85S11106 BEF/KKA-D
By: Simmons H.B. No. 253
A BILL TO BE ENTITLED
AN ACT
relating to public school finance, including the establishment of a
tax credit scholarship and educational expense assistance program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Effective September 1, 2018, Section 12.106,
Education Code, is amended by adding Subsection (d) to read as
follows:
(d) In addition to other amounts provided by this section, a
charter holder is entitled to receive, for the open-enrollment
charter school, funding per student in average daily attendance in
an amount equal to the guaranteed level of state and local funds per
student per cent of tax effort under Section 46.032(a) multiplied
by the lesser of:
(1) the state average interest and sinking fund tax
rate imposed by school districts for the current year; or
(2) a rate that would result in a total amount to which
charter schools are entitled under this subsection for the current
year equal to $60 million.
SECTION 2. Chapter 42, Education Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM
Sec. 42.451. FINANCIAL HARDSHIP GRANTS. (a) From amounts
appropriated for this subchapter, the commissioner may administer a
grant program that provides grants to school districts to defray
financial hardships resulting from changes made to Chapter 41 and
this chapter that apply after the 2016-2017 school year.
(b) The commissioner shall award grants under this
subchapter to districts as provided by Section 42.452.
(c) Except as provided by Subsection (d), funding provided
to a district under this subchapter is in addition to all other
funding provided under Chapter 41 and this chapter.
(d) A district is not eligible for funding under this
subchapter for a school year if the district receives for that
school year an adjustment of the district's taxable value of
property under Section 42.2521. A district may decline an
adjustment under Section 42.2521 to maintain eligibility for
funding under this subchapter.
(e) The commissioner may obtain additional information as
needed from a district or other state or local agency to make
determinations in awarding grants under this subchapter.
Sec. 42.452. AWARD OF GRANTS; AMOUNT. (a) The commissioner
shall award grants to school districts based on the following
formula:
HG = (PL-CL) X (TR) X (TAHG/TEHG)
where:
"HG" is the amount of a district's hardship grant;
"PL" is the amount of funding under previous law to which a
district would be entitled under Chapter 41 and this chapter as
those chapters existed on January 1, 2017, determined using current
school year data for the district;
"CL" is the amount of current law funding under Chapter 41 and
this chapter to which a district is entitled;
"TR" is a district's maintenance and operations tax rate, as
specified by the comptroller's most recent certified report;
"TAHG" is the total funding available for grants under
Section 42.456 for a school year; and
"TEHG" is the sum of the combined amounts for all districts
calculated by applying the formula (PL-CL) X (TR) for each
district.
(b) A school district's hardship grant awarded under this
subchapter for a school year may not exceed the lesser of:
(1) the amount equal to 10 percent of the total amount
of funds available for grants under this subchapter for that school
year; or
(2) the amount by which "PL" exceeds "CL" for that
district for that school year.
(c) For purposes of calculating the formula under
Subsection (a), the commissioner shall:
(1) if the value of (PL-CL) for a school district
results in a negative number, use zero for the value of (PL-CL);
(2) if a school district's maintenance and operations
tax rate ("TR") is greater than $1, use $1 for the value of "TR";
(3) use a maintenance and operations tax rate ("TR")
of $1 for each open-enrollment charter school, each special-purpose
school district established under Subchapter H, Chapter 11, and the
South Texas Independent School District; and
(4) if (TAHG/TEHG) equals a value greater than one,
use a value of one for (TAHG/TEHG).
(d) If funds remain available under this subchapter for a
school year after determining initial grant amounts under
Subsection (a), as adjusted to reflect the limits imposed by
Subsection (b), the commissioner shall reapply the formula as
necessary to award all available funds.
Sec. 42.453. ELIGIBILITY OF OPEN-ENROLLMENT CHARTER
SCHOOL. An open-enrollment charter school is eligible for a grant
under this subchapter in the same manner as a school district.
Sec. 42.454. REGIONAL EDUCATION SERVICE CENTERS AND COUNTY
DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education
service center or a county department of education is not eligible
for a grant under this subchapter.
Sec. 42.455. CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. A
school district is not eligible for a grant under this subchapter if
for the 2015-2016 school year the district's expenditures per
student in average daily attendance, excluding bond debt service
payments, capital outlays, and facilities acquisition and
construction costs, exceeded an amount that is equal to 110 percent
of the state average amount for that school year of expenditures per
student in average daily attendance, excluding bond debt service
payments, capital outlays, and facilities acquisition and
construction costs, as those amounts are determined by the
commissioner.
Sec. 42.456. FUNDING LIMIT. The amount of grants awarded by
the commissioner under this subchapter may not exceed $100 million
for the 2017-2018 school year or $50 million for the 2018-2019
school year.
Sec. 42.457. NO ADJUSTMENT BASED ON REVISED DATA. The
commissioner may not adjust the amount of a school district's grant
under this subchapter based on revisions to the district's data
received after a grant has been awarded.
Sec. 42.458. RULES. The commissioner may adopt rules as
necessary to administer this subchapter.
Sec. 42.459. DETERMINATION FINAL. A determination by the
commissioner under this subchapter is final and may not be
appealed.
Sec. 42.460. EXPIRATION. This subchapter expires September
1, 2019.
SECTION 3. Effective September 1, 2018, Section 46.032(a),
Education Code, is amended to read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is the lesser
of:
(1) $40 [$35] or a greater amount for any year provided
by appropriation; or
(2) the amount that would result in a total additional
amount of state funds under this subchapter for the current year
equal to $60 million in excess of the state funds to which school
districts would have been entitled under this section if the
guaranteed level amount were $35;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds by the quotient of the district's taxable
value of property as determined under Subchapter M, Chapter 403,
Government Code, or, if applicable, under Section 42.2521, divided
by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521.
SECTION 4. Subtitle B, Title 3, Insurance Code, is amended
by adding Chapter 230 to read as follows:
CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
CERTAIN EDUCATIONAL ASSISTANCE ORGANIZATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 230.001. DEFINITIONS. In this chapter:
(1) "Educational assistance organization" means an
organization that:
(A) has the ability according to the
organization's charter to award scholarships to or pay educational
expenses for eligible students in:
(i) public elementary or secondary schools
located in this state; or
(ii) nonpublic elementary or secondary
schools located in this state:
(a) that meet the requirements of
Section 230.052;
(b) at which a student may fulfill
this state's compulsory attendance requirements; and
(c) that are not in violation of the
federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.);
and
(B) uses part of its annual revenue for the
purpose provided by Paragraph (A).
(2) "State premium tax liability" means any liability
incurred by an entity under Chapter 221, 222, or 224.
(3) "Student with a disability" means a student who
is:
(A) eligible to participate in a school
district's special education program under Section 29.003,
Education Code; or
(B) covered by Section 504, Rehabilitation Act of
1973 (29 U.S.C. Section 794).
Sec. 230.002. RULES; PROCEDURES. (a) The comptroller
shall adopt rules and procedures to implement, administer, and
enforce this chapter.
(b) A rule adopted under Subsection (a) is binding on an
organization that applies for certification as an educational
assistance organization, an entity that applies for a credit, and a
state or local governmental entity, including a political
subdivision, as necessary to implement, administer, and enforce
this chapter.
SUBCHAPTER B. SCHOLARSHIP AND EDUCATIONAL EXPENSE ASSISTANCE
PROGRAM
Sec. 230.051. CERTIFICATION OF EDUCATIONAL ASSISTANCE
ORGANIZATION. (a) An organization may apply to the comptroller for
certification as a certified educational assistance organization
during an application period provided by the comptroller.
(b) To be eligible for certification, the organization:
(1) must:
(A) be exempt from federal tax under Section
501(a) of the Internal Revenue Code of 1986 by being listed as an
exempt organization in Section 501(c)(3) of that code;
(B) be in good standing with the state;
(C) be located in the state;
(D) allocate at least 90 percent of its annual
revenue from contributions that are designated for scholarships or
educational expense assistance for eligible students under this
chapter for student scholarships and assistance for educational
expenses, including tuition, transportation, textbooks, and other
supplies, and for other related educational expense assistance as
described by this section;
(E) award scholarships and assistance for
qualifying educational expenses to eligible students who
demonstrate the greatest financial and academic need;
(F) agree to give each donor a receipt for money
contributed to the organization that includes the name of the
organization, the name of the donor, the amount of the
contribution, the information required by Section 230.054(c), and
any other information required by the comptroller;
(G) demonstrate experience and technical
expertise in:
(i) accepting, processing, and tracking
applications for scholarships or educational expense assistance;
and
(ii) awarding scholarships to students in
primary or secondary schools;
(H) agree to be independently audited on an
annual basis and file the audit with the comptroller; and
(I) disburse within two academic years of receipt
contributions received from and designated by entities for
scholarships or educational expense assistance under this chapter;
and
(2) may not:
(A) award all scholarships under this chapter to
students who attend a particular school or pay educational expenses
incurred only at a particular school;
(B) provide to a student a scholarship in an
annual amount that exceeds the amount provided under Section
230.055(a) unless the money used to provide the portion of the
scholarship in excess of that amount was contributed by a person
other than an entity that notifies the organization under Section
230.054(c) that the entity may apply for a tax credit for the
contribution; and
(C) provide to a student educational expense
assistance in excess of the amount provided under Section
230.055(b), unless the money used to provide the portion of the
assistance in excess of that amount was contributed by a person
other than an entity that notifies the organization under Section
230.054(c) that the entity may apply for a tax credit for the
contribution, including assistance for:
(i) facility fees;
(ii) instructional materials;
(iii) school supplies;
(iv) tutoring;
(v) academic after-school programs;
(vi) school or lab fees;
(vii) before-school or after-school child
care; and
(viii) transportation expenses, including
the cost to transfer from one public school to another.
(c) The comptroller shall certify one organization as the
primary certified educational assistance organization and one
organization as the secondary certified educational assistance
organization. The comptroller shall select the organizations to
certify as the primary and secondary certified educational
assistance organizations from among the organizations that apply
under Subsection (a) and meet the requirements of Subsection (b).
The comptroller has broad discretion in selecting the primary and
secondary certified educational assistance organizations.
(d) The comptroller shall notify all organizations that
apply under Subsection (a) of the comptroller's selections under
Subsection (c).
(e) The comptroller shall attempt to maintain one primary
and one secondary certified educational assistance organization at
all times. The comptroller shall provide an application period
under Subsection (a) as soon as practicable after the comptroller
learns there is, or is likely to be, a vacancy for the primary or
secondary certified educational assistance organization.
(f) The comptroller's selections under Subsection (c) are
final and are not appealable.
Sec. 230.0511. PERFORMANCE OF CERTIFIED EDUCATIONAL
ASSISTANCE ORGANIZATION POWERS AND DUTIES. (a) Except as provided
by Subsection (b), the organization certified as the primary
certified educational assistance organization shall perform the
powers and duties assigned to the certified educational assistance
organization under this chapter.
(b) The organization certified as the secondary certified
educational assistance organization shall perform the powers and
duties assigned to the certified educational assistance
organization under this chapter if:
(1) the organization certified as the primary
certified educational assistance organization has its
certification revoked; or
(2) the comptroller otherwise determines the
organization certified as the primary educational assistance
organization is unable to perform the powers and duties assigned to
the certified educational assistance organization under this
chapter.
(c) A reference in this chapter or other law to the
certified educational assistance organization means the
organization performing the powers and duties of the certified
educational assistance organization under Subsection (a) or (b).
Sec. 230.0512. ALLOCATION OF MONEY DESIGNATED FOR
SCHOLARSHIPS OR EDUCATIONAL EXPENSE ASSISTANCE. Of the amount
required to be allocated as provided by Section 230.051(b)(1)(D),
the certified educational assistance organization shall use:
(1) at least 80 percent to award scholarships as
described by Section 230.055(a); and
(2) not more than 20 percent to award educational
expense assistance as described by Section 230.055(b).
Sec. 230.052. NONPUBLIC SCHOOL REQUIREMENTS. The certified
educational assistance organization may not award scholarships to
or pay educational expenses for eligible students enrolled in a
nonpublic school unless the nonpublic school executes a notarized
affidavit, with supporting documents, concerning the school's
qualification for scholarships and educational expense assistance
for eligible students who receive assistance from the certified
educational assistance organization, including evidence of:
(1) accreditation by the Texas Education Agency or by
an organization recognized by the Texas Private School
Accreditation Commission;
(2) annual administration of a nationally
norm-referenced assessment instrument or the appropriate
assessment instrument required under Section 39.023, Education
Code;
(3) valid certificate of occupancy; and
(4) policy statements regarding:
(A) admissions;
(B) curriculum;
(C) safety;
(D) food service inspection; and
(E) student to teacher ratios.
Sec. 230.053. ELIGIBILITY OF STUDENTS FOR SCHOLARSHIPS;
INCLUSION IN CALCULATION OF EQUALIZED WEALTH LEVEL. (a) A student
is eligible to apply for a scholarship from the certified
educational assistance organization under this chapter if the
student:
(1) is a student with a disability;
(2) is eligible to attend a public school under
Section 25.001, Education Code;
(3) was enrolled in a public school in this state
during the entire preceding academic year; and
(4) will attend a nonpublic school in this state
during the entire academic year for which the scholarship is
awarded.
(b) A student who establishes eligibility under this
section may apply for a scholarship from the certified educational
assistance organization under this chapter for each academic year
until the student:
(1) graduates from high school;
(2) is no longer eligible to attend a public school
under Section 25.001, Education Code; or
(3) enrolls in a public school, including an
open-enrollment charter school.
(c) Notwithstanding Subsection (b), the comptroller shall
establish guidelines for, in the least disruptive manner possible:
(1) a student who has previously received a
scholarship to enroll in a public school, including an
open-enrollment charter school; and
(2) a student who previously received a scholarship
and subsequently enrolled in a public school, including an
open-enrollment charter school, to reestablish eligibility for a
scholarship.
(d) The certified educational assistance organization shall
award scholarships to eligible students who apply in accordance
with this chapter to the extent money is available for that purpose.
(e) For the first year a student receives a scholarship
under this chapter to attend a nonpublic school, the student is
included in the weighted average daily attendance of the school
district the student would otherwise attend for purposes of
determining the district's equalized wealth level under Chapter 41,
Education Code.
Sec. 230.0531. ELIGIBILITY OF STUDENTS FOR EDUCATIONAL
EXPENSE ASSISTANCE. (a) A student is eligible to apply for
educational expense assistance from the certified educational
assistance organization under this chapter for an academic year if
the student:
(1) is a student with a disability; and
(2) will attend a public school in this state during
the entire academic year for which the educational expense
assistance is awarded.
(b) A student who establishes eligibility under this
section may apply for educational expense assistance from the
certified educational assistance organization under this chapter
for each academic year the student attends a public school in this
state.
(c) The certified educational assistance organization shall
award educational expense assistance to eligible students who apply
in accordance with this chapter to the extent money is available for
that purpose.
Sec. 230.0532. NOTICE TO CERTAIN PARENTS. A school
district shall provide written notice of the availability of
assistance under this chapter to the parent of a student who is
eligible to apply for a scholarship to attend a nonpublic school
under Section 230.053. The notice under this section must inform
the parent that a nonpublic school is not subject to laws regarding
the provision of education services in the same manner as a public
school, and a student with a disability attending a nonpublic
school may not receive the services a student with a disability
attending a public school is entitled to receive under federal and
state law. The notice must provide information regarding rights to
which a student with a disability is entitled under federal and
state law if the student attends a public school, including:
(1) rights provided under the Individuals with
Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
including:
(A) an individualized education program;
(B) education services provided in the least
restrictive environment;
(C) instruction from certified teachers;
(D) due process hearings to ensure proper and
full implementation of an individualized education program;
(E) transition and planning services; and
(F) supplementary aids and services;
(2) rights provided under Subchapter A, Chapter 29,
Education Code; and
(3) other rights provided under federal or state law.
Sec. 230.054. CREDIT FOR CONTRIBUTIONS. (a) An entity may
apply for a credit under this chapter only for money contributed to
the certified educational assistance organization and designated
for scholarships or educational expense assistance for eligible
students.
(b) An entity may not apply for a credit under this chapter
for a contribution made to the certified educational assistance
organization if:
(1) the entity requires that the contribution benefit
a particular person or school; or
(2) the contribution is designated to provide a
scholarship or educational expense assistance for an entity
employee or for a spouse or dependent of an entity employee.
(c) An entity shall notify the certified educational
assistance organization in writing when the entity makes a
contribution if the entity may apply for a tax credit under this
chapter for the contribution. An entity may not apply for a credit
for the contribution unless the entity provides the notification at
the time the contribution is made. The certified educational
assistance organization shall indicate on the receipt provided
under Section 230.051(b)(1)(F) that the entity made the
notification under this subsection.
Sec. 230.055. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL
EXPENSE ASSISTANCE. (a) The maximum scholarship amount the
certified educational assistance organization may award to a
student under this chapter for an academic year using money
contributed by an entity that notifies the organization under
Section 230.054(c) that the entity may apply for a tax credit for
the contribution may not exceed the lesser of:
(1) $10,000; and
(2) the full tuition amount for the nonpublic school
the student attends.
(b) The maximum educational expense assistance the
certified educational assistance organization may award to a
student under this chapter using money contributed by an entity
that notifies the organization under Section 230.054(c) that the
entity may apply for a tax credit for the contribution may not
exceed $500 for the 2019 state fiscal year, increased by five
percent each subsequent year.
Sec. 230.056. REVOCATION. (a) The comptroller shall
revoke a certification provided under Section 230.051 if the
comptroller finds that a certified educational assistance
organization:
(1) is no longer eligible under Section 230.051; or
(2) intentionally and substantially violates this
chapter.
(b) The comptroller has broad discretion in determining
whether to revoke a certification under Subsection (a).
(c) The comptroller shall notify a certified educational
assistance organization in writing of the comptroller's decision to
revoke the organization's certification. If the comptroller
revokes an organization's certification, the comptroller shall
include in the notice of revocation the reasons for the revocation.
(d) If the comptroller revokes a certified educational
assistance organization's certification under Subsection (a), the
organization may request in writing a reconsideration of the
revocation not later than the 10th day after the date of the notice
under Subsection (c) or the revocation is final.
(e) An organization that requests a reconsideration under
Subsection (d) may submit to the comptroller not later than the 30th
day after the date the request for reconsideration is submitted
additional information and documents to support the organization's
request for reconsideration.
(f) The comptroller's reconsideration of a revocation under
this section is not a contested case under Chapter 2001, Government
Code. The comptroller's decision on a request for reconsideration
of a revocation is final and is not appealable.
(g) This section does not create a cause of action to
contest a decision of the comptroller to revoke a certified
educational assistance organization's certification under this
chapter.
(h) Revocation of a certification under this section does
not affect the validity of a tax credit relating to a contribution
made before the date of revocation.
Sec. 230.057. REPORT OF NET SAVINGS TO PUBLIC EDUCATION.
(a) In this section, "net savings" means any positive difference in
a state fiscal year between:
(1) the amount by which state spending on public
education for that year is reduced as a result of students receiving
scholarships and educational expense assistance from the certified
educational assistance organization under this chapter; and
(2) the amount by which state revenue derived from
Chapters 221, 222, and 224 is reduced as a result of tax credits
under this chapter.
(b) Not later than December 31 of each even-numbered year,
the comptroller shall determine the amount of net savings for the
previous state fiscal biennium and make available to the public a
report of that amount of savings.
SUBCHAPTER C. CREDIT
Sec. 230.101. CREDIT. An entity may apply for a credit
against the entity's state premium tax liability in the amount and
under the conditions and limitations provided by this chapter. The
comptroller shall award credits as provided by Section 230.103.
Sec. 230.102. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
Subject to Subsections (b) and (c), the amount of an entity's credit
is equal to the lesser of the amount of the qualifying contributions
made to the certified educational assistance organization or 50
percent of the entity's state premium tax liability.
(b) The total amount of tax credits that may be awarded
under this chapter for a state fiscal year may not exceed $75
million.
(c) The comptroller by rule shall prescribe procedures by
which the comptroller may allocate credits under this chapter. The
procedures must provide that credits are first allocated to
entities that were granted preliminary approval for a credit under
Section 230.1025 in the amount that was preliminarily approved. The
procedures must provide that any remaining credits are allocated on
a first-come, first-served basis, based on the date the
contribution was initially made.
(d) The comptroller may require an entity to notify the
comptroller of the amount the entity intends or expects to apply for
under this chapter before the beginning of a state fiscal year or at
any other time required by the comptroller.
Sec. 230.1025. PRELIMINARY APPROVAL FOR CREDIT. (a)
Before making a contribution to the certified educational
assistance organization, an entity may apply to the comptroller for
preliminary approval of a credit under this chapter for the
contribution.
(b) An entity must apply for preliminary approval of a
credit on a form provided by the comptroller that includes the
amount the entity expects to contribute and any other information
required by the comptroller.
(c) The comptroller shall grant preliminary approval for
credits under this chapter on a first-come, first-served basis,
based on the date the application for preliminary approval is
received by the comptroller.
(d) The comptroller shall grant preliminary approval for a
credit under this chapter if the total amount of credits
preliminarily approved under this chapter does not exceed the
amount provided by Section 230.102(b).
(e) A credit for which the comptroller grants preliminary
approval remains subject to the limitation under Section 230.102(a)
and any other limitations prescribed by this chapter.
Sec. 230.103. APPLICATION FOR CREDIT. (a) An entity must
apply for a credit under this chapter on or with the tax return for
the taxable year and submit with the application each receipt
issued under Section 230.051(b)(1)(F) that includes the
information required by Section 230.054(c).
(b) The comptroller shall adopt a form for the application
for the credit. An entity must use this form in applying for the
credit.
(c) The comptroller may award a credit to an entity that
applies for the credit under Subsection (a) if the entity is
eligible for the credit and the credit is available under Section
230.102(b). The comptroller has broad discretion in determining
whether to grant or deny an application for a credit.
(d) The comptroller shall notify an entity in writing of the
comptroller's decision to grant or deny the application under
Subsection (a). If the comptroller denies an entity's application,
the comptroller shall include in the notice of denial the reasons
for the comptroller's decision.
(e) If the comptroller denies an entity's application under
Subsection (a), the entity may request in writing a reconsideration
of the application not later than the 10th day after the date of the
notice under Subsection (d). If the entity does not request a
reconsideration of the application on or before that date, the
comptroller's decision is final.
(f) An entity that requests a reconsideration under
Subsection (e) may submit to the comptroller not later than the 30th
day after the date the request for reconsideration is submitted
additional information and documents to support the entity's
request for reconsideration.
(g) The comptroller's reconsideration of an application
under this section is not a contested case under Chapter 2001,
Government Code. The comptroller's decision on a request for
reconsideration of an application is final and is not appealable.
(h) This section does not create a cause of action to
contest a decision of the comptroller to deny an application for a
credit under this chapter.
Sec. 230.104. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
may not convey, assign, or transfer the credit allowed under this
chapter to another entity unless all of the assets of the entity are
conveyed, assigned, or transferred in the same transaction.
Sec. 230.105. NOTICE OF AVAILABILITY OF CREDIT. The
comptroller shall provide notice of the availability of the credit
under this chapter on the comptroller's Internet website, in the
instructions for insurance premium tax report forms, and in any
notice sent to an entity concerning the requirement to file an
insurance premium tax report.
SECTION 5. (a) The constitutionality and other validity
under the state or federal constitution of all or any part of
Chapter 230, Insurance Code, as added by this Act, may be determined
in an action for declaratory judgment in a district court in Travis
County under Chapter 37, Civil Practice and Remedies Code, except
that this section does not authorize an award of attorney's fees
against this state and Section 37.009, Civil Practice and Remedies
Code, does not apply to an action filed under this section. This
section does not authorize a taxpayer suit to contest the denial of
a tax credit by the comptroller of public accounts.
(b) An appeal of a declaratory judgment or order, however
characterized, of a district court, including an appeal of the
judgment of an appellate court, holding or otherwise determining
that all or any part of Chapter 230, Insurance Code, as added by
this Act, is constitutional or unconstitutional, or otherwise valid
or invalid, under the state or federal constitution is an
accelerated appeal.
(c) If the judgment or order is interlocutory, an
interlocutory appeal may be taken from the judgment or order and is
an accelerated appeal.
(d) A district court in Travis County may grant or deny a
temporary or otherwise interlocutory injunction or a permanent
injunction on the grounds of the constitutionality or
unconstitutionality, or other validity or invalidity, under the
state or federal constitution of all or any part of Chapter 230,
Insurance Code, as added by this Act.
(e) There is a direct appeal to the Texas Supreme Court from
an order, however characterized, of a trial court granting or
denying a temporary or otherwise interlocutory injunction or a
permanent injunction on the grounds of the constitutionality or
unconstitutionality, or other validity or invalidity, under the
state or federal constitution of all or any part of Chapter 230,
Insurance Code, as added by this Act.
(f) The direct appeal is an accelerated appeal.
(g) This section exercises the authority granted by Section
3-b, Article V, Texas Constitution.
(h) The filing of a direct appeal under this section will
automatically stay any temporary or otherwise interlocutory
injunction or permanent injunction granted in accordance with this
section pending final determination by the Texas Supreme Court,
unless the supreme court makes specific findings that the applicant
seeking such injunctive relief has pleaded and proved that:
(1) the applicant has a probable right to the relief it
seeks on final hearing; and
(2) the applicant will suffer a probable injury that
is imminent and irreparable, and that the applicant has no other
adequate legal remedy.
(i) An appeal under this section, including an
interlocutory, accelerated, or direct appeal, is governed, as
applicable, by the Texas Rules of Appellate Procedure, including
Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
38.6(a) and (b), 40.1(b), and 49.4.
SECTION 6. An entity may apply for a credit under Chapter
230, Insurance Code, as added by this Act, only for an expenditure
made on or after September 1, 2018.
SECTION 7. The comptroller of public accounts shall make
the initial determination of net savings and report regarding that
savings as required by Section 230.057, Insurance Code, as added by
this Act, not later than December 31, 2020, based on the state
fiscal biennium ending August 31, 2019.
SECTION 8. Chapter 230, Insurance Code, as added by this
Act, applies only to a report originally due on or after September
1, 2018.
SECTION 9. (a) The amount of $270,000,000 of the
unencumbered appropriations from the general revenue fund for the
state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts
of the 85th Legislature, Regular Session, 2017 (the General
Appropriations Act), to the Health and Human Services Commission is
transferred to the Texas Education Agency to be used by the agency
during that state fiscal biennium as follows:
(1) $150,000,000 is allocated to fund financial
hardship grants under Subchapter H, Chapter 42, Education Code, as
added by this Act;
(2) $60,000,000 is allocated to fund payments to
open-enrollment charter schools under Section 12.106(d), Education
Code, as added by this Act; and
(3) $60,000,000 is allocated for the existing debt
allotment under Section 46.032, Education Code, as amended by this
Act.
(b) The Health and Human Services Commission shall identify
the strategies and objectives out of which the transfer under
Subsection (a) of this section is to be made.
SECTION 10. (a) Except as otherwise provided by this Act:
(1) this Act takes effect immediately if it receives a
vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution; and
(2) if this Act does not receive the vote necessary for
immediate effect, this Act takes effect December 1, 2017.
(b) Chapter 230, Insurance Code, as added by this Act, takes
effect September 1, 2018.