SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Helping Empower Low-income Parents 
(HELP) Scholarships Amendments of 1998''.

SEC. 2. DEFINITIONS.

    Section 6003 of the Elementary and Secondary Education Act of 1965 
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)(9), 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. 3. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    Section 6102(a) of the Elementary and Secondary Education Act of 
1965 is amended to read as follows:
    ``(a) Distribution Rule.--
            ``(1) In general.--Except as provided in paragraph (2), 
        from the sums made available each year to carry out this title, 
        the State educational agency shall distribute not less than 90 
        percent to local educational agencies within such State 
        according to the relative enrollments in public and private, 
        nonprofit schools within the school districts of such agencies, 
        adjusted, in accordance with criteria approved by the 
        Secretary, to provide higher per pupil allocations to local 
        educational agencies which have the greatest numbers or 
        percentages of children whose education imposes a higher than 
        average cost per child, such as--
            ``(A) children living in areas with high concentrations of 
        low-income families;
            ``(B) children from low-income families; and
            ``(C) children living in sparsely populated areas.
            ``(2) Exception.--A State that has enacted or will enact a 
        law that establishes a voluntary public and private parental 
        choice program and that complies with the provisions of section 
        6301(b)(9) may reserve an additional 15 percent from the sums 
        made available each year to carry out this title if the 
        additional amount reserved is used exclusively for voluntary 
        public and private parental choice programs.''.

SEC. 4. USES OF FUNDS.

    (a) State Uses of Funds.--Section 6201(a)(1) of the Elementary and 
Secondary Education Act of 1965 is amended--
            (1) in subparagraph (C), by striking ``and'' after the 
        semicolon;
            (2) by inserting after subparagraph (C) the following:
                    ``(D) establishing voluntary public and private 
                parental choice programs in accordance with section 
                6301(b)(9); and''.
    (b) Local Uses of Funds.--Section 6301(b) of the Elementary and 
Secondary Education Act of 1965 is amended--
            (1) in paragraph (7), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (8), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (8) the following:
            ``(9) voluntary public and private parental choice programs 
        that--
                    ``(A) are located in an area that has the greatest 
                numbers or percentages of children--
                            ``(i) living in areas with a high 
                        concentration of low-income families;
                            ``(ii) from low-income families; or
                            ``(iii) living in sparsely populated areas;
                    ``(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;
                            ``(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. 5. EDUCATION FLEXIBILITY.

    Part C of title VI of the Elementary and Secondary Education Act of 
1965 is amended by adding at the end the following:

``SEC. 6304. EDUCATION FLEXIBILITY.

    ``(a) In General.--A local educational agency that establishes a 
voluntary public and private parental choice program in accordance with 
section 6301(b)(9) is eligible to apply for an education flexibility 
waiver of certain Federal statutory or regulatory requirements if such 
agency complies with the requirements of subsection (b).
    ``(b) Application.--The requirements referred to in subsection (a) 
are as follows:
            ``(1) In general.--Submission of an application, approved 
        by the State educational agency, to the Secretary that--
                    ``(A) identifies the State statutory and regulatory 
                requirements sought to be waived;
                    ``(B) identifies the Federal statutory and 
                regulatory requirements sought to be waived;
                    ``(C) includes a statement of justification for 
                waiving such requirements;
                    ``(D) describes the goals and performance criteria 
                that will be used to determine the effectiveness of 
                waiving such requirements;
                    ``(E) certifies that the information in the 
                application has been submitted to the units of local 
                governments in which such local educational agency is 
                located, the State legislature, and the Governor 
                encouraging such entities to comment for a period of 
                not less than 60 days; and
                    ``(F) includes any comments received pursuant to 
                subparagraph (E);
            ``(2) State waivers.--A statement from the State 
        educational agency that describes the action the agency has 
        undertaken or will undertake, not later than 90 days after 
        notification from the Secretary that the waiver request has 
        been granted, to remove State statutory or regulatory barriers 
        for such local educational agency.
    ``(c) Approval and Notice.--
            ``(1) Approval.--Except as provided in subsection (d), the 
        Secretary shall approve the request of a local educational 
        agency to waive certain Federal statutory or regulatory 
        requirements if--
                    ``(A) such agency complies with this section; and
                    ``(B) the State in which such agency is located has 
                granted one or more of the waivers sought by the local 
                educational agency or agrees to grant, not later than 
                90 days after notification by the Secretary that the 
                waiver request has been granted, one or more waivers 
                that the State and local educational agency find 
                mutually acceptable.
            ``(2) Notice.--The Secretary shall notify each local 
        educational agency for which a waiver request is submitted 
        whether the request complies with the requirements of this 
        section not later than 60 days after receiving the request. If 
        the Secretary does not notify the local educational agency, as 
        required under this paragraph, the application shall be 
        considered, for purposes of this section, to have been 
        determined to comply with the requirements of this section and 
        the local educational agency shall be considered to have been 
        notified of compliance upon the expiration of such 60-day 
        period.
    ``(d) Prohibition Against Certain Waivers.--The Secretary shall not 
waive any of the following provisions:
            ``(1) Civil rights.--Civil rights protections and 
        discrimination prohibitions, including the safety and 
        procedural provisions under title VI of the Civil Rights Act, 
        title IX of the Education Amendments of 1972, section 504 of 
        the Rehabilitation Act of 1973, or the Age Discrimination Act 
        of 1975.
            ``(2) Services for disabled.--Services provided under the 
        Individuals with Disabilities Education Act.
            ``(3) Fiscal accountability measures.--Fiscal 
        accountability measures, including--
                    ``(A) maintenance of effort or comparability of 
                services requirements under any program; and
                    ``(B) requirements that Federal funds supplement, 
                not supplant non-Federal funds.
            ``(4) General requirements.--Requirements to provide for--
                    ``(A) the equitable participation of private school 
                students and teachers; and
                    ``(B) parental involvement in program activities 
                and services.

SEC. 6. EVALUATION.

    Part D of title VI of the Elementary and Secondary Education Act of 
1965 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)(9).''; 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)(9).
            ``(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)(9) 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)(9). Such criteria shall provide for--
            ``(1) a description of the implementation of each program 
        established under section 6301(b)(9) 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)(9); 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)(9).''.
Helping Empower Low-Income Parents (HELP) Scholarships Amendments of 1998 - Amends title VI (Innovative Education Program Strategies) of the Elementary and Secondary Education Act of 1965 (ESEA) to allow any State that has enacted or will enact a law establishing a voluntary public and private school parental choice scholarship program in compliance with specified ESEA requirements to reserve an additional 15 percent from its annual title IV allotment for use exclusively for such parental choice programs.  Requires State educational agencies (SEAs), except in the case of such programs, to distribute 90 percent (currently 85 percent) of title VI funds to local educational agencies (LEAs). 
(Sec. 4) Includes such parental choice programs among State and local uses of title VI funds. 
Requires such parental choice programs to be located in an area that has the greatest numbers or percentages of children:  (1) living in areas with a high concentration of low-income families; (2) from low-income families; or (3) living in sparsely populated areas. Requires such programs to ensure that program participation is limited to families whose family income does not exceed 185 percent of the poverty line. 
(Sec. 5) Allows LEAS that establish parental choice programs to apply for education flexibility waivers of certain statutory or regulatory requirements.  Requires approval of such waivers by the Secretary of Education or the SEA, as applicable. 
Prohibits the Secretary from waiving requirements for:  (1) civil rights protections and discrimination prohibitions; (2) services provided under the Individuals with Disabilities Education Act; (3) fiscal accountability measures; (4) equitable participation of private school students and teachers; and (5) parental involvement in program activities and services. 
(Sec. 6) Directs the Comptroller General to make contracts for annual evaluation of each parental choice program. Requires the Secretary of Education to reserve certain funds for such evaluations. 
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.
Helping Empower Low-Income Parents (HELP) Scholarships Amendments of 1998