[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 778 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 778
To expand school choice in the District of Columbia.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 24, 2019
Mr. Meadows introduced the following bill; which was referred to the
Committee on Oversight and Reform
_______________________________________________________________________
A BILL
To expand school choice in the District of Columbia.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Educational Freedom Accounts Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administering entity.--The term ``administering
entity'' means the entity that receives the contract under
section 3(a) for a fiscal year.
(2) Chief financial officer.--The term ``chief financial
officer'' means the Chief Financial Officer of the District of
Columbia.
(3) Eligible child.--The term ``eligible child'' means a
child--
(A) who is a resident of the District of Columbia;
(B) who is eligible to receive a free public
education in the District of Columbia;
(C) who--
(i) was enrolled in a public school or
preschool program of the District of Columbia,
including a charter school, during the previous
school year;
(ii) received an education savings account
under this Act for the preceding school year;
(iii) received an opportunity scholarship
under section 3007(a) of the Scholarships for
Opportunity and Results Act for the preceding
school year; or
(iv) is entering prekindergarten or
kindergarten;
(D) whose parent chooses to not enroll the child in
a public elementary school, secondary school, or
prekindergarten program for the school year for which
the child will receive a scholarship under section 4;
and
(E) whose parent does not submit a notification of
home schooling described in section 5202 of title 5,
Code of the District of Columbia Regulations (or any
successor notification) to the Office of the State
Superintendent of Education of the District of Columbia
for any year for which the parent enters into an
agreement under section 4(a)(2)(B).
(4) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(5) Parent.--The term ``parent'' means the guardian,
custodian, or other person with the authority to act on behalf
of a child.
(6) Participating provider.--The term ``participating
provider'' means an entity that--
(A) is--
(i) a nonpublic school located in the
District of Columbia that provides education to
prekindergarten, elementary school, or
secondary school students;
(ii) a public school, including a charter
school, located in the District of Columbia,
except only with respect to providing
individual courses or extracurricular
activities described in section 4(c)(1)(E) or
transportation described in section 4(c)(1)(I)
to such services;
(iii) a tutor or tutoring facility;
(iv) a nonpublic provider of distance or
online learning;
(v) a therapy center or other provider of
special education or disability services;
(vi) an institution of higher education
located in the District of Columbia; or
(vii) an entity that provides educational
services or products;
(B) notifies the administering entity of the
entity's intent to become a participating provider; and
(C) agrees, as a condition of receiving funds from
an education savings account established under section
4, to comply with the requirements of this Act.
SEC. 3. CONTRACT AUTHORIZED.
(a) In General.--Beginning with the 2019-2020 school year, the
Chief Financial Officer shall carry out this Act for each school year
by awarding a contract to 1 entity described in subsection (b) to
enable the administering entity to carry out the program under section
4 for all eligible children in the District of Columbia.
(b) Eligibility.--In order to be eligible for a contract under this
section, an entity shall be--
(1) exempt from Federal income tax pursuant to 501(c)(3) of
the Internal Revenue Code of 1986;
(2) based within the District of Columbia; and
(3) able to demonstrate an ability to meet all requirements
of this Act.
(c) Application.--An eligible entity desiring a contract under this
section shall submit an application to the Chief Financial Officer at
such time, in such manner, and containing such information as the Chief
Financial Officer may require.
(d) Administrative Expenses.--From the amounts made available under
the contract described in subsection (a), the administering entity may
reserve an amount that is not greater than the sum of 5 percent of the
funds allocated under section 4(a)(4) for each eligible child with an
education savings account, to be used by the administering entity for
the administrative expenses associated with the program under this Act.
SEC. 4. UNIVERSAL EDUCATIONAL CHOICE FOR DISTRICT OF COLUMBIA STUDENTS.
(a) Basic Elements of Parental Choice in Education.--
(1) Educational choice.--Except as provided in paragraph
(6), the parent of any eligible child may enter into an
agreement under paragraph (2)(B) with the administering entity
for any year during which the eligible child will be in a grade
for which the District of Columbia provides free public
education.
(2) Provision of education savings accounts.--
(A) In general.--Beginning with the 2019-2020
school year, the administering entity shall provide, to
each eligible child whose parent enters into or renews
an agreement described in subparagraph (B) with the
administering entity for the school year, an education
savings account described in paragraph (3), into which
scholarship amounts for the year shall be deposited in
accordance with paragraph (4).
(B) Agreement.--The agreement required under this
subparagraph shall be in a manner and on a form
determined by the administering entity and shall
provide that--
(i) the eligible child will receive an
education savings account described in
paragraph (3) and the administering entity will
deposit a scholarship into the account for each
year that the agreement is in effect, in
accordance with paragraph (4);
(ii) the eligible child may be educated
pursuant to any of the methods described in
subparagraphs (A) through (G) of subsection
(c)(1);
(iii) the parent shall direct the use of
the funds provided in the education savings
account for educational expenses described in
subsection (c), and the administering entity
shall distribute such funds in accordance with
paragraph (3)(B);
(iv) the parent agrees to the terms and
conditions of the education savings account,
including any participation necessary for the
accountability activities required under
subsection (d)(3); and
(v) with respect to an eligible child who
is a child with a disability (as defined in
section 602 of the Individuals with
Disabilities Education Act (20 U.S.C. 1401)),
the parent agrees that participation in the
program under this section shall have the same
effect as parental placement of child under
section 612(a)(10)(A) of such Act (20 U.S.C.
1412(a)(10)(A)).
(3) Education savings account.--An education savings
account described in this paragraph means a parent-controlled
account, established exclusively for the purpose of paying for
the educational expenses described in subsection (c) for an
eligible child who is the designated beneficiary of the
account, that meets the following requirements:
(A) No funds shall be deposited into the account
unless the funds are--
(i) a disbursement of an annual scholarship
from the administering entity as provided under
paragraph (2)(A); or
(ii) a deposit of opportunity scholarship
funds, in accordance with section 3007(a)(2) of
the Scholarships for Opportunity and Results
Act (sec. 38-1853.07(a)(2), D.C. Official
Code).
(B) The funds in the account shall be distributed
by the administering entity on behalf of the eligible
child to 1 or more participating providers, upon
direction by the parent, at the appropriate time.
(C) Except as provided in subparagraph (D), any
amount in the account that is attributable to a deposit
provided under paragraph (2)(A) or a deposit of any
opportunity scholarship funds awarded under section
3007 of the Scholarships for Opportunity and Results
Act (sec. 38-1853.07, D.C. Official Code) may be paid
or distributed out of the account only for the purpose
of paying education expenses described in subsection
(c) for the eligible child.
(D) Any balance remaining in the account shall be
returned to the Chief Financial Officer on the last day
of the period covered by an agreement described in
paragraph (2)(B) if--
(i) such agreement is broken or ended by
the parent during the agreement period;
(ii) the parent of the eligible child does
not renew the agreement for the eligible child
for the immediately succeeding academic year;
(iii) during the most recent year of the
agreement, the parents do not use any funds in
the account for eligible expenses described in
subsection (c); or
(iv) the child no longer qualifies as an
eligible child.
(4) Amount of scholarship and transfer of funds.--
(A) Transfer of funds.--By not later than August 1
of each school year--
(i) the administering entity shall notify
the Chief Financial Officer of the total amount
calculated under subparagraph (B) to be
provided under this Act for scholarships to
eligible children for such school year; and
(ii) the Chief Financial Officer shall
transfer such amount, from any funds or
revenues available to the District of Columbia,
to the administering entity to enable the
administering entity to pay for the
scholarships and the administration expenses
for the full fiscal year, in accordance with
subparagraphs (B) and (D) and section 3(d).
(B) Amount.--The total amount provided under this
section for a full-year scholarship on behalf of an
eligible child shall equal--
(i) in the case of an eligible child from a
family with an income of not more than 185
percent of the poverty level described in
subparagraph (C) or an eligible child who is a
child with a disability, as defined in section
602 of the Individuals with Disabilities
Education Act (20 U.S.C. 1401), 90 percent of
the funds that would otherwise be allocated by
the District of Columbia Public Schools for
such child, as determined by the uniform per
student funding formula defined in the District
of Columbia School Reform Act of 1995 (sec. 38-
804.01, D.C. Official Code);
(ii) in the case of an eligible child from
a family with an income of more than 185
percent, and not more than 300 percent, of such
poverty level, 85 percent of the funds that
would otherwise be allocated by the District of
Columbia Public Schools for such child as
determined by such uniform per student funding
formula; and
(iii) in the case of an eligible child from
a family with an income that equals or exceeds
300 percent of such poverty level, 80 percent
of the funds that would otherwise be allocated
by the District of Columbia Public Schools for
such child as determined by such uniform per
student funding formula.
(C) Calculation of poverty level.--In determining
the poverty level for purposes of this paragraph, the
administering entity shall use the criteria of poverty
used by the Bureau of the Census in compiling the most
recent decennial census, as the criteria have been
updated by increases in the Consumer Price Index for
All Urban Consumers, published by the Bureau of Labor
Statistics.
(D) Quarterly disbursement.--The administering
entity shall distribute the amount of a scholarship
provided under this section to an eligible child whose
parent has entered into an agreement under paragraph
(2)(B) into the eligible child's education savings
account, which may be through 4 equal quarterly
deposits or any other distribution schedule determined
appropriate by the administering entity.
(5) Ownership of the education savings account.--An
education savings account established for an eligible child
under this Act, and any funds deposited within the education
savings account, shall belong to the eligible child. Funds
available in the education savings account shall be used as
directed by a parent of the eligible child, on behalf of the
child, for education expenses described in subsection (c).
(6) Interaction with opportunity scholarships.--
Notwithstanding paragraph (2)(A) or any other provision of this
Act, a child who receives an opportunity scholarship under
section 3007 of the Scholarships for Opportunity and Results
Act (sec. 38-1853.07, D.C. Official Code) for a school year
shall not be eligible for a scholarship under this Act for the
same school year. Upon the request of any parent of an eligible
child who receives an opportunity scholarship and the
completion of an agreement described in paragraph (2)(B), the
Secretary shall establish an education savings account
described in paragraph (3) for the child, in order for the
parent to deposit any amount of an opportunity scholarship
under section 3007 of the Scholarships for Opportunity and
Results Act (sec. 38-1853.07, D.C. Official Code) into the
education savings account.
(b) Continued Availability of Funds.--Any balance in an educational
savings account established for an eligible child under this section
that is not used during an academic year shall remain available in the
education savings account of the eligible child for future education
expenses described in subsection (c), as long as an agreement described
in subsection (a)(2)(B) remains in effect for the eligible child.
(c) Eligible Education Expenses.--
(1) In general.--Funds available in an education savings
account established under this section for an eligible child
shall only be used on behalf of such child for 1 or more of the
following educational purposes:
(A) The costs of tuition and fees at a nonpublic
school, or distance education, provided through a
participating provider.
(B) Tutoring services offered by a participating
provider.
(C) The costs of curricula or online courses, or
virtual learning environments, including any
supplemental materials, textbooks, or supplies
necessary to administer the curriculum or to complete
the course, offered by a participating provider or
purchased for self-study.
(D) Fees for any special education or related
services provided through a participating provider.
(E) The costs of tuition and fees required to
complete individual courses or extracurricular
activities at a public school, including a charter
school, within the District of Columbia.
(F) The costs of tuition and fees required to
complete any dual credit courses, which are courses
that qualify for both secondary and postsecondary
education credit, from a participating provider in the
District of Columbia.
(G) The costs of a career and technical education
course offered by a participating provider.
(H) Fees for any--
(i) national norm-referenced achievement
examination;
(ii) advanced placement or similar
examination; or
(iii) standardized examination required for
admission to an institution of higher
education.
(I) Transportation required for the eligible child
to travel to and from a participating provider, except
that not more than $2,000 per year from the education
savings account may be used for this purpose.
(J) A contribution to a qualified tuition program
(as defined in section 529(b) of the Internal Revenue
Code of 1986) with respect to which the eligible child
is a designated beneficiary or a contribution to a
Coverdell education savings account (as defined in
section 530(b) of such Code) with respect to which the
eligible child is a designated beneficiary, except that
not more than a total of $2,000 per year may be used
for contributions under this subparagraph.
(K) Any other education expenses approved and
determined by the administering entity to be similar to
the expenses described in subparagraphs (A) through
(J).
(2) Rule of construction.--Nothing in this subsection shall
be construed to require an eligible child to attend a nonpublic
school or a program of distance education described in
paragraph (1)(A) in order to receive an academic scholarship
under this section to be used for other eligible education
expenses described in paragraph (1).
(d) Governmental and Administering Entity Responsibilities.--
(1) No extension of regulatory authority.--The creation of
the program under this Act does not expand the regulatory
authority of the Mayor of the District of Columbia, the
officers of the District of Columbia, the District of Columbia
Public Schools, or the Federal Government to impose any
additional regulations on nonpublic schools beyond the
regulations necessary to enforce the requirements of this Act.
(2) Annual list of participating providers.--
(A) Creation of list.--Beginning in academic year
2018-2019, and each year thereafter, the administering
entity shall ensure that all eligible children, and
their parents, are informed of the schools
participating in the program under this Act for the
next academic year by providing to the Chief Financial
Officer, and making publicly available, a list of
participating providers each school year.
(B) Inclusion on cfo's website.--The Chief
Financial Officer shall ensure that the annual list of
participating providers prepared by the administering
entity under subparagraph (A) is made publicly
available on the website of the Chief Financial
Officer.
(3) Updated information regarding educational expenses.--
The administering entity shall timely notify parents of
eligible children of any categories that the entity has
determined are educational expenses under subsection (c)(1)(K)
by providing notification through the parent handbook, program
website, or other primary method used by the administering
entity to educate parents about the program.
(4) Accountability.--The administering entity and the Chief
Financial Officer shall take such steps as are necessary to
ensure the proper implementation of this Act, including--
(A) conducting periodic audits of education savings
accounts established under this section;
(B) ensuring that the funds disbursed from
education savings accounts are used appropriately and
in accordance with this Act;
(C) freezing or revoking the education savings
account of an eligible child if fraud is detected;
(D) providing a process through which--
(i) parents whose expenses have been denied
may ask the administering entity review and
reverse the denial; and
(ii) the administering entity shall conduct
a review and respond to the parental request to
reverse the denial within 30 days; and
(E) if appropriate, referring parents or
participating providers found to be using education
savings account funds for unlawful purposes for
criminal prosecution.
(5) Exchange of records.--Upon request by the administering
entity, the District of Columbia Public Schools shall provide,
to any participating provider that is a school and that has
admitted an eligible child who previously attended a public
school, a complete copy of the child's school records,
following the standard procedures established by the
administering entity for purposes of the program under this
Act.
(e) Participating Provider Requirements and Rights.--
(1) Refund and rebate limitations.--
(A) General prohibition.--A participating provider
that receives scholarship funds provided under this Act
for an eligible child shall not--
(i) refund or provide a rebate, of all or
any portion of such funds, to the eligible
child or a parent of the eligible child; and
(ii) share such funds with such eligible
child or parent in any manner.
(B) Refund procedures.--Any refund that is needed
for an item that is being returned or an item or
service that has not been provided shall be provided to
the administering entity and deposited into the
education savings account from which the money refunded
was originally paid.
(2) Admissions.--A participating provider may enforce the
admission requirements of the school or program offered by the
provider and may accept the students best qualified to attend
the school, except that a participating school may not
discriminate on the basis of race, color, national origin, or
sex, in accordance with subsection (f).
(3) Transfer of documents.--Each participating provider
that is a school shall agree, as a condition of participation
in the program under this Act, to provide the complete academic
records of an eligible child attending the school who receives
an education savings account under this Act to any other
nonpublic school or public school to which the child transfers.
(f) Nondiscrimination and Other Provisions.--
(1) In general.--A participating provider shall not
discriminate against program participants or applicants on the
basis of race, color, national origin, or sex.
(2) Applicability and single sex schools, classes, or
activities.--
(A) In general.--Notwithstanding any other
provision of law, the prohibition of sex discrimination
in paragraph (1) shall not apply to a participating
provider that is operated by, supervised by, controlled
by, or connected to a religious organization to the
extent that the application of such paragraph is
inconsistent with the religious tenets or beliefs of
the participating provider.
(B) Single sex schools, classes, or activities.--
Notwithstanding paragraph (1) or any other provision of
law, a parent may choose and a participating provider
may offer a single sex school, class, or activity.
(3) Religiously affiliated participating providers.--
(A) In general.--Notwithstanding any other
provision of law, a participating provider that is
operated by, supervised by, controlled by, or connected
to a religious organization may exercise its right in
matters of employment consistent with title VII of the
Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.),
including the exemptions in such title.
(B) Maintenance of purpose.--Notwithstanding any
other provision of law, funds made available through
education savings accounts established under this
section to eligible children, which are used for a
participating provider as a result of the choice of the
parents of such children, shall not, consistent with
the first amendment of the Constitution of the United
States--
(i) necessitate any change in the
participating provider's teaching mission;
(ii) require any participating provider to
remove religious art, icons, scriptures, or
other symbols; or
(iii) preclude any participating provider
from retaining religious terms in its name,
selecting its board members on a religious
basis, or including religious references in its
mission statements and other chartering or
governing documents.
(4) Rules of construction.--
(A) Treatment of assistance.--For purposes of any
Federal law, assistance provided under this section
shall be considered assistance to the child and shall
not be considered assistance to the participating
provider that enrolls the child in a school or program.
The amount of any scholarship under this section shall
not be treated as income of the child or the parents of
the child for purposes of Federal tax laws or for
determining eligibility for any other Federal program.
(B) No ability to control the curriculum.--Nothing
in this section shall be construed to authorize any
officer or employee of the Federal Government, through
grants, contracts, or other cooperative agreements, to
mandate, direct, or control the curriculum, program of
instruction, instructional content, specific academic
standards, assessments, or allocation of resources, of
the District of Columbia or of any school in the
District of Columbia.
(g) Transition.--The Chief Financial Officer and the administering
entity shall take steps to ensure a smooth transition to the program
under this Act, in order to ensure that academic scholarships and
education savings accounts under this section are available to eligible
children attending nonpublic schools through participating providers
beginning for the 2019-2020 school year. The Chief Financial Officer
shall allow nonpublic schools to become participating providers
beginning on September 1, 2018.
(h) Conforming Amendment.--Section 3007(a)(2) of the Scholarships
for Opportunity and Results Act (sec. 38-1853.07(a)(2), D.C. Official
Code) is amended by adding before the period at the end the following:
``, or deposited in an education savings account established under
section 4 of the Educational Freedom Accounts Act to be used for
education expenses described in subsection (c) of such section''.
<all>
Educational Freedom Accounts Act
#778 | HR Congress #116
Policy Area: Education
Subjects: Bank accounts, deposits, capitalDistrict of ColumbiaEducation of the disadvantagedEducation programs fundingEducational technology and distance educationElementary and secondary educationHigher educationPreschool educationPublic contracts and procurementReligionSpecial educationStudent aid and college costsStudent recordsTeaching, teachers, curriculaTransportation costsVocational and technical education
Last Action: Referred to the House Committee on Oversight and Reform. (1/24/2019)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text