By: Simmons H.B. No. 1335
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of an education savings account
program for certain children with special needs and other
educational disadvantages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 29, Education Code, is amended by adding
Subchapter J to read as follows:
SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
Sec. 29.351. DEFINITIONS. In this subchapter:
(1) "Account" means an education savings account
established under the program.
(2) "Child with a disability" means a child who is:
(A) eligible to participate in a school
district's special education program under Section 29.003; or
(B) covered by Section 504, Rehabilitation Act of
1973 (29 U.S.C. Section 794).
(3) "Curriculum" means a complete course of study for
a particular content area or grade level.
(4) "Financial institution" means a bank, credit
union, savings bank, or savings and loan association organized
under the laws of this state, the laws of another state, or federal
law that has its main office or a branch office in this state. The
term does not include any institution the deposits of which are not
insured by the Federal Deposit Insurance Corporation or the
National Credit Union Administration.
(5) "Parent" means a resident of this state who is a
natural or adoptive parent, managing or possessory conservator,
legal guardian, custodian, or other person with legal authority to
act on behalf of a child.
(6) "Postsecondary educational institution" means:
(A) an institution of higher education or a
private or independent institution of higher education as defined
by Section 61.003; or
(B) a career school or college as defined by
Section 132.001.
(7) "Program" means the education savings account
program established under this subchapter.
(8) "Program participant" means a child and a parent
of a child enrolled in the program.
Sec. 29.352. PURPOSES. The purposes of the education
savings account program are to:
(1) improve public schools and overall academic
performance;
(2) promote efficiency;
(3) promote and preserve the liberties and rights of
the people; and
(4) increase parental options.
Sec. 29.353. ESTABLISHMENT OF PROGRAM. (a) The
comptroller shall establish and administer an education savings
account program to provide funding for certain education-related
expenses of eligible children.
(b) The comptroller, with cooperation from the agency,
shall ensure that information about the program is readily
available to the public through various sources, including the
comptroller's Internet website. The comptroller shall make
information about the program available to parents of an eligible
child through the comptroller's Internet website.
Sec. 29.354. ELIGIBLE CHILD. (a) A child is eligible to
participate in the program if the child is eligible to attend a
public school under Section 25.001 and:
(1) is a child with a disability;
(2) is in the conservatorship of the Department of
Family and Protective Services;
(3) has been:
(A) on or after September 1, 2017, found by a
school district to be a victim of bullying, as defined by Section
37.0832; or
(B) found by a court or jury to have engaged in
truant conduct under Section 65.101, Family Code;
(4) has dropped out of school or is a student at risk
of dropping out of school, as defined by Section 29.081, other than
a student described by Section 29.081(d)(12);
(5) is a homeless child or youth as described by 42
U.S.C. Section 11434a; or
(6) has been, as determined by the comptroller, a
victim of an offense described by any of the following sections of
the Penal Code:
(A) Section 20A.02 (Trafficking of Persons);
(B) Section 20A.03 (Continuous Trafficking of
Persons);
(C) Section 21.02 (Continuous Sexual Abuse of
Young Child or Children);
(D) Section 21.11 (Indecency with a Child);
(E) Section 22.011 (Sexual Assault);
(F) Section 22.021 (Aggravated Sexual Assault);
or
(G) Section 43.05 (Compelling Prostitution).
(b) A child who establishes eligibility under this section
may participate in the program until the earliest of the following
dates:
(1) the date on which the child no longer meets the
eligibility requirements under Subsection (a);
(2) the date that is three months after the date on
which the child either:
(i) graduates from high school; or,
(ii) receives a high school equivalency
certificate under Education Code Section 7.111;
(3) the date on which the child enrolls in a public
school, including an open-enrollment charter school; or
(4) the date on which the child is declared ineligible
for the program by the comptroller under this subchapter.
(c) Notwithstanding Subsection (b), the comptroller shall
establish guidelines for, in the least disruptive manner possible:
(1) a child participating in the program to cease
participation and enroll in a public school, including an
open-enrollment charter school; and
(2) a child who previously participated in the program
and subsequently enrolled in a public school, including an
open-enrollment charter school, to resume participation in the
program.
Sec. 29.355. ENROLLMENT IN PROGRAM. (a) A parent of an
eligible child may enroll the child in the program for the following
school year.
(b) The comptroller shall by rule create an enrollment form
for the program and make the enrollment form readily available to
interested parents through various sources, including the
comptroller's Internet website.
(c) The comptroller shall work with the agency to include
necessary information in the enrollment form including resident
school district, last public school attended, information
necessary to identify the student in district and agency
information systems, and eligibility for free and reduced lunch.
(d) The comptroller shall provide to each parent who submits
an enrollment form a publication that describes the operation of
the program, including:
(1) expenses allowed under the program under Section
29.357;
(2) expense reporting requirements; and
(3) a description of the responsibilities of program
participants and the duties of the comptroller under this
subchapter.
Sec. 29.356. PARTICIPATION IN PROGRAM. (a) To receive
funding under the program, a parent of an eligible child must agree
to:
(1) spend funds received through the program only for
expenses allowed under Section 29.357;
(2) notify the comptroller if the child enrolls in a
public school, including an open-enrollment charter school, not
later than the 30th day after the date of enrollment; and
(3) inform the comptroller if the child graduates from
high school.
(b) The parent of a child participating in the program is
the trustee of the child's account.
(c) The comptroller shall provide annually to each program
participant the publication provided under Section 29.355(c).
Sec. 29.357. APPROVED EDUCATION-RELATED EXPENSES. (a)
Funds received under the program may be used only for the following
expenses incurred by a program participant:
(1) tuition and fees:
(A) at a private school accredited by an
organization that is recognized by the Texas Private School
Accreditation Commission;
(B) at a postsecondary educational institution
for courses eligible for the College Credit Program at Education
Code Sec. 28.009 for which the student may receive high school
credit based on the written agreement drawn up by the partner
institutions; or
(C) for an online educational course or program
through the State Virtual School Network as provided at Education
Code Chapter 30A for which the student may earn primary or secondary
school credit;
(2) the purchase of textbooks or other instructional
materials;
(3) payments for the purchase of a curriculum;
(4) fees for classes or other educational services
provided by a public school, if the classes or services do not
qualify the child to be included in the school's average daily
attendance;
(5) fees for services provided by a private tutor or
teaching service;
(6) for a child with a disability, fees for
educational therapies or services provided by a practitioner or
provider, only for fees that are not covered by any federal, state,
or local government benefits (including Medicaid and the
Children's Health Insurance Program) or by any private insurance
that the child is enrolled in at the time of receiving the
therapies or services;
(7) costs of computer hardware and software and other
technological devices which must have a clear ability to be used for
educational purposes, not to exceed in any year 10 percent of the
total amount paid to the program participant's account that year;
(8) fees for a nationally norm-referenced achievement
test or examination, an assessment instrument adopted by the agency
under Section 39.023, an advanced placement test or similar
examination, or any examination related to college or university
admission;
(9) contributions to a qualified tuition program
established for the child that meets the requirements of Section
529 or 530, Internal Revenue Code of 1986, not to exceed in any year
25 percent of the total amount paid to the program participant's
account that year; and
(10) fees for the management of the participant's
account charged by a financial institution.
(b) Expenses allowed under Subsection (a) do not include
expenses for:
(1) consumable supplies, including paper, pens,
pencils, folders, and notebooks;
(2) food; or
(3) before-school or after-school child care and child
care during school holidays and vacations.
(c) An education service provider or vendor of educational
products must provide a program participant with a receipt for each
expense allowed under Subsection (a) charged by the provider or
vendor to the participant.
(d) The content or religious nature of a product or service
may not be considered in determining whether a payment for the
product or service is an expense allowed under Subsection (a).
(e) A finding that a program participant used funds
distributed under the program to pay for an expense not allowed
under Subsection (a) does not affect the validity of any payment
made by the participant for an expense that is allowed under that
subsection.
Sec. 29.358. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
an eligible child as described in Section 29.354 shall receive each
year that the child participates in the program a payment from the
Foundation School Program to the child's account in an amount that
is equal to 90 percent of the greater of, presuming 100% attendance
rate:
(1) Funding the students would have generated in both
state and local funds at their resident district excluding
Subchapter C, Chapter 42 except for Sections 42.151, 42.152 and
42.160 which shall be based on funding factors for which the student
qualified from the most recent year in attendance at a public school
unless enrollment in the program under this subchapter indicates a
change in eligibility status for those funding sections; or
(2) Funding the student would have generated in both
state and local funds at their resident district excluding
Subchapter C, Chapter 42 except for Sections 42.151, 42.152 and
42.160 which shall be based on the average at the resident district
of each special allotment under Sections 42.151 and 42.152, for
which the student's enrollment in the program under this subchapter
indicates eligibility.
(b) If the child is eligible to participate based on more
than one group listed in Section 29.354(a), the payment under this
subsection is based on the group that would result in the greatest
payment amount.
(c) Any funds remaining in a child's account at the end of a
fiscal year are carried forward to the next fiscal year unless
another provision of this subchapter mandates the closure of the
account.
(d) The parent of a child participating in the program may
make payments for the expenses of educational programs, services,
and products not covered by funds in the child's account.
(e) A payment under the program may not be financed using
federal funds or money appropriated from the available school
fund.
Sec. 29.359. ADMINISTRATION OF ACCOUNTS. (a) The
comptroller may contract with one or more financial institutions to
establish and manage an account for each child participating in the
program. A program participant must be able to access the
participant's account by using a debit card or online or electronic
transfer payment service.
(b) The comptroller shall make quarterly payments to each
program participant's account in equal amounts on or before the
15th day of August, November, February, and May.
(c) The comptroller may deduct an amount from each quarterly
payment to a program participant's account to cover the
comptroller's cost of administering the program. The amount
deducted may not exceed three percent of the payment.
(d) Within the first month following the end of each fiscal
year, the comptroller shall reconcile payments made to and from all
accounts under the program.
(e) The comptroller shall coordinate as necessary to
calculate annually the savings to the state from the implementation
of the program.
(f) On the date on which a child ceases to participate in the
program for any reason, the child's account is closed and any
remaining funds are returned to the state for deposit in the
foundation school fund. This subsection does not affect a child's
eligibility to resume participation in the program.
(g) The comptroller may contract with a private entity to
administer all or any part of the program.
Sec. 29.360. RANDOM AUDITING OF ACCOUNTS. (a) The
comptroller shall randomly audit, or contract with a private entity
to randomly audit, accounts as necessary to ensure compliance with
applicable law and the requirements of the program.
(b) In auditing an account, the comptroller or private
entity may require that a program participant provide further
information and documentation regarding any payment from the
participant's account.
(c) The private entity shall report to the comptroller any
violation of this subchapter or other relevant law found by the
entity during an audit conducted under this section.
Sec. 29.361. SUSPENSION OF ACCOUNT. (a) The comptroller
shall suspend the account of a program participant who fails to
comply with applicable law or a requirement of the program,
including a requirement under Section 29.356(a), or who
substantially misuses funds received under the program.
(b) On suspension of an account under Subsection (a), the
comptroller shall notify the participant in writing that the
account has been suspended and that no further payments may be made
from the account. The notification must specify the grounds for the
suspension and state that the participant has 10 business days to
respond and take any corrective action required by the comptroller.
(c) On the expiration of the 10-day period under Subsection
(b), the comptroller shall:
(1) order permanent closure of the suspended account
and declare the participant ineligible for the program;
(2) order temporary reinstatement of the account,
conditioned on the performance of a specified action by the
participant; or
(3) order full reinstatement of the account.
(d) If a program participant's account is suspended or
closed under this section, the comptroller may recover funds that
were used for expenses not allowed under Section 29.357(a) from the
participant or the entity that received the funds.
Sec. 29.362. TUITION AND FEES; REFUND PROHIBITED. (a) An
education service provider may not charge a child participating in
the program an amount greater than the standard amount charged for
that service by the provider.
(b) An education service provider or a vendor of educational
products receiving funds distributed under the program may not in
any manner rebate, refund, or credit to or share with a program
participant, or any person on behalf of a participant, any program
funds paid or owed by the participant to the provider or vendor.
Sec. 29.363. REFERRAL TO ATTORNEY GENERAL. (a) If the
comptroller obtains evidence of fraudulent use of an account, the
comptroller may refer the case to the attorney general for
investigation.
(b) With the consent of the appropriate local county or
district attorney, the attorney general has concurrent
jurisdiction with the consenting local prosecutor to prosecute an
offense referred to the attorney general under Subsection (a).
Sec. 29.364. PROVIDER ACCOUNTABILITY. (a) A private
school must be accredited by an organization that is recognized by
the Texas Private School Accreditation Commission to receive funds
distributed under the program.
(b) A private tutor or teaching service and a practitioner
or provider who provides educational therapies or services for a
child with a disability must be licensed or accredited by a regional
or national accrediting organization to receive funds distributed
under the program.
Sec. 29.365. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
AUTONOMY. (a) An education service provider or vendor of
educational products that receives funds distributed under the
program is not an agent of the state or federal government.
(b) Except as provided by this subchapter, the comptroller,
the agency, the State Board of Education, any other state agency, or
any school district may not:
(1) regulate the educational program of an education
service provider or vendor of educational products that receives
funds distributed under the program; or
(2) exercise control or supervision over a program
participant or an education service provider or vendor of
educational products that receives funds distributed under the
program.
(c) The program does not expand the regulatory authority of
the state or any school district to impose any additional
regulation on an education service provider or vendor of
educational products except those reasonably necessary to enforce
the program as provided by this subchapter.
(d) A private school may not be required to modify the
school's creed, practices, admissions policies, curriculum,
performance standards, or assessments to receive funds distributed
under the program.
(e) A private school voluntarily selected by a parent for
the parent's child to attend or a parent who homeschools the
parent's child, with or without governmental assistance, may not be
required to comply with any state law or rule governing the
applicable educational program that was not in effect on January 1,
2017.
(f) In any proceeding challenging a rule adopted by a state
agency or officer under this subchapter, the agency or officer has
the burden of proof to establish that the rule:
(1) is necessary to implement or enforce the program
as provided by this subchapter; and
(2) does not impose an undue burden on a program
participant or an education service provider or vendor of
educational products that receives or seeks to receive funds
distributed under the program.
Sec. 29.366. STUDENT RECORDS. On request by the parent of a
child participating in the program, the school district or
open-enrollment charter school that the child would otherwise
attend shall provide a copy of the child's school records possessed
by the district or school, if any, to the child's parent or, if
applicable, the private school the child attends.
Sec. 29.367. REPORTING NUMBER OF PARTICIPANTS. (a) Not
later than October 1 of each year, the comptroller shall notify the
commissioner and the Legislative Budget Board of the number of
eligible children likely to participate in the program,
disaggregated by the school district or open-enrollment charter
school the eligible children would otherwise attend.
(b) Not later than March 1 of each year, the comptroller
shall provide final information to the commissioner and the
Legislative Budget Board regarding the number of children
participating in the program, disaggregated in the same manner as
the initial information under Subsection (a).
Sec. 29.368. ANNUAL SURVEY. The comptroller may conduct an
annual parental satisfaction survey that asks each parent of a
child participating in the program to express:
(1) the parent's overall level of satisfaction with
the program; and
(2) the parent's opinion on specified topics and
issues relevant to the effectiveness of the program.
Sec. 29.369. GIFTS, GRANTS, AND DONATIONS. The comptroller
may solicit and accept gifts, grants, and donations from any public
or private source for any expenses related to the initial
implementation or administration of the program.
Sec. 29.370. AGENCY COLLECTION OF CERTAIN INFORMATION. (a)
The agency shall collect and maintain for each group described by
Section 29.354(a) information regarding:
(1) the number of students in that group enrolled at a
school district; and
(2) the statewide average school district entitlement
amount under Chapter 42 for a student in that group.
(b) The agency shall make available to the comptroller the
information collected and maintained under Subsection (a).
(c) The agency may collaborate with any relevant state
agency or other entity in carrying out the agency's duties under
this section.
(d) The commissioner may adopt rules as necessary to
implement this section.
Sec. 29.371. RULES. The comptroller shall adopt rules as
necessary to implement this subchapter, including:
(1) rules regarding expense reporting requirements
for program participants; and
(2) rules for implementing this subchapter in a manner
that ensures compliance with federal law regarding confidentiality
of student educational information, including the Family
Educational Rights and Privacy Act of 1974 (20 U.S.C. Section
1232g).
SECTION 2. Section 42.253, Education Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) Notwithstanding Subsection (b), the commissioner
shall adjust enrollment estimates and entitlement for each school
district for each school year based on information provided by the
comptroller under Section 29.367. This subsection expires
September 1, 2020.
SECTION 3. Section 58.106(a), Family Code, is amended to
read as follows:
(a) Except as otherwise provided by this section,
information contained in the juvenile justice information system is
confidential information for the use of the department and may not
be disseminated by the department except:
(1) with the permission of the juvenile offender, to
military personnel of this state or the United States;
(2) to a criminal justice agency as defined by Section
411.082, Government Code;
(3) to a noncriminal justice agency authorized by
federal statute or federal executive order to receive juvenile
justice record information;
(4) to a juvenile justice agency;
(5) to the Texas Juvenile Justice Department;
(6) to the office of independent ombudsman of the
Texas Juvenile Justice Department;
(7) to a district, county, justice, or municipal court
exercising jurisdiction over a juvenile; [and]
(8) to the Department of Family and Protective
Services as provided by Section 411.114, Government Code; and
(9) to the comptroller for the purpose of determining
a child's eligibility to participate in the education savings
account program under Subchapter J, Chapter 29, Education Code.
SECTION 4. Section 58.204(b), Family Code, is amended to
read as follows:
(b) On certification of records in a case under Section
58.203, the department may permit access to the information in the
juvenile justice information system relating to the case of an
individual only:
(1) by a criminal justice agency for a criminal
justice purpose, as those terms are defined by Section 411.082,
Government Code;
(2) for research purposes, by the Texas Juvenile
Justice Department;
(3) by the person who is the subject of the records on
an order from the juvenile court granting the petition filed by or
on behalf of the person who is the subject of the records;
(4) with the permission of the juvenile court at the
request of the person who is the subject of the records;
(5) with the permission of the juvenile court, by a
party to a civil suit if the person who is the subject of the records
has put facts relating to the person's records at issue in the suit;
[or]
(6) with the written permission of the individual, by
military personnel, including a recruiter, of this state or the
United States if the individual is an applicant for enlistment in
the armed forces; or
(7) by the comptroller for the purpose of determining
the individual's eligibility to participate in the education
savings account program under Subchapter J, Chapter 29, Education
Code.
SECTION 5. Section 65.202, Family Code, is amended to read
as follows:
Sec. 65.202. CONFIDENTIALITY OF RECORDS. Records and files
created under this chapter may be disclosed only to:
(1) the judge of the truancy court, the truant conduct
prosecutor, and the staff of the judge and prosecutor;
(2) the child or an attorney for the child;
(3) a governmental agency if the disclosure is
required or authorized by law;
(4) a person or entity to whom the child is referred
for treatment or services if the agency or institution disclosing
the information has entered into a written confidentiality
agreement with the person or entity regarding the protection of the
disclosed information;
(5) the Texas Department of Criminal Justice and the
Texas Juvenile Justice Department for the purpose of maintaining
statistical records of recidivism and for diagnosis and
classification;
(6) the agency; [or]
(7) the comptroller for the purpose of determining a
child's eligibility to participate in the education savings account
program under Subchapter J, Chapter 29, Education Code; or
(8) with leave of the truancy court, any other person,
agency, or institution having a legitimate interest in the
proceeding or in the work of the court.
SECTION 6. Section 411.109, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) The comptroller is entitled to obtain from the
department criminal history record information maintained by the
department that relates to a child for the purpose of determining
the child's eligibility to participate in the education savings
account program under Subchapter J, Chapter 29, Education Code.
SECTION 7. This Act applies beginning with the 2017-2018
school year.
SECTION 8. Not later than 45 days after the effective date
of this Act, the comptroller of public accounts shall adopt rules
necessary to implement the education savings account program under
Subchapter J, Chapter 29, Education Code, as added by this Act.
SECTION 9. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.