Bill Text: TX SB2 | 2017 | 85th Legislature 1st Special Session | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the establishment of an education enhancement program for students with certain disabilities.
Spectrum: Moderate Partisan Bill (Republican 7-1)
Status: (Engrossed - Dead) 2017-08-09 - Committee report sent to Calendars [SB2 Detail]
Download: Texas-2017-SB2-Engrossed.html
Bill Title: Relating to the establishment of an education enhancement program for students with certain disabilities.
Spectrum: Moderate Partisan Bill (Republican 7-1)
Status: (Engrossed - Dead) 2017-08-09 - Committee report sent to Calendars [SB2 Detail]
Download: Texas-2017-SB2-Engrossed.html
By: Taylor of Galveston, et al. | S.B. No. 2 |
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relating to public school finance, including the establishment of a | ||
tax credit scholarship and educational expense assistance program. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Effective September 1, 2018, Section 12.106, | ||
Education Code, is amended by adding Subsections (d) and (e) to read | ||
as follows: | ||
(d) Subject to Subsection (e), in addition to other amounts | ||
provided by this section, a charter holder is entitled to receive, | ||
for the open-enrollment charter school, funding per student in | ||
average daily attendance in an amount equal to the guaranteed level | ||
of state and local funds per student per cent of tax effort under | ||
Section 46.032(a) multiplied by the lesser of: | ||
(1) the state average interest and sinking fund tax | ||
rate imposed by school districts for the current year; or | ||
(2) a rate that would result in a total amount to which | ||
charter schools are entitled under this subsection for the current | ||
year equal to $60 million. | ||
(e) A charter holder is entitled to receive funding under | ||
Subsection (d) only if the most recent overall performance rating | ||
assigned to the open-enrollment charter school under Subchapter C, | ||
Chapter 39, reflects at least acceptable performance. | ||
SECTION 2. Chapter 42, Education Code, is amended by adding | ||
Subchapter H to read as follows: | ||
SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM | ||
Sec. 42.451. FINANCIAL HARDSHIP GRANTS. (a) From amounts | ||
appropriated for this subchapter, the commissioner may administer a | ||
grant program that provides grants to school districts to defray | ||
financial hardships resulting from changes made to Chapter 41 and | ||
this chapter that apply after the 2016-2017 school year. | ||
(b) The commissioner shall award grants under this | ||
subchapter to districts as provided by Section 42.452. | ||
(c) Except as provided by Subsection (d), funding provided | ||
to a district under this subchapter is in addition to all other | ||
funding provided under Chapter 41 and this chapter. | ||
(d) A district is not eligible for funding under this | ||
subchapter for a school year if the district receives for that | ||
school year an adjustment of the district's taxable value of | ||
property under Section 42.2521. A district may decline an | ||
adjustment under Section 42.2521 to maintain eligibility for | ||
funding under this subchapter. | ||
(e) The commissioner may obtain additional information as | ||
needed from a district or other state or local agency to make | ||
determinations in awarding grants under this subchapter. | ||
Sec. 42.452. AWARD OF GRANTS; AMOUNT. (a) The | ||
commissioner shall award grants to school districts based on the | ||
following formula: | ||
HG = (PL-CL) X (TR) X (TAHG/TEHG) | ||
where: | ||
"HG" is the amount of a district's hardship grant; | ||
"PL" is the amount of funding under previous law to which a | ||
district would be entitled under Chapter 41 and this chapter as | ||
those chapters existed on January 1, 2017, determined using current | ||
school year data for the district; | ||
"CL" is the amount of current law funding under Chapter 41 and | ||
this chapter to which a district is entitled; | ||
"TR" is a district's maintenance and operations tax rate, as | ||
specified by the comptroller's most recent certified report; | ||
"TAHG" is the total funding available for grants under | ||
Section 42.456 for a school year; and | ||
"TEHG" is the sum of the combined amounts for all districts | ||
calculated by applying the formula (PL-CL) X (TR) for each | ||
district. | ||
(b) A school district's hardship grant awarded under this | ||
subchapter for a school year may not exceed the lesser of: | ||
(1) the amount equal to 10 percent of the total amount | ||
of funds available for grants under this subchapter for that school | ||
year; or | ||
(2) the amount by which "PL" exceeds "CL" for that | ||
district for that school year. | ||
(c) For purposes of calculating the formula under | ||
Subsection (a), the commissioner shall: | ||
(1) if the value of (PL-CL) for a school district | ||
results in a negative number, use zero for the value of (PL-CL); | ||
(2) if a school district's maintenance and operations | ||
tax rate ("TR") is greater than $1, use $1 for the value of "TR"; | ||
(3) use a maintenance and operations tax rate ("TR") | ||
of $1 for each open-enrollment charter school, each special-purpose | ||
school district established under Subchapter H, Chapter 11, and the | ||
South Texas Independent School District; and | ||
(4) if (TAHG/TEHG) equals a value greater than one, | ||
use a value of one for (TAHG/TEHG). | ||
(d) If funds remain available under this subchapter for a | ||
school year after determining initial grant amounts under | ||
Subsection (a), as adjusted to reflect the limits imposed by | ||
Subsection (b), the commissioner shall reapply the formula as | ||
necessary to award all available funds. | ||
(e) If the commissioner reapplies the formula in accordance | ||
with Subsection (d), a school district that was ineligible under | ||
Section 42.455 for a grant during the initial application of the | ||
formula for that school year is eligible to receive a grant as a | ||
result of the formula reapplication. | ||
Sec. 42.453. ELIGIBILITY OF OPEN-ENROLLMENT CHARTER | ||
SCHOOL. An open-enrollment charter school is eligible for a grant | ||
under this subchapter in the same manner as a school district. | ||
Sec. 42.454. REGIONAL EDUCATION SERVICE CENTERS AND COUNTY | ||
DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education | ||
service center or a county department of education is not eligible | ||
for a grant under this subchapter. | ||
Sec. 42.455. CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. Except | ||
as provided by Section 42.452(e), a school district is not eligible | ||
for a grant under this subchapter if for the 2015-2016 school year | ||
the district's expenditures per student in weighted average daily | ||
attendance, excluding bond debt service payments, capital outlays, | ||
and facilities acquisition and construction costs, exceeded an | ||
amount that is equal to 120 percent of the state average amount for | ||
that school year of expenditures per student in weighted average | ||
daily attendance, excluding bond debt service payments, capital | ||
outlays, and facilities acquisition and construction costs, as | ||
those amounts are determined by the commissioner. | ||
Sec. 42.456. FUNDING LIMIT. The amount of grants awarded by | ||
the commissioner under this subchapter may not exceed $100 million | ||
for the 2017-2018 school year or $50 million for the 2018-2019 | ||
school year. | ||
Sec. 42.457. NO ADJUSTMENT BASED ON REVISED DATA. The | ||
commissioner may not adjust the amount of a school district's grant | ||
under this subchapter based on revisions to the district's data | ||
received after a grant has been awarded. | ||
Sec. 42.458. RULES. The commissioner may adopt rules as | ||
necessary to administer this subchapter. | ||
Sec. 42.459. DETERMINATION FINAL. A determination by the | ||
commissioner under this subchapter is final and may not be | ||
appealed. | ||
Sec. 42.460. EXPIRATION. This subchapter expires September | ||
1, 2019. | ||
SECTION 3. Effective September 1, 2018, Section 46.032(a), | ||
Education Code, is amended to read as follows: | ||
(a) Each school district is guaranteed a specified amount | ||
per student in state and local funds for each cent of tax effort to | ||
pay the principal of and interest on eligible bonds. The amount of | ||
state support, subject only to the maximum amount under Section | ||
46.034, is determined by the formula: | ||
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100)) | ||
where: | ||
"EDA" is the amount of state funds to be allocated to the | ||
district for assistance with existing debt; | ||
"EDGL" is the dollar amount guaranteed level of state and | ||
local funds per student per cent of tax effort, which is the lesser | ||
of: | ||
(1) $40 [ |
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by appropriation; or | ||
(2) the amount that would result in a total additional | ||
amount of state funds under this subchapter for the current year | ||
equal to $60 million in excess of the state funds to which school | ||
districts would have been entitled under this section if the | ||
guaranteed level amount were $35; | ||
"ADA" is the number of students in average daily attendance, | ||
as determined under Section 42.005, in the district; | ||
"EDTR" is the existing debt tax rate of the district, which is | ||
determined by dividing the amount budgeted by the district for | ||
payment of eligible bonds by the quotient of the district's taxable | ||
value of property as determined under Subchapter M, Chapter 403, | ||
Government Code, or, if applicable, under Section 42.2521, divided | ||
by 100; and | ||
"DPV" is the district's taxable value of property as | ||
determined under Subchapter M, Chapter 403, Government Code, or, if | ||
applicable, under Section 42.2521. | ||
SECTION 4. Subtitle B, Title 3, Insurance Code, is amended | ||
by adding Chapter 230 to read as follows: | ||
CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO | ||
CERTAIN EDUCATIONAL ASSISTANCE ORGANIZATIONS | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 230.001. DEFINITIONS. In this chapter: | ||
(1) "Educational assistance organization" means an | ||
organization that: | ||
(A) has the ability according to the | ||
organization's charter to award scholarships to or pay educational | ||
expenses for eligible students in: | ||
(i) public elementary or secondary schools | ||
located in this state; or | ||
(ii) nonpublic elementary or secondary | ||
schools located in this state: | ||
(a) that meet the requirements of | ||
Section 230.052; | ||
(b) at which a student may fulfill | ||
this state's compulsory attendance requirements; and | ||
(c) that are not in violation of the | ||
federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.); | ||
and | ||
(B) uses part of its annual revenue for the | ||
purpose provided by Paragraph (A). | ||
(2) "State premium tax liability" means any liability | ||
incurred by an entity under Chapter 221, 222, or 224. | ||
(3) "Student with a disability" means a student who | ||
is: | ||
(A) eligible to participate in a school | ||
district's special education program under Section 29.003, | ||
Education Code; or | ||
(B) covered by Section 504, Rehabilitation Act of | ||
1973 (29 U.S.C. Section 794). | ||
Sec. 230.002. 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. | ||
SUBCHAPTER B. SCHOLARSHIP AND EDUCATIONAL EXPENSE ASSISTANCE | ||
PROGRAM | ||
Sec. 230.051. CERTIFICATION OF EDUCATIONAL ASSISTANCE | ||
ORGANIZATION. (a) An organization may apply to the comptroller | ||
for certification as a certified educational assistance | ||
organization during an application period provided by the | ||
comptroller. | ||
(b) To be eligible for certification, the organization: | ||
(1) must: | ||
(A) be exempt from federal tax under Section | ||
501(a) of the Internal Revenue Code of 1986 by being listed as an | ||
exempt organization in Section 501(c)(3) of that code; | ||
(B) be in good standing with the state; | ||
(C) be located in the state; | ||
(D) 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 | ||
chapter 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) award scholarships and assistance for | ||
qualifying educational expenses to eligible students who | ||
demonstrate the greatest financial and academic need; | ||
(F) agree to give 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 230.054(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; | ||
(I) disburse within two academic years of receipt | ||
contributions received from and designated by entities for | ||
scholarships or educational expense assistance under this chapter; | ||
and | ||
(J) establish comprehensive and transparent | ||
criteria for how the organization will: | ||
(i) select recipients of scholarships and | ||
educational expense assistance; and | ||
(ii) determine the amount of the | ||
scholarship and educational expense assistance awarded to each | ||
recipient; and | ||
(2) may not: | ||
(A) award all scholarships under this chapter 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 | ||
230.055(a) 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 notifies the organization under Section | ||
230.054(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 | ||
230.055(b), 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 notifies the organization under Section | ||
230.054(c) that the entity may apply for a tax credit for the | ||
contribution, including assistance for: | ||
(i) facility fees; | ||
(ii) instructional materials; | ||
(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 shall certify one organization as the | ||
primary certified educational assistance organization and one | ||
organization as the secondary certified educational assistance | ||
organization. The comptroller shall select the organizations to | ||
certify as the primary and secondary certified educational | ||
assistance organizations from among the organizations that apply | ||
under Subsection (a) and meet the requirements of Subsection (b). | ||
The comptroller has broad discretion in selecting the primary and | ||
secondary certified educational assistance organizations. | ||
(d) The comptroller shall notify all organizations that | ||
apply under Subsection (a) of the comptroller's selections under | ||
Subsection (c). | ||
(e) The comptroller shall attempt to maintain one primary | ||
and one secondary certified educational assistance organization at | ||
all times. The comptroller shall provide an application period | ||
under Subsection (a) as soon as practicable after the comptroller | ||
learns there is, or is likely to be, a vacancy for the primary or | ||
secondary certified educational assistance organization. | ||
(f) The comptroller's selections under Subsection (c) are | ||
final and are not appealable. | ||
Sec. 230.0511. PERFORMANCE OF CERTIFIED EDUCATIONAL | ||
ASSISTANCE ORGANIZATION POWERS AND DUTIES. (a) Except as provided | ||
by Subsection (b), the organization certified as the primary | ||
certified educational assistance organization shall perform the | ||
powers and duties assigned to the certified educational assistance | ||
organization under this chapter. | ||
(b) The organization certified as the secondary certified | ||
educational assistance organization shall perform the powers and | ||
duties assigned to the certified educational assistance | ||
organization under this chapter if: | ||
(1) the organization certified as the primary | ||
certified educational assistance organization has its | ||
certification revoked; or | ||
(2) the comptroller otherwise determines the | ||
organization certified as the primary educational assistance | ||
organization is unable to perform the powers and duties assigned to | ||
the certified educational assistance organization under this | ||
chapter. | ||
(c) A reference in this chapter or other law to the | ||
certified educational assistance organization means the | ||
organization performing the powers and duties of the certified | ||
educational assistance organization under Subsection (a) or (b). | ||
Sec. 230.0512. ALLOCATION OF MONEY DESIGNATED FOR | ||
SCHOLARSHIPS OR EDUCATIONAL EXPENSE ASSISTANCE. Of the amount | ||
required to be allocated as provided by Section 230.051(b)(1)(D), | ||
the certified educational assistance organization shall use: | ||
(1) at least 80 percent to award scholarships as | ||
described by Section 230.055(a); and | ||
(2) not more than 20 percent to award educational | ||
expense assistance as described by Section 230.055(b). | ||
Sec. 230.052. NONPUBLIC SCHOOL REQUIREMENTS. The certified | ||
educational assistance organization may not award scholarships to | ||
or pay educational expenses for eligible students enrolled in a | ||
nonpublic school unless 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 the certified | ||
educational assistance organization, including evidence of: | ||
(1) 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; | ||
(4) policy statements regarding: | ||
(A) admissions; | ||
(B) curriculum; | ||
(C) safety; | ||
(D) food service inspection; and | ||
(E) student to teacher ratios; and | ||
(5) the school's agreement that students who receive | ||
scholarships under this chapter are eligible to receive any | ||
scholarships offered by the school to the same extent as other | ||
students. | ||
Sec. 230.053. ELIGIBILITY OF STUDENTS FOR SCHOLARSHIPS; | ||
INCLUSION IN CALCULATION OF EQUALIZED WEALTH LEVEL. (a) A student | ||
is eligible to apply for a scholarship from the certified | ||
educational assistance organization under this chapter if the | ||
student: | ||
(1) is a student with a disability; | ||
(2) is eligible to attend a public school under | ||
Section 25.001, Education Code; | ||
(3) was enrolled in a public school in this state | ||
during the entire preceding academic year; and | ||
(4) will attend a nonpublic school in this state | ||
during the entire academic year for which the scholarship is | ||
awarded. | ||
(b) A student who establishes eligibility under this | ||
section may apply for a scholarship from the certified educational | ||
assistance organization under this chapter for each academic year | ||
until the student: | ||
(1) graduates from high school; | ||
(2) is no longer eligible to attend a public school | ||
under Section 25.001, Education Code; or | ||
(3) enrolls in a public school, including an | ||
open-enrollment charter school. | ||
(c) Notwithstanding Subsection (b), the comptroller shall | ||
establish guidelines for, in the least disruptive manner possible: | ||
(1) a student who has previously received a | ||
scholarship to enroll in a public school, including an | ||
open-enrollment charter school; and | ||
(2) a student who previously received a scholarship | ||
and subsequently enrolled in a public school, including an | ||
open-enrollment charter school, to reestablish eligibility for a | ||
scholarship. | ||
(d) The certified educational assistance organization shall | ||
award scholarships to eligible students who apply in accordance | ||
with this chapter to the extent money is available for that purpose. | ||
(e) For the first year a student receives a scholarship | ||
under this chapter to attend a nonpublic school, the student is | ||
included in the weighted average daily attendance of the school | ||
district the student would otherwise attend for purposes of | ||
determining the district's equalized wealth level under Chapter 41, | ||
Education Code. | ||
(f) A nonpublic school may not enroll a student who is | ||
awarded a scholarship under this chapter unless the nonpublic | ||
school: | ||
(1) provides to the student's parent a written notice, | ||
in the primary language spoken by the parent, describing all | ||
expenses other than tuition required for the student to attend the | ||
nonpublic school; and | ||
(2) receives from the parent a signed copy of the | ||
notice under Subdivision (1). | ||
Sec. 230.0531. ELIGIBILITY OF STUDENTS FOR EDUCATIONAL | ||
EXPENSE ASSISTANCE. (a) A student is eligible to apply for | ||
educational expense assistance from the certified educational | ||
assistance organization under this chapter for an academic year if | ||
the student: | ||
(1) is a student with a disability; and | ||
(2) will attend a public school in this state during | ||
the entire academic year for which the educational expense | ||
assistance is awarded. | ||
(b) A student who establishes eligibility under this | ||
section may apply for educational expense assistance from the | ||
certified educational assistance organization under this chapter | ||
for each academic year the student attends a public school in this | ||
state. | ||
(c) The certified educational assistance organization shall | ||
award educational expense assistance to eligible students who apply | ||
in accordance with this chapter to the extent money is available for | ||
that purpose. | ||
Sec. 230.0532. NOTICE TO CERTAIN PARENTS. A school | ||
district shall provide written notice of the availability of | ||
assistance under this chapter to the parent of a student who is | ||
eligible to apply for a scholarship to attend a nonpublic school | ||
under Section 230.053. The notice under this section must inform | ||
the parent that a nonpublic school is not subject to laws regarding | ||
the provision of education services in the same manner as a public | ||
school, and a student with a disability attending a nonpublic | ||
school may not receive the services a student with a disability | ||
attending a public school is entitled to receive under federal and | ||
state law. The notice must provide information regarding rights to | ||
which a student with a disability is entitled 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. | ||
Sec. 230.054. CREDIT FOR CONTRIBUTIONS. (a) An entity may | ||
apply for a credit under this chapter only for money contributed to | ||
the certified educational assistance organization and designated | ||
for scholarships or educational expense assistance for eligible | ||
students. | ||
(b) An entity may not apply for a credit under this chapter | ||
for a contribution made to the certified educational assistance | ||
organization if: | ||
(1) the 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 an entity | ||
employee or for a spouse or dependent of an entity employee. | ||
(c) An entity shall notify the certified educational | ||
assistance organization in writing when the entity makes a | ||
contribution if the entity may apply for a tax credit under this | ||
chapter for the contribution. An entity may not apply for a credit | ||
for the contribution unless the entity provides the notification at | ||
the time the contribution is made. The certified educational | ||
assistance organization shall indicate on the receipt provided | ||
under Section 230.051(b)(1)(F) that the entity made the | ||
notification under this subsection. | ||
Sec. 230.055. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL | ||
EXPENSE ASSISTANCE. (a) The maximum scholarship amount the | ||
certified educational assistance organization may award to a | ||
student under this chapter for an academic year using money | ||
contributed by an entity that notifies the organization under | ||
Section 230.054(c) that the entity may apply for a tax credit for | ||
the contribution may not exceed the lesser of: | ||
(1) $10,000; and | ||
(2) the full tuition amount for the nonpublic school | ||
the student attends. | ||
(b) The maximum educational expense assistance the | ||
certified educational assistance organization may award to a | ||
student under this chapter using money contributed by an entity | ||
that notifies the organization under Section 230.054(c) that the | ||
entity may apply for a tax credit for the contribution may not | ||
exceed $500 for the 2019 state fiscal year, increased by five | ||
percent each subsequent year. | ||
Sec. 230.056. REVOCATION. (a) The comptroller shall | ||
revoke a certification provided under Section 230.051 if the | ||
comptroller finds that a certified educational assistance | ||
organization: | ||
(1) is no longer eligible under Section 230.051; or | ||
(2) intentionally and substantially violates this | ||
chapter. | ||
(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. If the comptroller | ||
revokes an organization's certification, the comptroller shall | ||
include in the notice of revocation the reasons for the revocation. | ||
(d) If the comptroller revokes a certified educational | ||
assistance organization's certification under Subsection (a), the | ||
organization may request in writing a reconsideration of the | ||
revocation not later than the 10th day after the date of the notice | ||
under Subsection (c) or 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 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 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 | ||
chapter. | ||
(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. 230.057. 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 the certified | ||
educational assistance organization under this chapter; and | ||
(2) the amount by which state revenue derived from | ||
Chapters 221, 222, and 224 is reduced as a result of tax credits | ||
under this chapter. | ||
(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. | ||
SUBCHAPTER C. CREDIT | ||
Sec. 230.101. CREDIT. An entity may apply for a credit | ||
against the entity's state premium tax liability in the amount and | ||
under the conditions and limitations provided by this chapter. The | ||
comptroller shall award credits as provided by Section 230.103. | ||
Sec. 230.102. 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 the certified educational assistance | ||
organization or 50 percent of the entity's state premium tax | ||
liability. | ||
(b) The total amount of tax credits that may be awarded | ||
under this chapter for a state fiscal year may not exceed $75 | ||
million. | ||
(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 first allocated to | ||
entities that were granted preliminary approval for a credit under | ||
Section 230.1025 in the amount that was preliminarily approved. | ||
The procedures must provide that any remaining credits are | ||
allocated 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. 230.1025. PRELIMINARY APPROVAL FOR CREDIT. | ||
(a) Before making a contribution to the 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 of a | ||
credit on a form provided by the comptroller that includes the | ||
amount the entity expects to contribute and any other information | ||
required by the comptroller. | ||
(c) The comptroller shall grant preliminary approval for | ||
credits under this chapter on a first-come, first-served basis, | ||
based on the date the application for preliminary approval is | ||
received by the comptroller. | ||
(d) The comptroller shall grant preliminary approval for a | ||
credit under this chapter if the total amount of credits | ||
preliminarily approved under this chapter does not exceed the | ||
amount provided by Section 230.102(b). | ||
(e) A credit for which the comptroller grants preliminary | ||
approval remains subject to the limitation under Section 230.102(a) | ||
and any other limitations prescribed by this chapter. | ||
Sec. 230.103. APPLICATION FOR CREDIT. (a) An entity must | ||
apply for a credit under this chapter on or with the tax return for | ||
the taxable year and submit with the application each receipt | ||
issued under Section 230.051(b)(1)(F) that includes the | ||
information required by Section 230.054(c). | ||
(b) The comptroller shall adopt a form for the application | ||
for the credit. An entity must use this form in applying for the | ||
credit. | ||
(c) 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 | ||
230.102(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 of the | ||
notice under Subsection (d). 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. 230.104. 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. 230.105. 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 5. (a) The constitutionality and other validity | ||
under the state or federal constitution of all or any part of | ||
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 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 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 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 6. An entity may apply for a credit under Chapter | ||
230, Insurance Code, as added by this Act, only for an expenditure | ||
made on or after September 1, 2018. | ||
SECTION 7. The comptroller of public accounts shall make | ||
the initial determination of net savings and report regarding that | ||
savings as required by Section 230.057, Insurance Code, as added by | ||
this Act, not later than December 31, 2020, based on the state | ||
fiscal biennium ending August 31, 2019. | ||
SECTION 8. Chapter 230, Insurance Code, as added by this | ||
Act, applies only to a report originally due on or after September | ||
1, 2018. | ||
SECTION 9. (a) The amount of $270,000,000 of the | ||
unencumbered appropriations from the general revenue fund for the | ||
state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts | ||
of the 85th Legislature, Regular Session, 2017 (the General | ||
Appropriations Act), to the Health and Human Services Commission is | ||
transferred to the Texas Education Agency to be used by the agency | ||
during that state fiscal biennium as follows: | ||
(1) $150,000,000 is allocated to fund financial | ||
hardship grants under Subchapter H, Chapter 42, Education Code, as | ||
added by this Act; | ||
(2) $60,000,000 is allocated to fund payments to | ||
open-enrollment charter schools under Section 12.106(d), Education | ||
Code, as added by this Act; and | ||
(3) $60,000,000 is allocated for the existing debt | ||
allotment under Section 46.032, Education Code, as amended by this | ||
Act. | ||
(b) The Health and Human Services Commission shall identify | ||
the strategies and objectives out of which the transfer under | ||
Subsection (a) of this section is to be made. | ||
SECTION 10. (a) Except as otherwise provided by this Act: | ||
(1) 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; and | ||
(2) if this Act does not receive the vote necessary for | ||
immediate effect, this Act takes effect December 1, 2017. | ||
(b) Chapter 230, Insurance Code, as added by this Act, takes | ||
effect September 1, 2018. |