TX
Texas Senate Bill SB2

Texas 2025 - 89th Regular

Texas Senate Bill SB2 Compare Versions

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1-89R22206 MM-D
21 By: Creighton, et al. S.B. No. 2
3- (Buckley, et al.)
4- Substitute the following for S.B. No. 2: No.
52
63
74
85
96 A BILL TO BE ENTITLED
107 AN ACT
118 relating to the establishment of an education savings account
129 program.
1310 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1411 SECTION 1. The purpose of this Act is to:
1512 (1) provide additional educational options to assist
1613 families in this state in exercising the right to direct the
1714 educational needs of their children; and
1815 (2) achieve a general diffusion of knowledge.
1916 SECTION 2. Chapter 29, Education Code, is amended by adding
2017 Subchapter J to read as follows:
2118 SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
2219 Sec. 29.351. DEFINITIONS. In this subchapter:
2320 (1) "Account" means an education savings account
2421 established under the program.
2522 (2) "Certified educational assistance organization"
2623 means an organization certified under Section 29.354 to support the
2724 administration of the program.
2825 (3) "Child with a disability" means a child who is
2926 eligible to participate in a school district's special education
3027 program under Section 29.003.
3128 (4) "Higher education provider" means an institution
3229 of higher education or a private or independent institution of
3330 higher education, as those terms are defined by Section 61.003.
34- (5) "Parent" means a resident of this state who is a
31+ (5) "Low-income household" means a household with a
32+ total annual income that is at or below 500 percent of the federal
33+ poverty guidelines.
34+ (6) "Parent" means a resident of this state who is a
3535 natural or adoptive parent, managing or possessory conservator,
3636 legal guardian, custodian, or other person with legal authority to
3737 act on behalf of a child.
38- (6) "Participating child" means a child enrolled in
38+ (7) "Participating child" means a child enrolled in
3939 the program.
40- (7) "Participating parent" means a parent of a
40+ (8) "Participating parent" means a parent of a
4141 participating child.
42- (8) "Program" means the program established under this
42+ (9) "Program" means the program established under this
4343 subchapter.
44- (9) "Program participant" means a participating child
45- or a participating parent.
44+ (10) "Program participant" means a participating
45+ child or a participating parent.
46+ Sec. 29.3515. APPLICABILITY TO NONPARTICIPATING
47+ HOME-SCHOOL STUDENTS. The requirements in this subchapter that
48+ apply to a child who participates in the program or the child's
49+ parent do not apply to a home-schooled student, as defined by
50+ Section 29.916, who is not participating in the program or the
51+ student's parent.
4652 Sec. 29.352. ESTABLISHMENT OF PROGRAM. (a) The
4753 comptroller shall establish a program to provide funding for
4854 approved education-related expenses of children participating in
4955 the program.
50- (b) The program confers a state benefit to program
51- participants in addition to a free public education.
52- Sec. 29.3521. AMOUNT OF APPROPRIATION; LIMITATION ON
53- EXPENDITURES. (a) In the comptroller's legislative appropriations
54- request for each state fiscal biennium, the comptroller shall state
55- the amount of money necessary for the biennium to provide the amount
56- specified under Section 29.361 for each:
57- (1) participating child;
58- (2) child on the waiting list maintained by the
59- comptroller under Section 29.356(f) on the January 1 preceding the
60- biennium; and
61- (3) child who is a sibling of a participating child and
62- is eligible for the program under Section 29.355 for the first time
63- during that biennium.
64- (b) For purposes of Subsection (a), the comptroller shall
65- specify the amount described by that subsection for the first state
66- fiscal year of the biennium and estimate the amount required for the
67- second state fiscal year of the biennium.
68- (c) Notwithstanding the amount stated in the comptroller's
69- legislative appropriations request under Subsection (a), the
70- amount appropriated for purposes of the program for a state fiscal
71- biennium must be established by the legislature by appropriation
72- for that biennium.
73- (c-1) Notwithstanding any other law, for the state fiscal
74- biennium beginning September 1, 2025, the amount spent for purposes
75- of the program may not exceed $1 billion. This subsection expires
76- September 1, 2027.
77- (d) Notwithstanding any other provision of this subchapter,
78- for the 2026-2027 school year, the total amount of money spent for
79- purposes of participation in the program by children described by
80- Section 29.356(b)(2)(D) may not exceed 20 percent of the amount of
81- money appropriated from the program fund for that school year. In
82- allocating money under the program in accordance with this
83- subsection, the comptroller shall ensure children who were enrolled
84- in a school district or open-enrollment charter school for at least
85- 90 percent of the preceding school year are prioritized. This
86- subsection expires September 1, 2027.
56+ (b) The comptroller has any power necessary to establish and
57+ administer the program, including the power to:
58+ (1) execute contracts, agreements, and other
59+ instruments for goods and services;
60+ (2) engage the services of private consultants,
61+ actuaries, trustees, record administrators, managers, and legal
62+ counsel for administrative or technical assistance; and
63+ (3) perform any duty assigned to a certified
64+ educational assistance organization under this subchapter.
8765 Sec. 29.353. PROGRAM FUND. (a) The program fund is an
8866 account in the general revenue fund to be administered by the
8967 comptroller.
9068 (b) The fund is composed of:
9169 (1) general revenue transferred to the fund;
9270 (2) money appropriated to the fund;
93- (3) interest and other earnings attributable to the
94- investment of money in the fund;
95- (4) gifts, grants, and donations received under
96- Section 29.370; and
71+ (3) gifts, grants, and donations received under
72+ Section 29.370;
73+ (4) interest or other earnings attributable to the
74+ investment of money in the fund; and
9775 (5) any other money available for purposes of the
9876 program.
99- (c) Money in the fund may be used only for the purposes
77+ (c) Money in the fund may be appropriated only for the uses
10078 specified by this subchapter.
101- Sec. 29.3535. PROMOTION OF PROGRAM. Notwithstanding any
102- other law, the comptroller or the comptroller's designee may enter
103- into contracts or agreements and engage in marketing, advertising,
104- and other activities to promote, market, and advertise the
105- development and use of the program. The comptroller may use money
106- from the program fund to pay for activities authorized under this
107- section.
79+ Sec. 29.3535. PROMOTION OF PROGRAM. Notwithstanding
80+ Chapter 2113, Government Code, the comptroller or the comptroller's
81+ designee may enter into contracts or agreements and engage in
82+ marketing, advertising, and other activities to promote, market,
83+ and advertise the development and use of the program. The
84+ comptroller may use money from the program fund to pay for
85+ activities authorized under this section.
10886 Sec. 29.354. SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
10987 ORGANIZATIONS. (a) An organization may apply to the comptroller
11088 for certification as a certified educational assistance
11189 organization during an application period established by the
11290 comptroller.
11391 (b) To be eligible for certification, an organization must:
11492 (1) have the ability to perform one or more of the
11593 duties and functions required of a certified educational assistance
11694 organization under this subchapter;
117- (2) be registered to do business in this state; and
95+ (2) be a nonprofit or for-profit organization
96+ registered to do business in the state; and
11897 (3) be able to assist the comptroller in administering
119- the program wholly or partly, including the ability to:
98+ the program in whole or in part, including the ability to:
12099 (A) accept, process, and track applications for
121100 the program;
122101 (B) assist prospective applicants, applicants,
123102 and program participants with finding preapproved education
124103 service providers and vendors of educational products;
125104 (C) accept and process payments for approved
126- education-related expenses;
105+ education-related expenses; and
127106 (D) verify that program funding is used only for
128- approved education-related expenses;
129- (E) verify that a program participant is eligible
130- to participate in the program;
131- (F) accept, track, review, and resolve inquiries
132- and complaints received regarding the program; and
133- (G) establish and maintain a
134- comptroller-approved Internet website for the program.
107+ approved education-related expenses.
135108 (c) The comptroller shall establish cybersecurity
136109 requirements for certified educational assistance organizations,
137110 including the implementation of best practices developed under
138111 Section 2054.5181, Government Code.
139112 (d) The comptroller may certify not more than five
140113 educational assistance organizations to support the administration
141114 of the program, including by:
142- (1) administering wholly or partly:
115+ (1) administering in whole or in part:
143116 (A) the application process under Section
144117 29.356; and
145118 (B) the program expenditures process under
146119 Section 29.360; and
147120 (2) assisting prospective applicants, applicants, and
148121 program participants with understanding approved education-related
149122 expenses and finding preapproved education service providers and
150123 vendors of educational products.
151124 (e) A certified educational assistance organization
152125 designated to perform duties described by Subsection (d)(2) shall:
153126 (1) communicate with parents interested in
154127 participating in the program and program participants through
155128 synchronous and asynchronous communication, prioritizing
156129 synchronous communication, regarding:
157130 (A) the educational options available in this
158131 state;
159132 (B) how and when to apply to the program and
160133 preapproved education service providers;
161134 (C) how to manage an account, including
162135 requesting payments;
163136 (D) program requirements; and
164137 (E) any other information necessary to fulfill
165138 the organization's responsibilities under this subchapter; and
166139 (2) raise awareness regarding the availability of the
167140 program.
168- (f) The comptroller may designate a certified educational
169- assistance organization to establish and maintain a
170- comptroller-approved Internet website for the program.
141+ Sec. 29.3545. IDENTITY THEFT PROTECTION. Each certified
142+ educational assistance organization selected by the comptroller
143+ shall comply with the requirements of Chapter 521, Business &
144+ Commerce Code.
171145 Sec. 29.355. ELIGIBLE CHILD. (a) A child is eligible to
172- participate in the program and may, subject to available funding,
173- enroll in the program for the semester following the semester in
174- which the child's application is submitted under Section 29.356 if:
175- (1) the child's parent establishes that the child is a
176- citizen or national of the United States or was lawfully admitted
177- into the United States; and
178- (2) the child is eligible to:
179- (A) attend a school district or open-enrollment
180- charter school under Section 25.001; or
181- (B) enroll in a school district's or
182- open-enrollment charter school's prekindergarten program under
183- Section 29.153.
146+ participate in the program if the child is eligible to:
147+ (1) attend a public school under Section 25.001; or
148+ (2) enroll in a public school's prekindergarten
149+ program under Section 29.153.
184150 (b) A child who establishes eligibility under this section
185151 may, subject to available funding and the requirements of this
186152 subchapter, participate in the program until the earliest of the
187153 date on which:
188154 (1) the child graduates from high school;
189155 (2) the child is no longer eligible to either attend a
190- school district or open-enrollment charter school under Section
191- 25.001 or enroll in a school district's or open-enrollment charter
192- school's prekindergarten program under Section 29.153, as
193- applicable;
194- (3) the child enrolls in a school district or
195- open-enrollment charter school in a manner in which the child will
196- be counted toward the district's or school's average daily
156+ public school under Section 25.001 or enroll in a public school's
157+ prekindergarten program under Section 29.153, as applicable;
158+ (3) the child enrolls in a public school in a manner in
159+ which the child will be counted toward the school's average daily
197160 attendance for purposes of the allocation of funding under the
198161 Foundation School Program; or
199162 (4) the child is declared ineligible for the program
200163 by the comptroller under this subchapter.
164+ (c) Notwithstanding Subsection (a) or (b), a child is not
165+ eligible to participate in the program during the period in which
166+ the child's parent or legal guardian is a state representative,
167+ state senator, or statewide elected official.
201168 Sec. 29.356. APPLICATION TO PROGRAM. (a) A parent of an
202169 eligible child may apply to a certified educational assistance
203170 organization designated by the comptroller to enroll the child in
204171 the program for the following semester, term, or school year, as
205172 determined by the comptroller. The comptroller shall establish
206173 deadlines by which an applicant must complete and submit an
207174 application form to participate in the program.
208175 (b) On receipt of more acceptable applications during an
209176 application period for admission under this section than available
210177 positions in the program due to insufficient funding, a certified
211178 educational assistance organization shall, at the direction of the
212- comptroller, fill the available positions by lottery of applicants,
213- approving applicants:
214- (1) in the following order:
215- (A) siblings of participating children;
216- (B) children to whom Paragraph (C) does not
217- apply; and
218- (C) children who previously ceased participation
219- in the program due to enrollment in a school district or
220- open-enrollment charter school; and
221- (2) within each of the groups described by Subdivision
222- (1), in the following order, as applicable:
223- (A) children with a disability who are members of
224- a household with a total annual income that is at or below 500
225- percent of the federal poverty guidelines;
226- (B) children who are members of a household with
227- a total annual income that is at or below 200 percent of the federal
228- poverty guidelines;
229- (C) children who are members of a household with
230- a total annual income that is above 200 percent of the federal
231- poverty guidelines and below 500 percent of the federal poverty
232- guidelines; and
233- (D) children who are members of a household with
234- a total annual income that is at or above 500 percent of the federal
235- poverty guidelines.
236- (c) For purposes of Subsection (b), a certified educational
237- assistance organization that receives an application from an
238- eligible child and the child's eligible sibling during the same
239- application cycle and approves the child's application shall
240- approve the sibling's application at the same time.
241- (d) The comptroller shall adopt rules necessary to
242- administer Subsection (b). The comptroller shall provide for
243- posting on the Internet website established and maintained for the
244- program any rule adopted under this subsection.
245- (e) The comptroller shall create an application form for the
179+ comptroller, fill the available positions by lottery of applicants
180+ as follows:
181+ (1) the lesser of the number of children described by
182+ this subdivision who apply for the program or 80 percent of
183+ available positions in the program for children who were enrolled
184+ in a public school for at least 90 percent of the preceding school
185+ year and are:
186+ (A) members of a low-income household; or
187+ (B) children with a disability; and
188+ (2) the remaining available positions in the program
189+ for all eligible applicants who are not accepted into the program
190+ under Subdivision (1).
191+ (c) The comptroller shall adopt rules necessary to
192+ administer Subsection (b). The comptroller shall post on the
193+ comptroller's Internet website any rule adopted under this
194+ subsection.
195+ (d) The comptroller shall create an application form for the
246196 program and make the application form readily available through
247- various sources, including the Internet website established and
248- maintained for the program. The application form must state the
249- application deadlines established by the comptroller under
250- Subsection (a). Each certified educational assistance
251- organization shall ensure that the organization is capable of
252- receiving the application form, including any required supporting
253- document, electronically.
254- (f) The comptroller shall create and maintain a waiting list
255- based on the priority categories described by Subsection (b) for
256- applicants if, during an application period, there are more
257- acceptable applications for admission than there are available
258- positions.
259- (g) Each certified educational assistance organization
260- designated under Subsection (a) shall provide for posting on the
261- Internet website established and maintained for the program a
262- comptroller-approved applicant and participant handbook with a
263- description of the program, including:
197+ various sources, including an Internet website established and
198+ maintained by the comptroller for the program. The application
199+ form must state the application deadlines established by the
200+ comptroller under Subsection (a). Each certified educational
201+ assistance organization shall ensure that the application form,
202+ including any required supporting document, is capable of being
203+ submitted to the organization electronically.
204+ (e) Each certified educational assistance organization
205+ designated under Subsection (a) shall submit to the comptroller for
206+ approval and posting on an Internet website established and
207+ maintained by the comptroller for the program an applicant and
208+ participant handbook with a description of the program, including:
264209 (1) expenses allowed under the program under Section
265210 29.359;
266211 (2) a list of preapproved education service providers
267212 and vendors of educational products under Section 29.358;
268213 (3) a description of the application process under
269214 this section and the program expenditures process under Section
270215 29.360; and
271216 (4) a description of the responsibilities of program
272217 participants.
273- (h) Each certified educational assistance organization
274- designated under Subsection (a) shall annually provide to each
275- participating parent served by the organization the information
276- described by Subsection (g). The organization may provide the
218+ (f) Each certified educational assistance organization
219+ designated under Subsection (a) shall annually provide to the
220+ parent of each child participating in the program the information
221+ described by Subsection (e). The organization may provide the
277222 information electronically.
278- (i) The comptroller or a certified educational assistance
223+ (g) The comptroller or a certified educational assistance
279224 organization designated under Subsection (a):
280225 (1) may require the participating parent to submit
281226 annual notice regarding the parent's intent for the child to
282227 continue participating in the program for the next school year; and
283228 (2) may not require a program participant in good
284229 standing to annually resubmit an application for continued
285230 participation in the program.
286- (j) The agency shall provide to the comptroller the
231+ (h) The agency shall provide to the comptroller the
287232 information necessary to make the determinations required under
288233 Subsection (b).
289- Sec. 29.357. PARTICIPATION IN PROGRAM. (a) To receive
290- funding under the program, a participating parent must agree to:
291- (1) request that program money be spent only for
234+ Sec. 29.357. PARTICIPATION IN PROGRAM. As a condition of
235+ participating in the program, a participating parent must agree to:
236+ (1) spend money received through the program only for
292237 expenses allowed under Section 29.359;
293- (2) share or authorize the administrator of an
238+ (2) ensure the annual administration to the child of a
239+ nationally norm-referenced assessment instrument or the
240+ appropriate assessment instrument required under Subchapter B,
241+ Chapter 39;
242+ (3) share or authorize the administrator of an
294243 assessment instrument to share with the program participant's
295244 certified educational assistance organization the results of any
296245 assessment instrument required to be administered to the child
297- under Section 29.358(b)(2)(B) or other law;
298- (3) refrain from selling an item purchased with
246+ under Subdivision (2) or other law;
247+ (4) refrain from selling an item purchased with
299248 program money; and
300- (4) notify the program participant's certified
249+ (5) notify the program participant's certified
301250 educational assistance organization not later than 30 business days
302251 after the date on which the child:
303- (A) enrolls in a school district or
252+ (A) enrolls in a public school, including an
304253 open-enrollment charter school;
305254 (B) graduates from high school; or
306255 (C) is no longer eligible to either:
307- (i) enroll in a school district or
308- open-enrollment charter school under Section 25.001; or
309- (ii) enroll in a school district's or
310- open-enrollment charter school's prekindergarten program under
311- Section 29.153.
312- (b) The administrator of an assessment instrument required
313- to be administered under Section 29.358(b)(2)(B) or other law shall
314- share with a parent the participating child's results on the
315- assessment instrument, including, if available, the participating
316- child's percentile rank. A child's results and rank on an
317- assessment instrument administered under this section are
318- confidential, are not subject to disclosure under Chapter 552,
319- Government Code, and may only be shared as necessary to fulfill the
320- requirements of this subchapter. In providing the results and rank
321- for an assessment instrument, the administrator shall ensure
322- compliance with state and federal law regarding the confidentiality
323- of student educational information, including the Family
324- Educational Rights and Privacy Act of 1974 (20 U.S.C. Section
325- 1232g).
256+ (i) enroll in a public school under Section
257+ 25.001; or
258+ (ii) enroll in a public school's
259+ prekindergarten program under Section 29.153.
326260 Sec. 29.358. PREAPPROVED PROVIDERS AND VENDORS. (a) The
327261 comptroller shall by rule establish a process for the preapproval
328262 of education service providers and vendors of educational products
329263 for participation in the program. The comptroller shall allow for
330264 the submission of applications on a rolling basis.
331265 (b) The comptroller shall approve an education service
332266 provider or vendor of educational products for participation in the
333267 program if the provider or vendor:
334268 (1) has previously been approved by the agency to
335269 provide supplemental special education services under Subchapter
336270 A-1 and remains in good standing with the agency;
337- (2) for a private school, demonstrates:
338- (A) accreditation by an organization recognized
339- by:
340- (i) the Texas Private School Accreditation
341- Commission; or
342- (ii) the agency; and
343- (B) annual administration for students in grades
344- 3 through 12 of a nationally norm-referenced assessment instrument
345- or the appropriate assessment instrument required under Subchapter
346- B, Chapter 39;
347- (3) for a school district or open-enrollment charter
348- school, demonstrates:
271+ (2) for a private school, demonstrates annual
272+ administration of a nationally norm-referenced assessment
273+ instrument or the appropriate assessment instrument required under
274+ Subchapter B, Chapter 39;
275+ (3) for a public school, including an open-enrollment
276+ charter school, demonstrates:
349277 (A) accreditation by the agency; and
350278 (B) the ability to provide services or products
351- to participating children in a manner in which the children are not
352- counted toward the district's or school's average daily attendance;
279+ to children participating in the program in a manner in which the
280+ children are not counted toward the school's average daily
281+ attendance;
353282 (4) for a private tutor, therapist, or teaching
354283 service, demonstrates that:
355284 (A) the tutor or therapist or each employee of
356285 the teaching service who intends to provide educational services to
357286 a participating child:
358287 (i) is an educator employed by or a retired
359288 educator formerly employed by a school accredited by the agency, an
360289 organization recognized by the agency, or an organization
361290 recognized by the Texas Private School Accreditation Commission;
362291 (ii) holds a relevant license or
363292 accreditation issued by a state, regional, or national
364293 certification or accreditation organization; or
365294 (iii) is employed in or retired from a
366295 teaching or tutoring capacity at a higher education provider;
367296 (B) the tutor or therapist or each employee of
368297 the teaching service who intends to provide educational services to
369298 a participating child provides to the comptroller a national
370- criminal history record information review completed for the tutor,
299+ criminal history record information review completed by the tutor,
371300 therapist, or employee, as applicable, within a period established
372- by comptroller rule or authorizes the comptroller or the
373- comptroller's designee to conduct a national criminal history
374- record information review of the tutor, therapist, or employee as
375- prescribed by comptroller rule; and
301+ by comptroller rule; and
376302 (C) the tutor or therapist or each employee of
377303 the teaching service who intends to provide educational services to
378304 a participating child is not:
379305 (i) required to be discharged or refused to
380306 be hired by a school district under Section 22.085; or
381307 (ii) included in the registry under Section
382- 22.092;
308+ 22.092; or
383309 (5) for a higher education provider, demonstrates
384- nationally recognized postsecondary accreditation; or
385- (6) notwithstanding Subdivision (2), for a private
386- provider serving children in prekindergarten or kindergarten,
387- demonstrates that the provider meets the requirements to be an
388- eligible private provider under Section 29.171.
389- (b-1) The comptroller may approve a vendor of educational
390- products that provides products or services described by Section
391- 29.359(a)(1)(C), (2), (4), (6), (8), or (9) for participation in
392- the program in accordance with comptroller rule.
393- (c) The comptroller may approve only an education service
310+ nationally recognized postsecondary accreditation.
311+ (c) The comptroller may approve a vendor of educational
312+ products not described by Subsection (b) for participation in the
313+ program in accordance with comptroller rule.
314+ (d) The comptroller may approve only an education service
394315 provider located in this state or vendor of educational products
395316 registered to do business in this state.
396- (d) An education service provider or vendor of educational
317+ (e) An education service provider or vendor of educational
397318 products shall provide information requested by the comptroller to
398319 verify the provider's or vendor's eligibility for preapproval under
399320 this section. The comptroller may not approve a provider or vendor
400321 if the comptroller cannot verify the provider's or vendor's
401322 eligibility for preapproval.
402- (e) Each applicant for approval under this section shall
323+ (f) Each applicant for approval under this section shall
403324 submit to the comptroller documentation demonstrating that each
404325 person employed by the applicant or provider who will interact with
405326 a participating child is not identified as having engaged in
406327 misconduct described by Section 22.093(c)(1)(A) or (B) using the
407328 interagency reportable conduct search engine established under
408329 Chapter 810, Health and Safety Code.
409- (f) The comptroller or the comptroller's designee shall
410- review the documentation for each person described by Subsection
411- (e). Each applicant for approval under this section must provide
412- the comptroller or the comptroller's designee with any information
413- requested by the comptroller or designee to enable the comptroller
414- or designee to complete the review.
415- (g) An education service provider or vendor of educational
330+ (f-1) To be preapproved under this section, an education
331+ service provider must submit to the comptroller documentation
332+ demonstrating that the provider requires each person applying for
333+ employment with or employed by the provider to submit to a criminal
334+ history record review under Chapter 22, Education Code in the same
335+ manner as a qualified private school under Subchapter C and
336+ Subchapter C-1 of that chapter. The commissioner by rule shall
337+ provide to education service providers access to criminal history
338+ record information necessary for the providers to comply with this
339+ subsection.
340+ (g) The comptroller shall review the documentation for each
341+ person described by Subsection (f) or (f-1). Each applicant for
342+ approval under this section must provide the comptroller with any
343+ information requested by the comptroller to enable the comptroller
344+ to complete the review.
345+ (h) An education service provider or vendor of educational
416346 products must agree to:
417347 (1) abide by the disbursement schedule under Section
418348 29.360(c) and all other requirements of this subchapter;
419349 (2) accept money from the program only for
420350 education-related expenses approved under Section 29.359;
421351 (3) notify the comptroller not later than the 30th day
422352 after the date that the provider or vendor no longer meets the
423353 requirements of this section; and
424354 (4) return any money received, including any interest
425355 or other additions received related to the money, in violation of
426356 this subchapter or other relevant law to the comptroller for
427357 deposit into the program fund.
428- (h) An education service provider or vendor of educational
358+ (i) An education service provider or vendor of educational
429359 products that receives approval under this section may participate
430360 in the program until the earliest of the date on which the provider
431361 or vendor:
432362 (1) no longer meets the requirements under this
433363 section; or
434364 (2) violates this subchapter or other relevant law.
435365 Sec. 29.3585. PROVIDER AND VENDOR SUSPENSION AND REMOVAL.
436366 (a) The comptroller shall immediately suspend a preapproved
437367 education service provider or vendor of educational products on
438368 finding that the provider or vendor:
439- (1) is ineligible under this subchapter for
440- participation in the program; or
369+ (1) is ineligible under this chapter for participation
370+ in the program; or
441371 (2) has failed to remain in good standing by complying
442- with a program requirement under this subchapter or other
443- applicable law.
372+ with a program requirement under this chapter or other applicable
373+ law.
444374 (b) A payment may not be made from a program participant's
445375 account to a suspended provider or vendor.
446376 (c) On suspension under this section, the comptroller shall
447377 immediately send notice of the suspension to the suspended provider
448378 or vendor and each certified educational assistance organization by
449379 first class mail and e-mail. The notice must include a statement
450380 that:
451381 (1) specifies the grounds for suspending the provider
452382 or vendor;
453383 (2) no additional payments may be made to the provider
454384 or vendor from a program participant's account during the
455385 provider's or vendor's suspension; and
456386 (3) the provider or vendor has 30 days to respond and
457387 take any corrective action required to comply with program
458388 requirements and applicable law.
459389 (d) Not later than the 30th day after the date the
460390 comptroller provides notice of suspension under Subsection (c), the
461391 comptroller shall:
462392 (1) remove the provider or vendor from the program;
463393 (2) conditionally reinstate the provider or vendor and
464394 require the provider or vendor to perform a specified action; or
465395 (3) unconditionally reinstate the provider or vendor.
466396 (e) On removing a provider or vendor from the program, the
467397 comptroller shall notify the provider or vendor and each certified
468398 educational assistance organization of the removal.
469399 Sec. 29.359. APPROVED EDUCATION-RELATED EXPENSES. (a)
470- Subject to Subsection (b), a participating parent may request that
471- program money be spent only for the following education-related
472- expenses incurred by a participating child at a preapproved
473- education service provider or vendor of educational products:
400+ Subject to Subsection (c), money received under the program may be
401+ used only for the following education-related expenses incurred by
402+ a participating child at a preapproved education service provider
403+ or vendor of educational products:
474404 (1) tuition and fees for:
475405 (A) a private school;
476- (B) a higher education provider;
477- (C) an online educational course or program; or
478- (D) a program that provides training for an
479- industry-based credential approved by the agency;
406+ (B) a higher education provider; or
407+ (C) a program that provides training for an
408+ industry-based credential approved by the agency for purposes of
409+ public school accountability under Section 39.053(c)(1)(B)(v);
480410 (2) the purchase of textbooks or other instructional
481- materials or uniforms required by a private school, higher
482- education provider, or course in which the child is enrolled,
483- including purchases made through a third-party vendor of
484- educational products;
485- (3) fees for classes or other educational services
486- provided by a school district or open-enrollment charter school if
487- the classes or services do not qualify the child to be included in
488- the school's average daily attendance;
489- (4) costs related to academic assessments;
490- (5) fees for services provided by a private tutor or
411+ materials;
412+ (3) the purchase of uniforms required by an education
413+ service provider;
414+ (4) costs of computer hardware or software and other
415+ technological devices required by an education service provider or
416+ vendor of educational products or prescribed by a physician to
417+ facilitate a child's education, not to exceed in any year 10 percent
418+ of the total amount paid to the participating child's account that
419+ year;
420+ (5) fees for classes or other educational services
421+ provided by a public school, including an open-enrollment charter
422+ school, if the classes or services do not qualify the child to be
423+ included in the school's average daily attendance;
424+ (6) costs related to academic assessments;
425+ (7) fees for services provided by a private tutor or
491426 teaching service;
492- (6) fees for transportation provided by a
427+ (8) fees for transportation provided by a
493428 fee-for-service transportation provider for the child to travel to
494429 and from a preapproved education service provider or vendor of
495- educational products;
496- (7) fees for educational therapies or services
430+ educational products; and
431+ (9) fees for educational therapies or services
497432 provided by a practitioner or provider, only for fees that are not
498433 covered by any federal, state, or local government benefits such as
499434 Medicaid or the Children's Health Insurance Program (CHIP) or by
500435 any private insurance that the child is enrolled in at the time of
501- receiving the therapies or services;
502- (8) costs of computer hardware or software and other
503- technological devices required by an education service provider or
504- vendor of educational products or prescribed by a physician to
505- facilitate a child's education, not to exceed in any year 10 percent
506- of the total amount transferred to the participating child's
507- account that year; and
508- (9) costs of breakfast or lunch provided to a child
509- during the school day by a private school.
510- (b) Money transferred under the program to a participating
511- child's account may not be used to pay any person who is related to
512- the program participant within the third degree by consanguinity or
513- affinity, as determined under Chapter 573, Government Code.
514- (c) A finding that a program participant requested that
515- program money be spent to pay for an expense not allowed under
516- Subsection (a) does not affect the validity of any payment
517- requested by the participant for an approved education-related
518- expense that is allowed under that subsection.
436+ receiving the therapies or services.
437+ (b) Money received under the program as described by Section
438+ 29.361(a)(2)(A), may not be used to pay for online or virtual
439+ education services.
440+ (c) Money received under the program may not be used to pay:
441+ (1) tuition or fees for services provided at a campus
442+ located in another state; or
443+ (2) any person who is related to the program
444+ participant within the third degree by consanguinity or affinity,
445+ as determined under Chapter 573, Government Code.
446+ (d) A finding that a program participant used money
447+ distributed under the program to pay for an expense not allowed
448+ under Subsection (a) does not affect the validity of any payment
449+ made by the participant for an approved education-related expense
450+ that is allowed under that subsection.
519451 Sec. 29.360. PROGRAM EXPENDITURES. (a) The comptroller
520452 shall disburse from the program fund to each certified educational
521453 assistance organization the amount specified under Section
522454 29.361(a) for each participating child served by the organization.
523455 (b) To initiate payment to an education service provider or
524456 vendor of educational products for an education-related expense
525457 approved under Section 29.359, the participating parent must submit
526458 a request in a form prescribed by comptroller rule to the certified
527459 educational assistance organization that serves the child.
528460 (c) Subject to Subsection (d) and Sections 29.362(f) and
529461 29.364, on receiving a request under Subsection (b), a certified
530462 educational assistance organization shall verify that the request
531463 is for an expense approved under Section 29.359 and, not later than
532464 the 10th business day after the date the organization verifies the
533465 request, send payment to the education service provider or vendor
534466 of educational products.
535467 (d) A disbursement under this section may not exceed the
536468 applicable participating child's account balance.
537469 (e) A certified educational assistance organization shall
538470 provide participating parents with electronic access to:
539471 (1) view the participating child's current account
540472 balance;
541- (2) initiate the payment request process under
542- Subsection (b); and
473+ (2) initiate the payment process under Subsection (b);
474+ and
543475 (3) view a summary of past account activity, including
544476 payments from the account to education service providers and
545477 vendors of educational products.
546478 (f) A payment system established by a certified educational
547479 assistance organization may not allow a program participant to:
548480 (1) withdraw cash or remove funds from a participating
549481 child's account; or
550482 (2) receive payment or reimbursement directly from the
551483 program.
552484 (g) A certified educational assistance organization may not
553485 require a program participant to pay a fee to the organization or an
554486 affiliate of the organization related to the use of a participating
555487 child's account, including a transaction fee.
556- Sec. 29.361. AMOUNT OF TRANSFER TO PARTICIPANT ACCOUNT;
557- FINANCING. (a) Regardless of the deadline by which the
558- participating parent applies for enrollment in the program under
559- Section 29.356(a) and except as provided by Subsections (b), (b-1),
560- and (d) of this section, a certified educational assistance
561- organization shall transfer in accordance with Section 29.362 each
562- school year that a participating child participates in the program
563- money distributed to the organization from money available under
564- Section 29.353 to the child's account to be held in trust for the
565- benefit of the child in an amount equal to:
566- (1) 85 percent of the estimated statewide average
567- amount of state and local funding per student in average daily
568- attendance for the most recent school year for which that
569- information is available, as provided by the agency; or
570- (2) for a child with a disability, subject to
571- Subsection (b), the sum of the amount described by Subdivision (1)
572- and the amount the school district in which the child would
573- otherwise be enrolled would be entitled to receive for the child
574- calculated based on the child's individualized education program,
575- as determined in accordance with Section 29.3615, and the
576- provisions of Chapter 48 that provide funding based on a child's
577- participation in a school district's special education program
578- under Subchapter A applicable for the school year preceding the
579- school year in which the child initially enrolls in the program.
580- (b) The amount transferred to the account of a child with a
581- disability for a school year under Subsection (a)(2) may not exceed
582- $30,000.
583- (b-1) Notwithstanding Subsection (a), a participating child
584- who is a home-schooled student, as defined by Section 29.916(a)(1),
585- may not receive transfers under the program to the child's account
586- under Subsection (a) in an amount that exceeds $2,000 for a school
587- year.
588- (c) In determining the estimated statewide average amount
589- of state and local funding per student in average daily attendance
590- for a school year under Subsection (a), the commissioner shall:
591- (1) make the determination not later than January 15
592- preceding the school year; and
593- (2) include projected state and local funding under
594- Chapters 48 and 49 and the amount the state is required to
595- contribute to the Teacher Retirement System of Texas under Section
596- 825.404, Government Code, for the school year.
597- (d) If a child enrolls in the program after the beginning of
598- a school year, the comptroller shall prorate the amount transferred
599- to the participating child's account under Subsection (a) based on
600- the date the child enrolls in the program.
601- (e) Any money remaining in a participating child's account
488+ Sec. 29.361. AMOUNT OF PAYMENT; FINANCING. (a) Subject to
489+ Subsections (b) and (b-1), the comptroller shall credit
490+ semiannually from the program fund to each program participant's
491+ account a total annual amount equal to:
492+ (1) $2,000 or a greater amount set by appropriation;
493+ or
494+ (2) if the participating child is enrolled in a
495+ private school accredited by an organization recognized by the
496+ Texas Private School Accreditation Commission or the agency:
497+ (A) $10,000; or
498+ (B) $11,500 if the participating child is a child
499+ with a disability.
500+ (a-1) Subject to Subsection (b), in addition to the amount
501+ provided under Subsection (a), the comptroller shall credit
502+ semiannually from the program fund to the account of each program
503+ participant who is both a child with a disability and a
504+ home-schooled student, as defined by Section 29.916, an amount
505+ equal to $500. Money credited to a participating child's account
506+ under this subsection may be used only to pay for an expense
507+ approved under Section 29.359(a)(9).
508+ (b) The comptroller shall prorate a credit to a program
509+ participant's account under Subsection (a) or (a-1) for a
510+ participating child admitted into the program after the beginning
511+ of a program year based on the date the child is admitted.
512+ (b-1) The total amount in a participating child's account in
513+ any year may not exceed $20,000. Notwithstanding Subsection (a),
514+ the comptroller shall reduce the amount of a credit to a program
515+ participant's account as necessary to ensure the amount in the
516+ account does not exceed the limit described by this subsection.
517+ (c) Any money remaining in a participating child's account
602518 at the end of a fiscal year is carried forward to the next fiscal
603519 year unless another provision of this subchapter mandates the
604520 closure of the account.
605- (f) A participating parent may make payments for the
521+ (d) The participating parent may make payments for the
606522 expenses of educational programs, services, and products not
607- covered by money in the account of the parent's child.
608- (g) A transfer under Subsection (a) may not be funded using
609- federal money or money from the available school fund or the state
610- instructional materials and technology fund.
611- (h) Transfers to a participating child's account under this
612- subchapter do not constitute taxable income to a participating
613- parent, unless otherwise provided by federal or another state's
614- law.
615- (i) On dates consistent with satisfying the application
616- deadlines established under Section 29.356(a), the agency shall
617- calculate and report to the comptroller the amount specified under
618- Subsection (a) for each participating child.
619- Sec. 29.3611. ENROLLMENT IN PUBLIC SCHOOL. Notwithstanding
620- any other provision of this subchapter or other law, if a child
621- ceases participation in the program during a school year due to the
622- child's enrollment in a school district or open-enrollment charter
623- school:
624- (1) the district or school is entitled to receive an
625- allotment in an amount equal to the basic allotment multiplied by
626- 0.1 for the child's average daily attendance at the district or
627- school for that school year; and
628- (2) the child may not be considered in evaluating the
629- performance of a school district or open-enrollment charter school
630- under the public school accountability system as prescribed by
631- Chapters 39 and 39A for the first school year after the child ceases
632- participation in the program.
633- Sec. 29.3615. INDIVIDUALIZED EDUCATION PROGRAMS;
634- EVALUATIONS. (a) The parent of a child who is not enrolled in a
635- school district or open-enrollment charter school may request that
636- a school district conduct a full individual and initial evaluation
637- of the child for purposes of determining the child's eligibility
638- for:
639- (1) special education services under Subchapter A; and
640- (2) participation in the program as a child with a
641- disability.
642- (b) A school district that receives a request under this
643- section shall follow procedures, including for timely completion,
644- for a full individual and initial evaluation in accordance with 20
645- U.S.C. Sections 1412(a)(10)(A)(ii) and 1414 and Section 29.004 of
646- this code not later than the 45th school day after the date the
647- district receives parental consent to conduct the evaluation.
648- (c) If a school district determines based on an evaluation
649- conducted under Subsection (b) that a child is eligible for special
650- education services, the district shall develop an individualized
651- education program for the child for purposes of establishing the
652- child's eligibility to participate in the program as a child with a
653- disability.
654- (d) At the agency's request, a school district or
655- open-enrollment charter school shall provide to the agency a
656- child's individualized education program developed under Section
657- 29.005 or Subsection (c) of this section, as applicable.
658- (e) The agency may adopt rules as necessary to implement
659- this section, including rules regarding an appeal of a
660- determination of eligibility for special education services and
661- services to be provided as described in an individualized education
662- program developed in accordance with this section.
523+ covered by money in the participating child's account.
524+ (e) A payment under Subsection (a) or (a-1) may not be
525+ financed using federal money or money from the available school
526+ fund or instructional materials and technology fund.
527+ (f) Payments received under this subchapter do not
528+ constitute taxable income to a participating parent, unless
529+ otherwise provided by federal law.
663530 Sec. 29.362. ADMINISTRATION OF ACCOUNTS. (a) On receipt
664531 of money distributed by the comptroller for purposes of making
665- transfers to the accounts of participating children, a certified
666- educational assistance organization shall hold that money in trust
667- for the benefit of children participating in the program and make
668- quarterly transfers to the account of each participating child
669- served by the organization in equal amounts on or before the first
670- day of July, October, January, and April.
532+ transfers to program participant accounts, a certified educational
533+ assistance organization shall hold that money in trust for the
534+ benefit of children participating in the program and make quarterly
535+ payments to the account of each participating child served by the
536+ organization in equal amounts on or before the first day of July,
537+ October, January, and April, or as otherwise determined by
538+ comptroller rule.
671539 (b) Each year, the comptroller may deduct from the total
672540 amount of money appropriated for purposes of this subchapter an
673541 amount, not to exceed three percent of that total amount, to cover
674542 the comptroller's cost of administering the program.
675543 (c) The comptroller may disburse each state fiscal year a
676544 total amount, not to exceed five percent of the amount of money
677545 appropriated for purposes of the program for that state fiscal
678546 year, to the certified educational assistance organizations for the
679547 cost of providing services under this subchapter.
680548 (d) On or before the first day of October and February, a
681549 certified educational assistance organization shall:
682550 (1) verify with the agency that each participating
683- child is not enrolled in a school district or open-enrollment
684- charter school in a manner in which the child is counted toward the
685- district's or school's average daily attendance for purposes of the
686- allocation of state funding under the Foundation School Program;
687- and
551+ child is not enrolled in a public school, including an
552+ open-enrollment charter school, in a manner in which the child is
553+ counted toward the school's average daily attendance for purposes
554+ of the allocation of state funding under the Foundation School
555+ Program; and
688556 (2) notify the comptroller if the organization
689557 determines that a participating child is:
690- (A) enrolled in a school district or
691- open-enrollment charter school in a manner in which the child is
692- counted toward the district's or school's average daily attendance
693- for purposes of the allocation of state funding under the
694- Foundation School Program; or
558+ (A) enrolled in a public school, including an
559+ open-enrollment charter school, in a manner in which the child is
560+ counted toward the school's average daily attendance for purposes
561+ of the allocation of state funding under the Foundation School
562+ Program; or
695563 (B) not enrolled in a preapproved private school.
696564 (e) The comptroller by rule shall establish a process by
697565 which a participating parent may authorize the comptroller or a
698566 certified educational assistance organization to make a payment
699567 directly from the participant's account to a preapproved education
700568 service provider or vendor of educational products for an expense
701569 allowed under Section 29.359.
702570 (f) On the date on which a child who participated in the
703571 program is no longer eligible to participate in the program under
704572 Section 29.355 and payments for any education-related expenses
705573 allowed under Section 29.359 from the child's account have been
706574 completed, the participating child's account shall be closed and
707575 any remaining money returned to the comptroller for deposit in the
708576 program fund.
709577 (g) Each quarter, any interest or other earnings
710578 attributable to money held by a certified educational assistance
711579 organization for purposes of the program shall be remitted to the
712580 comptroller for deposit in the program fund.
713581 Sec. 29.363. AUDITING. (a) The comptroller shall contract
714582 with a private entity to audit accounts and program participant
715583 eligibility data not less than once per year to ensure compliance
716584 with applicable law and program requirements. The audit must
717585 include a review of:
718586 (1) each certified educational assistance
719587 organization's internal controls over program transactions; and
720588 (2) compliance by:
721589 (A) certified educational assistance
722590 organizations with Section 29.354 and other program requirements;
723- (B) program participants with Section 29.357(a)
724- and other program requirements; and
591+ (B) program participants with Section 29.357 and
592+ other program requirements; and
725593 (C) education service providers and vendors of
726594 educational products with Section 29.358 and other program
727595 requirements.
728596 (b) In conducting an audit, the private entity may require a
729597 program participant, education service provider or vendor of
730- educational products, or certified educational assistance
598+ educational products, or a certified educational assistance
731599 organization to provide information and documentation regarding
732600 any transaction occurring under the program.
733601 (c) The private entity shall report to the comptroller any
734602 violation of this subchapter or other relevant law and any
735603 transactions the entity determines to be unusual or suspicious
736604 found by the entity during an audit conducted under this section.
737605 The comptroller shall report the violation or transaction to:
738606 (1) the applicable certified educational assistance
739607 organization;
740608 (2) the education service provider or vendor of
741609 educational products, as applicable; and
742610 (3) each participating parent who is affected by the
743611 violation or transaction.
744612 Sec. 29.364. SUSPENSION OF ACCOUNT. (a) The comptroller
745613 shall suspend the account of a participating child who fails to
746614 remain in good standing by complying with applicable law or a
747615 requirement of the program.
748616 (b) On suspension of an account under Subsection (a), the
749617 comptroller shall notify the participating parent in writing that
750618 the account has been suspended and that no additional payments may
751619 be made from the account. The notification must specify the grounds
752620 for the suspension and state that the participating parent has 30
753621 days to respond and take any corrective action required by the
754622 comptroller.
755623 (c) On the expiration of the 30-day period under Subsection
756624 (b), the comptroller shall:
757625 (1) order closure of the suspended account;
758626 (2) order temporary reinstatement of the account,
759627 conditioned on the performance of a specified action by the
760628 participating parent; or
761629 (3) order full reinstatement of the account.
762630 (d) The comptroller may recover money distributed under the
763631 program that was used for expenses not allowed under Section
764632 29.359, for a child who was not eligible to participate in the
765633 program at the time of the expenditure, or from an education service
766634 provider or vendor of educational products that was not approved at
767635 the time of the expenditure. The money and any interest or other
768636 additions received related to the money may be recovered from the
769637 participating parent or the education service provider or vendor of
770638 educational products that received the money in accordance with
771- Subtitles A and B, Title 2, Tax Code, or as provided by other law if
772- the participating child's account is suspended or closed under this
773- section. The comptroller shall deposit money recovered under this
774- subsection into the program fund.
639+ applicable law if the participating child's account is suspended or
640+ closed under this section. The comptroller shall deposit money
641+ recovered under this subsection into the program fund.
775642 Sec. 29.365. TUITION AND FEES; REFUND PROHIBITED. (a) An
776643 education service provider or vendor of educational products may
777644 not charge a participating child an amount greater than the
778645 standard amount charged for that service or product by the provider
779646 or vendor.
780647 (b) An education service provider or vendor of educational
781648 products receiving money distributed under the program may not in
782649 any manner rebate, refund, or credit to or share with a program
783650 participant, or any person on behalf of a participant, any program
784651 money paid or owed by the participant to the provider or vendor.
785652 Sec. 29.366. REFERRAL TO DISTRICT ATTORNEY. If the
786653 comptroller obtains evidence of fraudulent use of an account or
787654 money distributed under the program or any other violation of law by
788655 a certified educational assistance organization, education service
789656 provider or vendor of educational products, or program participant,
790657 the comptroller shall notify the appropriate local county or
791658 district attorney with jurisdiction over, as applicable:
792659 (1) the principal place of business of the
793660 organization or provider or vendor; or
794661 (2) the residence of the program participant.
795662 Sec. 29.367. SPECIAL EDUCATION NOTICE. (a) A certified
796- educational assistance organization shall post on the Internet
797- website established and maintained for the program and provide to
798- each parent who submits an application for the program a notice
799- that:
663+ educational assistance organization shall submit to the
664+ comptroller for posting on an Internet website established and
665+ maintained by the comptroller for the program and provide to each
666+ parent who applies for the program a notice that:
800667 (1) states that a private school is not subject to
801668 federal and state laws regarding the provision of educational
802- services to a child with a disability in the same manner as a school
803- district or open-enrollment charter school; and
669+ services to a child with a disability in the same manner as a public
670+ school; and
804671 (2) provides information regarding rights to which a
805672 child with a disability is entitled under federal and state law if
806- the child attends a school district or open-enrollment charter
807- school, including:
673+ the child attends a public school, including:
808674 (A) rights provided under the Individuals with
809675 Disabilities Education Act (20 U.S.C. Section 1400 et seq.); and
810676 (B) rights provided under Subchapter A.
811677 (b) A private school in which a child with a disability who
812678 is a participating child enrolls shall provide to the participating
813679 parent a copy of the notice required under Subsection (a).
814680 Sec. 29.368. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
815681 AUTONOMY. (a) An education service provider or vendor of
816682 educational products that receives money distributed under the
817683 program is not a recipient of federal financial assistance and may
818684 not be considered to be a state actor on the basis of receiving that
819685 money.
820- (b) A state agency or state official may not adopt a rule or
821- take other governmental action related to the program and a
686+ (b) Except as provided by Section 110.003, Civil Practice
687+ and Remedies Code, a state agency or state official may not adopt a
688+ rule or take other governmental action related to the program and a
822689 certified educational assistance organization may not take action
823690 that:
824691 (1) limits or imposes requirements that are contrary
825692 to the religious or institutional values or practices of an
826693 education service provider, vendor of educational products, or
827694 program participant; or
828695 (2) limits an education service provider, vendor of
829696 educational products, or program participant from freely:
830697 (A) determining the methods or curriculum to
831698 educate students;
832699 (B) determining admissions and enrollment
833700 practices, policies, and standards;
834701 (C) modifying or refusing to modify the
835702 provider's, vendor's, or participant's religious or institutional
836703 values or practices, operations, conduct, policies, standards,
837704 assessments, or employment practices based on the provider's,
838705 vendor's, or participant's religious values or practices; or
839706 (D) exercising the provider's, vendor's, or
840707 participant's religious or institutional practices as the
841708 provider, vendor, or participant determines.
842709 Sec. 29.369. STUDENT RECORDS AND INFORMATION. (a) On
843710 request by the participating parent or parent of a child seeking to
844711 participate in the program, the school district or open-enrollment
845712 charter school that the child would otherwise attend shall provide
846713 a copy of the child's school records possessed by the district or
847714 school, if any, to the child's parent or, if applicable, the private
848715 school the child attends.
849716 (b) As necessary to verify a child's eligibility for the
850717 program, the agency, a school district, or an open-enrollment
851718 charter school shall provide to a certified educational assistance
852719 organization any information available to the agency, district, or
853720 school requested by the organization regarding a child who
854721 participates or seeks to participate in the program, including
855- information regarding the child's school district or
856- open-enrollment charter school enrollment status and whether the
857- child can be counted toward a school district's or open-enrollment
858- charter school's average daily attendance for purposes of the
859- allocation of funding under the Foundation School Program. The
860- organization may not retain information provided under this
861- subsection beyond the period necessary to determine a child's
862- eligibility to participate in the program.
863- (c) A certified educational assistance organization or an
864- education service provider or vendor of educational products that
865- obtains information regarding a participating child:
722+ information regarding the child's public school enrollment status
723+ and whether the child can be counted toward a public school's
724+ average daily attendance for purposes of the allocation of funding
725+ under the Foundation School Program. The organization may not
726+ retain information provided under this subsection beyond the period
727+ necessary to determine a child's eligibility to participate in the
728+ program.
729+ (c) Except as provided by Subsection (d), a certified
730+ educational assistance organization or an education service
731+ provider or vendor of educational products that obtains information
732+ regarding a participating child:
866733 (1) shall comply with state and federal law regarding
867734 the confidentiality of student educational information; and
868- (2) may not:
869- (A) sell information regarding a participating
870- child; or
871- (B) distribute information regarding a
872- participating child in a manner not described by Paragraph (A)
873- without the program participant's consent.
874- (d) A student record held by the comptroller or a certified
735+ (2) may not sell or otherwise distribute information
736+ regarding a participating child.
737+ (d) An education service provider or vendor of educational
738+ products may, with the consent of a participating child's parent,
739+ distribute the child's information for the purpose of the child's
740+ application for admission to a postsecondary educational
741+ institution.
742+ (e) A student record held by the comptroller or a certified
875743 educational assistance organization is confidential and not
876744 subject to disclosure under Chapter 552, Government Code. The
877745 comptroller or a certified educational assistance organization may
878746 redact information that constitutes student records from any
879747 information the governmental body discloses under Section 552.021,
880748 Government Code, without the necessity of requesting a decision
881749 from the attorney general under Subchapter G, Chapter 552,
882750 Government Code.
883751 Sec. 29.370. GIFTS, GRANTS, AND DONATIONS. The comptroller
884- may solicit and accept gifts, grants, and donations from any public
885- or private source for any expenses related to the administration of
886- the program, including establishing the program and contracting for
887- the report required under Section 29.371.
888- Sec. 29.371. ANNUAL REPORT. (a) The comptroller, in
889- collaboration with the agency and the certified educational
890- assistance organizations, shall compile program data and produce an
891- annual longitudinal report regarding:
892- (1) the number of program applications received,
893- accepted, and wait-listed, disaggregated by age;
752+ and a certified educational assistance organization may solicit and
753+ accept gifts, grants, and donations from any public or private
754+ source for any expenses related to the administration of the
755+ program, including establishing the program and contracting for the
756+ report required under Section 29.371.
757+ Sec. 29.371. ANNUAL REPORT. (a) The comptroller shall
758+ require that each certified educational assistance organization
759+ compile program data and produce an annual longitudinal report
760+ regarding:
761+ (1) the number of program applications received and
762+ accepted, disaggregated by age;
894763 (2) program participant satisfaction;
895764 (3) the results of assessment instruments shared in
896- accordance with Section 29.357(a)(2);
765+ accordance with Section 29.357(3);
897766 (4) the effect of the program on public and private
898767 school capacity and availability;
899768 (5) the amount of cost savings accruing to the state as
900769 a result of the program;
901770 (6) in a report submitted in an even-numbered year
902771 only, an estimate of the total amount of funding required for the
903772 program for the next state fiscal biennium;
904773 (7) the amount of gifts, grants, and donations
905774 received under Section 29.370; and
906775 (8) based on surveys of former program participants or
907776 other sources available to an organization, the number and
908777 percentage of children participating in the program who, within one
909778 year after graduating from high school, are:
910779 (A) college ready, as indicated by earning a
911780 minimum of 12 non-remedial semester credit hours or the equivalent
912781 or an associate degree from a postsecondary educational
913782 institution;
914783 (B) career ready, as indicated by:
915784 (i) earning a credential of value included
916785 in a library of credentials established under Section 2308A.007,
917786 Government Code; or
918787 (ii) employment at or above the median wage
919788 in the child's region; or
920789 (C) military ready, as indicated by achieving a
921790 passing score set by the applicable military branch on the Armed
922791 Services Vocational Aptitude Battery and enlisting in the armed
923792 forces of the United States or the Texas National Guard.
924- (b) In producing the report, the comptroller shall:
793+ (b) In producing the report, each certified educational
794+ assistance organization shall:
925795 (1) use appropriate analytical and behavioral science
926796 methodologies to ensure public confidence in the report; and
927797 (2) comply with the requirements regarding the
928798 confidentiality of student educational information under the
929799 Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
930800 Section 1232g).
931801 (c) The report must cover a period of not less than five
932802 years and include, subject to Subsection (b)(2), the data analyzed
933803 and methodology used.
934- (d) The comptroller shall provide the report for posting on
935- the Internet website established and maintained for the program.
804+ (d) The comptroller shall post the report on an Internet
805+ website established and maintained by the comptroller for the
806+ program.
936807 Sec. 29.3715. COLLECTION AND REPORTING OF DEMOGRAPHIC
937- INFORMATION. (a) The comptroller, in collaboration with the
938- agency and the certified educational assistance organizations,
939- shall collect and report demographic information regarding each
940- participating child. The report must include the following
941- demographic information:
808+ INFORMATION. (a) Each certified educational assistance
809+ organization shall collect and report to the comptroller
810+ demographic information regarding each participating child for
811+ whom the organization is responsible. The report must include the
812+ following demographic information:
942813 (1) the child's grade;
943814 (2) the child's age;
944- (3) the child's sex;
815+ (3) the child's gender;
945816 (4) the child's race or ethnicity;
946817 (5) the school district in which the child resides;
947818 (6) the district campus that the child would otherwise
948819 attend;
949820 (7) the child's zip code;
950821 (8) the child's date of enrollment in the program;
951- (9) the child's category under Section 29.356(b); and
822+ (9) whether the child is educationally disadvantaged;
823+ and
952824 (10) whether the child has a disability.
953825 (b) Not later than August 1 of each year, the comptroller
954826 shall submit a written report to the legislature summarizing the
955827 demographic information collected under this section.
956828 Sec. 29.372. RULES; PROCEDURES. The comptroller shall
957829 adopt rules and procedures as necessary to implement, administer,
958830 and enforce this subchapter.
959831 Sec. 29.373. APPEAL; FINALITY OF DECISIONS. (a) A program
960832 participant may appeal to the comptroller an administrative
961833 decision made by the comptroller or a certified educational
962834 assistance organization under this subchapter, including a
963835 decision regarding eligibility, allowable expenses, or the
964836 participant's removal from the program.
965- (b) An appeal under this subchapter does not constitute a
966- contested case for any purpose.
967- (c) This subchapter may not be construed to confer a
837+ (b) This subchapter may not be construed to confer a
968838 property right on a certified educational assistance organization,
969839 education service provider, vendor of educational products, or
970- program participant.
971- (d) A decision of the comptroller made under this subchapter
840+ program participant, and an appeal under this subchapter does not
841+ constitute a contested case for any purpose.
842+ (c) A decision of the comptroller made under this subchapter
972843 is final and not subject to appeal.
973844 Sec. 29.374. RIGHT TO INTERVENE IN CIVIL ACTION. (a) A
974845 program participant, eligible child, education service provider,
975846 or vendor of educational products may intervene in any civil action
976847 challenging the constitutionality of the program.
977848 (b) A court in which a civil action described by Subsection
978849 (a) is filed may require that all program participants, eligible
979850 children, education service providers, and vendors of educational
980851 products wishing to intervene in the action file a joint brief. A
981852 program participant, eligible child, education service provider,
982853 or vendor of educational products may not be required to join a
983854 brief filed on behalf of the state or a state agency.
984855 SECTION 3. Section 22.092(d), Education Code, is amended to
985856 read as follows:
986857 (d) The agency shall provide equivalent access to the
987858 registry maintained under this section to:
988859 (1) private schools;
989860 (2) public schools; [and]
990861 (3) nonprofit teacher organizations approved by the
991862 commissioner for the purpose of participating in the tutoring
992863 program established under Section 33.913; and
993864 (4) the comptroller for the purpose of preapproving
994865 education service providers and vendors of educational products
995866 under Section 29.358 for participation in the program established
996867 under Subchapter J, Chapter 29.
997868 SECTION 4. Section 411.109, Government Code, is amended by
998869 adding Subsection (b-1) and amending Subsection (c) to read as
999870 follows:
1000871 (b-1) The comptroller is entitled to obtain criminal
1001872 history record information as provided by Subsection (c) about a
1002873 person who is an employee of an education service provider or vendor
1003874 of educational products who intends to provide educational services
1004875 to a child participating in the program established under
1005876 Subchapter J, Chapter 29, Education Code, and is seeking approval
1006877 to receive money distributed under that program.
1007878 (c) Subject to Section 411.087 and consistent with the
1008879 public policy of this state, the comptroller is entitled to:
1009880 (1) obtain through the Federal Bureau of Investigation
1010881 criminal history record information maintained or indexed by that
1011882 bureau that pertains to a person described by Subsection (a), [or]
1012883 (b), or (b-1); and
1013884 (2) obtain from the department or any other criminal
1014885 justice agency in this state criminal history record information
1015886 maintained by the department or that criminal justice agency that
1016887 relates to a person described by Subsection (a), [or] (b), or (b-1).
1017888 SECTION 5. Section 810.002, Health and Safety Code, is
1018889 amended to read as follows:
1019890 Sec. 810.002. APPLICABILITY. This chapter applies to the
1020891 following state agencies:
1021892 (1) the Department of Family and Protective Services;
1022893 (2) the Health and Human Services Commission;
1023894 (3) the Texas Education Agency; [and]
1024895 (4) the Texas Juvenile Justice Department; and
1025896 (5) the comptroller of public accounts.
1026- SECTION 6. (a) Except as provided by Subsection (b) of this
1027- section, Subchapter J, Chapter 29, Education Code, as added by this
1028- Act, applies beginning with the 2026-2027 school year.
1029- (b) Section 29.3521(c), Education Code, as added by this
1030- Act, applies beginning with the state fiscal biennium beginning
1031- September 1, 2027.
897+ SECTION 6. Subchapter J, Chapter 29, Education Code, as
898+ added by this Act, applies beginning with the 2026-2027 school
899+ year.
1032900 SECTION 7. (a) Not later than May 15, 2026, the comptroller
1033901 of public accounts shall adopt rules as provided by Sections
1034- 29.356(d) and 29.372, Education Code, as added by this Act.
902+ 29.356(c) and 29.372, Education Code, as added by this Act.
1035903 (b) The comptroller of public accounts may identify rules
1036904 required by the passage of Subchapter J, Chapter 29, Education
1037905 Code, as added by this Act, that must be adopted on an emergency
1038906 basis for purposes of the 2026-2027 school year and may use the
1039907 procedures established under Section 2001.034, Government Code,
1040908 for adopting those rules. The comptroller of public accounts is not
1041909 required to make the finding described by Section 2001.034(a),
1042910 Government Code, to adopt emergency rules under this subsection.
1043911 SECTION 8. (a) The constitutionality and other validity
1044912 under the state or federal constitution of all or any part of
1045913 Subchapter J, Chapter 29, Education Code, as added by this Act, may
1046914 be determined in an action for declaratory judgment under Chapter
1047915 37, Civil Practice and Remedies Code, in a district court in the
1048916 county in which the violation is alleged to have occurred or where
1049917 the plaintiff resides or has its principal place of business.
1050918 (b) An order, however characterized, of a trial court
1051919 granting or denying a temporary or otherwise interlocutory
1052920 injunction or a permanent injunction on the grounds of the
1053921 constitutionality or unconstitutionality, or other validity or
1054922 invalidity, under the state or federal constitution of all or any
1055923 part of Subchapter J, Chapter 29, Education Code, as added by this
1056924 Act, may be reviewed only by direct appeal to the Texas Supreme
1057925 Court filed not later than the 15th business day after the date on
1058926 which the order was entered. The Texas Supreme Court shall give
1059927 precedence to appeals under this section over other matters.
1060928 (c) The direct appeal is an accelerated appeal.
1061929 (d) This section exercises the authority granted by Section
1062930 3-b, Article V, Texas Constitution.
1063931 (e) The filing of a direct appeal under this section will
1064932 automatically stay any temporary or otherwise interlocutory
1065933 injunction or permanent injunction granted in accordance with this
1066934 section pending final determination by the Texas Supreme Court,
1067935 unless the supreme court makes specific findings that the applicant
1068936 seeking such injunctive relief has pleaded and proved that:
1069937 (1) the applicant has a probable right to the relief it
1070938 seeks on final hearing;
1071939 (2) the applicant will suffer a probable injury that
1072940 is imminent and irreparable, and that the applicant has no other
1073941 adequate legal remedy; and
1074942 (3) maintaining the injunction is in the public
1075943 interest.
1076944 (f) An appeal under this section, including an
1077945 interlocutory, accelerated, or direct appeal, is governed, as
1078946 applicable, by the Texas Rules of Appellate Procedure, including
1079947 Rules 25.1(d)(6), 28.1, 32.1, 37.3(a)(1), 38.6(a) and (b), 40.1(b),
1080948 and 49.4.
1081949 (g) This section does not authorize an award of attorney's
1082950 fees against this state, and Section 37.009, Civil Practice and
1083951 Remedies Code, does not apply to an action filed under this section.
1084952 SECTION 9. It is the intent of the legislature that every
1085953 provision, section, subsection, sentence, clause, phrase, or word
1086954 in this Act, and every application of the provisions in this Act to
1087955 each person or entity, is severable from each other. If any
1088956 application of any provision in this Act to any person, group of
1089957 persons, or circumstances is found by a court to be invalid for any
1090- reason:
1091- (1) the remaining applications of that provision to
1092- all other persons and circumstances shall be severed and may not be
1093- affected; and
1094- (2) the court must allow continued operation of the
1095- program without regard for the severed provision rather than
1096- restrict program operation or participation.
958+ reason, the remaining applications of that provision to all other
959+ persons and circumstances shall be severed and may not be affected.
1097960 SECTION 10. This Act takes effect immediately if it
1098961 receives a vote of two-thirds of all the members elected to each
1099962 house, as provided by Section 39, Article III, Texas Constitution.
1100963 If this Act does not receive the vote necessary for immediate
1101964 effect, this Act takes effect September 1, 2025.