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A BILL TO BE ENTITLED
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AN ACT
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relating to school choice programs for certain students eligible to |
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attend public school. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. SCHOOL CHOICE PROGRAM: EDUCATION TUITION GRANTS |
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SECTION 1.01. Chapter 42, Education Code, is amended by |
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adding Subchapter J to read as follows: |
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SUBCHAPTER J. EDUCATION TUITION GRANTS |
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Sec. 42.501. EDUCATION TUITION GRANT PROGRAM. (a) In this |
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section, "eligible student" means a school-age child who resides in |
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the state and who: |
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(1) is entering kindergarten or first grade; |
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(2) is in foster care; |
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(3) is in institutional care; or |
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(4) has a household income not greater than 150 |
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percent of the income guidelines necessary to qualify for the |
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national free or reduced-price lunch program established under 42 |
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U.S.C. Section 1751 et seq. |
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(b) From funds appropriated for that purpose, not to exceed |
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$50 million each state fiscal year, the commissioner by rule shall |
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establish an education tuition grant program under which grants are |
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awarded to the parents or legal guardians of eligible students to be |
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used to pay the costs of attending a private school. |
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(c) A parent or legal guardian of an eligible student may |
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receive a grant from the state to reimburse the parent or guardian |
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for the tuition paid for the enrollment of the eligible student at a |
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private school in an amount that is the lesser of: |
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(1) the tuition paid; or |
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(2) 75 percent of the state average maintenance and |
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operations expenditures per student. |
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(d) Money from the available school fund and federal funds |
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may not be used for a grant under this section. |
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(e) A private school voluntarily selected by a parent for |
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the parent's child to attend, with or without governmental |
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assistance, may not be required to comply with any state law or rule |
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governing the school's educational program that was not in effect |
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on January 1, 2015. |
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(f) The commissioner shall adopt rules as necessary to |
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administer this section. |
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ARTICLE 2. SCHOOL CHOICE PROGRAM: TAX CREDITS FOR CERTAIN |
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CONTRIBUTIONS |
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SECTION 2.01. Chapter 171, Tax Code, is amended by adding |
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Subchapter K to read as follows: |
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SUBCHAPTER K. TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN |
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EDUCATIONAL ASSISTANCE ORGANIZATIONS |
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Sec 171.551. Definitions. In this subchapter: |
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(1) "Agency" means the Texas Education Agency. |
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(2) "Commissioner" means the commissioner of |
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education. |
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(3) "Educational assistance organization" means an |
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organization with which the agency contracts to award scholarships |
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to eligible students. |
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Sec. 171.552. ELIGIBILITY REQUIREMENTS FOR EDUCATIONAL |
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ASSISTANCE ORGANIZATION. (a) The commissioner by rule shall |
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prescribe requirements that an organization must meet to be |
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eligible to enter into a contract with the agency to award |
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scholarships under this subchapter as an educational assistance |
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organization. |
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(b) The agency shall enter into a contract with an |
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organization that applies to the agency and that meets the |
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requirements under Subsection (a). |
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(c) An organization that enters into a contract with the |
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agency under this section is an educational assistance organization |
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and may award scholarships under this subchapter as provided by the |
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contract. |
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Sec. 171.553. NONPUBLIC SCHOOL REQUIREMENTS. The |
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commissioner by rule shall prescribe requirements that a nonpublic |
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school must meet for students enrolled in the school to be eligible |
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to receive scholarships from educational assistance organizations |
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under this subchapter. |
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Sec. 171.554. ELIGIBILITY OF STUDENTS. (a) To be eligible |
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to apply for assistance from an educational assistance organization |
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under this subchapter, a student must be a student in a public or |
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nonpublic elementary or secondary school located in this state and |
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must: |
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(1) be entering kindergarten or first grade; |
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(2) be in foster care; |
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(3) be in institutional care; or |
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(4) have a household income not greater than 150 |
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percent of the income guidelines necessary to qualify for the |
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national free or reduced-price lunch program established under 42 |
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U.S.C. Section 1751 et seq. |
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(b) The commissioner shall adopt rules necessary to |
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implement this section. |
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Sec. 171.555. CREDIT FOR CONTRIBUTIONS. A taxable entity |
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may apply for a credit under this subchapter only for money |
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contributed to an educational assistance organization and |
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designated for scholarships for eligible students. |
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Sec. 171.556. LIMIT ON AMOUNT OF SCHOLARSHIP. The maximum |
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scholarship amount an educational assistance organization may |
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award to a student under this subchapter may not exceed 75 percent |
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of the amount of funding equal to the statewide average amount to |
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which a school district would be entitled under the Foundation |
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School Program under Chapter 42, Education Code, for a student in |
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average daily attendance. |
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Sec. 171.557. AMOUNTS; LIMITATION ON TOTAL CREDITS. |
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(a) Subject to Subsections (b) and (c), the amount of a taxable |
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entity's annual credit is equal to the lesser of the amount of the |
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qualifying contributions made by the taxable entity or the taxable |
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entity's tax liability under this chapter after all other |
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applicable credits. |
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(b) The total amount of tax credits that may be awarded |
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under this subchapter and Chapter 230, Insurance Code, may not |
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exceed $50 million per state fiscal year. |
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(c) The comptroller by rule shall prescribe procedures by |
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which the comptroller may allocate credits under this subchapter. |
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Sec. 171.558. RULES; PROCEDURES. The comptroller shall |
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adopt rules and procedures to implement, administer, and enforce |
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this subchapter. |
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SECTION 2.02. Subtitle B, Title 3, Insurance Code, is |
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amended by adding Chapter 230 to read as follows: |
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CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CERTAIN |
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CONTRIBUTIONS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 230.001. DEFINITIONS. In this chapter: |
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(1) "Educational assistance organization" has the |
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meaning assigned by Section 171.551, Tax Code. |
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(2) "State premium tax liability" means any liability |
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incurred by an entity under Chapters 221 through 226. |
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SUBCHAPTER B. CREDIT |
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Sec. 230.051. CREDIT. An entity may apply for a credit |
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against the entity's state premium tax liability in the amount and |
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under the conditions and limitations provided by this chapter. |
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Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. |
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(a) Subject to Subsection (b), the amount of an entity's credit is |
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equal to the lesser of the amount of the qualifying contributions |
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made to an educational assistance organization or the entity's |
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state premium tax liability after all other applicable credits if |
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the contributions and the organizations that received the |
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contributions meet the requirements prescribed by Subchapter K, |
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Chapter 171, Tax Code. |
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(b) The total amount of tax credits that may be awarded |
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under this chapter and Subchapter K, Chapter 171, Tax Code, may not |
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exceed $50 million per state fiscal year. |
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Sec. 230.053. RULES; PROCEDURES. The comptroller shall |
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adopt rules and procedures to implement, administer, and enforce |
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this chapter. |
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ARTICLE 3. EFFECTIVE DATE |
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SECTION 3.01. This Act takes effect January 1, 2016. |