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  By: Simmons H.B. No. 1335
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of an education savings account
  program for certain children with special needs and other
  educational disadvantages.
         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:
                     (A)  eligible to participate in a school
  district's special education program under Section 29.003; or
                     (B)  covered by Section 504, Rehabilitation Act of
  1973 (29 U.S.C. Section 794).
               (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, the laws of 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 enrolled in the program.
         Sec. 29.352.  PURPOSES. The purposes of the education
  savings account program are to:
               (1)  improve public schools and overall academic
  performance;
               (2)  promote efficiency;
               (3)  promote and preserve the liberties and rights of
  the people; and
               (4)  increase parental options.
         Sec. 29.353.  ESTABLISHMENT OF PROGRAM. (a)  The
  comptroller shall establish and administer an education savings
  account program to provide funding for certain education-related
  expenses of eligible children.
         (b)  The comptroller, with cooperation from the agency,
  shall ensure that information about the program is readily
  available to the public through various sources, including the
  comptroller's Internet website.  The comptroller shall make
  information about the program available to parents of an eligible
  child through the comptroller's Internet website.
         Sec. 29.354.  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 and:
               (1)  is a child with a disability;
               (2)  is in the conservatorship of the Department of
  Family and Protective Services;
               (3)  has been:
                     (A)  on or after September 1, 2017, found by a
  school district to be a victim of bullying, as defined by Section
  37.0832; or
                     (B)  found by a court or jury to have engaged in
  truant conduct under Section 65.101, Family Code;
               (4)  has dropped out of school or is a student at risk
  of dropping out of school, as defined by Section 29.081, other than
  a student described by Section 29.081(d)(12);
               (5)  is a homeless child or youth as described by 42
  U.S.C. Section 11434a; or
               (6)  has been, as determined by the comptroller, a
  victim of an offense described by any of the following sections of
  the Penal Code:
                     (A)  Section 20A.02 (Trafficking of Persons);
                     (B)  Section 20A.03 (Continuous Trafficking of
  Persons);
                     (C)  Section 21.02 (Continuous Sexual Abuse of
  Young Child or Children);
                     (D)  Section 21.11 (Indecency with a Child);
                     (E)  Section 22.011 (Sexual Assault);
                     (F)  Section 22.021 (Aggravated Sexual Assault);
  or
                     (G)  Section 43.05 (Compelling Prostitution).
         (b)  A child who establishes eligibility under this section
  may participate in the program until the earliest of the following
  dates:
               (1)  the date on which the child no longer meets the
  eligibility requirements under Subsection (a);
               (2)  the date that is three months after the date on
  which the child either:
                           (i)  graduates from high school; or,
                           (ii)  receives a high school equivalency
  certificate under Education Code Section 7.111;
               (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 comptroller under this subchapter.
         (c)  Notwithstanding Subsection (b), the comptroller shall
  establish guidelines 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. 29.355.  ENROLLMENT IN PROGRAM.  (a)  A parent of an
  eligible child may enroll the child in the program for the following
  school year.
         (b)  The comptroller shall by rule create an enrollment form
  for the program and make the enrollment form readily available to
  interested parents through various sources, including the
  comptroller's Internet website.
         (c)  The comptroller shall work with the agency to include
  necessary information in the enrollment form including resident
  school district, last public school attended, information
  necessary to identify the student in district and agency
  information systems, and eligibility for free and reduced lunch.
         (d)  The comptroller shall provide to each parent who submits
  an enrollment form a publication that describes the operation of
  the program, including:
               (1)  expenses allowed under the program under Section
  29.357;
               (2)  expense reporting requirements; and
               (3)  a description of the responsibilities of program
  participants and the duties of the comptroller under this
  subchapter.
         Sec. 29.356.  PARTICIPATION IN PROGRAM.  (a)  To receive
  funding under the program, a parent of an eligible child must agree
  to:
               (1)  spend funds received through the program only for
  expenses allowed under Section 29.357;
               (2)  notify the comptroller if the child enrolls in a
  public school, including an open-enrollment charter school, not
  later than the 30th day after the date of enrollment; and
               (3)  inform the comptroller if the child graduates from
  high school.
         (b)  The parent of a child participating in the program is
  the trustee of the child's account.
         (c)  The comptroller shall provide annually to each program
  participant the publication provided under Section 29.355(c).
         Sec. 29.357.  APPROVED EDUCATION-RELATED EXPENSES.  (a)  
  Funds received under the program may be used only for the following
  expenses incurred by a program participant:
               (1)  tuition and fees:
                     (A)  at a private school accredited by an
  organization that is recognized by the Texas Private School
  Accreditation Commission;
                     (B)  at a postsecondary educational institution
  for courses eligible for the College Credit Program at Education
  Code Sec. 28.009 for which the student may receive high school
  credit based on the written agreement drawn up by the partner
  institutions; or
                     (C)  for an online educational course or program
  through the State Virtual School Network as provided at Education
  Code Chapter 30A for which the student may earn primary or secondary
  school credit;
               (2)  the purchase of textbooks or other instructional
  materials;
               (3)  payments for the purchase of a curriculum;
               (4)  fees for classes or other educational services
  provided by a public school, if the classes or services do not
  qualify the child to be included in the school's average daily
  attendance;
               (5)  fees for services provided by a private tutor or
  teaching service;
               (6)  for a child with a disability, 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 (including Medicaid and the
  Children's Health Insurance Program) or by any private insurance
  that the child is enrolled in at the time of receiving the
  therapies or services;
               (7)  costs of computer hardware and software and other
  technological devices which must have a clear ability to be used for
  educational purposes, not to exceed in any year 10 percent of the
  total amount paid to the program participant's account that year;
               (8)  fees for a nationally norm-referenced achievement
  test or examination, an assessment instrument adopted by the agency
  under Section 39.023, an advanced placement test or similar
  examination, or any examination related to college or university
  admission;
               (9)  contributions to a qualified tuition program
  established for the child that meets the requirements of Section
  529 or 530, Internal Revenue Code of 1986, not to exceed in any year
  25 percent of the total amount paid to the program participant's
  account that year; and
               (10)  fees for the management of the participant's
  account charged by a financial institution.
         (b)  Expenses allowed under Subsection (a) do not include
  expenses for:
               (1)  consumable supplies, including paper, pens,
  pencils, folders, and notebooks;
               (2)  food; or
               (3)  before-school or after-school child care and child
  care during school holidays and vacations.
         (c)  An education service provider or vendor of educational
  products must provide a program participant with a receipt for each
  expense allowed under Subsection (a) charged by the provider or
  vendor to the participant.
         (d)  The content or religious nature of a product or service
  may not be considered in determining whether a payment for the
  product or service is an expense allowed under Subsection (a).
         (e)  A finding that a program participant used funds
  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 expense that is allowed under that
  subsection.
         Sec. 29.358.  AMOUNT OF PAYMENT; FINANCING.  (a)  A parent of
  an eligible child as described in Section 29.354 shall receive each
  year that the child participates in the program a payment from the
  Foundation School Program to the child's account in an amount that
  is equal to 90 percent of the greater of, presuming 100% attendance
  rate:
               (1)  Funding the students would have generated in both
  state and local funds at their resident district excluding
  Subchapter C, Chapter 42 except for Sections 42.151, 42.152 and
  42.160 which shall be based on funding factors for which the student
  qualified from the most recent year in attendance at a public school
  unless enrollment in the program under this subchapter indicates a
  change in eligibility status for those funding sections; or
               (2)  Funding the student would have generated in both
  state and local funds at their resident district excluding
  Subchapter C, Chapter 42 except for Sections 42.151, 42.152 and
  42.160 which shall be based on the average at the resident district
  of each special allotment under Sections 42.151 and 42.152, for
  which the student's enrollment in the program under this subchapter
  indicates eligibility.
         (b)  If the child is eligible to participate based on more
  than one group listed in Section 29.354(a), the payment under this
  subsection is based on the group that would result in the greatest
  payment amount.
         (c)  Any funds remaining in a child's account at the end of a
  fiscal year are carried forward to the next fiscal year unless
  another provision of this subchapter mandates the closure of the
  account.
         (d)  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.
         (e)  A payment under the program may not be financed using
  federal funds or money appropriated from the available school
  fund.
         Sec. 29.359.  ADMINISTRATION OF ACCOUNTS.  (a)  The
  comptroller may contract with one or more financial institutions 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 a debit card or online or electronic
  transfer payment service.
         (b)  The comptroller shall make quarterly payments to each
  program participant's account in equal amounts on or before the
  15th day of August, November, February, and May.
         (c)  The comptroller may deduct an amount from each quarterly
  payment to a program participant's account to cover the
  comptroller's cost of administering the program.  The amount
  deducted may not exceed three percent of the payment.
         (d)  Within the first month following the end of each fiscal
  year, the comptroller shall reconcile payments made to and from all
  accounts under the program.
         (e)  The comptroller shall coordinate as necessary to
  calculate annually the savings to the state from the implementation
  of the program.
         (f)  On the date on which a child ceases to participate in the
  program for any reason, the child's account is closed and any
  remaining funds are returned to the state for deposit in the
  foundation school fund.  This subsection does not affect a child's
  eligibility to resume participation in the program.
         (g)  The comptroller may contract with a private entity to
  administer all or any part of the program.
         Sec. 29.360.  RANDOM AUDITING OF ACCOUNTS.  (a)  The
  comptroller shall randomly audit, or contract with a private entity
  to randomly audit, accounts as necessary to ensure compliance with
  applicable law and the requirements of the program.
         (b)  In auditing an account, the comptroller or private
  entity may require that a program participant provide further
  information and documentation regarding any payment from the
  participant's account.
         (c)  The private entity shall report to the comptroller any
  violation of this subchapter or other relevant law found by the
  entity during an audit conducted under this section.
         Sec. 29.361.  SUSPENSION OF ACCOUNT.  (a)  The comptroller
  shall suspend the account of a program participant who fails to
  comply with applicable law or a requirement of the program,
  including a requirement under Section 29.356(a), or who
  substantially misuses funds received under the program.
         (b)  On suspension of an account under Subsection (a), the
  comptroller shall notify the participant in writing that the
  account has been suspended and that no further payments may be made
  from the account.  The notification must specify the grounds for the
  suspension and state that the participant has 10 business days to
  respond and take any corrective action required by the comptroller.
         (c)  On the expiration of the 10-day period under Subsection
  (b), the comptroller shall:
               (1)  order permanent closure of the suspended account
  and declare the participant ineligible for the program;
               (2)  order temporary reinstatement of the account,
  conditioned on the performance of a specified action by the
  participant; or
               (3)  order full reinstatement of the account.
         (d)  If a program participant's account is suspended or
  closed under this section, the comptroller may recover funds that
  were used for expenses not allowed under Section 29.357(a) from the
  participant or the entity that received the funds.
         Sec. 29.362.  TUITION AND FEES; REFUND PROHIBITED.  (a)  An
  education service provider may not charge a child participating in
  the program an amount greater than the standard amount charged for
  that service by the provider.
         (b)  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. 29.363.  REFERRAL TO ATTORNEY GENERAL.  (a)  If the
  comptroller obtains evidence of fraudulent use of an account, the
  comptroller 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. 29.364.  PROVIDER ACCOUNTABILITY. (a)  A private
  school must be accredited by an organization that is recognized by
  the Texas Private School Accreditation Commission to receive funds
  distributed under the program.
         (b)  A private tutor or teaching service and a practitioner
  or provider who provides educational therapies or services for a
  child with a disability must be licensed or accredited by a regional
  or national accrediting organization to receive funds distributed
  under the program.
         Sec. 29.365.  PROGRAM PARTICIPANT, 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)  Except as provided by this subchapter, the comptroller,
  the agency, the State Board of Education, any other state agency, or
  any school district may not:
               (1)  regulate the educational program of an education
  service provider or vendor of educational products that receives
  funds distributed under the program; or
               (2)  exercise control or supervision over a program
  participant or an education service provider or vendor of
  educational products that receives funds distributed under the
  program.
         (c)  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.
         (d)  A private school may not be required to modify the
  school's creed, practices, admissions policies, curriculum,
  performance standards, or assessments to receive funds distributed
  under the program.
         (e)  A private school voluntarily selected by a parent for
  the parent's child to attend or a parent who homeschools the
  parent's child, with or without governmental assistance, may not be
  required to comply with any state law or rule governing the
  applicable educational program that was not in effect on January 1,
  2017.
         (f)  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 funds
  distributed under the program.
         Sec. 29.366.  STUDENT RECORDS. 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. 29.367.  REPORTING NUMBER OF PARTICIPANTS.  (a)  Not
  later than October 1 of each year, the comptroller shall notify the
  commissioner and the Legislative Budget Board of the number of
  eligible children likely to participate in the program,
  disaggregated by the school district or open-enrollment charter
  school the eligible children would otherwise attend.
         (b)  Not later than March 1 of each year, the comptroller
  shall provide final information to the commissioner and the
  Legislative Budget Board regarding the number of children
  participating in the program, disaggregated in the same manner as
  the initial information under Subsection (a).
         Sec. 29.368.  ANNUAL SURVEY. The comptroller may conduct an
  annual parental satisfaction survey that asks each parent of a
  child participating in the program to express:
               (1)  the parent's overall level of satisfaction with
  the program; and
               (2)  the parent's opinion on specified topics and
  issues relevant to the effectiveness of the program.
         Sec. 29.369.  GIFTS, GRANTS, AND DONATIONS.  The comptroller
  may solicit and accept gifts, grants, and donations from any public
  or private source for any expenses related to the initial
  implementation or administration of the program.
         Sec. 29.370.  AGENCY COLLECTION OF CERTAIN INFORMATION. (a)
  The agency shall collect and maintain for each group described by
  Section 29.354(a) information regarding:
               (1)  the number of students in that group enrolled at a
  school district; and
               (2)  the statewide average school district entitlement
  amount under Chapter 42 for a student in that group.
         (b)  The agency shall make available to the comptroller the
  information collected and maintained under Subsection (a).
         (c)  The agency may collaborate with any relevant state
  agency or other entity in carrying out the agency's duties under
  this section.
         (d)  The commissioner may adopt rules as necessary to
  implement this section.
         Sec. 29.371.  RULES.  The comptroller shall adopt rules as
  necessary to implement this subchapter, including:
               (1)  rules regarding expense reporting requirements
  for program participants; and
               (2)  rules for implementing this subchapter in a manner
  that ensures compliance with federal law regarding confidentiality
  of student educational information, including the Family
  Educational Rights and Privacy Act of 1974 (20 U.S.C. Section
  1232g).
         SECTION 2.  Section 42.253, Education Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  Notwithstanding Subsection (b), the commissioner
  shall adjust enrollment estimates and entitlement for each school
  district for each school year based on information provided by the
  comptroller under Section 29.367.  This subsection expires
  September 1, 2020.
         SECTION 3.  Section 58.106(a), Family Code, is amended to
  read as follows:
         (a)  Except as otherwise provided by this section,
  information contained in the juvenile justice information system is
  confidential information for the use of the department and may not
  be disseminated by the department except:
               (1)  with the permission of the juvenile offender, to
  military personnel of this state or the United States;
               (2)  to a criminal justice agency as defined by Section
  411.082, Government Code;
               (3)  to a noncriminal justice agency authorized by
  federal statute or federal executive order to receive juvenile
  justice record information;
               (4)  to a juvenile justice agency;
               (5)  to the Texas Juvenile Justice Department;
               (6)  to the office of independent ombudsman of the
  Texas Juvenile Justice Department;
               (7)  to a district, county, justice, or municipal court
  exercising jurisdiction over a juvenile; [and]
               (8)  to the Department of Family and Protective
  Services as provided by Section 411.114, Government Code; and
               (9)  to the comptroller for the purpose of determining
  a child's eligibility to participate in the education savings
  account program under Subchapter J, Chapter 29, Education Code.
         SECTION 4.  Section 58.204(b), Family Code, is amended to
  read as follows:
         (b)  On certification of records in a case under Section
  58.203, the department may permit access to the information in the
  juvenile justice information system relating to the case of an
  individual only:
               (1)  by a criminal justice agency for a criminal
  justice purpose, as those terms are defined by Section 411.082,
  Government Code;
               (2)  for research purposes, by the Texas Juvenile
  Justice Department;
               (3)  by the person who is the subject of the records on
  an order from the juvenile court granting the petition filed by or
  on behalf of the person who is the subject of the records;
               (4)  with the permission of the juvenile court at the
  request of the person who is the subject of the records;
               (5)  with the permission of the juvenile court, by a
  party to a civil suit if the person who is the subject of the records
  has put facts relating to the person's records at issue in the suit;
  [or]
               (6)  with the written permission of the individual, by
  military personnel, including a recruiter, of this state or the
  United States if the individual is an applicant for enlistment in
  the armed forces; or
               (7)  by the comptroller for the purpose of determining
  the individual's eligibility to participate in the education
  savings account program under Subchapter J, Chapter 29, Education
  Code.
         SECTION 5.  Section 65.202, Family Code, is amended to read
  as follows:
         Sec. 65.202.  CONFIDENTIALITY OF RECORDS. Records and files
  created under this chapter may be disclosed only to:
               (1)  the judge of the truancy court, the truant conduct
  prosecutor, and the staff of the judge and prosecutor;
               (2)  the child or an attorney for the child;
               (3)  a governmental agency if the disclosure is
  required or authorized by law;
               (4)  a person or entity to whom the child is referred
  for treatment or services if the agency or institution disclosing
  the information has entered into a written confidentiality
  agreement with the person or entity regarding the protection of the
  disclosed information;
               (5)  the Texas Department of Criminal Justice and the
  Texas Juvenile Justice Department for the purpose of maintaining
  statistical records of recidivism and for diagnosis and
  classification;
               (6)  the agency; [or]
               (7)  the comptroller for the purpose of determining a
  child's eligibility to participate in the education savings account
  program under Subchapter J, Chapter 29, Education Code; or
               (8)  with leave of the truancy court, any other person,
  agency, or institution having a legitimate interest in the
  proceeding or in the work of the court.
         SECTION 6.  Section 411.109, Government Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  The comptroller is entitled to obtain from the
  department criminal history record information maintained by the
  department that relates to a child for the purpose of determining
  the child's eligibility to participate in the education savings
  account program under Subchapter J, Chapter 29, Education Code.
         SECTION 7.  This Act applies beginning with the 2017-2018
  school year.
         SECTION 8.  Not later than 45 days after the effective date
  of this Act, the comptroller of public accounts shall adopt rules
  necessary to implement the education savings account program under
  Subchapter J, Chapter 29, Education Code, as added by this Act.
         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 September 1, 2017.