A bill to establish the America's Opportunity Scholarships for Kids Program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``America's Opportunity Scholarships 
for Kids Act''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to support local efforts to enable 
students from low-income families who attend a school identified for 
restructuring under section 1116(b)(8) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6316(b)(8))--
            (1) to attend a private elementary school or secondary 
        school, or a public elementary school or secondary school 
        outside the student's home school district, including a public 
        charter school; or
            (2) to receive intensive, sustained supplemental 
        educational services.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Elementary school; local educational agency; secondary 
        school; secretary; state educational agency.--The terms 
        ``elementary school'', ``local educational agency'', 
        ``secondary school'', ``Secretary'', and ``State educational 
        agency'' have the meanings given the terms in section 9101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a local educational agency;
                    (B) a State educational agency; or
                    (C) a nonprofit organization or a consortium of 
                nonprofit organizations.
            (3) Eligible student.--The term ``eligible student'' means 
        a student from a low-income family who--
                    (A) with respect to a school identified for 
                restructuring under section 1116(b)(8) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6316(b)(8))--
                            (i) is eligible to enroll in the beginning 
                        grade of the school;
                            (ii) except as provided in subparagraph 
                        (C), attended the school for the entire school 
                        year preceding the identification;
                            (iii) in the case of a student who 
                        transfers to the school to attend any grade 
                        beyond the beginning grade of the school, 
                        attends the school for the remainder of the 
                        school year in which the transfer occurs; or
                            (iv) received a scholarship under this Act 
                        in a preceding school year due to such 
                        identification; or
                    (B) is a sibling of a student described in any 1 of 
                clauses (i) through (iv) of subparagraph (A).
            (4) Low-income family.--The term ``low-income family'' 
        means a family whose income does not exceed 185 percent of the 
        poverty line, except that in the case of a student 
        participating in a project under this Act for a second or any 
        succeeding school year the term includes a family whose income 
        does not exceed 220 percent of the poverty line.
            (5) Poverty line.--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.
            (6) Private provider.--The term ``private provider'' means 
        a nonprofit or for-profit private provider of supplemental 
        educational services described in section 1116(e)(1) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6316(e)(1)) that is on the updated list of approved providers 
        maintained by the State educational agency under section 
        1116(e)(4)(C) of such Act (20 U.S.C. 6316(e)(4)(C)).
            (7) Supplemental educational services.--The term 
        ``supplemental educational services'' has the meaning given the 
        term in section 1116(e)(12)(C) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6316(e)(12)(C)).

SEC. 4. PROGRAM AUTHORIZED.

    (a) Authority.--
            (1) In general.--Subject to paragraph (2) and from amounts 
        appropriated under section 6 for a fiscal year, the Secretary 
        shall award grants, on a competitive basis, to eligible 
        entities to support projects that provide--
                    (A) scholarships to enable eligible students to 
                attend--
                            (i) the private elementary school or 
                        secondary school of their parent's choice; or
                            (ii) a public elementary school or 
                        secondary school of their parents' choice 
                        outside of the eligible student's home school 
                        district, consistent with State law; or
                    (B) eligible students with intensive, sustained 
                supplemental educational services on an annual basis.
            (2) Scholarship duration rule.--Each eligible entity that 
        receives a grant under this Act shall only award a scholarship 
        under this Act to an eligible student for--
                    (A)(i) in the case of an eligible student described 
                in section 3(3)(A), the first school year for which the 
                eligible student is eligible to receive the scholarship 
                with respect to a school identified for restructuring 
                under section 1116(b)(8) of the Elementary and 
                Secondary Education Act of 1965; and
                    (ii) in the case of an eligible student described 
                in section 3(3)(B), the first school year taught at the 
                school so identified; and
                    (B) each subsequent school year through the school 
                year applicable to the final grade taught at the school 
                so identified.
    (b) Duration of Grants.--The Secretary may award grants under this 
Act for a period of not more than 5 years.
    (c) Priorities.--In awarding grants under this Act, the Secretary 
shall give priority to eligible entities that--
            (1) propose to serve eligible students in a local 
        educational agency with a large number or percentage of schools 
        identified for restructuring under section 1116(b)(8) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6316(b)(8));
            (2) possess the knowledge and capacity to inform parents of 
        eligible students, in urban, suburban, and rural areas, about 
        public and private elementary school and secondary school 
        options; and
            (3) will augment the scholarships provided to eligible 
        students under this Act in order to help ensure that parents 
        can afford the cost (including tuition, fees, and necessary 
        transportation expenses) of the schools the parents choose to 
        have their children attend under this Act.
    (d) Application Requirements.--
            (1) In general.--To be considered for a grant under this 
        Act, an eligible entity shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may reasonably require.
            (2) Contents.--The application shall, at a minimum, include 
        a description of--
                    (A) the eligible entity's plan for--
                            (i) recruiting private schools, local 
                        educational agencies, charter schools, and 
                        private providers, to participate in the 
                        project in order to meet eligible student 
                        demand for private and public school admission 
                        and supplemental educational services; and
                            (ii) ensuring that participating schools 
                        that enroll eligible students receiving 
                        scholarships under this Act, and private 
                        providers participating in the project, will 
                        meet the applicable requirements of the 
                        project;
                    (B) each school identified for restructuring that 
                will be served under the project, including--
                            (i) the name of each such school; and
                            (ii) such demographic and socioeconomic 
                        information as the Secretary may require;
                    (C) how the eligible entity will work with the 
                identified schools and the local educational agency to 
                identify the parents of eligible students (including 
                through contracts or cooperative agreements with the 
                public school or local educational agency) consistent 
                with the requirements of the Family Educational Rights 
                and Privacy Act of 1974 (20 U.S.C. 1232g);
                    (D) how the eligible entity will structure the 
                project in a manner that permits eligible students to 
                participate in the second and succeeding school years 
                of the project if the schools the eligible students 
                attend with scholarship assistance under this Act are 
                subsequently identified for restructuring under section 
                1116(b)(8) of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 6316(b)(8));
                    (E) how the eligible entity will use funds received 
                under this Act;
                    (F) how the eligible entity will ensure that if 
                more eligible students seek admission to the project 
                than the project can accommodate, the eligible students 
                will be selected through a random selection process;
                    (G) how the eligible entity will notify parents of 
                eligible students of the expanded choice opportunities 
                provided under the project and how the eligible entity 
                will provide parents with sufficient information to 
                enable the parents to make an informed decision;
                    (H) how the eligible entity will ensure that the 
                schools receiving eligible students under the grant are 
                financially responsible and will use the grant funds 
                received under this Act effectively;
                    (I) how the eligible entity will prioritize between 
                providing scholarships and providing sustained, 
                intensive supplemental educational services, including 
                the timing and duration of offering the opportunity for 
                parents to determine which provision the parents 
                prefer; and
                    (J) how the eligible entity will address the 
                renewal of support for participating eligible students, 
                including continued eligibility.
    (e) Uses of Funds.--
            (1) In general.--Each eligible entity that receives a grant 
        under this Act may--
                    (A) reserve not more than 5 percent of the grant 
                funds for administrative expenses, including costs 
                associated with recruiting and selecting eligible 
                students, private schools, and private providers, to 
                participate in the project;
                    (B) only for the first year for which grant funds 
                are received under this Act, reserve not more than 5 
                percent of the grant funds (in addition to the funds 
                reserved under subparagraph (A)), for initial 
                implementation expenses, including costs associated 
                with outreach, providing information to parents and 
                school officials, and other administrative expenses;
                    (C) use the grant funds to provide scholarships to 
                eligible students to pay for the cost, including 
                tuition, fees, and necessary transportation expenses, 
                to attend the private school of their parents' choice 
                or a public elementary school or secondary school of 
                their parents' choice outside of the eligible students' 
                home school district (consistent with State law), 
                except that the scholarship shall not exceed $4,000 per 
                student per school year; and
                    (D) use the grant funds to pay the costs, including 
                reasonable transportation costs, of supplemental 
                educational services (including summer school or after-
                school programs) provided by a private provider to 
                eligible students, except that the costs shall not 
                exceed $3,000 per student, per school year.
            (2) Funding order.--Each eligible entity that receives a 
        grant under this Act shall--
                    (A) first fund scholarships for eligible students 
                to attend the private school of their parents' choice 
                or a public elementary school or secondary school of 
                their parents' choice outside of the eligible students' 
                home school district (consistent with State law); and
                    (B) use any remaining grant funds to provide 
                eligible students with access to supplemental 
                educational services.
            (3) Payment.--Each eligible entity that receives a grant 
        under this Act shall make scholarship payments under this Act 
        to the parent of the eligible student participating in the 
        project, in a manner that ensures that the payments will be 
        used only for the payment of tuition, fees, and necessary 
        transportation expenses, in accordance with this Act.
    (f) Prohibition.--A student who receives supplemental educational 
services under this Act shall not be eligible to receive other such 
services under section 1116(e) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6316(e)).
    (g) Project Performance.--Each eligible entity receiving a grant 
under this Act shall prepare and submit to the Secretary a final report 
on the results of the project assisted under this Act that contains 
such information as the Secretary may require. At a minimum, the report 
shall include information on the academic achievement of students 
receiving scholarships and supplemental educational services under the 
project.
    (h) Performance Information.--Each eligible entity that receives a 
grant under this Act shall collect and report such performance 
information as the Secretary may require for the national evaluation 
conducted under subsection (i).
    (i) National Evaluation.--From the amount made available for any 
fiscal year under section 6, the Secretary shall reserve such sums as 
may be necessary to conduct an independent evaluation, by grant or by 
contract, of the program carried out under this Act, which shall 
include an assessment of the impact of the program on student 
achievement. The Secretary shall report the results of the evaluation 
to the appropriate committees of Congress.

SEC. 5. NONDISCRIMINATION.

    (a) In General.--An eligible entity or a school participating in a 
project under this Act shall not discriminate against an individual 
participant in, or an individual applicant to participate in, the 
project on the basis of race, color, religion, sex, or national origin.
    (b) Applicability and Single-Sex Schools, Classes, or Activities.--
            (1) In general.--Notwithstanding any other provision of 
        law, the prohibition of sex discrimination described in 
        subsection (a) shall not apply to a school described in 
        subsection (a) that is operated by, supervised by, controlled 
        by, or connected to, a religious organization, to the extent 
        that the application of subsection (a) is inconsistent with the 
        religious tenets or beliefs of the organization.
            (2) Parental choice.--Notwithstanding subsection (a) or any 
        other provision of law, a parent may choose to enroll a child 
        in, and a school may offer, a single-sex school, class, or 
        activity under a project funded under this Act.
            (3) Neutrality.--Section 909 of the Education Amendments of 
        1972 (20 U.S.C. 1688) shall apply to this Act.
    (c) Children With Disabilities.--Nothing in this Act may be 
construed to alter or modify the requirements of the Individuals with 
Disabilities Education Act (20 U.S.C. 1400 et seq.).
    (d) Religiously Affiliated Schools.--
            (1) In general.--Notwithstanding any other provision of 
        law, a school described in subsection (a) that is operated by, 
        supervised by, controlled by, or connected to, a religious 
        organization may exercise, in matters of employment, the 
        school's rights consistent with title VII of the Civil Rights 
        Act of 1964 (42 U.S.C. 2000e et seq.), including the exemptions 
        in that title.
            (2) Special rule.--Notwithstanding any other provision of 
        law, if a school described in subsection (a) receives funds 
        made available under this Act for an eligible student as a 
        result of a choice made by the student's parent, the receipt of 
        the funds shall not, consistent with the first amendment of the 
        Constitution--
                    (A) necessitate any change in the school's teaching 
                mission;
                    (B) require the school to remove any religious art, 
                icon, scripture, or other symbol; or
                    (C) preclude the school from retaining a religious 
                term in its name, selecting its board members on a 
                religious basis, or including a religious reference in 
                its mission statement or another chartering or 
                governing document.
    (e) Rules of Construction.--For purposes of Federal law, a 
scholarship provided under this Act to a student shall be considered to 
be assistance to the parent of the student and shall not be considered 
to be assistance to the school that enrolls the student. The amount of 
any scholarship (or other form of support for the provision of 
supplemental educational services) provided to a parent of an eligible 
student under this Act shall not be treated as income of a parent of 
the eligible student for purposes of Federal tax laws or for purposes 
of determining eligibility for any other Federal program, other than 
the program carried out under this Act.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act 
$100,000,000 for fiscal year 2007 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.

Summary: America's Opportunity Scholarships for Kids Act - Directs the Secretary of Education to award competitive grants to local educational agencies, state educational agencies, or nonprofit organizations to provide scholarships or sustained supplemental educational services to low-income students who attend, or their siblings who would attend, a public elementary or secondary school due for restructuring for failing to meet state academic performance standards. Requires such scholarships to enable students to attend: (1) the private elementary or secondary school of their parent's choice. Or (2) a public elementary or secondary school of their parent's choice outside the student's home school district, consistent with state law. Requires the Secretary to conduct an independent evaluation of this program, including an assessment of its impact on student achievement.