I
104TH CONGRESS
1ST SESSION
H. R. 1640
To provide a low-income school choice demonstration program.
IN THE HOUSE OF REPRESENTATIVES
MAY 15, 1995
Mr. WELDON of Florida (for himself and Mr. RIGGS) introduced the following
bill; which was referred to the Committee on Economic and Educational
Opportunities
A BILL
To provide a low-income school choice demonstration
program.
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 ‘‘Low-Income School
Choice Demonstration Act of 1995’’.
SEC. 2. PURPOSE.
The purpose of this Act is to determine the effects
on students and schools of providing financial assistance
to low-income parents to enable such parents to select the
public or private schools their children will attend.
SEC. 3. DEFINITIONS.
As used in this Act—
(1) the term ‘‘choice school’’ means any public
or private school, including a private sectarian
school or a public charter school, that is involved in
a demonstration project assisted under this Act;
(2) the term ‘‘eligible child’’ means a child in
grades 1 through 12 who is eligible for free or re-
duced price lunches under the National School
Lunch Act;
(3) the term ‘‘eligible entity’’ means a public
agency, institution, or organization, such as a State,
a State or local educational agency, a consortium of
public agencies, or a consortium of public and pri-
vate nonprofit organizations, that can demonstrate,
to the satisfaction of the Secretary, its ability to—
(A) receive, disburse, and account for Fed-
eral funds; and
(B) carry out the activities described in its
application under this Act;
(4) the term ‘‘evaluating agency’’ means any
academic institution, consortium of professionals, or
private or nonprofit organization, with demonstrated
experience in conducting evaluations, that is not an
agency or instrumentality of the Federal Govern-
ment;
(5) the term ‘‘local educational agency’’ has the
same meaning given such term in section 14101 of
the Elementary and Secondary Education Act of
1965;
(6) the term ‘‘parent’’ includes a legal guardian
or other individual acting in loco parentis;
(7) the term ‘‘school’’ means a school that pro-
vides elementary education or secondary education
(through grade 12), as determined under State law;
and
(8) the term ‘‘Secretary’’ means the Secretary
of Education.
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $30,000,000
for fiscal year 1996, and such sums as may be necessary
for each of the fiscal years 1997 and 1998, to carry out
this Act.
SEC. 5. PROGRAM AUTHORIZED.
(a) RESERVATION.—From the amount appropriated
pursuant to the authority of section 4 in any fiscal year,
the Secretary shall reserve and make available to the
Comptroller General of the United States 5 percent for
evaluation of programs assisted under this Act in accord-
ance with section 11.
(b) GRANTS.—
(1) IN
GENERAL.—From the amount appro-
priated pursuant to the authority of section 4 and
not reserved under subsection (a) for any fiscal year,
the Secretary shall award grants to eligible entities
to enable such entities to carry out at least 10, but
not more than 20, demonstration projects under
which low-income parents receive education certifi-
cates for the costs of enrolling their eligible children
in a choice school.
(2) AMOUNT.—The Secretary shall award
grants under paragraph (1) for fiscal year 1996 so
that—
(A) not more than 2 grants are awarded in
amounts of $5,000,000 or less; and
(B) grants not described in subparagraph
(A) are awarded in amounts of $3,000,000 or
less.
(3) CONTINUING ELIGIBILITY.—The Secretary
shall continue a demonstration project under this
Act by awarding a grant under paragraph (1) to an
eligible entity that received such a grant for a fiscal
year preceding the fiscal year for which the deter-
mination is made, if the Secretary determines that
such eligible entity was in compliance with this Act
for such preceding fiscal year.
(c) USE OF GRANTS.—Grants awarded under sub-
section (b) shall be used to pay the costs of—
(1) providing education certificates to low-in-
come parents to enable such parents to pay the tui-
tion, the fees, the allowable costs of transportation,
if any, and the costs of complying with section
9(a)(1), if any, for their eligible children to attend
a choice school; and
(2) administration of the demonstration project,
which shall not exceed 15 percent of the amount re-
ceived in the first fiscal year for which the eligible
entity provides education certificates under this Act
or 10 percent in any subsequent year, including—
(A) seeking the involvement of choice
schools in the demonstration project;
(B) providing information about the dem-
onstration project, and the schools involved in
the demonstration project, to parents of eligible
children;
(C) making determinations of eligibility for
participation in the demonstration project for
eligible children;
(D) selecting students to participate in the
demonstration project;
(E) determining the amount of, and issu-
ing, education certificates;
(F) compiling and maintaining such finan-
cial and programmatic records as the Secretary
may prescribe; and
(G) collecting such information about the
effects of the demonstration project as the eval-
uating agency may need to conduct the evalua-
tion described in section 11.
(d) SPECIAL RULE.—Any school participating in the
demonstration program under this Act shall comply with
title VI of the Civil Rights Act of 1964 and not discrimi-
nate on the basis of race, color, or national origin.
SEC. 6. AUTHORIZED PROJECTS; PRIORITY.
(a) AUTHORIZED PROJECTS.—The Secretary may
award a grant under this Act only for a demonstration
project that—
(1) involves at least one local educational agen-
cy that—
(A) receives funds under section 1124A of
the Elementary and Secondary Education Act
of 1965; and
(B) is among the 20 percent of local edu-
cational agencies receiving funds under section
1124A of such Act in the State and having the
highest number of children described in section
1124(c) of such Act; and
(2) includes the involvement of a sufficient
number of public and private choice schools, in the
judgment of the Secretary, to allow for a valid dem-
onstration project.
(b) PRIORITY.—In awarding grants under this Act,
the Secretary shall give priority to demonstration
projects—
(1) in which choice schools offer an enrollment
opportunity to the broadest range of eligible chil-
dren;
(2) that involve diverse types of choice schools;
and
(3) that will contribute to the geographic diver-
sity of demonstration projects assisted under this
Act, including awarding grants for demonstration
projects in States that are primarily rural and
awarding grants for demonstration projects in States
that are primarily urban.
SEC. 7. APPLICATIONS.
(a) IN GENERAL.—Any eligible entity that wishes to
receive a grant under this Act shall submit an application
to the Secretary at such time and in such manner as the
Secretary may prescribe.
(b) CONTENTS.—Each application described in sub-
section (a) shall contain—
(1) information demonstrating the eligibility for
participation in the demonstration program of the
eligible entity;
(2) with respect to choice schools—
(A) a description of the standards used by
the eligible entity to determine which public and
private schools are within a reasonable commut-
ing distance of eligible children and present a
reasonable commuting cost for such eligible
children;
(B) a description of the types of potential
choice schools that will be involved in the dem-
onstration project;
(C)(i) a description of the procedures used
to encourage public and private schools to be
involved in the demonstration project; and
(ii) a description of how the eligible entity
will annually determine the number of spaces
available for eligible children in each choice
school;
(D) an assurance that each choice school
will not impose higher standards for admission
or participation in its programs and activities
for eligible children provided education certifi-
cates under this Act than the choice school does
for other children;
(E) an assurance that each choice school
operated, for at least 1 year prior to accepting
education certificates under this Act, an edu-
cational program similar to the educational pro-
gram for which such choice school will accept
such education certificates;
(F) an assurance that the eligible entity
will terminate the involvement of any choice
school that fails to comply with the conditions
of its involvement in the demonstration project;
and
(G) a description of the extent to which
choice schools will accept education certificates
under this Act as full or partial payment for
tuition and fees;
(3) with respect to the participation in the dem-
onstration project of eligible children—
(A) a description of the procedures to be
used to make a determination of eligibility for
participation in the demonstration project for
an eligible child, which shall include—
(i) the procedures used to determine
eligibility for free or reduced price lunches
under the National School Lunch Act; or
(ii) any other procedure, subject to
the Secretary’s approval, that accurately
establishes the eligibility for such partici-
pation for an eligible child;
(B) a description of the procedures to be
used to ensure that, in selecting eligible chil-
dren to participate in the demonstration
project, the eligible entity will—
(i) apply the same criteria to both
public and private school eligible children;
and
(ii) give priority to eligible children
from the lowest income families;
(C) a description of the procedures to be
used to ensure maximum choice of schools for
participating eligible children, including proce-
dures to be used when—
(i) the number of parents provided
education certificates under this Act who
desire to enroll their eligible children in a
particular choice school exceeds the num-
ber of eligible children that the choice
school will accept; and
(ii) grant funds and funds from local
sources are insufficient to support the total
cost of choices made by parents with edu-
cation certificates under this Act; and
(D) a description of the procedures to be
used to ensure compliance with section 9(a)(1),
which may include—
(i) the direct provision of services by
a local educational agency; and
(ii) arrangements made by a local
educational agency with other service pro-
viders;
(4) with respect to the operation of the dem-
onstration project—
(A) a description of the geographic area to
be served;
(B) a timetable for carrying out the dem-
onstration project;
(C) a description of the procedures to be
used for the issuance and redemption of edu-
cation certificates under this Act;
(D) a description of the procedures by
which a choice school will make a pro rata re-
fund of the education certificate under this Act
for any participating eligible child who with-
draws from the school for any reason, before
completing 75 percent of the school attendance
period for which the education certificate was
issued;
(E) a description of the procedures to be
used to provide the parental notification de-
scribed in section 10;
(F) an assurance that the eligible entity
will place all funds received under this Act into
a separate account, and that no other funds will
be placed in such account;
(G) an assurance that the eligible entity
will provide the Secretary periodic reports on
the status of such funds;
(H) an assurance that the eligible entity
will cooperate with the Comptroller General of
the United States and the evaluating agency in
carrying out the evaluations described in section
11; and
(I) an assurance that the eligible entity
will—
(i) maintain such records as the Sec-
retary may require; and
(ii) comply with reasonable requests
from the Secretary for information; and
(5) such other assurances and information as
the Secretary may require.
SEC. 8. EDUCATION CERTIFICATES.
(a) EDUCATION CERTIFICATES.—
(1) AMOUNT.—The amount of an eligible
child’s education certificate under this Act shall be
determined by the eligible entity, but shall be an
amount that provides to the recipient of the edu-
cation certificate the maximum degree of choice in
selecting the choice school the eligible child will at-
tend.
(2) CONSIDERATIONS.—
(A) IN GENERAL.—Subject to such regula-
tions as the Secretary shall prescribe, in deter-
mining the amount of an education certificate
under this Act an eligible entity shall con-
sider—
(i) the additional reasonable costs of
transportation directly attributable to the
eligible child’s participation in the dem-
onstration project; and
(ii) the cost of complying with section
9(a)(1).
(B) SCHOOLS CHARGING TUITION.—If an
eligible child participating in a demonstration
project under this Act was attending a public or
private school that charged tuition for the year
preceding the first year of such participation,
then in determining the amount of an education
certificate for such eligible child under this Act
the eligible entity shall consider—
(i) the tuition charged by such school
for such eligible child in such preceding
year; and
(ii) the amount of the education cer-
tificates under this Act that are provided
to other eligible children.
(3) SPECIAL RULE.—An eligible entity may pro-
vide an education certificate under this Act to the
parent of an eligible child who chooses to attend a
school that does not charge tuition or fees, to pay
the additional reasonable costs of transportation di-
rectly attributable to the eligible child’s participation
in the demonstration project or the cost of comply-
ing with section 9(a)(1).
(b) ADJUSTMENT.—The amount of the education cer-
tificate for a fiscal year may be adjusted in the second
and third years of an eligible child’s participation in a
demonstration project under this Act to reflect any in-
crease or decrease in the tuition, fees, or transportation
costs directly attributable to that eligible child’s continued
attendance at a choice school, but shall not be increased
for this purpose by more than 10 percent of the amount
of the education certificate for the fiscal year preceding
the fiscal year for which the determination is made. The
amount of the education certificate may also be adjusted
in any fiscal year to comply with section 9(a)(1).
(c) MAXIMUM AMOUNT.—Notwithstanding any other
provision of this section, the amount of an eligible child’s
education certificate shall not exceed the per pupil expend-
iture for elementary or secondary education, as appro-
priate, by the local educational agency in which the public
school to which the eligible child would normally be as-
signed is located for the fiscal year preceding the fiscal
year for which the determination is made.
(d) INCOME.—An education certificate under this
Act, and funds provided under the education certificate,
shall not be treated as income of the parents for purposes
of Federal tax laws or for determining eligibility for any
other Federal program.
SEC. 9. EFFECT ON OTHER PROGRAMS; USE OF SCHOOL
LUNCH DATA.
(a) EFFECT ON OTHER PROGRAMS.—
(1) IN GENERAL.—An eligible child participat-
ing in a demonstration project under this Act, who,
in the absence of such a demonstration project,
would have received services under part A of title I
of the Elementary and Secondary Education Act of
1965 shall be provided such services.
(2) PART B OF THE INDIVIDUALS WITH DIS-
ABILITIES
EDUCATION
ACT.—Nothing in this Act
shall be construed to affect the requirements of part
B of the Individuals with Disabilities Education Act.
(b) COUNTING OF ELIGIBLE CHILDREN.—Notwith-
standing any other provision of law, any local educational
agency participating in a demonstration project under this
Act may count eligible children who, in the absence of such
a demonstration project, would attend the schools of such
agency, for purposes of receiving funds under any program
administered by the Secretary.
(c) SPECIAL RULE.—Notwithstanding section 9 of
the National School Lunch Act, an eligible entity receiving
a grant under this Act may use information collected for
the purpose of determining eligibility for free or reduced
price lunches to determine an eligible child’s eligibility to
participate in a demonstration project under this Act and,
if needed, to rank families by income, in accordance with
section 7(b)(3)(B)(ii). All such information shall otherwise
remain confidential, and information pertaining to income
may be disclosed only to persons who need that informa-
tion for the purposes of a demonstration project under this
Act.
(d) CONSTRUCTION.—
(1) OTHER INSTITUTIONS.—Nothing in this Act
shall be construed to supersede or modify any provi-
sion of a State constitution or State law that pro-
hibits the expenditure of public funds in or by reli-
gious or other private institutions, except that no
provision of a State constitution or State law shall
be construed or applied to prohibit any grantee from
paying the administrative costs of a program under
this Act or to prohibit the expenditure in or by reli-
gious or other private institutions of any Federal
funds provided under this Act.
(2) DESEGREGATION PLANS.—Nothing in this
Act shall be construed to interfere with any desegre-
gation plans that involve school attendance areas af-
fected by this Act.
SEC. 10. PARENTAL NOTIFICATION.
Each eligible entity receiving a grant under this Act
shall provide timely notice of the demonstration project
to parents of eligible children residing in the area to be
served by the demonstration project. At a minimum, such
notice shall—
(1) describe the demonstration project;
(2) describe the eligibility requirements for par-
ticipation in the demonstration project;
(3) describe the information needed to make a
determination of eligibility for participation in the
demonstration project for an eligible child;
(4) describe the selection procedures to be used
if the number of eligible children seeking to partici-
pate in the demonstration project exceeds the num-
ber that can be accommodated in the demonstration
project;
(5) provide information about each choice
school, including information about any admission
requirements or criteria for each choice school par-
ticipating in the demonstration project; and
(6) include the schedule for parents to apply for
their eligible children to participate in the dem-
onstration project.
SEC. 11. 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 demonstration
program under this Act.
(2) ANNUAL EVALUATION REQUIREMENT.—The
contract described in paragraph (1) shall require the
evaluating agency entering into such contract to an-
nually evaluate each demonstration project under
this Act in accordance with the evaluation criteria
described in subsection (b).
(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—
(A) the findings of each annual evaluation
under paragraph (1); and
(B) a copy of each report received pursu-
ant to section 12(a) for the applicable year.
(b) EVALUATION CRITERIA.—The Comptroller Gen-
eral of the United States, in consultation with the Sec-
retary, shall establish minimum criteria for evaluating the
demonstration program under this Act. Such criteria shall
provide for—
(1) a description of the implementation of each
demonstration project under this Act and the dem-
onstration project’s effects on all participants,
schools, and communities in the demonstration
project area, with particular attention given to the
effect of parent participation in the life of the school
and the level of parental satisfaction with the dem-
onstration program; and
(2) a comparison of the educational achieve-
ment of all students in the demonstration project
area, including a comparison of—
(A) students receiving education certifi-
cates under this Act; and
(B) students not receiving education cer-
tificates under this Act.
SEC. 12. REPORTS.
(a) REPORT BY GRANT RECIPIENT.—Each eligible
entity receiving a grant under this Act shall submit to the
evaluating agency entering into the contract under section
11(a)(1) an annual report regarding the demonstration
project under this Act. Each such report shall be submit-
ted at such time, in such manner, and accompanied by
such information, as such evaluating agency may require.
(b) REPORTS BY COMPTROLLER GENERAL.—
(1) ANNUAL REPORTS.—The Comptroller Gen-
eral of the United States shall report annually to the
Congress on the findings of the annual evaluation
under section 11(a)(2) of each demonstration project
under this Act. Each such report shall contain a
copy of—
(A) the annual evaluation under section
11(a)(2) of each demonstration project under
this Act; and
(B) each report received under subsection
(a) for the applicable year.
(2) FINAL REPORT.—The Comptroller General
shall submit a final report to the Congress within 9
months after the conclusion of the demonstration
program under this Act that summarizes the find-
ings of the annual evaluations conducted pursuant to
section 11(a)(2).
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HR 1640 IH——2