87R9066 BEF-F
 
  By: Paxton S.B. No. 1698
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise or insurance premium tax credit for
  contributions made to certain educational assistance
  organizations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 171, Tax Code, is amended by adding
  Subchapter N to read as follows:
  SUBCHAPTER N. TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN EDUCATIONAL
  ASSISTANCE ORGANIZATIONS
         Sec. 171.701.  DEFINITION.  In this subchapter, "educational
  assistance organization" means an organization that:
               (1)  has the ability according to the organization's
  charter to award scholarships to or pay educational expenses for
  eligible students in:
                     (A)  public elementary or secondary schools
  located in this state; or
                     (B)  nonpublic elementary or secondary schools
  located in this state:
                           (i)  that meet the requirements of Section
  171.704;
                           (ii)  at which a student may fulfill this
  state's compulsory attendance requirements; and
                           (iii)  that are not in violation of the
  federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.);
  and
               (2)  uses part of its annual revenue for the purpose
  provided by Subdivision (1).
         Sec. 171.702.  ELIGIBILITY REQUIREMENTS FOR CERTIFICATION
  OF EDUCATIONAL ASSISTANCE ORGANIZATION. (a)  An organization may
  apply to the comptroller for certification as a certified
  educational assistance organization.
         (b)  To be eligible for certification, an organization:
               (1)  must:
                     (A)  be exempt from federal tax under Section
  501(a) of the Internal Revenue Code by being listed as an exempt
  organization in Section 501(c)(3) of that code;
                     (B)  be in good standing with the state;
                     (C)  be located in the state;
                     (D)  agree to allocate at least 90 percent of its
  annual revenue from contributions that are designated for
  scholarships or educational expense assistance for eligible
  students under this subchapter for student scholarships and
  assistance for educational expenses, including tuition,
  transportation, textbooks, and other supplies, and for other
  related educational expense assistance as described by this
  section;
                     (E)  agree to award scholarships and assistance
  for qualifying educational expenses to eligible students who
  demonstrate the greatest financial and academic need;
                     (F)  agree to provide each donor a receipt for
  money contributed to the organization that includes the name of the
  organization, the name of the donor, the amount of the
  contribution, the information required by Section 171.707(c), and
  any other information required by the comptroller;
                     (G)  demonstrate experience and technical
  expertise in:
                           (i)  accepting, processing, and tracking
  applications for scholarships or educational expense assistance;
  and
                           (ii)  awarding scholarships to students in
  primary or secondary schools;
                     (H)  agree to be independently audited on an
  annual basis and file the audit with the comptroller; and
                     (I)  agree to disburse within two academic years
  of receipt contributions received from and designated by entities
  for scholarships or educational expense assistance under this
  subchapter; and
               (2)  may not:
                     (A)  award all scholarships under this subchapter
  to students who attend a particular school or pay educational
  expenses incurred only at a particular school;
                     (B)  provide to a student a scholarship in an
  annual amount that exceeds the amount provided under Section
  171.708(a) or (b) unless the money used to provide the portion of
  the scholarship in excess of that amount was contributed by a person
  other than an entity that provides notice under Section 171.707(c)
  that the entity may apply for a tax credit for the contribution; and
                     (C)  provide to a student educational expense
  assistance in excess of the amount provided under Section
  171.708(c), unless the money used to provide the portion of the
  assistance in excess of that amount was contributed by a person
  other than an entity that provides notice under Section 171.707(c)
  that the entity may apply for a tax credit for the contribution,
  including assistance for:
                           (i)  facility fees;
                           (ii)  textbooks;
                           (iii)  school supplies;
                           (iv)  tutoring;
                           (v)  academic after-school programs;
                           (vi)  school or lab fees;
                           (vii)  before-school or after-school child
  care; and
                           (viii)  transportation expenses, including
  the cost to transfer from one public school to another.
         (c)  The comptroller may certify not more than 25 certified
  educational assistance organizations.  The comptroller may certify
  as a certified educational assistance organization an organization
  that applies under Subsection (a) if the organization meets the
  requirements of Subsection (b). The comptroller has broad
  discretion in determining whether to grant or deny an application
  for certification.
         (d)  The comptroller shall notify an organization in writing
  of the comptroller's decision to grant or deny the application
  under Subsection (a). If the comptroller denies an organization's
  application, the comptroller shall include in the notice of denial
  the reasons for the comptroller's decision.
         (e)  If the comptroller denies an organization's application
  under Subsection (a), the organization 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
  organization does not request a reconsideration of the application
  on or before that date, the comptroller's decision is final.  An
  organization may not request reconsideration of an application if
  the comptroller denied the application because 25 organizations
  were already certified as certified educational assistance
  organizations.
         (f)  An organization 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
  organization'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
  certification as a certified educational assistance organization.
         Sec. 171.703.  ALLOCATION OF MONEY DESIGNATED FOR
  SCHOLARSHIPS OR EDUCATIONAL EXPENSE ASSISTANCE. Of the amount
  required to be allocated as provided by Section 171.702(b)(1)(D), a
  certified educational assistance organization shall use:
               (1)  at least 80 percent to award scholarships as
  described by Sections 171.708(a) and (b); and
               (2)  not more than 20 percent to award educational
  expense assistance as described by Section 171.708(c).
         Sec. 171.704.  NONPUBLIC SCHOOL REQUIREMENTS. A certified
  educational assistance organization may award scholarships to or
  pay educational expenses for eligible students enrolled in a
  nonpublic school if the nonpublic school executes a notarized
  affidavit, with supporting documents, concerning the school's
  qualification for scholarships and educational expense assistance
  for eligible students who receive assistance from a certified
  educational assistance organization, including evidence of:
               (1)  accreditation or of actively being in the process
  of accreditation by the Texas Education Agency or by an
  organization recognized by the Texas Private School Accreditation
  Commission;
               (2)  annual administration of a nationally
  norm-referenced assessment instrument or the appropriate
  assessment instrument required under Section 39.023, Education
  Code;
               (3)  valid certificate of occupancy; and
               (4)  policy statements regarding:
                     (A)  admissions;
                     (B)  curriculum;
                     (C)  safety;
                     (D)  food service inspection; and
                     (E)  student to teacher ratios.
         Sec. 171.705.  ELIGIBILITY FOR CREDIT.  A taxable entity may
  apply for a credit against the tax imposed under this chapter in the
  amount and under the conditions provided by this subchapter.  The
  comptroller shall award credits as provided by Section 171.711.
         Sec. 171.706.  ELIGIBILITY OF STUDENTS; NOTICE TO CERTAIN
  PARENTS; INCLUSION IN AVERAGE DAILY ATTENDANCE.  (a)  To be eligible
  to apply for assistance from a certified educational assistance
  organization under this subchapter:
               (1)  a student:
                     (A)  must:
                           (i)  be in foster care;
                           (ii)  be in institutional care; or
                           (iii)  reside in a household with income not
  greater than 250 percent of 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.; and
                     (B)  must:
                           (i)  have been enrolled in a public school
  during the preceding school year;
                           (ii)  be enrolling in school in this state
  for the first time;
                           (iii)  be the sibling of a child who is
  eligible to apply under this section; or
                           (iv)  if the student attends a nonpublic
  school:
                                 (a)  qualify as a student who is not
  counted toward a public school's average daily attendance during
  the year in which the student receives the scholarship or
  educational expense assistance to attend the school, except as
  provided by Subsection (f); and
                                 (b)  be located in a county with a
  population greater than 50,000; or
               (2)  the student must have previously qualified under
  Subdivision (1).
         (a-1)  Notwithstanding Subsection (a), a school district
  located in a county described by that subsection may vote at a
  general election to allow students to participate in the tax credit
  scholarship program described by this subchapter.
         (b)  In addition to the students eligible under Subsection
  (a), a student is eligible to apply for assistance from a certified
  educational assistance organization under this subchapter if the
  student:
               (1)  is in kindergarten through grade 12 and eligible
  under Section 29.003, Education Code, to participate in a school
  district's special education program; and
               (2)  has an individualized education program under
  Section 29.005, Education Code.
         (c)  A school district shall provide written notice of the
  availability of assistance under this subchapter to the parent of a
  student who is eligible to apply for assistance under Subsection
  (b).  The notice under this subsection must inform the parent that a
  qualifying school is not subject to laws regarding the provision of
  education services in the same manner as a public school, and a
  student with disabilities attending a qualifying school may not
  receive the services a student with disabilities attending a public
  school is entitled to receive under federal and state law. The
  notice must provide information regarding rights a student with
  disabilities is entitled to under federal and state law if the
  student attends a public school, including:
               (1)  rights provided under the Individuals with
  Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
  including:
                     (A)  an individualized education program;
                     (B)  education services provided in the least
  restrictive environment;
                     (C)  instruction from certified teachers;
                     (D)  due process hearings to ensure proper and
  full implementation of an individualized education program;
                     (E)  transition and planning services; and
                     (F)  supplementary aids and services;
               (2)  rights provided under Subchapter A, Chapter 29,
  Education Code; and
               (3)  other rights provided under federal or state law
  to a student with a disability who attends a public school.
         (d)  A student who establishes eligibility under Subsection
  (b) may continue to receive assistance under this subchapter until
  the earlier of the date the student graduates from high school or
  the student's 22nd birthday.
         (e)  A certified educational assistance organization shall
  award scholarships and educational expense assistance to eligible
  students who apply in accordance with this subchapter.
         (f)  A student who receives a scholarship under this
  subchapter is included in the average daily attendance of the
  school district the student would otherwise attend for purposes of
  determining if the district's revenue levels exceed the district's
  entitlement under Section 48.257, Education Code.
         Sec. 171.707.  CREDIT FOR CONTRIBUTIONS.  (a) A taxable
  entity may apply for a credit under this subchapter only for money
  contributed to a certified educational assistance organization and
  designated for scholarships or educational expense assistance for
  eligible students.
         (b)  A taxable entity may not apply for a credit under this
  subchapter for a contribution made to a certified educational
  assistance organization if:
               (1)  the taxable entity requires that the contribution
  benefit a particular person or school; or
               (2)  the contribution is designated to provide a
  scholarship or educational expense assistance for a taxable entity
  employee or for a spouse or dependent of a taxable entity employee.
         (c)  An entity shall notify a certified educational
  assistance organization in writing when the entity makes a
  contribution if the entity may apply for a tax credit under this
  subchapter or Chapter 230, Insurance Code, for the contribution. An
  entity may not apply for a tax credit for the contribution unless
  the entity provides the notice at the time the contribution is made.
  The certified educational assistance organization shall indicate
  on the receipt provided under Section 171.702(b)(1)(F) that the
  entity provided notice under this subsection.
         Sec. 171.708.  LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL
  EXPENSE ASSISTANCE. (a) Except as provided by Subsection (b), the
  maximum scholarship amount a certified educational assistance
  organization may award to a student under this subchapter using
  money contributed by an entity that provides notice under Section
  171.707(c) that the entity may apply for a tax credit for the
  contribution may not exceed 75 percent of the state average
  maintenance and operations expenditures per student in average
  daily attendance.
         (b)  The maximum scholarship amount under Subsection (a) may
  not exceed 50 percent of the state average maintenance and
  operations expenditures per student in average daily attendance if
  the student receiving the scholarship resides in a household with
  income greater than 175 percent of 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. This subsection
  does not apply to a student who is eligible for assistance under
  Section 171.706(b) or (d).
         (c)  The maximum educational expense assistance a certified
  educational assistance organization may award to a student under
  this subchapter using money contributed by an entity that provides
  notice under Section 171.707(c) that the entity may apply for a tax
  credit for the contribution may not exceed $500 for the 2022 state
  fiscal year, increased by five percent each subsequent year.
         Sec. 171.709.  AMOUNTS; LIMITATION ON TOTAL CREDITS.  (a)
  Subject to Subsections (b) and (c), the amount of a taxable entity's
  credit is equal to the lesser of the amount of the qualifying
  contributions made by the taxable entity during the period covered
  by the report or 50 percent of the taxable entity's tax liability
  under this chapter for the report.
         (b)  For the 2022 state fiscal year, the total amount of tax
  credits that may be awarded under this subchapter and Chapter 230,
  Insurance Code, may not exceed $100 million. For each subsequent
  state fiscal year, the total amount of tax credits that may be
  awarded is an amount equal to 110 percent of the total amount of tax
  credits that may be awarded in the previous state fiscal year.
         (c)  The comptroller by rule shall prescribe procedures by
  which the comptroller may allocate credits under this subchapter.
  The procedures must provide that credits are allocated first to
  taxable entities that received preliminary approval for a credit
  under Section 171.710 and that apply under Section 171.711.  The
  procedures must provide that any remaining credits are allocated to
  taxable entities that apply under Section 171.711 on a first-come,
  first-served basis, based on the date the contribution was
  initially made.
         (d)  The comptroller may require a taxable entity to notify
  the comptroller of the amount the taxable entity intends or expects
  to apply for under this subchapter before the beginning of a state
  fiscal year or at any other time required by the comptroller.
         Sec. 171.710.  PRELIMINARY APPROVAL FOR CREDIT. (a)  Before
  making a contribution to a certified educational assistance
  organization, a taxable entity may apply to the comptroller for
  preliminary approval of a credit under this subchapter for the
  contribution.
         (b)  A taxable entity must apply for preliminary approval on
  a form provided by the comptroller that includes the amount the
  taxable entity expects to contribute and any other information the
  comptroller requires.
         (c)  The comptroller shall grant preliminary approval for
  tax credits under this subchapter and Chapter 230, Insurance Code,
  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 subchapter 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 subchapter and Chapter 230,
  Insurance Code, does not exceed the amount provided by Section
  171.709(b).
         (e)  Final award of credit preliminarily approved under this
  section remains subject to the limitations under Section 171.709(a)
  and all other requirements of this subchapter.
         Sec. 171.711.  APPLICATION FOR CREDIT.  (a)  A taxable entity
  must apply for a credit under this subchapter on or with the report
  covering the period in which the contribution was made.
         (b)  The comptroller shall adopt a form for the application
  for the credit. A taxable entity must use this form in applying for
  the credit and submit with the application form each receipt
  provided under Section 171.702(b)(1)(F) that includes the
  information required by Section 171.707(c).
         (c)  Subject to Section 171.709(c), the comptroller may
  award a credit to a taxable entity that applies for the credit under
  Subsection (a) if the taxable entity is eligible for the credit and
  the credit is available under Section 171.709(b). The comptroller
  has broad discretion in determining whether to grant or deny an
  application for a credit.
         (d)  The comptroller shall notify a taxable entity in writing
  of the comptroller's decision to grant or deny the application
  under Subsection (a). If the comptroller denies a taxable entity's
  application, the comptroller shall include in the notice of denial
  the reasons for the comptroller's decision.
         (e)  If the comptroller denies a taxable entity's
  application under Subsection (a), the taxable 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 taxable entity does not request a reconsideration of the
  application on or before that date, the comptroller's decision is
  final.
         (f)  A taxable 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
  taxable 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 subchapter.
         Sec. 171.712.  RULES; PROCEDURES. (a) The comptroller
  shall adopt rules and procedures 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, a taxable entity that applies for a
  credit, and a state or local governmental entity, including a
  political subdivision, as necessary to implement, administer, and
  enforce this subchapter.
         Sec. 171.713.  ASSIGNMENT PROHIBITED; EXCEPTION. A taxable
  entity may not convey, assign, or transfer the credit allowed under
  this subchapter to another taxable entity unless all assets of the
  taxable entity are conveyed, assigned, or transferred in the same
  transaction.
         Sec. 171.714.  REVOCATION.  (a)  The comptroller shall
  revoke a certification provided under Section 171.702 if the
  comptroller finds that a certified educational assistance
  organization:
               (1)  is no longer eligible under Section 171.702; or
               (2)  intentionally and substantially violates this
  subchapter.
         (b)  The comptroller has broad discretion in determining
  whether to revoke a certification under Subsection (a).
         (c)  The comptroller shall notify a certified educational
  assistance organization in writing of the comptroller's decision to
  revoke the organization's certification. The comptroller shall
  include in the notice of revocation the reasons for the proposed
  revocation.
         (d)  If the comptroller notifies a certified educational
  assistance organization of the proposed revocation of the
  organization's certification, the organization may request in
  writing a reconsideration of the proposed revocation not later than
  the 10th day after the date the notice under Subsection (c) is
  received. If the organization does not request reconsideration on
  or before that date, the revocation is final.
         (e)  An organization that requests a reconsideration under
  Subsection (d) 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
  organization's request for reconsideration.
         (f)  The comptroller's reconsideration of a proposed
  revocation under this section is not a contested case under Chapter
  2001, Government Code. The comptroller's decision on a request for
  reconsideration of a proposed revocation is final and is not
  appealable.
         (g)  This section does not create a cause of action to
  contest a decision of the comptroller to revoke a certified
  educational assistance organization's certification under this
  subchapter.
         (h)  Revocation of a certification under this section does
  not affect the validity of a tax credit relating to a contribution
  made before the date of revocation.
         Sec. 171.715.  REPORT OF NET SAVINGS TO PUBLIC EDUCATION.
  (a) In this section, "net savings" means any positive difference in
  a state fiscal year between:
               (1)  the amount by which state spending on public
  education for that year is reduced as a result of students receiving
  scholarships and educational expense assistance from certified
  educational assistance organizations under this subchapter; and
               (2)  the amount by which state revenue derived from
  this chapter and Chapter 230, Insurance Code, is reduced as a result
  of tax credits under this subchapter and Chapter 230, Insurance
  Code.
         (b)  Not later than December 31 of each even-numbered year,
  the comptroller shall determine the amount of net savings for the
  previous state fiscal biennium and make available to the public a
  report of that amount of savings.
         Sec. 171.716.  NOTICE OF AVAILABILITY OF CREDIT. The
  comptroller shall provide notice of the availability of the credit
  under this subchapter on the comptroller's Internet website, in the
  instructions for franchise tax report forms, and in any notice sent
  to a taxable entity concerning the requirement to file a franchise
  tax report.
         SECTION 2.  Subtitle B, Title 3, Insurance Code, is amended
  by adding Chapter 230 to read as follows:
  CHAPTER 230.  CREDIT AGAINST PREMIUM TAXES FOR CERTAIN
  CONTRIBUTIONS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 230.001.  DEFINITIONS.  In this chapter:
               (1)  "Educational assistance organization" has the
  meaning assigned by Section 171.701, Tax 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 of the qualifying contributions
  made to a certified educational assistance organization during the
  period covered by the tax report or 50 percent of the entity's state
  premium tax liability for the report if the contributions and the
  organizations that received the contributions meet the
  requirements prescribed by Subchapter N, Chapter 171, Tax Code.
         (b)  For the 2022 state fiscal year, the total amount of tax
  credits that may be awarded under this chapter and Subchapter N,
  Chapter 171, Tax Code, may not exceed $100 million. For each
  subsequent state fiscal year, the total amount of tax credits that
  may be awarded is an amount equal to 110 percent of the total amount
  of tax credits that may be awarded in the previous state 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 a certified educational assistance
  organization, 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
  tax credits under this chapter and Subchapter N, Chapter 171, Tax
  Code, 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 tax credits
  preliminarily approved under this chapter and Subchapter N, Chapter
  171, Tax Code, 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 and submit with the application form each receipt provided
  under Section 171.702(b)(1)(F), Tax Code, that includes the
  information required by Section 171.707(c), Tax Code.
         (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. (a) The comptroller
  shall adopt rules and procedures to implement, administer, and
  enforce this chapter.
         (b)  A rule adopted under Subsection (a) is binding on an
  organization that applies for certification as an educational
  assistance organization, an entity that applies for a credit, and a
  state or local governmental entity, including a political
  subdivision, as necessary 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 3.  (a)  The constitutionality and other validity
  under the state or federal constitution of all or any part of
  Subchapter N, Chapter 171, Tax Code, 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 N, Chapter 171, Tax Code, 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 N,
  Chapter 171, Tax Code, 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 N,
  Chapter 171, Tax Code, 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 4.  An entity may apply for a credit under Subchapter
  N, Chapter 171, Tax Code, or Chapter 230, Insurance Code, as added
  by this Act, only for an expenditure made on or after the effective
  date of this Act.
         SECTION 5.  Not later than February 15, 2022, the
  comptroller of public accounts shall adopt rules as provided by
  Section 171.712(a), Tax Code, and Section 230.054(a), Insurance
  Code, as added by this Act.
         SECTION 6.  The comptroller of public accounts shall make
  the initial determination of net savings and report regarding that
  savings as required by Section 171.715, Tax Code, as added by this
  Act, not later than December 31, 2024, based on the state fiscal
  biennium ending August 31, 2023.
         SECTION 7.  This Act applies only to a report originally due
  on or after the effective date of this Act.
         SECTION 8.  This Act takes effect January 1, 2022.