HB 567

relating to school district grace period policies and the provision
of meals to public school students with insufficient balances on
prepaid meal cards or in meal accounts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 33.908, Education Code, is amended to
Sec. 33.908.  GRACE PERIOD POLICY FOR EXHAUSTED OR
INSUFFICIENT MEAL CARD OR ACCOUNT BALANCE.  (a)  In this section,
"regular meal" means a meal for which a school district ordinarily
receives reimbursement under the national free or reduced-price
lunch program established under 42 U.S.C. Section 1751 et seq.
(b)  The board of trustees of a school district that allows
students to use a prepaid meal card or account to purchase meals
served at schools in the district shall adopt a grace period policy
regarding the use of the cards or accounts.  The policy:
(1)  must allow a student whose meal card or account
balance is exhausted or insufficient to continue, for a period
determined by the board of at least one week, to purchase regular
(A)  accumulating a negative balance on the
(B)  otherwise receiving an extension of credit
(2)  must require the district to make at least three
attempts during the period described by Subdivision (1) to
(A)  notify the parent of or person standing in
parental relation to the student that the student's meal card or
account balance is exhausted, including by sending home with the
student in an unmarked envelope a written notice of a negative
balance or other amount due and an application for free or
(B)  make arrangements with the parent or other
person for payment of negative balances or amounts otherwise due,
including through use of a payment plan; and
(C)  assist the parent or other person in
completing an application on behalf of the student for free or
reduced-price meals, if it is determined that the student may be
eligible for free or reduced-price meals;
(3)  may not permit the district to charge a fee or
interest in connection with meals purchased under Subdivision (1);
(4)  may permit the district to set a schedule for
repayment on the account balance or other amount due if the district
is unable to set a repayment schedule by agreement through efforts
required under Subdivision (2) [as part of the notice to the parent
or person standing in parental relation to the student].
(c)  After expiration of the period described by Subsection
(b)(1) and completion of duties required under Subsection (b)(2),
the school district shall continue to provide to the student
regular meals as described by Subsection (b)(1) at no cost to the
(d)  If a school district is unable to obtain payment
sufficient to cover the negative balance or extension of credit on a
student's meal card or account from the student's parent or a person
standing in parental relation to the student before the end of the
(1)  may apply toward the negative balance or credit
private donations solicited for that purpose and maintained in a
(2)   shall provide the parent or other person with an
application on behalf of the student for free or reduced-price
meals, if the district determines that the student may be eligible
for free or reduced-price meals in the subsequent school year; and
(3)  may not transfer a negative balance on a student's
meal card or account to the meal card or account held by the student
(e)  A school district may not require a student to repeat a
grade level, prevent a student from graduating, withhold a diploma
from a student, or prohibit a student from participating in
school-related activity due to a negative balance or extension of
credit on the student's meal card or account.
(f)  A school district may not publicly identify a student
with a negative balance or extension of credit on a meal card or
account and must implement an action authorized under this section
in a manner that does not stigmatize or cause embarrassment to a
SECTION 2.  This Act applies beginning with the 2025-2026
SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.