89R3428 RDR-F By: A. Davis of Dallas H.B. No. 2526 A BILL TO BE ENTITLED AN ACT relating to school district grace period policies and the provision of meals to public school students with insufficient balances on prepaid meal cards or in meal accounts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 33.908, Education Code, is amended to read as follows: Sec. 33.908. GRACE PERIOD POLICY FOR EXHAUSTED OR INSUFFICIENT MEAL CARD OR ACCOUNT BALANCE. (a) In this section, "regular meal" means a meal for which a school district ordinarily receives reimbursement under the national free or reduced-price lunch program established under 42 U.S.C. Section 1751 et seq. (b) The board of trustees of a school district that allows students to use a prepaid meal card or account to purchase meals served at schools in the district shall adopt a grace period policy regarding the use of the cards or accounts. The policy: (1) must allow a student whose meal card or account balance is exhausted or insufficient to continue, for a period determined by the board of at least one week, to purchase regular meals by: (A) accumulating a negative balance on the student's card or account; or (B) otherwise receiving an extension of credit from the district; (2) must require the district to make at least three attempts during the period described by Subdivision (1) to privately: (A) notify the parent of or person standing in parental relation to the student that the student's meal card or account balance is exhausted, including by sending home with the student in an unmarked envelope a written notice of a negative balance or other amount due and an application for free or reduced-price meals; (B) make arrangements with the parent or other person for payment of negative balances or amounts otherwise due, including through use of a payment plan; and (C) assist the parent or other person in completing an application on behalf of the student for free or reduced-price meals, if it is determined that the student may be eligible for free or reduced-price meals; (3) may not permit the district to charge a fee or interest in connection with meals purchased under Subdivision (1); and (4) may permit the district to set a schedule for repayment on the account balance or other amount due if the district is unable to set a repayment schedule by agreement through efforts required under Subdivision (2) [as part of the notice to the parent or person standing in parental relation to the student]. (c) After expiration of the period described by Subsection (b)(1) and completion of duties required under Subsection (b)(2), the school district shall continue to provide to the student regular meals as described by Subsection (b)(1) at no cost to the student. (d) If a school district is unable to obtain payment sufficient to cover the negative balance or extension of credit on a student's meal card or account from the student's parent or a person standing in parental relation to the student before the end of the school year, the district: (1) may apply toward the negative balance or credit private donations solicited for that purpose and maintained in a separate district account; (2) shall provide the parent or other person with an application on behalf of the student for free or reduced-price meals, if the district determines that the student may be eligible for free or reduced-price meals in the subsequent school year; and (3) may not transfer a negative balance on a student's meal card or account to the meal card or account held by the student in a subsequent school year. (e) A school district may not require a student to repeat a grade level, prevent a student from graduating, withhold a diploma from a student, or prohibit a student from participating in school-related activity due to a negative balance or extension of credit on the student's meal card or account. (f) A school district may not publicly identify a student with a negative balance or extension of credit on a meal card or account and must implement an action authorized under this section in a manner that does not stigmatize or cause embarrassment to a student. SECTION 2. This Act applies beginning with the 2025-2026 school year. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.