Texas 2025 - 89th Regular

Texas House Bill HB984 Compare Versions

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1	1	By: Toth H.B. No. 984
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the establishment of an empowerment scholarship account
9	9	program.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 29, Education Code, is amended by adding
12	12	Subchapter J to read as follows:
13	13	SUBCHAPTER J. EMPOWERMENT SCHOLARSHIP ACCOUNT PROGRAM
14	14	Sec. 29.351. DEFINITIONS. In this subchapter:
15	15	(1) "Account" means an empowerment scholarship
16	16	account established under the program.
17	17	(2) "Child with a disability" means a child who is:
18	18	(A) eligible to participate in a school
19	19	district's special education program under Section 29.003; or
20	20	(B) covered by Section 504, Rehabilitation Act of
21	21	1973 (29 U.S.C. Section 794).
22	22	(3) "Curriculum" means a complete course of study for
23	23	a particular content area or grade level.
24	24	(4) "Financial institution" means a bank, credit
25	25	union, savings bank, or savings and loan association organized
26	26	under the laws of this state, the laws of another state, or federal
27	27	law that has its main office or a branch office in this state. The
28	28	term does not include any institution the deposits of which are not
29	29	insured by the Federal Deposit Insurance Corporation or the
30	30	National Credit Union Administration.
31	31	(5) "Parent" means a resident of this state who is a
32	32	natural or adoptive parent, managing or possessory conservator,
33	33	legal guardian, custodian, or other person with legal authority to
34	34	act on behalf of a child.
35	35	(6) "Postsecondary educational institution" means:
36	36	(A) an institution of higher education or a
37	37	private or independent institution of higher education as defined
38	38	by Section 61.003; or
39	39	(B) a career school or college as defined by
40	40	Section 132.001.
41	41	(7) "Program" means the empowerment scholarship
42	42	account program established under this subchapter.
43	43	(8) "Program participant" means a child and a parent
44	44	of a child enrolled in the program.
45	45	Sec. 29.352. PURPOSES. The purposes of the empowerment
46	46	scholarship account program are to:
47	47	(1) improve public schools and overall academic
48	48	performance;
49	49	(2) promote efficiency;
50	50	(3) promote and preserve the liberties and rights of
51	51	the people; and
52	52	(4) increase parental options.
53	53	Sec. 29.353. ESTABLISHMENT OF PROGRAM. (a) The
54	54	comptroller shall establish and administer an empowerment
55	55	scholarship account program to provide funding for certain
56	56	education-related expenses of eligible children.
57	57	(b) The comptroller, with cooperation from the agency,
58	58	shall ensure that information about the program is readily
59	59	available to the public through various sources, including the
60	60	agency's Internet website. The comptroller shall make information
61	61	about the program available to parents of children eligible to
62	62	participate in the program through the comptroller's Internet
63	63	website.
64	64	Sec. 29.354. ELIGIBLE CHILD. (a) A child is eligible to
65	65	participate in the program if the child is eligible to attend a
66	66	public school under Section 25.001.
67	67	(b) A child may participate in the program until the
68	68	earliest of the following dates:
69	69	(1) the date on which the child graduates from high
70	70	school;
71	71	(2) the date on which the child is no longer eligible
72	72	to attend a public school under Section 25.001;
73	73	(3) the date on which the child enrolls in a public
74	74	school, including an open-enrollment charter school; or
75	75	(4) the date on which the child is declared ineligible
76	76	for the program by the comptroller under this subchapter.
77	77	(c) Notwithstanding Subsection (b), the comptroller shall
78	78	establish guidelines for, in the least disruptive manner possible:
79	79	(1) a child participating in the program to cease
80	80	participation and enroll in a public school, including an
81	81	open-enrollment charter school; and
82	82	(2) a child who previously participated in the program
83	83	and subsequently enrolled in a public school, including an
84	84	open-enrollment charter school, to resume participation in the
85	85	program.
86	86	Sec. 29.355. ENROLLMENT IN PROGRAM. (a) A parent of an
87	87	eligible child may enroll the child in the program for the following
88	88	school year.
89	89	(b) The comptroller shall by rule create an enrollment form
90	90	for the program and make the enrollment form readily available to
91	91	interested parents through various sources, including the
92	92	comptroller's Internet website.
93	93	(c) The comptroller shall provide to each parent who submits
94	94	an enrollment form a publication that describes the operation of
95	95	the program, including:
96	96	(1) expenses allowed under the program under Section
97	97	29.357;
98	98	(2) expense reporting requirements; and
99	99	(3) a description of the responsibilities of program
100	100	participants and the duties of the comptroller under this
101	101	subchapter.
102	102	Sec. 29.356. PARTICIPATION IN PROGRAM. (a) To receive
103	103	funding under the program, a parent of an eligible child must agree
104	104	to:
105	105	(1) spend funds received through the program only for
106	106	expenses allowed under Section 29.357;
107	107	(2) notify the comptroller if the child enrolls in a
108	108	public school, including an open-enrollment charter school, not
109	109	later than the 30th day after the date of enrollment; and
110	110	(3) inform the comptroller if the child graduates from
111	111	high school.
112	112	(b) The parent of a child participating in the program is
113	113	the trustee of the child's account.
114	114	(c) The comptroller shall provide annually to each program
115	115	participant the publication provided under Section 29.355(c).
116	116	Sec. 29.357. APPROVED EDUCATION-RELATED EXPENSES. (a)
117	117	Funds received under the program may be used only for the following
118	118	expenses incurred by a program participant:
119	119	(1) tuition and fees:
120	120	(A) at a private school accredited by an
121	121	organization that is recognized by the Texas Private School
122	122	Accreditation Commission;
123	123	(B) at a postsecondary educational institution;
124	124	or
125	125	(C) for an online educational course or program;
126	126	(2) the purchase of textbooks or other instructional
127	127	materials;
128	128	(3) the purchase of a curriculum;
129	129	(4) fees for classes or other educational services
130	130	provided by a public school, if the classes or services do not
131	131	qualify the child to be included in the school's average daily
132	132	attendance;
133	133	(5) fees for services provided by a private tutor or
134	134	teaching service;
135	135	(6) for a child with a disability, fees for
136	136	educational therapies or services provided by a practitioner or
137	137	provider;
138	138	(7) costs of computer hardware and software and other
139	139	technological devices, not to exceed in any year 10 percent of the
140	140	total amount paid to the program participant's account that year;
141	141	(8) fees for a nationally norm-referenced achievement
142	142	test or examination, an assessment instrument adopted by the agency
143	143	under Section 39.023, an advanced placement test or similar
144	144	examination, or any examination related to college or university
145	145	admission; and
146	146	(9) fees for the management of the participant's
147	147	account charged by a financial institution.
148	148	(b) Expenses allowed under Subsection (a) do not include
149	149	expenses for:
150	150	(1) consumable supplies, including paper, pens,
151	151	pencils, folders, and notebooks;
152	152	(2) food; or
153	153	(3) before-school or after-school child care or child
154	154	care during school holidays and vacations.
155	155	(c) An education service provider or vendor of educational
156	156	products must provide a program participant with a receipt for each
157	157	expense allowed under Subsection (a) charged by the provider or
158	158	vendor to the participant.
159	159	(d) The content or religious nature of a product or service
160	160	may not be considered in determining whether a payment for the
161	161	product or service is an expense allowed under Subsection (a).
162	162	(e) A finding that a program participant used funds
163	163	distributed under the program to pay for an expense not allowed
164	164	under Subsection (a) does not affect the validity of any payment
165	165	made by the participant for an expense that is allowed under that
166	166	subsection.
167	167	Sec. 29.358. AMOUNT OF PAYMENT; FINANCING. (a) A parent of
168	168	an eligible child shall receive each year that the child
169	169	participates in the program quarterly payments from the state to
170	170	the child's account equal to a total amount of $10,000.
171	171	(b) In addition to any funding the district receives under
172	172	Chapter 48, for each child participating in the program, the school
173	173	district the child would otherwise attend is entitled to receive
174	174	for the first year in which the child participates in the program an
175	175	amount equal to 50 percent of the difference between:
176	176	(1) the state average maintenance and operations
177	177	expenditures per student in average daily attendance for the
178	178	preceding fiscal year; and
179	179	(2) the amount the child's parent receives under
180	180	Subsection (a) for the year.
181	181	(c) Any funds remaining in a child's account at the end of a
182	182	fiscal year are carried forward to the next fiscal year unless
183	183	another provision of this subchapter mandates the closure of the
184	184	account.
185	185	(d) The parent of a child participating in the program may
186	186	make payments for the expenses of educational programs, services,
187	187	and products not covered by funds in the child's account.
188	188	(e) A payment under Subsection (a) may not be financed using
189	189	federal funds or money appropriated from the available school fund.
190	190	Sec. 29.359. ADMINISTRATION OF ACCOUNTS. (a) The
191	191	comptroller may contract with one or more financial institutions to
192	192	establish and manage an account for each child participating in the
193	193	program. A program participant must be able to access the
194	194	participant's account by using a debit card or online or electronic
195	195	transfer payment service.
196	196	(b) The comptroller shall make quarterly payments to each
197	197	program participant's account in equal amounts on or before the
198	198	15th day of August, November, February, and May.
199	199	(c) The comptroller may deduct an amount from each quarterly
200	200	payment to a program participant's account to cover the
201	201	comptroller's cost of administering the program. The amount
202	202	deducted may not exceed five percent of the payment.
203	203	(d) Not later than 30 days after the end of each fiscal year,
204	204	the comptroller shall reconcile payments made to and from all
205	205	accounts under the program.
206	206	(e) On the date on which a child who participated in the
207	207	program is no longer eligible to participate in the program under
208	208	Section 29.354(b), the child's account is closed and any remaining
209	209	funds are returned to the state for deposit in the foundation school
210	210	fund.
211	211	(f) The comptroller may contract with a private entity to
212	212	administer all or any part of the program.
213	213	Sec. 29.360. RANDOM AUDITING OF ACCOUNTS. (a) The
214	214	comptroller shall contract with a private entity to randomly audit
215	215	accounts as necessary to ensure compliance with applicable law and
216	216	the requirements of the program.
217	217	(b) In auditing an account, the comptroller or private
218	218	entity may require that a program participant provide further
219	219	information and documentation regarding any payment from the
220	220	participant's account.
221	221	(c) The private entity shall report to the comptroller any
222	222	violation of this subchapter or other relevant law found by the
223	223	entity during an audit conducted under this section.
224	224	Sec. 29.361. SUSPENSION OF ACCOUNT. (a) The comptroller
225	225	shall suspend the account of a program participant who fails to
226	226	comply with applicable law or a requirement of the program,
227	227	including a requirement under Section 29.356(a), or who
228	228	substantially misuses funds received under the program.
229	229	(b) On suspension of an account under Subsection (a), the
230	230	comptroller shall notify the program participant in writing that
231	231	the account has been suspended and that no further payments may be
232	232	made from the account. The notification must specify the grounds
233	233	for the suspension and state that the participant has 10 business
234	234	days to respond and take any corrective action required by the
235	235	comptroller.
236	236	(c) On the expiration of the 10-day period under Subsection
237	237	(b), the comptroller shall:
238	238	(1) order permanent closure of the suspended account
239	239	and declare the program participant ineligible for the program;
240	240	(2) order temporary reinstatement of the account,
241	241	conditioned on the performance of a specified action by the
242	242	participant; or
243	243	(3) order full reinstatement of the account.
244	244	(d) The comptroller may recover funds distributed under the
245	245	program that were used for expenses not allowed under Section
246	246	29.357(a) from the program participant or the entity that received
247	247	the funds if the participant's account is suspended or closed under
248	248	this section.
249	249	Sec. 29.362. TUITION AND FEES; REFUND PROHIBITED. (a) An
250	250	education service provider may not charge a child participating in
251	251	the program an amount greater than the standard amount charged for
252	252	that service by the provider.
253	253	(b) An education service provider or a vendor of educational
254	254	products receiving funds distributed under the program may not in
255	255	any manner rebate, refund, or credit to or share with a program
256	256	participant, or any person on behalf of a participant, any program
257	257	funds paid or owed by the participant to the provider or vendor.
258	258	Sec. 29.363. REFERRAL TO ATTORNEY GENERAL. (a) If the
259	259	comptroller obtains evidence of fraudulent use of an account, the
260	260	comptroller may refer the case to the attorney general for
261	261	investigation.
262	262	(b) With the consent of the appropriate local county or
263	263	district attorney, the attorney general has concurrent
264	264	jurisdiction with the consenting local prosecutor to prosecute an
265	265	offense referred to the attorney general under Subsection (a).
266	266	Sec. 29.364. PROVIDER ACCOUNTABILITY. (a) A private school
267	267	must be accredited by an organization that is recognized by the
268	268	Texas Private School Accreditation Commission to receive funds
269	269	distributed under the program.
270	270	(b) A private tutor or teaching service and a practitioner
271	271	or provider who provides educational therapies or services for a
272	272	child with a disability must be licensed or accredited by a regional
273	273	or national accrediting organization to receive funds distributed
274	274	under the program.
275	275	Sec. 29.365. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
276	276	AUTONOMY. (a) An education service provider or vendor of
277	277	educational products that receives funds distributed under the
278	278	program is not an agent of the state or federal government.
279	279	(b) Except as provided by this subchapter, the comptroller,
280	280	the agency, the State Board of Education, any other state agency, or
281	281	any school district may not:
282	282	(1) regulate the educational program of an education
283	283	service provider or vendor of educational products that receives
284	284	funds distributed under the program; or
285	285	(2) exercise control or supervision over a program
286	286	participant or an education service provider or vendor of
287	287	educational products that receives funds distributed under the
288	288	program.
289	289	(c) The program does not expand the regulatory authority of
290	290	the state or any school district to impose any additional
291	291	regulation on an education service provider or vendor of
292	292	educational products except those reasonably necessary to enforce
293	293	the program as provided by this subchapter.
294	294	(d) A private school may not be required to modify the
295	295	school's creed, practices, admissions policies, curriculum,
296	296	performance standards, or assessments to receive funds distributed
297	297	under the program.
298	298	(e) A private school voluntarily selected by a parent for
299	299	the parent's child to attend or a parent who homeschools the
300	300	parent's child, with or without governmental assistance, may not be
301	301	required to comply with any state law or rule governing the
302	302	applicable educational program that was not in effect on January 1,
303	303	2025.
304	304	(f) In any proceeding challenging a rule adopted by a state
305	305	agency or officer under this subchapter, the agency or officer has
306	306	the burden of proof to establish that the rule:
307	307	(1) is necessary to implement or enforce the program
308	308	as provided by this subchapter; and
309	309	(2) does not impose an undue burden on a program
310	310	participant or an education service provider or vendor of
311	311	educational products that receives or seeks to receive funds
312	312	distributed under the program.
313	313	Sec. 29.366. STUDENT RECORDS AND INFORMATION. (a) On
314	314	request by the parent of a child participating in the program, the
315	315	school district or open-enrollment charter school that the child
316	316	would otherwise attend shall provide a copy of the child's school
317	317	records possessed by the district or school, if any, to the child's
318	318	parent or, if applicable, the private school the child attends.
319	319	(b) The agency shall provide to the comptroller any
320	320	information available to the agency requested by the comptroller
321	321	regarding a child who participates or seeks to participate in the
322	322	program.
323	323	Sec. 29.367. REPORTING NUMBER OF PARTICIPANTS. (a) Not
324	324	later than October 1 of each year, the comptroller shall notify the
325	325	commissioner and the Legislative Budget Board of the number of
326	326	eligible children likely to participate in the program,
327	327	disaggregated by the school district or open-enrollment charter
328	328	school the eligible children would otherwise attend.
329	329	(b) Not later than March 1 of each year, the comptroller
330	330	shall provide final information to the commissioner and the
331	331	Legislative Budget Board regarding the number of children
332	332	participating in the program, disaggregated in the same manner as
333	333	the initial information under Subsection (a).
334	334	Sec. 29.368. ANNUAL SURVEY. The comptroller may conduct an
335	335	annual parental satisfaction survey that asks each parent of a
336	336	child participating in the program to express:
337	337	(1) the parent's overall level of satisfaction with
338	338	the program; and
339	339	(2) the parent's opinion on specified topics and
340	340	issues relevant to the effectiveness of the program.
341	341	Sec. 29.369. RULES. The comptroller shall:
342	342	(1) adopt rules as necessary to implement this
343	343	subchapter, including:
344	344	(A) rules regarding expense reporting
345	345	requirements for program participants; and
346	346	(B) rules for implementing this subchapter in a
347	347	manner that ensures compliance with federal law regarding
348	348	confidentiality of student educational information, including the
349	349	Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
350	350	Section 1232g); and
351	351	(2) coordinate as necessary to:
352	352	(A) calculate annually the savings to the state
353	353	from the implementation of the program; and
354	354	(B) prevent fraud in financial transactions
355	355	under the program, including by adopting measures to permit
356	356	anonymous fraud reporting by telephone hotline or online
357	357	communication.
358	358	Sec. 29.370. GIFTS, GRANTS, AND DONATIONS. The comptroller
359	359	may solicit and accept gifts, grants, and donations from any public
360	360	or private source for any expenses related to the administration of
361	361	the program, including the initial implementation of the program.
362	362	SECTION 2. Section 48.266, Education Code, is amended by
363	363	adding Subsection (b-1) to read as follows:
364	364	(b-1) Notwithstanding Subsection (b), the commissioner
365	365	shall adjust enrollment estimates and entitlement for each school
366	366	district for each school year based on information provided by the
367	367	comptroller under Section 29.367. This subsection expires
368	368	September 1, 2028.
369	369	SECTION 3. Notwithstanding Section 29.359(b), Education
370	370	Code, as added by this Act, not later than September 15, 2026, the
371	371	comptroller shall make the initial payment to each program
372	372	participant's education savings account as provided by Subchapter
373	373	J, Chapter 29, Education Code, as added by this Act.
374	374	SECTION 4. This Act applies beginning with the 2026-2027
375	375	school year.
376	376	SECTION 5. This Act takes effect immediately if it receives
377	377	a vote of two-thirds of all the members elected to each house, as
378	378	provided by Section 39, Article III, Texas Constitution. If this
379	379	Act does not receive the vote necessary for immediate effect, this
380	380	Act takes effect September 1, 2025.