SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Academic Emergency Act''.

SEC. 2. PROGRAM AUTHORIZED.

    (a) In General.--The Secretary is authorized to provide funds to 
States that have 1 or more schools designated under section 3 as 
academic emergency schools to provide parents whose children attend 
such schools with education alternatives.
    (b) Grants to States.--Grants awarded to a State under this Act 
shall be awarded for a period of not more than 5 years.

SEC. 3. ACADEMIC EMERGENCY DESIGNATION.

    (a) Designation.--The Governor of each State may designate 1 or 
more schools in the State that meet the eligibility requirements set 
forth in subsection (b) as academic emergency schools.
    (b) Eligibility.--To be designated as an academic emergency school, 
the school shall be a public elementary school--
            (1) with a consistent record of poor performance by failing 
        to meet minimum academic standards as determined by the State; 
        and
            (2) in which more than 50 percent of the children attending 
        are eligible for free or reduced price lunches under the 
        National School Lunch Act (42 U.S.C. 1751 et seq.).
    (c) List to Secretary.--To receive a grant under this Act, the 
Governor shall submit a list of academic emergency schools to the State 
educational agency and the Secretary.

SEC. 4. APPLICATION AND STATE SELECTION.

    (a) Application.--Each State in which the Governor has designated 1 
or more schools as academic emergency schools shall submit an 
application to the Secretary that includes the following:
            (1) Assurances.--Assurances that the State shall--
                    (A) use the funds provided under this Act to 
                supplement, not supplant, State and local funds that 
                would otherwise be available for the purposes of this 
                Act;
                    (B) provide written notification to the parents of 
                every child eligible to receive academic emergency 
                relief funds under this Act, informing the parents of 
                the voluntary nature of the program established under 
                this Act, and the availability of qualified schools 
                within their geographic area;
                    (C) provide parents and the education community 
                with easily accessible information regarding available 
                education alternatives; and
                    (D) not reserve more than 4 percent of the amount 
                made available under this Act to pay administrative 
                expenses.
            (2) Information.--Information regarding each academic 
        emergency school, for the school year in which the application 
        is submitted, regarding the number of children attending such 
        school, including the number of children who are eligible for 
        free or reduced-price lunch under the National School Lunch Act 
        (42 U.S.C. 1751 et seq.) and the level of student performance.
    (b) State Awards.--
            (1) State selection.--From the amount appropriated pursuant 
        to the authority of section 14 in any fiscal year, the 
        Secretary shall award grants to States in accordance with this 
        section.
            (2) Priority.--To the extent practicable, the Secretary 
        shall ensure that each State that completes an application in 
        accordance with subsection (a) shall receive a grant of 
        sufficient size to provide education alternatives to not less 
        than 1 academic school.
            (3) Award criteria.--In determining the amount of a grant 
        award to a State under this Act, the Secretary shall take into 
        consideration the number of schools designated as academic 
        emergencies in the State and the number of eligible students in 
        such schools.
            (4) State plan.--Each State that applies for funds under 
        this Act shall establish a plan--
                    (A) to distribute funds to academic emergency 
                schools selected under section 5(a)(1);
                    (B) to ensure that--
                            (i) the greatest number of eligible 
                        students who attend academic emergency schools 
                        have an opportunity to receive an academic 
                        emergency relief funds; and
                            (ii) each academic emergency school 
                        continues to receive, in accordance with 
                        section 5(c), payments for each eligible 
                        student who leaves the school to attend a 
                        qualified school;
                    (C) to develop a simple procedure to allow parents 
                of participating eligible students and selected 
                academic emergency schools to redeem academic emergency 
                relief funds.

SEC. 5. AWARDS TO ACADEMIC EMERGENCY SCHOOLS.

    (a) Subgrant Awards.--
            (1) In general.--From amounts made available under this Act 
        to a State and not reserved for administrative expenses under 
section 4(a)(1)(D), the State shall select academic emergency schools 
to receive a subgrant based on--
                    (A) the number of eligible students attending 
                academic emergency school;
                    (B) the availability of qualified schools near such 
                schools; and
                    (C) the academic performance of students in such 
                schools.
            (2) Class size reduction.--The funds made available to an 
        academic emergency school pursuant to subsection (c)(1)(B) 
        shall be used exclusively to reduce class size.
    (b) Insufficient Funds.--If the amount of funds made available to a 
State under this Act is insufficient to provide every eligible student 
in a selected academic emergency school with academic emergency relief 
funds, the State shall devise a random selection process to provide 
eligible students in such school whose family income does not exceed 
185 percent of the poverty line the opportunity to participate in 
education alternatives established pursuant to this Act.
    (c) Payments.--
            (1) In general.--From the funds made available to a State 
        under this Act, a State shall--
                    (A) pay not more than $3,500 in academic emergency 
                relief funds to the parents of each participating 
                eligible student; and
                    (B) pay $3,500 to an academic emergency school 
                selected for participation under this Act for each 
                participating eligible student who chooses to attend a 
                qualified school.
            (2) Period of awards.--The academic emergency relief funds 
        awarded to parents of participating eligible students and the 
        amounts distributed to academic emergency schools under 
        paragraph (1) shall be awarded for each school year during the 
        grant period which shall terminate--
                    (A) when a participating eligible student is no 
                longer a student in the State; or
                    (B) at the end of 5 years,
        whichever occurs first.
            (3) Duration.--A State shall continue to receive funds 
        under this Act for distribution to parents of participating 
        eligible students and selected academic emergency schools in 
        accordance with subsection (a).

SEC. 6. QUALIFIED SCHOOLS.

    (a) Qualifications.--A State that submits an application to the 
Secretary under section 4 shall publish the qualifications necessary 
for a school to participate as a qualified school under this Act. At a 
minimum, each such school shall--
            (1) provide assurances to the State that it will comply 
        with section 10;
            (2) certify to the State that the amount charged to a 
        parent using academic relief funds for tuition and fees does 
        not exceed the amount for such tuition and fees charged to a 
        parent not using such relief funds whose child attends the 
        qualified school (excluding scholarship students attending such 
        school); and
            (3) report to the State, not later than July 30 of each 
        year in a manner prescribed by the State, information regarding 
        student performance.
    (b) Confidentiality.--No personal identifiers may be used in such 
report, except that the State may request such personal identifiers 
solely for the purpose of verification.

SEC. 7. ACADEMIC EMERGENCY RELIEF FUNDS.

    (a) Use of Academic Emergency Relief Funds.--A parent who receives 
academic emergency relief funds from a State under this Act may use 
such funds to pay the costs of tuition and mandatory fees for a program 
of instruction at a qualified school.
    (b) Not School Aid.--Academic emergency relief funds under this Act 
shall be considered assistance to the student and shall not be 
considered assistance to a qualified school.

SEC. 8. EVALUATION.

    (a) Annual Evaluation.--
            (1) Contract.--The Comptroller General of the United States 
        shall enter into a contract, with an evaluating agency that has 
        demonstrated experience in conducting evaluations, for the 
        conduct of an ongoing rigorous evaluation of the education 
        alternative program established under this Act.
            (2) Annual evaluation requirement.--The contract described 
        in paragraph (1) shall require the evaluating agency entering 
        into such contract to annually evaluate the education 
        alternative program established under this Act in accordance 
        with the evaluation criteria described in subsection (b).
            (3) Transmission.--The contract described in paragraph (1) 
        shall require the evaluating agency entering into such contract 
        to transmit to the Comptroller General of the United States the 
        findings of each annual evaluation under paragraph (2).
    (b) Evaluation Criteria.--The Comptroller General of the United 
States, in consultation with the Secretary, shall establish minimum 
criteria for evaluating the education alternative program established 
under this Act. Such criteria shall provide for--
            (1) a description of the effects of the programs on the 
        level of student participation and parental satisfaction with 
        the education alternatives provided pursuant to this Act 
        compared to the educational achievement of students who choose 
        to remain at academic emergency schools selected for 
        participation under this Act; and
            (2) a description of the effects of the programs on the 
        educational performance of eligible students who receive 
        academic emergency relief funds compared to the educational 
        performance of students who choose to remain at academic 
        emergency schools selected for participation under this Act.

SEC. 9. REPORTS BY COMPTROLLER GENERAL.

    (a) Interim Reports.--Three years after the date of enactment of 
this Act, the Comptroller General of the United States shall submit an 
interim report to Congress on the findings of the annual evaluations 
under section 8(a)(2) for the education alternative program established 
under this Act. The report shall contain a copy of the annual 
evaluation under section 8(a)(2) of education alternative program 
established under this Act.
    (b) Final Report.--The Comptroller General shall submit a final 
report to Congress, not later than 7 years after the date of the 
enactment of this Act, that summarizes the findings of the annual 
evaluations under section 8(a)(2).

SEC. 10. CIVIL RIGHTS.

    (a) In General.--A qualified school under this Act shall not 
discriminate on the basis of race, color, national origin, or sex in 
carrying out the provisions of this Act.
    (b) Applicability and Construction With Respect to Discrimination 
on the Basis of Sex.--
            (1) Applicability.--With respect to discrimination on the 
        basis of sex, subsection (a) shall not apply to a qualified 
        school that is controlled by a religious organization if the 
        application of subsection (a) is inconsistent with the 
        religious tenets of the qualified school.
            (2) Single-sex schools, classes, or activities.--With 
        respect to discrimination on the basis of sex, nothing in 
        subsection (a) shall be construed to prevent a parent from 
        choosing, or a qualified school from offering, a single-sex 
        school, class, or activity.

SEC. 11. RULES OF CONSTRUCTION.

    (a) In General.--Nothing in this Act shall be construed to prevent 
a qualified school that is operated by, supervised by, controlled by, 
or connected to a religious organization from employing, admitting, or 
giving preference to persons of the same religion to the extent 
determined by such school to promote the religious purpose for which 
the qualified school is established or maintained.
    (b) Sectarian Purposes.--Nothing in this Act shall be construed to 
prohibit the use of funds made available under this Act for sectarian 
educational purposes, or to require a qualified school to remove 
religious art, icons, scripture, or other symbols.

SEC. 12. CHILDREN WITH DISABILITIES.

    Nothing in this Act shall affect the rights of students, or the 
obligations of public schools of a State, under the Individuals with 
Disabilities Education Act (20 U.S.C. 1400 et seq.).

SEC. 13. DEFINITIONS.

    As used in this Act:
            (1) The terms ``local educational agency'' and ``State 
        educational agency'' have the same meanings given such terms in 
        section 14101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 8801).
            (2) The term ``eligible student'' means a student enrolled 
        in an academic emergency school during the school year in which 
        the Governor designates the school as an academic emergency 
        school in a grade between K and 4th.
            (3) The term ``Governor'' means the chief executive officer 
        of the State.
            (4) The term ``parent'' includes a legal guardian or other 
        person standing in loco parentis.
            (5) The term ``poverty line'' means the income official 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2)) 
        applicable to a family of the size involved.
            (6) The term ``qualified school'' means a public, private, 
        or independent elementary school that meets the requirements of 
        section 6 and any other qualifications established by the State 
        to accept academic emergency relief funds from the parents of 
        participating eligible students.
            (7) The term ``Secretary'' means the Secretary of 
        Education.
            (8) The term ``State'' means each of the 50 States and the 
        District of Columbia.

SEC. 15. AUTHORIZATIONS OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act 
$200,000,000 for fiscal year 2000 and such sums as may be necessary for 
each of the fiscal years 2001 through 2004, except that the amount 
authorized to be appropriated may not exceed $200,000,000 for any 
fiscal year.
Output: (Sec. 3) Authorizes State Governors to designate as academic emergency schools one or more public elementary schools in their States: (1) with a consistent record of poor performance by failing to meet minimum academic standards as determined by the State; and (2) in which more than 50 percent of the children attending are eligible for free or reduced price lunches under the National School Lunch Act.
Sets forth requirements for: (1) lists of such schools; (2) State applications, including certain assurances and information; (3) selection, priorities, and criteria for grant awards to States; and (4) State plans.
(Sec. 5) Requires recipient States to use such grants to make subgrants to academic emergency schools, based on: (1) the number of eligible students (in grades K through four) attending; (2) the availability of qualified schools near such schools; and (3) the academic performance of students in such schools. Requires the State, if its grant amount is insufficient to provide every eligible student in a selected academic emergency school with academic emergency relief funds, to devise a random selection process to provide eligible students whose family income does not exceed 185 percent of the poverty line the opportunity to participate in education alternatives established pursuant to this Act.
Requires States to pay from grant funds: (1) up to $3,500 in academic emergency relief to the parents of each participating eligible student in grades K through four; and (2) $3,500 (for class size reduction only) to an academic emergency school selected for program participation, for each participating eligible student who chooses to attend a qualified school.
(Sec. 6) Allows a qualified school to be any public, private, or independent elementary school that meets certain minimum requirements and any other qualifications established by the State to accept academic emergency relief funds from the parents of participating eligible students.
Requires applicant States to publish their criteria for a qualified school under this Act. Requires, at a minimum, each such school to provide to the State: (1) assurances of compliance with specified civil rights requirements; (2) certification that the tuition and fees charged to a parent using academic relief funds does not exceed the amount charged to a parent not using such relief funds whose child attends the qualified school (excluding scholarship students); and (3) an annual report on student performance.
(Sec. 7) Allows parents to use academic emergency relief funds to pay tuition and mandatory fees for an instruction program at a qualified school. Treats academic emergency relief funds as assistance to the student, not to the qualified school.
(Sec. 8) Directs the Comptroller General to arrange for annual evaluations of the education alternative program.
(Sec. 10) Prohibits qualified schools from discriminating on the basis of race, color, national origin, or sex in carrying out the provisions of this Act. Makes such sex discrimination prohibition inapplicable if: (1) it is inconsistent with the religious tenets of a qualified school controlled by a religious organization; or (2) it would be construed as preventing a parent from choosing, or a qualified school from offering, a single-sex school, class, or activity.
(Sec. 11) Declares that nothing in this Act shall be construed to: (1) prevent a qualified school that is operated by, supervised by, controlled by, or connected to a religious organization from employing, admitting, or giving preference to persons of the same religion to the extent determined by such school to promote the religious purpose for which the qualified school is established or maintained; (2) prohibit the use of funds made available under this Act for sectarian educational purposes; or (3) require a qualified school to remove religious art, icons, scripture, or other symbols.
(Sec. 12) Provides that nothing in this Act shall affect the rights of students, or the obligations of public schools of a State, under the Individuals with Disabilities Education Act.
(Sec. 15) Authorizes appropriations.