[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 4 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                  S. 4

       To improve access to a quality education for all students.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2003

  Mr. Gregg (for himself, Mr. Frist, Mr. McConnell, Mr. Santorum, Mr. 
Alexander, Mr. Ensign, and Mr. Graham of South Carolina) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
       To improve access to a quality education for all students.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Opportunity for 
Every Child Act of 2003''.
    (b) Table of Contents.--
            The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.
                          TITLE I--EMPOWERMENT

Sec. 101. Short title.
Sec. 102. Sense of the Senate.
                         Part A--School Choice

Sec. 111. Short title and purpose.
Sec. 112. Definitions.
Sec. 113. Program authorized.
Sec. 114. Annual reports.
Sec. 115. Applications.
Sec. 116. Priority.
Sec. 117. Interaction with other laws.
Sec. 118. Standing.
Sec. 119. Authorization of appropriations.
            Part B--District of Columbia Scholarship Program

Sec. 121. Short title, findings, and precedents.
Sec. 122. Definitions.
Sec. 123. District of Columbia Scholarship Corporation.
Sec. 124. Scholarships authorized.
Sec. 125. Scholarship awards.
Sec. 126. Scholarship payments.
Sec. 127. Civil rights.
Sec. 128. Children with disabilities.
Sec. 129. Rule of construction.
Sec. 130. Reporting requirements.
Sec. 131. Program appraisal.
Sec. 132. Standing.
Sec. 133. Effective date.
                        Part C--Charter Schools

Sec. 141. Authorization of appropriations.
                             TITLE II--IDEA

Sec. 201. Sense of the Senate regarding IDEA.
Sec. 202. Fully funding IDEA.
                      TITLE III--HIGHER EDUCATION

Sec. 301. Sense of the Senate regarding expanding access to college. 
Sec. 302. Sense of the Senate regarding minority-serving institutions. 
Sec. 303. Authorization of appropriations.
                     TITLE IV--RECRUITING TEACHERS

    Part A--Loan Forgiveness for Mathematics, Science, and Special 
                           Education Teachers

Sec. 411. Short title.
Sec. 412. Sense of the Senate regarding loan forgiveness.
Sec. 413. Revision of teacher loan forgiveness programs.
                  Part B--Classroom Expense Deduction

Sec. 421. Expansion of classroom expense deduction for teachers.
               TITLE V--MAKING EDUCATION MORE AFFORDABLE

Sec. 501. Sense of the Senate regarding making education more 
                            affordable.
Sec. 502. Affordable education provisions made permanent.
Sec. 503. Credit for education, tuition, and transportation expenses of 
                            students assigned to schools identified for 
                            school improvement.

                          TITLE I--EMPOWERMENT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Empowering Parents Act of 2003''.

SEC. 102. SENSE OF THE SENATE.

    It is the sense of the Senate that--
            (1) parents are best equipped to make decisions for their 
        children, including the educational setting that will best 
        serve the interests and educational needs of their child;
            (2) parents of children in underperforming public schools 
        should have the choice to send their children to higher 
        performing schools, be they public schools (including charter 
        schools) or private schools;
            (3) for many parents in rural and urban areas, public 
        school choice provided for under the amendments made by the No 
        Child Left Behind Act of 2001 is not a meaningful option due to 
        capacity constraints, therefore in keeping with the spirit of 
        the No Child Left Behind Act of 2001, private school choice 
        should be made available to those parents;
            (4) the District of Columbia schools have the lowest 
        student performance averages of any school system in the Nation 
        on the National Assessment of Educational Progress (NAEP) and 
        therefore parents in the District of Columbia are in particular 
        need of more options, including the possibility of sending 
        their child to private school; and
            (5) charter schools support and stimulate improved public 
        school performance by promoting competition and providing 
        parents increased options for their children, and therefore the 
        Federal Government should encourage their creation and growth, 
        particularly due to the unique financing barriers charter 
        schools face.

                         PART A--SCHOOL CHOICE

SEC. 111. SHORT TITLE AND PURPOSE.

    (a) Short Title.--This part may be cited as the ``School Choice 
Incentive Act of 2003''.
    (b) Purpose.--The purpose of this part is to provide low-income 
students attending under performing public elementary or secondary 
schools the opportunity to attend a private school when public school 
choice is unavailable.

SEC. 112. DEFINITIONS.

    In this part:
            (1) Education certificate.--The term ``education 
        certificate'' means a certificate provided to an eligible 
        student to enable the  eligible student to attend a private 
school.
            (2) Eligible entity.--The term ``eligible entity'' means a 
        public agency, institution, or organization, such as a State, a 
        State or local educational agency, a county or municipal 
        agency, a consortium of public and private organizations, or a 
        private nonprofit organization, 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 the 
                application submitted under section 115.
            (3) Eligible student.--The term ``eligible student'' means 
        a child in any of the grades kindergarten through grade 12--
                    (A) who is eligible for a free or reduced price 
                meal under the Richard B. Russell National School Lunch 
                Act (42 U.S.C. 1751 et seq.); and
                    (B) who attends, is scheduled to attend, or plans 
                to attend in the next school year (in the case of a 
                child who is not yet of school age), a school 
                identified for school improvement.
            (4) Parent.--The term ``parent'' includes a legal guardian 
        or other individual acting in loco parentis.
            (5) Private school.--The term ``private school'' means any 
        private elementary or secondary school, including a private 
        elementary or secondary sectarian school.
            (6) School identified for school improvement.--The term 
        ``school identified for school improvement'' means a public 
        elementary or secondary school identified for school 
        improvement under section 1116(b) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6316).
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.

SEC. 113. PROGRAM AUTHORIZED.

    (a) In General.--The Secretary may award grants to eligible 
entities to enable the eligible entities to provide education 
certificates to eligible students according to the requirements of this 
part.
    (b) Requirement.--An eligible entity shall only award an education 
certificate to an eligible student if the local educational agency 
serving the public school the eligible student would otherwise attend 
is unable to enroll the eligible student in another public school that 
has not been identified for school improvement.
    (c) Use of Federal Funds.--Each eligible entity receiving a grant 
under this part--
            (1) shall provide educational certificates to eligible 
        students to supplement the costs of private school tuition, 
        mandatory fees, and costs of transportation (if any); and
            (2) may expend not more than 15 percent of the amount 
        received under the grant in the first fiscal year for which the 
        eligible entity provides education certificates under this 
        part, or 10 percent of such amount in any subsequent year, for 
        the costs of administration, including--
                    (A) providing information to parents about the 
                education certificates;
                    (B) seeking the involvement of private schools;
                    (C) making determinations of eligibility for 
                participation for eligible children;
                    (D) determining the amount of, and issuing, 
                education certificates; and
                    (E) compiling and maintaining such financial and 
                programmatic records as the Secretary may require.
    (d) Education Certificates.--
            (1) Amount.--The amount of an education certificate shall 
        be calculated on a yearly basis, and shall be equal to the cost 
        of tuition and mandatory fees for, and transportation, as 
        appropriate, to attend, a private school.
            (2) Maximum amount.--Notwithstanding any other provision of 
        this part, the maximum amount of an eligible student's 
        education certificate under this part shall not exceed the per 
        pupil expenditure for elementary and secondary education by the 
        local educational agency serving the school identified for 
        school improvement.
            (3) Tax status.--An education certificate, 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.
    (e) Eligible Entity Responsibilities.--Each eligible entity 
receiving a grant under this part--
            (1) shall provide timely annual notice to parents of 
        eligible students explaining the availability of education 
        certificates under this part, which at a minimum, shall 
        include--
                    (A) a description of the eligibility requirements 
                for participation in the program assisted under this 
                part;
                    (B) a description of the information needed to make 
                a determination of eligibility for such participation 
                for an eligible student;
                    (C) a description of the selection procedures to be 
                used if the number of eligible students seeking to 
                participate exceeds the number that can be 
                accommodated; and
                    (D) the schedule for parents to apply for their 
                eligible students to participate;
            (2) shall apply fair and equitable procedures for serving 
        eligible students if the amount available for education 
        certificates is not sufficient to serve all eligible students, 
        and, in such event, shall prioritize serving students from 
        families with the lowest income first;
            (3) shall not disclose to the public the identity of any 
        eligible student without the written permission of a parent of 
        the student;
            (4) shall promote maximum participation in the education 
        certificate program to ensure, to the extent practicable, that 
        parents have as many choices of private schools as possible; 
        and
            (5) shall provide annual notice to private schools of the 
        opportunity to participate in the program.

SEC. 114. ANNUAL REPORTS.

    Each eligible entity that receives a grant under this part shall 
submit to the Secretary an annual report. Each such report shall be 
submitted at such time, in such manner, and accompanied by such 
information, as the Secretary may require.

SEC. 115. APPLICATIONS.

    (a) In General.--Each eligible entity desiring a grant under this 
part shall submit an application to the Secretary at such time and in 
such manner as the Secretary may require.
    (b) Contents.--Each such application shall contain an assurance by 
the eligible entity that--
            (1) each private school participating in the program has 
        been in operation for at least 1 year prior to accepting 
        education certificates under this part; and
            (2) the eligible entity will terminate the involvement of a 
        private school in the program if the private school fails to 
        comply with the requirements of the program.

SEC. 116. PRIORITY.

    In awarding grants under this section, the Secretary shall give a 
priority to eligible entities that propose to carry out education 
certificate programs serving school districts that have a high number 
or a high concentration of schools identified for school improvement.

SEC. 117. INTERACTION WITH OTHER LAWS.

    (a) Part B of the Individuals With Disabilities Education Act.--
Nothing in this part shall be construed to affect the requirements of 
part B of the Individuals with Disabilities Education Act.
    (b) Civil Rights.--A private school participating in the program 
under this part shall not discriminate on the basis of race, color, 
national origin, or sex in carrying out the provisions of this part.
    (c) Applicability and Construction With Respect to Discrimination 
on the Basis of Sex.--
            (1) Applicability.--With respect to discrimination on the 
        basis of sex, subsection (a) shall not apply to a private 
        school that is controlled by a religious organization if the 
        application of subsection (a) is inconsistent with the 
        religious tenets of the private school.
            (2) Construction.--With respect to discrimination on the 
        basis of sex, nothing in subsection (a) shall be construed to 
        require any person, or public or private entity to provide or 
        pay, or to prohibit any such person or entity from providing or 
        paying, for any benefit or service, including the use of 
        facilities, related to an abortion. Nothing in the preceding 
        sentence shall be construed to permit a penalty to be imposed 
        on any person or individual because such person or individual 
        is seeking or has received any benefit or service related to a 
        legal abortion.
            (3) Single-sex schools, classes, or activities.--With 
        respect to discrimination on the basis of sex, nothing in 
        subsection (a) shall be construed to prevent a parent from 
        choosing, or a private school from offering, a single-sex 
        school, class, or activity.
    (d) Revocation.--If an eligible entity determines that a private 
school participating in a program assisted under this section is in 
violation of subsection (a) or (b), then the eligible entity shall 
terminate the involvement of the private school in the program.
    (e) Rule of Construction.--Nothing in this part shall be construed 
to prevent a private school which is operated by, supervised by, 
controlled by, or connected to, a religious organization from 
employing, admitting, or giving preference to, persons of the same 
religion to the extent determined by the private school to promote the 
religious purpose for which the private school is established or 
maintained.
    (f) Sectarian Purposes.--Nothing in this part shall be construed to 
prohibit the use of funds made available under this part for sectarian 
educational purposes, or to require a private school to remove 
religious art, icons, scripture, or other symbols.

SEC. 118. STANDING.

    The parent of any student eligible to receive an education 
certificate under this part shall have standing in an action 
challenging the constitutionality of the education certificate program 
under this part.

SEC. 119. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this part 
$75,000,000 for fiscal year 2004 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.

            PART B--DISTRICT OF COLUMBIA SCHOLARSHIP PROGRAM

SEC. 121. SHORT TITLE, FINDINGS, AND PRECEDENTS.

    (a) Short Title.--This part may be cited as the ``District of 
Columbia Student Opportunity Scholarship Act of 2003''.
    (b) Findings.--Congress finds that the Supreme Court, in Zelman v. 
Simmons-Harris, 536 U.S.C. 639, (2002)--
            (1) held that the State-funded school choice program 
        established in Cleveland, Ohio, did not violate the 
        establishment clause of the first amendment of the Constitution 
        because the program was one of true private choice, allowing 
        parents a genuine and independent decision whether to use a 
        tuition scholarship at a participating public or private 
        school; and
            (2) determined that as long as the beneficiary decides 
        where education funds will be spent on such individual's 
        behalf, public funds can be used for education in a religious 
        institution because the public entity has neither advanced nor 
        hindered a particular religion, or religion in general.

SEC. 122. DEFINITIONS.

    In this part:
            (1) The term ``Board'' means the Board of Directors of the 
        Corporation established under section 123(b)(1).
            (2) The term ``Corporation'' means the District of Columbia 
        Scholarship Corporation established under section 123(a).
            (3) The term ``eligible institution''--
                    (A) in the case of an institution serving a student 
                who receives a tuition scholarship under section 
                124(d)(1), means a public, private, or independent 
                elementary or secondary school; and
                    (B) in the case of an institution serving a student 
                who receives an enhanced achievement scholarship under 
                section 124(d)(2), means an elementary or secondary 
                school or an entity that provides services to a student 
                enrolled in an elementary or secondary school to 
                enhance such student's achievement through instruction 
                described in section 124(d)(2).
            (4) The term ``parent'' includes a legal guardian or other 
        person standing in loco parentis.
            (5) The term ``poverty line'' means the official poverty 
        line, as established by the Director of the Office of 
        Management and Budget and revised annually under section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2)), 
        applicable to a family of the size involved.

SEC. 123. DISTRICT OF COLUMBIA SCHOLARSHIP CORPORATION.

    (a) General Requirements.--
            (1) In general.--There is authorized to be established a 
        private, nonprofit corporation, to be known as the ``District 
        of Columbia Scholarship Corporation'', which is neither an 
        agency nor establishment of the United States Government or the 
        District of Columbia Government.
            (2) Duties.--The Corporation shall have the responsibility 
        and authority to administer, publicize, and evaluate the 
        scholarship program in accordance with this part, and to 
        determine student and school eligibility for participation in 
        such program.
            (3) Consultation.--The Corporation shall exercise its 
        authority--
                    (A) in a manner consistent with maximizing 
                educational opportunities for the maximum number of 
                interested families; and
                    (B) in consultation with the District of Columbia 
                Board of Education or entity exercising administrative 
                jurisdiction over the District of Columbia Public 
                Schools, the Superintendent of the District of Columbia 
                Public Schools, and other school scholarship programs 
                in the District of Columbia.
            (4) Application of provisions.--The Corporation shall be 
        subject to the provisions of this part, and, to the extent 
        consistent with this part, to the District of Columbia 
        Nonprofit Corporation Act (sec. 29-301.01 et seq., D.C. 
        Official Code).
            (5) Residence.--The Corporation shall have its place of 
        business in the District of Columbia and shall be considered, 
        for purposes of venue in civil actions, to be a resident of the 
        District of Columbia.
            (6) Fund.--There is established in the Treasury a fund that 
        shall be known as the District of Columbia Scholarship Fund, to 
        be administered by the Secretary of the Treasury.
            (7) Disbursement.--The Secretary of the Treasury shall make 
        available and disburse to the Corporation, before October 15 of 
        each fiscal year or not later than 15 days after the date of 
        enactment of an Act making appropriations for the District of 
        Columbia for such year, whichever occurs later, such funds as 
        have been appropriated to the District of Columbia Scholarship 
        Fund for the fiscal year in which such disbursement is made.
            (8) Availability.--Funds authorized to be appropriated 
        under this part shall remain available until expended.
            (9) Uses.--Funds authorized to be appropriated under this 
        part shall be used by the Corporation in a prudent and 
        financially responsible manner, solely for scholarships, 
        contracts, and administrative costs.
            (10) Authorization of appropriations.--
                    (A) In general.--There are authorized to be 
                appropriated to the District of Columbia Scholarship 
                Fund--
                            (i) $7,000,000 for fiscal year 2004;
                            (ii) $8,000,000 for fiscal year 2005; and
                            (iii) $10,000,000 for each of fiscal years 
                        2006 through 2009.
                    (B) Limitation.--Not more than 7.5 percent of the 
                amount appropriated to carry out this part for any 
                fiscal year may be used by the Corporation for salaries 
                and administrative costs.
    (b) Organization and Management; Board of Directors.--
            (1) Board of directors; membership.--
                    (A) In general.--The Corporation shall have a Board 
                of Directors (hereinafter in this part referred to as 
                the ``Board''), comprised of seven members, with six 
                members of the Board appointed by the President not 
                later than 30 days after receipt of nominations from 
                the Speaker of the House of Representatives and the 
                President pro tempore of the Senate.
                    (B) House nominations.--The President shall appoint 
                three of the members from a list of nine individuals 
                nominated by the Speaker of the House of 
                Representatives in consultation with the minority 
                leader of the House of Representatives.
                    (C) Senate nominations.--The President shall 
                appoint three members from a list of nine individuals 
                nominated by the President pro tempore of the Senate in 
                consultation with the minority leader of the Senate.
                    (D) Deadline.--The Speaker of the House of 
                Representatives and Majority Leader of the Senate shall 
                submit their nominations to the President not later 
                than 30 days after the date of the enactment of this 
                part.
                    (E) Appointee by mayor.--The Mayor of the District 
                of Columbia shall appoint one member of the Board not 
                later than 60 days after the date of the enactment of 
                this part.
                    (F) Possible interim members.--If the President 
                does not appoint the six members of the Board in the 
30-day period described in subparagraph (A), then the Speaker of the 
House of Representatives and the President pro tempore of the Senate 
shall each appoint two members of the Board, and the minority leader of 
the House of Representatives and the minority leader of the Senate 
shall each appoint one member of the Board, from among the individuals 
nominated under subparagraphs (A) and (B), as the case may be. The 
appointees under the preceding sentence together with the appointee of 
the Mayor of the District of Columbia, shall serve as an interim Board 
with all the powers and other duties of the Board described in this 
part, until the President makes the appointments as described in this 
subsection.
            (2) Powers.--All powers of the Corporation shall vest in 
        and be exercised under the authority of the Board.
            (3) Elections.--Members of the Board annually shall elect 
        one of the members of the Board to be the Chairperson of the 
        Board.
            (4) Residency.--All members appointed to the Board shall be 
        residents of the District of Columbia at the time of 
        appointment and while serving on the Board.
            (5) Nonemployee.--No member of the Board may be an employee 
        of the United States Government or the District of Columbia 
        Government when appointed to or during tenure on the Board, 
        unless the individual is on a leave of absence from such a 
        position while serving on the Board.
            (6) Incorporation.--The members of the initial Board shall 
        serve as incorporators and shall take whatever steps are 
        necessary to establish the Corporation under the District of 
        Columbia Nonprofit Corporation Act (sec. 29-301.01 et seq., 
        D.C. Official Code).
            (7) General term.--The term of office of each member of the 
        Board shall be 5 years, except that any member appointed to 
        fill a vacancy occurring prior to the expiration of the term 
        for which the predecessor was appointed shall be appointed for 
        the remainder of such term.
            (8) Consecutive term.--No member of the Board shall be 
        eligible to serve in excess of two consecutive terms of 5 years 
        each. A partial term shall be considered as one full term. Any 
        vacancy on the Board shall not affect the Board's power, but 
        shall be filled in a manner consistent with this part.
            (9) No benefit.--No part of the income or assets of the 
        Corporation shall inure to the benefit of any Director, 
        officer, or employee of the Corporation, except as salary or 
        reasonable compensation for services.
            (10) Political activity.--The Corporation may not 
        contribute to or otherwise support any political party or 
        candidate for elective public office.
            (11) Not officers or employees.--The members of the Board 
        shall not, by reason of such membership, be considered to be 
        officers or employees of the United States Government or of the 
        District of Columbia Government.
            (12) Stipends.--The members of the Board, while attending 
        meetings of the Board or while engaged in duties related to 
        such meetings or other activities of the Board pursuant to this 
        part, shall be provided a stipend. Such stipend shall be at the 
        rate of $150 per day for which the member of the Board is 
        officially recorded as having worked, except that no member may 
        be paid a total stipend amount in any calendar year in excess 
        of $5,000.
    (c) Officers and Staff.--
            (1) Executive director.--The Corporation shall have an 
        executive director, and such other staff, as may be appointed 
        by the Board for terms and at rates of compensation, not to 
        exceed level EG-16 of the Educational Service of the District 
        of Columbia, to be fixed by the Board.
            (2) Staff.--With the approval of the Board, the executive 
        director may appoint and fix the salary of such additional 
        personnel as the executive director considers appropriate.
            (3) Annual rate.--No staff of the Corporation may be 
        compensated by the Corporation at an annual rate of pay greater 
        than the annual rate of pay of the executive director.
            (4) Service.--All officers and employees of the Corporation 
        shall serve at the pleasure of the Board.
            (5) Qualification.--No political test or qualification may 
        be used in selecting, appointing, promoting, or taking other 
        personnel actions with respect to officers, agents, or 
        employees of the Corporation.
    (d) Powers of the Corporation.--
            (1) Generally.--The Corporation is authorized to obtain 
        grants from, and make contracts with, individuals and with 
        private, State, and Federal agencies, organizations, and 
        institutions.
            (2) Hiring authority.--The Corporation may hire, or accept 
        the voluntary services of, consultants, experts, advisory 
        boards, and panels to aid the Corporation in carrying out this 
        part.
    (e) Financial Management and Records.--
            (1) Audits.--The financial statements of the Corporation 
        shall be--
                    (A) maintained in accordance with generally 
                accepted accounting principles for nonprofit 
                corporations; and
                    (B) audited annually by independent certified 
                public accountants.
            (2) Report.--The report for each such audit shall be 
        included in the annual report to Congress required by section 
        131(c).
    (f) Administrative Responsibilities.--
            (1) Scholarship application schedule and procedures.--Not 
        later than 30 days after the initial Board is appointed and the 
        first executive director of the Corporation is hired under this 
        part, the Corporation shall implement a schedule and procedures 
        for processing applications for, and awarding, student 
        scholarships under this part. The schedule and procedures shall 
include establishing a list of certified eligible institutions located 
in the areas specified in section 124(d)(1)), distributing scholarship 
information to parents and the general public (including through a 
newspaper of general circulation), and establishing deadlines for steps 
in the scholarship application and award process.
            (2) Institutional applications and eligibility.--
                    (A) In general.--An eligible institution that 
                desires to participate in the scholarship program under 
                this part shall file an application with the 
                Corporation for certification for participation in the 
                scholarship program under this part that shall--
                            (i) demonstrate that the eligible 
                        institution has operated with not fewer than 25 
                        students during the 3 years preceding the year 
                        for which the determination is made unless the 
                        eligible institution is applying for 
                        certification as a new eligible institution 
                        under subparagraph (C);
                            (ii) contain an assurance that the eligible 
                        institution will comply with all applicable 
                        requirements of this part;
                            (iii) contain an annual statement of the 
                        eligible institution's budget; and
                            (iv) describe the eligible institution's 
                        proposed program, including personnel 
                        qualifications and fees.
                    (B) Certification.--
                            (i) In general.--Except as provided in 
                        subparagraph (C), not later than 60 days after 
                        receipt of an application in accordance with 
                        subparagraph (A), the Corporation shall certify 
                        an eligible institution to participate in the 
                        scholarship program under this part.
                            (ii) Continuation.--An eligible 
                        institution's certification to participate in 
                        the scholarship program shall continue unless 
                        such eligible institution's certification is 
                        revoked in accordance with subparagraph (D).
                    (C) New eligible institution.--
                            (i) In general.--An eligible institution 
                        that did not operate with at least 25 students 
                        in the 3 years preceding the year for which the 
                        determination is made may apply for a 1-year 
                        provisional certification to participate in the 
                        scholarship program under this part for a 
                        single year by providing to the Corporation not 
                        later than July 1 of the year preceding the 
                        year for which the determination is made--
                                    (I) a list of the eligible 
                                institution's board of directors;
                                    (II) letters of support from not 
                                less than 10 members of the community 
                                served by such eligible institution;
                                    (III) a business plan;
                                    (IV) an intended course of study;
                                    (V) assurances that the eligible 
                                institution will begin operations with 
                                not less than 25 students;
                                    (VI) assurances that the eligible 
                                institution will comply with all 
                                applicable requirements of this part; 
                                and
                                    (VII) a statement that satisfies 
                                the requirements of clauses (ii) and 
                                (iv) of subparagraph (A).
                            (ii) Certification.--Not later than 60 days 
                        after the date of receipt of an application 
                        described in clause (i), the Corporation shall 
                        certify in writing the eligible  institution's 
provisional certification to participate in the scholarship program 
under this part unless the Corporation determines that good cause 
exists to deny certification.
                            (iii) Renewal of provisional 
                        certification.--After receipt of an application 
                        under clause (i) from an eligible institution 
                        that includes a statement of the eligible 
                        institution's budget completed not earlier than 
                        12 months before the date such application is 
                        filed, the Corporation shall renew an eligible 
                        institution's provisional certification for the 
                        second and third years of the school's 
                        participation in the scholarship program under 
                        this part unless the Corporation finds--
                                    (I) good cause to deny the renewal, 
                                including a finding of a pattern of 
                                violation of requirements described in 
                                paragraph (3)(A); or
                                    (II) consistent failure of 25 
                                percent or more of the students 
                                receiving scholarships under this part 
                                and attending such school to make 
                                appropriate progress (as determined by 
                                the Corporation) in academic 
                                achievement.
                            (iv) Denial of certification.--If 
                        provisional certification or renewal of 
                        provisional certification under this subsection 
                        is denied, then the Corporation shall provide a 
                        written explanation to the eligible institution 
                        of the reasons for such denial.
                    (D) Revocation of eligibility.--
                            (i) In general.--The Corporation, after 
                        notice and opportunity for a hearing, may 
                        revoke an eligible institution's certification 
                        to participate in the scholarship program under 
                        this part for a year succeeding the year for 
                        which the determination is made for--
                                    (I) good cause, including a finding 
                                of a pattern of violation of program 
                                requirements described in paragraph 
                                (3)(A); or
                                    (II) consistent failure of 25 
                                percent or more of the students 
                                receiving scholarships under this part 
                                and attending such school to make 
                                appropriate progress (as determined by 
                                the Corporation) in academic 
                                achievement.
                            (ii) Explanation.--If the certification of 
                        an eligible institution is revoked, the 
                        Corporation shall provide a written explanation 
                        of the Corporation's decision to such eligible 
                        institution and require a pro rata refund of 
                        the proceeds of the scholarship funds received 
                        under this part.
                            (iii) Student eligibility not affected.--A 
                        student receiving a scholarship under this part 
                        who attends an institution that has had its 
                        eligibility revoked under this subparagraph may 
                        utilize such scholarship at another eligible 
                        institution.
            (3) Participation requirements for eligible institutions.--
                    (A) Requirements.--Each eligible institution 
                participating in the scholarship program under this 
                part shall--
                            (i) provide to the Corporation not later 
                        than June 30 of each year the most recent 
                        annual statement of the eligible institution's 
                        budget; and
                            (ii) charge a student that receives a 
                        scholarship under this part not more than the 
                        cost of tuition and mandatory fees for, and (as 
                        appropriate) transportation to attend, such 
                        eligible institution as other students who are 
                        residents of the District of Columbia and 
                        enrolled in such eligible institution.
                    (B) Compliance.--The Corporation may require 
                documentation of compliance with the requirements of 
                subparagraph (A), but neither the Corporation nor any 
                governmental entity may impose requirements upon an 
                eligible institution as a condition for participation 
                in the scholarship program under this part, other than 
                requirements established under this part.

SEC. 124. SCHOLARSHIPS AUTHORIZED.

    (a) Eligible Students.--The Corporation may award tuition 
scholarships under subsection (d)(1) and enhanced achievement 
scholarships under subsection (d)(2) to students in kindergarten 
through grade 12--
            (1) who are residents of the District of Columbia; and
            (2) whose family income does not exceed 185 percent of the 
        poverty line.
    (b) Scholarship Priority.--Subject to subsection (c), the 
Corporation shall award scholarships based on the following priorities:
            (1) Previous scholarship recipients.--For the second and 
        subsequent academic years for which scholarships are awarded, 
        the Corporation first shall award scholarships to students 
        eligible under subsection (a) who received a scholarship from 
        the Corporation in the preceding academic year.
            (2) District of columbia public school enrollees.--For the 
        first three academic years for which scholarships are awarded, 
        if funds remain after the application of paragraph (1), the 
        Corporation shall award scholarships to eligible students who 
        do not receive an award under such paragraph and who are--
                    (A) enrolled in a District of Columbia public 
                school; or
                    (B) preparing to enter a District of Columbia 
                public kindergarten.
            (3) Victims of school violence.--For any academic year, if 
        funds remain available after the application of paragraphs (1) 
        and (2), the Corporation shall award scholarships to eligible 
        students who do not receive an award under such paragraphs and  
who have been victims of a documented violent act on school grounds.
            (4) Other eligible students.--For any academic year, if 
        funds remain available after the application of paragraphs (1) 
        through (3), the Corporation shall award scholarships to 
        eligible students who do not receive an award under such 
        paragraphs.
    (c) Lottery Selection.--If, in applying subsection (b), the number 
of students described in a paragraph of such subsection is such that 
the amount available is insufficient to award the appropriate 
scholarship amount to each such student, the Corporation shall select 
by lottery the students who will receive an award.
    (d) Use of Scholarship.--
            (1) Tuition scholarships.--A tuition scholarship may be 
        used for the payment of the cost of the tuition and mandatory 
        fees for, and (as appropriate) transportation to attend, an 
        eligible institution located within the geographic boundaries 
        of--
                    (A) the District of Columbia;
                    (B) Montgomery County, Maryland;
                    (C) Prince George's County, Maryland;
                    (D) Arlington County, Virginia;
                    (E) Alexandria City, Virginia;
                    (F) Falls Church City, Virginia;
                    (G) Fairfax City, Virginia; or
                    (H) Fairfax County, Virginia.
            (2) Enhanced achievement scholarship.--An enhanced 
        achievement scholarship may be used only for the payment of the 
        costs of tuition and mandatory fees for, and (as appropriate) 
        transportation to attend, a program of instruction provided by 
        an eligible institution which enhances student achievement of 
        the core curriculum and is operated outside of regular school 
        hours to supplement the regular school program.
    (e) Not School Aid.--A scholarship under this part shall be 
considered assistance to the student and shall not be considered 
assistance to an eligible institution.

SEC. 125. SCHOLARSHIP AWARDS.

    (a) Awards.--From the funds made available under this part, the 
Corporation shall award a scholarship to a student and make scholarship 
payments in accordance with section 126.
    (b) Notification.--Each eligible institution that receives the 
proceeds of a scholarship payment under subsection (a) shall provide 
the following notifications:
            (1) Enrollment.--Not later than 10 days after the date that 
        a student receiving a scholarship under this part is enrolled, 
        the institution shall notify the Corporation of the name, 
        address, and grade level of such student.
            (2) Withdrawal or expulsion.--Not later than 10 days after 
        the date of the withdrawal or expulsion of any student 
        receiving a scholarship under this part, the institution shall 
        notify the Corporation of the withdrawal or expulsion.
            (3) Refusal of admission.--Not later than 10 days after the 
        date that a student receiving a scholarship under this part is 
        refused admission, the institution shall notify the Corporation 
        of the reasons for such a refusal.
    (c) Tuition Scholarship.--For a student whose family income is 
equal to or below the poverty line, a tuition scholarship may not 
exceed the lesser of--
            (1) the cost of tuition and mandatory fees for, and (as 
        appropriate) transportation to attend, an eligible institution; 
        or
            (2) the per pupil expenditure for elementary and secondary 
        education by the local educational agency the student would 
        otherwise attend.
    (d) Enhanced Achievement Scholarship.--An enhanced achievement 
scholarship may not exceed the lesser of--
            (1) the costs of tuition and mandatory fees for, and (as 
        appropriate) transportation to attend, a program of instruction 
        at an eligible institution; or
            (2) $800 for 2004, with such amount adjusted in proportion 
        to changes in the Consumer Price Index for All Urban Consumers 
        published by the Department of Labor for each of fiscal years 
        2005 through 2009.

SEC. 126. SCHOLARSHIP PAYMENTS.

    (a) Payments.--The Corporation shall make scholarship payments to 
the parent of a student awarded a scholarship under this part.
    (b) Distribution of Scholarship Funds.--Scholarship funds may be 
distributed by check, or another form of disbursement, issued by the 
Corporation and made payable directly to a parent of a student awarded 
a scholarship under this part. The parent may use the scholarship funds 
only for payment of tuition, mandatory fees, and transportation costs 
as described in this part.
    (c) Pro Rata Amounts for Student Withdrawal.--If a student 
receiving a scholarship under this part withdraws or is expelled from 
an eligible institution after the proceeds of a scholarship is paid to 
the eligible institution, then the eligible institution shall refund to 
the Corporation on a pro rata basis the proportion of any such proceeds 
received for the remaining days of the school year. Such refund shall 
occur not later than 30 days after the date of the withdrawal or 
expulsion of the student.

SEC. 127. CIVIL RIGHTS.

    (a) In General.--An eligible institution participating in the 
scholarship program under this part shall not discriminate on the basis 
of race, color, national origin, or sex in carrying out the provisions 
of this part.
    (b) Applicability and Construction With Respect to Discrimination 
on the Basis of Sex.--
            (1) Applicability.--With respect to discrimination on the 
        basis of sex, subsection (a) shall not apply to an eligible 
        institution that is controlled by a religious organization if 
        the application of subsection (a) is inconsistent with the 
        religious tenets of the eligible institution.
            (2) Construction.--With respect to discrimination on the 
        basis of sex, nothing in subsection (a) shall be construed to 
        require any person, or public or private entity to provide or 
        pay, or to prohibit any such person or entity from providing or 
        paying, for any benefit or service, including the use of 
        facilities, related to an abortion. Nothing in the preceding 
        sentence shall be construed to permit a penalty to be imposed 
        on any person or individual because such  person or individual 
is seeking or has received any benefit or service related to a legal 
abortion.
            (3) Single-sex schools, classes, or activities.--With 
        respect to discrimination on the basis of sex, nothing in 
        subsection (a) shall be construed to prevent a parent from 
        choosing, or an eligible institution from offering, a single-
        sex school, class, or activity.
    (c) Revocation.--Notwithstanding section 123(f)(2)(D), if the 
Corporation determines that an eligible institution participating in 
the scholarship program under this part is in violation of subsection 
(a), then the Corporation shall revoke such eligible institution's 
certification to participate in the program.

SEC. 128. CHILDREN WITH DISABILITIES.

    Nothing in this part shall affect the rights of students, or the 
obligations of the District of Columbia public schools, under the 
Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.).

SEC. 129. RULE OF CONSTRUCTION.

    (a) In General.--Nothing in this part shall be construed to prevent 
any eligible institution which is operated by, supervised by, 
controlled by, or connected to, a religious organization from 
employing, admitting, or giving preference to, persons of the same 
religion to the extent determined by such institution to promote the 
religious purpose for which the eligible institution is established or 
maintained.
    (b) Sectarian Purposes.--Nothing in this part shall be construed to 
prohibit the use of funds made available under this part for sectarian 
educational purposes, or to require an eligible institution to remove 
religious art, icons, scripture, or other symbols.

SEC. 130. REPORTING REQUIREMENTS.

    (a) In General.--An eligible institution participating in the 
scholarship program under this part shall report to the Corporation not 
later than July 30 of each year in a manner prescribed by the 
Corporation, the following data:
            (1) Student achievement in the eligible institution's 
        programs.
            (2) Grade advancement for scholarship students.
            (3) Disciplinary actions taken with respect to scholarship 
        students.
            (4) Graduation, college admission test scores, and college 
        admission rates, if applicable for scholarship students.
            (5) Types and amounts of parental involvement required for 
        all families of scholarship students.
            (6) Student attendance for scholarship and nonscholarship 
        students.
            (7) General information on curriculum, programs, 
        facilities, credentials of personnel, and disciplinary rules at 
        the eligible institution.
            (8) Number of scholarship students enrolled.
            (9) Such other information as may be required by the 
        Corporation for program appraisal.
    (b) Confidentiality.--No personal identifiers may be used in such 
report, except that the Corporation may request such personal 
identifiers solely for the purpose of verification.

SEC. 131. PROGRAM APPRAISAL.

    (a) Study.--Not later than 3 years after the date of enactment of 
this part, the Comptroller General shall enter into a contract, with an 
evaluating agency that has demonstrated experience in conducting 
evaluations, for an independent evaluation of the scholarship program 
under this part, including--
            (1) a comparison of test scores between scholarship 
        students and District of Columbia public school students of 
        similar backgrounds, taking into account the students' academic 
        achievement at the time of the award of their scholarships and 
        the students' family income level;
            (2) a comparison of graduation rates between scholarship 
        students and District of Columbia public school students of 
        similar backgrounds, taking into account the students' academic 
        achievement at the time of the award of their scholarships and 
        the students' family income level;
            (3) the satisfaction of parents of scholarship students 
        with the scholarship program; and
            (4) the impact of the scholarship program on the District 
        of Columbia public schools, including changes in the public 
        school enrollment, and any improvement in the academic 
        performance of the public schools.
    (b) Public Review of Data.--All data gathered in the course of the 
study described in subsection (a) shall be made available to the public 
upon request except that no personal identifiers shall be made public.
    (c) Report to Congress.--Not later than September 1 of each year, 
the Corporation shall submit a progress report on the scholarship 
program to the appropriate committees of Congress. Such report shall 
include a review of how scholarship funds were expended, including the 
initial academic achievement levels of students who have participated 
in the scholarship program.
    (d) Authorization.--There are authorized to be appropriated for the 
study described in subsection (a), $250,000, which shall remain 
available until expended.

SEC. 132. STANDING.

    The parent of any student eligible to receive a scholarship under 
this part shall have standing in an action challenging the 
constitutionality of the scholarship program under this part.

SEC. 133. EFFECTIVE DATE.

    This part shall be effective for each of fiscal years 2004 through 
2009.

                        PART C--CHARTER SCHOOLS

SEC. 141. AUTHORIZATION OF APPROPRIATIONS.

    Section 5211(a) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7221j(a)) is amended by striking ``$300,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 5 
succeeding'' and inserting ``$400,000,000 for fiscal year 2004 and such 
sums as may be necessary for each of the 4 succeeding''.

                             TITLE II--IDEA

SEC. 201. SENSE OF THE SENATE REGARDING IDEA.

    It is the sense of the Senate that as the Senate considers the 
reauthorization of the Individuals with Disabilities Education Act (20 
U.S.C. 1400 et seq.), the Senate should explore efforts to--
            (1) simplify and clarify procedural safeguard principles 
        for such Act in order to reduce the adversarial nature of the 
        process, which will promote resolutions of issues in a positive 
        and constructive way in order to ensure better outcomes for 
        children;
            (2) expand high-quality research based professional 
        development and training opportunities for both special and 
        general education teachers who serve children with 
        disabilities;
            (3) expand research to determine the potential causes of 
        and possible remedies for the overidentification or 
        misidentification of children with disabilities;
            (4) reduce the paperwork burden for teachers and schools in 
        order to maximize the time teachers spend in direct instruction 
        with students with disabilities;
            (5) eliminate the double standard that exists in the law 
        for disciplining children with disabilities; and
            (6) in conjunction with such reforms, support efforts to 
        reach the goal of providing 40 percent of the average per pupil 
        expenditure in order to assist States and school districts in 
        covering the costs of educating students with disabilities.

SEC. 202. FULLY FUNDING IDEA.

    Section 611(j) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1411(j)) is amended to read as follows:
    ``(j) Authorization of Appropriations.--For the purpose of carrying 
out this part, other than section 619, there are authorized to be 
appropriated--
            ``(1) $11,049,000,000 for fiscal year 2004;
            ``(2) $13,569,000,000 for fiscal year 2005;
            ``(3) $16,089,000,000 for fiscal year 2006;
            ``(4) $18,609,000,000 for fiscal year 2007;
            ``(5) $21,129,000,000 for fiscal year 2008; and
            ``(6) $23,622,000,000 for fiscal year 2009.''.

                      TITLE III--HIGHER EDUCATION

SEC. 301. SENSE OF THE SENATE REGARDING EXPANDING ACCESS TO COLLEGE.

    It is the sense of the Senate that, as the Senate considers the 
reauthorization of the Higher Education Act of 1965 (20 U.S.C. 1001 et 
seq.) and other higher education legislation, the Senate should explore 
efforts to improve and expand access to higher education and also make 
it more accountable, including consideration of how to--
            (1) address the rising costs of higher education;
            (2) promote student academic preparation for postsecondary 
        education;
            (3) encourage efforts to increase the availability of 
        financial aid information for those who need it most;
            (4) simplify the student aid application process and 
        improve the administration of the student aid programs;
            (5) improve the level of accountability in the Federal 
        student aid programs; and
            (6) promote quality educational opportunities that will 
        equip graduates with the skills they need to succeed in the 
        21st century workforce.

SEC. 302. SENSE OF THE SENATE REGARDING MINORITY-SERVING INSTITUTIONS.

    It is the sense of the Senate that historically Black colleges and 
universities (HBCUs), historically Black graduate institutions (HBGIs), 
and Hispanic-serving institutions (HSIs) are a source of accomplishment 
and great pride for their respective communities as well as the entire 
Nation, and that such institutions offer all students, regardless of 
race, an opportunity to develop their skills and talents by training 
young people who go on to serve domestically and internationally in the 
professions as entrepreneurs, and in the public and private sectors, 
and therefore every effort should be made to increase funding for such 
institutions.

SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

    (a) HBCUs.--Section 399(a)(2)(A) of the Higher Education Act of 
1965 (20 U.S.C. 1068h(a)(2)(A)) is amended by striking ``$135,000,000 
for fiscal year 1999'' and inserting ``$241,000,000 for fiscal year 
2004''.
    (b) HBGIs.--Section 399(a)(2)(B) of the Higher Education Act of 
1965 (20 U.S.C. 1068h(a)(2)(B)) is amended by striking ``$35,000,000 
for fiscal year 1999'' and inserting ``$58,000,000 for fiscal year 
2004''.
    (c) HSIs.--Section 518(a) of the Higher Education Act of 1965 (20 
U.S.C. 1103g(a)) is amended by striking ``$62,500,000 for fiscal year 
1999'' and inserting ``$101,000,000 for fiscal year 2004''.

                     TITLE IV--RECRUITING TEACHERS

    PART A--LOAN FORGIVENESS FOR MATHEMATICS, SCIENCE, AND SPECIAL 
                           EDUCATION TEACHERS

SEC. 411. SHORT TITLE.

    This part may be cited as the ``Mathematics, Science, and Special 
Education Teacher Recruitment Act of 2003''.

SEC. 412. SENSE OF THE SENATE REGARDING LOAN FORGIVENESS.

    It is the sense of the Senate that--
            (1) nothing is more important to a child's success in 
        school than a well prepared teacher who has a strong command of 
        the subject matter the teacher is teaching;
            (2) schools across the Nation are experiencing difficulty 
        in recruiting and retaining qualified mathematics, science, and 
        special education teachers;
            (3) attracting such teachers to the teaching profession and 
        retaining them in the profession is vital to America's economic 
        competitiveness and national security, and critical to ensuring 
        that no child is left behind; and
            (4) therefore, expansion of loan forgiveness to $17,500 for 
        such teachers who agree to teach in a high need area for 5 
        years will help ensure that each child receives a quality 
        education.

SEC. 413. REVISION OF TEACHER LOAN FORGIVENESS PROGRAMS.

    (a) Guaranteed Student Loans.--Part B of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1071 et seq.) is amended by inserting 
after section 428K the following:

``SEC. 428L. EXPANDED LOAN FORGIVENESS FOR HIGHLY QUALIFIED TEACHERS OF 
              MATHEMATICS, SCIENCE, AND SPECIAL EDUCATION.

    ``(a) Purpose.--It is the purpose of this section to--
            ``(1) expand, subject to the availability of 
        appropriations, the eligibility of certain highly qualified 
        teachers to qualify for loan forgiveness beyond that available 
        under section 428J; and
            ``(2) provide additional incentives for highly qualified 
        teachers of mathematics, science, and special education in 
        high-need schools to enter and continue in the teaching 
        profession.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to carry out 
        a program, through the holder of the loan, of assuming the 
        obligation to repay a qualified loan amount for a loan made 
        under section 428 or 428H, in accordance with subsection (c), 
        for any borrower who--
                    ``(A) is a highly qualified, full-time teacher of 
                mathematics, science, or special education at a high-
                need school, and has been so employed for not less than 
                5 consecutive complete school years;
                    ``(B) had mathematics, life or physical sciences, 
                technology, engineering, or special education as an 
                undergraduate academic major or minor, or has a 
                graduate degree in any such field, as certified by the 
                chief administrative officer of the public or nonprofit 
                private school in which the borrower is employed; and
                    ``(C) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Selection of recipients.--The Secretary shall 
        promulgate regulations to ensure fairness and equality for 
        applicants in the selection of borrowers for loan repayment 
        under this section, based on the amount appropriated to carry 
        out this section.
    ``(c) Qualified Loan Amounts.--
            ``(1) In general.--The Secretary is authorized to repay not 
        more than $17,500 in the aggregate of the loan obligation on 1 
        or more loans made under section 428 or 428H that are 
        outstanding after the completion of the fifth complete school 
        year of teaching described in subsection (b)(1)(A).
            ``(2) Treatment of consolidation loans.--A loan amount for 
        a loan made under section 428C may be a qualified loan amount 
        for the purposes of this subsection only to the extent that 
        such loan amount was used to repay a Federal Direct Stafford/
        Ford Loan, a Federal Direct Unsubsidized Stafford/Ford Loan, or 
        a loan made under section 428 or 428H for a borrower who meets 
        the requirements of subsection (b), as determined in accordance 
        with regulations prescribed by the Secretary.
    ``(d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize any refunding of any repayment of a loan.
    ``(f) Additional Eligibility Provisions.--
            ``(1) Continued eligibility.--A highly qualified teacher 
        shall be eligible for loan forgiveness pursuant to subsection 
        (b), if the teacher performs service in a school that--
                    ``(A) meets the definition of a high-need school 
                under subsection (g) in any year during such service; 
                and
                    ``(B) in a subsequent year, fails to meet the 
                definition of a high-need school under subsection (g).
            ``(2) Prevention of double benefits.--
                    ``(A) National service positions.--No borrower may, 
                for the same service, receive a benefit under both this 
                section and subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12601 et 
                seq.).
                    ``(B) Loan forgiveness and cancellation provisions 
                for teachers.--
                            ``(i) Forgiveness.--No borrower may receive 
                        a reduction of loan obligations under both this 
                        section and section 428J.
                            ``(ii) Cancellation.--No borrower may 
                        receive loan forgiveness under this section and 
                        loan cancellation under section 460 or section 
                        460A that exceeds, in the aggregate, $17,500.
    ``(g) Definitions.--In this section:
            ``(1) Highly qualified.--The term `highly qualified' has 
        the meaning given the term in section 9101 of the Elementary 
        and Secondary Education Act of 1965.
            ``(2) High-need school.--The term `high-need school' has 
        the meaning given the term in section 2304(d) of the Elementary 
        and Secondary Education Act of 1965.
            ``(3) Year.--The term `year', where applied to service as a 
        teacher, means an academic year as defined by the Secretary.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 2004 through 2009.''.
    (b) Direct Student Loans.--Part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a) is amended by inserting after 
section 460 the following:

``SEC. 460A. EXPANDED LOAN CANCELLATION FOR HIGHLY QUALIFIED TEACHERS 
              OF MATHEMATICS, SCIENCE, AND SPECIAL EDUCATION.

    ``(a) Purpose.--It is the purpose of this section to--
            ``(1) expand, subject to the availability of 
        appropriations, the eligibility of certain highly qualified 
        teachers to qualify for loan cancellation beyond that available 
        under section 460; and
            ``(2) provide additional incentives for highly qualified 
        teachers of mathematics, science, and special education in 
        high-need schools to enter and continue in the teaching 
        profession.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to cancel 
        the obligation to repay a qualified loan amount in accordance 
        with subsection (c) for Federal Direct Stafford/Ford Loans and 
        Federal Direct Unsubsidized Stafford/Ford Loans made under this 
        part for any borrower who--
                    ``(A) is a highly qualified, full-time teacher of 
                mathematics, science, or special education at a high-
                need school, and has been so employed for not less than 
                5 consecutive complete school years;
                    ``(B) had mathematics, life or physical sciences, 
                technology, engineering, or special education as an 
                undergraduate academic major or minor, or has a 
                graduate degree in any such field, as certified by the 
                chief administrative officer of the public or nonprofit 
                private school in which the borrower is employed; and
                    ``(C) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Selection of recipients.--The Secretary shall 
        promulgate regulations to ensure fairness and equality for 
        applicants in the selection of borrowers for loan cancellation 
        under this section, based on the amount appropriated to carry 
        out this section.
    ``(c) Qualified Loan Amounts.--
            ``(1) In general.--The Secretary is authorized to cancel 
        not more than $17,500 in the aggregate of the loan obligation 
        on 1 or more Federal Direct Stafford/Ford Loans or 1 or more 
        Federal Direct Unsubsidized Stafford/Ford Loans that are 
        outstanding after the completion of the fifth complete school 
        year of teaching described in subsection (b)(1)(A).
            ``(2) Treatment of consolidation loans.--A loan amount for 
        a Federal Direct Consolidation Loan may be a qualified loan 
        amount for the purposes of this subsection only to the extent 
        that such loan amount was used to repay a Federal Direct 
        Stafford/Ford Loan, a Federal Direct Unsubsidized Stafford/Ford 
        Loan, or a loan made under section 428 or 428H for a borrower 
        who meets the requirements of subsection (b), as determined in 
        accordance with regulations prescribed by the Secretary.
    ``(d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize any refunding of any canceled loan.
    ``(f) Additional Eligibility Provisions.--
            ``(1) Continued eligibility.--A highly qualified teacher 
        shall be eligible for loan forgiveness pursuant to subsection 
        (b), if the teacher performs service in a school that--
                    ``(A) meets the definition of a high-need school 
                under subsection (g) in any year during such service; 
                and
                    ``(B) in a subsequent year, fails to meet the 
                definition of a high-need school under subsection (g).
            ``(2) Prevention of double benefits.--
                    ``(A) National service positions.--No borrower may, 
                for the same service, receive a benefit under both this 
                section and subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12601 et 
                seq.).
                    ``(B) Loan forgiveness and cancellation provisions 
                for teachers.--
                            ``(i) Cancellation.--No borrower may 
                        receive a reduction of loan obligations under 
                        both this section and section 460.
                            ``(ii) Forgiveness.--No borrower may 
                        receive loan cancellation under this section 
                        and loan forgiveness under section 428J or 
                        section 428L that exceeds, in the aggregate, 
                        $17,500.
    ``(g) Definitions.--In this section:
            ``(1) Highly qualified.--The term `highly qualified' has 
        the meaning given the term in section 9101 of the Elementary 
        and Secondary Education Act of 1965.
            ``(2) High-need school.--The term `high-need school' has 
        the meaning given the term in section 2304(d) of the Elementary 
        and Secondary Education Act of 1965.
            ``(3) Year.--The term `year', where applied to service as a 
        teacher, means an academic year as defined by the Secretary.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 2004 through 2009.''.

                  PART B--CLASSROOM EXPENSE DEDUCTION

SEC. 421. EXPANSION OF CLASSROOM EXPENSE DEDUCTION FOR TEACHERS.

    (a) Sense of the Senate.--It is the sense of the Senate that many 
teachers are overburdened with the costs of managing a classroom, and 
that expansion of the deduction for classroom expenses for teachers 
from $250 to $400 would help ease the burden on the teacher dedicated 
to helping our Nation's children learn.
    (b) In General.--Section 62(a)(4)(D) of the Internal Revenue Code 
of 1986 (relating to certain expenses of elementary and secondary 
school teachers) is amended--
            (1) by striking ``In the case of taxable years beginning 
        during 2002 and 2003, the'' and inserting ``The'', and
            (2) by striking ``$250'' and inserting ``$400''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

               TITLE V--MAKING EDUCATION MORE AFFORDABLE

SEC. 501. SENSE OF THE SENATE REGARDING MAKING EDUCATION MORE 
              AFFORDABLE.

    It is the sense of the Senate that--
            (1) parents should be able to trust that the tax code will 
        not change so that they may adequately plan how to pay for 
        their child's education; and
            (2) therefore the following provisions in title IV of the 
        Economic Growth and Tax Relief Reconciliation Act of 2001 
        should be made permanent:
                    (A) The increase in the Coverdell Education Savings 
                Account contribution to $2,000 and the modification 
                that permits such money to be used for kindergarten 
                through grade 12 expenses.
                    (B) The modification making qualified tuition 
                savings programs tax-exempt and allowing private 
                institutions to offer prepaid tuition plans.
                    (C) The increases to the income limits for the 
                student loan interest deduction and the elimination of 
                the 60-month rule.
                    (D) The above the line deduction for qualified 
                tuition expenses of $3,000 in 2002 and 2003, and $4,000 
                in 2004 and 2005.
                    (E) The liberalization of tax-exempt financing 
                rules for public school construction.

SEC. 502. AFFORDABLE EDUCATION PROVISIONS MADE PERMANENT.

    Title IX of the Economic Growth and Tax Relief Reconciliation Act 
of 2001 (relating to sunset of provisions of such Act) shall not apply 
to the provisions of title IV of such Act (relating to affordable 
education provisions).

SEC. 503. CREDIT FOR EDUCATION, TUITION, AND TRANSPORTATION EXPENSES OF 
              STUDENTS ASSIGNED TO SCHOOLS IDENTIFIED FOR SCHOOL 
              IMPROVEMENT.

    (a) Short Title.--This section may be cited as the ``Give Back to 
Parents Act of 2003''.
    (b) Sense of the Senate.--It is the Sense of the Senate that a 
refundable tax credit for up to 50 percent of the first $5,000 a parent 
spends to enable a child to attend another public or private school 
would help defray the cost of tuition at and transportation to a better 
school, and would therefore enable parents of children assigned to 
schools identified for school improvement access to better education 
options.
    (c) Amendment.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. EDUCATION EXPENSES OF STUDENTS ASSIGNED TO SCHOOLS 
              IDENTIFIED FOR SCHOOL IMPROVEMENT.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this subtitle for the 
taxable year 50 percent of the amount of the qualified education 
expenses paid by the taxpayer during the taxable year for the education 
of any individual--
            ``(1) with respect to whom the taxpayer is allowed a 
        deduction under section 151(c), and
            ``(2) who would have otherwise been assigned to a public 
        school identified for school improvement under section 1116 of 
        the Elementary and Secondary Education Act of 1965 but who 
        incurred qualified education expenses to enroll in a public or 
        nonpublic school not identified for school improvement under 
        such section for the period to which such expenses relate.
    ``(b) Limitation.--The amount of qualified education expenses which 
may be taken into account under subsection (a) for any taxable year 
with respect to any 1 individual shall not exceed $5,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified education expenses.--
                    ``(A) In general.--The term `qualified education 
                expenses' means amounts paid for--
                            ``(i) tuition and fees required for the 
                        enrollment or attendance of a student at an 
                        eligible educational institution,
                            ``(ii) transportation to and from an 
                        individual's home and an eligible educational 
                        institution, and
                            ``(iii) books, supplies, computer equipment 
                        (including related software and services) and 
                        other equipment required for courses of 
                        instruction at an eligible educational 
                        institution.
                    ``(B) Meals and lodging expenses not included.--
                Such term does not include any amount paid, directly or 
                indirectly, for meals, lodging, or similar personal, 
                living, or family expenses. In the event an amount paid 
                for tuition or fees includes an amount for meals, 
                lodging, or similar expenses which is not separately 
                stated, the portion of such amount which is 
                attributable to meals, lodging, or similar expenses 
                shall be determined under regulations prescribed by the 
                Secretary.
                    ``(C) Special rule for home schooling.--In the case 
                of education furnished in the home (as a substitute for 
                public education) which meets the requirements of State 
                law relating to compulsory school attendance, the term 
                `qualified education expenses' means amounts paid for 
                tutoring, books, supplies, computer equipment 
                (including related software and services), and other 
                equipment directly used in furnishing such education.
            ``(2) Eligible educational institution.--The term `eligible 
        educational institution' means--
                    ``(A) a secondary school,
                    ``(B) an elementary school, or
                    ``(C) any private, parochial, religious, or home 
                school organized for the purpose of providing 
                elementary or secondary education, or both.
            ``(3) Elementary and secondary schools.--The terms 
        `elementary school' and `secondary school' have the respective 
        meanings given such terms by section 9101 of the Elementary and 
        Secondary Education Act of 1965.
    ``(d) Adjustment for Certain Scholarships.--The amounts otherwise 
taken into account under subsection (a) as qualified education expenses 
of any individual during any period shall be reduced (before the 
application of subsection (b)) by the sum of the amounts received with 
respect to such individual for the taxable year as a qualified 
scholarship which under section 117 is not includable in gross income.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the provisions of this section.''.
    (d) Technical Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 36 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the last item and inserting the following new items:

                              ``Sec. 36. Education expenses of students 
                                        assigned to schools identified 
                                        for school improvement.
                              ``Sec. 37. Overpayments of tax.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>