Texas 2017 - 85th Regular

Texas House Bill HB1335 Compare Versions

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11 By: Simmons H.B. No. 1335
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44 A BILL TO BE ENTITLED
55 AN ACT
66 relating to the establishment of an education savings account
77 program for certain children with special needs and other
88 educational disadvantages.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Chapter 29, Education Code, is amended by adding
1111 Subchapter J to read as follows:
1212 SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
1313 Sec. 29.351. DEFINITIONS. In this subchapter:
1414 (1) "Account" means an education savings account
1515 established under the program.
1616 (2) "Child with a disability" means a child who is:
1717 (A) eligible to participate in a school
1818 district's special education program under Section 29.003; or
1919 (B) covered by Section 504, Rehabilitation Act of
2020 1973 (29 U.S.C. Section 794).
2121 (3) "Curriculum" means a complete course of study for
2222 a particular content area or grade level.
2323 (4) "Financial institution" means a bank, credit
2424 union, savings bank, or savings and loan association organized
2525 under the laws of this state, the laws of another state, or federal
2626 law that has its main office or a branch office in this state. The
2727 term does not include any institution the deposits of which are not
2828 insured by the Federal Deposit Insurance Corporation or the
2929 National Credit Union Administration.
3030 (5) "Parent" means a resident of this state who is a
3131 natural or adoptive parent, managing or possessory conservator,
3232 legal guardian, custodian, or other person with legal authority to
3333 act on behalf of a child.
3434 (6) "Postsecondary educational institution" means:
3535 (A) an institution of higher education or a
3636 private or independent institution of higher education as defined
3737 by Section 61.003; or
3838 (B) a career school or college as defined by
3939 Section 132.001.
4040 (7) "Program" means the education savings account
4141 program established under this subchapter.
4242 (8) "Program participant" means a child and a parent
4343 of a child enrolled in the program.
4444 Sec. 29.352. PURPOSES. The purposes of the education
4545 savings account program are to:
4646 (1) improve public schools and overall academic
4747 performance;
4848 (2) promote efficiency;
4949 (3) promote and preserve the liberties and rights of
5050 the people; and
5151 (4) increase parental options.
5252 Sec. 29.353. ESTABLISHMENT OF PROGRAM. (a) The
5353 comptroller shall establish and administer an education savings
5454 account program to provide funding for certain education-related
5555 expenses of eligible children.
5656 (b) The comptroller, with cooperation from the agency,
5757 shall ensure that information about the program is readily
5858 available to the public through various sources, including the
5959 comptroller's Internet website. The comptroller shall make
6060 information about the program available to parents of an eligible
6161 child through the comptroller's Internet website.
6262 Sec. 29.354. ELIGIBLE CHILD. (a) A child is eligible to
6363 participate in the program if the child is eligible to attend a
6464 public school under Section 25.001 and:
6565 (1) is a child with a disability;
6666 (2) is in the conservatorship of the Department of
6767 Family and Protective Services;
6868 (3) has been:
6969 (A) on or after September 1, 2017, found by a
7070 school district to be a victim of bullying, as defined by Section
7171 37.0832; or
7272 (B) found by a court or jury to have engaged in
7373 truant conduct under Section 65.101, Family Code;
7474 (4) has dropped out of school or is a student at risk
7575 of dropping out of school, as defined by Section 29.081, other than
7676 a student described by Section 29.081(d)(12);
7777 (5) is a homeless child or youth as described by 42
7878 U.S.C. Section 11434a; or
7979 (6) has been, as determined by the comptroller, a
8080 victim of an offense described by any of the following sections of
8181 the Penal Code:
8282 (A) Section 20A.02 (Trafficking of Persons);
8383 (B) Section 20A.03 (Continuous Trafficking of
8484 Persons);
8585 (C) Section 21.02 (Continuous Sexual Abuse of
8686 Young Child or Children);
8787 (D) Section 21.11 (Indecency with a Child);
8888 (E) Section 22.011 (Sexual Assault);
8989 (F) Section 22.021 (Aggravated Sexual Assault);
9090 or
9191 (G) Section 43.05 (Compelling Prostitution).
9292 (b) A child who establishes eligibility under this section
9393 may participate in the program until the earliest of the following
9494 dates:
9595 (1) the date on which the child no longer meets the
9696 eligibility requirements under Subsection (a);
9797 (2) the date that is three months after the date on
9898 which the child either:
9999 (i) graduates from high school; or,
100100 (ii) receives a high school equivalency
101101 certificate under Education Code Section 7.111;
102102 (3) the date on which the child enrolls in a public
103103 school, including an open-enrollment charter school; or
104104 (4) the date on which the child is declared ineligible
105105 for the program by the comptroller under this subchapter.
106106 (c) Notwithstanding Subsection (b), the comptroller shall
107107 establish guidelines for, in the least disruptive manner possible:
108108 (1) a child participating in the program to cease
109109 participation and enroll in a public school, including an
110110 open-enrollment charter school; and
111111 (2) a child who previously participated in the program
112112 and subsequently enrolled in a public school, including an
113113 open-enrollment charter school, to resume participation in the
114114 program.
115115 Sec. 29.355. ENROLLMENT IN PROGRAM. (a) A parent of an
116116 eligible child may enroll the child in the program for the following
117117 school year.
118118 (b) The comptroller shall by rule create an enrollment form
119119 for the program and make the enrollment form readily available to
120120 interested parents through various sources, including the
121121 comptroller's Internet website.
122122 (c) The comptroller shall work with the agency to include
123123 necessary information in the enrollment form including resident
124124 school district, last public school attended, information
125125 necessary to identify the student in district and agency
126126 information systems, and eligibility for free and reduced lunch.
127127 (d) The comptroller shall provide to each parent who submits
128128 an enrollment form a publication that describes the operation of
129129 the program, including:
130130 (1) expenses allowed under the program under Section
131131 29.357;
132132 (2) expense reporting requirements; and
133133 (3) a description of the responsibilities of program
134134 participants and the duties of the comptroller under this
135135 subchapter.
136136 Sec. 29.356. PARTICIPATION IN PROGRAM. (a) To receive
137137 funding under the program, a parent of an eligible child must agree
138138 to:
139139 (1) spend funds received through the program only for
140140 expenses allowed under Section 29.357;
141141 (2) notify the comptroller if the child enrolls in a
142142 public school, including an open-enrollment charter school, not
143143 later than the 30th day after the date of enrollment; and
144144 (3) inform the comptroller if the child graduates from
145145 high school.
146146 (b) The parent of a child participating in the program is
147147 the trustee of the child's account.
148148 (c) The comptroller shall provide annually to each program
149149 participant the publication provided under Section 29.355(c).
150150 Sec. 29.357. APPROVED EDUCATION-RELATED EXPENSES. (a)
151151 Funds received under the program may be used only for the following
152152 expenses incurred by a program participant:
153153 (1) tuition and fees:
154154 (A) at a private school accredited by an
155155 organization that is recognized by the Texas Private School
156156 Accreditation Commission;
157157 (B) at a postsecondary educational institution
158158 for courses eligible for the College Credit Program at Education
159159 Code Sec. 28.009 for which the student may receive high school
160160 credit based on the written agreement drawn up by the partner
161161 institutions; or
162162 (C) for an online educational course or program
163163 through the State Virtual School Network as provided at Education
164164 Code Chapter 30A for which the student may earn primary or secondary
165165 school credit;
166166 (2) the purchase of textbooks or other instructional
167167 materials;
168168 (3) payments for the purchase of a curriculum;
169169 (4) fees for classes or other educational services
170170 provided by a public school, if the classes or services do not
171171 qualify the child to be included in the school's average daily
172172 attendance;
173173 (5) fees for services provided by a private tutor or
174174 teaching service;
175175 (6) for a child with a disability, fees for
176176 educational therapies or services provided by a practitioner or
177177 provider, only for fees that are not covered by any federal, state,
178178 or local government benefits (including Medicaid and the
179179 Children's Health Insurance Program) or by any private insurance
180180 that the child is enrolled in at the time of receiving the
181181 therapies or services;
182182 (7) costs of computer hardware and software and other
183183 technological devices which must have a clear ability to be used for
184184 educational purposes, not to exceed in any year 10 percent of the
185185 total amount paid to the program participant's account that year;
186186 (8) fees for a nationally norm-referenced achievement
187187 test or examination, an assessment instrument adopted by the agency
188188 under Section 39.023, an advanced placement test or similar
189189 examination, or any examination related to college or university
190190 admission;
191191 (9) contributions to a qualified tuition program
192192 established for the child that meets the requirements of Section
193193 529 or 530, Internal Revenue Code of 1986, not to exceed in any year
194194 25 percent of the total amount paid to the program participant's
195195 account that year; and
196196 (10) fees for the management of the participant's
197197 account charged by a financial institution.
198198 (b) Expenses allowed under Subsection (a) do not include
199199 expenses for:
200200 (1) consumable supplies, including paper, pens,
201201 pencils, folders, and notebooks;
202202 (2) food; or
203203 (3) before-school or after-school child care and child
204204 care during school holidays and vacations.
205205 (c) An education service provider or vendor of educational
206206 products must provide a program participant with a receipt for each
207207 expense allowed under Subsection (a) charged by the provider or
208208 vendor to the participant.
209209 (d) The content or religious nature of a product or service
210210 may not be considered in determining whether a payment for the
211211 product or service is an expense allowed under Subsection (a).
212212 (e) A finding that a program participant used funds
213213 distributed under the program to pay for an expense not allowed
214214 under Subsection (a) does not affect the validity of any payment
215215 made by the participant for an expense that is allowed under that
216216 subsection.
217217 Sec. 29.358. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
218218 an eligible child as described in Section 29.354 shall receive each
219219 year that the child participates in the program a payment from the
220220 Foundation School Program to the child's account in an amount that
221221 is equal to 90 percent of the greater of, presuming 100% attendance
222222 rate:
223223 (1) Funding the students would have generated in both
224224 state and local funds at their resident district excluding
225225 Subchapter C, Chapter 42 except for Sections 42.151, 42.152 and
226226 42.160 which shall be based on funding factors for which the student
227227 qualified from the most recent year in attendance at a public school
228228 unless enrollment in the program under this subchapter indicates a
229229 change in eligibility status for those funding sections; or
230230 (2) Funding the student would have generated in both
231231 state and local funds at their resident district excluding
232232 Subchapter C, Chapter 42 except for Sections 42.151, 42.152 and
233233 42.160 which shall be based on the average at the resident district
234234 of each special allotment under Sections 42.151 and 42.152, for
235235 which the student's enrollment in the program under this subchapter
236236 indicates eligibility.
237237 (b) If the child is eligible to participate based on more
238238 than one group listed in Section 29.354(a), the payment under this
239239 subsection is based on the group that would result in the greatest
240240 payment amount.
241241 (c) Any funds remaining in a child's account at the end of a
242242 fiscal year are carried forward to the next fiscal year unless
243243 another provision of this subchapter mandates the closure of the
244244 account.
245245 (d) The parent of a child participating in the program may
246246 make payments for the expenses of educational programs, services,
247247 and products not covered by funds in the child's account.
248248 (e) A payment under the program may not be financed using
249249 federal funds or money appropriated from the available school
250250 fund.
251251 Sec. 29.359. ADMINISTRATION OF ACCOUNTS. (a) The
252252 comptroller may contract with one or more financial institutions to
253253 establish and manage an account for each child participating in the
254254 program. A program participant must be able to access the
255255 participant's account by using a debit card or online or electronic
256256 transfer payment service.
257257 (b) The comptroller shall make quarterly payments to each
258258 program participant's account in equal amounts on or before the
259259 15th day of August, November, February, and May.
260260 (c) The comptroller may deduct an amount from each quarterly
261261 payment to a program participant's account to cover the
262262 comptroller's cost of administering the program. The amount
263263 deducted may not exceed three percent of the payment.
264264 (d) Within the first month following the end of each fiscal
265265 year, the comptroller shall reconcile payments made to and from all
266266 accounts under the program.
267267 (e) The comptroller shall coordinate as necessary to
268268 calculate annually the savings to the state from the implementation
269269 of the program.
270270 (f) On the date on which a child ceases to participate in the
271271 program for any reason, the child's account is closed and any
272272 remaining funds are returned to the state for deposit in the
273273 foundation school fund. This subsection does not affect a child's
274274 eligibility to resume participation in the program.
275275 (g) The comptroller may contract with a private entity to
276276 administer all or any part of the program.
277277 Sec. 29.360. RANDOM AUDITING OF ACCOUNTS. (a) The
278278 comptroller shall randomly audit, or contract with a private entity
279279 to randomly audit, accounts as necessary to ensure compliance with
280280 applicable law and the requirements of the program.
281281 (b) In auditing an account, the comptroller or private
282282 entity may require that a program participant provide further
283283 information and documentation regarding any payment from the
284284 participant's account.
285285 (c) The private entity shall report to the comptroller any
286286 violation of this subchapter or other relevant law found by the
287287 entity during an audit conducted under this section.
288288 Sec. 29.361. SUSPENSION OF ACCOUNT. (a) The comptroller
289289 shall suspend the account of a program participant who fails to
290290 comply with applicable law or a requirement of the program,
291291 including a requirement under Section 29.356(a), or who
292292 substantially misuses funds received under the program.
293293 (b) On suspension of an account under Subsection (a), the
294294 comptroller shall notify the participant in writing that the
295295 account has been suspended and that no further payments may be made
296296 from the account. The notification must specify the grounds for the
297297 suspension and state that the participant has 10 business days to
298298 respond and take any corrective action required by the comptroller.
299299 (c) On the expiration of the 10-day period under Subsection
300300 (b), the comptroller shall:
301301 (1) order permanent closure of the suspended account
302302 and declare the participant ineligible for the program;
303303 (2) order temporary reinstatement of the account,
304304 conditioned on the performance of a specified action by the
305305 participant; or
306306 (3) order full reinstatement of the account.
307307 (d) If a program participant's account is suspended or
308308 closed under this section, the comptroller may recover funds that
309309 were used for expenses not allowed under Section 29.357(a) from the
310310 participant or the entity that received the funds.
311311 Sec. 29.362. TUITION AND FEES; REFUND PROHIBITED. (a) An
312312 education service provider may not charge a child participating in
313313 the program an amount greater than the standard amount charged for
314314 that service by the provider.
315315 (b) An education service provider or a vendor of educational
316316 products receiving funds distributed under the program may not in
317317 any manner rebate, refund, or credit to or share with a program
318318 participant, or any person on behalf of a participant, any program
319319 funds paid or owed by the participant to the provider or vendor.
320320 Sec. 29.363. REFERRAL TO ATTORNEY GENERAL. (a) If the
321321 comptroller obtains evidence of fraudulent use of an account, the
322322 comptroller may refer the case to the attorney general for
323323 investigation.
324324 (b) With the consent of the appropriate local county or
325325 district attorney, the attorney general has concurrent
326326 jurisdiction with the consenting local prosecutor to prosecute an
327327 offense referred to the attorney general under Subsection (a).
328328 Sec. 29.364. PROVIDER ACCOUNTABILITY. (a) A private
329329 school must be accredited by an organization that is recognized by
330330 the Texas Private School Accreditation Commission to receive funds
331331 distributed under the program.
332332 (b) A private tutor or teaching service and a practitioner
333333 or provider who provides educational therapies or services for a
334334 child with a disability must be licensed or accredited by a regional
335335 or national accrediting organization to receive funds distributed
336336 under the program.
337337 Sec. 29.365. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
338338 AUTONOMY. (a) An education service provider or vendor of
339339 educational products that receives funds distributed under the
340340 program is not an agent of the state or federal government.
341341 (b) Except as provided by this subchapter, the comptroller,
342342 the agency, the State Board of Education, any other state agency, or
343343 any school district may not:
344344 (1) regulate the educational program of an education
345345 service provider or vendor of educational products that receives
346346 funds distributed under the program; or
347347 (2) exercise control or supervision over a program
348348 participant or an education service provider or vendor of
349349 educational products that receives funds distributed under the
350350 program.
351351 (c) The program does not expand the regulatory authority of
352352 the state or any school district to impose any additional
353353 regulation on an education service provider or vendor of
354354 educational products except those reasonably necessary to enforce
355355 the program as provided by this subchapter.
356356 (d) A private school may not be required to modify the
357357 school's creed, practices, admissions policies, curriculum,
358358 performance standards, or assessments to receive funds distributed
359359 under the program.
360360 (e) A private school voluntarily selected by a parent for
361361 the parent's child to attend or a parent who homeschools the
362362 parent's child, with or without governmental assistance, may not be
363363 required to comply with any state law or rule governing the
364364 applicable educational program that was not in effect on January 1,
365365 2017.
366366 (f) In any proceeding challenging a rule adopted by a state
367367 agency or officer under this subchapter, the agency or officer has
368368 the burden of proof to establish that the rule:
369369 (1) is necessary to implement or enforce the program
370370 as provided by this subchapter; and
371371 (2) does not impose an undue burden on a program
372372 participant or an education service provider or vendor of
373373 educational products that receives or seeks to receive funds
374374 distributed under the program.
375375 Sec. 29.366. STUDENT RECORDS. On request by the parent of a
376376 child participating in the program, the school district or
377377 open-enrollment charter school that the child would otherwise
378378 attend shall provide a copy of the child's school records possessed
379379 by the district or school, if any, to the child's parent or, if
380380 applicable, the private school the child attends.
381381 Sec. 29.367. REPORTING NUMBER OF PARTICIPANTS. (a) Not
382382 later than October 1 of each year, the comptroller shall notify the
383383 commissioner and the Legislative Budget Board of the number of
384384 eligible children likely to participate in the program,
385385 disaggregated by the school district or open-enrollment charter
386386 school the eligible children would otherwise attend.
387387 (b) Not later than March 1 of each year, the comptroller
388388 shall provide final information to the commissioner and the
389389 Legislative Budget Board regarding the number of children
390390 participating in the program, disaggregated in the same manner as
391391 the initial information under Subsection (a).
392392 Sec. 29.368. ANNUAL SURVEY. The comptroller may conduct an
393393 annual parental satisfaction survey that asks each parent of a
394394 child participating in the program to express:
395395 (1) the parent's overall level of satisfaction with
396396 the program; and
397397 (2) the parent's opinion on specified topics and
398398 issues relevant to the effectiveness of the program.
399399 Sec. 29.369. GIFTS, GRANTS, AND DONATIONS. The comptroller
400400 may solicit and accept gifts, grants, and donations from any public
401401 or private source for any expenses related to the initial
402402 implementation or administration of the program.
403403 Sec. 29.370. AGENCY COLLECTION OF CERTAIN INFORMATION. (a)
404404 The agency shall collect and maintain for each group described by
405405 Section 29.354(a) information regarding:
406406 (1) the number of students in that group enrolled at a
407407 school district; and
408408 (2) the statewide average school district entitlement
409409 amount under Chapter 42 for a student in that group.
410410 (b) The agency shall make available to the comptroller the
411411 information collected and maintained under Subsection (a).
412412 (c) The agency may collaborate with any relevant state
413413 agency or other entity in carrying out the agency's duties under
414414 this section.
415415 (d) The commissioner may adopt rules as necessary to
416416 implement this section.
417417 Sec. 29.371. RULES. The comptroller shall adopt rules as
418418 necessary to implement this subchapter, including:
419419 (1) rules regarding expense reporting requirements
420420 for program participants; and
421421 (2) rules for implementing this subchapter in a manner
422422 that ensures compliance with federal law regarding confidentiality
423423 of student educational information, including the Family
424424 Educational Rights and Privacy Act of 1974 (20 U.S.C. Section
425425 1232g).
426426 SECTION 2. Section 42.253, Education Code, is amended by
427427 adding Subsection (b-1) to read as follows:
428428 (b-1) Notwithstanding Subsection (b), the commissioner
429429 shall adjust enrollment estimates and entitlement for each school
430430 district for each school year based on information provided by the
431431 comptroller under Section 29.367. This subsection expires
432432 September 1, 2020.
433433 SECTION 3. Section 58.106(a), Family Code, is amended to
434434 read as follows:
435435 (a) Except as otherwise provided by this section,
436436 information contained in the juvenile justice information system is
437437 confidential information for the use of the department and may not
438438 be disseminated by the department except:
439439 (1) with the permission of the juvenile offender, to
440440 military personnel of this state or the United States;
441441 (2) to a criminal justice agency as defined by Section
442442 411.082, Government Code;
443443 (3) to a noncriminal justice agency authorized by
444444 federal statute or federal executive order to receive juvenile
445445 justice record information;
446446 (4) to a juvenile justice agency;
447447 (5) to the Texas Juvenile Justice Department;
448448 (6) to the office of independent ombudsman of the
449449 Texas Juvenile Justice Department;
450450 (7) to a district, county, justice, or municipal court
451451 exercising jurisdiction over a juvenile; [and]
452452 (8) to the Department of Family and Protective
453453 Services as provided by Section 411.114, Government Code; and
454454 (9) to the comptroller for the purpose of determining
455455 a child's eligibility to participate in the education savings
456456 account program under Subchapter J, Chapter 29, Education Code.
457457 SECTION 4. Section 58.204(b), Family Code, is amended to
458458 read as follows:
459459 (b) On certification of records in a case under Section
460460 58.203, the department may permit access to the information in the
461461 juvenile justice information system relating to the case of an
462462 individual only:
463463 (1) by a criminal justice agency for a criminal
464464 justice purpose, as those terms are defined by Section 411.082,
465465 Government Code;
466466 (2) for research purposes, by the Texas Juvenile
467467 Justice Department;
468468 (3) by the person who is the subject of the records on
469469 an order from the juvenile court granting the petition filed by or
470470 on behalf of the person who is the subject of the records;
471471 (4) with the permission of the juvenile court at the
472472 request of the person who is the subject of the records;
473473 (5) with the permission of the juvenile court, by a
474474 party to a civil suit if the person who is the subject of the records
475475 has put facts relating to the person's records at issue in the suit;
476476 [or]
477477 (6) with the written permission of the individual, by
478478 military personnel, including a recruiter, of this state or the
479479 United States if the individual is an applicant for enlistment in
480480 the armed forces; or
481481 (7) by the comptroller for the purpose of determining
482482 the individual's eligibility to participate in the education
483483 savings account program under Subchapter J, Chapter 29, Education
484484 Code.
485485 SECTION 5. Section 65.202, Family Code, is amended to read
486486 as follows:
487487 Sec. 65.202. CONFIDENTIALITY OF RECORDS. Records and files
488488 created under this chapter may be disclosed only to:
489489 (1) the judge of the truancy court, the truant conduct
490490 prosecutor, and the staff of the judge and prosecutor;
491491 (2) the child or an attorney for the child;
492492 (3) a governmental agency if the disclosure is
493493 required or authorized by law;
494494 (4) a person or entity to whom the child is referred
495495 for treatment or services if the agency or institution disclosing
496496 the information has entered into a written confidentiality
497497 agreement with the person or entity regarding the protection of the
498498 disclosed information;
499499 (5) the Texas Department of Criminal Justice and the
500500 Texas Juvenile Justice Department for the purpose of maintaining
501501 statistical records of recidivism and for diagnosis and
502502 classification;
503503 (6) the agency; [or]
504504 (7) the comptroller for the purpose of determining a
505505 child's eligibility to participate in the education savings account
506506 program under Subchapter J, Chapter 29, Education Code; or
507507 (8) with leave of the truancy court, any other person,
508508 agency, or institution having a legitimate interest in the
509509 proceeding or in the work of the court.
510510 SECTION 6. Section 411.109, Government Code, is amended by
511511 adding Subsection (c) to read as follows:
512512 (c) The comptroller is entitled to obtain from the
513513 department criminal history record information maintained by the
514514 department that relates to a child for the purpose of determining
515515 the child's eligibility to participate in the education savings
516516 account program under Subchapter J, Chapter 29, Education Code.
517517 SECTION 7. This Act applies beginning with the 2017-2018
518518 school year.
519519 SECTION 8. Not later than 45 days after the effective date
520520 of this Act, the comptroller of public accounts shall adopt rules
521521 necessary to implement the education savings account program under
522522 Subchapter J, Chapter 29, Education Code, as added by this Act.
523523 SECTION 9. This Act takes effect immediately if it receives
524524 a vote of two-thirds of all the members elected to each house, as
525525 provided by Section 39, Article III, Texas Constitution. If this
526526 Act does not receive the vote necessary for immediate effect, this
527527 Act takes effect September 1, 2017.