[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1512 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1512

 To provide educational opportunities for disadvantaged children, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 1999

  Mr. McCain introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
 To provide educational opportunities for disadvantaged children, and 
                          for other purposes.

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

                   TITLE I--EDUCATIONAL OPPORTUNITIES

SEC. 101. PURPOSES.

    The purposes of this title are--
            (1) to assist States to--
                    (A) give children from low-income families the same 
                choices among all elementary and secondary schools and 
                other academic programs as children from wealthier 
                families already have;
                    (B) improve schools and other academic programs by 
                giving parents in low-income families increased 
                consumer power to choose the schools and programs that 
                the parents determine best fit the needs of their 
                children; and
                    (C) more fully engage parents in their children's 
                schooling; and
            (2) to demonstrate, through a 3-year national grant 
        program, the effects of a voucher program that gives parents in 
        low-income families--
                    (A) choice among public, private, and religious 
                schools for their children; and
                    (B) access to the same academic options as parents 
                in wealthy families have for their children.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this title (other than section 110) $1,800,000,000 for each of 
fiscal years 2001 through 2003.
    (b) Evaluation.--There is authorized to be appropriated to carry 
out section 110 $17,000,000 for fiscal years 2001 through 2004.

SEC. 103. PROGRAM AUTHORITY.

    (a) In General.--The Secretary shall make grants to States, from 
allotments made under section 104 to enable the States to carry out 
educational choice programs that provide scholarships, in accordance 
with this title.
    (b) Limit on Federal Administrative Expenditures.--The Secretary 
may reserve not more than $1,000,000 of the amounts appropriated under 
section 102(a) for a fiscal year to pay for the costs of administering 
this title.

SEC. 104. ALLOTMENTS TO STATES.

    (a) Allotments.--The Secretary shall make the allotments to States 
in accordance with a formula specified in regulations issued in 
accordance with subsection (b). The formula shall provide that the 
Secretary shall allot to each State an amount that bears the same 
relationship to the amounts appropriated under section 102(a) for a 
fiscal year (other than funds reserved under section 103(b)) as the 
number of covered children in the State bears to the number of covered 
children in all such States.
    (b) Formula.--Not later than 90 days after the date of enactment of 
this Act, the Secretary shall issue regulations specifying the formula 
referred to in subsection (a).
    (c) Limit on State Administrative Expenditures.--The State may 
reserve not more than 1 percent of the funds made available through the 
State allotment to pay for the costs of administering this title.
    (d) Definition.--In this section, the term ``covered child'' means 
a child who is enrolled in a public school (including a charter school) 
that is an elementary school or secondary school.

SEC. 105. ELIGIBLE SCHOOLS.

    (a) Eligibility.--
            (1) In general.--Schools identified by a State under 
        paragraph (2) shall be considered to be eligible schools under 
        this title.
            (2) Determination.--Not later than 180 days after the date 
        the Secretary issues regulations under section 104(b), each 
        State shall identify the public elementary schools and 
        secondary schools in the State that are at or below the 25th 
        percentile for academic performance of schools in the State.
    (b) Performance.--The State shall determine the academic 
performance of a school under this section based on such criteria as 
the State may consider to be appropriate.

SEC. 106. SCHOLARSHIPS.

    (a) In General.--
            (1) Scholarship awards.--With funds awarded under this 
        title, each State awarded a grant under this title shall 
        provide scholarships to the parents of eligible children, in 
        accordance with subsections (b) and (c). The State shall ensure 
        that the scholarships may be redeemed for elementary or 
        secondary education for the children at any of a broad variety 
        of public and private schools, including religious schools, in 
        the State.
            (2) Scholarship amount.--The amount of each scholarship 
        shall be $2000 per year.
            (3) Tax exemption.--Scholarships awarded under this title 
        shall not be considered income of the parents for Federal 
        income tax purposes or for determining eligibility for any 
        other Federal program.
    (b) Eligible Children.--To be eligible to receive a scholarship 
under this title, a child shall be--
            (1) a child who is enrolled in a public elementary school 
        or secondary school that is an eligible school; and
            (2) a member of a family with a family income that is not 
        more than 200 percent of the poverty line.
    (c) Award Rules.--
            (1) Priority.--In providing scholarships under this title, 
        the State shall provide scholarships for eligible children 
        through a lottery system administered for all eligible schools 
in the State by the State educational agency.
            (2) Continuing eligibility.--Each State receiving a grant 
        under this title to carry out an educational choice program 
        shall provide a scholarship in each year of the program to each 
        child who received a scholarship during the previous year of 
        the program, unless--
                    (A) the child no longer resides in the area served 
                by an eligible school;
                    (B) the child no longer attends school;
                    (C) the child's family income exceeds, by 20 
                percent or more, 200 percent of the poverty line; or
                    (D) the child is expelled or convicted of a felony, 
                including felonious drug possession, possession of a 
                weapon on school grounds, or a violent act against an 
                other student or a member of the school's faculty.

SEC. 107. USES OF FUNDS.

    Any scholarship awarded under this title for a year shall be used--
            (1) first, for--
                    (A) the payment of tuition and fees at the school 
                selected by the parents of the child for whom the 
                scholarship was provided; and
                    (B) the reasonable costs of the child's 
                transportation to the school, if the school is not the 
                school to which the child would be assigned in the 
                absence of a program under this title;
            (2) second, if the parents so choose, to obtain 
        supplementary academic services for the child, at a cost of not 
        more than $500, from any provider chosen by the parents, that 
        the State determines is capable of providing such services and 
        has an appropriate refund policy; and
            (3) finally, for educational programs that help the 
        eligible child achieve high levels of academic excellence in 
        the school attended by the eligible child, if the eligible 
        child chooses to attend a public school.

SEC. 108. STATE REQUIREMENT.

    A State that receives a grant under this title shall allow lawfully 
operating public and private elementary schools and secondary schools, 
including religious schools, if any, serving the area involved to 
participate in the program.

SEC. 109. EFFECT OF PROGRAMS.

    (a) Title I.--Notwithstanding any other provision of law, if a 
local educational agency in the State would, in the absence of an 
educational choice program that is funded under this title, provide 
services to a participating eligible child under part A of title I of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et 
seq.), the State shall ensure the provision of such services to such 
child.
    (b) Individuals With Disabilities.--Nothing in this title shall be 
construed to affect the requirements of part B of the Individuals with 
Disabilities Education Act (20 U.S.C. 1411 et seq.).
    (c) Aid.--
            (1) In general.--Scholarships under this title shall be 
        considered to aid families, not institutions. For purposes of 
        determining Federal assistance under Federal law, a parent's 
        expenditure of scholarship funds under this title at a school 
        or for supplementary academic services shall not constitute 
        Federal financial aid or assistance to that school or to the 
        provider of supplementary academic services.
            (2) Supplementary academic services.--
                    (A) In general.--Notwithstanding paragraph (1), a 
                school or provider of supplementary academic services 
                that receives scholarship funds under this title shall, 
                as a condition of participation under this title, 
                comply with the provisions of title VI of the Civil 
                Rights Act of 1964 (42 U.S.C. 2000d et seq.) and 
                section 504 of the Rehabilitation Act of 1973 (29 
                U.S.C. 794).
                    (B) Regulations.--The Secretary shall promulgate 
                regulations to implement the provisions of subparagraph 
                (A), taking into account the purposes of this title and 
                the nature, variety, and missions of schools and 
                providers that may participate in providing services to 
                children under this title.
    (d) Other Federal Funds.--No Federal, State, or local agency may, 
in any year, take into account Federal funds provided to a State or to 
the parents of any child under this title in determining whether to 
provide any other funds from Federal, State, or local resources, or in 
determining the amount of such assistance, to such State or to a school 
attended by such child.
    (e) No Discretion.--Nothing in this title shall be construed to 
authorize the Secretary to exercise any direction, supervision, or 
control over the curriculum, program of instruction, administration, or 
personnel of any educational institution or school participating in a 
program under this title.

SEC. 110. EVALUATION.

    The Comptroller General of the United States shall conduct an 
evaluation of the program authorized by this title. Such evaluation 
shall, at a minimum--
            (1) assess the implementation of educational choice 
        programs assisted under this title and their effect on 
        participants, schools, and communities in the school districts 
        served, including parental involvement in, and satisfaction 
        with, the program and their children's education;
            (2) compare the educational achievement of participating 
        eligible children with the educational achievement of similar 
        non-participating children before, during, and after the 
        program; and
            (3) compare--
                    (A) the educational achievement of eligible 
                children who use scholarships to attend schools other 
                than the schools the children would attend in the 
                absence of the program; with
                    (B) the educational achievement of children who 
                attend the schools the children would attend in the 
                absence of the program.

SEC. 111. ENFORCEMENT.

    (a) Regulations.--The Secretary shall promulgate regulations to 
enforce the provisions of this title.
    (b) Private Cause.--No provision or requirement of this title shall 
be enforced through a private cause of action.

SEC. 112. DEFINITIONS.

    In this title:
            (1) Charter school.--The term ``charter school'' has the 
        meaning given the term in section 10310 of the Elementary and 
        Secondary Education Act of 1965 (as redesignated in section 
        3(g) of Public Law 105-278; 112 Stat. 2687).
            (2) Elementary school; local educational agency; parent; 
        secondary school; state educational agency.--The terms 
        ``elementary school'', ``local educational agency'', 
        ``parent'', ``secondary school'', and ``State educational 
        agency'' have the meanings given the terms in section 14101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801).
            (3) Poverty line.--The term ``poverty line'' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (5) State.--The term ``State'' means each of the 50 States.

                      TITLE II--REVENUE PROVISIONS

SEC. 201. PHASEOUT OF OIL AND GAS EXPENSING OF DRILLING AND DEVELOPMENT 
              COSTS.

    Section 263(c) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new sentence: ``This subsection shall 
not apply to the applicable percentage of costs incurred in taxable 
years beginning after December 31, 1999. For purposes of the preceding 
sentence, the applicable percentage for any taxable year shall be 
determined in accordance with the following table:

``In the case of any taxable year   The applicable percentage is--
        beginning in--
    2000..........................................                  20 
    2001..........................................                  40 
    2002..........................................                  60 
    2003..........................................                  80 
    After 2003....................................               100.''

SEC. 202. SUNSET OF ALCOHOL FUELS INCENTIVES.

    (a) In General.--The following provisions of the Internal Revenue 
Code of 1986 are each repealed:
            (1) Section 40 (relating to alcohol used as fuel).
            (2) Section 4041(b)(2) (relating to qualified methanol and 
        ethanol).
            (3) Section 4041(k) (relating to fuels containing alcohol).
            (4) Section 4081(c) (relating to taxable fuels mixed with 
        alcohol).
            (5) Section 4091(c) (relating to reduced rate of tax for 
        aviation fuel in alcohol mixture, etc.).
            (6) Section 6427(f) (relating to gasoline, diesel fuel, 
        kerosene, and aviation fuel used to produce certain alcohol 
        fuels).
            (7) The headings 9901.00.50 and 9901.00.52 of the 
        Harmonized Tariff Schedule of the United States (19 U.S.C. 
        3007).
    (b) Effective Date.--The repeals made by subsection (a) shall take 
effect on October 1, 1999.

SEC. 203. REPEAL OF ENHANCED OIL RECOVERY CREDIT.

    Section 43 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following:
    ``(f) Termination.--In the case of taxable years beginning after 
December 31, 1999, the enhanced oil recovery credit is zero.''.

SEC. 204. REPEAL OF UNLIMITED PASSIVE LOSS DEDUCTIONS FOR OIL AND GAS 
              PROPERTIES.

    Section 469(c)(3) of the Internal Revenue Code of 1986 (relating to 
working interests in oil and gas property) is amended by adding at the 
end the following:
                    ``(C) Termination.--This paragraph shall not apply 
                with respect to any taxable year beginning after 
                December 31, 1999.''

SEC. 205. SUGAR PROGRAM.

    (a) Elimination of Authority To Use Sugar as Collateral for 
Loans.--Section 156 of the Agricultural Market Transition Act (7 U.S.C. 
7272) is amended--
            (1) in subsection (d)--
                    (A) by striking ``(d)'' and all that follows 
                through ``A loan under'' and inserting ``(d) Term of 
                Loans.--A loan under'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively, and indenting 
                appropriately;
            (2) by striking subsection (g); and
            (3) by redesignating subsections (h) and (i) as subsections 
        (g) and (h), respectively.
    (b) Elimination of Sugar Price Support and Production Adjustment 
Programs.--
            (1) In general.--Notwithstanding any other provision of 
        law--
                    (A) a processor of any of the 2003 or subsequent 
                crops of sugarcane or sugar beets shall not be eligible 
                for a loan under any provision of law with respect to 
                the crop; and
                    (B) the Secretary of Agriculture may not make price 
                support available, whether in the form of a loan, 
                payment, purchase, or other operation, for any of the 
                2003 and subsequent crops of sugar beets and sugarcane 
                by using the funds of the Commodity Credit Corporation 
                or other funds available to the Secretary.
            (2) Termination of marketing quotas and allotments.--
                    (A) In general.--Part VII of subtitle B of title 
                III of the Agricultural Adjustment Act of 1938 (7 
                U.S.C. 1359aa et seq.) is repealed.
                    (B) Conforming amendment.--Section 344(f)(2) of the 
                Agricultural Adjustment Act of 1938 (7 U.S.C. 
                1344(f)(2)) is amended by striking ``sugar cane for 
                sugar, sugar beets for sugar,''.
            (3) General powers.--
                    (A) Designated nonbasic agricultural commodities.--
                Section 201(a) of the Agricultural Act of 1949 (7 
                U.S.C. 1446(a)) is amended by striking ``milk, sugar 
                beets, and sugarcane'' and inserting ``and milk''.
                    (B) Powers of commodity credit corporation.--
                Section 5(a) of the Commodity Credit Corporation 
                Charter Act (15 U.S.C. 714c(a)) is amended by inserting 
                after ``agricultural commodities'' the following: 
                ``(other than sugar)''.
                    (C) Section 32 activities.--Section 32 of the Act 
                of August 24, 1935 (49 Stat. 774, chapter 641; 7 U.S.C. 
                612c), is amended in the second sentence of the first 
                paragraph--
                            (i) in paragraph (1), by inserting ``(other 
                        than sugar)'' after ``commodities''; and
                            (ii) in paragraph (3), by inserting 
                        ``(other than sugar)'' after ``commodity''.
            (4) Transition provisions.--This subsection and the 
        amendments made by this subsection shall not affect the 
        liability of any person under any provision of law as in effect 
        before the application of this subsection and the amendments 
        made by this subsection.
            (5) Crops.--This subsection and the amendments made by this 
        subsection shall apply beginning with the 2003 crop of sugar 
        beets and sugarcane.
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