By Krusee                                              H.B. No. 709
         76R3598 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to creation of a public education scholarship program for
 1-3     certain children.
 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 PROGRAM
 1-8           Sec. 29.351.  DEFINITIONS.  In this subchapter:
 1-9                 (1)  "Parent" includes a guardian or custodian.
1-10                 (2)  "Private school" means a nongovernmental
1-11     educational establishment that exists for the general education of
1-12     elementary or secondary students.  The term does not include a
1-13     school that provides education in a home setting or by the parent
1-14     or that limits enrollment to relatives of the school's staff.
1-15                 (3)  "Scholarship" means a public education scholarship
1-16     granted under this subchapter.
1-17           Sec. 29.352.  ELIGIBLE CHILD.  (a)  A child is eligible for a
1-18     public education scholarship to be used to pay the costs of
1-19     attending a private school if the child:
1-20                 (1)  is educationally disadvantaged;
1-21                 (2)  is eligible to attend school under Section 25.001
1-22     in a school district that:
1-23                       (A)  has at least 60,000 students in average
1-24     daily attendance; and
 2-1                       (B)  has a majority of its territory located
 2-2     within the boundaries of a municipality with a population of one
 2-3     million or more;
 2-4                 (3)  was enrolled in a public school district during
 2-5     the preceding school year or is enrolling in prekindergarten,
 2-6     kindergarten, or first grade for the first time; and
 2-7                 (4)  failed to perform satisfactorily on the most
 2-8     recent assessment instrument administered to the child under
 2-9     Section 39.023(a), (b), or (c), unless an assessment instrument
2-10     under those sections has not been administered to the child.
2-11           (b)  After a child establishes eligibility under Subsection
2-12     (a) and attends a private school using a scholarship, the child is
2-13     entitled to continue receiving the scholarship, regardless of
2-14     whether the child continues to meet the requirements of Subsection
2-15     (a), until the earlier of the date on which the child graduates
2-16     from high school or the child's 21st birthday, unless the child:
2-17                 (1)  enrolls in a public school district after using
2-18     the scholarship; or
2-19                 (2)  changes residences and is no longer entitled under
2-20     Section 25.001 to attend school in the school district under which
2-21     the child's eligibility for a scholarship was established.
2-22           Sec. 29.353.  LIMITATION ON NUMBER OF SCHOLARSHIPS.  At any
2-23     one time, not more than 5,000 children in a school district may be
2-24     receiving  scholarships.  If more than that number of children seek
2-25     a scholarship, the agency shall award the scholarships based on a
2-26     lottery administered by the agency.
2-27           Sec. 29.354.  PARENTAL NOTIFICATION.  (a)  Not later than a
 3-1     date established by the commissioner, a school district described
 3-2     by  Section 29.352(a)(2) shall notify in writing the parent of each
 3-3     eligible child of the child's eligibility for a scholarship.
 3-4           (b)  A parent may apply for a scholarship on behalf of the
 3-5     parent's child by notifying the school district by a date
 3-6     established by the commissioner.
 3-7           Sec. 29.355.  AMOUNT OF SCHOLARSHIP; FINANCING.  (a)  A
 3-8     child's scholarship is an amount equal to the total average per
 3-9     student funding amount in the school district the child would
3-10     otherwise attend during the preceding school year for maintenance
3-11     and operations, including state and local funding, but excluding
3-12     money from the available school fund.
3-13           (b)  An eligible child who attends a private school in
3-14     compliance with this subchapter is entitled to 100 percent of the
3-15     child's scholarship, unless the tuition charged by the school is
3-16     less than the amount of the scholarship.  In that event, the school
3-17     district the child would otherwise attend is entitled to the amount
3-18     of the scholarship remaining after payment of tuition.
3-19           (c)  An eligible child who attends a private school using a
3-20     scholarship is included in determining the average daily attendance
3-21     under Section 42.005 of the school district in which the student
3-22     would otherwise attend school.
3-23           (d)  A child's scholarship is payable from the school
3-24     district to the private school on behalf of the child.  A child's
3-25     scholarship is the entitlement of the child, under the supervision
3-26     of the child's parent, is not an entitlement of any school, and is
3-27     paid to a school solely as a means of administrative convenience.
 4-1           Sec. 29.356.  ACCREDITATION.  (a)  Except as otherwise
 4-2     provided by this section, a private school that accepts students
 4-3     with scholarships must be accredited by a private organization
 4-4     recognized by the commissioner.
 4-5           (b)  A newly established private school may receive
 4-6     scholarship funds without accreditation if the school applies for
 4-7     accreditation before accepting students under the program.
 4-8           (c)  The commissioner may waive the requirements of this
 4-9     section for good cause.
4-10           Sec. 29.357.  ADMISSIONS.  (a)  A private school may not
4-11     refuse to enroll a child with a scholarship on the basis of the
4-12     child's residence, race, national origin, ethnic background,
4-13     religion, or academic achievement.
4-14           (b)  A private school may refuse to enroll a child with a
4-15     scholarship if the child:
4-16                 (1)  has been expelled from a school district; or
4-17                 (2)  has a criminal record.
4-18           (c)  A private school may not consider the athletic ability
4-19     of a child with a scholarship in any admission process relating to
4-20     the child.
4-21           (d)  Except as provided by Subsection (e), a private school
4-22     that has more applicants with scholarships than available positions
4-23     must fill the positions by lottery.  A private school must declare
4-24     the number of available positions and conduct the lottery for the
4-25     next school year not later than July 1 of each year.
4-26           (e)  A private school may give preference to an enrolled
4-27     student to achieve continuity and to siblings of an enrolled
 5-1     student or children residing in the same household as an enrolled
 5-2     student for the convenience of the parents of those children.
 5-3           Sec. 29.358.  TUITION; ADDITIONAL CHARGES AND FEES.  A
 5-4     private school may not:
 5-5                 (1)  charge an eligible child attending the school with
 5-6     a scholarship tuition:
 5-7                       (A)  in addition to the scholarship; or
 5-8                       (B)  in an amount greater than the standard
 5-9     tuition rate at the school; or
5-10                 (2)  assess any additional charge, other than a fee
5-11     that a school board is authorized to charge under Section 11.158,
5-12     for providing an educational program or service to the child.
5-13           Sec. 29.359.  ACCOUNTABILITY.  (a)  A private school shall
5-14     administer to each student with a scholarship who is enrolled in
5-15     the school the assessment instruments required under Section
5-16     39.023(a), (b), or (c), or other comparable assessment instruments
5-17     approved by the commissioner, in the same manner as those
5-18     instruments are administered to public school students.
5-19           (b)  A private school shall report to the commissioner
5-20     concerning the school's performance on the academic excellence
5-21     indicators under Section 39.051 for students with scholarships who
5-22     are enrolled in the school.  The commissioner shall publish the
5-23     school's performance information and make it available to parents
5-24     for review.
5-25           Sec. 29.360.  CERTIFICATION TO COMPTROLLER.  To receive
5-26     scholarship funds, a private school must certify to the comptroller
5-27     that the school has complied with the conditions imposed by Section
 6-1     29.357.
 6-2           Sec. 29.361.  DUTIES OF COMPTROLLER.  The comptroller shall
 6-3     adopt rules, procedures, and forms for the payment of scholarships
 6-4     to private schools on behalf of students attending those schools
 6-5     with scholarships.
 6-6           SECTION 2.  The State Board of Education shall implement the
 6-7     public education scholarship program as provided by Subchapter J,
 6-8     Chapter 29, Education Code, as added by this Act, beginning with
 6-9     the 1999-2000 school year.
6-10           SECTION 3.  The importance of this legislation and the
6-11     crowded condition of the calendars in both houses create an
6-12     emergency and an imperative public necessity that the
6-13     constitutional rule requiring bills to be read on three several
6-14     days in each house be suspended, and this rule is hereby suspended,
6-15     and that this Act take effect and be in force from and after its
6-16     passage, and it is so enacted.