I
105TH CONGRESS
1ST SESSION
H. R. 1797
To provide scholarship assistance for District of Columbia elementary and
secondary school students.
IN THE HOUSE OF REPRESENTATIVES
JUNE 5, 1997
Mr. ARMEY (for himself, Mr. LIPINSKI, Mr. RIGGS, Mr. GOODLING, Mr.
DAVIS of Virginia, Mr. FLAKE, Mr. WATTS of Oklahoma, Mr. TALENT,
Mr. BOB SCHAFFER, Mr. HOEKSTRA, Mr. HALL of Texas, Mr. ENSIGN,
Mr. BLILEY, and Mr. BOEHNER) introduced the following bill; which was
referred to the Committee on Government Reform and Oversight
A BILL
To provide scholarship assistance for District of Columbia
elementary and secondary school students.
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; PRECEDENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘District of Columbia Student Opportunity Scholarship
Act of 1997’’.
(b) FINDINGS.—Congress makes the following
findings:
(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 on the National Assessment of Edu-
cation Progress in 1994.
(C) Since 1991, there has been a net de-
cline in the reading skills of District of Colum-
bia students as measured in scores on the
standardized Comprehensive Test of Basic
Skills.
(D) At least 40 percent of District of Co-
lumbia students drop out of or leave the school
system before graduation.
(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) Nearly two-thirds of District of Colum-
bia teachers reported that violent student be-
havior is a serious impediment to teaching.
(G) Many of the District of Columbia’s
152 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 350 private schools in the District of
Columbia and the surrounding area offer a more
safe and 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 break-up, 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 choice 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 and therefore has not violated the establishment
clause of the first amendment to the Constitution. Su-
preme Court precedents include—
(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; and
(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 In-
dividual with Disabilities Education Act (20 U.S.C.
1400 et seq.). The case held that providing an inter-
preter in a religiously affiliated school did not violate
the establishment clause of the first amendment of
the Constitution.
SEC. 2. DEFINITIONS.
As used 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 eligible institution
serving a student who receives a tuition scholar-
ship under section 4(d)(1), means a public, pri-
vate, 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 4(d)(2),
means an elementary or secondary school, or an
entity that provides services to a student en-
rolled in an elementary or secondary school to
enhance such student’s achievement through ac-
tivities described in section 4(d)(2); and
(4) 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. 
3. 
DISTRICT 
OF 
COLUMBIA 
SCHOLARSHIP
CORPORATION.
(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
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.—
(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
$500,000 of the amount appropriated to carry
out this Act for any fiscal year may be used by
the Corporation for any purpose other than as-
sistance to students.
(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
Act as the ‘‘Board’’), comprised of 7 members
with 6 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 majority leader of
the Senate.
(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
Representatives.
(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
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 Act, until the President
makes the appointments as described in this
subsection.
(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-
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 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.
(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
Corporation.
(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 13(c).
SEC. 4. SCHOLARSHIPS AUTHORIZED.
(a) ELIGIBLE STUDENTS.—The Corporation is au-
thorized to award tuition scholarships under subsection
(d)(1) and enhanced achievement scholarships under sub-
section (d)(2) to students in kindergarten through grade
12—
(1) who are residents of the District of Colum-
bia; and
(2) whose family income does not exceed 185
percent of the poverty line.
(b) SCHOLARSHIP PRIORITY.—
(1) FIRST.—The Corporation shall first award
scholarships to students described in subsection (a)
who—
(A) are enrolled in a District of Columbia
public school or preparing to enter a District of
Columbia kindergarten, except that this sub-
paragraph shall apply only for academic years
1997, 1998, and 1999; or
(B) have received a scholarship from the
Corporation in the year preceding the year for
which the scholarship is awarded.
(2) SECOND.—If funds remain for a fiscal year
for awarding scholarships after awarding scholar-
ships under paragraph (1), the Corporation shall
award scholarships to students described in sub-
section (a) who are not described in paragraph (1).
(c) SPECIAL RULE.—The Corporation shall attempt
to ensure an equitable distribution of scholarship funds
to students at diverse academic achievement levels.
(d) USE OF SCHOLARSHIP.—
(1) TUITION SCHOLARSHIPS.—A tuition schol-
arship may be used for the payment of the cost of
the tuition and mandatory fees at a public, private,
or independent school located within the geographic
boundaries of the District of Columbia or the cost
of the tuition and mandatory fees at a public, pri-
vate, or independent school located within Montgom-
ery County, Maryland; Prince Georges County,
Maryland; Arlington County, Virginia; Alexandria
City, Virginia; Falls Church City, Virginia; or Fair-
fax County, Virginia.
(2) ENHANCED ACHIEVEMENT SCHOLARSHIP.—
An enhanced achievement scholarship may be used
only for the payment of the costs of tuition and
mandatory fees for, or transportation to attend, a
program of instruction provided by an eligible insti-
tution which enhances student achievement of the
core curriculum and is operated outside of regular
school hours to supplement the regular school
program.
(e) NOT SCHOOL AID.—A scholarship under this Act
shall be considered assistance to the student and shall not
be considered assistance to an eligible institution.
SEC. 5. SCHOLARSHIP PAYMENTS AND AMOUNTS.
(a) AWARDS.—From the funds made available under
this Act, the Corporation shall award a scholarship to a
student and make payments in accordance with section 10
on behalf of such student to a participating eligible institu-
tion chosen by the parent of the student.
(b) NOTIFICATION.—Each eligible institution that de-
sires to receive payment under subsection (a) shall notify
the Corporation not later than 10 days after—
(1) the date that a student receiving a scholar-
ship under this Act is enrolled, of the name, address,
and grade level of such student;
(2) the date of the withdrawal or expulsion of
any student receiving a scholarship under this Act,
of the withdrawal or expulsion; and
(3) the date that a student receiving a scholar-
ship under this Act is refused admission, of the rea-
sons for such a refusal.
(c) TUITION SCHOLARSHIP.—
(1) EQUAL TO OR BELOW POVERTY LINE.—For
a student whose family income is equal to or below
the poverty line, a tuition scholarship may not ex-
ceed the lesser of—
(A) the cost of tuition and mandatory fees
for, and transportation to attend, an eligible in-
stitution; or
(B) $3,200 for fiscal year 1998, with such
amount adjusted in proportion to changes in
the Consumer Price Index for all urban con-
sumers published by the Department of Labor
for each of fiscal years 1999 through 2002.
(2) ABOVE
POVERTY
LINE.—For a student
whose family income is greater than the poverty line,
but not more than 185 percent of the poverty line,
a tuition scholarship may not exceed the lesser of—
(A) 75 percent of the cost of tuition and
mandatory fees for, and transportation to at-
tend, an eligible institution; or
(B) $2,400 for fiscal year 1998, with such
amount adjusted in proportion to changes in
the Consumer Price Index for all urban con-
sumers published by the Department of Labor
for each of fiscal years 1999 through 2002.
(d) ENHANCED ACHIEVEMENT SCHOLARSHIP.—An
enhanced achievement scholarship may not exceed the
lesser of—
(1) the costs of tuition and mandatory fees for,
or transportation to attend, a program of instruction
at an eligible institution; or
(2) $500 for 1998, with such amount adjusted
in proportion to changes in the Consumer Price
Index for all urban consumers published by the De-
partment of Labor for each of fiscal years 1999
through 2002.
SEC. 6. CERTIFICATION OF ELIGIBLE INSTITUTIONS.
(a) APPLICATION.—An eligible institution that de-
sires to receive a payment on behalf of a student who re-
ceives a scholarship under this Act shall file an application
with the Corporation for certification for participation in
the scholarship program under this Act. Each such appli-
cation shall—
(1) demonstrate that the eligible institution has
operated with not less than 25 students during the
3 years preceding the year for which the determina-
tion is made unless the eligible institution is apply-
ing for certification as a new eligible institution
under subsection (c);
(2) contain an assurance that the eligible insti-
tution will comply with all applicable requirements of
this Act;
(3) contain an annual statement of the eligible
institution’s budget; and
(4) describe the eligible institution’s proposed
program, including personnel qualifications and fees.
(b) CERTIFICATION.—
(1) IN GENERAL.—Except as provided in para-
graph (3), not later than 60 days after receipt of an
application in accordance with subsection (a), the
Corporation shall certify an eligible institution to
participate in the scholarship program under this
Act.
(2) CONTINUATION.—An eligible institution’s
certification to participate in the scholarship pro-
gram shall continue unless such eligible institution’s