By: Toth H.B. No. 986
A BILL TO BE ENTITLED
AN ACT
relating to state savings achieved through a budget savings program
administered by the comptroller of public accounts making an
appropriation of a portion of those savings.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 403, Government Code, is amended by
adding Subchapter N to read as follows:
SUBCHAPTER N. BUDGET SAVINGS PROGRAM
Sec. 403.351. PURPOSE. The purpose of this subchapter is to
provide financial savings to the state budget and increase
efficiency.
Sec. 403.352. DEFINITIONS. In this subchapter:
(1) "Budget Savings Account" is established in the
foundation school fund and is administered by the comptroller.
(2) "Collector" means the officer or employee
responsible for collecting ad valorem taxes for a school district.
(3) "Program" means the budget savings program
established under this subchapter.
(4) "Qualifying school" means:
(A) a school district that serves and charges a
tuition fee for a student transferring to the district from another
school district under Section 25.038, Education Code; or
(B) a school that is accredited by an
organization recognized by the Texas Private School Accreditation
Commission.
(5) "Qualifying taxpayer" means a person who:
(A) pays school district maintenance and
operations ad valorem taxes in an amount that is at least the lesser
of the two amounts described by Section 403.353(e); and
(B) makes a designation to cover tuition for the
enrollment of at least one eligible student in a qualifying school
in accordance with rules adopted by the comptroller.
(6) "Tuition" includes any fee required to be paid for
an eligible student to attend a qualified school.
(8) "Gross savings" means the total savings to the
state prior to any reimbursements made pursuant to Sec. 353.353
(e).
(9) "Net savings" means the total savings to the state
after any reimbursements made pursuant to Sec. 353.353 (e).
Sec. 403.353. BUDGET SAVINGS PROGRAM. (a) The comptroller
shall establish a budget savings program through which a qualifying
taxpayer may designate an amount equal to all or a portion of the
school district maintenance and operations ad valorem taxes paid by
the taxpayer to be used as a grant from the state to pay the tuition
for the enrollment of an eligible student at a qualifying school
through the use of a budget savings form.
(b) For each year in which a qualifying taxpayer elects to
participate in the program, the taxpayer shall submit to the
collector, in addition to the taxpayer's school district ad valorem
taxes, a budget savings form for students for whom the taxpayer
designates tuition for enrollment at a qualifying school. The form
must be submitted not later than the date the school district taxes
are due, and the taxes must be paid in full by the due date.
(c) The comptroller by rule shall prescribe the format of
the budget savings form and shall include in the form any
information the comptroller determines necessary to administer the
program.
(d) The collector shall report on program participation to
the comptroller in a manner and format as determined by
comptroller.
(e) A designated student is entitled to receive a grant for
the payment of tuition for enrollment at a qualifying school for an
amount equal to the lesser of:
(1) the total amount of tuition the taxpayer
designated for the enrollment of one or more eligible students in a
qualifying school; or
(2) the product of:
(A) 80 percent of the state average maintenance
and operations expenditures per student in average daily
attendance; and
(B) the number of eligible students for whom the
taxpayer designated tuition for enrollment in a qualifying school.
(f) A student is eligible to participate in the program if
the student is a school-age child who resides in this state.
(f-1) Notwithstanding Subsection (f), for a school year
before the 2038-2039 school year, a student is eligible to
participate in the program only if the student is a school-age child
who resides in this state and:
(1) is entering kindergarten or first grade;
(2) attended a public school for all of the school year
immediately preceding initial participation in the program;
(3) participated in the program in a preceding school
year; or
(4) is a sibling of a student who participated in the
program in a preceding school year.
(f-2) This subsection and subsection (f-1) expire September
1, 2039.
(g) The comptroller may not use money from the available
school fund or federal money to reimburse a qualifying school under
this section.
(h) A qualifying school may not be required to comply with a
state law, including a rule governing the school's educational
program, as a prerequisite for receiving a reimbursement under this
subchapter unless that law applies generally to schools in this
state that are accredited by an organization recognized by the
Texas Private School Accreditation Commission, or in effect prior
to January 1, 2025.
(i) Notwithstanding any other provision of this subchapter,
the comptroller may implement a program for taxpayers who live in an
apartment or otherwise owe property taxes insufficient to cover the
amount due under Section 403.352(5)(A). Such taxpayer participants
shall only be entitled to participate if the comptroller determines
that the reimbursement will result in a savings to the state budget.
Sec. 403.354. BUDGET SAVINGS ACCOUNT. (a) The budget
savings account is established in the foundation school fund and is
administered by the comptroller on behalf of Texas students who
participate in the program.
(b) The account consists of:
(1) money transferred to the credit of the account by
the comptroller under Section 48.304 Education Code; and
(2) other amounts appropriated to the account by the
legislature.
(c) Money in the account may be used only to award grants for
the payment of tuition for enrollment of eligible students at
qualifying schools in the manner prescribed by Section 403.353 and
rules adopted by the comptroller.
(d) Interest and income from the assets of the account shall
be credited to and deposited in the account.
(e) Notwithstanding Subsection (c), the comptroller may
deduct a percentage of each reimbursement made from the account to
cover the comptroller's administrative costs in implementing and
administering the program. The percentage deducted from each
reimbursement may not exceed the lesser of:
(1) the pro rata cost of the program in the applicable
year; or
(2) two percent of the amount of the reimbursement.
(f) This subsection and Subsection (e) expire September 1,
2036.
Sec. 403.355. RULES. (a) The comptroller shall adopt rules
for the implementation and administration of this subchapter,
including rules relating to:
(1) the format and content of the budget savings form;
(2) a timeline for making payments for qualifying
students under the program in a manner that maximizes savings to the
state without imposing an unnecessary burden on program
participants;
(3) the prevention of fraud and abuse in financial
transactions under the program;
(4) the prevention of dual counting of eligible
students; and
(5) the computation of the gross and net savings to the
state from the program.
SECTION 2. Subchapter G, Chapter 48, Education Code, is
amended by adding Section 48.304 to read as follows:
Sec. 48.304. BUDGET SAVINGS GRANT. (a) A person to whom
the comptroller awards a grant under Subchapter N, Chapter 403,
Government Code, is entitled to receive an amount equal to the
amount of the grant as provided by that subchapter.
(b) The agency shall re-appropriate to the credit of the
budget savings account established under Section 403.354,
Government Code, the amount appropriated to the agency for purposes
of this section for use by the comptroller in awarding grants as
provided by Subchapter N, Chapter 403, Government Code.
SECTION 3. (a) The constitutionality and other validity
under the state or federal constitution of all or any part of
Chapter 403, Government Subchapter N, as added by this Act, may be
determined in an action for declaratory judgment in a district
court in Travis County under Chapter 37, Civil Practice and
Remedies Code, except that this section does not authorize an award
of attorney's fees against this state and Section 37.009, Civil
Practice and Remedies Code, does not apply to an action filed under
this section. This section does not authorize a taxpayer suit to
contest the denial of a tax credit by the comptroller of public
accounts.
(b) An appeal of a declaratory judgment or order, however
characterized, of a district court, including an appeal of the
judgment of an appellate court, holding or otherwise determining
that all or any part of Chapter 403, Government Code, Subchapter N,
as added by this Act, is constitutional or unconstitutional, or
otherwise valid or invalid, under the state or federal constitution
is an accelerated appeal.
(c) If the judgment or order is interlocutory, an
interlocutory appeal may be taken from the judgment or order and is
an accelerated appeal.
(d) A district court in Travis County may grant or deny a
temporary or otherwise interlocutory injunction or a permanent
injunction on the grounds of the constitutionality or
unconstitutionality, or other validity or invalidity, under the
state or federal constitution of all or any part of Chapter 403,
Government Code, Subchapter N as added by this Act.
(e) There is a direct appeal to the Texas Supreme Court from
an order, however characterized, of a trial court granting or
denying a temporary or otherwise interlocutory injunction or a
permanent injunction on the grounds of the constitutionality or
unconstitutionality, or other validity or invalidity, under the
state or federal constitution of all or any part of Chapter 403,
Government Code, Subchapter N, as added by this Act.
(f) The direct appeal is an accelerated appeal.
(g) This section exercises the authority granted by Section
3-b, Article V, Texas Constitution.
(h) The filing of a direct appeal under this section will
automatically stay any temporary or otherwise interlocutory
injunction or permanent injunction granted in accordance with this
section pending final determination by the Texas Supreme Court,
unless the supreme court makes specific findings that the applicant
seeking such injunctive relief has pleaded and proved that:
(1) the applicant has a probable right to the relief it
seeks on final hearing; and
(2) the applicant will suffer a probable injury that
is imminent and irreparable, and that the applicant has no other
adequate legal remedy.
(i) An appeal under this section, including an
interlocutory, accelerated, or direct appeal, is governed, as
applicable, by the Texas Rules of Appellate Procedure, including
Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
38.6(a) and (b), 40.1(b), and 49.4.
SECTION 4. This Act takes effect September 1, 2025.