The comptroller must suspend certain approved education providers or vendors when specific problems are found, stop payments to suspended providers, give notice, and decide within 30 days whether to remove or reinstate them.
Sec. 29.3585. PROVIDER AND VENDOR SUSPENSION AND REMOVAL. (a) The comptroller shall immediately suspend a preapproved education service provider or vendor of educational products on finding that the provider or vendor: (1) is ineligible under this subchapter for participation in the program; or (2) has failed to remain in good standing by complying with a program requirement under this subchapter or other applicable law. (b) A payment may not be made from a program participant's account to a suspended provider or vendor. (c) On suspension under this section, the comptroller shall immediately send notice of the suspension to the suspended provider or vendor and each certified educational assistance organization by first class mail and e-mail. The notice must include a statement that: (1) specifies the grounds for suspending the provider or vendor; (2) no additional payments may be made to the provider or vendor from a program participant's account during the provider's or vendor's suspension; and (3) the provider or vendor has 30 days to respond and take any corrective action required to comply with program requirements and applicable law. (d) Not later than the 30th day after the date the comptroller provides notice of suspension under Subsection (c), the comptroller shall: (1) remove the provider or vendor from the program; (2) conditionally reinstate the provider or vendor and require the provider or vendor to perform a specified action; or (3) unconditionally reinstate the provider or vendor. (e) On removing a provider or vendor from the program, the comptroller shall notify the provider or vendor and each certified educational assistance organization of the removal. Added by Acts 2025, 89th Leg., R.S., Ch. 2 (S.B. 2), Sec. 2, eff. September 1, 2025.