89R3428 RDR-F
 
  By: Bernal H.B. No. 567
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to school district grace period policies and the provision
  of meals to public school students with insufficient balances on
  prepaid meal cards or in meal accounts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 33.908, Education Code, is amended to
  read as follows:
         Sec. 33.908.  GRACE PERIOD POLICY FOR EXHAUSTED OR
  INSUFFICIENT MEAL CARD OR ACCOUNT BALANCE. (a) In this section,
  "regular meal" means a meal for which a school district ordinarily
  receives reimbursement under the national free or reduced-price
  lunch program established under 42 U.S.C. Section 1751 et seq.
         (b)  The board of trustees of a school district that allows
  students to use a prepaid meal card or account to purchase meals
  served at schools in the district shall adopt a grace period policy
  regarding the use of the cards or accounts. The policy:
               (1)  must allow a student whose meal card or account
  balance is exhausted or insufficient to continue, for a period
  determined by the board of at least one week, to purchase regular
  meals by:
                     (A)  accumulating a negative balance on the
  student's card or account; or
                     (B)  otherwise receiving an extension of credit
  from the district;
               (2)  must require the district to make at least three
  attempts during the period described by Subdivision (1) to
  privately:
                     (A)  notify the parent of or person standing in
  parental relation to the student that the student's meal card or
  account balance is exhausted, including by sending home with the
  student in an unmarked envelope a written notice of a negative
  balance or other amount due and an application for free or
  reduced-price meals;
                     (B)  make arrangements with the parent or other
  person for payment of negative balances or amounts otherwise due,
  including through use of a payment plan; and
                     (C)  assist the parent or other person in
  completing an application on behalf of the student for free or
  reduced-price meals, if it is determined that the student may be
  eligible for free or reduced-price meals;
               (3)  may not permit the district to charge a fee or
  interest in connection with meals purchased under Subdivision (1);
  and
               (4)  may permit the district to set a schedule for
  repayment on the account balance or other amount due if the district
  is unable to set a repayment schedule by agreement through efforts
  required under Subdivision (2) [as part of the notice to the parent
  or person standing in parental relation to the student].
         (c)  After expiration of the period described by Subsection
  (b)(1) and completion of duties required under Subsection (b)(2),
  the school district shall continue to provide to the student
  regular meals as described by Subsection (b)(1) at no cost to the
  student.
         (d)  If a school district is unable to obtain payment
  sufficient to cover the negative balance or extension of credit on a
  student's meal card or account from the student's parent or a person
  standing in parental relation to the student before the end of the
  school year, the district:
               (1)  may apply toward the negative balance or credit
  private donations solicited for that purpose and maintained in a
  separate district account;
               (2)   shall provide the parent or other person with an
  application on behalf of the student for free or reduced-price
  meals, if the district determines that the student may be eligible
  for free or reduced-price meals in the subsequent school year; and
               (3)  may not transfer a negative balance on a student's
  meal card or account to the meal card or account held by the student
  in a subsequent school year.
         (e)  A school district may not require a student to repeat a
  grade level, prevent a student from graduating, withhold a diploma
  from a student, or prohibit a student from participating in
  school-related activity due to a negative balance or extension of
  credit on the student's meal card or account.
         (f)  A school district may not publicly identify a student
  with a negative balance or extension of credit on a meal card or
  account and must implement an action authorized under this section
  in a manner that does not stigmatize or cause embarrassment to a
  student.
         SECTION 2.  This Act applies beginning with the 2025-2026
  school year.
         SECTION 3.  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, 2025.