1-1     By:  Bivins, Nelson                                   S.B. No. 1206

 1-2           (In the Senate - Filed March 12, 1997; March 17, 1997, read

 1-3     first time and referred to Committee on Education; April 21, 1997,

 1-4     reported adversely, with favorable Committee Substitute by the

 1-5     following vote:  Yeas 6, Nays 4; April 21, 1997, sent to printer.)

 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1206                  By:  Bivins

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to creation of a public education scholarship pilot

1-10     program for children assigned to attend certain low-performing

1-11     public schools and to the funding of public education grants.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Chapter 29, Education Code, is amended by adding

1-14     Subchapter J to read as follows:

1-15          SUBCHAPTER J.  PUBLIC EDUCATION SCHOLARSHIP PILOT PROGRAM

1-16           Sec. 29.351.  DEFINITIONS.  In this subchapter:

1-17                 (1)  "Free school" means a nongovernmental educational

1-18     establishment that exists for the general education of elementary

1-19     or secondary students and that accepts funding from state and local

1-20     sources as provided by this subchapter in lieu of tuition for some

1-21     or all of its students.  The term does not include a school that

1-22     provides education in a home setting or by the parent or that

1-23     limits enrollment to relatives of the staff of the school.

1-24                 (2)  "Parent" includes a guardian or custodian.

1-25                 (3)  "Private school" means a nongovernmental

1-26     educational establishment that does not accept funding from state

1-27     and local sources as provided by this subchapter in lieu of

1-28     tuition.

1-29           Sec. 29.352.  ELIGIBILITY OF CHILD FOR PUBLIC EDUCATION

1-30     SCHOLARSHIP.  (a)  A child is eligible for a public education

1-31     scholarship under this subchapter if:

1-32                 (1)  the child did not perform satisfactorily on an

1-33     assessment instrument administered under Section 39.023(a) in

1-34     reading, writing, or mathematics in the preceding three years;

1-35                 (2)  the child is assigned to attend a public school

1-36     campus, other than an alternative education campus, at which fewer

1-37     than 50 percent of the students performed satisfactorily on an

1-38     assessment instrument administered under Section 39.023(a) in

1-39     reading, writing, or mathematics during each of the preceding three

1-40     years;

1-41                 (3)  the child's parent has chosen a district under

1-42     Section 29.201 for the child to attend using a public education

1-43     grant;

1-44                 (4)  the district chosen by the child's parent has

1-45     rejected the child under Section 29.203;

1-46                 (5)  the child was not enrolled in a private school

1-47     during the current or preceding school year; and

1-48                 (6)  the child was not enrolled in a free school during

1-49     the current or preceding school year, unless the child attended the

1-50     free school using a public education scholarship.

1-51           (b)  After a student has used a public education scholarship

1-52     to attend a free school, the student remains eligible for the

1-53     scholarship until the student again enrolls in a public school.

1-54           (c)  In this section, "alternative education campus" means a

1-55     campus that provides:

1-56                 (1)  an alternative education program under Subchapter

1-57     A or C or under Subchapter A, Chapter 37; or

1-58                 (2)  a course of instruction to prepare for the high

1-59     school equivalency examination.

1-60           Sec. 29.353.  PARENTAL CHOICE.  (a)  A school district shall

1-61     notify the parent of each child assigned to attend a campus

1-62     described by Section 29.352(a)(2) that the child is eligible for a

1-63     public education grant and that if the parent chooses another

1-64     district under Section 29.201 and that district rejects the child

 2-1     under Section 29.203, the child is eligible to attend a free school

 2-2     as provided by this subchapter.

 2-3           (b)  A child may attend private school but may not receive

 2-4     funding from state and local sources for that purpose under this

 2-5     subchapter.

 2-6           Sec. 29.354.  FINANCING.  (a)  Each school district is

 2-7     entitled to receive state funding as provided by Chapter 42 and

 2-8     other law.

 2-9           (b)  A child eligible under Section 25.001 to attend school

2-10     in a school district but who attends a free school under this

2-11     subchapter and who registers that free school choice with the

2-12     district shall be considered in determining the district's average

2-13     daily attendance under Section 42.005.  The commissioner shall

2-14     adopt a procedure that a free school shall use to report the

2-15     average daily attendance of any student for whom the free school is

2-16     receiving public education scholarship funds under this subchapter.

2-17           Sec. 29.355.  PUBLIC EDUCATION SCHOLARSHIP.  (a)  Except as

2-18     provided by Subsection (b), a child's public education scholarship

2-19     is the sum of state and local revenues per student in average daily

2-20     attendance under the Foundation School Program, including all

2-21     school district tax revenues and an amount determined by the

2-22     commissioner for each state fiscal biennium that represents the

2-23     average annual state expenditure per student for textbooks and the

2-24     technology allotment under Section 31.021(b)(2), but not including

2-25     the adjustments under Sections 42.103 and 42.105, special education

2-26     allotments under Section 42.151, transportation allotments under

2-27     Section 42.155, or any district expenditures for debt service for

2-28     the acquisition or improvement of facilities.

2-29           (b)  For a student who is eligible for special education

2-30     services under Section 29.003, the commissioner shall adjust the

2-31     amount of the public education scholarship determined under

2-32     Subsection (a) so that the amount of the scholarship is not less

2-33     than the statewide average expenditure for a special education

2-34     student with similar disabilities.

2-35           (c)  The district a child attending a free school under this

2-36     subchapter would otherwise attend on the basis of residence shall

2-37     pay 80 percent of the child's public education scholarship to the

2-38     free school.  A free school may not share with, refund to, or

2-39     rebate to the parent or child in any manner the child's public

2-40     education scholarship.  The school district the child would

2-41     otherwise attend is entitled to the remainder of the child's public

2-42     education scholarship funds.

2-43           Sec. 29.356.  TRANSPORTATION BY DISTRICT.  A school district

2-44     shall offer each child attending a free school under this

2-45     subchapter transportation free of charge to and from the public

2-46     school the child would otherwise attend to the extent the district

2-47     would be required to provide transportation if the child were

2-48     attending that public school.

2-49           Sec. 29.357.  CONDITIONS FOR RECEIPT OF FUNDS BY FREE

2-50     SCHOOLS.  To receive a child's public education scholarship funds,

2-51     the free school selected for or by the child must certify to the

2-52     comptroller that the school has complied with the conditions

2-53     imposed by Sections 29.358 through 29.365.

2-54           Sec. 29.358.  ACCREDITATION.  A free school included in the

2-55     public education scholarship pilot program must be accredited by a

2-56     private organization recognized by the commissioner, except that a

2-57     newly established free school may operate without such

2-58     accreditation if the school applies for accreditation before

2-59     accepting students under the pilot program.  A newly established

2-60     free school that is not accredited before the second anniversary of

2-61     the date the school begins operation may not participate in the

2-62     public education scholarship pilot program.

2-63           Sec. 29.359.  ADMISSIONS.  (a)  A free school may not refuse

2-64     to enroll a child on the basis of the child's residence, race,

2-65     national origin, ethnic background, religion, physical or mental

2-66     ability or disability, or academic achievement.

2-67           (b)  A free school may not consider athletic ability or the

2-68     amount of a public education scholarship in any admission process.

2-69           (c)  A free school may refuse to enroll a child who has been

 3-1     expelled from a school district during the term of alternative

 3-2     education program placement or expulsion.

 3-3           (d)  Except as provided by Subsection (e), a free school that

 3-4     has more public education scholarship applicants than available

 3-5     positions must give priority to students at risk of dropping out of

 3-6     school as defined by Section 29.081 and must fill other positions

 3-7     by lottery.  A free school must declare the number of available

 3-8     positions and conduct the lottery for the next school year not

 3-9     later than July 1 of each year.

3-10           (e)  To achieve continuity in education, a free school may

3-11     give preference over at-risk students to enrolled students and to

3-12     the siblings of enrolled students residing in the same household or

3-13     other children residing in the same household as enrolled students

3-14     for the convenience of parents of those children.

3-15           Sec. 29.360.  SPECIAL EDUCATION SERVICES.  A free school

3-16     shall comply with requirements related to special education under

3-17     Subchapter A in the same manner as a school district.

3-18           Sec. 29.361.  BILINGUAL EDUCATION SERVICES.  A free school

3-19     shall comply with requirements related to bilingual education under

3-20     Subchapter B in the same manner as a school district.

3-21           Sec. 29.362.  LUNCH; TRANSPORTATION.  (a)  A free school

3-22     shall use a portion of the public education scholarship funds it

3-23     receives to provide lunch for each eligible child attending the

3-24     school under this subchapter to the same extent a school district

3-25     is required by law to provide lunch for the child.

3-26           (b)  A free school shall use a portion of the public

3-27     education scholarship funds it receives to provide transportation

3-28     to the school for each eligible child attending the school under

3-29     this subchapter.  Transportation is required only from the public

3-30     school the child would otherwise attend.  A free school is not

3-31     required to provide transportation for a student other than a

3-32     special education student from a point that is more than 20 miles

3-33     from the free school, measured along the shortest route that may be

3-34     traveled on public roads.

3-35           (c)  For transportation costs under this section, a free

3-36     school may apply for and, on application, is entitled to receive an

3-37     amount equal to 80 percent of the maximum state allotment per mile

3-38     for transportation of eligible special education students.  The

3-39     commissioner shall adopt rules for reimbursing free schools under

3-40     this subsection.

3-41           Sec. 29.363.  TUITION; ADDITIONAL CHARGES AND FEES.  A free

3-42     school may not:

3-43                 (1)  charge an eligible child attending the school

3-44     under this subchapter tuition in addition to the child's public

3-45     education scholarship; or

3-46                 (2)  assess any additional charge, other than a fee

3-47     that a board of trustees is authorized to charge under Section

3-48     11.158, for providing an educational program or service to such a

3-49     child.

3-50           Sec. 29.364.  EXPULSION OF STUDENTS.  A free school may not

3-51     expel a student unless the student engages in an activity for which

3-52     the student may be expelled under Section 37.007.

3-53           Sec. 29.365.  ACCOUNTABILITY.  (a)  Each free school shall

3-54     report to the commissioner concerning the school's performance on

3-55     the academic excellence indicators under Section 39.051.

3-56           (b)  Each free school shall administer an assessment

3-57     instrument required under Subchapter B, Chapter 39, in the same

3-58     manner as the assessment instrument is administered to public

3-59     school students.  To ensure the security of the assessment

3-60     instrument and the validity of the results, the commissioner shall

3-61     adopt rules and procedures for the administration of state-required

3-62     assessment instruments in free schools.

3-63           (c)  For the purpose of demonstrating the effectiveness of

3-64     the public education scholarship pilot program, the commissioner

3-65     shall report and publish student assessment results in a manner

3-66     that allows comparisons between students attending free schools and

3-67     students attending public schools.  The commissioner's report must

3-68     show statewide results and district and campus results, if district

3-69     and campus results can be included without directly or indirectly

 4-1     identifying the students assessed.  Copies of the commissioner's

 4-2     report shall be made available for public inspection at each public

 4-3     school and free school.

 4-4           (d)  The commissioner may determine that a free school is not

 4-5     eligible to continue receiving public education scholarship funds

 4-6     if the percentage of students attending the free school who perform

 4-7     satisfactorily on the assessment instruments required under

 4-8     Subchapter B, Chapter 39, is such that the free school would be

 4-9     considered low-performing under Subchapter D, Chapter 39, if it

4-10     were a public school campus.  The commissioner shall promptly

4-11     notify the comptroller of the commissioner's determination under

4-12     this subsection.

4-13           Sec. 29.366.  EVALUATION OF PUBLIC EDUCATION SCHOLARSHIP

4-14     PILOT PROGRAM.  (a)  The State Board of Education shall designate

4-15     an impartial organization with experience in evaluating school

4-16     choice programs to annually evaluate the public education

4-17     scholarship pilot program.

4-18           (b)  An evaluation under this section must include a

4-19     comparison of each of the following factors before and after

4-20     implementation of the program:

4-21                 (1)  students' scores on assessment instruments

4-22     administered under Subchapter B, Chapter 39;

4-23                 (2)  student attendance;

4-24                 (3)  students' grades;

4-25                 (4)  incidents involving student discipline;

4-26                 (5)  socioeconomic data on students' families;

4-27                 (6)  parents' satisfaction with their children's

4-28     schools; and

4-29                 (7)  students' satisfaction with their schools.

4-30           (c)  An evaluation under this section must examine the

4-31     effects of the program on:

4-32                 (1)  eligible children who receive a public education

4-33     scholarship and who enroll in a free school;

4-34                 (2)  eligible children who receive a public education

4-35     scholarship but who do not enroll in a free school; and

4-36                 (3)  eligible children who do not apply for a public

4-37     education scholarship.

4-38           Sec. 29.367.  DUTIES OF COMPTROLLER.  (a)  The comptroller

4-39     shall adopt rules, procedures, and forms for the payment of public

4-40     education scholarships to the free schools on behalf of parents of

4-41     students attending free schools. The comptroller's rules shall

4-42     provide for payment to a free school only after the school provides

4-43     services and only to the extent students receiving public education

4-44     scholarships attended school.

4-45           (b)  The comptroller shall adopt rules, procedures, and forms

4-46     for a free school to submit to review of the financial operations

4-47     of the school.  The comptroller may determine that a free school is

4-48     not eligible to continue receiving public education scholarship

4-49     funds if the school fails to satisfy generally accepted standards

4-50     of fiscal management.

4-51           Sec. 29.368.  STATUS OF FREE SCHOOLS.  (a)  Except as

4-52     required by federal law, including the Individuals with

4-53     Disabilities Education Act (20 U.S.C. Section 1400 et seq.), a free

4-54     school is not a government agent or instrumentality, and the

4-55     conduct of a free school is governed by law governing private

4-56     conduct rather than by law governing state action.  The purpose of

4-57     this subchapter is to allow maximum freedom to the private sector

4-58     to respond to educational needs without excessive government

4-59     control, and this subchapter shall be liberally construed to

4-60     achieve that purpose.

4-61           (b)  The State Board of Education, the commissioner, or the

4-62     comptroller may not in any way regulate the educational program of

4-63     a free school, except as necessary to ensure the school's

4-64     compliance with this title.

4-65           Sec. 29.369.  EXPIRATION.  This subchapter expires

4-66     August 31, 2009.

4-67           SECTION 2.  Sections 29.202 and 29.203, Education Code, are

4-68     amended to read as follows:

4-69           Sec. 29.202.  ELIGIBILITY.  (a)  A student is eligible to

 5-1     receive a public education grant or to attend another public school

 5-2     in the district in which the student resides under this subchapter

 5-3     if the student is assigned to attend a public school campus:

 5-4                 (1)  at which 50 percent or more of the students did

 5-5     not perform satisfactorily on an assessment instrument administered

 5-6     under Section 39.023(a) or (b) in the preceding three years; or

 5-7                 (2)  that was, at any time in the preceding three

 5-8     years, identified as low-performing by the commissioner under

 5-9     Subchapter D, Chapter 39.

5-10           (b)  A school district shall notify the parent of each child

5-11     eligible under this section that the child is eligible to receive a

5-12     public education grant or to attend another public school in the

5-13     district.

5-14           Sec. 29.203.  FINANCING.  (a)  A student eligible under

5-15     Section 25.001 to attend school in a school district but who under

5-16     this subchapter attends a public school in another district is

5-17     included in the average daily attendance of the district in which

5-18     the student resides.  The district in which the student attends

5-19     school shall report the student's attendance to the district in

5-20     which the student resides in accordance with rules adopted by the

5-21     commissioner.

5-22           (b)  A student's public education grant is the total state

5-23     and local funding per student for:

5-24                 (1)  the school district in which the student resides;

5-25     or

5-26                 (2)  the school district chosen by the child's parent

5-27     under Section 29.201, if that amount is greater than the amount

5-28     provided by Subdivision (1).

5-29           (c)  For purposes of Subsection (b), total [Total] funding

5-30     from state and local sources includes special allotments under

5-31     Subchapter C, Chapter 42, but does not include small district,

5-32     sparsity, and cost of education adjustments and allotments for

5-33     technology and transportation.  A student's public education grant

5-34     is the entitlement of the student, under the supervision of the

5-35     student's parent, guardian, or custodian, is not an entitlement of

5-36     any school district, and is paid to a school district solely as a

5-37     means of administrative convenience.

5-38           (d) [(c)]  A school district chosen by a student's parent

5-39     under Section 29.201 is entitled to accept or reject the

5-40     application for the student to attend school in that district but

5-41     may not use criteria that discriminate on the basis of a student's

5-42     race, ethnicity, academic achievement, athletic abilities, language

5-43     proficiency, sex, or socioeconomic status.  A school district that

5-44     has more acceptable applicants for attendance under this subchapter

5-45     than available positions must give priority to students at risk of

5-46     dropping out of school as defined by Section 29.081 and must fill

5-47     the available positions by lottery.  However, to achieve continuity

5-48     in education, a school district may give preference over at-risk

5-49     students to enrolled students and to the siblings of enrolled

5-50     students residing in the same household or other children residing

5-51     in the same household as enrolled students for the convenience of

5-52     parents, guardians, or custodians of those children.

5-53           (e) [(d)]  A school district chosen by a student's parent

5-54     under Section 29.201 may not charge the student tuition in addition

5-55     to the public education grant or charge tuition that is greater

5-56     than the district's average expenditure per student.  The school

5-57     district in which the student resides is entitled to the remainder,

5-58     if any, of the student's public education grant funds.

5-59           (f)  The school district in which the student resides is

5-60     entitled to accept or reject the application for the student to

5-61     attend another public school in that district but may not use

5-62     criteria that discriminate on the basis of a student's race,

5-63     ethnicity, academic achievement, athletic abilities, language

5-64     proficiency, sex, or socioeconomic status.  A school district that

5-65     has more acceptable applicants than available positions must give

5-66     priority to students at risk of dropping out of school as defined

5-67     by Section 29.081 and must fill the available positions by lottery.

5-68     However, to achieve continuity in education, a school district may

5-69     give preference over at-risk students to enrolled students and to

 6-1     the siblings of enrolled students residing in the same household or

 6-2     other children residing in the same household as enrolled students

 6-3     for the convenience of parents, guardians, or custodians of those

 6-4     children.

 6-5           (g) [(e)]  The school district in which a student resides

 6-6     shall provide each student attending a school in the district or in

 6-7     another district under this subchapter transportation free of

 6-8     charge to and from the school the student would otherwise attend.

 6-9           SECTION 3.  The State Board of Education shall implement the

6-10     public education scholarship pilot program as provided by

6-11     Subchapter J, Chapter 29, Education Code, as added by this Act,

6-12     beginning with the 1998-1999 school year.

6-13           SECTION 4.  Section 29.203, Education Code, as amended by

6-14     this Act, applies beginning with the 1997-1998 school year.

6-15           SECTION 5.  The importance of this legislation and the

6-16     crowded condition of the calendars in both houses create an

6-17     emergency and an imperative public necessity that the

6-18     constitutional rule requiring bills to be read on three several

6-19     days in each house be suspended, and this rule is hereby suspended,

6-20     and that this Act take effect and be in force from and after its

6-21     passage, and it is so enacted.

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