SB2 - Relating to the establishment of an education savings account program.

      S.B. No. 2         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. (a)   The   comptroller shall establish and administer a program to provide   funding for approved education-related expenses of children   participating in the program and has the authority to:                 (1)     execute contracts, agreements, and other   instruments for goods and services;                 (2)     engage the services of private consultants,   actuaries, trustees, records administrators, managers, and legal   counsel for administrative and technical assistance; and                 (3)     perform any duty assigned to a certified   educational assistance organization under this subchapter.           (b)     The program confers a state benefit to program   participants in addition to a free public education.           Sec.   29.3521.     AMOUNT OF APPROPRIATION; LIMITATION ON   EXPENDITURES. (a)   In the comptroller's legislative appropriations   request for each state fiscal biennium, the comptroller shall state   the amount of money necessary for the biennium to provide the amount   specified under Section 29.361 for each:                 (1)  participating child;                 (2)     child on the waiting list maintained by the   comptroller under Section 29.356(f) on the January 1 preceding the   biennium; and                 (3)     child who is a sibling of a participating child and   is eligible for the program under Section 29.355 for the first time   during that biennium.           (b)     For purposes of Subsection (a), the comptroller shall   specify the amount described by that subsection for the first state   fiscal year of the biennium and estimate the amount required for the   second state fiscal year of the biennium.           (c)     Notwithstanding the amount stated in the comptroller's   legislative appropriations request under Subsection (a), the   amount appropriated for purposes of the program for a state fiscal   biennium must be established by the legislature by appropriation   for that biennium.           (c-1)     Notwithstanding any other law, for the state fiscal   biennium beginning September 1, 2025, the amount spent for purposes   of the program may not exceed $1 billion.   This subsection expires   September 1, 2027.           (d)     Notwithstanding any other provision of this subchapter,   for each school year, the total amount of money spent for purposes   of participation in the program by children described by Section   29.356(b)(2)(D) may not exceed 20 percent of the amount of money   appropriated from the program fund for that school year.   In   allocating money under the program in accordance with this   subsection, the comptroller shall ensure children who were enrolled   in a school district or open-enrollment charter school for at least   90 percent of the preceding school year are prioritized.           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)     interest and other earnings attributable to the   investment of money in the fund;                 (4)     gifts, grants, and donations received under   Section 29.370; and                 (5)     any other money available for purposes of the   program.           (c)     Money in the fund may be used only for the purposes   specified by this subchapter.           Sec.   29.3535.     PROMOTION OF PROGRAM.   Notwithstanding any   other law, 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 registered to do business in this 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;                       (D)     verify that program funding is used only for   approved education-related expenses;                       (E)     verify that a program participant is eligible   to participate in the program;                       (F)     accept, track, review, and resolve inquiries   and complaints received regarding the program; and                       (G)     establish and maintain a   comptroller-approved Internet website for the program.           (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   designated to perform duties described by Subsection (d)(2) shall:                 (1)     communicate with parents interested in   participating in the program and program participants through   synchronous and asynchronous communication, prioritizing   synchronous communication, regarding:                       (A)     the educational options available in this   state;                       (B)     how and when to apply to the program and   preapproved education service providers;                       (C)     how to manage an account, including   requesting payments;                       (D)  program requirements; and                       (E)     any other information necessary to fulfill   the organization's responsibilities under this subchapter; and                 (2)     raise awareness regarding the availability of the   program.           (f)     The comptroller may designate a certified educational   assistance organization to establish and maintain a   comptroller-approved Internet website for the program.      & [Text truncated for display. Full text available on LegiScan.]