[caption id="attachment_117752" align="alignleft" width="150"] A Texas student is suing the Northside Independent School District over its SmartID student-tracking technology.[/caption]

To 15-year-old Andrea Hernandez, the tracking microchip embedded in her student ID card is a "mark of the beast," sacrilege to her Christian faith—not to mention how it pinpoints her location, even in the school bathroom.

But to her budget-reeling San Antonio school district, those chips carry a potential $1.7 million in classroom funds.

Starting this fall, the fourth-largest school district in Texas is experimenting with "locator" chips in student ID badges on two...

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