H.B. No. 3 proposes the establishment of an Education Savings Account (ESA) program in Texas, aimed at providing families with enhanced educational options and promoting knowledge dissemination. The bill introduces a new subchapter, Subchapter J, to Chapter 29 of the Education Code, defining key terms such as "Account," "Certified educational assistance organization," and "Child with a disability." It mandates the comptroller to oversee the program, which will fund approved education-related expenses for participating children. The bill outlines the funding structure, including a program fund composed of general revenue and other sources, and establishes eligibility criteria for children, prioritizing enrollment based on income levels.

Additionally, the bill includes provisions for parental participation, requiring parents to agree to specific conditions to receive funding, such as using funds solely for approved expenses and sharing assessment results with educational organizations. It establishes a payment structure for parents, with annual payments calculated as 85% of the estimated statewide average funding per student, and caps for children with disabilities and home-schooled students. The bill emphasizes accountability, mandating certified educational assistance organizations to manage funds in trust and ensuring compliance through audits and oversight. It also includes amendments to existing laws regarding the approval of education service providers, allowing the comptroller to preapprove entities and obtain criminal history information for employees, while ensuring the rights of all stakeholders are protected in legal contexts.

Statutes affected:
Introduced: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Education Code 22, Government Code 411, Health and Safety Code 810)