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<PRE>[DOCID: f:s1502enr.txt]
        S.1502

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
                                  eight


                                 An Act


 
Entitled the ``District of Columbia Student Opportunity Scholarship Act 
                               of 1998''.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SEC. 1. SHORT TITLE; FINDINGS; PRECEDENTS.

    (a) Short Title.--This Act may be cited as the ``District of 
Columbia Student Opportunity Scholarship Act of 1998''.
    (b) Findings.--Congress makes the following findings:
        (1) Public education in the District of Columbia is in a 
    crisis, as evidenced by the following:
            (A) The District of Columbia schools have the lowest 
        average of any school system in the Nation on the National 
        Assessment of Education Progress.
            (B) 72 percent of fourth graders in the District of 
        Columbia tested below basic proficiency on the National 
        Assessment of Education Progress in 1994.
            (C) Since 1991, there has been a net decline in the reading 
        skills of District of Columbia students as measured in scores 
        on the standardized Comprehensive Test of Basic Skills.
            (D) At least 40 percent of District of Columbia students 
        drop out of or leave the school system before graduation.
            (E) The National Education Goals Panel reported in 1996 
        that both students and teachers in District of Columbia schools 
        are subjected to levels of violence that are twice the national 
        average.
            (F) Nearly two-thirds of District of Columbia teachers 
        reported that violent student behavior is a serious impediment 
        to teaching.
            (G) Many of the District of Columbia's 152 schools are in a 
        state of terrible disrepair, including leaking roofs, bitterly 
        cold classrooms, and numerous fire code violations.
        (2) Significant improvements in the education of educationally 
    deprived children in the District of Columbia can be accomplished 
    by--
            (A) increasing educational opportunities for the children 
        by expanding the range of educational choices that best meet 
        the needs of the children;
            (B) fostering diversity and competition among school 
        programs for the children;
            (C) providing the families of the children more of the 
        educational choices already available to affluent families; and
            (D) enhancing the overall quality of education in the 
        District of Columbia by increasing parental involvement in the 
        direction of the education of the children.
        (3) The 350 private schools in the District of Columbia and the 
    surrounding area offer a more safe and stable learning environment 
    than many of the public schools.
        (4) Costs are often much lower in private schools than 
    corresponding costs in public schools.
        (5) Not all children are alike and therefore there is no one 
    school or program that fits the needs of all children.
        (6) The formation of sound values and moral character is 
    crucial to helping young people escape from lives of poverty, 
    family break-up, drug abuse, crime, and school failure.
        (7) In addition to offering knowledge and skills, education 
    should contribute positively to the formation of the internal norms 
    and values which are vital to a child's success in life and to the 
    well-being of society.
        (8) Schools should help to provide young people with a sound 
    moral foundation which is consistent with the values of their 
    parents. To find such a school, parents need a full range of choice 
    to determine where their children can best be educated.
    (c) Precedents.--The United States Supreme Court has determined 
that programs giving parents choice and increased input in their 
children's education, including the choice of a religious education, do 
not violate the Constitution. The Supreme Court has held that as long 
as the beneficiary decides where education funds will be spent on such 
individual's behalf, public funds can be used for education in a 
religious institution because the public entity has neither advanced 
nor hindered a particular religion and therefore has not violated the 
establishment clause of the first amendment to the Constitution. 
Supreme Court precedents include--
        (1) Wisconsin v. Yoder, 406 U.S. 205 (1972); Pierce v. Society 
    of Sisters, 268 U.S. 510 (1925); and Meyer v. Nebraska, 262 U.S. 
    390 (1923) which held that parents have the primary role in and are 
    the primary decision makers in all areas regarding the education 
    and upbringing of their children;
        (2) Mueller v. Allen, 463 U.S. 388 (1983) which declared a 
    Minnesota tax deduction program that provided State income tax 
    benefits for educational expenditures by parents, including tuition 
    in religiously affiliated schools, does not violate the 
    Constitution;
        (3) Witters v. Department of Services for the Blind, 474 U.S. 
    481 (1986) in which the Supreme Court ruled unanimously that public 
    funds for the vocational training of the blind could be used at a 
    Bible college for ministry training; and
        (4) Zobrest v. Catalina Foothills School District, 509 U.S. 1 
    (1993) which held that a deaf child could receive an interpreter, 
    paid for by the public, in a private religiously affiliated school 
    under the Individual with Disabilities Education Act (20 U.S.C. 
    1400 et seq.). The case held that providing an interpreter in a 
    religiously affiliated school did not violate the establishment 
    clause of the first amendment of the Constitution.

SEC. 2. DEFINITIONS.

    As used in this Act--
        (1) the term ``Board'' means the Board of Directors of the 
    Corporation established under section 3(b)(1);
        (2) the term ``Corporation'' means the District of Columbia 
    Scholarship Corporation established under section 3(a);
        (3) the term ``eligible institution''--
            (A) in the case of an eligible institution serving a 
        student who receives a tuition scholarship under section 
        4(c)(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 4(c)(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 instruction described in section 4(c)(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 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.

SEC. 3. DISTRICT OF COLUMBIA SCHOLARSHIP CORPORATION.

    (a) General Requirements.--
        (1) In general.--There is authorized to be established a 
    private, nonprofit corporation, to be known as the ``District of 
    Columbia Scholarship Corporation'', which is neither an agency nor 
    establishment 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 th
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is Act, and to determine student and 
    school eligibility for participation in such program.
        (3) Consultation.--The Corporation shall exercise its 
    authority--
            (A) in a manner consistent with maximizing educational 
        opportunities for the maximum number of interested families; 
        and
            (B) in consultation with the District of Columbia 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 District of Columbia.
        (4) Application of provisions.--The Corporation shall be 
    subject to the provisions of this Act, and, to the extent 
    consistent with this Act, to the District of Columbia Nonprofit 
    Corporation 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 actions, to be a resident of the 
    District of Columbia.
        (6) Fund.--There is established in the Treasury 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 appropriated under 
    this Act shall remain available until expended.
        (9) Uses.--Funds authorized to be appropriated under this Act 
    shall be used by the Corporation in a prudent and financially 
    responsible manner, solely for scholarships, contracts, and 
    administrative 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 percent of the amount 
        appropriated to carry out this Act 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 Act as the ``Board''), comprised 
        of 7 members with 6 members of the Board appointed by the 
        President not later than 30 days after receipt of nominations 
        from the Speaker of the House of Representatives and the 
        Majority Leader of the Senate.
            (B) House nominations.--The President shall appoint 3 of 
        the members from a list of 9 individuals nominated by the 
        Speaker of the House of Representatives in consultation with 
        the Minority Leader of the House of Representatives.
            (C) Senate nominations.--The President shall appoint 3 
        members from a list of 9 individuals nominated by the Majority 
        Leader of the Senate in consultation with the Minority Leader 
        of the Senate.
            (D) Deadline.--The Speaker of the House of Representatives 
        and Majority Leader of the Senate shall submit their 
        nominations to the President not later than 30 days after the 
        date of the enactment of this Act.
            (E) Appointee of mayor.--The Mayor shall appoint 1 member 
        of the Board not later than 60 days after the date of the 
        enactment of this Act.
            (F) Possible interim members.--If the President does not 
        appoint the 6 members of the Board in the 30-day period 
        described in subparagraph (A), then the Speaker of the House of 
        Representatives and the Majority Leader of the Senate shall 
        each appoint 2 members of the Board, and the Minority Leader of 
        the House of Representatives and the Minority Leader of the 
        Senate shall each appoint 1 member of the Board, from among the 
        individuals nominated pursuant to subparagraphs (A) and (B), as 
        the case may be. The appointees under the preceding sentence 
        together with the appointee of the Mayor, shall serve as an 
        interim Board with all the powers and other duties of the Board 
        described in this Act, until the President makes the 
        appointments as described in this subsection.
        (2) Powers.--All powers of the Corporation shall vest in and be 
    exercised under the authority of the Board.
        (3) Elections.--Members of the Board annually shall elect 1 of 
    the members of the Board to be the Chairperson of the Board.
        (4) Residency.--All members appointed to the Board shall be 
    residents of the District of Columbia at the time of appointment 
    and while serving on the Board.
        (5) Nonemployee.--No member of the Board may be an employee of 
    the United States Government 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 initial Board shall 
    serve as incorporators and shall take whatever steps are necessary 
    to establish the Corporation 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 occurring 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 consecutive terms of 5 years each. A 
    partial term shall be considered as 1 full term. Any vacancy on the 
    Board shall not affect the Board's power, but shall be filled in a 
    manner consistent with this Act.
        (9) No benefit.--No part of the income or assets of the 
    Corporation shall inure to the benefit of any Director, officer, or 
    employee of the Corporation, except as salary or reasonable 
    compensation for services.
        (10) Political activity.--The Corporation may not contribute to 
    or otherwise support any political party or candidate for elective 
    public office.
        (11) No officers or employees.--The members of the Board shall 
    not, by reason of such membership, 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 engaged in duties related to such 
    meetings or other activities of the Board pursuant to this Act, 
    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 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 a
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ppoint and fix the salary of such additional 
    personnel as the Executive Director considers appropriate.
        (3) Annual rate.--No staff of the Corporation 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 qualification may be 
    used in selecting, appointing, promoting, or taking other personnel 
    actions with respect to officers, agents, or employees of the 
    Corporation.
    (d) Powers of the Corporation.--
        (1) Generally.--The Corporation is authorized to obtain grants 
    from, and make contracts with, individuals and with private, State, 
    and Federal agencies, organizations, and institutions.
        (2) Hiring authority.--The Corporation may hire, or accept the 
    voluntary services of, consultants, experts, advisory boards, and 
    panels to aid the Corporation in carrying out this Act.
    (e) Financial Management and Records.--
        (1) Audits.--The financial statements of the Corporation shall 
    be--
            (A) maintained in accordance with generally accepted 
        accounting principles for nonprofit corporations; and
            (B) audited annually by independent certified public 
        accountants.
        (2) Report.--The report for each such audit shall be included 
    in the annual report to Congress required by section 11(c).
    (f) Administrative Responsibilities.--
        (1) Scholarship application schedule and procedures.--Not later 
    than 30 days after the initial Board is appointed and the first 
    Executive Director of the Corporation is hired under this Act, the 
    Corporation shall implement a schedule and procedures for 
    processing applications for, and awarding, student scholarships 
    under this Act. The schedule and procedures shall include 
    establishing a list of certified eligible institutions, 
    distributing scholarship information to parents and the general 
    public (including through a newspaper of general circulation), and 
    establishing deadlines for steps in the scholarship application and 
    award process.
        (2) Institutional applications and eligibility.--
            (A) In general.--An eligible institution that desires to 
        participate in the scholarship program under this Act shall 
        file an application with the Corporation for certification for 
        participation in the scholarship program under this Act that 
        shall--
                (i) demonstrate that the eligible institution has 
            operated with not less than 25 students during the 3 years 
            preceding the year for which the determination is made 
            unless the eligible institution is applying for 
            certification as a new eligible institution under 
            subparagraph (C);
                (ii) contain an assurance that the eligible institution 
            will comply with all applicable requirements of this Act;
                (iii) contain an annual statement of the eligible 
            institution's budget; and
                (iv) describe the eligible institution's proposed 
            program, including personnel qualifications and fees.
            (B) Certification.--
                (i) In general.--Except as provided in subparagraph 
            (C), not later than 60 days after receipt of an application 
            in accordance with subparagraph (A), the Corporation shall 
            certify an eligible institution to participate in the 
            scholarship program under this Act.
                (ii) Continuation.--An eligible institution's 
            certification to participate in the scholarship program 
            shall continue unless such eligible institution's 
            certification is revoked in accordance with subparagraph 
            (D).
            (C) New eligible institution.--
                (i) 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 Act 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;
                    (V) assurances that the eligible institution will 
                begin operations with not less than 25 students;
                    (VI) assurances that the eligible institution will 
                comply with all applicable requirements of this Act; 
                and
                    (VII) a statement that satisfies the requirements 
                of clauses (ii) and (iv) of subparagraph (A).

                (ii) Certification.--Not later than 60 days after the 
            date of receipt of an application described in clause (i), 
            the Corporation shall certify in writing the eligible 
            institution's provisional certification to participate in 
            the scholarship program under this Act unless the 
            Corporation determines that good cause exists to deny 
            certification.
                (iii) Renewal of provisional certification.--After 
            receipt of an application under clause (i) from an eligible 
            institution that includes a statement of the eligible 
            institution's budget completed not earlier than 12 months 
            before the date such application is filed, the Corporation 
            shall renew an eligible institution's provisional 
            certification for the second and third years of the 
            school's participation in the scholarship program under 
            this Act unless the Corporation finds--

                    (I) good cause to deny the renewal, including a 
                finding of a pattern of violation of requirements 
                described in paragraph (3)(A); or
                    (II) consistent failure of 25 percent or more of 
                the students receiving scholarships under this Act and 
                attending such school to make appropriate progress (as 
                determined by the Corporation) in academic achievement.

                (iv) Denial of certification.--If provisional 
            certification or renewal of provisional certification under 
            this subsection is denied, then the Corporation shall 
            provide a written explanation to the eligible institution 
            of the reasons for such denial.
            (D) Revocation of eligibility.--
                (i) In general.--The Corporation, after notice and 
            hearing, may revoke an eligible institution's certification 
            to participate in the scholarship program under this Act 
            for a year succeeding the year for which the determination 
            is made for--

                    (I) good cause, including a finding of a pattern of 
                violation of program requirements described in 
                paragraph (3)(A); or
                    (II) consistent failure of 25 percent or more of 
                the students receiving scholarships under this Act and 
                attending such school to make appropriate progress (as 
                determined by the Corporation) in academic achievement.

                (ii) Explanation.--If the certification of an eligible 
            institution is revoked, the Corporation shall provide a 
           
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 written explanation of the Corporation's decision to such 
            eligible institution and require a pro rata refund of the 
            proceeds of the scholarship funds received under this Act.
        (3) Participation requirements for eligible institutions.--
            (A) Requirements.--Each eligible institution participating 
        in the scholarship program under this Act shall--
                (i) provide to the Corporation not later than June 30 
            of each year the most recent annual statement of the 
            eligible institution's budget; and
                (ii) charge a student that receives a scholarship under 
            this Act 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 subparagraph (A), but 
        neither the Corporation nor any governmental entity may impose 
        requirements upon an eligible institution as a condition for 
        participation in the scholarship program under this Act, other 
        than requirements established under this Act.

SEC. 4. SCHOLARSHIPS AUTHORIZED.

    (a) Eligible Students.--The Corporation is authorized to award 
tuition scholarships under subsection (c)(1) and enhanced achievement 
scholarships under subsection (c)(2) to students in kindergarten 
through grade 12--
        (1) who are residents of the District of Columbia; and
        (2) whose family income does not exceed 185 percent of the 
    poverty line.
    (b) Scholarship Priority.--
        (1) First.--The Corporation first shall 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 public kindergarten, 
        except that this subparagraph shall apply only for academic 
        years 1997-1998, 1998-1999, and 1999-2000; or
            (B) have received a scholarship from the Corporation for 
        the academic year preceding the academic year for which the 
        scholarship is awarded.
        (2) Second.--If funds remain for a fiscal year for awarding 
    scholarships after awarding scholarships under paragraph (1), the 
    Corporation shall award scholarships to students who are described 
    in subsection (a), not described in paragraph (1), and otherwise 
    eligible for a scholarship under this Act.
        (3) Lottery selection.--The Corporation shall award 
    scholarships to students under this subsection using a lottery 
    selection process whenever the amount made available to carry out 
    this Act for a fiscal year is insufficient to award a scholarship 
    to each student who is eligible to receive a scholarship under this 
    Act for the fiscal year.
    (c) Use of Scholarship.--
        (1) Tuition scholarships.--A tuition scholarship may be used 
    for the payment of the cost of the tuition and mandatory fees for, 
    and transportation to attend, an eligible institution located 
    within the geographic boundaries of the District of Columbia; 
    Montgomery 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, and transportation to attend, a 
    program of instruction provided by an eligible institution which 
    enhances student achievement of the core curriculum and is operated 
    outside of regular school hours to supplement the regular school 
    program.
    (d) Not School Aid.--A scholarship under this Act shall be 
considered assistance to the student and shall not be considered 
assistance to an eligible institution.

SEC. 5. SCHOLARSHIP AWARDS.

    (a) Awards.--From the funds made available under this Act, the 
Corporation shall award a scholarship to a student and make scholarship 
payments in accordance with section 6.
    (b) Notification.--Each eligible institution that receives the 
proceeds of a scholarship payment under subsection (a) shall notify the 
Corporation not later than 10 days after--
        (1) the date that a student receiving a scholarship under this 
    Act is enrolled, of the name, address, and grade level of such 
    student;
        (2) the date of the withdrawal or expulsion of any student 
    receiving a scholarship under this Act, of the withdrawal or 
    expulsion; and
        (3) the date that a student receiving a scholarship under this 
    Act 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 exceed the lesser of--
            (A) the cost of tuition and mandatory fees for, and 
        transportation to attend, an eligible institution; or
            (B) $3,200 for fiscal year 1998, with such amount adjusted 
        in proportion to changes in the Consumer Price Index for all 
        urban consumers 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 attend, 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 consumers published by the Department of Labor for each 
        of fiscal years 1999 through 2002.
    (d) Enhanced Achievement Scholarship.--An enhanced achievement 
scholarship may not exceed the lesser of--
        (1) the costs of tuition and mandatory fees for, and 
    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 Department of Labor for each of fiscal years 1999 
    through 2002.

SEC. 6. SCHOLARSHIP PAYMENTS.

    (a) Payments.--The Corporation shall make scholarship payments to 
the parent of a student awarded a scholarship under this Act.
    (b) Distribution of Scholarship Funds.--Scholarship funds may be 
distributed by check, or another form of disbursement, issued by the 
Corporation and made payable directly to a parent of a student awarded 
a scholarship under this Act. The parent may use the scholarship funds 
only for payment of tuition, mandatory fees, and transportation costs 
as described in this Act.
    (c) Pro Rata Amounts for Student Withdrawal.--If a student 
receiving a scholarship under this Act withdraws or is expelled from an 
eligible institution after the proceeds of a scholarship is paid to the 
eligible institution, then the eligible institution shall refund to the 
Corporation on a pro rata basis the proportion of any such proceeds 
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. 7. CIVIL RIGHTS.

    (a) In General.--An eligible institution participating in the 
scholarship program 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 bas
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is 
    of sex, subsection (a) shall not apply to an eligible institution 
    that is controlled by a religious organization if the application 
    of subsection (a) is inconsistent with the religious tenets of the 
    eligible institution.
        (2) Construction.--With respect to discrimination on the basis 
    of sex, nothing in subsection (a) shall be construed to require any 
    person, or public or private entity to provide or pay, or to 
    prohibit any such person or entity from providing or paying, for 
    any benefit or service, including the use of facilities, related to 
    an abortion. Nothing in the preceding sentence shall be construed 
    to permit a penalty to be imposed on any person or individual 
    because such person or individual is seeking or has received any 
    benefit or service related to a legal abortion.
        (3) 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 an 
    eligible institution from offering, a single-sex school, class, or 
    activity.
    (c) Revocation.--Notwithstanding section 3(f)(2)(D), if the 
Corporation determines that an eligible institution participating in 
the scholarship program under this Act is in violation of subsection 
(a), then the Corporation shall revoke such eligible institution's 
certification to participate in the program.

SEC. 8. CHILDREN WITH DISABILITIES.

    Nothing in this Act shall affect the rights of students, 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. 9. RULE OF CONSTRUCTION.

    (a) In General.--Nothing in this Act shall be construed to prevent 
any eligible institution which 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 institution to promote the 
religious purpose for which the eligible institution 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 an eligible institution to remove 
religious art, icons, scripture, or other symbols.

 SEC. 10. REPORTING REQUIREMENTS.

    (a) In General.--An eligible institution participating in the 
scholarship program under this Act shall report to the Corporation not 
later than July 30 of each year in a manner prescribed by the 
Corporation, the following data:
        (1) Student achievement in the eligible institution's programs.
        (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 scholarship 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, programs, facilities, 
    credentials of personnel, and disciplinary 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. 11. 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 demonstrated experience in conducting 
evaluations, for an independent evaluation of the scholarship program 
under this Act, including--
        (1) a comparison of test scores 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 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 students' 
    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 improvement 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 be made available to the public 
upon request except that no personal identifiers shall be made public.
    (c) Report to Congress.--Not later than September 1 of each year, 
the Corporation shall submit a progress report on the scholarship 
program to the appropriate committees of Congress. Such report shall 
include a review of how scholarship funds were expended, including the 
initial academic achievement levels of students who have participated 
in the scholarship program.
    (d) Authorization.--There are authorized to be appropriated for the 
study described in subsection (a), $250,000, which shall remain 
available until expended.

SEC. 12. JUDICIAL REVIEW.

    (a) Jurisdiction.--
        (1) In General.--The United States District Court for the 
    District of Columbia shall have jurisdiction in any action 
    challenging the constitutionality of the scholarship program under 
    this Act and shall provide expedited review.
        (2) Standing.--The parent of any student eligible to receive a 
    scholarship under this Act shall have standing in an action 
    challenging the constitutionality of the scholarship program under 
    this Act.
    (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.
  SEC. 13. APPROPRIATION OF INITIAL FEDERAL CONTRIBUTION TO FUND.
    There are hereby appropriated, out of any money in the Treasury not 
otherwise appropriated, $7,000,000 for the District of Columbia 
Scholarship Fund.

 SEC. 14. EFFECTIVE DATE.

    This Act shall be effective for each of the fiscal years 1998 
through 2002.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

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