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.