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school that has received a payment under
subsection (b) in the fiscal year imme-
diately preceding the fiscal year in which a
transfer under clause (i) is made, the
amount transferred to the school under
clause (i) shall be reduced by an amount
equal to 25 percent of the amount of the
payment under subsection (b).’’.
SEC. 310. ELIGIBILITY CRITERIA FOR PRIVATE, NONPROFIT
CORPORATION.
Section 2603 of the District of Columbia School Re-
form Act (Public Law 104–134; 110 Stat. 1321–144; D.C.
Code § 31–2853.63) is amended to read as follows:
‘‘SEC. 2603. ELIGIBILITY CRITERIA FOR PRIVATE, NON-
PROFIT CORPORATION.
‘‘A private, nonprofit corporation shall be eligible to
receive a grant under section 2602 if the corporation is
a business organization incorporated in the District of Co-
lumbia, that—
‘‘(1) has a board of directors which includes
members who are also executives of technology-relat-
ed corporations involved in education and workforce
development issues;
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‘‘(2) has extensive practical experience with ini-
tiatives that link business resources and expertise
with education and training systems;
‘‘(3) has experience in working with State and
local educational agencies with respect to the inte-
gration of academic studies with workforce prepara-
tion programs; and
‘‘(4) has a structure through which additional
resources can be leveraged and innovative practices
disseminated.’’.
Subtitle B—Student Opportunity
Scholarships
SEC. 341. DEFINITIONS.
As used in this subtitle—
(1) the term ‘‘Board’’ means the Board of Di-
rectors of the Corporation established under section
342(b)(1);
(2) the term ‘‘Corporation’’ means the District
of Columbia Scholarship Corporation established
under section 342(a);
(3) the term ‘‘eligible institution’’—
(A) in the case of an eligible institution
serving a student who receives a tuition scholar-
ship under section 343(d)(1), means a public,
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private, or independent elementary or secondary
school; and
(B) in the case of an eligible institution
serving a student who receives an enhanced
achievement 
scholarship 
under 
section
343(d)(2), means an elementary or secondary
school, or an entity that provides services to a
student enrolled in an elementary or secondary
school to enhance such student’s achievement
through 
activities 
described 
in 
section
343(d)(2);
(4) the term ‘‘parent’’ includes a legal guardian
or other person standing in loco parentis; and
(5) the term ‘‘poverty line’’ means the income
official poverty line (as defined by the Office of Man-
agement and Budget, and revised annually in ac-
cordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)) appli-
cable to a family of the size involved.
SEC. 342. DISTRICT OF COLUMBIA SCHOLARSHIP COR-
PORATION.
(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
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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 subtitle, 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 maximiz-
ing educational opportunities for the maximum
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
subtitle, and, to the extent consistent with this sub-
title, to the District of Columbia Nonprofit Corpora-
tion Act (D.C. Code, sec. 29–501 et seq.).
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(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 subtitle shall remain available
until expended.
(9) USES.—Funds authorized to be appro-
priated under this subtitle shall be used by the Cor-
poration in a prudent and financially responsible
manner, solely for scholarships, contracts, and ad-
ministrative costs.
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(10) AUTHORIZATION.—
(A) IN GENERAL.—There are authorized to
be appropriated to the District of Columbia
Scholarship Fund—
(i) $7,000,000 for fiscal year 1998;
(ii) $8,000,000 for fiscal year 1999;
and
(iii) $10,000,000 for each of fiscal
years 2000 through 2002.
(B) LIMITATION.—Not more than 7.5 per-
cent of the amount appropriated to carry out
this subtitle 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 (referred to in this
subtitle as the ‘‘Board’’), comprised of 7 mem-
bers with 6 members of the Board appointed by
the President not later than 30 days after re-
ceipt of nominations from the Speaker of the
House of Representatives and the majority
leader of the Senate.
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(B) HOUSE NOMINATIONS.—The President
shall appoint 3 of the members from a list of
9 individuals nominated by the Speaker of the
House of Representatives in consultation with
the minority leader of the House of Representa-
tives.
(C) SENATE
NOMINATIONS.—The Presi-
dent shall appoint 3 members from a list of 9
individuals nominated by the majority leader 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 OF MAYOR.—The Mayor
shall appoint 1 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 6 members of
the Board in the 30-day period described in
subparagraph (A), then the Speaker of the
House of Representatives and the Majority
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Leader of the Senate shall each appoint 2 mem-
bers of the Board, and the Minority Leader of
the House of Representatives and the Minority
Leader of the Senate shall each appoint 1 of
the Board, from among the individuals nomi-
nated pursuant to subparagraphs (A) and (B),
as the case may be. The appointees under the
preceding sentence together with the appointee
of the Mayor, shall serve as an interim Board
with all the powers and other duties of the
Board described in this subtitle, until the Presi-
dent makes the appointments as described in
this paragraph.
(2) POWERS.—All powers of the Corporation
shall vest in and be exercised under the authority of
the Board.
(3) ELECTIONS.—Members of the Board annu-
ally shall elect 1 of the members of the Board to be
chairperson of the Board.
(4) RESIDENCY.—All members appointed to the
Board shall be residents of the District of Columbia
at the time of appointment and while serving on the
Board.
(5) NONEMPLOYEE.—No member of the Board
may be an employee of the United States Govern-
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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 (D.C. Code, sec. 29–501 et seq.).
(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 2 con-
secutive terms of 5 years each. A partial term shall
be considered as 1 full term. Any vacancy on the
Board shall not affect the Board’s power, but shall
be filled in a manner consistent with this subtitle.
(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-
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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) NO OFFICERS OR EMPLOYEES.—The mem-
bers of the Board shall not, by reason of such mem-
bership, be considered to be officers or employees of
the United States Government or of the District 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 subtitle, 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
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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 sal-
ary 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,
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experts, advisory boards, and panels to aid the Cor-
poration in carrying out this subtitle.
(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 350(c).
(f) RESPONSIBILITIES OF THE CORPORATION.—
(1) APPLICATION SCHEDULE AND PROCEDURES
FOR CERTIFICATION.—Not later than 60 days after
the Board has been appointed, the Corporation shall
implement a schedule and procedures for processing
applications for awarding student scholarships under
this subtitle that includes a list of certified eligible
institutions, distribution of information to parents
and the general public (including through a news-
paper of general circulation), and deadlines for steps
in the scholarship application and award process.
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(2) APPLICATION.—An eligible institution that
desires to participate in the scholarship program
under this subtitle shall file an application with the
Corporation for certification for participation in the
scholarship program under this subtitle which
shall—
(A) demonstrate that the eligible institu-
tion has operated with not less than 25 stu-
dents during the 3 years preceding the year for
which the determination is made unless the eli-
gible institution is applying for certification as
a new eligible institution under subsection (c);
(B) contain an assurance that the eligible
institution will comply with all applicable re-
quirements of this subtitle;
(C) contain an annual statement of the eli-
gible institution’s budget; and
(D) describe the eligible institution’s pro-
posed program, including personnel qualifica-
tions and fees.
(3) CERTIFICATION.—
(A) IN GENERAL.—Not later than 60 days
after receipt of an application in accordance
with paragraph (2), the Corporation shall cer-
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tify an eligible institution to participate in the
scholarship program under this subtitle.
(B) CONTINUATION.—An eligible institu-
tion’s certification to participate in the scholar-
ship program shall continue unless such eligible
institution’s certification is revoked in accord-
ance with paragraph (5).
(4) NEW ELIGIBLE INSTITUTION.—
(A) IN GENERAL.—An eligible institution
that did not operate with at least 25 students
in the 3 years preceding the year for which the
determination is made may apply for a 1-year
provisional certification to participate in the
scholarship program under this subtitle for a
single year by providing to the Corporation not
later than July 1 of the year preceding the year
for which the determination is made—
(i) a list of the eligible institution’s
board of directors;
(ii) letters of support from not less
than 10 members of the community served
by such eligible institution;
(iii) a business plan;
(iv) an intended course of study;
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(v) assurances that the eligible insti-
tution will begin operations with not less
than 25 students;
(vi) assurances that the eligible insti-
tution will comply with all applicable re-
quirements of this subtitle; and
(vii) a statement that satisfies the re-
quirements of paragraphs (2) and (4) of
subsection (a).
(B) CERTIFICATION.—Not later than 60
days after the date of receipt of an application
described in paragraph (2), the Corporation
shall certify in writing the eligible institution’s
provisional certification to participate in the
scholarship program under this subtitle unless
the Corporation determines that good cause ex-
ists to deny certification.
(C) RENEWAL OF PROVISIONAL CERTIFI-
CATION.—After receipt of an application under
subparagraph (A) from an eligible institution
that includes a statement of the eligible institu-
tion’s budget completed not earlier than 12
months before the date such application is filed,
the Corporation shall renew an eligible institu-
tion’s provisional certification for the second
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and third years of the school’s participation in
the scholarship program under this subtitle un-
less the Corporation finds—
(i) good cause to deny the renewal, in-
cluding a finding of a pattern of violation
of requirements described in paragraph
(6)(A); or
(ii) consistent failure of 25 percent or
more of the students receiving scholarships
under this subtitle and attending such
school to make appropriate progress (as
determined by the Corporation) in aca-
demic achievement.
(D) DENIAL OF CERTIFICATION.—If provi-
sional certification or renewal of provisional cer-
tification under this paragraph is denied, then
the Corporation shall provide a written expla-
nation to the eligible institution of the reasons
for such denial.
(5) REVOCATION OF ELIGIBILITY.—
(A) IN GENERAL.—The Corporation, after
notice and hearing, may revoke an eligible insti-
tution’s certification to participate in the schol-
arship program under this subtitle for a year