Texas 2021 - 87th 3rd C.S.

Texas House Bill HB80 Compare Versions

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

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