By:  Ratliff                                          S.B. No. 1375
       73R8309 CAS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the right of parents of educationally disadvantaged
    1-3  children to choose the school their children attend through the use
    1-4  of education scholarships.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Chapter 21, Education Code, is amended by adding
    1-7  Subchapter W to read as follows:
    1-8          SUBCHAPTER W.  PUBLIC EDUCATION SCHOLARSHIP PROGRAM
    1-9        Sec. 21.801.  PURPOSE.  A system of public free schools may
   1-10  be established to allow parents of educationally disadvantaged
   1-11  children the freedom to choose between a public or a free school
   1-12  for their children and to financially support that choice.
   1-13        Sec. 21.802.  DEFINITIONS.  In this subchapter:
   1-14              (1)  "Educationally disadvantaged" means eligible to
   1-15  participate in the free and reduced-price lunch program established
   1-16  under 42 U.S.C. Section 1751 et seq.
   1-17              (2)  "Free school" means a nongovernmental educational
   1-18  establishment that exists for the general education of elementary
   1-19  or secondary students who satisfy age requirements for public
   1-20  school admission under Section 21.031(b) of this code and that
   1-21  accepts state funding as provided by this subchapter in lieu of
   1-22  tuition.
   1-23              (3)  "Private school" means a nongovernmental
   1-24  educational establishment that does not accept state funding as
    2-1  provided by this subchapter in lieu of tuition.
    2-2              (4)  "Public school" means any school that is
    2-3  administered, operated, and staffed by public employees.
    2-4        Sec. 21.803.  PARENTAL CHOICE.  (a)  The Educational Economic
    2-5  Policy Committee created under Section 34.052 of this code shall
    2-6  designate at least 60 school districts to participate in a public
    2-7  education scholarship program as provided by this subchapter.
    2-8        (b)  Notwithstanding any other provision of this code, each
    2-9  child who is eligible to attend school under Section 21.031 of this
   2-10  code in a school district participating in the public education
   2-11  scholarship program and who is educationally disadvantaged is
   2-12  entitled to attend either a public school in the district or the
   2-13  free school chosen for the child by the child's parent, guardian,
   2-14  or custodian as provided by this subchapter.
   2-15        (c)  A child may attend private school but may not receive
   2-16  state funding for that purpose.
   2-17        Sec. 21.804.  FINANCING.  (a)  Each school district
   2-18  participating in the public education scholarship program under
   2-19  this subchapter is entitled to receive state funding as provided by
   2-20  Chapter 16 of this code and other law.
   2-21        (b)  A child eligible under Section 21.031 of this code to
   2-22  attend school in a participating school district but who attends a
   2-23  free school under the public education scholarship program and who
   2-24  registers that free school choice with the district shall be
   2-25  considered in determining the district's average daily attendance
   2-26  under Section 16.006 of this code.  The commissioner of education
   2-27  shall adopt a procedure a free school shall use to report the
    3-1  average daily attendance of any student for whom the free school is
    3-2  receiving public education scholarship funds under this subchapter.
    3-3        (c)  Total funding from state and local sources available for
    3-4  public education scholarships must include special allotments under
    3-5  Subchapter D, Chapter 16, of this code, other than allotments for
    3-6  technology, career ladder, or transportation.  The total per
    3-7  student funding amount, including both state and local funding,
    3-8  constitutes the  child's public education scholarship.  The child's
    3-9  public education scholarship is the entitlement of the child, under
   3-10  the supervision of the child's parent, guardian, or custodian, not
   3-11  that of any school of any kind, and shall be paid to the school
   3-12  solely as a means of administrative convenience.
   3-13        (d)  If a child who is educationally disadvantaged attends a
   3-14  free school, the free school is entitled to receive 90 percent of
   3-15  the child's public education scholarship funds.  The school
   3-16  district the child would otherwise attend on the basis of residence
   3-17  is entitled to the remainder of the scholarship funds.  Each school
   3-18  district shall offer transportation free of charge to each free
   3-19  school student to and from the public school the student would
   3-20  otherwise attend.
   3-21        Sec. 21.805.  CONDITIONS FOR RECEIPT OF FUNDS BY FREE
   3-22  SCHOOLS.  (a)  To receive a child's public education scholarship
   3-23  funds, the free school selected by the child must certify to the
   3-24  comptroller that it has complied with the conditions imposed by
   3-25  this section.
   3-26        (b)  A free school that has more applicants than available
   3-27  positions shall fill the positions by lottery.  However, a free
    4-1  school may give preference to enrolled students to achieve
    4-2  continuity in education and to the siblings of enrolled students
    4-3  residing in the same household or other coresidents of enrolled
    4-4  students for the convenience of the parents, guardians, or other
    4-5  custodians of those children.
    4-6        (c)  A free school may not charge a student for whom the
    4-7  school is receiving public education scholarship funds more than 90
    4-8  percent of the amount of the child's scholarship.
    4-9        (d)  A free school may not refuse to admit a student on the
   4-10  basis of the student's residence, race, national origin, ethnic
   4-11  background, physical or mental disability, or academic achievement.
   4-12  Each free school shall reasonably accommodate, either directly or
   4-13  contractually with other free schools or public schools, the
   4-14  educational needs of each student with a disability attending the
   4-15  school.  The cost of reasonable accommodation of those educational
   4-16  needs shall be part of that child's public education scholarship.
   4-17  A child's individual education plan developed by the public school
   4-18  district of the student's residence determines the nature and cost
   4-19  of any reasonable accommodation.  The free school is responsible
   4-20  for providing only those reasonable accommodations whose costs are
   4-21  provided for by the child's public education scholarship.
   4-22        Sec. 21.806.  NONSTATE ACTION AND FREE SCHOOL AUTONOMY.  A
   4-23  free school is not an agent or instrumentality of government, and
   4-24  the conduct of the free school is governed by law governing private
   4-25  conduct rather than law governing state action.  The purpose of
   4-26  this subchapter is to allow maximum freedom to the private sector
   4-27  to respond to educational needs without excessive government
    5-1  control, and this subchapter shall be liberally construed to
    5-2  achieve that purpose.
    5-3        Sec. 21.807.  ACCOUNTABILITY.  Each free school shall
    5-4  administer to its students any assessment instrument required under
    5-5  Subchapter O of this chapter in the same manner as the assessment
    5-6  instrument is administered to public school students.  The results
    5-7  of the assessment instruments under that subchapter shall be
    5-8  published, and copies of the statewide scores shall be made
    5-9  available for parental inspection at each public school and free
   5-10  school.
   5-11        Sec. 21.808.  COMPTROLLER.  The comptroller shall adopt
   5-12  forms, procedures, and rules governing the implementation of
   5-13  payment of public education scholarships to the free schools on
   5-14  behalf of parents, guardians, and custodians of those students
   5-15  attending free schools.  The comptroller may not regulate the
   5-16  educational program of free schools.
   5-17        Sec. 21.809.  REPORT TO LEGISLATURE.  The Educational
   5-18  Economic Policy Center shall report to the legislature on the
   5-19  success of the public education scholarship program not later than
   5-20  January 1, 1996, and each succeeding January 1 through January 1,
   5-21  2000.  This section expires February 1, 2000.
   5-22        SECTION 2.  The Educational Economic Policy Center shall
   5-23  implement the public education scholarship program provided for
   5-24  under Subchapter W, Chapter 21, Education Code, as added by this
   5-25  Act, beginning with the 1993-1994 school year.
   5-26        SECTION 3.  The importance of this legislation and the
   5-27  crowded condition of the calendars in both houses create an
    6-1  emergency and an imperative public necessity that the
    6-2  constitutional rule requiring bills to be read on three several
    6-3  days in each house be suspended, and this rule is hereby suspended,
    6-4  and that this Act take effect and be in force from and after its
    6-5  passage, and it is so enacted.