TX HB567

School districts using prepaid meal cards or accounts must establish a grace period of at least one week allowing students with exhausted or insufficient balances to continue purchasing regular meals through negative balance accumulation or credit extension

Districts must make at least three private attempts during the grace period to notify parents of the balance issue, arrange payment plans, and assist potentially eligible families with applications for free or reduced-price meals, including sending notices home in unmarked envelopes

After the grace period ends and required outreach is completed, districts must continue providing regular meals to the student at no cost

Districts cannot charge fees or interest on grace period meals, cannot transfer negative balances to subsequent school years, and may apply private donations to cover unpaid balances

Students with meal debt cannot be held back a grade, prevented from graduating, have diplomas withheld, or be barred from school activities, and districts must not publicly identify or stigmatize students with negative balances