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.