HB612 - 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.

  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 [Text truncated for display. Full text available on Congress.gov.]