Educational Opportunities Act of 1999

Summary: (Sec. 105) Includes such parental choice programs among State and local uses of title VI funds.
Requires such parental choice programs to be located in an empowerment zone or enterprise community.
(Sec. 106) Directs the Comptroller General to make contracts for annual evaluation of each parental choice program.
Provides that title VI funds to establish a parental choice program shall be considered assistance to the student and shall not be considered as assistance to any school that chooses to participate in such program.
Prohibits the Secretary from exercising any direction, supervision, or control over curricula, program of instruction, administration, or personnel of any school that chooses to participate in a parental choice program.
Title II: Education Tax Credit
 - Children's Education Tax Credit Act - Amends the Internal Revenue Code to establish a tax credit (of up to $1,000) for the qualified educational expenses (tuition, attendance fees, books, supplies, equipment, but excluding meals and lodging) paid by a taxpayer for the education at an eligible zone educational institution of each individual with respect to whom the taxpayer is allowed a deduction as a dependent.
(Sec. 202) Provides for: (1) the inclusion of certain home schooling expenses; and (2) adjustments for certain scholarships.
Defines "eligible zone educational institution" as a secondary school, an elementary school, or any private, parochial, religious, or home school that: (1) provides elementary or secondary education; and (2) is located in an empowerment zone or enterprise community.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Educational Opportunities Act of 
1999''.

                       TITLE I--HELP SCHOLARSHIPS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Helping Empower Low-Income Parents 
(HELP) Scholarships Amendments of 1999''.

SEC. 102. FINDINGS.

    Congress finds the following:
            (1) Congress strongly supports the efforts to expand 
        educational opportunities for low-income families.
            (2) The HELP Scholarships and the education tax credit 
        proposed under this Act are designed to provide additional 
        learning opportunities and tools for individuals living in 
        economically-disadvantaged communities in a manner consistent 
        with the education flexibility initiatives already adopted by 
        Congress.

SEC. 103. DEFINITIONS.

    Section 6003 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7303) is amended--
            (1) in the section heading, by striking ``definition'' and 
        inserting ``definitions'';
            (2) by striking ``(1)'', ``(2)'', and ``(3)'';
            (3) in the matter proceeding subparagraph (A), by striking 
        ``title the term'' and inserting the following: ``title--
            ``(1) the term'';
            (4) by striking the period at the end; and
            (5) by adding at the end the following:
            ``(2) the term `poverty line' means the poverty line (as 
        defined by the Office of Management and Budget, and revised 
        annually in accordance with section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a 
        family of the size involved; and
            ``(3) the term `voluntary public and private parental 
        choice program' means a program that meets the requirements of 
        section 6301(b)(10), is authorized by State law, and includes 1 
        or more private schools to allow low-income parents to choose 
        the appropriate school for their children.''.

SEC. 104. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    Subsection (a) of section 6102 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7312(a)) is amended to read as 
follows:
    ``(a) Distribution Rule.--
            ``(1) State funds.--
                    ``(A) In general.--Of the amount made available to 
                a State educational agency each fiscal year to carry 
                out this title, the agency may reserve for State 
                programs--
                            ``(i) not more than 10 percent; or
                            ``(ii) in the case of a State that has in 
                        effect a law that establishes a voluntary 
                        public and private parental choice program, not 
                        more than 25 percent.
                    ``(B) Limitation on use of certain reserved 
                amounts.--If a State educational agency reserves under 
                subparagraph (A) more than 10 percent of amounts made 
                available to the agency for a fiscal year, the agency 
                shall use amounts in excess of 10 percent of amounts so 
                made available only for voluntary public and private 
                parental choice programs.
            ``(2) Local funds.--A State educational agency shall 
        distribute amounts made available to the agency under this 
        title that are not reserved under paragraph (1) to local 
        educational agencies within such State that are located in an 
        area designated as an empowerment zone or an enterprise 
        community under section 1391 of the Internal Revenue Code of 
        1986.

SEC. 105. USES OF FUNDS.

    (a) State Uses of Funds.--Section 6201(a)(1) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7331(a)(1)) is amended--
            (1) in subparagraph (B), by striking ``and'' after the 
        semicolon; and
            (2) by inserting after subparagraph (C) the following:
                    ``(D) establishing voluntary public and private 
                parental choice programs in accordance with section 
                6301(b)(10); and''.
    (b) Local Uses of Funds.--Section 6301(b) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7351) is amended--
            (1) in paragraph (8), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (9), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (9) the following:
            ``(10) voluntary public and private parental choice 
        programs that--
                    ``(A) are located in an area designated as an 
                empowerment zone or an enterprise community under 
                section 1391 of the Internal Revenue Code of 1986;
                    ``(B) ensure that participation in such a voluntary 
                public and private parental choice program is limited 
                to families whose family income does not exceed 185 
                percent of the poverty line;
                    ``(C) ensure that--
                            ``(i) the maximum amount of a voluntary 
                        public and private parental choice scholarship 
                        does not exceed the per pupil expenditure of 
                        the local educational agency in which an 
                        applicant for a voluntary public and private 
                        parental choice scholarship resides; and
                            ``(ii) the minimum amount of a voluntary 
                        public and private parental choice scholarship 
                        is not less than 60 percent of the per pupil 
                        expenditure of the local educational agency in 
                        which an applicant for a voluntary public and 
                        private parental choice scholarship resides or 
                        the cost of tuition at a private school, 
                        whichever is less;
                    ``(D) ensure that for a private school, which may 
                include a religiously affiliated school, choosing to 
                participate in a voluntary public and private parental 
                choice program--
                            ``(i) such a school is permitted to impose 
                        the same academic requirements for all 
                        students, including students selected for a 
                        scholarship as provided under this paragraph;
                            ``(ii) receipt of funds under this title is 
                        not conditioned with requirements or 
                        regulations that preclude the use of such funds 
                        for sectarian educational purposes or require 
                        removal of religious art, icons, scripture, or 
                        other symbols; and
                            ``(iii) such a school is in compliance with 
                        all State requirements applicable to the 
                        operation of a private school that are in 
                        effect in the year preceding the date of the 
                        enactment of the Helping Empower Low-income 
                        Parents (HELP) Scholarships Amendments of 1997;
                    ``(E) may allow State, local, and private funds to 
                be used for voluntary public and private parental 
                choice programs; and
                    ``(F) ensure priority for students who were 
                enrolled in a public school in the school year 
                preceding the school year in which a voluntary public 
                and private parental choice school begins operation.''.

SEC. 106. EVALUATION.

    Part D of title VI of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7371 et seq.) is amended--
            (1) by adding at the end of section 6402 the following new 
        subsection:
    ``(j) Application.--This section shall not apply to funds that a 
State or local educational agency uses to establish a voluntary public 
and private parental choice program in accordance with section 
6301(b)(10).''; and
            (2) by adding at the end of such part the following new 
        sections:

``SEC. 6404. EVALUATION.

    ``(a) Annual Evaluation.--
            ``(1) Contract.--The Comptroller General of the United 
        States shall enter into a contract, with an evaluating agency 
        that has demonstrated experience in conducting evaluations, for 
        the conduct of an ongoing rigorous evaluation of the programs 
        established under section 6301(b)(10).
            ``(2) Annual evaluation requirement.--The contract 
        described in paragraph (1) shall require the evaluating agency 
        entering into such contract to evaluate annually each program 
        established under section 6301(b)(10) in accordance with the 
        evaluation criteria described in subsection (b) and each such 
        program that has applied for an education flexibility waiver 
        under section 6304.
            ``(3) Transmission.--The contract described in paragraph 
        (1) shall require the evaluating agency entering into such 
        contract to transmit to the Comptroller General of the United 
        States the findings of each annual evaluation under paragraph 
        (1).
    ``(b) Evaluation Criteria.--The Comptroller General of the United 
States, in consultation with the Secretary, shall establish minimum 
criteria for evaluating each program established under section 
6301(b)(10). Such criteria shall provide for--
            ``(1) a description of the implementation of each program 
        established under section 6301(b)(10) and the program's effects 
        on all participants, schools, and communities in the program 
        area, with particular attention given to the effect of parent 
        participation in the life of the school and the level of 
        parental satisfaction with the program; and
            ``(2) a comparison of the educational achievement of all 
        students in the program area, including a comparison between--
                    ``(A) students receiving a voluntary public and 
                private parental choice scholarships under section 
                6301(b)(10); and
                    ``(B) students not receiving a voluntary public and 
                private parental choice scholarships under such 
                section.
    ``(c) Evaluation Funds.--Pursuant to the authority provided under 
section 14701, the Secretary shall reserve not more than 0.50 percent 
of the amount of funds made available under section 6002 to carry out 
this section. To determine the amount necessary for evaluation 
purposes, the Secretary shall consider the prospective scale and scope 
of the evaluation, including the number of local educational agencies 
conducting voluntary public and private choice programs.

``SEC. 6405. APPLICABILITY.

    ``(a) Not School Aid.--Subject to subsection (b), funds used under 
this title to establish a voluntary public and private parental choice 
program shall be considered assistance to the student and shall not be 
considered as assistance to any school that chooses to participate in 
such program.
    ``(b) No Federal Control.--The Secretary is not permitted to 
exercise any direction, supervision, or control over curricula, program 
of instruction, administration, or personnel of any school that chooses 
to participate in a voluntary public and private choice program 
established under 6309(b)(10).''.

                     TITLE II--EDUCATION TAX CREDIT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Children's Education Tax Credit 
Act''.

SEC. 202. CREDIT FOR EDUCATION EXPENSES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. EDUCATION EXPENSES.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this subtitle for the 
taxable year the amount of the qualified education expenses paid by the 
taxpayer during the taxable year for the education of any individual 
with respect to whom the taxpayer is allowed a deduction under section 
151(c).
    ``(b) Limitation.--The amount allowed as a credit under subsection 
(a) for any taxable year with respect to the qualified education 
expenses of any 1 individual shall not exceed $1,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified education expenses.--
                    ``(A) In general.--The term `qualified education 
                expenses' means amounts paid for--
                            ``(i) tuition and fees required for the 
                        enrollment or attendance of a student at an 
                        eligible zone educational institution, and
                            ``(ii) fees, tutoring, books, supplies, 
                        computer equipment (including related software 
                        and services) and other equipment required for 
                        courses of instruction at an eligible zone 
                        educational institution.
                    ``(B) Meals and lodging expenses not included.--
                Such term does not include any amount paid, directly or 
                indirectly, for meals, lodging, or similar personal, 
                living, or family expenses. In the event an amount paid 
                for tuition or fees includes an amount for meals, 
                lodging, or similar expenses which is not separately 
                stated, the portion of such amount which is 
                attributable to meals, lodging, or similar expenses 
                shall be determined under regulations prescribed by the 
                Secretary.
                    ``(C) Special rule for home schooling.--In the case 
                of education furnished in the home (as a substitute for 
                public education) which meets the requirements of State 
                law relating to compulsory school attendance, the term 
                `qualified education expenses' means amounts paid for 
                tutoring, books, supplies, computer equipment 
                (including related software and services), and other 
                equipment used in furnishing such education.
            ``(2) Eligible zone educational institution.--
                    ``(A) In general.--The term `eligible zone 
                educational institution' means any school described in 
                subparagraph (B) which is located in an area designated 
                as an empowerment zone or an enterprise community under 
                section 1391.
                    ``(B) Schools described.--A school described in 
                this subparagraph is any of the following:
                            ``(i) A secondary school.
                            ``(ii) An elementary school.
                            ``(iii) Any private, parochial, religious, 
                        or home school organized for the purpose of 
                        providing elementary or secondary education, or 
                        both.
            ``(3) Elementary and secondary schools.--The terms 
        `elementary school' and `secondary school' have the respective 
        meanings given such terms by section 14101 of the Elementary 
        and Secondary Education Act of 1965.
    ``(d) Adjustment for certain scholarships.--The amounts otherwise 
taken into account under subsection (a) as qualified education expenses 
of any individual during any period shall be reduced (before the 
application of subsection (b)) by the sum of the amounts received with 
respect to such individual for the taxable year as a qualified 
scholarship which under section 117 is not includable in gross income.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the provisions of this section.''
    (b) Technical Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by striking ``or'' after ``1978,'' and 
        by inserting before the period ``, or enacted by the Children's 
        Education Tax Credit Act''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the last item and inserting the following new items:

                              ``Sec. 35. Education expenses.
                              ``Sec. 36. Overpayments of tax.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.