Education

Texas Education Choice

Jun 25th, 2024 33 min read

ARTICLE 6. EDUCATION SAVINGS ACCOUNT PROGRAM SECTION 6.01. 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 to which funds are allocated by the Agency to the Parent of an ESA Student to pay for qualifying education expenses to educate the ESA Student pursuant to the requirements and conditions of this Act.

(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 who submitted an application under Section 29.356 on behalf of the 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 participating children.

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(d) 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) money appropriated to the fund;

(2) funds redirected by the comptroller on a per applicant basis for a child with a disability transferring out of a Texas public school, minus any funds from the available school fund;

(3) gifts, grants, and donations received under Section 29.370; and

(4) any other money available for purposes of the program.

(d) The governor and the Legislative Budget Board may not transfer or repurpose money under a proposal under Chapter 317, Government Code, to provide funding to administer the program.

(e) The comptroller will deposit into the fund an amount equivalent to the weighted average funding per appropriate for the student with a disability transferring from a Texas public school during the preceding school year from all sources other than the available school fund.

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 in whole or in part, such as 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;

(D) verify that program funding is used only for approved education-related expenses.

(c) The comptroller may certify one or more educational assistance organizations to support the administration of the program, including by:

(1) administering in whole or in part:

(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.

(d) 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 and the requirements of this subchapter, initially enroll in the program for the following school year if the child is eligible to attend a public school under Section 25.001 and:

(1) either:

(A) was enrolled in a public school in this state for at least 90 percent of the school year preceding the school year for which the child applies to enroll in the program;

(B) is enrolling in kindergarten or first grade for the first time; or

(2) is a sibling of a child who is eligible to participate in the program and:

(A) applies to enroll in the program for the same school year in which the sibling applies to enroll in the program;

(B) is participating in the program.

(b) A child who establishes eligibility under this section may, subject to available funding and the requirements of this subchapter, participate in the program until the earliest of the following dates:

(1) the date on which the child graduates from high school;

(2) the date on which the child is no longer eligible to attend a public school under Section 25.001;

(3) the date on which the child enrolls in a public school, including an open-enrollment charter school, in a manner in which the child will be counted toward the school ’s average daily attendance for purposes of the allocation of funding under the foundation school program; or

(4) the date on which the child is declared ineligible for the program by the comptroller under this subchapter.

Sec.29.356. APPLICATION TO PROGRAM. (a) A parent of an eligible child may apply to a certified educational assistance organization designated by the comptroller to enroll the child in the program for the following school year. The comptroller shall accept and approve applications year-round and shall establish procedures for approving applications in an expeditious manner.

(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, prioritize 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 400 percent of the federal poverty guidelines and did not attend a public school in the previous school year;

(B) children who are members of a household with a total annual income that is at or below 185 percent of the federal poverty guidelines;

(C) children who are members of a household with a total annual income that is above 185 percent of the federal poverty guidelines and below 400 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 400 percent of the federal poverty guidelines.

(b-1) For purposes of Subsection (b), a certified educational assistance organization shall prioritize a participating child ’s sibling who is initially eligible

to participate in the program under Section 29.355(a)(2) in the same manner as the participating child.

(b-2) The agency shall provide to the comptroller the information necessary to make the determinations required under Subsection (b).

(b-3) Children with disabilities who previously attended a Texas public school who apply for a scholarship will not be required to participate in an enrollment lottery.

(c) The comptroller shall create an application form for the program and ensure the application form is made readily available through various sources, including a certified educational assistance organization’s Internet website. The application form must state the application deadlines established by the comptroller under Subsection (a). Each certified educational assistance organization designated under Subsection (a) shall ensure that the application form, including any required supporting document, is capable of being submitted to the organization electronically.

(d) 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.

(e) Each certified educational assistance organization designated under Subsection (a) shall post on the organization ’s Internet website program information for prospective applicants, including:

(1) a description of the program;

(2) expenses allowed under the program under Section 29.359;

(3) a link to a list of preapproved education service providers and vendors of educational products under Section 29.358;

(4) a description of the application process;

(5) a description of the applicant selection process;

(6) a description of the program expenditures process under Section 29.360; and

(7) a description of the responsibilities of program participants.

(f) A certified educational assistance organization shall produce and provide to each participating parent a comptroller-approved program participant handbook that includes:

(1) information regarding expenses allowed under the program under Section 29.359;

(2) if the handbook is provided electronically, a link to a list of preapproved education service providers and vendors of educational products under Section 29.358;

(3) a description of the program expenditures process under Section 29.360; and

(4) a description of the responsibilities of program participants.

(g) Each certified educational assistance organization designated under Subsection (a) shall on enrollment and annually provide to each participating parent the information described by Subsections (e) and (f). The organization may provide the information electronically.

(h) The comptroller or a certified educational assistance organization designated under Subsection (a):

(1) may require a 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.

Sec.29.357. PARTICIPATION IN PROGRAM. 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) ensure the administration of assessment instruments to the participating child in accordance with Section 29.371 and share or authorize administrators of assessment instruments to share with the child ’s certified educational assistance organization the results of those assessment instruments;

(3) refrain from selling an item purchased with program money while the child is participating in the program; and

(4) notify the applicable certified educational assistance organization not later than 30 days after the date on which the child:

(A) enrolls in a public school, including an open-enrollment charter school in a manner in which the child will be counted toward the school ’s average daily attendance for purposes of the allocation of funding under the foundation school program;

(B) graduates from high school; or

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 accreditation by an organization recognized by:

(A) the Texas Private School Accreditation Commission; or

(B) the agency;

(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 provided 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; or

(5) for a higher education provider, demonstrates nationally recognized postsecondary accreditation.

(c) The comptroller shall review the national criminal history record information or documentation for each private tutor, therapist, or teaching service employee who submits information or documentation under this section. The tutor, therapist, or service must provide the comptroller with any information requested by the comptroller to enable the comptroller to complete the review.

(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 Subsection (b). The comptroller may not approve a provider or vendor if the comptroller cannot verify the provider ’s or vendor ’s eligibility for preapproval.

(e) 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 in violation of this subchapter or other relevant law to the comptroller for deposit into the program fund.

(f) 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.

(g) This section may not be construed to allow a learning pod, as defined by Section 27.001, or a home school to qualify as an approved education service provider or vendor of educational products.

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;

(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) Curricula and supplementary materials;

(4) 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;

(5) costs related to academic assessments;

(6) fees for services provided by a private tutor or teaching service;

(7) 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;

(8) 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;

(9) costs of computer hardware and software and other technological devices prescribed by a physician to facilitate a child ’s education, not to exceed in any year 20 percent of the total amount paid to the participating child ’s account that year;

(10) costs of breakfast or lunch provided to a child during the school day by a private school; and

(11) before- and after-school academic child care from a provider that has a partnership with a public school to provide before- or after-school child care.

(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 for which the organization is responsible.

(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 applicable certified educational assistance organization.

(c) Subject to Subsection (d) and Sections 29.362(g) 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 the participating parent for which the organization is responsible with electronic access to:

(1) view the current balance of the participating child ’s account;

(2) initiate the payment process under Subsection (b); and

(3) view a summary of the past activity on the participating child ’s account, 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 (a-1) and (a-3), 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 funds available under Section 29.353 to the child ’s account equal to 75 percent of the estimated statewide average amount of funding per student in average daily attendance for the applicable school year, as determined by the commissioner not later than January 15 preceding the applicable school year. Children with disabilities will receive 90% of their weighted amount. For purposes of determining the estimated statewide average amount of funding per student under this subsection, the commissioner shall include state and local funding under Chapters 46, 48, and 49 and the amount the state is required to contribute under Section 825.404, Government Code.

(a-1) 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. (a-2) 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.

(a) Any money remaining in a participating child ’s account at the end of a fiscal year that is not obligated for expenses incurred during that fiscal year shall be retained in the student’s account for future use.

(b) 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.

(c) Payments received under this subchapter do not constitute taxable income to a participating parent, unless otherwise provided by federal or another state ’s law.

(d) 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. ENROLLMENT IN PUBLIC SCHOOL. Notwithstanding any other provision of this subchapter or other law, if a child ceases participation in the program due to the child ’s enrollment in a public school, including an open-enrollment charter school:

(1) the public school is entitled to receive an amount equal to the amount in the child ’s account returned to the comptroller under Section 29.362(f); and

(2) the child may not be considered in evaluating the performance of a public school under the public school accountability system as prescribed by Chapters 39 and 39A for the first school year after the child ceases participation in the program.

Sec.29.362. ADMINISTRATION OF ACCOUNTS. (a) On receipt of money distributed by the comptroller for purposes of making payments to accounts, a certified educational assistance organization shall hold the money in trust for the benefit of participating children and make quarterly payments to the account of each participating child for which the organization is responsible 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 actual 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 actual 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 or another date determined by comptroller rule, each certified educational assistance organization shall:

(1) verify with the agency that each participating child for which the organization is responsible 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 for which the organization is responsible is enrolled in a public school, including an open-enrollment charter school, in a manner in which the child is counted toward the school ’s average daily attendance for purposes of the allocation of state funding under the foundation school program.

(e) The comptroller by rule shall establish a process by which a participating parent may authorize the comptroller or the certified educational assistance organization to make a payment directly from the account of the parent ’s child 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 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 and other program requirements; and

(b) In conducting an audit, the private entity may require a certified educational assistance organization, program participant, or education service provider or vendor of educational products 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) the participating parent of each participating child who is affected by the violation or transaction.

Sec.29.364. SUSPENSION OF ACCOUNT. (a) The comptroller shall suspend the account of a program participant who fails to remain in good standing by complying with applicable law or a requirement of the program.

(b) On suspension of an account under Subsection (a), the comptroller shall notify the participating parent in writing that the account of the parent ’s child 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.

(1) order closure of the suspended account;

(2) order temporary reinstatement of the account, conditioned on the performance of a specified action by the program participant; or

(3) order full reinstatement of the account.

(d) 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 may be recovered from the program participant or the education service provider or vendor of educational products that received the money if the participating child ’s account is suspended or closed under this section. Failure to reimburse the state on demand by the comptroller constitutes a debt to the state for purposes of Section 403.055, Government Code. 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, program participant, or education service provider or vendor of educational products, 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) Each certified educational assistance organization designated under Section 29.356(a) 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 participating child with a disability 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 an agent of state government on the basis of receiving that money.

(b) No participating education service provider, or vendor of educational products shall be required to alter its creed, practices, admissions policy, or curricula in order to accept account funds.

(c) A rule adopted or other action taken related to the program may not limit the ability of an education service provider, vendor of educational products, or program participant to:

(1) determine:

(A) the methods of instruction or curriculum used to educate students;

(B) admissions and enrollment practices, policies, and standards; or

(2) exercise the provider ’s, vendor ’s, or participant ’s religious or institutional practices as determined by the provider, vendor, or participant.

Sec.29.369. STUDENT RECORDS AND INFORMATION. (a) On request by the parent of a child participating or seeking to participate in the program, the school district or open-enrollment charter school that the child 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 the applicable 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:

(1) the child ’s public school enrollment status; and

(2) whether the child:

(A) is a child with a disability; or

(B) can be counted toward a public school ’s average daily attendance for purposes of the allocation of funding under the foundation school program.

(c) A certified educational assistance organization may not retain information provided under Subsection (b) beyond the period necessary to determine a child ’s eligibility to participate in the program.

(d) 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 child participating in the program.

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 29.372.

Sec.29.371. ADMINISTRATION OF ASSESSMENT INSTRUMENTS. (a)

The agency shall ensure that each participating child is annually administered:

(1) each assessment instrument required to be administered to a public school student at the child ’s grade and course level under Section 39.023(a) or (c), subject to any applicable exemptions or accommodations provided under Subchapter

B, Chapter 39; or

(2) a nationally norm-referenced assessment instrument that assesses student performance in an equivalent manner to the applicable assessment instruments described by Subdivision (1).

(b) For purposes of the annual report required under Section 29.372, the agency shall provide to the comptroller the results of the assessment instruments administered under this section, in aggregate and disaggregated by race, ethnicity, socioeconomic status, and status as a child with a disability. A child ’s results 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 develop the annual report required under Section 29.372 of this subchapter. In providing the results of the assessment instruments, the agency 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).

(c) The agency shall require a regional education service center to administer assessment instruments under this section.

(d) A school district may administer assessment instruments under this section.

(e) If authorized by the agency, a private school may, but is not required to, administer assessment instruments under this section in accordance with agency rule.

Sec.29.372. ANNUAL REPORT. (a) The comptroller shall require that the certified educational assistance organizations collaborate to 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 provided in accordance with Section 29.371;

(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 the organizations, the number and percentage of participating children 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, the certified educational assistance organizations 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.

years and include, subject to Subsection (b)(2), the data analyzed

and methodology used.

(d) The comptroller and the applicable certified educational assistance organizations shall post the report on the comptroller ’s and organization ’s respective Internet websites.

Sec.29.373. RULES; PROCEDURES. The comptroller shall adopt rules and procedures as necessary to implement, administer, and enforce this subchapter.

Sec.29.374. APPEAL; FINALITY OF DECISIONS. (a) A program participant may appeal to the comptroller an administrative decision made by 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.

Sec.29.375. SUNSET REVIEW OF PROGRAM. The Sunset Advisory Commission ’s review of the agency under Chapter 325, Government Code (Texas Sunset Act), must include a review of the program.

SECTION 6.02. 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 6.03. 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 a private tutor, a therapist, or an employee of a teaching service or school 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.

(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 6.04. Subchapter J, Chapter 29, Education Code, as added by this article, applies beginning with the 2024-2025 school year.

SECTION 6.05. Not later than May 15, 2024, the comptroller of public accounts shall adopt rules as provided by Section 29.373, Education Code, as added by this article.

SECTION6.06. (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 article, may be determined in an action for declaratory judgment under Chapter 37, Civil Practice and Remedies Code, in a district court in Travis County.

(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 article, may be reviewed only by direct appeal to the Texas Supreme Court filed not later than the 15th 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.

(d) This section exercises the authority granted by Section

3-b, Article V, Texas Constitution.

(e) The filing of a direct appeal under this section will automatically stay any temporary or otherwise interlocutory injunction or permanent injunction granted in accordance with this section pending final determination by the Texas Supreme Court, unless the supreme court makes specific findings that the applicant seeking such injunctive relief has pleaded and proved that:

(1) the applicant has a probable right to the relief it seeks on final hearing;

(2) the applicant will suffer a probable injury that is imminent and irreparable, and that the applicant has no other adequate legal remedy; and

(3) maintaining the injunction is in the public interest.

(f) An appeal under this section, including an interlocutory, accelerated, or direct appeal, is governed, as applicable, by the Texas Rules of Appellate Procedure, including Rules 25.1(d)(6), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),

40.1(b), and 49.4.

(g) This section does not authorize an award of attorney ’s fees against this state, and Section 37.009, Civil Practice and Remedies Code, does not apply to an action filed under this section.

SECTION 6.07. It is the intent of the legislature that every provision, section, subsection, sentence, clause, phrase, or word in this article, and every application of the provisions in this article to each person or entity, is severable from each other. If any application of any provision in this article 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 6.08. This article takes effect immediately if this Act 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 article takes effect on the 91st day after the last day of the legislative session.˙