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.