Texas 2023 - 88th Regular

Texas House Bill HB5267 Compare Versions

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1	1	By: Frank H.B. No. 5267
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:
103	103	(1) attend a public school under Section 25.001; or
104	104	(2) enroll in a public school's prekindergarten
105	105	program under Section 29.153.
106	106	(b) A sibling of a child who is eligible to participate in
107	107	the program under Subsection (a) is eligible to participate in the
108	108	program if the sibling is eligible to attend a public school under
109	109	Section 25.001.
110	110	(c) A child who establishes eligibility under this section
111	111	may participate in the program until the earliest of the following
112	112	dates:
113	113	(1) the date on which the child graduates from high
114	114	school;
115	115	(2) the date on which the child is no longer eligible
116	116	to attend a public school under Section 25.001;
117	117	(3) the date on which the child enrolls in a public
118	118	school, including an open-enrollment charter school; or
119	119	(4) the date on which the child is declared ineligible
120	120	for the program by the comptroller under this subchapter.
121	121	Sec. 29.356. APPLICATION TO PROGRAM. (a) A parent of an
122	122	eligible child may apply to the certified educational assistance
123	123	organization to enroll the child in the program for the following
124	124	school year. The certified educational assistance organization
125	125	shall:
126	126	(1) establish a reasonable annual deadline by which an
127	127	applicant must complete and submit an application form to
128	128	participate in the program; and
129	129	(2) on receipt of more acceptable applications for
130	130	admission under this section than available positions in the
131	131	program due to insufficient funding, fill available positions:
132	132	(A) first, by students with a disability;
133	133	(B) second, by students who are covered by
134	134	Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794);
135	135	(C) third, by members of a household with a total
136	136	annual income that is at or below 200 percent of the income
137	137	guidelines necessary to qualify for the national free or
138	138	reduced-price lunch program established under 42 U.S.C. Section
139	139	1751 et seq;
140	140	(D) fourth, by students who are enrolled in a
141	141	public school during the entire preceding school year;
142	142	(E) fifth, by all remaining applicants.
143	143	(b) The certified educational assistance organization shall
144	144	create an application form for the program and make the application
145	145	form readily available to interested parents through various
146	146	sources, including the organization's Internet website. The
147	147	application form must state the application deadline. The
148	148	organization shall ensure that the application form is capable of
149	149	being submitted to the organization electronically.
150	150	(c) The certified educational assistance organization shall
151	151	post on the organization's Internet website an applicant and
152	152	participant handbook with a description of the program, including:
153	153	(1) expenses allowed under the program under Section
154	154	29.359;
155	155	(2) a list of preapproved education service providers
156	156	and vendors of educational products under Section 29.358;
157	157	(3) the organization's expense reporting
158	158	requirements; and
159	159	(4) a description of the responsibilities of program
160	160	participants.
161	161	(d) The certified educational assistance organization shall
162	162	annually provide to each program participant the information
163	163	described by Subsection (c). The organization may provide the
164	164	information electronically.
165	165	(e) A parent of a child described by Section 29.355(a)(2)(B)
166	166	may submit an application for the eligible child and the child's
167	167	sibling concurrently. The certified educational assistance
168	168	organization shall consider concurrently the applications of
169	169	siblings who apply by the date established by the organization
170	170	under Subsection (a).
171	171	(f) The certified educational assistance organization may
172	172	not require a program participant in good standing to annually
173	173	resubmit an application for continued participation in the program.
174	174	Sec. 29.357. PARTICIPATION IN PROGRAM. To receive funding
175	175	under the program, a parent of an eligible child must agree to:
176	176	(1) spend money received through the program only for
177	177	expenses allowed under Section 29.359;
178	178	(2) share or authorize the administrator of an
179	179	assessment instrument to share with the certified educational
180	180	assistance organization the results of any assessment instrument
181	181	required to be administered to the child under Section
182	182	29.358(b)(1)(B) or other law;
183	183	(3) refrain from selling an item purchased with
184	184	program money in accordance with Section 29.359(a)(2) until the end
185	185	of the 12th month after the date the item is purchased; and
186	186	(4) notify the certified educational assistance
187	187	organization not later than 30 days after the date on which the
188	188	child:
189	189	(A) enrolls in a public school, including an
190	190	open-enrollment charter school;
191	191	(B) graduates from high school; or
192	192	(C) is no longer eligible to enroll in a public
193	193	school under Section 25.001.
194	194	Sec. 29.358. APPROVED PROVIDERS. (a) The comptroller
195	195	shall by rule establish a process for the preapproval of education
196	196	service providers and vendors of educational products for
197	197	participation in the program. The comptroller shall set a
198	198	reasonable quarterly deadline by which a provider or vendor must
199	199	submit an application.
200	200	(b) The comptroller shall approve an education service
201	201	provider or vendor of educational products for participation in the
202	202	program if the provider or vendor:
203	203	(1) for a private school, demonstrates the school's
204	204	qualification to serve program participants, including:
205	205	(A) accreditation by an organization recognized
206	206	by the Texas Private School Accreditation Commission; and
207	207	(B) annual administration of a nationally
208	208	norm-referenced assessment instrument or the appropriate
209	209	assessment instrument required under Subchapter B, Chapter 39;
210	210	(2) for a private tutor, therapist, or teaching
211	211	service:
212	212	(A) demonstrates the tutor's, therapist's, or
213	213	service's qualification to serve program participants, including
214	214	that the tutor or therapist or each employee of the service who
215	215	intends to provide services to a program participant:
216	216	(i) is certified under Subchapter B,
217	217	Chapter 21;
218	218	(ii) holds a relevant license or
219	219	accreditation issued by a state, regional, or national licensing or
220	220	accreditation organization; or
221	221	(iii) is employed in a teaching or tutoring
222	222	capacity at a higher education provider;
223	223	(B) the tutor or therapist or each employee of
224	224	the teaching service who intends to provide educational services to
225	225	a program participant either:
226	226	(i) completes a national criminal history
227	227	record information review; or
228	228	(ii) provides to the comptroller
229	229	documentation indicating that the tutor, therapist, or employee, as
230	230	applicable, has completed a national criminal history record
231	231	information review within a period established by comptroller rule;
232	232	and
233	233	(C) the tutor or therapist or each employee of
234	234	the teaching service who intends to provide educational services to
235	235	a program participant is not included in the registry under Section
236	236	22.092; or
237	237	(3) for a higher education provider, demonstrates
238	238	postsecondary accreditation.
239	239	(c) The comptroller shall review the national criminal
240	240	history record information or documentation for each private tutor,
241	241	therapist, or teaching service employee who submits information or
242	242	documentation under this section and verify that the individual is
243	243	not included in the registry under Section 22.092. The tutor,
244	244	therapist, or service must provide the comptroller with any
245	245	information requested by the comptroller to enable the comptroller
246	246	to complete the review.
247	247	(d) An education service provider or vendor of educational
248	248	products shall provide information requested by the comptroller to
249	249	verify the provider's or vendor's eligibility for preapproval under
250	250	Subsection (b). The comptroller may not approve a provider or
251	251	vendor if the comptroller cannot verify the provider's or vendor's
252	252	eligibility for preapproval.
253	253	Sec. 29.359. APPROVED EDUCATION-RELATED EXPENSES. (a)
254	254	Subject to Subsection (b), money received under the program may be
255	255	used only for the following expenses incurred by a program
256	256	participant at a preapproved education service provider or vendor
257	257	of educational products:
258	258	(1) tuition and fees;
259	259	(2) the purchase of textbooks or other instructional
260	260	materials or uniforms required by a school, higher education
261	261	provider, course, or online educational course or program in which
262	262	the child is enrolled;
263	263	(3) costs related to academic assessments;
264	264	(4) costs related to cocurricular activities;
265	265	(5) fees for transportation provided by a
266	266	fee-for-service transportation provider for the child to travel to
267	267	and from a preapproved education service provider or vendor of
268	268	educational products; and
269	269	(6) fees for educational therapies or services
270	270	provided by a practitioner or provider, only for fees that are not
271	271	covered by any federal, state, or local government benefits such as
272	272	Medicaid or the Children's Health Insurance Program (CHIP) or by
273	273	any private insurance that the child is enrolled in at the time of
274	274	receiving the therapies or services.
275	275	(b) Money received under the program may not be used to pay
276	276	any person who is a member of the program participant's household.
277	277	(c) A finding that a program participant used money
278	278	distributed under the program to pay for an expense not allowed
279	279	under Subsection (a) does not affect the validity of any payment
280	280	made by the participant for an expense that is allowed under that
281	281	subsection.
282	282	(d) Notwithstanding Subsection (a), the comptroller shall
283	283	by rule establish a process by which:
284	284	(1) program participants may be efficiently
285	285	reimbursed for expenses described by Subsection (a)(2), (3), (4),
286	286	(5), or (6) incurred from an education service provider or vendor of
287	287	educational products that is not preapproved under Section
288	288	29.358(a); and
289	289	(2) frequently used providers and vendors described by
290	290	Subdivision (1) that are in good standing for three continuous
291	291	school years may receive payment directly from an account.
292	292	Sec. 29.360. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
293	293	an eligible child shall receive each year that the child
294	294	participates in the program a payment from the state from funds
295	295	available under Section 29.353 to the child's account in an amount
296	296	equal to 90 percent of the state average maintenance and operations
297	297	revenue per student in average daily attendance for the preceding
298	298	state fiscal year.
299	299	(b) Any money remaining in a child's account at the end of a
300	300	fiscal year is carried forward to the next fiscal year unless
301	301	another provision of this subchapter mandates the closure of the
302	302	account.
303	303	(c) The parent of a child participating in the program may
304	304	make payments for the expenses of educational programs, services,
305	305	and products not covered by money in the child's account.
306	306	(d) A payment under Subsection (a) may not be financed using
307	307	federal money.
308	308	(e) Payments received under this subchapter do not
309	309	constitute taxable income to the eligible student's parent, unless
310	310	otherwise provided by federal law.
311	311	(f) Not later than November 1 of each even-numbered year,
312	312	the comptroller shall submit to the legislature:
313	313	(1) a summary of participant enrollment in the
314	314	program;
315	315	(2) the amount of cost savings accruing to the state as
316	316	a result of the program; and
317	317	(3) an estimate of the total amount of funding
318	318	required for the program for the following state fiscal biennium.
319	319	Sec. 29.361. ADMINISTRATION OF ACCOUNTS. (a) The
320	320	comptroller shall make quarterly payments to each program
321	321	participant's account in equal amounts on or before the first day of
322	322	July, October, January, and April.
323	323	(b) The comptroller may deduct an amount from each quarterly
324	324	payment to a program participant's account to cover the
325	325	comptroller's cost of administering the program. The amount
326	326	deducted may not exceed three percent of the payment.
327	327	(c) Each quarter, the comptroller shall disburse to the
328	328	certified educational assistance organization an amount from the
329	329	total amount of money appropriated for purposes of this subchapter
330	330	to cover the organization's cost of administering the program. The
331	331	total amount disbursed to the certified educational assistance
332	332	organization under this subsection for a fiscal year may not exceed
333	333	five percent of the amount appropriated for purposes of this
334	334	subchapter for that fiscal year.
335	335	(d) Before payments are made under Subsection (a) in October
336	336	and April, the certified educational assistance organization
337	337	shall:
338	338	(1) verify with the agency that each program
339	339	participant is not enrolled in a public school, including an
340	340	open-enrollment charter school; and
341	341	(2) notify the comptroller if the organization
342	342	determines that a program participant is enrolled in a public
343	343	school, including an open-enrollment charter school.
344	344	(e) On the date on which a child who participated in the
345	345	program is no longer eligible to participate in the program under
346	346	Section 29.355(b), the child's account is closed and any remaining
347	347	money is returned to the state for deposit in the Education Savings
348	348	Account Program fund.
349	349	Sec. 29.362. RANDOM AUDITING. (a) The comptroller may
350	350	contract with a private entity to randomly audit accounts and the
351	351	certified educational assistance organization as necessary to
352	352	ensure compliance with applicable law and program requirements.
353	353	(b) In conducting an audit, the comptroller or private
354	354	entity may require that a program participant or the certified
355	355	educational assistance organization provide additional information
356	356	and documentation regarding any payment made under the program.
357	357	(c) The private entity shall report to the comptroller any
358	358	violation of this subchapter or other relevant law found by the
359	359	entity during an audit conducted under this section. The
360	360	comptroller shall report the violation to:
361	361	(1) the certified educational assistance
362	362	organization;
363	363	(2) the education service provider or vendor of
364	364	educational products, as applicable; and
365	365	(3) the parent of each child participating in the
366	366	program who is affected by the violation.
367	367	Sec. 29.363. SUSPENSION OF ACCOUNT. (a) The comptroller
368	368	shall suspend the account of a program participant who fails to
369	369	remain in good standing by complying with applicable law or a
370	370	requirement of the program.
371	371	(b) On suspension of an account under Subsection (a), the
372	372	comptroller shall notify the program participant in writing that
373	373	the account has been suspended and that no additional payments may
374	374	be made from the account. The notification must specify the grounds
375	375	for the suspension and state that the participant has 30 business
376	376	days to respond and take any corrective action required by the
377	377	comptroller.
378	378	(c) On the expiration of the 30-day period under Subsection
379	379	(b), the comptroller shall:
380	380	(1) order closure of the suspended account;
381	381	(2) order temporary reinstatement of the account,
382	382	conditioned on the performance of a specified action by the program
383	383	participant; or
384	384	(3) order full reinstatement of the account.
385	385	(d) The comptroller may recover money distributed under the
386	386	program that was used for expenses not allowed under Section 29.359
387	387	from the program participant or the entity that received the money
388	388	if the program participant's account is suspended or closed under
389	389	this section.
390	390	Sec. 29.364. TUITION AND FEES; REFUND PROHIBITED. (a) An
391	391	education service provider or vendor of educational products may
392	392	not charge a child participating in the program an amount greater
393	393	than the amount charged for that service by the provider or vendor.
394	394	(b) An education service provider or vendor of educational
395	395	products receiving money distributed under the program may not in
396	396	any manner rebate, refund, or credit to or share with a program
397	397	participant, or any person on behalf of a participant, any program
398	398	money paid or owed by the participant to the provider or vendor.
399	399	Sec. 29.365. REFERRAL TO DISTRICT ATTORNEY. If the
400	400	comptroller or the certified educational assistance organization
401	401	obtains evidence of fraudulent use of an account, the comptroller
402	402	or organization shall notify the appropriate local county or
403	403	district attorney with jurisdiction over the residence of the
404	404	program participant.
405	405	Sec. 29.366. SPECIAL EDUCATION NOTICE. (a) The certified
406	406	educational assistance organization shall post on the
407	407	organization's Internet website and provide to each parent who
408	408	submits an application for the program a notice that:
409	409	(1) states that a private school is not subject to
410	410	federal and state laws regarding the provision of educational
411	411	services to a child with a disability in the same manner as a public
412	412	school; and
413	413	(2) provides information regarding rights to which a
414	414	child with a disability is entitled under federal and state law if
415	415	the child attends a public school, including:
416	416	(A) rights provided under the Individuals with
417	417	Disabilities Education Act (20 U.S.C. Section 1400 et seq.); and
418	418	(B) rights provided under Subchapter A.
419	419	(b) A private school in which a child with a disability who
420	420	is a program participant enrolls shall provide to the child's
421	421	parent a copy of the notice required under Subsection (a).
422	422	Sec. 29.367. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
423	423	AUTONOMY. (a) An education service provider or vendor of
424	424	educational products that receives money distributed under the
425	425	program is not a recipient of federal financial assistance on the
426	426	basis of receiving that money.
427	427	(b) A rule adopted or action taken related to the program by
428	428	an individual, governmental entity, court of law, or program
429	429	administrator may not:
430	430	(1) limit the independence or autonomy of an education
431	431	service provider, vendor of educational products, or program
432	432	participant;
433	433	(2) consider the actions of an education service
434	434	provider, vendor of educational products, or program participant to
435	435	be the actions of an agent of state government;
436	436	(3) limit:
437	437	(A) an education service provider's ability to
438	438	determine the methods used to educate the provider's students or to
439	439	exercise the provider's religious or institutional values; or
440	440	(B) a program participant's ability to determine
441	441	the participant's educational content or to exercise the
442	442	participant's religious values;
443	443	(4) obligate an education service provider or program
444	444	participant to act contrary to the provider's or participant's
445	445	religious or institutional values, as applicable;
446	446	(5) impose any regulation on an education service
447	447	provider, vendor of educational products, or program participant
448	448	beyond those regulations necessary to enforce the requirements of
449	449	the program; or
450	450	(6) require as a condition of receiving money
451	451	distributed under the program:
452	452	(A) an education service provider to modify the
453	453	provider's creed, practices, admissions policies, curricula,
454	454	performance standards, employment policies, or assessments; or
455	455	(B) a program participant to modify the
456	456	participant's creed, practices, curricula, performance standards,
457	457	or assessments.
458	458	(c) In a proceeding challenging a rule adopted by a state
459	459	agency or officer under this subchapter, the agency or officer has
460	460	the burden of proof to establish by clear and convincing evidence
461	461	that the rule:
462	462	(1) is necessary to implement or enforce the program
463	463	as provided by this subchapter;
464	464	(2) does not violate this section;
465	465	(3) does not impose an undue burden on a program
466	466	participant or an education service provider or vendor of
467	467	educational products that participates or applies to participate in
468	468	the program; and
469	469	(4) is the least restrictive means of accomplishing
470	470	the purpose of the program while recognizing the independence of an
471	471	education service provider to meet the educational needs of
472	472	students in accordance with the provider's religious or
473	473	institutional values.
474	474	Sec. 29.368. STUDENT RECORDS AND INFORMATION. (a) On
475	475	request by the parent of a child participating or seeking to
476	476	participate in the program, the school district or open-enrollment
477	477	charter school that the child would otherwise attend shall provide
478	478	a copy of the child's school records possessed by the district or
479	479	school, if any, to the child's parent or, if applicable, the private
480	480	school the child attends.
481	481	(b) As necessary to verify a child's eligibility for the
482	482	program, the agency shall provide to the certified educational
483	483	assistance organization any information available to the agency
484	484	requested by the organization regarding a child who participates or
485	485	seeks to participate in the program. The organization may not
486	486	retain information provided under this subsection beyond the period
487	487	necessary to determine a child's eligibility to participate in the
488	488	program.
489	489	Sec. 29.369. GIFTS, GRANTS, AND DONATIONS. The comptroller
490	490	and certified educational assistance organization may solicit and
491	491	accept gifts, grants, and donations from any public or private
492	492	source for any expenses related to the administration of the
493	493	program, including establishing the program.
494	494	Sec. 29.370. RULES; PROCEDURES. (a) The comptroller shall
495	495	adopt rules and procedures as necessary to implement, administer,
496	496	and enforce this subchapter.
497	497	(b) A rule adopted under Subsection (a) is binding on an
498	498	organization that applies for certification as an educational
499	499	assistance organization and a state or local governmental entity,
500	500	including a political subdivision, as necessary to implement,
501	501	administer, and enforce this subchapter.
502	502	Sec. 29.371. APPEAL; JUDICIAL REVIEW. (a) A program
503	503	participant may appeal to the comptroller an administrative
504	504	decision made by the comptroller or certified educational
505	505	assistance organization under this subchapter, including a
506	506	decision regarding eligibility, allowable expenses, or the
507	507	participant's removal from the program.
508	508	(b) A program participant, education service provider, or
509	509	vendor of educational products who is adversely affected or
510	510	aggrieved by a decision made by the comptroller or certified
511	511	educational assistance organization under this subchapter may file
512	512	a suit challenging the decision in a district court in the county in
513	513	which the program participant resides or the provider or vendor has
514	514	its principal place of business, as applicable.
515	515	Sec. 29.372. RIGHT TO INTERVENE IN CIVIL ACTION. (a) A
516	516	program participant, education service provider, or vendor of
517	517	educational products may intervene in any civil action challenging
518	518	the constitutionality of the program or the insurance premium tax
519	519	credit under Chapter 230, Insurance Code.
520	520	(b) A court in which a civil action described by Subsection
521	521	(a) is filed may require that all program participants, education
522	522	service providers, and vendors of educational products wishing to
523	523	intervene in the action file a joint brief. A program participant,
524	524	education service provider, or vendor of educational products may
525	525	not be required to join a brief filed on behalf of the state or a
526	526	state agency.
527	527	SECTION 3. Section 22.092(d), Education Code, is amended to
528	528	read as follows:
529	529	(d) The agency shall provide equivalent access to the
530	530	registry maintained under this section to:
531	531	(1) private schools;
532	532	(2) public schools; [and]
533	533	(3) nonprofit teacher organizations approved by the
534	534	commissioner for the purpose of participating in the tutoring
535	535	program established under Section 33.913; and
536	536	(4) the comptroller for the purpose of preapproving
537	537	education service providers and vendors of educational products
538	538	under Section 29.358 for participation in the program established
539	539	under Subchapter J, Chapter 29.
540	540	SECTION 4. Section 411.109, Government Code, is amended by
541	541	adding Subsection (c) to read as follows:
542	542	(c) The comptroller is entitled to obtain criminal history
543	543	record information maintained by the department about a person who
544	544	is a private tutor, a therapist, or an employee of a teaching
545	545	service or school who intends to provide educational services to a
546	546	child participating in the program established under Subchapter J,
547	547	Chapter 29, Education Code, and is seeking approval to receive
548	548	money distributed under that program.
549	549	SECTION 5. Subtitle B, Title 3, Insurance Code, is amended
550	550	by adding Chapter 230 to read as follows:
551	551	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
552	552	EDUCATION SAVINGS ACCOUNT PROGRAM
553	553	SUBCHAPTER A. GENERAL PROVISIONS
554	554	Sec. 230.001. DEFINITIONS. In this chapter:
555	555	(1) "Fund" means the Education Savings Account Program
556	556	fund under Section 29.353, Education Code.
557	557	(2) "State premium tax liability" means any liability
558	558	incurred by an entity under Chapters 221 through 226.
559	559	SUBCHAPTER B. CREDIT
560	560	Sec. 230.051. CREDIT. An entity may apply for a credit
561	561	against the entity's state premium tax liability in the amount and
562	562	under the conditions provided by this chapter. The comptroller
563	563	shall award credits as provided by Section 230.054.
564	564	Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
565	565	Subject to Subsections (b) and (c), the amount of an entity's credit
566	566	is equal to the lesser of the amount contributed to the fund during
567	567	the period covered by the tax report or 75 percent of the entity's
568	568	state premium tax liability for the report.
569	569	(b) For the 2024 state fiscal year, the total amount of
570	570	credits that may be awarded under this chapter may not exceed $500
571	571	million. For each subsequent state fiscal year, the total amount of
572	572	credits that may be awarded is:
573	573	(1) the same total amount of credits available under
574	574	this subsection for the previous state fiscal year, if Subdivision
575	575	(2) does not apply; or
576	576	(2) 125 percent of the total amount of credits
577	577	available under this subsection for the previous state fiscal year,
578	578	if the total amount of credits awarded in the previous state fiscal
579	579	year was at least 90 percent of the total amount of credits
580	580	available under this subsection for that fiscal year.
581	581	(c) The comptroller by rule shall prescribe procedures by
582	582	which the comptroller may allocate credits under this chapter. The
583	583	procedures must provide that credits are allocated first to
584	584	entities that received preliminary approval for a credit under
585	585	Section 230.053 and that apply under Section 230.054. The
586	586	procedures must provide that any remaining credits are allocated to
587	587	entities that apply under Section 230.054 on a first-come,
588	588	first-served basis, based on the date the contribution was
589	589	initially made.
590	590	(d) The comptroller may require an entity to notify the
591	591	comptroller of the amount the entity intends or expects to apply for
592	592	under this chapter before the beginning of a state fiscal year or at
593	593	any other time required by the comptroller.
594	594	Sec. 230.053. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
595	595	making a contribution to the fund, an entity may apply to the
596	596	comptroller for preliminary approval of a credit under this chapter
597	597	for the contribution.
598	598	(b) An entity must apply for preliminary approval on a form
599	599	provided by the comptroller that includes the amount the entity
600	600	expects to contribute and any other information the comptroller
601	601	requires.
602	602	(c) The comptroller shall grant preliminary approval for
603	603	credits under this chapter on a first-come, first-served basis,
604	604	based on the date the comptroller receives the application for
605	605	preliminary approval.
606	606	(d) The comptroller shall grant preliminary approval for a
607	607	credit under this chapter for a state fiscal year if the sum of the
608	608	amount of the credit and the total amount of all other credits
609	609	preliminarily approved under this chapter does not exceed the
610	610	amount provided by Section 230.052(b).
611	611	(e) Final award of a credit preliminarily approved under
612	612	this section remains subject to the limitations under Section
613	613	230.052(a) and all other requirements of this chapter.
614	614	Sec. 230.054. APPLICATION FOR CREDIT. (a) An entity must
615	615	apply for a credit under this chapter on or with the tax report
616	616	covering the period in which the contribution was made.
617	617	(b) The comptroller shall adopt a form for the application
618	618	for the credit. An entity must use this form in applying for the
619	619	credit.
620	620	(c) Subject to Section 230.052(c), the comptroller may
621	621	award a credit to an entity that applies for the credit under
622	622	Subsection (a) of this section if the entity is eligible for the
623	623	credit and the credit is available under Section 230.052(b). The
624	624	comptroller has broad discretion in determining whether to grant or
625	625	deny an application for a credit.
626	626	(d) The comptroller shall notify an entity in writing of the
627	627	comptroller's decision to grant or deny the application under
628	628	Subsection (a). If the comptroller denies an entity's application,
629	629	the comptroller shall include in the notice of denial the reasons
630	630	for the comptroller's decision.
631	631	(e) If the comptroller denies an entity's application under
632	632	Subsection (a), the entity may request in writing a reconsideration
633	633	of the application not later than the 10th day after the date the
634	634	notice under Subsection (d) is received. If the entity does not
635	635	request a reconsideration of the application on or before that
636	636	date, the comptroller's decision is final.
637	637	(f) An entity that requests a reconsideration under
638	638	Subsection (e) may submit to the comptroller, not later than the
639	639	30th day after the date the request for reconsideration is
640	640	submitted, additional information and documents to support the
641	641	entity's request for reconsideration.
642	642	(g) The comptroller's reconsideration of an application
643	643	under this section is not a contested case under Chapter 2001,
644	644	Government Code. The comptroller's decision on a request for
645	645	reconsideration of an application is final and is not appealable.
646	646	(h) This section does not create a cause of action to
647	647	contest a decision of the comptroller to deny an application for a
648	648	credit under this chapter.
649	649	Sec. 230.055. RULES; PROCEDURES. The comptroller shall
650	650	adopt rules and procedures to implement, administer, and enforce
651	651	this chapter.
652	652	Sec. 230.056. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
653	653	may not convey, assign, or transfer the credit allowed under this
654	654	chapter to another entity unless substantially all of the assets of
655	655	the entity are conveyed, assigned, or transferred in the same
656	656	transaction.
657	657	Sec. 230.057. NOTICE OF AVAILABILITY OF CREDIT. The
658	658	comptroller shall provide notice of the availability of the credit
659	659	under this chapter on the comptroller's Internet website, in the
660	660	instructions for insurance premium tax report forms, and in any
661	661	notice sent to an entity concerning the requirement to file an
662	662	insurance premium tax report.
663	663	SECTION 6. Subchapter J, Chapter 29, Education Code, as
664	664	added by this Act, applies beginning with the 2024-2025 school
665	665	year.
666	666	SECTION 7. An entity may apply for a credit under Chapter
667	667	230, Insurance Code, as added by this Act, only for a contribution
668	668	made on or after the effective date of this Act.
669	669	SECTION 8. Not later than November 15, 2023, the
670	670	comptroller of public accounts shall adopt rules as provided by
671	671	Section 230.055, Insurance Code, as added by this Act.
672	672	SECTION 9. Chapter 230, Insurance Code, as added by this
673	673	Act, applies only to a tax report originally due on or after the
674	674	effective date of this Act.
675	675	SECTION 10. (a) The constitutionality and other validity
676	676	under the state or federal constitution of all or any part of
677	677	Subchapter J, Chapter 29, Education Code, as added by this Act, or
678	678	Chapter 230, Insurance Code, as added by this Act, may be determined
679	679	in an action for declaratory judgment under Chapter 37, Civil
680	680	Practice and Remedies Code, in a district court in the county in
681	681	which the plaintiff resides or has its principal place of business.
682	682	(b) An order, however characterized, of a trial court
683	683	granting or denying a temporary or otherwise interlocutory
684	684	injunction or a permanent injunction on the grounds of the
685	685	constitutionality or unconstitutionality, or other validity or
686	686	invalidity, under the state or federal constitution of all or any
687	687	part of Subchapter J, Chapter 29, Education Code, as added by this
688	688	Act, or Chapter 230, Insurance Code, as added by this Act, may be
689	689	reviewed only by direct appeal to the Texas Supreme Court filed not
690	690	later than the 15th day after the date on which the order was
691	691	entered. The Texas Supreme Court shall give precedence to appeals
692	692	under this section over other matters.
693	693	(c) The direct appeal is an accelerated appeal.
694	694	(d) This section exercises the authority granted by Section
695	695	3-b, Article V, Texas Constitution.
696	696	(e) The filing of a direct appeal under this section will
697	697	automatically stay any temporary or otherwise interlocutory
698	698	injunction or permanent injunction granted in accordance with this
699	699	section pending final determination by the Texas Supreme Court,
700	700	unless the supreme court makes specific findings that the applicant
701	701	seeking such injunctive relief has pleaded and proved that:
702	702	(1) the applicant has a probable right to the relief it
703	703	seeks on final hearing;
704	704	(2) the applicant will suffer a probable injury that
705	705	is imminent and irreparable, and that the applicant has no other
706	706	adequate legal remedy; and
707	707	(3) maintaining the injunction is in the public
708	708	interest.
709	709	(f) An appeal under this section, including an
710	710	interlocutory, accelerated, or direct appeal, is governed, as
711	711	applicable, by the Texas Rules of Appellate Procedure, including
712	712	Rules 25.1(d)(6), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),
713	713	40.1(b), and 49.4.
714	714	(g) This section does not authorize an award of attorney's
715	715	fees against this state, and Section 37.009, Civil Practice and
716	716	Remedies Code, does not apply to an action filed under this section.
717	717	(h) This section does not authorize a taxpayer suit to
718	718	contest the denial of a tax credit by the comptroller of public
719	719	accounts.
720	720	SECTION 11. It is the intent of the legislature that every
721	721	provision, section, subsection, sentence, clause, phrase, or word
722	722	in this Act, and every application of the provisions in this Act to
723	723	each person or entity, are severable from each other. If any
724	724	application of any provision in this Act to any person, group of
725	725	persons, or circumstances is found by a court to be invalid for any
726	726	reason, the remaining applications of that provision to all other
727	727	persons and circumstances shall be severed and may not be affected.
728	728	SECTION 12. This Act takes effect September 1, 2023.