Texas 2023 - 88th Regular

Texas House Bill HB5112 Compare Versions

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1	1	88R10956 KJE-F
2	2	By: Schatzline H.B. No. 5112
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of an education savings account
8	8	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. EDUCATION SAVINGS ACCOUNT PROGRAM
13	13	Sec. 29.351. DEFINITIONS. In this subchapter:
14	14	(1) "Account" means an education savings account
15	15	established under the program.
16	16	(2) "Child with a disability" means a child who is
17	17	eligible to participate in a school district's special education
18	18	program under Section 29.003.
19	19	(3) "Curriculum" means a complete course of study for
20	20	a particular content area or grade level.
21	21	(4) "Financial institution" means a bank, credit
22	22	union, savings bank, or savings and loan association organized
23	23	under the laws of this state, another state, or federal law that has
24	24	its main office or a branch office in this state. The term does not
25	25	include any institution the deposits of which are not insured by the
26	26	Federal Deposit Insurance Corporation or the National Credit Union
27	27	Administration.
28	28	(5) "Parent" means a resident of this state who is a
29	29	natural or adoptive parent, managing or possessory conservator,
30	30	legal guardian, custodian, or other person with legal authority to
31	31	act on behalf of a child.
32	32	(6) "Postsecondary educational institution" means:
33	33	(A) an institution of higher education or a
34	34	private or independent institution of higher education as defined
35	35	by Section 61.003; or
36	36	(B) a career school or college as defined by
37	37	Section 132.001.
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 who has been accepted into the program.
42	42	Sec. 29.352. ESTABLISHMENT OF PROGRAM. (a) The
43	43	commissioner shall establish and administer an education savings
44	44	account program to provide funding for certain education-related
45	45	expenses of eligible children.
46	46	(b) The agency may contract with a private organization to
47	47	administer the program.
48	48	Sec. 29.353. ELIGIBLE CHILD. (a) A child is eligible to
49	49	participate in the program if the child is eligible to attend a
50	50	public school under Section 25.001.
51	51	(b) A child who establishes eligibility under this section
52	52	may continue participating in the program until the earliest of the
53	53	following dates:
54	54	(1) the date on which the child graduates from high
55	55	school;
56	56	(2) the date on which the child is no longer eligible
57	57	to attend a public school under Section 25.001;
58	58	(3) the date on which the child enrolls in a public
59	59	school, including an open-enrollment charter school; or
60	60	(4) the date on which the child is declared ineligible
61	61	for the program by the commissioner under this subchapter.
62	62	(c) Notwithstanding Subsection (b), the agency shall
63	63	establish procedures for, in the least disruptive manner possible:
64	64	(1) a child participating in the program to cease
65	65	participation and enroll in a public school, including an
66	66	open-enrollment charter school; and
67	67	(2) a child who previously participated in the program
68	68	and subsequently enrolled in a public school, including an
69	69	open-enrollment charter school, to resume participation in the
70	70	program.
71	71	Sec. 29.354. APPLICATION FOR PROGRAM. (a) A parent of an
72	72	eligible child may apply on behalf of the child for participation in
73	73	the program. The agency shall allow for the submission of
74	74	applications on a rolling basis.
75	75	(b) The agency shall by rule create an application form for
76	76	the program and make the application form readily available to
77	77	interested parents through various sources, including the agency's
78	78	Internet website.
79	79	(c) The agency shall provide to each applicant a publication
80	80	that describes the operation of the program, including:
81	81	(1) expenses allowed under the program under Section
82	82	29.356;
83	83	(2) a description of the responsibilities of program
84	84	participants and the duties of the agency under this subchapter;
85	85	and
86	86	(3) a statement regarding the rights afforded to a
87	87	child with a disability who is parentally placed in a private school
88	88	under the Individuals with Disabilities Education Act (20 U.S.C.
89	89	Section 1400 et seq.).
90	90	Sec. 29.355. PARTICIPATION IN PROGRAM. (a) To receive
91	91	funding under the program, a parent of an eligible child must agree
92	92	in writing to:
93	93	(1) ensure that the student will receive an education
94	94	that includes, at a minimum, the subjects of reading, language,
95	95	mathematics, social studies, and science;
96	96	(2) spend funds received through the program only for
97	97	expenses allowed under Section 29.356;
98	98	(3) notify the agency as soon as practicable if the
99	99	child enrolls in a public school, including an open-enrollment
100	100	charter school; and
101	101	(4) inform the agency if the child graduates from high
102	102	school.
103	103	(b) The agency shall provide annually to each program
104	104	participant the publication provided to applicants under Section
105	105	29.354.
106	106	Sec. 29.356. APPROVED PROVIDERS AND EDUCATION-RELATED
107	107	EXPENSES. (a) The commissioner shall by rule establish a process
108	108	for the preapproval of education service providers and vendors of
109	109	educational products for participation in the program. The
110	110	commissioner shall make the list of preapproved providers and
111	111	vendors readily available to applicants for the program and to
112	112	program participants.
113	113	(b) A payment from an account may be made only to a
114	114	preapproved education service provider or vendor of educational
115	115	products.
116	116	(c) Funds received under the program may be used only for
117	117	the following expenses incurred by a program participant:
118	118	(1) tuition and fees at a private school or
119	119	postsecondary educational institution or for a nonpublic online
120	120	educational course or program;
121	121	(2) the purchase of textbooks or other instructional
122	122	materials;
123	123	(3) payments for the purchase of a curriculum;
124	124	(4) fees for services provided by a private tutor or
125	125	teaching service;
126	126	(5) for a child with a disability, fees for
127	127	educational therapies or services provided by a practitioner,
128	128	provider, paraprofessional, or educational aide;
129	129	(6) computer hardware and software and other
130	130	technological devices primarily used for educational purposes;
131	131	(7) fees for a nationally norm-referenced achievement
132	132	test or examination, an advanced placement test or similar
133	133	examination, or any examination related to college or university
134	134	admission and a preparatory course for such a test or examination;
135	135	(8) services provided by a public school, including an
136	136	open-enrollment charter school, in a manner in which the child is
137	137	not counted toward the school's average daily attendance;
138	138	(9) uniforms required by a school or institution
139	139	described by Subdivision (1) in which the child is enrolled;
140	140	(10) tuition and fees for a summer education program
141	141	or specialized after-school education program;
142	142	(11) fees for transportation provided by a
143	143	fee-for-service transportation provider for the child to travel to
144	144	and from a preapproved education service provider or vendor of
145	145	educational products; and
146	146	(12) any other expense approved by the agency.
147	147	(d) Any funds remaining in a program participant's account
148	148	on the child's graduation from high school may be used by the child
149	149	for tuition, fees, textbooks, and other instructional materials to
150	150	attend or take courses from a postsecondary educational
151	151	institution.
152	152	Sec. 29.357. AMOUNT OF PAYMENT; FINANCING. (a) A child
153	153	participating in the program is entitled to receive annual funding
154	154	from the Foundation School Program equal to the state and local
155	155	maintenance and operations revenue to which the school district the
156	156	child would otherwise attend would be entitled to receive for the
157	157	child under Chapter 48 if the child were enrolled in the district.
158	158	(b) The parent of a child participating in the program may
159	159	make payments for the expenses of educational programs, services,
160	160	and products not covered by funds in the child's account.
161	161	(c) A payment under the program may not be financed using
162	162	money appropriated from the available school fund.
163	163	Sec. 29.358. ADMINISTRATION OF ACCOUNTS. (a) The agency
164	164	shall contract with a financial institution to establish and manage
165	165	an account for each child participating in the program. A program
166	166	participant must be able to access the participant's account by
167	167	using an online payment service.
168	168	(b) The commissioner shall make quarterly payments to each
169	169	program participant's account in equal amounts on or before dates
170	170	established by commissioner rule.
171	171	(c) The commissioner may deduct an amount from each
172	172	quarterly payment to a program participant's account to cover the
173	173	agency's cost of administering the program. The amount deducted
174	174	may not exceed three percent of the payment.
175	175	(d) A child's account is closed and any remaining funds are
176	176	returned to the state on the earliest of the following dates:
177	177	(1) the date on which the child graduates from a
178	178	baccalaureate degree program at a postsecondary educational
179	179	institution;
180	180	(2) the child's 26th birthday; or
181	181	(3) if the child has not enrolled in a postsecondary
182	182	educational institution within the four-year period following the
183	183	child's graduation from high school, the fourth anniversary of the
184	184	date on which the child graduates from high school.
185	185	Sec. 29.359. AUDITING OF ACCOUNT. (a) The agency shall
186	186	audit or contract with a private entity to audit accounts as
187	187	necessary to ensure compliance with applicable law and the
188	188	requirements of the program. At a minimum, the agency shall provide
189	189	for an annual random audit of a specified number of accounts
190	190	determined by the commissioner.
191	191	(b) In auditing an account, the agency or private entity
192	192	with which the agency contracts under Subsection (a) may require
193	193	that a program participant provide further information and
194	194	documentation regarding any payment from the participant's
195	195	account.
196	196	Sec. 29.360. SUSPENSION OF ACCOUNT. (a) The commissioner
197	197	by rule shall adopt procedures for the suspension and closure of an
198	198	account on a finding that a program participant has failed to comply
199	199	with applicable law or a requirement of the program or has
200	200	substantially misused funds received under the program.
201	201	(b) The procedures must allow for:
202	202	(1) a program participant to be declared ineligible to
203	203	participate in the program on a finding of intentional misconduct;
204	204	and
205	205	(2) an appeal to the commissioner of a finding under
206	206	Subdivision (1).
207	207	Sec. 29.361. REFUND PROHIBITED. An education service
208	208	provider or a vendor of educational products receiving funds
209	209	distributed under the program may not in any manner rebate, refund,
210	210	or credit to or share with a program participant, or any person on
211	211	behalf of a participant, any program funds paid or owed by the
212	212	participant to the provider or vendor.
213	213	Sec. 29.362. REFERRAL TO THE ATTORNEY GENERAL. (a) If the
214	214	agency obtains evidence of fraudulent use of an account, the
215	215	commissioner may refer the case to the attorney general for
216	216	investigation.
217	217	(b) With the consent of the appropriate local county or
218	218	district attorney, the attorney general has concurrent
219	219	jurisdiction with the consenting local prosecutor to prosecute an
220	220	offense referred to the attorney general under Subsection (a).
221	221	Sec. 29.363. EDUCATION SERVICE PROVIDER AND VENDOR
222	222	ACCOUNTABILITY. (a) The agency may declare an education service
223	223	provider or a vendor of educational products ineligible to
224	224	participate in the program if, after notice and hearing, the agency
225	225	finds that the provider or vendor has:
226	226	(1) failed to comply with applicable law or the
227	227	requirements of the program; or
228	228	(2) failed to provide a child participating in the
229	229	program with promised educational services or products.
230	230	(b) An education service provider or vendor of educational
231	231	products may appeal to the commissioner a finding under Subsection
232	232	(a).
233	233	(c) If an education service provider or vendor of
234	234	educational products is declared ineligible to participate in the
235	235	program under this section, the agency shall:
236	236	(1) notify program participants of the declaration as
237	237	soon as practicable; and
238	238	(2) reject any account expenditure made to the
239	239	education service provider or vendor of educational products after
240	240	the date of the declaration.
241	241	Sec. 29.364. EDUCATION SERVICE PROVIDER AND VENDOR
242	242	AUTONOMY. (a) An education service provider or vendor of
243	243	educational products that receives funds distributed under the
244	244	program is not an agent of the state or federal government.
245	245	(b) The program does not expand the regulatory authority of
246	246	the state or any school district to impose any additional
247	247	regulation on an education service provider or vendor of
248	248	educational products except those reasonably necessary to enforce
249	249	the program as provided by this subchapter.
250	250	(c) An education service provider or vendor of educational
251	251	products may not be required to modify the provider's or vendor's
252	252	creed, practices, admissions policies, or curriculum, as
253	253	applicable, to receive money distributed under the program.
254	254	(d) In any proceeding challenging a rule adopted by a state
255	255	agency or officer under this subchapter, the agency or officer has
256	256	the burden of proof to establish that the rule:
257	257	(1) is necessary to implement or enforce the program
258	258	as provided by this subchapter; and
259	259	(2) does not impose an undue burden on a program
260	260	participant or an education service provider or vendor of
261	261	educational products that receives or seeks to receive money
262	262	distributed under the program.
263	263	Sec. 29.365. STUDENT RECORDS AND INFORMATION. On request
264	264	by the parent of a child participating in the program, the school
265	265	district or open-enrollment charter school that the child would
266	266	otherwise attend shall provide a copy of the child's school records
267	267	possessed by the district or school, if any, to the child's parent
268	268	or, if applicable, the private school the child attends.
269	269	Sec. 29.366. PARENT REVIEW COMMITTEE. (a) A parent review
270	270	committee is established to assist the commissioner in:
271	271	(1) determining whether certain expenses are allowed
272	272	under Section 29.356;
273	273	(2) reviewing an appeal of the agency's decision to
274	274	declare an education service provider or vendor of educational
275	275	products ineligible to participate in the program under Section
276	276	29.363; and
277	277	(3) implementing and administering the program.
278	278	(b) The committee consists of seven members appointed by the
279	279	commissioner. Each member must be a parent of a child participating
280	280	in the program. In making appointments to the committee, the
281	281	commissioner shall ensure that parents from at least four counties
282	282	are included.
283	283	(c) A member of the committee serves a one-year term at the
284	284	pleasure of the commissioner and may be reappointed.
285	285	(d) The commissioner or the commissioner's designee is the
286	286	nonvoting chair of the committee.
287	287	Sec. 29.367. GIFTS, GRANTS, AND DONATIONS. The
288	288	commissioner may solicit and accept gifts, grants, and donations
289	289	from any public or private source for the program.
290	290	Sec. 29.368. RIGHT TO INTERVENE IN CIVIL ACTION. (a) A
291	291	program participant may intervene in any civil action challenging
292	292	the constitutionality of the program.
293	293	(b) A court in which a civil action described by Subsection
294	294	(a) is filed may require that all program participants wishing to
295	295	intervene in the action file a joint brief. A program participant
296	296	may not be required to join a brief filed on behalf of the state or a
297	297	state agency.
298	298	Sec. 29.369. RULES. The commissioner shall adopt rules as
299	299	necessary to implement this subchapter. The rules may include:
300	300	(1) establishing a telephonic or online anonymous
301	301	fraud reporting service;
302	302	(2) requiring a surety bond from an education service
303	303	provider or vendor of educational products that receives more than
304	304	$100,000 per year from funds distributed under the program; or
305	305	(3) providing for an education service provider or
306	306	vendor of educational products to refund to a program participant's
307	307	account payments made from that account.
308	308	SECTION 2. This Act applies beginning with the 2023-2024
309	309	school year.
310	310	SECTION 3. Not later than 90 days after the effective date
311	311	of this Act, the commissioner of education shall adopt rules
312	312	necessary to implement the education savings account program under
313	313	Subchapter J, Chapter 29, Education Code, as added by this Act.
314	314	SECTION 4. This Act takes effect immediately if it receives
315	315	a vote of two-thirds of all the members elected to each house, as
316	316	provided by Section 39, Article III, Texas Constitution. If this
317	317	Act does not receive the vote necessary for immediate effect, this
318	318	Act takes effect September 1, 2023.