By Wilson H.B. No. 656 75R4093 ESH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to child-centered scholarships for public school students. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 29, Education Code, is amended by adding 1-5 Subchapter J to read as follows: 1-6 SUBCHAPTER J. CHILD-CENTERED SCHOLARSHIPS FOR PUBLIC OR PRIVATE 1-7 SCHOOL 1-8 Sec. 29.351. DEFINITIONS. In this subchapter: 1-9 (1) "Parent" includes a guardian or custodian. 1-10 (2) "Private school" means a nongovernmental 1-11 educational establishment that exists for the general education of 1-12 elementary or secondary students. 1-13 (3) "Public school" means a school that is 1-14 administered and staffed by governmental employees. 1-15 Sec. 29.352. PARENTAL CHOICE. (a) Each school district in 1-16 this state shall participate in the child-centered scholarship 1-17 program. 1-18 (b) Each child eligible to attend school under Section 1-19 25.001 is eligible to attend either a public school in the school 1-20 district in which the child resides, a public school in another 1-21 school district, or a private school chosen for the child by the 1-22 child's parent as provided by this subchapter. 1-23 (c) A school district shall give priority to children who 1-24 reside in the district and may refuse to admit a child who resides 2-1 in another district. 2-2 (d) A child who wishes to use a child-centered scholarship 2-3 to attend a private school or a public school in a school district 2-4 other than the district in which the child resides shall register 2-5 the child's choice with the district in which the child resides. A 2-6 child who attends private school but does not receive a 2-7 child-centered scholarship is not required to register the child's 2-8 choice with the school district. 2-9 (e) A private school is not required to accept children 2-10 using child-centered scholarships. 2-11 Sec. 29.353. DETERMINATION OF AVERAGE DAILY ATTENDANCE; 2-12 STATE FUNDING. (a) A child who uses a child-centered scholarship 2-13 to attend a private school or a school in a school district other 2-14 than the district in which the child resides is considered in 2-15 determining the average daily attendance under Section 42.005 of 2-16 the school district in which the child resides. The district in 2-17 which a child resides shall adopt a procedure that a private school 2-18 or a school in another school district shall use to report, on a 2-19 monthly basis, the attendance of any child attending the school 2-20 with a child-centered scholarship. 2-21 (b) A school district's state funding under Chapter 42 and 2-22 other law is based on the district's average daily attendance as 2-23 determined under this section and Section 42.005. 2-24 Sec. 29.354. AMOUNT OF CHILD-CENTERED SCHOLARSHIP. (a) The 2-25 child-centered scholarship of a child other than a child 2-26 identified as eligible for special education services under 2-27 Subchapter A is the statewide average of the amount of state and 3-1 local funding per student for the preceding school year. The 3-2 amount of state and local funding per student includes funding for 3-3 programs under this chapter other than special education programs 3-4 under Subchapter A. The amount of state and local funding per 3-5 student does not include: 3-6 (1) amounts spent for debt service; 3-7 (2) amounts distributed from the available school 3-8 fund; or 3-9 (3) amounts received from the federal government. 3-10 (b) The child-centered scholarship of a child identified as 3-11 eligible for special education services under Subchapter A is the 3-12 statewide average of the amount of state and local funding per 3-13 student for the preceding school year, as determined under 3-14 Subsection (a), plus the average amount spent per student for 3-15 special education programs under Subchapter A by the district in 3-16 which the child resides. 3-17 (c) Each school district shall distribute to the parent of 3-18 each child registering the child's school choice with the district 3-19 a certificate stating the amount of the child's child-centered 3-20 scholarship. The parent shall present the certificate to the 3-21 school the child chooses to attend. 3-22 (d) A child's child-centered scholarship is the entitlement 3-23 of the child, under the supervision of the child's parent, is not 3-24 an entitlement of any school of any kind, and is paid to the school 3-25 solely as a means of administrative convenience. 3-26 Sec. 29.355. PAYMENT OF CHILD-CENTERED SCHOLARSHIP. (a) 3-27 The school district in which a child resides shall: 4-1 (1) retain 100 percent of the child-centered 4-2 scholarship of a child who attends a district school; 4-3 (2) pay to the school district in which the child 4-4 attends school an amount equal to 100 percent of the child-centered 4-5 scholarship of a child who attends school in a district other than 4-6 the district in which the child resides; or 4-7 (3) pay to the private school the child attends an 4-8 amount equal to 90 percent of the child's child-centered 4-9 scholarship and retain the remainder of the child's child-centered 4-10 scholarship funds. 4-11 (b) A private school may not share with or refund or rebate 4-12 to the parent or child in any manner the child's child-centered 4-13 scholarship. 4-14 (c) To receive payment of a child-centered scholarship, a 4-15 private school or a school district must present the certificate 4-16 issued under Section 29.354(c) to the school district in which the 4-17 child resides. The school district shall make payment on a monthly 4-18 basis after educational services have been provided. 4-19 Sec. 29.356. CONDITIONS FOR RECEIPT OF FUNDS BY PRIVATE 4-20 SCHOOLS. To receive a child's child-centered scholarship funds, 4-21 the private school selected for or by the child must certify to the 4-22 school district in which the child resides that the school has 4-23 complied with the conditions imposed by Sections 29.357-29.360. 4-24 Sec. 29.357. ADMISSIONS. (a) A private school may not 4-25 refuse to enroll a child using a child-centered scholarship on the 4-26 basis of the child's residence, race, national origin, or ethnic 4-27 background. 5-1 (b) Except as provided by Subsection (c), a private school 5-2 that has more child-centered scholarship applicants than available 5-3 positions must fill the available positions by a reasonable random 5-4 selection process. 5-5 (c) A private school may give preference to enrolled 5-6 students to achieve continuity in education and may give preference 5-7 to other children residing in the same household as enrolled 5-8 students for the convenience of parents of those children. 5-9 Sec. 29.358. TUITION; ADDITIONAL ASSISTANCE. (a) A private 5-10 school may not charge a child attending the school under this 5-11 subchapter tuition in addition to the child's child-centered 5-12 scholarship unless the school offers the child tuition assistance 5-13 in an amount equal to the difference between the amount of the 5-14 tuition and the amount of the child-centered scholarship. 5-15 (b) A private school may pay for uniforms, extracurricular 5-16 fees, transportation, meals, or any other expense reasonably 5-17 related to education. 5-18 Sec. 29.359. ACCOUNTABILITY. (a) Each public school or 5-19 private school shall administer to children attending the school 5-20 with a child-centered scholarship either: 5-21 (1) an assessment instrument required under Subchapter 5-22 B, Chapter 39; or 5-23 (2) a nationally recognized norm-referenced assessment 5-24 instrument selected by the school. 5-25 (b) The aggregate results of student assessments shall be 5-26 published and copies of the results shall be made available for 5-27 public inspection at each public school and private school. 6-1 Sec. 29.360. SPECIAL EDUCATION SERVICES. (a) A private 6-2 school shall provide, either directly or contractually with other 6-3 private schools or public schools, the educational and related 6-4 services identified by the individualized education plan for each 6-5 child with a disability attending the school with a child-centered 6-6 scholarship. 6-7 (b) The cost of special education services, as determined by 6-8 the school district in which the child resides, shall be added to 6-9 the child's child-centered scholarship. Except as required by 6-10 applicable federal law, a private school is responsible for 6-11 providing only educational and related services for which costs are 6-12 provided under this subsection. 6-13 Sec. 29.361. TRANSPORTATION. A school district in which a 6-14 child resides shall offer each child attending a public school or 6-15 private school with a child-centered scholarship transportation 6-16 free of charge to and from the public school the child would 6-17 otherwise attend to the extent the district would be required to 6-18 provide transportation if the child were attending that public 6-19 school. A private school may transport children from the public 6-20 school to the private school. 6-21 Sec. 29.362. STATUS OF PRIVATE SCHOOLS. (a) A private 6-22 school that accepts a child-centered scholarship is not a 6-23 government agent or instrumentality, and the conduct of a private 6-24 school is governed by law governing private conduct rather than law 6-25 governing state action. 6-26 (b) The agency, the State Board of Education, or the 6-27 commissioner may not in any way regulate the educational program of 7-1 a private school. 7-2 (c) The purpose of this subchapter is to allow maximum 7-3 freedom to the private sector to respond to educational needs 7-4 without excessive government control, and this subchapter shall be 7-5 liberally construed to achieve that purpose. 7-6 Sec. 29.363. FREE EXERCISE OF RELIGION. (a) The United 7-7 States Constitution and the Texas Constitution guarantee the right 7-8 to the free exercise of religion, and that right may not be 7-9 abridged by any government official. The purpose of this 7-10 subchapter is not to aid or inhibit religious education or to 7-11 prohibit the free exercise of religion but to neutrally provide 7-12 equal educational benefits for all citizens, regardless of 7-13 religious affiliation. Money may not be appropriated directly to a 7-14 private school, whether the school is sectarian or nonsectarian, 7-15 and may be appropriated only for the benefit of all children of 7-16 this state. 7-17 (b) The use of a child-centered scholarship at a religious 7-18 or parochial school does not constitute direct aid or benefit to 7-19 any church, sect, religious denomination, or sectarian institution. 7-20 (c) A decision by a parent or child to attend a private or 7-21 parochial school must be made without coercion or encouragement by 7-22 any governmental employee. 7-23 SECTION 2. This Act applies beginning with the 1997-1998 7-24 school year. 7-25 SECTION 3. The importance of this legislation and the 7-26 crowded condition of the calendars in both houses create an 7-27 emergency and an imperative public necessity that the 8-1 constitutional rule requiring bills to be read on three several 8-2 days in each house be suspended, and this rule is hereby suspended, 8-3 and that this Act take effect and be in force from and after its 8-4 passage, and it is so enacted.