80R10435 CAE-F

By: Paxton H.B. No. 3867

A BILL TO BE ENTITLED

AN ACT

relating to a scholarship program for certain students in foster care.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 29, Education Code, is amended by adding Subchapter K to read as follows: SUBCHAPTER K. SCHOLARSHIP PROGRAM FOR STUDENTS IN FOSTER CARE

Sec. 29.401. DEFINITIONS. In this subchapter:

(1) "Guardian" includes a custodian, foster care parent, or other person with the authority to act on behalf of the child.

(2) "Participating school" means a nongovernmental school that provides education to elementary or secondary students and has notified the agency of its intent to participate in the program and comply with the program's requirements.

(3) "Program" means the scholarship program for students in foster care.

Sec. 29.402. PROGRAM. An eligible student under Section 29.403 may, at the option of the student's guardian:

(1) attend any public school in the district in which the student resides as provided by Subchapter G;

(2) subject to the limitations of Section 29.203, attend a public school in a district other than the district in which the student resides as provided by Subchapter G; or

(3) receive a scholarship as provided by Section 29.404 to pay the costs of attending a participating school.

Sec. 29.403. ELIGIBLE STUDENT. (a) A student is eligible to participate in the program if:

(1) the student is in foster care or other residential care under the conservatorship of the Department of Family and Protective Services; or

(2) is the sibling of a child who qualifies under Subdivision (1).

(b) A student who establishes eligibility under this section may continue participating in the program until the earlier of the date the student graduates from high school or the student's 21st birthday.

Sec. 29.404. SCHOLARSHIP AMOUNT. (a) An eligible student qualifies for an annual scholarship in an amount equal to the lesser of:

(1) the amount of funding that equals the participating school's annual cost per student, including operational and capital facility costs and any costs associated with the eligible student's special needs; or

(2) the amount of funding for maintenance and operations the school district in which the eligible student resides would have received to serve and educate the student from federal, state, and local sources had the student enrolled in that district, including costs associated with the eligible student's special needs.

(b) The guardian of the eligible student may enroll the student in a participating school.

(c) The student's scholarship is the entitlement of the student under the supervision of the student's guardian.

(d) A participating school may not share a student's scholarship with or refund or rebate a student's scholarship to the guardian or student in any manner.

(e) A student's scholarship may be used for educational purposes, including tuition, special education services, transportation costs, uniforms, books or other school fees, tutoring, and extracurricular programs with an educational purpose. A participating school or a third party under contract with the participating school may provide services to the student. The scholarship money is payable only to the participating school.

Sec. 29.405. ADMISSIONS. (a) A participating school that has more scholarship applicants for attendance under this subchapter than available positions must fill the available scholarship positions by a random selection process. To achieve continuity in education, a school may give preference among scholarship applicants to a previously enrolled scholarship student and to other students residing in the same household as a previously enrolled student.

(b) A student who is denied admission to a participating school because the school does not have an available position may transfer the student's scholarship to a participating school that has positions available.

Sec. 29.406. FUNDING. (a) An eligible student is included in the average daily attendance of the district in which the student resides for purposes of Chapters 41 and 42.

(b) The commissioner shall deduct an amount equal to the amount of the eligible student's scholarship under Section 29.404(a) from the total state aid to which the school district in which the student resides is entitled and shall transfer that amount to the participating school in which the student is enrolled. Any aid the district would have received for the student in excess of the money needed for a scholarship is the entitlement of the state.

(c) If a student resides in a school district that does not receive state aid under Chapter 42, the district in which the student resides shall purchase attendance credits under Section 41.093 in an amount equal to the amount of funding the district would receive for the student under Chapter 42 if the district were entitled to state aid under that chapter, and the commissioner shall transfer that amount to the participating school in which the student is enrolled.

Sec. 29.407. RULES. The commissioner shall adopt rules as necessary to implement, administer, and enforce the program, including rules regarding:

(1) the application and approval procedures for a participating school, including time lines that will maximize student and school participation;

(2) the calculation and distribution of scholarships to eligible students;

(3) the application and approval procedures for scholarships for eligible students; and

(4) the sharing of student records between participating schools in compliance with the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g).

Sec. 29.408. RESPONSIBILITIES OF RESIDENT SCHOOL DISTRICT. (a) The school district in which an eligible student resides shall provide a participating school that has admitted the student with a complete copy of the student's school records. A public school that is required to release student records under this subsection shall comply with any applicable provision of the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g).

(b) The school district in which an eligible student resides shall provide transportation for the student to and from the participating school in the same manner as the district is required to provide transportation for other resident students to attend nongovernmental schools. The district qualifies for state aid under Section 42.155 for a student transported under this subsection.

Sec. 29.409. RESPONSIBILITIES OF COMMISSIONER. (a) The commissioner shall ensure that eligible students and their guardians are informed annually of which schools will be participating in the program. This information should also be provided to the Department of Family and Protective Services and other state agencies and nonprofit organizations that are involved in issues relating to foster care to increase awareness among potential beneficiaries of the program.

(b) The commissioner shall create a standard application that students interested in the program can submit to participating schools to establish eligibility and apply for admission. A participating school may require additional information from an applicant. The commissioner shall ensure that the application is readily available to interested families through various sources, including an Internet website.

(c) The commissioner may bar a school from participation in the program if the commissioner determines that the participating school has:

(1) intentionally and substantially misrepresented information required by this subchapter;

(2) routinely failed to comply with at least three of the accountability standards established under Section 29.410; or

(3) failed to refund to the state in a timely manner any scholarship overpayments made to the school.

(d) If the commissioner revokes a participating school's permission to participate in the program, the agency shall immediately notify the guardian of an eligible student attending the participating school of the revocation.

Sec. 29.410. ACCOUNTABILITY FOR PARTICIPATING SCHOOLS. To participate in the program, a participating school must:

(1) comply with all health and safety laws applicable to nongovernmental schools;

(2) hold a valid occupancy permit if required by the municipality in which the school is located;

(3) not advocate or foster unlawful behavior or teach hatred of any person or groups on the basis of race, ethnicity, national origin, or religion; and

(4) comply with all state laws that apply to nongovernmental schools regarding criminal background checks for employees and exclude from employment any person not permitted by state law to work in a nongovernmental school.

Sec. 29.411. FINANCIAL ACCOUNTABILITY. (a) A participating school shall demonstrate financial accountability by submitting financial information that:

(1) complies with uniform financial accounting standards;

(2) is prepared by a certified public accountant; and

(3) is certified as free of material misstatements by an auditor.

(b) The auditor's report shall be limited in scope to the records that are necessary for the agency to make payments to the school for scholarships.

(c) The commissioner may adopt rules requiring a participating school that accepts a scholarship under this subchapter to demonstrate financial solvency. If a participating school will receive more than $50,000 in state money during a school year, the participating school must demonstrate financial viability by showing that the school can pay any money owed by the school to the state by filing with the agency before the start of the school year:

(1) a surety bond payable to the state in an amount equal to the aggregate amount of the scholarships expected to be paid during the school year for eligible students admitted to the participating school; or

(2) financial information that demonstrates the school has the ability to pay an aggregate amount equal to the amount of the scholarships expected to be paid during the school year for eligible students admitted to the participating school.

Sec. 29.412. ACADEMIC ACCOUNTABILITY. A participating school shall regularly report to the guardian of a student on the student's academic progress.

Sec. 29.413. PARTICIPATING SCHOOL AUTONOMY. (a) A participating school that accepts a scholarship under this subchapter is not an agent or arm of the state or federal government.

(b) Except as provided by this subchapter, the commissioner, the agency, the State Board of Education, or any other state agency may not regulate the educational program of a participating school that accepts a scholarship under this subchapter.

(c) The program does not expand the regulatory authority of the state or any school district to impose any additional regulation on a nongovernmental school except those reasonably necessary to enforce the program as provided by this subchapter.

(d) A participating nongovernmental school shall be given the maximum freedom to provide for the educational needs of eligible students without governmental control.

Sec. 29.414. EVALUATION OF PROGRAM. (a) The commissioner may contract with an impartial organization with experience evaluating scholarship programs to conduct an evaluation of the program. The evaluation must be conducted without the use of state money.

(b) An evaluation under this section must compare differences between qualifying schools and public schools and must include consideration of:

(1) student satisfaction;

(2) guardian satisfaction;

(3) behavioral problems of students attending participating schools with a scholarship as compared with students attending public schools;

(4) class size; and

(5) the fiscal impact of the program on the state and school districts.

(c) The evaluation must apply appropriate analytical and behavioral sciences methodologies to ensure public confidence in the evaluation.

(d) The commissioner shall submit to each member of the legislature a copy of the evaluation conducted under this section.

(e) School districts and participating schools shall cooperate with the organization conducting the evaluation and shall provide student assessment instrument results and any other information necessary to complete the evaluation in compliance with any applicable provision of the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g).

(f) The agency may accept grants to assist in funding the evaluation.

(g) The legislature may require periodic reports from the organization. The organization must make the data and methodology available for public review while complying with the requirements of the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g).

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:

(1) the student is assigned to attend a public school campus:

(A) [(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

(B) [(2)] that was, at any time in the preceding three years, considered academically unacceptable under Section 39.132; or

(2) the student is eligible to participate in the scholarship program under Subchapter K.

SECTION 3. (a) The Texas Education Agency shall make the scholarship program for students in foster care as provided by Subchapter K, Chapter 29, Education Code, as added by this Act, available for participation beginning with the 2007-2008 school year.

(b) As soon as practicable, the commissioner of education shall adopt and implement 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, 2007.