HBA-MPM H.B. 2118 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2118 By: Grusendorf Public Education 4/20/1999 Introduced BACKGROUND AND PURPOSE H.B. 2118 creates the Opportunity Scholarship Pilot Program (program) and requires each school district with an average daily attendance of more than 55,000 to participate in the program. The bill entitles a child to participate in the program and to attend, with public financial aid, the public or free school of the parents' choice, if that child is eligible. The bill prohibits more than 10 percent of eligible students assigned to a single public school campus to participate in the program. The bill further address specific issues with respect to the program, such as program financing, parent notification of a child's eligibility, scholarship amounts, and assessment of children in the program. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 29, Education Code, by adding Subchapter J, as follows: SUBCHAPTER J. OPPORTUNITY SCHOLARSHIP PILOT PROGRAM Sec. 29.351. PURPOSE; CONSTRUCTION. Sets forth the purpose and construction of the Opportunity Scholarship Pilot Program (program). Sec. 29.352. DEFINITIONS. Defines "free school" as a nongovernmental educational establishment for the general education of elementary or secondary students that accepts opportunity scholarships under this subchapter. Provides that a "free school" does not include a school that limits enrollment to relatives of the school's staff. Defines "parent" as a person standing in parental relation, "private school" as a nongovernmental educational establishment that does not accept opportunity scholarships under this subchapter, and "public school" as a school that is administered, operated, and staffed by governmental employees. Sec. 29.353. PARTICIPATING SCHOOL DISTRICTS; CHILD ELIGIBILITY; PARENTAL CHOICE. (a) Requires each school district (district) with an average daily attendance of more than 55,000 according to the 1997-1998 Public Education Information Management System to participate in a program. (b) Entitles a child to participate in a program and to attend, with public financial aid, the public school or free school chosen by the child's parent, subject to availability, if the child is eligible under Section 25.001 (Admission), Education Code, to attend school in a participating district and is assigned to attend a campus in the district that was, at any time in the preceding three years, identified as low-performing by the commissioner of education (commissioner) under Subchapter D, Chapter 39; or 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) (Adoption and Administration of Instruments) in any two of the preceding three years. Makes this entitlement subject to Subsections (c) and (d). (c) Prohibits more than 10 percent of eligible students assigned to a single public school campus (campus) from participating in the program. Provides that if more than 10 percent of eligible students assigned to a campus express intent to participate under Subsection (d), the scholarships shall be allocated according to a random selection process. (d) Requires a district to notify the parent of each child eligible under this program of the child's eligibility no later than February 1 of each year. Requires the notice to inform the parent that the district should be notified of intent to participate in the program by April 1 of that year. Requires anyone declaring intent to participate after April 1 to be admitted to the program as long as the limit in Subsection (c) is not exceeded. (e) Provides that the parent's choice under Subsections (b) and (c) in regard to a participating child must be registered with the central administrative office of the participating district for the child to obtain public financial aid. (f) Provides that this subchapter does not restrict the right of a child to attend private school, but that the child may not receive funding for that purpose under this subchapter. Provides that a child attending a private or free school without an opportunity scholarship is not required to register with the participating district in which the child would otherwise attend school. Sec. 29.354. FINANCING. (a) Entitles each participating district to receive public financing as provided by law. (b) Provides that a participating child who chooses to attend a free or public school in a district other than the participating district and registers that choice under Section 29.353, Education Code, is included in determining the average daily attendance under Section 42.005 (Average Daily Attendance), Education Code, of the participating district. Requires the commissioner to adopt a procedure for a free or public school to use in reporting the daily attendance of a child for whom the school receives opportunity scholarship money. (c) Provides that a child's scholarship is the total average per student funding amount in the participating district during the preceding school year for maintenance and operations, including state and local funding based on special categories of students, but excluding money from the available school fund and federal money. (d) Requires each participating district to distribute to each participating child's parent a certificate stating the amount of the scholarship. Authorizes the parent to present the certificate to the child's school of choice in lieu of direct payment. (e) Requires a participating district to retain 100 percent of the scholarship of a participating child assigned to attend a campus in the district described by Section 29.353(b), Education Code, who attends another campus in the district. Requires the participating district to transfer 100 percent of the scholarship to the district in which the child attends school if the child attends a school in another district. Requires a district, if the child attends a free school, to retain 20 percent of the scholarship, and to transfer 80 percent of the scholarship to the free school the child attends. (f) Provides that the free school or public school outside the participating district in which the child would otherwise attend school must present the child's certificate to the participating district to receive payment. Requires the participating district to pay the free or public school on a monthly pro rata basis after service have been provided. (g) Provides that a child's scholarship is the entitlement of the child, under the parent's supervision, is not the entitlement of any school, and is to be paid to a free or public school solely as a means of administrative convenience. (h) Prohibits a free school from sharing, refunding, or rebating the child's scholarship with the parent or child or charging a child attending the school under this subchapter tuition in excess of the amount of the scholarship. Sec. 29.355. RECEIPT OF MONEY BY FREE SCHOOLS. (a) Provides that a free school must certify to the participating district in which a child would otherwise attend school that, with respect to scholarship students, the free school will not refuse to admit a student on the basis of residence, race, national origin, or ethnic background, in order to receive the applicable portion of a child's scholarship. (b) Provides that a free school with more scholarship applicants than available positions must fill them by a random selection process. Authorizes a free school to give preference to an enrolled student residing in the same household or other children residing in the same household as an enrolled student for the convenience of the parents of those children. (c) Requires each scholarship student attending a free school to be assessed as required by Subchapter B (Assessment of Academic Skills), Chapter 39 (Public School System Accountability), Education Code. Requires the aggregate results of the assessment instruments to be published and copies of the statewide scores be made available for parental inspection at each public or free school. Sec. 29.356. TRANSPORTATION. Requires each participating district to offer free transportation to a free school student who would otherwise attend school in the district to and from the school the student would otherwise attend. Sec. 29.357. NONSTATE ACTION AND FREE SCHOOL AUTONOMY. Provides that a free school that accepts a scholarship is not an agent or arm of the government, and the conduct of that school is governed as a private contract, not state action. Provides that a free school is not subject to any educational statute or rule except those listed in this subchapter. Sec. 29.358. REPORT TO LEGISLATURE. Requires the Center for the Study of Educational Reform at the University of North Texas to report to the legislature on the success of this program no later than January 1, 2003. SECTION 2. Makes this Act applicable beginning with the 1999-2000 school year. SECTION 3.Emergency clause. Effective date: upon passage.