Opportunity for Every Child Act of 2003

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 4 Introduced in Senate (IS)]

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.
(c) Use of Federal Funds.--Each eligible entity receiving a grant
under this part--
(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;
(C) making determinations of eligibility for
participation for eligible children;
(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.
(c) Applicability and Construction With Respect to Discrimination
on the Basis of Sex.--
(1) Applicability.--With respect to discrimination on the
basis of sex, subsection (a) shall not apply to a 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.
(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 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).
(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 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) 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.
(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;
(C) Prince George's 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.
(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 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;
``(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 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.--
``(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) 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''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.

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.
(C) The increases to the income limits for the
student loan interest deduction and the elimination of
the 60-month rule.
(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.
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