I
106TH CONGRESS
1ST SESSION
H. R. 1538
To provide flexibility to certain local educational agencies that develop vol-
untary public and private parental choice programs under title VI of
the Elementary and Secondary Education Act of 1965.
IN THE HOUSE OF REPRESENTATIVES
APRIL 22, 1999
Mr. ROGAN (for himself, Mr. SOUDER, Mr. PITTS, Ms. GRANGER, Mr. WAMP,
Mr. MCINTOSH, and Mr. TIAHRT) introduced the following bill; which
was referred to the Committee on Education and the Workforce, and in
addition to the Committee on Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To provide flexibility to certain local educational agencies
that develop voluntary public and private parental choice
programs under title VI of the Elementary and Sec-
ondary Education Act of 1965.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Educational Opportu-
nities 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. DEFINITIONS.
Section 6003 of the Elementary and Secondary Edu-
cation Act of 1965 is amended—
(1) in the section heading, by striking ‘‘DEFI-
NITION’’ 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 fol-
lowing:
‘‘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 sec-
tion 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 pa-
rental choice program’ means a program that meets
the requirements of section 6301(b)(10), is author-
ized by State law, and includes 1 or more private
schools to allow low-income parents to choose the
appropriate school for their children.’’.
SEC. 103. 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 edu-
cation flexibility initiatives already adopted by Con-
gress.
SEC. 104. ALLOCATION TO LOCAL EDUCATIONAL AGEN-
CIES.
Section 6102(a) of the Elementary and Secondary
Education Act of 1965 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 fis-
cal 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 pro-
gram, not more than 25 percent.
‘‘(B) LIMITATION ON USE OF CERTAIN RE-
SERVED
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 agen-
cy 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 is
amended—
(1) in subparagraph (C), by striking ‘‘and’’
after the semicolon; and
(2) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) establishing voluntary public and pri-
vate 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 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 fol-
lowing:
‘‘(10) voluntary public and private parental
choice programs that—
‘‘(A) are located in an area designated as
an empowerment zone or an enterprise commu-
nity 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 in-
come does not exceed 185 percent of the pov-
erty line;
‘‘(C) ensure that—
‘‘(i) the maximum amount of a vol-
untary 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 pub-
lic and private parental choice scholarship
resides;
‘‘(ii) the minimum amount of a vol-
untary public and private parental choice
scholarship is not less than 60 percent of
the per pupil expenditure of the local edu-
cational 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 im-
pose the same academic requirements for
all students, including students selected for
a scholarship as provided under this para-
graph;
‘‘(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 pri-
vate 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 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 es-
tablish a voluntary public and private parental choice pro-
gram in accordance with section 6301(b)(10).’’; and
(2) by adding at the end of such part the fol-
lowing 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 experi-
ence in conducting evaluations, for the conduct of an
ongoing rigorous evaluation of the programs estab-
lished under section 6301(b)(10).
‘‘(2) ANNUAL
EVALUATION
REQUIREMENT.—
The contract described in paragraph (1) shall re-
quire the evaluating agency entering into such con-
tract 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 Comp-
troller General of the United States the findings of
each annual evaluation under paragraph (1).
‘‘(b) EVALUATION CRITERIA.—The Comptroller Gen-
eral of the United States, in consultation with the Sec-
retary, 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 par-
ticipation in the life of the school and the level of
parental satisfaction with the program; and
‘‘(2) a comparison of the educational achieve-
ment 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 author-
ity provided under section 14701, the Secretary shall re-
serve not more than 0.50 percent of the amount of funds
made available under section 6002 to carry out this sec-
tion. 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 sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to refundable credits) is amended by redes-
ignating 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 equip-
ment 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 ex-
penses. In the event an amount paid for tuition
or fees includes an amount for meals, lodging,
or similar expenses which is not separately stat-
ed, the portion of such amount which is attrib-
utable to meals, lodging, or similar expenses
shall be determined under regulations pre-
scribed by the Secretary.
‘‘(C) SPECIAL RULE FOR HOME SCHOOL-
ING.—In the case of education furnished in the
home (as a substitute for public education)
which meets the requirements of State law re-
lating 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 fur-
nishing such education.
‘‘(2) ELIGIBLE
ZONE
EDUCATIONAL
INSTITU-
TION.—
‘‘(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 de-
scribed in this subparagraph is any of the fol-
lowing:
‘‘(i) A secondary school.
‘‘(ii) An elementary school.
‘‘(ii) Any private, parochial, religious,
or home school organized for the purpose
of providing elementary or secondary edu-
cation, or both.
‘‘(3) 
ELEMENTARY
AND
SECONDARY
SCHOOLS.—The terms ‘elementary school’ and ‘sec-
ondary 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 sub-
section (a) as qualified education expenses of any indi-
vidual during any period shall be reduced (before the ap-
plication 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 pro-
visions 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.
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