Texas 2023 88th 3rd C.S.

Texas Senate Bill SB1 Comm Sub / Bill

Filed 10/10/2023

                    By: Creighton S.B. No. 1
 (In the Senate - Filed October 9, 2023; October 9, 2023,
 read first time and referred to Committee on Education;
 October 10, 2023, reported favorably by the following vote:
 Yeas 10, Nays 3; October 10, 2023, sent to printer.)
Click here to see the committee vote


 A BILL TO BE ENTITLED
 AN ACT
 relating to the establishment of an education savings account
 program.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  The purpose of this Act is to:
 (1)  provide additional educational options to assist
 families in this state in exercising the right to direct the
 educational needs of their children; and
 (2)  achieve a general diffusion of knowledge.
 SECTION 2.  Chapter 29, Education Code, is amended by adding
 Subchapter J to read as follows:
 SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
 Sec. 29.351.  DEFINITIONS. In this subchapter:
 (1)  "Account" means an education savings account
 established under the program.
 (2)  "Certified educational assistance organization"
 means an organization certified under Section 29.354 to support the
 administration of the program.
 (3)  "Child with a disability" means a child who is
 eligible to participate in a school district's special education
 program under Section 29.003.
 (4)  "Higher education provider" means an institution
 of higher education or a private or independent institution of
 higher education, as those terms are defined by Section 61.003.
 (5)  "Parent" means a resident of this state who is a
 natural or adoptive parent, managing or possessory conservator,
 legal guardian, custodian, or other person with legal authority to
 act on behalf of a child.
 (6)  "Program" means the program established under this
 subchapter.
 (7)  "Program participant" means a child or a parent of
 a child enrolled in the program.
 Sec. 29.352.  ESTABLISHMENT OF PROGRAM. The comptroller
 shall establish a program to provide funding for approved
 education-related expenses of children participating in the
 program.
 Sec. 29.353.  PROGRAM FUND. (a) The program fund is an
 account in the general revenue fund to be administered by the
 comptroller.
 (b)  The fund is composed of:
 (1)  general revenue transferred to the fund;
 (2)  money appropriated to the fund;
 (3)  gifts, grants, and donations received under
 Section 29.370; and
 (4)  any other money available for purposes of the
 program.
 (c)  Money in the fund may be appropriated only for the uses
 specified by this subchapter.
 Sec. 29.354.  SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
 ORGANIZATIONS. (a) An organization may apply to the comptroller
 for certification as a certified educational assistance
 organization during an application period established by the
 comptroller.
 (b)  To be eligible for certification, an organization must:
 (1)  have the ability to perform the duties and
 functions required of a certified educational assistance
 organization under this subchapter;
 (2)  be in good standing with the state; and
 (3)  be able to assist the comptroller in administering
 the program, including the ability to:
 (A)  accept, process, and track applications for
 the program;
 (B)  assist prospective applicants, applicants,
 and program participants with finding preapproved education
 service providers and vendors of educational products;
 (C)  accept and process payments for approved
 education-related expenses; and
 (D)  verify that program funding is used only for
 approved education-related expenses.
 (c)  The comptroller may certify not more than five
 educational assistance organizations to support the administration
 of the program, including by:
 (1)  administering:
 (A)  the application process under Section
 29.356; and
 (B)  the program expenditures process under
 Section 29.360; and
 (2)  assisting prospective applicants, applicants, and
 program participants with understanding approved education-related
 expenses and finding preapproved education service providers and
 vendors of educational products.
 Sec. 29.355.  ELIGIBLE CHILD. (a) A child is eligible to
 participate in the program and may, subject to available funding,
 enroll in the program for the semester following the semester in
 which the child's application is submitted under Section 29.356 if
 the child is eligible to attend a public school under Section 25.001
 and either:
 (1)  was enrolled in a public school in this state for
 at least 90 percent of the school year preceding the school year for
 which the child applies to enroll in the program;
 (2)  is enrolling in prekindergarten or kindergarten
 for the first time; or
 (3)  attended a private school on a full-time basis for
 the preceding school year.
 (b)  A child who establishes eligibility under this section
 may, subject to available funding and the requirements of this
 subchapter, participate in the program until the earliest of the
 following dates:
 (1)  the date on which the child graduates from high
 school;
 (2)  the date on which the child is no longer eligible
 to attend a public school under Section 25.001;
 (3)  the date on which the child enrolls in a public
 school, including an open-enrollment charter school, in a manner in
 which the child will be counted toward the school's average daily
 attendance for purposes of the allocation of funding under the
 foundation school program; or
 (4)  the date on which the child is declared ineligible
 for the program by the comptroller under this subchapter.
 Sec. 29.356.  APPLICATION TO PROGRAM. (a) A parent of an
 eligible child may apply to a certified educational assistance
 organization to enroll the child in the program for the following
 semester. The comptroller shall establish quarterly deadlines by
 which an applicant must complete and submit an application form to
 participate in the program.
 (b)  On receipt of more acceptable applications during an
 application period for admission under this section than available
 positions in the program due to insufficient funding, a certified
 educational assistance organization shall, at the direction of the
 comptroller, fill the available positions by lottery as follows:
 (1)  for not more than 40 percent of available
 positions in the program, children described by Section
 29.355(a)(1) or (2) who are educationally disadvantaged;
 (2)  for not more than 30 percent of the available
 positions in the program, children described by Section
 29.355(a)(1) or (2) who are members of a household with a total
 annual income that is above 185 percent of the federal poverty
 guidelines and below 500 percent of the federal poverty guidelines;
 (3)  for not more than 20 percent of the available
 positions in the program, children with a disability described by
 Section 29.355(a)(1) or (2); and
 (4)  for any remaining available positions in the
 program, all other applicants not described by Subdivision (1),
 (2), or (3).
 (c)  The comptroller shall create an application form for the
 program and each certified educational assistance organization
 shall make the application form readily available through various
 sources, including the organization's Internet website. The
 application form must state the quarterly application deadlines
 established by the comptroller under Subsection (a). Each
 organization shall ensure that the application form, including any
 required supporting document, is capable of being submitted to the
 organization electronically.
 (d)  A certified educational assistance organization shall
 post on the organization's Internet website an applicant and
 participant handbook with a description of the program, including:
 (1)  expenses allowed under the program under Section
 29.359;
 (2)  a list of preapproved education service providers
 and vendors of educational products under Section 29.358;
 (3)  a description of the application process under
 this section and the program expenditures process under Section
 29.360; and
 (4)  a description of the responsibilities of program
 participants.
 (e)  A certified educational assistance organization shall
 annually provide to the parent of each child participating in the
 program the information described by Subsection (d). The
 organization may provide the information electronically.
 (f)  A certified educational assistance organization:
 (1)  may require the parent of a child participating in
 the program to submit annual notice regarding the parent's intent
 for the child to continue participating in the program for the next
 school year; and
 (2)  may not require a program participant in good
 standing to annually resubmit an application for continued
 participation in the program.
 Sec. 29.357.  PARTICIPATION IN PROGRAM. To receive funding
 under the program, a parent of a child participating in the program
 must agree to:
 (1)  spend money received through the program only for
 expenses allowed under Section 29.359;
 (2)  share or authorize the administrator of an
 assessment instrument to share with the program participant's
 certified educational assistance organization the results of any
 assessment instrument required to be administered to the child
 under Section 29.358(b)(1)(B) or other law;
 (3)  refrain from selling an item purchased with
 program money;
 (4)  notify the program participant's certified
 educational assistance organization not later than 30 business days
 after:
 (A)  the date on which the child:
 (i)  enrolls in a public school, including
 an open-enrollment charter school;
 (ii)  graduates from high school; or
 (iii)  is no longer eligible to either:
 (a)  enroll in a public school under
 Section 25.001; or
 (b)  enroll in a public school's
 prekindergarten program under Section 29.153; or
 (B)  the date established by the comptroller by
 which the child must enroll in a preapproved private school that the
 child did not enroll in a preapproved private school; and
 (5)  enroll the child in a preapproved private school
 by a deadline established by the comptroller.
 Sec. 29.358.  PREAPPROVED PROVIDERS AND VENDORS. (a) The
 comptroller shall by rule establish a process for the preapproval
 of education service providers and vendors of educational products
 for participation in the program. The comptroller shall allow for
 the submission of applications on a rolling basis.
 (b)  The comptroller shall approve an education service
 provider or vendor of educational products for participation in the
 program if the provider or vendor:
 (1)  for a private school, demonstrates:
 (A)  accreditation by an organization recognized
 by:
 (i)  the Texas Private School Accreditation
 Commission; or
 (ii)  the agency; and
 (B)  annual administration of a nationally
 norm-referenced assessment instrument or the appropriate
 assessment instrument required under Subchapter B, Chapter 39;
 (2)  for a public school, demonstrates:
 (A)  accreditation by the agency; and
 (B)  the ability to provide services or products
 to children participating in the program in a manner in which the
 children are not counted toward the school's average daily
 attendance;
 (3)  for a private tutor, therapist, or teaching
 service, demonstrates that:
 (A)  the tutor or therapist or each employee of
 the teaching service who intends to provide educational services to
 a child participating in the program:
 (i)  is an educator employed by or a retired
 educator formerly employed by a school accredited by the agency, an
 organization recognized by the agency, or an organization
 recognized by the Texas Private School Accreditation Commission;
 (ii)  holds a relevant license or
 accreditation issued by a state, regional, or national
 certification or accreditation organization; or
 (iii)  is employed in or retired from a
 teaching or tutoring capacity at a higher education provider;
 (B)  the tutor or therapist or each employee of
 the teaching service who intends to provide educational services to
 a child participating in the program either:
 (i)  completed a national criminal history
 record information review; or
 (ii)  provided to the comptroller
 documentation indicating that the tutor, therapist, or employee, as
 applicable, has completed a national criminal history record
 information review within a period established by comptroller rule;
 and
 (C)  the tutor or therapist or each employee of
 the teaching service who intends to provide educational services to
 a child participating in the program is not included in the registry
 under Section 22.092; or
 (4)  for a higher education provider, demonstrates
 nationally recognized postsecondary accreditation.
 (c)  The comptroller shall review the national criminal
 history record information or documentation for each private tutor,
 therapist, or teaching service employee who submits information or
 documentation under this section and verify that the individual is
 not included in the registry under Section 22.092. The tutor,
 therapist, or service must provide the comptroller with any
 information requested by the comptroller to enable the comptroller
 to complete the review.
 (d)  An education service provider or vendor of educational
 products shall provide information requested by the comptroller to
 verify the provider's or vendor's eligibility for preapproval under
 Subsection (b). The comptroller may not approve a provider or
 vendor if the comptroller cannot verify the provider's or vendor's
 eligibility for preapproval.
 (e)  An education service provider or vendor of educational
 products that no longer meets the requirements of this section must
 notify the comptroller not later than the 30th business day after
 the date that the provider or vendor no longer meets the
 requirements.
 (f)  This section may not be construed to allow a learning
 pod, as defined by Section 27.001, or a home school to qualify as an
 approved education service provider or vendor of educational
 products.
 Sec. 29.359.  APPROVED EDUCATION-RELATED EXPENSES. (a)
 Subject to Subsection (b), money received under the program may be
 used only for the following education-related expenses incurred by
 a child participating in the program at a preapproved education
 service provider or vendor of educational products:
 (1)  tuition and fees for a private school;
 (2)  the purchase of textbooks or other instructional
 materials or uniforms required by a school, higher education
 provider, or course in which the child is enrolled, including
 purchases made through a third-party vendor of educational
 products;
 (3)  costs related to academic assessments;
 (4)  fees for services provided by a private tutor or
 teaching service;
 (5)  fees for transportation provided by a
 fee-for-service transportation provider for the child to travel to
 and from a preapproved education service provider or vendor of
 educational products; and
 (6)  fees for educational therapies or services
 provided by a practitioner or provider, only for fees that are not
 covered by any federal, state, or local government benefits such as
 Medicaid or the Children's Health Insurance Program (CHIP) or by
 any private insurance that the child is enrolled in at the time of
 receiving the therapies or services.
 (b)  Money received under the program may not be used to pay
 any person who is related to the program participant within the
 third degree by consanguinity or affinity, as determined under
 Chapter 573, Government Code.
 (c)  A finding that a program participant used money
 distributed under the program to pay for an expense not allowed
 under Subsection (a) does not affect the validity of any payment
 made by the participant for an approved education-related expense
 that is allowed under that subsection.
 Sec. 29.360.  PROGRAM EXPENDITURES. (a) The comptroller
 shall disburse from the program fund to each certified educational
 assistance organization the amount specified under Section
 29.361(a) for each child participating in the program served by the
 organization.
 (b)  To initiate payment to an education service provider or
 vendor of educational products for an education-related expense
 approved under Section 29.359, the parent of a child participating
 in the program must submit a request in a form prescribed by
 comptroller rule to the certified educational assistance
 organization that serves the child.
 (c)  Subject to Subsection (d) and Sections 29.362(h) and
 29.364, on receiving a request under Subsection (b), a certified
 educational assistance organization shall verify that the request
 is for an expense approved under Section 29.359 and, not later than
 the 15th business day after the date the organization verifies the
 request, send payment to the education service provider or vendor
 of educational products.
 (d)  A disbursement under this section may not exceed the
 applicable program participant's account balance.
 (e)  A certified educational assistance organization shall
 provide program participants with electronic access to:
 (1)  view the participant's current account balance;
 (2)  initiate the payment process under Subsection (b);
 and
 (3)  view a summary of the participant's past account
 activity, including payments from the account to education service
 providers and vendors of educational products.
 Sec. 29.361.  AMOUNT OF PAYMENT; FINANCING. (a) Regardless
 of the quarterly deadline by which the parent applies for
 enrollment in the program under Section 29.356(a), a parent of a
 child participating in the program shall receive each year that the
 child participates in the program payments from the state from
 funds available under Section 29.353 to the child's account equal
 to a total amount of $8,000.
 (b)  Any money remaining in a child's account at the end of a
 fiscal year is carried forward to the next fiscal year unless
 another provision of this subchapter mandates the closure of the
 account.
 (c)  The parent of a child participating in the program may
 make payments for the expenses of educational programs, services,
 and products not covered by money in the child's account.
 (d)  A payment under Subsection (a) may not be financed using
 federal money or money from the available school fund or
 instructional materials and technology fund.
 (e)  Payments received under this subchapter do not
 constitute taxable income to a parent of a child participating in
 the program, unless otherwise provided by federal law.
 (f)  Not later than May 1 of each year, the agency shall
 submit to the comptroller the data necessary to calculate the
 amount specified under Subsection (a).
 Sec. 29.362.  ADMINISTRATION OF ACCOUNTS. (a)  On receipt
 of money distributed by the comptroller for purposes of making
 payments to program participants, a certified educational
 assistance organization shall make quarterly payments to the
 account of each child participating in the program served by the
 organization in equal amounts on or before the first day of July,
 October, January, and April.
 (b)  Each year, the comptroller may deduct from the total
 amount of money appropriated for purposes of this subchapter an
 amount, not to exceed three percent of that total amount, to cover
 the comptroller's cost of administering the program.
 (c)  Not later than the first day of the month preceding the
 start of each quarter, each certified educational assistance
 organization shall submit to the comptroller in the form prescribed
 by comptroller rule an estimate of the organization's costs of
 administering the program for that quarter.
 (d)  Each quarter, the comptroller shall disburse from money
 appropriated for the program to each certified educational
 assistance organization the amount necessary to cover the
 organization's costs of administering the program for that quarter,
 calculated as provided by Subsection (e). The total amount
 disbursed to a certified educational assistance organization under
 this subsection for a state fiscal year may not exceed five percent
 of the amount distributed to the organization under the program for
 that fiscal year.
 (e)  The amount of a certified educational assistance
 organization's disbursement under Subsection (d) is the lesser of:
 (1)  the amount of the organization's estimate
 submitted under Subsection (c);
 (2)  the product of the total amount to be disbursed and
 the average percentage of program participants served by the
 organization during the preceding quarter; or
 (3)  five percent of the amount distributed to the
 organization for purposes of making payments to program
 participants for that quarter.
 (f)  On or before the first day of October and February, a
 certified educational assistance organization shall:
 (1)  verify with the agency that each child
 participating in the program is not enrolled in a public school,
 including an open-enrollment charter school, in a manner in which
 the child is counted toward the school's average daily attendance
 for purposes of the allocation of state funding under the
 foundation school program;
 (2)  verify that each child participating in the
 program is enrolled in a preapproved private school; and
 (3)  notify the comptroller if the organization
 determines that a child participating in the program is:
 (A)  enrolled in a public school, including an
 open-enrollment charter school, in a manner in which the child is
 counted toward the school's average daily attendance for purposes
 of the allocation of state funding under the foundation school
 program; or
 (B)  not enrolled in a preapproved private school.
 (g)  The comptroller by rule shall establish a process by
 which a program participant may authorize the comptroller or a
 certified educational assistance organization to make a payment
 directly from the participant's account to a preapproved education
 service provider or vendor of educational products for an expense
 allowed under Section 29.359.
 (h)  On the date on which a child who participated in the
 program is no longer eligible to participate in the program under
 Section 29.355 and payments for any education-related expenses
 allowed under Section 29.359 from the child's account have been
 completed, the child's account shall be closed and any remaining
 money returned to the comptroller for deposit in the program fund.
 (i)  Each quarter, any interest or other earnings
 attributable to money held by a certified educational assistance
 organization for purposes of the program shall be remitted to the
 comptroller for deposit in the program fund.
 Sec. 29.363.  AUDITING. (a) The comptroller shall contract
 with a private entity to audit accounts and program participant
 eligibility data not less than once per year to ensure compliance
 with applicable law and program requirements.  The audit must
 include a review of:
 (1)  a certified educational assistance organization's
 internal controls over program transactions; and
 (2)  compliance by:
 (A)  program participants with the requirements
 of Section 29.357; and
 (B)  certified educational assistance
 organizations with the requirements of Section 29.354.
 (b)  In conducting an audit, the private entity may require a
 program participant or a certified educational assistance
 organization to provide information and documentation regarding
 any transaction occurring under the program.
 (c)  The private entity shall report to the comptroller any
 violation of this subchapter or other relevant law, including any
 transactions the entity determines to be unusual or suspicious,
 found by the entity during an audit conducted under this section.
 The comptroller shall report the violation or transaction to:
 (1)  the applicable certified educational assistance
 organization;
 (2)  the education service provider or vendor of
 educational products, as applicable; and
 (3)  the parent of each child participating in the
 program who is affected by the violation or transaction.
 Sec. 29.364.  SUSPENSION OF ACCOUNT. (a) The comptroller
 shall suspend the account of a program participant who fails to
 remain in good standing by complying with applicable law or a
 requirement of the program.
 (b)  On suspension of an account under Subsection (a), the
 comptroller shall notify the program participant in writing that
 the account has been suspended and that no additional payments may
 be made from the account. The notification must specify the grounds
 for the suspension and state that the participant has 30 business
 days to respond and take any corrective action required by the
 comptroller.
 (c)  On the expiration of the 30-day period under Subsection
 (b), the comptroller shall:
 (1)  order closure of the suspended account;
 (2)  order temporary reinstatement of the account,
 conditioned on the performance of a specified action by the program
 participant; or
 (3)  order full reinstatement of the account.
 (d)  The comptroller may recover money distributed under the
 program that was used for expenses not allowed under Section 29.359
 or for a child who was not eligible to participate in the program at
 the time of the expenditure.  The money may be recovered from the
 program participant or the entity that received the money in
 accordance with Subtitles A and B, Title 2, Tax Code, or as provided
 by other law if the program participant's account is suspended or
 closed under this section. The comptroller shall deposit money
 recovered under this subsection to the credit of the program fund.
 Sec. 29.365.  TUITION AND FEES; REFUND PROHIBITED. (a) An
 education service provider or vendor of educational products may
 not charge a child participating in the program an amount greater
 than the standard amount charged for that service or product by the
 provider or vendor.
 (b)  An education service provider or vendor of educational
 products receiving money distributed under the program may not in
 any manner rebate, refund, or credit to or share with a program
 participant, or any person on behalf of a participant, any program
 money paid or owed by the participant to the provider or vendor.
 Sec. 29.366.  REFERRAL TO DISTRICT ATTORNEY. If the
 comptroller obtains evidence of fraudulent use of an account or
 money distributed under the program by a certified educational
 assistance organization or program participant, the comptroller
 shall notify the appropriate local county or district attorney with
 jurisdiction over the principal place of business of the certified
 educational assistance organization or the residence of the program
 participant, as applicable.
 Sec. 29.367.  SPECIAL EDUCATION NOTICE. (a) A certified
 educational assistance organization shall post on the
 organization's Internet website and provide to each parent who
 submits an application for the program a notice that:
 (1)  states that a private school is not subject to
 federal and state laws regarding the provision of educational
 services to a child with a disability in the same manner as a public
 school; and
 (2)  provides information regarding rights to which a
 child with a disability is entitled under federal and state law if
 the child attends a public school, including:
 (A)  rights provided under the Individuals with
 Disabilities Education Act (20 U.S.C. Section 1400 et seq.); and
 (B)  rights provided under Subchapter A.
 (b)  A private school in which a child with a disability who
 is a program participant enrolls shall provide to the child's
 parent a copy of the notice required under Subsection (a).
 Sec. 29.368.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
 AUTONOMY. (a) An education service provider or vendor of
 educational products that receives money distributed under the
 program is not a recipient of federal financial assistance and may
 not be considered to be an agent of state government on the basis of
 receiving that money.
 (b)  A rule adopted or other governmental action taken
 related to the program may not impose requirements that are
 contrary to or limit the religious or institutional values or
 practices of an education service provider, vendor of educational
 products, or program participant, including by limiting the ability
 of the provider, vendor, or participant, as applicable, to:
 (1)  determine the methods of instruction or curriculum
 used to educate students;
 (2)  determine admissions and enrollment practices,
 policies, and standards;
 (3)  modify or refuse to modify the provider's,
 vendor's, or participant's religious or institutional values or
 practices, including operations, conduct, policies, standards,
 assessments, or employment practices that are based on the
 provider's, vendor's, or participant's religious or institutional
 values or practices; or
 (4)  exercise the provider's, vendor's, or
 participant's religious or institutional practices as determined
 by the provider, vendor, or participant.
 Sec. 29.369.  STUDENT RECORDS AND INFORMATION. (a) On
 request by the parent of a child participating or seeking to
 participate in the program, the school district or open-enrollment
 charter school that the child would otherwise attend shall provide
 a copy of the child's school records possessed by the district or
 school, if any, to the child's parent or, if applicable, the private
 school the child attends.
 (b)  As necessary to verify a child's eligibility for the
 program, the agency, a school district, or an open-enrollment
 charter school shall provide to a certified educational assistance
 organization any information available to the agency, district, or
 school requested by the organization regarding a child who
 participates or seeks to participate in the program, including
 information regarding the child's public school enrollment status
 and whether the child can be counted toward a public school's
 average daily attendance for purposes of the allocation of funding
 under the foundation school program. The organization may not
 retain information provided under this subsection beyond the period
 necessary to determine a child's eligibility to participate in the
 program.
 (c)  The certified educational assistance organization or an
 education service provider or vendor of educational products that
 obtains information regarding a child participating in the program:
 (1)  shall comply with state and federal law regarding
 the confidentiality of student educational information; and
 (2)  may not sell or otherwise distribute information
 regarding a child participating in the program.
 Sec. 29.370.  GIFTS, GRANTS, AND DONATIONS. The comptroller
 and a certified educational assistance organization may solicit and
 accept gifts, grants, and donations from any public or private
 source for any expenses related to the administration of the
 program, including establishing the program and contracting for the
 report required under Section 29.371.
 Sec. 29.371.  ANNUAL REPORT. (a)  The comptroller shall
 require that each certified educational assistance organization
 compile program data and produce an annual longitudinal report
 regarding:
 (1)  the number of program applications received,
 accepted, and wait-listed, disaggregated by age;
 (2)  program participant satisfaction;
 (3)  the results of assessment instruments shared in
 accordance with Section 29.357(2);
 (4)  the effect of the program on public and private
 school capacity and availability;
 (5)  the amount of cost savings accruing to the state as
 a result of the program;
 (6)  in a report submitted in an even-numbered year
 only, an estimate of the total amount of funding required for the
 program for the next state fiscal biennium;
 (7)  the amount of gifts, grants, and donations
 received under Section 29.370; and
 (8)  based on surveys of former program participants or
 other sources available to an organization, the number and
 percentage of children participating in the program who, within one
 year after graduating from high school, are:
 (A)  college ready, as indicated by earning a
 minimum of 12 non-remedial semester credit hours or the equivalent
 or an associate degree from a postsecondary educational
 institution;
 (B)  career ready, as indicated by:
 (i)  earning a credential of value included
 in a library of credentials established under Section 2308A.007,
 Government Code; or
 (ii)  employment at or above the median wage
 in the child's region; or
 (C)  military ready, as indicated by achieving a
 passing score set by the applicable military branch on the Armed
 Services Vocational Aptitude Battery and enlisting in the armed
 forces of the United States or the Texas National Guard.
 (b)  In producing the report, each certified educational
 assistance organization shall:
 (1)  use appropriate analytical and behavioral science
 methodologies to ensure public confidence in the report; and
 (2)  comply with the requirements regarding the
 confidentiality of student educational information under the
 Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
 Section 1232g).
 (c)  The report must cover a period of not less than five
 years and include, subject to Subsection (b)(2), the data analyzed
 and methodology used.
 (d)  The comptroller and each certified educational
 assistance organization shall post the report on the comptroller's
 and organization's respective Internet websites.
 Sec. 29.372.  RULES; PROCEDURES. The comptroller shall
 adopt rules and procedures as necessary to implement, administer,
 and enforce this subchapter.
 Sec. 29.373.  APPEAL; JUDICIAL REVIEW. (a) A program
 participant may appeal to the comptroller an administrative
 decision made by the comptroller or a certified educational
 assistance organization under this subchapter, including a
 decision regarding eligibility, allowable expenses, or the
 participant's removal from the program.
 (b)  A program participant, education service provider, or
 vendor of educational products who is adversely affected or
 aggrieved by a decision made by the comptroller or a certified
 educational assistance organization under this subchapter may file
 a suit challenging the decision in a district court in the county in
 which the program participant resides or the provider or vendor has
 its principal place of business, as applicable.
 Sec. 29.374.  RIGHT TO INTERVENE IN CIVIL ACTION. (a) A
 program participant, education service provider, or vendor of
 educational products may intervene in any civil action challenging
 the constitutionality of the program.
 (b)  A court in which a civil action described by Subsection
 (a) is filed may require that all program participants, education
 service providers, and vendors of educational products wishing to
 intervene in the action file a joint brief. A program participant,
 education service provider, or vendor of educational products may
 not be required to join a brief filed on behalf of the state or a
 state agency.
 SECTION 3.  Section 22.092(d), Education Code, is amended to
 read as follows:
 (d)  The agency shall provide equivalent access to the
 registry maintained under this section to:
 (1)  private schools;
 (2)  public schools; [and]
 (3)  nonprofit teacher organizations approved by the
 commissioner for the purpose of participating in the tutoring
 program established under Section 33.913; and
 (4)  the comptroller for the purpose of preapproving
 education service providers and vendors of educational products
 under Section 29.358 for participation in the program established
 under Subchapter J, Chapter 29.
 SECTION 4.  Section 411.109, Government Code, is amended by
 adding Subsection (b-1) and amending Subsection (c) to read as
 follows:
 (b-1)  The comptroller is entitled to obtain criminal
 history record information as provided by Subsection (c) about a
 person who is a private tutor, a therapist, or an employee of a
 teaching service or school who intends to provide educational
 services to a child participating in the program established under
 Subchapter J, Chapter 29, Education Code, and is seeking approval
 to receive money distributed under that program.
 (c)  Subject to Section 411.087 and consistent with the
 public policy of this state, the comptroller is entitled to:
 (1)  obtain through the Federal Bureau of Investigation
 criminal history record information maintained or indexed by that
 bureau that pertains to a person described by Subsection (a), [or]
 (b), or (b-1); and
 (2)  obtain from the department or any other criminal
 justice agency in this state criminal history record information
 maintained by the department or that criminal justice agency that
 relates to a person described by Subsection (a), [or] (b), or (b-1).
 SECTION 5.  Subchapter J, Chapter 29, Education Code, as
 added by this Act, applies beginning with the 2024-2025 school
 year.
 SECTION 6.  (a) Not later than May 15, 2024, the comptroller
 of public accounts shall adopt rules as provided by Section 29.372,
 Education Code, as added by this Act.
 (b)  The comptroller of public accounts may identify rules
 required by the passage of Subchapter J, Chapter 29, Education
 Code, as added by this Act, that must be adopted on an emergency
 basis for purposes of the 2024-2025 school year and may use the
 procedures established under Section 2001.034, Government Code,
 for adopting those rules.  The comptroller of public accounts is not
 required to make the finding described by Section 2001.034(a),
 Government Code, to adopt emergency rules under this subsection.
 SECTION 7.  (a) The constitutionality and other validity
 under the state or federal constitution of all or any part of
 Subchapter J, Chapter 29, Education Code, as added by this Act, may
 be determined in an action for declaratory judgment under Chapter
 37, Civil Practice and Remedies Code, in a district court in the
 county in which the violation is alleged to have occurred or where
 the plaintiff resides or has its principal place of business.
 (b)  An order, however characterized, of a trial court
 granting or denying a temporary or otherwise interlocutory
 injunction or a permanent injunction on the grounds of the
 constitutionality or unconstitutionality, or other validity or
 invalidity, under the state or federal constitution of all or any
 part of Subchapter J, Chapter 29, Education Code, as added by this
 Act, may be reviewed only by direct appeal to the Texas Supreme
 Court filed not later than the 15th business day after the date on
 which the order was entered. The Texas Supreme Court shall give
 precedence to appeals under this section over other matters.
 (c)  The direct appeal is an accelerated appeal.
 (d)  This section exercises the authority granted by Section
 3-b, Article V, Texas Constitution.
 (e)  The filing of a direct appeal under this section will
 automatically stay any temporary or otherwise interlocutory
 injunction or permanent injunction granted in accordance with this
 section pending final determination by the Texas Supreme Court,
 unless the supreme court makes specific findings that the applicant
 seeking such injunctive relief has pleaded and proved that:
 (1)  the applicant has a probable right to the relief it
 seeks on final hearing;
 (2)  the applicant will suffer a probable injury that
 is imminent and irreparable, and that the applicant has no other
 adequate legal remedy; and
 (3)  maintaining the injunction is in the public
 interest.
 (f)  An appeal under this section, including an
 interlocutory, accelerated, or direct appeal, is governed, as
 applicable, by the Texas Rules of Appellate Procedure, including
 Rules 25.1(d)(6), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),
 40.1(b), and 49.4.
 (g)  This section does not authorize an award of attorney's
 fees against this state, and Section 37.009, Civil Practice and
 Remedies Code, does not apply to an action filed under this section.
 (h)  This section does not authorize a taxpayer suit to
 contest the denial of a tax credit by the comptroller of public
 accounts.
 SECTION 8.  It is the intent of the legislature that every
 provision, section, subsection, sentence, clause, phrase, or word
 in this Act, and every application of the provisions in this Act to
 each person or entity, is severable from each other. If any
 application of any provision in this Act to any person, group of
 persons, or circumstances is found by a court to be invalid for any
 reason, the remaining applications of that provision to all other
 persons and circumstances shall be severed and may not be affected.
 SECTION 9.  This Act takes effect on the 91st day after the
 last day of the legislative session.
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