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(3) TRANSITION
RULE
FOR
1997.—Section
118(g) of such Act (D.C. Code, sec. 42–218(g)) is
amended to read as follows:
‘‘(g) With respect to property reported and delivered
on or before January 2, 1998, pursuant to section
117(d)(2), the Mayor shall cause the newspaper notice re-
quired by subsection (a) and the notice mailed under sub-
section (d) to be completed no later than May 1, 1998.’’.
(4) IMPOSITION OF ONE-YEAR WAITING PERIOD
FOR SALE OF PROPERTY.—The first sentence of sec-
tion 122(a) of such Act (D.C. Code, sec. 42–222(a))
is amended by striking ‘‘may be sold’’ and inserting
the following: ‘‘which remains unclaimed one year
after the delivery to the Mayor may be sold’’.
(5) SPECIAL
RULE
FOR
SALE
OF
PROPERTY
CONSISTING OF SECURITIES.—Section 122 of such
Act (D.C. Code, sec. 42–222) is amended by adding
at the end the following new subsection:
‘‘(d)(1) Notwithstanding subsection (a), abandoned
property consisting of securities delivered to the Mayor
under this Act may not be sold under this section until
the expiration of the 3-year period which begins on the
date the property is delivered to the Mayor, except that
the Mayor may sell the property prior to the expiration
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of such period if the Mayor finds that sale at such time
is in the best interests of the District of Columbia.
‘‘(2) If the Mayor sells any property described in
paragraph (1) prior to the expiration of the 3-year period
described in such paragraph, any person making a claim
with respect to the property pursuant to this Act prior
to the expiration of such period is entitled to either the
proceeds of the sale of the securities or the market value
of the securities at the time the claim is made, whichever
is greater, less any deduction for fees pursuant section
123(c). If the Mayor does not sell any such property prior
to the expiration of such 3-year period, a person may make
a claim with respect to the property in accordance with
section 124 and other applicable provisions of this Act.’’.
(6) STATUTE OF LIMITATIONS.—Section 129(b)
of such Act (D.C. Code, sec. 42–229(b)) is amended
to read as follows:
‘‘(b) No action or proceeding may be commenced by
the Mayor to enforce any provision of this Act with respect
to the reporting, delivery, or payment of property more
than 10 years after the holder specifically identified the
property in a report filed with the Mayor or gave express
notice to the Mayor of a dispute regarding the property.
The period of limitation shall be tolled in the absence of
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such a report or other express notice, or by the filing of
a report that is fraudulent.’’.
(f) INTEREST AND PENALTIES.—
(1) IN
GENERAL.—Section 135 of such Act
(D.C. Code, sec. 42–235) is amended by striking
subsections (b), (c), and (d) and inserting the follow-
ing:
‘‘(b) Except as otherwise provided in subsection (c),
a person who fails to report, pay, or deliver property with-
in the time prescribed under this Act, or fails to perform
other duties imposed by this Act, shall pay (in addition
to the interest required under subsection (a)) a civil pen-
alty of $200 for each day the report, payment, or delivery
is withheld or the duty is not performed, up to a maximum
of $10,000.
‘‘(c) A person who willfully fails to report, pay, or
deliver property within the time prescribed under this Act,
or fails to perform other duties imposed by this Act, shall
pay (in addition to the interest required under subsection
(a)) a civil penalty of $1,000 for each day the report, pay-
ment, or delivery is withheld or the duty is not performed,
up to a maximum of $25,000, plus 25 percent of the value
of any property that should have been paid or delivered.
‘‘(d) The Mayor may waive the imposition of any in-
terest or penalty (or any part thereof) against any person
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under subsection (b) or (c) if the person’s failure to pay
or deliver property is satisfactorily explained to the Mayor
and if the failure has resulted from a mistake by the per-
son in understanding or applying the law or the facts in-
volved.’’.
(2) FAILURE OF HOLDER TO EXERCISE DUE
DILIGENCE WITH RESPECT TO ITEMS SUBJECT TO
REPORTING.—Section 135 of such Act (D.C. Code,
sec. 42–235) is amended by adding at the end the
following new subsection:
‘‘(f) A holder who fails to exercise due diligence with
respect to information required to be reported under sec-
tion 117 shall pay (in addition to any other interest or
penalty which may be imposed under this section) a pen-
alty of $10 with respect to each item involved.’’.
(g) MISCELLANEOUS REVISIONS.—
(1) RESTRICTION ON AMOUNT CHARGED FOR
HOLDING CERTAIN BANK DEPOSITS AND FUNDS.—
(A) Section 106(e) of such Act (D.C. Code, sec. 42–
206(e)) is amended by adding at the end the follow-
ing new paragraph:
‘‘(4) The amount of the deduction is limited to an
amount that is not unconscionable.’’.
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(B) Section 106(f) of such Act (D.C. Code, sec.
42–206(f)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(3) The amount of the deduction is limited to an
amount that is not unconscionable.’’.
(2) CLARIFICATION OF APPLICATION OF LAW
TO
WAGES
AND
OTHER
COMPENSATION.—Section
116 of such Act (D.C. Code, sec. 42–216) is amend-
ed by striking ‘‘Unpaid wages or outstanding payroll
checks’’ and inserting ‘‘Wages or other compensation
for personal services’’.
(h) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on the date of the en-
actment of this Act.
(2) TRANSITION
RULE.—In the case of any
property which is presumed to be abandoned under
the Uniform Disposition of Unclaimed Property Act
of 1980 (as amended by this Act) during the 6-
month period which begins on the date of the enact-
ment of this Act and which would not be presumed
to be abandoned under such Act during such period
but for the amendments made by this Act, the prop-
erty may not be presumed to be abandoned under
such Act prior to the expiration of such period.
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SEC. 158. (a) PROHIBITING USE OF BORROWING TO
FINANCE OR REFUND ACCUMULATED GENERAL FUND
DEFICIT.—
(1) IN
GENERAL.—None of the funds made
available in this Act or in any other Act may be used
by the District of Columbia (including the District
of Columbia Financial Responsibility and Manage-
ment Assistance Authority) at any time before, on,
or after the date of the enactment of this Act to ob-
tain borrowing to finance or refund the accumulated
general fund deficit of the District of Columbia ex-
isting as of September 30, 1997.
(2) CONFORMING
AMENDMENT
RELATING
TO
ADVANCES
FROM
TREASURY.—Section 602 of the
District of Columbia Revenue Act of 1939, as added
by section 11402 of the Balanced Budget Act of
1997, is hereby repealed.
(3) CONFORMING
AMENDMENT
RELATING
TO
GENERAL OBLIGATION BONDS OF DISTRICT OF CO-
LUMBIA.—Section 461(a) of the District of Colum-
bia Home Rule Act (D.C. Code, sec. 47–321(a)), as
amended by section 11405 of the Balanced Budget
Act of 1997, is amended—
(A) in paragraph (1), by striking ‘‘to fi-
nance or refund the outstanding accumulated
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operating deficit of the general fund of the Dis-
trict of $500,000,000, existing as of September
30, 1997,’’; and
(B) in paragraph (2), by striking ‘‘existing
as of September 30, 1990’’.
(4) EFFECTIVE DATE OF AMENDMENTS.—The
amendments made by paragraphs (2) and (3) shall
take effect on the day after the date of the enact-
ment of the Balanced Budget Act of 1997.
(b) RESTRICTIONS ON DEBT RESTRUCTURING.—
(1) IN GENERAL.—Subpart 1 of part E of title
IV of the District of Columbia Home Rule Act is
amended by adding at the end the following new sec-
tion:
‘‘RESTRICTIONS ON RESTRUCTURING OF DEBT
‘‘SEC. 468. Notwithstanding any other provision of
this title, the District may not borrow any funds or issue
any bonds, notes, or other obligations to repay any other
borrowing of funds or issuance of bonds, notes, or other
obligations unless—
‘‘(1) the aggregate cost to the District of the
new borrowing or issuance does not exceed the ag-
gregate cost of the original borrowing or issuance;
and
‘‘(2) the date provided for the final repayment
of the new borrowing or issuance is not later than
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the date provided for the final repayment of the
original borrowing or issuance.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subpart 1 of part E of title IV of the Dis-
trict of Columbia Home Rule Act is amended by
adding at the end the following new item:
‘‘Sec. 468. Restrictions on restructuring of debt.’’.
(c) REQUIRING ALL BONDS TO BE SOLD AT PUBLIC
SALE.—
(1) IN GENERAL.—Section 466 of the District
of Columbia Home Rule Act (D.C. Code, sec. 47–
326), as amended by section 11504 of the Balanced
Budget Act of 1997, is amended by striking ‘‘may
be sold at a private sale’’ and all that follows
through ‘‘may be sold’’ and inserting ‘‘shall be sold’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect as if included in
the enactment of section 11504 of the Balanced
Budget Act of 1997.
REOPENING OF PENNSYLVANIA AVENUE
SEC. 159. Notwithstanding any other provision of law
or any other rule or regulation, beginning January 1,
1998, the portion of Pennsylvania Avenue in front of the
White House shall be reopened to regular vehicular traffic.
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MISCELLANEOUS PROVISIONS
SEC. 160. (a) DEPOSIT OF ANNUAL FEDERAL CON-
TRIBUTION WITH AUTHORITY.—
(1) IN GENERAL.—The District of Columbia Fi-
nancial Responsibility and Management Assistance
Act of 1995, as amended by section 11601(b)(2) of
the Balanced Budget Act of 1997, is amended by in-
serting after section 204 the following new section:
‘‘SEC. 205. DEPOSIT OF ANNUAL FEDERAL CONTRIBUTION
WITH AUTHORITY.
‘‘(a) IN GENERAL.—
‘‘(1) DEPOSIT INTO ESCROW ACCOUNT.—In the
case of a fiscal year which is a control year, the Sec-
retary of the Treasury shall deposit any Federal
contribution to the District of Columbia for the year
authorized under section 11601(c)(2) of the Bal-
anced Budget Act of 1997 into an escrow account
held by the Authority, which shall allocate the funds
to the Mayor at such intervals and in accordance
with such terms and conditions as it considers ap-
propriate to implement the financial plan for the
year. In establishing such terms and conditions, the
Authority shall give priority to using the Federal
contribution for cash flow management and the pay-
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ment of outstanding bills owed by the District gov-
ernment.
‘‘(2) EXCEPTION FOR AMOUNTS WITHHELD FOR
ADVANCES.—Paragraph (1) shall not apply with re-
spect to any portion of the Federal contribution
which is withheld by the Secretary of the Treasury
in accordance with section 605(b)(2) of title VI of
the District of Columbia Revenue Act of 1939 to re-
imburse the Secretary for advances made under title
VI of such Act.
‘‘(b) EXPENDITURE OF FUNDS FROM ACCOUNT IN
ACCORDANCE WITH AUTHORITY INSTRUCTIONS.—Any
funds allocated by the Authority to the Mayor from the
escrow account described in paragraph (1) may be ex-
pended by the Mayor only in accordance with the terms
and conditions established by the Authority at the time
the funds are allocated.’’.
(2) CLERICAL AMENDMENT.—The table of con-
tents for such Act is amended by inserting after the
item relating to section 204 the following new item:
‘‘Sec. 205. Deposit of annual Federal contribution with Authority.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect as if included in
the enactment of the Balanced Budget Act of 1997.
(b) DISHONORED CHECK COLLECTION.—The Act en-
titled ‘‘An Act to authorize the Commissioners of the Dis-
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trict of Columbia to prescribe penalties for the handling
and collection of dishonored checks’’, approved September
28, 1965 (D.C. Code, sec. 1–357) is amended—
(1) in subsection (a) by inserting after the third
sentence the following: ‘‘The Mayor may enter into
a contract to collect the amount of the original obli-
gation.’’; and
(2) by adding at the end the following new sub-
sections:
‘‘(c) In a case in which the amount of a dishonored
or unpaid check is collected as a result of a contract, the
Mayor shall collect any costs or expenses incurred to col-
lect such amount from such person who gives or causes
to be given, in payment of any obligation or liability due
the government of the District of Columbia, a check which
is subsequently dishonored or not duly paid. In a case in
which the amount of a dishonored or unpaid check is col-
lected as a result of an action at law or in equity, such
costs and expenses shall include litigation expenses and
attorney’s fees.
‘‘(d) An action at law or in equity for the recovery
of any amount owed to the District as a result of sub-
section (c), including any litigation expenses or attorney’s
fees may be initiated—
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‘‘(1) by the Corporation Counsel of the District
of Columbia; or
‘‘(2) in a case in which the Corporation Counsel
does not exercise his or her authority, by the person
who provides collection services as a result of a con-
tract with the Mayor.
‘‘(e) Nothing in this section may be construed to
eliminate the Mayor’s exclusive authority with respect to
any obligations and liabilities of the District of Colum-
bia.’’.
(c) REQUIRING DISTRICT GOVERNMENT OFFICIALS
TO PROVIDE INFORMATION UPON REQUEST TO CONGRES-
SIONAL COMMITTEES.—Notwithstanding any provision of
law or any other rule or regulation, during fiscal year
1998 and each succeeding fiscal year, at the request of
the Committee on Appropriations of the House of Rep-
resentatives, the Committee on Appropriations of the Sen-
ate, the Committee on Government Reform and Oversight
of the House of Representatives, or the Committee on
Governmental Affairs of the Senate, any officer or em-
ployee of the District of Columbia government (including
any officer or employee of the District of Columbia Finan-
cial Responsibility and Management Assistance Authority)
shall provide the Committee with such information and
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materials as the Committee may require, within such
deadline as the Committee may require.
(d) PROHIBITING CERTAIN HELICOPTER FLIGHTS
OVER DISTRICT.—None of the funds made available in
this Act or in any other Act may be used by the District
of Columbia to grant a permit or license to any person
for purposes of any business in which the person provides
tours of any portion of the District of Columbia by heli-
copter.
(e) CONFORMING REFERENCES TO INTERNAL REVE-
NUE CODE OF 1986.—Section 4(28A) of the District of
Columbia Income and Franchise Act of 1947 (D.C. Code,
sec. 47–1801.4(28A)) is amended to read as follows:
‘‘(28A) The term ‘Internal Revenue Code of
1986’ means the Internal Revenue Code of 1986
(100 Stat. 2085; 26 U.S.C. 1 et seq.), as amended
through August 20, 1996. The provisions of the In-
ternal Revenue Code of 1986 shall be effective on
the same dates that they are effective for Federal
tax purposes.’’.
(f) STANDARD FOR REVIEW OF RECOMMENDATIONS
OF BUSINESS REGULATORY REFORM COMMISSION IN RE-
VIEW
OF
REGULATIONS
BY
AUTHORITY.—Section
11701(a)(1) of the Balanced Budget Act of 1997 is
amended by striking the second sentence and inserting the
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following: ‘‘In carrying out such review, the Authority
shall include an explicit reference to each recommendation
made by the Business Regulatory Reform Commission
pursuant to the Business Regulatory Reform Commission
Act of 1994 (D.C. Code, sec. 2–4101 et seq.), together
with specific findings and conclusions with respect to each
such recommendation.’’.
(g) TECHNICAL CORRECTIONS RELATING TO BAL-
ANCED BUDGET ACT OF 1997.—(1) Effective as if in-
cluded in the enactment of the Balanced Budget Act of
1997, section 453(c) of the District of Columbia Home
Rule Act (D.C. Code, sec. 47–304.1(c)), as amended by
section 11243(d) of the Balanced Budget Act of 1997, is
amended to read as follows:
‘‘(c) Subsection (a) shall not apply to amounts appro-
priated or otherwise made available to the Council, the
District of Columbia Financial Responsibility and Man-
agement Assistance Authority established under section
101(a) of the District of Columbia Financial Responsibil-
ity and Management Assistance Act of 1995, or the Dis-
trict of Columbia Water and Sewer Authority established
pursuant to the Water and Sewer Authority Establish-
ment and Department of Public Works Reorganization
Act of 1996.’’.
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(2) Section 11201(g)(2)(A)(ii) of the Balanced Budg-
et Act of 1997 is amended—
(A) in the heading, by striking ‘‘DEPARTMENT
OF PARKS AND RECREATION’’ and inserting ‘‘PARKS
AUTHORITY’’; and
(B) by striking ‘‘Department of Parks and
Recreation’’ and inserting ‘‘Parks Authority’’.
This title may be cited as the ‘‘District of Columbia
Appropriations Act, 1998’’.
TITLE II—DISTRICT OF COLUM-
BIA MEDICAL LIABILITY RE-
FORM
Subtitle A—Standards for Health
Care 
Liability 
Actions 
and
Claims in the District of Colum-
bia
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘District of Columbia
Medical Liability Reform Act of 1997’’.
SEC. 202. STATUTE OF LIMITATIONS.
A District of Columbia health care liability action
may not be brought after the expiration of the 2-year pe-
riod that begins on the date on which the alleged injury
that is the subject of the action was discovered or should
reasonably have been discovered, but in no case after the
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expiration of the 5-year period that begins on the date
the alleged injury occurred.
SEC. 203. TREATMENT OF NONECONOMIC DAMAGES.
(a) LIMITATION ON NONECONOMIC DAMAGES.—The
total amount of noneconomic damages that may be award-
ed to a claimant for losses resulting from the injury which
is the subject of a District of Columbia health care liability
action may not exceed $250,000, regardless of the number
of parties against whom the action is brought or the num-
ber of actions brought with respect to the injury.
(b) JOINT AND SEVERAL LIABILITY.—In any District
of Columbia health care liability action, a defendant shall
be liable only for the amount of noneconomic damages at-
tributable to such defendant in direct proportion to such
defendant’s share of fault or responsibility for the claim-
ant’s actual damages, as determined by the trier of fact.
In all such cases, the liability of a defendant for non-
economic damages shall be several and not joint.
SEC. 204. CRITERIA FOR AWARDING OF PUNITIVE DAM-
AGES; LIMITATION ON AMOUNT AWARDED.
(a) IN GENERAL.—Punitive damages may, to the ex-
tent permitted by applicable District of Columbia law, be
awarded in any District of Columbia health care liability
action if the claimant establishes by clear and convincing
evidence that the harm suffered was the result of—
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(1) conduct specifically intended to cause harm,
or
(2) conduct manifesting a conscious, flagrant
indifference to the rights or safety of others.
(b) PROPORTIONAL AWARDS.—The amount of puni-
tive damages that may be awarded in any District of Co-
lumbia health care liability action may not exceed 3 times
the amount of damages awarded to the claimant for eco-
nomic loss, or $250,000, whichever is greater. This sub-
section shall be applied by the court and shall not be dis-
closed to the jury.
(c) APPLICABILITY.—This subsection shall apply to
any District of Columbia health care liability action
brought on any theory under which punitive damages are
sought. This subsection does not create a cause of action
for punitive damages. This subsection does not preempt
or supersede any law to the extent that such law would
further limit the award of punitive damages.
(d) BIFURCATION.—At the request of any party, the
trier of fact shall consider in a separate proceeding wheth-
er punitive damages are to be awarded and the amount
of such award. If a separate proceeding is requested, evi-
dence relevant only to the claim of punitive damages, as
determined by applicable District of Columbia law, shall
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be inadmissible in any proceeding to determine whether
actual damages are to be awarded.
SEC. 205. TREATMENT OF PUNITIVE DAMAGES IN ACTIONS
RELATING TO DRUGS OR MEDICAL DEVICES.
(a) PROHIBITING AWARD OF PUNITIVE DAMAGES
WITH RESPECT TO CERTAIN APPROVED DRUGS AND DE-
VICES.—
(1) IN GENERAL.—In any District of Columbia
health care liability action, punitive damages may
not be awarded against a manufacturer or product
seller of a drug or medical device which caused the
claimant’s harm if—
(A) such drug or device was subject to pre-
market approval by the Food and Drug Admin-
istration with respect to the safety of the for-
mulation or performance of the aspect of such
drug or device which caused the claimant’s
harm, or the adequacy of the packaging or la-
beling of such drug or device which caused the
harm, and such drug, device, packaging, or la-
beling was approved by the Food and Drug Ad-
ministration; or
(B) the drug is generally recognized as
safe and effective pursuant to conditions estab-
lished by the Food and Drug Administration
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and applicable regulations, including packaging
and labeling regulations.
(2) EXCEPTION.—Paragraph (1) shall not
apply in any case in which the defendant, before or
after premarket approval of a drug or device—
(A) intentionally and wrongfully withheld
from or misrepresented to the Food and Drug
Administration information concerning such
drug or device required to be submitted under
the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 301 et seq.) or section 351 of the Public
Health Service Act (42 U.S.C. 262) that is ma-
terial and relevant to the harm suffered by the
claimant, or
(C) made an illegal payment to an official
or employee of the Food and Drug Administra-
tion for the purpose of securing or maintaining
approval of such drug or device.
(b) SPECIAL RULE REGARDING CLAIMS RELATING
TO PACKAGING.—In a District of Columbia health care
liability action relating to the adequacy of the packaging
or labeling of a drug which is required to have tamper-
resistant packaging under regulations of the Secretary of
Health and Human Services (including labeling regula-
tions related to such packaging), the manufacturer or
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product seller of the drug shall not be held liable for puni-
tive damages unless such packaging or labeling is found
by the court by clear and convincing evidence to be sub-
stantially out of compliance with such regulations.
(c) DEFINITIONS.—In this section, the following defi-
nitions apply:
(1) DRUG.—The term ‘‘drug’’ has the meaning
given such term in section 201(g)(1) of the Federal
Food, 
Drug, 
and 
Cosmetic 
Act 
(21 
U.S.C.
321(g)(1)).
(2) MEDICAL DEVICE.—The term ‘‘medical de-
vice’’ has the meaning given such term in section
201(h) of the Federal Food, Drug, and Cosmetic
Act (21 U.S.C. 321(h)).
(3) PRODUCT SELLER.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), the term ‘‘product seller’’ means a
person who, in the course of a business con-
ducted for that purpose—
(i) sells, distributes, rents, leases, pre-
pares, blends, packages, labels, or is other-
wise involved in placing, a product in the
stream of commerce, or
(ii) installs, repairs, or maintains the
harm-causing aspect of a product.
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(B) EXCLUSION.—Such term does not in-
clude—
(i) a seller or lessor of real property;
(ii) a provider of professional services
in any case in which the sale or use of a
product is incidental to the transaction and
the essence of the transaction is the fur-
nishing of judgment, skill, or services; or
(iii) any person who—
(I) acts in only a financial capac-
ity with respect to the sale of a prod-
uct; or
(II) leases a product under a
lease arrangement in which the selec-
tion, possession, maintenance, and op-
eration of the product are controlled
by a person other than the lessor.
SEC. 206. PERIODIC PAYMENTS FOR FUTURE LOSSES.
(a) IN GENERAL.—In any District of Columbia
health care liability action in which the damages awarded
for future economic and noneconomic loss exceeds
$50,000, a person shall not be required to pay such dam-
ages in a single, lump-sum payment, but shall be per-
mitted to make such payments periodically based on when
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the damages are found likely to occur, as such payments
are determined by the court.
(b) FINALITY OF JUDGMENT.—The judgment of the
court awarding periodic payments under this section may
not, in the absence of fraud, be reopened at any time to
contest, amend, or modify the schedule or amount of the
payments.
(c) LUMP-SUM SETTLEMENTS.—This section may
not be construed to preclude a settlement providing for
a single, lump-sum payment.
SEC. 207. TREATMENT OF COLLATERAL SOURCE PAY-
MENTS.
(a) INTRODUCTION INTO EVIDENCE.—In any Dis-
trict of Columbia health care liability action, any defend-
ant may introduce evidence of collateral source payments.
If any defendant elects to introduce such evidence, the
claimant may introduce evidence of any amount paid or
contributed or reasonably likely to be paid or contributed
in the future by or on behalf of the claimant to secure
the right to such collateral source payments.
(b) NO SUBROGATION.—No provider of collateral
source payments may recover any amount against the
claimant or receive any lien or credit against the claim-
ant’s recovery or be equitably or legally subrogated the
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right of the claimant in a District of Columbia health care
liability action.
(c) APPLICATION TO SETTLEMENTS.—This section
shall apply to an action that is settled as well as an action
that is resolved by a fact finder.
(d) COLLATERAL SOURCE PAYMENTS DEFINED.—In
this section, the term ‘‘collateral source payments’’ means
any amount paid or reasonably likely to be paid in the
future to or on behalf of a claimant, or any service, prod-
uct, or other benefit provided or reasonably likely to be
provided in the future to or on behalf of a claimant, as
a result of an injury or wrongful death, pursuant to—
(1) any State or Federal health, sickness, in-
come-disability, accident or workers’ compensation
Act;
(2) any health, sickness, income-disability, or
accident insurance that provides health benefits or
income-disability coverage;
(3) any contract or agreement of any group, or-
ganization, partnership, or corporation to provide,
pay for, or reimburse the cost of medical, hospital,
dental, or income disability benefits; and
(4) any other publicly or privately funded pro-
gram.
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SEC. 208. APPLICATION OF STANDARDS TO CLAIMS RE-
SOLVED THROUGH ALTERNATIVE DISPUTE
RESOLUTION.
(a) IN GENERAL.—Any alternative dispute resolution
system used to resolve a District of Columbia health care
liability action or claim shall contain provisions relating
to statute of limitations, non-economic damages, joint and
several liability, punitive damages, collateral source rule,
and periodic payments which are identical to the provi-
sions relating to such matters in this title.
(b) ALTERNATIVE DISPUTE RESOLUTION SYSTEM
DEFINED.—In this title, the term ‘‘alternative dispute res-
olution system’’ means a system that provides for the reso-
lution of District of Columbia health care liability claims
in a manner other than through District of Columbia
health care liability actions.
Subtitle B—General Provisions
SEC. 211. GENERAL DEFINITIONS.
(a) DISTRICT OF COLUMBIA HEALTH CARE LIABIL-
ITY ACTION.—
(1) IN GENERAL.—In this title, the term ‘‘Dis-
trict of Columbia health care liability action’’ means
a civil action brought against a health care provider,
an entity which is obligated to provide or pay for
health benefits under any health benefit plan (in-
cluding any person or entity acting under a contract
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or arrangement to provide or administer any health
benefit), or the manufacturer, distributor, supplier,
marketer, promoter, or seller of a medical product,
in which the claimant alleges a claim (including
third party claims, cross claims, counter claims, or
distribution claims) based upon the provision of (or
the failure to provide or pay for) health care services
or the use of a medical product within the District
of Columbia, regardless of the theory of liability on
which the claim is based or the number of plaintiffs,
defendants, or causes of action.
(2) 
HEALTH
BENEFIT
PLAN.—The 
term
‘‘health benefit plan’’ means—
(A) a hospital or medical expense incurred
policy or certificate,
(B) a hospital or medical service plan con-
tract,
(C) a health maintenance subscriber con-
tract, or
(D) a Medicare+Choice plan (as described
in section 1859(b)(1) of the Social Security
Act),
that provides benefits with respect to health care
services.
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(3) HEALTH
CARE
PROVIDER.—The term
‘‘health care provider’’ means any person that is en-
gaged in the delivery of health care services in the
District of Columbia and that is required by the
laws or regulations of the District of Columbia to be
licensed or certified to engage in the delivery of such
services in the District of Columbia, and includes an
employee of the government of the District of Co-
lumbia (including an independent agency of the Dis-
trict of Columbia).
(b) DISTRICT OF COLUMBIA HEALTH CARE LIABIL-
ITY CLAIM.—The term ‘‘District of Columbia health care
liability claim’’ means a claim in which the claimant al-
leges that injury was caused by the provision of (or the
failure to provide) health care services within the District
of Columbia.
(c) OTHER DEFINITIONS.—As used in this title:
(1) ACTUAL DAMAGES.—The term ‘‘actual dam-
ages’’ means damages awarded to pay for economic
loss.
(2) CLAIMANT.—The term ‘‘claimant’’ means
any person who brings a District of Columbia health
care liability action and any person on whose behalf
such an action is brought. If such action is brought
through or on behalf of an estate, the term includes
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the claimant’s decedent. If such action is brought
through or on behalf of a minor or incompetent, the
term includes the claimant’s legal guardian.
(3) CLEAR AND CONVINCING EVIDENCE.—The
term ‘‘clear and convincing evidence’’ is that meas-
ure or degree of proof that will produce in the mind
of the trier of fact a firm belief or conviction as to
the truth of the allegations sought to be established.
Such measure or degree of proof is more than that
required under preponderance of the evidence but
less than that required for proof beyond a reason-
able doubt.
(4) ECONOMIC
LOSS.—The term ‘‘economic
loss’’ means any pecuniary loss resulting from injury
(including the loss of earnings or other benefits re-
lated to employment, medical expense loss, replace-
ment services loss, loss due to death, burial costs,
and loss of business or employment opportunities),
to the extent recovery for such loss is allowed under
applicable District of Columbia law.
(5) HARM.—The term ‘‘harm’’ means any le-
gally cognizable wrong or injury for which punitive
damages may be imposed.
(6) HEALTH CARE SERVICE.—The term ‘‘health
care service’’ means any service for which payment
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may be made under a health benefit plan including
services related to the delivery or administration of
such service.
(7) NONECONOMIC DAMAGES.—The term ‘‘non-
economic damages’’ means damages paid to an indi-
vidual for pain and suffering, inconvenience, emo-
tional distress, mental anguish, loss of consortium,
injury to reputation, humiliation, and other nonpecu-
niary losses.
(8) PERSON.—The term ‘‘person’’ means any
individual, corporation, company, association, firm,
partnership, society, joint stock company, or any
other entity, including any governmental entity.
(9) PUNITIVE DAMAGES.—The term ‘‘punitive
damages’’ means damages awarded against any per-
son not to compensate for actual injury suffered, but
to punish or deter such person or others from en-
gaging in similar behavior in the future.
SEC. 212. NONAPPLICATION TO CERTAIN ACTIONS; PRE-
EMPTION.
(a) APPLICABILITY.—This title shall not apply to—
(1) an action for damages arising from a vac-
cine-related injury or death to the extent that title
XXI of the Public Health Service Act applies to the
action, or
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(2) an action under the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1001 et
seq.).
(b) PREEMPTION.—This title shall preempt any Dis-
trict of Columbia law to the extent such law is inconsistent
with the limitations contained in this title. This title shall
not preempt any District of Columbia law that provides
for defenses or places limitations on a person’s liability
in addition to those contained in this title or otherwise
imposes greater restrictions than those provided in this
title.
(c) EFFECT ON SOVEREIGN IMMUNITY AND CHOICE
OF LAW OR VENUE.—Nothing in this title may be con-
strued to—
(1) waive or affect any defense of sovereign im-
munity asserted by the District of Columbia under
any provision of law;
(2) waive or affect any defense of sovereign im-
munity asserted by the United States;
(3) affect the applicability of any provision of
the Foreign Sovereign Immunities Act of 1976;
(4) preempt any choice-of-law rules with respect
to claims brought by a foreign nation or a citizen of
a foreign nation; or
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(5) affect the right of any court to transfer
venue or to apply the law of a foreign nation or to
dismiss a claim of a foreign nation or of a citizen
of a foreign nation on the ground of inconvenient
forum.
SEC. 213. RULES OF CONSTRUCTION REGARDING JURIS-
DICTION OF FEDERAL COURTS.
(a) AMOUNT
IN CONTROVERSY.—In an action to
which this title applies and which is brought under section
1332 of title 28, United States Code, the amount of non-
economic damages or punitive damages, and attorneys’
fees or costs, shall not be included in determining whether
the matter in controversy exceeds the sum or value of
$50,000.
(b) FEDERAL COURT JURISDICTION NOT ESTAB-
LISHED ON FEDERAL QUESTION GROUNDS.—Nothing in
this title shall be construed to establish any jurisdiction
in the district courts of the United States over District
of Columbia health care liability actions on the basis of
section 1331 or 1337 of title 28, United States Code.
Subtitle C—Effective Date
SEC. 221. EFFECTIVE DATE.
This title shall apply to any District of Columbia
health care liability action and to any District of Columbia
health care liability claim subject to an alternative dispute
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resolution system, that is initiated on or after the date
of the enactment of this title, except that any such action
or claim arising from an injury occurring prior to such
date shall be governed by the applicable statute of limita-
tions provisions in effect at the time the injury occurred.
TITLE III—DISTRICT OF COLUM-
BIA EDUCATION REFORM ACT
OF 1997
Subtitle A—Amendments to Dis-
trict of Columbia School Reform
Act of 1995
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘District of Columbia
Education Reform Amendments Act of 1997’’.
SEC. 302. GENERAL EFFECTIVE DATE.
Section 2003 of the District of Columbia School Re-
form Act of 1995 (Public Law 104–134; 110 Stat. 1321–
112; D.C. Code § 31–2851) is amended by striking ‘‘shall
be effective’’ and all that follows through the period at
the end and inserting ‘‘shall take effect on the date of
the enactment of this Act.’’.
SEC. 303. TIMETABLE FOR APPROVAL OF PUBLIC CHARTER
SCHOOL PETITIONS.
Section 2203(i)(2)(A) of the District of Columbia
School Reform Act of 1995 (Public Law 104–134; 110
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Stat. 3009–504; D.C. Code § 31–2853.13(i)(2)(A)) is
amended to read as follows:
‘‘(A) IN GENERAL.—
‘‘(i) ANNUAL LIMIT.—Subject to sub-
paragraph (B) and clause (ii), during cal-
endar year 1997, and during each subse-
quent calendar year, each eligible charter-
ing authority shall not approve more than
10 petitions to establish a public charter
school under this subtitle.
‘‘(ii) TIMETABLE.—Any petition ap-
proved under clause (i) shall be approved
during an application approval period that
terminates on April 1 of each year. Such
an approval period may commence before
or after January 1 of the calendar year in
which it terminates, except that any peti-
tion approved at any time during such an
approval period shall count, for purposes of
clause (i), against the total number of peti-
tions approved during the calendar year in
which the approval period terminates.’’.
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SEC. 304. INCREASE IN PERMITTED NUMBER OF TRUSTEES
OF PUBLIC CHARTER SCHOOL.
Section 2205(a) of the District of Columbia School
Reform Act of 1995 (Public Law 104–134; 110 Stat.
1321–122; D.C. Code § 31–2853.15(a)) is amended by
striking ‘‘7,’’ and inserting ‘‘15,’’.
SEC. 305. LEASE TERMS FOR PERSONS OPERATING CHAR-
TER SCHOOLS.
(a) LEASING FORMER OR UNUSED PUBLIC SCHOOL
PROPERTIES.—
(1) IN GENERAL.—Section 2209(b)(1)(A) of the
District of Columbia School Reform Act of 1995
(Public Law 104–134; 110 Stat. 3009–505; D.C.
Code § 31–2853.19(b)(1)(A)) is amended to read as
follows:
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law relating to the disposition
of a facility or property described in subpara-
graph (C), the Mayor and the District of Co-
lumbia Government—
‘‘(i) subject to clause (ii), shall give
preference to an eligible applicant whose
petition to establish a public charter school
has been conditionally approved under sec-
tion 2203(d)(2), or a Board of Trustees,
with respect to the purchase of a facility or
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property described in subparagraph (C), if
doing so will not result in a significant loss
of revenue that might be obtained from
other dispositions or uses of the facility or
property; and
‘‘(ii) shall lease a facility or property
described in subparagraph (C), at an an-
nual rate of $1, to an eligible applicant
whose petition to establish a public charter
school has been conditionally approved
under section 2203(d)(2), or a Board of
Trustees, if—
‘‘(I) the eligible applicant or
Board of Trustees requests a lease
pursuant to this paragraph for the
purpose of operating the facility or
property as a public charter school
under this subtitle; and
‘‘(II) the facility or property is
not yet otherwise disposed of (by sale,
lease, or otherwise).’’.
(2) 
TERMINATION
OF
LEASE.—Section
2209(b)(1) of the District of Columbia School Re-
form Act of 1995 (Public Law 104–134; 110 Stat.
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3009–505; 
D.C. 
Code 
§ 31–2853.19(b)(1)) 
is
amended—
(A) by redesignating subparagraph (B) as
subparagraph (C); and
(B) by inserting after subparagraph (A)
the following:
‘‘(B) TERMINATION OF LEASE.—Any lease
entered into pursuant to this paragraph with
respect to a public charter school shall be
deemed to terminate—
‘‘(i) upon the denial of an application
to renew the charter granted to the school
under section 2212, or, in a case where ju-
dicial review of the denial is sought under
section 2212(d)(6), upon the entry of an
order, not subject to further review, up-
holding a decision to deny such an applica-
tion, whichever occurs later;
‘‘(ii) upon the revocation of the char-
ter granted to the school under section
2213, or, in a case where judicial review of
the revocation is sought under section
2213(c)(6), upon the entry of an order, not
subject to further review, upholding the
revocation, whichever occurs later; or
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‘‘(iii) in the case of a lease to an eligi-
ble applicant whose petition to establish a
public charter school has been conditionally
approved under section 2203(d)(2), upon
the termination of such conditional ap-
proval by reason of the applicant’s failure
timely to submit the identification and in-
formation 
described 
in 
section
2202(6)(B)(i).’’.
(3) 
CONFORMING
AMENDMENT.—Section
225(d) of the District of Columbia Financial Re-
sponsibility and Management Assistance Act of 1995
(Public Law 104–8; 110 Stat. 3009–508; D.C. Code
§ 47–392.25(d)) is amended by striking ‘‘section
2209(b)(1)(B) of the District of Columbia School
Reform Act of 1995’’ and inserting ‘‘section
2209(b)(1)(C) of the District of Columbia School
Reform Act of 1995, other than a facility or real
property that is subject to a lease under section
2209(b)(1)(A)(ii) of such Act,’’.
(b) CONVERSIONS
OF PUBLIC SCHOOLS.—Section
2209(b) of the District of Columbia School Reform Act
of 1995 (Public Law 104–134; 110 Stat. 3009–505; D.C.
Code § 31–2853.19(b)) is amended by adding at the end
the following:
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‘‘(3) SPECIAL RULE FOR PERSONS CONVERTING
PUBLIC SCHOOL INTO CHARTER SCHOOL.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law relating to the disposition
of a facility or property described in this para-
graph, the Mayor and the District of Columbia
Government shall lease a facility or property, at
an annual rate of $1, to an eligible applicant
whose petition to establish a public charter
school has been conditionally approved under
section 2203(d)(2), or a Board of Trustees, if—
‘‘(i) the facility or property is under
the jurisdiction of the Board of Education;
‘‘(ii) the eligible applicant or Board of
Trustees requests a lease pursuant to this
paragraph for the purpose of operating the
facility or property as a public charter
school under this subtitle; and
‘‘(iii) immediately prior to the date of
such request, the facility or property—
‘‘(I) was operated as a District of
Columbia public school, and the re-
quirements of section 2202(a) were
met; or
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‘‘(II) was operated as a public
charter school under this subtitle.
‘‘(B) TERMINATION OF LEASE.—Any lease
entered into pursuant to this paragraph with
respect to a public charter school shall be
deemed to terminate—
‘‘(i) upon the denial of an application
to renew the charter granted to the school
under section 2212, or, in a case where ju-
dicial review of the denial is sought under
section 2212(d)(6), upon the entry of an
order, not subject to further review, up-
holding a decision to deny such an applica-
tion, whichever occurs later;
‘‘(ii) upon the revocation of the char-
ter granted to the school under section
2213, or, in a case where judicial review of
the revocation is sought under section
2213(c)(6), upon the entry of an order, not
subject to further review, upholding the
revocation, whichever occurs later; or
‘‘(iii) in the case of a lease to an eligi-
ble applicant whose petition to establish a
public charter school has been conditionally
approved under section 2203(d)(2), upon
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the termination of such conditional ap-
proval by reason of the applicant’s failure
timely to submit the identification and in-
formation 
described 
in 
section
2202(6)(B)(i).’’.
(c) LEASING
CURRENT
PUBLIC
SCHOOL
PROP-
ERTIES.—
(1) IN GENERAL.—Section 2209(b)(2)(A) of the
District of Columbia School Reform Act of 1995
(Public Law 104–134; 110 Stat. 3009–506; D.C.
Code § 31–2853.19(b)(2)(A)) is amended to read as
follows:
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law relating to the disposition
of a facility or property described in subpara-
graph (C), but subject to paragraph (3), the
Mayor and the District of Columbia Govern-
ment shall lease a facility or property described
in subparagraph (C), at an annual rate of $1,
to an eligible applicant whose petition to estab-
lish a public charter school has been condi-
tionally approved under section 2203(d)(2), or
a Board of Trustees, if the eligible applicant or
Board of Trustees requests a lease pursuant to
this paragraph for the purpose of—
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‘‘(i) operating the facility or property
as a public charter school under this sub-
title; or
‘‘(ii) using the facility or property for
a purpose directly related to the operation
of a public charter school under this sub-
title.’’.
(2) 
TERMINATION
OF
LEASE.—Section
2209(b)(2) of the District of Columbia School Re-
form Act of 1995 (Public Law 104–134; 110 Stat.
3009–506; 
D.C. 
Code 
§ 31–2853.19(b)(2)) 
is
amended—
(A) by redesignating subparagraph (B) as
subparagraph (C); and
(B) by inserting after subparagraph (A)
the following:
‘‘(B) TERMINATION OF LEASE.—Any lease
entered into pursuant to this paragraph with
respect to a public charter school shall be
deemed to terminate—
‘‘(i) upon the denial of an application
to renew the charter granted to the school
under section 2212, or, in a case where ju-
dicial review of the denial is sought under
section 2212(d)(6), upon the entry of an
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order, not subject to further review, up-
holding a decision to deny such an applica-
tion, whichever occurs later;
‘‘(ii) upon the revocation of the char-
ter granted to the school under section
2213, or, in a case where judicial review of
the revocation is sought under section
2213(c)(6), upon the entry of an order, not
subject to further review, upholding the
revocation, whichever occurs later; or
‘‘(iii) in the case of a lease to an eligi-
ble applicant whose petition to establish a
public charter school has been conditionally
approved under section 2203(d)(2), upon
the termination of such conditional ap-
proval by reason of the applicant’s failure
timely to submit the identification and in-
formation 
described 
in 
section
2202(6)(B)(i).’’.
SEC. 306. AUTHORIZATION OF APPROPRIATIONS FOR PUB-
LIC CHARTER SCHOOL BOARD.
Section 2214(g) of the District of Columbia School
Reform Act of 1995 (Public Law 104–134; 110 Stat.
1321–133; D.C. Code § 31–2853.24(g)) is amended by in-
serting ‘‘to the Board’’ after ‘‘appropriated’’.
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SEC. 307. ADJUSTMENT OF ANNUAL PAYMENT FOR RESI-
DENTIAL SCHOOLS.
Section 2401(b)(3)(B) of the District of Columbia
School Reform Act of 1995 (Public Law 104–134; 110
Stat. 1321–137; D.C. Code § 31–2853.41(b)(3)(B)) is
amended—
(1) in clause (i), by striking ‘‘or’’;
(2) in clause (ii), by striking the period at the
end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(iii) to whom the school provides
room and board in a residential setting.’’.
SEC. 308. ADJUSTMENT OF ANNUAL PAYMENT FOR FACILI-
TIES COSTS.
Section 2401(b)(3) of the District of Columbia School
Reform Act of 1995 (Public Law 104–134; 110 Stat.
1321–137; D.C. Code § 31–2853.41(b)(3)) is amended by
adding at the end the following:
‘‘(C) 
ADJUSTMENT
FOR
FACILITIES
COSTS.—Notwithstanding paragraph (2), the
Mayor and the District of Columbia Council, in
consultation with the Board of Education and
the Superintendent, shall adjust the amount of
the annual payment under paragraph (1) to in-
crease the amount of such payment for a public
charter school to take into account leases or
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purchases of, or improvements to, real property,
if the school, not later than April 1 of the fiscal
year preceding the payment, requests such an
adjustment.’’.
SEC. 309. PAYMENTS TO NEW CHARTER SCHOOLS.
(a) IN GENERAL.—Section 2403(b) of the District of
Columbia School Reform Act of 1995 (Public Law 104–
134; 110 Stat. 1321–140; D.C. Code § 31–2853.43(b)) is
amended to read as follows:
‘‘(b) PAYMENTS TO NEW SCHOOLS.—
‘‘(1) ESTABLISHMENT OF FUND.—There is es-
tablished in the general fund of the District of Co-
lumbia a fund to be known as the ‘New Charter
School Fund’.
‘‘(2) CONTENTS OF FUND.—The New Charter
School Fund shall consist of—
‘‘(A) unexpended and unobligated amounts
appropriated from local funds for public charter
schools for fiscal year 1997 that reverted to the
general fund of the District of Columbia;
‘‘(B) amounts credited to the fund in ac-
cordance with this subsection upon the receipt
by a public charter school described in para-
graph (5) of its first initial payment under sub-
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‘‘(C) 
FORM
OF
PAYMENT.—Payments
under this subsection shall be made by elec-
tronic funds transfer from the New Charter
School Fund to a bank designated by a public
charter school.
‘‘(4) CREDITS TO FUND.—Upon the receipt by
a public charter school described in paragraph (5)
of—
‘‘(A) its first initial payment under sub-
section (a)(2)(A), the Chief Financial Officer of
the District of Columbia shall credit the New
Charter School Fund with 75 percent of the
amount paid to the school under paragraph (3);
and
‘‘(B) its first final payment under sub-
section (a)(2)(B), the Chief Financial Officer of
the District of Columbia shall credit the New
Charter School Fund with 25 percent of the
amount paid to the school under paragraph (3).
‘‘(5) SCHOOLS DESCRIBED.—A public charter
school described in this paragraph is a public char-
ter school that—
‘‘(A) did not enroll any students during
any portion of the fiscal year preceding the
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most recent fiscal year for which funds are ap-
propriated to carry out this subsection; and
‘‘(B) operated as a public charter school
during the most recent fiscal year for which
funds are appropriated to carry out this sub-
section.
‘‘(6) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the Chief
Financial Officer of the District of Columbia such
sums as may be necessary to carry out this sub-
section for each fiscal year.’’.
(b) REDUCTION OF ANNUAL PAYMENT.—
(1) INITIAL PAYMENT.—Section 2403(a)(2)(A)
of the District of Columbia School Reform Act (Pub-
lic Law 104–134; 110 Stat. 1321–139; D.C. Code
§ 31–2853.43(a)(2)(A)) is amended to read as fol-
lows:
‘‘(A) INITIAL PAYMENT.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), not later than October
15, 1996, and not later than October 15 of
each year thereafter, the Mayor shall
transfer, by electronic funds transfer, an
amount equal to 75 percent of the amount
of the annual payment for each public
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charter school determined by using the for-
mula established pursuant to section
2401(b) to a bank designated by such
school.
‘‘(ii) REDUCTION
IN
CASE
OF
NEW
SCHOOL.—In the case of a public charter
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 75 percent of the amount of the
payment under subsection (b).’’.
(2) FINAL
PAYMENT.—Section 2403(a)(2)(B)
of the District of Columbia School Reform Act (Pub-
lic Law 104–134; 110 Stat. 1321–139; D.C. Code
§ 31–2853.43(a)(2)(B)) is amended—
(A) in clause (i)—
(i) by inserting ‘‘IN GENERAL.—’’ be-
fore ‘‘Except’’; and
(ii) by striking ‘‘clause (ii),’’ and in-
serting ‘‘clauses (ii) and (iii),’’;
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(B) in clause (ii), by inserting ‘‘ADJUST-
MENT FOR ENROLLMENT.—’’ before ‘‘Not later
than March 15, 1997,’’; and
(C) by adding at the end the following:
‘‘(iii) REDUCTION
IN
CASE
OF
NEW
SCHOOL.—In the case of a public charter
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—
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‘‘(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;
‘‘(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’’—
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(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,
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.—
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(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 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
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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.).
(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-
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poration in a prudent and financially responsible
manner, solely for scholarships, contracts, and ad-
ministrative 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 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-
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ceipt 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
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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 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
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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 subtitle.
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(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) 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
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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 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
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.
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(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 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-
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paper of general circulation), and deadlines for steps
in the scholarship application and award process.
(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
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with paragraph (2), the Corporation shall cer-
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
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succeeding the year for which the determination
is made for—
(i) good cause, including a finding of
a pattern of violation of program require-
ments 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.
(B) EXPLANATION.—If the certification of
an eligible institution is revoked, the Corpora-
tion shall provide a written explanation of its
decision to such eligible institution and require
a pro rata refund of the payments received
under this subtitle.
(6) PARTICIPATION REQUIREMENTS FOR ELIGI-
BLE INSTITUTIONS.—
(A) REQUIREMENTS.—Each eligible insti-
tution participating in the scholarship program
under this subtitle shall—
(i) provide to the Corporation not
later than June 30 of each year the most
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recent annual statement of the eligible in-
stitution’s budget; and
(ii) charge a student that receives a
scholarship under this subtitle not more
than the cost of tuition and mandatory
fees for, and transportation to attend, such
eligible institution as other students who
are residents of the District of Columbia
and enrolled in such eligible institution.
(B) COMPLIANCE.—The Corporation may
require documentation of compliance with the
requirements of subsection (a), but neither the
Corporation nor any governmental entity may
impose additional requirements upon an eligible
institution as a condition of participation in the
scholarship program under this subtitle.
SEC. 343. 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
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(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) RANDOM SELECTION.—Except as provided in
subsections (a) and (b), if there are more applications to
participate in the scholarship program than there are
spaces available, a student shall be admitted using a ran-
dom selection process.
(d) USE OF SCHOLARSHIP.—
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(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; Fairfax
City, Virginia; or Fairfax 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 sub-
title shall be considered assistance to the student and shall
not be considered assistance to an eligible institution.
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SEC. 344. SCHOLARSHIP AWARDS.
(a) AWARDS.—From the funds made available under
this subtitle, the Corporation shall award a scholarship to
a student and make payments in accordance with section
345 on behalf of such student to a participating eligible
institution chosen by the parent of the student.
(b) NOTIFICATION.—Each eligible institution that ac-
cepts a student who has received a scholarship under this
subtitle shall notify the Corporation not later than 10 days
after—
(1) the date that a student receiving a scholar-
ship under this subtitle is enrolled, of the name, ad-
dress, and grade level of such student;
(2) the date of the withdrawal or expulsion of
any student receiving a scholarship under this sub-
title, of the withdrawal or expulsion; and
(3) the date that a student receiving a scholar-
ship under this subtitle is refused admission, of the
reasons 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—
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(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—
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(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. 345. SCHOLARSHIP PAYMENTS.
(a) DISBURSEMENT OF SCHOLARSHIPS.—The funds
may be distributed by check or another form of disburse-
ment which is issued by the Corporation and made payable
directly to a parent of a student participating in the schol-
arship program under this subtitle. The parent may use
such funds only as payment for tuition, mandatory fees,
and transportation costs associated with attending or ob-
taining services from a participating eligible institution.
(b) PRO RATA AMOUNTS
FOR STUDENT WITH-
DRAWAL.—
(1) BEFORE PAYMENT.—If a student receiving
a scholarship withdraws or is expelled from an eligi-
ble institution before a scholarship payment is made,
the eligible institution shall receive a pro rata pay-
ment based on the amount of the scholarship and
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the number of days the student was enrolled in the
eligible institution.
(2) AFTER PAYMENT.—If a student receiving a
scholarship withdraws or is expelled after a scholar-
ship payment is made, the eligible institution shall
refund to the Corporation on a pro rata basis the
proportion of any scholarship payment 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. 346. CIVIL RIGHTS.
(a) IN GENERAL.—An eligible institution participat-
ing in the scholarship program under this subtitle shall
not engage in any practice that discriminates on the basis
of race, color, national origin, or sex.
(b) EXCEPTION.—Nothing in this Act shall be con-
strued to prevent a parent from choosing or an eligible
institution from offering, a single-sex school, class, or ac-
tivity.
(c) REVOCATION.—Notwithstanding section 342(f), if
the Corporation determines that an eligible institution
participating in the scholarship program under this title
is in violation of any of the laws listed in subsection (a),
then the Corporation shall revoke such eligible institu-
tion’s certification to participate in the program.
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SEC. 347. CHILDREN WITH DISABILITIES.
Nothing in this subtitle shall affect the rights of stu-
dents, or the obligations of the District of Columbia public
schools, under the Individuals with Disabilities Education
Act (20 U.S.C. 1400 et seq.).
SEC. 348. RULE OF CONSTRUCTION.
(a) IN GENERAL.—Nothing in this Act shall be con-
strued to bar any eligible institution which is operated,
supervised, or controlled by, or in connection with, a reli-
gious organization from limiting employment, or admis-
sion to, or giving preference to persons of the same reli-
gion as is determined by such institution to promote the
religious purpose for which it is established or maintained.
(b) SECTARIAN PURPOSES.—Nothing in this Act
shall preclude the use of funds authorized under this Act
for sectarian educational purposes or to require an eligible
institution to remove religious art, icons, scripture, or
other symbols.
SEC. 349. REPORTING REQUIREMENTS.
(a) IN GENERAL.—An eligible institution participat-
ing in the scholarship program under this subtitle shall
report not later than July 30 of each year in a manner
prescribed by the Corporation, the following data:
(1) Student achievement in the eligible institu-
tion’s programs.
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(2) 
Grade 
advancement 
for 
scholarship
students.
(3) Disciplinary actions taken with respect to
scholarship students.
(4) Graduation, college admission test scores,
and college admission rates, if applicable for scholar-
ship students.
(5) Types and amounts of parental involvement
required for all families of scholarship students.
(6) Student attendance for scholarship and
nonscholarship students.
(7) General information on curriculum, pro-
grams, facilities, credentials of personnel, and dis-
ciplinary rules at the eligible institution.
(8) Number of scholarship students enrolled.
(9) Such other information as may be required
by the Corporation for program appraisal.
(b) CONFIDENTIALITY.—No personal identifiers may
be used in such report, except that the Corporation may
request such personal identifiers solely for the purpose of
verification.
SEC. 350. PROGRAM APPRAISAL.
(a) STUDY.—Not later than 4 years after the date
of enactment of this Act, the Comptroller General shall
enter into a contract, with an evaluating agency that has
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demonstrated experience in conducting evaluations, for an
independent evaluation of the scholarship program under
this subtitle, including—
(1) a comparison of test scores between scholar-
ship students and District of Columbia public school
students of similar backgrounds, taking into account
the students’ academic achievement at the time of
the award of their scholarships and the students’
family income level;
(2) a comparison of graduation rates between
scholarship students and District of Columbia public
school students of similar backgrounds, taking into
account the students’ academic achievement at the
time of the award of their scholarships and the stu-
dents’ family income level;
(3) the satisfaction of parents of scholarship
students with the scholarship program; and
(4) the impact of the scholarship program on
the District of Columbia public schools, including
changes in the public school enrollment, and any im-
provement in the academic performance of the public
schools.
(b) PUBLIC REVIEW OF DATA.—All data gathered in
the course of the study described in subsection (a) shall
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be made available to the public upon request except that
no personal identifiers shall be made public.
(c) REPORT TO CONGRESS.—Not later than Septem-
ber 1 of each year, the Corporation shall submit a progress
report on the scholarship program to the appropriate com-
mittees of Congress. Such report shall include a review
of how scholarship funds were expended, including the ini-
tial academic achievement levels of students who have par-
ticipated in the scholarship program.
(d) AUTHORIZATION.—There are authorized to be ap-
propriated for the study described in subsection (a),
$250,000, which shall remain available until expended.
SEC. 351. JUDICIAL REVIEW.
(a) IN GENERAL.—The United States District Court
for the District of Columbia shall have jurisdiction in any
action challenging the scholarship program under this sub-
title and shall provide expedited review.
(b) APPEAL TO SUPREME COURT.—Notwithstanding
any other provision of law, any order of the United States
District Court for the District of Columbia which is issued
pursuant to an action brought under subsection (a) shall
be reviewable by appeal directly to the Supreme Court of
the United States.
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SEC. 352. EFFECTIVE DATE.
This subtitle shall be effective for each of the fiscal
years 1998 through 2002.
Subtitle C—Other Education
Reforms
SEC. 361. REDUCTION IN ADMINISTRATIVE STAFF.
At any time after June 30, 1998, the total number
of full-time-equivalent employees of the District of Colum-
bia Public Schools whose principal duty is not classroom
instruction may not exceed the number of such full-time-
equivalent employees as of September 30, 1997, reduced
by 200.
SEC. 362. DEVELOPMENT OF PERFORMANCE CRITERIA FOR
TEACHERS.
The District of Columbia Public Schools shall develop
and implement performance benchmarks for teachers,
based on the ability of students to improve by at least one
grade level each year in performance on standardized
tests, and shall establish incentives to encourage teachers
to meet such benchmarks.
SEC. 363. PERMITTING WAIVER OF CERTAIN CONTRACTING
REQUIREMENTS FOR SCHOOL CONSTRUC-
TION AND REPAIR.
In carrying out any construction or repair project for
the District of Columbia Public Schools, the Contracting
Officer for the District of Columbia Public Schools may
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waive any requirements contained in the document enti-
tled ‘‘District of Columbia Public Schools Standard Con-
tract Provisions’’ (as such document was in effect on No-
vember 2, 1995 and including any revisions or modifica-
tions to such document) published by the District of Co-
lumbia public schools for use with construction or mainte-
nance projects, except that nothing in this section may be
construed to permit the waiver of any requirements under
Executive Order 11246 or other civil rights standards.
SEC. 364. REPEAL OF TAX EXEMPTION FOR LABOR ORGANI-
ZATIONS.
(a) IN GENERAL.—Notwithstanding any provision of
any Federally-granted charter or any other provision of
law, the real property of any labor organization located
in the District of Columbia shall be subject to taxation
by the District of Columbia in the same manner as any
similar organization.
(b) LABOR ORGANIZATION DEFINED.—In subsection
(a), the term ‘‘labor organization’’ means any organization
of any kind, or any agency or employee representation
committee or plan, in which employees participate and
which exists for the purpose, in whole or in part, of dealing
with employers concerning grievances, labor disputes,
wages, rates of pay, hours of employment, or conditions
of work.
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SEC. 365. TREATMENT OF SUPERVISORY PERSONNEL AS
AT-WILL EMPLOYEES.
Notwithstanding any other provision of law or regula-
tion (including any law or regulation providing for collec-
tive bargaining or the enforcement of any collective bar-
gaining agreement), all supervisory personnel of the Dis-
trict of Columbia Public Schools shall be appointed by,
shall serve at the pleasure of, and shall act under the di-
rection and control of the Emergency Transitional Edu-
cation Board of Trustees, and shall be considered at-will
employees not covered by the District of Columbia Govern-
ment Comprehensive Merit Personnel Act of 1978.
SEC. 366. DETERMINATION OF NUMBER OF STUDENTS EN-
ROLLED.
Not later than 30 days after the date of the enact-
ment of this Act, and not later than 30 days after the
beginning of each semester which begins after such date,
the District of Columbia Auditor shall submit a report to
Congress, the Mayor, the Council, the Chief Financial Of-
ficer of the District of Columbia, and the District of Co-
lumbia Financial Responsibility and Management Assist-
ance Authority providing the most recent information
available on the number of students enrolled in the Dis-
trict of Columbia Public Schools and the average daily at-
tendance of such students.
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SEC. 367. BUDGETING ON SCHOOL-BY-SCHOOL BASIS.
(a) PREPARATION OF INITIAL BUDGETS.—Not later
than 30 days after the date of the enactment of this Act,
the District of Columbia Public Schools shall prepare and
submit to Congress a budget for each public elementary
and secondary school for fiscal year 1998 which describes
the amount expected to be expended with respect to the
school for salaries, capital, and other appropriate cat-
egories of expenditures.
(b) USE
OF BUDGETS
FOR FUTURE AGGREGATE
BUDGET.—The District of Columbia Public Schools shall
use the budgets prepared for individual schools under sub-
section (a) to prepare the overall budget for the Schools
for fiscal year 1999.
SEC. 368. REQUIRING PROOF OF RESIDENCY FOR INDIVID-
UALS ATTENDING SCHOOLS AND SCHOOL
CHILD CARE PROGRAMS.
None of the funds made available in this Act or any
other Act may be used by the District of Columbia Public
Schools in fiscal year 1998 or any succeeding fiscal year
to provide classroom instruction or child care services to
any minor whose parent or guardian does not supply the
Schools with proof of the State of the minor’s residence.
SEC. 369. DISTRICT OF COLUMBIA SCHOOL OF LAW.
(a) REQUIRING FULL ACCREDITATION.—
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HR 2607 RH
(1) IN GENERAL.—If the District of Columbia
School of Law is not fully, unconditionally accredited
by the American Bar Association as of January 31,
1998, none of the funds made available in this Act
or any other Act may be expended for or on behalf
of the School except for purposes of providing assist-
ance to assist students enrolled at the School as of
such date who are residents of the District of Co-
lumbia in paying the tuition for enrollment at other
law schools in the Washington Metropolitan Area, in
accordance with a plan submitted to Congress.
(2) RESTRICTIONS ON USE OF FUNDS PRIOR TO
ACCREDITATION.—None of the funds made available
in this Act or any other Act may be used by or on
behalf of the District of Columbia School of Law for
recruiting or capital projects until the School is
fully, unconditionally accredited by the American
Bar Association.
(b) NO OTHER SOURCE OF FUNDING PERMITTED.—
None of the funds made available in this Act or any other
Act for the use of any entity (including the University of
the District of Columbia) other than the District of Co-
lumbia School of Law may be transferred to, made avail-
able for, or expended for or on behalf of the District of
Columbia School of Law.
Union Calendar No. 170
105TH CONGRESS
1ST SESSION
H. R. 2607
[Report No. 105–298]
A BILL
Making appropriations for the government of the
District of Columbia and other activities charge-
able in whole or in part against the revenues of
said District for the fiscal year ending September
30, 1998, and for other purposes.
OCTOBER 6, 1997
Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed