Buckley Voucher Bill Frees Providers From Admissions And Curriculum Rules

The text as introduced · 7,482 words

89R14082 MM-F

By: Buckley
H.B. No. 3

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. 29.3521. AMOUNT OF APPROPRIATION. The amount of money

appropriated for a state fiscal biennium for purposes of the

program may not exceed the greater of:

(1) the amount of money appropriated for purposes of

the program for the preceding biennium; or

(2) the amount of money necessary for the biennium to

provide the amount specified under Section 29.361 for each

participating child and each child on the waiting list maintained

by the comptroller under Section 29.356(f) on the January 1

preceding the biennium.

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 wholly or partly, 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 shall establish cybersecurity

requirements for certified educational assistance organizations,

including the implementation of best practices developed under

Section 2054.5181, Government Code.

(d) The comptroller may certify not more than five

educational assistance organizations to support the administration

of the program, including by:

(1) administering wholly or partly:

(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.

(e) 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 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

date on which:

(1) the child graduates from high school;

(2) 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 child enrolls in a school district or

open-enrollment charter school in a manner in which the child will

be counted toward the district's or school's average daily

attendance for purposes of the allocation of funding under the

Foundation School Program; or

(4) 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 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,

prioritizing applicants:

(1) in the following order:

(A) children to whom Paragraph (B) does not

apply; and

(B) children who previously ceased participation

in the program due to enrollment in a public school; and

(2) within each of the groups described by Subdivision

(1), as follows, as applicable:

(A) children with a disability who are members of

a household with a total annual income that is at or below 500

percent of the federal poverty guidelines;

(B) children who are members of a household with

a total annual income that is at or below 200 percent of the federal

poverty guidelines;

(C) children who are members of a household with

a total annual income that is above 200 percent of the federal

poverty guidelines and below 500 percent of the federal poverty

guidelines; and

(D) children who are members of a household with

a total annual income that is at or above 500 percent of the federal

poverty guidelines.

(c) For purposes of Subsection (b), a certified educational

assistance organization shall prioritize a participating child's

sibling who is eligible to participate in the program in the same

manner as the participating child.

(d) 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.

(e) 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.

(f) The comptroller shall create and maintain a waiting list

based on the priority categories described by Subsection (b) for

applicants if, during an application period, there are more

acceptable applications for admission than there are available

positions.

(g) 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.

(h) 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 (g). The organization may provide the

information electronically.

(i) 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.

(j) The agency shall provide to the comptroller the

information necessary to make the determinations required under

Subsection (b).

Sec. 29.357. PARTICIPATION IN PROGRAM. (a) 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)(2)(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.

(b) The administrator of an assessment instrument required

to be administered under Section 29.358(b)(2)(B) or other law shall

share with a parent the participating child's results on the

assessment instrument, including, if available, the participating

child's percentile rank. A child's results and rank on an

assessment instrument administered under this section are

confidential, are not subject to disclosure under Chapter 552,

Government Code, and may only be shared as necessary to fulfill the

requirements of this subchapter. In providing the results and rank

for an assessment instrument, the administrator shall ensure

compliance with state and federal law regarding the confidentiality

of student educational information, including the Family

Educational Rights and Privacy Act of 1974 (20 U.S.C. Section

1232g).

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) has previously been approved by the agency to

provide supplemental special education services under Subchapter

A-1 and remains in good standing with the agency;

(2) 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;

(3) for a public school, demonstrates:

(A) accreditation by the agency; and

(B) the ability to provide services or products

to participating children in a manner in which the children are not

counted toward the school's average daily attendance;

(4) 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;

(5) for a higher education provider, demonstrates

nationally recognized postsecondary accreditation; or

(6) notwithstanding Subdivision (2), for a private

provider serving children in prekindergarten or kindergarten,

demonstrates that the provider meets the requirements to be an

eligible private provider under Section 29.171.

(c) The comptroller may approve only an education service

provider or vendor of educational products that operates in this

state.

(d) 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

this section. The comptroller may not approve a provider or vendor

if the comptroller cannot verify the provider's or vendor's

eligibility for preapproval.

(e) Each applicant for approval under this section shall

submit to the comptroller documentation demonstrating that each

person employed by the applicant or provider who will interact with

a participating child is not identified as having engaged in

misconduct described by Section 22.093(c)(1)(A) or (B) using the

interagency reportable conduct search engine established under

Chapter 810, Health and Safety Code.

(f) The comptroller shall review the documentation for each

person described by Subsection (e). Each applicant for approval

under this section must provide the comptroller with any

information requested by the comptroller to enable the comptroller

to complete the review.

(g) 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.

(h) 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.

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) a private school;

(B) a higher education provider;

(C) an online educational course or program; or

(D) a program that provides training for an

industry-based credential;

(2) the purchase of textbooks or other instructional

materials or uniforms required by a private school, higher

education provider, or course in which the child is enrolled,

including purchases made through a third-party vendor of

educational products;

(3) 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;

(4) costs related to academic assessments;

(5) fees for services provided by a private tutor or

teaching service;

(6) 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;

(7) 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;

(8) costs of computer hardware or software and other

technological devices required by an education service provider or

vendor of educational products or 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 participating child's account that

year; and

(9) costs of breakfast or lunch provided to a child

during the school day by a private school.

(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 participating parent applies for

enrollment in the program under Section 29.356(a) and except as

provided by Subsections (b), (b-1), and (d) of this section, a

participating parent shall receive each school year that the

parent's child participates in the program payments from the state

to be held in trust for the benefit of the child from money

available under Section 29.353 to the child's account in an amount

equal to:

(1) 85 percent of the estimated statewide average

amount of state and local funding per student in average daily

attendance for the applicable school year; or

(2) for a child with a disability, subject to

Subsection (b), the sum of the amount described by Subdivision (1)

and the amount the school district in which the child would

otherwise be enrolled would be entitled to receive for the child

calculated based on the child's individualized education program,

as determined in accordance with Section 29.3615, and the

provisions of Chapter 48 that provide funding based on a child's

participation in a school district's special education program

under Subchapter A applicable for the school year preceding the

school year in which the child initially enrolls in the program.

(b) The amount provided to a child with a disability for a

school year under Subsection (a)(2) may not exceed $30,000.

(b-1) Notwithstanding Subsection (a), a participating child

who is a home-schooled student, as defined by Section 29.916(a)(1),

may not receive payments to the child's account under Subsection

(a) in an amount that exceeds $2,000 for a school year.

(c) In determining the estimated statewide average amount

of state and local funding per student in average daily attendance

under Subsection (a), the commissioner shall:

(1) to the extent practicable, make the determination

not later than January 15 preceding the applicable school year; and

(2) include projected state and local funding under

Chapters 48 and 49 and the amount the state is required to

contribute to the Teacher Retirement System of Texas under Section

825.404, Government Code, for the applicable school year.

(d) If a child enrolls in the program after the beginning of

a school year, the comptroller shall prorate the amount the

participating parent of the child receives under Subsection (a)

based on the date the child enrolls in the program.

(e) A participating parent must submit all requests for

payment from the account of the parent's child for expenses

incurred during a fiscal year to the comptroller not less than 90

days after the end of that fiscal year.

(f) 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.

(g) A participating parent may make payments for the

expenses of educational programs, services, and products not

covered by money in the account of the parent's child.

(h) A payment under Subsection (a) may not be financed using

federal money or money from the available school fund or the state

instructional materials and technology fund.

(i) Payments received under this subchapter do not

constitute taxable income to a participating parent, unless

otherwise provided by federal or another state's law.

(j) On dates consistent with satisfying the application

deadlines established under Section 29.356(a), the agency shall

calculate and report to the comptroller the amount specified under

Subsection (a) for each participating child.

Sec. 29.3615. INDIVIDUALIZED EDUCATION PROGRAMS;

EVALUATIONS. (a) The parent of a child who is not enrolled in a

school district or open-enrollment charter school may request that

a district or school conduct a full individual and initial

evaluation of the child for purposes of determining the child's

eligibility for special education services under Subchapter A.

(b) A school district or open-enrollment charter school

that receives a request under this section shall conduct a full

individual and initial evaluation in accordance with Section 29.004

not later than the 45th day after the date the district or school

receives the request.

(c) If a school district or open-enrollment charter school

determines based on an evaluation conducted under Subsection (b)

that a child is eligible for special education services, the

district or school shall develop an individualized education

program for the child in accordance with Section 29.005.

(d) At the agency's request, a school district or

open-enrollment charter school shall provide to the agency a

child's individualized education program developed under Section

29.005 or this section.

(e) The agency may adopt rules as necessary to implement

this section, including rules regarding an appeal of a

determination of eligibility for special education services and

services to be provided as described in an individualized education

program.

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(a)

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 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 service

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 a state actor on the basis of receiving that

money.

(b) A state agency or state official may not adopt a rule or

take other governmental action related to the program and a

certified educational assistance organization may not take action

that:

(1) limits or imposes requirements that are contrary

to the religious or institutional values or practices of an

education service provider, vendor of educational products, or

program participant; or

(2) limits an education service provider, vendor of

educational products, or program participant from freely:

(A) determining the methods or curriculum to

educate students;

(B) determining admissions and enrollment

practices, policies, and standards;

(C) modifying or refusing to modify the

provider's, vendor's, or participant's religious or institutional

values or practices, operations, conduct, policies, standards,

assessments, or employment practices based on the provider's,

vendor's, or participant's religious values or practices; or

(D) exercising the provider's, vendor's, or

participant's religious or institutional practices as the

provider, vendor, or participant determines.

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) A 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(a)(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 an employee of an 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.

(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. Section 810.002, Health and Safety Code, is

amended to read as follows:

Sec. 810.002. APPLICABILITY. This chapter applies to the

following state agencies:

(1) the Department of Family and Protective Services;

(2) the Health and Human Services Commission;

(3) the Texas Education Agency; [ and ]

(4) the Texas Juvenile Justice Department ; and

(5) the comptroller of public accounts .

SECTION 6. Subchapter J, Chapter 29, Education Code, as

added by this Act, applies beginning with the 2026-2027 school

year.

SECTION 7. (a) Not later than May 15, 2026, the comptroller

of public accounts shall adopt rules as provided by Sections

29.356(d) 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 2026-2027 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 8. (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, 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.

SECTION 9. 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 10. 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.