HB986 - Relating to state savings achieved through a budget savings program administered by the comptroller of public accounts making an appropriation of a portion of those savings.

      By: Toth H.B. No. 986       A BILL TO BE ENTITLED   AN ACT   relating to state savings achieved through a budget savings program   administered by the comptroller of public accounts making an   appropriation of a portion of those savings.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 403, Government Code, is amended by   adding Subchapter N to read as follows:   SUBCHAPTER N. BUDGET SAVINGS PROGRAM           Sec.   403.351.     PURPOSE. The purpose of this subchapter is to   provide financial savings to the state budget and increase   efficiency.           Sec. 403.352.  DEFINITIONS. In this subchapter:                 (1)     "Budget Savings Account" is established in the   foundation school fund and is administered by the comptroller.                 (2)     "Collector" means the officer or employee   responsible for collecting ad valorem taxes for a school district.                 (3)     "Program" means the budget savings program   established under this subchapter.                 (4)  "Qualifying school" means:                       (A)     a school district that serves and charges a   tuition fee for a student transferring to the district from another   school district under Section 25.038, Education Code; or                       (B)     a school that is accredited by an   organization recognized by the Texas Private School Accreditation   Commission.                 (5)  "Qualifying taxpayer" means a person who:                       (A)     pays school district maintenance and   operations ad valorem taxes in an amount that is at least the lesser   of the two amounts described by Section 403.353(e); and                       (B)     makes a designation to cover tuition for the   enrollment of at least one eligible student in a qualifying school   in accordance with rules adopted by the comptroller.                 (6)     "Tuition" includes any fee required to be paid for   an eligible student to attend a qualified school.                 (8)     "Gross savings" means the total savings to the   state prior to any reimbursements made pursuant to Sec. 353.353   (e).                 (9)     "Net savings" means the total savings to the state   after any reimbursements made pursuant to Sec. 353.353 (e).           Sec.   403.353.     BUDGET SAVINGS PROGRAM. (a) The comptroller   shall establish a budget savings program through which a qualifying   taxpayer may designate an amount equal to all or a portion of the   school district maintenance and operations ad valorem taxes paid by   the taxpayer to be used as a grant from the state to pay the tuition   for the enrollment of an eligible student at a qualifying school   through the use of a budget savings form.           (b)     For each year in which a qualifying taxpayer elects to   participate in the program, the taxpayer shall submit to the   collector, in addition to the taxpayer's school district ad valorem   taxes, a budget savings form for students for whom the taxpayer   designates tuition for enrollment at a qualifying school. The form   must be submitted not later than the date the school district taxes   are due, and the taxes must be paid in full by the due date.           (c)     The comptroller by rule shall prescribe the format of   the budget savings form and shall include in the form any   information the comptroller determines necessary to administer the   program.           (d)     The collector shall report on program participation to   the comptroller in a manner and format as determined by   comptroller.           (e)     A designated student is entitled to receive a grant for   the payment of tuition for enrollment at a qualifying school for an   amount equal to the lesser of:                 (1)     the total amount of tuition the taxpayer   designated for the enrollment of one or more eligible students in a   qualifying school; or                 (2)  the product of:                       (A)     80 percent of the state average maintenance   and operations expenditures per student in average daily   attendance; and                       (B)     the number of eligible students for whom the   taxpayer designated tuition for enrollment in a qualifying school.           (f)     A student is eligible to participate in the program if   the student is a school-age child who resides in this state.           (f-1)     Notwithstanding Subsection (f), for a school year   before the 2038-2039 school year, a student is eligible to   participate in the program only if the student is a school-age child   who resides in this state and:                 (1)  is entering kindergarten or first grade;                 (2)     attended a public school for all of the school year   immediately preceding initial participation in the program;                 (3)     participated in the program in a preceding school   year; or                 (4)     is a sibling of a student who participated in the   program in a preceding school year.           (f-2)     This subsection and subsection (f-1) expire September   1, 2039.           (g)     The comptroller may not use money from the available   school fund or federal money to reimburse a qualifying school under   this section.           (h)     A qualifying school may not be required to comply with a   state law, including a rule governing the school's educational   program, as a prerequisite for receiving a reimbursement under this   subchapter unless that law applies generally to schools in this   state that are accredited by an organization recognized by the   Texas Private School Accreditation Commission, or in effect prior   to January 1, 2025.           (i)     Notwithstanding any other provision of this subchapter,   the comptroller may implement a program for taxpayers who live in an   apartment or otherwise owe property taxes insufficient to cover the   amount due under Section 403.352(5)(A). Such taxpayer participants   shall only be entitled to participate if the comptroller determines   that the reimbursement will result in a savings to the state budget.           Sec.   403.354.     BUDGET SAVINGS ACCOUNT. (a) The budget   savings account is established in the foundation school fund and is   administered by the comptroller on behalf of Texas students who   participate in the program.           (b)  The account consists of:                 (1)     money transferred to the credit of the account by   the comptroller under Section 48.304 Education Code; and                 (2)     other amounts appropriated to the account by the   legislature.           (c)     Money in the account may be used only to award grants for   the payment of tuition for enrollment of eligible students at   qualifying schools in the manner prescribed by Section 403.353 and   rules adopted by the comptroller.           (d)     Interest and income from the assets of the account shall   be credited to and deposited in the account.           (e)     Notwithstanding Subsection (c), the comptroller may   deduct a percentage of each reimbursement made from the account to   cover the comptroller's administrative costs in implementing and   administering the program. The percentage deducted from each   reimbursement may not exceed the lesser of:                 (1)     the pro rata cost of the program in the applicable   year; or                 (2)  two percent of the amount of the reimbursement.           (f)     This subsection and Subsection (e) expire September 1,   2036.           Sec.   403.355.     RULES. (a) The comptroller shall adopt rules   for the implementation and administration of this subchapter,   including rules relating to:                 (1)  the format and content of the budget savings form;                 (2)     a timeline for making payments for qualifying   students under the program in a manner that maximizes savings to the   state without imposing an unnecessary burden on program   participants;                 (3)     the prevention of fraud and abuse in financial   transactions under the program;                 (4)     the prevention of dual counting of eligible   students; and                 (5)     the computation of the gross and net savings to the   state from the program.          SECTION 2.  Subchapter G, Chapter 48, Education Code, is   amended by adding Section 48.304 to read as follows:           Sec.   48.304.     BUDGET SAVINGS GRANT. (a) A person to whom   the comptroller awards a grant under Subchapter N, Chapter 403,   Government Code, is entitled to receive an amount equal to the   amount of the grant as provided by that subchapter.           (b)     The agency shall re-appropriate to the credit of the   budget savings account established under Section 403.354,   Government Code, the amount appropriated to the agency for purposes   of this section for use by the comptroller in awarding grants as   provided by Subchapter N, Chapter 403, Government Code.          SECTION 3.  (a) The constitutionality and other validity   under the state or federal constitution of all or any part of   Chapter 403, Government Subchapter N, 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 Chapter 403, Government Code, Subchapter N,   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 injuncti [Text truncated for display. Full text available on Congress.gov.]