By Bivins S.B. No. 1206 75R9059 ESH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to creation of a public education scholarship pilot 1-3 program for children assigned to attend certain low-performing 1-4 public schools. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 29, Education Code, is amended by adding 1-7 Subchapter J to read as follows: 1-8 SUBCHAPTER J. PUBLIC EDUCATION SCHOLARSHIP PILOT PROGRAM 1-9 Sec. 29.351. DEFINITIONS. In this subchapter: 1-10 (1) "Free school" means a nongovernmental educational 1-11 establishment that exists for the general education of elementary 1-12 or secondary students and that accepts funding from state and local 1-13 sources as provided by this subchapter in lieu of tuition for some 1-14 or all of its students. The term does not include a school that 1-15 provides education in a home setting or by the parent or that 1-16 limits enrollment to relatives of the staff of the school. 1-17 (2) "Parent" includes a guardian or custodian. 1-18 (3) "Private school" means a nongovernmental 1-19 educational establishment that does not accept funding from state 1-20 and local sources as provided by this subchapter in lieu of 1-21 tuition. 1-22 Sec. 29.352. ELIGIBILITY OF CHILD FOR PUBLIC EDUCATION 1-23 SCHOLARSHIP. (a) A child is eligible for a public education 1-24 scholarship under this subchapter if: 2-1 (1) the child is assigned to attend a public school 2-2 campus at which fewer than 50 percent of the students performed 2-3 satisfactorily on an assessment instrument administered under 2-4 Section 39.023(a) or (b) in reading, writing, or mathematics during 2-5 each of the preceding three years; 2-6 (2) the child's parent has chosen a district under 2-7 Section 29.201 for the child to attend using a public education 2-8 grant; and 2-9 (3) the district chosen by the child's parent has 2-10 rejected the child under Section 29.203. 2-11 (b) After a student has used a public education scholarship 2-12 to attend a free school, the student does not become ineligible for 2-13 the scholarship because the public school to which the student 2-14 would be assigned if the student were attending public school no 2-15 longer meets the criteria under Subsection (a)(1). 2-16 Sec. 29.353. PARENTAL CHOICE. (a) A school district shall 2-17 notify the parent of each child assigned to attend a campus 2-18 described by Section 29.352(a)(1) that the child is eligible for a 2-19 public education grant and that if the parent chooses another 2-20 district under Section 29.201 and that district rejects the child 2-21 under Section 29.203, the child is eligible to attend a free school 2-22 as provided by this subchapter. 2-23 (b) A child may attend private school but may not receive 2-24 funding from state and local sources for that purpose under this 2-25 subchapter. 2-26 Sec. 29.354. FINANCING. (a) Each school district is 2-27 entitled to receive state funding as provided by Chapter 42 and 3-1 other law. 3-2 (b) A child eligible under Section 25.001 to attend school 3-3 in a school district but who attends a free school under this 3-4 subchapter and who registers that free school choice with the 3-5 district shall be considered in determining the district's average 3-6 daily attendance under Section 42.005. The commissioner shall 3-7 adopt a procedure that a free school shall use to report the 3-8 average daily attendance of any student for whom the free school is 3-9 receiving public education scholarship funds under this subchapter. 3-10 Sec. 29.355. PUBLIC EDUCATION SCHOLARSHIP. (a) A child's 3-11 public education scholarship is the amount of state and local 3-12 funding per student for the district in which the child resides. A 3-13 child's public education scholarship is the entitlement of the 3-14 child, under the supervision of the child's parent, is not an 3-15 entitlement of any school of any kind, and is paid to the school 3-16 solely as a means of administrative convenience. 3-17 (b) The state portion of the public education scholarship 3-18 consists of amounts spent on behalf of or paid to a school district 3-19 for textbooks under Chapter 31, the basic allotment under 3-20 Subchapter B, Chapter 42, special allotments under Subchapter C, 3-21 Chapter 42, other than the transportation allotment under Section 3-22 42.155, the allotment under Subchapter F, Chapter 42, and 3-23 assistance under Subchapter H, Chapter 42. The scholarship does 3-24 not include funds allocated from the available school fund or the 3-25 adjustments under Sections 42.102, 42.103, or 42.105. 3-26 (c) The local portion of the public education scholarship 3-27 consists of: 4-1 (1) for special education students, the average 4-2 expenditure per student of local funds and federal funds received 4-3 by the district for all students with disabilities in all 4-4 instructional arrangements under Section 42.151, other than 4-5 students in residential care and treatment facilities under Section 4-6 42.151(b); or 4-7 (2) for students other than those identified as 4-8 special education students, the average expenditure per student of 4-9 local funds, subtracting the local funds used to compute the amount 4-10 under Subdivision (1). 4-11 (d) An eligible child who attends a free school is entitled 4-12 to 80 percent of the child's public education scholarship. A free 4-13 school may not share with, refund to, or rebate to the parent or 4-14 child in any manner the child's public education scholarship. The 4-15 school district the child would otherwise attend on the basis of 4-16 residence is entitled to the remainder of the child's public 4-17 education scholarship funds. 4-18 Sec. 29.356. TRANSPORTATION BY DISTRICT. A school district 4-19 shall offer each child attending a free school under this 4-20 subchapter transportation free of charge to and from the public 4-21 school the child would otherwise attend to the extent the district 4-22 would be required to provide transportation if the child were 4-23 attending that public school. 4-24 Sec. 29.357. CONDITIONS FOR RECEIPT OF FUNDS BY FREE 4-25 SCHOOLS. To receive a child's public education scholarship funds, 4-26 the free school selected for or by the child must certify to the 4-27 comptroller that the school has complied with the conditions 5-1 imposed by Sections 29.358-29.365. 5-2 Sec. 29.358. ACCREDITATION. A free school included in the 5-3 public education scholarship pilot program must be accredited by a 5-4 private organization recognized by the commissioner, except that a 5-5 newly established free school may operate without such 5-6 accreditation if the school applies for accreditation before 5-7 accepting students under the pilot program. A newly established 5-8 free school that is not accredited before the second anniversary of 5-9 the date the school begins operation may not participate in the 5-10 public education scholarship pilot program. 5-11 Sec. 29.359. ADMISSIONS. (a) A free school may not refuse 5-12 to enroll a child on the basis of the child's residence, race, 5-13 national origin, ethnic background, religion, physical or mental 5-14 ability or disability, or academic achievement. 5-15 (b) A free school may not consider athletic ability or the 5-16 amount of a public education scholarship in any admission process. 5-17 (c) A free school may refuse to enroll a child who has been 5-18 expelled from a school district during the term of alternative 5-19 education program placement or expulsion. 5-20 (d) Except as provided by Subsection (e), a free school that 5-21 has more public education scholarship applicants than available 5-22 positions must give priority to students at risk of dropping out of 5-23 school as defined by Section 29.081 and must fill other positions 5-24 by lottery. A free school must declare the number of available 5-25 positions and conduct the lottery for the next school year not 5-26 later than July 1 of each year. 5-27 (e) To achieve continuity in education, a free school may 6-1 give preference over at-risk students to enrolled students and to 6-2 the siblings of enrolled students residing in the same household or 6-3 other children residing in the same household as enrolled students 6-4 for the convenience of parents of those children. 6-5 Sec. 29.360. SPECIAL EDUCATION SERVICES. (a) A free school 6-6 shall provide, either directly or contractually with other free 6-7 schools or public schools, the educational and related services 6-8 identified by the individualized education plan for each child with 6-9 a disability attending the school with a public education 6-10 scholarship. 6-11 (b) A free school shall develop a child's individualized 6-12 education plan using procedures similar to the admission, review, 6-13 and dismissal committee under 20 U.S.C. Section 1401(a)(20). In 6-14 developing the plan, the free school shall use the plan developed 6-15 by the school district of the child's residence as a starting 6-16 point. 6-17 (c) The individualized education plan developed by the free 6-18 school may not be implemented without the written approval of the 6-19 child's parent. If a parent objects to the plan, the free school 6-20 must submit the plan to the commissioner. Not later than the 30th 6-21 day after the date the commissioner receives a plan under this 6-22 section, the commissioner must determine if the plan appropriately 6-23 addresses the child's needs. If the commissioner determines that a 6-24 free school has repeatedly submitted inappropriate individualized 6-25 education plans, the free school is ineligible to participate in 6-26 the pilot program. 6-27 Sec. 29.361. BILINGUAL EDUCATION SERVICES. A free school 7-1 shall comply with requirements related to bilingual education under 7-2 Subchapter B in the same manner as a school district. 7-3 Sec. 29.362. LUNCH; TRANSPORTATION. A free school shall use 7-4 a portion of the public education scholarship funds it receives to 7-5 provide lunch and transportation to the school for each eligible 7-6 child attending the school under this subchapter. Transportation 7-7 is required only from the public school the child would otherwise 7-8 attend. 7-9 Sec. 29.363. TUITION; ADDITIONAL CHARGES AND FEES. A free 7-10 school may not: 7-11 (1) charge an eligible child attending the school 7-12 under this subchapter tuition in addition to the child's public 7-13 education scholarship; or 7-14 (2) assess any additional charge, other than a fee 7-15 that a school board is authorized to charge under Section 11.158, 7-16 for providing an educational program or service to such a child. 7-17 Sec. 29.364. EXPULSION OF STUDENTS. A free school may not 7-18 expel a student unless the student engages in an activity for which 7-19 the student may be expelled under Section 37.007. 7-20 Sec. 29.365. ACCOUNTABILITY. (a) Each free school shall 7-21 report to the commissioner concerning the school's performance on 7-22 the academic excellence indicators under Section 39.051. 7-23 (b) Each free school shall administer an assessment 7-24 instrument required under Subchapter B, Chapter 39, in the same 7-25 manner as the assessment instrument is administered to public 7-26 school students. To ensure the security of the assessment 7-27 instrument and the validity of the results, the commissioner shall 8-1 adopt rules and procedures for the administration of state-required 8-2 assessment instruments in free schools. 8-3 (c) For the purpose of demonstrating the effectiveness of 8-4 the public education scholarship pilot program, the commissioner 8-5 shall report and publish student assessment results in a manner 8-6 that allows comparisons between students attending free schools and 8-7 students attending public schools. The commissioner's report must 8-8 show statewide results and district and campus results, if district 8-9 and campus results can be included without directly or indirectly 8-10 identifying the students assessed. Copies of the commissioner's 8-11 report shall be made available for public inspection at each public 8-12 school and free school. 8-13 Sec. 29.366. EVALUATION OF PUBLIC EDUCATION SCHOLARSHIP 8-14 PILOT PROGRAM. (a) The State Board of Education shall designate 8-15 an impartial organization with experience in evaluating school 8-16 choice programs to annually evaluate the public education 8-17 scholarship pilot program. 8-18 (b) An evaluation under this section must include a 8-19 comparison of each of the following factors before and after 8-20 implementation of the program: 8-21 (1) students' scores on assessment instruments 8-22 administered under Subchapter B, Chapter 39; 8-23 (2) student attendance; 8-24 (3) students' grades; 8-25 (4) incidents involving student discipline; 8-26 (5) socioeconomic data on students' families; 8-27 (6) parents' satisfaction with their children's 9-1 schools; and 9-2 (7) students' satisfaction with their schools. 9-3 (c) An evaluation under this section must examine the 9-4 effects of the program on: 9-5 (1) eligible children who receive a public education 9-6 scholarship and who enroll in a free school; 9-7 (2) eligible children who receive a public education 9-8 scholarship but who do not enroll in a free school; and 9-9 (3) eligible children who do not apply for a public 9-10 education scholarship. 9-11 Sec. 29.367. DUTIES OF COMPTROLLER. The comptroller shall 9-12 adopt rules, procedures, and forms for the payment of public 9-13 education scholarships to the free schools on behalf of parents of 9-14 students attending free schools. The comptroller's rules shall 9-15 provide for payment to a free school only after the school provides 9-16 services and only to the extent students receiving public education 9-17 scholarships attended school. 9-18 Sec. 29.368. STATUS OF FREE SCHOOLS. (a) Except as 9-19 required by federal law, including the Individuals with 9-20 Disabilities Education Act (20 U.S.C. Section 1400 et seq.), a free 9-21 school is not a government agent or instrumentality, and the 9-22 conduct of a free school is governed by law governing private 9-23 conduct rather than law governing state action. The purpose of 9-24 this subchapter is to allow maximum freedom to the private sector 9-25 to respond to educational needs without excessive government 9-26 control, and this subchapter shall be liberally construed to 9-27 achieve that purpose. 10-1 (b) The State Board of Education, the commissioner, or the 10-2 comptroller may not in any way regulate the educational program of 10-3 a free school, except as necessary to ensure the school's 10-4 compliance with this title. 10-5 Sec. 29.369. EXPIRATION. This subchapter expires August 31, 10-6 2009. 10-7 SECTION 2. The State Board of Education shall implement the 10-8 public education scholarship pilot program as provided by 10-9 Subchapter J, Chapter 29, Education Code, as added by this Act, 10-10 beginning with the 1998-1999 school year. 10-11 SECTION 3. The importance of this legislation and the 10-12 crowded condition of the calendars in both houses create an 10-13 emergency and an imperative public necessity that the 10-14 constitutional rule requiring bills to be read on three several 10-15 days in each house be suspended, and this rule is hereby suspended, 10-16 and that this Act take effect and be in force from and after its 10-17 passage, and it is so enacted.