Texas 2017 - 85th 1st C.S.

Texas House Bill HB253 Compare Versions

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1	1	85S11106 BEF/KKA-D
2	2	By: Simmons H.B. No. 253
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to public school finance, including the establishment of a
8	8	tax credit scholarship and educational expense assistance program.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Effective September 1, 2018, Section 12.106,
11	11	Education Code, is amended by adding Subsection (d) to read as
12	12	follows:
13	13	(d) In addition to other amounts provided by this section, a
14	14	charter holder is entitled to receive, for the open-enrollment
15	15	charter school, funding per student in average daily attendance in
16	16	an amount equal to the guaranteed level of state and local funds per
17	17	student per cent of tax effort under Section 46.032(a) multiplied
18	18	by the lesser of:
19	19	(1) the state average interest and sinking fund tax
20	20	rate imposed by school districts for the current year; or
21	21	(2) a rate that would result in a total amount to which
22	22	charter schools are entitled under this subsection for the current
23	23	year equal to $60 million.
24	24	SECTION 2. Chapter 42, Education Code, is amended by adding
25	25	Subchapter H to read as follows:
26	26	SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM
27	27	Sec. 42.451. FINANCIAL HARDSHIP GRANTS. (a) From amounts
28	28	appropriated for this subchapter, the commissioner may administer a
29	29	grant program that provides grants to school districts to defray
30	30	financial hardships resulting from changes made to Chapter 41 and
31	31	this chapter that apply after the 2016-2017 school year.
32	32	(b) The commissioner shall award grants under this
33	33	subchapter to districts as provided by Section 42.452.
34	34	(c) Except as provided by Subsection (d), funding provided
35	35	to a district under this subchapter is in addition to all other
36	36	funding provided under Chapter 41 and this chapter.
37	37	(d) A district is not eligible for funding under this
38	38	subchapter for a school year if the district receives for that
39	39	school year an adjustment of the district's taxable value of
40	40	property under Section 42.2521. A district may decline an
41	41	adjustment under Section 42.2521 to maintain eligibility for
42	42	funding under this subchapter.
43	43	(e) The commissioner may obtain additional information as
44	44	needed from a district or other state or local agency to make
45	45	determinations in awarding grants under this subchapter.
46	46	Sec. 42.452. AWARD OF GRANTS; AMOUNT. (a) The commissioner
47	47	shall award grants to school districts based on the following
48	48	formula:
49	49	HG = (PL-CL) X (TR) X (TAHG/TEHG)
50	50	where:
51	51	"HG" is the amount of a district's hardship grant;
52	52	"PL" is the amount of funding under previous law to which a
53	53	district would be entitled under Chapter 41 and this chapter as
54	54	those chapters existed on January 1, 2017, determined using current
55	55	school year data for the district;
56	56	"CL" is the amount of current law funding under Chapter 41 and
57	57	this chapter to which a district is entitled;
58	58	"TR" is a district's maintenance and operations tax rate, as
59	59	specified by the comptroller's most recent certified report;
60	60	"TAHG" is the total funding available for grants under
61	61	Section 42.456 for a school year; and
62	62	"TEHG" is the sum of the combined amounts for all districts
63	63	calculated by applying the formula (PL-CL) X (TR) for each
64	64	district.
65	65	(b) A school district's hardship grant awarded under this
66	66	subchapter for a school year may not exceed the lesser of:
67	67	(1) the amount equal to 10 percent of the total amount
68	68	of funds available for grants under this subchapter for that school
69	69	year; or
70	70	(2) the amount by which "PL" exceeds "CL" for that
71	71	district for that school year.
72	72	(c) For purposes of calculating the formula under
73	73	Subsection (a), the commissioner shall:
74	74	(1) if the value of (PL-CL) for a school district
75	75	results in a negative number, use zero for the value of (PL-CL);
76	76	(2) if a school district's maintenance and operations
77	77	tax rate ("TR") is greater than $1, use $1 for the value of "TR";
78	78	(3) use a maintenance and operations tax rate ("TR")
79	79	of $1 for each open-enrollment charter school, each special-purpose
80	80	school district established under Subchapter H, Chapter 11, and the
81	81	South Texas Independent School District; and
82	82	(4) if (TAHG/TEHG) equals a value greater than one,
83	83	use a value of one for (TAHG/TEHG).
84	84	(d) If funds remain available under this subchapter for a
85	85	school year after determining initial grant amounts under
86	86	Subsection (a), as adjusted to reflect the limits imposed by
87	87	Subsection (b), the commissioner shall reapply the formula as
88	88	necessary to award all available funds.
89	89	Sec. 42.453. ELIGIBILITY OF OPEN-ENROLLMENT CHARTER
90	90	SCHOOL. An open-enrollment charter school is eligible for a grant
91	91	under this subchapter in the same manner as a school district.
92	92	Sec. 42.454. REGIONAL EDUCATION SERVICE CENTERS AND COUNTY
93	93	DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education
94	94	service center or a county department of education is not eligible
95	95	for a grant under this subchapter.
96	96	Sec. 42.455. CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. A
97	97	school district is not eligible for a grant under this subchapter if
98	98	for the 2015-2016 school year the district's expenditures per
99	99	student in average daily attendance, excluding bond debt service
100	100	payments, capital outlays, and facilities acquisition and
101	101	construction costs, exceeded an amount that is equal to 110 percent
102	102	of the state average amount for that school year of expenditures per
103	103	student in average daily attendance, excluding bond debt service
104	104	payments, capital outlays, and facilities acquisition and
105	105	construction costs, as those amounts are determined by the
106	106	commissioner.
107	107	Sec. 42.456. FUNDING LIMIT. The amount of grants awarded by
108	108	the commissioner under this subchapter may not exceed $100 million
109	109	for the 2017-2018 school year or $50 million for the 2018-2019
110	110	school year.
111	111	Sec. 42.457. NO ADJUSTMENT BASED ON REVISED DATA. The
112	112	commissioner may not adjust the amount of a school district's grant
113	113	under this subchapter based on revisions to the district's data
114	114	received after a grant has been awarded.
115	115	Sec. 42.458. RULES. The commissioner may adopt rules as
116	116	necessary to administer this subchapter.
117	117	Sec. 42.459. DETERMINATION FINAL. A determination by the
118	118	commissioner under this subchapter is final and may not be
119	119	appealed.
120	120	Sec. 42.460. EXPIRATION. This subchapter expires September
121	121	1, 2019.
122	122	SECTION 3. Effective September 1, 2018, Section 46.032(a),
123	123	Education Code, is amended to read as follows:
124	124	(a) Each school district is guaranteed a specified amount
125	125	per student in state and local funds for each cent of tax effort to
126	126	pay the principal of and interest on eligible bonds. The amount of
127	127	state support, subject only to the maximum amount under Section
128	128	46.034, is determined by the formula:
129	129	EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
130	130	where:
131	131	"EDA" is the amount of state funds to be allocated to the
132	132	district for assistance with existing debt;
133	133	"EDGL" is the dollar amount guaranteed level of state and
134	134	local funds per student per cent of tax effort, which is the lesser
135	135	of:
136	136	(1) $40 [$35] or a greater amount for any year provided
137	137	by appropriation; or
138	138	(2) the amount that would result in a total additional
139	139	amount of state funds under this subchapter for the current year
140	140	equal to $60 million in excess of the state funds to which school
141	141	districts would have been entitled under this section if the
142	142	guaranteed level amount were $35;
143	143	"ADA" is the number of students in average daily attendance,
144	144	as determined under Section 42.005, in the district;
145	145	"EDTR" is the existing debt tax rate of the district, which is
146	146	determined by dividing the amount budgeted by the district for
147	147	payment of eligible bonds by the quotient of the district's taxable
148	148	value of property as determined under Subchapter M, Chapter 403,
149	149	Government Code, or, if applicable, under Section 42.2521, divided
150	150	by 100; and
151	151	"DPV" is the district's taxable value of property as
152	152	determined under Subchapter M, Chapter 403, Government Code, or, if
153	153	applicable, under Section 42.2521.
154	154	SECTION 4. Subtitle B, Title 3, Insurance Code, is amended
155	155	by adding Chapter 230 to read as follows:
156	156	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
157	157	CERTAIN EDUCATIONAL ASSISTANCE ORGANIZATIONS
158	158	SUBCHAPTER A. GENERAL PROVISIONS
159	159	Sec. 230.001. DEFINITIONS. In this chapter:
160	160	(1) "Educational assistance organization" means an
161	161	organization that:
162	162	(A) has the ability according to the
163	163	organization's charter to award scholarships to or pay educational
164	164	expenses for eligible students in:
165	165	(i) public elementary or secondary schools
166	166	located in this state; or
167	167	(ii) nonpublic elementary or secondary
168	168	schools located in this state:
169	169	(a) that meet the requirements of
170	170	Section 230.052;
171	171	(b) at which a student may fulfill
172	172	this state's compulsory attendance requirements; and
173	173	(c) that are not in violation of the
174	174	federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.);
175	175	and
176	176	(B) uses part of its annual revenue for the
177	177	purpose provided by Paragraph (A).
178	178	(2) "State premium tax liability" means any liability
179	179	incurred by an entity under Chapter 221, 222, or 224.
180	180	(3) "Student with a disability" means a student who
181	181	is:
182	182	(A) eligible to participate in a school
183	183	district's special education program under Section 29.003,
184	184	Education Code; or
185	185	(B) covered by Section 504, Rehabilitation Act of
186	186	1973 (29 U.S.C. Section 794).
187	187	Sec. 230.002. RULES; PROCEDURES. (a) The comptroller
188	188	shall adopt rules and procedures to implement, administer, and
189	189	enforce this chapter.
190	190	(b) A rule adopted under Subsection (a) is binding on an
191	191	organization that applies for certification as an educational
192	192	assistance organization, an entity that applies for a credit, and a
193	193	state or local governmental entity, including a political
194	194	subdivision, as necessary to implement, administer, and enforce
195	195	this chapter.
196	196	SUBCHAPTER B. SCHOLARSHIP AND EDUCATIONAL EXPENSE ASSISTANCE
197	197	PROGRAM
198	198	Sec. 230.051. CERTIFICATION OF EDUCATIONAL ASSISTANCE
199	199	ORGANIZATION. (a) An organization may apply to the comptroller for
200	200	certification as a certified educational assistance organization
201	201	during an application period provided by the comptroller.
202	202	(b) To be eligible for certification, the organization:
203	203	(1) must:
204	204	(A) be exempt from federal tax under Section
205	205	501(a) of the Internal Revenue Code of 1986 by being listed as an
206	206	exempt organization in Section 501(c)(3) of that code;
207	207	(B) be in good standing with the state;
208	208	(C) be located in the state;
209	209	(D) allocate at least 90 percent of its annual
210	210	revenue from contributions that are designated for scholarships or
211	211	educational expense assistance for eligible students under this
212	212	chapter for student scholarships and assistance for educational
213	213	expenses, including tuition, transportation, textbooks, and other
214	214	supplies, and for other related educational expense assistance as
215	215	described by this section;
216	216	(E) award scholarships and assistance for
217	217	qualifying educational expenses to eligible students who
218	218	demonstrate the greatest financial and academic need;
219	219	(F) agree to give each donor a receipt for money
220	220	contributed to the organization that includes the name of the
221	221	organization, the name of the donor, the amount of the
222	222	contribution, the information required by Section 230.054(c), and
223	223	any other information required by the comptroller;
224	224	(G) demonstrate experience and technical
225	225	expertise in:
226	226	(i) accepting, processing, and tracking
227	227	applications for scholarships or educational expense assistance;
228	228	and
229	229	(ii) awarding scholarships to students in
230	230	primary or secondary schools;
231	231	(H) agree to be independently audited on an
232	232	annual basis and file the audit with the comptroller; and
233	233	(I) disburse within two academic years of receipt
234	234	contributions received from and designated by entities for
235	235	scholarships or educational expense assistance under this chapter;
236	236	and
237	237	(2) may not:
238	238	(A) award all scholarships under this chapter to
239	239	students who attend a particular school or pay educational expenses
240	240	incurred only at a particular school;
241	241	(B) provide to a student a scholarship in an
242	242	annual amount that exceeds the amount provided under Section
243	243	230.055(a) unless the money used to provide the portion of the
244	244	scholarship in excess of that amount was contributed by a person
245	245	other than an entity that notifies the organization under Section
246	246	230.054(c) that the entity may apply for a tax credit for the
247	247	contribution; and
248	248	(C) provide to a student educational expense
249	249	assistance in excess of the amount provided under Section
250	250	230.055(b), unless the money used to provide the portion of the
251	251	assistance in excess of that amount was contributed by a person
252	252	other than an entity that notifies the organization under Section
253	253	230.054(c) that the entity may apply for a tax credit for the
254	254	contribution, including assistance for:
255	255	(i) facility fees;
256	256	(ii) instructional materials;
257	257	(iii) school supplies;
258	258	(iv) tutoring;
259	259	(v) academic after-school programs;
260	260	(vi) school or lab fees;
261	261	(vii) before-school or after-school child
262	262	care; and
263	263	(viii) transportation expenses, including
264	264	the cost to transfer from one public school to another.
265	265	(c) The comptroller shall certify one organization as the
266	266	primary certified educational assistance organization and one
267	267	organization as the secondary certified educational assistance
268	268	organization. The comptroller shall select the organizations to
269	269	certify as the primary and secondary certified educational
270	270	assistance organizations from among the organizations that apply
271	271	under Subsection (a) and meet the requirements of Subsection (b).
272	272	The comptroller has broad discretion in selecting the primary and
273	273	secondary certified educational assistance organizations.
274	274	(d) The comptroller shall notify all organizations that
275	275	apply under Subsection (a) of the comptroller's selections under
276	276	Subsection (c).
277	277	(e) The comptroller shall attempt to maintain one primary
278	278	and one secondary certified educational assistance organization at
279	279	all times. The comptroller shall provide an application period
280	280	under Subsection (a) as soon as practicable after the comptroller
281	281	learns there is, or is likely to be, a vacancy for the primary or
282	282	secondary certified educational assistance organization.
283	283	(f) The comptroller's selections under Subsection (c) are
284	284	final and are not appealable.
285	285	Sec. 230.0511. PERFORMANCE OF CERTIFIED EDUCATIONAL
286	286	ASSISTANCE ORGANIZATION POWERS AND DUTIES. (a) Except as provided
287	287	by Subsection (b), the organization certified as the primary
288	288	certified educational assistance organization shall perform the
289	289	powers and duties assigned to the certified educational assistance
290	290	organization under this chapter.
291	291	(b) The organization certified as the secondary certified
292	292	educational assistance organization shall perform the powers and
293	293	duties assigned to the certified educational assistance
294	294	organization under this chapter if:
295	295	(1) the organization certified as the primary
296	296	certified educational assistance organization has its
297	297	certification revoked; or
298	298	(2) the comptroller otherwise determines the
299	299	organization certified as the primary educational assistance
300	300	organization is unable to perform the powers and duties assigned to
301	301	the certified educational assistance organization under this
302	302	chapter.
303	303	(c) A reference in this chapter or other law to the
304	304	certified educational assistance organization means the
305	305	organization performing the powers and duties of the certified
306	306	educational assistance organization under Subsection (a) or (b).
307	307	Sec. 230.0512. ALLOCATION OF MONEY DESIGNATED FOR
308	308	SCHOLARSHIPS OR EDUCATIONAL EXPENSE ASSISTANCE. Of the amount
309	309	required to be allocated as provided by Section 230.051(b)(1)(D),
310	310	the certified educational assistance organization shall use:
311	311	(1) at least 80 percent to award scholarships as
312	312	described by Section 230.055(a); and
313	313	(2) not more than 20 percent to award educational
314	314	expense assistance as described by Section 230.055(b).
315	315	Sec. 230.052. NONPUBLIC SCHOOL REQUIREMENTS. The certified
316	316	educational assistance organization may not award scholarships to
317	317	or pay educational expenses for eligible students enrolled in a
318	318	nonpublic school unless the nonpublic school executes a notarized
319	319	affidavit, with supporting documents, concerning the school's
320	320	qualification for scholarships and educational expense assistance
321	321	for eligible students who receive assistance from the certified
322	322	educational assistance organization, including evidence of:
323	323	(1) accreditation by the Texas Education Agency or by
324	324	an organization recognized by the Texas Private School
325	325	Accreditation Commission;
326	326	(2) annual administration of a nationally
327	327	norm-referenced assessment instrument or the appropriate
328	328	assessment instrument required under Section 39.023, Education
329	329	Code;
330	330	(3) valid certificate of occupancy; and
331	331	(4) policy statements regarding:
332	332	(A) admissions;
333	333	(B) curriculum;
334	334	(C) safety;
335	335	(D) food service inspection; and
336	336	(E) student to teacher ratios.
337	337	Sec. 230.053. ELIGIBILITY OF STUDENTS FOR SCHOLARSHIPS;
338	338	INCLUSION IN CALCULATION OF EQUALIZED WEALTH LEVEL. (a) A student
339	339	is eligible to apply for a scholarship from the certified
340	340	educational assistance organization under this chapter if the
341	341	student:
342	342	(1) is a student with a disability;
343	343	(2) is eligible to attend a public school under
344	344	Section 25.001, Education Code;
345	345	(3) was enrolled in a public school in this state
346	346	during the entire preceding academic year; and
347	347	(4) will attend a nonpublic school in this state
348	348	during the entire academic year for which the scholarship is
349	349	awarded.
350	350	(b) A student who establishes eligibility under this
351	351	section may apply for a scholarship from the certified educational
352	352	assistance organization under this chapter for each academic year
353	353	until the student:
354	354	(1) graduates from high school;
355	355	(2) is no longer eligible to attend a public school
356	356	under Section 25.001, Education Code; or
357	357	(3) enrolls in a public school, including an
358	358	open-enrollment charter school.
359	359	(c) Notwithstanding Subsection (b), the comptroller shall
360	360	establish guidelines for, in the least disruptive manner possible:
361	361	(1) a student who has previously received a
362	362	scholarship to enroll in a public school, including an
363	363	open-enrollment charter school; and
364	364	(2) a student who previously received a scholarship
365	365	and subsequently enrolled in a public school, including an
366	366	open-enrollment charter school, to reestablish eligibility for a
367	367	scholarship.
368	368	(d) The certified educational assistance organization shall
369	369	award scholarships to eligible students who apply in accordance
370	370	with this chapter to the extent money is available for that purpose.
371	371	(e) For the first year a student receives a scholarship
372	372	under this chapter to attend a nonpublic school, the student is
373	373	included in the weighted average daily attendance of the school
374	374	district the student would otherwise attend for purposes of
375	375	determining the district's equalized wealth level under Chapter 41,
376	376	Education Code.
377	377	Sec. 230.0531. ELIGIBILITY OF STUDENTS FOR EDUCATIONAL
378	378	EXPENSE ASSISTANCE. (a) A student is eligible to apply for
379	379	educational expense assistance from the certified educational
380	380	assistance organization under this chapter for an academic year if
381	381	the student:
382	382	(1) is a student with a disability; and
383	383	(2) will attend a public school in this state during
384	384	the entire academic year for which the educational expense
385	385	assistance is awarded.
386	386	(b) A student who establishes eligibility under this
387	387	section may apply for educational expense assistance from the
388	388	certified educational assistance organization under this chapter
389	389	for each academic year the student attends a public school in this
390	390	state.
391	391	(c) The certified educational assistance organization shall
392	392	award educational expense assistance to eligible students who apply
393	393	in accordance with this chapter to the extent money is available for
394	394	that purpose.
395	395	Sec. 230.0532. NOTICE TO CERTAIN PARENTS. A school
396	396	district shall provide written notice of the availability of
397	397	assistance under this chapter to the parent of a student who is
398	398	eligible to apply for a scholarship to attend a nonpublic school
399	399	under Section 230.053. The notice under this section must inform
400	400	the parent that a nonpublic school is not subject to laws regarding
401	401	the provision of education services in the same manner as a public
402	402	school, and a student with a disability attending a nonpublic
403	403	school may not receive the services a student with a disability
404	404	attending a public school is entitled to receive under federal and
405	405	state law. The notice must provide information regarding rights to
406	406	which a student with a disability is entitled under federal and
407	407	state law if the student attends a public school, including:
408	408	(1) rights provided under the Individuals with
409	409	Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
410	410	including:
411	411	(A) an individualized education program;
412	412	(B) education services provided in the least
413	413	restrictive environment;
414	414	(C) instruction from certified teachers;
415	415	(D) due process hearings to ensure proper and
416	416	full implementation of an individualized education program;
417	417	(E) transition and planning services; and
418	418	(F) supplementary aids and services;
419	419	(2) rights provided under Subchapter A, Chapter 29,
420	420	Education Code; and
421	421	(3) other rights provided under federal or state law.
422	422	Sec. 230.054. CREDIT FOR CONTRIBUTIONS. (a) An entity may
423	423	apply for a credit under this chapter only for money contributed to
424	424	the certified educational assistance organization and designated
425	425	for scholarships or educational expense assistance for eligible
426	426	students.
427	427	(b) An entity may not apply for a credit under this chapter
428	428	for a contribution made to the certified educational assistance
429	429	organization if:
430	430	(1) the entity requires that the contribution benefit
431	431	a particular person or school; or
432	432	(2) the contribution is designated to provide a
433	433	scholarship or educational expense assistance for an entity
434	434	employee or for a spouse or dependent of an entity employee.
435	435	(c) An entity shall notify the certified educational
436	436	assistance organization in writing when the entity makes a
437	437	contribution if the entity may apply for a tax credit under this
438	438	chapter for the contribution. An entity may not apply for a credit
439	439	for the contribution unless the entity provides the notification at
440	440	the time the contribution is made. The certified educational
441	441	assistance organization shall indicate on the receipt provided
442	442	under Section 230.051(b)(1)(F) that the entity made the
443	443	notification under this subsection.
444	444	Sec. 230.055. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL
445	445	EXPENSE ASSISTANCE. (a) The maximum scholarship amount the
446	446	certified educational assistance organization may award to a
447	447	student under this chapter for an academic year using money
448	448	contributed by an entity that notifies the organization under
449	449	Section 230.054(c) that the entity may apply for a tax credit for
450	450	the contribution may not exceed the lesser of:
451	451	(1) $10,000; and
452	452	(2) the full tuition amount for the nonpublic school
453	453	the student attends.
454	454	(b) The maximum educational expense assistance the
455	455	certified educational assistance organization may award to a
456	456	student under this chapter using money contributed by an entity
457	457	that notifies the organization under Section 230.054(c) that the
458	458	entity may apply for a tax credit for the contribution may not
459	459	exceed $500 for the 2019 state fiscal year, increased by five
460	460	percent each subsequent year.
461	461	Sec. 230.056. REVOCATION. (a) The comptroller shall
462	462	revoke a certification provided under Section 230.051 if the
463	463	comptroller finds that a certified educational assistance
464	464	organization:
465	465	(1) is no longer eligible under Section 230.051; or
466	466	(2) intentionally and substantially violates this
467	467	chapter.
468	468	(b) The comptroller has broad discretion in determining
469	469	whether to revoke a certification under Subsection (a).
470	470	(c) The comptroller shall notify a certified educational
471	471	assistance organization in writing of the comptroller's decision to
472	472	revoke the organization's certification. If the comptroller
473	473	revokes an organization's certification, the comptroller shall
474	474	include in the notice of revocation the reasons for the revocation.
475	475	(d) If the comptroller revokes a certified educational
476	476	assistance organization's certification under Subsection (a), the
477	477	organization may request in writing a reconsideration of the
478	478	revocation not later than the 10th day after the date of the notice
479	479	under Subsection (c) or the revocation is final.
480	480	(e) An organization that requests a reconsideration under
481	481	Subsection (d) may submit to the comptroller not later than the 30th
482	482	day after the date the request for reconsideration is submitted
483	483	additional information and documents to support the organization's
484	484	request for reconsideration.
485	485	(f) The comptroller's reconsideration of a revocation under
486	486	this section is not a contested case under Chapter 2001, Government
487	487	Code. The comptroller's decision on a request for reconsideration
488	488	of a revocation is final and is not appealable.
489	489	(g) This section does not create a cause of action to
490	490	contest a decision of the comptroller to revoke a certified
491	491	educational assistance organization's certification under this
492	492	chapter.
493	493	(h) Revocation of a certification under this section does
494	494	not affect the validity of a tax credit relating to a contribution
495	495	made before the date of revocation.
496	496	Sec. 230.057. REPORT OF NET SAVINGS TO PUBLIC EDUCATION.
497	497	(a) In this section, "net savings" means any positive difference in
498	498	a state fiscal year between:
499	499	(1) the amount by which state spending on public
500	500	education for that year is reduced as a result of students receiving
501	501	scholarships and educational expense assistance from the certified
502	502	educational assistance organization under this chapter; and
503	503	(2) the amount by which state revenue derived from
504	504	Chapters 221, 222, and 224 is reduced as a result of tax credits
505	505	under this chapter.
506	506	(b) Not later than December 31 of each even-numbered year,
507	507	the comptroller shall determine the amount of net savings for the
508	508	previous state fiscal biennium and make available to the public a
509	509	report of that amount of savings.
510	510	SUBCHAPTER C. CREDIT
511	511	Sec. 230.101. CREDIT. An entity may apply for a credit
512	512	against the entity's state premium tax liability in the amount and
513	513	under the conditions and limitations provided by this chapter. The
514	514	comptroller shall award credits as provided by Section 230.103.
515	515	Sec. 230.102. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
516	516	Subject to Subsections (b) and (c), the amount of an entity's credit
517	517	is equal to the lesser of the amount of the qualifying contributions
518	518	made to the certified educational assistance organization or 50
519	519	percent of the entity's state premium tax liability.
520	520	(b) The total amount of tax credits that may be awarded
521	521	under this chapter for a state fiscal year may not exceed $75
522	522	million.
523	523	(c) The comptroller by rule shall prescribe procedures by
524	524	which the comptroller may allocate credits under this chapter. The
525	525	procedures must provide that credits are first allocated to
526	526	entities that were granted preliminary approval for a credit under
527	527	Section 230.1025 in the amount that was preliminarily approved. The
528	528	procedures must provide that any remaining credits are allocated on
529	529	a first-come, first-served basis, based on the date the
530	530	contribution was initially made.
531	531	(d) The comptroller may require an entity to notify the
532	532	comptroller of the amount the entity intends or expects to apply for
533	533	under this chapter before the beginning of a state fiscal year or at
534	534	any other time required by the comptroller.
535	535	Sec. 230.1025. PRELIMINARY APPROVAL FOR CREDIT. (a)
536	536	Before making a contribution to the certified educational
537	537	assistance organization, an entity may apply to the comptroller for
538	538	preliminary approval of a credit under this chapter for the
539	539	contribution.
540	540	(b) An entity must apply for preliminary approval of a
541	541	credit on a form provided by the comptroller that includes the
542	542	amount the entity expects to contribute and any other information
543	543	required by the comptroller.
544	544	(c) The comptroller shall grant preliminary approval for
545	545	credits under this chapter on a first-come, first-served basis,
546	546	based on the date the application for preliminary approval is
547	547	received by the comptroller.
548	548	(d) The comptroller shall grant preliminary approval for a
549	549	credit under this chapter if the total amount of credits
550	550	preliminarily approved under this chapter does not exceed the
551	551	amount provided by Section 230.102(b).
552	552	(e) A credit for which the comptroller grants preliminary
553	553	approval remains subject to the limitation under Section 230.102(a)
554	554	and any other limitations prescribed by this chapter.
555	555	Sec. 230.103. APPLICATION FOR CREDIT. (a) An entity must
556	556	apply for a credit under this chapter on or with the tax return for
557	557	the taxable year and submit with the application each receipt
558	558	issued under Section 230.051(b)(1)(F) that includes the
559	559	information required by Section 230.054(c).
560	560	(b) The comptroller shall adopt a form for the application
561	561	for the credit. An entity must use this form in applying for the
562	562	credit.
563	563	(c) The comptroller may award a credit to an entity that
564	564	applies for the credit under Subsection (a) if the entity is
565	565	eligible for the credit and the credit is available under Section
566	566	230.102(b). The comptroller has broad discretion in determining
567	567	whether to grant or deny an application for a credit.
568	568	(d) The comptroller shall notify an entity in writing of the
569	569	comptroller's decision to grant or deny the application under
570	570	Subsection (a). If the comptroller denies an entity's application,
571	571	the comptroller shall include in the notice of denial the reasons
572	572	for the comptroller's decision.
573	573	(e) If the comptroller denies an entity's application under
574	574	Subsection (a), the entity may request in writing a reconsideration
575	575	of the application not later than the 10th day after the date of the
576	576	notice under Subsection (d). If the entity does not request a
577	577	reconsideration of the application on or before that date, the
578	578	comptroller's decision is final.
579	579	(f) An entity that requests a reconsideration under
580	580	Subsection (e) may submit to the comptroller not later than the 30th
581	581	day after the date the request for reconsideration is submitted
582	582	additional information and documents to support the entity's
583	583	request for reconsideration.
584	584	(g) The comptroller's reconsideration of an application
585	585	under this section is not a contested case under Chapter 2001,
586	586	Government Code. The comptroller's decision on a request for
587	587	reconsideration of an application is final and is not appealable.
588	588	(h) This section does not create a cause of action to
589	589	contest a decision of the comptroller to deny an application for a
590	590	credit under this chapter.
591	591	Sec. 230.104. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
592	592	may not convey, assign, or transfer the credit allowed under this
593	593	chapter to another entity unless all of the assets of the entity are
594	594	conveyed, assigned, or transferred in the same transaction.
595	595	Sec. 230.105. NOTICE OF AVAILABILITY OF CREDIT. The
596	596	comptroller shall provide notice of the availability of the credit
597	597	under this chapter on the comptroller's Internet website, in the
598	598	instructions for insurance premium tax report forms, and in any
599	599	notice sent to an entity concerning the requirement to file an
600	600	insurance premium tax report.
601	601	SECTION 5. (a) The constitutionality and other validity
602	602	under the state or federal constitution of all or any part of
603	603	Chapter 230, Insurance Code, as added by this Act, may be determined
604	604	in an action for declaratory judgment in a district court in Travis
605	605	County under Chapter 37, Civil Practice and Remedies Code, except
606	606	that this section does not authorize an award of attorney's fees
607	607	against this state and Section 37.009, Civil Practice and Remedies
608	608	Code, does not apply to an action filed under this section. This
609	609	section does not authorize a taxpayer suit to contest the denial of
610	610	a tax credit by the comptroller of public accounts.
611	611	(b) An appeal of a declaratory judgment or order, however
612	612	characterized, of a district court, including an appeal of the
613	613	judgment of an appellate court, holding or otherwise determining
614	614	that all or any part of Chapter 230, Insurance Code, as added by
615	615	this Act, is constitutional or unconstitutional, or otherwise valid
616	616	or invalid, under the state or federal constitution is an
617	617	accelerated appeal.
618	618	(c) If the judgment or order is interlocutory, an
619	619	interlocutory appeal may be taken from the judgment or order and is
620	620	an accelerated appeal.
621	621	(d) A district court in Travis County may grant or deny a
622	622	temporary or otherwise interlocutory injunction or a permanent
623	623	injunction on the grounds of the constitutionality or
624	624	unconstitutionality, or other validity or invalidity, under the
625	625	state or federal constitution of all or any part of Chapter 230,
626	626	Insurance Code, as added by this Act.
627	627	(e) There is a direct appeal to the Texas Supreme Court from
628	628	an order, however characterized, of a trial court granting or
629	629	denying a temporary or otherwise interlocutory injunction or a
630	630	permanent injunction on the grounds of the constitutionality or
631	631	unconstitutionality, or other validity or invalidity, under the
632	632	state or federal constitution of all or any part of Chapter 230,
633	633	Insurance Code, as added by this Act.
634	634	(f) The direct appeal is an accelerated appeal.
635	635	(g) This section exercises the authority granted by Section
636	636	3-b, Article V, Texas Constitution.
637	637	(h) The filing of a direct appeal under this section will
638	638	automatically stay any temporary or otherwise interlocutory
639	639	injunction or permanent injunction granted in accordance with this
640	640	section pending final determination by the Texas Supreme Court,
641	641	unless the supreme court makes specific findings that the applicant
642	642	seeking such injunctive relief has pleaded and proved that:
643	643	(1) the applicant has a probable right to the relief it
644	644	seeks on final hearing; and
645	645	(2) the applicant will suffer a probable injury that
646	646	is imminent and irreparable, and that the applicant has no other
647	647	adequate legal remedy.
648	648	(i) An appeal under this section, including an
649	649	interlocutory, accelerated, or direct appeal, is governed, as
650	650	applicable, by the Texas Rules of Appellate Procedure, including
651	651	Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
652	652	38.6(a) and (b), 40.1(b), and 49.4.
653	653	SECTION 6. An entity may apply for a credit under Chapter
654	654	230, Insurance Code, as added by this Act, only for an expenditure
655	655	made on or after September 1, 2018.
656	656	SECTION 7. The comptroller of public accounts shall make
657	657	the initial determination of net savings and report regarding that
658	658	savings as required by Section 230.057, Insurance Code, as added by
659	659	this Act, not later than December 31, 2020, based on the state
660	660	fiscal biennium ending August 31, 2019.
661	661	SECTION 8. Chapter 230, Insurance Code, as added by this
662	662	Act, applies only to a report originally due on or after September
663	663	1, 2018.
664	664	SECTION 9. (a) The amount of $270,000,000 of the
665	665	unencumbered appropriations from the general revenue fund for the
666	666	state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts
667	667	of the 85th Legislature, Regular Session, 2017 (the General
668	668	Appropriations Act), to the Health and Human Services Commission is
669	669	transferred to the Texas Education Agency to be used by the agency
670	670	during that state fiscal biennium as follows:
671	671	(1) $150,000,000 is allocated to fund financial
672	672	hardship grants under Subchapter H, Chapter 42, Education Code, as
673	673	added by this Act;
674	674	(2) $60,000,000 is allocated to fund payments to
675	675	open-enrollment charter schools under Section 12.106(d), Education
676	676	Code, as added by this Act; and
677	677	(3) $60,000,000 is allocated for the existing debt
678	678	allotment under Section 46.032, Education Code, as amended by this
679	679	Act.
680	680	(b) The Health and Human Services Commission shall identify
681	681	the strategies and objectives out of which the transfer under
682	682	Subsection (a) of this section is to be made.
683	683	SECTION 10. (a) Except as otherwise provided by this Act:
684	684	(1) this Act takes effect immediately if it receives a
685	685	vote of two-thirds of all the members elected to each house, as
686	686	provided by Section 39, Article III, Texas Constitution; and
687	687	(2) if this Act does not receive the vote necessary for
688	688	immediate effect, this Act takes effect December 1, 2017.
689	689	(b) Chapter 230, Insurance Code, as added by this Act, takes
690	690	effect September 1, 2018.