Educational Opportunities and Excellence Act of 1999

TABLE OF CONTENTS:

Title I: Education Savings Accounts

Title II: Dollars to the Classroom

Title III: Measures to Enhance Results in Teaching

Title IV: Funding for Part B of the Individuals with

Disabilities Education Act

Title V: Tax Credits for Support of Elementary and Secondary

School Students

Title VI: Collegiate Learning and Student Savings

Educational Opportunities and Excellence Act of 1999 - Title I: Education Savings Accounts - Education Savings Accounts Act of 1999 - Amends the Internal Revenue Code to permit tax-free expenditures from education individual retirement accounts (IRAs) for elementary and secondary education expenses (including tuition, special needs services, home schooling expenses, and transportation expenses) required for attendance at a public, private, or religious school, or for home schooling that meets State or local requirements.

Increases from $500 to $2,000, through December 31, 2002, the maximum annual contribution to such an account.

Waives the age limitation for special needs beneficiaries.

Permits corporations to contribute to education IRAs.

Title II: Dollars to the Classroom - Dollars to the Classroom Act - Requires the Secretary of Education to award the total amount of certain applicable education funding directly to the States.

(Sec. 202) Requires such direct awarding of all the funds (except those used for specified multiyear awards) that are appropriated for the Department of Education for the fiscal year for programs or activities under specified provisions of: (1) the Goals 2000: Educate America Act; (2) the Educational Research, Development, Dissemination, and Improvement Act of 1994; (3) the School-to-Work Opportunities Act of 1994; (4) the Elementary and Secondary Education Act of 1965 (ESEA); and (5) the Stewart B. McKinney Homeless Assistance Act.

Sets deadlines for: (1) each State to conduct a census to determine, and report to the Secretary, the number of kindergarten through grade 12 students in the State for the academic year; and (2) the Secretary to publish and disburse the amount each State will receive under this Act for the succeeding fiscal year. Sets forth: (1) a formula for determination of such award amounts, based on relative numbers of such students in each State; and (2) penalties for false information. Provides for continuation of certain multiyear awards made prior to enactment of this Act.

Requires award amounts under this Act to be paid to the State Governor, who shall make them available to the individual or entity in the State responsible for the State administration of Federal education funds. Prescribes requirements for the use of such funds, earmarking not less than 95 percent for distribution to local educational agencies (LEAs) for the costs of activities or services provided in the classroom that LEAs determine appropriate, excluding associated administrative expenses, but including non-administrative expenses associated with statewide or districtwide initiatives directly affecting classroom learning.

Prohibits: (1) any head of a Federal department or agency other than the Secretary from promulgating regulations under this Act; and (2) the Secretary from issuing any regulation regarding the type of classroom activities or services that may be assisted under this Act.

(Sec. 203) Amends ESEA title I (Helping Disadvantaged Children Meet High Standards) to require the use of at least 95 percent of title I funds for an LEA for a fiscal year according to the requirements of this Act.

Directs the Secretary to: (1) develop and implement a plan for streamlining regulations and eliminating bureaucracy so that 95 percent of such ESEA title I funds for LEAs are used for the costs of activities and services provided in the classroom; and (2) recommend to Congress legislation containing changes to Federal law needed for the use of such funds.

(Sec. 204) Requires each LEA that receives funds under this Act to provide for the participation of children enrolled in private and home schools.

Title III: Measures to Enhance Results in Teaching - Merit Act of 1999 - Amends title II (Dwight D. Eisenhower Professional Development Program) of ESEA to establish a new part D (State Incentives for Teacher Testing and Merit Pay).

(Sec. 302) Directs the Secretary of Education to make an award to each State that: (1) administers a test to each elementary school and secondary school teacher in the State, with respect to the subjects taught by the teacher, every three to five years; and (2) has an elementary school and secondary school teacher compensation system based on merit.

(Sec. 303) Allows States to use Federal education funds for teacher testing and merit pay programs.

Title IV: Funding for Part B of the Individuals with Disabilities Education Act - Amends the Individuals with Disabilities Education Act (IDEA) to set forth specified minimum amounts for FY 2000 through 2006 under the authorization of appropriations to carry out IDEA part B (Assistance for Education of All Children with Disabilities).

Title V: Tax Credits for Support of Elementary and Secondary School Students - K-12 Community Participation Act of 1999 - Amends the Internal Revenue Code to allow a limited tax credit for the expenses of attending elementary and secondary schools (including home schooling) and for contributions to charitable organizations which provide scholarships for children to attend such schools.

Title VI: Collegiate Learning and Student Savings - CLASS Act - Amends the Internal Revenue Code to: (1) permit private higher educational institutions, in addition to currently permitted State institutions, to establish qualified prepaid tuition programs; and (2) exclude from gross income such program distributions used for qualified higher education expenses.

(Sec. 603) Amends the Securities Act of 1933 to exempt from certain coverage securities issued by qualified prepaid tuition programs.

Amends the Investment Company Act of 1940 to exempt qualified prepaid tuition programs from the definition of an investment company.