Texas 2023 - 88th Regular

Texas House Bill HB4339 Compare Versions

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1	1	88R10818 MM-F
2	2	By: Frank H.B. No. 4339
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of the Education Savings Account
8	8	Program to allow certain disadvantaged children and their siblings
9	9	to use public money to pursue educational alternatives to public
10	10	schools and an insurance premium tax credit for contributions made
11	11	for purposes of that program.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. The purpose of this Act is to provide additional
14	14	educational options to assist families in this state in exercising
15	15	the right to direct the educational needs of their children.
16	16	SECTION 2. Chapter 29, Education Code, is amended by adding
17	17	Subchapter J to read as follows:
18	18	SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
19	19	Sec. 29.351. DEFINITIONS. In this subchapter:
20	20	(1) "Account" means an education savings account
21	21	established under the program.
22	22	(2) "Certified educational assistance organization"
23	23	means an educational assistance organization certified under
24	24	Section 29.354 to assist in administering the program.
25	25	(3) "Child with a disability" means a child who is
26	26	eligible to participate in a school district's special education
27	27	program under Section 29.003.
28	28	(4) "Cocurricular activity" means an activity that
29	29	directly adds value to classroom instruction and curriculum,
30	30	including an academic field trip, performance, contest,
31	31	demonstration, or display. The term does not include an athletic or
32	32	other nonacademic activity.
33	33	(5) "Higher education provider" means an institution
34	34	of higher education or a private or independent institution of
35	35	higher education, as those terms are defined by Section 61.003.
36	36	(6) "Parent" means a resident of this state who is a
37	37	natural or adoptive parent, managing or possessory conservator,
38	38	legal guardian, custodian, or other person with legal authority to
39	39	act on behalf of a child.
40	40	(7) "Program" means the Education Savings Account
41	41	Program established under this subchapter.
42	42	(8) "Program participant" means a child and a parent
43	43	of a child enrolled in the program.
44	44	Sec. 29.352. ESTABLISHMENT OF PROGRAM. The comptroller
45	45	shall establish the Education Savings Account Program to provide
46	46	funding for approved education-related expenses of program
47	47	participants.
48	48	Sec. 29.353. EDUCATION SAVINGS ACCOUNT PROGRAM FUND. (a)
49	49	The Education Savings Account Program fund is an account in the
50	50	general revenue fund to be administered by the comptroller.
51	51	(b) The fund is composed of:
52	52	(1) general revenue transferred to the fund;
53	53	(2) money appropriated to the fund;
54	54	(3) gifts, grants, and donations received under
55	55	Section 29.369;
56	56	(4) contributions to the fund for which an entity
57	57	receives a credit against the entity's state premium tax liability
58	58	under Chapter 230, Insurance Code; and
59	59	(5) any other money available for purposes of the
60	60	program.
61	61	(c) Money in the fund may be appropriated only to the
62	62	comptroller for purposes of making payments to program participants
63	63	and administering the program under this subchapter.
64	64	Sec. 29.354. SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
65	65	ORGANIZATION. (a) An organization may apply to the comptroller for
66	66	certification as a certified educational assistance organization
67	67	during an application period established by the comptroller.
68	68	(b) To be eligible for certification, the organization
69	69	must:
70	70	(1) have the ability to perform the duties and
71	71	functions required of a certified educational assistance
72	72	organization under this subchapter;
73	73	(2) be in good standing with the state;
74	74	(3) be exempt from taxation under Section 501(a),
75	75	Internal Revenue Code of 1986, as an organization described by
76	76	Section 501(c)(3) of that code; and
77	77	(4) be able to assist the comptroller in administering
78	78	the program, including the ability to:
79	79	(A) accept, process, and track applications for
80	80	the program;
81	81	(B) assist prospective applicants, applicants,
82	82	and program participants with finding preapproved education
83	83	service providers and vendors of educational products; and
84	84	(C) verify that program funding is used only for
85	85	approved education-related expenses.
86	86	(c) The comptroller shall certify one educational
87	87	assistance organization to assist in administering the program,
88	88	including by:
89	89	(1) administering the application process under
90	90	Section 29.356;
91	91	(2) assisting prospective applicants, applicants, and
92	92	program participants with understanding eligible expenses and
93	93	finding preapproved education service providers and vendors of
94	94	educational products;
95	95	(3) ensuring money in a program participant's account
96	96	is used only for approved expenses under Section 29.359; and
97	97	(4) publishing data and an annual report regarding:
98	98	(A) the number of program applications received,
99	99	accepted, and waitlisted;
100	100	(B) program participant satisfaction; and
101	101	(C) assessment results reported under Section
102	102	29.357(2).
103	103	Sec. 29.355. ELIGIBLE CHILD. (a) A child is eligible to
104	104	participate in the program if the child is eligible to attend a
105	105	public school under Section 25.001 and:
106	106	(1) either:
107	107	(A) was enrolled in a public school during the
108	108	entire preceding school year; or
109	109	(B) is enrolling in a school in this state for the
110	110	first time; and
111	111	(2) meets one of the following criteria:
112	112	(A) is a member of a household with a total annual
113	113	income that is at or below 200 percent of the income guidelines
114	114	necessary to qualify for the national free or reduced-price lunch
115	115	program established under 42 U.S.C. Section 1751 et seq.;
116	116	(B) is the sibling of a child who is eligible to
117	117	participate in the program;
118	118	(C) was eligible to participate in the program
119	119	during a previous school year;
120	120	(D) is a child with a disability; or
121	121	(E) is covered by Section 504, Rehabilitation Act
122	122	of 1973 (29 U.S.C. Section 794).
123	123	(b) A child who establishes eligibility under this section
124	124	may participate in the program until the earliest of the following
125	125	dates:
126	126	(1) the date on which the child graduates from high
127	127	school;
128	128	(2) the date on which the child is no longer eligible
129	129	to attend a public school under Section 25.001;
130	130	(3) the date on which the child enrolls in a public
131	131	school, including an open-enrollment charter school; or
132	132	(4) the date on which the child is declared ineligible
133	133	for the program by the comptroller under this subchapter.
134	134	Sec. 29.356. APPLICATION TO PROGRAM. (a) A parent of an
135	135	eligible child may apply to the certified educational assistance
136	136	organization to enroll the child in the program for the following
137	137	school year. The certified educational assistance organization
138	138	shall:
139	139	(1) establish a reasonable annual deadline by which an
140	140	applicant must complete and submit an application form to
141	141	participate in the program; and
142	142	(2) on receipt of more acceptable applications for
143	143	admission under this section than available positions in the
144	144	program due to insufficient funding, prioritize applicants who are
145	145	members of a household with a total annual income that is at or
146	146	below the income guidelines necessary to qualify for the national
147	147	free or reduced-price lunch program established under 42 U.S.C.
148	148	Section 1751 et seq.
149	149	(b) The certified educational assistance organization shall
150	150	create an application form for the program and make the application
151	151	form readily available to interested parents through various
152	152	sources, including the organization's Internet website. The
153	153	application form must state the application deadline. The
154	154	organization shall ensure that the application form is capable of
155	155	being submitted to the organization electronically.
156	156	(c) The certified educational assistance organization shall
157	157	post on the organization's Internet website an applicant and
158	158	participant handbook with a description of the program, including:
159	159	(1) expenses allowed under the program under Section
160	160	29.359;
161	161	(2) a list of preapproved education service providers
162	162	and vendors of educational products under Section 29.358;
163	163	(3) the organization's expense reporting
164	164	requirements; and
165	165	(4) a description of the responsibilities of program
166	166	participants.
167	167	(d) The certified educational assistance organization shall
168	168	annually provide to each program participant the information
169	169	described by Subsection (c). The organization may provide the
170	170	information electronically.
171	171	(e) A parent of a child described by Section 29.355(a)(2)(B)
172	172	may submit an application for the eligible child and the child's
173	173	sibling concurrently. The certified educational assistance
174	174	organization shall consider concurrently the applications of
175	175	siblings who apply by the date established by the organization
176	176	under Subsection (a).
177	177	(f) The certified educational assistance organization may
178	178	not require a program participant in good standing to annually
179	179	resubmit an application for continued participation in the program.
180	180	Sec. 29.357. PARTICIPATION IN PROGRAM. To receive funding
181	181	under the program, a parent of an eligible child must agree to:
182	182	(1) spend money received through the program only for
183	183	expenses allowed under Section 29.359;
184	184	(2) share or authorize the administrator of an
185	185	assessment instrument to share with the certified educational
186	186	assistance organization the results of any assessment instrument
187	187	required to be administered to the child under Section
188	188	29.358(b)(1)(B) or other law;
189	189	(3) refrain from selling an item purchased with
190	190	program money in accordance with Section 29.359(a)(2) until the end
191	191	of the 12th month after the date the item is purchased; and
192	192	(4) notify the certified educational assistance
193	193	organization not later than 30 days after the date on which the
194	194	child:
195	195	(A) enrolls in a public school, including an
196	196	open-enrollment charter school;
197	197	(B) graduates from high school; or
198	198	(C) is no longer eligible to enroll in a public
199	199	school under Section 25.001.
200	200	Sec. 29.358. APPROVED PROVIDERS. (a) The comptroller
201	201	shall by rule establish a process for the preapproval of education
202	202	service providers and vendors of educational products for
203	203	participation in the program. The comptroller shall set a
204	204	reasonable quarterly deadline by which a provider or vendor must
205	205	submit an application.
206	206	(b) The comptroller shall approve an education service
207	207	provider or vendor of educational products for participation in the
208	208	program if the provider or vendor:
209	209	(1) for a private school, demonstrates the school's
210	210	qualification to serve program participants, including:
211	211	(A) accreditation by an organization recognized
212	212	by the Texas Private School Accreditation Commission; and
213	213	(B) annual administration of a nationally
214	214	norm-referenced assessment instrument or the appropriate
215	215	assessment instrument required under Subchapter B, Chapter 39;
216	216	(2) for a private tutor, therapist, or teaching
217	217	service:
218	218	(A) demonstrates the tutor's, therapist's, or
219	219	service's qualification to serve program participants, including
220	220	that the tutor or therapist or each employee of the service who
221	221	intends to provide services to a program participant:
222	222	(i) is certified under Subchapter B,
223	223	Chapter 21;
224	224	(ii) holds a relevant license or
225	225	accreditation issued by a state, regional, or national licensing or
226	226	accreditation organization; or
227	227	(iii) is employed in a teaching or tutoring
228	228	capacity at a higher education provider;
229	229	(B) the tutor or therapist or each employee of
230	230	the teaching service who intends to provide educational services to
231	231	a program participant either:
232	232	(i) completes a national criminal history
233	233	record information review; or
234	234	(ii) provides to the comptroller
235	235	documentation indicating that the tutor, therapist, or employee, as
236	236	applicable, has completed a national criminal history record
237	237	information review within a period established by comptroller rule;
238	238	and
239	239	(C) the tutor or therapist or each employee of
240	240	the teaching service who intends to provide educational services to
241	241	a program participant is not included in the registry under Section
242	242	22.092; or
243	243	(3) for a higher education provider, demonstrates
244	244	postsecondary accreditation.
245	245	(c) The comptroller shall review the national criminal
246	246	history record information or documentation for each private tutor,
247	247	therapist, or teaching service employee who submits information or
248	248	documentation under this section and verify that the individual is
249	249	not included in the registry under Section 22.092. The tutor,
250	250	therapist, or service must provide the comptroller with any
251	251	information requested by the comptroller to enable the comptroller
252	252	to complete the review.
253	253	(d) An education service provider or vendor of educational
254	254	products shall provide information requested by the comptroller to
255	255	verify the provider's or vendor's eligibility for preapproval under
256	256	Subsection (b). The comptroller may not approve a provider or
257	257	vendor if the comptroller cannot verify the provider's or vendor's
258	258	eligibility for preapproval.
259	259	Sec. 29.359. APPROVED EDUCATION-RELATED EXPENSES. (a)
260	260	Subject to Subsection (b), money received under the program may be
261	261	used only for the following expenses incurred by a program
262	262	participant at a preapproved education service provider or vendor
263	263	of educational products:
264	264	(1) tuition and fees;
265	265	(2) the purchase of textbooks or other instructional
266	266	materials or uniforms required by a school, higher education
267	267	provider, course, or online educational course or program in which
268	268	the child is enrolled;
269	269	(3) costs related to academic assessments;
270	270	(4) costs related to cocurricular activities;
271	271	(5) fees for transportation provided by a
272	272	fee-for-service transportation provider for the child to travel to
273	273	and from a preapproved education service provider or vendor of
274	274	educational products; and
275	275	(6) fees for educational therapies or services
276	276	provided by a practitioner or provider, only for fees that are not
277	277	covered by any federal, state, or local government benefits such as
278	278	Medicaid or the Children's Health Insurance Program (CHIP) or by
279	279	any private insurance that the child is enrolled in at the time of
280	280	receiving the therapies or services.
281	281	(b) Money received under the program may not be used to pay
282	282	any person who is a member of the program participant's household.
283	283	(c) A finding that a program participant used money
284	284	distributed under the program to pay for an expense not allowed
285	285	under Subsection (a) does not affect the validity of any payment
286	286	made by the participant for an expense that is allowed under that
287	287	subsection.
288	288	(d) Notwithstanding Subsection (a), the comptroller shall
289	289	by rule establish a process by which:
290	290	(1) program participants may be efficiently
291	291	reimbursed for expenses described by Subsection (a)(2), (3), (4),
292	292	(5), or (6) incurred from an education service provider or vendor of
293	293	educational products that is not preapproved under Section
294	294	29.358(a); and
295	295	(2) frequently used providers and vendors described by
296	296	Subdivision (1) that are in good standing for three continuous
297	297	school years may receive payment directly from an account.
298	298	Sec. 29.360. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
299	299	an eligible child shall receive each year that the child
300	300	participates in the program a payment from the state from funds
301	301	available under Section 29.353 to the child's account in an amount
302	302	equal to 90 percent of the state average maintenance and operations
303	303	revenue per student in average daily attendance for the preceding
304	304	state fiscal year.
305	305	(b) Any money remaining in a child's account at the end of a
306	306	fiscal year is carried forward to the next fiscal year unless
307	307	another provision of this subchapter mandates the closure of the
308	308	account.
309	309	(c) The parent of a child participating in the program may
310	310	make payments for the expenses of educational programs, services,
311	311	and products not covered by money in the child's account.
312	312	(d) A payment under Subsection (a) may not be financed using
313	313	federal money.
314	314	(e) Payments received under this subchapter do not
315	315	constitute taxable income to the eligible student's parent, unless
316	316	otherwise provided by federal law.
317	317	(f) Not later than November 1 of each even-numbered year,
318	318	the comptroller shall submit to the legislature:
319	319	(1) a summary of participant enrollment in the
320	320	program;
321	321	(2) the amount of cost savings accruing to the state as
322	322	a result of the program; and
323	323	(3) an estimate of the total amount of funding
324	324	required for the program for the following state fiscal biennium.
325	325	Sec. 29.361. ADMINISTRATION OF ACCOUNTS. (a) The
326	326	comptroller shall make quarterly payments to each program
327	327	participant's account in equal amounts on or before the first day of
328	328	July, October, January, and April.
329	329	(b) The comptroller may deduct an amount from each quarterly
330	330	payment to a program participant's account to cover the
331	331	comptroller's cost of administering the program. The amount
332	332	deducted may not exceed three percent of the payment.
333	333	(c) Each quarter, the comptroller shall disburse to the
334	334	certified educational assistance organization an amount from the
335	335	total amount of money appropriated for purposes of this subchapter
336	336	to cover the organization's cost of administering the program. The
337	337	total amount disbursed to the certified educational assistance
338	338	organization under this subsection for a fiscal year may not exceed
339	339	five percent of the amount appropriated for purposes of this
340	340	subchapter for that fiscal year.
341	341	(d) Before payments are made under Subsection (a) in October
342	342	and April, the certified educational assistance organization
343	343	shall:
344	344	(1) verify with the agency that each program
345	345	participant is not enrolled in a public school, including an
346	346	open-enrollment charter school; and
347	347	(2) notify the comptroller if the organization
348	348	determines that a program participant is enrolled in a public
349	349	school, including an open-enrollment charter school.
350	350	(e) On the date on which a child who participated in the
351	351	program is no longer eligible to participate in the program under
352	352	Section 29.355(b), the child's account is closed and any remaining
353	353	money is returned to the state for deposit in the Education Savings
354	354	Account Program fund.
355	355	Sec. 29.362. RANDOM AUDITING. (a) The comptroller may
356	356	contract with a private entity to randomly audit accounts and the
357	357	certified educational assistance organization as necessary to
358	358	ensure compliance with applicable law and program requirements.
359	359	(b) In conducting an audit, the comptroller or private
360	360	entity may require that a program participant or the certified
361	361	educational assistance organization provide additional information
362	362	and documentation regarding any payment made under the program.
363	363	(c) The private entity shall report to the comptroller any
364	364	violation of this subchapter or other relevant law found by the
365	365	entity during an audit conducted under this section. The
366	366	comptroller shall report the violation to:
367	367	(1) the certified educational assistance
368	368	organization;
369	369	(2) the education service provider or vendor of
370	370	educational products, as applicable; and
371	371	(3) the parent of each child participating in the
372	372	program who is affected by the violation.
373	373	Sec. 29.363. SUSPENSION OF ACCOUNT. (a) The comptroller
374	374	shall suspend the account of a program participant who fails to
375	375	remain in good standing by complying with applicable law or a
376	376	requirement of the program.
377	377	(b) On suspension of an account under Subsection (a), the
378	378	comptroller shall notify the program participant in writing that
379	379	the account has been suspended and that no additional payments may
380	380	be made from the account. The notification must specify the grounds
381	381	for the suspension and state that the participant has 30 business
382	382	days to respond and take any corrective action required by the
383	383	comptroller.
384	384	(c) On the expiration of the 30-day period under Subsection
385	385	(b), the comptroller shall:
386	386	(1) order closure of the suspended account;
387	387	(2) order temporary reinstatement of the account,
388	388	conditioned on the performance of a specified action by the program
389	389	participant; or
390	390	(3) order full reinstatement of the account.
391	391	(d) The comptroller may recover money distributed under the
392	392	program that was used for expenses not allowed under Section 29.359
393	393	from the program participant or the entity that received the money
394	394	if the program participant's account is suspended or closed under
395	395	this section.
396	396	Sec. 29.364. TUITION AND FEES; REFUND PROHIBITED. (a) An
397	397	education service provider or vendor of educational products may
398	398	not charge a child participating in the program an amount greater
399	399	than the amount charged for that service by the provider or vendor.
400	400	(b) An education service provider or vendor of educational
401	401	products receiving money distributed under the program may not in
402	402	any manner rebate, refund, or credit to or share with a program
403	403	participant, or any person on behalf of a participant, any program
404	404	money paid or owed by the participant to the provider or vendor.
405	405	Sec. 29.365. REFERRAL TO DISTRICT ATTORNEY. If the
406	406	comptroller or the certified educational assistance organization
407	407	obtains evidence of fraudulent use of an account, the comptroller
408	408	or organization shall notify the appropriate local county or
409	409	district attorney with jurisdiction over the residence of the
410	410	program participant.
411	411	Sec. 29.366. SPECIAL EDUCATION NOTICE. (a) The certified
412	412	educational assistance organization shall post on the
413	413	organization's Internet website and provide to each parent who
414	414	submits an application for the program a notice that:
415	415	(1) states that a private school is not subject to
416	416	federal and state laws regarding the provision of educational
417	417	services to a child with a disability in the same manner as a public
418	418	school; and
419	419	(2) provides information regarding rights to which a
420	420	child with a disability is entitled under federal and state law if
421	421	the child attends a public school, including:
422	422	(A) rights provided under the Individuals with
423	423	Disabilities Education Act (20 U.S.C. Section 1400 et seq.); and
424	424	(B) rights provided under Subchapter A.
425	425	(b) A private school in which a child with a disability who
426	426	is a program participant enrolls shall provide to the child's
427	427	parent a copy of the notice required under Subsection (a).
428	428	Sec. 29.367. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
429	429	AUTONOMY. (a) An education service provider or vendor of
430	430	educational products that receives money distributed under the
431	431	program is not a recipient of federal financial assistance on the
432	432	basis of receiving that money.
433	433	(b) A rule adopted or action taken related to the program by
434	434	an individual, governmental entity, court of law, or program
435	435	administrator may not:
436	436	(1) limit the independence or autonomy of an education
437	437	service provider, vendor of educational products, or program
438	438	participant;
439	439	(2) consider the actions of an education service
440	440	provider, vendor of educational products, or program participant to
441	441	be the actions of an agent of state government;
442	442	(3) limit:
443	443	(A) an education service provider's ability to
444	444	determine the methods used to educate the provider's students or to
445	445	exercise the provider's religious or institutional values; or
446	446	(B) a program participant's ability to determine
447	447	the participant's educational content or to exercise the
448	448	participant's religious values;
449	449	(4) obligate an education service provider or program
450	450	participant to act contrary to the provider's or participant's
451	451	religious or institutional values, as applicable;
452	452	(5) impose any regulation on an education service
453	453	provider, vendor of educational products, or program participant
454	454	beyond those regulations necessary to enforce the requirements of
455	455	the program; or
456	456	(6) require as a condition of receiving money
457	457	distributed under the program:
458	458	(A) an education service provider to modify the
459	459	provider's creed, practices, admissions policies, curricula,
460	460	performance standards, employment policies, or assessments; or
461	461	(B) a program participant to modify the
462	462	participant's creed, practices, curricula, performance standards,
463	463	or assessments.
464	464	(c) In a proceeding challenging a rule adopted by a state
465	465	agency or officer under this subchapter, the agency or officer has
466	466	the burden of proof to establish by clear and convincing evidence
467	467	that the rule:
468	468	(1) is necessary to implement or enforce the program
469	469	as provided by this subchapter;
470	470	(2) does not violate this section;
471	471	(3) does not impose an undue burden on a program
472	472	participant or an education service provider or vendor of
473	473	educational products that participates or applies to participate in
474	474	the program; and
475	475	(4) is the least restrictive means of accomplishing
476	476	the purpose of the program while recognizing the independence of an
477	477	education service provider to meet the educational needs of
478	478	students in accordance with the provider's religious or
479	479	institutional values.
480	480	Sec. 29.368. STUDENT RECORDS AND INFORMATION. (a) On
481	481	request by the parent of a child participating or seeking to
482	482	participate in the program, the school district or open-enrollment
483	483	charter school that the child would otherwise attend shall provide
484	484	a copy of the child's school records possessed by the district or
485	485	school, if any, to the child's parent or, if applicable, the private
486	486	school the child attends.
487	487	(b) As necessary to verify a child's eligibility for the
488	488	program, the agency shall provide to the certified educational
489	489	assistance organization any information available to the agency
490	490	requested by the organization regarding a child who participates or
491	491	seeks to participate in the program. The organization may not
492	492	retain information provided under this subsection beyond the period
493	493	necessary to determine a child's eligibility to participate in the
494	494	program.
495	495	Sec. 29.369. GIFTS, GRANTS, AND DONATIONS. The comptroller
496	496	and certified educational assistance organization may solicit and
497	497	accept gifts, grants, and donations from any public or private
498	498	source for any expenses related to the administration of the
499	499	program, including establishing the program.
500	500	Sec. 29.370. RULES; PROCEDURES. (a) The comptroller shall
501	501	adopt rules and procedures as necessary to implement, administer,
502	502	and enforce this subchapter.
503	503	(b) A rule adopted under Subsection (a) is binding on an
504	504	organization that applies for certification as an educational
505	505	assistance organization and a state or local governmental entity,
506	506	including a political subdivision, as necessary to implement,
507	507	administer, and enforce this subchapter.
508	508	Sec. 29.371. APPEAL; JUDICIAL REVIEW. (a) A program
509	509	participant may appeal to the comptroller an administrative
510	510	decision made by the comptroller or certified educational
511	511	assistance organization under this subchapter, including a
512	512	decision regarding eligibility, allowable expenses, or the
513	513	participant's removal from the program.
514	514	(b) A program participant, education service provider, or
515	515	vendor of educational products who is adversely affected or
516	516	aggrieved by a decision made by the comptroller or certified
517	517	educational assistance organization under this subchapter may file
518	518	a suit challenging the decision in a district court in the county in
519	519	which the program participant resides or the provider or vendor has
520	520	its principal place of business, as applicable.
521	521	Sec. 29.372. RIGHT TO INTERVENE IN CIVIL ACTION. (a) A
522	522	program participant, education service provider, or vendor of
523	523	educational products may intervene in any civil action challenging
524	524	the constitutionality of the program or the insurance premium tax
525	525	credit under Chapter 230, Insurance Code.
526	526	(b) A court in which a civil action described by Subsection
527	527	(a) is filed may require that all program participants, education
528	528	service providers, and vendors of educational products wishing to
529	529	intervene in the action file a joint brief. A program participant,
530	530	education service provider, or vendor of educational products may
531	531	not be required to join a brief filed on behalf of the state or a
532	532	state agency.
533	533	SECTION 3. Section 22.092(d), Education Code, is amended to
534	534	read as follows:
535	535	(d) The agency shall provide equivalent access to the
536	536	registry maintained under this section to:
537	537	(1) private schools;
538	538	(2) public schools; [and]
539	539	(3) nonprofit teacher organizations approved by the
540	540	commissioner for the purpose of participating in the tutoring
541	541	program established under Section 33.913; and
542	542	(4) the comptroller for the purpose of preapproving
543	543	education service providers and vendors of educational products
544	544	under Section 29.358 for participation in the program established
545	545	under Subchapter J, Chapter 29.
546	546	SECTION 4. Section 411.109, Government Code, is amended by
547	547	adding Subsection (c) to read as follows:
548	548	(c) The comptroller is entitled to obtain criminal history
549	549	record information maintained by the department about a person who
550	550	is a private tutor, a therapist, or an employee of a teaching
551	551	service or school who intends to provide educational services to a
552	552	child participating in the program established under Subchapter J,
553	553	Chapter 29, Education Code, and is seeking approval to receive
554	554	money distributed under that program.
555	555	SECTION 5. Subtitle B, Title 3, Insurance Code, is amended
556	556	by adding Chapter 230 to read as follows:
557	557	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
558	558	EDUCATION SAVINGS ACCOUNT PROGRAM
559	559	SUBCHAPTER A. GENERAL PROVISIONS
560	560	Sec. 230.001. DEFINITIONS. In this chapter:
561	561	(1) "Fund" means the Education Savings Account Program
562	562	fund under Section 29.353, Education Code.
563	563	(2) "State premium tax liability" means any liability
564	564	incurred by an entity under Chapters 221 through 226.
565	565	SUBCHAPTER B. CREDIT
566	566	Sec. 230.051. CREDIT. An entity may apply for a credit
567	567	against the entity's state premium tax liability in the amount and
568	568	under the conditions provided by this chapter. The comptroller
569	569	shall award credits as provided by Section 230.054.
570	570	Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
571	571	Subject to Subsections (b) and (c), the amount of an entity's credit
572	572	is equal to the lesser of the amount contributed to the fund during
573	573	the period covered by the tax report or 75 percent of the entity's
574	574	state premium tax liability for the report.
575	575	(b) For the 2024 state fiscal year, the total amount of
576	576	credits that may be awarded under this chapter may not exceed $500
577	577	million. For each subsequent state fiscal year, the total amount of
578	578	credits that may be awarded is:
579	579	(1) the same total amount of credits available under
580	580	this subsection for the previous state fiscal year, if Subdivision
581	581	(2) does not apply; or
582	582	(2) 125 percent of the total amount of credits
583	583	available under this subsection for the previous state fiscal year,
584	584	if the total amount of credits awarded in the previous state fiscal
585	585	year was at least 90 percent of the total amount of credits
586	586	available under this subsection for that fiscal year.
587	587	(c) The comptroller by rule shall prescribe procedures by
588	588	which the comptroller may allocate credits under this chapter. The
589	589	procedures must provide that credits are allocated first to
590	590	entities that received preliminary approval for a credit under
591	591	Section 230.053 and that apply under Section 230.054. The
592	592	procedures must provide that any remaining credits are allocated to
593	593	entities that apply under Section 230.054 on a first-come,
594	594	first-served basis, based on the date the contribution was
595	595	initially made.
596	596	(d) The comptroller may require an entity to notify the
597	597	comptroller of the amount the entity intends or expects to apply for
598	598	under this chapter before the beginning of a state fiscal year or at
599	599	any other time required by the comptroller.
600	600	Sec. 230.053. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
601	601	making a contribution to the fund, an entity may apply to the
602	602	comptroller for preliminary approval of a credit under this chapter
603	603	for the contribution.
604	604	(b) An entity must apply for preliminary approval on a form
605	605	provided by the comptroller that includes the amount the entity
606	606	expects to contribute and any other information the comptroller
607	607	requires.
608	608	(c) The comptroller shall grant preliminary approval for
609	609	credits under this chapter on a first-come, first-served basis,
610	610	based on the date the comptroller receives the application for
611	611	preliminary approval.
612	612	(d) The comptroller shall grant preliminary approval for a
613	613	credit under this chapter for a state fiscal year if the sum of the
614	614	amount of the credit and the total amount of all other credits
615	615	preliminarily approved under this chapter does not exceed the
616	616	amount provided by Section 230.052(b).
617	617	(e) Final award of a credit preliminarily approved under
618	618	this section remains subject to the limitations under Section
619	619	230.052(a) and all other requirements of this chapter.
620	620	Sec. 230.054. APPLICATION FOR CREDIT. (a) An entity must
621	621	apply for a credit under this chapter on or with the tax report
622	622	covering the period in which the contribution was made.
623	623	(b) The comptroller shall adopt a form for the application
624	624	for the credit. An entity must use this form in applying for the
625	625	credit.
626	626	(c) Subject to Section 230.052(c), the comptroller may
627	627	award a credit to an entity that applies for the credit under
628	628	Subsection (a) of this section if the entity is eligible for the
629	629	credit and the credit is available under Section 230.052(b). The
630	630	comptroller has broad discretion in determining whether to grant or
631	631	deny an application for a credit.
632	632	(d) The comptroller shall notify an entity in writing of the
633	633	comptroller's decision to grant or deny the application under
634	634	Subsection (a). If the comptroller denies an entity's application,
635	635	the comptroller shall include in the notice of denial the reasons
636	636	for the comptroller's decision.
637	637	(e) If the comptroller denies an entity's application under
638	638	Subsection (a), the entity may request in writing a reconsideration
639	639	of the application not later than the 10th day after the date the
640	640	notice under Subsection (d) is received. If the entity does not
641	641	request a reconsideration of the application on or before that
642	642	date, the comptroller's decision is final.
643	643	(f) An entity that requests a reconsideration under
644	644	Subsection (e) may submit to the comptroller, not later than the
645	645	30th day after the date the request for reconsideration is
646	646	submitted, additional information and documents to support the
647	647	entity's request for reconsideration.
648	648	(g) The comptroller's reconsideration of an application
649	649	under this section is not a contested case under Chapter 2001,
650	650	Government Code. The comptroller's decision on a request for
651	651	reconsideration of an application is final and is not appealable.
652	652	(h) This section does not create a cause of action to
653	653	contest a decision of the comptroller to deny an application for a
654	654	credit under this chapter.
655	655	Sec. 230.055. RULES; PROCEDURES. The comptroller shall
656	656	adopt rules and procedures to implement, administer, and enforce
657	657	this chapter.
658	658	Sec. 230.056. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
659	659	may not convey, assign, or transfer the credit allowed under this
660	660	chapter to another entity unless substantially all of the assets of
661	661	the entity are conveyed, assigned, or transferred in the same
662	662	transaction.
663	663	Sec. 230.057. NOTICE OF AVAILABILITY OF CREDIT. The
664	664	comptroller shall provide notice of the availability of the credit
665	665	under this chapter on the comptroller's Internet website, in the
666	666	instructions for insurance premium tax report forms, and in any
667	667	notice sent to an entity concerning the requirement to file an
668	668	insurance premium tax report.
669	669	SECTION 6. Subchapter J, Chapter 29, Education Code, as
670	670	added by this Act, applies beginning with the 2024-2025 school
671	671	year.
672	672	SECTION 7. An entity may apply for a credit under Chapter
673	673	230, Insurance Code, as added by this Act, only for a contribution
674	674	made on or after the effective date of this Act.
675	675	SECTION 8. Not later than November 15, 2023, the
676	676	comptroller of public accounts shall adopt rules as provided by
677	677	Section 230.055, Insurance Code, as added by this Act.
678	678	SECTION 9. Chapter 230, Insurance Code, as added by this
679	679	Act, applies only to a tax report originally due on or after the
680	680	effective date of this Act.
681	681	SECTION 10. (a) The constitutionality and other validity
682	682	under the state or federal constitution of all or any part of
683	683	Subchapter J, Chapter 29, Education Code, as added by this Act, or
684	684	Chapter 230, Insurance Code, as added by this Act, may be determined
685	685	in an action for declaratory judgment under Chapter 37, Civil
686	686	Practice and Remedies Code, in a district court in the county in
687	687	which the plaintiff resides or has its principal place of business.
688	688	(b) An order, however characterized, of a trial court
689	689	granting or denying a temporary or otherwise interlocutory
690	690	injunction or a permanent injunction on the grounds of the
691	691	constitutionality or unconstitutionality, or other validity or
692	692	invalidity, under the state or federal constitution of all or any
693	693	part of Subchapter J, Chapter 29, Education Code, as added by this
694	694	Act, or Chapter 230, Insurance Code, as added by this Act, may be
695	695	reviewed only by direct appeal to the Texas Supreme Court filed not
696	696	later than the 15th day after the date on which the order was
697	697	entered. The Texas Supreme Court shall give precedence to appeals
698	698	under this section over other matters.
699	699	(c) The direct appeal is an accelerated appeal.
700	700	(d) This section exercises the authority granted by Section
701	701	3-b, Article V, Texas Constitution.
702	702	(e) The filing of a direct appeal under this section will
703	703	automatically stay any temporary or otherwise interlocutory
704	704	injunction or permanent injunction granted in accordance with this
705	705	section pending final determination by the Texas Supreme Court,
706	706	unless the supreme court makes specific findings that the applicant
707	707	seeking such injunctive relief has pleaded and proved that:
708	708	(1) the applicant has a probable right to the relief it
709	709	seeks on final hearing;
710	710	(2) the applicant will suffer a probable injury that
711	711	is imminent and irreparable, and that the applicant has no other
712	712	adequate legal remedy; and
713	713	(3) maintaining the injunction is in the public
714	714	interest.
715	715	(f) An appeal under this section, including an
716	716	interlocutory, accelerated, or direct appeal, is governed, as
717	717	applicable, by the Texas Rules of Appellate Procedure, including
718	718	Rules 25.1(d)(6), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),
719	719	40.1(b), and 49.4.
720	720	(g) This section does not authorize an award of attorney's
721	721	fees against this state, and Section 37.009, Civil Practice and
722	722	Remedies Code, does not apply to an action filed under this section.
723	723	(h) This section does not authorize a taxpayer suit to
724	724	contest the denial of a tax credit by the comptroller of public
725	725	accounts.
726	726	SECTION 11. It is the intent of the legislature that every
727	727	provision, section, subsection, sentence, clause, phrase, or word
728	728	in this Act, and every application of the provisions in this Act to
729	729	each person or entity, are severable from each other. If any
730	730	application of any provision in this Act to any person, group of
731	731	persons, or circumstances is found by a court to be invalid for any
732	732	reason, the remaining applications of that provision to all other
733	733	persons and circumstances shall be severed and may not be affected.
734	734	SECTION 12. This Act takes effect September 1, 2023.