Texas 2023 - 88th Regular

Texas House Bill HB4340 Compare Versions

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1	1	By: Frank H.B. No. 4340
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the establishment of the Education Savings Account
7	7	Program to allow certain children to use public money to pursue
8	8	educational alternatives to public schools and an insurance premium
9	9	tax credit for contributions made for purposes of that program.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. The purpose of this Act is to provide additional
12	12	educational options to assist families in this state in exercising
13	13	the right to direct the education of their children.
14	14	SECTION 2. Chapter 29, Education Code, is amended by adding
15	15	Subchapter J to read as follows:
16	16	SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
17	17	Sec. 29.351. DEFINITIONS. In this subchapter:
18	18	(1) "Account" means an education savings account
19	19	established under the program.
20	20	(2) "Certified educational assistance organization"
21	21	means an educational assistance organization certified under
22	22	Section 29.354 to assist in administering the program.
23	23	(3) "Child with a disability" means a child who is
24	24	eligible to participate in a school district's special education
25	25	program under Section 29.003.
26	26	(4) "Cocurricular activity" means an activity that
27	27	directly adds value to classroom instruction and curriculum,
28	28	including an academic field trip, performance, contest,
29	29	demonstration, or display. The term does not include an athletic or
30	30	other nonacademic activity.
31	31	(5) "Higher education provider" means an institution
32	32	of higher education or a private or independent institution of
33	33	higher education, as those terms are defined by Section 61.003.
34	34	(6) "Parent" means a resident of this state who is a
35	35	natural or adoptive parent, managing or possessory conservator,
36	36	legal guardian, custodian, or other person with legal authority to
37	37	act on behalf of a child.
38	38	(7) "Program" means the Education Savings Account
39	39	Program established under this subchapter.
40	40	(8) "Program participant" means a child and a parent
41	41	of a child enrolled in the program.
42	42	Sec. 29.352. ESTABLISHMENT OF PROGRAM. The comptroller
43	43	shall establish the Education Savings Account Program to provide
44	44	funding for approved education-related expenses of program
45	45	participants.
46	46	Sec. 29.353. EDUCATION SAVINGS ACCOUNT PROGRAM FUND. (a)
47	47	The Education Savings Account Program fund is an account in the
48	48	general revenue fund to be administered by the comptroller.
49	49	(b) The fund is composed of:
50	50	(1) general revenue transferred to the fund;
51	51	(2) money appropriated to the fund;
52	52	(3) gifts, grants, and donations received under
53	53	Section 29.369;
54	54	(4) contributions to the fund for which an entity
55	55	receives a credit against the entity's state premium tax liability
56	56	under Chapter 230, Insurance Code; and
57	57	(5) any other money available for purposes of the
58	58	program.
59	59	(c) Money in the fund may be appropriated only to the
60	60	comptroller for purposes of making payments to program participants
61	61	and administering the program under this subchapter.
62	62	Sec. 29.354. SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
63	63	ORGANIZATION. (a) An organization may apply to the comptroller for
64	64	certification as a certified educational assistance organization
65	65	during an application period established by the comptroller.
66	66	(b) To be eligible for certification, the organization
67	67	must:
68	68	(1) have the ability to perform the duties and
69	69	functions required of a certified educational assistance
70	70	organization under this subchapter;
71	71	(2) be in good standing with the state;
72	72	(3) be exempt from taxation under Section 501(a),
73	73	Internal Revenue Code of 1986, as an organization described by
74	74	Section 501(c)(3) of that code; and
75	75	(4) be able to assist the comptroller in administering
76	76	the program, including the ability to:
77	77	(A) accept, process, and track applications for
78	78	the program;
79	79	(B) assist prospective applicants, applicants,
80	80	and program participants with finding preapproved education
81	81	service providers and vendors of educational products; and
82	82	(C) verify that program funding is used only for
83	83	approved education-related expenses.
84	84	(c) The comptroller shall certify one educational
85	85	assistance organization to assist in administering the program,
86	86	including by:
87	87	(1) administering the application process under
88	88	Section 29.356;
89	89	(2) assisting prospective applicants, applicants, and
90	90	program participants with understanding eligible expenses and
91	91	finding preapproved education service providers and vendors of
92	92	educational products;
93	93	(3) ensuring money in a program participant's account
94	94	is used only for approved expenses under Section 29.359; and
95	95	(4) publishing data and an annual report regarding:
96	96	(A) the number of program applications received,
97	97	accepted, and waitlisted;
98	98	(B) program participant satisfaction; and
99	99	(C) assessment results reported under Section
100	100	29.357(2).
101	101	Sec. 29.355. ELIGIBLE CHILD. (a) A child is eligible to
102	102	participate in the program if the child is eligible to attend a
103	103	public school under Section 25.001 and either:
104	104	(1) was enrolled in a public school during the entire
105	105	preceding school year; or
106	106	(2) is enrolling in kindergarten or first grade for
107	107	the first time.
108	108	(b) A sibling of a child who is eligible to participate in
109	109	the program under Subsection (a) is eligible to participate in the
110	110	program if the sibling is eligible to attend a public school under
111	111	Section 25.001.
112	112	(c) A child who establishes eligibility under this section
113	113	may participate in the program until the earliest of the following
114	114	dates:
115	115	(1) the date on which the child graduates from high
116	116	school;
117	117	(2) the date on which the child is no longer eligible
118	118	to attend a public school under Section 25.001;
119	119	(3) the date on which the child enrolls in a public
120	120	school, including an open-enrollment charter school; or
121	121	(4) the date on which the child is declared ineligible
122	122	for the program by the comptroller under this subchapter.
123	123	Sec. 29.356. APPLICATION TO PROGRAM. (a) A parent of an
124	124	eligible child may apply to the certified educational assistance
125	125	organization to enroll the child in the program for the following
126	126	school year. The certified educational assistance organization
127	127	shall:
128	128	(1) establish a reasonable annual deadline by which an
129	129	applicant must complete and submit an application form to
130	130	participate in the program; and
131	131	(2) on receipt of more acceptable applications for
132	132	admission under this section than available positions in the
133	133	program due to insufficient funding, prioritize applicants who are:
134	134	(A) members of a household with a total annual
135	135	income that is at or below 200 percent of the income guidelines
136	136	necessary to qualify for the national free or reduced-price lunch
137	137	program established under 42 U.S.C. Section 1751 et seq;
138	138	(B) students with a disability; or
139	139	(C) students who are covered by Section 504,
140	140	Rehabilitation Act of 1973 (29 U.S.C. Section 794).
141	141	(b) The certified educational assistance organization shall
142	142	create an application form for the program and make the application
143	143	form readily available to interested parents through various
144	144	sources, including the organization's Internet website. The
145	145	application form must state the application deadline. The
146	146	organization shall ensure that the application form is capable of
147	147	being submitted to the organization electronically.
148	148	(c) The certified educational assistance organization shall
149	149	post on the organization's Internet website an applicant and
150	150	participant handbook with a description of the program, including:
151	151	(1) expenses allowed under the program under Section
152	152	29.359;
153	153	(2) a list of preapproved education service providers
154	154	and vendors of educational products under Section 29.358;
155	155	(3) the organization's expense reporting
156	156	requirements; and
157	157	(4) a description of the responsibilities of program
158	158	participants.
159	159	(d) The certified educational assistance organization shall
160	160	annually provide to each program participant the information
161	161	described by Subsection (c). The organization may provide the
162	162	information electronically.
163	163	(e) A parent of a child described by Section 29.355(a)(2)(B)
164	164	may submit an application for the eligible child and the child's
165	165	sibling concurrently. The certified educational assistance
166	166	organization shall consider concurrently the applications of
167	167	siblings who apply by the date established by the organization
168	168	under Subsection (a).
169	169	(f) The certified educational assistance organization may
170	170	not require a program participant in good standing to annually
171	171	resubmit an application for continued participation in the program.
172	172	Sec. 29.357. PARTICIPATION IN PROGRAM. To receive funding
173	173	under the program, a parent of an eligible child must agree to:
174	174	(1) spend money received through the program only for
175	175	expenses allowed under Section 29.359;
176	176	(2) share or authorize the administrator of an
177	177	assessment instrument to share with the certified educational
178	178	assistance organization the results of any assessment instrument
179	179	required to be administered to the child under Section
180	180	29.358(b)(1)(B) or other law;
181	181	(3) refrain from selling an item purchased with
182	182	program money in accordance with Section 29.359(a)(2) until the end
183	183	of the 12th month after the date the item is purchased; and
184	184	(4) notify the certified educational assistance
185	185	organization not later than 30 days after the date on which the
186	186	child:
187	187	(A) enrolls in a public school, including an
188	188	open-enrollment charter school;
189	189	(B) graduates from high school; or
190	190	(C) is no longer eligible to enroll in a public
191	191	school under Section 25.001.
192	192	Sec. 29.358. APPROVED PROVIDERS. (a) The comptroller
193	193	shall by rule establish a process for the preapproval of education
194	194	service providers and vendors of educational products for
195	195	participation in the program. The comptroller shall set a
196	196	reasonable quarterly deadline by which a provider or vendor must
197	197	submit an application.
198	198	(b) The comptroller shall approve an education service
199	199	provider or vendor of educational products for participation in the
200	200	program if the provider or vendor:
201	201	(1) for a private school, demonstrates the school's
202	202	qualification to serve program participants, including:
203	203	(A) accreditation by an organization recognized
204	204	by the Texas Private School Accreditation Commission; and
205	205	(B) annual administration of a nationally
206	206	norm-referenced assessment instrument or the appropriate
207	207	assessment instrument required under Subchapter B, Chapter 39;
208	208	(2) for a private tutor, therapist, or teaching
209	209	service:
210	210	(A) demonstrates the tutor's, therapist's, or
211	211	service's qualification to serve program participants, including
212	212	that the tutor or therapist or each employee of the service who
213	213	intends to provide services to a program participant:
214	214	(i) is certified under Subchapter B,
215	215	Chapter 21;
216	216	(ii) holds a relevant license or
217	217	accreditation issued by a state, regional, or national licensing or
218	218	accreditation organization; or
219	219	(iii) is employed in a teaching or tutoring
220	220	capacity at a higher education provider;
221	221	(B) the tutor or therapist or each employee of
222	222	the teaching service who intends to provide educational services to
223	223	a program participant either:
224	224	(i) completes a national criminal history
225	225	record information review; or
226	226	(ii) provides to the comptroller
227	227	documentation indicating that the tutor, therapist, or employee, as
228	228	applicable, has completed a national criminal history record
229	229	information review within a period established by comptroller rule;
230	230	and
231	231	(C) the tutor or therapist or each employee of
232	232	the teaching service who intends to provide educational services to
233	233	a program participant is not included in the registry under Section
234	234	22.092; or
235	235	(3) for a higher education provider, demonstrates
236	236	postsecondary accreditation.
237	237	(c) The comptroller shall review the national criminal
238	238	history record information or documentation for each private tutor,
239	239	therapist, or teaching service employee who submits information or
240	240	documentation under this section and verify that the individual is
241	241	not included in the registry under Section 22.092. The tutor,
242	242	therapist, or service must provide the comptroller with any
243	243	information requested by the comptroller to enable the comptroller
244	244	to complete the review.
245	245	(d) An education service provider or vendor of educational
246	246	products shall provide information requested by the comptroller to
247	247	verify the provider's or vendor's eligibility for preapproval under
248	248	Subsection (b). The comptroller may not approve a provider or
249	249	vendor if the comptroller cannot verify the provider's or vendor's
250	250	eligibility for preapproval.
251	251	Sec. 29.359. APPROVED EDUCATION-RELATED EXPENSES. (a)
252	252	Subject to Subsection (b), money received under the program may be
253	253	used only for the following expenses incurred by a program
254	254	participant at a preapproved education service provider or vendor
255	255	of educational products:
256	256	(1) tuition and fees;
257	257	(2) the purchase of textbooks or other instructional
258	258	materials or uniforms required by a school, higher education
259	259	provider, course, or online educational course or program in which
260	260	the child is enrolled;
261	261	(3) costs related to academic assessments;
262	262	(4) costs related to cocurricular activities;
263	263	(5) fees for transportation provided by a
264	264	fee-for-service transportation provider for the child to travel to
265	265	and from a preapproved education service provider or vendor of
266	266	educational products; and
267	267	(6) fees for educational therapies or services
268	268	provided by a practitioner or provider, only for fees that are not
269	269	covered by any federal, state, or local government benefits such as
270	270	Medicaid or the Children's Health Insurance Program (CHIP) or by
271	271	any private insurance that the child is enrolled in at the time of
272	272	receiving the therapies or services.
273	273	(b) Money received under the program may not be used to pay
274	274	any person who is a member of the program participant's household.
275	275	(c) A finding that a program participant used money
276	276	distributed under the program to pay for an expense not allowed
277	277	under Subsection (a) does not affect the validity of any payment
278	278	made by the participant for an expense that is allowed under that
279	279	subsection.
280	280	(d) Notwithstanding Subsection (a), the comptroller shall
281	281	by rule establish a process by which:
282	282	(1) program participants may be efficiently
283	283	reimbursed for expenses described by Subsection (a)(2), (3), (4),
284	284	(5), or (6) incurred from an education service provider or vendor of
285	285	educational products that is not preapproved under Section
286	286	29.358(a); and
287	287	(2) frequently used providers and vendors described by
288	288	Subdivision (1) that are in good standing for three continuous
289	289	school years may receive payment directly from an account.
290	290	Sec. 29.360. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
291	291	an eligible child shall receive each year that the child
292	292	participates in the program a payment from the state from funds
293	293	available under Section 29.353 to the child's account in an amount
294	294	equal to 90 percent of the state average maintenance and operations
295	295	revenue per student in average daily attendance for the preceding
296	296	state fiscal year.
297	297	(b) Any money remaining in a child's account at the end of a
298	298	fiscal year is carried forward to the next fiscal year unless
299	299	another provision of this subchapter mandates the closure of the
300	300	account.
301	301	(c) The parent of a child participating in the program may
302	302	make payments for the expenses of educational programs, services,
303	303	and products not covered by money in the child's account.
304	304	(d) A payment under Subsection (a) may not be financed using
305	305	federal money.
306	306	(e) Payments received under this subchapter do not
307	307	constitute taxable income to the eligible student's parent, unless
308	308	otherwise provided by federal law.
309	309	(f) Not later than November 1 of each even-numbered year,
310	310	the comptroller shall submit to the legislature:
311	311	(1) a summary of participant enrollment in the
312	312	program;
313	313	(2) the amount of cost savings accruing to the state as
314	314	a result of the program; and
315	315	(3) an estimate of the total amount of funding
316	316	required for the program for the following state fiscal biennium.
317	317	Sec. 29.361. ADMINISTRATION OF ACCOUNTS. (a) The
318	318	comptroller shall make quarterly payments to each program
319	319	participant's account in equal amounts on or before the first day of
320	320	July, October, January, and April.
321	321	(b) The comptroller may deduct an amount from each quarterly
322	322	payment to a program participant's account to cover the
323	323	comptroller's cost of administering the program. The amount
324	324	deducted may not exceed three percent of the payment.
325	325	(c) Each quarter, the comptroller shall disburse to the
326	326	certified educational assistance organization an amount from the
327	327	total amount of money appropriated for purposes of this subchapter
328	328	to cover the organization's cost of administering the program. The
329	329	total amount disbursed to the certified educational assistance
330	330	organization under this subsection for a fiscal year may not exceed
331	331	five percent of the amount appropriated for purposes of this
332	332	subchapter for that fiscal year.
333	333	(d) Before payments are made under Subsection (a) in October
334	334	and April, the certified educational assistance organization
335	335	shall:
336	336	(1) verify with the agency that each program
337	337	participant is not enrolled in a public school, including an
338	338	open-enrollment charter school; and
339	339	(2) notify the comptroller if the organization
340	340	determines that a program participant is enrolled in a public
341	341	school, including an open-enrollment charter school.
342	342	(e) On the date on which a child who participated in the
343	343	program is no longer eligible to participate in the program under
344	344	Section 29.355(b), the child's account is closed and any remaining
345	345	money is returned to the state for deposit in the Education Savings
346	346	Account Program fund.
347	347	Sec. 29.362. RANDOM AUDITING. (a) The comptroller may
348	348	contract with a private entity to randomly audit accounts and the
349	349	certified educational assistance organization as necessary to
350	350	ensure compliance with applicable law and program requirements.
351	351	(b) In conducting an audit, the comptroller or private
352	352	entity may require that a program participant or the certified
353	353	educational assistance organization provide additional information
354	354	and documentation regarding any payment made under the program.
355	355	(c) The private entity shall report to the comptroller any
356	356	violation of this subchapter or other relevant law found by the
357	357	entity during an audit conducted under this section. The
358	358	comptroller shall report the violation to:
359	359	(1) the certified educational assistance
360	360	organization;
361	361	(2) the education service provider or vendor of
362	362	educational products, as applicable; and
363	363	(3) the parent of each child participating in the
364	364	program who is affected by the violation.
365	365	Sec. 29.363. SUSPENSION OF ACCOUNT. (a) The comptroller
366	366	shall suspend the account of a program participant who fails to
367	367	remain in good standing by complying with applicable law or a
368	368	requirement of the program.
369	369	(b) On suspension of an account under Subsection (a), the
370	370	comptroller shall notify the program participant in writing that
371	371	the account has been suspended and that no additional payments may
372	372	be made from the account. The notification must specify the grounds
373	373	for the suspension and state that the participant has 30 business
374	374	days to respond and take any corrective action required by the
375	375	comptroller.
376	376	(c) On the expiration of the 30-day period under Subsection
377	377	(b), the comptroller shall:
378	378	(1) order closure of the suspended account;
379	379	(2) order temporary reinstatement of the account,
380	380	conditioned on the performance of a specified action by the program
381	381	participant; or
382	382	(3) order full reinstatement of the account.
383	383	(d) The comptroller may recover money distributed under the
384	384	program that was used for expenses not allowed under Section 29.359
385	385	from the program participant or the entity that received the money
386	386	if the program participant's account is suspended or closed under
387	387	this section.
388	388	Sec. 29.364. TUITION AND FEES; REFUND PROHIBITED. (a) An
389	389	education service provider or vendor of educational products may
390	390	not charge a child participating in the program an amount greater
391	391	than the amount charged for that service by the provider or vendor.
392	392	(b) An education service provider or vendor of educational
393	393	products receiving money distributed under the program may not in
394	394	any manner rebate, refund, or credit to or share with a program
395	395	participant, or any person on behalf of a participant, any program
396	396	money paid or owed by the participant to the provider or vendor.
397	397	Sec. 29.365. REFERRAL TO DISTRICT ATTORNEY. If the
398	398	comptroller or the certified educational assistance organization
399	399	obtains evidence of fraudulent use of an account, the comptroller
400	400	or organization shall notify the appropriate local county or
401	401	district attorney with jurisdiction over the residence of the
402	402	program participant.
403	403	Sec. 29.366. SPECIAL EDUCATION NOTICE. (a) The certified
404	404	educational assistance organization shall post on the
405	405	organization's Internet website and provide to each parent who
406	406	submits an application for the program a notice that:
407	407	(1) states that a private school is not subject to
408	408	federal and state laws regarding the provision of educational
409	409	services to a child with a disability in the same manner as a public
410	410	school; and
411	411	(2) provides information regarding rights to which a
412	412	child with a disability is entitled under federal and state law if
413	413	the child attends a public school, including:
414	414	(A) rights provided under the Individuals with
415	415	Disabilities Education Act (20 U.S.C. Section 1400 et seq.); and
416	416	(B) rights provided under Subchapter A.
417	417	(b) A private school in which a child with a disability who
418	418	is a program participant enrolls shall provide to the child's
419	419	parent a copy of the notice required under Subsection (a).
420	420	Sec. 29.367. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
421	421	AUTONOMY. (a) An education service provider or vendor of
422	422	educational products that receives money distributed under the
423	423	program is not a recipient of federal financial assistance on the
424	424	basis of receiving that money.
425	425	(b) A rule adopted or action taken related to the program by
426	426	an individual, governmental entity, court of law, or program
427	427	administrator may not:
428	428	(1) limit the independence or autonomy of an education
429	429	service provider, vendor of educational products, or program
430	430	participant;
431	431	(2) consider the actions of an education service
432	432	provider, vendor of educational products, or program participant to
433	433	be the actions of an agent of state government;
434	434	(3) limit:
435	435	(A) an education service provider's ability to
436	436	determine the methods used to educate the provider's students or to
437	437	exercise the provider's religious or institutional values; or
438	438	(B) a program participant's ability to determine
439	439	the participant's educational content or to exercise the
440	440	participant's religious values;
441	441	(4) obligate an education service provider or program
442	442	participant to act contrary to the provider's or participant's
443	443	religious or institutional values, as applicable;
444	444	(5) impose any regulation on an education service
445	445	provider, vendor of educational products, or program participant
446	446	beyond those regulations necessary to enforce the requirements of
447	447	the program; or
448	448	(6) require as a condition of receiving money
449	449	distributed under the program:
450	450	(A) an education service provider to modify the
451	451	provider's creed, practices, admissions policies, curricula,
452	452	performance standards, employment policies, or assessments; or
453	453	(B) a program participant to modify the
454	454	participant's creed, practices, curricula, performance standards,
455	455	or assessments.
456	456	(c) In a proceeding challenging a rule adopted by a state
457	457	agency or officer under this subchapter, the agency or officer has
458	458	the burden of proof to establish by clear and convincing evidence
459	459	that the rule:
460	460	(1) is necessary to implement or enforce the program
461	461	as provided by this subchapter;
462	462	(2) does not violate this section;
463	463	(3) does not impose an undue burden on a program
464	464	participant or an education service provider or vendor of
465	465	educational products that participates or applies to participate in
466	466	the program; and
467	467	(4) is the least restrictive means of accomplishing
468	468	the purpose of the program while recognizing the independence of an
469	469	education service provider to meet the educational needs of
470	470	students in accordance with the provider's religious or
471	471	institutional values.
472	472	Sec. 29.368. STUDENT RECORDS AND INFORMATION. (a) On
473	473	request by the parent of a child participating or seeking to
474	474	participate in the program, the school district or open-enrollment
475	475	charter school that the child would otherwise attend shall provide
476	476	a copy of the child's school records possessed by the district or
477	477	school, if any, to the child's parent or, if applicable, the private
478	478	school the child attends.
479	479	(b) As necessary to verify a child's eligibility for the
480	480	program, the agency shall provide to the certified educational
481	481	assistance organization any information available to the agency
482	482	requested by the organization regarding a child who participates or
483	483	seeks to participate in the program. The organization may not
484	484	retain information provided under this subsection beyond the period
485	485	necessary to determine a child's eligibility to participate in the
486	486	program.
487	487	Sec. 29.369. GIFTS, GRANTS, AND DONATIONS. The comptroller
488	488	and certified educational assistance organization may solicit and
489	489	accept gifts, grants, and donations from any public or private
490	490	source for any expenses related to the administration of the
491	491	program, including establishing the program.
492	492	Sec. 29.370. RULES; PROCEDURES. (a) The comptroller shall
493	493	adopt rules and procedures as necessary to implement, administer,
494	494	and enforce this subchapter.
495	495	(b) A rule adopted under Subsection (a) is binding on an
496	496	organization that applies for certification as an educational
497	497	assistance organization and a state or local governmental entity,
498	498	including a political subdivision, as necessary to implement,
499	499	administer, and enforce this subchapter.
500	500	Sec. 29.371. APPEAL; JUDICIAL REVIEW. (a) A program
501	501	participant may appeal to the comptroller an administrative
502	502	decision made by the comptroller or certified educational
503	503	assistance organization under this subchapter, including a
504	504	decision regarding eligibility, allowable expenses, or the
505	505	participant's removal from the program.
506	506	(b) A program participant, education service provider, or
507	507	vendor of educational products who is adversely affected or
508	508	aggrieved by a decision made by the comptroller or certified
509	509	educational assistance organization under this subchapter may file
510	510	a suit challenging the decision in a district court in the county in
511	511	which the program participant resides or the provider or vendor has
512	512	its principal place of business, as applicable.
513	513	Sec. 29.372. RIGHT TO INTERVENE IN CIVIL ACTION. (a) A
514	514	program participant, education service provider, or vendor of
515	515	educational products may intervene in any civil action challenging
516	516	the constitutionality of the program or the insurance premium tax
517	517	credit under Chapter 230, Insurance Code.
518	518	(b) A court in which a civil action described by Subsection
519	519	(a) is filed may require that all program participants, education
520	520	service providers, and vendors of educational products wishing to
521	521	intervene in the action file a joint brief. A program participant,
522	522	education service provider, or vendor of educational products may
523	523	not be required to join a brief filed on behalf of the state or a
524	524	state agency.
525	525	SECTION 3. Section 22.092(d), Education Code, is amended to
526	526	read as follows:
527	527	(d) The agency shall provide equivalent access to the
528	528	registry maintained under this section to:
529	529	(1) private schools;
530	530	(2) public schools; [and]
531	531	(3) nonprofit teacher organizations approved by the
532	532	commissioner for the purpose of participating in the tutoring
533	533	program established under Section 33.913; and
534	534	(4) the comptroller for the purpose of preapproving
535	535	education service providers and vendors of educational products
536	536	under Section 29.358 for participation in the program established
537	537	under Subchapter J, Chapter 29.
538	538	SECTION 4. Section 411.109, Government Code, is amended by
539	539	adding Subsection (c) to read as follows:
540	540	(c) The comptroller is entitled to obtain criminal history
541	541	record information maintained by the department about a person who
542	542	is a private tutor, a therapist, or an employee of a teaching
543	543	service or school who intends to provide educational services to a
544	544	child participating in the program established under Subchapter J,
545	545	Chapter 29, Education Code, and is seeking approval to receive
546	546	money distributed under that program.
547	547	SECTION 5. Subtitle B, Title 3, Insurance Code, is amended
548	548	by adding Chapter 230 to read as follows:
549	549	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
550	550	EDUCATION SAVINGS ACCOUNT PROGRAM
551	551	SUBCHAPTER A. GENERAL PROVISIONS
552	552	Sec. 230.001. DEFINITIONS. In this chapter:
553	553	(1) "Fund" means the Education Savings Account Program
554	554	fund under Section 29.353, Education Code.
555	555	(2) "State premium tax liability" means any liability
556	556	incurred by an entity under Chapters 221 through 226.
557	557	SUBCHAPTER B. CREDIT
558	558	Sec. 230.051. CREDIT. An entity may apply for a credit
559	559	against the entity's state premium tax liability in the amount and
560	560	under the conditions provided by this chapter. The comptroller
561	561	shall award credits as provided by Section 230.054.
562	562	Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
563	563	Subject to Subsections (b) and (c), the amount of an entity's credit
564	564	is equal to the lesser of the amount contributed to the fund during
565	565	the period covered by the tax report or 75 percent of the entity's
566	566	state premium tax liability for the report.
567	567	(b) For the 2024 state fiscal year, the total amount of
568	568	credits that may be awarded under this chapter may not exceed $500
569	569	million. For each subsequent state fiscal year, the total amount of
570	570	credits that may be awarded is:
571	571	(1) the same total amount of credits available under
572	572	this subsection for the previous state fiscal year, if Subdivision
573	573	(2) does not apply; or
574	574	(2) 125 percent of the total amount of credits
575	575	available under this subsection for the previous state fiscal year,
576	576	if the total amount of credits awarded in the previous state fiscal
577	577	year was at least 90 percent of the total amount of credits
578	578	available under this subsection for that fiscal year.
579	579	(c) The comptroller by rule shall prescribe procedures by
580	580	which the comptroller may allocate credits under this chapter. The
581	581	procedures must provide that credits are allocated first to
582	582	entities that received preliminary approval for a credit under
583	583	Section 230.053 and that apply under Section 230.054. The
584	584	procedures must provide that any remaining credits are allocated to
585	585	entities that apply under Section 230.054 on a first-come,
586	586	first-served basis, based on the date the contribution was
587	587	initially made.
588	588	(d) The comptroller may require an entity to notify the
589	589	comptroller of the amount the entity intends or expects to apply for
590	590	under this chapter before the beginning of a state fiscal year or at
591	591	any other time required by the comptroller.
592	592	Sec. 230.053. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
593	593	making a contribution to the fund, an entity may apply to the
594	594	comptroller for preliminary approval of a credit under this chapter
595	595	for the contribution.
596	596	(b) An entity must apply for preliminary approval on a form
597	597	provided by the comptroller that includes the amount the entity
598	598	expects to contribute and any other information the comptroller
599	599	requires.
600	600	(c) The comptroller shall grant preliminary approval for
601	601	credits under this chapter on a first-come, first-served basis,
602	602	based on the date the comptroller receives the application for
603	603	preliminary approval.
604	604	(d) The comptroller shall grant preliminary approval for a
605	605	credit under this chapter for a state fiscal year if the sum of the
606	606	amount of the credit and the total amount of all other credits
607	607	preliminarily approved under this chapter does not exceed the
608	608	amount provided by Section 230.052(b).
609	609	(e) Final award of a credit preliminarily approved under
610	610	this section remains subject to the limitations under Section
611	611	230.052(a) and all other requirements of this chapter.
612	612	Sec. 230.054. APPLICATION FOR CREDIT. (a) An entity must
613	613	apply for a credit under this chapter on or with the tax report
614	614	covering the period in which the contribution was made.
615	615	(b) The comptroller shall adopt a form for the application
616	616	for the credit. An entity must use this form in applying for the
617	617	credit.
618	618	(c) Subject to Section 230.052(c), the comptroller may
619	619	award a credit to an entity that applies for the credit under
620	620	Subsection (a) of this section if the entity is eligible for the
621	621	credit and the credit is available under Section 230.052(b). The
622	622	comptroller has broad discretion in determining whether to grant or
623	623	deny an application for a credit.
624	624	(d) The comptroller shall notify an entity in writing of the
625	625	comptroller's decision to grant or deny the application under
626	626	Subsection (a). If the comptroller denies an entity's application,
627	627	the comptroller shall include in the notice of denial the reasons
628	628	for the comptroller's decision.
629	629	(e) If the comptroller denies an entity's application under
630	630	Subsection (a), the entity may request in writing a reconsideration
631	631	of the application not later than the 10th day after the date the
632	632	notice under Subsection (d) is received. If the entity does not
633	633	request a reconsideration of the application on or before that
634	634	date, the comptroller's decision is final.
635	635	(f) An entity that requests a reconsideration under
636	636	Subsection (e) may submit to the comptroller, not later than the
637	637	30th day after the date the request for reconsideration is
638	638	submitted, additional information and documents to support the
639	639	entity's request for reconsideration.
640	640	(g) The comptroller's reconsideration of an application
641	641	under this section is not a contested case under Chapter 2001,
642	642	Government Code. The comptroller's decision on a request for
643	643	reconsideration of an application is final and is not appealable.
644	644	(h) This section does not create a cause of action to
645	645	contest a decision of the comptroller to deny an application for a
646	646	credit under this chapter.
647	647	Sec. 230.055. RULES; PROCEDURES. The comptroller shall
648	648	adopt rules and procedures to implement, administer, and enforce
649	649	this chapter.
650	650	Sec. 230.056. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
651	651	may not convey, assign, or transfer the credit allowed under this
652	652	chapter to another entity unless substantially all of the assets of
653	653	the entity are conveyed, assigned, or transferred in the same
654	654	transaction.
655	655	Sec. 230.057. NOTICE OF AVAILABILITY OF CREDIT. The
656	656	comptroller shall provide notice of the availability of the credit
657	657	under this chapter on the comptroller's Internet website, in the
658	658	instructions for insurance premium tax report forms, and in any
659	659	notice sent to an entity concerning the requirement to file an
660	660	insurance premium tax report.
661	661	SECTION 6. Subchapter J, Chapter 29, Education Code, as
662	662	added by this Act, applies beginning with the 2024-2025 school
663	663	year.
664	664	SECTION 7. An entity may apply for a credit under Chapter
665	665	230, Insurance Code, as added by this Act, only for a contribution
666	666	made on or after the effective date of this Act.
667	667	SECTION 8. Not later than November 15, 2023, the
668	668	comptroller of public accounts shall adopt rules as provided by
669	669	Section 230.055, Insurance Code, as added by this Act.
670	670	SECTION 9. Chapter 230, Insurance Code, as added by this
671	671	Act, applies only to a tax report originally due on or after the
672	672	effective date of this Act.
673	673	SECTION 10. (a) The constitutionality and other validity
674	674	under the state or federal constitution of all or any part of
675	675	Subchapter J, Chapter 29, Education Code, as added by this Act, or
676	676	Chapter 230, Insurance Code, as added by this Act, may be determined
677	677	in an action for declaratory judgment under Chapter 37, Civil
678	678	Practice and Remedies Code, in a district court in the county in
679	679	which the plaintiff resides or has its principal place of business.
680	680	(b) An order, however characterized, of a trial court
681	681	granting or denying a temporary or otherwise interlocutory
682	682	injunction or a permanent injunction on the grounds of the
683	683	constitutionality or unconstitutionality, or other validity or
684	684	invalidity, under the state or federal constitution of all or any
685	685	part of Subchapter J, Chapter 29, Education Code, as added by this
686	686	Act, or Chapter 230, Insurance Code, as added by this Act, may be
687	687	reviewed only by direct appeal to the Texas Supreme Court filed not
688	688	later than the 15th day after the date on which the order was
689	689	entered. The Texas Supreme Court shall give precedence to appeals
690	690	under this section over other matters.
691	691	(c) The direct appeal is an accelerated appeal.
692	692	(d) This section exercises the authority granted by Section
693	693	3-b, Article V, Texas Constitution.
694	694	(e) The filing of a direct appeal under this section will
695	695	automatically stay any temporary or otherwise interlocutory
696	696	injunction or permanent injunction granted in accordance with this
697	697	section pending final determination by the Texas Supreme Court,
698	698	unless the supreme court makes specific findings that the applicant
699	699	seeking such injunctive relief has pleaded and proved that:
700	700	(1) the applicant has a probable right to the relief it
701	701	seeks on final hearing;
702	702	(2) the applicant will suffer a probable injury that
703	703	is imminent and irreparable, and that the applicant has no other
704	704	adequate legal remedy; and
705	705	(3) maintaining the injunction is in the public
706	706	interest.
707	707	(f) An appeal under this section, including an
708	708	interlocutory, accelerated, or direct appeal, is governed, as
709	709	applicable, by the Texas Rules of Appellate Procedure, including
710	710	Rules 25.1(d)(6), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),
711	711	40.1(b), and 49.4.
712	712	(g) This section does not authorize an award of attorney's
713	713	fees against this state, and Section 37.009, Civil Practice and
714	714	Remedies Code, does not apply to an action filed under this section.
715	715	(h) This section does not authorize a taxpayer suit to
716	716	contest the denial of a tax credit by the comptroller of public
717	717	accounts.
718	718	SECTION 11. It is the intent of the legislature that every
719	719	provision, section, subsection, sentence, clause, phrase, or word
720	720	in this Act, and every application of the provisions in this Act to
721	721	each person or entity, are severable from each other. If any
722	722	application of any provision in this Act to any person, group of
723	723	persons, or circumstances is found by a court to be invalid for any
724	724	reason, the remaining applications of that provision to all other
725	725	persons and circumstances shall be severed and may not be affected.
726	726	SECTION 12. This Act takes effect September 1, 2023.