88S40601 MM-F
 
  By: Jetton H.B. No. 115
 
 
 
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)  "Approved educational assistance organization"
  means an organization approved under Section 29.354 to support the
  administration of the program.
               (3)  "Approved education-related expense" means an
  expense approved under Section 29.359.
               (4)  "Child with a disability" means a child who is
  eligible to participate in a school district's special education
  program under Section 29.003.
               (5)  "Cocurricular activity" means an activity that
  directly adds value to classroom instruction and curriculum,
  including an academic field trip, performance, contest, or display.  
  The term does not include an athletic or other nonacademic
  activity.
               (6)  "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.
               (7)  "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.
               (8)  "Program" means the program established under this
  subchapter.
               (9)  "Program participant" means a child and a parent
  of a child enrolled in the program.
         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. 29.354.  SELECTION OF APPROVED EDUCATIONAL ASSISTANCE
  ORGANIZATIONS. (a) An organization may apply to the comptroller
  for approval as an approved educational assistance organization
  during an application period established by the comptroller.
         (b)  To be eligible for approval, an organization must:
               (1)  have the ability to perform the duties and
  functions required of an approved 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, including the ability to:
                     (A)  accept, process, and track applications for
  the program;
                     (B)  assist prospective applicants, applicants,
  and program participants with finding education service providers
  and vendors of educational products, including by developing and
  maintaining an Internet website with information regarding those
  providers and vendors; and
                     (C)  accept and process payments for approved
  education-related expenses.
         (c)  The comptroller may approve not more than five
  educational assistance organizations to support the administration
  of the program.
         Sec. 29.355.  ELIGIBLE CHILD. (a) A child is eligible to
  participate in the program if the child is eligible to:
               (1)  attend a public school under Section 25.001; or
               (2)  enroll in a public school's prekindergarten
  program under Section 29.153.
         (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 attend a public school under Section 25.001;
               (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.
         Sec. 29.356.  APPLICATION TO PROGRAM. (a) A parent of an
  eligible child may apply to an approved educational assistance
  organization to enroll the child in the program for the following
  semester. The comptroller shall establish semiannual 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, an approved
  educational assistance organization shall, at the direction of the
  comptroller and subject to Subsection (c), fill the available
  positions by lottery in the following order:
               (1)  siblings of children participating in the program;
               (2)  children with a disability who are educationally
  disadvantaged;
               (3)  children who are educationally disadvantaged;
               (4)  children with a disability who are not
  educationally disadvantaged; and
               (5)  applicants not described by Subdivision (1), (2),
  (3), or (4).
         (c)  In filling available positions under Subsection (b), if
  a sibling of a child accepted into the program under that subsection
  applied to enroll in the program during the same application period
  in which the child was accepted, an approved educational assistance
  organization shall, subject to the availability of positions,
  concurrently accept the child and the child's sibling into the
  program.
         (d)  The comptroller shall create an application form for the
  program. The application form must state the semiannual
  application deadlines established under Subsection (a).
         (e)  Each approved educational assistance organization
  shall:
               (1)  make the application form readily available
  through various sources, including the organization's Internet
  website; and
               (2)  ensure that the application form, including any
  required supporting document, is capable of being submitted to the
  organization electronically.
         (f)  An approved educational assistance organization shall
  post on the organization's Internet website an applicant and
  participant handbook with a description of the program, including
  information regarding:
               (1)  approved education-related expenses;
               (2)  the assistance the organization provides with
  respect to finding and selecting education service providers and
  vendors of educational products;
               (3)  the application process under this section;
               (4)  the program expenditures process under Section
  29.360; and
               (5)  the responsibilities of program participants.
         (g)  An approved educational assistance organization shall
  annually provide to the parent of each child participating in the
  program the information described by Subsection (f). The
  organization may provide the information electronically.
         (h)  An approved educational assistance organization:
               (1)  may require the parent of a child participating in
  the program for whom the organization is responsible 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.
         (i)  Not later than the 30th day after the date on which an
  approved educational assistance organization requires notice to be
  submitted under Subsection (h)(1), the organization shall notify
  the comptroller and each other approved educational assistance
  organization regarding each notice received under that
  subdivision.
         Sec. 29.357.  PARTICIPATION IN PROGRAM. To receive funding
  under the program, a parent of a child participating in the program
  must agree to:
               (1)  use money in the child's account only for approved
  education-related expenses;
               (2)  share or authorize the administrator of an
  assessment instrument to share with the program participant's
  approved educational assistance organization and the researchers
  contracted under Section 29.371 the results of any assessment
  instrument required to be administered to the child under Section
  29.358(b)(1)(B);
               (3)  refrain from selling an item purchased with
  program money before the first anniversary of the purchase date;
  and
               (4)  notify the program participant's approved
  educational assistance organization not later than the 30th day
  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)  in each grade level and subject area in which
  an assessment instrument is required to be administered under
  Section 39.023(a)(1), (2), (3), or (4) or (c), 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:
                     (A)  demonstrates that the tutor or therapist or
  each employee of the teaching service who intends to provide
  educational services to a child participating in the program:
                           (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 child participating in the program 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 child participating in the program 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;
               (4)  for a higher education provider, demonstrates
  nationally recognized postsecondary accreditation; or
               (5)  for a provider or vendor not described by
  Subdivision (1), (2), (3), or (4):
                     (A)  demonstrates the ability to provide to
  program participants services or products that are approved
  education-related expenses;
                     (B)  requires each employee of the provider or
  vendor who intends to provide educational services to a child
  participating in the program to provide to the comptroller a
  national criminal history record information review completed by
  the employee within a period established by comptroller rule; and
                     (C)  demonstrates that each employee of the
  provider or vendor who intends to provide educational services to a
  child participating in the program 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.
         (c)  In recognizing an organization for purposes of
  Subsection (b)(1)(A)(ii), the agency shall ensure that the
  organization, through the organization's accreditation standards,
  supports the college, career, and military readiness of children
  participating in the program, including by coordinating with the
  Tri-Agency Workforce Initiative established under Chapter 2308A,
  Government Code.
         (d)  The comptroller shall review the national criminal
  history record information or documentation for each private tutor,
  therapist, teaching service employee, or other employee of an
  education service provider or vendor of educational products who
  submits information or documentation under this section and verify
  that the individual is not included in the registry under Section
  22.092. The tutor, therapist, service, or other provider or vendor
  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)  A preapproved education service provider or vendor of
  educational products that no longer meets the requirements of this
  section must notify the comptroller, each approved educational
  assistance organization, and each program participant served by the
  provider or vendor under the program not later than the 15th day
  after the date that the provider or vendor no longer meets the
  requirements.  The notice must include the reason the provider or
  vendor no longer meets the requirements of this section.  The
  comptroller shall adopt a form for use under this subsection.
         (g)  The comptroller shall by rule prohibit an education
  service provider or vendor of educational products that is not
  preapproved under Subsection (a) from receiving payment directly
  from a program participant's account for an approved
  education-related expense, including an expense incurred after the
  date on which a formerly preapproved provider or vendor no longer
  meets the requirements of this section.
         Sec. 29.359.  APPROVED EDUCATION-RELATED EXPENSES. (a)
  Subject to Subsection (b), money in an account may be used only for
  the following education-related expenses incurred by a child
  participating in the program:
               (1)  tuition and fees for a private school, higher
  education provider, or educational course or program;
               (2)  the purchase of textbooks or other instructional
  materials;
               (3)  uniforms required by a school, higher education
  provider, course, or program in which the child is enrolled;
               (4)  costs related to cocurricular activities;
               (5)  costs related to academic assessments;
               (6)  fees for services provided by a private tutor or
  teaching service;
               (7)  fees for classes or other educational services
  provided by a public school, including an open-enrollment charter
  school, if the classes or services do not qualify the child to be
  included in the school's average daily attendance;
               (8)  for a child with a disability, costs of computer
  hardware and software and other technological devices prescribed by
  a physician to facilitate a child's education, not to exceed in any
  year 10 percent of the total amount paid to the program
  participant's account that year;
               (9)  fees for transportation provided by a
  fee-for-service transportation provider for the child to travel to
  and from an education service provider or vendor of educational
  products; and
               (10)  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 in an account 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 approved educational
  assistance organization the amount specified under Section
  29.361(a) for each child participating in the program served by the
  organization.
         (b)  To initiate payment to a preapproved education service
  provider or vendor of educational products for an approved
  education-related expense, the parent of a child participating in
  the program must submit a request in a form prescribed by
  comptroller rule to the approved educational assistance
  organization that serves the child.
         (c)  Subject to Subsection (e) and Sections 29.362(g) and
  29.364, on receiving a request under Subsection (b), an approved
  educational assistance organization shall verify that the request
  is for an approved education-related expense and, not later than
  the fifth business day after the date the organization verifies the
  request, send payment to the education service provider or vendor
  of educational products.
         (d)  Notwithstanding Subsection (b), each approved
  educational assistance organization shall establish a process by
  which the parent of a child participating in the program who makes a
  payment for an approved education-related expense using money other
  than money in the child's account may request reimbursement for the
  expense from the child's account.  The organization may require the
  use of an online platform for purposes of requesting reimbursement.
         (e)  A disbursement under this section may not exceed the
  applicable program participant's account balance.
         (f)  An approved educational assistance organization shall
  provide program participants with electronic access to:
               (1)  view the participant's current account balance;
               (2)  initiate the payment process under Subsection (b);
  and
               (3)  view a summary of the participant's 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 parent of a child participating
  in the program shall receive each year that the child participates
  in the program payments from the state to the child's account in a
  total amount equal to the sum of:
               (1)  the state average maintenance and operations
  revenue per student in average daily attendance for the preceding
  state fiscal year; and
               (2)  for a child who was a child with a disability at
  the time the child was initially determined to be eligible for
  enrollment in the program, the greater of:
                     (A)  $1,500; or
                     (B)  if applicable, the amount the school district
  in which the child was previously enrolled was entitled to receive
  for the child under Chapter 48 based on the child's participation in
  the district's special education program for the most recent school
  year in which the child participated in that program, as determined
  by commissioner rule, including any funding based on the intensity
  of service or service group for which the child qualified and
  excluding any amount attributable to:
                           (i)  the basic allotment under Section
  48.051 for time the child spent in a general education setting; or
                           (ii)  the allotment under Section 48.101.
         (b)  Any money remaining in a 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.
         (c)  The parent of a child participating in the program is
  entitled to make payments for the expenses of educational programs,
  services, and products using money other than money in the child's
  account.
         (d)  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.
         (e)  Payments received under this subchapter do not
  constitute taxable income to a parent of a child participating in
  the program, unless otherwise provided by federal law.
         (f)  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, an approved educational
  assistance organization shall make semiannual payments to the
  account of each child participating in the program served by the
  organization in equal amounts on or before the first day of July and
  January.
         (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)  Not later than the first day of the month preceding the
  start of each quarter, each approved educational assistance
  organization shall submit to the comptroller in the form prescribed
  by comptroller rule an estimate of the organization's costs of
  administering the program for that quarter.
         (d)  Each quarter, the comptroller shall disburse from money
  appropriated for the program to each approved educational
  assistance organization the amount necessary to cover the
  organization's costs of administering the program for that quarter,
  calculated as provided by Subsection (e). The total amount
  disbursed to approved educational assistance organizations under
  this subsection for a state fiscal year may not exceed five percent
  of the amount appropriated for purposes of this subchapter for that
  fiscal year.
         (e)  Subject to the limitation under Subsection (d), the
  amount of an approved educational assistance organization's
  disbursement under that subsection is the lesser of:
               (1)  the amount of the organization's estimate
  submitted under Subsection (c); or
               (2)  the product of the total amount to be disbursed and
  the average percentage of program participants served by the
  organization during the preceding quarter.
         (f)  On or before the first day of October and February, an
  approved educational assistance organization shall:
               (1)  verify with the agency that each child
  participating in the program 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 child participating in the program is 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.
         (g)  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 approved education-related
  expenses from the child's account have been completed, the child's
  account shall be closed and any remaining money returned to the
  comptroller for deposit in the program fund.
         (h)  Each quarter, any interest or other earnings
  attributable to money held by an approved 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)  Subject to Subsection (b), the
  state auditor:
               (1)  shall audit the comptroller and each approved
  educational assistance organization with respect to the program's
  operation at least once each state fiscal biennium; and
               (2)  may audit accounts to ensure compliance with this
  subchapter.
         (b)  Work performed under this section by the state auditor
  is subject to approval by the legislative audit committee for
  inclusion in the audit plan under Section 321.013(c), Government
  Code.
         Sec. 29.364.  SUSPENSION OF ACCOUNT. (a) An approved
  educational assistance organization shall suspend the account of a
  program participant who fails to remain in good standing by
  complying with applicable law or a requirement of the program.  Not
  later than the fifth business day after the date on which the
  organization suspends an account, the organization shall notify the
  comptroller that the account has been suspended.
         (b)  On suspension of an account under Subsection (a), the
  approved educational assistance organization shall notify the
  program participant 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 participant has 30 business days to respond and take any
  corrective action required to comply with this subchapter.
         (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 program
  participant; or
               (3)  order full reinstatement of the account.
         (d)  A payment to a preapproved education service provider or
  vendor of educational products for an approved education-related
  expense initiated under Section 29.360(b) before an account is
  suspended under this section may not be denied on the basis of the
  suspension.
         Sec. 29.365.  TUITION AND FEES; REFUND PROHIBITED. (a) An
  education service provider or vendor of educational products may
  not charge a child participating in the program 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 by an approved educational
  assistance organization, education service provider, vendor of
  educational products, or program participant, the comptroller
  shall notify the appropriate local county or district attorney with
  jurisdiction over the principal place of business of the
  organization, provider, or vendor or the residence of the program
  participant, as applicable. 
         Sec. 29.367.  SPECIAL EDUCATION NOTICE. (a) An approved
  educational assistance organization shall post on the
  organization's Internet website 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 program participant enrolls shall provide to the child's
  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,
  including an action taken by an approved educational assistance
  organization, 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 parent of a child participating or seeking to
  participate in the program, the school district or open-enrollment
  charter school that the child attends or previously attended 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 requested,
  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 the state auditor and an approved
  educational assistance organization any information available to
  the agency, district, or school 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 state auditor and 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)  An approved educational assistance organization or an
  education service provider or vendor of educational products that
  obtains information regarding a child participating in the program:
               (1)  shall comply with:
                     (A)  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); and
                     (B)  state law regarding the confidentiality of
  student educational information; and
               (2)  may not sell or otherwise distribute information
  regarding a child participating in the program.
         Sec. 29.370.  GIFTS, GRANTS, AND DONATIONS. The comptroller
  and an approved 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
  contract with one or more qualified researchers employed by a
  higher education provider to compile and publish program data and
  produce an annual longitudinal report regarding:
               (1)  the number of program applications received,
  accepted, and waitlisted, 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, availability, and quality;
               (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 the researcher, the number and
  percentage of children who participated in the program and, 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 the 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 program data and the report, a researcher
  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 the five most recent school years
  and include, subject to Subsection (b)(2), the data analyzed and
  methodology used.
         (d)  The comptroller and each approved educational
  assistance organization shall post the report on the comptroller's
  and organization's respective Internet websites.
         (e)  To the extent consistent with state and federal law
  regarding the confidentiality of student educational information,
  the program data and report are public information under Chapter
  552, Government Code.
         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; JUDICIAL REVIEW. (a) A program
  participant may appeal to the comptroller an administrative
  decision made by the comptroller or an approved educational
  assistance organization under this subchapter, including a
  decision regarding eligibility, allowable expenses, or the
  participant's removal from the program.
         (b)  A program participant, education service provider, or
  vendor of educational products who is adversely affected or
  aggrieved by a decision made by the comptroller or an approved
  educational assistance organization under this subchapter may file
  a suit challenging the decision in a district court in the county in
  which the program participant resides or the provider or vendor has
  its principal place of business, as applicable.
         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) to read as follows:
         (b-1)  The comptroller is entitled to obtain criminal
  history record information maintained by the department about a
  person who is a private tutor, a therapist, or an employee of a
  teaching service, school, or other education service provider or
  vendor of educational products 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.
         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 February 15, 2024, the
  comptroller of public accounts shall adopt rules as provided by
  Section 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 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.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect on the 91st day after the last day of the
  legislative session.