I
107TH CONGRESS
2D SESSION
H. R. 5033
To provide scholarships for District of Columbia elementary and secondary
students, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 27, 2002
Mr. ARMEY (for himself, Mr. LIPINSKI, Mr. BOEHNER, Mr. WATTS of Okla-
homa, Mr. HOEKSTRA, Mr. SAM JOHNSON of Texas, Mr. SCHAFFER, Mr.
COX, Mr. BURTON of Indiana, Mr. CRANE, Mr. FLAKE, Mr. MANZULLO,
Mr. DAN MILLER of Florida, Mr. PITTS, Mr. SHADEGG, Mr. SHAYS, Mr.
TIBERI, Mr. WALSH, Mr. WELLER, and Mr. WICKER) introduced the fol-
lowing bill; which was referred to the Committee on Government Reform
A BILL
To provide scholarships for District of Columbia elementary
and secondary students, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE, FINDINGS, AND PRECEDENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘District of Columbia Student Opportunity Scholarship
Act of 2002’’.
(b) FINDINGS.—Congress makes the following find-
ings:
(1) Public education in the District of Columbia
is in a crisis, as evidenced by the following:
(A) The District of Columbia schools have
the lowest average of any school system in the
Nation on the National Assessment of Edu-
cation Progress.
(B) 72 percent of fourth graders in the
District of Columbia tested below basic pro-
ficiency in reading on the National Assessment
of Education Progress in 1998.
(C) According to the District of Columbia’s
own data, only 53 percent of District of Colum-
bia public school students in the 10th grade are
reading at or above the basic level.
(D) Only 28 percent of District of Colum-
bia public school students in the 10th grade
test at or above the basic level in mathematics.
(E) The National Education Goals Panel
reported in 1996 that both students and teach-
ers in District of Columbia schools are sub-
jected to levels of violence that are twice the na-
tional average.
(F) In 1999, nearly one in five District of
Columbia high school students stated that, at
some point in the preceding month, they felt too
unsafe to go to school, while nearly one out of
every seven students admitted to bringing a
weapon to school.
(G) Many of the District of Columbia’s
146 schools are in a state of terrible disrepair,
including leaking roofs, bitterly cold classrooms,
and numerous fire code violations.
(2) Significant improvements in the education
of educationally deprived children in the District of
Columbia can be accomplished by—
(A) increasing educational opportunities
for the children by expanding the range of edu-
cational choices that best meet the needs of the
children;
(B) fostering diversity and competition
among school programs for the children;
(C) providing the families of the children
more of the educational choices already avail-
able to affluent families; and
(D) enhancing the overall quality of edu-
cation in the District of Columbia by increasing
parental involvement in the direction of the
education of the children.
(3) The 475 private schools in the District of
Columbia and the surrounding area offer a safer and
more stable learning environment than many of the
public schools.
(4) Costs are often much lower in private
schools than corresponding costs in public schools.
(5) Not all children are alike and therefore
there is no one school or program that fits the needs
of all children.
(6) The formation of sound values and moral
character is crucial to helping young people escape
from lives of poverty, family breakup, drug abuse,
crime, and school failure.
(7) In addition to offering knowledge and skills,
education should contribute positively to the forma-
tion of the internal norms and values which are vital
to a child’s success in life and to the well-being of
society.
(8) Schools should help to provide young people
with a sound moral foundation which is consistent
with the values of their parents. To find such a
school, parents need a full range of choices to deter-
mine where their children can best be educated.
(c) PRECEDENTS.—The United States Supreme
Court has determined that programs giving parents choice
and increased input in their children’s education, includ-
ing the choice of a religious education, do not violate the
Constitution. The Supreme Court has held that as long
as the beneficiary decides where education funds will be
spent on such individual’s behalf, public funds can be used
for education in a religious institution because the public
entity has neither advanced nor hindered a particular reli-
gion, or religion in general, and therefore has not violated
the establishment clause of the first amendment to the
Constitution. Supreme Court precedents include the fol-
lowing:
(1) Wisconsin v. Yoder, 406 U.S. 205 (1972),
Pierce v. Society of Sisters, 268 U.S. 510 (1925),
and Meyer v. Nebraska, 262 U.S. 390 (1923), which
held that parents have the primary role in and are
the primary decision makers in all areas regarding
the education and upbringing of their children.
(2) Mueller v. Allen, 463 U.S. 388 (1983),
which declared a Minnesota tax deduction program
that provided State income tax benefits for edu-
cational expenditures by parents, including tuition in
religiously affiliated schools, does not violate the
Constitution.
(3) Witters v. Department of Services for the
Blind, 474 U.S. 481 (1986), in which the Supreme
Court ruled unanimously that public funds for the
vocational training of the blind could be used at a
Bible college for ministry training.
(4) Zobrest v. Catalina Foothills School Dis-
trict, 509 U.S. 1 (1993), which held that a deaf
child could receive an interpreter, paid for by the
public, in a private religiously affiliated school under
the Individuals with Disabilities Education Act (20
U.S.C. 1400 et seq.). The case held that providing
an interpreter in a religiously affiliated school did
not violate the establishment clause of the first
amendment of the Constitution.
SEC. 2. DEFINITIONS.
In this Act:
(1) The term ‘‘Board’’ means the Board of Di-
rectors of the Corporation established under section
3(b)(1).
(2) The term ‘‘Corporation’’ means the District
of Columbia Scholarship Corporation established
under section 3(a).
(3) The term ‘‘eligible institution’’—
(A) in the case of an institution serving a
student who receives a tuition scholarship under
section 4(d)(1), means a public, private, or
independent elementary or secondary school;
and
(B) in the case of an institution serving a
student who receives an enhanced achievement
scholarship under section 4(d)(2), means an ele-
mentary or secondary school or an entity that
provides services to a student enrolled in an ele-
mentary or secondary school to enhance such
student’s achievement through instruction de-
scribed in section 4(d)(2).
(4) The term ‘‘parent’’ includes a legal guard-
ian or other person standing in loco parentis.
(5) The term ‘‘poverty line’’ means the official
poverty line, as established by the Director of the
Office of Management and Budget and revised an-
nually under section 673(2) of the Community Serv-
ices Block Grant Act (42 U.S.C. 9902(2)), applica-
ble to a family of the size involved.
SEC. 3. DISTRICT OF COLUMBIA SCHOLARSHIP CORPORA-
TION.
(a) GENERAL REQUIREMENTS.—
(1) IN GENERAL.—There is authorized to be es-
tablished a private, nonprofit corporation, to be
known as the ‘‘District of Columbia Scholarship
Corporation’’, which is neither an agency nor estab-
lishment of the United States Government or the
District of Columbia Government.
(2) DUTIES.—The Corporation shall have the
responsibility and authority to administer, publicize,
and evaluate the scholarship program in accordance
with this Act, and to determine student and school
eligibility for participation in such program.
(3) CONSULTATION.—The Corporation shall ex-
ercise its authority—
(A) in a manner consistent with maxi-
mizing educational opportunities for the max-
imum number of interested families; and
(B) in consultation with the District of Co-
lumbia Board of Education or entity exercising
administrative jurisdiction over the District of
Columbia Public Schools, the Superintendent of
the District of Columbia Public Schools, and
other school scholarship programs in the Dis-
trict of Columbia.
(4) APPLICATION
OF
PROVISIONS.—The Cor-
poration shall be subject to the provisions of this
Act, and, to the extent consistent with this Act, to
the District of Columbia Nonprofit Corporation Act
(sec. 29–301.01 et seq., D.C. Official Code).
(5) RESIDENCE.—The Corporation shall have
its place of business in the District of Columbia and
shall be considered, for purposes of venue in civil ac-
tions, to be a resident of the District of Columbia.
(6) FUND.—There is established in the Treas-
ury a fund that shall be known as the District of
Columbia Scholarship Fund, to be administered by
the Secretary of the Treasury.
(7) DISBURSEMENT.—The Secretary of the
Treasury shall make available and disburse to the
Corporation, before October 15 of each fiscal year or
not later than 15 days after the date of enactment
of an Act making appropriations for the District of
Columbia for such year, whichever occurs later, such
funds as have been appropriated to the District of
Columbia Scholarship Fund for the fiscal year in
which such disbursement is made.
(8) AVAILABILITY.—Funds authorized to be ap-
propriated under this Act shall remain available
until expended.
(9) USES.—Funds authorized to be appro-
priated under this Act shall be used by the Corpora-
tion in a prudent and financially responsible man-
ner, solely for scholarships, contracts, and adminis-
trative costs.
(10) AUTHORIZATION OF APPROPRIATIONS.—
(A) IN GENERAL.—There are authorized to
be appropriated to the District of Columbia
Scholarship Fund—
(i) $7,000,000 for fiscal year 2003;
(ii) $8,000,000 for fiscal year 2004;
and
(iii) $10,000,000 for each of fiscal
years 2005 through 2007.
(B) LIMITATION.—Not more than 7.5 per-
cent of the amount appropriated to carry out
this Act for any fiscal year may be used by the
Corporation for salaries and administrative
costs.
(b) ORGANIZATION AND MANAGEMENT; BOARD OF
DIRECTORS.—
(1) BOARD OF DIRECTORS; MEMBERSHIP.—
(A) IN GENERAL.—The Corporation shall
have a Board of Directors (hereinafter in this
Act referred to as the ‘‘Board’’), comprised of
seven members, with six members of the Board
appointed by the President not later than 30
days after receipt of nominations from the
Speaker of the House of Representatives and
the President pro tempore of the Senate.
(B) HOUSE NOMINATIONS.—The President
shall appoint three of the members from a list
of nine individuals nominated by the Speaker of
the House of Representatives in consultation
with the minority leader of the House of Rep-
resentatives.
(C) SENATE
NOMINATIONS.—The Presi-
dent shall appoint three members from a list of
nine individuals nominated by the President pro
tempore of the Senate in consultation with the
minority leader of the Senate.
(D) DEADLINE.—The Speaker of the
House of Representatives and Majority Leader
of the Senate shall submit their nominations to
the President not later than 30 days after the
date of the enactment of this Act.
(E) APPOINTEE BY MAYOR.—The Mayor
of the District of Columbia shall appoint one
member of the Board not later than 60 days
after the date of the enactment of this Act.
(F) POSSIBLE INTERIM MEMBERS.—If the
President does not appoint the six members of
the Board in the 30-day period described in
subparagraph (A), then the Speaker of the
House of Representatives and the President pro
ment or the District of Columbia Government when
appointed to or during tenure on the Board, unless
the individual is on a leave of absence from such a
position while serving on the Board.
(6) INCORPORATION.—The members of the ini-
tial Board shall serve as incorporators and shall take
whatever steps are necessary to establish the Cor-
poration under the District of Columbia Nonprofit
Corporation Act (sec. 29–301.01 et seq., D.C. Offi-
cial Code).
(7) GENERAL
TERM.—The term of office of
each member of the Board shall be 5 years, except
that any member appointed to fill a vacancy occur-
ring prior to the expiration of the term for which the
predecessor was appointed shall be appointed for the
remainder of such term.
(8) CONSECUTIVE TERM.—No member of the
Board shall be eligible to serve in excess of two con-
secutive terms of 5 years each. A partial term shall
be considered as one full term. Any vacancy on the
Board shall not affect the Board’s power, but shall
be filled in a manner consistent with this Act.
(9) NO BENEFIT.—No part of the income or as-
sets of the Corporation shall inure to the benefit of
any Director, officer, or employee of the Corpora-
tion, except as salary or reasonable compensation for
services.
(10) POLITICAL
ACTIVITY.—The Corporation
may not contribute to or otherwise support any po-
litical party or candidate for elective public office.
(11) NOT
OFFICERS
OR
EMPLOYEES.—The
members of the Board shall not, by reason of such
membership, be considered to be officers or employ-
ees of the United States Government or of the Dis-
trict of Columbia Government.
(12) STIPENDS.—The members of the Board,
while attending meetings of the Board or while en-
gaged in duties related to such meetings or other ac-
tivities of the Board pursuant to this Act, shall be
provided a stipend. Such stipend shall be at the rate
of $150 per day for which the member of the Board
is officially recorded as having worked, except that
no member may be paid a total stipend amount in
any calendar year in excess of $5,000.
(c) OFFICERS AND STAFF.—
(1) EXECUTIVE
DIRECTOR.—The Corporation
shall have an executive director, and such other
staff, as may be appointed by the Board for terms
and at rates of compensation, not to exceed level
EG–16 of the Educational Service of the District of
Columbia, to be fixed by the Board.
(2) STAFF.—With the approval of the Board,
the executive director may appoint and fix the salary
of such additional personnel as the executive director
considers appropriate.
(3) ANNUAL RATE.—No staff of the Corpora-
tion may be compensated by the Corporation at an
annual rate of pay greater than the annual rate of
pay of the executive director.
(4) SERVICE.—All officers and employees of the
Corporation shall serve at the pleasure of the Board.
(5) QUALIFICATION.—No political test or quali-
fication may be used in selecting, appointing, pro-
moting, or taking other personnel actions with re-
spect to officers, agents, or employees of the Cor-
poration.
(d) POWERS OF THE CORPORATION.—
(1) GENERALLY.—The Corporation is author-
ized to obtain grants from, and make contracts with,
individuals and with private, State, and Federal
agencies, organizations, and institutions.
(2) HIRING AUTHORITY.—The Corporation may
hire, or accept the voluntary services of, consultants,
experts, advisory boards, and panels to aid the Cor-
poration in carrying out this Act.
(e) FINANCIAL MANAGEMENT AND RECORDS.—
(1) AUDITS.—The financial statements of the
Corporation shall be—
(A) maintained in accordance with gen-
erally accepted accounting principles for non-
profit corporations; and
(B) audited annually by independent cer-
tified public accountants.
(2) REPORT.—The report for each such audit
shall be included in the annual report to Congress
required by section 11(c).
(f) ADMINISTRATIVE RESPONSIBILITIES.—
(1) SCHOLARSHIP APPLICATION SCHEDULE AND
PROCEDURES.—Not later than 30 days after the ini-
tial Board is appointed and the first executive direc-
tor of the Corporation is hired under this Act, the
Corporation shall implement a schedule and proce-
dures for processing applications for, and awarding,
student scholarships under this Act. The schedule
and procedures shall include establishing a list of
certified eligible institutions located in the areas
specified in section 4(d)(1)), distributing scholarship
information to parents and the general public (in-
cluding through a newspaper of general circulation),
and establishing deadlines for steps in the scholar-
ship application and award process.
(2) INSTITUTIONAL APPLICATIONS AND ELIGI-
BILITY.—
(A) IN GENERAL.—An eligible institution
that desires to participate in the scholarship
program under this Act shall file an application
with the Corporation for certification for par-
ticipation in the scholarship program under this
Act that shall—
(i) demonstrate that the eligible insti-
tution has operated with not fewer than 25
students during the 3 years preceding the
year for which the determination is made
unless the eligible institution is applying
for certification as a new eligible institu-
tion under subparagraph (C);
(ii) contain an assurance that the eli-
gible institution will comply with all appli-
cable requirements of this Act;
(iii) contain an annual statement of
the eligible institution’s budget; and
SEC. 6. SCHOLARSHIP PAYMENTS.
(a) PAYMENTS.—The Corporation shall make schol-
arship payments to the parent of a student awarded a
scholarship under this Act.
(b) DISTRIBUTION OF SCHOLARSHIP FUNDS.—Schol-
arship funds may be distributed by check, or another form
of disbursement, issued by the Corporation and made pay-
able directly to a parent of a student awarded a scholar-
ship under this Act. The parent may use the scholarship
funds only for payment of tuition, mandatory fees, and
transportation costs as described in this Act.
(c) PRO RATA AMOUNTS
FOR STUDENT WITH-
DRAWAL.—If a student receiving a scholarship under this
Act withdraws or is expelled from an eligible institution
after the proceeds of a scholarship is paid to the eligible
institution, then the eligible institution shall refund to the
Corporation on a pro rata basis the proportion of any such
proceeds received for the remaining days of the school
year. Such refund shall occur not later than 30 days after
the date of the withdrawal or expulsion of the student.
SEC. 7. CIVIL RIGHTS.
(a) IN GENERAL.—An eligible institution partici-
pating in the scholarship program under this Act shall not
discriminate on the basis of race, color, national origin,
or sex in carrying out the provisions of this Act.
(b) APPLICABILITY AND CONSTRUCTION WITH RE-
SPECT TO DISCRIMINATION ON THE BASIS OF SEX.—
(1) APPLICABILITY.—With respect to discrimi-
nation on the basis of sex, subsection (a) shall not
apply to an eligible institution that is controlled by
a religious organization if the application of sub-
section (a) is inconsistent with the religious tenets of
the eligible institution.
(2) CONSTRUCTION.—With respect to discrimi-
nation on the basis of sex, nothing in subsection (a)
shall be construed to require any person, or public
or private entity to provide or pay, or to prohibit any
such person or entity from providing or paying, for
any benefit or service, including the use of facilities,
related to an abortion. Nothing in the preceding sen-
tence shall be construed to permit a penalty to be
imposed on any person or individual because such
person or individual is seeking or has received any
benefit or service related to a legal abortion.
(3) SINGLE-SEX SCHOOLS, CLASSES, OR ACTIVI-
TIES.—With respect to discrimination on the basis
of sex, nothing in subsection (a) shall be construed
to prevent a parent from choosing, or an eligible in-
stitution from offering, a single-sex school, class, or
activity.