89R11647 MM-F     By: Creighton, et al. S.B. No. 2       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)  "Low-income household" means a household with a   total annual income that is at or below 500 percent of the federal   poverty guidelines.                (6)  "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.                (7)  "Participating child" means a child enrolled in   the program.                (8)  "Participating parent" means a parent of a   participating child.                (9)  "Program" means the program established under this   subchapter.                (10)  "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. 29.353.  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 in whole or in part, 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 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.          Sec. 29.355.  ELIGIBLE CHILD. (a) A child is eligible to   participate in the program 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 public 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 child is declared ineligible for the program   by the comptroller under this subchapter.          (c)  Notwithstanding Subsection (a) or (b), a child is not   eligible to participate in the program during the period in which   the child's parent or legal guardian is a state representative,   state senator, or statewide elected official.          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   as follows:                (1)  the lesser of the number of children described by   this subdivision who apply for the program or 80 percent of   available positions in the program for children who were enrolled   in a public school for at least 90 percent of the preceding school   year and are:                      (A)  members of a low-income household; or                      (B)  children with a disability; and                (2)  the remaining available positions in the program   for all eligible applicants who are not accepted into the program   under Subdivision (1).          (c)  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.          (d)  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.          (e)  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.          (f)   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 (e). The organization may provide the   information electronically.          (g)  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.          (h)  The agency shall provide to the comptroller the   information necessary to make the determinations required under   Subsection (b).          Sec. 29.357.  PARTICIPATION IN PROGRAM. As a condition of   participating in 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 annual administration to the child of a   nationally norm-referenced assessment instrument or the   appropriate assessment instrument required under Subchapter B,   Chapter 39;                (3)  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 Subdivision (2) or other law;                (4)  refrain from selling an item purchased with   program money; and                (5)  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.          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)  for a private school, demonstrates annual   administration of a nationally norm-referenced assessment   instrument or the appropriate assessment instrument required under   Subchapter B, Chapter 39;                (2)  for a public school, demonstrates:                      (A)  accreditation by the agency; and                      (B)  the ability to provide services or products   to children participating in the program in a manner in which the   children are not counted toward the school's average daily   attendance;                (3)  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; or                (4)  for a higher education provider, demonstrates   nationally recognized postsecondary accreditation.          (c)  The comptroller may approve an education service   provider or vendor of educational products not described by   Subsection (b) for participation in the program in accordance with   comptroller rule.          (d)  The comptroller may approve only an education service   provider or vendor of educational products that operates in this   state.          (e)  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.          (f)  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.          (g)  The comptroller shall review the documentation for each   person described by Subsection (f).  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.          (h)  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.          (i)  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. 29.3585.  PROVIDER AND VENDOR SUSPENSION AND REMOVAL.   (a) The comptroller shall immediately suspend a preapproved   education service provider or vendor of educational products on   finding that the provider or vendor:                (1)  is ineligible under this chapter for participation   in the program; or                (2)  has failed to remain in good standing by complying   with a program requirement under this chapter or other applicable   law.          (b)  A payment may not be made from a program participant's   account to a suspended provider or vendor.          (c)  On suspension under this section, the comptroller shall   immediately send notice of the suspension to the suspended provider   or vendor and each certified educational assistance organization by   first class mail and e-mail.  The notice must include a statement   that:                (1)  specifies the grounds for suspending the provider   or vendor;                (2)  no additional payments may be made to the provider   or vendor from a program participant's account during the   provider's or vendor's suspension; and                (3)  the provider or vendor has 30 days to respond and   take any corrective action required to comply with program   requirements and applicable law.          (d)  Not later than the 30th day after the date the   comptroller provides notice of suspension under Subsection (c), the   comptroller shall:                (1)  remove the provider or vendor from the program;                (2)  conditionally reinstate the provider or vendor and   require the provider or vendor to perform a specified action; or                (3)  unconditionally reinstate the provider or vendor.          (e)  On removing a provider or vendor from the program, the   comptroller shall notify the provider or vendor and each certified   educational assistance organization of the removal.          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; or                      (C)  a program that provides training for an   industry-based credential;                (2)  the purchase of textbooks or other instructional   materials;                (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; and                (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.          (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) Subject to   Subsection (b), the comptroller shall credit semiannually from the   program fund to each program participant's account a total amount   equal to:                (1)  $2,000 or a greater amount set by appropriation;   or                (2)  if the participating child is enrolled in a   private school accredited by an organization recognized by the   Texas Private School Accreditation Commission or the agency:                      (A)  $10,000; or                      (B)  $11,500 if the participating child is a child   with a disability.          (b)  The comptroller shall prorate a credit to a program   participant's account under Subsection (a) for a participating   child admitted into the program after the beginning of a program   year based on the date the child is admitted.          (c)  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.          (d)  The participating parent may make payments for the   expenses of educational programs, services, and products not   covered by money in the participating child's account.          (e)  A payment under Subsection (a) may not be financed using   federal money or money from the available school fund or   instructional materials and technology fund.          (f)  Payments received under this subchapter do not   constitute taxable income to a participating parent, unless   otherwise provided by federal law.          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 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 a 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)  Except as provided by Subsection (c), 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.          (c)  A state agency or state official may adopt a rule that   imposes limitations or requirements described by Subsection (b) if   the agency or official demonstrates that the application of the   burden resulting from the imposition:                (1)  is in the furtherance of a compelling governmental   interest; and                (2)  is the least restrictive means of furthering that   interest.          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 and   accepted, disaggregated by age;                (2)  program participant satisfaction;                (3)  the results of assessment instruments shared in   accordance with Section 29.357(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(c) 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.