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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 pro-
gram.
(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—