By Grusendorf H.B. No. 2118 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to opportunity scholarships for children assigned to 1-3 attend a low-performing public school in certain school districts. 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. OPPORTUNITY SCHOLARSHIP PILOT PROGRAM 1-8 Sec. 29.351. PURPOSE; CONSTRUCTION. (a) To improve the 1-9 quality and efficiency of education for children, to increase the 1-10 authority, control, and empowerment of teachers, and to promote 1-11 competition among schools, a system of public free schools may 1-12 allow children the freedom to voluntarily choose between attending 1-13 a public or free school and financially support that choice. 1-14 (b) A purpose of this subchapter is to allow educators and 1-15 parents maximum freedom to respond to educational needs without 1-16 excessive government control, and this subchapter shall be 1-17 liberally construed to achieve that purpose. 1-18 (c) It is the intent of the legislature that freedom of 1-19 religion of all citizens is inviolate and that nothing in this 1-20 subchapter be construed to cause excessive governmental 1-21 entanglement with the religious instruction of a free school. With 2-1 respect to a free school, nothing in this subchapter gives a 2-2 governmental agency authority to regulate, control, supervise, or 2-3 in any way be involved in the: 2-4 (1) form, manner, or content of religious instruction, 2-5 ministry, teaching, or curriculum offered by the school; 2-6 (2) ability of the school to select and supervise 2-7 qualified personnel and otherwise control the terms of employment, 2-8 including the right to employ individuals who share the religious 2-9 views of the school; 2-10 (3) internal self-governance and autonomy of the 2-11 school; or 2-12 (4) religious environment of the school, such as 2-13 symbols, art, icons, and scripture. 2-14 Sec. 29.352. DEFINITIONS. In this subchapter: 2-15 (1) "Free school" means a nongovernmental educational 2-16 establishment for the general education of elementary or secondary 2-17 students that accepts opportunity scholarships under this 2-18 subchapter. A "free school" does not include a school that limits 2-19 enrollment to relatives of the staff of the school. 2-20 (2) "Parent" includes a person standing in parental 2-21 relation. 2-22 (3) "Private school" means a nongovernmental 2-23 educational establishment that does not accept opportunity 2-24 scholarships under this subchapter. 2-25 (4) "Public school" means a school that is 3-1 administered, operated, and staffed by governmental employees. 3-2 Sec. 29.353. PARTICIPATING SCHOOL DISTRICTS; CHILD 3-3 ELIGIBILITY; PARENTAL CHOICE. (a) Each school district that has an 3-4 average daily attendance greater than 55,000 according to the 3-5 1997-1998 Public Education Information Management System data shall 3-6 participate in an opportunity scholarship pilot program. 3-7 (b) Subject to Subsections (c) and (d), a child is entitled 3-8 to participate in the program and attend, with public financial 3-9 aid, the public school or free school chosen by the child's parent, 3-10 subject to availability, if the child is eligible under Section 3-11 25.001 to attend school in a participating district and is assigned 3-12 to attend a campus in the participating district: 3-13 (1) that was, at any time in the preceding three 3-14 years, identified as low-performing by the commissioner under 3-15 Subchapter D, chapter 39; or 3-16 (2) at which 50 percent or more of the students did 3-17 not perform satisfactorily on an assessment instrument administered 3-18 under Section 39.023(a) or (c) in any two of the preceding three 3-19 years. 3-20 (c) Not more than 10 percent of eligible students assigned 3-21 to a single public school campus may participate in the program. 3-22 If more than 10 percent of eligible students assigned to a single 3-23 public school campus express intent to participate under Subsection 3-24 (d), the scholarships shall be allocated according to a random 3-25 selection process. 4-1 (d) Not later than February 1 of each year, a school 4-2 district shall notify the parent of each child eligible under this 4-3 program of the child's eligibility. The notice shall inform the 4-4 parent that the district should be notified of intent to 4-5 participate in the program by April 1 of that year. Anyone who 4-6 declares intent to participate after April 1 shall be admitted to 4-7 the program so long as the limit in Subsection (c) is not exceeded. 4-8 (e) The parent's choice under Subsections (b) and (c) in 4-9 regard to a participating child must be registered with the central 4-10 administrative office of the participating school district for the 4-11 child to obtain public financial aid. 4-12 (f) This subchapter does not restrict the right of a child 4-13 to attend private school, but the child may not receive funding for 4-14 that purpose under this subchapter. A child attending a private or 4-15 free school without an opportunity scholarship is not required to 4-16 register with the participating school district in which the child 4-17 would otherwise attend school. 4-18 Sec. 29.354. FINANCING. (a) Each participating school 4-19 district is entitled to receive public financing as provided by 4-20 law. 4-21 (b) A participating child who chooses to attend a free 4-22 school or a public school in a district other than the 4-23 participating district and registers that choice under Section 4-24 29.353 is included in determining the average daily attendance 4-25 under Section 42.005 of the participating district. The 5-1 commissioner shall adopt a procedure for a free school or public 5-2 school to use in reporting the daily attendance of a child for whom 5-3 the school receives opportunity scholarship money. 5-4 (c) A child's opportunity scholarship is an amount equal to 5-5 the total average per student funding amount in the participating 5-6 school district during the preceding school year for maintenance 5-7 and operations, including state and local funding and funding based 5-8 on special categories of students, but excluding money from the 5-9 available school fund and federal money. 5-10 (d) Each participating school district shall distribute to 5-11 each participating child's parent a certificate stating the amount 5-12 of the child's opportunity scholarship. The parent may present the 5-13 certificate to the child's school of choice in lieu of direct 5-14 payment. 5-15 (e) A participating school district shall retain 100 percent 5-16 of the opportunity scholarship of a participating child assigned to 5-17 attend a campus in the district described by Section 29.353 (b) who 5-18 attends another public school campus in the district. If the 5-19 participating child attends a public school in another school 5-20 district, the participating school district shall transfer 100 5-21 percent of the child's opportunity scholarship to the district in 5-22 which the child attends school. If the participating child attends 5-23 a free school, the participating school district shall: 5-24 (1) retain 20 percent of the child's opportunity 5-25 scholarship; and 6-1 (2) transfer 80 percent of the child's opportunity 6-2 scholarship to the free school the child attends. 6-3 (f) The free school, or the public school outside the 6-4 participating school district in which the child would otherwise 6-5 attend school, must present the child's certificate to the 6-6 participating school district to receive payment. The 6-7 participating school district shall pay the free school or public 6-8 school on a monthly pro rata basis after services have been 6-9 provided. 6-10 (g) A child's opportunity scholarship is the entitlement of 6-11 the child, under the supervision of the child's parent, is not the 6-12 entitlement of any school, and is paid to a free school or public 6-13 school solely as a means of administrative convenience. 6-14 (h) A free school may not share, refund, or rebate the 6-15 child's opportunity scholarship with the parent or child. A free 6-16 school may not charge a participating child attending the school 6-17 under this subchapter tuition in excess of the amount of the 6-18 child's opportunity scholarship. 6-19 Sec. 29.355. RECEIPT OF MONEY BY FREE SCHOOLS. (a) To 6-20 receive the applicable portion of a child's opportunity 6-21 scholarship, a free school must certify to the participating school 6-22 district in which the child would otherwise attend school that 6-23 that, with respect to scholarship students, the free school will 6-24 not refuse to admit a student on the basis of the student's 6-25 residence, race, national origin, ethnic background. 7-1 (b) A free school that has more opportunity scholarship 7-2 applicants than available positions must fill the positions by a 7-3 random selection process. A free school may give preference to an 7-4 enrolled student to achieve continuity and to siblings of an 7-5 enrolled student residing in the same household or other children 7-6 residing in the same household as an enrolled student for the 7-7 convenience of the parents of those children. 7-8 (c) Each opportunity scholarship student attending a free 7-9 school shall be assessed as required by Subchapter B, Chapter 39. 7-10 The aggregate results of the assessment instruments shall be 7-11 published, and copies of the statewide scores shall be made 7-12 available for parental inspection at each public or free school. 7-13 Sec. 29.356. TRANSPORTATION. Each participating school 7-14 district shall offer transportation without charge to a free school 7-15 student who would otherwise attend school in the district to and 7-16 from the public school the student would otherwise attend. 7-17 Sec. 29.357. NONSTATE ACTION AND FREE SCHOOL AUTONOMY. A 7-18 free school that accepts an opportunity scholarship is not an agent 7-19 or arm of the government, and the conduct of the free school is 7-20 governed as private conduct, not state action. A free school is 7-21 not subject to any educational statute or rule except this 7-22 subchapter. 7-23 Sec. 29.358. REPORT TO LEGISLATURE. The Center for the 7-24 Study of Educational Reform at the University of North Texas shall 7-25 report to the legislature on the success of the opportunity 8-1 scholarship program not later than January 1, 2003. 8-2 SECTION 2. This Act applies beginning with the 1999-2000 8-3 school year. 8-4 SECTION 3. The importance of this legislation and the 8-5 crowded condition of the calendars in both houses create an 8-6 emergency and an imperative public necessity that the 8-7 constitutional rule requiring bills to be read on three several 8-8 days in each house be suspended, and this rule is hereby suspended, 8-9 and that this Act take effect and be in force from and after its 8-10 passage, and it is so enacted.