By: Taylor of GalvestonBettencourt, Campbell S.B. No. 4
Bettencourt, Campbell
A BILL TO BE ENTITLED
AN ACT
relating to school choice programs for certain students eligible to
attend public school.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. SCHOOL CHOICE PROGRAM: EDUCATION TUITION GRANTS
SECTION 1.01. Chapter 42, Education Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. EDUCATION TUITION GRANTS
Sec. 42.501. EDUCATION TUITION GRANT PROGRAM. (a) In this
section, "eligible student" means a school-age child who resides in
the state and who:
(1) is entering kindergarten or first grade;
(2) is in foster care;
(3) is in institutional care; or
(4) has a household income not greater than 150
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.
(b) From funds appropriated for that purpose, not to exceed
$50 million each state fiscal year, the commissioner by rule shall
establish an education tuition grant program under which grants are
awarded to the parents or legal guardians of eligible students to be
used to pay the costs of attending a private school.
(c) A parent or legal guardian of an eligible student may
receive a grant from the state to reimburse the parent or guardian
for the tuition paid for the enrollment of the eligible student at a
private school in an amount that is the lesser of:
(1) the tuition paid; or
(2) 75 percent of the state average maintenance and
operations expenditures per student.
(d) Money from the available school fund and federal funds
may not be used for a grant under this section.
(e) A private school voluntarily selected by a parent for
the parent's child to attend, with or without governmental
assistance, may not be required to comply with any state law or rule
governing the school's educational program that was not in effect
on January 1, 2015.
(f) The commissioner shall adopt rules as necessary to
administer this section.
ARTICLE 2. SCHOOL CHOICE PROGRAM: TAX CREDITS FOR CERTAIN
CONTRIBUTIONS
SECTION 2.01. Chapter 171, Tax Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN
EDUCATIONAL ASSISTANCE ORGANIZATIONS
Sec 171.551. Definitions. In this subchapter:
(1) "Agency" means the Texas Education Agency.
(2) "Commissioner" means the commissioner of
education.
(3) "Educational assistance organization" means an
organization with which the agency contracts to award scholarships
to eligible students.
Sec. 171.552. ELIGIBILITY REQUIREMENTS FOR EDUCATIONAL
ASSISTANCE ORGANIZATION. (a) The commissioner by rule shall
prescribe requirements that an organization must meet to be
eligible to enter into a contract with the agency to award
scholarships under this subchapter as an educational assistance
organization.
(b) The agency shall enter into a contract with an
organization that applies to the agency and that meets the
requirements under Subsection (a).
(c) An organization that enters into a contract with the
agency under this section is an educational assistance organization
and may award scholarships under this subchapter as provided by the
contract.
Sec. 171.553. NONPUBLIC SCHOOL REQUIREMENTS. The
commissioner by rule shall prescribe requirements that a nonpublic
school must meet for students enrolled in the school to be eligible
to receive scholarships from educational assistance organizations
under this subchapter.
Sec. 171.554. ELIGIBILITY OF STUDENTS. (a) To be eligible
to apply for assistance from an educational assistance organization
under this subchapter, a student must be a student in a public or
nonpublic elementary or secondary school located in this state and
must:
(1) be entering kindergarten or first grade;
(2) be in foster care;
(3) be in institutional care; or
(4) have a household income not greater than 150
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.
(b) The commissioner shall adopt rules necessary to
implement this section.
Sec. 171.555. CREDIT FOR CONTRIBUTIONS. A taxable entity
may apply for a credit under this subchapter only for money
contributed to an educational assistance organization and
designated for scholarships for eligible students.
Sec. 171.556. LIMIT ON AMOUNT OF SCHOLARSHIP. The maximum
scholarship amount an educational assistance organization may
award to a student under this subchapter may not exceed 75 percent
of the amount of funding equal to the statewide average amount to
which a school district would be entitled under the Foundation
School Program under Chapter 42, Education Code, for a student in
average daily attendance.
Sec. 171.557. AMOUNTS; LIMITATION ON TOTAL CREDITS.
(a) Subject to Subsections (b) and (c), the amount of a taxable
entity's annual credit is equal to the lesser of the amount of the
qualifying contributions made by the taxable entity or the taxable
entity's tax liability under this chapter after all other
applicable credits.
(b) The total amount of tax credits that may be awarded
under this subchapter and Chapter 230, Insurance Code, may not
exceed $50 million per state fiscal year.
(c) The comptroller by rule shall prescribe procedures by
which the comptroller may allocate credits under this subchapter.
Sec. 171.558. RULES; PROCEDURES. The comptroller shall
adopt rules and procedures to implement, administer, and enforce
this subchapter.
SECTION 2.02. 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 171.551, 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 and limitations provided by this chapter.
Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS.
(a) Subject to Subsection (b), the amount of an entity's credit is
equal to the lesser of the amount of the qualifying contributions
made to an educational assistance organization or the entity's
state premium tax liability after all other applicable credits if
the contributions and the organizations that received the
contributions meet the requirements prescribed by Subchapter K,
Chapter 171, Tax Code.
(b) The total amount of tax credits that may be awarded
under this chapter and Subchapter K, Chapter 171, Tax Code, may not
exceed $50 million per state fiscal year.
Sec. 230.053. RULES; PROCEDURES. The comptroller shall
adopt rules and procedures to implement, administer, and enforce
this chapter.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. This Act takes effect January 1, 2016.