[Congressional Record Volume 143, Number 157 (Sunday, November 9, 1997)]
[Senate]
[Pages S12272-S12277]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         DC SCHOOL VOUCHER BILL

  Ms. MOSELEY-BRAUN. Mr. President, I strongly appose S. 1502, a bill 
to take funds away from public school children in order to subsidize 
private schools.
  Supporters of this legislation claim that the $7 million they propose 
to spend on private schools does not divert funds from public school 
children. The truth, however, is that in the zero-sum budget, any funds 
spent on vouchers must be drawn from other education funds. That means 
less resources for public school children.
  Seven million dollars could make a real difference in the DC public 
schools. We could fully fund after-school programs at every DC school.

[[Page S12273]]

 We could buy 368 new boilers for the DC schools. We could rewire the 
65 schools that don't have electrical wiring to accommodate computers 
and multi-media equipment. We could upgrade the plumbing in the 102 
schools with substandard facilities. With just $1 million, we could buy 
66,000 new hard-cover books for DC's school libraries. There are real 
improvements we could make to the DC public school system with $7 
million. Instead, this bill proposes to siphon those funds away from 
the public school children.
  Some of my colleagues suggest that, were it not for management 
problems, the DC schools would not be in the condition they are now in. 
How a diversion of $7 million from the public schools to private 
schools will solve that problem is beyond me. I have a better solution: 
good management. Paul Vallas has turned around the Chicago schools. It 
would not surprise me if some day the Chicago Public Schools were 
competing on the same level as the public schools that comprise the 
First in the World Consortium in north suburban Chicago. Students in 
those schools compete with students at the finest schools in the world. 
The DC schools have new management, and I have every confidence that 
General Becton will be able to do for the DC schools what Paul Vallas 
is doing for the Chicago schools.
  Some of my colleagues suggest that school vouchers will help improve 
the public schools by increasing competition--by creating, in effect, a 
marketplace for education. There is a problem with that proposal. By 
definition, markets have winners and losers, and our country cannot 
afford any losers in a game of educational roulette.
  Supporters of school vouchers state that this is not like a game of 
roulette, that research proves that voucher programs have positive 
effects on student achievement. The facts, however, do not speak so 
clearly to this issue. The data is mixed. Some studies show 
improvement. Some studies show declining achievement. Some studies show 
no difference at all between the students in public schools and those 
placed in private schools. We do know that programs in other countries 
have not succeeded. In France, Britain, the Netherlands, and Chile, 
voucher programs actually widened the achievement gap, instead of 
narrowing it.
  That is the real problem. Vouchers do not fix public schools. 
Vouchers do not solve problems. Vouchers raise false hopes in parents 
who desire better schools for their children. Vouchers are not answers 
to the real problems that we must address in our public schools.
  Mr. President, for the last three years, proponents of this bill in 
the Senate have failed to pass this bad idea. Today, however, in order 
to expedite the business of the Senate, I, and my colleagues who oppose 
this bill, are willing to the let the Senate pass this measure, because 
President Clinton has wisely pledged to veto it. Our willingness to let 
this legislation pass the Senate does not represent any weakening of 
our belief that it is fundamentally flawed, that it represents an 
abandonment of public education, and a pessimistic capitulation to a 
winnable challenge--the improvement of our public schools so they may 
serve all our children into the 21st century.
  We have agreed to let this legislation clear the Senate, in these 
last hours of the first session of the 105th Congress, as part of a 
much larger arrangement to consider a number of important issues, 
including: measures to fund the activities of the State Department, the 
Commerce Department, and the Justice Department; measures to fund the 
District of Columbia and our foreign aid operations; a stop-gap measure 
to fund our highway and mass transit programs; and legislation granting 
the President the so-called ``fast track'' authority to negotiate trade 
agreements. It is in this context, and with the advance knowledge that 
the President will veto this DC voucher bill, that we have agreed to 
let the Senate proceed with this bill.
  Mr. President, I hope that next year we will focus on real solutions 
to the problems facing our public schools. According to the U.S. 
General Accounting Office, 14 million children attend schools that are 
literally crumbling down around them, and we have let our public 
schools fall $112 billion into physical disrepair. Our children cannot 
learn the skills they need to keep us competitive in this kind of 
environment. I know that we can do better for our children. We can fix 
our schools, and I look forward to working with my colleagues next year 
on legislation to form a partnership with state and local governments 
to rebuild and modernize our crumbling schools. I look forward to 
working with my colleagues next year to address the real needs of our 
nation's 52 million public school children.
  Mr. HOLLINGS. Mr. President, today we are passing important 
legislation which I strongly oppose by voice vote. The normal Senate 
procedure would be to vote on such an important bill, and I do not like 
to see Senators avoid a recorded vote on a bill with such dire 
implications for public education. However, the President has committed 
to veto the full bill, and I am confident from repeated past votes that 
if we did not have this commitment, the Senate would block the bill. 
Also, without this commitment, I would be glad not only to force a 
vote, but also to discuss the bill at length.
  In fact, there is a healthy sign that even supporters of the ill-
advised idea of starting a taxpayer-funded private school voucher 
program are re-thinking their support. Five days ago, the House 
defeated a private school voucher plan. Thirty-five House Republicans 
voted against creation of a voucher program on the basis that the 
legislation did not include basic civil rights protections that also 
are absent in the bill before us.
  The United States Catholic Conference opposed that bill. I quote here 
from their letter:

       An additional reason why the USCC is unable to support H.R. 
     2746 is the ``Not School Aid'' provision in the new section 
     6405(a). . . . Section 6405(a) can readily be construed to 
     negate the application of longstanding civil rights statutes, 
     in particular, Title VI of the Civil Rights Act of 1964, 
     Title X of the Education Amendments of 1972 and Section 504 
     of the Rehabilitation Act of 1973, that would normally apply 
     to a scholarship program.

  In other words, by saying that the federal aid going to private 
schools under a voucher program is ``not school aid'' the bill 
proponents excuse them from full compliance with federal protections 
that currently apply to public schools.
  Mr. President, that is not just my interpretation or that of the 
Catholic Conference. That is the reading of proponents of the bill.
  Specifically, Mr. Clint Bolick, who has a group named ``Institute for 
Justice,'' has been agitating to start taxpayer funding for private 
school tuitions. Here is what Mr. Bolick said about the Catholic 
Conference and civil rights in a memo that leaked out last month:

       Dick Komer and I met with representatives of the Catholic 
     Conference, who urged that the bill contain the full panoply 
     of federal civil rights regulations, including Title IX 
     (gender) and disability provisions. We argued strongly 
     against those regulations. We are pleased to report that the 
     final bill contains only a general anti-discrimination 
     requirement and expressly provides that schools are not 
     ``recipients of federal funds.''

  So Mr. Bolick ``argued strongly'' against civil rights for girls and 
disabled children, but he is pleased to report that schools receiving 
vouchers would not be ``recipients of federal funds.''
  This is absurd. The federal government today spends about $12 billion 
on elementary and secondary education. That is about $250 per child in 
a public school. But the proponents of this bill want from the outset 
to give private schools $3,200 per child in federal funds. If we do 
that, just three voucher children would provide a private school with 
more federal assistance than we provide to a whole public school 
classroom. If that is ``Not School Aid,'' I don't know what is. There 
are a lot of public school classrooms that would like to have $3,200 
per child in federal assistance, and they would not be crowing about 
how basic civil rights protections were rolled back.
  I say this to criticize this proposed legislation, not the private 
schools. I believe that we have a duty as public servants to fund the 
public schools, and we have a duty to the private schools to leave them 
alone. I support private schools. About nine out of ten are religious, 
and I particularly support their freedom to stay that way without 
federal intervention. Make no mistake. If we go down this road of 
putting $3,200 per child of federal taxpayers' money

[[Page S12274]]

into private school classrooms, federal regulation will follow and that 
will be a tragedy.
  This is not conjecture, the Bush Administration studied it. In a 
report titled ``Choice of Schools in Six Nations,'' here is what they 
found:

       For those who believe strongly in religious schooling and 
     fear that government influence will come with public funding, 
     reason exists for their concern. Catholic or Protestant 
     schools in each of the nations studied have increasingly been 
     assimilated to the assumptions and guiding values of public 
     schooling. This process does not even seem to be the result 
     of deliberate efforts . . . but rather of the difficulty for 
     a private school playing by public rules, to maintain its 
     distance from the common assumptions and habits of the 
     predominant system.

  World Bank economist Estelle James did a similar survey and found 
that ``. . . heavy controls invariably accompany subsidies, 
particularly over teacher salaries and qualifications, price, and other 
entrance criteria.'' She looked particularly closely at Australia, and 
found ``. . . increasing regulation and centralization of decisions and 
the loss of private school autonomy . . . ''
  I raise all of these points to appeal to my colleagues on the other 
side of the aisle. I do not talk to hear myself talk, but to urge 
serious consideration. We have House colleagues reconsidering. We have 
the Catholic Conference urging civil rights protections. We have Bush 
Administration and World Bank studies indicating heavy regulation. We 
have a proposal that clearly disadvantages public schools on the matter 
of federal funding. Who will really be happy if we pass this?
  Mr. President, we must finally remember our duty to public education. 
I go back to Horace Mann, the great champion of public schools. He said 
that

       The idea of an educational system that was at once both 
     universal, free and available to all the people, rich and 
     poor alike, was revolutionary. This is the great thing about 
     America. No other nation ever had such an institution. . . . 
     The free public school system . . . has been in large measure 
     the secret of America's success.

  The proposal before us erodes public education. It disadvantages 
public schools in federal funding and under federal regulation. 
Instead, it offers more funds to private schools which should exist as 
an independent alternative, but which are not ``universal, free'' or 
``available to all the people.'' I urge my colleagues who have 
supported this private voucher idea to reconsider over the holidays, 
and I thank the President in advance for his veto.
  The PRESIDING OFFICER. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed for a third reading, was read 
the third time, and passed, as follows:

                                S. 1502

       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(c)(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(c)(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 4(c)(2);
       (4) the term ``parent'' includes a legal guardian or other 
     person standing in loco parentis; and
       (5) 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 title, and to 
     determine student and school eligibility for participation in 
     such program.

[[Page S12275]]

       (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.
       (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 7.5 percent of the amount 
     appropriated to carry out this Act 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 (referred to in this title 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 member 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 title, 
     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 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 (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 title.
       (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 title.
       (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 
     11(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 Act, the Corporation shall implement a schedule 
     and procedures for processing applications for, and awarding, 
     student scholarships under this Act. The schedule and 
     procedures shall include establishing a list of certified 
     eligible institutions, 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 Act shall 
     file an application with the Corporation for certification 
     for participation in the scholarship program under this Act 
     that shall--
       (i) 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 subparagraph (C);
       (ii) contain an assurance that the eligible institution 
     will comply with all applicable requirements of this Act;
       (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 Act.

[[Page S12276]]

       (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 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--

       (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 Act; 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 Act 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 Act 
     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 Act 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 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--

       (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 Act 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 Act.
       (3) Participation requirements for eligible institutions.--
       (A) Requirements.--Each eligible institution participating 
     in the scholarship program under this Act 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 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 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 Act, other than requirements established under this Act.

     SEC. 4. SCHOLARSHIPS AUTHORIZED.

       (a) Eligible Students.--The Corporation is authorized to 
     award tuition scholarships under subsection (c)(1) and 
     enhanced achievement scholarships under subsection (c)(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 first shall 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 public 
     kindergarten, except that this subparagraph shall apply only 
     for academic years 1997-1998, 1998-1999, and 1999-2000; or
       (B) have received a scholarship from the Corporation for 
     the academic year preceding the academic 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 who are 
     described in subsection (a), not described in paragraph (1), 
     and otherwise eligible for a scholarship under this Act.
       (3) Lottery selection.--The Corporation shall award 
     scholarships to students under this subsection using a 
     lottery selection process whenever the amount made available 
     to carry out this Act for a fiscal year is insufficient to 
     award a scholarship to each student who is eligible to 
     receive a scholarship under this Act for the fiscal year.
       (c) 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 transportation to attend, an eligible 
     institution located within the geographic boundaries of the 
     District of Columbia; Montgomery County, Maryland; Prince 
     Georges County, Maryland; Arlington County, Virginia; 
     Alexandria City, Virginia; Falls Church City, Virginia; 
     Fairfax 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, and 
     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 AWARDS.

       (a) Awards.--From the funds made available under this Act, 
     the Corporation shall award a scholarship to a student and 
     make scholarship payments in accordance with section 6.
       (b) Notification.--Each eligible institution that receives 
     the proceeds of a scholarship payment under 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, and 
     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. SCHOLARSHIP PAYMENTS.

       (a) Payments.--The Corporation shall make scholarship 
     payments to the parent of a student awarded a scholarship 
     under this Act.
       (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 Act. The 
     parent may use the scholarship funds only for payment of 
     tuition, mandatory fees, and transportation costs as 
     described in this Act.
       (c) Pro Rata Amounts for Student Withdrawal.--If a student 
     receiving a scholarship under this Act 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

[[Page S12277]]

     year. Such refund shall occur not later than 30 days after 
     the date of the withdrawal or expulsion of the student.

     SEC. 7. CIVIL RIGHTS.

       (a) In General.--An eligible institution participating in 
     the scholarship program under this Act shall not discriminate 
     on the basis of race, color, national origin, or sex in 
     carrying out the provisions of this Act.
       (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 3(f)(2)(D), if the 
     Corporation determines that an eligible institution 
     participating in the scholarship program under this Act is in 
     violation of subsection (a), then the Corporation shall 
     revoke such eligible institution's certification to 
     participate in the program.

     SEC. 8. 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. 9. RULE OF CONSTRUCTION.

       (a) In General.--Nothing in this Act 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 Act shall be 
     construed to prohibit the use of funds made available under 
     this Act for sectarian educational purposes, or to require an 
     eligible institution to remove religious art, icons, 
     scripture, or other symbols.

      SEC. 10. REPORTING REQUIREMENTS.

       (a) In General.--An eligible institution participating in 
     the scholarship program under this Act 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. 11. 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. 12. JUDICIAL REVIEW.

       (a) Jurisdiction.--
       (1) In General.--The United States District Court for the 
     District of Columbia shall have jurisdiction in any action 
     challenging the constitutionality of the scholarship program 
     under this Act and shall provide expedited review.
       (2) Standing.--The parent of any student eligible to 
     receive a scholarship under this Act shall have standing in 
     an action challenging the constitutionality of the 
     scholarship program under this Act.
       (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.

      SEC. 13. EFFECTIVE DATE.

       This Act shall be effective for each of the fiscal years 
     1998 through 2002.

     SEC. 14. APPROPRIATION OF INITIAL FEDERAL CONTRIBUTION TO 
                   FUND.

       There are hereby appropriated, out of any money in the 
     Treasury not otherwise appropriated, $7,000,000 for the 
     District of Columbia Scholarship Fund.

  Mr. STEVENS. Mr. President, is it proper at this time to move to 
reconsider the action taken by the Senate under this time agreement?
  The PRESIDING OFFICER. Yes.
  Mr. STEVENS. I move to reconsider the vote.
  Mr. GREGG. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. FORD. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. SESSIONS. Mr. President, I ask unanimous consent the call of the 
quorum be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. SESSIONS. I know there may be some agenda items that are 
necessary for other Members of the Senate to complete tonight. If so, I 
am happy to yield at an appropriate time.

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