HB3 - Relating to the establishment of an education savings account program.

  89R14082 MM-F     By: Buckley H.B. No. 3       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of an education savings account   program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The purpose of this Act is to:                (1)  provide additional educational options to assist   families in this state in exercising the right to direct the   educational needs of their children; and                (2)  achieve a general diffusion of knowledge.          SECTION 2.  Chapter 29, Education Code, is amended by adding   Subchapter J to read as follows:   SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM           Sec. 29.351.  DEFINITIONS. In this subchapter:                 (1)     "Account" means an education savings account   established under the program.                 (2)     "Certified educational assistance organization"   means an organization certified under Section 29.354 to support the   administration of the program.                 (3)     "Child with a disability" means a child who is   eligible to participate in a school district's special education   program under Section 29.003.                 (4)     "Higher education provider" means an institution   of higher education or a private or independent institution of   higher education, as those terms are defined by Section 61.003.                 (5)     "Parent" means a resident of this state who is a   natural or adoptive parent, managing or possessory conservator,   legal guardian, custodian, or other person with legal authority to   act on behalf of a child.                 (6)     "Participating child" means a child enrolled in   the program.                 (7)     "Participating parent" means a parent of a   participating child.                 (8)     "Program" means the program established under this   subchapter.                 (9)     "Program participant" means a participating child   or a participating parent.           Sec.   29.352.     ESTABLISHMENT OF PROGRAM. The comptroller   shall establish a program to provide funding for approved   education-related expenses of children participating in the   program.           Sec.   29.3521.     AMOUNT OF APPROPRIATION. The amount of money   appropriated for a state fiscal biennium for purposes of the   program may not exceed the greater of:                 (1)     the amount of money appropriated for purposes of   the program for the preceding biennium; or                 (2)     the amount of money necessary for the biennium to   provide the amount specified under Section 29.361 for each   participating child and each child on the waiting list maintained   by the comptroller under Section 29.356(f) on the January 1   preceding the biennium.           Sec.   29.353.     PROGRAM FUND. (a) The program fund is an   account in the general revenue fund to be administered by the   comptroller.           (b)  The fund is composed of:                 (1)  general revenue transferred to the fund;                 (2)  money appropriated to the fund;                 (3)     gifts, grants, and donations received under   Section 29.370; and                 (4)     any other money available for purposes of the   program.           (c)     Money in the fund may be appropriated only for the uses   specified by this subchapter.           Sec.   29.3535.     PROMOTION OF PROGRAM.   Notwithstanding   Chapter 2113, Government Code, the comptroller or the comptroller's   designee may enter into contracts or agreements and engage in   marketing, advertising, and other activities to promote, market,   and advertise the development and use of the program.   The   comptroller may use money from the program fund to pay for   activities authorized under this section.           Sec.   29.354.     SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE   ORGANIZATIONS. (a) An organization may apply to the comptroller   for certification as a certified educational assistance   organization during an application period established by the   comptroller.           (b)  To be eligible for certification, an organization must:                 (1)     have the ability to perform one or more of the   duties and functions required of a certified educational assistance   organization under this subchapter;                 (2)  be in good standing with the state; and                 (3)     be able to assist the comptroller in administering   the program wholly or partly, including the ability to:                       (A)     accept, process, and track applications for   the program;                       (B)     assist prospective applicants, applicants,   and program participants with finding preapproved education   service providers and vendors of educational products;                       (C)     accept and process payments for approved   education-related expenses; and                       (D)     verify that program funding is used only for   approved education-related expenses.           (c)     The comptroller shall establish cybersecurity   requirements for certified educational assistance organizations,   including the implementation of best practices developed under   Section 2054.5181, Government Code.           (d)     The comptroller may certify not more than five   educational assistance organizations to support the administration   of the program, including by:                 (1)  administering wholly or partly:                       (A)     the application process under Section   29.356; and                       (B)     the program expenditures process under   Section 29.360; and                 (2)     assisting prospective applicants, applicants, and   program participants with understanding approved education-related   expenses and finding preapproved education service providers and   vendors of educational products.           (e)     A certified educational assistance organization is not   considered to be a provider of professional or consulting services   under Chapter 2254, Government Code.           Sec.   29.355.     ELIGIBLE CHILD. (a) A child is eligible to   participate in the program and may, subject to available funding,   enroll in the program for the semester following the semester in   which the child's application is submitted under Section 29.356 if   the child is eligible to:                 (1)  attend a public school under Section 25.001; or                 (2)     enroll in a public school's prekindergarten   program under Section 29.153.           (b)     A child who establishes eligibility under this section   may, subject to available funding and the requirements of this   subchapter, participate in the program until the earliest of the   date on which:                 (1)  the child graduates from high school;                 (2)     the child is no longer eligible to either attend a   public school under Section 25.001 or enroll in a public school's   prekindergarten program under Section 29.153, as applicable;                 (3)     the child enrolls in a school district or   open-enrollment charter school in a manner in which the child will   be counted toward the district's or school's average daily   attendance for purposes of the allocation of funding under the   Foundation School Program; or                 (4)     the child is declared ineligible for the program   by the comptroller under this subchapter.           Sec.   29.356.     APPLICATION TO PROGRAM. (a) A parent of an   eligible child may apply to a certified educational assistance   organization designated by the comptroller to enroll the child in   the program for the following semester, term, or school year, as   determined by the comptroller. The comptroller shall establish   deadlines by which an applicant must complete and submit an   application form to participate in the program.           (b)     On receipt of more acceptable applications during an   application period for admission under this section than available   positions in the program due to insufficient funding, a certified   educational assistance organization shall, at the direction of the   comptroller, fill the available positions by lottery of applicants,   prioritizing applicants:                 (1)  in the following order:                       (A)     children to whom Paragraph (B) does not   apply; and                       (B)     children who previously ceased participation   in the program due to enrollment in a public school; and                 (2)     within each of the groups described by Subdivision   (1), as follows, as applicable:                       (A)     children with a disability who are members of   a household with a total annual income that is at or below 500   percent of the federal poverty guidelines;                       (B)     children who are members of a household with   a total annual income that is at or below 200 percent of the federal   poverty guidelines;                       (C)     children who are members of a household with   a total annual income that is above 200 percent of the federal   poverty guidelines and below 500 percent of the federal poverty   guidelines; and                       (D)     children who are members of a household with   a total annual income that is at or above 500 percent of the federal   poverty guidelines.           (c)     For purposes of Subsection (b), a certified educational   assistance organization shall prioritize a participating child's   sibling who is eligible to participate in the program in the same   manner as the participating child.       &# [Text truncated for display. 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