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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of an education savings account |
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program and a tax credit scholarship and educational expense |
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assistance program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. EDUCATION SAVINGS ACCOUNT PROGRAM |
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SECTION 1.01. Chapter 29, Education Code, is amended by |
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adding Subchapter J to read as follows: |
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SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM |
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Sec. 29.351. DEFINITIONS. In this subchapter: |
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(1) "Account" means an education savings account |
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established under the program. |
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(2) "Child with a disability" means a child who is: |
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(A) eligible to participate in a school |
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district's special education program under Section 29.003; or |
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(B) covered by Section 504, Rehabilitation Act of |
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1973 (29 U.S.C. Section 794). |
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(3) "Curriculum" means a complete course of study for |
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a particular content area or grade level. |
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(4) "Financial institution" means a bank, credit |
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union, savings bank, or savings and loan association organized |
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under the laws of this state, the laws of another state, or federal |
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law that has its main office or a branch office in this state. The |
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term does not include any institution the deposits of which are not |
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insured by the Federal Deposit Insurance Corporation or the |
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National Credit Union Administration. |
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(5) "Parent" means a resident of this state who is a |
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natural or adoptive parent, managing or possessory conservator, |
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legal guardian, custodian, or other person with legal authority to |
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act on behalf of a child. |
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(6) "Postsecondary educational institution" means: |
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(A) an institution of higher education or a |
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private or independent institution of higher education as defined |
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by Section 61.003; or |
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(B) a career school or college as defined by |
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Section 132.001. |
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(7) "Program" means the education savings account |
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program established under this subchapter. |
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(8) "Program participant" means a child and a parent |
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of a child enrolled in the program. |
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Sec. 29.352. PURPOSES. The purposes of the education |
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savings account program are to: |
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(1) improve public schools and overall academic |
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performance; |
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(2) promote efficiency; |
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(3) promote and preserve the liberties and rights of |
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the people; and |
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(4) increase parental options. |
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Sec. 29.353. ESTABLISHMENT OF PROGRAM. (a) The |
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comptroller shall establish and administer an education savings |
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account program to provide funding for certain education-related |
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expenses of eligible children. |
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(b) The comptroller, with cooperation from the agency, |
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shall ensure that information about the program is readily |
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available to the public through various sources, including the |
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agency's Internet website. The comptroller shall make information |
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about the program available to parents of a child with a disability |
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or a child who is educationally disadvantaged through the |
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comptroller's Internet website. |
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Sec. 29.354. ELIGIBLE CHILD. (a) A child is eligible to |
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participate in the program if the child is eligible to attend a |
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public school under Section 25.001 and: |
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(1) was born on or after September 1, 2012; or |
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(2) attended a public school during the entire |
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preceding academic year. |
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(b) A child who establishes eligibility under this section |
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may participate in the program until the earliest of the following |
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dates: |
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(1) the date that is three months after the date on |
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which the child graduates from high school; |
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(2) the date on which the child is no longer eligible |
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to attend a public school under Section 25.001; |
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(3) the date on which the child enrolls in a public |
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school, including an open-enrollment charter school; or |
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(4) the date on which the child is declared ineligible |
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for the program by the comptroller under this subchapter. |
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(c) Notwithstanding Subsection (b), the comptroller shall |
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establish guidelines for, in the least disruptive manner possible: |
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(1) a child participating in the program to cease |
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participation and enroll in a public school, including an |
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open-enrollment charter school; and |
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(2) a child who previously participated in the program |
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and subsequently enrolled in a public school, including an |
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open-enrollment charter school, to resume participation in the |
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program. |
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Sec. 29.355. ENROLLMENT IN PROGRAM. (a) A parent of an |
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eligible child may enroll the child in the program for the following |
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school year. |
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(b) The comptroller shall by rule create an enrollment form |
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for the program and make the enrollment form readily available to |
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interested parents through various sources, including the |
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comptroller's Internet website. |
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(c) The comptroller shall provide to each parent who submits |
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an enrollment form a publication that describes the operation of |
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the program, including: |
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(1) expenses allowed under the program under Section |
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29.357; |
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(2) expense reporting requirements; and |
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(3) a description of the responsibilities of program |
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participants and the duties of the comptroller under this |
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subchapter. |
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Sec. 29.356. PARTICIPATION IN PROGRAM. (a) To receive |
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funding under the program, a parent of an eligible child must agree |
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to: |
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(1) spend funds received through the program only for |
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expenses allowed under Section 29.357; |
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(2) notify the comptroller if the child enrolls in a |
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public school, including an open-enrollment charter school, not |
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later than the 30th day after the date of enrollment; and |
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(3) inform the comptroller if the child graduates from |
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high school. |
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(b) The parent of a child participating in the program is |
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the trustee of the child's account. |
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(c) The comptroller shall provide annually to each program |
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participant the publication provided under Section 29.355(c). |
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Sec. 29.357. APPROVED EDUCATION-RELATED EXPENSES. (a) |
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Funds received under the program may be used only for the following |
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expenses incurred by a program participant: |
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(1) tuition and fees: |
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(A) at a private school accredited by an |
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organization that is recognized by the Texas Private School |
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Accreditation Commission; |
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(B) at a postsecondary educational institution; |
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or |
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(C) for an online educational course or program; |
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(2) the purchase of textbooks or other instructional |
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materials; |
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(3) the purchase of a curriculum; |
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(4) fees for classes or other educational services |
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provided by a public school, if the classes or services do not |
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qualify the child to be included in the school's average daily |
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attendance; |
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(5) fees for services provided by a private tutor or |
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teaching service; |
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(6) for a child with a disability, fees for |
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educational therapies or services provided by a practitioner or |
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provider; |
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(7) costs of computer hardware and software and other |
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technological devices, not to exceed in any year 10 percent of the |
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total amount paid to the program participant's account that year; |
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(8) fees for a nationally norm-referenced achievement |
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test or examination, an assessment instrument adopted by the agency |
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under Section 39.023, an advanced placement test or similar |
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examination, or any examination related to college or university |
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admission; and |
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(9) fees for the management of the participant's |
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account charged by a financial institution. |
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(b) Expenses allowed under Subsection (a) do not include |
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expenses for: |
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(1) consumable supplies, including paper, pens, |
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pencils, folders, and notebooks; |
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(2) food; or |
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(3) before-school or after-school child care and child |
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care during school holidays and vacations. |
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(c) An education service provider or vendor of educational |
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products must provide a program participant with a receipt for each |
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expense allowed under Subsection (a) charged by the provider or |
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vendor to the participant. |
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(d) The content or religious nature of a product or service |
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may not be considered in determining whether a payment for the |
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product or service is an expense allowed under Subsection (a). |
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(e) A finding that a program participant used funds |
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distributed under the program to pay for an expense not allowed |
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under Subsection (a) does not affect the validity of any payment |
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made by the participant for an expense that is allowed under that |
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subsection. |
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Sec. 29.358. AMOUNT OF PAYMENT; FINANCING. (a) A parent of |
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an eligible child shall receive each year that the child |
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participates in the program a payment from the state to the child's |
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account in an amount that is equal to: |
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(1) if the child is a member of a household with a |
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total annual income that exceeds 200 percent of the income |
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guidelines necessary to qualify for the national free or |
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reduced-price lunch program established under 42 U.S.C. Section |
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1751 et seq., 60 percent of the state average maintenance and |
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operations expenditures per student in average daily attendance for |
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the preceding fiscal year; |
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(2) if the child is a member of a household with a |
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total annual income that is at or below 200 percent of the income |
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guidelines necessary to qualify for the national free or |
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reduced-price lunch program established under 42 U.S.C. Section |
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1751 et seq., 75 percent of the state average maintenance and |
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operations expenditures per student in average daily attendance for |
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the preceding fiscal year; or |
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(3) regardless of household income level, if the child |
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is a child with a disability, 90 percent of the state average |
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maintenance and operations expenditures per student in average |
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daily attendance for the preceding fiscal year. |
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(b) In addition to any funding the district receives under |
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Chapter 42, for each child participating in the program, the school |
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district the child would otherwise attend is entitled to receive |
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for the first year in which the child participates in the program an |
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amount equal to 50 percent of the difference between: |
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(1) the state average maintenance and operations |
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expenditures per student in average daily attendance for the |
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preceding fiscal year; and |
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(2) the amount the child's parent receives under |
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Subsection (a) for the year. |
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(c) Any funds remaining in a child's account at the end of a |
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fiscal year are carried forward to the next fiscal year unless |
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another provision of this subchapter mandates the closure of the |
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account. |
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(d) The parent of a child participating in the program may |
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make payments for the expenses of educational programs, services, |
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and products not covered by funds in the child's account. |
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(e) A payment under Subsection (a) may not be financed using |
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federal funds or money appropriated from the available school fund. |
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Sec. 29.359. ADMINISTRATION OF ACCOUNTS. (a) The |
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comptroller may contract with one or more financial institutions to |
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establish and manage an account for each child participating in the |
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program. A program participant must be able to access the |
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participant's account by using a debit card or online or electronic |
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transfer payment service. |
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(b) The comptroller shall make quarterly payments to each |
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program participant's account in equal amounts on or before the |
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15th day of August, November, February, and May. |
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(c) The comptroller may deduct an amount from each quarterly |
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payment to a program participant's account to cover the |
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comptroller's cost of administering the program. The amount |
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deducted may not exceed five percent of the payment. |
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(d) Not later than 30 days after the end of each fiscal year, |
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the comptroller shall reconcile payments made to and from all |
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accounts under the program. |
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(e) On the date on which a child who participated in the |
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program is no longer eligible to participate in the program under |
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Section 29.354(b), the child's account is closed and any remaining |
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funds are returned to the state for deposit in the foundation school |
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fund. |
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(f) The comptroller may contract with a private entity to |
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administer all or any part of the program. |
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Sec. 29.360. RANDOM AUDITING OF ACCOUNTS. (a) The |
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comptroller shall contract with a private entity to randomly audit |
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accounts as necessary to ensure compliance with applicable law and |
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the requirements of the program. |
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(b) In auditing an account, the comptroller or private |
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entity may require that a program participant provide further |
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information and documentation regarding any payment from the |
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participant's account. |
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(c) The private entity shall report to the comptroller any |
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violation of this subchapter or other relevant law found by the |
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entity during an audit conducted under this section. |
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Sec. 29.361. SUSPENSION OF ACCOUNT. (a) The comptroller |
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shall suspend the account of a program participant who fails to |
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comply with applicable law or a requirement of the program, |
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including a requirement under Section 29.356(a), or who |
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substantially misuses funds received under the program. |
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(b) On suspension of an account under Subsection (a), the |
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comptroller shall notify the program participant in writing that |
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the account has been suspended and that no further payments may be |
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made from the account. The notification must specify the grounds |
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for the suspension and state that the participant has 10 business |
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days to respond and take any corrective action required by the |
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comptroller. |
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(c) On the expiration of the 10-day period under Subsection |
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(b), the comptroller shall: |
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(1) order permanent closure of the suspended account |
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and declare the program participant ineligible for the program; |
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(2) order temporary reinstatement of the account, |
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conditioned on the performance of a specified action by the |
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participant; or |
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(3) order full reinstatement of the account. |
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(d) The comptroller may recover funds distributed under the |
|
program that were used for expenses not allowed under Section |
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29.357(a) from the program participant or the entity that received |
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the funds if the participant's account is suspended or closed under |
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this section. |
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Sec. 29.362. TUITION AND FEES; REFUND PROHIBITED. (a) An |
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education service provider may not charge a child participating in |
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the program an amount greater than the standard amount charged for |
|
that service by the provider. |
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(b) An education service provider or a vendor of educational |
|
products receiving funds distributed under the program may not in |
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any manner rebate, refund, or credit to or share with a program |
|
participant, or any person on behalf of a participant, any program |
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funds paid or owed by the participant to the provider or vendor. |
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Sec. 29.363. REFERRAL TO ATTORNEY GENERAL. (a) If the |
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comptroller obtains evidence of fraudulent use of an account, the |
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comptroller may refer the case to the attorney general for |
|
investigation. |
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(b) With the consent of the appropriate local county or |
|
district attorney, the attorney general has concurrent |
|
jurisdiction with the consenting local prosecutor to prosecute an |
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offense referred to the attorney general under Subsection (a). |
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Sec. 29.364. PROVIDER ACCOUNTABILITY. (a) A private |
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school must be accredited by an organization that is recognized by |
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the Texas Private School Accreditation Commission to receive funds |
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distributed under the program. |
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(b) A private tutor or teaching service and a practitioner |
|
or provider who provides educational therapies or services for a |
|
child with a disability must be licensed or accredited by a regional |
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or national accrediting organization to receive funds distributed |
|
under the program. |
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Sec. 29.365. PROGRAM PARTICIPANT, PROVIDER, AND VENDOR |
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AUTONOMY. (a) An education service provider or vendor of |
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educational products that receives funds distributed under the |
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program is not an agent of the state or federal government. |
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(b) Except as provided by this subchapter, the comptroller, |
|
the agency, the State Board of Education, any other state agency, or |
|
any school district may not: |
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(1) regulate the educational program of an education |
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service provider or vendor of educational products that receives |
|
funds distributed under the program; or |
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(2) exercise control or supervision over a program |
|
participant or an education service provider or vendor of |
|
educational products that receives funds distributed under the |
|
program. |
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(c) The program does not expand the regulatory authority of |
|
the state or any school district to impose any additional |
|
regulation on an education service provider or vendor of |
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educational products except those reasonably necessary to enforce |
|
the program as provided by this subchapter. |
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(d) A private school may not be required to modify the |
|
school's creed, practices, admissions policies, curriculum, |
|
performance standards, or assessments to receive funds distributed |
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under the program. |
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(e) A private school voluntarily selected by a parent for |
|
the parent's child to attend or a parent who homeschools the |
|
parent's child, with or without governmental assistance, may not be |
|
required to comply with any state law or rule governing the |
|
applicable educational program that was not in effect on January 1, |
|
2017. |
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(f) In any proceeding challenging a rule adopted by a state |
|
agency or officer under this subchapter, the agency or officer has |
|
the burden of proof to establish that the rule: |
|
(1) is necessary to implement or enforce the program |
|
as provided by this subchapter; and |
|
(2) does not impose an undue burden on a program |
|
participant or an education service provider or vendor of |
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educational products that receives or seeks to receive funds |
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distributed under the program. |
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Sec. 29.366. STUDENT RECORDS AND INFORMATION. (a) On |
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request by the parent of a child participating in the program, the |
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school district or open-enrollment charter school that the child |
|
would otherwise attend shall provide a copy of the child's school |
|
records possessed by the district or school, if any, to the child's |
|
parent or, if applicable, the private school the child attends. |
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(b) The agency shall provide to the comptroller any |
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information available to the agency requested by the comptroller |
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regarding a child who participates or seeks to participate in the |
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program. |
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Sec. 29.367. REPORTING NUMBER OF PARTICIPANTS. (a) Not |
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later than October 1 of each year, the comptroller shall notify the |
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commissioner and the Legislative Budget Board of the number of |
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eligible children likely to participate in the program, |
|
disaggregated by the school district or open-enrollment charter |
|
school the eligible children would otherwise attend. |
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(b) Not later than March 1 of each year, the comptroller |
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shall provide final information to the commissioner and the |
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Legislative Budget Board regarding the number of children |
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participating in the program, disaggregated in the same manner as |
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the initial information under Subsection (a). |
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Sec. 29.368. ANNUAL SURVEY. The comptroller may conduct an |
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annual parental satisfaction survey that asks each parent of a |
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child participating in the program to express: |
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(1) the parent's overall level of satisfaction with |
|
the program; and |
|
(2) the parent's opinion on specified topics and |
|
issues relevant to the effectiveness of the program. |
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Sec. 29.369. RULES. The comptroller shall: |
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(1) adopt rules as necessary to implement this |
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subchapter, including: |
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(A) rules regarding expense reporting |
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requirements for program participants; and |
|
(B) rules for implementing this subchapter in a |
|
manner that ensures compliance with federal law regarding |
|
confidentiality of student educational information, including the |
|
Family Educational Rights and Privacy Act of 1974 (20 U.S.C. |
|
Section 1232g); and |
|
(2) coordinate as necessary to: |
|
(A) calculate annually the savings to the state |
|
from the implementation of the program; and |
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(B) prevent fraud in financial transactions |
|
under the program, including by adopting measures to permit |
|
anonymous fraud reporting by telephone hotline or online |
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communication. |
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Sec. 29.370. GIFTS, GRANTS, AND DONATIONS. The comptroller |
|
may solicit and accept gifts, grants, and donations from any public |
|
or private source for any expenses related to the administration of |
|
the program, including the initial implementation of the program. |
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SECTION 1.02. Section 42.253, Education Code, is amended by |
|
adding Subsection (b-1) to read as follows: |
|
(b-1) Notwithstanding Subsection (b), the commissioner |
|
shall adjust enrollment estimates and entitlement for each school |
|
district for each school year based on information provided by the |
|
comptroller under Section 29.367. This subsection expires |
|
September 1, 2021. |
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SECTION 1.03. Notwithstanding Section 29.359(b), Education |
|
Code, as added by this article, not later than September 15, 2018, |
|
the comptroller shall make the initial payment to each program |
|
participant's education savings account as provided by Subchapter |
|
J, Chapter 29, Education Code, as added by this article. |
|
SECTION 1.04. This article applies beginning with the |
|
2018-2019 school year. |
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ARTICLE 2. TAX CREDIT SCHOLARSHIP AND EDUCATIONAL EXPENSE |
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ASSISTANCE PROGRAM |
|
SECTION 2.01. Subtitle B, Title 3, Insurance Code, is |
|
amended by adding Chapter 230 to read as follows: |
|
CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO |
|
CERTIFIED EDUCATIONAL ASSISTANCE ORGANIZATION |
|
SUBCHAPTER A. GENERAL PROVISIONS |
|
Sec. 230.001. DEFINITIONS. In this chapter: |
|
(1) "Educational assistance organization" means an |
|
organization that: |
|
(A) has the ability according to the |
|
organization's charter to award scholarships to or pay educational |
|
expenses for eligible students in: |
|
(i) public elementary or secondary schools |
|
located in this state; or |
|
(ii) nonpublic elementary or secondary |
|
schools located in this state: |
|
(a) that meet the requirements of |
|
Section 230.052; |
|
(b) at which a student may fulfill |
|
this state's compulsory attendance requirements; and |
|
(c) that are not in violation of the |
|
federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.); |
|
and |
|
(B) uses part of its annual revenue for the |
|
purpose provided by Paragraph (A). |
|
(2) "State premium tax liability" means any liability |
|
incurred by an entity under Chapter 221, 222, or 224. |
|
Sec. 230.002. RULES; PROCEDURES. (a) The comptroller |
|
shall adopt rules and procedures to implement, administer, and |
|
enforce this chapter. |
|
(b) A rule adopted under Subsection (a) is binding on an |
|
organization that applies for certification as an educational |
|
assistance organization, an entity that applies for a credit, and a |
|
state or local governmental entity, including a political |
|
subdivision, as necessary to implement, administer, and enforce |
|
this chapter. |
|
SUBCHAPTER B. SCHOLARSHIP AND EDUCATIONAL EXPENSE ASSISTANCE |
|
PROGRAM |
|
Sec. 230.051. SELECTION OF CERTIFIED EDUCATIONAL |
|
ASSISTANCE ORGANIZATION. (a) An organization may apply to the |
|
comptroller for certification as a certified educational |
|
assistance organization during an application period provided by |
|
the comptroller. |
|
(b) To be eligible for certification, the organization: |
|
(1) must: |
|
(A) be exempt from federal tax under Section |
|
501(a) of the Internal Revenue Code of 1986 by being listed as an |
|
exempt organization in Section 501(c)(3) of that code; |
|
(B) be in good standing with the state; |
|
(C) be located in the state; |
|
(D) allocate at least 90 percent of its annual |
|
revenue from contributions that are designated for scholarships or |
|
educational expense assistance for eligible students under this |
|
chapter for student scholarships and assistance for educational |
|
expenses, including tuition, transportation, textbooks, and other |
|
supplies, and for other related educational expense assistance as |
|
described by this section; |
|
(E) award scholarships and assistance for |
|
qualifying educational expenses to eligible students who |
|
demonstrate the greatest financial and academic need; |
|
(F) agree to give each donor a receipt for money |
|
contributed to the organization that includes the name of the |
|
organization, the name of the donor, the amount of the |
|
contribution, the information required by Section 230.054(c), and |
|
any other information required by the comptroller; |
|
(G) demonstrate experience and technical |
|
expertise in: |
|
(i) accepting, processing, and tracking |
|
applications for scholarships or educational expense assistance; |
|
and |
|
(ii) awarding scholarships to students in |
|
primary or secondary schools; |
|
(H) agree to be independently audited on an |
|
annual basis and file the audit with the comptroller; and |
|
(I) disburse within two academic years of receipt |
|
contributions received from and designated by entities for |
|
scholarships or educational expense assistance under this chapter; |
|
and |
|
(2) may not: |
|
(A) award all scholarships under this chapter to |
|
students who attend a particular school or pay educational expenses |
|
incurred only at a particular school; |
|
(B) provide to a student a scholarship in an |
|
annual amount that exceeds the amount provided under Section |
|
230.055(a), (b), or (c), unless the money used to provide the |
|
portion of the scholarship in excess of that amount was contributed |
|
by a person other than an entity that notifies the organization |
|
under Section 230.054(c) that the entity may apply for a tax credit |
|
for the contribution; and |
|
(C) provide to a student educational expense |
|
assistance in excess of the amount provided under Section |
|
230.055(d) per academic year, unless the money used to provide the |
|
portion of the assistance in excess of that amount was contributed |
|
by a person other than an entity that notifies the organization |
|
under Section 230.054(c) that the entity may apply for a tax credit |
|
for the contribution, including assistance for: |
|
(i) facility fees; |
|
(ii) textbooks; |
|
(iii) school supplies; |
|
(iv) tutoring; |
|
(v) academic after-school programs; |
|
(vi) school or lab fees; and |
|
(vii) transportation expenses, including |
|
the cost to transfer from one public school to another. |
|
(c) The comptroller shall certify only one certified |
|
educational assistance organization at any time. The comptroller |
|
shall select the organization to certify as the certified |
|
educational assistance organization from among the organizations |
|
that apply under Subsection (a) and meet the requirements of |
|
Subsection (b). The comptroller has broad discretion in selecting |
|
the certified educational assistance organization. |
|
(d) The comptroller shall notify all organizations that |
|
apply under Subsection (a) of the comptroller's selection under |
|
Subsection (c). |
|
(e) The comptroller shall attempt to maintain one certified |
|
educational assistance organization at all times. The comptroller |
|
shall provide an application period under Subsection (a) as soon as |
|
practicable after the comptroller learns there is, or is likely to |
|
be, a vacancy for the certified educational assistance |
|
organization. |
|
(f) The comptroller's selection under Subsection (c) is |
|
final and is not appealable. |
|
Sec. 230.052. NONPUBLIC SCHOOL REQUIREMENTS. The certified |
|
educational assistance organization may not award scholarships to |
|
or pay educational expenses for eligible students enrolled in a |
|
nonpublic school unless the nonpublic school executes a notarized |
|
affidavit, with supporting documents, concerning the school's |
|
qualification for scholarships and educational expense assistance |
|
for eligible students who receive assistance from the certified |
|
educational assistance organization, including evidence of: |
|
(1) accreditation by the Texas Education Agency or by |
|
an organization recognized by the Texas Private School |
|
Accreditation Commission; |
|
(2) annual administration of a nationally |
|
norm-referenced assessment instrument or the appropriate |
|
assessment instrument required under Section 39.023, Education |
|
Code; |
|
(3) valid certificate of occupancy; and |
|
(4) policy statements regarding: |
|
(A) admissions; |
|
(B) curriculum; |
|
(C) safety; |
|
(D) food service inspection; and |
|
(E) student to teacher ratios. |
|
Sec. 230.053. ELIGIBILITY OF STUDENTS; NOTICE TO CERTAIN |
|
PARENTS; INCLUSION IN CALCULATION OF EQUALIZED WEALTH LEVEL. (a) |
|
To be eligible to apply for assistance from the certified |
|
educational assistance organization under this chapter: |
|
(1) a student: |
|
(A) must: |
|
(i) be in foster care; |
|
(ii) be in institutional care; |
|
(iii) have a parent who is on active duty in |
|
the military; or |
|
(iv) have a household income not greater |
|
than 200 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.; and |
|
(B) must: |
|
(i) have attended a public school during |
|
the entire preceding academic year; |
|
(ii) be starting school in the state for the |
|
first time; |
|
(iii) be the sibling of a student who is |
|
eligible; or |
|
(iv) if the student attends a nonpublic |
|
school, qualify as a student who is not counted toward a public |
|
school's average daily attendance during the year in which the |
|
student receives the scholarship or educational expense assistance |
|
to attend the school, except as provided by Subsection (g); or |
|
(2) the student must have previously qualified under |
|
Subdivision (1). |
|
(b) In addition to the students eligible under Subsection |
|
(a), a student is eligible to apply for assistance from the |
|
certified educational assistance organization under this chapter |
|
if: |
|
(1) the student is in kindergarten through grade 12 |
|
and eligible under Section 29.003, Education Code, to participate |
|
in a school district's special education program; and |
|
(2) an individualized education program has been |
|
developed for the student under Section 29.005, Education Code. |
|
(c) A school district shall provide written notice of the |
|
availability of assistance under this chapter to the parent of a |
|
student who is eligible to apply for assistance under Subsection |
|
(b). The notice must inform the parent that a qualifying school is |
|
not subject to laws regarding the provision of education services |
|
in the same manner as a public school, and a student with |
|
disabilities attending a qualifying school may not receive the |
|
services a student with disabilities attending a public school is |
|
entitled to receive under federal and state law. The notice must |
|
provide information regarding rights to which a student with |
|
disabilities is entitled under federal and state law if the student |
|
attends a public school, including: |
|
(1) rights provided under the Individuals with |
|
Disabilities Education Act (20 U.S.C. Section 1400 et seq.), |
|
including: |
|
(A) an individualized education program; |
|
(B) education services provided in the least |
|
restrictive environment; |
|
(C) instruction from certified teachers; |
|
(D) due process hearings to ensure proper and |
|
full implementation of an individualized education program; |
|
(E) transition and planning services; and |
|
(F) supplementary aids and services; |
|
(2) rights provided under Subchapter A, Chapter 29, |
|
Education Code; and |
|
(3) other rights provided under federal or state law. |
|
(d) A student who establishes eligibility under Subsection |
|
(b) may continue to receive assistance under this chapter until the |
|
earlier of the date the student graduates from high school or the |
|
student's 22nd birthday. |
|
(e) Notwithstanding any other provision of this section and |
|
except as provided by Section 230.055(c), a student who receives a |
|
payment to an education savings account under Section 29.358, |
|
Education Code, for a year is not eligible to receive for the same |
|
year a scholarship under this chapter. |
|
(f) The certified educational assistance organization shall |
|
award scholarships and educational expense assistance to eligible |
|
students who apply in accordance with this chapter. |
|
(g) A student who receives a scholarship under this chapter |
|
is included for the first year the student receives the scholarship |
|
in the weighted average daily attendance of the school district the |
|
student would otherwise attend for purposes of determining the |
|
district's equalized wealth level under Chapter 41, Education Code. |
|
Sec. 230.054. CREDIT FOR CONTRIBUTIONS. (a) An entity may |
|
apply for a credit under this chapter only for money contributed to |
|
the certified educational assistance organization and designated |
|
for scholarships or educational expense assistance for eligible |
|
students. |
|
(b) An entity may not apply for a credit under this chapter |
|
for a contribution made to the certified educational assistance |
|
organization if: |
|
(1) the entity requires that the contribution benefit |
|
a particular person or school; or |
|
(2) the contribution is designated to provide a |
|
scholarship or educational expense assistance for an entity |
|
employee or for a spouse or dependent of an entity employee. |
|
(c) An entity shall notify the certified educational |
|
assistance organization in writing when the entity makes a |
|
contribution if the entity may apply for a tax credit under this |
|
chapter for the contribution. An entity may not apply for a credit |
|
for the contribution unless the entity provides the notification at |
|
the time the contribution is made. The certified educational |
|
assistance organization shall indicate on the receipt provided |
|
under Section 230.051(b)(1)(F) that the entity made the |
|
notification under this subsection. |
|
Sec. 230.055. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL |
|
EXPENSE ASSISTANCE. (a) Except as provided by Subsections (b) and |
|
(c), the maximum scholarship amount the certified educational |
|
assistance organization may award to a student under this chapter |
|
using money contributed by an entity that notifies the organization |
|
under Section 230.054(c) that the entity may apply for a tax credit |
|
for the contribution may not exceed 75 percent of the state average |
|
maintenance and operations expenditures per student in average |
|
daily attendance for the preceding state fiscal year. |
|
(b) The maximum scholarship amount under Subsection (a) may |
|
not exceed 50 percent of the state average maintenance and |
|
operations amount described by Subsection (a) if the student |
|
receiving the scholarship has a household income greater than 175 |
|
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. This subsection does not apply to a |
|
student who is eligible for assistance under Section 230.053(b) or |
|
(d). |
|
(c) A student who receives a payment to an education savings |
|
account under Section 29.358, Education Code, for a year is |
|
eligible to receive for the same year a scholarship from the |
|
certified educational assistance organization only if the student |
|
is eligible for assistance under Section 230.053(a)(1)(A)(i), |
|
(ii), or (iii) or Section 230.053(b) or (d) or the student has a |
|
household income not greater than 175 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. The maximum scholarship amount the certified |
|
educational assistance organization may award to a student to whom |
|
this subsection applies using money contributed by an entity that |
|
notifies the organization under Section 230.054(c) that the entity |
|
may apply for a tax credit for the contribution may not exceed the |
|
sum of: |
|
(1) the difference between the amount of the payment |
|
under Section 29.358, Education Code, and the full tuition amount |
|
for the student's nonpublic school; and |
|
(2) a transportation allowance not to exceed $500. |
|
(d) The maximum educational expense assistance the |
|
certified educational assistance organization may award to a |
|
student under this chapter using money contributed by an entity |
|
that notifies the organization under Section 230.054(c) that the |
|
entity may apply for a tax credit for the contribution may not |
|
exceed $500 for the 2018 state fiscal year, increased by five |
|
percent each subsequent year. |
|
Sec. 230.056. REVOCATION. (a) The comptroller shall |
|
revoke the certification provided under Section 230.051 if the |
|
comptroller finds that the certified educational assistance |
|
organization: |
|
(1) is no longer eligible under Section 230.051; or |
|
(2) intentionally and substantially violates this |
|
chapter. |
|
(b) The comptroller has broad discretion in determining |
|
whether to revoke a certification under Subsection (a). |
|
(c) The comptroller shall notify the certified educational |
|
assistance organization in writing of the comptroller's decision to |
|
revoke the organization's certification. If the comptroller |
|
revokes the organization's certification, the comptroller shall |
|
include in the notice of revocation the reasons for the revocation. |
|
(d) If the comptroller revokes the certified educational |
|
assistance organization's certification under Subsection (a), the |
|
organization may request in writing a reconsideration of the |
|
revocation not later than the 10th day after the date of the notice |
|
under Subsection (c) or the revocation is final. |
|
(e) An organization that requests a reconsideration under |
|
Subsection (d) may submit to the comptroller not later than the 30th |
|
day after the date the request for reconsideration is submitted |
|
additional information and documents to support the organization's |
|
request for reconsideration. |
|
(f) The comptroller's reconsideration of a revocation under |
|
this section is not a contested case under Chapter 2001, Government |
|
Code. The comptroller's decision on a request for reconsideration |
|
of a revocation is final and is not appealable. |
|
(g) This section does not create a cause of action to |
|
contest a decision of the comptroller to revoke the certified |
|
educational assistance organization's certification under this |
|
chapter. |
|
(h) Revocation of a certification under this section does |
|
not affect the validity of a tax credit relating to a contribution |
|
made before the date of revocation. |
|
Sec. 230.057. REPORT OF NET SAVINGS TO PUBLIC EDUCATION. |
|
(a) In this section, "net savings" means any positive difference in |
|
a state fiscal year between: |
|
(1) the amount by which state spending on public |
|
education for that year is reduced as a result of students receiving |
|
scholarships and educational expense assistance from the certified |
|
educational assistance organization under this chapter; and |
|
(2) the amount by which state revenue derived from |
|
Chapters 221, 222, and 224 is reduced as a result of tax credits |
|
under this chapter. |
|
(b) Not later than December 31 of each even-numbered year, |
|
the comptroller shall determine the amount of net savings for the |
|
previous state fiscal biennium and make available to the public a |
|
report of that amount of savings. |
|
SUBCHAPTER C. CREDIT |
|
Sec. 230.101. 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. The |
|
comptroller shall award credits as provided by Section 230.103. |
|
Sec. 230.102. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a) |
|
Subject to Subsections (b) and (c), the amount of an entity's credit |
|
is equal to the lesser of the amount of the qualifying contributions |
|
made to the certified educational assistance organization or 50 |
|
percent of the entity's state premium tax liability. |
|
(b) For the 2018 state fiscal year, the total amount of tax |
|
credits that may be awarded under this chapter may not exceed $100 |
|
million. For each subsequent state fiscal year, the total amount of |
|
tax credits that may be awarded is an amount equal to 110 percent of |
|
the total amount of tax credits awarded in the previous state fiscal |
|
year. |
|
(c) The comptroller by rule shall prescribe procedures by |
|
which the comptroller may allocate credits under this chapter. The |
|
procedures must provide that credits are allocated on a first-come, |
|
first-served basis, based on the date the contribution was |
|
initially made. |
|
(d) The comptroller may require an entity to notify the |
|
comptroller of the amount the entity intends or expects to apply for |
|
under this chapter before the beginning of a state fiscal year or at |
|
any other time required by the comptroller. |
|
Sec. 230.103. APPLICATION FOR CREDIT. (a) An entity must |
|
apply for a credit under this chapter on or with the tax return for |
|
the taxable year during which the qualifying contributions were |
|
made and submit with the application each receipt issued under |
|
Section 230.051(b)(1)(F) that includes the information required by |
|
Section 230.054(c). |
|
(b) The comptroller shall adopt a form for the application |
|
for the credit. An entity must use this form in applying for the |
|
credit. |
|
(c) The comptroller may award a credit to an entity that |
|
applies for the credit under Subsection (a) if the entity is |
|
eligible for the credit and the credit is available under Section |
|
230.102(b). The comptroller has broad discretion in determining |
|
whether to grant or deny an application for a credit. |
|
(d) The comptroller shall notify an entity in writing of the |
|
comptroller's decision to grant or deny the application under |
|
Subsection (a). If the comptroller denies an entity's application, |
|
the comptroller shall include in the notice of denial the reasons |
|
for the comptroller's decision. |
|
(e) If the comptroller denies an entity's application under |
|
Subsection (a), the entity may request in writing a reconsideration |
|
of the application not later than the 10th day after the date of the |
|
notice under Subsection (d). If the entity does not request a |
|
reconsideration of the application on or before that date, the |
|
comptroller's decision is final. |
|
(f) An entity that requests a reconsideration under |
|
Subsection (e) may submit to the comptroller not later than the 30th |
|
day after the date the request for reconsideration is submitted |
|
additional information and documents to support the entity's |
|
request for reconsideration. |
|
(g) The comptroller's reconsideration of an application |
|
under this section is not a contested case under Chapter 2001, |
|
Government Code. The comptroller's decision on a request for |
|
reconsideration of an application is final and is not appealable. |
|
(h) This section does not create a cause of action to |
|
contest a decision of the comptroller to deny an application for a |
|
credit under this chapter. |
|
Sec. 230.104. ASSIGNMENT PROHIBITED; EXCEPTION. An entity |
|
may not convey, assign, or transfer the credit allowed under this |
|
chapter to another entity unless all of the assets of the entity are |
|
conveyed, assigned, or transferred in the same transaction. |
|
Sec. 230.105. NOTICE OF AVAILABILITY OF CREDIT. The |
|
comptroller shall provide notice of the availability of the credit |
|
under this chapter on the comptroller's Internet website, in the |
|
instructions for insurance premium tax report forms, and in any |
|
notice sent to an entity concerning the requirement to file an |
|
insurance premium tax report. |
|
SECTION 2.02. An entity may apply for a credit under Chapter |
|
230, Insurance Code, as added by this article, only for an |
|
expenditure made on or after the effective date of this article. |
|
SECTION 2.03. Not later than February 15, 2018, the |
|
comptroller of public accounts shall adopt rules as provided by |
|
Section 230.002(a), Insurance Code, as added by this article. |
|
SECTION 2.04. The comptroller of public accounts shall make |
|
the initial determination of net savings and report regarding that |
|
savings as required by Section 230.057, Insurance Code, as added by |
|
this article, not later than December 31, 2020, based on the state |
|
fiscal biennium ending August 31, 2019. |
|
SECTION 2.05. This article applies only to a report |
|
originally due on or after the effective date of this article. |
|
SECTION 2.06. This article takes effect January 1, 2018. |
|
ARTICLE 3. JUDICIAL REVIEW |
|
SECTION 3.01. (a) The constitutionality and other validity |
|
under the state or federal constitution of all or any part of |
|
Subchapter J, Chapter 29, Education Code, as added by this Act, or |
|
Chapter 230, Insurance Code, as added by this Act, may be determined |
|
in an action for declaratory judgment in a district court in Travis |
|
County under Chapter 37, Civil Practice and Remedies Code, except |
|
that this section does not authorize an award of attorney's fees |
|
against this state and Section 37.009, Civil Practice and Remedies |
|
Code, does not apply to an action filed under this section. This |
|
section does not authorize a taxpayer suit to contest the denial of |
|
a tax credit by the comptroller of public accounts. |
|
(b) An appeal of a declaratory judgment or order, however |
|
characterized, of a district court, including an appeal of the |
|
judgment of an appellate court, holding or otherwise determining |
|
that all or any part of Subchapter J, Chapter 29, Education Code, as |
|
added by this Act, or Chapter 230, Insurance Code, as added by this |
|
Act, is constitutional or unconstitutional, or otherwise valid or |
|
invalid, under the state or federal constitution is an accelerated |
|
appeal. |
|
(c) If the judgment or order is interlocutory, an |
|
interlocutory appeal may be taken from the judgment or order and is |
|
an accelerated appeal. |
|
(d) A district court in Travis County may grant or deny a |
|
temporary or otherwise interlocutory injunction or a permanent |
|
injunction on the grounds of the constitutionality or |
|
unconstitutionality, or other validity or invalidity, under the |
|
state or federal constitution of all or any part of Subchapter J, |
|
Chapter 29, Education Code, as added by this Act, or Chapter 230, |
|
Insurance Code, as added by this Act. |
|
(e) There is a direct appeal to the Texas Supreme Court from |
|
an order, however characterized, of a trial court granting or |
|
denying a temporary or otherwise interlocutory injunction or a |
|
permanent injunction on the grounds of the constitutionality or |
|
unconstitutionality, or other validity or invalidity, under the |
|
state or federal constitution of all or any part of Subchapter J, |
|
Chapter 29, Education Code, as added by this Act, or Chapter 230, |
|
Insurance Code, as added by this Act. |
|
(f) The direct appeal is an accelerated appeal. |
|
(g) This section exercises the authority granted by Section |
|
3-b, Article V, Texas Constitution. |
|
(h) The filing of a direct appeal under this section will |
|
automatically stay any temporary or otherwise interlocutory |
|
injunction or permanent injunction granted in accordance with this |
|
section pending final determination by the Texas Supreme Court, |
|
unless the supreme court makes specific findings that the applicant |
|
seeking such injunctive relief has pleaded and proved that: |
|
(1) the applicant has a probable right to the relief it |
|
seeks on final hearing; and |
|
(2) the applicant will suffer a probable injury that |
|
is imminent and irreparable, and that the applicant has no other |
|
adequate legal remedy. |
|
(i) An appeal under this section, including an |
|
interlocutory, accelerated, or direct appeal, is governed, as |
|
applicable, by the Texas Rules of Appellate Procedure, including |
|
Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1), |
|
38.6(a) and (b), 40.1(b), and 49.4. |
|
ARTICLE 4. EFFECTIVE DATE |
|
SECTION 4.01. Except as otherwise provided by this Act: |
|
(1) this Act takes effect immediately if it receives a |
|
vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution; and |
|
(2) if this Act does not receive the vote necessary for |
|
immediate effect, this Act takes effect September 1, 2017. |