By: Taylor of GalvestonBettencourt, Campbell S.B. No. 4

Bettencourt, Campbell

A BILL TO BE ENTITLED

AN ACT

relating to school choice programs for certain students eligible to attend public school.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. SCHOOL CHOICE PROGRAM: EDUCATION TUITION GRANTS

SECTION 1.01. Chapter 42, Education Code, is amended by adding Subchapter J to read as follows:

SUBCHAPTER J. EDUCATION TUITION GRANTS

Sec. 42.501. EDUCATION TUITION GRANT PROGRAM. (a) In this section, "eligible student" means a school-age child who resides in the state and who:

(1) is entering kindergarten or first grade;

(2) is in foster care;

(3) is in institutional care; or

(4) has a household income not greater than 150 percent of the income guidelines necessary to qualify for the national free or reduced-price lunch program established under 42 U.S.C. Section 1751 et seq.

(b) From funds appropriated for that purpose, not to exceed $50 million each state fiscal year, the commissioner by rule shall establish an education tuition grant program under which grants are awarded to the parents or legal guardians of eligible students to be used to pay the costs of attending a private school.

(c) A parent or legal guardian of an eligible student may receive a grant from the state to reimburse the parent or guardian for the tuition paid for the enrollment of the eligible student at a private school in an amount that is the lesser of:

(1) the tuition paid; or

(2) 75 percent of the state average maintenance and operations expenditures per student.

(d) Money from the available school fund and federal funds may not be used for a grant under this section.

(e) A private school voluntarily selected by a parent for the parent's child to attend, with or without governmental assistance, may not be required to comply with any state law or rule governing the school's educational program that was not in effect on January 1, 2015.

(f) The commissioner shall adopt rules as necessary to administer this section.

ARTICLE 2. SCHOOL CHOICE PROGRAM: TAX CREDITS FOR CERTAIN

CONTRIBUTIONS

SECTION 2.01. Chapter 171, Tax Code, is amended by adding Subchapter K to read as follows:

SUBCHAPTER K. TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN

EDUCATIONAL ASSISTANCE ORGANIZATIONS

Sec 171.551. Definitions. In this subchapter:

(1) "Agency" means the Texas Education Agency.

(2) "Commissioner" means the commissioner of education.

(3) "Educational assistance organization" means an organization with which the agency contracts to award scholarships to eligible students.

Sec. 171.552. ELIGIBILITY REQUIREMENTS FOR EDUCATIONAL ASSISTANCE ORGANIZATION. (a) The commissioner by rule shall prescribe requirements that an organization must meet to be eligible to enter into a contract with the agency to award scholarships under this subchapter as an educational assistance organization.

(b) The agency shall enter into a contract with an organization that applies to the agency and that meets the requirements under Subsection (a).

(c) An organization that enters into a contract with the agency under this section is an educational assistance organization and may award scholarships under this subchapter as provided by the contract.

Sec. 171.553. NONPUBLIC SCHOOL REQUIREMENTS. The commissioner by rule shall prescribe requirements that a nonpublic school must meet for students enrolled in the school to be eligible to receive scholarships from educational assistance organizations under this subchapter.

Sec. 171.554. ELIGIBILITY OF STUDENTS. (a) To be eligible to apply for assistance from an educational assistance organization under this subchapter, a student must be a student in a public or nonpublic elementary or secondary school located in this state and must:

(1) be entering kindergarten or first grade;

(2) be in foster care;

(3) be in institutional care; or

(4) have a household income not greater than 150 percent of the income guidelines necessary to qualify for the national free or reduced-price lunch program established under 42 U.S.C. Section 1751 et seq.

(b) The commissioner shall adopt rules necessary to implement this section.

Sec. 171.555. CREDIT FOR CONTRIBUTIONS. A taxable entity may apply for a credit under this subchapter only for money contributed to an educational assistance organization and designated for scholarships for eligible students.

Sec. 171.556. LIMIT ON AMOUNT OF SCHOLARSHIP. The maximum scholarship amount an educational assistance organization may award to a student under this subchapter may not exceed 75 percent of the amount of funding equal to the statewide average amount to which a school district would be entitled under the Foundation School Program under Chapter 42, Education Code, for a student in average daily attendance.

Sec. 171.557. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a) Subject to Subsections (b) and (c), the amount of a taxable entity's annual credit is equal to the lesser of the amount of the qualifying contributions made by the taxable entity or the taxable entity's tax liability under this chapter after all other applicable credits.

(b) The total amount of tax credits that may be awarded under this subchapter and Chapter 230, Insurance Code, may not exceed $50 million per state fiscal year.

(c) The comptroller by rule shall prescribe procedures by which the comptroller may allocate credits under this subchapter.

Sec. 171.558. RULES; PROCEDURES. The comptroller shall adopt rules and procedures to implement, administer, and enforce this subchapter.

SECTION 2.02. Subtitle B, Title 3, Insurance Code, is amended by adding Chapter 230 to read as follows:

CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CERTAIN

CONTRIBUTIONS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 230.001. DEFINITIONS. In this chapter:

(1) "Educational assistance organization" has the meaning assigned by Section 171.551, Tax Code.

(2) "State premium tax liability" means any liability incurred by an entity under Chapters 221 through 226.

SUBCHAPTER B. CREDIT

Sec. 230.051. CREDIT. An entity may apply for a credit against the entity's state premium tax liability in the amount and under the conditions and limitations provided by this chapter.

Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a) Subject to Subsection (b), the amount of an entity's credit is equal to the lesser of the amount of the qualifying contributions made to an educational assistance organization or the entity's state premium tax liability after all other applicable credits if the contributions and the organizations that received the contributions meet the requirements prescribed by Subchapter K, Chapter 171, Tax Code.

(b) The total amount of tax credits that may be awarded under this chapter and Subchapter K, Chapter 171, Tax Code, may not exceed $50 million per state fiscal year.

Sec. 230.053. RULES; PROCEDURES. The comptroller shall adopt rules and procedures to implement, administer, and enforce this chapter.

ARTICLE 3. EFFECTIVE DATE

SECTION 3.01. This Act takes effect January 1, 2016.