Texas 2023 - 88th Regular

Texas Senate Bill SB176 Compare Versions

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1	1	By: Middleton S.B. No. 176
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the establishment of the Texas Parental Empowerment
7	7	Program and an insurance premium tax credit for contributions made
8	8	for purposes of that program.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. SHORT TITLE. This Act may be cited as the Texas
11	11	Parental Empowerment Act of 2023.
12	12	SECTION 2. FINDINGS. The legislature finds that:
13	13	(a) parents should be empowered to direct the education of
14	14	their child;
15	15	(b) there is not one best educational option for all Texas
16	16	school children;
17	17	(c) children belong to their parents, not the government;
18	18	(d) the best education for Texas school children is one
19	19	directed by their parents, with all educational options made
20	20	available and accessible, wherein money follows the child to the
21	21	educational option that best meets their unique educational needs;
22	22	(e) in Espinoza v. Montana Department of Revenue(2020) and
23	23	in Carson v. Makin (2022), the United States Supreme Court found
24	24	that state prohibitions on the use of generally available state
25	25	tuition assistance programs for religious schools violates the Free
26	26	Exercise Clause of the First Amendment of the United States
27	27	Constitution; and
28	28	(f) this Act is intended to further provide for the general
29	29	diffusion of knowledge and to empower parents of students in this
30	30	state to direct the education of their children.
31	31	SECTION 3. Chapter 29, Education Code, is amended by adding
32	32	Subchapter J to read as follows:
33	33	SUBCHAPTER J. TEXAS PARENTAL EMPOWERMENT PROGRAM
34	34	Sec. 29.351. DEFINITIONS. In this subchapter:
35	35	(1) "Account" means a parental empowerment account
36	36	established under the program.
37	37	(2) "Certified educational assistance organization"
38	38	means an educational assistance organization certified under
39	39	Section 29.355 to administer the program.
40	40	(3) "Child with a disability" means a child who is
41	41	eligible to participate in a school district's special education
42	42	program under Section 29.003.
43	43	(4) "Institution of higher education" and "private or
44	44	independent institution of higher education" have the meanings
45	45	assigned by Section 61.003.
46	46	(5) "Non-enrolled student" means a student who
47	47	receives instruction as described by Section 29.916(a)(1) from a
48	48	nonpublic school.
49	49	(6) "Parent" means a resident of this state who is a
50	50	natural or adoptive parent, managing or possessory conservator,
51	51	legal guardian, custodian, or other person with legal authority to
52	52	act on behalf of a child.
53	53	(7) "Program" means the Texas Parental Empowerment
54	54	Program established under this subchapter.
55	55	(8) "Program participant" means a child and a parent
56	56	of a child enrolled in the program.
57	57	Sec. 29.352. PURPOSE. The purpose of the Texas Parental
58	58	Empowerment Program is to provide students with additional
59	59	educational options in order to achieve a general diffusion of
60	60	knowledge and to empower parents of students in this state to direct
61	61	the education of their children.
62	62	Sec. 29.353. ESTABLISHMENT OF PROGRAM. The comptroller
63	63	shall establish the Texas Parental Empowerment Program to provide
64	64	funding for approved education-related expenses of eligible
65	65	children admitted into the program.
66	66	Sec. 29.354. TEXAS PARENTAL EMPOWERMENT PROGRAM FUND. (a)
67	67	The Texas Parental Empowerment Program fund is an account in the
68	68	general revenue fund to be administered by the comptroller.
69	69	(b) The fund is composed of:
70	70	(1) money transferred to the fund under Section
71	71	29.361A(a);
72	72	(2) general revenue transferred to the fund;
73	73	(3) money appropriated to the fund;
74	74	(4) gifts, grants, and donations received under
75	75	Section 29.371;
76	76	(5) contributions to the fund for which an entity
77	77	receives a credit against the entity's state premium tax liability
78	78	under Chapter 230, Insurance Code; and
79	79	(6) any other money available for purposes of the
80	80	program.
81	81	(c) Money in the fund may be appropriated only to the
82	82	comptroller for purposes of making payments to program participants
83	83	and administering the program under this subchapter.
84	84	Sec. 29.355. SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
85	85	ORGANIZATIONS. (a) An organization may apply to the comptroller
86	86	for certification as a certified educational assistance
87	87	organization during an application period established by the
88	88	comptroller.
89	89	(b) To be eligible for certification, the organization
90	90	must:
91	91	(1) have the ability to perform the duties and
92	92	functions required of a certified educational assistance
93	93	organization under this subchapter as provided by the
94	94	organization's charter;
95	95	(2) be exempt from federal tax under Section 501(a) of
96	96	the Internal Revenue Code of 1986 by being listed as an exempt
97	97	organization in Section 501(c)(3) of that code;
98	98	(3) be in good standing with the state; and
99	99	(4) be able to administer the program, including the
100	100	ability to:
101	101	(A) accept, process, and track applications for
102	102	the program; and
103	103	(B) verify that program funding is used only for
104	104	approved education-related expenses.
105	105	(c) The comptroller shall certify at least one but no more
106	106	than three educational assistance organizations to assist in
107	107	administering the program, including by verifying:
108	108	(1) a child's eligibility for the program; and
109	109	(2) the use of funds in a program participant's account
110	110	only for purposes approved under Section 29.360.
111	111	Sec. 29.356. ELIGIBLE CHILD. (a) A child is eligible to
112	112	participate in the program if the child:
113	113	(1) is enrolled in a school district, including a
114	114	public charter school, and was enrolled in that district or public
115	115	charter school during the entire preceding school year;
116	116	(2) is entering kindergarten for the first time; or
117	117	(3) is currently participating in the Texas Parental
118	118	Empowerment Program, established by this Chapter, and participated
119	119	in the program during the preceding school year.
120	120	(b) A child who is currently not enrolled in a public
121	121	school, but is otherwise eligible to enroll in public school under
122	122	Section 25.001, is eligible for the program, subject to available
123	123	funding described by Section 29.361A.
124	124	(c) A child who establishes eligibility under this section
125	125	may participate in the program until the earliest of the following
126	126	dates:
127	127	(1) the date on which the child graduates from high
128	128	school, except as provided by Section 29.363;
129	129	(2) the date on which the child is no longer eligible
130	130	to attend a public school under Section 25.001;
131	131	(3) the date on which the child enrolls in a public
132	132	school, including an open-enrollment charter school; or
133	133	(4) the date on which the child is declared ineligible
134	134	for the program by the comptroller under this subchapter.
135	135	Sec. 29.357. APPLICATION TO PROGRAM. (a) A parent of an
136	136	eligible child may apply to a certified educational assistance
137	137	organization to enroll the child in the program for the following
138	138	school year. The parent must provide any information requested by
139	139	the organization for purposes of verifying the child's eligibility
140	140	for the program.
141	141	(b) Each certified educational assistance organization
142	142	shall create an application form for the program and make the
143	143	application form readily available to interested parents through
144	144	various sources, including the organization's Internet website.
145	145	The organization shall ensure that the application form is capable
146	146	of being submitted to the organization electronically.
147	147	(c) Each certified educational assistance organization
148	148	shall post on the organization's Internet website and provide to
149	149	each parent who submits an application form to the organization a
150	150	publication that describes the operation of the program, including:
151	151	(1) expenses allowed under the program under Section
152	152	29.360;
153	153	(2) the organization's expense reporting
154	154	requirements; and
155	155	(3) a description of the responsibilities of program
156	156	participants and the duties of the organization under this
157	157	subchapter.
158	158	(d) Subject to the availability of funding, a certified
159	159	educational assistance organization shall admit into the program
160	160	each child for whom the organization received an application under
161	161	this section if the organization verifies that the child is
162	162	eligible to participate in the program. If available funding is
163	163	insufficient to admit each eligible child into the program, the
164	164	organization shall prioritize admitting children in the following
165	165	order:
166	166	(1) children who participated in the program in the
167	167	preceding school year;
168	168	(2) siblings of children who participated in the
169	169	program in the preceding school year; and
170	170	(3) children with a disability, as defined by Section
171	171	29.351(3).
172	172	Sec. 29.358. PARTICIPATION IN PROGRAM. (a) To receive
173	173	funding under the program, a parent of an eligible child must agree
174	174	to:
175	175	(1) spend money received through the program only for
176	176	expenses allowed under Section 29.360; and
177	177	(2) notify the parent's certified educational
178	178	assistance organization not later than 30 days after the date on
179	179	which the child:
180	180	(A) enrolls in a public school, including an
181	181	open-enrollment charter school;
182	182	(B) graduates from high school; or
183	183	(C) is no longer eligible to enroll in a public
184	184	school under Section 25.001.
185	185	(b) The parent of a child participating in the program is
186	186	the trustee of the child's account.
187	187	(c) Each certified educational assistance organization
188	188	shall provide annually to each program participant for whom the
189	189	organization is responsible the publication provided under Section
190	190	29.357(c). The publication may be provided electronically.
191	191	Sec. 29.359. APPROVED PROVIDERS; PARENTAL REVIEW
192	192	COMMITTEE. (a) The comptroller shall by rule establish a parental
193	193	review committee to review applications for preapproval of
194	194	education service providers and vendors of educational products for
195	195	participation in the program. The committee shall create a process
196	196	for program participants to request the preapproval of education
197	197	service providers and vendors of educational products for
198	198	participation in the program. The comptroller shall post on the
199	199	comptroller's Internet website and provide to each certified
200	200	educational assistance organization the list of preapproved
201	201	providers and vendors.
202	202	(b) The committee is made up of nine parents of school-aged
203	203	children, appointed as follows:
204	204	(1) three members appointed by the Governor:
205	205	(A) one parent of a child enrolled in public
206	206	school;
207	207	(B) one parent of a child enrolled in a private
208	208	school;
209	209	(C) one parent of a non-enrolled child;
210	210	(2) three members appointed by the Lieutenant
211	211	Governor:
212	212	(A) one parent of a child enrolled in public
213	213	school;
214	214	(B) one parent of a child enrolled in a private
215	215	school;
216	216	(C) one parent of a non-enrolled child; and
217	217	(3) three members appointed by the Speaker of the
218	218	Texas House of Representatives:
219	219	(A) one parent of a child enrolled in public
220	220	school;
221	221	(B) one parent of a child enrolled in a private
222	222	school;
223	223	(C) one parent of a non-enrolled child.
224	224	(c) Any person required to register as a lobbyist under
225	225	Chapter 305, Government Code, for the purpose of lobbying a member
226	226	of the legislature and any person employed by a nonprofit state
227	227	association or organization that primarily represents political
228	228	subdivisions and hires or contracts with a person required to
229	229	register as a lobbyist under Chapter 305, Government Code, is
230	230	prohibited from serving on the parental review committee.
231	231	(d) The committee shall approve an education service
232	232	provider or vendor of educational products for participation in the
233	233	program no later than 30 days after receipt of a complete
234	234	application, if the provider or vendor:
235	235	(1) for a private school, executes a notarized
236	236	affidavit, with supporting documents, concerning the school's
237	237	qualification to serve program participants, including evidence
238	238	of:
239	239	(A) annual administration of a nationally
240	240	norm-referenced assessment instrument;
241	241	(B) valid certificate of occupancy;
242	242	(C) policy statements regarding:
243	243	(i) admissions;
244	244	(ii) curriculum;
245	245	(iii) safety;
246	246	(iv) student to teacher ratios; and
247	247	(v) assessments;
248	248	(D) the school's agreement that program
249	249	participants are eligible to apply for scholarships offered by the
250	250	school to the same extent as other children; and
251	251	(E) accreditation by an organization recognized
252	252	by the Texas Education Agency or accreditation by Texas Private
253	253	School Accreditation Commission;
254	254	(2) for a private tutor, therapist, or teaching
255	255	service:
256	256	(A) executes a notarized affidavit, with
257	257	supporting documents, concerning the tutor's, therapist's, or
258	258	service's qualification to serve program participants, including
259	259	evidence that the tutor or therapist or each employee of the service
260	260	who intends to provide services to a program participant:
261	261	(i) is certified under Subchapter B,
262	262	Chapter 21;
263	263	(ii) holds a relevant license or
264	264	accreditation issued by a state, regional, or national licensing or
265	265	accreditation organization; or
266	266	(iii) is employed in a teaching or tutoring
267	267	capacity at an institution of higher education or private or
268	268	independent institution of higher education; and
269	269	(B) the tutor or therapist or each employee of
270	270	the teaching service who intends to provide educational services to
271	271	a program participant either:
272	272	(i) completes a national criminal history
273	273	record information review; or
274	274	(ii) provides to the comptroller
275	275	documentation indicating that the tutor, therapist, or employee, as
276	276	applicable, has completed a national criminal history record
277	277	information review within a period established by comptroller rule;
278	278	(3) for an online educational course or program
279	279	provider, executes a notarized affidavit, with supporting
280	280	documents, concerning the provider's qualification to serve
281	281	program participants; or
282	282	(4) for any provider or vendor not described by
283	283	Subdivision (1), (2), or (3), presents any necessary supporting
284	284	documents concerning the provider's or vendor's qualification to
285	285	serve program participants.
286	286	(e) The comptroller shall review the national criminal
287	287	history record information or documentation for each private tutor,
288	288	therapist, or teaching service who submits an application. The
289	289	tutor, therapist, or service must provide the comptroller with any
290	290	information requested by the comptroller to enable the comptroller
291	291	to complete the review. The comptroller shall report the findings
292	292	of the review to the parental review committee.
293	293	(f) Each certified educational assistance organization
294	294	shall post on the organization's Internet website the list of
295	295	preapproved education service providers and vendors of educational
296	296	products provided under Subsection (a).
297	297	Sec. 29.360. APPROVED EDUCATION-RELATED EXPENSES. (a)
298	298	Subject to Subsection (b), money received under the program may be
299	299	used only for the following expenses incurred by a program
300	300	participant at a preapproved education service provider or vendor:
301	301	(1) tuition and fees:
302	302	(A) at a private school;
303	303	(B) at an institution of higher education or a
304	304	private or independent institution of higher education;
305	305	(C) for an online educational course or program;
306	306	(D) a provider or vender approved under
307	307	Subsection (b)(4);
308	308	(2) the purchase of textbooks or other instructional
309	309	materials or uniforms required by a school, institution, course, or
310	310	program described by Subdivision (1) in which the child is
311	311	enrolled;
312	312	(3) fees for services provided by a private tutor or
313	313	teaching service;
314	314	(4) fees for educational therapies or services
315	315	provided by a practitioner or provider, only for fees or portions of
316	316	fees that are not covered by any federal, state, or local government
317	317	benefits such as Medicaid or the Children's Health Insurance
318	318	Program (CHIP) or by any private insurance that the child is
319	319	enrolled in at the time of receiving the therapies or services;
320	320	(5) fees for services provided by a public school,
321	321	including individual classes and extracurricular programs;
322	322	(6) curriculum for instruction described by Section
323	323	29.916(a)(1);
324	324	(7) fees for a nationally standardized
325	325	norm-referenced achievement test, an advanced placement
326	326	examination, or any exams related to admissions to an institution
327	327	of higher education;
328	328	(8) transportation services between the residence of
329	329	the program participant and an education service provider, not to
330	330	exceed $1,000 per school year; or
331	331	(9) computer hardware and technological devices
332	332	primarily used for an educational purpose, not to exceed 10% of the
333	333	amount deposited to a program participant's account, including:
334	334	(A) calculators;
335	335	(B) personal computers;
336	336	(C) laptops;
337	337	(D) tablet devices;
338	338	(E) microscopes;
339	339	(F) telescopes; and
340	340	(G) printers.
341	341	(b) Money received under the program may not be used to pay
342	342	any person who is:
343	343	(1) related to the program participant within the
344	344	third degree of consanguinity or affinity, as determined under
345	345	Chapter 573, Government Code; or
346	346	(2) a member of the program participant's household.
347	347	(c) A finding that a program participant used money
348	348	distributed under the program to pay for an expense not allowed
349	349	under Subsection (a) does not affect the validity of any payment
350	350	made by the participant for an expense that is allowed under that
351	351	subsection.
352	352	Sec. 29.361. AMOUNT OF PAYMENT; FINANCING. (a) The
353	353	comptroller shall establish and maintain an account for each
354	354	program participant.
355	355	(b) Each year that the child participates in the program a
356	356	payment from the state to the program participant's account shall
357	357	be made in an amount that is equal to the state average maintenance
358	358	and operations expenditures per student in average daily attendance
359	359	for the preceding state fiscal year, as specified in Section
360	360	29.361A.
361	361	(c) Any money remaining in a program participant's account
362	362	at the end of a fiscal year is carried forward to the next fiscal
363	363	year unless another provision of this subchapter mandates the
364	364	closure of the account.
365	365	(d) The parent of a child participating in the program may
366	366	make payments for the expenses of educational programs, services,
367	367	and products not covered by money in the program participant's
368	368	account.
369	369	(e) A payment under this section may not be financed using
370	370	federal money.
371	371	(f) Not later than November 1 of each even-numbered year,
372	372	the comptroller shall submit to the legislature an estimate of the
373	373	total amount of funding required for the program for the following
374	374	state fiscal biennium.
375	375	Sec. 29.361A. SOURCES OF FUNDING. (a) For students
376	376	eligible to participate under Section 29.356(a), the comptroller
377	377	shall transfer an amount that is equal to the state average
378	378	maintenance and operations expenditures per student in average
379	379	daily attendance for the preceding state fiscal year from the
380	380	foundation school fund to be deposited in the account of a program
381	381	participant, described by Section 29.365(a).
382	382	(b) For students eligible to participate under Section
383	383	29.356(b), the comptroller shall deposit an amount equal to the
384	384	state average maintenance and operations expenditures per student
385	385	in average daily attendance for the preceding state fiscal year
386	386	from funds described by Sections 29.354(b)(2), (3), (4), (5), and
387	387	(6).
388	388	(c) Nothing in this section authorizes the use of federal
389	389	funds for the program.
390	390	Sec. 29.362. ADMINISTRATION OF ACCOUNTS. (a) The
391	391	comptroller shall make payments as necessary to each program
392	392	participant's account on or before the first day of the month.
393	393	(b) The comptroller may not deduct any amount from each
394	394	quarterly payment to a program participant's account to cover the
395	395	comptroller's cost of administering the program.
396	396	(c) The comptroller may use funds made available for the
397	397	program to cover the comptroller's cost of administering the
398	398	program.
399	399	(d) The comptroller shall disburse to each certified
400	400	educational assistance organization, as necessary, an amount from
401	401	the total amount of money appropriated for purposes of this
402	402	subchapter to cover the organization's cost of administering the
403	403	program. The total amount disbursed to certified educational
404	404	assistance organizations under this subsection for a fiscal year
405	405	may not exceed five percent of the amount appropriated for purposes
406	406	of this subchapter for that fiscal year.
407	407	(e) Before each payment is made under Subsection (a), each
408	408	certified educational assistance organization shall:
409	409	(1) compare the list of program participants for whom
410	410	the organization is responsible with public school enrollment lists
411	411	maintained by the agency; and
412	412	(2) notify the comptroller if the organization
413	413	determines that a program participant is enrolled in a public
414	414	school, including an open-enrollment charter school.
415	415	(f) Except as provided by Section 29.363, on the date on
416	416	which a child who participated in the program is no longer eligible
417	417	to participate in the program under Section 29.356(c), the child's
418	418	account is closed and any remaining money is returned to the state
419	419	for deposit in the Texas Parental Empowerment Program fund to be
420	420	used for program participants described by Section 29.356(b).
421	421	Sec. 29.363. APPLICATION FOR PROGRAM EXTENSION. (a) Each
422	422	certified educational assistance organization shall develop a form
423	423	pursuant to this section.
424	424	(b) A program participant may submit an application form to
425	425	the program participant's organization requesting an extension on
426	426	the use of funds remaining in the program participant's account for
427	427	an approved purpose, including:
428	428	(1) fees and tuition for:
429	429	(A) occupational licensing and certification;
430	430	(B) occupational licensing and certification
431	431	courses;
432	432	(C) enrollment in institutions of higher
433	433	education, including career schools and colleges as defined by
434	434	Section 132.001;
435	435	(2) the purchase of textbooks or other instructional
436	436	materials or uniforms required by a school, institution, course, or
437	437	program described by Subdivision (1) in which the program
438	438	participant is expected to be enrolled.
439	439	(c) The certified educational assistance organization shall
440	440	approve an extension of the program participants account if:
441	441	(1) the program participant has submitted the
442	442	application form to the organization no later than 30 days before
443	443	the program participant graduates high school or receives an
444	444	equivalent degree;
445	445	(2) the program participant has provided the
446	446	organization with documentation regarding the intended use of the
447	447	funds remaining in the program participant's account; and
448	448	(3) the intended use of the funds remaining in the use
449	449	of the participant's account are an approved purpose pursuant to
450	450	subsection (b).
451	451	(d) Each certified educational assistance organization
452	452	shall notify the comptroller of the program participants for which
453	453	the organization has approved the application for program extension
454	454	no later than 30 days after the program participant has submitted
455	455	the application for program extension.
456	456	(e) The certified educational assistance organization shall
457	457	notify the program participant in writing no later than 30 days
458	458	after the program participant has submitted the application that
459	459	their application for program extension has been approved. If the
460	460	application for program extension has been denied, the organization
461	461	shall notify the program participant in writing no later than 30
462	462	days after the program participant has submitted the application
463	463	that their application has been denied. The notification of denial
464	464	must specify the grounds for denial.
465	465	(f) An extension of the program participant's account does
466	466	not entitle the program participant to additional deposits by the
467	467	comptroller to the program participant's account, as described by
468	468	Section 29.362.
469	469	(g) Only the funds remaining in the program participant's
470	470	account on the day the program participant graduates high school or
471	471	receives an equivalent degree shall be made available to the
472	472	program participant, pursuant to this section.
473	473	Sec. 29.364. RANDOM AUDITING. (a) The comptroller may
474	474	contract with a private entity to randomly audit accounts and the
475	475	certified educational assistance organizations as necessary to
476	476	ensure compliance with applicable law and the requirements of the
477	477	program.
478	478	(b) In conducting an audit, the comptroller or private
479	479	entity may require that a program participant or certified
480	480	educational assistance organization provide additional information
481	481	and documentation regarding any payment made under the program.
482	482	(c) The private entity shall report to the comptroller any
483	483	violation of this subchapter or other relevant law found by the
484	484	entity during an audit conducted under this section.
485	485	Sec. 29.365. SUSPENSION OF ACCOUNT. (a) The comptroller
486	486	shall suspend the account of a program participant who fails to
487	487	comply with applicable law or a requirement of the program.
488	488	(b) On suspension of an account under Subsection (a), the
489	489	comptroller shall notify the program participant in writing that
490	490	the account has been suspended and that no additional payments may
491	491	be made from the account. The notification must specify the grounds
492	492	for the suspension and state that the participant has 10 business
493	493	days to respond and must take any corrective action required by the
494	494	comptroller within the timeframe required by the comptroller.
495	495	(c) On the expiration of the 10-day period under Subsection
496	496	(b), the comptroller shall:
497	497	(1) order permanent closure of the suspended account
498	498	and declare the program participant ineligible for the program;
499	499	(2) order temporary reinstatement of the account,
500	500	conditioned on the performance of a specified action by the
501	501	participant; or
502	502	(3) order full reinstatement of the account.
503	503	(d) The comptroller may recover money distributed under the
504	504	program that was used for expenses not allowed under Section 29.360
505	505	from the program participant or the entity that received the money
506	506	if the participant's account is suspended or closed under this
507	507	section.
508	508	Sec. 29.366. TUITION AND FEES; REFUND PROHIBITED. (a) An
509	509	education service provider may not charge a child participating in
510	510	the program an amount greater than the standard amount charged for
511	511	that service by the provider.
512	512	(b) An education service provider or a vendor of educational
513	513	products receiving money distributed under the program may not in
514	514	any manner rebate, refund, or credit to or share with a program
515	515	participant, or any person on behalf of a participant, any program
516	516	money paid or owed by the participant to the provider or vendor.
517	517	Sec. 29.367. REFERRAL TO ATTORNEY GENERAL. (a) If the
518	518	comptroller or a certified educational assistance organization
519	519	obtains evidence of fraudulent use of an account, the comptroller
520	520	or organization may refer the case to the attorney general for
521	521	investigation.
522	522	(b) With the consent of the appropriate local county or
523	523	district attorney, the attorney general has concurrent
524	524	jurisdiction with the consenting local prosecutor to prosecute an
525	525	offense referred to the attorney general under Subsection (a).
526	526	Sec. 29.368. SPECIAL EDUCATION NOTICE. (a) Each certified
527	527	educational assistance organization shall post on the
528	528	organization's Internet website and provide to each parent who
529	529	submits an application for the program on behalf of a child with a
530	530	disability a notice that:
531	531	(1) states that a private school is not subject to laws
532	532	regarding the provision of educational services in the same manner
533	533	as a public school, and a child with a disability attending a
534	534	private school may not receive the services a child with a
535	535	disability attending a public school is entitled to receive under
536	536	federal and state law; and
537	537	(2) provides information regarding rights to which a
538	538	child with a disability is entitled under federal and state law if
539	539	the child attends a public school, including:
540	540	(A) rights provided under the Individuals with
541	541	Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
542	542	including:
543	543	(i) an individualized education program;
544	544	(ii) educational services provided in the
545	545	least restrictive environment;
546	546	(iii) instruction from certified teachers;
547	547	(iv) due process hearings to ensure proper
548	548	and full implementation of an individualized education program;
549	549	(v) transition and planning services; and
550	550	(vi) supplementary aids and services;
551	551	(B) rights provided under Subchapter A; and
552	552	(C) other rights provided under federal or state
553	553	law.
554	554	(b) A private school in which a child with a disability who
555	555	is participating in the program enrolls shall provide to the
556	556	child's parent a copy of the notice required under Subsection (a).
557	557	Sec. 29.369. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
558	558	AUTONOMY. (a) An education service provider or vendor of
559	559	educational products that receives money distributed under the
560	560	program is not an agent of the state or federal government.
561	561	(b) The program does not expand the regulatory authority of
562	562	the state to impose any additional regulation on an education
563	563	service provider or vendor of educational products except those
564	564	reasonably necessary to prevent fraudulent use of program funds.
565	565	(c) No school district or municipality has the regulatory
566	566	authority to impose any regulation on an education service
567	567	provider, vendor of educational products, or program participants.
568	568	(d) An education service provider may not be required to
569	569	modify the provider's sincerely held religious beliefs, statement
570	570	of beliefs, creed, practices, admissions policies, curriculum,
571	571	performance standards, or assessments, as applicable, to receive
572	572	money distributed under the program.
573	573	(e) The curriculum or assessment requirements, performance
574	574	standards, practices, or creed of the education program provided to
575	575	non-enrolled students may not be required to be changed in order for
576	576	the non-enrolled student to participate in the program.
577	577	(f) With respect to a non-enrolled student's education
578	578	program, nothing in this subchapter shall be construed to permit an
579	579	agency of this state, a public school district, or any other
580	580	governmental body to exercise control, regulatory authority, or
581	581	supervision over a non-enrolled student or parent or person
582	582	standing in parental relation to a non-enrolled student beyond the
583	583	control, regulatory authority, or supervision in effect on January
584	584	1, 2023.
585	585	(g) In any proceeding challenging a rule adopted by a state
586	586	agency or officer under this subchapter, the agency or officer has
587	587	the burden of proof to establish that the rule:
588	588	(1) is necessary to implement or enforce the program
589	589	as provided by this subchapter; and
590	590	(2) does not impose an undue burden on a program
591	591	participant or an education service provider or vendor of
592	592	educational products that receives or seeks to receive money
593	593	distributed under the program.
594	594	Sec. 29.370. STUDENT RECORDS AND INFORMATION. (a) On
595	595	request by the parent of a child participating or seeking to
596	596	participate in the program, the school district or open-enrollment
597	597	charter school that the child would otherwise attend shall provide
598	598	a copy of the child's school records possessed by the district or
599	599	school, if any, to the child's parent or, if applicable, the private
600	600	school the child attends.
601	601	(b) The agency shall provide to each certified educational
602	602	assistance organization any information available to the agency
603	603	requested by the organization regarding a child who participates or
604	604	seeks to participate in the program. The organization may not
605	605	retain information provided under this subsection beyond the period
606	606	necessary to determine a child's eligibility to participate in the
607	607	program.
608	608	Sec. 29.371. GIFTS, GRANTS, AND DONATIONS. The comptroller
609	609	may solicit and accept gifts, grants, and donations from any public
610	610	or private source for any expenses related to the administration of
611	611	the program, including the initial implementation of the program.
612	612	Sec. 29.372. RULES; PROCEDURES. (a) The comptroller shall
613	613	adopt rules and procedures only as necessary to implement,
614	614	administer, and enforce this subchapter, in accordance with Section
615	615	29.359.
616	616	(b) A rule adopted under Subsection (a) is binding on an
617	617	organization that applies for certification as an educational
618	618	assistance organization and a state or local governmental entity,
619	619	including a political subdivision, as necessary to implement,
620	620	administer, and enforce this subchapter.
621	621	Sec. 29.373 PARENTAL AND STUDENT RIGHT TO INTERVENE IN
622	622	CIVIL ACTION. (a) A program participant may intervene in any civil
623	623	action challenging the constitutionality of the program or the
624	624	insurance premium tax credit under Chapter 230, Insurance Code.
625	625	(b) A court in which a civil action described by Subsection
626	626	(a) is filed may require that all program participants wishing to
627	627	intervene in the action file a joint brief. A program participant
628	628	may not be required to join a brief filed on behalf of the state or a
629	629	state agency.
630	630	SECTION 4. Section 411.109, Government Code, is amended by
631	631	adding Subsection (c) to read as follows:
632	632	(c) The comptroller is entitled to obtain criminal history
633	633	record information maintained by the department about a person who
634	634	is a private tutor, a therapist, or an employee of a teaching
635	635	service who intends to provide educational services to a child
636	636	participating in the program established under Subchapter J,
637	637	Chapter 29, Education Code, and is seeking approval to receive
638	638	money distributed under that program.
639	639	SECTION 5. Subtitle B, Title 3, Insurance Code, is amended
640	640	by adding Chapter 230 to read as follows:
641	641	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
642	642	TEXAS PARENTAL EMPOWERMENT PROGRAM
643	643	SUBCHAPTER A. GENERAL PROVISIONS
644	644	Sec. 230.001. DEFINITIONS. In this chapter:
645	645	(1) "Fund" means the Texas Parental Empowerment
646	646	Program fund under Section 29.354, Education Code.
647	647	(2) "State premium tax liability" means any liability
648	648	incurred by an entity under Chapters 221 through 226.
649	649	SUBCHAPTER B. CREDIT
650	650	Sec. 230.051. CREDIT. An entity may apply for a credit
651	651	against the entity's state premium tax liability in the amount and
652	652	under the conditions provided by this chapter. The comptroller
653	653	shall award credits as provided by Section 230.053.
654	654	Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
655	655	Subject to Subsections (b) and (c), the amount of an entity's credit
656	656	is equal to the amount contributed to the fund during the period
657	657	covered by the tax report or 100 percent of the entity's state
658	658	premium tax liability for the report.
659	659	(b) For the 2024 state fiscal year, the total amount of
660	660	credits that may be awarded under this chapter may not exceed $200
661	661	million. For each subsequent state fiscal year, the total amount of
662	662	credits that may be awarded is:
663	663	(1) the same total amount of credits available under
664	664	this subsection for the previous state fiscal year, if Subdivision
665	665	(2) does not apply; or
666	666	(2) 125 percent of the total amount of credits
667	667	available under this subsection for the previous state fiscal year,
668	668	if the total amount of credits awarded in the previous state fiscal
669	669	year was at least 90 percent of the total amount of credits
670	670	available under this subsection for that fiscal year.
671	671	(c) The comptroller by rule shall prescribe procedures by
672	672	which the comptroller may allocate credits under this chapter. The
673	673	procedures must provide that credits are allocated first to
674	674	entities that received preliminary approval for a credit under
675	675	Section 230.0525 and that apply under Section 230.053. The
676	676	procedures must provide that any remaining credits are allocated to
677	677	entities that apply under Section 230.053 on a first-come,
678	678	first-served basis, based on the date the contribution was
679	679	initially made.
680	680	(d) The comptroller may require an entity to notify the
681	681	comptroller of the amount the entity intends or expects to apply for
682	682	under this chapter before the beginning of a state fiscal year or at
683	683	any other time required by the comptroller.
684	684	Sec. 230.0525. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
685	685	making a contribution to the fund, an entity may apply to the
686	686	comptroller for preliminary approval of a credit under this chapter
687	687	for the contribution.
688	688	(b) An entity must apply for preliminary approval on a form
689	689	provided by the comptroller that includes the amount the entity
690	690	expects to contribute and any other information the comptroller
691	691	requires.
692	692	(c) The comptroller shall grant preliminary approval for
693	693	credits under this chapter on a first-come, first-served basis,
694	694	based on the date the comptroller receives the application for
695	695	preliminary approval.
696	696	(d) The comptroller shall grant preliminary approval for a
697	697	credit under this chapter for a state fiscal year if the sum of the
698	698	amount of the credit and the total amount of all other credits
699	699	preliminarily approved under this chapter does not exceed the
700	700	amount provided by Section 230.052(b).
701	701	(e) Final award of a credit preliminarily approved under
702	702	this section remains subject to the limitations under Section
703	703	230.052(a) and all other requirements of this chapter.
704	704	Sec. 230.053. APPLICATION FOR CREDIT. (a) An entity must
705	705	apply for a credit under this chapter on or with the tax report
706	706	covering the period in which the contribution was made.
707	707	(b) The comptroller shall adopt a form for the application
708	708	for the credit. An entity must use this form in applying for the
709	709	credit.
710	710	(c) Subject to Section 230.052(c), the comptroller may
711	711	award a credit to an entity that applies for the credit under
712	712	Subsection (a) if the entity is eligible for the credit and the
713	713	credit is available under Section 230.052(b). The comptroller has
714	714	broad discretion in determining whether to grant or deny an
715	715	application for a credit.
716	716	(d) The comptroller shall notify an entity in writing of the
717	717	comptroller's decision to grant or deny the application under
718	718	Subsection (a). If the comptroller denies an entity's application,
719	719	the comptroller shall include in the notice of denial the reasons
720	720	for the comptroller's decision.
721	721	(e) If the comptroller denies an entity's application under
722	722	Subsection (a), the entity may request in writing a reconsideration
723	723	of the application not later than the 10th day after the date the
724	724	notice under Subsection (d) is received. If the entity does not
725	725	request a reconsideration of the application on or before that
726	726	date, the comptroller's decision is final.
727	727	(f) An entity that requests a reconsideration under
728	728	Subsection (e) may submit to the comptroller, not later than the
729	729	30th day after the date the request for reconsideration is
730	730	submitted, additional information and documents to support the
731	731	entity's request for reconsideration.
732	732	(g) The comptroller's reconsideration of an application
733	733	under this section is not a contested case under Chapter 2001,
734	734	Government Code. The comptroller's decision on a request for
735	735	reconsideration of an application is final and is not appealable.
736	736	(h) This section does not create a cause of action to
737	737	contest a decision of the comptroller to deny an application for a
738	738	credit under this chapter.
739	739	Sec. 230.054. RULES; PROCEDURES. The comptroller shall
740	740	adopt rules and procedures to implement, administer, and enforce
741	741	this chapter.
742	742	Sec. 230.055. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
743	743	may not convey, assign, or transfer the credit allowed under this
744	744	chapter to another entity unless all of the assets of the entity are
745	745	conveyed, assigned, or transferred in the same transaction.
746	746	Sec. 230.056. NOTICE OF AVAILABILITY OF CREDIT. The
747	747	comptroller shall provide notice of the availability of the credit
748	748	under this chapter on the comptroller's Internet website, in the
749	749	instructions for insurance premium tax report forms, and in any
750	750	notice sent to an entity concerning the requirement to file an
751	751	insurance premium tax report.
752	752	SECTION 6. Chapter 30, Civil Practice and Remedies Code, is
753	753	amended by adding Section 30.023 to read as follows:
754	754	Sec. 30.023. AWARD OF ATTORNEY'S FEES IN ACTIONS
755	755	CHALLENGING CERTAIN EDUCATION LAWS. (a) Notwithstanding any other
756	756	law, any person, including an entity, attorney, or law firm, who
757	757	seeks declaratory or injunctive relief to prevent this state, a
758	758	political subdivision, any governmental entity or public official
759	759	in this state, or any person in this state from enforcing any
760	760	statute, ordinance, rule, regulation, or any other type of law that
761	761	empowers parents to direct their child's education, including money
762	762	following the child to any educational option the parent elects and
763	763	the use of a insurance premium tax credit program to fund in whole
764	764	or in part a parental empowerment program, in any state or federal
765	765	court, or that represents any litigant seeking such relief in any
766	766	state or federal court, is jointly and severally liable to pay the
767	767	costs and attorney's fees of the prevailing party.
768	768	(b) For purposes of this section, a party is considered a
769	769	prevailing party if a state or federal court:
770	770	(1) dismisses any claim or cause of action brought
771	771	against the party that seeks the declaratory or injunctive relief
772	772	described by Subsection (a), regardless of the reason for the
773	773	dismissal; or
774	774	(2) enters judgment in the party's favor on any such
775	775	claim or cause of action.
776	776	(c) Regardless of whether a prevailing party sought to
777	777	recover costs or attorney's fees in the underlying action, a
778	778	prevailing party under this section may bring a civil action to
779	779	recover costs and attorney's fees against a person, including an
780	780	entity, attorney, or law firm, that sought declaratory or
781	781	injunctive relief described by Subsection (a) not later than the
782	782	third anniversary of the date on which, as applicable:
783	783	(1) the dismissal or judgment described by Subsection
784	784	(b) becomes final on the conclusion of appellate review; or
785	785	(2) the time for seeking appellate review expires.
786	786	(d) It is not a defense to an action brought under
787	787	Subsection (c) that:
788	788	(1) a prevailing party under this section failed to
789	789	seek recovery of costs or attorney's fees in the underlying action;
790	790	(2) the court in the underlying action declined to
791	791	recognize or enforce the requirements of this section; or
792	792	(3) the court in the underlying action held that any
793	793	provisions of this section are invalid, unconstitutional, or
794	794	preempted by federal law, notwithstanding the doctrines of issue or
795	795	claim preclusion.
796	796	SECTION 7. Subchapter J, Chapter 29, Education Code, as
797	797	added by this Act, applies beginning with the 2024-2025 school
798	798	year.
799	799	SECTION 8. An entity may apply for a credit under Chapter
800	800	230, Insurance Code, as added by this Act, only for a contribution
801	801	made on or after the effective date of this Act.
802	802	SECTION 9. Not later than February 15, 2024, the
803	803	comptroller of public accounts shall adopt rules as provided by
804	804	Section 230.054, Insurance Code, as added by this Act.
805	805	SECTION 10. Chapter 230, Insurance Code, as added by this
806	806	Act, applies only to a tax report originally due on or after the
807	807	effective date of this Act.
808	808	SECTION 11. (a) The constitutionality and other validity
809	809	under the state or federal constitution of all or any part of
810	810	Subchapter J, Chapter 29, Education Code, as added by this Act, or
811	811	Chapter 230, Insurance Code, as added by this Act, may be determined
812	812	in an action for declaratory judgment in a district court in Travis
813	813	County under Chapter 37, Civil Practice and Remedies Code, except
814	814	that this section does not authorize an award of attorney's fees
815	815	against this state and Section 37.009, Civil Practice and Remedies
816	816	Code, does not apply to an action filed under this section. This
817	817	section does not authorize a taxpayer suit to contest the denial of
818	818	a tax credit by the comptroller of public accounts.
819	819	(b) An appeal of a declaratory judgment or order, however
820	820	characterized, of a district court, including an appeal of the
821	821	judgment of an appellate court, holding or otherwise determining
822	822	that all or any part of Subchapter J, Chapter 29, Education Code, as
823	823	added by this Act, or Chapter 230, Insurance Code, as added by this
824	824	Act, is constitutional or unconstitutional, or otherwise valid or
825	825	invalid, under the state or federal constitution is an accelerated
826	826	appeal.
827	827	(c) If the judgment or order is interlocutory, an
828	828	interlocutory appeal may be taken from the judgment or order and is
829	829	an accelerated appeal.
830	830	(d) A district court in Travis County may grant or deny a
831	831	temporary or otherwise interlocutory injunction or a permanent
832	832	injunction on the grounds of the constitutionality or
833	833	unconstitutionality, or other validity or invalidity, under the
834	834	state or federal constitution of all or any part of Subchapter J,
835	835	Chapter 29, Education Code, as added by this Act, or Chapter 230,
836	836	Insurance Code, as added by this Act.
837	837	(e) There is a direct appeal to the Texas Supreme Court from
838	838	an order, however characterized, of a trial court granting or
839	839	denying a temporary or otherwise interlocutory injunction or a
840	840	permanent injunction on the grounds of the constitutionality or
841	841	unconstitutionality, or other validity or invalidity, under the
842	842	state or federal constitution of all or any part of Subchapter J,
843	843	Chapter 29, Education Code, as added by this Act, or Chapter 230,
844	844	Insurance Code, as added by this Act.
845	845	(f) The direct appeal is an accelerated appeal.
846	846	(g) This section exercises the authority granted by Section
847	847	3-b, Article V, Texas Constitution.
848	848	(h) The filing of a direct appeal under this section will
849	849	automatically stay any temporary or otherwise interlocutory
850	850	injunction or permanent injunction granted in accordance with this
851	851	section pending final determination by the Texas Supreme Court,
852	852	unless the supreme court makes specific findings that the applicant
853	853	seeking such injunctive relief has pleaded and proved that:
854	854	(1) the applicant has a probable right to the relief it
855	855	seeks on final hearing; and
856	856	(2) the applicant will suffer a probable injury that
857	857	is imminent and irreparable, and that the applicant has no other
858	858	adequate legal remedy.
859	859	(i) An appeal under this section, including an
860	860	interlocutory, accelerated, or direct appeal, is governed, as
861	861	applicable, by the Texas Rules of Appellate Procedure, including
862	862	Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
863	863	38.6(a) and (b), 40.1(b), and 49.4.
864	864	SECTION 12. If any provision of this Act or its application
865	865	to any person or circumstance is held invalid, the invalidity does
866	866	not affect other provisions or applications of this Act that can be
867	867	given effect without the invalid provision or application, and to
868	868	this end the provisions of this Act are declared severable.
869	869	SECTION 13. This Act takes effect January 1, 2024.