[Congressional Record Volume 143, Number 76 (Thursday, June 5, 1997)]
[Senate]
[Pages S5362-S5367]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COATS (for himself, Mr. Lieberman, Mr. Brownback, Mr. 
        Ashcroft, Mr. Coverdell, and Mr. Gregg):
  S. 847. A bill to provide scholarship assistance for District of 
Columbia elementary and secondary school students; to the Committee on 
Governmental Affairs.


  THE DISTRICT OF COLUMBIA STUDENT OPPORTUNITY SCHOLARSHIP ACT OF 1997

  Mr. COATS. Mr. President, today is a very important day for students 
in the District of Columbia. Today, I join Senator Lieberman, Senator 
Brownback, Senator Ashcroft, and Senator Gregg in introducing the 
District of Columbia Student Opportunity Scholarship Act of 1997, also 
known as the DC SOS Act. The DC SOS Act provides immediate relief to 
thousands of the District's neediest students who are consigned to 
failing, violent public schools. This bill is a direct response to the 
needs of thousands of families in our Capital City who have, for too 
long, been expected to accept under-performing and often violent 
schools for their children. The DC SOS Act provides real educational 
opportunities to almost 4,000 District students.
  Many of you may remember that a very similar initiative was 
introduced by former Representative Gunderson, and included in the 1996 
D.C. appropriations bill. At that time, a majority of the Senate, 56 
Senators in all, were supportive of the idea to provide scholarships to 
poor students in the District of Columbia. Tragically, that program, 
which would have benefited 5,000 of our Nation's most needy students, 
was blocked by the threat of a filibuster.
  During the 1996 D.C. Appropriations debate, many of those who opposed 
providing scholarships for poor District students argued that the 
initiative was opposed by the residents of the District. That argument 
cannot be used this time. A recent bipartisan survey conducted in the 
District of Columbia found that fully 64 percent of Washingtonians 
would send their children to private school if they had the option and 
if money were not an issue; 61 percent of single parents think that 
creating a school choice program for the District is an excellent or 
good use of taxpayer dollars. And those most likely to opt out of the 
public system are residents of the wards 7 and 8, the areas with the 
most troubled public schools. Clearly, the residents of the District 
are ready for a change.
  But these surveys should not surprise us. The D.C. schools have not 
improved since the defeat of the D.C. scholarship program in 1996. 
Rather, the schools got so bad that the D.C. Control Board fired 
Superintendent Franklin Smith, stripped control of the school from the 
D.C. Board of Education, and installed a new Chief Executive and 
Superintendent, retired Army Gen. Julius W. Becton, Jr. Perhaps General 
Becton can turn the D.C. school system around. But I am not willing to 
tell a family who fears for the safety of their child that they should 
wait and given General Becton 5 or 10 years to test his approaches, 
especially because changes have been promised by five new 
superintendents in the last 15 years.
  In February of this year, the Washington Post ran a five-part series 
on the D.C. school system, chronicling its complete breakdown. A school 
system where jobs for bureaucrats are more important than providing 
textbooks. A school system that employs almost nine times more central 
office administrators than the national average, despite a decreasing 
student population, and a shortage of qualified teachers and 
principals.
  Many of the district's 152 schools are in a state of terrible 
disrepair. Students and teachers contend with leaking roofs, bitterly 
cold classrooms, and thousands of fire code violations. Yet, in 1996, 
the D.C. Board of Education allocated $1.4 million for its own use, an 
amount far greater than that spent by neighboring counties, and 
$200,000 more than is spent by the Chicago school system, which is five 
times larger.
  Unfortunately, these problems of infrastructure are minor concerns 
compared to violence and basic educational failure. Violence in the 
schools is at an alltime high--both student on student, and student on 
teacher--even as the violent crime rate in the country as a whole 
drops. And stories of academic mediocrity have become so common that 
they have lost their power to shock. Why is there no public outcry that 
the D.C. school district, which spends the most per pupil of any 
district in the country, has the Nation's lowest reported scores on the 
NAEP exams? Where is the outrage that only 35 percent of students are 
reading at grade level?
  Students are routinely promoted regardless of whether they have 
progressed in their studies and graduate from the school system with 
little to show for their 12 years of schooling. Eighty-five percent of 
D.C. public school graduates who enter the University of the District 
of Columbia need 2 years of remedial education before beginning their 
course work toward degrees. And more than half of all graduates who 
took the U.S. Armed Forces Qualification Test in 1994 failed. This last 
statistic is particularly troubling, because it blocks a traditional 
escape route from disadvantage.
  We are asking poor, inner-city children and their parents to tolerate 
circumstances that most middle-class and affluent Americans would not 
tolerate for one moment. Why should these families have to suffer 
violence and the lack of educational opportunities for another week, 
let alone the years that General Becton himself admits it will be 
before reform has any effect?
  But those of us concerned about this issue face an obstacle. No one 
seems outraged enough about the betrayal of these children by 
indifferent adults to make major changes. Not suburban whites, who are 
often satisfied with their schools. Not politicians, some of whom are 
either blindly obedient to teachers unions or may simply have different 
political constituencies than these kids and their parents.
  The DC SOS Act is an attempt to end this conspiracy of complacency. 
In introducing this bill today, I join with a coalition of members in 
both House of Congress who seek to provide scholarships for low-income 
students in the District of Columbia to enable them to attend the 
public or private school of

[[Page S5363]]

their choice or to receive tutoring assistance. This bill is the single 
most practical, immediate, effective way to help actual children, with 
flesh and blood and futures, rather than continuing to ignore this very 
serious situation.
  I find it inconceivable that anyone, in good conscience, could 
condemn the District's low income children to attend schools that not 
only fail to educate them, but cannot even assure their personal 
safety. Some of the public schools in this city have become wastelands 
of violence and despair. We cannot begin to imagine the fears of a 
mother who is forced, required, compelled to send her child through 
barbed wire and metal detectors into a combat zone, masquerading as an 
educational institution.
  The introduction, and ultimate passage of this bill, will signal a 
fundamental shift in priorities. It would indicate to parents in the 
District of Columbia and all across America that we care about their 
children more than we care about maintaining the status quo; that we 
understand the depth of the problem in our Nation's public schools and 
that we are finally willing to address it.
  Opponents of this bill should carefully consider what they would do 
if they had a child assigned to a school where physical attacks, 
robberies, and drug sales were rampant. Low-income parents, who face 
this circumstance every day, deserve a voice and a choice.
  I urge my colleagues to join me in supporting the D.C. Student 
Opportunity Scholarship Act of 1997. With this bill we signal our 
intention to provide a safe and effective school for every child in the 
District of Columbia.
  Mr. President, I ask unanimous consent that this act, the District of 
Columbia Student Opportunity Scholarship Act of 1997, be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 847

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

     SECTION 1. SHORT TITLE; FINDINGS; PRECEDENTS.

       (a) Short Title.--This Act may be cited as the ``District 
     of Columbia Student Opportunity Scholarship Act of 1997''.
       (b) Findings.--Congress makes the following findings:
       (1) Public education in the District of Columbia is in a 
     crisis, as evidenced by the following:
       (A) The District of Columbia schools have the lowest 
     average of any school system in the Nation on the National 
     Assessment of Education Progress.
       (B) 72 percent of fourth graders in the District of 
     Columbia tested below basic proficiency on the National 
     Assessment of Education Progress in 1994.
       (C) Since 1991, there has been a net decline in the reading 
     skills of District of Columbia students as measured in scores 
     on the standardized Comprehensive Test of Basic Skills.
       (D) At least 40 percent of District of Columbia students 
     drop out of or leave the school system before graduation.
       (E) The National Education Goals Panel reported in 1996 
     that both students and teachers in District of Columbia 
     schools are subjected to levels of violence that are twice 
     the national average.
       (F) Nearly two-thirds of District of Columbia teachers 
     reported that violent student behavior is a serious 
     impediment to teaching.
       (G) Many of the District of Columbia's 152 schools are in a 
     state of terrible disrepair, including leaking roofs, 
     bitterly cold classrooms, and numerous fire code violations.
       (2) Significant improvements in the education of 
     educationally deprived children in the District of Columbia 
     can be accomplished by--
       (A) increasing educational opportunities for the children 
     by expanding the range of educational choices that best meet 
     the needs of the children;
       (B) fostering diversity and competition among school 
     programs for the children;
       (C) providing the families of the children more of the 
     educational choices already available to affluent families; 
     and
       (D) enhancing the overall quality of education in the 
     District of Columbia by increasing parental involvement in 
     the direction of the education of the children.
       (3) The 350 private schools in the District of Columbia and 
     the surrounding area offer a more safe and stable learning 
     environment than many of the public schools.
       (4) Costs are often much lower in private schools than 
     corresponding costs in public schools.
       (5) Not all children are alike and therefore there is no 
     one school or program that fits the needs of all children.
       (6) The formation of sound values and moral character is 
     crucial to helping young people escape from lives of poverty, 
     family break-up, drug abuse, crime, and school failure.
       (7) In addition to offering knowledge and skills, education 
     should contribute positively to the formation of the internal 
     norms and values which are vital to a child's success in life 
     and to the well-being of society.
       (8) Schools should help to provide young people with a 
     sound moral foundation which is consistent with the values of 
     their parents. To find such a school, parents need a full 
     range of choice to determine where their children can best be 
     educated.
       (c) Precedents.--The United States Supreme Court has 
     determined that programs giving parents choice and increased 
     input in their children's education, including the choice of 
     a religious education, do not violate the Constitution. The 
     Supreme Court has held 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 and 
     therefore has not violated the establishment clause of the 
     first amendment to the Constitution. Supreme Court precedents 
     include--
       (1) Wisconsin v. Yoder, 406 U.S. 205 (1972); Pierce v. 
     Society of Sisters, 268 U.S. 510 (1925); and Meyer v. 
     Nebraska, 262 U.S. 390 (1923) which held that parents have 
     the primary role in and are the primary decision makers in 
     all areas regarding the education and upbringing of their 
     children;
       (2) Mueller v. Allen, 463 U.S. 388 (1983) which declared a 
     Minnesota tax deduction program that provided State income 
     tax benefits for educational expenditures by parents, 
     including tuition in religiously affiliated schools, does not 
     violate the Constitution;
       (3) Witters v. Department of Services for the Blind, 474 
     U.S. 481 (1986) in which the Supreme Court ruled unanimously 
     that public funds for the vocational training of the blind 
     could be used at a Bible college for ministry training; and
       (4) Zobrest v. Catalina Foothills School District, 509 U.S. 
     1 (1993) which held that a deaf child could receive an 
     interpreter, paid for by the public, in a private religiously 
     affiliated school under the Individual with Disabilities 
     Education Act (20 U.S.C. 1400 et seq.). The case held that 
     providing an interpreter in a religiously affiliated school 
     did not violate the establishment clause of the first 
     amendment of the Constitution.

     SEC. 2. DEFINITIONS.

       As used in this Act--
       (1) the term ``Board'' means the Board of Directors of the 
     Corporation established under section 3(b)(1);
       (2) the term ``Corporation'' means the District of Columbia 
     Scholarship Corporation established under section 3(a);
       (3) the term ``eligible institution''--
       (A) in the case of an eligible institution serving a 
     student who receives a tuition scholarship under section 
     4(d)(1), means a public, private, or independent elementary 
     or secondary school; and
       (B) in the case of an eligible institution serving a 
     student who receives an enhanced achievement scholarship 
     under section 4(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 activities described in section 
     4(d)(2); and
       (4) the term ``poverty line'' means the income official 
     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.

     SEC. 3. 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 Act, 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 Act, and, to the extent 
     consistent with this Act, to the District of Columbia 
     Nonprofit Corporation Act (D.C. Code, sec. 29-501 et seq.).
       (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.

[[Page S5364]]

       (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 Act shall remain available until expended.
       (9) Uses.--Funds authorized to be appropriated under this 
     Act shall be used by the Corporation in a prudent and 
     financially responsible manner, solely for scholarships, 
     contracts, and administrative costs.
       (10) Authorization.--
       (A) In general.--There are authorized to be appropriated to 
     the District of Columbia Scholarship Fund--
       (i) $7,000,000 for fiscal year 1998;
       (ii) $8,000,000 for fiscal year 1999; and
       (iii) $10,000,000 for each of fiscal years 2000 through 
     2002.
       (B) Limitation.--Not more than $500,000 of the amount 
     appropriated to carry out this Act for any fiscal year may be 
     used by the Corporation for any purpose other than assistance 
     to students.
       (b) Organization and Management; Board of Directors.--
       (1) Board of directors; membership.--
       (A) In general.--The Corporation shall have a Board of 
     Directors (referred to in this Act as the ``Board''), 
     comprised of 7 members with 6 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 majority leader of the Senate.
       (B) House nominations.--The President shall appoint 3 of 
     the members from a list of 9 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 3 
     members from a list of 9 individuals nominated by the 
     majority leader 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 Act.
       (E) Appointee of mayor.--The Mayor shall appoint 1 member 
     of the Board not later than 60 days after the date of the 
     enactment of this Act.
       (F) Possible interim members.--If the President does not 
     appoint the 6 members of the Board in the 30-day period 
     described in subparagraph (A), then the Speaker of the House 
     of Representatives and the Majority Leader of the Senate 
     shall each appoint 2 members of the Board, and the Minority 
     Leader of the House of Representatives and the Minority 
     Leader of the Senate shall each appoint 1 of the Board, from 
     among the individuals nominated pursuant to subparagraphs (A) 
     and (B), as the case may be. The appointees under the 
     preceding sentence together with the appointee of the Mayor, 
     shall serve as an interim Board with all the powers and other 
     duties of the Board described in this Act, 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 1 
     of the members of the Board to be 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 (D.C. Code, sec. 29-501 et 
     seq.).
       (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 2 consecutive terms of 5 years 
     each. A partial term shall be considered as 1 full term. Any 
     vacancy on the Board shall not affect the Board's power, but 
     shall be filled in a manner consistent with this Act.
       (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) No 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 Act, 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 Act.
       (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 
     13(c).

     SEC. 4. SCHOLARSHIPS AUTHORIZED.

       (a) Eligible Students.--The Corporation is authorized to 
     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.--
       (1) First.--The Corporation shall first award scholarships 
     to students described in subsection (a) who--
       (A) are enrolled in a District of Columbia public school or 
     preparing to enter a District of Columbia kindergarten, 
     except that this subparagraph shall apply only for academic 
     years 1997, 1998, and 1999; or
       (B) have received a scholarship from the Corporation in the 
     year preceding the year for which the scholarship is awarded.
       (2) Second.--If funds remain for a fiscal year for awarding 
     scholarships after awarding scholarships under paragraph (1), 
     the Corporation shall award scholarships to students 
     described in subsection (a) who are not described in 
     paragraph (1).
       (c) Special Rule.--The Corporation shall attempt to ensure 
     an equitable distribution of scholarship funds to students at 
     diverse academic achievement levels.
       (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 at a public, private, or independent school located 
     within the geographic boundaries of the District of Columbia 
     or the cost of the tuition and mandatory fees at a public, 
     private, or independent school located within Montgomery 
     County, Maryland; Prince Georges County, Maryland; Arlington 
     County, Virginia; Alexandria City, Virginia; Falls Church 
     City, Virginia; or 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, or 
     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 Act shall be 
     considered assistance to the student and shall not be 
     considered assistance to an eligible institution.

     SEC. 5. SCHOLARSHIP PAYMENTS AND AMOUNTS.

       (a) Awards.--From the funds made available under this Act, 
     the Corporation shall award a scholarship to a student and 
     make payments in accordance with section 10 on behalf of such 
     student to a participating eligible institution chosen by the 
     parent of the student.
       (b) Notification.--Each eligible institution that desires 
     to receive payment under

[[Page S5365]]

     subsection (a) shall notify the Corporation not later than 10 
     days after--
       (1) the date that a student receiving a scholarship under 
     this Act is enrolled, of the name, address, and grade level 
     of such student;
       (2) the date of the withdrawal or expulsion of any student 
     receiving a scholarship under this Act, of the withdrawal or 
     expulsion; and
       (3) the date that a student receiving a scholarship under 
     this Act is refused admission, of the reasons for such a 
     refusal.
       (c) Tuition Scholarship.--
       (1) Equal to or below poverty line.--For a student whose 
     family income is equal to or below the poverty line, a 
     tuition scholarship may not exceed the lesser of--
       (A) the cost of tuition and mandatory fees for, and 
     transportation to attend, an eligible institution; or
       (B) $3,200 for fiscal year 1998, 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 1999 through 2002.
       (2) Above poverty line.--For a student whose family income 
     is greater than the poverty line, but not more than 185 
     percent of the poverty line, a tuition scholarship may not 
     exceed the lesser of--
       (A) 75 percent of the cost of tuition and mandatory fees 
     for, and transportation to attend, an eligible institution; 
     or
       (B) $2,400 for fiscal year 1998, 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 1999 through 2002.
       (d) Enhanced Achievement Scholarship.--An enhanced 
     achievement scholarship may not exceed the lesser of--
       (1) the costs of tuition and mandatory fees for, or 
     transportation to attend, a program of instruction at an 
     eligible institution; or
       (2) $500 for 1998, 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 1999 through 2002.

     SEC. 6. CERTIFICATION OF ELIGIBLE INSTITUTIONS.

       (a) Application.--An eligible institution that desires to 
     receive a payment on behalf of a student who receives a 
     scholarship under this Act shall file an application with the 
     Corporation for certification for participation in the 
     scholarship program under this Act. Each such application 
     shall--
       (1) demonstrate that the eligible institution has operated 
     with not less 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 subsection (c);
       (2) contain an assurance that the eligible institution will 
     comply with all applicable requirements of this Act;
       (3) contain an annual statement of the eligible 
     institution's budget; and
       (4) describe the eligible institution's proposed program, 
     including personnel qualifications and fees.
       (b) Certification.--
       (1) In general.--Except as provided in paragraph (3), not 
     later than 60 days after receipt of an application in 
     accordance with subsection (a), the Corporation shall certify 
     an eligible institution to participate in the scholarship 
     program under this Act.
       (2) 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 subsection (d).
       (c) New Eligible Institution.--
       (1) 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 Act 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--
       (A) a list of the eligible institution's board of 
     directors;
       (B) letters of support from not less than 10 members of the 
     community served by such eligible institution;
       (C) a business plan;
       (D) an intended course of study;
       (E) assurances that the eligible institution will begin 
     operations with not less than 25 students;
       (F) assurances that the eligible institution will comply 
     with all applicable requirements of this Act; and
       (G) a statement that satisfies the requirements of 
     paragraphs (2) and (4) of subsection (a).
       (2) Certification.--Not later than 60 days after the date 
     of receipt of an application described in paragraph (1), the 
     Corporation shall certify in writing the eligible 
     institution's provisional certification to participate in the 
     scholarship program under this Act unless the Corporation 
     determines that good cause exists to deny certification.
       (3) Renewal of provisional certification.--After receipt of 
     an application under paragraph (1) 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 Act 
     unless the Corporation finds--
       (A) good cause to deny the renewal, including a finding of 
     a pattern of violation of requirements described in section 
     7(a); or
       (B) consistent failure of 25 percent or more of the 
     students receiving scholarships under this Act and attending 
     such school to make appropriate progress (as determined by 
     the Corporation) in academic achievement.
       (4) 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.--
       (1) In general.--The Corporation, after notice and hearing, 
     may revoke an eligible institution's certification to 
     participate in the scholarship program under this Act for a 
     year succeeding the year for which the determination is made 
     for--
       (A) good cause, including a finding of a pattern of 
     violation of program requirements described in section 7(a); 
     or
       (B) consistent failure of 25 percent or more of the 
     students receiving scholarships under this Act and attending 
     such school to make appropriate progress (as determined by 
     the Corporation) in academic achievement.
       (2) Explanation.--If the certification of an eligible 
     institution is revoked, the Corporation shall provide a 
     written explanation of its decision to such eligible 
     institution and require a pro rata refund of the payments 
     received under this Act.

     SEC. 7. PARTICIPATION REQUIREMENTS FOR ELIGIBLE INSTITUTIONS.

       (a) Requirements.--Each eligible institution participating 
     in the scholarship program under this Act shall--
       (1) provide to the Corporation not later than June 30 of 
     each year the most recent annual statement of the eligible 
     institution's budget; and
       (2) charge a student that receives a scholarship under this 
     Act not more than the cost of tuition and mandatory fees for, 
     and 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 subsection (a), but 
     neither the Corporation nor any governmental entity may 
     impose additional requirements upon an eligible institution 
     as a condition of participation in the scholarship program 
     under this Act.

     SEC. 8. CIVIL RIGHTS.

       (a) In General.--An eligible institution participating in 
     the scholarship program under this Act shall comply with 
     title IV of the Civil Rights Act of 1964 and not discriminate 
     on the basis of race, color, or national origin.
       (b) Revocation.--Notwithstanding section 7(b), if the 
     Secretary of Education determines that an eligible 
     institution participating in the scholarship program under 
     this Act is in violation of any of the laws listed in 
     subsection (a), then the Corporation shall revoke such 
     eligible institution's certification to participate in the 
     program.

     SEC. 9. CHILDREN WITH DISABILITIES.

       Nothing in this Act 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. 10. SCHOLARSHIP PAYMENTS.

       (a) In General.--
       (1) Proportional payment.--The Corporation shall make 
     scholarship payments to participating eligible institutions 
     for an academic year in 2 installments. The Corporation shall 
     make the first payment not later than October 15 of the 
     academic year in an amount equal to one-half the total amount 
     of the scholarship assistance awarded to students enrolled at 
     such institution for the academic year. The Corporation shall 
     make the second payment not later than January 15 of the 
     academic year in an amount equal to one-half of such total 
     amount.
       (2) Pro rata amounts for student withdrawal.--
       (A) Before payment.--If a student receiving a scholarship 
     withdraws or is expelled from an eligible institution before 
     a scholarship payment is made, the eligible institution shall 
     receive a pro rata payment based on the amount of the 
     scholarship and the number of days the student was enrolled 
     in the eligible institution.
       (B) After payment.--If a student receiving a scholarship 
     withdraws or is expelled after a scholarship payment is made, 
     the eligible institution shall refund to the Corporation on a 
     pro rata basis the proportion of any scholarship payment 
     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.
       (b) Fund Transfers.--The Corporation shall make scholarship 
     payments to participating eligible institutions by electronic 
     funds transfer. If such an arrangement is not available, then 
     the eligible institution shall submit an alternative payment 
     proposal to the Corporation for approval.

      SEC. 11. APPLICATION SCHEDULE AND PROCEDURES.

       The Corporation shall implement a schedule and procedures 
     for processing applications for awarding student scholarships 
     under this Act that includes a list of certified eligible 
     institutions, distribution of information to parents and the 
     general public

[[Page S5366]]

     (including through a newspaper of general circulation), and 
     deadlines for steps in the scholarship application and award 
     process.

      SEC. 12. REPORTING REQUIREMENTS.

       (a) In General.--An eligible institution participating in 
     the scholarship program under this Act shall report 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. 13. PROGRAM APPRAISAL.

       (a) Study.--Not later than 4 years after the date of 
     enactment of this Act, 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 
     Act, 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. 14. JUDICIAL REVIEW.

       (a) In General.--The United States District Court for the 
     District of Columbia shall have jurisdiction in any action 
     challenging the scholarship program under this Act and shall 
     provide expedited review.
       (b) Appeal to Supreme Court.--Notwithstanding any other 
     provision of law, any order of the United States District 
     Court for the District of Columbia which is issued pursuant 
     to an action brought under subsection (a) shall be reviewable 
     by appeal directly to the Supreme Court of the United States.

  Mr. LIEBERMAN. Mr. President, I rise today to join my colleagues 
Senators Coats and Brownback in introducing the District of Columbia 
Student Opportunity Scholarship Act of 1997, also known as the DCSOS 
Act.
  This legislation is quite similar to the provision that passed the 
House last year as part of the D.C. appropriations bill but failed to 
make it through conference. It would create a modest tuition 
scholarship fund that would enable 2,000 low-income students in the 
District to attend the public, private, or parochial school of their 
choice. It would also provide direct aid to an additional 2,000 public 
school students who want to improve their academic skills through 
after-school tutoring.
  But the circumstances surrounding this proposal have changed 
dramatically since it was considered last year, and I think it's 
important to make our colleagues aware of what's happened over the 
course of the last several months as they consider the bill we're 
introducing today.
  Most immediately, the deeply troubled D.C. school system has now hit 
rock-bottom. Last fall, the District Control Board officially declared 
the schools in crisis, stripped the elected school board of its 
authority, and authorized an emergency board of trustees to take over 
the city's public schools.
  In taking these drastic steps, the Control Board issued a report 
documenting the utter dysfunction of this school system--test scores 
ranking among the worst in the Nation, students and teachers subjected 
to violence at twice the national average, gross mismanagement of 
budget and personnel, buildings literally falling apart, and a tragic 
misplacement of priorities that puts job preservation ahead of the job 
of educating the city's children.
  But perhaps the most damning indictment of the D.C. schools came in a 
single sentence included in the report: the longer students stay in the 
District's public school system, the Control Board concluded, the less 
likely they are to succeed educationally. I would urge my colleagues to 
think about the import of that statement. Instead of helping these 
children learn more with each passing year, the D.C. schools in many 
cases have actually become hazardous to the academic health of its 
students.
  This conclusion should not be all that surprising when you take a 
closer look at the environment in which these kids are trying to learn. 
For instance, in April we saw a shocking breakdown of discipline at the 
Winston Education Center. Several fourth-graders slipped unnoticed into 
a sideroom right outside an ongoing class and engaged in oral sex, with 
two of the children's parents claiming their children were sexually 
assaulted. When the principal learned of the incident, his first 
reaction was to judge the sexual activity consensual. And earlier this 
month, Washington Post columnist Colbert King reported that a fifth-
grade class at the Harrison Elementary School had gone without a 
teacher for the past 4 months. This outrageous situation may well have 
continued had King not exposed it and put pressure on the 
administration to correct it.
  To force children to attend these schools, where the breakdown is so 
complete a class can go four months without a teacher, is simply 
unconscionable. But that is exactly what is happening in the District 
of Columbia, where thousands of students are trapped in decrepit, 
dangerous, and disenfranchising schools simply because they cannot 
afford any alternative.
  That is why we believe there is an urgent need to pass the DCSOS Act. 
That acronym is not an accident, for this program would provide at 
least 2,000 of the most disadvantaged families in the District with an 
educational lifeline, a chance to seek out a school that they believe 
will offer their child a brighter future. It would give these families 
the same option that thousands of other families have already exercised 
by pulling their children from the D.C. public schools or moving out of 
town altogether.
  Some defenders of the status quo have tried for some time to get us 
to believe that the residents of this city don't want that kind of 
choice. But a poll that was released this week should shatter that 
misguided myth once and for all. This survey found that nearly two-
thirds of public school parents would send their kids to private 
schools if money weren't an issue. The poll also shows that there is a 
strong base of support for the scholarship program we're proposing 
right out of the gate, before we've done anything to educate the public 
about it. And most important, it shows that the families we're trying 
to help would welcome this assistance, with 62 percent of low-income 
parents saying that the kind of choice we're offering would improve the 
quality of education for District children.

  Some of the opponents of this legislation will continue to argue that 
this program, like other attempts to expand opportunities for poor 
families, will harm or actually ruin the public schools. To suggest 
that this modest program could make a school system already in crisis 
any worse defies common sense. In truth, this is a case of the only 
thing we have to fear is fear itself--that is, the fear of moving 
beyond the status quo. Knowing that the D.C. schools have hit rock 
bottom, we shouldn't be closing off any options,

[[Page S5367]]

which is exactly what influential columnist William Raspberry wrote 
last week when he endorsed giving choice a chance in the District.
  We need to get past the red herring argument that we must choose 
between choice and the public schools. Simply put, supporting this 
scholarship program is not the same as abandoning the public school 
system. This is not an either-or equation. And to help prove that to 
the citizens of the District, we have gone out of the way in this 
legislation to make sure that the funding for these scholarships does 
not come at the expense of the city's public schools. This is new money 
and that point should not be overlooked.
  Mr. President, the truth is that we fervently hope that the Board of 
Trustees and CEO Gen. Julius Becton can rescue this system and make the 
fundamental reforms necessary to give these students the education they 
deserve, and we will do what we can to support their efforts. Senator 
Brownback and I, as chairman and ranking member of the Senate's D.C. 
Oversight Subcommittee, made that very pledge to General Becton at a 
hearing we held in April.
  But this mission is at a minimum going to take several years, which 
begs the question, what happens to those many students who have no 
choice but to attend schools that most parents who could afford it have 
long since abandoned?
  We believe that we have a moral obligation to offer those children a 
way out. That is why many of us view this question not just as a matter 
of education, but a question of fairness. This is all about our values, 
specifically the value we place on giving every child--no matter their 
income, where they live or how they live--the opportunity to fulfill 
their God-given promise.
  No one is claiming that this scholarship program is a magic bullet. 
But we strongly believe it will give at least 2,000 disadvantaged 
students a shot at a better life. We also believe that by providing 
some competition to the public schools, this program will accelerate 
the pace of reform within the D.C. school system. Across the country, 
the growing numbers of charter schools and private scholarship programs 
are forcing public school systems to confront their failures and 
building pressure on them to take radical actions to improve the 
quality of their educational programs. This is starting to happen 
already in the District, and we are optimistic that this legislation 
will intensify that movement here.
  If nothing else, this legislation will create a program that will 
help us test what impact choice has on improving the educational 
opportunities of poor families in urban areas, and thereby help us make 
informed decisions in the future about whether to expand this kind of 
initiative to other cities. There have been some promising signs coming 
out of the choice programs in Milwaukee and Cleveland, but the reality 
is we don't know with much certainty whether expanding choice will 
produce noticeable results. This legislation could establish a national 
experiment, and provide us with some real answers to the critical 
questions we've been wrestling with. It's for that very reason we call 
for a thorough evaluation of the D.C. scholarship program in our 
legislation.
  The bottom line, Mr. President, is that it is time to give choice a 
chance in the District. We cannot in conscience continue to ignore the 
plight of these children any longer. They deserve an opportunity to 
break out of the nightmarish cycle of poverty, dependency, and violence 
and to live the American dream. This bipartisan legislation will begin 
to restore hope to some of these families, and I would strongly urge my 
colleagues to support it.
  Mr. BROWNBACK. Mr. President, one of my highest priorities as the 
chairman of the Senate Subcommittee on Oversight of Government 
Management, Restructuring, and the District of Columbia, is to make 
sure the children in the Nation's capital are receiving the quality 
education they deserve. The District's public schools, unfortunately, 
have failed too many students in providing the education they deserve. 
The District of Columbia Student Opportunity Scholarship Act of 1997 
would change this by giving low-income students the chance to get the 
education they need.
  Our subcommittee held a hearing a few weeks ago to explore options to 
improve public education in the District. Mr. President, I know there 
are schools which are working and where students are thriving in their 
learning environment. I had the privilege to visit Stuart-Hobson Middle 
School. I was impressed by the success of the program at Stuart-Hobson 
and how the students took pride in their education. This school, 
however, is one of a few exceptions in the District Public School 
System.
  The facts about the District public schools speak for themselves: 
only 22 percent of fourth grade students are at or above basic reading 
achievement levels; students on average consistently score below the 
national average of the Comprehensive Test of Basic Skills; students 
consistently score below the national Scholastic Aptitude Test [SAT]. 
We cannot continue to trap these students in an educational system that 
is failing them.
  Gen. Julius Becton, chief executive officer and Superintendent of the 
District of Columbia Public Schools, and the District of Columbia 
Emergency Transitional School Board of Trustees have said that they 
will make significant improvements by the year 2000, and I recognize 
and respect the work that lies ahead of them. But, Mr. President, the 
year 2000 is 3 school years away. In 3 school years, a child progresses 
through grades one through three in which they learn to read, write, 
add, subtract, etc. In 3 school years, a high school student gains the 
skills and preparation they need for college or for a job. These 3 
school years are too valuable to trap these students in the public 
school system that has not delivered.
  Mr. President, I am pleased to join my colleagues Senator Coats and 
Senator Lieberman in introducing this legislation that focuses on the 
individual student in the District of Columbia Public Schools. By 
providing up to $3,200 in individual scholarships to low-income 
families who will choose the school for their children, this bill would 
give these students the chance to make sure the next 3 school years do 
not go to waste. Improving the chances for these children to get the 
education they need is one of the most fundamental elements to restore 
the Nation's capital into the shining city the United States deserves.
                                 ______