|
|
|
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. 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) "Child with a disability" means a child who is |
|
eligible to participate in a school district's special education |
|
program under Section 29.003. |
|
(3) "Curriculum" means a complete course of study for |
|
a particular content area or grade level. |
|
(4) "Financial institution" means a bank, credit |
|
union, savings bank, or savings and loan association organized |
|
under the laws of this state, another state, or federal law that has |
|
its main office or a branch office in this state. The term does not |
|
include any institution the deposits of which are not insured by the |
|
Federal Deposit Insurance Corporation or the National Credit Union |
|
Administration. |
|
(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) "Postsecondary educational institution" means: |
|
(A) an institution of higher education or a |
|
private or independent institution of higher education as defined |
|
by Section 61.003; or |
|
(B) a career school or college as defined by |
|
Section 132.001. |
|
(7) "Program" means the education savings account |
|
program established under this subchapter. |
|
(8) "Program participant" means a child and a parent |
|
of a child who has been accepted into the program. |
|
Sec. 29.352. ESTABLISHMENT OF PROGRAM. (a) The |
|
commissioner shall establish and administer an education savings |
|
account program to provide funding for certain education-related |
|
expenses of eligible children. |
|
(b) The agency may contract with a private organization to |
|
administer the program. |
|
Sec. 29.353. ELIGIBLE CHILD. (a) A child is eligible to |
|
participate in the program if the child is eligible to attend a |
|
public school under Section 25.001. |
|
(b) A child who establishes eligibility under this section |
|
may continue participating 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; or |
|
(4) the date on which the child is declared ineligible |
|
for the program by the commissioner under this subchapter. |
|
(c) Notwithstanding Subsection (b), the agency shall |
|
establish procedures for, in the least disruptive manner possible: |
|
(1) a child participating in the program to cease |
|
participation and enroll in a public school, including an |
|
open-enrollment charter school; and |
|
(2) a child who previously participated in the program |
|
and subsequently enrolled in a public school, including an |
|
open-enrollment charter school, to resume participation in the |
|
program. |
|
Sec. 29.354. APPLICATION FOR PROGRAM. (a) A parent of an |
|
eligible child may apply on behalf of the child for participation in |
|
the program. The agency shall allow for the submission of |
|
applications on a rolling basis. |
|
(b) The agency shall by rule create an application form for |
|
the program and make the application form readily available to |
|
interested parents through various sources, including the agency's |
|
Internet website. |
|
(c) The agency shall provide to each applicant a publication |
|
that describes the operation of the program, including: |
|
(1) expenses allowed under the program under Section |
|
29.356; |
|
(2) a description of the responsibilities of program |
|
participants and the duties of the agency under this subchapter; |
|
and |
|
(3) a statement regarding the rights afforded to a |
|
child with a disability who is parentally placed in a private school |
|
under the Individuals with Disabilities Education Act (20 U.S.C. |
|
Section 1400 et seq.). |
|
Sec. 29.355. PARTICIPATION IN PROGRAM. (a) To receive |
|
funding under the program, a parent of an eligible child must agree |
|
in writing to: |
|
(1) ensure that the student will receive an education |
|
that includes, at a minimum, the subjects of reading, language, |
|
mathematics, social studies, and science; |
|
(2) spend funds received through the program only for |
|
expenses allowed under Section 29.356; |
|
(3) notify the agency as soon as practicable if the |
|
child enrolls in a public school, including an open-enrollment |
|
charter school; and |
|
(4) inform the agency if the child graduates from high |
|
school. |
|
(b) The agency shall provide annually to each program |
|
participant the publication provided to applicants under Section |
|
29.354. |
|
Sec. 29.356. APPROVED PROVIDERS AND EDUCATION-RELATED |
|
EXPENSES. (a) The commissioner shall by rule establish a process |
|
for the preapproval of education service providers and vendors of |
|
educational products for participation in the program. The |
|
commissioner shall make the list of preapproved providers and |
|
vendors readily available to applicants for the program and to |
|
program participants. |
|
(b) A payment from an account may be made only to a |
|
preapproved education service provider or vendor of educational |
|
products. |
|
(c) Funds received under the program may be used only for |
|
the following expenses incurred by a program participant: |
|
(1) tuition and fees at a private school or |
|
postsecondary educational institution or for a nonpublic online |
|
educational course or program; |
|
(2) the purchase of textbooks or other instructional |
|
materials; |
|
(3) payments for the purchase of a curriculum; |
|
(4) fees for services provided by a private tutor or |
|
teaching service; |
|
(5) for a child with a disability, fees for |
|
educational therapies or services provided by a practitioner, |
|
provider, paraprofessional, or educational aide; |
|
(6) computer hardware and software and other |
|
technological devices primarily used for educational purposes; |
|
(7) fees for a nationally norm-referenced achievement |
|
test or examination, an advanced placement test or similar |
|
examination, or any examination related to college or university |
|
admission and a preparatory course for such a test or examination; |
|
(8) services provided by a public school, including an |
|
open-enrollment charter school, in a manner in which the child is |
|
not counted toward the school's average daily attendance; |
|
(9) uniforms required by a school or institution |
|
described by Subdivision (1) in which the child is enrolled; |
|
(10) tuition and fees for a summer education program |
|
or specialized after-school education program; |
|
(11) 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 |
|
(12) any other expense approved by the agency. |
|
(d) Any funds remaining in a program participant's account |
|
on the child's graduation from high school may be used by the child |
|
for tuition, fees, textbooks, and other instructional materials to |
|
attend or take courses from a postsecondary educational |
|
institution. |
|
Sec. 29.357. AMOUNT OF PAYMENT; FINANCING. (a) A child |
|
participating in the program is entitled to receive annual funding |
|
from the Foundation School Program equal to the state and local |
|
maintenance and operations revenue to which the school district the |
|
child would otherwise attend would be entitled to receive for the |
|
child under Chapter 48 if the child were enrolled in the district. |
|
(b) The parent of a child participating in the program may |
|
make payments for the expenses of educational programs, services, |
|
and products not covered by funds in the child's account. |
|
(c) A payment under the program may not be financed using |
|
money appropriated from the available school fund. |
|
Sec. 29.358. ADMINISTRATION OF ACCOUNTS. (a) The agency |
|
shall contract with a financial institution to establish and manage |
|
an account for each child participating in the program. A program |
|
participant must be able to access the participant's account by |
|
using an online payment service. |
|
(b) The commissioner shall make quarterly payments to each |
|
program participant's account in equal amounts on or before dates |
|
established by commissioner rule. |
|
(c) The commissioner may deduct an amount from each |
|
quarterly payment to a program participant's account to cover the |
|
agency's cost of administering the program. The amount deducted |
|
may not exceed three percent of the payment. |
|
(d) A child's account is closed and any remaining funds are |
|
returned to the state on the earliest of the following dates: |
|
(1) the date on which the child graduates from a |
|
baccalaureate degree program at a postsecondary educational |
|
institution; |
|
(2) the child's 26th birthday; or |
|
(3) if the child has not enrolled in a postsecondary |
|
educational institution within the four-year period following the |
|
child's graduation from high school, the fourth anniversary of the |
|
date on which the child graduates from high school. |
|
Sec. 29.359. AUDITING OF ACCOUNT. (a) The agency shall |
|
audit or contract with a private entity to audit accounts as |
|
necessary to ensure compliance with applicable law and the |
|
requirements of the program. At a minimum, the agency shall provide |
|
for an annual random audit of a specified number of accounts |
|
determined by the commissioner. |
|
(b) In auditing an account, the agency or private entity |
|
with which the agency contracts under Subsection (a) may require |
|
that a program participant provide further information and |
|
documentation regarding any payment from the participant's |
|
account. |
|
Sec. 29.360. SUSPENSION OF ACCOUNT. (a) The commissioner |
|
by rule shall adopt procedures for the suspension and closure of an |
|
account on a finding that a program participant has failed to comply |
|
with applicable law or a requirement of the program or has |
|
substantially misused funds received under the program. |
|
(b) The procedures must allow for: |
|
(1) a program participant to be declared ineligible to |
|
participate in the program on a finding of intentional misconduct; |
|
and |
|
(2) an appeal to the commissioner of a finding under |
|
Subdivision (1). |
|
Sec. 29.361. REFUND PROHIBITED. An education service |
|
provider or a vendor of educational products receiving funds |
|
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 funds paid or owed by the |
|
participant to the provider or vendor. |
|
Sec. 29.362. REFERRAL TO THE ATTORNEY GENERAL. (a) If the |
|
agency obtains evidence of fraudulent use of an account, the |
|
commissioner may refer the case to the attorney general for |
|
investigation. |
|
(b) With the consent of the appropriate local county or |
|
district attorney, the attorney general has concurrent |
|
jurisdiction with the consenting local prosecutor to prosecute an |
|
offense referred to the attorney general under Subsection (a). |
|
Sec. 29.363. EDUCATION SERVICE PROVIDER AND VENDOR |
|
ACCOUNTABILITY. (a) The agency may declare an education service |
|
provider or a vendor of educational products ineligible to |
|
participate in the program if, after notice and hearing, the agency |
|
finds that the provider or vendor has: |
|
(1) failed to comply with applicable law or the |
|
requirements of the program; or |
|
(2) failed to provide a child participating in the |
|
program with promised educational services or products. |
|
(b) An education service provider or vendor of educational |
|
products may appeal to the commissioner a finding under Subsection |
|
(a). |
|
(c) If an education service provider or vendor of |
|
educational products is declared ineligible to participate in the |
|
program under this section, the agency shall: |
|
(1) notify program participants of the declaration as |
|
soon as practicable; and |
|
(2) reject any account expenditure made to the |
|
education service provider or vendor of educational products after |
|
the date of the declaration. |
|
Sec. 29.364. EDUCATION SERVICE PROVIDER AND VENDOR |
|
AUTONOMY. (a) An education service provider or vendor of |
|
educational products that receives funds distributed under the |
|
program is not an agent of the state or federal government. |
|
(b) The program does not expand the regulatory authority of |
|
the state or any school district to impose any additional |
|
regulation on an education service provider or vendor of |
|
educational products except those reasonably necessary to enforce |
|
the program as provided by this subchapter. |
|
(c) An education service provider or vendor of educational |
|
products may not be required to modify the provider's or vendor's |
|
creed, practices, admissions policies, or curriculum, as |
|
applicable, to receive money distributed under the program. |
|
(d) In any proceeding challenging a rule adopted by a state |
|
agency or officer under this subchapter, the agency or officer has |
|
the burden of proof to establish that the rule: |
|
(1) is necessary to implement or enforce the program |
|
as provided by this subchapter; and |
|
(2) does not impose an undue burden on a program |
|
participant or an education service provider or vendor of |
|
educational products that receives or seeks to receive money |
|
distributed under the program. |
|
Sec. 29.365. STUDENT RECORDS AND INFORMATION. On request |
|
by the parent of a child participating 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. |
|
Sec. 29.366. PARENT REVIEW COMMITTEE. (a) A parent review |
|
committee is established to assist the commissioner in: |
|
(1) determining whether certain expenses are allowed |
|
under Section 29.356; |
|
(2) reviewing an appeal of the agency's decision to |
|
declare an education service provider or vendor of educational |
|
products ineligible to participate in the program under Section |
|
29.363; and |
|
(3) implementing and administering the program. |
|
(b) The committee consists of seven members appointed by the |
|
commissioner. Each member must be a parent of a child participating |
|
in the program. In making appointments to the committee, the |
|
commissioner shall ensure that parents from at least four counties |
|
are included. |
|
(c) A member of the committee serves a one-year term at the |
|
pleasure of the commissioner and may be reappointed. |
|
(d) The commissioner or the commissioner's designee is the |
|
nonvoting chair of the committee. |
|
Sec. 29.367. GIFTS, GRANTS, AND DONATIONS. The |
|
commissioner may solicit and accept gifts, grants, and donations |
|
from any public or private source for the program. |
|
Sec. 29.368. RIGHT TO INTERVENE IN CIVIL ACTION. (a) A |
|
program participant 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 wishing to |
|
intervene in the action file a joint brief. A program participant |
|
may not be required to join a brief filed on behalf of the state or a |
|
state agency. |
|
Sec. 29.369. RULES. The commissioner shall adopt rules as |
|
necessary to implement this subchapter. The rules may include: |
|
(1) establishing a telephonic or online anonymous |
|
fraud reporting service; |
|
(2) requiring a surety bond from an education service |
|
provider or vendor of educational products that receives more than |
|
$100,000 per year from funds distributed under the program; or |
|
(3) providing for an education service provider or |
|
vendor of educational products to refund to a program participant's |
|
account payments made from that account. |
|
SECTION 2. This Act applies beginning with the 2023-2024 |
|
school year. |
|
SECTION 3. Not later than 90 days after the effective date |
|
of this Act, the commissioner of education shall adopt rules |
|
necessary to implement the education savings account program under |
|
Subchapter J, Chapter 29, Education Code, as added by this Act. |
|
SECTION 4. 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 September 1, 2023. |