I
105TH CONGRESS
1ST SESSION
H. R. 2561
To provide low-income children educational opportunities.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 25, 1997
Mr. WELDON of Florida introduced the following bill; which was referred to
the Committee on Education and the Workforce
A BILL
To provide low-income children educational opportunities.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Low-Income Edu-
cational Opportunity Act of 1998’’.
SEC. 2. PURPOSE.
The purpose of this Act is to determine the effects
on students and schools of providing financial assistance
to low-income parents to enable such parents to select the
public or private schools their children will attend.
SEC. 3. DEFINITIONS.
As used in this Act—
(1) the term ‘‘choice school’’ means any public
or private school, including a private sectarian
school or a public charter school, that is involved in
a demonstration project assisted under this Act;
(2) the term ‘‘eligible child’’ means a child in
grades 1 through 12 who is eligible for free or re-
duced price lunches under the National School
Lunch Act (42 U.S.C. 1751 et seq.);
(3) the term ‘‘eligible entity’’ means a public
agency, institution, or organization, such as a State,
a consortium of public agencies, or a consortium of
public and private nonprofit organizations, that can
demonstrate, to the satisfaction of the Secretary, its
ability to—
(A) receive, disburse, and account for Fed-
eral funds; and
(B) carry out the activities described in its
application under this Act;
(4) the term ‘‘evaluating agency’’ means any
academic institution, consortium of professionals, or
private or nonprofit organization, with demonstrated
experience in conducting evaluations, that is not an
agency or instrumentality of the Federal Govern-
ment;
(5) the term ‘‘local educational agency’’ has the
same meaning given such term in section 14101 of
the Elementary and Secondary Education Act of
1965;
(6) the term ‘‘parent’’ includes a legal guardian
or other individual acting in loco parentis;
(7) the term ‘‘school’’ means a school that pro-
vides elementary education or secondary education
(through grade 12), as determined under State law;
and
(8) the term ‘‘Secretary’’ means the Secretary
of Education.
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated $30,000,000 for fiscal year 1999, and such sums
as may be necessary for each of the fiscal years 2000,
2001, 2002, and 2003, to carry out this Act.
(b) RESERVATION.—From the amount appropriated
pursuant to section 4 in any fiscal year, the Secretary
shall reserve and make available to the Comptroller Gen-
eral of the United States 5 percent for evaluation of
programs assisted under this Act in accordance with
section 11.
SEC. 5. PROGRAM AUTHORIZED.
(a) GRANTS.—
(1) IN
GENERAL.—From the amount appro-
priated pursuant to section 4 and not reserved under
section 4(b) for any fiscal year, the Secretary, in
consultation with the evaluating agency selected pur-
suant to section 11(a)(1), shall award grants to eli-
gible entities under this Act to carry out a total of
not less than 10, but not more than 20, demonstra-
tion projects under which parents of an eligible child
receive an education scholarship for the costs of en-
rolling such a child in a choice school.
(2) AMOUNT.—The Secretary shall award
grants under paragraph (1) for each fiscal year in
the following manner:
(A) GRANTS OF $5,000,000 OR LESS.—Not
more than 2 grants shall be awarded in an
amount not to exceed $5,000,000 with pref-
erence for one such grant given to the District
of Columbia if an application submitted by the
District of Columbia meets the requirements of
this Act.
(B) GRANTS OF $3,000,000 OR LESS.—Each
remaining grant awarded under this Act, not to
exceed 18, shall be awarded in an amount that
does not exceed $3,000,000.
(3) CONTINUING
ELIGIBILITY.—In awarding
grants for the second, third, fourth, and fifth years,
the Secretary shall continue to award grants to eligi-
ble entities initially selected unless the Secretary de-
termines that such an eligible entity was not in com-
pliance with this Act for the preceding fiscal year.
(b) USE OF GRANTS.—Grants awarded under sub-
section (b) shall be used to pay the costs of—
(1) providing an education scholarship to par-
ents of an eligible child to enable such parents to
pay the tuition, the fees, the allowable costs of
transportation for their eligible child to attend a
choice school; and
(2) administering the demonstration project,
which shall not exceed 15 percent of the amount re-
ceived in the first fiscal year for which the eligible
entity provides education scholarships under this Act
or 10 percent in any subsequent year, for activities
that include—
(A) seeking the involvement of choice
schools in the demonstration project;
(B) providing information about the dem-
onstration project, and the schools involved in
the demonstration project, to parents of eligible
children;
(C) making determinations of eligibility for
participation in the demonstration project for
eligible children;
(D) selecting eligible children to participate
in the demonstration project;
(E) determining the amount of, and issu-
ing, education scholarships;
(F) compiling and maintaining such finan-
cial and programmatic records as the Secretary
may prescribe; and
(G) collecting such information about the
effects of the demonstration project as the eval-
uating agency requests to conduct the evalua-
tion described in section 11.
SEC. 6. AUTHORIZED PROJECTS; PRIORITY.
(a) AUTHORIZED PROJECTS.—The Secretary may
award a grant under this Act for a demonstration project
only if such project—
(1) involves not less than one local educational
agency that—
(A) receives funds under section 1124A of
the Elementary and Secondary Education Act
of 1965; and
(B) is among the 20 percent of local edu-
cational agencies in the State receiving funds
(b) CONTENTS.—Each such application shall con-
tain—
(1) information demonstrating the eligibility for
participation in the demonstration program of the
eligible entity;
(2) with respect to choice schools—
(A) a description of the standards used by
the eligible entity to determine which public and
private schools are within a reasonable commut-
ing distance of eligible children and present a
reasonable commuting cost for such eligible
children;
(B) a description of the types of potential
choice schools that will be involved in the dem-
onstration project;
(C)(i) a description of the procedures used
to encourage public and private schools to be
involved in the demonstration project;
(ii) a description of how the eligible entity
will annually determine the number of spaces
available for eligible children in each choice
school; and
(iii) a description of how the eligibility en-
tity will select applicants;
(D) an assurance that each choice school
will not impose different standards for admis-
sion or participation in its programs and activi-
ties for eligible children who receive an edu-
cation scholarships under this Act than the
standards such school uses for other students
attending such school;
(E) an assurance that each choice school
operated, for not less than 1 year prior to ac-
cepting education scholarships under this Act,
an educational program similar to the edu-
cational program proposed for education schol-
arships;
(F) an assurance that each choice school
participating in the demonstration program
under this Act shall not discriminate on the
basis of race, color, or national origin;
(G) an assurance that the eligible entity
will terminate the involvement of any choice
school that fails to comply with the require-
ments of this Act; and
(H) a description of the extent to which
choice schools will accept education scholarships
under this Act as full or partial payment for
tuition and fees;
(3) with respect to the participation of eligible
children in the demonstration project—
(A) a description of the procedures to be
used to make a determination of eligibility for
participation in the demonstration project for
an eligible child, including—
(i) the procedures used to determine
eligibility for free or reduced price lunches
under the National School Lunch Act; or
(ii) any other procedure, subject to
the Secretary’s approval, that accurately
establishes the eligibility for such partici-
pation for an eligible child;
(B) a description of the procedures to be
used to ensure that, in selecting eligible chil-
dren to participate in the demonstration
project, the eligible entity will—
(i) apply the same criteria to eligible
children from both public and private
school; and
(ii) give priority to eligible children
from the lowest income families;
(C) a description of the procedures to be
used to ensure maximum choice of schools for
participating eligible children, including proce-
dures to be used when—
(i) the number of parents who desire
to receive an education scholarship to en-
roll their eligible children in a particular
choice school exceeds the number of eligi-
ble children that the choice school will ac-
cept; and
(ii) grant funds and funds from local
sources are insufficient to support the total
cost of choices made by parents with edu-
cation scholarships; and
(D) a description of the procedures to be
used to ensure any eligible child under this Act
who would be eligible to receive services under
part A of title I of the Elementary and Second-
ary Education Act of 1965 who attends a
choice school receives such services, including—
(i) the direct provision of services by
a local educational agency; or
(ii) arrangements made by a local
educational agency with other service pro-
viders;
(4) with respect to the operation of the dem-
onstration project—
(A) a description of the geographic area to
be served;
(B) a timetable for carrying out the dem-
onstration project;
(C) a description of the procedures to be
used for the issuance and redemption of edu-
cation scholarships under this Act;
(D) a description of the procedures by
which a choice school will make a refund of the
portion of the education certificate under this
Act for any participating eligible child who
withdraws from the school for any reason, be-
fore completing 75 percent of the school attend-
ance period, or any other reasonable agreement
between parents and a choice school, for which
the education certificate was issued;
(E) a description of the procedures to be
used to provide the parental notification de-
scribed in section 10;
(F) an assurance that the eligible entity
will place all funds received under this Act into
a separate account;
(G) an assurance that the eligible entity
will provide the Secretary periodic reports on
the status of such funds;
(H) an assurance that the eligible entity
will cooperate with the Comptroller General of
the United States and the evaluating agency in
carrying out the evaluations described in section
11; and
(I) an assurance that the eligible entity
will—
(i) maintain such records as the Sec-
retary may require; and
(ii) comply with reasonable requests
from the Secretary for information; and
(5) such other assurances and information as
the Secretary may reasonably require.
SEC. 8. EDUCATION SCHOLARSHIPS.
(a) EDUCATION SCHOLARSHIPS.—
(1) AMOUNT.—The amount of an education
scholarship under this Act shall be determined by
the eligible entity, but shall be an amount that pro-
vides to the recipient of each education scholarship
the maximum degree of choice in selecting the choice
school an eligible child may attend.
(2) CONSIDERATIONS.—
(A) IN GENERAL.—Subject to such regula-
tions as the Secretary shall prescribe, in deter-
mining the amount of an education scholarship
under this Act, an eligible entity shall con-
sider—
(i) the additional reasonable costs of
transportation directly attributable to the
eligible child’s participation in the dem-
onstration project; and
(ii) the cost of complying with section
9(a)(1).
(B) SCHOOLS CHARGING TUITION.—If an
eligible child participating in a demonstration
project under this Act attended a public or pri-
vate school that charged tuition for the year
preceding the first year of such participation,
the eligible entity shall consider—
(i) the tuition charged by such school
for such eligible child in such preceding
year; and
(ii) the amount of the education schol-
arships under this Act that are provided to
other eligible children.
(3) SPECIAL RULE.—An eligible entity may pro-
vide an education scholarship under this Act to the
parent of an eligible child who chooses to attend a
school that does not charge tuition or fees, to pay
the additional reasonable costs of transportation di-
rectly attributable to the eligible child’s participation
in the demonstration project or the cost of comply-
ing with section 9(a)(1)
(b) ADJUSTMENT.—The amount of the education
scholarship for a fiscal year may be adjusted in the second
and third years of an eligible child’s participation in a
demonstration project under this Act to reflect any in-
crease or decrease in the tuition, fees, or transportation
costs directly attributable to that eligible child’s continued
attendance at a choice school, but shall not be increased
for this purpose by more than 10 percent of the amount
of the education scholarship for the fiscal year preceding
the fiscal year for which the determination is made. The
amount of the education scholarship may also be adjusted
in any fiscal year to comply with section 9(a)(1).
(c) MAXIMUM AMOUNT.—Notwithstanding any other
provision of this section, the amount of an eligible child’s
education scholarship shall not exceed the per pupil ex-
penditure for elementary or secondary education, as the
case may be, by the local educational agency in which the
public school to which the eligible child would normally
be assigned is located for the fiscal year preceding the fis-
cal year for which the determination is made.
(d) INCOME.—An education scholarship under this
Act, and funds provided through an education scholarship,
shall not be treated as income of the parents for purposes
of Federal tax laws or for determining eligibility for any
other Federal program.
SEC. 9. EFFECT ON OTHER PROGRAMS; USE OF SCHOOL
LUNCH DATA.
(a) EFFECT ON OTHER PROGRAMS.—
(1) IN GENERAL.—
(A) TITLE I SERVICES.—An eligible child
participating in a demonstration project under
this Act, who, in the absence of such a dem-
onstration project, would have received services
under part A of title I of the Elementary and
Secondary Education Act of 1965 shall be pro-
vided such services.
(B) EXCEPTION.—Nothing in this Act
shall require a choice school to set up an edu-
cation program as defined under part A of title
I of such Act.
(2) PART B OF THE INDIVIDUALS WITH DIS-
ABILITIES
EDUCATION
ACT.—Nothing in this Act
shall be construed to affect the requirements of part
B of the Individuals with Disabilities Education Act,
except that a choice school that accepts eligible chil-
dren under this Act is not required to provide serv-
ices under part B of such Act if such program was
ber that can be accommodated in the demonstration
project;
(5) provide information about each choice
school, including information about any admission
requirements or criteria for each choice school par-
ticipating in the demonstration project; and
(6) include the schedule for parents to apply for
their eligible child to participate in a demonstration
project.
SEC. 11. EVALUATION.
(a) ANNUAL EVALUATION.—
(1) CONTRACT.—The Comptroller General of
the United States, not later than 3 months after the
date of the enactment of this Act, shall enter into
a contract with an evaluating agency that has dem-
onstrated experience in conducting evaluations, for
the conduct of an ongoing rigorous evaluation of the
demonstration program under this Act.
(2) ANNUAL EVALUATION REQUIREMENT.—The
contract described in paragraph (1) shall require the
evaluating agency entering into such contract to
evaluate annually each demonstration project under
this Act in accordance with the evaluation criteria
described in subsection (b) to transmit to the Comp-
troller General of the United States—
(A) the findings of each annual evaluation
under paragraph (1);
(B) a copy of each report received pursu-
ant to section 12(a) for the applicable year; and
(C) a copy of the final concluding report to
Congress no later than 5 years after enactment.
(b) EVALUATION CRITERIA.—The Comptroller Gen-
eral of the United States, in consultation with the Sec-
retary, shall establish minimum criteria for evaluating the
demonstration program under this Act. Such criteria shall
provide for—
(1) a description of the implementation of each
demonstration project under this Act and the dem-
onstration project’s effects on all participants,
schools, and communities in the demonstration
project area, with particular attention given to the
effect of parent participation in the life of the school
and the level of parental satisfaction with the dem-
onstration program; and
(2) a comparison of the educational achieve-
ment of all students in the demonstration project
area, including a comparison of—
(A) students receiving education scholar-
ships under this Act; and
(B) students not receiving education schol-
arships under this Act.
SEC. 12. REPORTS.
(a) REPORT BY GRANT RECIPIENT.—Each eligible
entity receiving a grant under this Act shall submit to the
evaluating agency an annual report regarding the dem-
onstration project under this Act. Each such report shall
be submitted at such time, in such manner, and accom-
panied by such information, as such evaluating agency
may require.
(b) REPORTS BY COMPTROLLER GENERAL.—
(1) ANNUAL REPORTS.—The Comptroller Gen-
eral of the United States shall report annually to the
Congress on the findings of the annual evaluation
under section 11(a)(2) of each demonstration project
under this Act. Each such report shall contain a
copy of—
(A) the annual evaluation under section
11(a)(2) of each demonstration project under
this Act; and
(B) each report received under subsection
(a) for the applicable year.
(2) FINAL REPORT.—The Comptroller General
shall submit a final report to the Congress within 9
months after the conclusion of the demonstration
program under this Act that summarizes the find-
ings of the annual evaluations conducted pursuant to
section 11(a)(2).
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