HB4537 —

Compared against the Texas statutes as published AI-generated reading aid — verify against the official bill.

This bill amends 1 section(s) of the Texas statutes: Section 411.109, Government Code.

• SUBCHAPTER J. FAMILY EDUCATIONAL RELIEF PROGRAM Sec. 29.351. DEFINITIONS. In this subchapter: (1) "Account" means a family educational relief account established under the program. (2) "Certified educational assistance organization" means an 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) "Institution of higher education" and "private or independent institution of higher education" have the meanings assigned 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) "Program" means the Family Educational Relief Program established under this subchapter. (7) "Program participant" means a child and a parent of a child enrolled in the program. Sec. 29.352. PURPOSE. The purpose of the Family Educational Relief Program is to provide children from low-income households with additional educational options in order to achieve a general diffusion of knowledge. Sec. 29.353. ESTABLISHMENT OF PROGRAM. The comptroller shall establish the Family Educational Relief Program to provide funding for approved education-related expenses of eligible children admitted into the program. Sec. 29.354. FAMILY EDUCATIONAL RELIEF PROGRAM FUND. (a) The Family Educational Relief 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; (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, the 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 tax 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 no 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: (1) eligible to attend a public school under Section 25.001; and (2) a member of a household with a total annual income that is at or below the income guidelines necessary to qualify for the national free or reduced-price lunch program established under 42 U.S.C. Section 1751 et seq. (b) A sibling of a child who is eligible to participate in the program under Subsection (a) is eligible to participate in the program if the sibling is eligible to attend a pu

  amended

• Section 411.109, Government Code

  (c) The comptroller is entitled to obtain criminal history record information maintained by the department about a person who is a private tutor, a therapist, or an employee of a teaching service who intends to provide educational services to a child participating in the program established under Subchapter J, Chapter 29, Education Code, and is seeking approval to receive money distributed under that program.

  amended

• CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO FAMILY EDUCATIONAL RELIEF PROGRAM SUBCHAPTER A. GENERAL PROVISIONS Sec. 230.001. DEFINITIONS. In this chapter: (1) "Fund" means the Family Educational Relief Program fund under Section 29.354, Education Code. (2) "State premium tax liability" means any liability incurred by an entity under Chapters 221 through 226. SUBCHAPTER B. CREDIT Sec. 230.051. CREDIT. An entity may apply for a credit against the entity's state premium tax liability in the amount and under the conditions provided by this chapter. The comptroller shall award credits as provided by Section 230.053. Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a) Subject to Subsections (b) and (c), the amount of an entity's credit is equal to the lesser of the amount contributed to the fund during the period covered by the tax report or 50 percent of the entity's state premium tax liability for the report. (b) For the 2022 state fiscal year, the total amount of credits that may be awarded under this chapter may not exceed $200 million. For each subsequent state fiscal year, the total amount of credits that may be awarded is: (1) the same total amount of credits available under this subsection for the previous state fiscal year, if Subdivision (2) does not apply; or (2) 125 percent of the total amount of credits available under this subsection for the previous state fiscal year, if the total amount of credits awarded in the previous state fiscal year was at least 90 percent of the total amount of credits available under this subsection for that fiscal year. (c) The comptroller by rule shall prescribe procedures by which the comptroller may allocate credits under this chapter. The procedures must provide that credits are allocated first to entities that received preliminary approval for a credit under Section 230.0525 and that apply under Section 230.053. The procedures must provide that any remaining credits are allocated to entities that apply under Section 230.053 on a first-come, first-served basis, based on the date the contribution was initially made. (d) The comptroller may require an entity to notify the comptroller of the amount the entity intends or expects to apply for under this chapter before the beginning of a state fiscal year or at any other time required by the comptroller. Sec. 230.0525. PRELIMINARY APPROVAL FOR CREDIT. (a) Before making a contribution to the fund, an entity may apply to the comptroller for preliminary approval of a credit under this chapter for the contribution. (b) An entity must apply for preliminary approval on a form provided by the comptroller that includes the amount the entity expects to contribute and any other information the comptroller requires. (c) The comptroller shall grant preliminary approval for credits under this chapter on a first-come, first-served basis, based on the date the comptroller receives the application for preliminary approval. (d) The comptroller shall grant preliminary approval for a credit under this chapter for a state fiscal year if the sum of the amount of the credit and the total amount of all other credits preliminarily approved under this chapter does not exceed the amount provided by Section 230.052(b). (e) Final award of a credit preliminarily approved under this section remains subject to the limitations under Section 230.052(a) and all other requirements of this chapter. Sec. 230.053. APPLICATION FOR CREDIT. (a) An entity must apply for a credit under this chapter on or with the tax report covering the period in which the contribution was made. (b) The comptroller shall adopt a form for the application for the credit. An entity must use this form in applying for the credit. (c) Subject to Section 230.052(c), the comptroller may award a credit to an entity that applies for the credit under Subsection (a) if the entity is eligible for the credit and the credit is available under Section 230.052(b). The comptroller has broad discre

  amended