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.