Expanded Options in Higher Education for District of Columbia Students Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanded Options in Higher Education 
for District of Columbia Students Act of 1999''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to establish a program that enables 
college-bound residents of the District of Columbia to have greater 
choices among institutions of higher education.

SEC. 3. THE EXPANDED OPTIONS IN HIGHER EDUCATION FOR DISTRICT OF 
              COLUMBIA STUDENTS PROGRAM.

    (a) In General.--From amounts appropriated under subsection (h), 
the Secretary shall award grants to eligible institutions that enroll 
eligible students to pay the difference between the tuition charged for 
in-State students and the tuition charged for out-of-State students on 
behalf of each eligible student enrolled in the eligible institution.
    (b) Ratable Reduction.--If the funds appropriated under subsection 
(h) for any fiscal year are not sufficient to award a grant in the 
amount determined under subsection (a) on behalf of each eligible 
student enrolled in an eligible institution, the amount of the tuition 
payment made on behalf of each eligible student shall be ratably 
reduced. If additional sums become available for that fiscal year, the 
reduced grant amount shall be increased on the same basis as the grant 
amount was reduced (until the amount of the grant equals the amount 
determined under subsection (a)).
    (c) Definitions.--In this section:
            (1) Academic year.--The term ``academic year'' has the 
        meaning given the term in section 481 of the Higher Education 
        Act of 1965 (20 U.S.C. 1088).
            (2) Eligible student.--The term ``eligible student'' means 
        an individual who--
                    (A) has been a resident of the District of Columbia 
                for not less than the 12 consecutive months preceding 
                the academic year for which the tuition payment is 
                sought;
                    (B) is a member of a family that has an income 
                level that is below the applicable income level at 
                which eligibility for the Hope Scholarship and Lifetime 
                Learning Credit is disallowed by reason of section 
                25A(d) of the Internal Revenue Code of 1986;
                    (C) begins the individual's undergraduate course of 
                study within the 3 calendar years (excluding any period 
                of service on active duty in the Armed Forces, or 
                service under the Peace Corps Act (22 U.S.C. 2501 et 
                seq.) or subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12571 et seq.) 
                of graduation from a secondary school, or obtaining the 
                recognized equivalent of a secondary school diploma;
                    (D) is enrolled or accepted for enrollment, on at 
                least a half-time basis, in a degree, certificate, or 
                other program (including a program of study abroad 
                approved for credit by the institution at which such 
                student is enrolled) leading to a recognized 
                educational credential at an eligible institution;
                    (E) if enrolled in an eligible institution, is 
                maintaining satisfactory progress in the course of 
                study the student is pursuing in accordance with 
                section 484(c) of the Higher Education Act of 1965 (20 
                U.S.C. 1091(c));
                    (F) has not completed the individual's first 
                undergraduate baccalaureate course of study; and
                    (G) has filed an application with an eligible 
                institution.
            (3) Eligible institution.--The term ``eligible 
        institution'' means an institution that--
                    (A) is a public institution of higher education 
                located in the State of Maryland or the Commonwealth of 
                Virginia;
                    (B) is an institution of higher education as 
                defined in section 101 of the Higher Education Act of 
                1965 (20 U.S.C. 1001);
                    (C) is eligible to participate in the student 
                financial assistance programs under title IV of such 
                Act (20 U.S.C. 1070 et seq.); and
                    (D) enters into an agreement with the Secretary 
                containing such conditions as the Secretary may 
                specify.
            (4) Secondary school.--The term ``secondary school'' has 
        the meaning given that term under section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
    (d) Construction.--Nothing in this Act shall be construed to 
require an institution of higher education to alter the institution's 
admissions policies or standards in any manner to enable an eligible 
student to enroll in the institution.
    (e) Applications.--Each student desiring a tuition payment under 
this section shall submit an application to the eligible institution at 
such time, in such manner, and accompanied by such information as the 
eligible institution may require.
    (f) Administration of Program.--
            (1) In general.--The Secretary shall carry out the program 
        under this section in consultation with the Mayor of the 
        District of Columbia. The Secretary may enter into a grant, 
        contract, or cooperative agreement with another public or 
        private entity to administer the program under this section if 
        the Secretary determines that doing so is a more efficient way 
        of carrying out the program.
            (2) Policies and procedures.--The Secretary, in 
        consultation with institutions of higher education eligible for 
        participation in the program authorized under this section, 
        shall develop policies and procedures for the administration of 
        the program.
    (g) Report.--The Secretary shall report to Congress annually 
regarding--
            (1) the number of eligible students attending each eligible 
        institution and the amount of the grant awards paid to those 
        institutions on behalf of the eligible students;
            (2) the extent, if any, to which a ratable reduction was 
        made in the amount of tuition payments made on behalf of 
        eligible students; and
            (3) the progress in obtaining recognized academic 
        credentials of the cohort of eligible students for each year.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Education to carry out this section 
$20,000,000 for fiscal year 2000 and such sums as may be necessary for 
each of the 5 succeeding fiscal years. Such funds shall remain 
available until expended.
    (i) Effective Date.--This section shall take effect for academic 
years beginning on or after July 1, 2000.

SEC. 4. ASSISTANCE TO THE UNIVERSITY OF THE DISTRICT OF COLUMBIA.

    (a) In General.--The Secretary of Education may provide financial 
assistance to the University of the District of Columbia to enable the 
University to carry out activities authorized under part B of title III 
of the Higher Education Act of 1965 (20 U.S.C. 1060 et seq.).
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $1,500,000 for fiscal year 2000 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.

SEC. 5. PRIVATE SCHOOL PROGRAM.

    (a) In General.--The Secretary may award grants to eligible 
institutions that enroll eligible students to pay the cost of tuition 
and fees at the eligible institutions on behalf of each eligible 
student enrolled in an eligible institution. The Secretary may 
prescribe such regulations as may be necessary to carry out this 
section.
    (b) Grant Amount.--
            (1) In general.--The Secretary shall award a grant under 
        this section on behalf of each eligible student in an amount 
        that is not greater than $2,000 for each eligible student per 
        academic year. In determining the amount of the tuition and fee 
        payment made on behalf of eligible students for an academic 
        year the Secretary shall consider the number of eligible 
        students for the academic year and the amount of funds 
        appropriated under subsection (f) for the academic year.
            (2) Proration.--The Secretary shall prorate grant awards 
        under this section for students who attend school on less than 
        a full time basis.
    (c) Definitions.--In this section:
            (1) Eligible student.--The term ``eligible student'' means 
        an individual who meets the requirements of subparagraphs (A) 
        through (G) of section 3(c)(2).
            (2) Eligible institution.--The term ``eligible 
        institution'' means an institution that--
                    (A)(i) is a private, nonprofit institution of 
                higher education, as defined in section 101(a) of the 
                Higher Education Act of 1965 (20 U.S.C. 1001), that is 
                located in the District of Columbia or in a county 
                adjacent to the District of Columbia; or
                    (ii) is a proprietary institution of higher 
                education, as defined in section 102(b) of the Higher 
                Education Act of 1965 (20 U.S.C. 1002(b)), that--
                            (I) provides a 2-year or 4-year program of 
                        instruction for which the institution awards an 
                        associate or baccalaureate degree; and
                            (II) is located in the District of Columbia 
                        or in a county adjacent to the District of 
                        Columbia;
                    (B) is eligible to participate in the student 
                financial assistance programs under title IV of the 
                Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
                and
                    (C) enters into an agreement with the Secretary 
                containing such conditions as the Secretary may 
                specify.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
    (d) Application.--Each eligible student desiring a tuition and fee 
payment under this section shall submit an application to the eligible 
institution at such time, in such manner, and accompanied by such 
information as the eligible institution may require.
    (e) Administration of Program.--
            (1) In general.--The Secretary shall carry out the program 
        under this section in consultation with the Mayor of the 
        District of Columbia. The Secretary may enter into a grant, 
        contract, or cooperative agreement with another public or 
        private entity to administer the program under this section if 
        the Secretary determines that doing so is a more efficient way 
        of carrying out the program.
            (2) Policies and procedures.--The Secretary, in 
        consultation with institutions of higher education eligible for 
        participation in the program authorized under this section, 
        shall develop policies and procedures for the administration of 
        the program.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Education to carry out this section 
$10,000,000 for fiscal year 2000 and such sums as may be necessary for 
each of the 5 succeeding fiscal years. Such funds shall remain 
available until expended.
    (g) Effective Date.--This section shall take effect for academic 
years beginning on or after July 1, 2000.

Summary: Defines eligibility criteria, including membership in a family with an income level below the threshold at which eligibility for the Hope Scholarship and Lifetime Learning Credit is disallowed under the Internal Revenue Code. Authorizes the Secretary to delegate administration of the program to another public or private entity if it would be more efficient to do so. Authorizes appropriations. Authorizes the Secretary to provide financial assistance to the University of the District of Columbia to enable it to carry out activities authorized by the Higher Education Act of 1965 with respect to Historically Black Colleges and Universities. Authorizes appropriations. Authorizes the Secretary to award grants of up to $2,000 per academic year on behalf of eligible students to help defray tuition costs for attendance at private, nonprofit postsecondary education institutions in the District or an adjacent county. Prescribes eligibility criteria identical to the other eligibility criteria of this Act. Authorizes the Secretary to delegate administration of the program to another public or private entity if it would be more efficient to do so. Authorizes appropriations.