Texas 2021 - 87th Regular

Texas Senate Bill SB1968 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	By: Bettencourt, Campbell, Lucio S.B. No. 1968
2		-	(In the Senate - Filed March 12, 2021; April 1, 2021, read
3		-	first time and referred to Committee on Education; May 14, 2021,
4		-	reported adversely, with favorable Committee Substitute by the
5		-	following vote: Yeas 7, Nays 4; May 14, 2021, sent to printer.)
6		-	Click here to see the committee vote
7		-	COMMITTEE SUBSTITUTE FOR S.B. No. 1968 By: Bettencourt
	1	+	87R10803 KJE-F
	2	+	By: Bettencourt S.B. No. 1968
8	3
9	4
10	5		A BILL TO BE ENTITLED
11	6		AN ACT
12	7		relating to the establishment of the Family Educational Relief
13	8		Program and an insurance premium tax credit for contributions made
14	9		for purposes of that program.
15	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	11		SECTION 1. Chapter 29, Education Code, is amended by adding
17	12		Subchapter J to read as follows:
18	13		SUBCHAPTER J. FAMILY EDUCATIONAL RELIEF PROGRAM
19	14		Sec. 29.351. DEFINITIONS. In this subchapter:
20	15		(1) "Account" means a family educational relief
21	16		account established under the program.
22	17		(2) "Certified educational assistance organization"
23	18		means an educational assistance organization certified under
24	19		Section 29.355 to administer the program.
25	20		(3) "Child with a disability" means a child who is
26	21		eligible to participate in a school district's special education
27	22		program under Section 29.003.
28	23		(4) "Institution of higher education" and "private or
29	24		independent institution of higher education" have the meanings
30	25		assigned by Section 61.003.
31	26		(5) "Parent" means a resident of this state who is a
32	27		natural or adoptive parent, managing or possessory conservator,
33	28		legal guardian, custodian, or other person with legal authority to
34	29		act on behalf of a child.
35	30		(6) "Program" means the Family Educational Relief
36	31		Program established under this subchapter.
37	32		(7) "Program participant" means a child and a parent
38	33		of a child enrolled in the program.
39	34		Sec. 29.352. PURPOSE. The purpose of the Family
40	35		Educational Relief Program is to provide children from low-income
41	36		households with additional educational options in order to achieve
42	37		a general diffusion of knowledge.
43	38		Sec. 29.353. ESTABLISHMENT OF PROGRAM. The comptroller
44	39		shall establish the Family Educational Relief Program to provide
45	40		funding for approved education-related expenses of eligible
46	41		children admitted into the program.
47	42		Sec. 29.354. FAMILY EDUCATIONAL RELIEF PROGRAM FUND. (a)
48	43		The Family Educational Relief Program fund is an account in the
49	44		general revenue fund to be administered by the comptroller.
50	45		(b) The fund is composed of:
51	46		(1) general revenue transferred to the fund;
52	47		(2) money appropriated to the fund;
53	48		(3) gifts, grants, and donations received under
54	49		Section 29.370;
55	50		(4) contributions to the fund for which an entity
56	51		receives a credit against the entity's state premium tax liability
57	52		under Chapter 230, Insurance Code; and
58	53		(5) any other money available for purposes of the
59	54		program.
60	55		(c) Money in the fund may be appropriated only to the
61	56		comptroller for purposes of making payments to program participants
62	57		and administering the program under this subchapter.
63	58		Sec. 29.355. SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
64	59		ORGANIZATIONS. (a) An organization may apply to the comptroller
65	60		for certification as a certified educational assistance
66	61		organization during an application period established by the
67	62		comptroller.
68	63		(b) To be eligible for certification, the organization
69	64		must:
70	65		(1) have the ability to perform the duties and
71	66		functions required of a certified educational assistance
72	67		organization under this subchapter as provided by the
73	68		organization's charter;
74	69		(2) be exempt from federal tax under Section 501(a) of
75	70		the Internal Revenue Code of 1986 by being listed as an exempt
76	71		organization in Section 501(c)(3) of that code;
77	72		(3) be in good standing with the state; and
78	73		(4) be able to administer the program, including the
79	74		ability to:
80	75		(A) accept, process, and track applications for
81	76		the program; and
82	77		(B) verify that program funding is used only for
83	78		approved education-related expenses.
84	79		(c) The comptroller shall certify at least one but no more
85	80		than three educational assistance organizations to assist in
86	81		administering the program, including by verifying:
87	82		(1) a child's eligibility for the program; and
88	83		(2) the use of funds in a program participant's account
89	84		only for purposes approved under Section 29.360.
90	85		Sec. 29.356. ELIGIBLE CHILD. (a) A child is eligible to
91		-	participate in the program if the child:
92		-	(1) is eligible to attend a public school under
93		-	Section 25.001;
94		-	(2) attended a public school during the entire
95		-	preceding school year; and
96		-	(3) is a member of a household with a total annual
97		-	income that is at or below the income guidelines necessary to
98		-	qualify for the national free or reduced-price lunch program
99		-	established under 42 U.S.C. Section 1751 et seq.
	86	+	participate in the program if the child is:
	87	+	(1) eligible to attend a public school under Section
	88	+	25.001; and
	89	+	(2) a member of a household with a total annual income
	90	+	that is at or below the income guidelines necessary to qualify for
	91	+	the national free or reduced-price lunch program established under
	92	+	42 U.S.C. Section 1751 et seq.
100	93		(b) A sibling of a child who is eligible to participate in
101	94		the program under Subsection (a) is eligible to participate in the
102	95		program if the sibling is eligible to attend a public school under
103	96		Section 25.001.
104	97		(c) A child who establishes eligibility under this section
105	98		may participate in the program until the earliest of the following
106	99		dates:
107	100		(1) the date on which the child graduates from high
108	101		school;
109	102		(2) the date on which the child is no longer eligible
110	103		to attend a public school under Section 25.001;
111	104		(3) the date on which the child enrolls in a public
112	105		school, including an open-enrollment charter school; or
113	106		(4) the date on which the child is declared ineligible
114	107		for the program by the comptroller under this subchapter.
115	108		Sec. 29.357. APPLICATION TO PROGRAM. (a) A parent of an
116	109		eligible child may apply to a certified educational assistance
117	110		organization to enroll the child in the program for the following
118	111		school year. The parent must provide any information requested by
119	112		the organization for purposes of verifying the child's eligibility
120	113		for the program.
121	114		(b) Each certified educational assistance organization
122	115		shall create an application form for the program and make the
123	116		application form readily available to interested parents through
124	117		various sources, including the organization's Internet website.
125	118		The organization shall ensure that the application form is capable
126	119		of being submitted to the organization electronically.
127	120		(c) Each certified educational assistance organization
128	121		shall post on the organization's Internet website and provide to
129	122		each parent who submits an application form to the organization a
130	123		publication that describes the operation of the program, including:
131	124		(1) expenses allowed under the program under Section
132	125		29.360;
133	126		(2) the organization's expense reporting
134	127		requirements; and
135	128		(3) a description of the responsibilities of program
136	129		participants and the duties of the organization under this
137	130		subchapter.
138	131		(d) Subject to the availability of funding, a certified
139	132		educational assistance organization shall admit into the program
140	133		each child for whom the organization received an application under
141	134		this section if the organization verifies that the child is
142	135		eligible to participate in the program. If available funding is
143	136		insufficient to admit each eligible child into the program, the
144	137		organization shall prioritize admitting children in the following
145	138		order:
146	139		(1) children who participated in the program in the
147	140		preceding school year;
148	141		(2) siblings of children who participated in the
149	142		program in the preceding school year; and
150	143		(3) children who demonstrate the greatest financial
151	144		need.
152	145		Sec. 29.358. PARTICIPATION IN PROGRAM. (a) To receive
153	146		funding under the program, a parent of an eligible child must agree
154	147		to:
155	148		(1) spend money received through the program only for
156	149		expenses allowed under Section 29.360; and
157	150		(2) notify the parent's certified educational
158	151		assistance organization not later than 30 days after the date on
159	152		which the child:
160	153		(A) enrolls in a public school, including an
161	154		open-enrollment charter school;
162	155		(B) graduates from high school; or
163	156		(C) is no longer eligible to enroll in a public
164	157		school under Section 25.001.
165	158		(b) The parent of a child participating in the program is
166	159		the trustee of the child's account.
167	160		(c) Each certified educational assistance organization
168	161		shall provide annually to each program participant for whom the
169	162		organization is responsible the publication provided under Section
170	163		29.357(c). The publication may be provided electronically.
171	164		Sec. 29.359. APPROVED PROVIDERS. (a) The comptroller
172	165		shall by rule establish a process for the preapproval of education
173	166		service providers and vendors of educational products for
174	167		participation in the program. The comptroller shall post on the
175	168		comptroller's Internet website and provide to each certified
176	169		educational assistance organization the list of preapproved
177	170		providers and vendors.
178	171		(b) The comptroller shall approve an education service
179	172		provider or vendor of educational products for participation in the
180	173		program if the provider or vendor:
181	174		(1) for a private school, executes a notarized
182	175		affidavit, with supporting documents, concerning the school's
183	176		qualification to serve program participants, including evidence
184	177		of:
185	178		(A) accreditation by an organization recognized
186	179		by the Texas Private School Accreditation Commission;
187	180		(B) annual administration of a nationally
188	181		norm-referenced assessment instrument or the appropriate
189	182		assessment instrument required under Section 39.023;
190	183		(C) valid certificate of occupancy;
191	184		(D) policy statements regarding:
192	185		(i) admissions;
193	186		(ii) curriculum;
194	187		(iii) safety;
195	188		(iv) food service inspection;
196	189		(v) student to teacher ratios; and
197	190		(vi) assessments; and
198	191		(E) the school's agreement that program
199	192		participants are eligible to apply for scholarships offered by the
200	193		school to the same extent as other children;
201	194		(2) for a private tutor, therapist, or teaching
202	195		service:
203	196		(A) executes a notarized affidavit, with
204	197		supporting documents, concerning the tutor's, therapist's, or
205	198		service's qualification to serve program participants, including
206	199		evidence that the tutor or therapist or each employee of the service
207	200		who intends to provide services to a program participant:
208	201		(i) is certified under Subchapter B,
209	202		Chapter 21;
210	203		(ii) holds a relevant license or
211	204		accreditation issued by a state, regional, or national licensing or
212	205		accreditation organization; or
213	206		(iii) is employed in a teaching or tutoring
214	207		capacity at an institution of higher education or private or
215	208		independent institution of higher education; and
216	209		(B) the tutor or therapist or each employee of
217	210		the teaching service who intends to provide educational services to
218	211		a program participant either:
219	212		(i) completes a national criminal history
220	213		record information review; or
221	214		(ii) provides to the comptroller
222	215		documentation indicating that the tutor, therapist, or employee, as
223	216		applicable, has completed a national criminal history record
224	217		information review within a period established by comptroller rule;
225	218		(3) for an online educational course or program
226	219		provider, executes a notarized affidavit, with supporting
227	220		documents, concerning the provider's qualification to serve
228	221		program participants, including evidence of accreditation by an
229	222		organization recognized by the Texas Private School Accreditation
230	223		Commission; or
231	224		(4) for any provider or vendor not described by
232	225		Subdivision (1), (2), or (3), presents any necessary supporting
233	226		documents concerning the provider's or vendor's qualification to
234	227		serve program participants.
235	228		(c) The comptroller shall review the national criminal
236	229		history record information or documentation for each private tutor,
237	230		therapist, or teaching service who submits an application. The
238	231		tutor, therapist, or service must provide the comptroller with any
239	232		information requested by the comptroller to enable the comptroller
240	233		to complete the review.
241	234		(d) Each certified educational assistance organization
242	235		shall post on the organization's Internet website the list of
243	236		preapproved education service providers and vendors of educational
244	237		products provided under Subsection (a).
245	238		Sec. 29.360. APPROVED EDUCATION-RELATED EXPENSES. (a)
246	239		Subject to Subsection (b), money received under the program may be
247	240		used only for the following expenses incurred by a program
248	241		participant at a preapproved education service provider or vendor:
249	242		(1) tuition and fees:
250	243		(A) at a private school;
251	244		(B) at an institution of higher education or a
252	245		private or independent institution of higher education; or
253	246		(C) for an online educational course or program;
254	247		(2) the purchase of textbooks or other instructional
255	248		materials or uniforms required by a school, institution, course, or
256	249		program described by Subdivision (1) in which the child is
257	250		enrolled;
258	251		(3) fees for services provided by a private tutor or
259	252		teaching service; and
260	253		(4) fees for educational therapies or services
261	254		provided by a practitioner or provider, only for fees that are not
262	255		covered by any federal, state, or local government benefits such as
263	256		Medicaid or the Children's Health Insurance Program (CHIP) or by
264	257		any private insurance that the child is enrolled in at the time of
265	258		receiving the therapies or services.
266	259		(b) Money received under the program may not be used to pay
267	260		any person who is:
268	261		(1) related to the program participant within the
269	262		third degree of consanguinity or affinity, as determined under
270	263		Chapter 573, Government Code; or
271	264		(2) a member of the program participant's household.
272	265		(c) A finding that a program participant used money
273	266		distributed under the program to pay for an expense not allowed
274	267		under Subsection (a) does not affect the validity of any payment
275	268		made by the participant for an expense that is allowed under that
276	269		subsection.
277	270		Sec. 29.361. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
278	271		an eligible child shall receive each year that the child
279	272		participates in the program a payment from the state to the child's
280	273		account in an amount that is equal to 90 percent of the state
281	274		average maintenance and operations expenditures per student in
282	275		average daily attendance for the preceding state fiscal year.
283	276		(b) Any money remaining in a child's account at the end of a
284	277		fiscal year is carried forward to the next fiscal year unless
285	278		another provision of this subchapter mandates the closure of the
286	279		account.
287	280		(c) The parent of a child participating in the program may
288	281		make payments for the expenses of educational programs, services,
289	282		and products not covered by money in the child's account.
290	283		(d) A payment under Subsection (a) may not be financed using
291	284		federal money or money appropriated from the permanent school fund
292	285		or the available school fund.
293	286		(e) Not later than November 1 of each even-numbered year,
294	287		the comptroller shall submit to the legislature an estimate of the
295	288		total amount of funding required for the program for the following
296	289		state fiscal biennium.
297	290		Sec. 29.362. ADMINISTRATION OF ACCOUNTS. (a) The
298	291		comptroller shall make quarterly payments to each program
299	292		participant's account in equal amounts on or before the first day of
300	293		August, November, February, and May.
301	294		(b) The comptroller may deduct an amount from each quarterly
302	295		payment to a program participant's account to cover the
303	296		comptroller's cost of administering the program. The amount
304	297		deducted may not exceed three percent of the payment.
305	298		(c) Each quarter, the comptroller shall disburse to each
306	299		certified educational assistance organization an amount from the
307	300		total amount of money appropriated for purposes of this subchapter
308	301		to cover the organization's cost of administering the program. The
309	302		total amount disbursed to certified educational assistance
310	303		organizations under this subsection for a fiscal year may not
311	304		exceed five percent of the amount appropriated for purposes of this
312	305		subchapter for that fiscal year.
313	306		(d) Before each payment is made under Subsection (a), each
314	307		certified educational assistance organization shall:
315	308		(1) compare the list of program participants for whom
316	309		the organization is responsible with public school enrollment lists
317	310		maintained by the agency; and
318	311		(2) notify the comptroller if the organization
319	312		determines that a program participant is enrolled in a public
320	313		school, including an open-enrollment charter school.
321	314		(e) On the date on which a child who participated in the
322	315		program is no longer eligible to participate in the program under
323	316		Section 29.356(c), the child's account is closed and any remaining
324	317		money is returned to the state for deposit in the Family Educational
325	318		Relief Program fund.
326	319		Sec. 29.363. RANDOM AUDITING. (a) The comptroller may
327	320		contract with a private entity to randomly audit accounts and the
328	321		certified educational assistance organizations as necessary to
329	322		ensure compliance with applicable law and the requirements of the
330	323		program.
331	324		(b) In conducting an audit, the comptroller or private
332	325		entity may require that a program participant or certified
333	326		educational assistance organization provide additional information
334	327		and documentation regarding any payment made under the program.
335	328		(c) The private entity shall report to the comptroller any
336	329		violation of this subchapter or other relevant law found by the
337	330		entity during an audit conducted under this section.
338	331		Sec. 29.364. SUSPENSION OF ACCOUNT. (a) The comptroller
339	332		shall suspend the account of a program participant who fails to
340	333		comply with applicable law or a requirement of the program.
341	334		(b) On suspension of an account under Subsection (a), the
342	335		comptroller shall notify the program participant in writing that
343	336		the account has been suspended and that no additional payments may
344	337		be made from the account. The notification must specify the grounds
345	338		for the suspension and state that the participant has 10 business
346	339		days to respond and take any corrective action required by the
347	340		comptroller.
348	341		(c) On the expiration of the 10-day period under Subsection
349	342		(b), the comptroller shall:
350	343		(1) order permanent closure of the suspended account
351	344		and declare the program participant ineligible for the program;
352	345		(2) order temporary reinstatement of the account,
353	346		conditioned on the performance of a specified action by the
354	347		participant; or
355	348		(3) order full reinstatement of the account.
356	349		(d) The comptroller may recover money distributed under the
357	350		program that was used for expenses not allowed under Section 29.360
358	351		from the program participant or the entity that received the money
359	352		if the participant's account is suspended or closed under this
360	353		section.
361	354		Sec. 29.365. TUITION AND FEES; REFUND PROHIBITED. (a) An
362	355		education service provider may not charge a child participating in
363	356		the program an amount greater than the standard amount charged for
364	357		that service by the provider.
365	358		(b) An education service provider or a vendor of educational
366	359		products receiving money distributed under the program may not in
367	360		any manner rebate, refund, or credit to or share with a program
368	361		participant, or any person on behalf of a participant, any program
369	362		money paid or owed by the participant to the provider or vendor.
370	363		Sec. 29.366. REFERRAL TO ATTORNEY GENERAL. (a) If the
371	364		comptroller or a certified educational assistance organization
372	365		obtains evidence of fraudulent use of an account, the comptroller
373	366		or organization may refer the case to the attorney general for
374	367		investigation.
375	368		(b) With the consent of the appropriate local county or
376	369		district attorney, the attorney general has concurrent
377	370		jurisdiction with the consenting local prosecutor to prosecute an
378	371		offense referred to the attorney general under Subsection (a).
379	372		Sec. 29.367. SPECIAL EDUCATION NOTICE. (a) Each certified
380	373		educational assistance organization shall post on the
381	374		organization's Internet website and provide to each parent who
382	375		submits an application for the program on behalf of a child with a
383	376		disability a notice that:
384	377		(1) states that a private school is not subject to laws
385	378		regarding the provision of educational services in the same manner
386	379		as a public school, and a child with a disability attending a
387	380		private school may not receive the services a child with a
388	381		disability attending a public school is entitled to receive under
389	382		federal and state law; and
390	383		(2) provides information regarding rights to which a
391	384		child with a disability is entitled under federal and state law if
392	385		the child attends a public school, including:
393	386		(A) rights provided under the Individuals with
394	387		Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
395	388		including:
396	389		(i) an individualized education program;
397	390		(ii) educational services provided in the
398	391		least restrictive environment;
399	392		(iii) instruction from certified teachers;
400	393		(iv) due process hearings to ensure proper
401	394		and full implementation of an individualized education program;
402	395		(v) transition and planning services; and
403	396		(vi) supplementary aids and services;
404	397		(B) rights provided under Subchapter A; and
405	398		(C) other rights provided under federal or state
406	399		law.
407	400		(b) A private school in which a child with a disability who
408	401		is participating in the program enrolls shall provide to the
409	402		child's parent a copy of the notice required under Subsection (a).
410	403		Sec. 29.368. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
411	404		AUTONOMY. (a) An education service provider or vendor of
412	405		educational products that receives money distributed under the
413	406		program is not an agent of the state or federal government.
414	407		(b) The program does not expand the regulatory authority of
415	408		the state or any school district to impose any additional
416	409		regulation on an education service provider or vendor of
417	410		educational products except those reasonably necessary to enforce
418	411		the program as provided by this subchapter.
419	412		(c) An education service provider may not be required to
420	413		modify the provider's creed, practices, admissions policies,
421	414		curriculum, performance standards, or assessments, as applicable,
422	415		to receive money distributed under the program.
423	416		(d) In any proceeding challenging a rule adopted by a state
424	417		agency or officer under this subchapter, the agency or officer has
425	418		the burden of proof to establish that the rule:
426	419		(1) is necessary to implement or enforce the program
427	420		as provided by this subchapter; and
428	421		(2) does not impose an undue burden on a program
429	422		participant or an education service provider or vendor of
430	423		educational products that receives or seeks to receive money
431	424		distributed under the program.
432	425		Sec. 29.369. STUDENT RECORDS AND INFORMATION. (a) On
433	426		request by the parent of a child participating or seeking to
434	427		participate in the program, the school district or open-enrollment
435	428		charter school that the child would otherwise attend shall provide
436	429		a copy of the child's school records possessed by the district or
437	430		school, if any, to the child's parent or, if applicable, the private
438	431		school the child attends.
439	432		(b) The agency shall provide to each certified educational
440	433		assistance organization any information available to the agency
441	434		requested by the organization regarding a child who participates or
442	435		seeks to participate in the program. The organization may not
443	436		retain information provided under this subsection beyond the period
444	437		necessary to determine a child's eligibility to participate in the
445	438		program.
446	439		Sec. 29.370. GIFTS, GRANTS, AND DONATIONS. The comptroller
447	440		may solicit and accept gifts, grants, and donations from any public
448	441		or private source for any expenses related to the administration of
449	442		the program, including the initial implementation of the program.
450	443		Sec. 29.371. RULES; PROCEDURES. (a) The comptroller shall
451	444		adopt rules and procedures only as necessary to implement,
452	445		administer, and enforce this subchapter.
453	446		(b) A rule adopted under Subsection (a) is binding on an
454	447		organization that applies for certification as an educational
455	448		assistance organization and a state or local governmental entity,
456	449		including a political subdivision, as necessary to implement,
457	450		administer, and enforce this subchapter.
458	451		Sec. 29.372. PARENTAL AND STUDENT RIGHT TO INTERVENE IN
459	452		CIVIL ACTION. (a) A program participant may intervene in any civil
460	453		action challenging the constitutionality of the program or the
461	454		insurance premium tax credit under Chapter 230, Insurance Code.
462	455		(b) A court in which a civil action described by Subsection
463	456		(a) is filed may require that all program participants wishing to
464	457		intervene in the action file a joint brief. A program participant
465	458		may not be required to join a brief filed on behalf of the state or a
466	459		state agency.
467	460		SECTION 2. Section 411.109, Government Code, is amended by
468	461		adding Subsection (c) to read as follows:
469	462		(c) The comptroller is entitled to obtain criminal history
470	463		record information maintained by the department about a person who
471	464		is a private tutor, a therapist, or an employee of a teaching
472	465		service who intends to provide educational services to a child
473	466		participating in the program established under Subchapter J,
474	467		Chapter 29, Education Code, and is seeking approval to receive
475	468		money distributed under that program.
476	469		SECTION 3. Subtitle B, Title 3, Insurance Code, is amended
477	470		by adding Chapter 230 to read as follows:
478	471		CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
479	472		FAMILY EDUCATIONAL RELIEF PROGRAM
480	473		SUBCHAPTER A. GENERAL PROVISIONS
481	474		Sec. 230.001. DEFINITIONS. In this chapter:
482	475		(1) "Fund" means the Family Educational Relief Program
483	476		fund under Section 29.354, Education Code.
484	477		(2) "State premium tax liability" means any liability
485	478		incurred by an entity under Chapters 221 through 226.
486	479		SUBCHAPTER B. CREDIT
487	480		Sec. 230.051. CREDIT. An entity may apply for a credit
488	481		against the entity's state premium tax liability in the amount and
489	482		under the conditions provided by this chapter. The comptroller
490	483		shall award credits as provided by Section 230.053.
491	484		Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
492	485		Subject to Subsections (b) and (c), the amount of an entity's credit
493	486		is equal to the lesser of the amount contributed to the fund during
494	487		the period covered by the tax report or 50 percent of the entity's
495	488		state premium tax liability for the report.
496	489		(b) For the 2022 state fiscal year, the total amount of
497	490		credits that may be awarded under this chapter may not exceed $200
498	491		million. For each subsequent state fiscal year, the total amount of
499	492		credits that may be awarded is:
500	493		(1) the same total amount of credits available under
501	494		this subsection for the previous state fiscal year, if Subdivision
502	495		(2) does not apply; or
503	496		(2) 125 percent of the total amount of credits
504	497		available under this subsection for the previous state fiscal year,
505	498		if the total amount of credits awarded in the previous state fiscal
506	499		year was at least 90 percent of the total amount of credits
507	500		available under this subsection for that fiscal year.
508	501		(c) The comptroller by rule shall prescribe procedures by
509	502		which the comptroller may allocate credits under this chapter. The
510	503		procedures must provide that credits are allocated first to
511	504		entities that received preliminary approval for a credit under
512	505		Section 230.0525 and that apply under Section 230.053. The
513	506		procedures must provide that any remaining credits are allocated to
514	507		entities that apply under Section 230.053 on a first-come,
515	508		first-served basis, based on the date the contribution was
516	509		initially made.
517	510		(d) The comptroller may require an entity to notify the
518	511		comptroller of the amount the entity intends or expects to apply for
519	512		under this chapter before the beginning of a state fiscal year or at
520	513		any other time required by the comptroller.
521	514		Sec. 230.0525. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
522	515		making a contribution to the fund, an entity may apply to the
523	516		comptroller for preliminary approval of a credit under this chapter
524	517		for the contribution.
525	518		(b) An entity must apply for preliminary approval on a form
526	519		provided by the comptroller that includes the amount the entity
527	520		expects to contribute and any other information the comptroller
528	521		requires.
529	522		(c) The comptroller shall grant preliminary approval for
530	523		credits under this chapter on a first-come, first-served basis,
531	524		based on the date the comptroller receives the application for
532	525		preliminary approval.
533	526		(d) The comptroller shall grant preliminary approval for a
534	527		credit under this chapter for a state fiscal year if the sum of the
535	528		amount of the credit and the total amount of all other credits
536	529		preliminarily approved under this chapter does not exceed the
537	530		amount provided by Section 230.052(b).
538	531		(e) Final award of a credit preliminarily approved under
539	532		this section remains subject to the limitations under Section
540	533		230.052(a) and all other requirements of this chapter.
541	534		Sec. 230.053. APPLICATION FOR CREDIT. (a) An entity must
542	535		apply for a credit under this chapter on or with the tax report
543	536		covering the period in which the contribution was made.
544	537		(b) The comptroller shall adopt a form for the application
545	538		for the credit. An entity must use this form in applying for the
546	539		credit.
547	540		(c) Subject to Section 230.052(c), the comptroller may
548	541		award a credit to an entity that applies for the credit under
549	542		Subsection (a) if the entity is eligible for the credit and the
550	543		credit is available under Section 230.052(b). The comptroller has
551	544		broad discretion in determining whether to grant or deny an
552	545		application for a credit.
553	546		(d) The comptroller shall notify an entity in writing of the
554	547		comptroller's decision to grant or deny the application under
555	548		Subsection (a). If the comptroller denies an entity's application,
556	549		the comptroller shall include in the notice of denial the reasons
557	550		for the comptroller's decision.
558	551		(e) If the comptroller denies an entity's application under
559	552		Subsection (a), the entity may request in writing a reconsideration
560	553		of the application not later than the 10th day after the date the
561	554		notice under Subsection (d) is received. If the entity does not
562	555		request a reconsideration of the application on or before that
563	556		date, the comptroller's decision is final.
564	557		(f) An entity that requests a reconsideration under
565	558		Subsection (e) may submit to the comptroller, not later than the
566	559		30th day after the date the request for reconsideration is
567	560		submitted, additional information and documents to support the
568	561		entity's request for reconsideration.
569	562		(g) The comptroller's reconsideration of an application
570	563		under this section is not a contested case under Chapter 2001,
571	564		Government Code. The comptroller's decision on a request for
572	565		reconsideration of an application is final and is not appealable.
573	566		(h) This section does not create a cause of action to
574	567		contest a decision of the comptroller to deny an application for a
575	568		credit under this chapter.
576	569		Sec. 230.054. RULES; PROCEDURES. The comptroller shall
577	570		adopt rules and procedures to implement, administer, and enforce
578	571		this chapter.
579	572		Sec. 230.055. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
580	573		may not convey, assign, or transfer the credit allowed under this
581	574		chapter to another entity unless all of the assets of the entity are
582	575		conveyed, assigned, or transferred in the same transaction.
583	576		Sec. 230.056. NOTICE OF AVAILABILITY OF CREDIT. The
584	577		comptroller shall provide notice of the availability of the credit
585	578		under this chapter on the comptroller's Internet website, in the
586	579		instructions for insurance premium tax report forms, and in any
587	580		notice sent to an entity concerning the requirement to file an
588	581		insurance premium tax report.
589	582		SECTION 4. Subchapter J, Chapter 29, Education Code, as
590	583		added by this Act, applies beginning with the 2022-2023 school
591	584		year.
592	585		SECTION 5. An entity may apply for a credit under Chapter
593	586		230, Insurance Code, as added by this Act, only for a contribution
594	587		made on or after the effective date of this Act.
595	588		SECTION 6. Not later than February 15, 2022, the
596	589		comptroller of public accounts shall adopt rules as provided by
597	590		Section 230.054, Insurance Code, as added by this Act.
598	591		SECTION 7. Chapter 230, Insurance Code, as added by this
599	592		Act, applies only to a tax report originally due on or after the
600	593		effective date of this Act.
601	594		SECTION 8. (a) The constitutionality and other validity
602	595		under the state or federal constitution of all or any part of
603	596		Subchapter J, Chapter 29, Education Code, as added by this Act, or
604	597		Chapter 230, Insurance Code, as added by this Act, may be determined
605	598		in an action for declaratory judgment in a district court in Travis
606	599		County under Chapter 37, Civil Practice and Remedies Code, except
607	600		that this section does not authorize an award of attorney's fees
608	601		against this state and Section 37.009, Civil Practice and Remedies
609	602		Code, does not apply to an action filed under this section. This
610	603		section does not authorize a taxpayer suit to contest the denial of
611	604		a tax credit by the comptroller of public accounts.
612	605		(b) An appeal of a declaratory judgment or order, however
613	606		characterized, of a district court, including an appeal of the
614	607		judgment of an appellate court, holding or otherwise determining
615	608		that all or any part of Subchapter J, Chapter 29, Education Code, as
616	609		added by this Act, or Chapter 230, Insurance Code, as added by this
617	610		Act, is constitutional or unconstitutional, or otherwise valid or
618	611		invalid, under the state or federal constitution is an accelerated
619	612		appeal.
620	613		(c) If the judgment or order is interlocutory, an
621	614		interlocutory appeal may be taken from the judgment or order and is
622	615		an accelerated appeal.
623	616		(d) A district court in Travis County may grant or deny a
624	617		temporary or otherwise interlocutory injunction or a permanent
625	618		injunction on the grounds of the constitutionality or
626	619		unconstitutionality, or other validity or invalidity, under the
627	620		state or federal constitution of all or any part of Subchapter J,
628	621		Chapter 29, Education Code, as added by this Act, or Chapter 230,
629	622		Insurance Code, as added by this Act.
630	623		(e) There is a direct appeal to the Texas Supreme Court from
631	624		an order, however characterized, of a trial court granting or
632	625		denying a temporary or otherwise interlocutory injunction or a
633	626		permanent injunction on the grounds of the constitutionality or
634	627		unconstitutionality, or other validity or invalidity, under the
635	628		state or federal constitution of all or any part of Subchapter J,
636	629		Chapter 29, Education Code, as added by this Act, or Chapter 230,
637	630		Insurance Code, as added by this Act.
638	631		(f) The direct appeal is an accelerated appeal.
639	632		(g) This section exercises the authority granted by Section
640	633		3-b, Article V, Texas Constitution.
641	634		(h) The filing of a direct appeal under this section will
642	635		automatically stay any temporary or otherwise interlocutory
643	636		injunction or permanent injunction granted in accordance with this
644	637		section pending final determination by the Texas Supreme Court,
645	638		unless the supreme court makes specific findings that the applicant
646	639		seeking such injunctive relief has pleaded and proved that:
647	640		(1) the applicant has a probable right to the relief it
648	641		seeks on final hearing; and
649	642		(2) the applicant will suffer a probable injury that
650	643		is imminent and irreparable, and that the applicant has no other
651	644		adequate legal remedy.
652	645		(i) An appeal under this section, including an
653	646		interlocutory, accelerated, or direct appeal, is governed, as
654	647		applicable, by the Texas Rules of Appellate Procedure, including
655	648		Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
656	649		38.6(a) and (b), 40.1(b), and 49.4.
657		-	SECTION 9. The comptroller of public accounts is required
658		-	to implement a provision of this Act only if the legislature
659		-	appropriates money specifically for that purpose. If the
660		-	legislature does not appropriate money specifically for that
661		-	purpose, the comptroller may, but is not required to, implement
662		-	this Act using other appropriations available for that purpose.
663		-	SECTION 10. This Act takes effect January 1, 2022.
664		-	* * * * *
	650	+	SECTION 9. This Act takes effect January 1, 2022.