HBA-MSH H.B. 1240 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1240 By: Wilson Public Education 4/12/2001 Introduced BACKGROUND AND PURPOSE According to the Texas Education Agency 146 public schools in Texas were identified as low performing in 2000. Over 20 percent of students taking the Texas Assessment of Academic Skills (TAAS) did not pass all tests taken. Students who are not performing well might benefit from attending a private school. House Bill 1240 creates a voucher pilot program for certain educationally disadvantaged students in large school districts. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the comptroller of public accounts in SECTION 1 (Section 29.360 Education Code) of this bill. ANALYSIS House Bill 1240 amends the Education Code to create a public education voucher pilot program. The bill provides that a child is eligible to receive vouchers if the child is educationally disadvantaged, eligible to attend school in one of the six largest school districts as determined by the commissioner of education (commissioner), was enrolled in a public school district during the preceding year or is enrolling in school for the first time, and either failed to perform on the most recent assessment instrument or is eligible to attend another public school but has had an application rejected. The bill entitles a child to continue receiving a voucher regardless of whether the child continues to meet the requirements unless the child enrolls in a public school after using the voucher or a change in residence affects the child's eligibility. The bill requires a school district to notify in writing the parent of each eligible child of the child's eligibility to receive a voucher by a date established by the commissioner. The bill authorizes parents to apply for a voucher on behalf of their children by notifying the school district by a date established by the commissioner. The bill provides that the voucher is in an amount equal to the total average per student funding amount for maintenance and operations in the district the child would otherwise attend excluding money from the available school fund. If the tuition at the private school is less than the child's voucher, the bill provides that the school district the child would otherwise attend is entitled to the remaining amount. The bill provides that a child who attends a private school using a voucher is included in determining the average daily attendance of the school district the child would otherwise attend for purposes of the Foundation School Program. The bill provides that a voucher is payable from the school district to the private school and is the entitlement of the child and not of any school. The bill provides that a private school that accepts students with vouchers must be accredited by a private organization recognized by the commissioner. The bill authorizes a newly established private school to receive voucher funds if the school applies for accreditation before accepting students under the program. The bill authorizes the commissioner to waive accreditation requirements for private schools with good cause. The bill prohibits a private school from refusing to enroll a child with a voucher on the basis of a child's residence, race, national origin, ethnic background, religion, disability, or academic achievement. The bill authorizes a private school to refuse to enroll a child with a voucher if the child has been expelled from a public school or has a criminal record. The bill prohibits a private school from considering the athletic ability of a child with a voucher in any admission process. The bill provides that a private school that has more applicants with vouchers than positions in the school must fill the positions by lottery not later than July 1 of each year. The bill authorizes a private school to give preference to an enrolled student and to siblings or children residing in the same house as an enrolled student. The bill prohibits a private school from charging a child any tuition in addition to the voucher or in an amount greater than the standard tuition rate of the school. The bill prohibits a private school from assessing any additional charge other than a fee a board of trustees of a school district is authorized to charge. The bill requires private schools to administer assessment instruments to students with vouchers in the same manner those tests are administered in public schools. The bill requires a private school to report to the commissioner concerning the school's performance on the academic excellence indicators for the students with vouchers. The bill requires the commissioner to publish the school's performance information. The bill provides that a private school must certify to the comptroller of public accounts that the school has complied with the provisions relating to the admission of voucher students. The bill requires the comptroller to adopt rules, procedures, and forms for the payment of vouchers to private schools. The bill requires the State Board of Education to implement the pilot program beginning with the 20012002 school year. The bill requires the commissioner in consultation with the school districts whose students are eligible to participate in the program to evaluate the program and report the evaluation and recommendations to the legislature not later than December 1, 2004. The bill provides that the program will expire September 1, 2005 and prohibits the issuance of vouchers for the 2005-2006 or a later school year. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.