Texas 2017 - 85th 1st C.S.

Texas House Bill HB52 Compare Versions

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1	1	85S10296 KJE-F
2	2	By: Simmons H.B. No. 52
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of an individualized education plan
8	8	account program for certain children with disabilities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 29, Education Code, is amended by adding
11	11	Subchapter J to read as follows:
12	12	SUBCHAPTER J. INDIVIDUALIZED EDUCATION PLAN ACCOUNT PROGRAM
13	13	Sec. 29.351. DEFINITIONS. In this subchapter:
14	14	(1) "Account" means an individualized education plan
15	15	account established under the program.
16	16	(2) "Child with a disability" means a child who is:
17	17	(A) eligible to participate in a school
18	18	district's special education program under Section 29.003; or
19	19	(B) protected by Section 504, Rehabilitation Act
20	20	of 1973 (29 U.S.C. Section 794).
21	21	(3) "Curriculum" means a complete course of study for
22	22	a particular content area or grade level.
23	23	(4) "Financial institution" means a bank, credit
24	24	union, savings bank, or savings and loan association organized
25	25	under the laws of this state, the laws of another state, or federal
26	26	law that has its main office or a branch office in this state. The
27	27	term does not include any institution the deposits of which are not
28	28	insured by the Federal Deposit Insurance Corporation or the
29	29	National Credit Union Administration.
30	30	(5) "Parent" means a resident of this state who is a
31	31	natural or adoptive parent, managing or possessory conservator,
32	32	legal guardian, custodian, or other person with legal authority to
33	33	act on behalf of a child.
34	34	(6) "Postsecondary educational institution" means:
35	35	(A) an institution of higher education or a
36	36	private or independent institution of higher education as defined
37	37	by Section 61.003; or
38	38	(B) a career school or college as defined by
39	39	Section 132.001.
40	40	(7) "Program" means the individualized education plan
41	41	account program established under this subchapter.
42	42	(8) "Program participant" means a child and a parent
43	43	of a child enrolled in the program.
44	44	Sec. 29.352. PURPOSES. The purposes of the individualized
45	45	education plan account program are to:
46	46	(1) improve public schools and overall academic
47	47	performance;
48	48	(2) promote efficiency;
49	49	(3) promote and preserve the liberties and rights of
50	50	the people; and
51	51	(4) increase parental options.
52	52	Sec. 29.353. ESTABLISHMENT OF PROGRAM. (a) The
53	53	comptroller shall establish and administer an individualized
54	54	education plan account program to provide funding for certain
55	55	education-related expenses of eligible children.
56	56	(b) The comptroller, with cooperation from the agency,
57	57	shall ensure that information about the program is readily
58	58	available to the public through various sources, including the
59	59	comptroller's Internet website.
60	60	Sec. 29.354. ELIGIBLE CHILD. (a) A child is eligible to
61	61	participate in the program if the child is:
62	62	(1) eligible to attend a public school under Section
63	63	25.001; and
64	64	(2) a child with a disability.
65	65	(b) A child who establishes eligibility under this section
66	66	may participate in the program until the earliest of the following
67	67	dates:
68	68	(1) the date on which the child no longer meets the
69	69	eligibility requirements under Subsection (a);
70	70	(2) the date that is three months after the date on
71	71	which the child:
72	72	(A) graduates from high school; or
73	73	(B) receives a high school equivalency
74	74	certificate under Section 7.111;
75	75	(3) the date on which the child enrolls in a public
76	76	school, including an open-enrollment charter school; or
77	77	(4) the date on which the child is declared ineligible
78	78	for the program by the comptroller under this subchapter.
79	79	(c) Notwithstanding Subsection (b), the comptroller shall
80	80	establish guidelines for, in the least disruptive manner possible:
81	81	(1) a child participating in the program to cease
82	82	participation and enroll in a public school, including an
83	83	open-enrollment charter school; and
84	84	(2) a child who previously participated in the program
85	85	and subsequently enrolled in a public school, including an
86	86	open-enrollment charter school, to resume participation in the
87	87	program.
88	88	Sec. 29.355. ENROLLMENT IN PROGRAM. (a) A parent of an
89	89	eligible child may enroll the child in the program for the following
90	90	school year.
91	91	(b) The comptroller, in consultation with the agency, shall
92	92	by rule create an enrollment form for the program and make the
93	93	enrollment form readily available to interested parents through
94	94	various sources, including the comptroller's Internet website. The
95	95	enrollment form must include spaces to provide the following
96	96	information:
97	97	(1) the name of the school district the child would
98	98	otherwise have attended;
99	99	(2) the name of the last public school in which the
100	100	child was enrolled, if any; and
101	101	(3) any other information necessary to determine
102	102	whether the child is eligible to participate in the program or the
103	103	amount of the payment the child, if eligible, would be entitled to
104	104	receive under the program.
105	105	(c) The comptroller shall provide to each parent who submits
106	106	an enrollment form a publication that describes the operation of
107	107	the program, including:
108	108	(1) expenses allowed under the program under Section
109	109	29.357;
110	110	(2) expense reporting requirements; and
111	111	(3) a description of the responsibilities of program
112	112	participants and the duties of the comptroller under this
113	113	subchapter.
114	114	(d) For each submitted enrollment form, the agency shall
115	115	determine whether the child is eligible to participate in the
116	116	program and report that determination to the comptroller.
117	117	Sec. 29.356. PARTICIPATION IN PROGRAM. (a) To receive
118	118	funding under the program, a parent of an eligible child must agree
119	119	to:
120	120	(1) spend funds received through the program only for
121	121	expenses allowed under Section 29.357;
122	122	(2) notify the comptroller if the child enrolls in a
123	123	public school, including an open-enrollment charter school, not
124	124	later than the 30th day after the date of enrollment; and
125	125	(3) inform the comptroller if the child graduates from
126	126	high school or receives a high school equivalency certificate under
127	127	Section 7.111.
128	128	(b) The parent of a child participating in the program is
129	129	the trustee of the child's account.
130	130	(c) The comptroller shall provide annually to each program
131	131	participant the publication provided under Section 29.355(c).
132	132	Sec. 29.357. APPROVED EDUCATION-RELATED EXPENSES. (a)
133	133	Funds received under the program may be used only for the following
134	134	expenses incurred by a program participant:
135	135	(1) tuition and fees:
136	136	(A) at a private school accredited by an
137	137	organization that is recognized by the Texas Private School
138	138	Accreditation Commission;
139	139	(B) at a postsecondary educational institution
140	140	for a course described by Section 28.009 for which the child may
141	141	receive high school credit based on an agreement between the
142	142	institution and the school in which the child is enrolled; or
143	143	(C) for an online educational course or program
144	144	offered through the state virtual school network under Chapter 30A
145	145	or otherwise approved by the agency for public school students;
146	146	(2) the purchase of textbooks or other instructional
147	147	materials;
148	148	(3) payments for the purchase of a curriculum;
149	149	(4) fees for classes or other educational services
150	150	provided by a public school, if the classes or services do not
151	151	qualify the child to be included in the school's average daily
152	152	attendance;
153	153	(5) fees for services provided by a private tutor or
154	154	teaching service;
155	155	(6) fees for educational therapies or services
156	156	provided by a practitioner or provider, other than fees covered by
157	157	any federal, state, or local government benefit program, including
158	158	Medicaid or the children's health insurance program, or any
159	159	applicable private insurance;
160	160	(7) costs of computer hardware and software and other
161	161	technological devices that clearly may be used for educational
162	162	purposes, not to exceed in any year 10 percent of the total amount
163	163	paid to the program participant's account that year;
164	164	(8) fees for a nationally norm-referenced achievement
165	165	test or examination, an assessment instrument adopted by the agency
166	166	under Section 39.023, an advanced placement test or similar
167	167	examination, or any examination related to college or university
168	168	admission; and
169	169	(9) contributions to a qualified tuition program
170	170	established for the child that meets the requirements of Section
171	171	529 or 530, Internal Revenue Code of 1986, not to exceed in any year
172	172	25 percent of the total amount paid to the program participant's
173	173	account that year.
174	174	(b) Expenses allowed under Subsection (a) do not include
175	175	expenses for:
176	176	(1) consumable supplies, including paper, pens,
177	177	pencils, folders, and notebooks;
178	178	(2) food; or
179	179	(3) before-school or after-school child care and child
180	180	care during school holidays and vacations.
181	181	(c) An education service provider or vendor of educational
182	182	products must provide a program participant with a receipt for each
183	183	expense allowed under Subsection (a) charged by the provider or
184	184	vendor to the participant.
185	185	(d) The content or religious nature of a product or service
186	186	may not be considered in determining whether a payment for the
187	187	product or service is an expense allowed under Subsection (a).
188	188	(e) A finding that a program participant used funds
189	189	distributed under the program to pay for an expense not allowed
190	190	under Subsection (a) does not affect the validity of any payment
191	191	made by the participant for an expense that is allowed under that
192	192	subsection.
193	193	Sec. 29.358. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
194	194	an eligible child shall receive each year that the child
195	195	participates in the program a payment from the Foundation School
196	196	Program to the child's account in an amount that is equal to 90
197	197	percent of the state and local maintenance and operations revenue
198	198	to which the school district the child would otherwise attend would
199	199	be entitled for the child if the child enrolled in the district,
200	200	excluding any revenue under Subchapter C, Chapter 42, other than
201	201	revenue to which the district would be entitled as a result of the
202	202	special allotments under Sections 42.151, 42.152, and 42.160. The
203	203	comptroller shall base the calculation on a 100 percent attendance
204	204	rate.
205	205	(b) For purposes of Subsection (a), in calculating the
206	206	amount of any special allotments to which the school district would
207	207	be entitled for the child under Section 42.151 or 42.152, the
208	208	comptroller shall use the following weights or amounts that result
209	209	in the greatest amount of revenue:
210	210	(1) the weights for which the child qualifies under
211	211	the applicable section, including, if applicable, a weight for the
212	212	child's instructional arrangement if the child's instructional
213	213	arrangement can be determined; or
214	214	(2) the average amount per student received by the
215	215	district for the preceding school year for each special allotment
216	216	for which the child qualifies, regardless of the applicable
217	217	instructional arrangement, if any.
218	218	(c) In administering the program, the comptroller may use
219	219	funds from any public or private source that are available for that
220	220	purpose.
221	221	(d) Any funds remaining in a child's account at the end of a
222	222	fiscal year are carried forward to the next fiscal year unless
223	223	another provision of this subchapter mandates the closure of the
224	224	account.
225	225	(e) The parent of a child participating in the program may
226	226	make payments for the expenses of educational programs, services,
227	227	and products not covered by funds in the child's account.
228	228	(f) A payment under the program may not be financed using
229	229	federal funds or money appropriated from the available school fund.
230	230	Sec. 29.359. ADMINISTRATION OF ACCOUNTS. (a) The
231	231	comptroller may contract with one or more financial institutions to
232	232	establish and manage an account for each child participating in the
233	233	program. A program participant must be able to access the
234	234	participant's account by using an online or electronic transfer
235	235	payment service.
236	236	(b) The comptroller shall make quarterly payments to each
237	237	program participant's account in equal amounts on or before the
238	238	15th days of August, November, February, and May.
239	239	(c) The comptroller may deduct an amount from each quarterly
240	240	payment to a program participant's account to cover the
241	241	comptroller's cost of administering the program. The amount
242	242	deducted may not exceed three percent of the payment.
243	243	(d) Within the first month following the end of each fiscal
244	244	year, the comptroller shall reconcile payments made to and from all
245	245	accounts under the program.
246	246	(e) The comptroller shall coordinate as necessary to
247	247	calculate annually the savings to the state from the implementation
248	248	of the program.
249	249	(f) On the date on which a child ceases to participate in the
250	250	program for any reason, the child's account is closed and any
251	251	remaining funds are returned to the state for deposit in the
252	252	foundation school fund. This subsection does not affect a child's
253	253	eligibility to resume participation in the program.
254	254	(g) The comptroller may contract with a private entity to
255	255	administer all or any part of the program.
256	256	Sec. 29.360. RANDOM AUDITING. (a) The comptroller shall
257	257	randomly audit or contract with a private entity to randomly audit:
258	258	(1) accounts as necessary to ensure compliance with
259	259	applicable law and the requirements of the program; and
260	260	(2) education service providers and vendors of
261	261	educational products that accept funds distributed under the
262	262	program as necessary to ensure compliance with this subchapter.
263	263	(b) In auditing an account, provider, or vendor, the
264	264	comptroller or private entity may require that a program
265	265	participant, provider, or vendor provide further information and
266	266	documentation regarding any payment from the participant's
267	267	account.
268	268	(c) The private entity shall report to the comptroller any
269	269	violation of this subchapter or other relevant law found by the
270	270	entity during an audit conducted under this section.
271	271	Sec. 29.361. SUSPENSION OF ACCOUNT. (a) The comptroller
272	272	shall suspend the account of a program participant who fails to
273	273	comply with applicable law or a requirement of the program,
274	274	including a requirement under Section 29.356(a), or who
275	275	substantially misuses funds received under the program.
276	276	(b) On suspension of an account under Subsection (a), the
277	277	comptroller shall notify the participant in writing that the
278	278	account has been suspended and that no further payments may be made
279	279	from the account. The notification must specify the grounds for the
280	280	suspension and state that the participant has 10 business days to
281	281	respond and take any corrective action required by the comptroller.
282	282	(c) On the expiration of the 10-day period under Subsection
283	283	(b), the comptroller shall:
284	284	(1) order permanent closure of the suspended account
285	285	and declare the participant ineligible for the program;
286	286	(2) order temporary reinstatement of the account,
287	287	conditioned on the performance of a specified action by the
288	288	participant; or
289	289	(3) order full reinstatement of the account.
290	290	(d) If a program participant's account is suspended or
291	291	closed under this section, the comptroller may recover funds that
292	292	were used for expenses not allowed under Section 29.357(a) from the
293	293	participant or the entity that received the funds.
294	294	Sec. 29.362. TUITION AND FEES; REFUND PROHIBITED. (a) An
295	295	education service provider may not charge a child participating in
296	296	the program an amount greater than the standard amount charged for
297	297	that service by the provider.
298	298	(b) An education service provider or a vendor of educational
299	299	products receiving funds distributed under the program may not in
300	300	any manner rebate, refund, or credit to or share with a program
301	301	participant, or any person on behalf of a participant, any program
302	302	funds paid or owed by the participant to the provider or vendor.
303	303	Sec. 29.363. REFERRAL TO ATTORNEY GENERAL. (a) If the
304	304	comptroller obtains evidence of fraudulent use of an account, the
305	305	comptroller may refer the case to the attorney general for
306	306	investigation.
307	307	(b) With the consent of the appropriate local county or
308	308	district attorney, the attorney general has concurrent
309	309	jurisdiction with the consenting local prosecutor to prosecute an
310	310	offense referred to the attorney general under Subsection (a).
311	311	Sec. 29.364. PROVIDER ACCOUNTABILITY. (a) A private
312	312	school must be accredited by an organization that is recognized by
313	313	the Texas Private School Accreditation Commission to receive funds
314	314	distributed under the program.
315	315	(b) A private tutor or teaching service and a practitioner
316	316	or provider who provides educational therapies or services must be
317	317	licensed or accredited by a regional or national accrediting
318	318	organization to receive funds distributed under the program.
319	319	Sec. 29.365. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
320	320	AUTONOMY. (a) An education service provider or vendor of
321	321	educational products that receives funds distributed under the
322	322	program is not an agent of the state or federal government.
323	323	(b) Except as provided by this subchapter, the comptroller,
324	324	the agency, the State Board of Education, any other state agency, or
325	325	any school district may not:
326	326	(1) regulate the educational program of an education
327	327	service provider or vendor of educational products that receives
328	328	funds distributed under the program; or
329	329	(2) exercise control or supervision over a program
330	330	participant or an education service provider or vendor of
331	331	educational products that receives funds distributed under the
332	332	program.
333	333	(c) The program does not expand the regulatory authority of
334	334	the state or any school district to impose any additional
335	335	regulation on an education service provider or vendor of
336	336	educational products except those reasonably necessary to enforce
337	337	the program as provided by this subchapter.
338	338	(d) A private school may not be required to modify the
339	339	school's creed, practices, admissions policies, curriculum,
340	340	performance standards, or assessments to receive funds distributed
341	341	under the program.
342	342	(e) A private school voluntarily selected by a parent for
343	343	the parent's child to attend or a parent who homeschools the
344	344	parent's child, with or without governmental assistance, may not be
345	345	required to comply with any state law or rule governing the
346	346	applicable educational program that was not in effect on January 1,
347	347	2017.
348	348	(f) In any proceeding challenging a rule adopted by a state
349	349	agency or officer under this subchapter, the agency or officer has
350	350	the burden of proof to establish that the rule:
351	351	(1) is necessary to implement or enforce the program
352	352	as provided by this subchapter; and
353	353	(2) does not impose an undue burden on a program
354	354	participant or an education service provider or vendor of
355	355	educational products that receives or seeks to receive funds
356	356	distributed under the program.
357	357	Sec. 29.366. STUDENT RECORDS. On request by the parent of a
358	358	child participating in the program, the school district or
359	359	open-enrollment charter school that the child would otherwise
360	360	attend shall provide a copy of the child's school records possessed
361	361	by the district or school, if any, to the child's parent or, if
362	362	applicable, the private school the child attends.
363	363	Sec. 29.367. REPORTING NUMBER OF PARTICIPANTS. (a) Not
364	364	later than October 1 of each year, the commissioner shall notify the
365	365	comptroller and the Legislative Budget Board of the number of
366	366	eligible children likely to participate in the program,
367	367	disaggregated by the school district or open-enrollment charter
368	368	school the eligible children would otherwise attend.
369	369	(b) Not later than March 1 of each year, the commissioner
370	370	shall provide final information to the comptroller and the
371	371	Legislative Budget Board regarding the number of children
372	372	participating in the program, disaggregated in the same manner as
373	373	the initial information under Subsection (a).
374	374	Sec. 29.368. ANNUAL SURVEY. The comptroller may conduct an
375	375	annual parental satisfaction survey that asks each parent of a
376	376	child participating in the program to express:
377	377	(1) the parent's overall level of satisfaction with
378	378	the program; and
379	379	(2) the parent's opinion on specified topics and
380	380	issues relevant to the effectiveness of the program.
381	381	Sec. 29.369. DISTRICTS WITH HIGH PARTICIPATION RATE.
382	382	Notwithstanding any other law, a school district in which at least
383	383	one percent of resident children eligible to attend public school
384	384	under Section 25.001 are participating in the program shall receive
385	385	the following benefits:
386	386	(1) the district may elect to administer assessment
387	387	instruments only as necessary to comply with the Every Student
388	388	Succeeds Act (20 U.S.C. Section 6301 et seq.) and may be evaluated
389	389	for accountability purposes related to assessment only based on the
390	390	results of those assessment instruments;
391	391	(2) the district may create a local innovation plan
392	392	and be designated as a district of innovation under Chapter 12A
393	393	without complying with the requirements under Section 12A.001 or
394	394	12A.002;
395	395	(3) teachers employed by the district are entitled to
396	396	receive a stipend for attending a mathematics achievement academy
397	397	under Section 21.4553 or a reading-to-learn academy under Section
398	398	21.4554 in an amount equal to twice the amount established by the
399	399	commissioner for the applicable stipend;
400	400	(4) the agency shall award the district an additional
401	401	five percentage points toward the district's overall performance
402	402	rating under Section 39.054;
403	403	(5) the district is entitled to reimbursement from the
404	404	state for the cost of locating, identifying, and evaluating
405	405	children with disabilities who are enrolled in private schools in
406	406	the district in compliance with 20 U.S.C. Section 1412; and
407	407	(6) in addition to any funding the district receives
408	408	under Chapter 42, for each resident child participating in the
409	409	program, the district is entitled to receive for the first year in
410	410	which the child participates in the program an amount equal to the
411	411	difference between:
412	412	(A) the state and local maintenance and
413	413	operations revenue to which the district would be entitled for the
414	414	child if the child enrolled in the district, excluding any revenue
415	415	under Subchapter C, Chapter 42, other than revenue to which the
416	416	district would be entitled as a result of the special allotments
417	417	under Sections 42.151, 42.152, and 42.160, calculated in accordance
418	418	with Sections 29.358(a) and (b); and
419	419	(B) the amount the child's parent receives under
420	420	Section 29.358(a) for the year.
421	421	Sec. 29.370. GIFTS, GRANTS, AND DONATIONS. The comptroller
422	422	may solicit and accept gifts, grants, and donations from any public
423	423	or private source for any expenses related to the initial
424	424	implementation or administration of the program.
425	425	Sec. 29.371. RULES. The comptroller shall adopt rules as
426	426	necessary to implement this subchapter, including:
427	427	(1) rules regarding expense reporting requirements
428	428	for program participants; and
429	429	(2) rules for implementing this subchapter in a manner
430	430	that ensures compliance with federal law regarding confidentiality
431	431	of student educational information, including the Family
432	432	Educational Rights and Privacy Act of 1974 (20 U.S.C. Section
433	433	1232g).
434	434	SECTION 2. Section 42.253, Education Code, is amended by
435	435	adding Subsection (b-1) to read as follows:
436	436	(b-1) Notwithstanding Subsection (b), the commissioner
437	437	shall adjust enrollment estimates and entitlement for each school
438	438	district for each school year based on information collected in
439	439	accordance with Section 29.367. This subsection expires September
440	440	1, 2020.
441	441	SECTION 3. This Act applies beginning with the 2017-2018
442	442	school year.
443	443	SECTION 4. Not later than 45 days after the effective date
444	444	of this Act, the comptroller of public accounts shall adopt rules
445	445	necessary to implement the individualized education plan account
446	446	program under Subchapter J, Chapter 29, Education Code, as added by
447	447	this Act.
448	448	SECTION 5. Notwithstanding Section 29.367(a), Education
449	449	Code, as added by this Act, the commissioner of education shall
450	450	provide the information described by that subsection as soon as
451	451	practicable after the effective date of this Act.
452	452	SECTION 6. This Act takes effect immediately if it receives
453	453	a vote of two-thirds of all the members elected to each house, as
454	454	provided by Section 39, Article III, Texas Constitution. If this
455	455	Act does not receive the vote necessary for immediate effect, this
456	456	Act takes effect on the 91st day after the last day of the
457	457	legislative session.