By: Toth H.B. No. 1015
A BILL TO BE ENTITLED
AN ACT
relating to an education microgrant pilot program for certain
children with special needs and other educational disadvantages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 29, Education Code, is amended by adding
Subchapter J to read as follows:
SUBCHAPTER J. EDUCATION MICROGRANT PILOT PROGRAM
Sec. 29.351. DEFINITIONS. In this subchapter:
(1) "Microgrant" means an education microgrant
account established under the pilot program.
(2) "Account" means an education microgrant account
established under the pilot program.
(3) "Child with a disability" means a child who is:
(A) eligible to participate in a school
district's special education program under Section 29.003; or
(B) covered by Section 504, Rehabilitation Act of
1973 (29 U.S.C. Section 794).
(4) "Curriculum" means a complete course of study for
a particular content area or grade level.
(5) "Financial institution" means a bank, credit
union, savings bank, or savings and loan association organized
under the laws of this state, the laws of another state, or federal
law that has its main office or a branch office in this state. The
term does not include any institution the deposits of which are not
insured by the Federal Deposit Insurance Corporation or the
National Credit Union Administration.
(6) "Parent" means a resident of this state who is a
natural or adoptive parent, managing or possessory conservator,
legal guardian, custodian, or other person with legal authority to
act on behalf of a child.
(7) "Pilot program" means the education microgrant
pilot program established under this subchapter.
(8) "Pilot program participant" means a child and a
parent of a child enrolled in the pilot program.
(9) "Postsecondary educational institution" means:
(A) an institution of higher education or a
private or independent institution of higher education as defined
by Section 61.003; or
(B) a career school or college as defined by
Section 132.001.
Sec. 29.352. PURPOSES. The purposes of the education
microgrant pilot program are to:
(1) improve public schools in Houston and overall
academic performance in Houston schools;
(2) promote efficiency in Houston schools;
(3) promote and preserve the liberties and rights of
the people in Houston; and
(4) increase parental options in Houston.
Sec. 29.353. ESTABLISHMENT OF PILOT PROGRAM. (a) The
comptroller shall establish and administer an education microgrant
pilot program to provide funding for certain education-related
expenses of eligible children.
(b) The comptroller shall implement the pilot program in the
city of Houston.
(c) The comptroller, with cooperation from the agency,
shall ensure that information about the pilot program is readily
available to the public through various sources, including the
comptroller's Internet website. The comptroller shall make
information about the pilot program available to parents of an
eligible child through the comptroller's Internet website.
Sec. 29.354. ELIGIBLE CHILD. (a) A child is eligible to
participate in the pilot program if the child resides in the city of
Houston and:
(1) is eligible to attend a public school under
Section 25.001;
(2) either:
(A) attended a public school during the entire
preceding school year;
(B) is entering kindergarten or first grade; or
(C) participated in the pilot program in a
preceding school year; and
(3) meets one or more of the following criteria:
(A) is a child with a disability;
(B) resides in a school district that received an
unacceptable performance rating under Section 39.054 for the
preceding school year;
(C) is in the conservatorship of the Department
of Family and Protective Services;
(D) has been:
(i) on or after September 1, 2021, found by
a school district to be a victim of bullying, as defined by Section
37.0832; or
(ii) found by a court or jury to have
engaged in truant conduct under Section 65.101, Family Code;
(E) has dropped out of school or is a student at
risk of dropping out of school, as defined by Section 29.081; or
(F) has been, as determined by the comptroller, a
victim of an offense described by any of the following sections of
the Penal Code:
(i) Section 20A.02 (Trafficking of
Persons);
(ii) Section 20A.03 (Continuous
Trafficking of Persons);
(iii) Section 21.02 (Continuous Sexual
Abuse of Young Child or Children);
(iv) Section 21.11 (Indecency with a
Child);
(v) Section 22.011 (Sexual Assault);
(vi) Section 22.021 (Aggravated Sexual
Assault); or
(vii) Section 43.05 (Compelling
Prostitution).
(b) A child who establishes eligibility under this section
may participate in the pilot program until the earliest of the
following dates:
(1) the date on which the child no longer meets the
eligibility requirements under Subsection (a);
(2) the date that is three months after the date on
which the child either:
(A) graduates from high school; or
(B) receives a high school equivalency
certificate under Section 7.111;
(3) the date on which the child enrolls in a public
school, including an open-enrollment charter school; or
(4) the date on which the child is declared ineligible
for the pilot program by the comptroller under this subchapter.
(c) Notwithstanding Subsection (b), the comptroller shall
establish guidelines for, in the least disruptive manner possible:
(1) a child participating in the pilot program to
cease participation and enroll in a public school, including an
open-enrollment charter school; and
(2) a child who previously participated in the pilot
program and subsequently enrolled in a public school, including an
open-enrollment charter school, to resume participation in the
pilot program.
Sec. 29.355. ENROLLMENT IN PILOT PROGRAM. (a) A parent of
an eligible child may enroll the child in the pilot program for the
following school year.
(b) The comptroller shall by rule create an enrollment form
for the pilot program and make the enrollment form readily
available to interested parents through various sources, including
the comptroller's Internet website.
(c) The comptroller shall work with the agency to include
necessary information in the enrollment form including resident
school district, last public school attended, information
necessary to identify the student in district and agency
information systems, and eligibility for free and reduced lunch.
(d) The comptroller shall provide to each parent who submits
an enrollment form a publication that describes the operation of
the pilot program, including:
(1) expenses allowed under the pilot program under
Section 29.357;
(2) expense reporting requirements; and
(3) a description of the responsibilities of pilot
program participants and the duties of the comptroller under this
subchapter.
Sec. 29.356. PARTICIPATION IN PILOT PROGRAM. (a) To
receive funding under the pilot program, a parent of an eligible
child must agree to:
(1) spend funds received through the pilot program
only for expenses allowed under Section 29.357;
(2) notify the comptroller if the child enrolls in a
public school, including an open-enrollment charter school, not
later than the 30th day after the date of enrollment; and
(3) inform the comptroller if the child graduates from
high school.
(b) The parent of a child participating in the pilot program
is the trustee of the child's microgrant account.
(c) The comptroller shall provide annually to each pilot
program participant the publication provided under Section
29.355(d).
Sec. 29.357. APPROVED EDUCATION-RELATED EXPENSES. (a)
Funds received under the pilot program may be used only for the
following expenses incurred by a pilot program participant:
(1) tuition and fees:
(A) at a private school accredited by an
organization that is recognized by the Texas Private School
Accreditation Commission;
(B) at a postsecondary educational institution
for courses described by Section 28.009 for which the child may
receive high school credit based on the written agreement drawn up
by the partner institutions; or
(C) for an online educational course or program
through the state virtual school network under Chapter 30A for
which the child may earn primary or secondary school credit;
(2) the purchase of textbooks or other instructional
materials;
(3) payments for the purchase of a curriculum;
(4) fees for classes or other educational services
provided by a public school, if the classes or services do not
qualify the child to be included in the school's average daily
attendance;
(5) fees for services provided by a private tutor or
teaching service;
(6) for a child with a disability, fees for
educational therapies or services, including applied behavior
analysis, provided by a practitioner or provider, only for fees
that are not covered by any federal, state, or local government
benefits such as Medicaid or the Children's Health Insurance
Program (CHIP) or by any private insurance that the child is
enrolled in at the time of receiving the therapies or services;
(7) costs of computer hardware and software and other
technological devices which must have a clear ability to be used for
educational purposes, not to exceed in any year 10 percent of the
total amount paid to the pilot program participant's microgrant
that year;
(8) fees for a nationally norm-referenced achievement
test or examination, an assessment instrument adopted by the agency
under Section 39.023, an advanced placement test or similar
examination, or any examination related to college or university
admission;
(9) contributions to a qualified tuition program
established for the child that meets the requirements of Section
529 or 530, Internal Revenue Code of 1986, not to exceed in any year
25 percent of the total amount paid to the pilot program
participant's microgrant that year; and
(10) fees for the management of the pilot program
participant's account charged by a financial institution.
(b) Expenses allowed under Subsection (a) do not include
expenses for:
(1) consumable supplies, including paper, pens,
pencils, folders, and notebooks;
(2) food; or
(3) before-school or after-school child care and child
care during school holidays and vacations.
(c) An education service provider or vendor of educational
products must provide a pilot program participant with a receipt
for each expense allowed under Subsection (a) charged by the
provider or vendor to the participant.
(d) The content or religious nature of a product or service
may not be considered in determining whether a payment for the
product or service is an expense allowed under Subsection (a).
(e) A finding that a pilot program participant used funds
distributed under the pilot program to pay for an expense not
allowed under Subsection (a) does not affect the validity of any
payment made by the participant for an expense that is allowed under
that subsection.
Sec. 29.358. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
an eligible child as described in Section 29.354 shall receive each
year that the child participates in the pilot program a payment from
the Foundation School Program to the child's microgrant in an
amount that is equal to 60 percent of the state average maintenance
and operations expenditures per student for the preceding fiscal
year.
(b) Any funds remaining in a child's microgrant account at
the end of a fiscal year are carried forward to the next fiscal year
unless another provision of this subchapter requires the closure of
the account.
(c) The parent of a child participating in the pilot program
may make payments for the expenses of educational programs,
services, and products not covered by funds in the child's
microgrant.
(d) A payment under the pilot program may not be financed
using federal funds or money appropriated from the available school
fund.
Sec. 29.359. ADMINISTRATION OF ACCOUNTS. (a) The
comptroller may contract with one or more financial institutions to
establish and manage an account for each child participating in the
pilot program. A pilot program participant must be able to access
the participant's account by using a debit card or online or
electronic transfer payment service.
(b) The comptroller shall make quarterly payments to each
pilot program participant's account in equal amounts on or before
the 15th day of August, November, February, and May.
(c) The comptroller may deduct an amount from each quarterly
payment to a pilot program participant's account to cover the
comptroller's cost of administering the pilot program. The amount
deducted may not exceed three percent of the payment.
(d) Within the first month following the end of each fiscal
year, the comptroller shall reconcile payments made to and from all
accounts under the pilot program.
(e) The comptroller shall coordinate as necessary to
calculate annually the savings to the state from the implementation
of the pilot program.
(f) On the date on which a child ceases to participate in the
pilot program for any reason, the child's account is closed and any
remaining funds are returned to the state for deposit in the
foundation school fund. This subsection does not affect a child's
eligibility to resume participation in the pilot program.
(g) The comptroller may contract with a private entity to
administer all or any part of the pilot program.
Sec. 29.360. RANDOM AUDITING OF ACCOUNTS. (a) The
comptroller shall randomly audit, or contract with a private entity
to randomly audit, accounts as necessary to ensure compliance with
applicable law and the requirements of the pilot program.
(b) In auditing an account, the comptroller or private
entity may require that a pilot program participant provide further
information and documentation regarding any payment from the
participant's account.
(c) The private entity shall report to the comptroller any
violation of this subchapter or other relevant law found by the
entity during an audit conducted under this section.
Sec. 29.361. SUSPENSION OF ACCOUNT. (a) The comptroller
shall suspend the account of a pilot program participant who fails
to comply with applicable law or a requirement of the pilot program,
including a requirement under Section 29.356(a), or who
substantially misuses funds received under the pilot program.
(b) On suspension of an account under Subsection (a), the
comptroller shall notify the participant in writing that the
account has been suspended and that no further payments may be made
from the account. The notification must specify the grounds for the
suspension and state that the participant has 10 business days to
respond and take any corrective action required by the comptroller.
(c) On the expiration of the 10-day period under Subsection
(b), the comptroller shall:
(1) order permanent closure of the suspended account
and declare the participant ineligible for the pilot program;
(2) order temporary reinstatement of the account,
conditioned on the performance of a specified action by the
participant; or
(3) order full reinstatement of the account.
(d) If a pilot program participant's account is suspended or
closed under this section, the comptroller may recover funds that
were used for expenses not allowed under Section 29.357(a) from the
participant or the entity that received the funds.
Sec. 29.362. TUITION AND FEES; REFUND PROHIBITED. (a) An
education service provider may not charge a child participating in
the pilot program an amount greater than the standard amount
charged for that service by the provider.
(b) An education service provider or a vendor of educational
products receiving funds distributed under the pilot program may
not in any manner rebate, refund, or credit to or share with a pilot
program participant, or any person on behalf of a participant, any
pilot program funds paid or owed by the participant to the provider
or vendor.
Sec. 29.363. REFERRAL TO ATTORNEY GENERAL. (a) If the
comptroller obtains evidence of fraudulent use of an account, the
comptroller may refer the case to the attorney general for
investigation.
(b) With the consent of the appropriate local county or
district attorney, the attorney general has concurrent
jurisdiction with the consenting local prosecutor to prosecute an
offense referred to the attorney general under Subsection (a).
Sec. 29.364. PROVIDER ACCOUNTABILITY. (a) A private
school must be accredited by an organization that is recognized by
the Texas Private School Accreditation Commission to receive funds
distributed under the pilot program.
(b) At least 75 percent of funds received by a private
school under the pilot program must be used to provide educational
programs and services for children participating in the pilot
program.
(c) A private tutor or teaching service and a practitioner
or provider who provides educational therapies or services for a
child with a disability must be licensed or accredited by a regional
or national accrediting organization to receive funds distributed
under the pilot program.
Sec. 29.365. PILOT PROGRAM PARTICIPANT, PROVIDER, AND
VENDOR AUTONOMY. (a) An education service provider or vendor of
educational products that receives funds distributed under the
pilot program is not an agent of the state or federal government.
(b) Except as provided by this subchapter, the comptroller,
the agency, the State Board of Education, any other state agency, or
any school district may not:
(1) regulate the educational program of an education
service provider or vendor of educational products that receives
funds distributed under the pilot program; or
(2) exercise control or supervision over a pilot
program participant or an education service provider or vendor of
educational products that receives funds distributed under the
pilot program.
(c) The pilot program does not expand the regulatory
authority of the state or any school district to impose any
additional regulation on an education service provider or vendor of
educational products except those reasonably necessary to enforce
the pilot program as provided by this subchapter.
(d) A private school may not be required to modify the
school's creed, practices, admissions policies, curriculum,
performance standards, or assessments to receive funds distributed
under the pilot program.
(e) A private school voluntarily selected by a parent for
the parent's child to attend or a parent who homeschools the
parent's child, with or without governmental assistance, may not be
required to comply with any state law or rule governing the
applicable educational program that was not in effect on January 1,
2021.
(f) In any proceeding challenging a rule adopted by a state
agency or officer under this subchapter, the agency or officer has
the burden of proof to establish that the rule:
(1) is necessary to implement or enforce the pilot
program as provided by this subchapter; and
(2) does not impose an undue burden on a pilot program
participant or an education service provider or vendor of
educational products that receives or seeks to receive funds
distributed under the pilot program.
Sec. 29.366. STUDENT RECORDS. On request by the parent of a
child participating in the pilot program, the school district or
open-enrollment charter school that the child would otherwise
attend shall provide a copy of the child's school records possessed
by the district or school, if any, to the child's parent or, if
applicable, the private school the child attends.
Sec. 29.367. REPORTING NUMBER OF PARTICIPANTS. (a) Not
later than October 1 of each year, the comptroller shall notify the
commissioner and the Legislative Budget Board of the number of
eligible children likely to participate in the pilot program,
disaggregated by the school district or open-enrollment charter
school the eligible children would otherwise attend.
(b) Not later than March 1 of each year, the comptroller
shall provide final information to the commissioner and the
Legislative Budget Board regarding the number of children
participating in the pilot program, disaggregated in the same
manner as the initial information under Subsection (a).
Sec. 29.368. ANNUAL SURVEY. The comptroller may conduct an
annual parental satisfaction survey that asks each parent of a
child participating in the pilot program to express:
(1) the parent's overall level of satisfaction with
the pilot program; and
(2) the parent's opinion on specified topics and
issues relevant to the effectiveness of the pilot program.
Sec. 29.369. GIFTS, GRANTS, AND DONATIONS. The comptroller
may solicit and accept gifts, grants, and donations from any public
or private source for any expenses related to the initial
implementation or administration of the pilot program.
Sec. 29.370. REPORT. Not later than December 1, 2030, the
comptroller shall submit to the legislature a report on the
effectiveness of the pilot program and a recommendation regarding
whether the pilot program should be continued, expanded, or
terminated.
Sec. 29.371. RULES. The comptroller shall adopt rules as
necessary to implement this subchapter, including:
(1) rules regarding expense reporting requirements
for pilot program participants; and
(2) rules for implementing this subchapter in a manner
that ensures compliance with federal law regarding confidentiality
of student educational information, including the Family
Educational Rights and Privacy Act of 1974 (20 U.S.C. Section
1232g).
Sec. 29.372. EXPIRATION. This subchapter expires September
1, 2031.
SECTION 2. Section 48.266, Education Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) Notwithstanding Subsection (b), the commissioner
shall adjust enrollment estimates and entitlement for each school
district for each school year based on information provided by the
comptroller under Section 29.367. This subsection expires
September 1, 2024.
SECTION 3. Section 58.106, Family Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Information contained in the juvenile justice
information system may be disseminated to the comptroller for the
purpose of determining a child's eligibility to participate in the
education microgrant pilot program under Subchapter J, Chapter 29,
Education Code. Information disseminated under this subsection
remains confidential after dissemination and may be disclosed by
the comptroller only as provided by this title. This subsection
expires September 1, 2031.
SECTION 4. Section 58.260, Family Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) A juvenile court shall allow, by order, the inspection
of records sealed under this subchapter or under Section 58.003, as
that law existed before September 1, 2017, by the comptroller for
the purpose of determining a person's eligibility to participate in
the education microgrant pilot program under Subchapter J, Chapter
29, Education Code.
SECTION 5. Section 65.202, Family Code, is amended to read
as follows:
Sec. 65.202. CONFIDENTIALITY OF RECORDS. (a) Records and
files created under this chapter may be disclosed only to:
(1) the judge of the truancy court, the truant conduct
prosecutor, and the staff of the judge and prosecutor;
(2) the child or an attorney for the child;
(3) a governmental agency if the disclosure is
required or authorized by law;
(4) a person or entity to whom the child is referred
for treatment or services if the agency or institution disclosing
the information has entered into a written confidentiality
agreement with the person or entity regarding the protection of the
disclosed information;
(5) the Texas Department of Criminal Justice and the
Texas Juvenile Justice Department for the purpose of maintaining
statistical records of recidivism and for diagnosis and
classification;
(6) the agency; or
(7) with leave of the truancy court, any other person,
agency, or institution having a legitimate interest in the
proceeding or in the work of the court.
(b) Records and files created under this chapter may also be
disclosed to the comptroller for the purpose of determining a
child's eligibility to participate in the education microgrant
pilot program under Subchapter J, Chapter 29, Education Code. This
subsection expires September 1, 2031.
SECTION 6. Section 411.109, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) The comptroller is entitled to obtain from the
department criminal history record information maintained by the
department that relates to a child for the purpose of determining
the child's eligibility to participate in the education microgrant
pilot program under Subchapter J, Chapter 29, Education Code. This
subsection expires September 1, 2031.
SECTION 7. This Act applies beginning with the 2021-2022
school year.
SECTION 8. Not later than 45 days after the effective date
of this Act, the comptroller of public accounts shall adopt rules
necessary to implement the education microgrant pilot program under
Subchapter J, Chapter 29, Education Code, as added by this Act.
SECTION 9. 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. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.