[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2561 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2561

       To provide low-income children educational opportunities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 1997

Mr. Weldon of Florida introduced the following bill; which was referred 
            to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
       To provide low-income children educational opportunities.

    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 Educational Opportunity 
Act of 1998''.

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 (42 U.S.C. 1751 et seq.);
            (3) the term ``eligible entity'' means a public agency, 
        institution, or organization, such as a State, 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.

    (a) In general.--There are authorized to be appropriated 
$30,000,000 for fiscal year 1999, and such sums as may be necessary for 
each of the fiscal years 2000, 2001, 2002, and 2003, to carry out this 
Act.
    (b) Reservation.--From the amount appropriated pursuant to 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.

SEC. 5. PROGRAM AUTHORIZED.

    (a) Grants.--
            (1) In general.--From the amount appropriated pursuant to 
        section 4 and not reserved under section 4(b) for any fiscal 
        year, the Secretary, in consultation with the evaluating agency 
        selected pursuant to section 11(a)(1), shall award grants to 
        eligible entities under this Act to carry out a total of not 
        less than 10, but not more than 20, demonstration projects 
        under which parents of an eligible child receive an education 
        scholarship for the costs of enrolling such a child in a choice 
        school.
            (2) Amount.--The Secretary shall award grants under 
        paragraph (1) for each fiscal year in the following manner:
                    (A) Grants of $5,000,000 or less.--Not more than 2 
                grants shall be awarded in an amount not to exceed 
                $5,000,000 with preference for one such grant given to 
                the District of Columbia if an application submitted by 
                the District of Columbia meets the requirements of this 
                Act.
                    (B) Grants of $3,000,000 or less.--Each remaining 
                grant awarded under this Act, not to exceed 18, shall 
                be awarded in an amount that does not exceed 
                $3,000,000.
            (3) Continuing eligibility.--In awarding grants for the 
        second, third, fourth, and fifth years, the Secretary shall 
        continue to award grants to eligible entities initially 
        selected unless the Secretary determines that such an eligible 
        entity was not in compliance with this Act for the preceding 
        fiscal year.
    (b) Use of Grants.--Grants awarded under subsection (b) shall be 
used to pay the costs of--
            (1) providing an education scholarship to parents of an 
        eligible child to enable such parents to pay the tuition, the 
        fees, the allowable costs of transportation for their eligible 
        child to attend a choice school; and
            (2) administering 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 
        scholarships under this Act or 10 percent in any subsequent 
        year, for activities that include--
                    (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 eligible children to participate in 
                the demonstration project;
                    (E) determining the amount of, and issuing, 
                education scholarships;
                    (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 
                requests to conduct the evaluation described in section 
                11.

SEC. 6. AUTHORIZED PROJECTS; PRIORITY.

    (a) Authorized Projects.--The Secretary may award a grant under 
this Act for a demonstration project only if such project--
            (1) involves not less than 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 in the State receiving funds under such 
                section that serves 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 a grant 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 equitable geographic 
        diversity of demonstration projects assisted under this Act, 
        including States and areas that are primarily rural and States 
        and areas that are primarily urban.

SEC. 7. APPLICATIONS.

    (a) In General.--An 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 such application 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;
                    (ii) a description of how the eligible entity will 
                annually determine the number of spaces available for 
                eligible children in each choice school; and
                    (iii) a description of how the eligibility entity 
                will select applicants;
                    (D) an assurance that each choice school will not 
                impose different standards for admission or 
                participation in its programs and activities for 
                eligible children who receive an education scholarships 
                under this Act than the standards such school uses for 
                other students attending such school;
                    (E) an assurance that each choice school operated, 
                for not less than 1 year prior to accepting education 
                scholarships under this Act, an educational program 
                similar to the educational program proposed for 
                education scholarships;
                    (F) an assurance that each choice school 
                participating in the demonstration program under this 
                Act shall not discriminate on the basis of race, color, 
                or national origin;
                    (G) an assurance that the eligible entity will 
                terminate the involvement of any choice school that 
                fails to comply with the requirements of this Act; and
                    (H) a description of the extent to which choice 
                schools will accept education scholarships under this 
                Act as full or partial payment for tuition and fees;
            (3) with respect to the participation of eligible children 
        in the demonstration project--
                    (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, 
                including--
                            (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 eligible 
                        children from both public and private school; 
                        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 who desire to 
                        receive an education scholarship 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 
                        scholarships; and
                    (D) a description of the procedures to be used to 
                ensure any eligible child under this Act who would be 
                eligible to receive services under part A of title I of 
                the Elementary and Secondary Education Act of 1965 who 
                attends a choice school receives such services, 
                including--
                            (i) the direct provision of services by a 
                        local educational agency; or
                            (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 scholarships 
                under this Act;
                    (D) a description of the procedures by which a 
                choice school will make a refund of the portion 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, or any other reasonable 
                agreement between parents and a choice school, 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;
                    (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 reasonably require.

SEC. 8. EDUCATION SCHOLARSHIPS.

    (a) Education Scholarships.--
            (1) Amount.--The amount of an education scholarship under 
        this Act shall be determined by the eligible entity, but shall 
        be an amount that provides to the recipient of each education 
        scholarship the maximum degree of choice in selecting the 
        choice school an eligible child may attend.
            (2) Considerations.--
                    (A) In general.--Subject to such regulations as the 
                Secretary shall prescribe, in determining the amount of 
                an education scholarship 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 
                attended a public or private school that charged 
                tuition for the year preceding the first year of such 
                participation, 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 
                        scholarships under this Act that are provided 
                        to other eligible children.
            (3) Special rule.--An eligible entity may provide an 
        education scholarship 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 scholarship 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 
scholarship for the fiscal year preceding the fiscal year for which the 
determination is made. The amount of the education scholarship 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 scholarship shall 
not exceed the per pupil expenditure for elementary or secondary 
education, as the case may be, 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 scholarship under this Act, and funds 
provided through an education scholarship, 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.--
                    (A) Title i services.--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.
                    (B) Exception.--Nothing in this Act shall require a 
                choice school to set up an education program as defined 
                under part A of title I of such Act.
            (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, except that a choice school that accepts 
        eligible children under this Act is not required to provide 
        services under part B of such Act if such program was not in 
force on the day before the date of the enactment of this 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, as 
determined by the eligible entity, only to persons who need that 
information for the purposes of a demonstration project under this Act.
    (d) Construction.--
            (1) State law.--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 religious or other private institutions, except that no 
        provision of a State constitution or State law shall be 
        construed or applied to prohibit any grantee from a program 
        under this Act or to prohibit the expenditure in or by 
        religious or other private institutions of any Federal funds 
        provided under this Act.
            (2) Desegregation.--Nothing in this Act shall be construed 
        to displace rights or remedies through enforcement of civil 
        rights guarantees.

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 child to participate in a demonstration project.

SEC. 11. EVALUATION.

    (a) Annual Evaluation.--
            (1) Contract.--The Comptroller General of the United 
        States, not later than 3 months after the date of the enactment 
        of this Act, 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 evaluate annually each demonstration 
        project under this Act in accordance with the evaluation 
        criteria described in subsection (b) to transmit to the 
        Comptroller General of the United States--
                    (A) the findings of each annual evaluation under 
                paragraph (1);
                    (B) a copy of each report received pursuant to 
                section 12(a) for the applicable year; and
                    (C) a copy of the final concluding report to 
                Congress no later than 5 years after enactment.
    (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 scholarships under 
                this Act; and
                    (B) students not receiving education scholarships 
                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 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>