Opportunity for Every Child Act of 2003

108th CONGRESS
1st Session

S. 4

To improve access to a quality education for all students.

IN THE SENATE OF THE UNITED STATES

February 14, 2003

Mr. GREGG (for himself, Mr. FRIST, Mr. MCCONNELL, Mr. SANTORUM, Mr. ALEXANDER, Mr. ENSIGN, and Mr. GRAHAM of South Carolina) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To improve access to a quality education for all students.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Opportunity for Every Child Act of 2003'.

(b) TABLE OF CONTENTS-

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I--EMPOWERMENT

Sec. 101. Short title.

Sec. 102. Sense of the Senate.

Part A--School Choice

Sec. 111. Short title and purpose.

Sec. 112. Definitions.

Sec. 113. Program authorized.

Sec. 114. Annual reports.

Sec. 115. Applications.

Sec. 116. Priority.

Sec. 117. Interaction with other laws.

Sec. 118. Standing.

Sec. 119. Authorization of appropriations.

Part B--District of Columbia Scholarship Program

Sec. 121. Short title, findings, and precedents.

Sec. 122. Definitions.

Sec. 123. District of Columbia Scholarship Corporation.

Sec. 124. Scholarships authorized.

Sec. 125. Scholarship awards.

Sec. 126. Scholarship payments.

Sec. 127. Civil rights.

Sec. 128. Children with disabilities.

Sec. 129. Rule of construction.

Sec. 130. Reporting requirements.

Sec. 131. Program appraisal.

Sec. 132. Standing.

Sec. 133. Effective date.

Part C--Charter Schools

Sec. 141. Authorization of appropriations.

TITLE II--IDEA

Sec. 201. Sense of the Senate regarding IDEA.

Sec. 202. Fully funding IDEA.

TITLE III--HIGHER EDUCATION

Sec. 301. Sense of the Senate regarding expanding access to college.

Sec. 302. Sense of the Senate regarding minority-serving institutions.

Sec. 303. Authorization of appropriations.

TITLE IV--RECRUITING TEACHERS

Part A--Loan Forgiveness for Mathematics, Science, and Special Education Teachers

Sec. 411. Short title.

Sec. 412. Sense of the Senate regarding loan forgiveness.

Sec. 413. Revision of teacher loan forgiveness programs.

Part B--Classroom Expense Deduction

Sec. 421. Expansion of classroom expense deduction for teachers.

TITLE V--MAKING EDUCATION MORE AFFORDABLE

Sec. 501. Sense of the Senate regarding making education more affordable.

Sec. 502. Affordable education provisions made permanent.

Sec. 503. Credit for education, tuition, and transportation expenses of students assigned to schools identified for school improvement.

TITLE I--EMPOWERMENT

SEC. 101. SHORT TITLE.

This title may be cited as the `Empowering Parents Act of 2003'.

SEC. 102. SENSE OF THE SENATE.

It is the sense of the Senate that--

(1) parents are best equipped to make decisions for their children, including the educational setting that will best serve the interests and educational needs of their child;

(2) parents of children in underperforming public schools should have the choice to send their children to higher performing schools, be they public schools (including charter schools) or private schools;

(3) for many parents in rural and urban areas, public school choice provided for under the amendments made by the No Child Left Behind Act of 2001 is not a meaningful option due to capacity constraints, therefore in keeping with the spirit of the No Child Left Behind Act of 2001, private school choice should be made available to those parents;

(4) the District of Columbia schools have the lowest student performance averages of any school system in the Nation on the National Assessment of Educational Progress (NAEP) and therefore parents in the District of Columbia are in particular need of more options, including the possibility of sending their child to private school; and

(5) charter schools support and stimulate improved public school performance by promoting competition and providing parents increased options for their children, and therefore the Federal Government should encourage their creation and growth, particularly due to the unique financing barriers charter schools face.

PART A--SCHOOL CHOICE

SEC. 111. SHORT TITLE AND PURPOSE.

(a) SHORT TITLE- This part may be cited as the `School Choice Incentive Act of 2003'.

(b) PURPOSE- The purpose of this part is to provide low-income students attending under performing public elementary or secondary schools the opportunity to attend a private school when public school choice is unavailable.

SEC. 112. DEFINITIONS.

In this part:

(1) EDUCATION CERTIFICATE- The term `education certificate' means a certificate provided to an eligible student to enable the

eligible student to attend a private school.

(2) ELIGIBLE ENTITY- The term `eligible entity' means a public agency, institution, or organization, such as a State, a State or local educational agency, a county or municipal agency, a consortium of public and private organizations, or a private nonprofit organization, that can demonstrate, to the satisfaction of the Secretary, its ability to--

(A) receive, disburse, and account for Federal funds; and

(B) carry out the activities described in the application submitted under section 115.

(3) ELIGIBLE STUDENT- The term `eligible student' means a child in any of the grades kindergarten through grade 12--

(A) who is eligible for a free or reduced price meal under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); and

(B) who attends, is scheduled to attend, or plans to attend in the next school year (in the case of a child who is not yet of school age), a school identified for school improvement.

(4) PARENT- The term `parent' includes a legal guardian or other individual acting in loco parentis.

(5) PRIVATE SCHOOL- The term `private school' means any private elementary or secondary school, including a private elementary or secondary sectarian school.

(6) SCHOOL IDENTIFIED FOR SCHOOL IMPROVEMENT- The term `school identified for school improvement' means a public elementary or secondary school identified for school improvement under section 1116(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6316).

(7) SECRETARY- The term `Secretary' means the Secretary of Education.

SEC. 113. PROGRAM AUTHORIZED.

(a) IN GENERAL- The Secretary may award grants to eligible entities to enable the eligible entities to provide education certificates to eligible students according to the requirements of this part.

(b) REQUIREMENT- An eligible entity shall only award an education certificate to an eligible student if the local educational agency serving the public school the eligible student would otherwise attend is unable to enroll the eligible student in another public school that has not been identified for school improvement.

(1) shall provide educational certificates to eligible students to supplement the costs of private school tuition, mandatory fees, and costs of transportation (if any); and

(2) may expend not more than 15 percent of the amount received under the grant in the first fiscal year for which the eligible entity provides education certificates under this part, or 10 percent of such amount in any subsequent year, for the costs of administration, including--

(A) providing information to parents about the education certificates;

(B) seeking the involvement of private schools;

(D) determining the amount of, and issuing, education certificates; and

(E) compiling and maintaining such financial and programmatic records as the Secretary may require.

(d) EDUCATION CERTIFICATES-

(1) AMOUNT- The amount of an education certificate shall be calculated on a yearly basis, and shall be equal to the cost of tuition and mandatory fees for, and transportation, as appropriate, to attend, a private school.

(2) MAXIMUM AMOUNT- Notwithstanding any other provision of this part, the maximum amount of an eligible student's education certificate under this part shall not exceed the per pupil expenditure for elementary and secondary education by the local educational agency serving the school identified for school improvement.

(3) TAX STATUS- An education certificate, and funds provided under the education certificate, shall not be treated as income of the parents for purposes of Federal tax laws or for determining eligibility for any other Federal program.

(e) ELIGIBLE ENTITY RESPONSIBILITIES- Each eligible entity receiving a grant under this part--

(1) shall provide timely annual notice to parents of eligible students explaining the availability of education certificates under this part, which at a minimum, shall include--

(A) a description of the eligibility requirements for participation in the program assisted under this part;

(B) a description of the information needed to make a determination of eligibility for such participation for an eligible student;

(C) a description of the selection procedures to be used if the number of eligible students seeking to participate exceeds the number that can be accommodated; and

(D) the schedule for parents to apply for their eligible students to participate;

(2) shall apply fair and equitable procedures for serving eligible students if the amount available for education certificates is not sufficient to serve all eligible students, and, in such event, shall prioritize serving students from families with the lowest income first;

(3) shall not disclose to the public the identity of any eligible student without the written permission of a parent of the student;

(4) shall promote maximum participation in the education certificate program to ensure, to the extent practicable, that parents have as many choices of private schools as possible; and

(5) shall provide annual notice to private schools of the opportunity to participate in the program.

SEC. 114. ANNUAL REPORTS.

Each eligible entity that receives a grant under this part shall submit to the Secretary an annual report. Each such report shall be submitted at such time, in such manner, and accompanied by such information, as the Secretary may require.

SEC. 115. APPLICATIONS.

(a) IN GENERAL- Each eligible entity desiring a grant under this part shall submit an application to the Secretary at such time and in such manner as the Secretary may require.

(b) CONTENTS- Each such application shall contain an assurance by the eligible entity that--

(1) each private school participating in the program has been in operation for at least 1 year prior to accepting education certificates under this part; and

(2) the eligible entity will terminate the involvement of a private school in the program if the private school fails to comply with the requirements of the program.

SEC. 116. PRIORITY.

In awarding grants under this section, the Secretary shall give a priority to eligible entities that propose to carry out education certificate programs serving school districts that have a high number or a high concentration of schools identified for school improvement.

SEC. 117. INTERACTION WITH OTHER LAWS.

(a) PART B OF THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT- Nothing in this part shall be construed to affect the requirements of part B of the Individuals with Disabilities Education Act.

(b) CIVIL RIGHTS- A private school participating in the program under this part shall not discriminate on the basis of race, color, national origin, or sex in carrying out the provisions of this part.

(1) APPLICABILITY- With respect to discrimination on the basis of sex, subsection (a) shall not apply to a private school that is controlled by a religious organization if the application of subsection (a) is inconsistent with the religious tenets of the private school.

(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 a private school from offering, a single-sex school, class, or activity.

(d) REVOCATION- If an eligible entity determines that a private school participating in a program assisted under this section is in violation of subsection (a) or (b), then the eligible entity shall terminate the involvement of the private school in the program.

(e) RULE OF CONSTRUCTION- Nothing in this part shall be construed to prevent a private school 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 the private school to promote the religious purpose for which the private school is established or maintained.

(f) SECTARIAN PURPOSES- Nothing in this part shall be construed to prohibit the use of funds made available under this part for sectarian educational purposes, or to require a private school to remove religious art, icons, scripture, or other symbols.

SEC. 118. STANDING.

The parent of any student eligible to receive an education certificate under this part shall have standing in an action challenging the constitutionality of the education certificate program under this part.

SEC. 119. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this part $75,000,000 for fiscal year 2004 and such sums as may be necessary for each of the 4 succeeding fiscal years.

PART B--DISTRICT OF COLUMBIA SCHOLARSHIP PROGRAM

SEC. 121. SHORT TITLE, FINDINGS, AND PRECEDENTS.

(a) SHORT TITLE- This part may be cited as the `District of Columbia Student Opportunity Scholarship Act of 2003'.

(b) FINDINGS- Congress finds that the Supreme Court, in Zelman v. Simmons-Harris, 536 U.S.C. 639, (2002)--

(1) held that the State-funded school choice program established in Cleveland, Ohio, did not violate the establishment clause of the first amendment of the Constitution because the program was one of true private choice, allowing parents a genuine and independent decision whether to use a tuition scholarship at a participating public or private school; and

(2) determined 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, or religion in general.

SEC. 122. DEFINITIONS.

In this part:

(1) The term `Board' means the Board of Directors of the Corporation established under section 123(b)(1).

(2) The term `Corporation' means the District of Columbia Scholarship Corporation established under section 123(a).

(3) The term `eligible institution'--

(A) in the case of an institution serving a student who receives a tuition scholarship under section 124(d)(1), means a public, private, or independent elementary or secondary school; and

(B) in the case of an institution serving a student who receives an enhanced achievement scholarship under section 124(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 instruction described in section 124(d)(2).

(4) The term `parent' includes a legal guardian or other person standing in loco parentis.

(5) The term `poverty line' means the official poverty line, as established by the Director of the Office of Management and Budget and revised annually under 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. 123. 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 this part, 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 part, and, to the extent consistent with this part, to the District of Columbia Nonprofit Corporation Act (sec. 29-301.01 et seq., D.C. Official Code).

(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 part shall remain available until expended.

(9) USES- Funds authorized to be appropriated under this part shall be used by the Corporation in a prudent and financially responsible manner, solely for scholarships, contracts, and administrative costs.

(10) AUTHORIZATION OF APPROPRIATIONS-

(A) IN GENERAL- There are authorized to be appropriated to the District of Columbia Scholarship Fund--

(i) $7,000,000 for fiscal year 2004;

(ii) $8,000,000 for fiscal year 2005; and

(iii) $10,000,000 for each of fiscal years 2006 through 2009.

(B) LIMITATION- Not more than 7.5 percent of the amount appropriated to carry out this part 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 (hereinafter in this part referred to as the `Board'), comprised of seven members, with six 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 President pro tempore of the Senate.

(B) HOUSE NOMINATIONS- The President shall appoint three of the members from a list of nine 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 three members from a list of nine individuals nominated by the President pro tempore 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 part.

(E) APPOINTEE BY MAYOR- The Mayor of the District of Columbia shall appoint one member of the Board not later than 60 days after the date of the enactment of this part.

(F) POSSIBLE INTERIM MEMBERS- If the President does not appoint the six members of

the Board in the 30-day period described in subparagraph (A), then the Speaker of the House of Representatives and the President pro tempore of the Senate shall each appoint two members of the Board, and the minority leader of the House of Representatives and the minority leader of the Senate shall each appoint one member of the Board, from among the individuals nominated under subparagraphs (A) and (B), as the case may be. The appointees under the preceding sentence together with the appointee of the Mayor of the District of Columbia, shall serve as an interim Board with all the powers and other duties of the Board described in this part, 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 one 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 (sec. 29-301.01 et seq., D.C. Official Code).

(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 two consecutive terms of 5 years each. A partial term shall be considered as one full term. Any vacancy on the Board shall not affect the Board's power, but shall be filled in a manner consistent with this part.

(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) NOT 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 part, 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.

(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 appoint 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 part.

(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 131(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 part, the Corporation shall implement a schedule and procedures for processing applications for, and awarding, student scholarships under this part. The schedule

and procedures shall include establishing a list of certified eligible institutions located in the areas specified in section 124(d)(1)), 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 part shall file an application with the Corporation for certification for participation in the scholarship program under this part that shall--

(i) demonstrate that the eligible institution has operated with not fewer 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 part;

(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 part.

(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).

(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 part 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 part; 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 part 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 part 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 part 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 opportunity for a hearing, may revoke an eligible institution's certification to participate in the scholarship program under this part 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) EXPLANATION- If the certification of an eligible institution is revoked, the Corporation shall provide a 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 part.

(iii) STUDENT ELIGIBILITY NOT AFFECTED- A student receiving a scholarship under this part who attends an institution that has had its eligibility revoked under this subparagraph may utilize such scholarship at another eligible institution.

(3) PARTICIPATION REQUIREMENTS FOR ELIGIBLE INSTITUTIONS-

(A) REQUIREMENTS- Each eligible institution participating in the scholarship program under this part 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 part not more than the cost of tuition and mandatory fees for, and (as appropriate) 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 part, other than requirements established under this part.

SEC. 124. SCHOLARSHIPS AUTHORIZED.

(a) ELIGIBLE STUDENTS- The Corporation may award tuition scholarships under subsection (d)(1) and enhanced achievement scholarships under subsection (d)(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- Subject to subsection (c), the Corporation shall award scholarships based on the following priorities:

(1) PREVIOUS SCHOLARSHIP RECIPIENTS- For the second and subsequent academic years for which scholarships are awarded, the Corporation first shall award scholarships to students eligible under subsection (a) who received a scholarship from the Corporation in the preceding academic year.

(2) DISTRICT OF COLUMBIA PUBLIC SCHOOL ENROLLEES- For the first three academic years for which scholarships are awarded, if funds remain after the application of paragraph (1), the Corporation shall award scholarships to eligible students who do not receive an award under such paragraph and who are--

(A) enrolled in a District of Columbia public school; or

(B) preparing to enter a District of Columbia public kindergarten.

(3) VICTIMS OF SCHOOL VIOLENCE- For any academic year, if funds remain available after the application of paragraphs (1) and (2), the Corporation shall award scholarships to eligible students who do not receive an award under such paragraphs and

who have been victims of a documented violent act on school grounds.

(4) OTHER ELIGIBLE STUDENTS- For any academic year, if funds remain available after the application of paragraphs (1) through (3), the Corporation shall award scholarships to eligible students who do not receive an award under such paragraphs.

(c) LOTTERY SELECTION- If, in applying subsection (b), the number of students described in a paragraph of such subsection is such that the amount available is insufficient to award the appropriate scholarship amount to each such student, the Corporation shall select by lottery the students who will receive an award.

(d) 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 (as appropriate) transportation to attend, an eligible institution located within the geographic boundaries of--

(A) the District of Columbia;

(B) Montgomery County, Maryland;

(D) Arlington County, Virginia;

(E) Alexandria City, Virginia;

(F) Falls Church City, Virginia;

(G) Fairfax City, Virginia; or

(H) 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 (as appropriate) 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.

(e) NOT SCHOOL AID- A scholarship under this part shall be considered assistance to the student and shall not be considered assistance to an eligible institution.

SEC. 125. SCHOLARSHIP AWARDS.

(a) AWARDS- From the funds made available under this part, the Corporation shall award a scholarship to a student and make scholarship payments in accordance with section 126.

(b) NOTIFICATION- Each eligible institution that receives the proceeds of a scholarship payment under subsection (a) shall provide the following notifications:

(1) ENROLLMENT- Not later than 10 days after the date that a student receiving a scholarship under this part is enrolled, the institution shall notify the Corporation of the name, address, and grade level of such student.

(2) WITHDRAWAL OR EXPULSION- Not later than 10 days after the date of the withdrawal or expulsion of any student receiving a scholarship under this part, the institution shall notify the Corporation of the withdrawal or expulsion.

(3) REFUSAL OF ADMISSION- Not later than 10 days after the date that a student receiving a scholarship under this part is refused admission, the institution shall notify the Corporation of the reasons for such a refusal.

(c) TUITION SCHOLARSHIP- For a student whose family income is equal to or below the poverty line, a tuition scholarship may not exceed the lesser of--

(1) the cost of tuition and mandatory fees for, and (as appropriate) transportation to attend, an eligible institution; or

(2) the per pupil expenditure for elementary and secondary education by the local educational agency the student would otherwise attend.

(d) ENHANCED ACHIEVEMENT SCHOLARSHIP- An enhanced achievement scholarship may not exceed the lesser of--

(1) the costs of tuition and mandatory fees for, and (as appropriate) transportation to attend, a program of instruction at an eligible institution; or

(2) $800 for 2004, 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 2005 through 2009.

SEC. 126. SCHOLARSHIP PAYMENTS.

(a) PAYMENTS- The Corporation shall make scholarship payments to the parent of a student awarded a scholarship under this part.

(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 part. The parent may use the scholarship funds only for payment of tuition, mandatory fees, and transportation costs as described in this part.

(c) PRO RATA AMOUNTS FOR STUDENT WITHDRAWAL- If a student receiving a scholarship under this part 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. 127. CIVIL RIGHTS.

(a) IN GENERAL- An eligible institution participating in the scholarship program under this part shall not discriminate on the basis of race, color, national origin, or sex in carrying out the provisions of this part.

(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 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.

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 123(f)(2)(D), if the Corporation determines that an eligible institution participating in the scholarship program under this part is in violation of subsection (a), then the Corporation shall revoke such eligible institution's certification to participate in the program.

SEC. 128. CHILDREN WITH DISABILITIES.

Nothing in this part 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. 129. RULE OF CONSTRUCTION.

(a) IN GENERAL- Nothing in this part 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 part shall be construed to prohibit the use of funds made available under this part for sectarian educational purposes, or to require an eligible institution to remove religious art, icons, scripture, or other symbols.

SEC. 130. REPORTING REQUIREMENTS.

(a) IN GENERAL- An eligible institution participating in the scholarship program under this part 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. 131. PROGRAM APPRAISAL.

(a) STUDY- Not later than 3 years after the date of enactment of this part, 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 part, 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. 132. STANDING.

The parent of any student eligible to receive a scholarship under this part shall have standing in an action challenging the constitutionality of the scholarship program under this part.

SEC. 133. EFFECTIVE DATE.

This part shall be effective for each of fiscal years 2004 through 2009.

PART C--CHARTER SCHOOLS

SEC. 141. AUTHORIZATION OF APPROPRIATIONS.

Section 5211(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7221j(a)) is amended by striking `$300,000,000 for fiscal year 2002 and such sums as may be necessary for each of the 5 succeeding' and inserting `$400,000,000 for fiscal year 2004 and such sums as may be necessary for each of the 4 succeeding'.

TITLE II--IDEA

SEC. 201. SENSE OF THE SENATE REGARDING IDEA.

It is the sense of the Senate that as the Senate considers the reauthorization of the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.), the Senate should explore efforts to--

(1) simplify and clarify procedural safeguard principles for such Act in order to reduce the adversarial nature of the process, which will promote resolutions of issues in a positive and constructive way in order to ensure better outcomes for children;

(2) expand high-quality research based professional development and training opportunities for both special and general education teachers who serve children with disabilities;

(3) expand research to determine the potential causes of and possible remedies for the overidentification or misidentification of children with disabilities;

(4) reduce the paperwork burden for teachers and schools in order to maximize the time teachers spend in direct instruction with students with disabilities;

(5) eliminate the double standard that exists in the law for disciplining children with disabilities; and

(6) in conjunction with such reforms, support efforts to reach the goal of providing 40 percent of the average per pupil expenditure in order to assist States and school districts in covering the costs of educating students with disabilities.

SEC. 202. FULLY FUNDING IDEA.

Section 611(j) of the Individuals with Disabilities Education Act (20 U.S.C. 1411(j)) is amended to read as follows:

`(j) AUTHORIZATION OF APPROPRIATIONS- For the purpose of carrying out this part, other than section 619, there are authorized to be appropriated--

`(1) $11,049,000,000 for fiscal year 2004;

`(2) $13,569,000,000 for fiscal year 2005;

`(3) $16,089,000,000 for fiscal year 2006;

`(4) $18,609,000,000 for fiscal year 2007;

`(5) $21,129,000,000 for fiscal year 2008; and

`(6) $23,622,000,000 for fiscal year 2009.'.

TITLE III--HIGHER EDUCATION

SEC. 301. SENSE OF THE SENATE REGARDING EXPANDING ACCESS TO COLLEGE.

It is the sense of the Senate that, as the Senate considers the reauthorization of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) and other higher education legislation, the Senate should explore efforts to improve and expand access to higher education and also make it more accountable, including consideration of how to--

(1) address the rising costs of higher education;

(2) promote student academic preparation for postsecondary education;

(3) encourage efforts to increase the availability of financial aid information for those who need it most;

(4) simplify the student aid application process and improve the administration of the student aid programs;

(5) improve the level of accountability in the Federal student aid programs; and

(6) promote quality educational opportunities that will equip graduates with the skills they need to succeed in the 21st century workforce.

SEC. 302. SENSE OF THE SENATE REGARDING MINORITY-SERVING INSTITUTIONS.

It is the sense of the Senate that historically Black colleges and universities (HBCUs), historically Black graduate institutions (HBGIs), and Hispanic-serving institutions (HSIs) are a source of accomplishment and great pride for their respective communities as well as the entire Nation, and that such institutions offer all students, regardless of race, an opportunity to develop their skills and talents by training young people who go on to serve domestically and internationally in the professions as entrepreneurs, and in the public and private sectors, and therefore every effort should be made to increase funding for such institutions.

SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

(a) HBCUS- Section 399(a)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1068h(a)(2)(A)) is amended by striking `$135,000,000 for fiscal year 1999' and inserting `$241,000,000 for fiscal year 2004'.

(b) HBGIS- Section 399(a)(2)(B) of the Higher Education Act of 1965 (20 U.S.C. 1068h(a)(2)(B)) is amended by striking `$35,000,000 for fiscal year 1999' and inserting `$58,000,000 for fiscal year 2004'.

(c) HSIS- Section 518(a) of the Higher Education Act of 1965 (20 U.S.C. 1103g(a)) is amended by striking `$62,500,000 for fiscal year 1999' and inserting `$101,000,000 for fiscal year 2004'.

TITLE IV--RECRUITING TEACHERS

PART A--LOAN FORGIVENESS FOR MATHEMATICS, SCIENCE, AND SPECIAL EDUCATION TEACHERS

SEC. 411. SHORT TITLE.

This part may be cited as the `Mathematics, Science, and Special Education Teacher Recruitment Act of 2003'.

SEC. 412. SENSE OF THE SENATE REGARDING LOAN FORGIVENESS.

It is the sense of the Senate that--

(1) nothing is more important to a child's success in school than a well prepared teacher who has a strong command of the subject matter the teacher is teaching;

(2) schools across the Nation are experiencing difficulty in recruiting and retaining qualified mathematics, science, and special education teachers;

(3) attracting such teachers to the teaching profession and retaining them in the profession is vital to America's economic competitiveness and national security, and critical to ensuring that no child is left behind; and

(4) therefore, expansion of loan forgiveness to $17,500 for such teachers who agree to teach in a high need area for 5 years will help ensure that each child receives a quality education.

SEC. 413. REVISION OF TEACHER LOAN FORGIVENESS PROGRAMS.

(a) GUARANTEED STUDENT LOANS- Part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.) is amended by inserting after section 428K the following:

`SEC. 428L. EXPANDED LOAN FORGIVENESS FOR HIGHLY QUALIFIED TEACHERS OF MATHEMATICS, SCIENCE, AND SPECIAL EDUCATION.

`(a) PURPOSE- It is the purpose of this section to--

`(1) expand, subject to the availability of appropriations, the eligibility of certain highly qualified teachers to qualify for loan forgiveness beyond that available under section 428J; and

`(2) provide additional incentives for highly qualified teachers of mathematics, science, and special education in high-need schools to enter and continue in the teaching profession.

`(b) PROGRAM AUTHORIZED-

`(1) IN GENERAL- The Secretary is authorized to carry out a program, through the holder of the loan, of assuming the obligation to repay a qualified loan amount for a loan made under section 428 or 428H, in accordance with subsection (c), for any borrower who--

`(A) is a highly qualified, full-time teacher of mathematics, science, or special education at a high-need school, and has been so employed for not less than 5 consecutive complete school years;

`(B) had mathematics, life or physical sciences, technology, engineering, or special education as an undergraduate academic major or minor, or has a graduate degree in any such field, as certified by the chief administrative officer of the public or nonprofit private school in which the borrower is employed; and

`(C) is not in default on a loan for which the borrower seeks forgiveness.

`(2) SELECTION OF RECIPIENTS- The Secretary shall promulgate regulations to ensure fairness and equality for applicants in the selection of borrowers for loan repayment under this section, based on the amount appropriated to carry out this section.

`(c) QUALIFIED LOAN AMOUNTS-

`(1) IN GENERAL- The Secretary is authorized to repay not more than $17,500 in the aggregate of the loan obligation on 1 or more loans made under section 428 or 428H that are outstanding after the completion of the fifth complete school year of teaching described in subsection (b)(1)(A).

`(2) TREATMENT OF CONSOLIDATION LOANS- A loan amount for a loan made under section 428C may be a qualified loan amount for the purposes of this subsection only to the extent that such loan amount was used to repay a Federal Direct Stafford/Ford Loan, a Federal Direct Unsubsidized Stafford/Ford Loan, or a loan made under section 428 or 428H for a borrower who meets the requirements of subsection (b), as determined in accordance with regulations prescribed by the Secretary.

`(d) REGULATIONS- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.

`(e) CONSTRUCTION- Nothing in this section shall be construed to authorize any refunding of any repayment of a loan.

`(f) ADDITIONAL ELIGIBILITY PROVISIONS-

`(1) CONTINUED ELIGIBILITY- A highly qualified teacher shall be eligible for loan forgiveness pursuant to subsection (b), if the teacher performs service in a school that--

`(A) meets the definition of a high-need school under subsection (g) in any year during such service; and

`(B) in a subsequent year, fails to meet the definition of a high-need school under subsection (g).

`(2) PREVENTION OF DOUBLE BENEFITS-

`(A) NATIONAL SERVICE POSITIONS- No borrower may, for the same service, receive a benefit under both this section and subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.).

`(B) LOAN FORGIVENESS AND CANCELLATION PROVISIONS FOR TEACHERS-

`(i) FORGIVENESS- No borrower may receive a reduction of loan obligations under both this section and section 428J.

`(ii) CANCELLATION- No borrower may receive loan forgiveness under this section and loan cancellation under section 460 or section 460A that exceeds, in the aggregate, $17,500.

`(g) DEFINITIONS- In this section:

`(1) HIGHLY QUALIFIED- The term `highly qualified' has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965.

`(2) HIGH-NEED SCHOOL- The term `high-need school' has the meaning given the term in section 2304(d) of the Elementary and Secondary Education Act of 1965.

`(3) YEAR- The term `year', where applied to service as a teacher, means an academic year as defined by the Secretary.

`(h) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section such sums as may be necessary for each of the fiscal years 2004 through 2009.'.

(b) DIRECT STUDENT LOANS- Part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a) is amended by inserting after section 460 the following:

`SEC. 460A. EXPANDED LOAN CANCELLATION FOR HIGHLY QUALIFIED TEACHERS OF MATHEMATICS, SCIENCE, AND SPECIAL EDUCATION.

`(a) PURPOSE- It is the purpose of this section to--

`(1) expand, subject to the availability of appropriations, the eligibility of certain highly qualified teachers to qualify for loan cancellation beyond that available under section 460; and

`(2) provide additional incentives for highly qualified teachers of mathematics, science, and special education in high-need schools to enter and continue in the teaching profession.

`(b) PROGRAM AUTHORIZED-

`(1) IN GENERAL- The Secretary is authorized to cancel the obligation to repay a qualified loan amount in accordance with subsection (c) for Federal Direct Stafford/Ford Loans and Federal Direct Unsubsidized Stafford/Ford Loans made under this part for any borrower who--

`(A) is a highly qualified, full-time teacher of mathematics, science, or special education at a high-need school, and has been so employed for not less than 5 consecutive complete school years;

`(C) is not in default on a loan for which the borrower seeks forgiveness.

`(2) SELECTION OF RECIPIENTS- The Secretary shall promulgate regulations to ensure fairness and equality for applicants in the selection of borrowers for loan cancellation under this section, based on the amount appropriated to carry out this section.

`(c) QUALIFIED LOAN AMOUNTS-

`(1) IN GENERAL- The Secretary is authorized to cancel not more than $17,500 in the aggregate of the loan obligation on 1 or more Federal Direct Stafford/Ford Loans or 1 or more Federal Direct Unsubsidized Stafford/Ford Loans that are outstanding after the completion of the fifth complete school year of teaching described in subsection (b)(1)(A).

`(2) TREATMENT OF CONSOLIDATION LOANS- A loan amount for a Federal Direct Consolidation Loan may be a qualified loan amount for the purposes of this subsection only to the extent that such loan amount was used to repay a Federal Direct Stafford/Ford Loan, a Federal Direct Unsubsidized Stafford/Ford Loan, or a loan made under section 428 or 428H for a borrower who meets the requirements of subsection (b), as determined in accordance with regulations prescribed by the Secretary.

`(d) REGULATIONS- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.

`(e) CONSTRUCTION- Nothing in this section shall be construed to authorize any refunding of any canceled loan.

`(f) ADDITIONAL ELIGIBILITY PROVISIONS-

`(1) CONTINUED ELIGIBILITY- A highly qualified teacher shall be eligible for loan forgiveness pursuant to subsection (b), if the teacher performs service in a school that--

`(A) meets the definition of a high-need school under subsection (g) in any year during such service; and

`(B) in a subsequent year, fails to meet the definition of a high-need school under subsection (g).

`(2) PREVENTION OF DOUBLE BENEFITS-

`(B) LOAN FORGIVENESS AND CANCELLATION PROVISIONS FOR TEACHERS-

`(i) CANCELLATION- No borrower may receive a reduction of loan obligations under both this section and section 460.

`(ii) FORGIVENESS- No borrower may receive loan cancellation under this section and loan forgiveness under section 428J or section 428L that exceeds, in the aggregate, $17,500.

`(g) DEFINITIONS- In this section:

`(1) HIGHLY QUALIFIED- The term `highly qualified' has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965.

`(2) HIGH-NEED SCHOOL- The term `high-need school' has the meaning given the term in section 2304(d) of the Elementary and Secondary Education Act of 1965.

`(3) YEAR- The term `year', where applied to service as a teacher, means an academic year as defined by the Secretary.

`(h) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section such sums as may be necessary for each of the fiscal years 2004 through 2009.'.

PART B--CLASSROOM EXPENSE DEDUCTION

SEC. 421. EXPANSION OF CLASSROOM EXPENSE DEDUCTION FOR TEACHERS.

(a) SENSE OF THE SENATE- It is the sense of the Senate that many teachers are overburdened with the costs of managing a classroom, and that expansion of the deduction for classroom expenses for teachers from $250 to $400 would help ease the burden on the teacher dedicated to helping our Nation's children learn.

(b) IN GENERAL- Section 62(a)(4)(D) of the Internal Revenue Code of 1986 (relating to certain expenses of elementary and secondary school teachers) is amended--

(1) by striking `In the case of taxable years beginning during 2002 and 2003, the' and inserting `The', and

(2) by striking `$250' and inserting `$400'.

TITLE V--MAKING EDUCATION MORE AFFORDABLE

SEC. 501. SENSE OF THE SENATE REGARDING MAKING EDUCATION MORE AFFORDABLE.

It is the sense of the Senate that--

(1) parents should be able to trust that the tax code will not change so that they may adequately plan how to pay for their child's education; and

(2) therefore the following provisions in title IV of the Economic Growth and Tax Relief Reconciliation Act of 2001 should be made permanent:

(A) The increase in the Coverdell Education Savings Account contribution to $2,000 and the modification that permits such money to be used for kindergarten through grade 12 expenses.

(B) The modification making qualified tuition savings programs tax-exempt and allowing private institutions to offer prepaid tuition plans.

(D) The above the line deduction for qualified tuition expenses of $3,000 in 2002 and 2003, and $4,000 in 2004 and 2005.

(E) The liberalization of tax-exempt financing rules for public school construction.

SEC. 502. AFFORDABLE EDUCATION PROVISIONS MADE PERMANENT.

Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall not apply to the provisions of title IV of such Act (relating to affordable education provisions).

SEC. 503. CREDIT FOR EDUCATION, TUITION, AND TRANSPORTATION EXPENSES OF STUDENTS ASSIGNED TO SCHOOLS IDENTIFIED FOR SCHOOL IMPROVEMENT.

(a) SHORT TITLE- This section may be cited as the `Give Back to Parents Act of 2003'.

(b) SENSE OF THE SENATE- It is the Sense of the Senate that a refundable tax credit for up to 50 percent of the first $5,000 a parent spends to enable a child to attend another public or private school would help defray the cost of tuition at and transportation to a better school, and would therefore enable parents of children assigned to schools identified for school improvement access to better education options.

(c) AMENDMENT- Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 36 as section 37 and by inserting after section 35 the following new section:

`SEC. 36. EDUCATION EXPENSES OF STUDENTS ASSIGNED TO SCHOOLS IDENTIFIED FOR SCHOOL IMPROVEMENT.

`(a) GENERAL RULE- In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year 50 percent of the amount of the qualified education expenses paid by the taxpayer during the

taxable year for the education of any individual--

`(1) with respect to whom the taxpayer is allowed a deduction under section 151(c), and

`(2) who would have otherwise been assigned to a public school identified for school improvement under section 1116 of the Elementary and Secondary Education Act of 1965 but who incurred qualified education expenses to enroll in a public or nonpublic school not identified for school improvement under such section for the period to which such expenses relate.

`(b) LIMITATION- The amount of qualified education expenses which may be taken into account under subsection (a) for any taxable year with respect to any 1 individual shall not exceed $5,000.

`(c) DEFINITIONS- For purposes of this section--

`(1) QUALIFIED EDUCATION EXPENSES-

`(A) IN GENERAL- The term `qualified education expenses' means amounts paid for--

`(i) tuition and fees required for the enrollment or attendance of a student at an eligible educational institution,

`(ii) transportation to and from an individual's home and an eligible educational institution, and

`(iii) books, supplies, computer equipment (including related software and services) and other equipment required for courses of instruction at an eligible educational institution.

`(B) MEALS AND LODGING EXPENSES NOT INCLUDED- Such term does not include any amount paid, directly or indirectly, for meals, lodging, or similar personal, living, or family expenses. In the event an amount paid for tuition or fees includes an amount for meals, lodging, or similar expenses which is not separately stated, the portion of such amount which is attributable to meals, lodging, or similar expenses shall be determined under regulations prescribed by the Secretary.

`(C) SPECIAL RULE FOR HOME SCHOOLING- In the case of education furnished in the home (as a substitute for public education) which meets the requirements of State law relating to compulsory school attendance, the term `qualified education expenses' means amounts paid for tutoring, books, supplies, computer equipment (including related software and services), and other equipment directly used in furnishing such education.

`(2) ELIGIBLE EDUCATIONAL INSTITUTION- The term `eligible educational institution' means--

`(A) a secondary school,

`(B) an elementary school, or

`(C) any private, parochial, religious, or home school organized for the purpose of providing elementary or secondary education, or both.

`(3) ELEMENTARY AND SECONDARY SCHOOLS- The terms `elementary school' and `secondary school' have the respective meanings given such terms by section 9101 of the Elementary and Secondary Education Act of 1965.

`(d) ADJUSTMENT FOR CERTAIN SCHOLARSHIPS- The amounts otherwise taken into account under subsection (a) as qualified education expenses of any individual during any period shall be reduced (before the application of subsection (b)) by the sum of the amounts received with respect to such individual for the taxable year as a qualified scholarship which under section 117 is not includable in gross income.

`(e) REGULATIONS- The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section.'.

(d) TECHNICAL AMENDMENTS-

(1) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting before the period `, or from section 36 of such Code'.

(2) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by striking the last item and inserting the following new items:

`Sec. 36. Education expenses of students assigned to schools identified for school improvement.

`Sec. 37. Overpayments of tax.'.

(e) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

END