[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 618 Introduced in Senate (IS)]

  1st Session
                                 S. 618

      To provide a low-income school choice demonstration program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 24 (legislative day, March 23), 1995

  Mr. Coats (for himself and Mr. Lieberman) introduced the following 
 bill; which was read twice and referred to the Committee on Labor and 
                            Human Resources

_______________________________________________________________________

                                 A BILL


 
      To provide a low-income school choice demonstration program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Low-Income School Choice 
Demonstration Act of 1995''.

SEC. 2. PURPOSE.

    The purpose of this Act is to determine the effects on students and 
schools of providing financial assistance to low-income parents to 
enable such parents to select the public or private schools their 
children will attend.

SEC. 3. DEFINITIONS.

    As used in this Act--
            (1) the term ``choice school'' means any public or private 
        school, including a private sectarian school or a public 
        charter school, that is involved in a demonstration project 
        assisted under this Act;
            (2) the term ``eligible child'' means a child in grades 1 
        through 12 who is eligible for free or reduced price lunches 
        under the National School Lunch Act;
            (3) the term ``eligible entity'' means a public agency, 
        institution, or organization, such as a State, a State or local 
        educational agency, a consortium of public agencies, or a 
        consortium of public and private nonprofit organizations, that 
        can demonstrate, to the satisfaction of the Secretary, its 
        ability to--
                    (A) receive, disburse, and account for Federal 
                funds; and
                    (B) carry out the activities described in its 
                application under this Act;
            (4) the term ``evaluating agency'' means any academic 
        institution, consortium of professionals, or private or 
        nonprofit organization, with demonstrated experience in 
        conducting evaluations, that is not an agency or 
        instrumentality of the Federal Government;
            (5) the term ``local educational agency'' has the same 
        meaning given such term in section 14101 of the Elementary and 
        Secondary Education Act of 1965;
            (6) the term ``parent'' includes a legal guardian or other 
        individual acting in loco parentis;
            (7) the term ``school'' means a school that provides 
        elementary education or secondary education (through grade 12), 
        as determined under State law; and
            (8) the term ``Secretary'' means the Secretary of 
        Education.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $30,000,000 for fiscal year 
1996, and such sums as may be necessary for each of the fiscal years 
1997 and 1998, to carry out this Act.

SEC. 5. PROGRAM AUTHORIZED.

    (a) Reservation.--From the amount appropriated pursuant to the 
authority of section 4 in any fiscal year, the Secretary shall reserve 
and make available to the Comptroller General of the United States 5 
percent for evaluation of programs assisted under this Act in 
accordance with section 11.
    (b) Grants.--
            (1) In general.--From the amount appropriated pursuant to 
        the authority of section 4 and not reserved under subsection 
        (a) for any fiscal year, the Secretary shall award grants to 
        eligible entities to enable such entities to carry out at least 
        10, but not more than 20, demonstration projects under which 
        low-income parents receive education certificates for the costs 
        of enrolling their eligible children in a choice school.
            (2) Amount.--The Secretary shall award grants under 
        paragraph (1) for fiscal year 1996 so that--
                    (A) not more than 2 grants are awarded in amounts 
                of $5,000,000 or less; and
                    (B) grants not described in subparagraph (A) are 
                awarded in amounts of $3,000,000 or less.
            (3) Continuing eligibility.--The Secretary shall continue a 
        demonstration project under this Act by awarding a grant under 
        paragraph (1) to an eligible entity that received such a grant 
        for a fiscal year preceding the fiscal year for which the 
        determination is made, if the Secretary determines that such 
        eligible entity was in compliance with this Act for such 
        preceding fiscal year.
    (c) Use of Grants.--Grants awarded under subsection (b) shall be 
used to pay the costs of--
            (1) providing education certificates to low-income parents 
        to enable such parents to pay the tuition, the fees, the 
        allowable costs of transportation, if any, and the costs of 
        complying with section 9(a)(1), if any, for their eligible 
        children to attend a choice school; and
            (2) administration of the demonstration project, which 
        shall not exceed 15 percent of the amount received in the first 
        fiscal year for which the eligible entity provides education 
        certificates under this Act or 10 percent in any subsequent 
        year, including--
                    (A) seeking the involvement of choice schools in 
                the demonstration project;
                    (B) providing information about the demonstration 
                project, and the schools involved in the demonstration 
                project, to parents of eligible children;
                    (C) making determinations of eligibility for 
                participation in the demonstration project for eligible 
                children;
                    (D) selecting students to participate in the 
                demonstration project;
                    (E) determining the amount of, and issuing, 
                education certificates;
                    (F) compiling and maintaining such financial and 
                programmatic records as the Secretary may prescribe; 
                and
                    (G) collecting such information about the effects 
                of the demonstration project as the evaluating agency 
                may need to conduct the evaluation described in section 
                11.
    (d) Special Rule.--Any school participating in the demonstration 
program under this Act shall comply with title VI of the Civil Rights 
Act of 1964 and not discriminate on the basis of race, color, or 
national origin.

SEC. 6. AUTHORIZED PROJECTS; PRIORITY.

    (a) Authorized Projects.--The Secretary may award a grant under 
this Act only for a demonstration project that--
            (1) involves at least one local educational agency that--
                    (A) receives funds under section 1124A of the 
                Elementary and Secondary Education Act of 1965; and
                    (B) is among the 20 percent of local educational 
                agencies receiving funds under section 1124A of such 
                Act in the State and having the highest number of 
                children described in section 1124(c) of such Act; and
            (2) includes the involvement of a sufficient number of 
        public and private choice schools, in the judgment of the 
        Secretary, to allow for a valid demonstration project.
    (b) Priority.--In awarding grants under this Act, the Secretary 
shall give priority to demonstration projects--
            (1) in which choice schools offer an enrollment opportunity 
        to the broadest range of eligible children;
            (2) that involve diverse types of choice schools; and
            (3) that will contribute to the geographic diversity of 
        demonstration projects assisted under this Act, including 
        awarding grants for demonstration projects in States that are 
        primarily rural and awarding grants for demonstration projects 
        in States that are primarily urban.

SEC. 7. APPLICATIONS.

    (a) In General.--Any eligible entity that wishes to receive a grant 
under this Act shall submit an application to the Secretary at such 
time and in such manner as the Secretary may prescribe.
    (b) Contents.--Each application described in subsection (a) shall 
contain--
            (1) information demonstrating the eligibility for 
        participation in the demonstration program of the eligible 
        entity;
            (2) with respect to choice schools--
                    (A) a description of the standards used by the 
                eligible entity to determine which public and private 
                schools are within a reasonable commuting distance of 
                eligible children and present a reasonable commuting 
                cost for such eligible children;
                    (B) a description of the types of potential choice 
                schools that will be involved in the demonstration 
                project;
                    (C)(i) a description of the procedures used to 
                encourage public and private schools to be involved in 
                the demonstration project; and
                    (ii) a description of how the eligible entity will 
                annually determine the number of spaces available for 
                eligible children in each choice school;
                    (D) an assurance that each choice school will not 
                impose higher standards for admission or participation 
                in its programs and activities for eligible children 
                provided education certificates under this Act than the 
                choice school does for other children;
                    (E) an assurance that each choice school operated, 
                for at least 1 year prior to accepting education 
                certificates under this Act, an educational program 
                similar to the educational program for which such 
                choice school will accept such education certificates;
                    (F) an assurance that the eligible entity will 
                terminate the involvement of any choice school that 
                fails to comply with the conditions of its involvement 
                in the demonstration project; and
                    (G) a description of the extent to which choice 
                schools will accept education certificates under this 
                Act as full or partial payment for tuition and fees;
            (3) with respect to the participation in the demonstration 
        project of eligible children--
                    (A) a description of the procedures to be used to 
                make a determination of eligibility for participation 
                in the demonstration project for an eligible child, 
                which shall include--
                            (i) the procedures used to determine 
                        eligibility for free or reduced price lunches 
                        under the National School Lunch Act; or
                            (ii) any other procedure, subject to the 
                        Secretary's approval, that accurately 
                        establishes the eligibility for such 
                        participation for an eligible child;
                    (B) a description of the procedures to be used to 
                ensure that, in selecting eligible children to 
                participate in the demonstration project, the eligible 
                entity will--
                            (i) apply the same criteria to both public 
                        and private school eligible children; and
                            (ii) give priority to eligible children 
                        from the lowest income families;
                    (C) a description of the procedures to be used to 
                ensure maximum choice of schools for participating 
                eligible children, including procedures to be used 
                when--
                            (i) the number of parents provided 
                        education certificates under this Act who 
                        desire to enroll their eligible children in a 
                        particular choice school exceeds the number of 
                        eligible children that the choice school will 
                        accept; and
                            (ii) grant funds and funds from local 
                        sources are insufficient to support the total 
                        cost of choices made by parents with education 
                        certificates under this Act; and
                    (D) a description of the procedures to be used to 
                ensure compliance with section 9(a)(1), which may 
                include--
                            (i) the direct provision of services by a 
                        local educational agency; and
                            (ii) arrangements made by a local 
                        educational agency with other service 
                        providers;
            (4) with respect to the operation of the demonstration 
        project--
                    (A) a description of the geographic area to be 
                served;
                    (B) a timetable for carrying out the demonstration 
                project;
                    (C) a description of the procedures to be used for 
                the issuance and redemption of education certificates 
                under this Act;
                    (D) a description of the procedures by which a 
                choice school will make a pro rata refund of the 
                education certificate under this Act for any 
                participating eligible child who withdraws from the 
                school for any reason, before completing 75 percent of 
                the school attendance period for which the education 
                certificate was issued;
                    (E) a description of the procedures to be used to 
                provide the parental notification described in section 
                10;
                    (F) an assurance that the eligible entity will 
                place all funds received under this Act into a separate 
                account, and that no other funds will be placed in such 
                account;
                    (G) an assurance that the eligible entity will 
                provide the Secretary periodic reports on the status of 
                such funds;
                    (H) an assurance that the eligible entity will 
                cooperate with the Comptroller General of the United 
                States and the evaluating agency in carrying out the 
                evaluations described in section 11; and
                    (I) an assurance that the eligible entity will--
                            (i) maintain such records as the Secretary 
                        may require; and
                            (ii) comply with reasonable requests from 
                        the Secretary for information; and
            (5) such other assurances and information as the Secretary 
        may require.

SEC. 8. EDUCATION CERTIFICATES.

    (a) Education Certificates.--
            (1) Amount.--The amount of an eligible child's education 
        certificate under this Act shall be determined by the eligible 
        entity, but shall be an amount that provides to the recipient 
        of the education certificate the maximum degree of choice in 
        selecting the choice school the eligible child will attend.
            (2) Considerations.--
                    (A) In general.--Subject to such regulations as the 
                Secretary shall prescribe, in determining the amount of 
                an education certificate under this Act an eligible 
                entity shall consider--
                            (i) the additional reasonable costs of 
                        transportation directly attributable to the 
                        eligible child's participation in the 
                        demonstration project; and
                            (ii) the cost of complying with section 
                        9(a)(1).
                    (B) Schools charging tuition.--If an eligible child 
                participating in a demonstration project under this Act 
                was attending a public or private school that charged 
                tuition for the year preceding the first year of such 
                participation, then in determining the amount of an 
                education certificate for such eligible child under 
                this Act the eligible entity shall consider--
                            (i) the tuition charged by such school for 
                        such eligible child in such preceding year; and
                            (ii) the amount of the education 
                        certificates under this Act that are provided 
                        to other eligible children.
            (3) Special rule.--An eligible entity may provide an 
        education certificate under this Act to the parent of an 
        eligible child who chooses to attend a school that does not 
        charge tuition or fees, to pay the additional reasonable costs 
        of transportation directly attributable to the eligible child's 
        participation in the demonstration project or the cost of 
        complying with section 9(a)(1).
    (b) Adjustment.--The amount of the education certificate for a 
fiscal year may be adjusted in the second and third years of an 
eligible child's participation in a demonstration project under this 
Act to reflect any increase or decrease in the tuition, fees, or 
transportation costs directly attributable to that eligible child's 
continued attendance at a choice school, but shall not be increased for 
this purpose by more than 10 percent of the amount of the education 
certificate for the fiscal year preceding the fiscal year for which the 
determination is made. The amount of the education certificate may also 
be adjusted in any fiscal year to comply with section 9(a)(1).
    (c) Maximum Amount.--Notwithstanding any other provision of this 
section, the amount of an eligible child's education certificate shall 
not exceed the per pupil expenditure for elementary or secondary 
education, as appropriate, by the local educational agency in which the 
public school to which the eligible child would normally be assigned is 
located for the fiscal year preceding the fiscal year for which the 
determination is made.
    (d) Income.--An education certificate under this Act, and funds 
provided under the education certificate, shall not be treated as 
income of the parents for purposes of Federal tax laws or for 
determining eligibility for any other Federal program.

SEC. 9. EFFECT ON OTHER PROGRAMS; USE OF SCHOOL LUNCH DATA.

    (a) Effect on Other Programs.--
            (1) In general.--An eligible child participating in a 
        demonstration project under this Act, who, in the absence of 
        such a demonstration project, would have received services 
        under part A of title I of the Elementary and Secondary 
        Education Act of 1965 shall be provided such services.
            (2) Part b of the individuals with disabilities education 
        act.--Nothing in this Act shall be construed to affect the 
        requirements of part B of the Individuals with Disabilities 
        Education Act.
    (b) Counting of Eligible Children.--Notwithstanding any other 
provision of law, any local educational agency participating in a 
demonstration project under this Act may count eligible children who, 
in the absence of such a demonstration project, would attend the 
schools of such agency, for purposes of receiving funds under any 
program administered by the Secretary.
    (c) Special Rule.--Notwithstanding section 9 of the National School 
Lunch Act, an eligible entity receiving a grant under this Act may use 
information collected for the purpose of determining eligibility for 
free or reduced price lunches to determine an eligible child's 
eligibility to participate in a demonstration project under this Act 
and, if needed, to rank families by income, in accordance with section 
7(b)(3)(B)(ii). All such information shall otherwise remain 
confidential, and information pertaining to income may be disclosed 
only to persons who need that information for the purposes of a 
demonstration project under this Act.
    (d) Construction.--
            (1) Sectarian institutions.--Nothing in this Act shall be 
        construed to supersede or modify any provision of a State 
        constitution or State law that prohibits the expenditure of 
        public funds in or by sectarian institutions, except that no 
        provision of a State constitution or State law shall be 
        construed to prohibit the expenditure in or by sectarian 
        institutions of any Federal funds provided under this Act.
            (2) Desegregation plans.--Nothing in this Act shall be 
        construed to interfere with any desegregation plans that 
        involve school attendance areas affected by this Act.

SEC. 10. PARENTAL NOTIFICATION.

    Each eligible entity receiving a grant under this Act shall provide 
timely notice of the demonstration project to parents of eligible 
children residing in the area to be served by the demonstration 
project. At a minimum, such notice shall--
            (1) describe the demonstration project;
            (2) describe the eligibility requirements for participation 
        in the demonstration project;
            (3) describe the information needed to make a determination 
        of eligibility for participation in the demonstration project 
        for an eligible child;
            (4) describe the selection procedures to be used if the 
        number of eligible children seeking to participate in the 
        demonstration project exceeds the number that can be 
        accommodated in the demonstration project;
            (5) provide information about each choice school, including 
        information about any admission requirements or criteria for 
        each choice school participating in the demonstration project; 
        and
            (6) include the schedule for parents to apply for their 
        eligible children to participate in the demonstration project.

SEC. 11. EVALUATION.

    (a) Annual Evaluation.--
            (1) Contract.--The Comptroller General of the United States 
        shall enter into a contract, with an evaluating agency that has 
        demonstrated experience in conducting evaluations, for the 
        conduct of an ongoing rigorous evaluation of the demonstration 
        program under this Act.
            (2) Annual evaluation requirement.--The contract described 
        in paragraph (1) shall require the evaluating agency entering 
        into such contract to annually evaluate each demonstration 
        project under this Act in accordance with the evaluation 
        criteria described in subsection (b).
            (3) Transmission.--The contract described in paragraph (1) 
        shall require the evaluating agency entering into such contract 
        to transmit to the Comptroller General of the United States--
                    (A) the findings of each annual evaluation under 
                paragraph (1); and
                    (B) a copy of each report received pursuant to 
                section 12(a) for the applicable year.
    (b) Evaluation Criteria.--The Comptroller General of the United 
States, in consultation with the Secretary, shall establish minimum 
criteria for evaluating the demonstration program under this Act. Such 
criteria shall provide for--
            (1) a description of the implementation of each 
        demonstration project under this Act and the demonstration 
        project's effects on all participants, schools, and communities 
        in the demonstration project area, with particular attention 
        given to the effect of parent participation in the life of the 
        school and the level of parental satisfaction with the 
        demonstration program; and
            (2) a comparison of the educational achievement of all 
        students in the demonstration project area, including a 
        comparison of--
                    (A) students receiving education certificates under 
                this Act; and
                    (B) students not receiving education certificates 
                under this Act.

SEC. 12. REPORTS.

    (a) Report by Grant Recipient.--Each eligible entity receiving a 
grant under this Act shall submit to the evaluating agency entering 
into the contract under section 11(a)(1) an annual report regarding the 
demonstration project under this Act. Each such report shall be 
submitted at such time, in such manner, and accompanied by such 
information, as such evaluating agency may require.
    (b) Reports by Comptroller General.--
            (1) Annual reports.--The Comptroller General of the United 
        States shall report annually to the Congress on the findings of 
        the annual evaluation under section 11(a)(2) of each 
        demonstration project under this Act. Each such report shall 
        contain a copy of--
                    (A) the annual evaluation under section 11(a)(2) of 
                each demonstration project under this Act; and
                    (B) each report received under subsection (a) for 
                the applicable year.
            (2) Final report.--The Comptroller General shall submit a 
        final report to the Congress within 9 months after the 
        conclusion of the demonstration program under this Act that 
        summarizes the findings of the annual evaluations conducted 
        pursuant to section 11(a)(2).
                                 <all>
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