Texas 2025 - 89th Regular

Texas House Bill HB986 Compare Versions

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1	1	By: Toth H.B. No. 986
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to state savings achieved through a budget savings program
9	9	administered by the comptroller of public accounts making an
10	10	appropriation of a portion of those savings.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 403, Government Code, is amended by
13	13	adding Subchapter N to read as follows:
14	14	SUBCHAPTER N. BUDGET SAVINGS PROGRAM
15	15	Sec. 403.351. PURPOSE. The purpose of this subchapter is to
16	16	provide financial savings to the state budget and increase
17	17	efficiency.
18	18	Sec. 403.352. DEFINITIONS. In this subchapter:
19	19	(1) "Budget Savings Account" is established in the
20	20	foundation school fund and is administered by the comptroller.
21	21	(2) "Collector" means the officer or employee
22	22	responsible for collecting ad valorem taxes for a school district.
23	23	(3) "Program" means the budget savings program
24	24	established under this subchapter.
25	25	(4) "Qualifying school" means:
26	26	(A) a school district that serves and charges a
27	27	tuition fee for a student transferring to the district from another
28	28	school district under Section 25.038, Education Code; or
29	29	(B) a school that is accredited by an
30	30	organization recognized by the Texas Private School Accreditation
31	31	Commission.
32	32	(5) "Qualifying taxpayer" means a person who:
33	33	(A) pays school district maintenance and
34	34	operations ad valorem taxes in an amount that is at least the lesser
35	35	of the two amounts described by Section 403.353(e); and
36	36	(B) makes a designation to cover tuition for the
37	37	enrollment of at least one eligible student in a qualifying school
38	38	in accordance with rules adopted by the comptroller.
39	39	(6) "Tuition" includes any fee required to be paid for
40	40	an eligible student to attend a qualified school.
41	41	(8) "Gross savings" means the total savings to the
42	42	state prior to any reimbursements made pursuant to Sec. 353.353
43	43	(e).
44	44	(9) "Net savings" means the total savings to the state
45	45	after any reimbursements made pursuant to Sec. 353.353 (e).
46	46	Sec. 403.353. BUDGET SAVINGS PROGRAM. (a) The comptroller
47	47	shall establish a budget savings program through which a qualifying
48	48	taxpayer may designate an amount equal to all or a portion of the
49	49	school district maintenance and operations ad valorem taxes paid by
50	50	the taxpayer to be used as a grant from the state to pay the tuition
51	51	for the enrollment of an eligible student at a qualifying school
52	52	through the use of a budget savings form.
53	53	(b) For each year in which a qualifying taxpayer elects to
54	54	participate in the program, the taxpayer shall submit to the
55	55	collector, in addition to the taxpayer's school district ad valorem
56	56	taxes, a budget savings form for students for whom the taxpayer
57	57	designates tuition for enrollment at a qualifying school. The form
58	58	must be submitted not later than the date the school district taxes
59	59	are due, and the taxes must be paid in full by the due date.
60	60	(c) The comptroller by rule shall prescribe the format of
61	61	the budget savings form and shall include in the form any
62	62	information the comptroller determines necessary to administer the
63	63	program.
64	64	(d) The collector shall report on program participation to
65	65	the comptroller in a manner and format as determined by
66	66	comptroller.
67	67	(e) A designated student is entitled to receive a grant for
68	68	the payment of tuition for enrollment at a qualifying school for an
69	69	amount equal to the lesser of:
70	70	(1) the total amount of tuition the taxpayer
71	71	designated for the enrollment of one or more eligible students in a
72	72	qualifying school; or
73	73	(2) the product of:
74	74	(A) 80 percent of the state average maintenance
75	75	and operations expenditures per student in average daily
76	76	attendance; and
77	77	(B) the number of eligible students for whom the
78	78	taxpayer designated tuition for enrollment in a qualifying school.
79	79	(f) A student is eligible to participate in the program if
80	80	the student is a school-age child who resides in this state.
81	81	(f-1) Notwithstanding Subsection (f), for a school year
82	82	before the 2038-2039 school year, a student is eligible to
83	83	participate in the program only if the student is a school-age child
84	84	who resides in this state and:
85	85	(1) is entering kindergarten or first grade;
86	86	(2) attended a public school for all of the school year
87	87	immediately preceding initial participation in the program;
88	88	(3) participated in the program in a preceding school
89	89	year; or
90	90	(4) is a sibling of a student who participated in the
91	91	program in a preceding school year.
92	92	(f-2) This subsection and subsection (f-1) expire September
93	93	1, 2039.
94	94	(g) The comptroller may not use money from the available
95	95	school fund or federal money to reimburse a qualifying school under
96	96	this section.
97	97	(h) A qualifying school may not be required to comply with a
98	98	state law, including a rule governing the school's educational
99	99	program, as a prerequisite for receiving a reimbursement under this
100	100	subchapter unless that law applies generally to schools in this
101	101	state that are accredited by an organization recognized by the
102	102	Texas Private School Accreditation Commission, or in effect prior
103	103	to January 1, 2025.
104	104	(i) Notwithstanding any other provision of this subchapter,
105	105	the comptroller may implement a program for taxpayers who live in an
106	106	apartment or otherwise owe property taxes insufficient to cover the
107	107	amount due under Section 403.352(5)(A). Such taxpayer participants
108	108	shall only be entitled to participate if the comptroller determines
109	109	that the reimbursement will result in a savings to the state budget.
110	110	Sec. 403.354. BUDGET SAVINGS ACCOUNT. (a) The budget
111	111	savings account is established in the foundation school fund and is
112	112	administered by the comptroller on behalf of Texas students who
113	113	participate in the program.
114	114	(b) The account consists of:
115	115	(1) money transferred to the credit of the account by
116	116	the comptroller under Section 48.304 Education Code; and
117	117	(2) other amounts appropriated to the account by the
118	118	legislature.
119	119	(c) Money in the account may be used only to award grants for
120	120	the payment of tuition for enrollment of eligible students at
121	121	qualifying schools in the manner prescribed by Section 403.353 and
122	122	rules adopted by the comptroller.
123	123	(d) Interest and income from the assets of the account shall
124	124	be credited to and deposited in the account.
125	125	(e) Notwithstanding Subsection (c), the comptroller may
126	126	deduct a percentage of each reimbursement made from the account to
127	127	cover the comptroller's administrative costs in implementing and
128	128	administering the program. The percentage deducted from each
129	129	reimbursement may not exceed the lesser of:
130	130	(1) the pro rata cost of the program in the applicable
131	131	year; or
132	132	(2) two percent of the amount of the reimbursement.
133	133	(f) This subsection and Subsection (e) expire September 1,
134	134	2036.
135	135	Sec. 403.355. RULES. (a) The comptroller shall adopt rules
136	136	for the implementation and administration of this subchapter,
137	137	including rules relating to:
138	138	(1) the format and content of the budget savings form;
139	139	(2) a timeline for making payments for qualifying
140	140	students under the program in a manner that maximizes savings to the
141	141	state without imposing an unnecessary burden on program
142	142	participants;
143	143	(3) the prevention of fraud and abuse in financial
144	144	transactions under the program;
145	145	(4) the prevention of dual counting of eligible
146	146	students; and
147	147	(5) the computation of the gross and net savings to the
148	148	state from the program.
149	149	SECTION 2. Subchapter G, Chapter 48, Education Code, is
150	150	amended by adding Section 48.304 to read as follows:
151	151	Sec. 48.304. BUDGET SAVINGS GRANT. (a) A person to whom
152	152	the comptroller awards a grant under Subchapter N, Chapter 403,
153	153	Government Code, is entitled to receive an amount equal to the
154	154	amount of the grant as provided by that subchapter.
155	155	(b) The agency shall re-appropriate to the credit of the
156	156	budget savings account established under Section 403.354,
157	157	Government Code, the amount appropriated to the agency for purposes
158	158	of this section for use by the comptroller in awarding grants as
159	159	provided by Subchapter N, Chapter 403, Government Code.
160	160	SECTION 3. (a) The constitutionality and other validity
161	161	under the state or federal constitution of all or any part of
162	162	Chapter 403, Government Subchapter N, as added by this Act, may be
163	163	determined in an action for declaratory judgment in a district
164	164	court in Travis County under Chapter 37, Civil Practice and
165	165	Remedies Code, except that this section does not authorize an award
166	166	of attorney's fees against this state and Section 37.009, Civil
167	167	Practice and Remedies Code, does not apply to an action filed under
168	168	this section. This section does not authorize a taxpayer suit to
169	169	contest the denial of a tax credit by the comptroller of public
170	170	accounts.
171	171	(b) An appeal of a declaratory judgment or order, however
172	172	characterized, of a district court, including an appeal of the
173	173	judgment of an appellate court, holding or otherwise determining
174	174	that all or any part of Chapter 403, Government Code, Subchapter N,
175	175	as added by this Act, is constitutional or unconstitutional, or
176	176	otherwise valid or invalid, under the state or federal constitution
177	177	is an accelerated appeal.
178	178	(c) If the judgment or order is interlocutory, an
179	179	interlocutory appeal may be taken from the judgment or order and is
180	180	an accelerated appeal.
181	181	(d) A district court in Travis County may grant or deny a
182	182	temporary or otherwise interlocutory injunction or a permanent
183	183	injunction on the grounds of the constitutionality or
184	184	unconstitutionality, or other validity or invalidity, under the
185	185	state or federal constitution of all or any part of Chapter 403,
186	186	Government Code, Subchapter N as added by this Act.
187	187	(e) There is a direct appeal to the Texas Supreme Court from
188	188	an order, however characterized, of a trial court granting or
189	189	denying a temporary or otherwise interlocutory injunction or a
190	190	permanent injunction on the grounds of the constitutionality or
191	191	unconstitutionality, or other validity or invalidity, under the
192	192	state or federal constitution of all or any part of Chapter 403,
193	193	Government Code, Subchapter N, as added by this Act.
194	194	(f) The direct appeal is an accelerated appeal.
195	195	(g) This section exercises the authority granted by Section
196	196	3-b, Article V, Texas Constitution.
197	197	(h) The filing of a direct appeal under this section will
198	198	automatically stay any temporary or otherwise interlocutory
199	199	injunction or permanent injunction granted in accordance with this
200	200	section pending final determination by the Texas Supreme Court,
201	201	unless the supreme court makes specific findings that the applicant
202	202	seeking such injunctive relief has pleaded and proved that:
203	203	(1) the applicant has a probable right to the relief it
204	204	seeks on final hearing; and
205	205	(2) the applicant will suffer a probable injury that
206	206	is imminent and irreparable, and that the applicant has no other
207	207	adequate legal remedy.
208	208	(i) An appeal under this section, including an
209	209	interlocutory, accelerated, or direct appeal, is governed, as
210	210	applicable, by the Texas Rules of Appellate Procedure, including
211	211	Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
212	212	38.6(a) and (b), 40.1(b), and 49.4.
213	213	SECTION 4. This Act takes effect September 1, 2025.