Bill not drafted by TLC or Senate E&E. Line and page numbers may not match official copy. By Grusendorf H.B. No. 2395 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the public funding of primary and secondary education 1-3 through education scholarships. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 29, Education Code, is amended by adding 1-6 Subchapter J to read as follows: 1-7 SUBCHAPTER J. PUBLIC EDUCATION SCHOLARSHIP PILOT PROGRAM 1-8 Sec. 29.351. 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. 29.352. DEFINITIONS. In this subchapter: 1-16 (1) "Educationally disadvantaged" means a student 1-17 enrolled in the national school lunch program for free or reduced 1-18 price lunch. 1-19 (2) "Public school" means any school that is solely 1-20 administered, operated, and staffed by governmental employees. 1-21 (3) "Free school" means a nongovernmental educational 1-22 establishment that exists for the general education of elementary 1-23 and/or secondary students and that accepts funding from state and 1-24 local sources as provided by this subchapter in lieu of tuition for 2-1 some or all of its students. A "free school" does not include a 2-2 school that limits enrollment to relatives of the staff of the 2-3 school. 2-4 (4) "Private school" means a nongovernmental 2-5 educational establishment that does not accept funding from state 2-6 and local sources as provided by this subchapter in lieu of 2-7 tuition. 2-8 (5) "Parent" includes a person standing in parental 2-9 relation to a child. 2-10 Sec. 29.353. DESIGNATION OF SCHOOL DISTRICTS; PARENTAL 2-11 CHOICE. (a) The Center for the Study of Educational Reform of the 2-12 University of North Texas in Denton, Texas shall designate 60 2-13 school districts to participate in a public education scholarship 2-14 program. 2-15 (b) A school district participating in the public education 2-16 scholarship pilot program shall notify the parent of each eligible 2-17 child of the child's eligibility to attend a free school as 2-18 provided by this subchapter. 2-19 (c) Notwithstanding any other provision of this code, each 2-20 eligible child in a participating school district is entitled to 2-21 attend, with public financial aid, the public school or free school 2-22 chosen by the child's parent, subject to availability, as provided 2-23 in this subchapter. 2-24 (d) A child may attend private school but may not receive 2-25 funding from state and local sources for that purpose under this 2-26 subchapter. A child attending a private or free school without a 2-27 public education scholarship may not be required to register with 2-28 the resident district. 2-29 Sec. 29.354. FINANCING. (a) Each participating school 2-30 district is entitled to receive state funding as provided by 3-1 Chapter 42 and other law. 3-2 (b) A child eligible under Section 25.001 to attend school 3-3 in a participating school district but who attends a free school 3-4 under this subchapter and who voluntarily registers that free 3-5 school choice with the district shall be considered in determining 3-6 the district's average daily attendance under Section 42.005. The 3-7 child's district of residence shall adopt a procedure that a free 3-8 school shall use to report the average daily attendance of any 3-9 student for whom the free school is receiving public education 3-10 scholarship funds under this subchapter. 3-11 (c) Funding for a school district participating in the 3-12 public education scholarship program is based on student 3-13 attendance, including all school-age children residing in the 3-14 district who receive public education scholarship funds, regardless 3-15 of the type or location of the school the child attends. From the 3-16 preceding fiscal year, the total average per student funding amount 3-17 for maintenance and operation, including local funding and state 3-18 funding and funding based on special categories of students, except 3-19 for funds from the available school fund and federal funds, shall 3-20 constitute the child's public education scholarship. 3-21 (d) Each public school district chosen under Section 29.353 3-22 shall distribute to each eligible child's parent a certificate 3-23 detailing the amount of each eligible child's scholarship. The 3-24 certificate shall be presented to the child's school of choice in 3-25 lieu of direct payment. 3-26 (e) The free school, or public school outside a child's 3-27 district of residence, must present the child's certificate to the 3-28 child's district of residence in order to receive payment. The 3-29 child's public education scholarship is the entitlement of the 3-30 child, under the supervision of the child's parent and not that of 4-1 any school. The public education scholarship shall be paid to a 4-2 free school or other public school district solely as a means of 4-3 administrative convenience by the district of the child's residence 4-4 upon presentation of the certificate by the free school. The 4-5 district must pay the school on a monthly pro rata basis after 4-6 services have been rendered. 4-7 (f) A school district shall retain 100 percent of the public 4-8 education scholarship of a child who resides in the district and 4-9 attends a public school of the district. If a child resides in a 4-10 school district and attends a public school of another school 4-11 district, the district in which the child resides shall transfer 4-12 100 percent of the child's public education scholarship to the 4-13 district in which the child attends school. If a child resides in 4-14 a school district and attends a free school, the district in which 4-15 the child resides shall: 4-16 (1) retain 20 percent of the child's public education 4-17 scholarship; and 4-18 (2) transfer 80 percent of the child's public 4-19 education scholarship to the free school the child attends. 4-20 (g) A free school may not share, refund, or rebate the 4-21 child's public education scholarship with the parent or child in 4-22 any manner. A free school may not charge an eligible child 4-23 attending the school under this subchapter tuition in addition to 4-24 the public education scholarship. 4-25 Sec. 29.355. CONDITIONS FOR RECEIPT OF FUNDS BY FREE 4-26 SCHOOLS. (a) To receive a child's public education scholarship 4-27 allotment, a free school selected by the child's parent must 4-28 certify to the school district in which the child resides that, 4-29 with respect to each scholarship student, the free school will not 4-30 refuse to admit a student on the basis of the student's residence, 5-1 race, national origin, ethnic background, or religion, except that 5-2 continued enrollment may be based on academic or disciplinary 5-3 standards the free school establishes. 5-4 (b) A free school that has more public education scholarship 5-5 applicants than available positions must fill the available 5-6 positions by a random selection process. A free school must 5-7 declare the number of available positions to conduct the selection 5-8 for the next school year. However, to achieve continuity in 5-9 education, a free school may give preference to enrolled students 5-10 and to the siblings of enrolled students residing in the same 5-11 household or other children residing in the same household as 5-12 enrolled students for the convenience of the parents of those 5-13 children. 5-14 (c) Each student attending a free school shall be assessed 5-15 as required by Subchapter B, Chapter 39. The aggregate results of 5-16 the assessment instruments shall be published and copies of the 5-17 statewide scores shall be made available for parental inspection at 5-18 each public or free school. 5-19 Sec. 29.356. TRANSPORTATION. Each school district shall 5-20 offer transportation free of charge to a free school student to and 5-21 from the public school the student would otherwise attend. 5-22 Sec. 29.357. NONSTATE ACTION AND FREE SCHOOL AUTONOMY. (a) 5-23 A free school that accepts a public education scholarship as 5-24 provided by this subchapter is not an agent or arm of the 5-25 government, and the conduct of the free school is governed by the 5-26 law governing private conduct, not state action. 5-27 (b) A free school is not subject to any educational statute 5-28 or rule except: 5-29 (1) this subchapter; or 5-30 (2) a statute that specifically applies to free 6-1 schools and that is adopted after August 31, 1997. 6-2 (c) The purpose of this subchapter is to allow educators and 6-3 parents maximum freedom to respond to educational needs without 6-4 excessive government control, and this subchapter shall be 6-5 liberally construed to achieve that purpose. 6-6 Sec. 29.358. STUDENTS WITH DISABILITIES. Each free school 6-7 shall reasonably accommodate, either directly or contractually with 6-8 other free schools or public schools, the educational needs of each 6-9 student with a disability attending the school. The cost of 6-10 reasonable accommodation of those educational needs, as those needs 6-11 are determined by the child's school district of residence, shall 6-12 be added to the child's public education scholarship. Except as 6-13 required by applicable federal law, if any, the free school is 6-14 responsible for providing only those reasonable accommodations 6-15 whose costs are provided for by the child's public education 6-16 scholarship. 6-17 Sec. 29.359. REPORT TO LEGISLATURE. The Center for the 6-18 Study of Educational Reform at the University of North Texas in 6-19 Denton, Texas shall report to the legislature on the success of the 6-20 education scholarship program not later than January 1, 2001. 6-21 SECTION 2. The Center for the Study of Educational Reform at 6-22 the University of North Texas shall implement the education 6-23 scholarship program provided for under this Act beginning with the 6-24 1997-1998 school year. 6-25 SECTION 3. The importance of this legislation and the 6-26 crowded condition of the calendars in both houses create an 6-27 emergency and an imperative public necessity that the 6-28 constitutional rule requiring bills to be read on three several 6-29 days in each house be suspended, and this rule is hereby suspended, 6-30 and that this Act take effect and be in force from and after its 7-1 passage, and it is so enacted.