Amend the Horn amendment to CSHB 4 by striking the text of
the  amendment and substituting the following:
      Amend CSHB 4 by adding the following new section,
appropriately numbered, and renumbering the subsequent sections
appropriately:
      SECTION _____.  Chapter 29, Education Code, is amended by
adding Subchapter J to read as follows:
       SUBCHAPTER J.  EDUCATIONAL DEVELOPMENT GRANT PROGRAM
      Sec. 29.351.  DEFINITION.  In this subchapter, "private
school" means a school that:
            (1)  offers a general education to elementary or
secondary students; and
            (2)  is not operated by a governmental entity.
      Sec. 29.352.  EDUCATIONAL DEVELOPMENT GRANT; SCHOOL CHOICE.
(a)  As provided by this subchapter, a school district may offer an
eligible student an educational development grant to attend a
private school chosen by the student's parent.
      (b)  A school district may approve or reject the private
school selected by a student's parent or may permit the student to
attend any private school.
      Sec. 29.353.  ELIGIBILITY.  (a)  Except as provided by
Subsection (b), a student who is attending public school is
eligible to receive an educational development grant under this
subchapter and to use that grant to attend a private school if the
private school agrees to admit the student using the educational
development grant. 
      (b)  For a child who is entitled to be admitted into public
school for the first time under Section 25.001(b) to be eligible
for an educational development grant under this subchapter, the
student's parent must have given written notice to the district in
which the child resides at least three years before the date on
which the child enrolls in the private school.
      Sec. 29.354. FINANCING.  (a)  A student who under this
subchapter uses an educational development grant to attend a
private school is included in the average daily attendance of the
district in which the student resides.  The private school the
child attends shall report the student's attendance to the district
in which the student resides in accordance with rules adopted by
the commissioner.
      (b)  A student's educational development grant is an amount
of state and local funds equal to the total of state and local
funding that would be guaranteed under Chapter 42 on the basis of
the student's attendance if the student attended a public school in
the district in which the student resides.  The commissioner shall
adopt rules:
            (1)  for determining the amount of  the educational
development grant under this subsection; and
            (2)  prescribing the manner in which the grant is paid.
      (c)  A private school chosen by a student's parent under
Section 29.352 is entitled to accept or reject the application for
the student to attend school but may not use criteria that
discriminate on the basis of a student's race, ethnicity, academic
achievement, athletic abilities, language proficiency, sex, or
socioeconomic status.
      (d)  The school district in which the student resides is
entitled to $1,000 of the student's educational development grant.
The commissioner also shall retain $1,000 of the student's
educational development grant.  The foundation school fund money
the commissioner retains under this subsection must be used for
foundation school fund purposes.