S.B. No. 2 establishes an education savings account program in Texas, aimed at providing families with enhanced educational options and promoting knowledge dissemination. The bill introduces a new Subchapter J to Chapter 29 of the Education Code, defining key terms such as "Account," "Certified educational assistance organization," and "Participating child." The comptroller is designated to administer the program, which will fund approved education-related expenses for eligible children. The bill sets a spending limit of $1 billion for the fiscal biennium beginning September 1, 2025, and outlines the responsibilities of the comptroller, including establishing a program fund and conducting marketing activities. Parents can apply for their children to enroll, with eligibility criteria including citizenship or lawful residency and the ability to attend a school district or charter school.

The bill also mandates specific procedures for application and enrollment, including deadlines and a lottery system for filling positions when demand exceeds funding. It establishes requirements for education service providers and vendors, ensuring they meet certain criteria and adhere to a disbursement schedule. The bill specifies the types of education-related expenses eligible for funding and emphasizes accountability in fund management, including provisions for audits and recovery of improperly received funds. Additionally, it introduces new provisions regarding special education programs, requiring certified educational assistance organizations to inform parents about the differences in regulations for private schools compared to public schools. The comptroller is tasked with collecting demographic information and producing an annual report on the program's effectiveness, while also ensuring confidentiality of student records and allowing for expedited legal review of the bill's constitutionality.

Statutes affected:
Introduced: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Health and Safety Code 810, Government Code 411, Education Code 22)
Senate Committee Report: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Health and Safety Code 810, Government Code 411, Education Code 22)
Engrossed: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Health and Safety Code 810, Government Code 411, Education Code 22)
House Committee Report: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Health and Safety Code 810, Government Code 411, Education Code 22)
Enrolled: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Health and Safety Code 810, Government Code 411, Education Code 22)