By: Creighton, et al. S.B. No. 1
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of an education savings account
  program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The purpose of this Act is to:
               (1)  provide additional educational options to assist
  families in this state in exercising the right to direct the
  educational needs of their children; and
               (2)  achieve a general diffusion of knowledge.
         SECTION 2.  Chapter 29, Education Code, is amended by adding
  Subchapter J to read as follows:
  SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
         Sec. 29.351.  DEFINITIONS. In this subchapter:
               (1)  "Account" means an education savings account
  established under the program.
               (2)  "Certified educational assistance organization"
  means an organization certified under Section 29.354 to support the
  administration of the program.
               (3)  "Child with a disability" means a child who is
  eligible to participate in a school district's special education
  program under Section 29.003.
               (4)  "Higher education provider" means an institution
  of higher education or a private or independent institution of
  higher education, as those terms are defined by Section 61.003.
               (5)  "Parent" means a resident of this state who is a
  natural or adoptive parent, managing or possessory conservator,
  legal guardian, custodian, or other person with legal authority to
  act on behalf of a child.
               (6)  "Participating child" means a child enrolled in
  the program.
               (7)  "Participating parent" means a parent of a
  participating child.
               (8)  "Program" means the program established under this
  subchapter.
               (9)  "Program participant" means a participating child
  or a participating parent.
         Sec. 29.352.  ESTABLISHMENT OF PROGRAM. The comptroller
  shall establish a program to provide funding for approved
  education-related expenses of children participating in the
  program.
         Sec. 29.353.  PROGRAM FUND. (a) The program fund is an
  account in the general revenue fund to be administered by the
  comptroller.
         (b)  The fund is composed of:
               (1)  general revenue transferred to the fund;
               (2)  money appropriated to the fund;
               (3)  gifts, grants, and donations received under
  Section 29.370; and
               (4)  any other money available for purposes of the
  program.
         (c)  Money in the fund may be appropriated only for the uses
  specified by this subchapter.
         Sec. 29.3535.  PROMOTION OF PROGRAM.  Notwithstanding
  Chapter 2113, Government Code, the comptroller or the comptroller's
  designee may enter into contracts or agreements and engage in
  marketing, advertising, and other activities to promote, market,
  and advertise the development and use of the program.  The
  comptroller may use money from the program fund to pay for
  activities authorized under this section.
         Sec. 29.354.  SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
  ORGANIZATIONS. (a) An organization may apply to the comptroller
  for certification as a certified educational assistance
  organization during an application period established by the
  comptroller.
         (b)  To be eligible for certification, an organization must:
               (1)  have the ability to perform one or more of the
  duties and functions required of a certified educational assistance
  organization under this subchapter;
               (2)  be in good standing with the state; and
               (3)  be able to assist the comptroller in administering
  the program in whole or in part, including the ability to:
                     (A)  accept, process, and track applications for
  the program;
                     (B)  assist prospective applicants, applicants,
  and program participants with finding preapproved education
  service providers and vendors of educational products;
                     (C)  accept and process payments for approved
  education-related expenses; and
                     (D)  verify that program funding is used only for
  approved education-related expenses.
         (c)  The comptroller may certify not more than five
  educational assistance organizations to support the administration
  of the program, including by:
               (1)  administering in whole or in part:
                     (A)  the application process under Section
  29.356; and
                     (B)  the program expenditures process under
  Section 29.360; and
               (2)  assisting prospective applicants, applicants, and
  program participants with understanding approved education-related
  expenses and finding preapproved education service providers and
  vendors of educational products.
         (d)  A certified educational assistance organization is not
  considered to be a provider of professional or consulting services
  under Chapter 2254, Government Code.
         Sec. 29.355.  ELIGIBLE CHILD. (a)  A child is eligible to
  participate in the program and may, subject to available funding,
  enroll in the program for the semester following the semester in
  which the child's application is submitted under Section 29.356 if
  the child:
               (1)  is eligible to:
                     (A)  attend a public school under Section 25.001;
  or
                     (B)  enroll in a public school's prekindergarten
  program under Section 29.153; and
               (2)  either:
                     (A)  was enrolled in a public school in this state
  for at least 90 percent of the school year preceding the school year
  for which the child applies to enroll in the program;
                     (B)  is enrolling in prekindergarten or
  kindergarten for the first time; 
                     (C)  attended a private school on a full-time
  basis for the preceding school year; or
                     (D)  was a home-schooled student, as defined by
  Section 29.916(a)(1), for the preceding school year.
         (b)  A child who establishes eligibility under this section
  may, subject to available funding and the requirements of this
  subchapter, participate in the program until the earliest of the
  following dates:
               (1)  the date on which the child graduates from high
  school;
               (2)  the date on which the child is no longer eligible
  to either attend a public school under Section 25.001 or enroll in a
  public school's prekindergarten program under Section 29.153, as
  applicable;
               (3)  the date on which the child enrolls in a public
  school, including an open-enrollment charter school, in a manner in
  which the child will be counted toward the school's average daily
  attendance for purposes of the allocation of funding under the
  foundation school program; or
               (4)  the date on which the child is declared ineligible
  for the program by the comptroller under this subchapter.
         (c)  Notwithstanding Subsection (a) or (b), a child is not
  eligible to participate in the program during the period in which
  the child's parent or legal guardian is a state representative,
  state senator, or a statewide elected official.
         Sec. 29.356.  APPLICATION TO PROGRAM. (a) A parent of an
  eligible child may apply to a certified educational assistance
  organization designated by the comptroller to enroll the child in
  the program for the following semester, term, or school year, as
  determined by the comptroller. The comptroller shall establish
  deadlines by which an applicant must complete and submit an
  application form to participate in the program.
         (b)  On receipt of more acceptable applications during an
  application period for admission under this section than available
  positions in the program due to insufficient funding, a certified
  educational assistance organization shall, at the direction of the
  comptroller, fill the available positions by lottery of applicants
  within each category as follows:
               (1)  for not more than 40 percent of available
  positions in the program, children described by Section
  29.355(a)(2)(A) or (B) who are members of a household with a total
  annual income that is at or below 185 percent of the federal poverty
  guidelines;
               (2)  for not more than 30 percent of the available
  positions in the program, children described by Section
  29.355(a)(2)(A) or (B) who are members of a household with a total
  annual income that is above 185 percent of the federal poverty
  guidelines and below 500 percent of the federal poverty guidelines;
               (3)  for not more than 20 percent of the available
  positions in the program, children with a disability described by
  Section 29.355(a)(2)(A) or (B) who are not accepted into the
  program under Subdivision (1) or (2) of this subsection; and
               (4)  for any remaining available positions in the
  program, all eligible applicants who are not accepted into the
  program under Subdivision (1), (2), or (3) of this subsection.
         (b-1)  The comptroller shall adopt rules necessary to
  administer Subsection (b). The comptroller shall post on the
  comptroller's Internet website any rule adopted under this
  subsection.
         (c)  The comptroller shall create an application form for the
  program and each certified educational assistance organization
  designated by the comptroller shall make the application form
  readily available through various sources, including the
  organization's Internet website. The application form must state
  the application deadlines established by the comptroller under
  Subsection (a). Each organization shall ensure that the
  application form, including any required supporting document, is
  capable of being submitted to the organization electronically.
         (d)  Each certified educational assistance organization
  designated under Subsection (a) shall post on the organization's
  Internet website an applicant and participant handbook with a
  description of the program, including:
               (1)  expenses allowed under the program under Section
  29.359;
               (2)  a list of preapproved education service providers
  and vendors of educational products under Section 29.358;
               (3)  a description of the application process under
  this section and the program expenditures process under Section
  29.360; and
               (4)  a description of the responsibilities of program
  participants.
         (e)   Each certified educational assistance organization
  designated under Subsection (a) shall annually provide to the
  parent of each child participating in the program the information
  described by Subsection (d). The organization may provide the
  information electronically.
         (f)  The comptroller or a certified educational assistance
  organization designated under Subsection (a):
               (1)  may require the participating parent to submit
  annual notice regarding the parent's intent for the child to
  continue participating in the program for the next school year; and
               (2)  may not require a program participant in good
  standing to annually resubmit an application for continued
  participation in the program.
         (g)  The agency shall provide to the comptroller the
  information necessary to make the determinations required under
  Subsection (b).
         Sec. 29.357.  PARTICIPATION IN PROGRAM. To receive funding
  under the program, a participating parent must agree to:
               (1)  spend money received through the program only for
  expenses allowed under Section 29.359;
               (2)  share or authorize the administrator of an
  assessment instrument to share with the program participant's
  certified educational assistance organization the results of any
  assessment instrument required to be administered to the child
  under Section 29.358(b)(1)(B) or other law;
               (3)  refrain from selling an item purchased with
  program money; and
               (4)  notify the program participant's certified
  educational assistance organization not later than 30 business days
  after the date on which the child:
                     (A)  enrolls in a public school, including an
  open-enrollment charter school;
                     (B)  graduates from high school; or
                     (C)  is no longer eligible to either:
                           (i)  enroll in a public school under Section
  25.001; or
                           (ii)  enroll in a public school's
  prekindergarten program under Section 29.153.
         Sec. 29.358.  PREAPPROVED PROVIDERS AND VENDORS. (a) The
  comptroller shall by rule establish a process for the preapproval
  of education service providers and vendors of educational products
  for participation in the program. The comptroller shall allow for
  the submission of applications on a rolling basis.
         (b)  The comptroller shall approve an education service
  provider or vendor of educational products for participation in the
  program if the provider or vendor:
               (1)  for a private school, demonstrates:
                     (A)  accreditation by an organization recognized
  by:
                           (i)  the Texas Private School Accreditation
  Commission; or
                           (ii)  the agency; and
                     (B)  annual administration of a nationally
  norm-referenced assessment instrument or the appropriate
  assessment instrument required under Subchapter B, Chapter 39;
               (2)  for a public school, demonstrates:
                     (A)  accreditation by the agency; and
                     (B)  the ability to provide services or products
  to children participating in the program in a manner in which the
  children are not counted toward the school's average daily
  attendance;
               (3)  for a private tutor, therapist, or teaching
  service, demonstrates that:
                     (A)  the tutor or therapist or each employee of
  the teaching service who intends to provide educational services to
  a participating child:
                           (i)  is an educator employed by or a retired
  educator formerly employed by a school accredited by the agency, an
  organization recognized by the agency, or an organization
  recognized by the Texas Private School Accreditation Commission;
                           (ii)  holds a relevant license or
  accreditation issued by a state, regional, or national
  certification or accreditation organization; or
                           (iii)  is employed in or retired from a
  teaching or tutoring capacity at a higher education provider;
                     (B)  the tutor or therapist or each employee of
  the teaching service who intends to provide educational services to
  a participating child provides to the comptroller a national
  criminal history record information review completed by the tutor,
  therapist, or employee, as applicable, within a period established
  by comptroller rule; and
                     (C)  the tutor or therapist or each employee of
  the teaching service who intends to provide educational services to
  a participating child is not:
                           (i)  required to be discharged or refused to
  be hired by a school district under Section 22.085; or
                           (ii)  included in the registry under Section
  22.092; or
               (4)  for a higher education provider, demonstrates
  nationally recognized postsecondary accreditation.
         (c)  The comptroller may approve only an education service
  provider or vendor of educational products that operates in this
  state.
         (d)  The comptroller shall review the national criminal
  history record information or documentation for each private tutor,
  therapist, or teaching service employee who submits information or
  documentation under this section. The tutor, therapist, or
  employee must provide the comptroller with any information
  requested by the comptroller to enable the comptroller to complete
  the review.
         (e)  An education service provider or vendor of educational
  products shall provide information requested by the comptroller to
  verify the provider's or vendor's eligibility for preapproval under
  Subsection (b). The comptroller may not approve a provider or
  vendor if the comptroller cannot verify the provider's or vendor's
  eligibility for preapproval.
         (f) An education service provider or vendor of educational
  products must agree to:
               (1)  abide by the disbursement schedule under Section
  29.360(c) and all other requirements of this subchapter;
               (2)  accept money from the program only for
  education-related expenses approved under Section 29.359;
               (3)  notify the comptroller not later than the 30th day
  after the date that the provider or vendor no longer meets the
  requirements of this section; and
               (4)  return any money received, including any interest
  or other additions received related to the money, in violation of
  this subchapter or other relevant law to the comptroller for
  deposit into the program fund.
         (g) An education service provider or vendor of educational
  products that receives approval under this section may participate
  in the program until the earliest of the date on which the provider
  or vendor:
               (1)  no longer meets the requirements under this
  section; or
               (2)  violates this subchapter or other relevant law.
         (h)  This section may not be construed to allow a learning
  pod, as defined by Section 27.001, or a home school to qualify as an
  approved education service provider or vendor of educational
  products.
         Sec. 29.359.  APPROVED EDUCATION-RELATED EXPENSES. (a)
  Subject to Subsection (b), money received under the program may be
  used only for the following education-related expenses incurred by
  a participating child at a preapproved education service provider
  or vendor of educational products:
               (1)  tuition and fees for a private school;
               (2)  the purchase of textbooks or other instructional
  materials or uniforms;
               (3)  costs related to academic assessments;
               (4)  fees for services provided by a private tutor or
  teaching service;
               (5)  fees for transportation provided by a
  fee-for-service transportation provider for the child to travel to
  and from a preapproved education service provider or vendor of
  educational products; and
               (6)  fees for educational therapies or services
  provided by a practitioner or provider, only for fees that are not
  covered by any federal, state, or local government benefits such as
  Medicaid or the Children's Health Insurance Program (CHIP) or by
  any private insurance that the child is enrolled in at the time of
  receiving the therapies or services.
         (b)  Money received under the program may not be used to pay
  any person who is related to the program participant within the
  third degree by consanguinity or affinity, as determined under
  Chapter 573, Government Code.
         (c)  A finding that a program participant used money
  distributed under the program to pay for an expense not allowed
  under Subsection (a) does not affect the validity of any payment
  made by the participant for an approved education-related expense
  that is allowed under that subsection.
         Sec. 29.360.  PROGRAM EXPENDITURES. (a) The comptroller
  shall disburse from the program fund to each certified educational
  assistance organization the amount specified under Section
  29.361(a) for each participating child served by the organization.
         (b)  To initiate payment to an education service provider or
  vendor of educational products for an education-related expense
  approved under Section 29.359, the participating parent must submit
  a request in a form prescribed by comptroller rule to the certified
  educational assistance organization that serves the child.
         (c)  Subject to Subsection (d) and Sections 29.362(f) and
  29.364, on receiving a request under Subsection (b), a certified
  educational assistance organization shall verify that the request
  is for an expense approved under Section 29.359 and, not later than
  the 15th business day after the date the organization verifies the
  request, send payment to the education service provider or vendor
  of educational products.
         (d)  A disbursement under this section may not exceed the
  applicable participating child's account balance.
         (e)  A certified educational assistance organization shall
  provide participating parents with electronic access to:
               (1)  view the participating child's current account
  balance;
               (2)  initiate the payment process under Subsection (b);
  and
               (3)  view a summary of past account activity, including
  payments from the account to education service providers and
  vendors of educational products.
         Sec. 29.361.  AMOUNT OF PAYMENT; FINANCING. (a)  Regardless
  of the deadline by which the parent applies for enrollment in the
  program under Section 29.356(a), a participating parent shall
  receive each year that the child participates in the program
  payments from the state from funds available under Section 29.353
  to the child's account equal to a total amount of:
               (1)  $1,000, if the participating child is a
  home-schooled student, as defined by Section 29.916(a)(1); or
               (2)  $8,000, if the child is a participating child not
  described by Subdivision (1).
         (b)  This subsection does not apply to an open-enrollment
  charter school and applies only to a school district with a student
  enrollment of 5,000 or less that experiences a net decline in
  student enrollment from the previous school year that is
  attributable to students participating in the program who would
  otherwise enroll in the district.  For the first three school years
  during which a child residing in the district participates in the
  program, a school district to which this subsection applies is
  entitled to receive $10,000 per child from money appropriated for
  purposes of this subchapter.
         (c)  Any money remaining in a participating child's account
  at the end of a fiscal year is carried forward to the next fiscal
  year unless another provision of this subchapter mandates the
  closure of the account.
         (d)  The participating parent may make payments for the
  expenses of educational programs, services, and products not
  covered by money in the participating child's account.
         (e)  A payment under Subsection (a) may not be financed using
  federal money or money from the available school fund or
  instructional materials and technology fund.
         (f)  Payments received under this subchapter do not
  constitute taxable income to a participating parent, unless
  otherwise provided by federal law.
         (g)  Not later than May 1 of each year, the agency shall
  submit to the comptroller the data necessary to calculate the
  amount specified under Subsection (a).
         Sec. 29.362.  ADMINISTRATION OF ACCOUNTS. (a)  On receipt
  of money distributed by the comptroller for purposes of making
  payments to program participants, a certified educational
  assistance organization shall hold that money in trust for the
  benefit of children participating in the program and make quarterly
  payments to the account of each participating child served by the
  organization in equal amounts on or before the first day of July,
  October, January, and April.
         (b)  Each year, the comptroller may deduct from the total
  amount of money appropriated for purposes of this subchapter an
  amount, not to exceed three percent of that total amount, to cover
  the comptroller's cost of administering the program.
         (c)  Each quarter, each certified educational assistance
  organization shall submit to the comptroller a breakdown of the
  organization's costs of administering the program for the previous
  quarter and the comptroller shall disburse from money appropriated
  for the program to each certified educational assistance
  organization the amount necessary to cover the organization's costs
  of administering the program for that quarter. The total amount
  disbursed to all certified educational assistance organizations
  under this subsection for a state fiscal year may not exceed five
  percent of the amount appropriated for the purposes of the program
  for that fiscal year.
         (d)  On or before the first day of October and February, a
  certified educational assistance organization shall:
               (1)  verify with the agency that each participating
  child is not enrolled in a public school, including an
  open-enrollment charter school, in a manner in which the child is
  counted toward the school's average daily attendance for purposes
  of the allocation of state funding under the foundation school
  program; and
               (2)  notify the comptroller if the organization
  determines that a participating child is:
                     (A)  enrolled in a public school, including an
  open-enrollment charter school, in a manner in which the child is
  counted toward the school's average daily attendance for purposes
  of the allocation of state funding under the foundation school
  program; or
                     (B)  not enrolled in a preapproved private school.
         (e)  The comptroller by rule shall establish a process by
  which a participating parent may authorize the comptroller or a
  certified educational assistance organization to make a payment
  directly from the participant's account to a preapproved education
  service provider or vendor of educational products for an expense
  allowed under Section 29.359.
         (f)  On the date on which a child who participated in the
  program is no longer eligible to participate in the program under
  Section 29.355 and payments for any education-related expenses
  allowed under Section 29.359 from the child's account have been
  completed, the participating child's account shall be closed and
  any remaining money returned to the comptroller for deposit in the
  program fund.
         (g)  Each quarter, any interest or other earnings
  attributable to money held by a certified educational assistance
  organization for purposes of the program shall be remitted to the
  comptroller for deposit in the program fund.
         Sec. 29.363.  AUDITING. (a) The comptroller shall contract
  with a private entity to audit accounts and program participant
  eligibility data not less than once per year to ensure compliance
  with applicable law and program requirements.  The audit must
  include a review of:
               (1)  each certified educational assistance
  organization's internal controls over program transactions; and
               (2)  compliance by:
                     (A)  certified educational assistance
  organizations with Section 29.354 and other program requirements;
                     (B)  program participants with Section 29.357 and
  other program requirements; and
                     (C)  education service providers and vendors of
  educational products with Section 29.358 and other program
  requirements.
         (b)  In conducting an audit, the private entity may require a
  program participant, education service provider or vendor of
  educational products, or a certified educational assistance
  organization to provide information and documentation regarding
  any transaction occurring under the program. 
         (c)  The private entity shall report to the comptroller any
  violation of this subchapter or other relevant law and any
  transactions the entity determines to be unusual or suspicious
  found by the entity during an audit conducted under this section.  
  The comptroller shall report the violation or transaction to:
               (1)  the applicable certified educational assistance
  organization;
               (2)  the education service provider or vendor of
  educational products, as applicable; and
               (3)  each participating parent who is affected by the
  violation or transaction. 
         Sec. 29.364.  SUSPENSION OF ACCOUNT. (a) The comptroller
  shall suspend the account of a participating child who fails to
  remain in good standing by complying with applicable law or a
  requirement of the program.
         (b)  On suspension of an account under Subsection (a), the
  comptroller shall notify the participating parent in writing that
  the account has been suspended and that no additional payments may
  be made from the account. The notification must specify the grounds
  for the suspension and state that the participating parent has 30
  days to respond and take any corrective action required by the
  comptroller.
         (c)  On the expiration of the 30-day period under Subsection
  (b), the comptroller shall:
               (1)  order closure of the suspended account;
               (2)  order temporary reinstatement of the account,
  conditioned on the performance of a specified action by the
  participating parent; or
               (3)  order full reinstatement of the account.
         (d)  The comptroller may recover money distributed under the
  program that was used for expenses not allowed under Section
  29.359, for a child who was not eligible to participate in the
  program at the time of the expenditure, or from an education service
  provider or vendor of educational products that was not approved at
  the time of the expenditure. The money and any interest or other
  additions received related to the money may be recovered from the
  participating parent or the education service provider or vendor of
  educational products that received the money in accordance with
  Subtitles A and B, Title 2, Tax Code, or as provided by other law if
  the participating child's account is suspended or closed under this
  section.  The comptroller shall deposit money recovered under this
  subsection into the program fund.
         Sec. 29.365.  TUITION AND FEES; REFUND PROHIBITED. (a) An
  education service provider or vendor of educational products may
  not charge a participating child an amount greater than the
  standard amount charged for that service or product by the provider
  or vendor.
         (b)  An education service provider or vendor of educational
  products receiving money distributed under the program may not in
  any manner rebate, refund, or credit to or share with a program
  participant, or any person on behalf of a participant, any program
  money paid or owed by the participant to the provider or vendor.
         Sec. 29.366.  REFERRAL TO DISTRICT ATTORNEY. If the
  comptroller obtains evidence of fraudulent use of an account or
  money distributed under the program or any other violation of law by
  a certified educational assistance organization, education
  services provider or vendor of educational products, or program
  participant, the comptroller shall notify the appropriate local
  county or district attorney with jurisdiction over, as applicable:
               (1)  the principal place of business of the
  organization or provider or vendor; or 
               (2)  the residence of the program participant.
         Sec. 29.367.  SPECIAL EDUCATION NOTICE. (a) A certified
  educational assistance organization shall post on the
  organization's Internet website and provide to each parent who
  submits an application for the program a notice that:
               (1)  states that a private school is not subject to
  federal and state laws regarding the provision of educational
  services to a child with a disability in the same manner as a public
  school; and
               (2)  provides information regarding rights to which a
  child with a disability is entitled under federal and state law if
  the child attends a public school, including:
                     (A)  rights provided under the Individuals with
  Disabilities Education Act (20 U.S.C. Section 1400 et seq.); and
                     (B)  rights provided under Subchapter A.
         (b)  A private school in which a child with a disability who
  is a participating child enrolls shall provide to the participating
  parent a copy of the notice required under Subsection (a).
         Sec. 29.368.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
  AUTONOMY. (a) An education service provider or vendor of
  educational products that receives money distributed under the
  program is not a recipient of federal financial assistance and may
  not be considered to be an agent of state government on the basis of
  receiving that money.
         (b)  A rule adopted or other governmental action taken
  related to the program may not impose requirements that are
  contrary to or limit the religious or institutional values or
  practices of an education service provider, vendor of educational
  products, or program participant, including by limiting the ability
  of the provider, vendor, or participant, as applicable, to:
               (1)  determine the methods of instruction or curriculum
  used to educate students;
               (2)  determine admissions and enrollment practices,
  policies, and standards;
               (3)  modify or refuse to modify the provider's,
  vendor's, or participant's religious or institutional values or
  practices, including operations, conduct, policies, standards,
  assessments, or employment practices that are based on the
  provider's, vendor's, or participant's religious or institutional
  values or practices; or
               (4)  exercise the provider's, vendor's, or
  participant's religious or institutional practices as determined
  by the provider, vendor, or participant.
         Sec. 29.369.  STUDENT RECORDS AND INFORMATION. (a) On
  request by the participating parent or parent of a child seeking to
  participate in the program, the 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.
         (b)  As necessary to verify a child's eligibility for the
  program, the agency, a school district, or an open-enrollment
  charter school shall provide to a certified educational assistance
  organization any information available to the agency, district, or
  school requested by the organization regarding a child who
  participates or seeks to participate in the program, including
  information regarding the child's public school enrollment status
  and whether the child can be counted toward a public school's
  average daily attendance for purposes of the allocation of funding
  under the foundation school program. The organization may not
  retain information provided under this subsection beyond the period
  necessary to determine a child's eligibility to participate in the
  program.
         (c)  The certified educational assistance organization or an
  education service provider or vendor of educational products that
  obtains information regarding a participating child:
               (1)  shall comply with state and federal law regarding
  the confidentiality of student educational information; and
               (2)  may not sell or otherwise distribute information
  regarding a participating child.
         Sec. 29.370.  GIFTS, GRANTS, AND DONATIONS. The comptroller
  and a certified educational assistance organization 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 establishing the program and contracting for the
  report required under Section 29.371.
         Sec. 29.371.  ANNUAL REPORT. (a)  The comptroller shall
  require that each certified educational assistance organization
  compile program data and produce an annual longitudinal report
  regarding:
               (1)  the number of program applications received,
  accepted, and wait-listed, disaggregated by age;
               (2)  program participant satisfaction;
               (3)  the results of assessment instruments shared in
  accordance with Section 29.357(2);
               (4)  the effect of the program on public and private
  school capacity and availability;
               (5)  the amount of cost savings accruing to the state as
  a result of the program;
               (6)  in a report submitted in an even-numbered year
  only, an estimate of the total amount of funding required for the
  program for the next state fiscal biennium;
               (7)  the amount of gifts, grants, and donations
  received under Section 29.370; and
               (8)  based on surveys of former program participants or
  other sources available to an organization, the number and
  percentage of children participating in the program who, within one
  year after graduating from high school, are:
                     (A)  college ready, as indicated by earning a
  minimum of 12 non-remedial semester credit hours or the equivalent
  or an associate degree from a postsecondary educational
  institution;
                     (B)  career ready, as indicated by:
                           (i)  earning a credential of value included
  in a library of credentials established under Section 2308A.007,
  Government Code; or
                           (ii)  employment at or above the median wage
  in the child's region; or
                     (C)  military ready, as indicated by achieving a
  passing score set by the applicable military branch on the Armed
  Services Vocational Aptitude Battery and enlisting in the armed
  forces of the United States or the Texas National Guard.
         (b)  In producing the report, each certified educational
  assistance organization shall:
               (1)  use appropriate analytical and behavioral science
  methodologies to ensure public confidence in the report; and
               (2)  comply with the requirements regarding the
  confidentiality of student educational information under the
  Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
  Section 1232g).
         (c)  The report must cover a period of not less than five
  years and include, subject to Subsection (b)(2), the data analyzed
  and methodology used.
         (d)  The comptroller and each certified educational
  assistance organization shall post the report on the comptroller's
  and organization's respective Internet websites.
         Sec. 29.3715.  COLLECTION AND REPORTING OF DEMOGRAPHIC
  INFORMATION.  (a)  Each certified educational assistance
  organization shall collect and report to the comptroller
  demographic information regarding each participating child for
  whom the organization is responsible.  The report must include the
  following demographic information: 
                     (1)  the child's grade; 
                     (2)  the child's age; 
                     (3)  the child's gender; 
                     (4)  the child's race or ethnicity; 
                     (5)  the school district in which the child
  resides; 
                     (6)  the district campus that the child would
  otherwise attend;
                     (7)  the child's zip code;
                     (8)  the child's date of enrollment in the
  program;
                     (9)  whether the child is educationally
  disadvantaged; and
                     (10)  whether the child has a disability.
         (b)  Not later than August 1 of each year, the comptroller
  shall submit a written report to the legislature summarizing the
  demographic information collected under this section.
         Sec. 29.372.  RULES; PROCEDURES. The comptroller shall
  adopt rules and procedures as necessary to implement, administer,
  and enforce this subchapter.
         Sec. 29.373.  APPEAL; FINALITY OF DECISIONS. (a) A program
  participant may appeal to the comptroller an administrative
  decision made by the comptroller or a certified educational
  assistance organization under this subchapter, including a
  decision regarding eligibility, allowable expenses, or the
  participant's removal from the program.
         (b)  This subchapter may not be construed to confer a
  property right on a certified educational assistance organization,
  education service provider, vendor of educational products, or
  program participant.
         (c)  A decision of the comptroller made under this subchapter
  is final and not subject to appeal.
         Sec. 29.374.  RIGHT TO INTERVENE IN CIVIL ACTION. (a) A
  program participant, education service provider, or vendor of
  educational products may intervene in any civil action challenging
  the constitutionality of the program.
         (b)  A court in which a civil action described by Subsection
  (a) is filed may require that all program participants, education
  service providers, and vendors of educational products wishing to
  intervene in the action file a joint brief. A program participant,
  education service provider, or vendor of educational products may
  not be required to join a brief filed on behalf of the state or a
  state agency.
         SECTION 3.  Section 22.092(d), Education Code, is amended to
  read as follows:
         (d)  The agency shall provide equivalent access to the
  registry maintained under this section to:
               (1)  private schools;
               (2)  public schools; [and]
               (3)  nonprofit teacher organizations approved by the
  commissioner for the purpose of participating in the tutoring
  program established under Section 33.913; and
               (4)  the comptroller for the purpose of preapproving
  education service providers and vendors of educational products
  under Section 29.358 for participation in the program established
  under Subchapter J, Chapter 29.
         SECTION 4.  Section 411.109, Government Code, is amended by
  adding Subsection (b-1) and amending Subsection (c) to read as
  follows:
         (b-1)  The comptroller is entitled to obtain criminal
  history record information as provided by Subsection (c) about a
  person who is a private tutor, a therapist, or an employee of a
  teaching service or school who intends to provide educational
  services to a child participating in the program established under
  Subchapter J, Chapter 29, Education Code, and is seeking approval
  to receive money distributed under that program.
         (c)  Subject to Section 411.087 and consistent with the
  public policy of this state, the comptroller is entitled to:
               (1)  obtain through the Federal Bureau of Investigation
  criminal history record information maintained or indexed by that
  bureau that pertains to a person described by Subsection (a), [or]
  (b), or (b-1); and
               (2)  obtain from the department or any other criminal
  justice agency in this state criminal history record information
  maintained by the department or that criminal justice agency that
  relates to a person described by Subsection (a), [or] (b), or (b-1).
         SECTION 5.  Subchapter J, Chapter 29, Education Code, as
  added by this Act, applies beginning with the 2024-2025 school
  year.
         SECTION 6.  (a) Not later than May 15, 2024, the comptroller
  of public accounts shall adopt rules as provided by Sections
  29.356(b-1) and 29.372, Education Code, as added by this Act.
         (b)  The comptroller of public accounts may identify rules
  required by the passage of Subchapter J, Chapter 29, Education
  Code, as added by this Act, that must be adopted on an emergency
  basis for purposes of the 2024-2025 school year and may use the
  procedures established under Section 2001.034, Government Code,
  for adopting those rules.  The comptroller of public accounts is not
  required to make the finding described by Section 2001.034(a),
  Government Code, to adopt emergency rules under this subsection.
         SECTION 7.  (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, may
  be determined in an action for declaratory judgment under Chapter
  37, Civil Practice and Remedies Code, in a district court in the
  county in which the violation is alleged to have occurred or where
  the plaintiff resides or has its principal place of business.
         (b)  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, may be reviewed only by direct appeal to the Texas Supreme
  Court filed not later than the 15th business day after the date on
  which the order was entered.  The Texas Supreme Court shall give
  precedence to appeals under this section over other matters.
         (c)  The direct appeal is an accelerated appeal.
         (d)  This section exercises the authority granted by Section
  3-b, Article V, Texas Constitution.
         (e)  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;
               (2)  the applicant will suffer a probable injury that
  is imminent and irreparable, and that the applicant has no other
  adequate legal remedy; and
               (3)  maintaining the injunction is in the public
  interest.
         (f)  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), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),
  40.1(b), and 49.4.
         (g)  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.
         (h)  This section does not authorize a taxpayer suit to
  contest the denial of a tax credit by the comptroller of public
  accounts.
         SECTION 8.  It is the intent of the legislature that every
  provision, section, subsection, sentence, clause, phrase, or word
  in this Act, and every application of the provisions in this Act to
  each person or entity, is severable from each other. If any
  application of any provision in this Act to any person, group of
  persons, or circumstances is found by a court to be invalid for any
  reason, the remaining applications of that provision to all other
  persons and circumstances shall be severed and may not be affected.
         SECTION 9.  This Act takes effect on the 91st day after the
  last day of the legislative session.