TX
Texas Senate Bill SB2

Texas 2017 - 85th 1st C.S.

Texas Senate Bill SB2 Compare Versions

OldNewDifferences
11 By: Taylor of Galveston, et al. S.B. No. 2
2- (VanDeaver)
3- Substitute the following for S.B. No. 2: No.
42
53
6- A BILL
7- TO BE ENTITLED
4+ A BILL TO BE ENTITLED
85 AN ACT
9- relating to the establishment of an education enhancement program
10- for students with certain disabilities.
6+ relating to public school finance, including the establishment of a
7+ tax credit scholarship and educational expense assistance program.
118 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12- SECTION 1. Chapter 29, Education Code, is amended by adding
13- Subchapter J to read as follows:
14- SUBCHAPTER J. EDUCATION ENHANCEMENT PROGRAM FOR STUDENTS WITH
15- DISABILITIES
16- Sec. 29.351. DEFINITIONS. In this subchapter:
17- (1) "Parent" means a resident of this state who is a
18- natural or adoptive parent, managing or possessory conservator,
19- legal guardian, custodian, or other person with legal authority to
20- act on behalf of a child.
21- (2) "Program" means the education enhancement program
22- for students with disabilities established under this subchapter.
23- (3) "Program participant" means a student and a parent
24- of a student who has been accepted into the program.
25- Sec. 29.352. ESTABLISHMENT OF PROGRAM. The commissioner
26- shall establish and administer an education enhancement program for
27- students with disabilities to provide funding for eligible students
28- to obtain educational support services and other resources that:
29- (1) supplement the student's public education;
30- (2) promote and improve the student's overall academic
31- performance; and
32- (3) exceed the level of services that the student's
33- committee has determined to be necessary for the student to receive
34- a free appropriate public education.
35- Sec. 29.353. ELIGIBLE STUDENT. (a) A student is eligible
36- to participate in the program if:
37- (1) the student is enrolled in a school district and
38- was enrolled in that district during the entire preceding school
39- year;
40- (2) the student has one or more of the following
41- disabilities:
42- (A) dyslexia;
43- (B) autism;
44- (C) speech disability; or
45- (D) learning disability; and
46- (3) for one or more disabilities listed in Subdivision
47- (2):
48- (A) an individualized education program has been
49- developed for the student under Section 29.005; or
50- (B) the student is covered by Section 504,
51- Rehabilitation Act of 1973 (29 U.S.C. Section 794).
52- (b) Notwithstanding Subsection (a), a student placed in a
53- residential facility primarily for noneducational reasons is not
54- eligible to participate in the program.
55- Sec. 29.354. APPLICATION PROCESS. (a) On or before the
56- date established by commissioner rule, each school district
57- annually shall provide information regarding the program to a
58- parent of each student enrolled in the district who may be eligible
59- to participate in the program.
60- (b) On or before the date established by commissioner rule,
61- a parent of an eligible student may apply on behalf of the student
62- to the agency for participation in the program for the school year
63- for which the application is made. The school district in which the
64- student is enrolled shall assist the parent in making the
65- application.
66- (c) In accepting students into the program, the
67- commissioner shall:
68- (1) give priority to students who are educationally
69- disadvantaged; and
70- (2) to the greatest extent possible, ensure that the
71- accepted students reflect the diversity of the state.
72- (d) The commissioner annually shall notify each program
73- participant and each school district in which a student
74- participating in the program is enrolled that:
75- (1) a program participant must reapply to participate
76- in the program for each school year in which the participant wishes
77- to participate in the program; and
78- (2) continued acceptance into the program is not
79- guaranteed.
80- Sec. 29.355. ALLOCATION OF MONEY; FINANCING. (a) For each
81- school year, the commissioner shall allocate money available for
82- the program to each school district in which a student
83- participating in the program is enrolled in amounts determined by
84- the commissioner. The total amount of money used for the program
85- for a school year may not exceed $15 million.
86- (b) The commissioner may only use money appropriated to the
87- Foundation School Program for purposes of the program.
88- Sec. 29.356. QUALIFIED EXPENSES. (a) Funds received under
89- the program may be used only for the following services or goods
90- provided to a program participant by an education service provider
91- or vendor of educational products approved by the commissioner
92- under Section 29.357:
93- (1) costs of transportation for the student to receive
94- educational support services;
95- (2) fees for services provided by a private tutor or
96- teaching service;
97- (3) fees for educational therapies or support services
98- provided by a practitioner or provider;
99- (4) costs of assistive technology; and
100- (5) costs associated with the provision of:
101- (A) in-home and community-based training;
102- (B) positive behavioral support strategies;
103- (C) family training support;
104- (D) communication interventions; and
105- (E) social skills, supports, and strategies
106- training.
107- (b) The parent of a student participating in the program,
108- with the assistance of an employee of the school at which the
109- student is enrolled designated for that purpose by the school's
110- principal, shall select the services or goods allowed under
111- Subsection (a) to be provided to the student under the program and
112- the appropriate education service provider or vendor of educational
113- products to provide those services or goods.
114- (c) On the parent's selection under Subsection (b), the
115- school district in which the parent's student is enrolled shall
116- contract with the selected education service provider or vendor of
117- educational products to provide the selected services or goods to
118- the student.
119- (d) An education service provider or vendor of educational
120- products may not solicit or provide incentives to any program
121- participant to select the provider or vendor to provide services or
122- goods using money distributed under the program.
123- Sec. 29.357. PROVIDER AND VENDOR ACCOUNTABILITY. (a) An
124- education service provider or vendor of educational products must
125- apply to and be approved by the commissioner to receive money
126- distributed under the program.
127- (b) To be eligible for approval under Subsection (a), an
128- education service provider or vendor of educational products must:
129- (1) have operated for at least three consecutive
130- years, including at least one year in this state;
131- (2) provide to the commissioner:
132- (A) either:
133- (i) a current financial audit from a
134- certified public accountant; or
135- (ii) if the provider or vendor is an
136- individual, proof of good standing with the applicable state
137- licensing authority for the services or goods provided;
138- (B) documentation indicating that the provider
139- or vendor has completed a national criminal history record
140- information review within a period established by commissioner
141- rule; and
142- (C) a list of any national or state licenses,
143- certifications, or credentials possessed by the provider or vendor;
9+ SECTION 1. Effective September 1, 2018, Section 12.106,
10+ Education Code, is amended by adding Subsections (d) and (e) to read
11+ as follows:
12+ (d) Subject to Subsection (e), in addition to other amounts
13+ provided by this section, a charter holder is entitled to receive,
14+ for the open-enrollment charter school, funding per student in
15+ average daily attendance in an amount equal to the guaranteed level
16+ of state and local funds per student per cent of tax effort under
17+ Section 46.032(a) multiplied by the lesser of:
18+ (1) the state average interest and sinking fund tax
19+ rate imposed by school districts for the current year; or
20+ (2) a rate that would result in a total amount to which
21+ charter schools are entitled under this subsection for the current
22+ year equal to $60 million.
23+ (e) A charter holder is entitled to receive funding under
24+ Subsection (d) only if the most recent overall performance rating
25+ assigned to the open-enrollment charter school under Subchapter C,
26+ Chapter 39, reflects at least acceptable performance.
27+ SECTION 2. Chapter 42, Education Code, is amended by adding
28+ Subchapter H to read as follows:
29+ SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM
30+ Sec. 42.451. FINANCIAL HARDSHIP GRANTS. (a) From amounts
31+ appropriated for this subchapter, the commissioner may administer a
32+ grant program that provides grants to school districts to defray
33+ financial hardships resulting from changes made to Chapter 41 and
34+ this chapter that apply after the 2016-2017 school year.
35+ (b) The commissioner shall award grants under this
36+ subchapter to districts as provided by Section 42.452.
37+ (c) Except as provided by Subsection (d), funding provided
38+ to a district under this subchapter is in addition to all other
39+ funding provided under Chapter 41 and this chapter.
40+ (d) A district is not eligible for funding under this
41+ subchapter for a school year if the district receives for that
42+ school year an adjustment of the district's taxable value of
43+ property under Section 42.2521. A district may decline an
44+ adjustment under Section 42.2521 to maintain eligibility for
45+ funding under this subchapter.
46+ (e) The commissioner may obtain additional information as
47+ needed from a district or other state or local agency to make
48+ determinations in awarding grants under this subchapter.
49+ Sec. 42.452. AWARD OF GRANTS; AMOUNT. (a) The
50+ commissioner shall award grants to school districts based on the
51+ following formula:
52+ HG = (PL-CL) X (TR) X (TAHG/TEHG)
53+ where:
54+ "HG" is the amount of a district's hardship grant;
55+ "PL" is the amount of funding under previous law to which a
56+ district would be entitled under Chapter 41 and this chapter as
57+ those chapters existed on January 1, 2017, determined using current
58+ school year data for the district;
59+ "CL" is the amount of current law funding under Chapter 41 and
60+ this chapter to which a district is entitled;
61+ "TR" is a district's maintenance and operations tax rate, as
62+ specified by the comptroller's most recent certified report;
63+ "TAHG" is the total funding available for grants under
64+ Section 42.456 for a school year; and
65+ "TEHG" is the sum of the combined amounts for all districts
66+ calculated by applying the formula (PL-CL) X (TR) for each
67+ district.
68+ (b) A school district's hardship grant awarded under this
69+ subchapter for a school year may not exceed the lesser of:
70+ (1) the amount equal to 10 percent of the total amount
71+ of funds available for grants under this subchapter for that school
72+ year; or
73+ (2) the amount by which "PL" exceeds "CL" for that
74+ district for that school year.
75+ (c) For purposes of calculating the formula under
76+ Subsection (a), the commissioner shall:
77+ (1) if the value of (PL-CL) for a school district
78+ results in a negative number, use zero for the value of (PL-CL);
79+ (2) if a school district's maintenance and operations
80+ tax rate ("TR") is greater than $1, use $1 for the value of "TR";
81+ (3) use a maintenance and operations tax rate ("TR")
82+ of $1 for each open-enrollment charter school, each special-purpose
83+ school district established under Subchapter H, Chapter 11, and the
84+ South Texas Independent School District; and
85+ (4) if (TAHG/TEHG) equals a value greater than one,
86+ use a value of one for (TAHG/TEHG).
87+ (d) If funds remain available under this subchapter for a
88+ school year after determining initial grant amounts under
89+ Subsection (a), as adjusted to reflect the limits imposed by
90+ Subsection (b), the commissioner shall reapply the formula as
91+ necessary to award all available funds.
92+ (e) If the commissioner reapplies the formula in accordance
93+ with Subsection (d), a school district that was ineligible under
94+ Section 42.455 for a grant during the initial application of the
95+ formula for that school year is eligible to receive a grant as a
96+ result of the formula reapplication.
97+ Sec. 42.453. ELIGIBILITY OF OPEN-ENROLLMENT CHARTER
98+ SCHOOL. An open-enrollment charter school is eligible for a grant
99+ under this subchapter in the same manner as a school district.
100+ Sec. 42.454. REGIONAL EDUCATION SERVICE CENTERS AND COUNTY
101+ DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education
102+ service center or a county department of education is not eligible
103+ for a grant under this subchapter.
104+ Sec. 42.455. CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. Except
105+ as provided by Section 42.452(e), a school district is not eligible
106+ for a grant under this subchapter if for the 2015-2016 school year
107+ the district's expenditures per student in weighted average daily
108+ attendance, excluding bond debt service payments, capital outlays,
109+ and facilities acquisition and construction costs, exceeded an
110+ amount that is equal to 120 percent of the state average amount for
111+ that school year of expenditures per student in weighted average
112+ daily attendance, excluding bond debt service payments, capital
113+ outlays, and facilities acquisition and construction costs, as
114+ those amounts are determined by the commissioner.
115+ Sec. 42.456. FUNDING LIMIT. The amount of grants awarded by
116+ the commissioner under this subchapter may not exceed $100 million
117+ for the 2017-2018 school year or $50 million for the 2018-2019
118+ school year.
119+ Sec. 42.457. NO ADJUSTMENT BASED ON REVISED DATA. The
120+ commissioner may not adjust the amount of a school district's grant
121+ under this subchapter based on revisions to the district's data
122+ received after a grant has been awarded.
123+ Sec. 42.458. RULES. The commissioner may adopt rules as
124+ necessary to administer this subchapter.
125+ Sec. 42.459. DETERMINATION FINAL. A determination by the
126+ commissioner under this subchapter is final and may not be
127+ appealed.
128+ Sec. 42.460. EXPIRATION. This subchapter expires September
129+ 1, 2019.
130+ SECTION 3. Effective September 1, 2018, Section 46.032(a),
131+ Education Code, is amended to read as follows:
132+ (a) Each school district is guaranteed a specified amount
133+ per student in state and local funds for each cent of tax effort to
134+ pay the principal of and interest on eligible bonds. The amount of
135+ state support, subject only to the maximum amount under Section
136+ 46.034, is determined by the formula:
137+ EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
138+ where:
139+ "EDA" is the amount of state funds to be allocated to the
140+ district for assistance with existing debt;
141+ "EDGL" is the dollar amount guaranteed level of state and
142+ local funds per student per cent of tax effort, which is the lesser
143+ of:
144+ (1) $40 [$35] or a greater amount for any year provided
145+ by appropriation; or
146+ (2) the amount that would result in a total additional
147+ amount of state funds under this subchapter for the current year
148+ equal to $60 million in excess of the state funds to which school
149+ districts would have been entitled under this section if the
150+ guaranteed level amount were $35;
151+ "ADA" is the number of students in average daily attendance,
152+ as determined under Section 42.005, in the district;
153+ "EDTR" is the existing debt tax rate of the district, which is
154+ determined by dividing the amount budgeted by the district for
155+ payment of eligible bonds by the quotient of the district's taxable
156+ value of property as determined under Subchapter M, Chapter 403,
157+ Government Code, or, if applicable, under Section 42.2521, divided
158+ by 100; and
159+ "DPV" is the district's taxable value of property as
160+ determined under Subchapter M, Chapter 403, Government Code, or, if
161+ applicable, under Section 42.2521.
162+ SECTION 4. Subtitle B, Title 3, Insurance Code, is amended
163+ by adding Chapter 230 to read as follows:
164+ CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
165+ CERTAIN EDUCATIONAL ASSISTANCE ORGANIZATIONS
166+ SUBCHAPTER A. GENERAL PROVISIONS
167+ Sec. 230.001. DEFINITIONS. In this chapter:
168+ (1) "Educational assistance organization" means an
169+ organization that:
170+ (A) has the ability according to the
171+ organization's charter to award scholarships to or pay educational
172+ expenses for eligible students in:
173+ (i) public elementary or secondary schools
174+ located in this state; or
175+ (ii) nonpublic elementary or secondary
176+ schools located in this state:
177+ (a) that meet the requirements of
178+ Section 230.052;
179+ (b) at which a student may fulfill
180+ this state's compulsory attendance requirements; and
181+ (c) that are not in violation of the
182+ federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.);
144183 and
145- (3) agree not to use the national curriculum standards
146- developed by the Common Core State Standards Initiative.
147- (c) In applying for approval under Subsection (a), an
148- education service provider or vendor of educational products may
149- submit to the commissioner a statement listing the services or
150- goods allowed under Section 29.356(a) that the provider or vendor
151- provides to a school district under an existing contract.
152- (d) A parent of a student participating in the program, an
153- employee of the student's school designated under Section
154- 29.356(b), or an education service provider or vendor of
155- educational products may appeal the commissioner's rejection of an
156- application submitted under Subsection (a) in accordance with rules
157- established by the commissioner.
158- (e) To maintain approval under this section, an education
159- service provider or vendor of educational products must, with
160- respect to each student for the benefit of whom the provider or
161- vendor contracts with a school district under Section 29.356(c):
162- (1) at the end of each semester, report to the school
163- district regarding the services or goods provided under the
164- contract to the student, including any diagnostic or other
165- evaluative information requested by the district;
166- (2) conduct pre- and post-measurement evaluations of
167- the student and provide the results of those evaluations to the
168- student's parent and the school district; and
169- (3) submit to the school district accurate and
170- complete invoices regarding the services or goods provided to the
171- student.
172- (f) At least once each semester, an education service
173- provider or vendor of educational products selected to provide
174- services or goods to a student participating in the program shall
175- meet with the student's parent and the employee of the student's
176- school designated under Section 29.356(b) at a time and place
177- determined by the school district to discuss the student's progress
178- and to evaluate the continued use of the provider or vendor. The
179- student's parent, designated employee, or provider or vendor may
180- request additional meetings to be held under this subsection.
181- (g) The commissioner annually shall review each approved
182- education service provider or vendor of educational products and,
183- as appropriate, renew or revoke that approval.
184- (h) On approving an education service provider or vendor of
185- educational products under this section, the commissioner shall
186- notify the provider or vendor regarding the annual review of
187- approval under Subsection (g). The notice must include a statement
188- that renewed approval under that subsection is not guaranteed.
189- Sec. 29.358. PROGRAM PARTICIPANT RIGHTS. (a) A student's
190- participation in the program does not affect the student's rights
191- or a school district's obligations with respect to the student
192- under the Individuals with Disabilities Education Act (20 U.S.C.
193- Section 1400 et seq.); Section 504, Rehabilitation Act of 1973 (29
194- U.S.C. Section 794); or the Americans with Disabilities Act of 1990
195- (42 U.S.C. Section 12101 et seq.).
196- (b) An education service provider or vendor of educational
197- products must comply with the federal laws listed in Subsection (a)
198- in providing services or goods to the student under the program.
199- (c) The provision of services or goods to a student under
200- this subchapter does not affect the obligations of any state agency
201- with respect to the student.
202- Sec. 29.359. RULES. The commissioner may adopt rules as
203- necessary to implement this subchapter.
204- Sec. 29.3591. PROGRAM REVIEW. (a) Not later than December
205- 31, 2020, the agency shall review the performance of the program and
206- submit to the legislature a report on the agency's conclusions.
207- (b) In conducting the review, the agency shall solicit input
208- from program participants, participating school districts, and
209- education service providers and vendors of educational products
210- approved by the commissioner under Section 29.357.
211- (c) This section expires September 1, 2021.
212- Sec. 29.3592. STUDY ON SPECIAL EDUCATION SERVICES. (a) The
213- agency shall conduct a study on the special education services
214- provided by school districts to students with disabilities to
215- determine whether those services satisfy the requirements under the
216- Individuals with Disabilities Education Act (20 U.S.C. Section 1400
217- et seq.); Section 504, Rehabilitation Act of 1973 (29 U.S.C.
218- Section 794); and the Americans with Disabilities Act of 1990 (42
219- U.S.C. Section 12101 et seq.).
220- (b) In conducting the study, the agency shall survey parents
221- of students with disabilities enrolled in school districts.
222- (c) Not later than September 1, 2018, the agency shall
223- submit to the legislature a report on the results of the study. The
224- report must include a list of services that parents feel are needed
225- but are not currently being provided and the reasons why the listed
226- services are not being provided.
227- (d) This section expires September 1, 2019.
228- Sec. 29.360. EXPIRATION. This subchapter expires August
229- 31, 2023.
230- SECTION 2. Section 25.087, Education Code, is amended by
231- adding Subsection (b-7) to read as follows:
232- (b-7) A school district shall excuse a student from
233- attending school during lunch, study hall, or an open period to
234- attend an appointment or meeting with an education service provider
235- or vendor of educational products to receive services or goods
236- provided using money distributed under the education enhancement
237- program for students with disabilities under Subchapter J, Chapter
238- 29. This subsection expires August 31, 2023.
239- SECTION 3. Section 25.087(d), Education Code, as amended by
240- S.B. 1152, Acts of the 85th Legislature, Regular Session, 2017, is
241- amended to read as follows:
242- (d) A student whose absence is excused under Subsection (b),
243- (b-1), (b-2), (b-4), (b-5), (b-7), or (c) may not be penalized for
244- that absence and shall be counted as if the student attended school
245- for purposes of calculating the average daily attendance of
246- students in the school district. A student whose absence is excused
247- under Subsection (b), (b-1), (b-2), (b-4), (b-5), (b-7), or (c)
248- shall be allowed a reasonable time to make up school work missed on
249- those days. If the student satisfactorily completes the school
250- work, the day of absence shall be counted as a day of compulsory
251- attendance.
252- SECTION 4. Effective August 31, 2023, Section 25.087(d),
253- Education Code, as amended by S.B. 1152, Acts of the 85th
254- Legislature, Regular Session, 2017, is amended to read as follows:
255- (d) A student whose absence is excused under Subsection (b),
256- (b-1), (b-2), (b-4), (b-5), or (c) may not be penalized for that
257- absence and shall be counted as if the student attended school for
258- purposes of calculating the average daily attendance of students in
259- the school district. A student whose absence is excused under
260- Subsection (b), (b-1), (b-2), (b-4), (b-5), or (c) shall be allowed
261- a reasonable time to make up school work missed on those days. If
262- the student satisfactorily completes the school work, the day of
263- absence shall be counted as a day of compulsory attendance.
264- SECTION 5. Section 25.087, Education Code, as amended by
265- Sections 2 and 3 of this Act, and Sections 29.351-29.359, Education
266- Code, as added by this Act, apply beginning with the 2018-2019
267- school year.
268- SECTION 6. Except as otherwise provided by this Act:
184+ (B) uses part of its annual revenue for the
185+ purpose provided by Paragraph (A).
186+ (2) "State premium tax liability" means any liability
187+ incurred by an entity under Chapter 221, 222, or 224.
188+ (3) "Student with a disability" means a student who
189+ is:
190+ (A) eligible to participate in a school
191+ district's special education program under Section 29.003,
192+ Education Code; or
193+ (B) covered by Section 504, Rehabilitation Act of
194+ 1973 (29 U.S.C. Section 794).
195+ Sec. 230.002. RULES; PROCEDURES. (a) The comptroller
196+ shall adopt rules and procedures to implement, administer, and
197+ enforce this chapter.
198+ (b) A rule adopted under Subsection (a) is binding on an
199+ organization that applies for certification as an educational
200+ assistance organization, an entity that applies for a credit, and a
201+ state or local governmental entity, including a political
202+ subdivision, as necessary to implement, administer, and enforce
203+ this chapter.
204+ SUBCHAPTER B. SCHOLARSHIP AND EDUCATIONAL EXPENSE ASSISTANCE
205+ PROGRAM
206+ Sec. 230.051. CERTIFICATION OF EDUCATIONAL ASSISTANCE
207+ ORGANIZATION. (a) An organization may apply to the comptroller
208+ for certification as a certified educational assistance
209+ organization during an application period provided by the
210+ comptroller.
211+ (b) To be eligible for certification, the organization:
212+ (1) must:
213+ (A) be exempt from federal tax under Section
214+ 501(a) of the Internal Revenue Code of 1986 by being listed as an
215+ exempt organization in Section 501(c)(3) of that code;
216+ (B) be in good standing with the state;
217+ (C) be located in the state;
218+ (D) allocate at least 90 percent of its annual
219+ revenue from contributions that are designated for scholarships or
220+ educational expense assistance for eligible students under this
221+ chapter for student scholarships and assistance for educational
222+ expenses, including tuition, transportation, textbooks, and other
223+ supplies, and for other related educational expense assistance as
224+ described by this section;
225+ (E) award scholarships and assistance for
226+ qualifying educational expenses to eligible students who
227+ demonstrate the greatest financial and academic need;
228+ (F) agree to give each donor a receipt for money
229+ contributed to the organization that includes the name of the
230+ organization, the name of the donor, the amount of the
231+ contribution, the information required by Section 230.054(c), and
232+ any other information required by the comptroller;
233+ (G) demonstrate experience and technical
234+ expertise in:
235+ (i) accepting, processing, and tracking
236+ applications for scholarships or educational expense assistance;
237+ and
238+ (ii) awarding scholarships to students in
239+ primary or secondary schools;
240+ (H) agree to be independently audited on an
241+ annual basis and file the audit with the comptroller;
242+ (I) disburse within two academic years of receipt
243+ contributions received from and designated by entities for
244+ scholarships or educational expense assistance under this chapter;
245+ and
246+ (J) establish comprehensive and transparent
247+ criteria for how the organization will:
248+ (i) select recipients of scholarships and
249+ educational expense assistance; and
250+ (ii) determine the amount of the
251+ scholarship and educational expense assistance awarded to each
252+ recipient; and
253+ (2) may not:
254+ (A) award all scholarships under this chapter to
255+ students who attend a particular school or pay educational expenses
256+ incurred only at a particular school;
257+ (B) provide to a student a scholarship in an
258+ annual amount that exceeds the amount provided under Section
259+ 230.055(a) unless the money used to provide the portion of the
260+ scholarship in excess of that amount was contributed by a person
261+ other than an entity that notifies the organization under Section
262+ 230.054(c) that the entity may apply for a tax credit for the
263+ contribution; and
264+ (C) provide to a student educational expense
265+ assistance in excess of the amount provided under Section
266+ 230.055(b), unless the money used to provide the portion of the
267+ assistance in excess of that amount was contributed by a person
268+ other than an entity that notifies the organization under Section
269+ 230.054(c) that the entity may apply for a tax credit for the
270+ contribution, including assistance for:
271+ (i) facility fees;
272+ (ii) instructional materials;
273+ (iii) school supplies;
274+ (iv) tutoring;
275+ (v) academic after-school programs;
276+ (vi) school or lab fees;
277+ (vii) before-school or after-school child
278+ care; and
279+ (viii) transportation expenses, including
280+ the cost to transfer from one public school to another.
281+ (c) The comptroller shall certify one organization as the
282+ primary certified educational assistance organization and one
283+ organization as the secondary certified educational assistance
284+ organization. The comptroller shall select the organizations to
285+ certify as the primary and secondary certified educational
286+ assistance organizations from among the organizations that apply
287+ under Subsection (a) and meet the requirements of Subsection (b).
288+ The comptroller has broad discretion in selecting the primary and
289+ secondary certified educational assistance organizations.
290+ (d) The comptroller shall notify all organizations that
291+ apply under Subsection (a) of the comptroller's selections under
292+ Subsection (c).
293+ (e) The comptroller shall attempt to maintain one primary
294+ and one secondary certified educational assistance organization at
295+ all times. The comptroller shall provide an application period
296+ under Subsection (a) as soon as practicable after the comptroller
297+ learns there is, or is likely to be, a vacancy for the primary or
298+ secondary certified educational assistance organization.
299+ (f) The comptroller's selections under Subsection (c) are
300+ final and are not appealable.
301+ Sec. 230.0511. PERFORMANCE OF CERTIFIED EDUCATIONAL
302+ ASSISTANCE ORGANIZATION POWERS AND DUTIES. (a) Except as provided
303+ by Subsection (b), the organization certified as the primary
304+ certified educational assistance organization shall perform the
305+ powers and duties assigned to the certified educational assistance
306+ organization under this chapter.
307+ (b) The organization certified as the secondary certified
308+ educational assistance organization shall perform the powers and
309+ duties assigned to the certified educational assistance
310+ organization under this chapter if:
311+ (1) the organization certified as the primary
312+ certified educational assistance organization has its
313+ certification revoked; or
314+ (2) the comptroller otherwise determines the
315+ organization certified as the primary educational assistance
316+ organization is unable to perform the powers and duties assigned to
317+ the certified educational assistance organization under this
318+ chapter.
319+ (c) A reference in this chapter or other law to the
320+ certified educational assistance organization means the
321+ organization performing the powers and duties of the certified
322+ educational assistance organization under Subsection (a) or (b).
323+ Sec. 230.0512. ALLOCATION OF MONEY DESIGNATED FOR
324+ SCHOLARSHIPS OR EDUCATIONAL EXPENSE ASSISTANCE. Of the amount
325+ required to be allocated as provided by Section 230.051(b)(1)(D),
326+ the certified educational assistance organization shall use:
327+ (1) at least 80 percent to award scholarships as
328+ described by Section 230.055(a); and
329+ (2) not more than 20 percent to award educational
330+ expense assistance as described by Section 230.055(b).
331+ Sec. 230.052. NONPUBLIC SCHOOL REQUIREMENTS. The certified
332+ educational assistance organization may not award scholarships to
333+ or pay educational expenses for eligible students enrolled in a
334+ nonpublic school unless the nonpublic school executes a notarized
335+ affidavit, with supporting documents, concerning the school's
336+ qualification for scholarships and educational expense assistance
337+ for eligible students who receive assistance from the certified
338+ educational assistance organization, including evidence of:
339+ (1) accreditation by the Texas Education Agency or by
340+ an organization recognized by the Texas Private School
341+ Accreditation Commission;
342+ (2) annual administration of a nationally
343+ norm-referenced assessment instrument or the appropriate
344+ assessment instrument required under Section 39.023, Education
345+ Code;
346+ (3) valid certificate of occupancy;
347+ (4) policy statements regarding:
348+ (A) admissions;
349+ (B) curriculum;
350+ (C) safety;
351+ (D) food service inspection; and
352+ (E) student to teacher ratios; and
353+ (5) the school's agreement that students who receive
354+ scholarships under this chapter are eligible to receive any
355+ scholarships offered by the school to the same extent as other
356+ students.
357+ Sec. 230.053. ELIGIBILITY OF STUDENTS FOR SCHOLARSHIPS;
358+ INCLUSION IN CALCULATION OF EQUALIZED WEALTH LEVEL. (a) A student
359+ is eligible to apply for a scholarship from the certified
360+ educational assistance organization under this chapter if the
361+ student:
362+ (1) is a student with a disability;
363+ (2) is eligible to attend a public school under
364+ Section 25.001, Education Code;
365+ (3) was enrolled in a public school in this state
366+ during the entire preceding academic year; and
367+ (4) will attend a nonpublic school in this state
368+ during the entire academic year for which the scholarship is
369+ awarded.
370+ (b) A student who establishes eligibility under this
371+ section may apply for a scholarship from the certified educational
372+ assistance organization under this chapter for each academic year
373+ until the student:
374+ (1) graduates from high school;
375+ (2) is no longer eligible to attend a public school
376+ under Section 25.001, Education Code; or
377+ (3) enrolls in a public school, including an
378+ open-enrollment charter school.
379+ (c) Notwithstanding Subsection (b), the comptroller shall
380+ establish guidelines for, in the least disruptive manner possible:
381+ (1) a student who has previously received a
382+ scholarship to enroll in a public school, including an
383+ open-enrollment charter school; and
384+ (2) a student who previously received a scholarship
385+ and subsequently enrolled in a public school, including an
386+ open-enrollment charter school, to reestablish eligibility for a
387+ scholarship.
388+ (d) The certified educational assistance organization shall
389+ award scholarships to eligible students who apply in accordance
390+ with this chapter to the extent money is available for that purpose.
391+ (e) For the first year a student receives a scholarship
392+ under this chapter to attend a nonpublic school, the student is
393+ included in the weighted average daily attendance of the school
394+ district the student would otherwise attend for purposes of
395+ determining the district's equalized wealth level under Chapter 41,
396+ Education Code.
397+ (f) A nonpublic school may not enroll a student who is
398+ awarded a scholarship under this chapter unless the nonpublic
399+ school:
400+ (1) provides to the student's parent a written notice,
401+ in the primary language spoken by the parent, describing all
402+ expenses other than tuition required for the student to attend the
403+ nonpublic school; and
404+ (2) receives from the parent a signed copy of the
405+ notice under Subdivision (1).
406+ Sec. 230.0531. ELIGIBILITY OF STUDENTS FOR EDUCATIONAL
407+ EXPENSE ASSISTANCE. (a) A student is eligible to apply for
408+ educational expense assistance from the certified educational
409+ assistance organization under this chapter for an academic year if
410+ the student:
411+ (1) is a student with a disability; and
412+ (2) will attend a public school in this state during
413+ the entire academic year for which the educational expense
414+ assistance is awarded.
415+ (b) A student who establishes eligibility under this
416+ section may apply for educational expense assistance from the
417+ certified educational assistance organization under this chapter
418+ for each academic year the student attends a public school in this
419+ state.
420+ (c) The certified educational assistance organization shall
421+ award educational expense assistance to eligible students who apply
422+ in accordance with this chapter to the extent money is available for
423+ that purpose.
424+ Sec. 230.0532. NOTICE TO CERTAIN PARENTS. A school
425+ district shall provide written notice of the availability of
426+ assistance under this chapter to the parent of a student who is
427+ eligible to apply for a scholarship to attend a nonpublic school
428+ under Section 230.053. The notice under this section must inform
429+ the parent that a nonpublic school is not subject to laws regarding
430+ the provision of education services in the same manner as a public
431+ school, and a student with a disability attending a nonpublic
432+ school may not receive the services a student with a disability
433+ attending a public school is entitled to receive under federal and
434+ state law. The notice must provide information regarding rights to
435+ which a student with a disability is entitled under federal and
436+ state law if the student attends a public school, including:
437+ (1) rights provided under the Individuals with
438+ Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
439+ including:
440+ (A) an individualized education program;
441+ (B) education services provided in the least
442+ restrictive environment;
443+ (C) instruction from certified teachers;
444+ (D) due process hearings to ensure proper and
445+ full implementation of an individualized education program;
446+ (E) transition and planning services; and
447+ (F) supplementary aids and services;
448+ (2) rights provided under Subchapter A, Chapter 29,
449+ Education Code; and
450+ (3) other rights provided under federal or state law.
451+ Sec. 230.054. CREDIT FOR CONTRIBUTIONS. (a) An entity may
452+ apply for a credit under this chapter only for money contributed to
453+ the certified educational assistance organization and designated
454+ for scholarships or educational expense assistance for eligible
455+ students.
456+ (b) An entity may not apply for a credit under this chapter
457+ for a contribution made to the certified educational assistance
458+ organization if:
459+ (1) the entity requires that the contribution benefit
460+ a particular person or school; or
461+ (2) the contribution is designated to provide a
462+ scholarship or educational expense assistance for an entity
463+ employee or for a spouse or dependent of an entity employee.
464+ (c) An entity shall notify the certified educational
465+ assistance organization in writing when the entity makes a
466+ contribution if the entity may apply for a tax credit under this
467+ chapter for the contribution. An entity may not apply for a credit
468+ for the contribution unless the entity provides the notification at
469+ the time the contribution is made. The certified educational
470+ assistance organization shall indicate on the receipt provided
471+ under Section 230.051(b)(1)(F) that the entity made the
472+ notification under this subsection.
473+ Sec. 230.055. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL
474+ EXPENSE ASSISTANCE. (a) The maximum scholarship amount the
475+ certified educational assistance organization may award to a
476+ student under this chapter for an academic year using money
477+ contributed by an entity that notifies the organization under
478+ Section 230.054(c) that the entity may apply for a tax credit for
479+ the contribution may not exceed the lesser of:
480+ (1) $10,000; and
481+ (2) the full tuition amount for the nonpublic school
482+ the student attends.
483+ (b) The maximum educational expense assistance the
484+ certified educational assistance organization may award to a
485+ student under this chapter using money contributed by an entity
486+ that notifies the organization under Section 230.054(c) that the
487+ entity may apply for a tax credit for the contribution may not
488+ exceed $500 for the 2019 state fiscal year, increased by five
489+ percent each subsequent year.
490+ Sec. 230.056. REVOCATION. (a) The comptroller shall
491+ revoke a certification provided under Section 230.051 if the
492+ comptroller finds that a certified educational assistance
493+ organization:
494+ (1) is no longer eligible under Section 230.051; or
495+ (2) intentionally and substantially violates this
496+ chapter.
497+ (b) The comptroller has broad discretion in determining
498+ whether to revoke a certification under Subsection (a).
499+ (c) The comptroller shall notify a certified educational
500+ assistance organization in writing of the comptroller's decision to
501+ revoke the organization's certification. If the comptroller
502+ revokes an organization's certification, the comptroller shall
503+ include in the notice of revocation the reasons for the revocation.
504+ (d) If the comptroller revokes a certified educational
505+ assistance organization's certification under Subsection (a), the
506+ organization may request in writing a reconsideration of the
507+ revocation not later than the 10th day after the date of the notice
508+ under Subsection (c) or the revocation is final.
509+ (e) An organization that requests a reconsideration under
510+ Subsection (d) may submit to the comptroller not later than the 30th
511+ day after the date the request for reconsideration is submitted
512+ additional information and documents to support the organization's
513+ request for reconsideration.
514+ (f) The comptroller's reconsideration of a revocation under
515+ this section is not a contested case under Chapter 2001, Government
516+ Code. The comptroller's decision on a request for reconsideration
517+ of a revocation is final and is not appealable.
518+ (g) This section does not create a cause of action to
519+ contest a decision of the comptroller to revoke a certified
520+ educational assistance organization's certification under this
521+ chapter.
522+ (h) Revocation of a certification under this section does
523+ not affect the validity of a tax credit relating to a contribution
524+ made before the date of revocation.
525+ Sec. 230.057. REPORT OF NET SAVINGS TO PUBLIC EDUCATION.
526+ (a) In this section, "net savings" means any positive difference
527+ in a state fiscal year between:
528+ (1) the amount by which state spending on public
529+ education for that year is reduced as a result of students receiving
530+ scholarships and educational expense assistance from the certified
531+ educational assistance organization under this chapter; and
532+ (2) the amount by which state revenue derived from
533+ Chapters 221, 222, and 224 is reduced as a result of tax credits
534+ under this chapter.
535+ (b) Not later than December 31 of each even-numbered year,
536+ the comptroller shall determine the amount of net savings for the
537+ previous state fiscal biennium and make available to the public a
538+ report of that amount of savings.
539+ SUBCHAPTER C. CREDIT
540+ Sec. 230.101. CREDIT. An entity may apply for a credit
541+ against the entity's state premium tax liability in the amount and
542+ under the conditions and limitations provided by this chapter. The
543+ comptroller shall award credits as provided by Section 230.103.
544+ Sec. 230.102. AMOUNTS; LIMITATION ON TOTAL CREDITS.
545+ (a) Subject to Subsections (b) and (c), the amount of an entity's
546+ credit is equal to the lesser of the amount of the qualifying
547+ contributions made to the certified educational assistance
548+ organization or 50 percent of the entity's state premium tax
549+ liability.
550+ (b) The total amount of tax credits that may be awarded
551+ under this chapter for a state fiscal year may not exceed $75
552+ million.
553+ (c) The comptroller by rule shall prescribe procedures by
554+ which the comptroller may allocate credits under this chapter. The
555+ procedures must provide that credits are first allocated to
556+ entities that were granted preliminary approval for a credit under
557+ Section 230.1025 in the amount that was preliminarily approved.
558+ The procedures must provide that any remaining credits are
559+ allocated on a first-come, first-served basis, based on the date
560+ the contribution was initially made.
561+ (d) The comptroller may require an entity to notify the
562+ comptroller of the amount the entity intends or expects to apply for
563+ under this chapter before the beginning of a state fiscal year or at
564+ any other time required by the comptroller.
565+ Sec. 230.1025. PRELIMINARY APPROVAL FOR CREDIT.
566+ (a) Before making a contribution to the certified educational
567+ assistance organization, an entity may apply to the comptroller for
568+ preliminary approval of a credit under this chapter for the
569+ contribution.
570+ (b) An entity must apply for preliminary approval of a
571+ credit on a form provided by the comptroller that includes the
572+ amount the entity expects to contribute and any other information
573+ required by the comptroller.
574+ (c) The comptroller shall grant preliminary approval for
575+ credits under this chapter on a first-come, first-served basis,
576+ based on the date the application for preliminary approval is
577+ received by the comptroller.
578+ (d) The comptroller shall grant preliminary approval for a
579+ credit under this chapter if the total amount of credits
580+ preliminarily approved under this chapter does not exceed the
581+ amount provided by Section 230.102(b).
582+ (e) A credit for which the comptroller grants preliminary
583+ approval remains subject to the limitation under Section 230.102(a)
584+ and any other limitations prescribed by this chapter.
585+ Sec. 230.103. APPLICATION FOR CREDIT. (a) An entity must
586+ apply for a credit under this chapter on or with the tax return for
587+ the taxable year and submit with the application each receipt
588+ issued under Section 230.051(b)(1)(F) that includes the
589+ information required by Section 230.054(c).
590+ (b) The comptroller shall adopt a form for the application
591+ for the credit. An entity must use this form in applying for the
592+ credit.
593+ (c) The comptroller may award a credit to an entity that
594+ applies for the credit under Subsection (a) if the entity is
595+ eligible for the credit and the credit is available under Section
596+ 230.102(b). The comptroller has broad discretion in determining
597+ whether to grant or deny an application for a credit.
598+ (d) The comptroller shall notify an entity in writing of the
599+ comptroller's decision to grant or deny the application under
600+ Subsection (a). If the comptroller denies an entity's application,
601+ the comptroller shall include in the notice of denial the reasons
602+ for the comptroller's decision.
603+ (e) If the comptroller denies an entity's application under
604+ Subsection (a), the entity may request in writing a reconsideration
605+ of the application not later than the 10th day after the date of the
606+ notice under Subsection (d). If the entity does not request a
607+ reconsideration of the application on or before that date, the
608+ comptroller's decision is final.
609+ (f) An entity that requests a reconsideration under
610+ Subsection (e) may submit to the comptroller not later than the 30th
611+ day after the date the request for reconsideration is submitted
612+ additional information and documents to support the entity's
613+ request for reconsideration.
614+ (g) The comptroller's reconsideration of an application
615+ under this section is not a contested case under Chapter 2001,
616+ Government Code. The comptroller's decision on a request for
617+ reconsideration of an application is final and is not appealable.
618+ (h) This section does not create a cause of action to
619+ contest a decision of the comptroller to deny an application for a
620+ credit under this chapter.
621+ Sec. 230.104. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
622+ may not convey, assign, or transfer the credit allowed under this
623+ chapter to another entity unless all of the assets of the entity are
624+ conveyed, assigned, or transferred in the same transaction.
625+ Sec. 230.105. NOTICE OF AVAILABILITY OF CREDIT. The
626+ comptroller shall provide notice of the availability of the credit
627+ under this chapter on the comptroller's Internet website, in the
628+ instructions for insurance premium tax report forms, and in any
629+ notice sent to an entity concerning the requirement to file an
630+ insurance premium tax report.
631+ SECTION 5. (a) The constitutionality and other validity
632+ under the state or federal constitution of all or any part of
633+ Chapter 230, Insurance Code, as added by this Act, may be determined
634+ in an action for declaratory judgment in a district court in Travis
635+ County under Chapter 37, Civil Practice and Remedies Code, except
636+ that this section does not authorize an award of attorney's fees
637+ against this state and Section 37.009, Civil Practice and Remedies
638+ Code, does not apply to an action filed under this section. This
639+ section does not authorize a taxpayer suit to contest the denial of
640+ a tax credit by the comptroller of public accounts.
641+ (b) An appeal of a declaratory judgment or order, however
642+ characterized, of a district court, including an appeal of the
643+ judgment of an appellate court, holding or otherwise determining
644+ that all or any part of Chapter 230, Insurance Code, as added by
645+ this Act, is constitutional or unconstitutional, or otherwise valid
646+ or invalid, under the state or federal constitution is an
647+ accelerated appeal.
648+ (c) If the judgment or order is interlocutory, an
649+ interlocutory appeal may be taken from the judgment or order and is
650+ an accelerated appeal.
651+ (d) A district court in Travis County may grant or deny a
652+ temporary or otherwise interlocutory injunction or a permanent
653+ injunction on the grounds of the constitutionality or
654+ unconstitutionality, or other validity or invalidity, under the
655+ state or federal constitution of all or any part of Chapter 230,
656+ Insurance Code, as added by this Act.
657+ (e) There is a direct appeal to the Texas Supreme Court from
658+ an order, however characterized, of a trial court granting or
659+ denying a temporary or otherwise interlocutory injunction or a
660+ permanent injunction on the grounds of the constitutionality or
661+ unconstitutionality, or other validity or invalidity, under the
662+ state or federal constitution of all or any part of Chapter 230,
663+ Insurance Code, as added by this Act.
664+ (f) The direct appeal is an accelerated appeal.
665+ (g) This section exercises the authority granted by Section
666+ 3-b, Article V, Texas Constitution.
667+ (h) The filing of a direct appeal under this section will
668+ automatically stay any temporary or otherwise interlocutory
669+ injunction or permanent injunction granted in accordance with this
670+ section pending final determination by the Texas Supreme Court,
671+ unless the supreme court makes specific findings that the applicant
672+ seeking such injunctive relief has pleaded and proved that:
673+ (1) the applicant has a probable right to the relief it
674+ seeks on final hearing; and
675+ (2) the applicant will suffer a probable injury that
676+ is imminent and irreparable, and that the applicant has no other
677+ adequate legal remedy.
678+ (i) An appeal under this section, including an
679+ interlocutory, accelerated, or direct appeal, is governed, as
680+ applicable, by the Texas Rules of Appellate Procedure, including
681+ Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
682+ 38.6(a) and (b), 40.1(b), and 49.4.
683+ SECTION 6. An entity may apply for a credit under Chapter
684+ 230, Insurance Code, as added by this Act, only for an expenditure
685+ made on or after September 1, 2018.
686+ SECTION 7. The comptroller of public accounts shall make
687+ the initial determination of net savings and report regarding that
688+ savings as required by Section 230.057, Insurance Code, as added by
689+ this Act, not later than December 31, 2020, based on the state
690+ fiscal biennium ending August 31, 2019.
691+ SECTION 8. Chapter 230, Insurance Code, as added by this
692+ Act, applies only to a report originally due on or after September
693+ 1, 2018.
694+ SECTION 9. (a) The amount of $270,000,000 of the
695+ unencumbered appropriations from the general revenue fund for the
696+ state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts
697+ of the 85th Legislature, Regular Session, 2017 (the General
698+ Appropriations Act), to the Health and Human Services Commission is
699+ transferred to the Texas Education Agency to be used by the agency
700+ during that state fiscal biennium as follows:
701+ (1) $150,000,000 is allocated to fund financial
702+ hardship grants under Subchapter H, Chapter 42, Education Code, as
703+ added by this Act;
704+ (2) $60,000,000 is allocated to fund payments to
705+ open-enrollment charter schools under Section 12.106(d), Education
706+ Code, as added by this Act; and
707+ (3) $60,000,000 is allocated for the existing debt
708+ allotment under Section 46.032, Education Code, as amended by this
709+ Act.
710+ (b) The Health and Human Services Commission shall identify
711+ the strategies and objectives out of which the transfer under
712+ Subsection (a) of this section is to be made.
713+ SECTION 10. (a) Except as otherwise provided by this Act:
269714 (1) this Act takes effect immediately if it receives a
270715 vote of two-thirds of all the members elected to each house, as
271716 provided by Section 39, Article III, Texas Constitution; and
272717 (2) if this Act does not receive the vote necessary for
273- immediate effect, this Act takes effect on the 91st day after the
274- last day of the legislative session.
718+ immediate effect, this Act takes effect December 1, 2017.
719+ (b) Chapter 230, Insurance Code, as added by this Act, takes
720+ effect September 1, 2018.