible. The report must include the | ||
| following demographic information: | ||
| (1) the child's grade; | ||
| (2) the child's age; | ||
| (3) the child's gender; | ||
| (4) the child's race or ethnicity; | ||
| (5) the school district in which the child | ||
| resides; | ||
| (6) the district campus that the child would | ||
| otherwise attend; | ||
| (7) the child's zip code; | ||
| (8) the child's date of enrollment in the | ||
| program; | ||
| (9) whether the child is educationally | ||
| disadvantaged; and | ||
| (10) whether the child has a disability. | ||
| (b) Not later than August 1 of each year, the comptroller | ||
| shall submit a written report to the legislature summarizing the | ||
| demographic information collected under this section. | ||
| Sec. 29.372. RULES; PROCEDURES. The comptroller shall | ||
| adopt rules and procedures as necessary to implement, administer, | ||
| and enforce this subchapter. | ||
| Sec. 29.373. APPEAL; FINALITY OF DECISIONS. (a) A program | ||
| participant may appeal to the comptroller an administrative | ||
| decision made by the comptroller or a certified educational | ||
| assistance organization under this subchapter, including a | ||
| decision regarding eligibility, allowable expenses, or the | ||
| participant's removal from the program. | ||
| (b) This subchapter may not be construed to confer a | ||
| property right on a certified educational assistance organization, | ||
| education service provider, vendor of educational products, or | ||
| program participant. | ||
| (c) A decision of the comptroller made under this subchapter | ||
| is final and not subject to appeal. | ||
| Sec. 29.374. RIGHT TO INTERVENE IN CIVIL ACTION. (a) A | ||
| program participant, education service provider, or vendor of | ||
| educational products may intervene in any civil action challenging | ||
| the constitutionality of the program. | ||
| (b) A court in which a civil action described by Subsection | ||
| (a) is filed may require that all program participants, education | ||
| service providers, and vendors of educational products wishing to | ||
| intervene in the action file a joint brief. A program participant, | ||
| education service provider, or vendor of educational products may | ||
| not be required to join a brief filed on behalf of the state or a | ||
| state agency. | ||
| SECTION 3. Section 22.092(d), Education Code, is amended to | ||
| read as follows: | ||
| (d) The agency shall provide equivalent access to the | ||
| registry maintained under this section to: | ||
| (1) private schools; | ||
| (2) public schools; [ |
||
| (3) nonprofit teacher organizations approved by the | ||
| commissioner for the purpose of participating in the tutoring | ||
| program established under Section 33.913; and | ||
| (4) the comptroller for the purpose of preapproving | ||
| education service providers and vendors of educational products | ||
| under Section 29.358 for participation in the program established | ||
| under Subchapter J, Chapter 29. | ||
| SECTION 4. Section 411.109, Government Code, is amended by | ||
| adding Subsection (b-1) and amending Subsection (c) to read as | ||
| follows: | ||
| (b-1) The comptroller is entitled to obtain criminal | ||
| history record information as provided by Subsection (c) about a | ||
| person who is a private tutor, a therapist, or an employee of a | ||
| teaching service or school 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. | ||
| (c) Subject to Section 411.087 and consistent with the | ||
| public policy of this state, the comptroller is entitled to: | ||
| (1) obtain through the Federal Bureau of Investigation | ||
| criminal history record information maintained or indexed by that | ||
| bureau that pertains to a person described by Subsection (a), [ |
||
| (b), or (b-1); and | ||
| (2) obtain from the department or any other criminal | ||
| justice agency in this state criminal history record information | ||
| maintained by the department or that criminal justice agency that | ||
| relates to a person described by Subsection (a), [ |
||
| SECTION 5. Subchapter J, Chapter 29, Education Code, as | ||
| added by this Act, applies beginning with the 2024-2025 school | ||
| year. | ||
| SECTION 6. (a) Not later than May 15, 2024, the comptroller | ||
| of public accounts shall adopt rules as provided by Sections | ||
| 29.356(b-1) and 29.372, Education Code, as added by this Act. | ||
| (b) The comptroller of public accounts may identify rules | ||
| required by the passage of Subchapter J, Chapter 29, Education | ||
| Code, as added by this Act, that must be adopted on an emergency | ||
| basis for purposes of the 2024-2025 school year and may use the | ||
| procedures established under Section 2001.034, Government Code, | ||
| for adopting those rules. The comptroller of public accounts is not | ||
| required to make the finding described by Section 2001.034(a), | ||
| Government Code, to adopt emergency rules under this subsection. | ||
| SECTION 7. (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, may | ||
| be determined in an action for declaratory judgment under Chapter | ||
| 37, Civil Practice and Remedies Code, in a district court in the | ||
| county in which the violation is alleged to have occurred or where | ||
| the plaintiff resides or has its principal place of business. | ||
| (b) 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, may be reviewed only by direct appeal to the Texas Supreme | ||
| Court filed not later than the 15th business day after the date on | ||
| which the order was entered. The Texas Supreme Court shall give | ||
| precedence to appeals under this section over other matters. | ||
| (c) The direct appeal is an accelerated appeal. | ||
| (d) This section exercises the authority granted by Section | ||
| 3-b, Article V, Texas Constitution. | ||
| (e) 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; | ||
| (2) the applicant will suffer a probable injury that | ||
| is imminent and irreparable, and that the applicant has no other | ||
| adequate legal remedy; and | ||
| (3) maintaining the injunction is in the public | ||
| interest. | ||
| (f) 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), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b), | ||
| 40.1(b), and 49.4. | ||
| (g) 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. | ||
| (h) This section does not authorize a taxpayer suit to | ||
| contest the denial of a tax credit by the comptroller of public | ||
| accounts. | ||
| SECTION 8. It is the intent of the legislature that every | ||
| provision, section, subsection, sentence, clause, phrase, or word | ||
| in this Act, and every application of the provisions in this Act to | ||
| each person or entity, is severable from each other. If any | ||
| application of any provision in this Act to any person, group of | ||
| persons, or circumstances is found by a court to be invalid for any | ||
| reason, the remaining applications of that provision to all other | ||
| persons and circumstances shall be severed and may not be affected. | ||
| SECTION 9. This Act takes effect on the 91st day after the | ||
| last day of the legislative session. | ||
