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.