To create a pilot program of scholarships for educational purposes, and submitting said act to the voters of the state for approval or rejection under the referendum provisions of the constitution.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

Section 1. Sections 1 to 8 of this act may be cited as the "Parental Choice in Education Act".

Section 2. Beginning in the school year immediately following a favorable referendum vote of the people of Missouri, any pupil in grades kindergarten to twelve who resides within the city of St. Louis school district, Normandy school district or within the boundaries of the Kansas City school district may attend any public, or nonsectarian or sectarian nonpublic school including nonpublic parochial or religious schools of the parents' choice located within the St. Louis public school district, Normandy school district or Kansas City public school district and will be supported by a state-funded scholarship as specified in sections 1 to 8 of this act if all of the following apply:

(1) The pupil is a member of a family that has a total family income that does not exceed an amount equal to one and seventy-five hundredths times the poverty level determined in accordance with criteria established by the director of the federal office of management and budget;

(2) In the previous school year the pupil was enrolled in a public school in the St. Louis public school district in St. Louis City, in the Normandy school district or in the Kansas City public school district or was assigned as an interdistrict transfer to another school district by existing court orders or by law was attending a nonpublic school under this section or was not enrolled in school;

(3) The nonpublic school notified the Missouri department of elementary and secondary education through the division of nonpublic education created in section 5 of this act, of its intention to participate in the program under this section by June thirtieth of the previous school year. No nonpublic school can be required to participate in this parental choice program;

(4) The nonpublic school complies with 42 U.S.C. 2000d;

(5) The nonpublic school meets all appropriate and existing health, safety and zoning laws;

(6) No more than five percent or two thousand three hundred of the school district's membership, including students lost as interdistrict transfers to other schools by court order or law and districts on a half-time basis, may attend nonpublic schools in any school year;

(7) No more than forty-nine percent of a nonpublic school's enrollment may consist of pupils attending the nonpublic school under this section.

Section 3. 1. The pupil or the pupil's parent or guardian shall submit an application on a form provided by the division of nonpublic education, to the participating nonpublic school that the pupil wishes to attend by June thirtieth of the school year immediately preceding the school year in which such pupil wishes to enroll. Within sixty days after receiving the application, the nonpublic school shall notify the applicant, in writing, whether the application has been accepted. The director of the division of nonpublic education shall insure that the nonpublic school determines which pupils to accept on a random basis except for siblings in a family.

2. Upon receipt from the pupil's parent or guardian of proof of the pupil's enrollment in the nonpublic school, the department of elementary and secondary education shall pay to the nonpublic school on behalf of the pupil and parent, a scholarship amount equal to at least fifty percent of the actual amount to which the public school district is entitled per pupil under existing statutory and constitutional provisions. The state may pay the amount in equal increments of twenty-five percent in September, twenty-five percent in November, twenty- five percent in January, and twenty-five percent in May.

3. The state division of nonpublic education shall ensure that pupils and parents and guardians of pupils who reside in the city of St. Louis public school district, the Normandy school district and the Kansas City school district are informed annually of the nonpublic schools participating in the scholarship program under this section.

4. Annually the division of nonpublic education shall submit to the chief clerk of each house of the general assembly for distribution to the appropriate standing committees and to each nonpublic school participating in the program under this section, a report comparing the academic achievement, daily attendance record, percentage of dropouts, percentage of pupils suspended and expelled and parental involvement activities of pupils attending a nonpublic school under this section and pupils enrolled in the school district in which the pupil resides.

5. The St. Louis City public school board, the Normandy school district and the Kansas City school district board shall provide transportation to pupils attending a nonpublic school under sections 1 to 8 of this act if otherwise required by state statutes and may claim transportation aid from the state for pupils so transported.

Section 4. Each nonpublic school participating in the program pursuant to sections 1 to 8 of this act shall meet at least one of the following standards:

(1) At least seventy percent of the pupils in the program advance one grade level each year;

(2) The nonpublic school's average attendance rate for the pupils in the program is at least ninety percent;

(3) At least eighty percent of the pupils in the program demonstrate significant academic progress;

(4) At least seventy percent of the families of pupils in the program meet parent involvement criteria established by the nonpublic school.

Section 5. There is hereby created within the department of elementary and secondary education a division of nonpublic education with sufficient budget and staff reporting to the commissioner of education. The division, in addition to duties already assigned in sections 1 to 8 of this act, shall have responsibility for:

(1) Monitoring the performance of the pupils attending nonpublic schools pursuant to sections 1 to 8 of this act. If the director of the division of nonpublic education determines in any school year that the nonpublic school is not meeting at least one of the standards in section 4 of this act, that nonpublic school may not participate in the program pursuant to the provisions of sections 1 to 8 of this act in the following year;

(2) Creating a pupil assignment council composed of one representative from each nonpublic school participating in the program. Annually by June 30, the council shall make recommendations to the participating nonpublic schools to achieve, to the extent possible, a balanced representation of pupils participating in the program;

(3) Conducting one or more financial or performance evaluation audits, or both, of the program. The director shall submit copies of the audit reports to the commissioner of education and to the chief clerks of both houses of the general assembly for distribution to the appropriate standing committees by January of each year.

Section 6. Notwithstanding any provision of law to the contrary, scholarships provided pursuant to sections 1 to 8 of this act are grants of aid to children through their parents and not to the schools in which the children are enrolled. Such scholarships shall not constitute taxable income for purposes of state income tax. The parents may choose any public or nonpublic school within the specific district limitations set out in section 2 of this act and such selection by the parents shall not constitute a decision or act of the state or any of its political subdivisions.

Section 7. For the tax year beginning January 1, next following the effective date of this act and for each taxable year thereafter, there shall be subtracted from Missouri adjusted gross income, determined pursuant to section 143.121, RSMo, an amount equal to the amount of any scholarship received pursuant to the provisions of sections 1 to 8 of this act.

Section 8. If any provision of this section or the application of any provision of this section to any person or circumstance is held invalid, the remaining provisions or applications shall remain in force.

Section A. This act is hereby submitted to the qualified voters of this state for approval or rejection at a special election which is hereby ordered and which shall be held and conducted on Tuesday next following the first Monday in November, 1996, pursuant to the laws and constitutional provisions of this state applicable to general elections and the submission of referendum measures by initiative petitions, and it shall become effective when approved by a majority of the votes cast thereon at such election and not otherwise.