By Grusendorf H.B. No. 301 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 education of elementary and/or secondary 1-21 students between the general scholastic ages that accepts students 1-22 funded by the state under this program in lieu of tuition. 1-23 (3) "Private school" means a nongovernmental 2-1 educational establishment that does not accept state scholarships 2-2 funded by the state under this program in lieu of tuition. 2-3 (4) "Educationally disadvantaged" means a student 2-4 enrolled in the national school lunch program for free or reduced 2-5 price lunch. 2-6 Sec. 21.803. PARENTAL CHOICE. The Center for the Study of 2-7 Educational Reform at the University of North Texas, Denton, Texas 2-8 shall designate 60 school districts in the state to participate in 2-9 a public education scholarship program. Notwithstanding any other 2-10 provision, every school-age child that resides in a participating 2-11 district and that qualifies as educationally disadvantaged shall be 2-12 entitled to attend with the public financial aid the public school 2-13 or free school chosen for them by their parent, guardian, or 2-14 custodian, subject to availability. Each child's choice will be 2-15 registered with the central office of the public school district of 2-16 his residence in order to obtain public financing. Students may 2-17 always attend private school at their expense and such students 2-18 shall not be required to register their choice with the resident 2-19 district. 2-20 Sec. 21.804. FINANCING. Each participating public school 2-21 district currently existing or hereafter created under the 2-22 Education Code, shall obtain its public financing as prescribed by 2-23 law. However, funding formulas for all participating school 2-24 districts must be based on student attendance and must include all 2-25 school-age children residing in the district and registering their 3-1 choice with the district, even if they do not choose to attend 3-2 school at a public school in their district of residence. The 3-3 total funding received by each participating district from state 3-4 and local sources will be divided on a category-of-student basis 3-5 according to formulas to be adopted by law which may include 3-6 different amounts for different categories of students. The total 3-7 per student funding amount, including both state and local funding, 3-8 excluding debt service, per category of student shall constitute 3-9 the child's public education scholarship. The child's public 3-10 education scholarship is the entitlement of the child, under the 3-11 supervision of the child's parent, guardian or custodian, not that 3-12 of any school of any kind, and shall be paid to the school solely 3-13 as a means of administrative convenience. 3-14 (1) If a child attends a public school, 100 percent of 3-15 the scholarship shall go to the child's public school district. 3-16 (2) If a child who is educationally disadvantaged, as 3-17 defined by the legislature, attends a free school, 80 percent of 3-18 the child's scholarship shall go to that free school. The 3-19 remainder of the child's scholarship will go to the public school 3-20 district the child would otherwise attend on the basis of 3-21 residence. Each school district may offer transportation free of 3-22 charge to each free school student to and from the public school 3-23 the student would otherwise attend. 3-24 Sec. 21.805. CONDITIONS FOR RECEIPT OF FUNDS BY FREE 3-25 SCHOOLS. (a) Freedom of Religion - The United States Constitution 4-1 and the Texas Constitution both guarantee the right to the free 4-2 exercise of religion of the parents and child, through their 4-3 parent, guardian, or custodian, and such right shall not be 4-4 abridged by the state or any government official, whether 4-5 executive, legislative, or judicial. The purpose of this provision 4-6 is not to aid or inhibit religious education, nor is it to prohibit 4-7 the free exercise of religion, but to neutrally provide equal 4-8 educational benefits to all citizens, regardless of religious 4-9 affiliation or lack thereof. 4-10 (b) In order to receive the child's education scholarship 4-11 allotment, the free school selected by the child must certify to 4-12 the child's resident public school district that it has complied 4-13 with the following conditions with respect to those students who 4-14 use a public education scholarship: 4-15 (1) Positions Filled by Lottery - If the school has 4-16 more applicants than positions, it must fill the positions by 4-17 lottery. A free school may give preference to current students for 4-18 the sake of continuity, and preference may be given to students 4-19 residing in the same household for the sake of custodial 4-20 convenience. 4-21 (2) Limit on Tuition - If the free school accepts any 4-22 state public education scholarship money, it may charge no 4-23 individual student receiving such a scholarship more than the 4-24 amount of the child's scholarship. 4-25 (3) No free school accepting state public education 5-1 scholarship funds may refuse to admit students on the basis of 5-2 residence, race, national origin, ethnic background, or academic 5-3 achievement. 5-4 (4) Each free school shall reasonably accommodate, 5-5 either directly or contractually with other free schools or public 5-6 schools, the educational needs of each student with a disability 5-7 attending the school. The cost of reasonable accommodation of 5-8 those educational needs shall be part of that child's public 5-9 education scholarship. A child's individual education plan 5-10 developed by the public school district of the student's residence 5-11 determines the nature and cost of any reasonable accommodation. 5-12 The free school is responsible for providing only those reasonable 5-13 accommodations whose costs are provided for by the child's public 5-14 education scholarship. 5-15 Sec. 21.806. NONSTATE ACTION AND FREE SCHOOL AUTONOMY. 5-16 Nothing in this subchapter shall turn a free school which accepts a 5-17 child's public education scholarship into an agent or arm of the 5-18 government, and the conduct of such institution shall be governed 5-19 by the law governing private conduct, not state action. The 5-20 purpose of this legislation is to allow maximum freedom to the 5-21 private sector to respond to educational needs and without 5-22 excessive government control and shall be liberally construed to 5-23 that end. Free schools are not subject to any educational 5-24 regulations or statutes except those hereafter adopted by a 5-25 majority vote of both houses of the legislature. 6-1 Sec. 21.807. ACCOUNTABILITY. All students receiving a 6-2 public education scholarship shall be required to take standardized 6-3 testing as required by state law. The results of the tests shall 6-4 be published and copies of the statewide scores shall be made 6-5 available for parental inspection at each public or free school. 6-6 Private schools may participate in testing if they desire. Payment 6-7 to a religious or parochial school selected by a child's parents 6-8 shall not constitute aid to any church, sect, religious 6-9 denomination, or sectarian institution. Decisions by parents shall 6-10 be freely made without coercion or encouragement by any government 6-11 official. 6-12 Sec. 21.808. LEGISLATIVE AUTHORITY. The state may 6-13 promulgate only those rules which are necessary and essential to 6-14 the implementation of this subchapter, consistent with express 6-15 provisions and purpose. Such rules, if any, will be subject to 6-16 strict scrutiny by the courts for the preservation of educational 6-17 freedom. 6-18 Sec. 21.809. REPORT TO LEGISLATURE. The Center for the 6-19 Study of Educational Reform at the University of North Texas in 6-20 Denton, Texas shall report to the legislature on the success of the 6-21 education scholarship program not later than January 1, 1997. 6-22 SECTION 2. (a) The Texas Comptroller shall implement the 6-23 education scholarship program provided for under the Act beginning 6-24 with the 1995-1996 school year. 6-25 (b) Notwithstanding Section 311.025, Government Code, this 7-1 act prevails over any revision, recodification, or reenactment of 7-2 Titles 1 and 2 of the Education Code by the 74th Legislature. 7-3 SECTION 3. The importance of this legislation and the 7-4 crowded condition of the calendars in both houses create an 7-5 emergency and an imperative public necessity that the 7-6 constitutional rule requiring bills to be read on three several 7-7 days in each house be suspended, and this rule is hereby suspended, 7-8 and that this Act take effect and be in force from and after its 7-9 passage, and it is so enacted.