Texas 2023 - 88th 3rd C.S.

Texas Senate Bill SB1 Compare Versions

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1	1	By: Creighton, et al. S.B. No. 1
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the establishment of an education savings account
7	7	program.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. The purpose of this Act is to:
10	10	(1) provide additional educational options to assist
11	11	families in this state in exercising the right to direct the
12	12	educational needs of their children; and
13	13	(2) achieve a general diffusion of knowledge.
14	14	SECTION 2. Chapter 29, Education Code, is amended by adding
15	15	Subchapter J to read as follows:
16	16	SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
17	17	Sec. 29.351. DEFINITIONS. In this subchapter:
18	18	(1) "Account" means an education savings account
19	19	established under the program.
20	20	(2) "Certified educational assistance organization"
21	21	means an organization certified under Section 29.354 to support the
22	22	administration of the program.
23	23	(3) "Child with a disability" means a child who is
24	24	eligible to participate in a school district's special education
25	25	program under Section 29.003.
26	26	(4) "Higher education provider" means an institution
27	27	of higher education or a private or independent institution of
28	28	higher education, as those terms are defined by Section 61.003.
29	29	(5) "Parent" means a resident of this state who is a
30	30	natural or adoptive parent, managing or possessory conservator,
31	31	legal guardian, custodian, or other person with legal authority to
32	32	act on behalf of a child.
33	33	(6) "Participating child" means a child enrolled in
34	34	the program.
35	35	(7) "Participating parent" means a parent of a
36	36	participating child.
37	37	(8) "Program" means the program established under this
38	38	subchapter.
39	39	(9) "Program participant" means a participating child
40	40	or a participating parent.
41	41	Sec. 29.352. ESTABLISHMENT OF PROGRAM. The comptroller
42	42	shall establish a program to provide funding for approved
43	43	education-related expenses of children participating in the
44	44	program.
45	45	Sec. 29.353. PROGRAM FUND. (a) The program fund is an
46	46	account in the general revenue fund to be administered by the
47	47	comptroller.
48	48	(b) The fund is composed of:
49	49	(1) general revenue transferred to the fund;
50	50	(2) money appropriated to the fund;
51	51	(3) gifts, grants, and donations received under
52	52	Section 29.370; and
53	53	(4) any other money available for purposes of the
54	54	program.
55	55	(c) Money in the fund may be appropriated only for the uses
56	56	specified by this subchapter.
57	57	Sec. 29.3535. PROMOTION OF PROGRAM. Notwithstanding
58	58	Chapter 2113, Government Code, the comptroller or the comptroller's
59	59	designee may enter into contracts or agreements and engage in
60	60	marketing, advertising, and other activities to promote, market,
61	61	and advertise the development and use of the program. The
62	62	comptroller may use money from the program fund to pay for
63	63	activities authorized under this section.
64	64	Sec. 29.354. SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
65	65	ORGANIZATIONS. (a) An organization may apply to the comptroller
66	66	for certification as a certified educational assistance
67	67	organization during an application period established by the
68	68	comptroller.
69	69	(b) To be eligible for certification, an organization must:
70	70	(1) have the ability to perform one or more of the
71	71	duties and functions required of a certified educational assistance
72	72	organization under this subchapter;
73	73	(2) be in good standing with the state; and
74	74	(3) be able to assist the comptroller in administering
75	75	the program in whole or in part, including the ability to:
76	76	(A) accept, process, and track applications for
77	77	the program;
78	78	(B) assist prospective applicants, applicants,
79	79	and program participants with finding preapproved education
80	80	service providers and vendors of educational products;
81	81	(C) accept and process payments for approved
82	82	education-related expenses; and
83	83	(D) verify that program funding is used only for
84	84	approved education-related expenses.
85	85	(c) The comptroller may certify not more than five
86	86	educational assistance organizations to support the administration
87	87	of the program, including by:
88	88	(1) administering in whole or in part:
89	89	(A) the application process under Section
90	90	29.356; and
91	91	(B) the program expenditures process under
92	92	Section 29.360; and
93	93	(2) assisting prospective applicants, applicants, and
94	94	program participants with understanding approved education-related
95	95	expenses and finding preapproved education service providers and
96	96	vendors of educational products.
97	97	(d) A certified educational assistance organization is not
98	98	considered to be a provider of professional or consulting services
99	99	under Chapter 2254, Government Code.
100	100	Sec. 29.355. ELIGIBLE CHILD. (a) A child is eligible to
101	101	participate in the program and may, subject to available funding,
102	102	enroll in the program for the semester following the semester in
103	103	which the child's application is submitted under Section 29.356 if
104	104	the child:
105	105	(1) is eligible to:
106	106	(A) attend a public school under Section 25.001;
107	107	or
108	108	(B) enroll in a public school's prekindergarten
109	109	program under Section 29.153; and
110	110	(2) either:
111	111	(A) was enrolled in a public school in this state
112	112	for at least 90 percent of the school year preceding the school year
113	113	for which the child applies to enroll in the program;
114	114	(B) is enrolling in prekindergarten or
115	115	kindergarten for the first time;
116	116	(C) attended a private school on a full-time
117	117	basis for the preceding school year; or
118	118	(D) was a home-schooled student, as defined by
119	119	Section 29.916(a)(1), for the preceding school year.
120	120	(b) A child who establishes eligibility under this section
121	121	may, subject to available funding and the requirements of this
122	122	subchapter, participate in the program until the earliest of the
123	123	following dates:
124	124	(1) the date on which the child graduates from high
125	125	school;
126	126	(2) the date on which the child is no longer eligible
127	127	to either attend a public school under Section 25.001 or enroll in a
128	128	public school's prekindergarten program under Section 29.153, as
129	129	applicable;
130	130	(3) the date on which the child enrolls in a public
131	131	school, including an open-enrollment charter school, in a manner in
132	132	which the child will be counted toward the school's average daily
133	133	attendance for purposes of the allocation of funding under the
134	134	foundation school program; or
135	135	(4) the date on which the child is declared ineligible
136	136	for the program by the comptroller under this subchapter.
137	137	(c) Notwithstanding Subsection (a) or (b), a child is not
138	138	eligible to participate in the program during the period in which
139	139	the child's parent or legal guardian is a state representative,
140	140	state senator, or a statewide elected official.
141	141	Sec. 29.356. APPLICATION TO PROGRAM. (a) A parent of an
142	142	eligible child may apply to a certified educational assistance
143	143	organization designated by the comptroller to enroll the child in
144	144	the program for the following semester, term, or school year, as
145	145	determined by the comptroller. The comptroller shall establish
146	146	deadlines by which an applicant must complete and submit an
147	147	application form to participate in the program.
148	148	(b) On receipt of more acceptable applications during an
149	149	application period for admission under this section than available
150	150	positions in the program due to insufficient funding, a certified
151	151	educational assistance organization shall, at the direction of the
152	152	comptroller, fill the available positions by lottery of applicants
153	153	within each category as follows:
154	154	(1) for not more than 40 percent of available
155	155	positions in the program, children described by Section
156	156	29.355(a)(2)(A) or (B) who are members of a household with a total
157	157	annual income that is at or below 185 percent of the federal poverty
158	158	guidelines;
159	159	(2) for not more than 30 percent of the available
160	160	positions in the program, children described by Section
161	161	29.355(a)(2)(A) or (B) who are members of a household with a total
162	162	annual income that is above 185 percent of the federal poverty
163	163	guidelines and below 500 percent of the federal poverty guidelines;
164	164	(3) for not more than 20 percent of the available
165	165	positions in the program, children with a disability described by
166	166	Section 29.355(a)(2)(A) or (B) who are not accepted into the
167	167	program under Subdivision (1) or (2) of this subsection; and
168	168	(4) for any remaining available positions in the
169	169	program, all eligible applicants who are not accepted into the
170	170	program under Subdivision (1), (2), or (3) of this subsection.
171	171	(b-1) The comptroller shall adopt rules necessary to
172	172	administer Subsection (b). The comptroller shall post on the
173	173	comptroller's Internet website any rule adopted under this
174	174	subsection.
175	175	(c) The comptroller shall create an application form for the
176	176	program and each certified educational assistance organization
177	177	designated by the comptroller shall make the application form
178	178	readily available through various sources, including the
179	179	organization's Internet website. The application form must state
180	180	the application deadlines established by the comptroller under
181	181	Subsection (a). Each organization shall ensure that the
182	182	application form, including any required supporting document, is
183	183	capable of being submitted to the organization electronically.
184	184	(d) Each certified educational assistance organization
185	185	designated under Subsection (a) shall post on the organization's
186	186	Internet website an applicant and participant handbook with a
187	187	description of the program, including:
188	188	(1) expenses allowed under the program under Section
189	189	29.359;
190	190	(2) a list of preapproved education service providers
191	191	and vendors of educational products under Section 29.358;
192	192	(3) a description of the application process under
193	193	this section and the program expenditures process under Section
194	194	29.360; and
195	195	(4) a description of the responsibilities of program
196	196	participants.
197	197	(e) Each certified educational assistance organization
198	198	designated under Subsection (a) shall annually provide to the
199	199	parent of each child participating in the program the information
200	200	described by Subsection (d). The organization may provide the
201	201	information electronically.
202	202	(f) The comptroller or a certified educational assistance
203	203	organization designated under Subsection (a):
204	204	(1) may require the participating parent to submit
205	205	annual notice regarding the parent's intent for the child to
206	206	continue participating in the program for the next school year; and
207	207	(2) may not require a program participant in good
208	208	standing to annually resubmit an application for continued
209	209	participation in the program.
210	210	(g) The agency shall provide to the comptroller the
211	211	information necessary to make the determinations required under
212	212	Subsection (b).
213	213	Sec. 29.357. PARTICIPATION IN PROGRAM. To receive funding
214	214	under the program, a participating parent must agree to:
215	215	(1) spend money received through the program only for
216	216	expenses allowed under Section 29.359;
217	217	(2) share or authorize the administrator of an
218	218	assessment instrument to share with the program participant's
219	219	certified educational assistance organization the results of any
220	220	assessment instrument required to be administered to the child
221	221	under Section 29.358(b)(1)(B) or other law;
222	222	(3) refrain from selling an item purchased with
223	223	program money; and
224	224	(4) notify the program participant's certified
225	225	educational assistance organization not later than 30 business days
226	226	after the date on which the child:
227	227	(A) enrolls in a public school, including an
228	228	open-enrollment charter school;
229	229	(B) graduates from high school; or
230	230	(C) is no longer eligible to either:
231	231	(i) enroll in a public school under Section
232	232	25.001; or
233	233	(ii) enroll in a public school's
234	234	prekindergarten program under Section 29.153.
235	235	Sec. 29.358. PREAPPROVED PROVIDERS AND VENDORS. (a) The
236	236	comptroller shall by rule establish a process for the preapproval
237	237	of education service providers and vendors of educational products
238	238	for participation in the program. The comptroller shall allow for
239	239	the submission of applications on a rolling basis.
240	240	(b) The comptroller shall approve an education service
241	241	provider or vendor of educational products for participation in the
242	242	program if the provider or vendor:
243	243	(1) for a private school, demonstrates:
244	244	(A) accreditation by an organization recognized
245	245	by:
246	246	(i) the Texas Private School Accreditation
247	247	Commission; or
248	248	(ii) the agency; and
249	249	(B) annual administration of a nationally
250	250	norm-referenced assessment instrument or the appropriate
251	251	assessment instrument required under Subchapter B, Chapter 39;
252	252	(2) for a public school, demonstrates:
253	253	(A) accreditation by the agency; and
254	254	(B) the ability to provide services or products
255	255	to children participating in the program in a manner in which the
256	256	children are not counted toward the school's average daily
257	257	attendance;
258	258	(3) for a private tutor, therapist, or teaching
259	259	service, demonstrates that:
260	260	(A) the tutor or therapist or each employee of
261	261	the teaching service who intends to provide educational services to
262	262	a participating child:
263	263	(i) is an educator employed by or a retired
264	264	educator formerly employed by a school accredited by the agency, an
265	265	organization recognized by the agency, or an organization
266	266	recognized by the Texas Private School Accreditation Commission;
267	267	(ii) holds a relevant license or
268	268	accreditation issued by a state, regional, or national
269	269	certification or accreditation organization; or
270	270	(iii) is employed in or retired from a
271	271	teaching or tutoring capacity at a higher education provider;
272	272	(B) the tutor or therapist or each employee of
273	273	the teaching service who intends to provide educational services to
274	274	a participating child provides to the comptroller a national
275	275	criminal history record information review completed by the tutor,
276	276	therapist, or employee, as applicable, within a period established
277	277	by comptroller rule; and
278	278	(C) the tutor or therapist or each employee of
279	279	the teaching service who intends to provide educational services to
280	280	a participating child is not:
281	281	(i) required to be discharged or refused to
282	282	be hired by a school district under Section 22.085; or
283	283	(ii) included in the registry under Section
284	284	22.092; or
285	285	(4) for a higher education provider, demonstrates
286	286	nationally recognized postsecondary accreditation.
287	287	(c) The comptroller may approve only an education service
288	288	provider or vendor of educational products that operates in this
289	289	state.
290	290	(d) The comptroller shall review the national criminal
291	291	history record information or documentation for each private tutor,
292	292	therapist, or teaching service employee who submits information or
293	293	documentation under this section. The tutor, therapist, or
294	294	employee must provide the comptroller with any information
295	295	requested by the comptroller to enable the comptroller to complete
296	296	the review.
297	297	(e) An education service provider or vendor of educational
298	298	products shall provide information requested by the comptroller to
299	299	verify the provider's or vendor's eligibility for preapproval under
300	300	Subsection (b). The comptroller may not approve a provider or
301	301	vendor if the comptroller cannot verify the provider's or vendor's
302	302	eligibility for preapproval.
303	303	(f) An education service provider or vendor of educational
304	304	products must agree to:
305	305	(1) abide by the disbursement schedule under Section
306	306	29.360(c) and all other requirements of this subchapter;
307	307	(2) accept money from the program only for
308	308	education-related expenses approved under Section 29.359;
309	309	(3) notify the comptroller not later than the 30th day
310	310	after the date that the provider or vendor no longer meets the
311	311	requirements of this section; and
312	312	(4) return any money received, including any interest
313	313	or other additions received related to the money, in violation of
314	314	this subchapter or other relevant law to the comptroller for
315	315	deposit into the program fund.
316	316	(g) An education service provider or vendor of educational
317	317	products that receives approval under this section may participate
318	318	in the program until the earliest of the date on which the provider
319	319	or vendor:
320	320	(1) no longer meets the requirements under this
321	321	section; or
322	322	(2) violates this subchapter or other relevant law.
323	323	(h) This section may not be construed to allow a learning
324	324	pod, as defined by Section 27.001, or a home school to qualify as an
325	325	approved education service provider or vendor of educational
326	326	products.
327	327	Sec. 29.359. APPROVED EDUCATION-RELATED EXPENSES. (a)
328	328	Subject to Subsection (b), money received under the program may be
329	329	used only for the following education-related expenses incurred by
330	330	a participating child at a preapproved education service provider
331	331	or vendor of educational products:
332	332	(1) tuition and fees for a private school;
333	333	(2) the purchase of textbooks or other instructional
334	334	materials or uniforms;
335	335	(3) costs related to academic assessments;
336	336	(4) fees for services provided by a private tutor or
337	337	teaching service;
338	338	(5) fees for transportation provided by a
339	339	fee-for-service transportation provider for the child to travel to
340	340	and from a preapproved education service provider or vendor of
341	341	educational products; and
342	342	(6) fees for educational therapies or services
343	343	provided by a practitioner or provider, only for fees that are not
344	344	covered by any federal, state, or local government benefits such as
345	345	Medicaid or the Children's Health Insurance Program (CHIP) or by
346	346	any private insurance that the child is enrolled in at the time of
347	347	receiving the therapies or services.
348	348	(b) Money received under the program may not be used to pay
349	349	any person who is related to the program participant within the
350	350	third degree by consanguinity or affinity, as determined under
351	351	Chapter 573, Government Code.
352	352	(c) A finding that a program participant used money
353	353	distributed under the program to pay for an expense not allowed
354	354	under Subsection (a) does not affect the validity of any payment
355	355	made by the participant for an approved education-related expense
356	356	that is allowed under that subsection.
357	357	Sec. 29.360. PROGRAM EXPENDITURES. (a) The comptroller
358	358	shall disburse from the program fund to each certified educational
359	359	assistance organization the amount specified under Section
360	360	29.361(a) for each participating child served by the organization.
361	361	(b) To initiate payment to an education service provider or
362	362	vendor of educational products for an education-related expense
363	363	approved under Section 29.359, the participating parent must submit
364	364	a request in a form prescribed by comptroller rule to the certified
365	365	educational assistance organization that serves the child.
366	366	(c) Subject to Subsection (d) and Sections 29.362(f) and
367	367	29.364, on receiving a request under Subsection (b), a certified
368	368	educational assistance organization shall verify that the request
369	369	is for an expense approved under Section 29.359 and, not later than
370	370	the 15th business day after the date the organization verifies the
371	371	request, send payment to the education service provider or vendor
372	372	of educational products.
373	373	(d) A disbursement under this section may not exceed the
374	374	applicable participating child's account balance.
375	375	(e) A certified educational assistance organization shall
376	376	provide participating parents with electronic access to:
377	377	(1) view the participating child's current account
378	378	balance;
379	379	(2) initiate the payment process under Subsection (b);
380	380	and
381	381	(3) view a summary of past account activity, including
382	382	payments from the account to education service providers and
383	383	vendors of educational products.
384	384	Sec. 29.361. AMOUNT OF PAYMENT; FINANCING. (a) Regardless
385	385	of the deadline by which the parent applies for enrollment in the
386	386	program under Section 29.356(a), a participating parent shall
387	387	receive each year that the child participates in the program
388	388	payments from the state from funds available under Section 29.353
389	389	to the child's account equal to a total amount of:
390	390	(1) $1,000, if the participating child is a
391	391	home-schooled student, as defined by Section 29.916(a)(1); or
392	392	(2) $8,000, if the child is a participating child not
393	393	described by Subdivision (1).
394	394	(b) This subsection does not apply to an open-enrollment
395	395	charter school and applies only to a school district with a student
396	396	enrollment of 5,000 or less that experiences a net decline in
397	397	student enrollment from the previous school year that is
398	398	attributable to students participating in the program who would
399	399	otherwise enroll in the district. For the first three school years
400	400	during which a child residing in the district participates in the
401	401	program, a school district to which this subsection applies is
402	402	entitled to receive $10,000 per child from money appropriated for
403	403	purposes of this subchapter.
404	404	(c) Any money remaining in a participating child's account
405	405	at the end of a fiscal year is carried forward to the next fiscal
406	406	year unless another provision of this subchapter mandates the
407	407	closure of the account.
408	408	(d) The participating parent may make payments for the
409	409	expenses of educational programs, services, and products not
410	410	covered by money in the participating child's account.
411	411	(e) A payment under Subsection (a) may not be financed using
412	412	federal money or money from the available school fund or
413	413	instructional materials and technology fund.
414	414	(f) Payments received under this subchapter do not
415	415	constitute taxable income to a participating parent, unless
416	416	otherwise provided by federal law.
417	417	(g) Not later than May 1 of each year, the agency shall
418	418	submit to the comptroller the data necessary to calculate the
419	419	amount specified under Subsection (a).
420	420	Sec. 29.362. ADMINISTRATION OF ACCOUNTS. (a) On receipt
421	421	of money distributed by the comptroller for purposes of making
422	422	payments to program participants, a certified educational
423	423	assistance organization shall hold that money in trust for the
424	424	benefit of children participating in the program and make quarterly
425	425	payments to the account of each participating child served by the
426	426	organization in equal amounts on or before the first day of July,
427	427	October, January, and April.
428	428	(b) Each year, the comptroller may deduct from the total
429	429	amount of money appropriated for purposes of this subchapter an
430	430	amount, not to exceed three percent of that total amount, to cover
431	431	the comptroller's cost of administering the program.
432	432	(c) Each quarter, each certified educational assistance
433	433	organization shall submit to the comptroller a breakdown of the
434	434	organization's costs of administering the program for the previous
435	435	quarter and the comptroller shall disburse from money appropriated
436	436	for the program to each certified educational assistance
437	437	organization the amount necessary to cover the organization's costs
438	438	of administering the program for that quarter. The total amount
439	439	disbursed to all certified educational assistance organizations
440	440	under this subsection for a state fiscal year may not exceed five
441	441	percent of the amount appropriated for the purposes of the program
442	442	for that fiscal year.
443	443	(d) On or before the first day of October and February, a
444	444	certified educational assistance organization shall:
445	445	(1) verify with the agency that each participating
446	446	child is not enrolled in a public school, including an
447	447	open-enrollment charter school, in a manner in which the child is
448	448	counted toward the school's average daily attendance for purposes
449	449	of the allocation of state funding under the foundation school
450	450	program; and
451	451	(2) notify the comptroller if the organization
452	452	determines that a participating child is:
453	453	(A) enrolled in a public school, including an
454	454	open-enrollment charter school, in a manner in which the child is
455	455	counted toward the school's average daily attendance for purposes
456	456	of the allocation of state funding under the foundation school
457	457	program; or
458	458	(B) not enrolled in a preapproved private school.
459	459	(e) The comptroller by rule shall establish a process by
460	460	which a participating parent may authorize the comptroller or a
461	461	certified educational assistance organization to make a payment
462	462	directly from the participant's account to a preapproved education
463	463	service provider or vendor of educational products for an expense
464	464	allowed under Section 29.359.
465	465	(f) On the date on which a child who participated in the
466	466	program is no longer eligible to participate in the program under
467	467	Section 29.355 and payments for any education-related expenses
468	468	allowed under Section 29.359 from the child's account have been
469	469	completed, the participating child's account shall be closed and
470	470	any remaining money returned to the comptroller for deposit in the
471	471	program fund.
472	472	(g) Each quarter, any interest or other earnings
473	473	attributable to money held by a certified educational assistance
474	474	organization for purposes of the program shall be remitted to the
475	475	comptroller for deposit in the program fund.
476	476	Sec. 29.363. AUDITING. (a) The comptroller shall contract
477	477	with a private entity to audit accounts and program participant
478	478	eligibility data not less than once per year to ensure compliance
479	479	with applicable law and program requirements. The audit must
480	480	include a review of:
481	481	(1) each certified educational assistance
482	482	organization's internal controls over program transactions; and
483	483	(2) compliance by:
484	484	(A) certified educational assistance
485	485	organizations with Section 29.354 and other program requirements;
486	486	(B) program participants with Section 29.357 and
487	487	other program requirements; and
488	488	(C) education service providers and vendors of
489	489	educational products with Section 29.358 and other program
490	490	requirements.
491	491	(b) In conducting an audit, the private entity may require a
492	492	program participant, education service provider or vendor of
493	493	educational products, or a certified educational assistance
494	494	organization to provide information and documentation regarding
495	495	any transaction occurring under the program.
496	496	(c) The private entity shall report to the comptroller any
497	497	violation of this subchapter or other relevant law and any
498	498	transactions the entity determines to be unusual or suspicious
499	499	found by the entity during an audit conducted under this section.
500	500	The comptroller shall report the violation or transaction to:
501	501	(1) the applicable certified educational assistance
502	502	organization;
503	503	(2) the education service provider or vendor of
504	504	educational products, as applicable; and
505	505	(3) each participating parent who is affected by the
506	506	violation or transaction.
507	507	Sec. 29.364. SUSPENSION OF ACCOUNT. (a) The comptroller
508	508	shall suspend the account of a participating child who fails to
509	509	remain in good standing by complying with applicable law or a
510	510	requirement of the program.
511	511	(b) On suspension of an account under Subsection (a), the
512	512	comptroller shall notify the participating parent in writing that
513	513	the account has been suspended and that no additional payments may
514	514	be made from the account. The notification must specify the grounds
515	515	for the suspension and state that the participating parent has 30
516	516	days to respond and take any corrective action required by the
517	517	comptroller.
518	518	(c) On the expiration of the 30-day period under Subsection
519	519	(b), the comptroller shall:
520	520	(1) order closure of the suspended account;
521	521	(2) order temporary reinstatement of the account,
522	522	conditioned on the performance of a specified action by the
523	523	participating parent; or
524	524	(3) order full reinstatement of the account.
525	525	(d) The comptroller may recover money distributed under the
526	526	program that was used for expenses not allowed under Section
527	527	29.359, for a child who was not eligible to participate in the
528	528	program at the time of the expenditure, or from an education service
529	529	provider or vendor of educational products that was not approved at
530	530	the time of the expenditure. The money and any interest or other
531	531	additions received related to the money may be recovered from the
532	532	participating parent or the education service provider or vendor of
533	533	educational products that received the money in accordance with
534	534	Subtitles A and B, Title 2, Tax Code, or as provided by other law if
535	535	the participating child's account is suspended or closed under this
536	536	section. The comptroller shall deposit money recovered under this
537	537	subsection into the program fund.
538	538	Sec. 29.365. TUITION AND FEES; REFUND PROHIBITED. (a) An
539	539	education service provider or vendor of educational products may
540	540	not charge a participating child an amount greater than the
541	541	standard amount charged for that service or product by the provider
542	542	or vendor.
543	543	(b) An education service provider or vendor of educational
544	544	products receiving money distributed under the program may not in
545	545	any manner rebate, refund, or credit to or share with a program
546	546	participant, or any person on behalf of a participant, any program
547	547	money paid or owed by the participant to the provider or vendor.
548	548	Sec. 29.366. REFERRAL TO DISTRICT ATTORNEY. If the
549	549	comptroller obtains evidence of fraudulent use of an account or
550	550	money distributed under the program or any other violation of law by
551	551	a certified educational assistance organization, education
552	552	services provider or vendor of educational products, or program
553	553	participant, the comptroller shall notify the appropriate local
554	554	county or district attorney with jurisdiction over, as applicable:
555	555	(1) the principal place of business of the
556	556	organization or provider or vendor; or
557	557	(2) the residence of the program participant.
558	558	Sec. 29.367. SPECIAL EDUCATION NOTICE. (a) A certified
559	559	educational assistance organization shall post on the
560	560	organization's Internet website and provide to each parent who
561	561	submits an application for the program a notice that:
562	562	(1) states that a private school is not subject to
563	563	federal and state laws regarding the provision of educational
564	564	services to a child with a disability in the same manner as a public
565	565	school; and
566	566	(2) provides information regarding rights to which a
567	567	child with a disability is entitled under federal and state law if
568	568	the child attends a public school, including:
569	569	(A) rights provided under the Individuals with
570	570	Disabilities Education Act (20 U.S.C. Section 1400 et seq.); and
571	571	(B) rights provided under Subchapter A.
572	572	(b) A private school in which a child with a disability who
573	573	is a participating child enrolls shall provide to the participating
574	574	parent a copy of the notice required under Subsection (a).
575	575	Sec. 29.368. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
576	576	AUTONOMY. (a) An education service provider or vendor of
577	577	educational products that receives money distributed under the
578	578	program is not a recipient of federal financial assistance and may
579	579	not be considered to be an agent of state government on the basis of
580	580	receiving that money.
581	581	(b) A rule adopted or other governmental action taken
582	582	related to the program may not impose requirements that are
583	583	contrary to or limit the religious or institutional values or
584	584	practices of an education service provider, vendor of educational
585	585	products, or program participant, including by limiting the ability
586	586	of the provider, vendor, or participant, as applicable, to:
587	587	(1) determine the methods of instruction or curriculum
588	588	used to educate students;
589	589	(2) determine admissions and enrollment practices,
590	590	policies, and standards;
591	591	(3) modify or refuse to modify the provider's,
592	592	vendor's, or participant's religious or institutional values or
593	593	practices, including operations, conduct, policies, standards,
594	594	assessments, or employment practices that are based on the
595	595	provider's, vendor's, or participant's religious or institutional
596	596	values or practices; or
597	597	(4) exercise the provider's, vendor's, or
598	598	participant's religious or institutional practices as determined
599	599	by the provider, vendor, or participant.
600	600	Sec. 29.369. STUDENT RECORDS AND INFORMATION. (a) On
601	601	request by the participating parent or parent of a child seeking to
602	602	participate in the program, the school district or open-enrollment
603	603	charter school that the child would otherwise attend shall provide
604	604	a copy of the child's school records possessed by the district or
605	605	school, if any, to the child's parent or, if applicable, the private
606	606	school the child attends.
607	607	(b) As necessary to verify a child's eligibility for the
608	608	program, the agency, a school district, or an open-enrollment
609	609	charter school shall provide to a certified educational assistance
610	610	organization any information available to the agency, district, or
611	611	school requested by the organization regarding a child who
612	612	participates or seeks to participate in the program, including
613	613	information regarding the child's public school enrollment status
614	614	and whether the child can be counted toward a public school's
615	615	average daily attendance for purposes of the allocation of funding
616	616	under the foundation school program. The organization may not
617	617	retain information provided under this subsection beyond the period
618	618	necessary to determine a child's eligibility to participate in the
619	619	program.
620	620	(c) The certified educational assistance organization or an
621	621	education service provider or vendor of educational products that
622	622	obtains information regarding a participating child:
623	623	(1) shall comply with state and federal law regarding
624	624	the confidentiality of student educational information; and
625	625	(2) may not sell or otherwise distribute information
626	626	regarding a participating child.
627	627	Sec. 29.370. GIFTS, GRANTS, AND DONATIONS. The comptroller
628	628	and a certified educational assistance organization may solicit and
629	629	accept gifts, grants, and donations from any public or private
630	630	source for any expenses related to the administration of the
631	631	program, including establishing the program and contracting for the
632	632	report required under Section 29.371.
633	633	Sec. 29.371. ANNUAL REPORT. (a) The comptroller shall
634	634	require that each certified educational assistance organization
635	635	compile program data and produce an annual longitudinal report
636	636	regarding:
637	637	(1) the number of program applications received,
638	638	accepted, and wait-listed, disaggregated by age;
639	639	(2) program participant satisfaction;
640	640	(3) the results of assessment instruments shared in
641	641	accordance with Section 29.357(2);
642	642	(4) the effect of the program on public and private
643	643	school capacity and availability;
644	644	(5) the amount of cost savings accruing to the state as
645	645	a result of the program;
646	646	(6) in a report submitted in an even-numbered year
647	647	only, an estimate of the total amount of funding required for the
648	648	program for the next state fiscal biennium;
649	649	(7) the amount of gifts, grants, and donations
650	650	received under Section 29.370; and
651	651	(8) based on surveys of former program participants or
652	652	other sources available to an organization, the number and
653	653	percentage of children participating in the program who, within one
654	654	year after graduating from high school, are:
655	655	(A) college ready, as indicated by earning a
656	656	minimum of 12 non-remedial semester credit hours or the equivalent
657	657	or an associate degree from a postsecondary educational
658	658	institution;
659	659	(B) career ready, as indicated by:
660	660	(i) earning a credential of value included
661	661	in a library of credentials established under Section 2308A.007,
662	662	Government Code; or
663	663	(ii) employment at or above the median wage
664	664	in the child's region; or
665	665	(C) military ready, as indicated by achieving a
666	666	passing score set by the applicable military branch on the Armed
667	667	Services Vocational Aptitude Battery and enlisting in the armed
668	668	forces of the United States or the Texas National Guard.
669	669	(b) In producing the report, each certified educational
670	670	assistance organization shall:
671	671	(1) use appropriate analytical and behavioral science
672	672	methodologies to ensure public confidence in the report; and
673	673	(2) comply with the requirements regarding the
674	674	confidentiality of student educational information under the
675	675	Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
676	676	Section 1232g).
677	677	(c) The report must cover a period of not less than five
678	678	years and include, subject to Subsection (b)(2), the data analyzed
679	679	and methodology used.
680	680	(d) The comptroller and each certified educational
681	681	assistance organization shall post the report on the comptroller's
682	682	and organization's respective Internet websites.
683	683	Sec. 29.3715. COLLECTION AND REPORTING OF DEMOGRAPHIC
684	684	INFORMATION. (a) Each certified educational assistance
685	685	organization shall collect and report to the comptroller
686	686	demographic information regarding each participating child for
687	687	whom the organization is responsible. The report must include the
688	688	following demographic information:
689	689	(1) the child's grade;
690	690	(2) the child's age;
691	691	(3) the child's gender;
692	692	(4) the child's race or ethnicity;
693	693	(5) the school district in which the child
694	694	resides;
695	695	(6) the district campus that the child would
696	696	otherwise attend;
697	697	(7) the child's zip code;
698	698	(8) the child's date of enrollment in the
699	699	program;
700	700	(9) whether the child is educationally
701	701	disadvantaged; and
702	702	(10) whether the child has a disability.
703	703	(b) Not later than August 1 of each year, the comptroller
704	704	shall submit a written report to the legislature summarizing the
705	705	demographic information collected under this section.
706	706	Sec. 29.372. RULES; PROCEDURES. The comptroller shall
707	707	adopt rules and procedures as necessary to implement, administer,
708	708	and enforce this subchapter.
709	709	Sec. 29.373. APPEAL; FINALITY OF DECISIONS. (a) A program
710	710	participant may appeal to the comptroller an administrative
711	711	decision made by the comptroller or a certified educational
712	712	assistance organization under this subchapter, including a
713	713	decision regarding eligibility, allowable expenses, or the
714	714	participant's removal from the program.
715	715	(b) This subchapter may not be construed to confer a
716	716	property right on a certified educational assistance organization,
717	717	education service provider, vendor of educational products, or
718	718	program participant.
719	719	(c) A decision of the comptroller made under this subchapter
720	720	is final and not subject to appeal.
721	721	Sec. 29.374. RIGHT TO INTERVENE IN CIVIL ACTION. (a) A
722	722	program participant, education service provider, or vendor of
723	723	educational products may intervene in any civil action challenging
724	724	the constitutionality of the program.
725	725	(b) A court in which a civil action described by Subsection
726	726	(a) is filed may require that all program participants, education
727	727	service providers, and vendors of educational products wishing to
728	728	intervene in the action file a joint brief. A program participant,
729	729	education service provider, or vendor of educational products may
730	730	not be required to join a brief filed on behalf of the state or a
731	731	state agency.
732	732	SECTION 3. Section 22.092(d), Education Code, is amended to
733	733	read as follows:
734	734	(d) The agency shall provide equivalent access to the
735	735	registry maintained under this section to:
736	736	(1) private schools;
737	737	(2) public schools; [and]
738	738	(3) nonprofit teacher organizations approved by the
739	739	commissioner for the purpose of participating in the tutoring
740	740	program established under Section 33.913; and
741	741	(4) the comptroller for the purpose of preapproving
742	742	education service providers and vendors of educational products
743	743	under Section 29.358 for participation in the program established
744	744	under Subchapter J, Chapter 29.
745	745	SECTION 4. Section 411.109, Government Code, is amended by
746	746	adding Subsection (b-1) and amending Subsection (c) to read as
747	747	follows:
748	748	(b-1) The comptroller is entitled to obtain criminal
749	749	history record information as provided by Subsection (c) about a
750	750	person who is a private tutor, a therapist, or an employee of a
751	751	teaching service or school who intends to provide educational
752	752	services to a child participating in the program established under
753	753	Subchapter J, Chapter 29, Education Code, and is seeking approval
754	754	to receive money distributed under that program.
755	755	(c) Subject to Section 411.087 and consistent with the
756	756	public policy of this state, the comptroller is entitled to:
757	757	(1) obtain through the Federal Bureau of Investigation
758	758	criminal history record information maintained or indexed by that
759	759	bureau that pertains to a person described by Subsection (a), [or]
760	760	(b), or (b-1); and
761	761	(2) obtain from the department or any other criminal
762	762	justice agency in this state criminal history record information
763	763	maintained by the department or that criminal justice agency that
764	764	relates to a person described by Subsection (a), [or] (b), or (b-1).
765	765	SECTION 5. Subchapter J, Chapter 29, Education Code, as
766	766	added by this Act, applies beginning with the 2024-2025 school
767	767	year.
768	768	SECTION 6. (a) Not later than May 15, 2024, the comptroller
769	769	of public accounts shall adopt rules as provided by Sections
770	770	29.356(b-1) and 29.372, Education Code, as added by this Act.
771	771	(b) The comptroller of public accounts may identify rules
772	772	required by the passage of Subchapter J, Chapter 29, Education
773	773	Code, as added by this Act, that must be adopted on an emergency
774	774	basis for purposes of the 2024-2025 school year and may use the
775	775	procedures established under Section 2001.034, Government Code,
776	776	for adopting those rules. The comptroller of public accounts is not
777	777	required to make the finding described by Section 2001.034(a),
778	778	Government Code, to adopt emergency rules under this subsection.
779	779	SECTION 7. (a) The constitutionality and other validity
780	780	under the state or federal constitution of all or any part of
781	781	Subchapter J, Chapter 29, Education Code, as added by this Act, may
782	782	be determined in an action for declaratory judgment under Chapter
783	783	37, Civil Practice and Remedies Code, in a district court in the
784	784	county in which the violation is alleged to have occurred or where
785	785	the plaintiff resides or has its principal place of business.
786	786	(b) An order, however characterized, of a trial court
787	787	granting or denying a temporary or otherwise interlocutory
788	788	injunction or a permanent injunction on the grounds of the
789	789	constitutionality or unconstitutionality, or other validity or
790	790	invalidity, under the state or federal constitution of all or any
791	791	part of Subchapter J, Chapter 29, Education Code, as added by this
792	792	Act, may be reviewed only by direct appeal to the Texas Supreme
793	793	Court filed not later than the 15th business day after the date on
794	794	which the order was entered. The Texas Supreme Court shall give
795	795	precedence to appeals under this section over other matters.
796	796	(c) The direct appeal is an accelerated appeal.
797	797	(d) This section exercises the authority granted by Section
798	798	3-b, Article V, Texas Constitution.
799	799	(e) The filing of a direct appeal under this section will
800	800	automatically stay any temporary or otherwise interlocutory
801	801	injunction or permanent injunction granted in accordance with this
802	802	section pending final determination by the Texas Supreme Court,
803	803	unless the supreme court makes specific findings that the applicant
804	804	seeking such injunctive relief has pleaded and proved that:
805	805	(1) the applicant has a probable right to the relief it
806	806	seeks on final hearing;
807	807	(2) the applicant will suffer a probable injury that
808	808	is imminent and irreparable, and that the applicant has no other
809	809	adequate legal remedy; and
810	810	(3) maintaining the injunction is in the public
811	811	interest.
812	812	(f) An appeal under this section, including an
813	813	interlocutory, accelerated, or direct appeal, is governed, as
814	814	applicable, by the Texas Rules of Appellate Procedure, including
815	815	Rules 25.1(d)(6), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),
816	816	40.1(b), and 49.4.
817	817	(g) This section does not authorize an award of attorney's
818	818	fees against this state, and Section 37.009, Civil Practice and
819	819	Remedies Code, does not apply to an action filed under this section.
820	820	(h) This section does not authorize a taxpayer suit to
821	821	contest the denial of a tax credit by the comptroller of public
822	822	accounts.
823	823	SECTION 8. It is the intent of the legislature that every
824	824	provision, section, subsection, sentence, clause, phrase, or word
825	825	in this Act, and every application of the provisions in this Act to
826	826	each person or entity, is severable from each other. If any
827	827	application of any provision in this Act to any person, group of
828	828	persons, or circumstances is found by a court to be invalid for any
829	829	reason, the remaining applications of that provision to all other
830	830	persons and circumstances shall be severed and may not be affected.
831	831	SECTION 9. This Act takes effect on the 91st day after the
832	832	last day of the legislative session.