By: Bivins S.B. No. 10 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED AN ACT 1-1 relating to the creation of a public education scholarship program 1-2 for certain educationally disadvantaged children in certain school 1-3 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. PUBLIC EDUCATION SCHOLARSHIP PROGRAM 1-8 Sec. 29.351. DEFINITIONS. In this subchapter: 1-9 (1) "Free school" means a nongovernmental educational 1-10 establishment that exists for the general education of elementary 1-11 or secondary students and that accepts funding from state and local 1-12 sources as provided by this subchapter in lieu of tuition for some 1-13 or all of its students. The term does not include a school that 1-14 provides education in a home setting or by the parent or that 1-15 limits enrollment to relatives of the staff of the school. 1-16 (2) "Parent" includes a guardian or custodian. 1-17 (3) "Private school" means a nongovernmental 1-18 educational establishment that does not accept funding from state 1-19 and local sources as provided by this subchapter in lieu of 1-20 tuition. 1-21 Sec. 29.352. ELIGIBILITY OF CHILD FOR PUBLIC EDUCATION 1-22 SCHOLARSHIP. (a) Except as provided by Section 29.368, a child is 2-1 eligible for a public education scholarship under this subchapter 2-2 if the child: 2-3 (1) attends school in a district whose central 2-4 administrative office is located in a county with a population of 2-5 more than 575,000; 2-6 (2) is educationally disadvantaged; 2-7 (3) did not perform satisfactorily on the most recent 2-8 assessment instrument administered to the child under Section 2-9 39.023(a) or (c) in reading, writing, or mathematics; 2-10 (4) was not enrolled in a private school during the 2-11 current or preceding school year; and 2-12 (5) was not enrolled in a free school during the 2-13 current or preceding school year, unless the child attended the 2-14 free school using a public education scholarship. 2-15 (b) After a student has used a public education scholarship 2-16 to attend a free school, the student remains eligible for the 2-17 scholarship until the student again enrolls in a public school. 2-18 (c) In this section, "alternative education campus" means a 2-19 campus that primarily provides: 2-20 (1) an alternative education program under Subchapter 2-21 A or C or under Subchapter A, Chapter 37; or 2-22 (2) a course of instruction to prepare for the high 2-23 school equivalency examination. 2-24 Sec. 29.353. PARENTAL CHOICE. (a) A school district 2-25 described by Section 29.352(a)(1) shall notify the parent of each 2-26 child eligible for a public education scholarship that the child is 3-1 eligible to attend a free school as provided by this subchapter. 3-2 (b) A child may attend a private school but may not receive 3-3 funding from state and local sources for that purpose under this 3-4 subchapter. 3-5 Sec. 29.354. FINANCING. (a) Each school district is 3-6 entitled to receive state funding as provided by Chapter 42 and 3-7 other law. 3-8 (b) A child eligible under Section 25.001 to attend school 3-9 in a school district but who attends a free school under this 3-10 subchapter and who registers that free school choice with the 3-11 district shall be considered in determining the district's average 3-12 daily attendance under Section 42.005. The commissioner shall 3-13 adopt a procedure that a free school shall use to report the 3-14 average daily attendance of any student for whom the free school is 3-15 receiving public education scholarship funds under this subchapter. 3-16 Sec. 29.355. PUBLIC EDUCATION SCHOLARSHIP. (a) Except as 3-17 provided by Subsection (b), a child's public education scholarship 3-18 is the sum of state and local revenues per student in average daily 3-19 attendance under the Foundation School Program, including all 3-20 school district tax revenues and an amount determined by the 3-21 commissioner for each state fiscal biennium that represents the 3-22 average annual state expenditure per student for textbooks and the 3-23 technology allotment under Section 31.021(b)(2). 3-24 (b) The district that a child attending a free school under 3-25 this subchapter would otherwise attend on the basis of residence 3-26 shall pay to the free school the lesser of: 4-1 (1) 80 percent of the child's public education 4-2 scholarship; or 4-3 (2) an amount equal to the sum of state and local 4-4 revenues per student less the sum of the adjustments under Sections 4-5 42.103 and 42.105, distributions from the available school fund, 4-6 federal funds, and any district expenditures for debt service for 4-7 the acquisition or improvement of facilities, computed on a per 4-8 student basis. 4-9 (c) A free school may not share with, refund to, or rebate 4-10 to the parent or child in any manner the child's public education 4-11 scholarship. The school district the child would otherwise attend 4-12 is entitled to the remainder of the child's public education 4-13 scholarship funds. 4-14 Sec. 29.356. TRANSPORTATION BY DISTRICT. A school district 4-15 shall offer each child attending a free school under this 4-16 subchapter transportation free of charge to and from the public 4-17 school the child would otherwise attend to the extent the district 4-18 would be required to provide transportation if the child were 4-19 attending that public school. 4-20 Sec. 29.357. CONDITIONS FOR RECEIPT OF FUNDS BY FREE 4-21 SCHOOLS. To receive a child's public education scholarship funds, 4-22 the free school selected for or by the child must certify to the 4-23 comptroller that the school has complied with the conditions 4-24 imposed by Sections 29.358 through 29.364. 4-25 Sec. 29.358. ACCREDITATION. A free school included in the 4-26 public education scholarship program must be accredited by a 5-1 private organization recognized by the commissioner, except that a 5-2 newly established free school may operate without such 5-3 accreditation if the school applies for accreditation before 5-4 accepting students under the pilot program. A newly established 5-5 free school that is not accredited before the second anniversary of 5-6 the date the school begins operation may not participate in the 5-7 public education scholarship pilot program. 5-8 Sec. 29.359. ADMISSIONS. (a) A free school may not refuse 5-9 to enroll a child on the basis of the child's residence, race, 5-10 national origin, ethnic background, religion, physical or mental 5-11 ability or disability, or academic achievement. 5-12 (b) A free school may not consider athletic ability or the 5-13 amount of a public education scholarship in any admission process. 5-14 (c) A free school may refuse to enroll a child who has been 5-15 expelled from a school district during the term of alternative 5-16 education program placement or expulsion. 5-17 (d) Except as provided by Subsection (e), a free school that 5-18 has more public education scholarship applicants than available 5-19 positions must give priority to students at risk of dropping out of 5-20 school as defined by Section 29.081 and must fill other positions 5-21 by lottery. A free school must declare the number of available 5-22 positions and conduct the lottery for the next school year not 5-23 later than July 1 of each year. 5-24 (e) To achieve continuity in education, a free school may 5-25 give preference over at-risk students to enrolled students and to 5-26 the siblings of enrolled students residing in the same household or 6-1 other children residing in the same household as enrolled students 6-2 for the convenience of parents of those children. 6-3 Sec. 29.360. SPECIAL EDUCATION SERVICES. A child who is 6-4 eligible under state or federal law to receive special services, as 6-5 defined by Section 29.002, and who is eligible for a public 6-6 education scholarship is entitled to receive those services from 6-7 the state or the school district the child would otherwise attend 6-8 as provided by federal or state law. 6-9 Sec. 29.361. BILINGUAL EDUCATION SERVICES. A parent is 6-10 entitled to request, with the expectation that the request will not 6-11 be unreasonably denied, that a free school provide bilingual 6-12 education services or address the language needs of the child. A 6-13 free school that provides bilingual education in accordance with 6-14 state law is entitled to funding based on allotments for bilingual 6-15 education as provided by Section 42.153 for each child eligible for 6-16 that allotment. 6-17 Sec. 29.362. TUITION; ADDITIONAL CHARGES AND FEES. A free 6-18 school may not: 6-19 (1) charge an eligible child attending the school 6-20 under this subchapter tuition in addition to the child's public 6-21 education scholarship; or 6-22 (2) assess any additional charge, other than a fee 6-23 that a board of trustees is authorized to charge under Section 6-24 11.158, for providing an educational program or service to such a 6-25 child. 6-26 Sec. 29.363. EXPULSION OF STUDENTS. A free school may not 7-1 expel a student unless the student engages in an activity for which 7-2 the student may be expelled under Section 37.007. 7-3 Sec. 29.364. ACCOUNTABILITY. (a) Each free school shall 7-4 report to the commissioner concerning the school's performance on 7-5 the academic excellence indicators under Section 39.051. 7-6 (b) Each free school shall administer the appropriate 7-7 assessment instrument under Subchapter B, Chapter 39, to each 7-8 student in each grade in which a student is using a public 7-9 education scholarship to attend the school and for which an 7-10 assessment instrument is required. A free school shall administer 7-11 the assessment instrument in the same manner as the assessment 7-12 instrument is administered to public school students. To ensure 7-13 the security of the assessment instrument and the validity of the 7-14 results, the commissioner shall adopt rules and procedures for the 7-15 administration of state-required assessment instruments in free 7-16 schools. 7-17 (c) For the purpose of evaluating the effectiveness of the 7-18 public education scholarship program, the commissioner shall report 7-19 and publish student assessment results in a manner that allows 7-20 comparisons between students attending free schools and students 7-21 attending public schools. The commissioner's report must show 7-22 statewide results and district and campus results. The 7-23 commissioner's report may not include any results that permit 7-24 directly or indirectly identifying the students assessed. Copies 7-25 of the commissioner's report shall be made available for public 7-26 inspection at each public school and free school. 8-1 (d) The commissioner may determine that a free school is not 8-2 eligible to continue receiving public education scholarship funds 8-3 if the percentage of students attending the free school who perform 8-4 satisfactorily on the assessment instruments required under 8-5 Subchapter B, Chapter 39, is such that the free school would be 8-6 considered low-performing under Subchapter D, Chapter 39, if it 8-7 were a public school campus. The commissioner shall promptly 8-8 notify the comptroller of the commissioner's determination under 8-9 this subsection. 8-10 Sec. 29.365. EVALUATION OF PUBLIC EDUCATION SCHOLARSHIP 8-11 PILOT PROGRAM. (a) The State Board of Education shall designate 8-12 an impartial organization with experience in evaluating school 8-13 choice programs to annually evaluate the public education 8-14 scholarship program. 8-15 (b) An evaluation under this section must: 8-16 (1) include a comparison of each of the following 8-17 factors before and after implementation of the program: 8-18 (A) student performance and improvement on 8-19 assessment instruments administered under Subchapter B, Chapter 39; 8-20 (B) student performance and improvement in the 8-21 classroom; 8-22 (C) student attendance; 8-23 (D) students' grades; 8-24 (E) incidents involving student discipline; 8-25 (F) socioeconomic data on students' families; 8-26 and 9-1 (G) parents' satisfaction with their children's 9-2 schools; 9-3 (2) include a comparison of performance on assessment 9-4 instruments administered under Section 39.023 between students 9-5 using public education scholarships to attend free schools and 9-6 students in public schools who are of a similar age and background 9-7 and who reside in similar school districts; and 9-8 (3) examine the effects of the program on: 9-9 (A) eligible children who receive a public 9-10 education scholarship and who enroll in a free school; 9-11 (B) eligible children who receive a public 9-12 education scholarship but who do not enroll in a free school; and 9-13 (C) eligible children who do not apply for a 9-14 public education scholarship. 9-15 (c) Not later than September 1, 2004, the organization 9-16 conducting the evaluation shall file a written report stating the 9-17 results of the evaluation with the governor, lieutenant governor, 9-18 and speaker of the house of representatives. This subsection 9-19 expires January 1, 2005. 9-20 Sec. 29.366. DUTIES OF COMPTROLLER. (a) The comptroller 9-21 shall adopt rules, procedures, and forms for the payment of public 9-22 education scholarships to the free schools on behalf of parents of 9-23 students attending free schools. The comptroller's rules shall 9-24 provide for payment to a free school only after the school provides 9-25 services and only to the extent students receiving public education 9-26 scholarships attended school. 10-1 (b) The comptroller shall adopt rules, procedures, and forms 10-2 for a free school to permit review of the financial operations of 10-3 the school. The comptroller may determine that a free school is 10-4 not eligible to continue receiving public education scholarship 10-5 funds if the school fails to satisfy generally accepted standards 10-6 of fiscal management. 10-7 Sec. 29.367. STATUS OF FREE SCHOOLS. (a) Except as 10-8 required by federal law, including the Individuals with 10-9 Disabilities Education Act (20 U.S.C. Section 1400 et seq.), a free 10-10 school is not a government agent or instrumentality, and the 10-11 conduct of a free school is governed by law governing private 10-12 conduct rather than by law governing state action. The purpose of 10-13 this subchapter is to allow maximum freedom to the private sector 10-14 to respond to educational needs without excessive government 10-15 control, and this subchapter shall be liberally construed to 10-16 achieve that purpose. 10-17 (b) The State Board of Education, the commissioner, or the 10-18 comptroller may not in any way regulate the educational program of 10-19 a free school, except as necessary to ensure the school's 10-20 compliance with this title. 10-21 Sec. 29.368. PARTIAL TERMINATION OF PROGRAM. (a) Not later 10-22 than July 1, 2005, the commissioner shall compare the average 10-23 performance of each free school's students to the average 10-24 performance of students in public schools who are of a similar age 10-25 and background and who reside in similar school districts. 10-26 (b) Beginning with the 2005-2006 school year: 11-1 (1) a free school may not accept a student using a 11-2 public education scholarship unless the school's average student 11-3 performance level, as determined under Subsection (a), is at least 11-4 10 percent higher than the average performance level of comparable 11-5 public school students; and 11-6 (2) a student who used a public education scholarship 11-7 to attend a free school other than a free school whose average 11-8 student performance level meets or exceeds the level required by 11-9 Subdivision (1) is no longer eligible for a public education 11-10 scholarship. 11-11 SECTION 2. This Act takes effect September 1, 1999. 11-12 SECTION 3. The State Board of Education shall implement the 11-13 public education scholarship program as provided by Subchapter J, 11-14 Chapter 29, Education Code, as added by this Act, beginning with 11-15 the 2000-2001 school year. 11-16 SECTION 4. The importance of this legislation and the 11-17 crowded condition of the calendars in both houses create an 11-18 emergency and an imperative public necessity that the 11-19 constitutional rule requiring bills to be read on three several 11-20 days in each house be suspended, and this rule is hereby suspended.