By:  Grusendorf                                        H.B. No. 920
       73R3670 E
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the right of parents to choose the school their child
    1-3  attends through the use of education scholarships.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 21, Education Code, is amended by adding
    1-6  Subchapter W to read as follows:
    1-7             SUBCHAPTER W.  PUBLIC EDUCATION SCHOLARSHIPS
    1-8        Sec. 21.801.  PURPOSE.  In order to improve the quality and
    1-9  efficiency of education for all children, to increase the
   1-10  authority, control, and empowerment of all schools, and to promote
   1-11  competition among schools, a system of public free schools may
   1-12  allow all children the freedom to voluntarily choose between
   1-13  attending a public or free school and financially support that
   1-14  choice.
   1-15        Sec. 21.802.  DEFINITIONS.  The following definitions apply
   1-16  to this section.
   1-17              (1)  "Public school" means any school that is solely
   1-18  administered, operated, and staffed by governmental employees.
   1-19              (2)  "Free school" means a nongovernmental educational
   1-20  establishment for the general education of elementary and/or
   1-21  secondary students between the general scholastic ages that accepts
   1-22  students funded by the state under this program in lieu of tuition.
   1-23              (3)  "Private school" means a nongovernmental
   1-24  educational establishment that does not accept state scholarships
    2-1  funded by the state under this program in lieu of tuition.
    2-2              (4)  "Educationally disadvantaged" means a student
    2-3  enrolled in the national school lunch program for free or
    2-4  reduced-price lunch.
    2-5        Sec. 21.803.  PARENTAL CHOICE.  The Educational Economic
    2-6  Policy Committee shall designate not more than 60 school districts
    2-7  in the state to participate in a public education scholarship
    2-8  program.  Notwithstanding any other provision, every school-age
    2-9  child that resides in a participating district and that qualifies
   2-10  as educationally disadvantaged shall be entitled to attend with the
   2-11  public financial aid the public school or free school chosen for
   2-12  them by their parent, guardian, or custodian, subject to
   2-13  availability.  Each child's choice will be registered with the
   2-14  central office of the public school district of his residence in
   2-15  order to obtain public financing.  Students may always attend
   2-16  private school at their expense.
   2-17        Sec. 21.804.  FINANCING.  Each participating public school
   2-18  district currently existing or hereafter created under the
   2-19  Education Code, shall obtain its public financing as prescribed by
   2-20  law.  However, funding formulas for all participating school
   2-21  districts must be based on student attendance and must include all
   2-22  school-age children residing in the district and registering their
   2-23  choice with the district, even if they do not choose to attend
   2-24  school at a public school in their district of residence.  The
   2-25  total funding received by each participating district from state
   2-26  and local sources will be divided on a category-of-student basis
   2-27  according to formulas to be adopted by law which may include
    3-1  different amounts for different categories of students.  The total
    3-2  per student funding amount, including both state and local funding,
    3-3  per category of student shall constitute the child's public
    3-4  education scholarship.  The child's public education scholarship is
    3-5  the entitlement of the child, under the supervision of the child's
    3-6  parent, guardian or custodian, not that of any school of any kind,
    3-7  and shall be paid to the school solely as a means of administrative
    3-8  convenience.
    3-9              (1)  If a child attends a public school, 100 percent of
   3-10  the scholarship shall go to the child's public school district.
   3-11              (2)  A child who is educationally disadvantaged, as
   3-12  defined by the legislature, 80 percent of the child's scholarship
   3-13  shall go to that free school.  The remainder of the child's
   3-14  scholarship will go to the public school district the child would
   3-15  otherwise attend on the basis of residence.
   3-16        Sec. 21.805.  CONDITIONS FOR RECEIPT OF FUNDS BY FREE
   3-17  SCHOOLS.  (a)  Freedom of Religion-The United States Constitution
   3-18  and the Texas Constitution both guarantee the right to the free
   3-19  exercise of religion of the parents and child, through their
   3-20  parent, guardian, or custodian, and such right shall not be
   3-21  abridged by the state or any government official, whether
   3-22  executive, legislative, or judicial.  The purpose of this provision
   3-23  is not to aid or inhibit religious education, nor is it to prohibit
   3-24  the free exercise of religion, but to neutrally provide equal
   3-25  educational benefits to all citizens, regardless of religious
   3-26  affiliation or lack thereof.
   3-27        (b)  In order to receive the child's education scholarship
    4-1  allotment, the free school selected by the child must certify to
    4-2  the child's resident public school district that it has complied
    4-3  with the following conditions:
    4-4              (1)  Positions Filled by Lottery - If the school has
    4-5  more applicants than positions, it must fill the positions by
    4-6  lottery.  A free school may give preference to current students for
    4-7  the sake of continuity, and preference may be given to students
    4-8  residing in the same household for the sake of custodial
    4-9  convenience.
   4-10              (2)  Limit on Tuition - If the free school accepts any
   4-11  state public education scholarship money, it may charge no
   4-12  individual student more than the amount of the child's scholarship.
   4-13              (3)  No free school accepting state public education
   4-14  scholarship funds may refuse to admit students on the basis of
   4-15  residence, race, national origin, ethnic background, or academic
   4-16  achievement.
   4-17        Sec. 21.806.  NONSTATE ACTION AND FREE SCHOOL AUTONOMY.
   4-18  Nothing in this subchapter shall turn a free school which accepts a
   4-19  child's public education scholarship into an agent or arm of the
   4-20  government, and the conduct of such institution shall be governed
   4-21  by the law governing private conduct, not state action.  The
   4-22  purpose of this legislation is to allow maximum freedom to the
   4-23  private sector to respond to educational needs and without
   4-24  excessive government control and shall be liberally construed to
   4-25  that end.  Free schools are not subject to any educational
   4-26  regulations or statutes except those hereafter adopted by a
   4-27  two-thirds vote of both houses of the legislature.
    5-1        Sec. 21.807.  ACCOUNTABILITY.  All students attending public
    5-2  or free schools shall be required to take standardized testing as
    5-3  required by state law.  The results of the tests shall be published
    5-4  and copies of the statewide scores shall be made available for
    5-5  parental inspection at each public or free school.  Private schools
    5-6  may participate in testing if they desire.
    5-7        Sec. 21.808.  LEGISLATIVE AUTHORITY.  The legislature may
    5-8  promulgate only those laws which are necessary and essential to the
    5-9  effective implementation of this section, consistent with its
   5-10  express provisions and purpose.  Such laws, if any, will be subject
   5-11  to strict scrutiny by the courts for the preservation of
   5-12  educational freedom.
   5-13        Sec. 21.809.  REPORT TO LEGISLATURE.  The Educational
   5-14  Economic Policy Center shall report to the legislature on the
   5-15  success of the education scholarship program not later than January
   5-16  1, 1995.
   5-17        SECTION 2.  The Educational Economic Policy Center shall
   5-18  implement the education scholarship program provided for under this
   5-19  Act beginning with the 1993-1994 school year.
   5-20        SECTION 3.  The importance of this legislation and the
   5-21  crowded condition of the calendars in both houses create an
   5-22  emergency and an imperative public necessity that the
   5-23  constitutional rule requiring bills to be read on three several
   5-24  days in each house be suspended, and this rule is hereby suspended,
   5-25  and that this Act take effect and be in force from and after its
   5-26  passage, and it is so enacted.