Texas 2025 - 89th Regular

Texas House Bill HB612 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R4056 KJE-F
2	2	By: Shaheen H.B. No. 612
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment of an education savings account
10	10	program, an insurance premium tax credit for contributions made for
11	11	purposes of that program, and the award of attorney's fees in
12	12	actions challenging certain educational choice laws.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. The legislature finds that:
15	15	(1) parents should be empowered to direct their
16	16	children's education;
17	17	(2) there is not one best educational option for all
18	18	children in this state;
19	19	(3) children belong to their parents, not to the
20	20	government;
21	21	(4) the best education for children in this state is
22	22	one directed by their parents, with all educational options made
23	23	available and accessible through a program in which money follows
24	24	each child to the educational option that best meets the child's
25	25	unique educational needs; and
26	26	(5) in Espinoza v. Montana Department of Revenue, 591
27	27	U.S. 464 (2020), and Carson v. Makin, 596 U.S. 767 (2022), the
28	28	United States Supreme Court held that state prohibitions on the use
29	29	of generally available state tuition assistance programs for
30	30	children to attend religious schools violate the Free Exercise
31	31	Clause of the First Amendment to the United States Constitution.
32	32	SECTION 2. Chapter 30, Civil Practice and Remedies Code, is
33	33	amended by adding Section 30.024 to read as follows:
34	34	Sec. 30.024. AWARD OF ATTORNEY'S FEES IN ACTIONS
35	35	CHALLENGING CERTAIN EDUCATIONAL CHOICE LAWS. (a) Notwithstanding
36	36	any other law, any person, including an entity, attorney, or law
37	37	firm, who seeks declaratory or injunctive relief to prevent this
38	38	state or a political subdivision, governmental entity, public
39	39	official, or other person in this state from enforcing any statute,
40	40	ordinance, rule, regulation, or other type of law that empowers
41	41	parents to direct their children's education, including an
42	42	educational choice program in which money follows a child to an
43	43	educational option selected by the child's parent or an insurance
44	44	premium tax credit program used in whole or in part to pay for such
45	45	an educational choice program, in any state or federal court, or
46	46	that represents any litigant seeking such relief in any state or
47	47	federal court, is jointly and severally liable to pay the costs and
48	48	attorney's fees of the prevailing party.
49	49	(b) For purposes of this section, a party is considered a
50	50	prevailing party if a state or federal court:
51	51	(1) dismisses any claim or cause of action brought
52	52	against the party that seeks the declaratory or injunctive relief
53	53	described by Subsection (a), regardless of the reason for the
54	54	dismissal; or
55	55	(2) enters judgment in the party's favor on any such
56	56	claim or cause of action.
57	57	(c) Regardless of whether a prevailing party sought to
58	58	recover costs or attorney's fees in the underlying action, a
59	59	prevailing party under this section may bring a civil action to
60	60	recover costs and attorney's fees against a person, including an
61	61	entity, attorney, or law firm, that sought declaratory or
62	62	injunctive relief described by Subsection (a) not later than the
63	63	third anniversary of the date on which, as applicable:
64	64	(1) the dismissal or judgment described by Subsection
65	65	(b) becomes final on the conclusion of appellate review; or
66	66	(2) the time for seeking appellate review expires.
67	67	(d) It is not a defense to an action brought under
68	68	Subsection (c) that:
69	69	(1) a prevailing party under this section failed to
70	70	seek recovery of costs or attorney's fees in the underlying action;
71	71	(2) the court in the underlying action declined to
72	72	recognize or enforce the requirements of this section; or
73	73	(3) the court in the underlying action held that any
74	74	provisions of this section are invalid, unconstitutional, or
75	75	preempted by federal law, notwithstanding the doctrines of issue or
76	76	claim preclusion.
77	77	SECTION 3. Chapter 29, Education Code, is amended by adding
78	78	Subchapter J to read as follows:
79	79	SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
80	80	Sec. 29.351. DEFINITIONS. In this subchapter:
81	81	(1) "Account" means an education savings account
82	82	established under the program.
83	83	(2) "Certified educational assistance organization"
84	84	means the educational assistance organization certified under
85	85	Section 29.355 to administer the program.
86	86	(3) "Child with a disability" means a child who is
87	87	eligible to participate in a school district's special education
88	88	program under Section 29.003.
89	89	(4) "Fund" means the education savings account program
90	90	fund.
91	91	(5) "Institution of higher education" and "private or
92	92	independent institution of higher education" have the meanings
93	93	assigned by Section 61.003.
94	94	(6) "Parent" means a resident of this state who is a
95	95	natural or adoptive parent, managing or possessory conservator,
96	96	legal guardian, custodian, or other person with legal authority to
97	97	act on behalf of a child.
98	98	(7) "Program" means the education savings account
99	99	program established under this subchapter.
100	100	(8) "Program participant" means a child and a parent
101	101	of a child enrolled in the program.
102	102	Sec. 29.352. PURPOSES. The purposes of the education
103	103	savings account program are to provide school-aged children with
104	104	additional educational options in order to achieve a general
105	105	diffusion of knowledge and to empower parents to direct their
106	106	children's education.
107	107	Sec. 29.353. ESTABLISHMENT OF PROGRAM. The comptroller
108	108	shall establish the education savings account program to provide
109	109	funding for approved education-related expenses of eligible
110	110	children admitted into the program.
111	111	Sec. 29.354. EDUCATION SAVINGS ACCOUNT PROGRAM FUND. (a)
112	112	The education savings account program fund is an account in the
113	113	general revenue fund to be administered by the comptroller.
114	114	(b) The fund is composed of:
115	115	(1) general revenue transferred to the fund;
116	116	(2) money appropriated to the fund;
117	117	(3) gifts, grants, and donations received under
118	118	Section 29.371;
119	119	(4) contributions to the fund for which an entity
120	120	receives a credit against the entity's state premium tax liability
121	121	under Chapter 230, Insurance Code; and
122	122	(5) any other money available for purposes of the
123	123	program.
124	124	(c) Money in the fund may be appropriated only to the
125	125	comptroller for purposes of making payments to program participants
126	126	and administering the program under this subchapter.
127	127	Sec. 29.355. SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
128	128	ORGANIZATIONS. (a) An organization may apply to the comptroller
129	129	for certification as a certified educational assistance
130	130	organization during an application period established by the
131	131	comptroller.
132	132	(b) To be eligible for certification, an organization must:
133	133	(1) have the ability to perform the duties and
134	134	functions required of a certified educational assistance
135	135	organization under this subchapter as provided by the
136	136	organization's charter;
137	137	(2) be exempt from federal taxation under Section
138	138	501(a) of the Internal Revenue Code of 1986 by being listed as an
139	139	exempt organization in Section 501(c)(3) of that code;
140	140	(3) be in good standing with the state; and
141	141	(4) be able to administer the program, including the
142	142	ability to:
143	143	(A) accept, process, and track applications for
144	144	the program; and
145	145	(B) verify that program funding is used only for
146	146	approved education-related expenses.
147	147	(c) The comptroller shall certify at least one but not more
148	148	than three educational assistance organizations to assist in
149	149	administering the program, including by verifying:
150	150	(1) a child's eligibility for the program; and
151	151	(2) the use of funds in a program participant's account
152	152	only for purposes approved under Section 29.360.
153	153	Sec. 29.356. ELIGIBLE CHILD. (a) A child is eligible to
154	154	participate in the program if the child is eligible to attend a
155	155	public school under Section 25.001 and:
156	156	(1) attended a public school during the entire
157	157	preceding school year;
158	158	(2) is entering kindergarten for the first time; or
159	159	(3) participated in the program during the preceding
160	160	school year.
161	161	(b) Notwithstanding Subsection (a), a child who is eligible
162	162	to attend a public school under Section 25.001 is eligible to
163	163	participate in the program if the comptroller determines that
164	164	sufficient funding is available for the first year of the child's
165	165	participation in the program from money in the fund.
166	166	(c) A child who establishes eligibility under this section
167	167	may participate in the program until the earliest of the following
168	168	dates:
169	169	(1) the date on which the child graduates from high
170	170	school or obtains a high school equivalency certificate;
171	171	(2) the date on which the child is no longer eligible
172	172	to attend a public school under Section 25.001;
173	173	(3) the date on which the child enrolls in a public
174	174	school, including an open-enrollment charter school; or
175	175	(4) the date on which the child is declared ineligible
176	176	for the program by the comptroller under this subchapter.
177	177	Sec. 29.357. APPLICATION TO PROGRAM. (a) A parent of an
178	178	eligible child may apply to a certified educational assistance
179	179	organization to enroll the child in the program for the following
180	180	school year. The parent must provide any information requested by
181	181	the organization for purposes of verifying the child's eligibility
182	182	for the program.
183	183	(b) Each certified educational assistance organization
184	184	shall create an application form for the program and make the
185	185	application form readily available to interested parents through
186	186	various sources, including the organization's Internet website.
187	187	The organization shall ensure that the application form is capable
188	188	of being submitted to the organization electronically.
189	189	(c) Each certified educational assistance organization
190	190	shall post on the organization's Internet website and provide to
191	191	each parent who submits an application form to the organization a
192	192	publication that describes the operation of the program, including:
193	193	(1) expenses allowed under the program under Section
194	194	29.360;
195	195	(2) the organization's expense reporting
196	196	requirements; and
197	197	(3) a description of the responsibilities of program
198	198	participants and the duties of the organization under this
199	199	subchapter.
200	200	(d) Subject to the availability of funding, each certified
201	201	educational assistance organization shall admit into the program
202	202	each child for whom the organization received an application under
203	203	this section if the organization verifies that the child is
204	204	eligible to participate in the program. If available funding is
205	205	insufficient to admit each eligible child into the program, the
206	206	organization shall prioritize admitting children in the following
207	207	order:
208	208	(1) children who participated in the program during
209	209	the preceding school year;
210	210	(2) siblings of children who participated in the
211	211	program during the preceding school year; and
212	212	(3) children with a disability.
213	213	Sec. 29.358. PARTICIPATION IN PROGRAM. (a) To receive
214	214	funding under the program, a parent of an eligible child must agree
215	215	to:
216	216	(1) spend money received through the program only for
217	217	expenses allowed under Section 29.360; and
218	218	(2) notify the parent's certified educational
219	219	assistance organization not later than 30 days after the date on
220	220	which the child:
221	221	(A) enrolls in a public school, including an
222	222	open-enrollment charter school;
223	223	(B) graduates from high school or obtains a high
224	224	school equivalency certificate; or
225	225	(C) is no longer eligible to enroll in a public
226	226	school under Section 25.001.
227	227	(b) The parent of a child participating in the program is
228	228	the trustee of the child's account.
229	229	(c) Each certified educational assistance organization
230	230	shall provide annually to each program participant admitted by the
231	231	organization the publication provided under Section 29.357(c). The
232	232	publication may be provided electronically.
233	233	Sec. 29.359. APPROVED PROVIDERS; PARENTAL REVIEW
234	234	COMMITTEE. (a) The comptroller shall by rule establish a parental
235	235	review committee to review and approve applications for preapproval
236	236	of education service providers and vendors of educational products.
237	237	The comptroller shall post on the comptroller's Internet website
238	238	and provide to each certified educational assistance organization
239	239	the list of preapproved providers and vendors.
240	240	(b) The parental review committee consists of nine parents
241	241	of school-aged children, appointed as follows:
242	242	(1) three members appointed by the governor as
243	243	follows:
244	244	(A) one parent of a child enrolled in a public
245	245	school;
246	246	(B) one parent of a child enrolled in a private
247	247	school other than a home school; and
248	248	(C) one parent of a child being homeschooled;
249	249	(2) three members appointed by the lieutenant governor
250	250	as follows:
251	251	(A) one parent of a child enrolled in a public
252	252	school;
253	253	(B) one parent of a child enrolled in a private
254	254	school other than a home school; and
255	255	(C) one parent of a child being homeschooled; and
256	256	(3) three members appointed by the speaker of the
257	257	house of representatives as follows:
258	258	(A) one parent of a child enrolled in a public
259	259	school;
260	260	(B) one parent of a child enrolled in a private
261	261	school other than a home school; and
262	262	(C) one parent of a child being homeschooled.
263	263	(c) A person may not serve as a member of the parental review
264	264	committee if the person is:
265	265	(1) required to register as a lobbyist under Chapter
266	266	305, Government Code, for the purpose of lobbying a member of the
267	267	legislature; or
268	268	(2) employed by a nonprofit state association or
269	269	organization that primarily represents political subdivisions and
270	270	hires or contracts with a person required to register as a lobbyist
271	271	under Chapter 305, Government Code.
272	272	(d) The parental review committee shall create a process for
273	273	program participants to request the preapproval of education
274	274	service providers and vendors of educational products.
275	275	(e) The parental review committee shall approve an
276	276	education service provider or vendor of educational products for
277	277	participation in the program not later than the 30th day after the
278	278	date the committee receives the provider's or vendor's application
279	279	if the provider or vendor:
280	280	(1) for a private school, executes a notarized
281	281	affidavit, with supporting documents, concerning the school's
282	282	qualification to serve program participants, including evidence
283	283	of:
284	284	(A) the annual administration of a nationally
285	285	standardized norm-referenced assessment instrument;
286	286	(B) a valid certificate of occupancy;
287	287	(C) policy statements regarding:
288	288	(i) admissions;
289	289	(ii) curriculum;
290	290	(iii) safety;
291	291	(iv) student to teacher ratios; and
292	292	(v) assessments;
293	293	(D) the school's agreement that program
294	294	participants are eligible to apply for scholarships offered by the
295	295	school to the same extent as other children; and
296	296	(E) accreditation by an organization recognized
297	297	by the agency or the Texas Private School Accreditation Commission;
298	298	(2) for a private tutor, therapist, or teaching
299	299	service:
300	300	(A) executes a notarized affidavit, with
301	301	supporting documents, concerning the tutor's, therapist's, or
302	302	service's qualification to serve program participants, including
303	303	evidence that the tutor or therapist or each employee of the service
304	304	who intends to provide services to a program participant:
305	305	(i) is certified under Subchapter B,
306	306	Chapter 21;
307	307	(ii) holds a relevant license or
308	308	accreditation issued by a state, regional, or national licensing or
309	309	accreditation organization; or
310	310	(iii) is employed in a teaching or tutoring
311	311	capacity at an institution of higher education or private or
312	312	independent institution of higher education; and
313	313	(B) the tutor or therapist or each employee of
314	314	the teaching service who intends to provide educational services to
315	315	a program participant either:
316	316	(i) completes a national criminal history
317	317	record information review; or
318	318	(ii) provides to the comptroller
319	319	documentation indicating that the tutor, therapist, or employee, as
320	320	applicable, has completed a national criminal history record
321	321	information review within a period established by comptroller rule;
322	322	(3) for an online educational course or program
323	323	provider, executes a notarized affidavit, with supporting
324	324	documents, concerning the provider's qualification to serve
325	325	program participants; or
326	326	(4) for any provider or vendor not described by
327	327	Subdivision (1), (2), or (3), presents any necessary supporting
328	328	documents concerning the provider's or vendor's qualification to
329	329	serve program participants.
330	330	(f) The comptroller shall review the national criminal
331	331	history record information or documentation for each private tutor,
332	332	therapist, or teaching service who submits an application. The
333	333	tutor, therapist, or service must provide the comptroller with any
334	334	information requested by the comptroller to enable the comptroller
335	335	to complete the review. The comptroller shall report the
336	336	comptroller's findings from the review to the parental review
337	337	committee.
338	338	(g) Each certified educational assistance organization
339	339	shall post on the organization's Internet website the list of
340	340	preapproved education service providers and vendors of educational
341	341	products provided under Subsection (a).
342	342	Sec. 29.360. APPROVED EDUCATION-RELATED EXPENSES. (a)
343	343	Subject to Subsection (b), money received under the program may be
344	344	used only for the following expenses incurred by a program
345	345	participant at a preapproved education service provider or vendor:
346	346	(1) tuition and fees:
347	347	(A) at a private school;
348	348	(B) at an institution of higher education or a
349	349	private or independent institution of higher education;
350	350	(C) for an online educational course or program;
351	351	or
352	352	(D) at another education service provider;
353	353	(2) the purchase of textbooks or other instructional
354	354	materials or uniforms required by a school, institution, course, or
355	355	program described by Subdivision (1) in which the child is
356	356	enrolled;
357	357	(3) payments for the purchase of a curriculum;
358	358	(4) fees for classes or other educational services or
359	359	extracurricular programs provided by a public school;
360	360	(5) fees for services provided by a private tutor or
361	361	teaching service;
362	362	(6) fees for educational therapies or services
363	363	provided by a practitioner or provider, only for fees or portions of
364	364	fees that are not covered by any federal, state, or local government
365	365	benefits such as Medicaid or the Children's Health Insurance
366	366	Program (CHIP) or by any private insurance that the child is
367	367	enrolled in at the time of receiving the therapies or services;
368	368	(7) costs of computer hardware and other technological
369	369	devices that are primarily used for educational purposes, including
370	370	a calculator, personal computer, laptop, tablet, microscope,
371	371	telescope, or printer, not to exceed in any year 10 percent of the
372	372	total amount deposited in the program participant's account that
373	373	year;
374	374	(8) fees for a nationally standardized
375	375	norm-referenced achievement test, an advanced placement test or
376	376	similar examination, or any examination related to college or
377	377	university admission; and
378	378	(9) fees for transportation services provided by a
379	379	fee-for-service transportation provider for the child to travel to
380	380	and from an education service provider, not to exceed $1,000 per
381	381	school year.
382	382	(b) Money received under the program may not be used to pay
383	383	any person who is:
384	384	(1) related to the program participant within the
385	385	third degree of consanguinity or affinity, as determined under
386	386	Chapter 573, Government Code; or
387	387	(2) a member of the program participant's household.
388	388	(c) A finding that a program participant used money
389	389	distributed under the program to pay for an expense not allowed
390	390	under Subsection (a) does not affect the validity of any payment
391	391	made by the participant for an expense that is allowed under that
392	392	subsection.
393	393	Sec. 29.361. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
394	394	an eligible child shall receive each year that the child
395	395	participates in the program a payment from the state to the child's
396	396	account in an amount equal to the state average maintenance and
397	397	operations expenditures per student in average daily attendance for
398	398	the preceding state fiscal year.
399	399	(b) Any money remaining in a child's account at the end of a
400	400	fiscal year is carried forward to the next fiscal year unless
401	401	another provision of this subchapter mandates the closure of the
402	402	account.
403	403	(c) The parent of a child participating in the program may
404	404	make payments for the expenses of educational programs, services,
405	405	and products not covered by money in the child's account.
406	406	(d) A payment under Subsection (a) may not be financed using
407	407	federal money.
408	408	(e) Not later than November 1 of each even-numbered year,
409	409	the comptroller shall submit to the legislature an estimate of the
410	410	total amount of funding required for the program for the following
411	411	state fiscal biennium.
412	412	Sec. 29.362. ADMINISTRATION OF ACCOUNTS. (a) The
413	413	comptroller shall establish and maintain an account for each child
414	414	participating in the program.
415	415	(b) The comptroller shall make payments to each program
416	416	participant's account on a schedule set by comptroller rule.
417	417	(c) The comptroller may use money available for the program
418	418	to cover the comptroller's cost of administering the program. The
419	419	comptroller may not reduce any payment to a program participant's
420	420	account for purposes of this subsection.
421	421	(d) The comptroller shall disburse to each certified
422	422	educational assistance organization an amount from the total amount
423	423	of money appropriated for purposes of this subchapter to cover the
424	424	organization's cost of administering the program. The total amount
425	425	disbursed under this subsection for a state fiscal year may not
426	426	exceed five percent of the amount appropriated for purposes of this
427	427	subchapter for that fiscal year.
428	428	(e) Before each payment is made under Subsection (b), each
429	429	certified educational assistance organization shall:
430	430	(1) compare the list of program participants admitted
431	431	by the organization with public school enrollment lists maintained
432	432	by the agency; and
433	433	(2) notify the comptroller if the organization
434	434	determines that a program participant is enrolled in a public
435	435	school, including an open-enrollment charter school.
436	436	(f) Except as provided by Section 29.363, on the date on
437	437	which a child who participated in the program is no longer eligible
438	438	to participate in the program under Section 29.356(c), the child's
439	439	account is closed and any remaining money is returned to the state
440	440	for deposit in the fund.
441	441	Sec. 29.363. ACCOUNT EXTENSION. (a) A program participant
442	442	may apply to the participant's certified educational assistance
443	443	organization for an extension to allow for:
444	444	(1) the child's account to remain open after the date
445	445	on which the child's account would otherwise be closed under
446	446	Section 29.362(f) for a reason described by Section 29.356(c)(1);
447	447	and
448	448	(2) the money remaining in the account to be used for
449	449	expenses described by Subsection (e).
450	450	(b) Each certified educational assistance organization
451	451	shall create an application form for the extension of a child's
452	452	account under Subsection (a) and make the application form readily
453	453	available to program participants through various sources,
454	454	including the organization's Internet website.
455	455	(c) A certified educational assistance organization shall
456	456	approve an application for the extension of a child's account
457	457	submitted under this section if the program participant:
458	458	(1) submits the application form not later than the
459	459	30th day before the date on which the child is anticipated to
460	460	graduate from high school or obtain a high school equivalency
461	461	certificate; and
462	462	(2) includes with the application form documentation
463	463	regarding the intended use of the money remaining in the account for
464	464	expenses described by Subsection (e).
465	465	(d) Not later than the 30th day after receipt of an
466	466	application under this section, a certified educational assistance
467	467	organization shall:
468	468	(1) approve or deny the application; and
469	469	(2) notify in writing:
470	470	(A) the program participant regarding the
471	471	organization's decision on the application and, if the application
472	472	is denied, the grounds for denial; and
473	473	(B) the comptroller regarding the approval of an
474	474	application.
475	475	(e) Money remaining in a child's account extended under this
476	476	section on the date on which the account would otherwise be closed
477	477	under Section 29.362(f) may be used only for the following expenses
478	478	incurred by the child:
479	479	(1) tuition and fees:
480	480	(A) for courses that lead to occupational
481	481	licensing or certification; or
482	482	(B) at an institution of higher education, a
483	483	private or independent institution of higher education, or a career
484	484	school or college, as that term is defined by Section 132.001;
485	485	(2) the purchase of textbooks or other instructional
486	486	materials or uniforms required by a course or institution described
487	487	by Subdivision (1) in which the child is enrolled; and
488	488	(3) fees to obtain an occupational license or
489	489	certification, including fees for an examination necessary to
490	490	obtain the license or certification.
491	491	(f) Section 29.361(a) does not apply to a program
492	492	participant whose account is extended under this section.
493	493	Sec. 29.364. RANDOM AUDITING. (a) The comptroller may
494	494	contract with a private entity to randomly audit accounts and
495	495	certified educational assistance organizations as necessary to
496	496	ensure compliance with applicable law and the requirements of the
497	497	program.
498	498	(b) In conducting an audit, the comptroller or private
499	499	entity may require that a program participant or certified
500	500	educational assistance organization provide additional information
501	501	and documentation regarding any payment made under the program.
502	502	(c) The private entity shall report to the comptroller any
503	503	violation of this subchapter or other relevant law found by the
504	504	entity during an audit conducted under this section.
505	505	Sec. 29.365. SUSPENSION OF ACCOUNT. (a) The comptroller
506	506	shall suspend the account of a program participant who fails to
507	507	comply with applicable law or a requirement of the program.
508	508	(b) On suspension of an account under Subsection (a), the
509	509	comptroller shall notify the program participant in writing that
510	510	the account has been suspended and that no additional payments may
511	511	be made from the account. The notification must specify the grounds
512	512	for the suspension and state that the participant has 10 business
513	513	days to respond and take any corrective action required by the
514	514	comptroller.
515	515	(c) On the expiration of the 10-day period under Subsection
516	516	(b), the comptroller shall:
517	517	(1) order permanent closure of the suspended account
518	518	and declare the program participant ineligible for the program;
519	519	(2) order temporary reinstatement of the account,
520	520	conditioned on the performance of a specified action by the
521	521	participant; or
522	522	(3) order full reinstatement of the account.
523	523	(d) The comptroller may recover money distributed under the
524	524	program that was used for expenses not allowed under Section 29.360
525	525	from the program participant or the entity that received the money
526	526	if the participant's account is suspended or closed under this
527	527	section.
528	528	Sec. 29.366. TUITION AND FEES; REFUND PROHIBITED. (a) An
529	529	education service provider may not charge a child participating in
530	530	the program an amount greater than the standard amount charged for
531	531	that service by the provider.
532	532	(b) An education service provider or a vendor of educational
533	533	products receiving money distributed under the program may not in
534	534	any manner rebate, refund, or credit to or share with a program
535	535	participant, or any person on behalf of a participant, any program
536	536	money paid or owed by the participant to the provider or vendor.
537	537	Sec. 29.367. REFERRAL TO ATTORNEY GENERAL. (a) If the
538	538	comptroller or a certified educational assistance organization
539	539	obtains evidence of fraudulent use of an account, the comptroller
540	540	or organization may refer the case to the attorney general for
541	541	investigation.
542	542	(b) With the consent of the appropriate local county or
543	543	district attorney, the attorney general has concurrent
544	544	jurisdiction with the consenting local prosecutor to prosecute an
545	545	offense referred to the attorney general under Subsection (a).
546	546	Sec. 29.368. SPECIAL EDUCATION NOTICE. (a) Each certified
547	547	educational assistance organization shall post on the
548	548	organization's Internet website and provide to each parent who
549	549	submits to the organization an application for the program on
550	550	behalf of a child with a disability a notice that:
551	551	(1) states that a private school is not subject to laws
552	552	regarding the provision of educational services in the same manner
553	553	as a public school, and a child with a disability attending a
554	554	private school may not receive the services a child with a
555	555	disability attending a public school is entitled to receive under
556	556	federal and state law; and
557	557	(2) provides information regarding rights to which a
558	558	child with a disability is entitled under federal and state law if
559	559	the child attends a public school, including:
560	560	(A) rights provided under the Individuals with
561	561	Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
562	562	including:
563	563	(i) an individualized education program;
564	564	(ii) educational services provided in the
565	565	least restrictive environment;
566	566	(iii) instruction from certified teachers;
567	567	(iv) due process hearings to ensure proper
568	568	and full implementation of an individualized education program;
569	569	(v) transition and planning services; and
570	570	(vi) supplementary aids and services;
571	571	(B) rights provided under Subchapter A; and
572	572	(C) other rights provided under federal or state
573	573	law.
574	574	(b) A private school in which a child with a disability who
575	575	is participating in the program enrolls shall provide to the
576	576	child's parent a copy of the notice required under Subsection (a).
577	577	Sec. 29.369. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
578	578	AUTONOMY. (a) A rule adopted or action taken related to the
579	579	program by an individual, governmental entity, court of law, or
580	580	program administrator may not:
581	581	(1) consider the actions of an education service
582	582	provider, vendor of educational products, or program participant to
583	583	be the actions of an agent of state government;
584	584	(2) limit:
585	585	(A) an education service provider's ability to
586	586	determine the methods used to educate the provider's students or to
587	587	exercise the provider's religious or institutional values; or
588	588	(B) a program participant's ability to determine
589	589	the participant's educational content or to exercise the
590	590	participant's religious values;
591	591	(3) obligate an education service provider or program
592	592	participant to act contrary to the provider's or participant's
593	593	religious or institutional values, as applicable;
594	594	(4) impose any regulation on an education service
595	595	provider, vendor of educational products, or program participant
596	596	beyond those regulations necessary to enforce the requirements of
597	597	the program; or
598	598	(5) require as a condition of receiving money
599	599	distributed under the program:
600	600	(A) an education service provider to modify the
601	601	provider's creed, practices, admissions policies, curriculum,
602	602	performance standards, employment policies, or assessments; or
603	603	(B) a program participant to modify the
604	604	participant's creed, practices, curriculum, performance standards,
605	605	or assessments.
606	606	(b) In a proceeding challenging a rule adopted by a state
607	607	agency or officer under this subchapter, the agency or officer has
608	608	the burden of proof to establish by clear and convincing evidence
609	609	that the rule:
610	610	(1) is necessary to implement or enforce the program
611	611	as provided by this subchapter; and
612	612	(2) does not impose an undue burden on a program
613	613	participant or an education service provider or vendor of
614	614	educational products that receives or seeks to receive money
615	615	distributed under the program.
616	616	Sec. 29.370. STUDENT RECORDS AND INFORMATION. (a) On
617	617	request by the parent of a child participating or seeking to
618	618	participate in the program, the school district or open-enrollment
619	619	charter school that the child would otherwise attend shall provide
620	620	a copy of the child's school records possessed by the district or
621	621	school, if any, to the child's parent or, if applicable, the private
622	622	school the child attends.
623	623	(b) The agency shall provide to each certified educational
624	624	assistance organization any information available to the agency
625	625	requested by the organization regarding a child who participates or
626	626	seeks to participate in the program. The organization may not
627	627	retain information provided under this subsection beyond the period
628	628	necessary to determine a child's eligibility to participate in the
629	629	program.
630	630	Sec. 29.371. GIFTS, GRANTS, AND DONATIONS. The comptroller
631	631	may solicit and accept gifts, grants, and donations from any public
632	632	or private source for any expenses related to the administration of
633	633	the program, including the initial implementation of the program.
634	634	Sec. 29.372. RULES; PROCEDURES. (a) The comptroller shall
635	635	adopt rules and procedures only as necessary to implement,
636	636	administer, and enforce this subchapter.
637	637	(b) A rule adopted under Subsection (a) is binding on an
638	638	organization that applies for certification as an educational
639	639	assistance organization and a state or local governmental entity,
640	640	including a political subdivision, as necessary to implement,
641	641	administer, and enforce this subchapter.
642	642	Sec. 29.373. RIGHT TO INTERVENE IN CIVIL ACTION. (a) A
643	643	program participant may intervene in any civil action challenging
644	644	the constitutionality of the program or the insurance premium tax
645	645	credit under Chapter 230, Insurance Code.
646	646	(b) A court in which a civil action described by Subsection
647	647	(a) is filed may require that all program participants wishing to
648	648	intervene in the action file a joint brief. A program participant
649	649	may not be required to join a brief filed on behalf of the state or a
650	650	state agency.
651	651	SECTION 4. Section 411.109, Government Code, is amended by
652	652	adding Subsection (b-1) and amending Subsection (c) to read as
653	653	follows:
654	654	(b-1) The comptroller is entitled to obtain criminal
655	655	history record information as provided by Subsection (c) about a
656	656	person who is a private tutor, a therapist, or an employee of a
657	657	teaching service or school who intends to provide educational
658	658	services to a child participating in the program established under
659	659	Subchapter J, Chapter 29, Education Code, and is seeking approval
660	660	to receive money distributed under that program.
661	661	(c) Subject to Section 411.087 and consistent with the
662	662	public policy of this state, the comptroller is entitled to:
663	663	(1) obtain through the Federal Bureau of Investigation
664	664	criminal history record information maintained or indexed by that
665	665	bureau that pertains to a person described by Subsection (a), [or]
666	666	(b), or (b-1); and
667	667	(2) obtain from the department or any other criminal
668	668	justice agency in this state criminal history record information
669	669	maintained by the department or that criminal justice agency that
670	670	relates to a person described by Subsection (a), [or] (b), or (b-1).
671	671	SECTION 5. Subtitle B, Title 3, Insurance Code, is amended
672	672	by adding Chapter 230 to read as follows:
673	673	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
674	674	EDUCATION SAVINGS ACCOUNT PROGRAM
675	675	SUBCHAPTER A. GENERAL PROVISIONS
676	676	Sec. 230.001. DEFINITIONS. In this chapter:
677	677	(1) "Fund" means the education savings account program
678	678	fund under Section 29.354, Education Code.
679	679	(2) "State premium tax liability" means any liability
680	680	incurred by an entity under Chapters 221 through 226.
681	681	SUBCHAPTER B. CREDIT
682	682	Sec. 230.051. CREDIT. An entity may apply for a credit
683	683	against the entity's state premium tax liability in the amount and
684	684	under the conditions provided by this chapter. The comptroller
685	685	shall award credits as provided by Section 230.054.
686	686	Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
687	687	Subject to Subsections (b) and (c), the amount of an entity's credit
688	688	is equal to the lesser of the amount contributed to the fund during
689	689	the period covered by the tax report or the amount of the entity's
690	690	state premium tax liability for the report.
691	691	(b) For the 2026 state fiscal year, the total amount of
692	692	credits that may be awarded under this chapter may not exceed $200
693	693	million. For each subsequent state fiscal year, the total amount of
694	694	credits that may be awarded is:
695	695	(1) the same total amount of credits available under
696	696	this subsection for the previous state fiscal year, if Subdivision
697	697	(2) does not apply; or
698	698	(2) 125 percent of the total amount of credits
699	699	available under this subsection for the previous state fiscal year,
700	700	if the total amount of credits awarded in the previous state fiscal
701	701	year was at least 90 percent of the total amount of credits
702	702	available under this subsection for that fiscal year.
703	703	(c) The comptroller by rule shall prescribe procedures by
704	704	which the comptroller may allocate credits under this chapter. The
705	705	procedures must provide that credits are allocated first to
706	706	entities that received preliminary approval for a credit under
707	707	Section 230.053 and that apply under Section 230.054. The
708	708	procedures must provide that any remaining credits are allocated to
709	709	entities that apply under Section 230.054 on a first-come,
710	710	first-served basis, based on the date the contribution was
711	711	initially made.
712	712	(d) The comptroller may require an entity to notify the
713	713	comptroller of the amount the entity intends or expects to apply for
714	714	under this chapter before the beginning of a state fiscal year or at
715	715	any other time required by the comptroller.
716	716	Sec. 230.053. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
717	717	making a contribution to the fund, an entity may apply to the
718	718	comptroller for preliminary approval of a credit under this chapter
719	719	for the contribution.
720	720	(b) An entity must apply for preliminary approval on a form
721	721	provided by the comptroller that includes the amount the entity
722	722	expects to contribute and any other information the comptroller
723	723	requires.
724	724	(c) The comptroller shall grant preliminary approval for
725	725	credits under this chapter on a first-come, first-served basis,
726	726	based on the date the comptroller receives the application for
727	727	preliminary approval.
728	728	(d) The comptroller shall grant preliminary approval for a
729	729	credit under this chapter for a state fiscal year if the sum of the
730	730	amount of the credit and the total amount of all other credits
731	731	preliminarily approved under this chapter does not exceed the
732	732	amount provided by Section 230.052(b).
733	733	(e) Final award of a credit preliminarily approved under
734	734	this section remains subject to the limitations under Section
735	735	230.052(a) and all other requirements of this chapter.
736	736	Sec. 230.054. APPLICATION FOR CREDIT. (a) An entity must
737	737	apply for a credit under this chapter on or with the tax report
738	738	covering the period in which the contribution was made.
739	739	(b) The comptroller shall adopt a form for the application
740	740	for the credit. An entity must use this form in applying for the
741	741	credit.
742	742	(c) Subject to Section 230.052(c), the comptroller may
743	743	award a credit to an entity that applies for the credit under
744	744	Subsection (a) if the entity is eligible for the credit and the
745	745	credit is available under Section 230.052(b). The comptroller has
746	746	broad discretion in determining whether to grant or deny an
747	747	application for a credit.
748	748	(d) The comptroller shall notify an entity in writing of the
749	749	comptroller's decision to grant or deny the application under
750	750	Subsection (a). If the comptroller denies an entity's application,
751	751	the comptroller shall include in the notice of denial the reasons
752	752	for the comptroller's decision.
753	753	(e) If the comptroller denies an entity's application under
754	754	Subsection (a), the entity may request in writing a reconsideration
755	755	of the application not later than the 10th day after the date the
756	756	notice under Subsection (d) is received. If the entity does not
757	757	request a reconsideration of the application on or before that
758	758	date, the comptroller's decision is final.
759	759	(f) An entity that requests a reconsideration under
760	760	Subsection (e) may submit to the comptroller, not later than the
761	761	30th day after the date the request for reconsideration is
762	762	submitted, additional information and documents to support the
763	763	entity's request for reconsideration.
764	764	(g) The comptroller's reconsideration of an application
765	765	under this section is not a contested case under Chapter 2001,
766	766	Government Code. The comptroller's decision on a request for
767	767	reconsideration of an application is final and is not appealable.
768	768	(h) This section does not create a cause of action to
769	769	contest a decision of the comptroller to deny an application for a
770	770	credit under this chapter.
771	771	Sec. 230.055. RULES; PROCEDURES. The comptroller shall
772	772	adopt rules and procedures to implement, administer, and enforce
773	773	this chapter.
774	774	Sec. 230.056. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
775	775	may not convey, assign, or transfer the credit allowed under this
776	776	chapter to another entity unless all of the assets of the entity are
777	777	conveyed, assigned, or transferred in the same transaction.
778	778	Sec. 230.057. NOTICE OF AVAILABILITY OF CREDIT. The
779	779	comptroller shall provide notice of the availability of the credit
780	780	under this chapter on the comptroller's Internet website, in the
781	781	instructions for insurance premium tax report forms, and in any
782	782	notice sent to an entity concerning the requirement to file an
783	783	insurance premium tax report.
784	784	SECTION 6. Subchapter J, Chapter 29, Education Code, as
785	785	added by this Act, applies beginning with the 2026-2027 school
786	786	year.
787	787	SECTION 7. An entity may apply for a credit under Chapter
788	788	230, Insurance Code, as added by this Act, only for a contribution
789	789	made on or after the effective date of this Act.
790	790	SECTION 8. Not later than February 15, 2026, the
791	791	comptroller of public accounts shall adopt rules as provided by
792	792	Section 230.055, Insurance Code, as added by this Act.
793	793	SECTION 9. Chapter 230, Insurance Code, as added by this
794	794	Act, applies only to a tax report originally due on or after the
795	795	effective date of this Act.
796	796	SECTION 10. (a) The constitutionality and other validity
797	797	under the state or federal constitution of all or any part of
798	798	Subchapter J, Chapter 29, Education Code, as added by this Act, or
799	799	Chapter 230, Insurance Code, as added by this Act, may be determined
800	800	in an action for declaratory judgment in a district court in Travis
801	801	County under Chapter 37, Civil Practice and Remedies Code, except
802	802	that this section does not authorize an award of attorney's fees
803	803	against this state and Section 37.009, Civil Practice and Remedies
804	804	Code, does not apply to an action filed under this section. This
805	805	section does not authorize a taxpayer suit to contest the denial of
806	806	a tax credit by the comptroller of public accounts.
807	807	(b) An appeal of a declaratory judgment or order, however
808	808	characterized, of a district court, including an appeal of the
809	809	judgment of an appellate court, holding or otherwise determining
810	810	that all or any part of Subchapter J, Chapter 29, Education Code, as
811	811	added by this Act, or Chapter 230, Insurance Code, as added by this
812	812	Act, is constitutional or unconstitutional, or otherwise valid or
813	813	invalid, under the state or federal constitution is an accelerated
814	814	appeal.
815	815	(c) If the judgment or order is interlocutory, an
816	816	interlocutory appeal may be taken from the judgment or order and is
817	817	an accelerated appeal.
818	818	(d) A district court in Travis County may grant or deny a
819	819	temporary or otherwise interlocutory injunction or a permanent
820	820	injunction on the grounds of the constitutionality or
821	821	unconstitutionality, or other validity or invalidity, under the
822	822	state or federal constitution of all or any part of Subchapter J,
823	823	Chapter 29, Education Code, as added by this Act, or Chapter 230,
824	824	Insurance Code, as added by this Act.
825	825	(e) There is a direct appeal to the Texas Supreme Court from
826	826	an order, however characterized, of a trial court granting or
827	827	denying a temporary or otherwise interlocutory injunction or a
828	828	permanent injunction on the grounds of the constitutionality or
829	829	unconstitutionality, or other validity or invalidity, under the
830	830	state or federal constitution of all or any part of Subchapter J,
831	831	Chapter 29, Education Code, as added by this Act, or Chapter 230,
832	832	Insurance Code, as added by this Act.
833	833	(f) The direct appeal is an accelerated appeal.
834	834	(g) This section exercises the authority granted by Section
835	835	3-b, Article V, Texas Constitution.
836	836	(h) The filing of a direct appeal under this section will
837	837	automatically stay any temporary or otherwise interlocutory
838	838	injunction or permanent injunction granted in accordance with this
839	839	section pending final determination by the Texas Supreme Court,
840	840	unless the supreme court makes specific findings that the applicant
841	841	seeking such injunctive relief has pleaded and proved that:
842	842	(1) the applicant has a probable right to the relief it
843	843	seeks on final hearing; and
844	844	(2) the applicant will suffer a probable injury that
845	845	is imminent and irreparable, and that the applicant has no other
846	846	adequate legal remedy.
847	847	(i) An appeal under this section, including an
848	848	interlocutory, accelerated, or direct appeal, is governed, as
849	849	applicable, by the Texas Rules of Appellate Procedure, including
850	850	Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 37.3(a)(1), 38.6(a) and (b),
851	851	40.1(b), and 49.4.
852	852	SECTION 11. If any provision of this Act or its application
853	853	to any person or circumstance is held invalid, the invalidity does
854	854	not affect other provisions or applications of this Act that can be
855	855	given effect without the invalid provision or application, and to
856	856	this end the provisions of this Act are declared severable.
857	857	SECTION 12. This Act takes effect January 1, 2026.