H.B. No. 3 proposes the establishment of an Education Savings Account (ESA) program in Texas, aimed at providing families with more educational options and enhancing knowledge dissemination. The bill introduces a new subchapter to the Education Code, defining key terms and assigning the comptroller the responsibility of establishing the program, which will fund approved educational expenses for participating children. It outlines the creation of a program fund sourced from general revenue and other contributions, as well as the application process for parents, criteria for selecting certified educational assistance organizations, and the establishment of a waiting list if demand exceeds funding. The bill emphasizes the proper use of funds for approved expenses and the responsibilities of parents and organizations in managing the program.

Additionally, the bill includes provisions for the payment structure, stating that participating parents will receive annual payments based on a percentage of the estimated statewide average funding per student, with specific caps for children with disabilities and home-schooled students. It mandates that certified educational assistance organizations manage funds in trust, ensuring compliance through audits and quarterly payments. The bill also prohibits education service providers from charging above standard rates and requires the comptroller to notify local authorities of any fraudulent activities. Furthermore, it allows for expedited appeals regarding the constitutionality of the new provisions and emphasizes the severability of its sections, ensuring that the remaining provisions remain valid if any part is found invalid. The new regulations are set to take effect for the 2026-2027 school year, with necessary rules to be adopted by May 15, 2026.

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)