89R4056 KJE-F     By: Shaheen H.B. No. 612       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of an education savings account   program, an insurance premium tax credit for contributions made for   purposes of that program, and the award of attorney's fees in   actions challenging certain educational choice laws.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The legislature finds that:                (1)  parents should be empowered to direct their   children's education;                (2)  there is not one best educational option for all   children in this state;                (3)  children belong to their parents, not to the   government;                (4)  the best education for children in this state is   one directed by their parents, with all educational options made   available and accessible through a program in which money follows   each child to the educational option that best meets the child's   unique educational needs; and                (5)  in Espinoza v. Montana Department of Revenue, 591   U.S. 464 (2020), and Carson v. Makin, 596 U.S. 767 (2022), the   United States Supreme Court held that state prohibitions on the use   of generally available state tuition assistance programs for   children to attend religious schools violate the Free Exercise   Clause of the First Amendment to the United States Constitution.          SECTION 2.  Chapter 30, Civil Practice and Remedies Code, is   amended by adding Section 30.024 to read as follows:          Sec. 30.024.  AWARD OF ATTORNEY'S FEES IN ACTIONS   CHALLENGING CERTAIN EDUCATIONAL CHOICE LAWS. (a) Notwithstanding   any other law, any person, including an entity, attorney, or law   firm, who seeks declaratory or injunctive relief to prevent this   state or a political subdivision, governmental entity, public   official, or other person in this state from enforcing any statute,   ordinance, rule, regulation, or other type of law that empowers   parents to direct their children's education, including an   educational choice program in which money follows a child to an   educational option selected by the child's parent or an insurance   premium tax credit program used in whole or in part to pay for such   an educational choice program, in any state or federal court, or   that represents any litigant seeking such relief in any state or   federal court, is jointly and severally liable to pay the costs and   attorney's fees of the prevailing party.          (b)  For purposes of this section, a party is considered a   prevailing party if a state or federal court:                (1)  dismisses any claim or cause of action brought   against the party that seeks the declaratory or injunctive relief   described by Subsection (a), regardless of the reason for the   dismissal; or                (2)  enters judgment in the party's favor on any such   claim or cause of action.          (c)  Regardless of whether a prevailing party sought to   recover costs or attorney's fees in the underlying action, a   prevailing party under this section may bring a civil action to   recover costs and attorney's fees against a person, including an   entity, attorney, or law firm, that sought declaratory or   injunctive relief described by Subsection (a) not later than the   third anniversary of the date on which, as applicable:                (1)  the dismissal or judgment described by Subsection   (b) becomes final on the conclusion of appellate review; or                (2)  the time for seeking appellate review expires.          (d)  It is not a defense to an action brought under   Subsection (c) that:                (1)  a prevailing party under this section failed to   seek recovery of costs or attorney's fees in the underlying action;                (2)  the court in the underlying action declined to   recognize or enforce the requirements of this section; or                (3)  the court in the underlying action held that any   provisions of this section are invalid, unconstitutional, or   preempted by federal law, notwithstanding the doctrines of issue or   claim preclusion.          SECTION 3.  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 the educational assistance organization certified under   Section 29.355 to administer 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)  "Fund" means the education savings account program   fund.                (5)  "Institution of higher education" and "private or   independent institution of higher education" have the meanings   assigned by Section 61.003.                (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)  "Program" means the education savings account   program established under this subchapter.                (8)  "Program participant" means a child and a parent   of a child enrolled in the program.          Sec. 29.352.  PURPOSES. The purposes of the education   savings account program are to provide school-aged children with   additional educational options in order to achieve a general   diffusion of knowledge and to empower parents to direct their   children's education.          Sec. 29.353.  ESTABLISHMENT OF PROGRAM. The comptroller   shall establish the education savings account program to provide   funding for approved education-related expenses of eligible   children admitted into the program.          Sec. 29.354.  EDUCATION SAVINGS ACCOUNT PROGRAM FUND. (a)   The education savings account 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 29.371;                (4)  contributions to the fund for which an entity   receives a credit against the entity's state premium tax liability   under Chapter 230, Insurance Code; and                (5)  any other money available for purposes of the   program.          (c)  Money in the fund may be appropriated only to the   comptroller for purposes of making payments to program participants   and administering the program under this subchapter.          Sec. 29.355.  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 the duties and   functions required of a certified educational assistance   organization under this subchapter as provided by the   organization's charter;                (2)  be exempt from federal taxation under Section   501(a) of the Internal Revenue Code of 1986 by being listed as an   exempt organization in Section 501(c)(3) of that code;                (3)  be in good standing with the state; and                (4)  be able to administer the program, including the   ability to:                      (A)  accept, process, and track applications for   the program; and                      (B)  verify that program funding is used only for   approved education-related expenses.          (c)  The comptroller shall certify at least one but not more   than three educational assistance organizations to assist in   administering the program, including by verifying:                (1)  a child's eligibility for the program; and                (2)  the use of funds in a program participant's account   only for purposes approved under Section 29.360.          Sec. 29.356.  ELIGIBLE CHILD. (a) A child is eligible to   participate in the program if the child is eligible to attend a   public school under Section 25.001 and:                (1)  attended a public school during the entire   preceding school year;                (2)  is entering kindergarten for the first time; or                (3)  participated in the program during the preceding   school year.          (b)  Notwithstanding Subsection (a), a child who is eligible   to attend a public school under Section 25.001 is eligible to   participate in the program if the comptroller determines that   sufficient funding is available for the first year of the child's   participation in the program from money in the fund.          (c)  A child who establishes eligibility under this section   may participate in the program until the earliest of the following   dates:                (1)  the date on which the child graduates from high   school or obtains a high school equivalency certificate;                (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; or                (4)  the date on which the child is declared ineligible   for the program by the comptroller under this subchapter.          Sec. 29.357.  APPLICATION TO PROGRAM. (a) A parent of an   eligible child may apply to a certified educational assistance   organization to enroll the child in the program for the following   school year. The parent must provide any information requested by   the organization for purposes of verifying the child's eligibility   for the program.          (b)  Each certified educational assistance organization   shall create an application form for the program and make the   application form readily available to interested parents through   various sources, including the organization's Internet website.   The organization shall ensure that the application form is capable   of being submitted to the organization electronically.          (c)  Each certified educational assistance organization   shall post on the organization's Internet website and provide to   each parent who submits an application form to the organization a   publication that describes the operation of the program, including:                (1)  expenses allowed under the program under Section   29.360;                (2)  the organization's expense reporting   requirements; and                (3)  a description of the responsibilities of program   participants and the duties of the organization under this   subchapter.          (d)  Subject to the availability of funding, each certified   educational assistance organization shall admit into the program   each child for whom the organization received an application under   this section if the organization verifies that the child is   eligible to participate in the program. If available funding is   insufficient to admit each eligible child into the program, the   organization shall prioritize admitting children in the following   order:                (1)  children who participated in the program during   the preceding school year;                (2)  siblings of children who participated in the   program during the preceding school year; and                (3)  children with a disability.          Sec. 29.358.  PARTICIPATION IN PROGRAM. (a)  To receive   funding under the program, a parent of an eligible child must agree   to:                (1)  spend money received through the program only for   expenses allowed under Section 29.360; and                (2)  notify the parent's 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;                      (B)  graduates from high school or obtains a high   school equivalency certificate; or                      (C)  is no longer eligible to enroll in a public   school under Section 25.001.          (b)  The parent of a child participating in the program is   the trustee of the child's account.          (c)  Each certified educational assistance organization   shall provide annually to each program participant admitted by the   organization the publication provided under Section 29.357(c).  The   publication may be provided electronically.          Sec. 29.359.  APPROVED PROVIDERS; PARENTAL REVIEW   COMMITTEE. (a)  The comptroller shall by rule establish a parental   review committee to review and approve applications for preapproval   of education service providers and vendors of educational products.     The comptroller shall post on the comptroller's Internet website   and provide to each certified educational assistance organization   the list of preapproved providers and vendors.          (b)  The parental review committee consists of nine parents   of school-aged children, appointed as follows:                (1)  three members appointed by the governor as   follows:                      (A)  one parent of a child enrolled in a public   school;                      (B)  one parent of a child enrolled in a private   school other than a home school; and                      (C)  one parent of a child being homeschooled;                (2)  three members appointed by the lieutenant governor   as follows:                      (A)  one parent of a child enrolled in a public   school;                      (B)  one parent of a child enrolled in a private   school other than a home school; and                      (C)  one parent of a child being homeschooled; and                (3)  three members appointed by the speaker of the   house of representatives as follows:                      (A)  one parent of a child enrolled in a public   school;                      (B)  one parent of a child enrolled in a private   school other than a home school; and                      (C)  one parent of a child being homeschooled.          (c)  A person may not serve as a member of the parental review   committee if the person is:                (1)  required to register as a lobbyist under Chapter   305, Government Code, for the purpose of lobbying a member of the   legislature; or                (2)  employed by a nonprofit state association or   organization that primarily represents political subdivisions and   hires or contracts with a person required to register as a lobbyist   under Chapter 305, Government Code.          (d)  The parental review committee shall create a process for   program participants to request the preapproval of education   service providers and vendors of educational products.          (e)  The parental review committee shall approve an   education service provider or vendor of educational products for   participation in the program not later than the 30th day after the   date the committee receives the provider's or vendor's application   if the provider or vendor:                (1)  for a private school, executes a notarized   affidavit, with supporting documents, concerning the school's   qualification to serve program participants, including evidence   of:                      (A)  the annual administration of a nationally   standardized norm-referenced assessment instrument;                      (B)  a valid certificate of occupancy;                      (C)  policy statements regarding:                            (i)  admissions;                            (ii)  curriculum;                            (iii)  safety;                            (iv)  student to teacher ratios; and                            (v)  assessments;                      (D)  the school's agreement that program   participants are eligible to apply for scholarships offered by the   school to the same extent as other children; and                      (E)  accreditation by an organization recognized   by the agency or the Texas Private School Accreditation Commission;                (2)  for a private tutor, therapist, or teaching   service:                      (A)  executes a notarized affidavit, with   supporting documents, concerning the tutor's, therapist's, or   service's qualification to serve program participants, including   evidence that the tutor or therapist or each employee of the service   who intends to provide services to a program participant:                            (i)  is certified under Subchapter B,   Chapter 21;                            (ii)  holds a relevant license or   accreditation issued by a state, regional, or national licensing or   accreditation organization; or                            (iii)  is employed in a teaching or tutoring   capacity at an institution of higher education or private or   independent institution of higher education; and                      (B)  the tutor or therapist or each employee of   the teaching service who intends to provide educational services to   a program participant either:                            (i)  completes a national criminal history   record information review; or                            (ii)  provides to the comptroller   documentation indicating that the tutor, therapist, or employee, as   applicable, has completed a national criminal history record   information review within a period established by comptroller rule;                (3)  for an online educational course or program   provider, executes a notarized affidavit, with supporting   documents, concerning the provider's qualification to serve   program participants; or                (4)  for any provider or vendor not described by   Subdivision (1), (2), or (3), presents any necessary supporting   documents concerning the provider's or vendor's qualification to   serve program participants.          (f)  The comptroller shall review the national criminal   history record information or documentation for each private tutor,   therapist, or teaching service who submits an application.  The   tutor, therapist, or service must provide the comptroller with any   information requested by the comptroller to enable the comptroller   to complete the review.  The comptroller shall report the   comptroller's findings from the review to the parental review   committee.          (g)  Each certified educational assistance organization   shall post on the organization's Internet website the list of   preapproved education service providers and vendors of educational   products provided under Subsection (a).          Sec. 29.360.  APPROVED EDUCATION-RELATED EXPENSES. (a)     Subject to Subsection (b), money received under the program may be   used only for the following expenses incurred by a program   participant at a preapproved education service provider or vendor:                (1)  tuition and fees:                      (A)  at a private school;                      (B)  at an institution of higher education or a   private or independent institution of higher education;                      (C)  for an online educational course or program;   or                      (D)  at another education service provider;                (2)  the purchase of textbooks or other instructional   materials or uniforms required by a school, institution, course, or   program described by Subdivision (1) in which the child is   enrolled;                (3)  payments for the purchase of a curriculum;                (4)  fees for classes or other educational services or   extracurricular programs provided by a public school;                (5)  fees for services provided by a private tutor or   teaching service;                (6)  fees for educational therapies or services   provided by a practitioner or provider, only for fees or portions of   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;                (7)  costs of computer hardware and other technological   devices that are primarily used for educational purposes, including   a calculator, personal computer, laptop, tablet, microscope,   telescope, or printer, not to exceed in any year 10 percent of the   total amount deposited in the program participant's account that   year;                (8)  fees for a nationally standardized   norm-referenced achievement test, an advanced placement test or   similar examination, or any examination related to college or   university admission; and                (9)  fees for transportation services provided by a   fee-for-service transportation provider for the child to travel to   and from an education service provider, not to exceed $1,000 per   school year.          (b)  Money received under the program may not be used to pay   any person who is:                (1)  related to the program participant within the   third degree of consanguinity or affinity, as determined under   Chapter 573, Government Code; or                (2)  a member of the program participant's household.          (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 expense that is allowed under that   subsection.          Sec. 29.361.  AMOUNT OF PAYMENT; FINANCING. (a) A parent of   an eligible child shall receive each year that the child   participates in the program a payment from the state to the child's   account in an amount equal to the state average maintenance and   operations expenditures per student in average daily attendance for   the preceding state fiscal year.          (b)  Any money remaining in a 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.          (c)  The parent of a child participating in the program may   make payments for the expenses of educational programs, services,   and products not covered by money in the child's account.          (d)  A payment under Subsection (a) may not be financed using   federal money.          (e)  Not later than November 1 of each even-numbered year,   the comptroller shall submit to the legislature an estimate of the   total amount of funding required for the program for the following   state fiscal biennium.          Sec. 29.362.  ADMINISTRATION OF ACCOUNTS. (a)  The   comptroller shall establish and maintain an account for each child   participating in the program.          (b)  The comptroller shall make payments to each program   participant's account on a schedule set by comptroller rule.          (c)  The comptroller may use money available for the program   to cover the comptroller's cost of administering the program.  The   comptroller may not reduce any payment to a program participant's   account for purposes of this subsection.          (d)  The comptroller shall disburse to each certified   educational assistance organization an amount from the total amount   of money appropriated for purposes of this subchapter to cover the   organization's cost of administering the program.  The total amount   disbursed under this subsection for a state fiscal year may not   exceed five percent of the amount appropriated for purposes of this   subchapter for that fiscal year.          (e)  Before each payment is made under Subsection (b), each   certified educational assistance organization shall:                (1)  compare the list of program participants admitted   by the organization with public school enrollment lists maintained   by the agency; and                (2)  notify the comptroller if the organization   determines that a program participant is enrolled in a public   school, including an open-enrollment charter school.          (f)  Except as provided by Section 29.363, on the date on   which a child who participated in the program is no longer eligible   to participate in the program under Section 29.356(c), the child's   account is closed and any remaining money is returned to the state   for deposit in the fund.          Sec. 29.363.  ACCOUNT EXTENSION. (a)  A program participant   may apply to the participant's certified educational assistance   organization for an extension to allow for:                (1)  the child's account to remain open after the date   on which the child's account would otherwise be closed under   Section 29.362(f) for a reason described by Section 29.356(c)(1);   and                (2)  the money remaining in the account to be used for   expenses described by Subsection (e).          (b)  Each certified educational assistance organization   shall create an application form for the extension of a child's   account under Subsection (a) and make the application form readily   available to program participants through various sources,   including the organization's Internet website.          (c)  A certified educational assistance organization shall   approve an application for the extension of a child's account   submitted under this section if the program participant:                (1)  submits the application form not later than the   30th day before the date on which the child is anticipated to   graduate from high school or obtain a high school equivalency   certificate; and                (2)  includes with the application form documentation   regarding the intended use of the money remaining in the account for   expenses described by Subsection (e).          (d)  Not later than the 30th day after receipt of an   application under this section, a certified educational assistance   organization shall:                (1)  approve or deny the application; and                (2)  notify in writing:                      (A)  the program participant regarding the   organization's decision on the application and, if the application   is denied, the grounds for denial; and                      (B)  the comptroller regarding the approval of an   application.          (e)  Money remaining in a child's account extended under this   section on the date on which the account would otherwise be closed   under Section 29.362(f) may be used only for the following expenses   incurred by the child:                (1)  tuition and fees:                      (A)  for courses that lead to occupational   licensing or certification; or                      (B)  at an institution of higher education, a   private or independent institution of higher education, or a career   school or college, as that term is defined by Section 132.001;                (2)  the purchase of textbooks or other instructional   materials or uniforms required by a course or institution described   by Subdivision (1) in which the child is enrolled; and                (3)  fees to obtain an occupational license or   certification, including fees for an examination necessary to   obtain the license or certification.          (f)  Section 29.361(a) does not apply to a program   participant whose account is extended under this section.          Sec. 29.364.  RANDOM AUDITING. (a)  The comptroller may   contract with a private entity to randomly audit accounts and   certified educational assistance organizations as necessary to   ensure compliance with applicable law and the requirements of the   program.          (b)  In conducting an audit, the comptroller or private   entity may require that a program participant or certified   educational assistance organization provide additional information   and documentation regarding any payment made under the program.          (c)  The private entity shall report to the comptroller any   violation of this subchapter or other relevant law found by the   entity during an audit conducted under this section.          Sec. 29.365.  SUSPENSION OF ACCOUNT. (a) The comptroller   shall suspend the account of a program participant who fails to   comply with applicable law or a requirement of the program.          (b)  On suspension of an account under Subsection (a), the   comptroller shall notify the program participant 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 participant has 10 business   days to respond and take any corrective action required by the   comptroller.          (c)  On the expiration of the 10-day period under Subsection   (b), the comptroller shall:                (1)  order permanent closure of the suspended account   and declare the program participant ineligible for the program;                (2)  order temporary reinstatement of the account,   conditioned on the performance of a specified action by the   participant; or                (3)  order full reinstatement of the account.          (d)  The comptroller may recover money distributed under the   program that was used for expenses not allowed under Section 29.360   from the program participant or the entity that received the money   if the participant's account is suspended or closed under this   section.          Sec. 29.366.  TUITION AND FEES; REFUND PROHIBITED. (a)  An   education service provider may not charge a child participating in   the program an amount greater than the standard amount charged for   that service by the provider.          (b)  An education service provider or a vendor of educational   products receiving 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. 29.367.  REFERRAL TO ATTORNEY GENERAL. (a)  If the   comptroller or a certified educational assistance organization   obtains evidence of fraudulent use of an account, the comptroller   or organization may refer the case to the attorney general for   investigation.          (b)  With the consent of the appropriate local county or   district attorney, the attorney general has concurrent   jurisdiction with the consenting local prosecutor to prosecute an   offense referred to the attorney general under Subsection (a).          Sec. 29.368.  SPECIAL EDUCATION NOTICE. (a) Each certified   educational assistance organization shall post on the   organization's Internet website and provide to each parent who   submits to the organization an application for the program on   behalf of a child with a disability a notice that:                (1)  states that a private school is not subject to laws   regarding the provision of educational services in the same manner   as a public school, and a child with a disability attending a   private school may not receive the services a child with a   disability attending a public school is entitled to receive under   federal and state law; 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.),   including:                            (i)  an individualized education program;                            (ii)  educational services provided in the   least restrictive environment;                            (iii)  instruction from certified teachers;                            (iv)  due process hearings to ensure proper   and full implementation of an individualized education program;                            (v)  transition and planning services; and                            (vi)  supplementary aids and services;                      (B)  rights provided under Subchapter A; and                      (C)  other rights provided under federal or state   law.          (b)  A private school in which a child with a disability who   is participating in the program enrolls shall provide to the   child's parent a copy of the notice required under Subsection (a).          Sec. 29.369.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR   AUTONOMY. (a) A rule adopted or action taken related to the   program by an individual, governmental entity, court of law, or   program administrator may not:                (1)  consider the actions of an education service   provider, vendor of educational products, or program participant to   be the actions of an agent of state government;                (2)  limit:                      (A)  an education service provider's ability to   determine the methods used to educate the provider's students or to   exercise the provider's religious or institutional values; or                      (B)  a program participant's ability to determine   the participant's educational content or to exercise the   participant's religious values;                (3)  obligate an education service provider or program   participant to act contrary to the provider's or participant's   religious or institutional values, as applicable;                (4)  impose any regulation on an education service   provider, vendor of educational products, or program participant   beyond those regulations necessary to enforce the requirements of   the program; or                (5)  require as a condition of receiving money   distributed under the program:                      (A)  an education service provider to modify the   provider's creed, practices, admissions policies, curriculum,   performance standards, employment policies, or assessments; or                      (B)  a program participant to modify the   participant's creed, practices, curriculum, performance standards,   or assessments.          (b)  In a proceeding challenging a rule adopted by a state   agency or officer under this subchapter, the agency or officer has   the burden of proof to establish by clear and convincing evidence   that the rule:                (1)  is necessary to implement or enforce the program   as provided by this subchapter; and                (2)  does not impose an undue burden on a program   participant or an education service provider or vendor of   educational products that receives or seeks to receive money   distributed under the program.          Sec. 29.370.  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)  The agency shall provide to each certified educational   assistance organization any information available to the agency   requested by the organization regarding a child who participates or   seeks to participate in the 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.          Sec. 29.371.  GIFTS, GRANTS, AND DONATIONS. The comptroller   may solicit and accept gifts, grants, and donations from any public   or private source for any expenses related to the administration of   the program, including the initial implementation of the program.          Sec. 29.372.  RULES; PROCEDURES. (a) The comptroller shall   adopt rules and procedures only as necessary to implement,   administer, and enforce this subchapter.          (b)  A rule adopted under Subsection (a) is binding on an   organization that applies for certification as an educational   assistance organization and a state or local governmental entity,   including a political subdivision, as necessary to implement,   administer, and enforce this subchapter.          Sec. 29.373.  RIGHT TO INTERVENE IN CIVIL ACTION. (a) A   program participant may intervene in any civil action challenging   the constitutionality of the program or the insurance premium tax   credit under Chapter 230, Insurance Code.          (b)  A court in which a civil action described by Subsection   (a) is filed may require that all program participants wishing to   intervene in the action file a joint brief. A program participant   may not be required to join a brief filed on behalf of the state or a   state agency.          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 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.          (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.  Subtitle B, Title 3, Insurance Code, is amended   by adding Chapter 230 to read as follows:   CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO   EDUCATION SAVINGS ACCOUNT PROGRAM   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 230.001.  DEFINITIONS. In this chapter:                (1)  "Fund" means the education savings account program   fund under Section 29.354, Education Code.                (2)  "State premium tax liability" means any liability   incurred by an entity under Chapters 221 through 226.   SUBCHAPTER B.  CREDIT          Sec. 230.051.  CREDIT.  An entity may apply for a credit   against the entity's state premium tax liability in the amount and   under the conditions provided by this chapter.  The comptroller   shall award credits as provided by Section 230.054.          Sec. 230.052.  AMOUNTS; LIMITATION ON TOTAL CREDITS.  (a)     Subject to Subsections (b) and (c), the amount of an entity's credit   is equal to the lesser of the amount contributed to the fund during   the period covered by the tax report or the amount of the entity's   state premium tax liability for the report.          (b)  For the 2026 state fiscal year, the total amount of   credits that may be awarded under this chapter may not exceed $200   million. For each subsequent state fiscal year, the total amount of   credits that may be awarded is:                (1)  the same total amount of credits available under   this subsection for the previous state fiscal year, if Subdivision   (2) does not apply; or                (2)  125 percent of the total amount of credits   available under this subsection for the previous state fiscal year,   if the total amount of credits awarded in the previous state fiscal   year was at least 90 percent of the total amount of credits   available under this subsection for that fiscal year.          (c)  The comptroller by rule shall prescribe procedures by   which the comptroller may allocate credits under this chapter. The   procedures must provide that credits are allocated first to   entities that received preliminary approval for a credit under   Section 230.053 and that apply under Section 230.054. The   procedures must provide that any remaining credits are allocated to   entities that apply under Section 230.054 on a first-come,   first-served basis, based on the date the contribution was   initially made.          (d)  The comptroller may require an entity to notify the   comptroller of the amount the entity intends or expects to apply for   under this chapter before the beginning of a state fiscal year or at   any other time required by the comptroller.          Sec. 230.053.  PRELIMINARY APPROVAL FOR CREDIT. (a) Before   making a contribution to the fund, an entity may apply to the   comptroller for preliminary approval of a credit under this chapter   for the contribution.          (b)  An entity must apply for preliminary approval on a form   provided by the comptroller that includes the amount the entity   expects to contribute and any other information the comptroller   requires.          (c)  The comptroller shall grant preliminary approval for   credits under this chapter on a first-come, first-served basis,   based on the date the comptroller receives the application for   preliminary approval.          (d)  The comptroller shall grant preliminary approval for a   credit under this chapter for a state fiscal year if the sum of the   amount of the credit and the total amount of all other credits   preliminarily approved under this chapter does not exceed the   amount provided by Section 230.052(b).          (e)  Final award of a credit preliminarily approved under   this section remains subject to the limitations under Section   230.052(a) and all other requirements of this chapter.          Sec. 230.054.  APPLICATION FOR CREDIT.  (a)  An entity must   apply for a credit under this chapter on or with the tax report   covering the period in which the contribution was made.          (b)  The comptroller shall adopt a form for the application   for the credit. An entity must use this form in applying for the   credit.          (c)  Subject to Section 230.052(c), the comptroller may   award a credit to an entity that applies for the credit under   Subsection (a) if the entity is eligible for the credit and the   credit is available under Section 230.052(b). The comptroller has   broad discretion in determining whether to grant or deny an   application for a credit.          (d)  The comptroller shall notify an entity in writing of the   comptroller's decision to grant or deny the application under   Subsection (a). If the comptroller denies an entity's application,   the comptroller shall include in the notice of denial the reasons   for the comptroller's decision.          (e)  If the comptroller denies an entity's application under   Subsection (a), the entity may request in writing a reconsideration   of the application not later than the 10th day after the date the   notice under Subsection (d) is received. If the entity does not   request a reconsideration of the application on or before that   date, the comptroller's decision is final.          (f)  An entity that requests a reconsideration under   Subsection (e) may submit to the comptroller, not later than the   30th day after the date the request for reconsideration is   submitted, additional information and documents to support the   entity's request for reconsideration.          (g)  The comptroller's reconsideration of an application   under this section is not a contested case under Chapter 2001,   Government Code. The comptroller's decision on a request for   reconsideration of an application is final and is not appealable.          (h)  This section does not create a cause of action to   contest a decision of the comptroller to deny an application for a   credit under this chapter.          Sec. 230.055.  RULES; PROCEDURES. The comptroller shall   adopt rules and procedures to implement, administer, and enforce   this chapter.          Sec. 230.056.  ASSIGNMENT PROHIBITED; EXCEPTION. An entity   may not convey, assign, or transfer the credit allowed under this   chapter to another entity unless all of the assets of the entity are   conveyed, assigned, or transferred in the same transaction.          Sec. 230.057.  NOTICE OF AVAILABILITY OF CREDIT. The   comptroller shall provide notice of the availability of the credit   under this chapter on the comptroller's Internet website, in the   instructions for insurance premium tax report forms, and in any   notice sent to an entity concerning the requirement to file an   insurance premium tax report.          SECTION 6.  Subchapter J, Chapter 29, Education Code, as   added by this Act, applies beginning with the 2026-2027 school   year.          SECTION 7.  An entity may apply for a credit under Chapter   230, Insurance Code, as added by this Act, only for a contribution   made on or after the effective date of this Act.          SECTION 8.  Not later than February 15, 2026, the   comptroller of public accounts shall adopt rules as provided by   Section 230.055, Insurance Code, as added by this Act.          SECTION 9.  Chapter 230, Insurance Code, as added by this   Act, applies only to a tax report originally due on or after the   effective date of this Act.          SECTION 10.  (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, or   Chapter 230, Insurance Code, as added by this Act, may be determined   in an action for declaratory judgment in a district court in Travis   County under Chapter 37, Civil Practice and Remedies Code, except   that 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.  This   section does not authorize a taxpayer suit to contest the denial of   a tax credit by the comptroller of public accounts.          (b)  An appeal of a declaratory judgment or order, however   characterized, of a district court, including an appeal of the   judgment of an appellate court, holding or otherwise determining   that all or any part of Subchapter J, Chapter 29, Education Code, as   added by this Act, or Chapter 230, Insurance Code, as added by this   Act, is constitutional or unconstitutional, or otherwise valid or   invalid, under the state or federal constitution is an accelerated   appeal.          (c)  If the judgment or order is interlocutory, an   interlocutory appeal may be taken from the judgment or order and is   an accelerated appeal.          (d)  A district court in Travis County may grant or deny 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, or Chapter 230,   Insurance Code, as added by this Act.          (e)  There is a direct appeal to the Texas Supreme Court from   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, or Chapter 230,   Insurance Code, as added by this Act.          (f)  The direct appeal is an accelerated appeal.          (g)  This section exercises the authority granted by Section   3-b, Article V, Texas Constitution.          (h)  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; and                (2)  the applicant will suffer a probable injury that   is imminent and irreparable, and that the applicant has no other   adequate legal remedy.          (i)  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), 26.1(b), 28.1, 28.3, 37.3(a)(1), 38.6(a) and (b),   40.1(b), and 49.4.          SECTION 11.  If any provision of this Act or its application   to any person or circumstance is held invalid, the invalidity does   not affect other provisions or applications of this Act that can be   given effect without the invalid provision or application, and to   this end the provisions of this Act are declared severable.          SECTION 12.  This Act takes effect January 1, 2026.