SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Education Development 
Initiative for the 21st Century Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to provide rural school students in the 
United States with increased learning opportunities.

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) While there are rural education initiatives identified 
        at the State and local level, no Federal education policy 
        focuses on the specific needs of rural school districts and 
        schools, especially those that serve poor students.
            (2) Under Federal law, there is no consistent definition 
        for rural schools, rural school districts, or rural local 
        educational agencies.
            (3) The National Center for Educational Statistics (NCES) 
        reports that 46 percent of our Nation's public schools serve 
        rural areas.
            (4) A critical problem for rural school districts involves 
        the hiring and retention of qualified administrators and 
        certified teachers (especially in science and mathematics). 
        Consequently, teachers in rural schools are almost twice as 
        likely to provide instruction in 3 or more subjects than 
        teachers in urban schools. Rural schools also face other tough 
        challenges, such as shrinking local tax bases, high 
        transportation costs, aging buildings, limited course 
        offerings, and limited resources.
            (5) Data from the National Assessment of Educational 
        Progress (NAEP) consistently show large gaps between the 
        achievement of students in high-poverty schools and those in 
        other schools. High-poverty schools will face special 
        challenges in preparing their students to reach high standards 
        of performance on State and national assessments.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Elementary school; local educational agency; secondary 
        school; state educational agency.--The terms ``elementary 
        school'', ``local educational agency'', ``secondary school'', 
        and ``State educational agency'' have the meanings given the 
        terms in section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801).
            (2) Eligible local educational agency.--The term ``eligible 
        local educational agency'' means a local educational agency 
        that serves--
                    (A) a school-age population, 20 percent or more of 
                whom are from families with incomes below the poverty 
                line; and
                    (B)(i) a school district that is located in a rural 
                locality; or
                    (ii) a school-age population of 800 or fewer.
            (3) Metropolitan statistical area.--The term ``metropolitan 
        statistical area'' includes the area defined as such by the 
        Secretary of Commerce.
            (4) Poverty line.--The term ``poverty line'' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            (5) Rural locality.--The term ``rural locality'' means a 
        locality that is not within a metropolitan statistical area.
            (6) School-age population.--The term ``school-age 
        population'' means the number of students aged 5 through 17.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (8) Specially qualified agency.--The term ``specially 
        qualified agency'' means an eligible local educational agency, 
        located in a State that does not participate in a program under 
        this Act in a fiscal year, that may apply directly to the 
        Secretary for a grant in such year in accordance with section 
        5(b)(3).

SEC. 5. PROGRAM AUTHORIZED.

    (a) Reservations.--From amounts appropriated under section 9 for a 
fiscal year, the Secretary shall reserve 0.5 percent to make awards to 
elementary or secondary schools operated or supported by the Bureau of 
Indian Affairs to carry out the purpose of this Act.
    (b) Grants to States.--
            (1) In general.--From amounts appropriated under section 9 
        that are not reserved under subsection (a), the Secretary shall 
        award grants to State educational agencies that have 
        applications approved under section 7 to enable the State 
        educational agencies to award grants to eligible local 
        educational agencies or schools described in section 6(b)(2) 
        for local authorized activities described in subsection (c).
            (2) Formula.--The Secretary shall allot to each State 
        educational agency an amount that bears the same relation to 
        the amount of funds appropriated under section 9 that are not 
        reserved under subsection (a) as the number of students served 
        by eligible local educational agencies in the State bears to 
the number of all students served by eligible local educational 
agencies in all States.
            (3) Direct awards to specially qualified agencies.--
                    (A) Nonparticipating state.--If a State educational 
                agency elects not to participate in the program under 
                this Act or does not have an application approved under 
                section 7, a specially qualified agency in such State 
                desiring a grant under this Act shall apply directly to 
                the Secretary to receive an award under this Act.
                    (B) Direct awards to specially qualified 
                agencies.--The Secretary may award, on a competitive 
                basis, the amount the State educational agency is 
                eligible to receive under paragraph (2) directly to 
                specially qualified agencies in the State.
    (c) Local Activities.--Grant funds awarded to local educational 
agencies or made available to schools under this Act shall be used 
for--
            (1) educational technology, including software and 
        hardware;
            (2) professional development;
            (3) technical assistance;
            (4) teacher recruitment and retention;
            (5) parental involvement activities; or
            (6) academic enrichment programs.

SEC. 6. STATE DISTRIBUTION OF FUNDS.

    (a) Award Basis.--A State educational agency shall award grants to 
eligible local educational agencies or provide assistance to schools 
described in subsection (b)(2)--
            (1) on a competitive basis; or
            (2) according to a formula based on the number of students 
        served by the eligible local educational agencies or schools 
        (as appropriate) in the State, as determined by the State.
    (b) First Year.--For the first year that a State educational agency 
receives a grant under this Act, the State educational agency--
            (1) shall use not less than 90 percent of the grant funds 
        to award grants to eligible local educational agencies in the 
        State;
            (2) shall use not more than 9 percent of the grant funds to 
        provide assistance to schools located in a noneligible local 
        educational agency if the school--
                    (A) is located in a rural community that has a 
                population of 2,500 or less, or a rural community with 
                a population density of less than 1,000 people per 
                square mile; and
                    (B) serves a school-age population, 20 percent or 
                more of whom are from families with incomes below the 
                poverty line; and
            (3) may use not more than 1 percent for State activities 
        and administrative costs related to the program.
    (c) Succeeding Years.--For the second and each succeeding year that 
a State educational agency receives a grant under this Act, the State 
educational agency--
            (1) shall use not less than 90 percent of the grant funds 
        to award grants to eligible local educational agencies in the 
        State;
            (2) shall use not more than 9.5 percent of the grant funds 
        to provide assistance to a school described in subsection 
        (b)(2); and
            (3) may use not more than 0.5 percent of the grant funds 
        for State activities and administrative costs related to the 
        program.

SEC. 7. APPLICATIONS.

    Each State educational agency and specially qualified agency 
desiring a grant under this Act shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require. Such application shall 
include specific measurable goals and objectives to be achieved which 
may include specific educational goals and objectives relating to 
increased student academic achievement, decreased student drop-out 
rates, or such other factors that the State educational agency or 
specially qualified agency may choose to measure.

SEC. 8. REPORTS.

    (a) State Reports.--Each State educational agency that receives a 
grant under this Act shall provide an annual report to the Secretary. 
The report shall describe--
            (1) the method the State educational agency used to award 
        grants to eligible local educational agencies and to provide 
        assistance to schools under this Act;
            (2) how local educational agencies and schools used funds 
        provided under this Act; and
            (3) the degree to which progress has been made toward 
        meeting the goals and objectives described in the application 
        submitted under section 7.
    (b) Specially Qualified Agency Report.--Each specially qualified 
agency that receives a grant under this Act shall provide an annual 
report to the Secretary. Such report shall describe--
            (1) how such agency uses funds provided under this Act; and
            (2) the degree to which progress has been made toward 
        meeting the goals and objectives described in the application 
        submitted under section 5(b)(3)(A).
    (c) Report to Congress.--The Secretary shall prepare and submit to 
Congress an annual report. The report shall describe--
            (1) the methods the State educational agency used to award 
        grants to eligible local educational agencies and to provide 
        assistance to schools under this Act;
            (2) how eligible local educational agencies and schools 
        used funds provided under this Act; and
            (3) progress made in meeting specific measurable 
        educational goals and objectives.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act 
$300,000,000 for each of the fiscal years 2000 through 2004.
Rural Education Development Initiative for the 21st Century Act - Directs the Secretary of Education to make grants to States for elementary and secondary education development by local educational agencies (LEAs) that are eligible because they serve: (1) a school-age population of whom 20 percent or more are from families with incomes below the poverty line; and (2) a school district in a rural locality, or a school-age population of 800 or fewer. 
Reserves a specified portion of grant funds for schools operated by the Bureau of Indian Affairs. 
Sets forth an allotment formula for grants to State educational agencies (SEAs) to make grants to eligible LEAs. 
Authorizes the Secretary to make direct competitive grants to specially qualified eligible rural LEAs in nonparticipating States. 
Requires LEAs or their schools to use grant funds for: (1) educational technology, including software and hardware; (2) professional development; (3) technical assistance; (4) teacher recruitment and retention; (5) parental involvement activities; or (6) academic enrichment programs. 
Requires SEAs to award grants on a competitive or formula basis. Requires that at least 90 percent of such funds be awarded to eligible LEAs.  Allows specified portions of the remainder to be used for: (1) assistance to schools that meet certain eligibility criteria, even though they are in noneligible LEAs; and (2) State activities and administrative costs related to the grant program. 
Authorizes appropriations.
Rural Education Development Initiative for the 21st Century Act