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.