By:  Grusendorf                                                   H.B. No. 2465


A BILL TO BE ENTITLED
AN ACT
relating to an education freedom pilot program for certain children in certain school districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 29; Education Code, is amended by adding Subchapter J to read as follows:
SUBCHAPTER J. EDUCATION FREEDOM PROGRAM
Sec. 29.351. DEFINITIONS. In this subchapter: (1) "Eligible district" means a school district in which, during the 2001–2002 school year: (A) a majority of the students were eligible for the federal free and reduced price lunch program; and (B) the enrollment was greater than 40,000. (2) "Parent" includes a guardian or custodian. (3) "Private school" means a nongovernmental educational establishment that exists for the general education of elementary and secondary students. The term does not include a school that provides education in a home setting or by the parent or that limits enrollment to relatives of the school's staff. (4) "Program" means the education freedom program described by this subchapter. Sec. 29.352. PROGRAM. (a) An eligible child under Section 29.353 or 29.361, as applicable, may, at the option of the child's parent: (1) attend any public school in the child's district of residence under Subchapter G, Chapter 29; (2) subject to the limitations of Section 29.203, attend a public school in another district under Subchapter G, Chapter 29; or (3) use a scholarship as provided by Section 29.354 to pay the costs of attending a private school. (b) Section 42.157 does not apply to a child who attends a public school in another district under Subsection (a)(2). Sec. 29.353. ELIGIBLE CHILD. (a) A child is eligible to participate in the program if the child: (1) resides in an eligible district; (2) attended a public school during the preceding regular full semester; and (3) resides in a household that had, in their most recently filed federal income tax return, an annual household income not exceeding 200% of the qualifying income for the Federal Free or Reduced Price Lunch Program. (b) A child who establishes eligibility under Subsection (a) is entitled to continue participating until the earlier of the date on which the child graduates from high school or the child's 21st birthday. Sec. 29.354. FINANCING; SCHOLARSHIP. (a) An eligible child who attends a private school under this subchapter is considered in determining the average daily attendance under Section 42.005 of the child's district of residence. (b) A child's scholarship is an amount equal to the average funding per child for maintenance and operations, during the preceding school year in the district in which the child resides, from all sources other than: (1) the available school fund; (2) federal funds; and (3) funds for special education programs under Subchapter A. (c) The comptroller shall adopt rules regarding the calculation and distribution of payments for both public and private schools. (d) Upon application by the parent of an eligible child the comptroller shall issue a scholarship certificate to the parent. The parent shall promptly endorse and present the certificate to the private school chosen by the parent. (e) The private school the child attends must endorse and present the child's scholarship certificate to the comptroller to receive payment. On presentation of the evidence of the scholarship, the comptroller shall distribute: (1) to the district in which the child resides: (A) the available school fund share attributable to the child, notwithstanding Section 43.001, and (B) 10 percent of the amount of the scholarship; and (2) to the private school the lesser of: (A) 90 percent of the amount of the scholarship; or (B) the school's average annual cost per student. (f) The comptroller may deduct an amount of the scholarship from the scholarship share of the district in which a child resides for costs of administering the program. (g) The comptroller shall direct the distribution of funds to the private school the child attends on a monthly pro rata basis after education services have been provided. The payment shall be made not later than the 30th day after the last day of each month of the school year. (h) The child's scholarship is the entitlement of the child, under the supervision of the child's parent, and not that of any school. Solely as a means of administrative convenience, the comptroller shall pay the private school the child attends on presentation of the evidence of the scholarship by the school. (i) A private school may not share, refund, or rebate a child's scholarship with the parent or child in any manner. Sec. 29.355. ACCREDITATION. To participate in the program, a private school must be accredited by or have filed an application for accreditation by an accrediting association recognized by the commissioner to accredit nongovernmental schools in this state. Sec. 29.356. ADMISSIONS. (a) A private school chosen by an eligible child's parent under Section 29.352 may not discriminate on the basis of the child's race, national origin, or ethnicity. (b) A private school that has more qualified scholarship applicants for attendance under this subchapter than available positions must fill the available scholarship positions by a random selection process. However, to achieve continuity in education, a school may give preference among scholarship applicants to previously enrolled students and to other children residing in the same household as previously enrolled students. (c) A private school that accepts a child using a scholarship is entitled to a copy of the child's complete academic transcript, including past results on assessment instruments administered under Section 39.023, from each school the child previously attended. A public school releasing an academic transcript under this section shall comply with any applicable provision of the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g) and its subsequent amendments. Sec. 29.357. ACCOUNTABILITY. Each private school that accepts a scholarship under this subchapter shall annually administer in the spring either the appropriate assessment instrument required under Section 39.023 or a norm-referenced assessment instrument approved under Section 39.026 and shall make the aggregated results of the assessment instrument available to the public. Individual student results shall be made available, with appropriate safeguards for student privacy, to researchers as required under Section 29.364. Sec. 29.358. TRANSPORTATION. A school district shall offer each child attending a private school under this subchapter transportation free of charge to and from the public school the child would otherwise attend to the extent provided under Section 42.155 for an eligible child. A private school that accepts a scholarship under this subchapter may use any public school as a transportation collection location for the private school's students. Sec. 29.359. ADDITIONAL TUITION PROHIBITED. A parent or a child using a scholarship under this subchapter may not be required to pay tuition in addition to the child's scholarship. Sec. 29.360. PRIVATE SCHOOL AUTONOMY. (a) A private school that accepts a scholarship under this subchapter is not an agent or arm of the state or federal government. (b) The agency, the State Board of Education, the commissioner, the comptroller, or any other state agency may not in any way regulate the educational program of a private school that accepts a scholarship under this subchapter. (c) The purpose of this subchapter is to allow maximum freedom to the private sector to respond to the educational needs of the children of this state without governmental control, and this subchapter shall be liberally construed to achieve that purpose. Sec. 29.361. ELIGIBLE CHILD AND ELIGIBLE DISTRICT BEGINNING WITH 2005-2006 SCHOOL YEAR. (a) Notwithstanding Section 29.351, beginning with the 2005-2006 school year, "eligible district" includes any school district whose board of trustees adopts a resolution to participate in the program. (b) Notwithstanding Section 29.353, beginning with the 2005-2006 school year, a child who resides in an eligible district as defined by Subsection (a) is eligible to participate in the program if the child attended a public school during the preceding full semester. (c) A child who establishes eligibility under Subsection (b) is entitled to continue participating until the earlier of the date on which the child graduates from high school or the child's 21st birthday. Sec. 29.362. RULES. The comptroller shall adopt rules necessary for the administration of the program and these rules shall be binding on any other state and local governmental entity as necessary in order to administer the program. Sec. 29.363. SCHOOLS OF CHOICE RESOURCE CENTERS. (a) The comptroller shall select one or more independently funded nonprofit organizations to coordinate, provide staff for, and administer schools of choice resource centers in each eligible district to; (1) assist parents in learning how to be better education consumers; (2) provide information on education alternatives in the area; and (3) assist parents, schools, and school districts in implementing and responding to the program. (b) This section expires December 31, 2008. Sec. 29.364. EVALUATION OF PROGRAM. (a) The comptroller in conjunction with the Charles A. Dana Center at the University of Texas at Austin shall: (1) evaluate the program to determine the extent of participation by eligible children who reside in eligible districts; and (2) contract with one or more qualified researchers who have previous experience evaluating school choice programs to fund, with funds other than state funds, and conduct a study of the program. (b) The study described by Subsection (a)(2) must assess: (1) each participating student's performance on annual assessment instruments before and after entering the program; (2) the level of a participating student's satisfaction with the program; (3) the level of parent satisfaction with the program; (4) the overall impact of the program on public school students and on the districts and schools from which the participating students transferred; and (5) the impact of the program on public and private school capacity, availability, and quality of service. (c) the researchers who conduct the study shall apply appropriate analytical and behavioral science methodologies to ensure public confidence in the study. (d) this section expires June 1, 2010. SECTION 2. Section 29.202(a), Education Code, is amended to read as follows: (a) A student is eligible to receive a public education grant or to attend another public school in the district in which the student resides under this subchapter if the student is assigned to attend a public school campus: (1) at which 50 percent or more of the students did not perform satisfactorily on an assessment instrument administered under Section 39.023(a) or (c) in any two of the preceding three years; [or] (2) that was, at any time in the preceding three years, identified as low-performing by the commissioner under Subchapter D, Chapter 39; or (3) that is in a district whose students may use an education scholarship under Subchapter J, Chapter 29, and the student is an eligible child under Section 29.353. SECTION 3. (a) The comptroller shall implement the education freedom program as provided by Subchapter J, Chapter 29, Education Code, as added by this Act, beginning with the 2003-2004 school year. (b) As soon as practicable the comptroller shall adopt rules necessary for the administration of the program. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.