Texas 2021 - 87th Regular

Texas House Bill HB4537 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R10803 KJE-F
2	2	By: Middleton H.B. No. 4537
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of the Family Educational Relief
8	8	Program and an insurance premium tax credit for contributions made
9	9	for purposes of that program.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 29, Education Code, is amended by adding
12	12	Subchapter J to read as follows:
13	13	SUBCHAPTER J. FAMILY EDUCATIONAL RELIEF PROGRAM
14	14	Sec. 29.351. DEFINITIONS. In this subchapter:
15	15	(1) "Account" means a family educational relief
16	16	account established under the program.
17	17	(2) "Certified educational assistance organization"
18	18	means an educational assistance organization certified under
19	19	Section 29.355 to administer the program.
20	20	(3) "Child with a disability" means a child who is
21	21	eligible to participate in a school district's special education
22	22	program under Section 29.003.
23	23	(4) "Institution of higher education" and "private or
24	24	independent institution of higher education" have the meanings
25	25	assigned by Section 61.003.
26	26	(5) "Parent" means a resident of this state who is a
27	27	natural or adoptive parent, managing or possessory conservator,
28	28	legal guardian, custodian, or other person with legal authority to
29	29	act on behalf of a child.
30	30	(6) "Program" means the Family Educational Relief
31	31	Program established under this subchapter.
32	32	(7) "Program participant" means a child and a parent
33	33	of a child enrolled in the program.
34	34	Sec. 29.352. PURPOSE. The purpose of the Family
35	35	Educational Relief Program is to provide children from low-income
36	36	households with additional educational options in order to achieve
37	37	a general diffusion of knowledge.
38	38	Sec. 29.353. ESTABLISHMENT OF PROGRAM. The comptroller
39	39	shall establish the Family Educational Relief Program to provide
40	40	funding for approved education-related expenses of eligible
41	41	children admitted into the program.
42	42	Sec. 29.354. FAMILY EDUCATIONAL RELIEF PROGRAM FUND. (a)
43	43	The Family Educational Relief Program fund is an account in the
44	44	general revenue fund to be administered by the comptroller.
45	45	(b) The fund is composed of:
46	46	(1) general revenue transferred to the fund;
47	47	(2) money appropriated to the fund;
48	48	(3) gifts, grants, and donations received under
49	49	Section 29.370;
50	50	(4) contributions to the fund for which an entity
51	51	receives a credit against the entity's state premium tax liability
52	52	under Chapter 230, Insurance Code; and
53	53	(5) any other money available for purposes of the
54	54	program.
55	55	(c) Money in the fund may be appropriated only to the
56	56	comptroller for purposes of making payments to program participants
57	57	and administering the program under this subchapter.
58	58	Sec. 29.355. SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
59	59	ORGANIZATIONS. (a) An organization may apply to the comptroller
60	60	for certification as a certified educational assistance
61	61	organization during an application period established by the
62	62	comptroller.
63	63	(b) To be eligible for certification, the organization
64	64	must:
65	65	(1) have the ability to perform the duties and
66	66	functions required of a certified educational assistance
67	67	organization under this subchapter as provided by the
68	68	organization's charter;
69	69	(2) be exempt from federal tax under Section 501(a) of
70	70	the Internal Revenue Code of 1986 by being listed as an exempt
71	71	organization in Section 501(c)(3) of that code;
72	72	(3) be in good standing with the state; and
73	73	(4) be able to administer the program, including the
74	74	ability to:
75	75	(A) accept, process, and track applications for
76	76	the program; and
77	77	(B) verify that program funding is used only for
78	78	approved education-related expenses.
79	79	(c) The comptroller shall certify at least one but no more
80	80	than three educational assistance organizations to assist in
81	81	administering the program, including by verifying:
82	82	(1) a child's eligibility for the program; and
83	83	(2) the use of funds in a program participant's account
84	84	only for purposes approved under Section 29.360.
85	85	Sec. 29.356. ELIGIBLE CHILD. (a) A child is eligible to
86	86	participate in the program if the child is:
87	87	(1) eligible to attend a public school under Section
88	88	25.001; and
89	89	(2) a member of a household with a total annual income
90	90	that is at or below the income guidelines necessary to qualify for
91	91	the national free or reduced-price lunch program established under
92	92	42 U.S.C. Section 1751 et seq.
93	93	(b) A sibling of a child who is eligible to participate in
94	94	the program under Subsection (a) is eligible to participate in the
95	95	program if the sibling is eligible to attend a public school under
96	96	Section 25.001.
97	97	(c) A child who establishes eligibility under this section
98	98	may participate in the program until the earliest of the following
99	99	dates:
100	100	(1) the date on which the child graduates from high
101	101	school;
102	102	(2) the date on which the child is no longer eligible
103	103	to attend a public school under Section 25.001;
104	104	(3) the date on which the child enrolls in a public
105	105	school, including an open-enrollment charter school; or
106	106	(4) the date on which the child is declared ineligible
107	107	for the program by the comptroller under this subchapter.
108	108	Sec. 29.357. APPLICATION TO PROGRAM. (a) A parent of an
109	109	eligible child may apply to a certified educational assistance
110	110	organization to enroll the child in the program for the following
111	111	school year. The parent must provide any information requested by
112	112	the organization for purposes of verifying the child's eligibility
113	113	for the program.
114	114	(b) Each certified educational assistance organization
115	115	shall create an application form for the program and make the
116	116	application form readily available to interested parents through
117	117	various sources, including the organization's Internet website.
118	118	The organization shall ensure that the application form is capable
119	119	of being submitted to the organization electronically.
120	120	(c) Each certified educational assistance organization
121	121	shall post on the organization's Internet website and provide to
122	122	each parent who submits an application form to the organization a
123	123	publication that describes the operation of the program, including:
124	124	(1) expenses allowed under the program under Section
125	125	29.360;
126	126	(2) the organization's expense reporting
127	127	requirements; and
128	128	(3) a description of the responsibilities of program
129	129	participants and the duties of the organization under this
130	130	subchapter.
131	131	(d) Subject to the availability of funding, a certified
132	132	educational assistance organization shall admit into the program
133	133	each child for whom the organization received an application under
134	134	this section if the organization verifies that the child is
135	135	eligible to participate in the program. If available funding is
136	136	insufficient to admit each eligible child into the program, the
137	137	organization shall prioritize admitting children in the following
138	138	order:
139	139	(1) children who participated in the program in the
140	140	preceding school year;
141	141	(2) siblings of children who participated in the
142	142	program in the preceding school year; and
143	143	(3) children who demonstrate the greatest financial
144	144	need.
145	145	Sec. 29.358. PARTICIPATION IN PROGRAM. (a) To receive
146	146	funding under the program, a parent of an eligible child must agree
147	147	to:
148	148	(1) spend money received through the program only for
149	149	expenses allowed under Section 29.360; and
150	150	(2) notify the parent's certified educational
151	151	assistance organization not later than 30 days after the date on
152	152	which the child:
153	153	(A) enrolls in a public school, including an
154	154	open-enrollment charter school;
155	155	(B) graduates from high school; or
156	156	(C) is no longer eligible to enroll in a public
157	157	school under Section 25.001.
158	158	(b) The parent of a child participating in the program is
159	159	the trustee of the child's account.
160	160	(c) Each certified educational assistance organization
161	161	shall provide annually to each program participant for whom the
162	162	organization is responsible the publication provided under Section
163	163	29.357(c). The publication may be provided electronically.
164	164	Sec. 29.359. APPROVED PROVIDERS. (a) The comptroller
165	165	shall by rule establish a process for the preapproval of education
166	166	service providers and vendors of educational products for
167	167	participation in the program. The comptroller shall post on the
168	168	comptroller's Internet website and provide to each certified
169	169	educational assistance organization the list of preapproved
170	170	providers and vendors.
171	171	(b) The comptroller shall approve an education service
172	172	provider or vendor of educational products for participation in the
173	173	program if the provider or vendor:
174	174	(1) for a private school, executes a notarized
175	175	affidavit, with supporting documents, concerning the school's
176	176	qualification to serve program participants, including evidence
177	177	of:
178	178	(A) accreditation by an organization recognized
179	179	by the Texas Private School Accreditation Commission;
180	180	(B) annual administration of a nationally
181	181	norm-referenced assessment instrument or the appropriate
182	182	assessment instrument required under Section 39.023;
183	183	(C) valid certificate of occupancy;
184	184	(D) policy statements regarding:
185	185	(i) admissions;
186	186	(ii) curriculum;
187	187	(iii) safety;
188	188	(iv) food service inspection;
189	189	(v) student to teacher ratios; and
190	190	(vi) assessments; and
191	191	(E) the school's agreement that program
192	192	participants are eligible to apply for scholarships offered by the
193	193	school to the same extent as other children;
194	194	(2) for a private tutor, therapist, or teaching
195	195	service:
196	196	(A) executes a notarized affidavit, with
197	197	supporting documents, concerning the tutor's, therapist's, or
198	198	service's qualification to serve program participants, including
199	199	evidence that the tutor or therapist or each employee of the service
200	200	who intends to provide services to a program participant:
201	201	(i) is certified under Subchapter B,
202	202	Chapter 21;
203	203	(ii) holds a relevant license or
204	204	accreditation issued by a state, regional, or national licensing or
205	205	accreditation organization; or
206	206	(iii) is employed in a teaching or tutoring
207	207	capacity at an institution of higher education or private or
208	208	independent institution of higher education; and
209	209	(B) the tutor or therapist or each employee of
210	210	the teaching service who intends to provide educational services to
211	211	a program participant either:
212	212	(i) completes a national criminal history
213	213	record information review; or
214	214	(ii) provides to the comptroller
215	215	documentation indicating that the tutor, therapist, or employee, as
216	216	applicable, has completed a national criminal history record
217	217	information review within a period established by comptroller rule;
218	218	(3) for an online educational course or program
219	219	provider, executes a notarized affidavit, with supporting
220	220	documents, concerning the provider's qualification to serve
221	221	program participants, including evidence of accreditation by an
222	222	organization recognized by the Texas Private School Accreditation
223	223	Commission; or
224	224	(4) for any provider or vendor not described by
225	225	Subdivision (1), (2), or (3), presents any necessary supporting
226	226	documents concerning the provider's or vendor's qualification to
227	227	serve program participants.
228	228	(c) The comptroller shall review the national criminal
229	229	history record information or documentation for each private tutor,
230	230	therapist, or teaching service who submits an application. The
231	231	tutor, therapist, or service must provide the comptroller with any
232	232	information requested by the comptroller to enable the comptroller
233	233	to complete the review.
234	234	(d) Each certified educational assistance organization
235	235	shall post on the organization's Internet website the list of
236	236	preapproved education service providers and vendors of educational
237	237	products provided under Subsection (a).
238	238	Sec. 29.360. APPROVED EDUCATION-RELATED EXPENSES. (a)
239	239	Subject to Subsection (b), money received under the program may be
240	240	used only for the following expenses incurred by a program
241	241	participant at a preapproved education service provider or vendor:
242	242	(1) tuition and fees:
243	243	(A) at a private school;
244	244	(B) at an institution of higher education or a
245	245	private or independent institution of higher education; or
246	246	(C) for an online educational course or program;
247	247	(2) the purchase of textbooks or other instructional
248	248	materials or uniforms required by a school, institution, course, or
249	249	program described by Subdivision (1) in which the child is
250	250	enrolled;
251	251	(3) fees for services provided by a private tutor or
252	252	teaching service; and
253	253	(4) fees for educational therapies or services
254	254	provided by a practitioner or provider, only for fees that are not
255	255	covered by any federal, state, or local government benefits such as
256	256	Medicaid or the Children's Health Insurance Program (CHIP) or by
257	257	any private insurance that the child is enrolled in at the time of
258	258	receiving the therapies or services.
259	259	(b) Money received under the program may not be used to pay
260	260	any person who is:
261	261	(1) related to the program participant within the
262	262	third degree of consanguinity or affinity, as determined under
263	263	Chapter 573, Government Code; or
264	264	(2) a member of the program participant's household.
265	265	(c) A finding that a program participant used money
266	266	distributed under the program to pay for an expense not allowed
267	267	under Subsection (a) does not affect the validity of any payment
268	268	made by the participant for an expense that is allowed under that
269	269	subsection.
270	270	Sec. 29.361. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
271	271	an eligible child shall receive each year that the child
272	272	participates in the program a payment from the state to the child's
273	273	account in an amount that is equal to 90 percent of the state
274	274	average maintenance and operations expenditures per student in
275	275	average daily attendance for the preceding state fiscal year.
276	276	(b) Any money remaining in a child's account at the end of a
277	277	fiscal year is carried forward to the next fiscal year unless
278	278	another provision of this subchapter mandates the closure of the
279	279	account.
280	280	(c) The parent of a child participating in the program may
281	281	make payments for the expenses of educational programs, services,
282	282	and products not covered by money in the child's account.
283	283	(d) A payment under Subsection (a) may not be financed using
284	284	federal money or money appropriated from the permanent school fund
285	285	or the available school fund.
286	286	(e) Not later than November 1 of each even-numbered year,
287	287	the comptroller shall submit to the legislature an estimate of the
288	288	total amount of funding required for the program for the following
289	289	state fiscal biennium.
290	290	Sec. 29.362. ADMINISTRATION OF ACCOUNTS. (a) The
291	291	comptroller shall make quarterly payments to each program
292	292	participant's account in equal amounts on or before the first day of
293	293	August, November, February, and May.
294	294	(b) The comptroller may deduct an amount from each quarterly
295	295	payment to a program participant's account to cover the
296	296	comptroller's cost of administering the program. The amount
297	297	deducted may not exceed three percent of the payment.
298	298	(c) Each quarter, the comptroller shall disburse to each
299	299	certified educational assistance organization an amount from the
300	300	total amount of money appropriated for purposes of this subchapter
301	301	to cover the organization's cost of administering the program. The
302	302	total amount disbursed to certified educational assistance
303	303	organizations under this subsection for a fiscal year may not
304	304	exceed five percent of the amount appropriated for purposes of this
305	305	subchapter for that fiscal year.
306	306	(d) Before each payment is made under Subsection (a), each
307	307	certified educational assistance organization shall:
308	308	(1) compare the list of program participants for whom
309	309	the organization is responsible with public school enrollment lists
310	310	maintained by the agency; and
311	311	(2) notify the comptroller if the organization
312	312	determines that a program participant is enrolled in a public
313	313	school, including an open-enrollment charter school.
314	314	(e) On the date on which a child who participated in the
315	315	program is no longer eligible to participate in the program under
316	316	Section 29.356(c), the child's account is closed and any remaining
317	317	money is returned to the state for deposit in the Family Educational
318	318	Relief Program fund.
319	319	Sec. 29.363. RANDOM AUDITING. (a) The comptroller may
320	320	contract with a private entity to randomly audit accounts and the
321	321	certified educational assistance organizations as necessary to
322	322	ensure compliance with applicable law and the requirements of the
323	323	program.
324	324	(b) In conducting an audit, the comptroller or private
325	325	entity may require that a program participant or certified
326	326	educational assistance organization provide additional information
327	327	and documentation regarding any payment made under the program.
328	328	(c) The private entity shall report to the comptroller any
329	329	violation of this subchapter or other relevant law found by the
330	330	entity during an audit conducted under this section.
331	331	Sec. 29.364. SUSPENSION OF ACCOUNT. (a) The comptroller
332	332	shall suspend the account of a program participant who fails to
333	333	comply with applicable law or a requirement of the program.
334	334	(b) On suspension of an account under Subsection (a), the
335	335	comptroller shall notify the program participant in writing that
336	336	the account has been suspended and that no additional payments may
337	337	be made from the account. The notification must specify the grounds
338	338	for the suspension and state that the participant has 10 business
339	339	days to respond and take any corrective action required by the
340	340	comptroller.
341	341	(c) On the expiration of the 10-day period under Subsection
342	342	(b), the comptroller shall:
343	343	(1) order permanent closure of the suspended account
344	344	and declare the program participant ineligible for the program;
345	345	(2) order temporary reinstatement of the account,
346	346	conditioned on the performance of a specified action by the
347	347	participant; or
348	348	(3) order full reinstatement of the account.
349	349	(d) The comptroller may recover money distributed under the
350	350	program that was used for expenses not allowed under Section 29.360
351	351	from the program participant or the entity that received the money
352	352	if the participant's account is suspended or closed under this
353	353	section.
354	354	Sec. 29.365. TUITION AND FEES; REFUND PROHIBITED. (a) An
355	355	education service provider may not charge a child participating in
356	356	the program an amount greater than the standard amount charged for
357	357	that service by the provider.
358	358	(b) An education service provider or a vendor of educational
359	359	products receiving money distributed under the program may not in
360	360	any manner rebate, refund, or credit to or share with a program
361	361	participant, or any person on behalf of a participant, any program
362	362	money paid or owed by the participant to the provider or vendor.
363	363	Sec. 29.366. REFERRAL TO ATTORNEY GENERAL. (a) If the
364	364	comptroller or a certified educational assistance organization
365	365	obtains evidence of fraudulent use of an account, the comptroller
366	366	or organization may refer the case to the attorney general for
367	367	investigation.
368	368	(b) With the consent of the appropriate local county or
369	369	district attorney, the attorney general has concurrent
370	370	jurisdiction with the consenting local prosecutor to prosecute an
371	371	offense referred to the attorney general under Subsection (a).
372	372	Sec. 29.367. SPECIAL EDUCATION NOTICE. (a) Each certified
373	373	educational assistance organization shall post on the
374	374	organization's Internet website and provide to each parent who
375	375	submits an application for the program on behalf of a child with a
376	376	disability a notice that:
377	377	(1) states that a private school is not subject to laws
378	378	regarding the provision of educational services in the same manner
379	379	as a public school, and a child with a disability attending a
380	380	private school may not receive the services a child with a
381	381	disability attending a public school is entitled to receive under
382	382	federal and state law; and
383	383	(2) provides information regarding rights to which a
384	384	child with a disability is entitled under federal and state law if
385	385	the child attends a public school, including:
386	386	(A) rights provided under the Individuals with
387	387	Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
388	388	including:
389	389	(i) an individualized education program;
390	390	(ii) educational services provided in the
391	391	least restrictive environment;
392	392	(iii) instruction from certified teachers;
393	393	(iv) due process hearings to ensure proper
394	394	and full implementation of an individualized education program;
395	395	(v) transition and planning services; and
396	396	(vi) supplementary aids and services;
397	397	(B) rights provided under Subchapter A; and
398	398	(C) other rights provided under federal or state
399	399	law.
400	400	(b) A private school in which a child with a disability who
401	401	is participating in the program enrolls shall provide to the
402	402	child's parent a copy of the notice required under Subsection (a).
403	403	Sec. 29.368. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
404	404	AUTONOMY. (a) An education service provider or vendor of
405	405	educational products that receives money distributed under the
406	406	program is not an agent of the state or federal government.
407	407	(b) The program does not expand the regulatory authority of
408	408	the state or any school district to impose any additional
409	409	regulation on an education service provider or vendor of
410	410	educational products except those reasonably necessary to enforce
411	411	the program as provided by this subchapter.
412	412	(c) An education service provider may not be required to
413	413	modify the provider's creed, practices, admissions policies,
414	414	curriculum, performance standards, or assessments, as applicable,
415	415	to receive money distributed under the program.
416	416	(d) In any proceeding challenging a rule adopted by a state
417	417	agency or officer under this subchapter, the agency or officer has
418	418	the burden of proof to establish that the rule:
419	419	(1) is necessary to implement or enforce the program
420	420	as provided by this subchapter; and
421	421	(2) does not impose an undue burden on a program
422	422	participant or an education service provider or vendor of
423	423	educational products that receives or seeks to receive money
424	424	distributed under the program.
425	425	Sec. 29.369. STUDENT RECORDS AND INFORMATION. (a) On
426	426	request by the parent of a child participating or seeking to
427	427	participate in the program, the school district or open-enrollment
428	428	charter school that the child would otherwise attend shall provide
429	429	a copy of the child's school records possessed by the district or
430	430	school, if any, to the child's parent or, if applicable, the private
431	431	school the child attends.
432	432	(b) The agency shall provide to each certified educational
433	433	assistance organization any information available to the agency
434	434	requested by the organization regarding a child who participates or
435	435	seeks to participate in the program. The organization may not
436	436	retain information provided under this subsection beyond the period
437	437	necessary to determine a child's eligibility to participate in the
438	438	program.
439	439	Sec. 29.370. GIFTS, GRANTS, AND DONATIONS. The comptroller
440	440	may solicit and accept gifts, grants, and donations from any public
441	441	or private source for any expenses related to the administration of
442	442	the program, including the initial implementation of the program.
443	443	Sec. 29.371. RULES; PROCEDURES. (a) The comptroller shall
444	444	adopt rules and procedures only as necessary to implement,
445	445	administer, and enforce this subchapter.
446	446	(b) A rule adopted under Subsection (a) is binding on an
447	447	organization that applies for certification as an educational
448	448	assistance organization and a state or local governmental entity,
449	449	including a political subdivision, as necessary to implement,
450	450	administer, and enforce this subchapter.
451	451	Sec. 29.372. PARENTAL AND STUDENT RIGHT TO INTERVENE IN
452	452	CIVIL ACTION. (a) A program participant may intervene in any civil
453	453	action challenging the constitutionality of the program or the
454	454	insurance premium tax credit under Chapter 230, Insurance Code.
455	455	(b) A court in which a civil action described by Subsection
456	456	(a) is filed may require that all program participants wishing to
457	457	intervene in the action file a joint brief. A program participant
458	458	may not be required to join a brief filed on behalf of the state or a
459	459	state agency.
460	460	SECTION 2. Section 411.109, Government Code, is amended by
461	461	adding Subsection (c) to read as follows:
462	462	(c) The comptroller is entitled to obtain criminal history
463	463	record information maintained by the department about a person who
464	464	is a private tutor, a therapist, or an employee of a teaching
465	465	service who intends to provide educational services to a child
466	466	participating in the program established under Subchapter J,
467	467	Chapter 29, Education Code, and is seeking approval to receive
468	468	money distributed under that program.
469	469	SECTION 3. Subtitle B, Title 3, Insurance Code, is amended
470	470	by adding Chapter 230 to read as follows:
471	471	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
472	472	FAMILY EDUCATIONAL RELIEF PROGRAM
473	473	SUBCHAPTER A. GENERAL PROVISIONS
474	474	Sec. 230.001. DEFINITIONS. In this chapter:
475	475	(1) "Fund" means the Family Educational Relief Program
476	476	fund under Section 29.354, Education Code.
477	477	(2) "State premium tax liability" means any liability
478	478	incurred by an entity under Chapters 221 through 226.
479	479	SUBCHAPTER B. CREDIT
480	480	Sec. 230.051. CREDIT. An entity may apply for a credit
481	481	against the entity's state premium tax liability in the amount and
482	482	under the conditions provided by this chapter. The comptroller
483	483	shall award credits as provided by Section 230.053.
484	484	Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
485	485	Subject to Subsections (b) and (c), the amount of an entity's credit
486	486	is equal to the lesser of the amount contributed to the fund during
487	487	the period covered by the tax report or 50 percent of the entity's
488	488	state premium tax liability for the report.
489	489	(b) For the 2022 state fiscal year, the total amount of
490	490	credits that may be awarded under this chapter may not exceed $200
491	491	million. For each subsequent state fiscal year, the total amount of
492	492	credits that may be awarded is:
493	493	(1) the same total amount of credits available under
494	494	this subsection for the previous state fiscal year, if Subdivision
495	495	(2) does not apply; or
496	496	(2) 125 percent of the total amount of credits
497	497	available under this subsection for the previous state fiscal year,
498	498	if the total amount of credits awarded in the previous state fiscal
499	499	year was at least 90 percent of the total amount of credits
500	500	available under this subsection for that fiscal year.
501	501	(c) The comptroller by rule shall prescribe procedures by
502	502	which the comptroller may allocate credits under this chapter. The
503	503	procedures must provide that credits are allocated first to
504	504	entities that received preliminary approval for a credit under
505	505	Section 230.0525 and that apply under Section 230.053. The
506	506	procedures must provide that any remaining credits are allocated to
507	507	entities that apply under Section 230.053 on a first-come,
508	508	first-served basis, based on the date the contribution was
509	509	initially made.
510	510	(d) The comptroller may require an entity to notify the
511	511	comptroller of the amount the entity intends or expects to apply for
512	512	under this chapter before the beginning of a state fiscal year or at
513	513	any other time required by the comptroller.
514	514	Sec. 230.0525. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
515	515	making a contribution to the fund, an entity may apply to the
516	516	comptroller for preliminary approval of a credit under this chapter
517	517	for the contribution.
518	518	(b) An entity must apply for preliminary approval on a form
519	519	provided by the comptroller that includes the amount the entity
520	520	expects to contribute and any other information the comptroller
521	521	requires.
522	522	(c) The comptroller shall grant preliminary approval for
523	523	credits under this chapter on a first-come, first-served basis,
524	524	based on the date the comptroller receives the application for
525	525	preliminary approval.
526	526	(d) The comptroller shall grant preliminary approval for a
527	527	credit under this chapter for a state fiscal year if the sum of the
528	528	amount of the credit and the total amount of all other credits
529	529	preliminarily approved under this chapter does not exceed the
530	530	amount provided by Section 230.052(b).
531	531	(e) Final award of a credit preliminarily approved under
532	532	this section remains subject to the limitations under Section
533	533	230.052(a) and all other requirements of this chapter.
534	534	Sec. 230.053. APPLICATION FOR CREDIT. (a) An entity must
535	535	apply for a credit under this chapter on or with the tax report
536	536	covering the period in which the contribution was made.
537	537	(b) The comptroller shall adopt a form for the application
538	538	for the credit. An entity must use this form in applying for the
539	539	credit.
540	540	(c) Subject to Section 230.052(c), the comptroller may
541	541	award a credit to an entity that applies for the credit under
542	542	Subsection (a) if the entity is eligible for the credit and the
543	543	credit is available under Section 230.052(b). The comptroller has
544	544	broad discretion in determining whether to grant or deny an
545	545	application for a credit.
546	546	(d) The comptroller shall notify an entity in writing of the
547	547	comptroller's decision to grant or deny the application under
548	548	Subsection (a). If the comptroller denies an entity's application,
549	549	the comptroller shall include in the notice of denial the reasons
550	550	for the comptroller's decision.
551	551	(e) If the comptroller denies an entity's application under
552	552	Subsection (a), the entity may request in writing a reconsideration
553	553	of the application not later than the 10th day after the date the
554	554	notice under Subsection (d) is received. If the entity does not
555	555	request a reconsideration of the application on or before that
556	556	date, the comptroller's decision is final.
557	557	(f) An entity that requests a reconsideration under
558	558	Subsection (e) may submit to the comptroller, not later than the
559	559	30th day after the date the request for reconsideration is
560	560	submitted, additional information and documents to support the
561	561	entity's request for reconsideration.
562	562	(g) The comptroller's reconsideration of an application
563	563	under this section is not a contested case under Chapter 2001,
564	564	Government Code. The comptroller's decision on a request for
565	565	reconsideration of an application is final and is not appealable.
566	566	(h) This section does not create a cause of action to
567	567	contest a decision of the comptroller to deny an application for a
568	568	credit under this chapter.
569	569	Sec. 230.054. RULES; PROCEDURES. The comptroller shall
570	570	adopt rules and procedures to implement, administer, and enforce
571	571	this chapter.
572	572	Sec. 230.055. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
573	573	may not convey, assign, or transfer the credit allowed under this
574	574	chapter to another entity unless all of the assets of the entity are
575	575	conveyed, assigned, or transferred in the same transaction.
576	576	Sec. 230.056. NOTICE OF AVAILABILITY OF CREDIT. The
577	577	comptroller shall provide notice of the availability of the credit
578	578	under this chapter on the comptroller's Internet website, in the
579	579	instructions for insurance premium tax report forms, and in any
580	580	notice sent to an entity concerning the requirement to file an
581	581	insurance premium tax report.
582	582	SECTION 4. Subchapter J, Chapter 29, Education Code, as
583	583	added by this Act, applies beginning with the 2022-2023 school
584	584	year.
585	585	SECTION 5. An entity may apply for a credit under Chapter
586	586	230, Insurance Code, as added by this Act, only for a contribution
587	587	made on or after the effective date of this Act.
588	588	SECTION 6. Not later than February 15, 2022, the
589	589	comptroller of public accounts shall adopt rules as provided by
590	590	Section 230.054, Insurance Code, as added by this Act.
591	591	SECTION 7. Chapter 230, Insurance Code, as added by this
592	592	Act, applies only to a tax report originally due on or after the
593	593	effective date of this Act.
594	594	SECTION 8. (a) The constitutionality and other validity
595	595	under the state or federal constitution of all or any part of
596	596	Subchapter J, Chapter 29, Education Code, as added by this Act, or
597	597	Chapter 230, Insurance Code, as added by this Act, may be determined
598	598	in an action for declaratory judgment in a district court in Travis
599	599	County under Chapter 37, Civil Practice and Remedies Code, except
600	600	that this section does not authorize an award of attorney's fees
601	601	against this state and Section 37.009, Civil Practice and Remedies
602	602	Code, does not apply to an action filed under this section. This
603	603	section does not authorize a taxpayer suit to contest the denial of
604	604	a tax credit by the comptroller of public accounts.
605	605	(b) An appeal of a declaratory judgment or order, however
606	606	characterized, of a district court, including an appeal of the
607	607	judgment of an appellate court, holding or otherwise determining
608	608	that all or any part of Subchapter J, Chapter 29, Education Code, as
609	609	added by this Act, or Chapter 230, Insurance Code, as added by this
610	610	Act, is constitutional or unconstitutional, or otherwise valid or
611	611	invalid, under the state or federal constitution is an accelerated
612	612	appeal.
613	613	(c) If the judgment or order is interlocutory, an
614	614	interlocutory appeal may be taken from the judgment or order and is
615	615	an accelerated appeal.
616	616	(d) A district court in Travis County may grant or deny a
617	617	temporary or otherwise interlocutory injunction or a permanent
618	618	injunction on the grounds of the constitutionality or
619	619	unconstitutionality, or other validity or invalidity, under the
620	620	state or federal constitution of all or any part of Subchapter J,
621	621	Chapter 29, Education Code, as added by this Act, or Chapter 230,
622	622	Insurance Code, as added by this Act.
623	623	(e) There is a direct appeal to the Texas Supreme Court from
624	624	an order, however characterized, of a trial court granting or
625	625	denying a temporary or otherwise interlocutory injunction or a
626	626	permanent injunction on the grounds of the constitutionality or
627	627	unconstitutionality, or other validity or invalidity, under the
628	628	state or federal constitution of all or any part of Subchapter J,
629	629	Chapter 29, Education Code, as added by this Act, or Chapter 230,
630	630	Insurance Code, as added by this Act.
631	631	(f) The direct appeal is an accelerated appeal.
632	632	(g) This section exercises the authority granted by Section
633	633	3-b, Article V, Texas Constitution.
634	634	(h) The filing of a direct appeal under this section will
635	635	automatically stay any temporary or otherwise interlocutory
636	636	injunction or permanent injunction granted in accordance with this
637	637	section pending final determination by the Texas Supreme Court,
638	638	unless the supreme court makes specific findings that the applicant
639	639	seeking such injunctive relief has pleaded and proved that:
640	640	(1) the applicant has a probable right to the relief it
641	641	seeks on final hearing; and
642	642	(2) the applicant will suffer a probable injury that
643	643	is imminent and irreparable, and that the applicant has no other
644	644	adequate legal remedy.
645	645	(i) An appeal under this section, including an
646	646	interlocutory, accelerated, or direct appeal, is governed, as
647	647	applicable, by the Texas Rules of Appellate Procedure, including
648	648	Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
649	649	38.6(a) and (b), 40.1(b), and 49.4.
650	650	SECTION 9. This Act takes effect January 1, 2022.