By Wilson                                             H.B. No. 1240
         77R4205 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to creation of a public education voucher pilot program
 1-3     for 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 VOUCHER PILOT 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           Sec. 29.352.  ELIGIBLE CHILD.  (a)  A child is eligible for a
1-16     voucher to be used to pay the costs of attending a private school
1-17     if the child:
1-18                 (1)  is educationally disadvantaged;
1-19                 (2)  is eligible to attend school under Section 25.001
1-20     in a school district that is among the six largest districts in
1-21     membership for the 2001-2002 school year, as determined by the
1-22     commissioner;
1-23                 (3)  was enrolled in a public school district during
1-24     the preceding school year or is enrolling in prekindergarten,
 2-1     kindergarten, or first grade for the first time; and
 2-2                 (4)  either:
 2-3                       (A)  failed to perform satisfactorily on the most
 2-4     recent assessment instrument administered to the child under
 2-5     Section 39.023(a), (b), (c), or (l); or
 2-6                       (B)  is eligible under Subchapter G to attend
 2-7     another public school in the district in which the child resides or
 2-8     to receive a public education grant to use to attend a public
 2-9     school in another district, but has had an application to attend
2-10     another school in the child's district or in another district
2-11     rejected.
2-12           (b)  After a child establishes eligibility under Subsection
2-13     (a) and attends a private school using a voucher, the child is
2-14     entitled to continue receiving the voucher, regardless of whether
2-15     the child continues to meet the requirements of Subsection (a),
2-16     until the earlier of the date on which the child graduates from
2-17     high school or the child's 21st birthday, unless the child:
2-18                 (1)  enrolls in a public school district after using
2-19     the voucher; or
2-20                 (2)  changes residences and is no longer entitled under
2-21     Section 25.001 to attend school in the school district under which
2-22     the child's eligibility for a voucher was established.
2-23           Sec. 29.353.  PARENTAL NOTIFICATION.  (a)  Not later than a
2-24     date established by the commissioner, a school district described
2-25     by  Section 29.352(a)(2) shall notify in writing the parent of each
2-26     eligible child of the child's eligibility for a voucher.
2-27           (b)  A parent may apply for a voucher on behalf of the
 3-1     parent's child by notifying the school district by a date
 3-2     established by the commissioner.
 3-3           Sec. 29.354.  AMOUNT OF VOUCHER; FINANCING.  (a)  A child's
 3-4     voucher is an amount equal to the total average per student funding
 3-5     amount in the school district the child would otherwise attend
 3-6     during the preceding school year for maintenance and operations,
 3-7     including state and local funding, but excluding money from the
 3-8     available school fund.
 3-9           (b)  An eligible child who attends a private school in
3-10     compliance with this subchapter is entitled to 100 percent of the
3-11     child's voucher, unless the tuition charged by the school is less
3-12     than the amount of the voucher.  In that event, the school district
3-13     the child would otherwise attend is entitled to the amount of the
3-14     voucher remaining after payment of tuition.
3-15           (c)  An eligible child who attends a private school using a
3-16     voucher is included in determining the average daily attendance
3-17     under Section 42.005 of the school district in which the student
3-18     would otherwise attend school.
3-19           (d)  A child's voucher is payable from the school district to
3-20     the private school on behalf of the child.  A child's voucher is
3-21     the entitlement of the child, under the supervision of the child's
3-22     parent, is not an entitlement of any school, and is paid to a
3-23     school solely as a means of administrative convenience.
3-24           Sec. 29.355.  ACCREDITATION.  (a)  Except as otherwise
3-25     provided by this section, a private school that accepts students
3-26     with vouchers must be accredited by a private organization
3-27     recognized by the commissioner.
 4-1           (b)  A newly established private school may receive voucher
 4-2     funds without accreditation if the school applies for accreditation
 4-3     before accepting students under the program.
 4-4           (c)  The commissioner may waive the requirements of this
 4-5     section for good cause.
 4-6           Sec. 29.356.  ADMISSIONS.  (a)  A private school may not
 4-7     refuse to enroll a child with a voucher on the basis of the child's
 4-8     residence, race, national origin, ethnic background, religion,
 4-9     disability, or academic achievement.
4-10           (b)  A private school may refuse to enroll a child with a
4-11     voucher if the child:
4-12                 (1)  has been expelled from a public school; or
4-13                 (2)  has a criminal record.
4-14           (c)  A private school may not consider the athletic ability
4-15     of a child with a voucher in any admission process relating to the
4-16     child.
4-17           (d)  Except as provided by Subsection (e), a private school
4-18     that has more applicants with vouchers than available positions
4-19     must fill the positions by lottery.  A private school must declare
4-20     the number of available positions and conduct the lottery for the
4-21     next school year not later than July 1 of each year.
4-22           (e)  A private school may give preference to an enrolled
4-23     student to achieve continuity and to siblings of an enrolled
4-24     student or children residing in the same household as an enrolled
4-25     student for the convenience of the parents of those children.
4-26           Sec. 29.357.  TUITION; ADDITIONAL CHARGES AND FEES.  A
4-27     private school may not:
 5-1                 (1)  charge an eligible child attending the school with
 5-2     a voucher tuition:
 5-3                       (A)  in addition to the voucher; or
 5-4                       (B)  in an amount greater than the standard
 5-5     tuition rate at the school; or
 5-6                 (2)  assess any additional charge, other than a fee
 5-7     that the board of trustees of a school district is authorized to
 5-8     charge under Section 11.158, for providing an educational program
 5-9     or service to the child.
5-10           Sec. 29.358.  ACCOUNTABILITY.  (a)  A private school shall
5-11     administer to each student with a voucher who is enrolled in the
5-12     school the assessment instruments required under Section 39.023(a),
5-13     (b), (c), or (l), or other comparable assessment instruments
5-14     approved by the commissioner, in the same manner as those
5-15     instruments are administered to public school students.
5-16           (b)  A private school shall report to the commissioner
5-17     concerning the school's performance on the academic excellence
5-18     indicators under Section 39.051 for students with vouchers who are
5-19     enrolled in the school.  The commissioner shall publish the
5-20     school's performance information and make it available to parents
5-21     for review.
5-22           Sec. 29.359.  CERTIFICATION TO COMPTROLLER.  To receive
5-23     voucher funds, a private school must certify to the comptroller
5-24     that the school has complied with the conditions imposed by Section
5-25     29.356.
5-26           Sec. 29.360.  DUTIES OF COMPTROLLER.  The comptroller shall
5-27     adopt rules, procedures, and forms for the payment of vouchers to
 6-1     private schools on behalf of students attending those schools with
 6-2     vouchers.
 6-3           Sec. 29.361.  EVALUATION AND REPORT.  The commissioner, in
 6-4     consultation with the school districts whose students are eligible
 6-5     to participate in the pilot program, shall evaluate the program
 6-6     established by this subchapter and report the evaluation, together
 6-7     with recommendations, to the legislature not later than December 1,
 6-8     2004.
 6-9           Sec. 29.362.  EXPIRATION.  This subchapter expires September
6-10     1, 2005, and vouchers may not be issued for the 2005-2006 or a
6-11     later school year.
6-12           SECTION 2.  The State Board of Education shall implement the
6-13     public education voucher pilot program as provided by Subchapter J,
6-14     Chapter 29, Education Code, as added by this Act, beginning with
6-15     the 2001-2002 school year.
6-16           SECTION 3.  This Act takes effect immediately if it receives
6-17     a vote of two-thirds of all the members elected to each house, as
6-18     provided by Section 39, Article III, Texas Constitution.  If this
6-19     Act does not receive the vote necessary for immediate effect, this
6-20     Act takes effect September 1, 2001.