By: Simmons H.B. No. 4193       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of a credit account program for   students with disabilities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 29, Education Code, is amended by adding   Subchapter J to read as follows:   SUBCHAPTER J. CREDIT ACCOUNT PROGRAM FOR STUDENTS WITH   DISABILITIES          Sec. 29.351.  DEFINITIONS. In this subchapter:                (1)  "Account" means a credit account established under   the program.                (2)  "Financial institution" means a bank, credit   union, savings bank, or savings and loan association organized   under the laws of this state, the laws of another state, or federal   law that has its main office or a branch office in this state. The   term does not include any institution the deposits of which are not   insured by the Federal Deposit Insurance Corporation or the   National Credit Union Administration.                (3)  "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.                (4)  "Program" means the credit account program   established under this subchapter.                (5)  "Program participant" means a student and a parent   of a student who has been accepted into the program.          Sec. 29.352.  ESTABLISHMENT OF PROGRAM. (a) The   commissioner shall establish and administer a credit account   program to provide funding for eligible students to obtain   educational support services and other resources that:                (1)  supplement the student's public education; and                (2)  exceed the level of services that the student's   admission, review, and dismissal committee or the student's team   established under Section 504, Rehabilitation Act of 1973 (29   U.S.C. Section 794), as applicable, has determined to be necessary   for the student to receive a free appropriate public education.          (b)  The agency shall make information about the program   readily available to the public through various sources, including   the agency's Internet website.          Sec. 29.353.  ELIGIBLE STUDENT. A student is eligible to   participate in the program if the student is enrolled in a school   district and:                (1)  an individualized education program has been   developed for the student under Section 29.005; or                (2)  the student is covered by Section 504,   Rehabilitation Act of 1973 (29 U.S.C. Section 794).          Sec. 29.354.  APPLICATION PROCESS. (a) On or before the   date established by commissioner rule, each school district or   open-enrollment charter school annually shall submit to the   commissioner a list of each student enrolled in the district or   school who may be eligible to participate in the program and any   information necessary to determine the student's eligibility.          (b)  As soon as practicable after receipt of the information   submitted under Subsection (a), the agency shall provide to the   parent of each student who is eligible to participate in the   program, or the student if parental rights have transferred to the   student under Section 29.017:                (1)  notice of the student's eligibility; and                (2)  a publication that describes the operation of the   program, including:                      (A)  expenses allowed under the program under   Section 29.356;                      (B)  expense reporting requirements under Section   29.359; and                      (C)  a description of the responsibilities of   program participants and the duties of the agency under this   subchapter.          (c)  On or before the date established by commissioner rule,   a parent of an eligible student may apply on behalf of the student,   or the eligible student may apply if parental rights have   transferred to the student under Section 29.017, for participation   in the program for the school year in which the application is made.          Sec. 29.355.  AGREEMENT REQUIRED. To receive funding under   the program, a parent of an eligible student, or the eligible   student if parental rights have transferred to the student under   Section 29.017, must agree in writing to spend funds received   through the program only for expenses allowed under Section 29.356.          Sec. 29.356.  QUALIFIED EXPENSES. (a) Funds received under   the program may be used only for the following expenses incurred by   a program participant:                (1)  tuition and fees for an educational course,   including a service, course, or educational program offered by an   institution defined by Education Code Sec. 2000.001(2), or an   online course;                (2)  the purchase of instructional materials, as   defined by Section 31.002;                (3)  costs of transportation for the student to receive   educational support services;                (4)  fees for services provided by a private tutor or   teaching service;                (5)  fees for educational therapies or support services   provided by a practitioner or provider;                (6)  costs of computer hardware and software and other   assistive technological devices intended to facilitate the   student's learning;                (7)  fees for a nationally norm-referenced achievement   test or examination, an advanced placement test or similar   examination, or any examination related to college or university   admission; and                (8)  any other expenses not described by Subsection (b)   that are approved by the commissioner.          (b)  Expenses allowed under Subsection (a) do not include   expenses for:                (1)  consumable supplies, including paper, pens,   pencils, folders, and notebooks;                (2)  food; or                (3)  before-school or after-school child care and child   care during school holidays and vacations.          (c)  An education service provider or vendor of educational   products must provide a program participant with a receipt for each   expense allowed under Subsection (a) charged by the provider or   vendor to the participant.          Sec. 29.357.  AMOUNT OF PAYMENT. (a) A parent of an   eligible student, or the eligible student if parental rights have   transferred to the student under Section 29.017, is entitled to   receive each year that the student participates in the program a   payment from the state to the student's account in an amount equal   to the quotient of the total amount of funds available to the   program for that year divided by the total number of students   participating in the program that year.          (a-1)  In making expenditures for this purpose, the   Commissioner may also draw from the funding available for special   education grants as provided at Education Code Section 29.018.          (a-2)  Should a new funding source or sources be made   available for this purpose by the Legislature, the agency, the   federal government, or any other public or private source, then the   Commissioner may also make use of such funding to fund the payments   under subsection (a).          (b)  Any funds remaining in a student's account at the end of   a fiscal year are carried forward to the next fiscal year unless   another provision of this subchapter mandates the closure of the   account.          (c)  A program participant may make payments with personal   money for the expenses of educational programs, services, and   products not covered by funds in the student's account or allowed   under Section 29.356.          Sec. 29.358.  ADMINISTRATION OF ACCOUNTS. (a) The agency   shall contract with a financial institution to establish and manage   an account for each student participating in the program. A program   participant must be able to access the participant's account by   using a debit card or online payment service.          (b)  Not later than September 1 of each year, the   commissioner shall make a payment to each program participant's   account in the amount provided under Section 29.357.          (c)  The commissioner may deduct an amount from each payment   to a program participant's account to cover the agency's cost of   administering the program and any fees for the management of the   account charged by a financial institution. The amount deducted   may not exceed five percent of the payment.          (d)  On the first anniversary of the date on which a student   who participated in the program is no longer eligible to   participate in the program under Section 29.353, the student's   account is closed and any remaining funds are returned to the state   to be used only for purposes of the program.          Sec. 29.359.  EXPENSE REPORTING; APPROVAL BY AGENCY. (a) On   or before deadlines established by commissioner rule, a program   participant shall submit to the agency an expense report detailing   all payments made from the participant's account during the   reporting period.          (b)  An expense report must include:                (1)  receipts and invoices documenting all payments   made from the account;                (2)  a statement of the account provided to the   participant by the financial institution that manages the account;   and                (3)  any other information required by the   commissioner.          (c)  The agency shall approve each expense made by a program   participant that is allowed under Section 29.356 and reject any   expense that is not allowed under that section or for which   documentation is incomplete.          (d)  For each rejected expense, the program participant   shall repay the agency for the cost of the expense. Additional funds   may not be transferred to the participant's account until the   participant repays all rejected expenses. If repayment is not made   on or before the date established by commissioner rule, the   commissioner shall close the account.          Sec. 29.360.  AUDITING OF ACCOUNT. (a) The agency shall   audit accounts as necessary to ensure compliance with applicable   law and the requirements of the program.          (b)  In auditing an account, the agency may require that a   program participant provide further information and documentation   regarding any payment from the participant's account.          Sec. 29.361.  SUSPENSION OF ACCOUNT. (a) The commissioner   may suspend the account of a program participant who fails to comply   with applicable law or a requirement of the program or who misuses   funds received under the program.          (b)  On suspension of an account under Subsection (a), the   commissioner shall notify the program participant in writing that   the account has been suspended and that no further payments may be   made from the account. The notification must specify the grounds   for the suspension and state the date by which the participant must   respond and take any corrective action required by the   commissioner.          (c)  On the expiration of the period specified under   Subsection (b), the commissioner 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 commissioner may reinstate a program participant's   account if the participant provides adequate assurances of future   compliance with applicable law and all requirements of the program.     In reinstating the account, the commissioner may impose additional   safeguards, including revoking the participant's debit card for the   account and requiring the participant to submit expenses for   reimbursement only.          Sec. 29.362.  APPEAL. A determination by the agency to   reject an expense under Section 29.359 or by the commissioner to   close or reinstate an account under Section 29.361 is final and not   subject to appeal except as otherwise provided by commissioner   rule.          Sec. 29.363.  REFUND PROHIBITED. An education service   provider or a vendor of educational products receiving funds   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 funds paid or owed by the   participant to the provider or vendor.          Sec. 29.364.  REFERRAL TO ATTORNEY GENERAL. (a) If the   agency obtains evidence of fraudulent use of an account, the   commissioner 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. 29.365.  EDUCATION SERVICE PROVIDER ACCOUNTABILITY. A   private tutor or teaching service and a practitioner or provider   who provides educational therapies or support services must be   licensed or accredited by a regional or national accrediting   organization recognized by the commissioner to receive funds   distributed under the program.          Sec. 29.366.  ANNUAL SURVEY. The agency shall conduct an   annual parental satisfaction survey that asks each parent of a   student participating in the program, or the student if parental   rights have transferred to the student under Section 29.017, to   express, as applicable:                (1)  the parent's or student's overall level of   satisfaction with the program; and                (2)  the parent's or student's opinion on specified   topics and issues relevant to the effectiveness of the program.          Sec. 29.367.  RULES. The commissioner may adopt rules as   necessary to implement this subchapter, including rules for   implementing this subchapter in a manner that ensures compliance   with federal law regarding confidentiality of student educational   information, including the Family Educational Rights and Privacy   Act of 1974 (20 U.S.C. Section 1232g).          SECTION 2.  Amend Education Code Section 29.018 by amending   subsection (a) to read as follows:          Sec. 29.018.  SPECIAL EDUCATION GRANT. (a-1) From funds   appropriated for the purposes of this section, federal funds, or   any other funds available, the commissioner shall make grants   available to school districts to assist districts in covering the   cost of educating students with disabilities and for students   described as eligible to participate in the credit account program   by Education Code Sec. 29.353.          SECTION 3.  This Act applies beginning with the 2017-2018   school year.          SECTION 4.  As soon as practicable after the effective date   of this Act, the commissioner of education shall adopt rules   necessary to implement the credit account program under Subchapter   J, Chapter 29, Education Code, as added by this Act.          SECTION 5.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2017.