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[107th Congress Public Law 110]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ110.107]

[[Page 115 STAT. 1425]]

Public Law 107-110
107th Congress

                                 An Act

 
   To close the achievement gap with accountability, flexibility, and 
 choice, so that no child is left behind. <<NOTE: Jan. 8, 2002 -  [H.R. 
                                  1]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: No Child Left 
Behind Act of 2001. Education. Inter-governmental relations.>> 

SECTION 1. SHORT TITLE. <<NOTE: 20 USC 6301 note.>> 

    This title may be cited as the ``No Child Left Behind Act of 2001''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Transition.
Sec. 5. Effective date.
Sec. 6. Table of contents of Elementary and Secondary Education Act of 
           1965.

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

Sec. 101. Improving the academic achievement of the disadvantaged.

TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
                               PRINCIPALS

Sec. 201. Teacher and principal training and recruiting fund.
Sec. 202. Continuation of awards.

   TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

Sec. 301. Language instruction for limited English proficient children 
           and immigrant children and youth.

                     TITLE IV--21ST CENTURY SCHOOLS

Sec. 401. 21st Century schools.

   TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

Sec. 501. Innovative programs and parental choice provisions.
Sec. 502. Continuation of awards.

                TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

Sec. 601. Flexibility and accountability.
Sec. 602. Amendment to the National Education Statistics Act of 1994.

     TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

Sec. 701. Indians, Native Hawaiians, and Alaska Natives.
Sec. 702. Conforming amendments.
Sec. 703. Savings provisions.

                     TITLE VIII--IMPACT AID PROGRAM

Sec. 801. Payments relating to Federal acquisition of real property.

[[Page 115 STAT. 1426]]

Sec. 802. Payments for eligible federally connected children.
Sec. 803. Construction.
Sec. 804. State consideration of payments in providing State aid.
Sec. 805. Authorization of appropriations.

                      TITLE IX--GENERAL PROVISIONS

Sec. 901. General provisions.

   TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES

                             Part A--Repeals

Sec. 1011. Repeals.
Sec. 1012. Conforming clerical and technical amendments.

                         Part B--Redesignations

Sec. 1021. Comprehensive Regional Assistance Centers.
Sec. 1022. National Diffusion Network.
Sec. 1023. Eisenhower Regional Mathematics and Science Education 
           Consortia.
Sec. 1024. Technology-based technical assistance.
Sec. 1025. Conforming amendments.

                       Part C--Homeless Education

Sec. 1031. Short title.
Sec. 1032. Education for homeless children and youths.
Sec. 1033. Conforming amendment.
Sec. 1034. Technical amendment.

              Part D--Native American Education Improvement

Sec. 1041. Short title.
Sec. 1042. Amendments to the Education Amendments of 1978.
Sec. 1043. Tribally Controlled Schools Act of 1988.
Sec. 1044. Lease payments by the Ojibwa Indian School.
Sec. 1045. Enrollment and general assistance payments.

                  Part E--Higher Education Act of 1965

Sec. 1051. Preparing tomorrow's teachers to use technology.
Sec. 1052. Continuation of awards.

                Part F--General Education Provisions Act

Sec. 1061. Student privacy, parental access to information, and 
           administration of certain physical examinations to minors.
Sec. 1062. Technical corrections.

                  Part G--Miscellaneous Other Statutes

Sec. 1071. Title 5 of the United States Code.
Sec. 1072. Department of Education Organization Act.
Sec. 1073. Education Flexibility Partnership Act of 1999.
Sec. 1074. Educational Research, Development, Dissemination, and 
           Improvement Act of 1994.
Sec. 1075. National Child Protection Act of 1993.
Sec. 1076. Technical and conforming amendments.

SEC. 3. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6301 et seq.).

SEC. 4. TRANSITION. <<NOTE: 20 USC 6301 note.>> 

    (a) Multi-Year Awards.--Except as otherwise provided in this Act, 
the recipient of a multi-year award under the Elementary and Secondary 
Education Act of 1965, as that Act was in effect prior to the date of 
enactment of this Act, shall continue to receive funds in accordance 
with the terms of that award, except that no additional funds may be 
awarded after September 30, 2002.

[[Page 115 STAT. 1427]]

    (b) Planning and Transition.--Notwithstanding any other provision of 
law, a recipient of funds under the Elementary and Secondary Education 
Act of 1965, as that Act was in effect prior to the date of enactment of 
this Act, may use funds available to the recipient under that 
predecessor authority to carry out necessary and reasonable planning and 
transition activities in order to ensure an orderly implementation of 
programs authorized by this Act, and the amendments made by this Act.
    (c) Orderly Transition.--The Secretary shall take such steps as are 
necessary to provide for the orderly transition to, and implementation 
of, programs authorized by this Act, and by the amendments made by this 
Act, from programs authorized by the Elementary and Secondary Education 
Act of 1965, as that Act was in effect prior to the date of enactment of 
this Act.

SEC. 5. EFFECTIVE DATE. <<NOTE: 20 USC 6301 note.>> 

    (a) In General.--Except as otherwise provided in this Act, this Act, 
and the amendments made by this Act, shall be effective upon the date of 
enactment of this Act.
    (b) Noncompetitive Programs.--With respect to noncompetitive 
programs under which any funds are allotted by the Secretary of 
Education to recipients on the basis of a formula, this Act, and the 
amendments made by this Act, shall take effect on July 1, 2002.
    (c) Competitive Programs.--With respect to programs that are 
conducted by the Secretary on a competitive basis, this Act, and the 
amendments made by this Act, shall take effect with respect to 
appropriations for use under those programs for fiscal year 2002.
    (d) Impact Aid.--With respect to title VIII (Impact Aid), this Act, 
and the amendments made by this Act, shall take effect with respect to 
appropriations for use under that title for fiscal year 2002.

SEC. 6. TABLE OF CONTENTS OF ELEMENTARY AND SECONDARY EDUCATION ACT OF 
            1965.

    The Act is amended--
            (1) in the heading of section 1, <<NOTE: 20 USC 6301 
        note.>>  by striking ``table of contents'' and inserting ``short 
        title''; and
            (2) by adding after section 1 the following new section:

``SEC. 2. TABLE OF CONTENTS.

    ``The table of contents for this Act is as follows:

``Sec. 1. Short title.
``Sec. 2. Table of contents.

   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

``Sec. 1001. Statement of purpose.
``Sec. 1002. Authorization of appropriations.
``Sec. 1003. School improvement.
``Sec. 1004. State administration.

    ``Part A--Improving Basic Programs Operated by Local Educational 
                                Agencies

                 ``Subpart 1--Basic Program Requirements

``Sec. 1111. State plans.
``Sec. 1112. Local educational agency plans.
``Sec. 1113. Eligible school attendance areas.
``Sec. 1114. Schoolwide programs.

[[Page 115 STAT. 1428]]

``Sec. 1115. Targeted assistance schools.
``Sec. 1116. Academic assessment and local educational agency and school 
           improvement.
``Sec. 1117. School support and recognition.
``Sec. 1118. Parental involvement.
``Sec. 1119. Qualifications for teachers and paraprofessionals.
``Sec. 1120. Participation of children enrolled in private schools.
``Sec. 1120A. Fiscal requirements.
``Sec. 1120B. Coordination requirements.

                        ``Subpart 2--Allocations

``Sec. 1121. Grants for the outlying areas and the Secretary of the 
           Interior.
``Sec. 1122. Allocations to States.
``Sec. 1124. Basic grants to local educational agencies.
``Sec. 1124A. Concentration grants to local educational agencies.
``Sec. 1125. Targeted grants to local educational agencies.
``Sec. 1125AA. Adequacy of funding of targeted grants to local 
           educational agencies in fiscal years after fiscal year 2001.
``Sec. 1125A. Education finance incentive grant program.
``Sec. 1126. Special allocation procedures.
``Sec. 1127. Carryover and waiver.

           ``Part B--Student Reading Skills Improvement Grants

                       ``Subpart 1--Reading First

``Sec. 1201. Purposes.
``Sec. 1202. Formula grants to State educational agencies.
``Sec. 1203. State formula grant applications.
``Sec. 1204. Targeted assistance grants.
``Sec. 1205. External evaluation.
``Sec. 1206. National activities.
``Sec. 1207. Information dissemination.
``Sec. 1208. Definitions.

                    ``Subpart 2--Early Reading First

``Sec. 1221. Purposes; definitions.
``Sec. 1222. Local Early Reading First grants.
``Sec. 1223. Federal administration.
``Sec. 1224. Information dissemination.
``Sec. 1225. Reporting requirements.
``Sec. 1226. Evaluation.

  ``Subpart 3--William F. Goodling Even Start Family Literacy Programs

``Sec. 1231. Statement of purpose.
``Sec. 1232. Program authorized.
``Sec. 1233. State educational agency programs.
``Sec. 1234. Uses of funds.
``Sec. 1235. Program elements.
``Sec. 1236. Eligible participants.
``Sec. 1237. Applications.
``Sec. 1238. Award of subgrants.
``Sec. 1239. Evaluation.
``Sec. 1240. Indicators of program quality.
``Sec. 1241. Research.
``Sec. 1242. Construction.

        ``Subpart 4--Improving Literacy Through School Libraries

``Sec. 1251. Improving literacy through school libraries.

                ``Part C--Education of Migratory Children

``Sec. 1301. Program purpose.
``Sec. 1302. Program authorized.
``Sec. 1303. State allocations.
``Sec. 1304. State applications; services.
``Sec. 1305. Secretarial approval; peer review.
``Sec. 1306. Comprehensive needs assessment and service-delivery plan; 
           authorized activities.
``Sec. 1307. Bypass.
``Sec. 1308. Coordination of migrant education activities.
``Sec. 1309. Definitions.

[[Page 115 STAT. 1429]]

 ``Part D--Prevention and Intervention Programs for Children and Youth 
                who are Neglected, Delinquent, or At-risk

``Sec. 1401. Purpose and program authorization.
``Sec. 1402. Payments for programs under this part.

                   ``Subpart 1--State Agency Programs

``Sec. 1411. Eligibility.
``Sec. 1412. Allocation of funds.
``Sec. 1413. State reallocation of funds.
``Sec. 1414. State plan and State agency applications.
``Sec. 1415. Use of funds.
``Sec. 1416. Institution-wide projects.
``Sec. 1417. Three-year programs or projects.
``Sec. 1418. Transition services.
``Sec. 1419. Evaluation; technical assistance; annual model program.

                   ``Subpart 2--Local Agency Programs

``Sec. 1421. Purpose.
``Sec. 1422. Programs operated by local educational agencies.
``Sec. 1423. Local educational agency applications.
``Sec. 1424. Uses of funds.
``Sec. 1425. Program requirements for correctional facilities receiving 
           funds under this section.
``Sec. 1426. Accountability.

                     ``Subpart 3--General Provisions

``Sec. 1431. Program evaluations.
``Sec. 1432. Definitions.

                ``Part E--National Assessment of Title I

``Sec. 1501. Evaluations.
``Sec. 1502. Demonstrations of innovative practices.
``Sec. 1503. Assessment evaluation.
``Sec. 1504. Close Up fellowship program.

                  ``Part F--Comprehensive School Reform

``Sec. 1601. Purpose.
``Sec. 1602. Program authorization.
``Sec. 1603. State applications.
``Sec. 1604. State use of funds.
``Sec. 1605. Local applications.
``Sec. 1606. Local use of funds.
``Sec. 1607. Evaluation and reports.
``Sec. 1608. Quality initiatives.

                  ``Part G--Advanced Placement Programs

``Sec. 1701. Short title.
``Sec. 1702. Purposes.
``Sec. 1703. Funding distribution rule.
``Sec. 1704. Advanced placement test fee program.
``Sec. 1705. Advanced placement incentive program grants.
``Sec. 1706. Supplement, not supplant.
``Sec. 1707. Definitions.

                   ``Part H--School Dropout Prevention

``Sec. 1801. Short title.
``Sec. 1802. Purpose.
``Sec. 1803. Authorization of appropriations.

               ``Subpart 1--Coordinated National Strategy

``Sec. 1811. National activities.

            ``Subpart 2--School Dropout Prevention Initiative

``Sec. 1821. Definitions.
``Sec. 1822. Program authorized.
``Sec. 1823. Applications.
``Sec. 1824. State reservation.
``Sec. 1825. Strategies and capacity building.
``Sec. 1826. Selection of local educational agencies for subgrants.

[[Page 115 STAT. 1430]]

``Sec. 1827. Community based organizations.
``Sec. 1828. Technical assistance.
``Sec. 1829. School dropout rate calculation.
``Sec. 1830. Reporting and accountability.

                      ``Part I--General Provisions

``Sec. 1901. Federal regulations.
``Sec. 1902. Agreements and records.
``Sec. 1903. State administration.
``Sec. 1904. Local educational agency spending audits.
``Sec. 1905. Prohibition against Federal mandates, direction, or 
           control.
``Sec. 1906. Rule of construction on equalized spending.
``Sec. 1907. State report on dropout data.
``Sec. 1908. Regulations for sections 1111 and 1116.

 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS 
                             AND PRINCIPALS

      ``Part A--Teacher and Principal Training and Recruiting Fund

``Sec. 2101. Purpose.
``Sec. 2102. Definitions.
``Sec. 2103. Authorizations of appropriations.

                      ``Subpart 1--Grants to States

``Sec. 2111. Allotments to States.
``Sec. 2112. State applications.
``Sec. 2113. State use of funds.

          ``Subpart 2--Subgrants to Local Educational Agencies

``Sec. 2121. Allocations to local educational agencies.
``Sec. 2122. Local applications and needs assessment.
``Sec. 2123. Local use of funds.

             ``Subpart 3--Subgrants to Eligible Partnerships

``Sec. 2131. Definitions.
``Sec. 2132. Subgrants.
``Sec. 2133. Applications.
``Sec. 2134. Use of funds.

                       ``Subpart 4--Accountability

``Sec. 2141. Technical assistance and accountability.

                    ``Subpart 5--National Activities

``Sec. 2151. National activities of demonstrated effectiveness.

             ``Part B--Mathematics and Science Partnerships

``Sec. 2201. Purpose; definitions.
``Sec. 2202. Grants for mathematics and science partnerships.
``Sec. 2203. Authorization of appropriations.

                ``Part C--Innovation for Teacher Quality

                  ``Subpart 1--Transitions to Teaching

                 ``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

``Sec. 2301. Definitions.
``Sec. 2302. Authorization of Troops-to-Teachers Program.
``Sec. 2303. Recruitment and selection of program participants.
``Sec. 2304. Participation agreement and financial assistance.
``Sec. 2305. Participation by States.
``Sec. 2306. Support of innovative preretirement teacher certification 
           programs.
``Sec. 2307. Reporting requirements.
               ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

``Sec. 2311. Purposes.
``Sec. 2312. Definitions.
``Sec. 2313. Grant program.
``Sec. 2314. Evaluation and accountability for recruiting and retaining 
           teachers.
                     ``CHAPTER C--GENERAL PROVISIONS

``Sec. 2321. Authorization of appropriations.

[[Page 115 STAT. 1431]]

                  ``Subpart 2--National Writing Project

``Sec. 2331. Purposes.
``Sec. 2332. National Writing Project.

                      ``Subpart 3--Civic Education

``Sec. 2341. Short title.
``Sec. 2342. Purpose.
``Sec. 2343. General authority.
``Sec. 2344. We the People program.
``Sec. 2345. Cooperative civic education and economic education exchange 
           programs.
``Sec. 2346. Authorization of appropriations.

          ``Subpart 4--Teaching of Traditional American History

``Sec. 2351. Establishment of program.
``Sec. 2352. Authorization of appropriations.

                ``Subpart 5--Teacher Liability Protection

``Sec. 2361. Short title.
``Sec. 2362. Purpose.
``Sec. 2363. Definitions.
``Sec. 2364. Applicability.
``Sec. 2365. Preemption and election of State nonapplicability.
``Sec. 2366. Limitation on liability for teachers.
``Sec. 2367. Allocation of responsibility for noneconomic loss.
``Sec. 2368. Effective date.

            ``Part D--Enhancing Education Through Technology

``Sec. 2401. Short title.
``Sec. 2402. Purposes and goals.
``Sec. 2403. Definitions.
``Sec. 2404. Authorization of appropriations.

             ``Subpart 1--State and Local Technology Grants

``Sec. 2411. Allotment and reallotment.
``Sec. 2412. Use of allotment by State.
``Sec. 2413. State applications.
``Sec. 2414. Local applications.
``Sec. 2415. State activities.
``Sec. 2416. Local activities.

               ``Subpart 2--National Technology Activities

``Sec. 2421. National activities.
``Sec. 2422. National education technology plan.

                 ``Subpart 3--Ready-to-Learn Television

``Sec. 2431. Ready-to-Learn Television.

  ``Subpart 4--Limitation on Availability of Certain Funds for Schools

``Sec. 2441. Internet safety.

  ``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

``Sec. 3001. Authorizations of appropriations; condition on 
           effectiveness of parts.

   ``Part A--English Language Acquisition, Language Enhancement, and 
                        Academic Achievement Act

``Sec. 3101. Short title.
``Sec. 3102. Purposes.

 ``Subpart 1--Grants and Subgrants for English Language Acquisition and 
                          Language Enhancement

``Sec. 3111. Formula grants to States.
``Sec. 3112. Native American and Alaska Native children in school.
``Sec. 3113. State and specially qualified agency plans.
``Sec. 3114. Within-State allocations.
``Sec. 3115. Subgrants to eligible entities.
``Sec. 3116. Local plans.

             ``Subpart 2--Accountability and Administration

``Sec. 3121. Evaluations.

[[Page 115 STAT. 1432]]

``Sec. 3122. Achievement objectives and accountability.
``Sec. 3123. Reporting requirements.
``Sec. 3124. Coordination with related programs.
``Sec. 3125. Rules of construction.
``Sec. 3126. Legal authority under State law.
``Sec. 3127. Civil rights.
``Sec. 3128. Programs for Native Americans and Puerto Rico.
``Sec. 3129. Prohibition.

                    ``Subpart 3--National Activities

``Sec. 3131. National professional development project.

                        ``Subpart 4--Definitions

``Sec. 3141. Eligible entity.

      ``Part B--Improving Language Instruction Educational Programs

``Sec. 3201. Short title.
``Sec. 3202. Purpose.
``Sec. 3203. Native American children in school.
``Sec. 3204. Residents of the territories and freely associated states.

            ``Subpart 1--Program Development and Enhancement

``Sec. 3211. Financial assistance for language instruction educational 
           programs.
``Sec. 3212. Program enhancement activities.
``Sec. 3213. Comprehensive school and systemwide improvement activities.
``Sec. 3214. Applications.
``Sec. 3215. Capacity building.
``Sec. 3216. Programs for Native Americans and Puerto Rico.
``Sec. 3217. Evaluations.
``Sec. 3218. Construction.

          ``Subpart 2--Research, Evaluation, and Dissemination

``Sec. 3221. Authority.
``Sec. 3222. Research.
``Sec. 3223. Academic excellence awards.
``Sec. 3224. State grant program.
``Sec. 3225. Instruction materials development.

                  ``Subpart 3--Professional Development

``Sec. 3231. Professional development grants.

           ``Subpart 4--Emergency Immigrant Education Program

``Sec. 3241. Purpose.
``Sec. 3242. State administrative costs.
``Sec. 3243. Withholding.
``Sec. 3244. State allotments.
``Sec. 3245. State applications.
``Sec. 3246. Administrative provisions.
``Sec. 3247. Uses of funds.
``Sec. 3248. Reports.

                       ``Subpart 5--Administration

``Sec. 3251. Release time.
``Sec. 3252. Notification.
``Sec. 3253. Coordination and reporting requirements.

                      ``Part C--General Provisions

``Sec. 3301. Definitions.
``Sec. 3302. Parental notification.
``Sec. 3303. National Clearinghouse.
``Sec. 3304. Regulations.

                    ``TITLE IV--21ST CENTURY SCHOOLS

          ``Part A--Safe and Drug-Free Schools and Communities

``Sec. 4001. Short title.
``Sec. 4002. Purpose.
``Sec. 4003. Authorization of appropriations.

                        ``Subpart 1--State Grants

``Sec. 4111. Reservations and allotments.

[[Page 115 STAT. 1433]]

``Sec. 4112. Reservation of State funds for safe and drug-free schools.
``Sec. 4113. State application.
``Sec. 4114. Local educational agency program.
``Sec. 4115. Authorized activities.
``Sec. 4116. Reporting.
``Sec. 4117. Programs for Native Hawaiians.

                     ``Subpart 2--National Programs

``Sec. 4121. Federal activities.
``Sec. 4122. Impact evaluation.
``Sec. 4123. Hate crime prevention.
``Sec. 4124. Safe and Drug-Free Schools and Communities Advisory 
           Committee.
``Sec. 4125. National coordinator program.
``Sec. 4126. Community service grant program.
``Sec. 4127. School Security Technology and Resource Center.
``Sec. 4128. National Center for School and Youth Safety.
``Sec. 4129. Grants to reduce alcohol abuse.
``Sec. 4130. Mentoring programs.

                       ``Subpart 3--Gun Possession

``Sec. 4141. Gun-free requirements.

                     ``Subpart 4--General Provisions

``Sec. 4151. Definitions.
``Sec. 4152. Message and materials.
``Sec. 4153. Parental consent.
``Sec. 4154. Prohibited uses of funds.
``Sec. 4155. Transfer of school disciplinary records.

            ``Part B--21st Century Community Learning Centers

``Sec. 4201. Purpose; definitions.
``Sec. 4202. Allotments to States.
``Sec. 4203. State application.
``Sec. 4204. Local competitive grant program.
``Sec. 4205. Local activities.
``Sec. 4206. Authorization of appropriations.

                  ``Part C--Environmental Tobacco Smoke

``Sec. 4301. Short title.
``Sec. 4302. Definitions.
``Sec. 4303. Nonsmoking policy for children's services.
``Sec. 4304. Preemption.

  ``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                      ``Part A--Innovative Programs

``Sec. 5101. Purposes, State and local responsibility.

                  ``Subpart 1--State and Local Programs

``Sec. 5111. Allotment to States.
``Sec. 5112. Allocation to local educational agencies.

                       ``Subpart 2--State Programs

``Sec. 5121. State uses of funds.
``Sec. 5122. State applications.

            ``Subpart 3--Local Innovative Education Programs

``Sec. 5131. Local uses of funds.
``Sec. 5132. Administrative authority.
``Sec. 5133. Local applications.

                     ``Subpart 4--General Provisions

``Sec. 5141. Maintenance of effort.
``Sec. 5142. Participation of children enrolled in private schools.
``Sec. 5143. Federal administration.
``Sec. 5144. Supplement, not supplant.
``Sec. 5145. Definitions.
``Sec. 5146. Authorization of appropriations.

[[Page 115 STAT. 1434]]

                    ``Part B--Public Charter Schools

                  ``Subpart 1--Charter School Programs

``Sec. 5201. Purpose.
``Sec. 5202. Program authorized.
``Sec. 5203. Applications.
``Sec. 5204. Administration.
``Sec. 5205. National activities.
``Sec. 5206. Federal formula allocation during first year and for 
           successive enrollment expansions.
``Sec. 5207. Solicitation of input from charter school operators.
``Sec. 5208. Records transfer.
``Sec. 5209. Paperwork reduction.
``Sec. 5210. Definitions.
``Sec. 5211. Authorization of appropriations.

  ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

``Sec. 5221. Purpose.
``Sec. 5222. Grants to eligible entities.
``Sec. 5223. Applications.
``Sec. 5224. Charter school objectives.
``Sec. 5225. Reserve account.
``Sec. 5226. Limitation on administrative costs.
``Sec. 5227. Audits and reports.
``Sec. 5228. No full faith and credit for grantee obligations.
``Sec. 5229. Recovery of funds.
``Sec. 5230. Definitions.
``Sec. 5231. Authorization of appropriations.

          ``Subpart 3--Voluntary Public School Choice Programs

``Sec. 5241. Grants.
``Sec. 5242. Uses of funds.
``Sec. 5243. Applications.
``Sec. 5244. Priorities.
``Sec. 5245. Requirements and voluntary participation.
``Sec. 5246. Evaluations.
``Sec. 5247. Definitions.
``Sec. 5248. Authorization of appropriations.

                   ``Part C--Magnet Schools Assistance

``Sec. 5301. Findings and purpose.
``Sec. 5302. Definition.
``Sec. 5303. Program authorized.
``Sec. 5304. Eligibility.
``Sec. 5305. Applications and requirements.
``Sec. 5306. Priority.
``Sec. 5307. Use of funds.
``Sec. 5308. Prohibition.
``Sec. 5309. Limitations.
``Sec. 5310. Evaluations.
``Sec. 5311. Authorization of appropriations; reservation.

             ``Part D--Fund for the Improvement of Education

``Sec. 5401. Authorization of appropriations.

           ``Subpart 1--Fund for the Improvement of Education

``Sec. 5411. Programs authorized.
``Sec. 5412. Applications.
``Sec. 5413. Program requirements.
``Sec. 5414. Studies of national significance.

    ``Subpart 2--Elementary and Secondary School Counseling Programs

``Sec. 5421. Elementary and secondary school counseling programs.

            ``Subpart 3--Partnerships in Character Education

``Sec. 5431. Partnerships in Character Education program.

                ``Subpart 4--Smaller Learning Communities

``Sec. 5441. Smaller learning communities.

[[Page 115 STAT. 1435]]

   ``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution 
                                 Program

``Sec. 5451. Inexpensive book distribution program for reading 
           motivation.

                ``Subpart 6--Gifted and Talented Students

``Sec. 5461. Short title.
``Sec. 5462. Purpose.
``Sec. 5463. Rule of construction.
``Sec. 5464. Authorized programs.
``Sec. 5465. Program priorities.
``Sec. 5466. General provisions.

                    ``Subpart 7--Star Schools Program

``Sec. 5471. Short title.
``Sec. 5472. Purposes.
``Sec. 5473. Grant program authorized.
``Sec. 5474. Applications.
``Sec. 5475. Other grant assistance.
``Sec. 5476. Administrative provisions.
``Sec. 5477. Definitions.

                       ``Subpart 8--Ready to Teach

``Sec. 5481. Grants.
``Sec. 5482. Application required.
``Sec. 5483. Reports and evaluation.
``Sec. 5484. Digital educational programming grants.
``Sec. 5485. Administrative costs.

            ``Subpart 9--Foreign Language Assistance Program

``Sec. 5491. Short title.
``Sec. 5492. Program authorized.
``Sec. 5493. Applications.
``Sec. 5494. Elementary school foreign language incentive program.

                    ``Subpart 10--Physical Education

``Sec. 5501. Short title.
``Sec. 5502. Purpose.
``Sec. 5503. Program authorized.
``Sec. 5504. Applications.
``Sec. 5505. Requirements.
``Sec. 5506. Administrative provisions.
``Sec. 5507. Supplement, not supplant.

               ``Subpart 11--Community Technology Centers

``Sec. 5511. Purpose and program authorization.
``Sec. 5512. Eligibility and application requirements.
``Sec. 5513. Uses of funds.

   ``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange 
  Programs for Alaska Natives, Native Hawaiians, and Their Historical 
              Whaling and Trading Partners in Massachusetts

``Sec. 5521. Short title.
``Sec. 5522. Findings and purposes.
``Sec. 5523. Program authorization.
``Sec. 5524. Administrative provisions.
``Sec. 5525. Availability of funds.
``Sec. 5526. Definitions.

             ``Subpart 13--Excellence in Economic Education

``Sec. 5531. Short title.
``Sec. 5532. Purpose and goals.
``Sec. 5533. Grant program authorized.
``Sec. 5534. Applications.
``Sec. 5535. Requirements.
``Sec. 5536. Administrative provisions.
``Sec. 5537. Supplement, not supplant.

      ``Subpart 14--Grants to Improve the Mental Health of Children

``Sec. 5541. Grants for the integration of schools and mental health 
           systems.

[[Page 115 STAT. 1436]]

``Sec. 5542. Promotion of school readiness through early childhood 
           emotional and social development.

                     ``Subpart 15--Arts in Education

``Sec. 5551. Assistance for arts education.

 ``Subpart 16--Parental Assistance and Local Family Information Centers

``Sec. 5561. Purposes.
``Sec. 5562. Grants authorized.
``Sec. 5563. Applications.
``Sec. 5564. Uses of funds.
``Sec. 5565. Administrative provisions.
``Sec. 5566. Local family information centers.

               ``Subpart 17--Combatting Domestic Violence

``Sec. 5571. Grants to combat the impact of experiencing or witnessing 
           domestic violence on elementary and secondary school 
           children.

             ``Subpart 18--Healthy, High-Performance Schools

``Sec. 5581. Grant program authorized.
``Sec. 5582. State uses of funds.
``Sec. 5583. Local uses of funds.
``Sec. 5584. Report to Congress.
``Sec. 5585. Limitations.
``Sec. 5586. Healthy, high-performance school building defined.

    ``Subpart 19--Grants for Capital Expenses of Providing Equitable 
                  Services for Private School Students

``Sec. 5591. Grant program authorized.
``Sec. 5592. Uses of funds.
``Sec. 5593. Allotments to States.
``Sec. 5594. Subgrants to local educational agencies.
``Sec. 5595. Capital expenses defined.
``Sec. 5596. Termination.

   ``Subpart 20--Additional Assistance for Certain Local Educational 
            Agencies Impacted by Federal Property Acquisition

``Sec. 5601. Reservation.
``Sec. 5602. Eligibility.
``Sec. 5603. Maximum amount.

              ``Subpart 21--Women's Educational Equity Act

``Sec. 5611. Short title and findings.
``Sec. 5612. Statement of purpose.
``Sec. 5613. Programs authorized.
``Sec. 5614. Applications.
``Sec. 5615. Criteria and priorities.
``Sec. 5616. Report.
``Sec. 5617. Administration.
``Sec. 5618. Amount.

               ``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

                ``Part A--Improving Academic Achievement

                       ``Subpart 1--Accountability

``Sec. 6111. Grants for State assessments and related activities.
``Sec. 6112. Grants for enhanced assessment instruments.
``Sec. 6113. Funding.

  ``Subpart 2--Funding Transferability for State and Local Educational 
                                Agencies

``Sec. 6121. Short title.
``Sec. 6122. Purpose.
``Sec. 6123. Transferability of funds.

         ``Subpart 3--State and Local Flexibility Demonstration

``Sec. 6131. Short title.
``Sec. 6132. Purpose.
``Sec. 6133. General provision.

[[Page 115 STAT. 1437]]

                ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

``Sec. 6141. State flexibility.
``Sec. 6142. Consolidation and use of funds.
``Sec. 6143. Performance review and penalties.
``Sec. 6144. Renewal of grant of flexibility authority.
              ``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION

``Sec. 6151. Local flexibility demonstration agreements.
``Sec. 6152. Consolidation and use of funds.
``Sec. 6153. Limitations on administrative expenditures.
``Sec. 6154. Performance review and penalties.
``Sec. 6155. Renewal of local flexibility demonstration agreement.
``Sec. 6156. Reports.

     ``Subpart 4--State Accountability for Adequate Yearly Progress

``Sec. 6161. Accountability for adequate yearly progress.
``Sec. 6162. Peer review.
``Sec. 6163. Technical assistance.
``Sec. 6164. Report to Congress.

                  ``Part B--Rural Education Initiative

``Sec. 6201. Short title.
``Sec. 6202. Purpose.

          ``Subpart 1--Small, Rural School Achievement Program

``Sec. 6211. Use of applicable funding.
``Sec. 6212. Grant program authorized.
``Sec. 6213. Accountability.

            ``Subpart 2--Rural and Low-Income School Program

``Sec. 6221. Program authorized.
``Sec. 6222. Uses of funds.
``Sec. 6223. Applications.
``Sec. 6224. Accountability.

                     ``Subpart 3--General Provisions

``Sec. 6231. Annual average daily attendance determination.
``Sec. 6232. Supplement, not supplant.
``Sec. 6233. Rule of construction.
``Sec. 6234. orization of appropriations.

                      ``Part C--General Provisions

``Sec. 6301. Prohibition against Federal mandates, direction, or 
           control.
``Sec. 6302. Rule of construction on equalized spending.

    ``TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

                       ``Part A--Indian Education

``Sec. 7101. Statement of policy.
``Sec. 7102. Purpose.

        ``Subpart 1--Formula Grants to Local Educational Agencies

``Sec. 7111. Purpose.
``Sec. 7112. Grants to local educational agencies and tribes.
``Sec. 7113. Amount of grants.
``Sec. 7114. Applications.
``Sec. 7115. Authorized services and activities.
``Sec. 7116. Integration of services authorized.
``Sec. 7117. Student eligibility forms.
``Sec. 7118. Payments.
``Sec. 7119. State educational agency review.

   ``Subpart 2--Special Programs and Projects To Improve Educational 
                    Opportunities for Indian Children

``Sec. 7121. Improvement of educational opportunities for Indian 
           children.
``Sec. 7122. Professional development for teachers and education 
           professionals.

                    ``Subpart 3--National Activities

``Sec. 7131. National research activities.

[[Page 115 STAT. 1438]]

``Sec. 7132. In-service training for teachers of Indian children.
``Sec. 7133. Fellowships for Indian students.
``Sec. 7134. Gifted and talented Indian students.
``Sec. 7135. Grants to tribes for education administrative planning and 
           development.
``Sec. 7136. Improvement of educational opportunities for adult Indians.

                   ``Subpart 4--Federal Administration

``Sec. 7141. National Advisory Council on Indian Education.
``Sec. 7142. Peer review.
``Sec. 7143. Preference for Indian applicants.
``Sec. 7144. Minimum grant criteria.

       ``Subpart 5--Definitions; Authorizations of Appropriations

``Sec. 7151. Definitions.
``Sec. 7152. Authorizations of appropriations.

                   ``Part B--Native Hawaiian Education

``Sec. 7201. Short title.
``Sec. 7202. Findings.
``Sec. 7203. Purposes.
``Sec. 7204. Native Hawaiian Education Council and island councils.
``Sec. 7205. Program authorized.
``Sec. 7206. Administrative provisions.
``Sec. 7207. Definitions.

                   ``Part C--Aalaska Native Education

``Sec. 7301. Short title.
``Sec. 7302. Findings.
``Sec. 7303. Purposes.
``Sec. 7304. Program authorized.
``Sec. 7305. Administrative provisions.
``Sec. 7306. Definitions.

                        ``TITLE VIII--IMPACT AID

``Sec. 8001. Purpose.
``Sec. 8002. Payments relating to Federal acquisition of real property.
``Sec. 8003. Payments for eligible federally connected children.
`Sec. 8004. Policies and procedures relating to children residing on 
           Indian lands.
``Sec. 8005. Application for payments under sections 8002 and 8003.
``Sec. 8007. Construction.
``Sec. 8008. Facilities.
``Sec. 8009. State consideration of payments in providing State aid.
``Sec. 8010. Federal administration.
``Sec. 8011. Administrative hearings and judicial review.
``Sec. 8012. Forgiveness of overpayments.
``Sec. 8013. Definitions.
``Sec. 8014. Authorization of appropriations.

                     ``TITLE IX--GENERAL PROVISIONS

                          ``Part A--Definitions

``Sec. 9101. Definitions.
``Sec. 9102. Applicability of title.
``Sec. 9103. Applicability to Bureau of Indian Affairs operated schools.

   ``Part B--Flexibility in the use of Administrative and Other Funds

``Sec. 9201. Consolidation of State administrative funds for elementary 
           and secondary education programs.
``Sec. 9202. Single local educational agency States.
``Sec. 9203. Consolidation of funds for local administration.
``Sec. 9204. Consolidated set-aside for Department of the Interior 
           funds.

 ``Part C--Coordination of Programs; Consolidated State and Local Plans 
                            and Applications

``Sec. 9301. Purpose.
``Sec. 9302. Optional consolidated State plans or applications.
``Sec. 9303. Consolidated reporting.
``Sec. 9304. General applicability of State educational agency 
           assurances.
``Sec. 9305. Consolidated local plans or applications.

[[Page 115 STAT. 1439]]

``Sec. 9306. Other general assurances.

                            ``Part D--Waivers

``Sec. 9401. Waivers of statutory and regulatory requirements.

                      ``Part E--Uniform Provisions

                      ``Subpart 1--Private Schools

``Sec. 9501. Participation by private school children and teachers.
``Sec. 9502. Standards for by-pass.
``Sec. 9503. Complaint process for participation of private school 
           children.
``Sec. 9504. By-pass determination process.
``Sec. 9505. Prohibition against funds for religious worship or 
           instruction.
``Sec. 9506. Private, religious, and home schools.

                      ``Subpart 2--Other Provisions

``Sec. 9521. Maintenance of effort.
``Sec. 9522. Prohibition regarding State aid.
``Sec. 9523. Privacy of assessment results.
``Sec. 9524. School prayer.
``Sec. 9525. Equal access to public school facilities.
``Sec. 9526. General prohibitions.
``Sec. 9527. Prohibitions on Federal Government and use of Federal 
           funds.
``Sec. 9528. Armed Forces recruiter access to students and student 
           recruiting information.
``Sec. 9529. Prohibition on federally sponsored testing.
``Sec. 9530. Limitations on national testing or certification for 
           teachers.
``Sec. 9531. Prohibition on nationwide database.
``Sec. 9532. Unsafe school choice option.
``Sec. 9533. Prohibition on discrimination.
``Sec. 9534. Civil rights.
``Sec. 9535. Rulemaking.
``Sec. 9536. Severability.

                          ``Part F--Evaluations

``Sec. 9601. Evaluations.''.

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

SEC. 101. IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED.

    Title I of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6301 et seq.) is amended to read as follows:

   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

``SEC. 1001. STATEMENT OF PURPOSE. <<NOTE: 20 USC 6301.>> 

    ``The purpose of this title is to ensure that all children have a 
fair, equal, and significant opportunity to obtain a high-quality 
education and reach, at a minimum, proficiency on challenging State 
academic achievement standards and state academic assessments. This 
purpose can be accomplished by--
            ``(1) ensuring that high-quality academic assessments, 
        accountability systems, teacher preparation and training, 
        curriculum, and instructional materials are aligned with 
        challenging State academic standards so that students, teachers,

[[Page 115 STAT. 1440]]

        parents, and administrators can measure progress against common 
        expectations for student academic achievement;
            ``(2) meeting the educational needs of low-achieving 
        children in our Nation's highest-poverty schools, limited 
        English proficient children, migratory children, children with 
        disabilities, Indian children, neglected or delinquent children, 
        and young children in need of reading assistance;
            ``(3) closing the achievement gap between high- and low-
        performing children, especially the achievement gaps between 
        minority and nonminority students, and between disadvantaged 
        children and their more advantaged peers;
            ``(4) holding schools, local educational agencies, and 
        States accountable for improving the academic achievement of all 
        students, and identifying and turning around low-performing 
        schools that have failed to provide a high-quality education to 
        their students, while providing alternatives to students in such 
        schools to enable the students to receive a high-quality 
        education;
            ``(5) distributing and targeting resources sufficiently to 
        make a difference to local educational agencies and schools 
        where needs are greatest;
            ``(6) improving and strengthening accountability, teaching, 
        and learning by using State assessment systems designed to 
        ensure that students are meeting challenging State academic 
        achievement and content standards and increasing achievement 
        overall, but especially for the disadvantaged;
            ``(7) providing greater decisionmaking authority and 
        flexibility to schools and teachers in exchange for greater 
        responsibility for student performance;
            ``(8) providing children an enriched and accelerated 
        educational program, including the use of schoolwide programs or 
        additional services that increase the amount and quality of 
        instructional time;
            ``(9) promoting schoolwide reform and ensuring the access of 
        children to effective, scientifically based instructional 
        strategies and challenging academic content;
            ``(10) significantly elevating the quality of instruction by 
        providing staff in participating schools with substantial 
        opportunities for professional development;
            ``(11) coordinating services under all parts of this title 
        with each other, with other educational services, and, to the 
        extent feasible, with other agencies providing services to 
        youth, children, and families; and
            ``(12) affording parents substantial and meaningful 
        opportunities to participate in the education of their children.

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6302.>> 

    ``(a) Local Educational Agency Grants.--For the purpose of carrying 
out part A, there are authorized to be appropriated--
            ``(1) $13,500,000,000 for fiscal year 2002;
            ``(2) $16,000,000,000 for fiscal year 2003;
            ``(3) $18,500,000,000 for fiscal year 2004;
            ``(4) $20,500,000,000 for fiscal year 2005;
            ``(5) $22,750,000,000 for fiscal year 2006; and
            ``(6) $25,000,000,000 for fiscal year 2007.

    ``(b) Reading First.--

[[Page 115 STAT. 1441]]

            ``(1) Reading first.--For the purpose of carrying out 
        subpart 1 of part B, there are authorized to be appropriated 
        $900,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 5 succeeding fiscal years.
            ``(2) Early reading first.--For the purpose of carrying out 
        subpart 2 of part B, there are authorized to be appropriated 
        $75,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 5 succeeding fiscal years.
            ``(3) Even start.--For the purpose of carrying out subpart 3 
        of part B, there are authorized to be appropriated $260,000,000 
        for fiscal year 2002 and such sums as may be necessary for each 
        of the 5 succeeding fiscal years.
            ``(4) Improving literacy through school libraries.--For the 
        purpose of carrying out subpart 4 of part B, there are 
        authorized to be appropriated $250,000,000 for fiscal year 2002 
        and such sums as may be necessary for each of the 5 succeeding 
        fiscal years.

    ``(c) Education of Migratory Children.--For the purpose of carrying 
out part C, there are authorized to be appropriated $410,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 5 
succeeding fiscal years.
    ``(d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk.--For the purpose of carrying out part 
D, there are authorized to be appropriated $50,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.
    ``(e) Federal Activities.--
            ``(1) Sections 1501 and 1502.--For the purpose of carrying 
        out sections 1501 and 1502, there are authorized to be 
        appropriated such sums as may be necessary for fiscal year 2002 
        and each of the 5 succeeding fiscal years.
            ``(2) Section 1504.--
                    ``(A) In general.--For the purpose of carrying out 
                section 1504, there are authorized to be appropriated 
                such sums as may be necessary for fiscal year 2002 and 
                for each of the 5 succeeding fiscal years.
                    ``(B) Special rule.--Of the funds appropriated 
                pursuant to subparagraph (A), not more than 30 percent 
                may be used for teachers associated with students 
                participating in the programs described in subsections 
                (a)(1), (b)(1), and (c)(1).

    ``(f) Comprehensive School Reform.--For the purpose of carrying out 
part F, there are authorized to be appropriated such sums as may be 
necessary for fiscal year 2002 and each of the 5 succeeding fiscal 
years.
    ``(g) Advanced Placement.--For the purposes of carrying out part G, 
there are authorized to be appropriated such sums for fiscal year 2002 
and each 5 succeeding fiscal year.
    ``(h) School Dropout Prevention.--For the purpose of carrying out 
part H, there are authorized to be appropriated $125,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 5 succeeding 
fiscal years, of which--
            ``(1) up to 10 percent shall be available to carry out 
        subpart 1 of part H for each fiscal year; and
            ``(2) the remainder shall be available to carry out subpart 
        2 of part H for each fiscal year.

[[Page 115 STAT. 1442]]

    ``(i) School Improvement.--For the purpose of carrying out section 
1003(g), there are authorized to be appropriated $500,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.

``SEC. 1003. <<NOTE: 20 USC 6303.>>  SCHOOL IMPROVEMENT.

    ``(a) State Reservations.--Each State shall reserve 2 percent of the 
amount the State receives under subpart 2 of part A for fiscal years 
2002 and 2003, and 4 percent of the amount received under such subpart 
for fiscal years 2004 through 2007, to carry out subsection (b) and to 
carry out the State's responsibilities under sections 1116 and 1117, 
including carrying out the State educational agency's statewide system 
of technical assistance and support for local educational agencies.
    ``(b) Uses.--Of the amount reserved under subsection (a) for any 
fiscal year, the State educational agency--
            ``(1) shall allocate not less than 95 percent of that amount 
        directly to local educational agencies for schools identified 
        for school improvement, corrective action, and restructuring, 
        for activities under section 1116(b); or
            ``(2) may, with the approval of the local educational 
        agency, directly provide for these activities or arrange for 
        their provision through other entities such as school support 
        teams or educational service agencies.

    ``(c) Priority.--The State educational agency, in allocating funds 
to local educational agencies under this section, shall give priority to 
local educational agencies that--
            ``(1) serve the lowest-achieving schools;
            ``(2) demonstrate the greatest need for such funds; and
            ``(3) demonstrate the strongest commitment to ensuring that 
        such funds are used to enable the lowest-achieving schools to 
        meet the progress goals in school improvement plans under 
        section 1116 (b)(3)(A)(v).

    ``(d) Unused Funds.--If, after consultation with local educational 
agencies in the State, the State educational agency determines that the 
amount of funds reserved to carry out subsection (b) is greater than the 
amount needed to provide the assistance described in that subsection, 
the State educational agency shall allocate the excess amount to local 
educational agencies in accordance with--
            ``(1) the relative allocations the State educational agency 
        made to those agencies for that fiscal year under subpart 2 of 
        part A; or
            ``(2) section 1126(c).

    ``(e) Special Rule.--Notwithstanding any other provision of this 
section, the amount of funds reserved by the State educational agency 
under subsection (a) in any fiscal year shall not decrease the amount of 
funds each local educational agency receives under subpart 2 below the 
amount received by such local educational agency under such subpart for 
the preceding fiscal year.
    ``(f) <<NOTE: Public information. Records.>>  Reporting.--The State 
educational agency shall make publicly available a list of those schools 
that have received funds or services pursuant to subsection (b) and the 
percentage of students from each school from families with incomes below 
the poverty line.

    ``(g) Assistance for Local School Improvement.--

[[Page 115 STAT. 1443]]

            ``(1) Program authorized.--The Secretary shall award grants 
        to States to enable the States to provide subgrants to local 
        educational agencies for the purpose of providing assistance for 
        school improvement consistent with section 1116.
            ``(2) State allotments.--Such grants shall be allotted among 
        States, the Bureau of Indian Affairs, and the outlying areas, in 
        proportion to the funds received by the States, the Bureau of 
        Indian Affairs, and the outlying areas, respectively, for the 
        fiscal year under parts A, C, and D of this title. The Secretary 
        shall expeditiously allot a portion of such funds to States for 
        the purpose of assisting local educational agencies and schools 
        that were in school improvement status on the date preceding the 
        date of enactment of the No Child Left Behind Act of 2001.
            ``(3) Reallocations.--If a State does not receive funds 
        under this subsection, the Secretary shall reallocate such funds 
        to other States in the same proportion funds are allocated under 
        paragraph (2).
            ``(4) State applications.--Each State educational agency 
        that desires to receive funds under this subsection shall submit 
        an application to the Secretary at such time, and containing 
        such information, as the Secretary shall reasonably require, 
        except that such requirement shall be waived if a State 
        educational agency submitted such information as part of its 
        State plan under this part. Each State application shall 
        describe how the State educational agency will allocate such 
        funds in order to assist the State educational agency and local 
        educational agencies in complying with school improvement, 
        corrective action, and restructuring requirements of section 
        1116.
            ``(5) Local educational agency grants.--A grant to a local 
        educational agency under this subsection shall be--
                    ``(A) of sufficient size and scope to support the 
                activities required under sections 1116 and 1117, but 
                not less than $50,000 and not more than $500,000 for 
                each participating school;
                    ``(B) integrated with other funds awarded by the 
                State under this Act; and
                    ``(C) renewable for two additional 1-year periods if 
                schools are meeting the goals in their school 
                improvement plans developed under section 1116.
            ``(6) Priority.--The State, in awarding such grants, shall 
        give priority to local educational agencies with the lowest-
        achieving schools that demonstrate--
                    ``(A) the greatest need for such funds; and
                    ``(B) the strongest commitment to ensuring that such 
                funds are used to provide adequate resources to enable 
                the lowest-achieving schools to meet the goals under 
                school and local educational agency improvement, 
                corrective action, and restructuring plans under section 
                1116.
            ``(7) Allocation.--A State educational agency that receives 
        a grant under this subsection shall allocate at least 95 percent 
        of the grant funds directly to local educational agencies for 
        schools identified for school improvement, corrective action, or 
        restructuring to carry out activities under section 1116(b), or 
        may, with the approval of the local educational agency, directly 
        provide for these activities or arrange for their provision

[[Page 115 STAT. 1444]]

        through other entities such as school support teams or 
        educational service agencies.
            ``(8) Administrative costs.--A State educational agency that 
        receives a grant award under this subsection may reserve not 
        more than 5 percent of such grant funds for administration, 
        evaluation, and technical assistance expenses.
            ``(9) Local awards.--Each local educational agency that 
        applies for assistance under this subsection shall describe how 
        it will provide the lowest-achieving schools the resources 
        necessary to meet goals under school and local educational 
        agency improvement, corrective action, and restructuring plans 
        under section 1116.

``SEC. 1004. STATE ADMINISTRATION. <<NOTE: 20 USC 6304.>> 

    ``(a) In General.--Except as provided in subsection (b), to carry 
out administrative duties assigned under parts A, C, and D of this 
title, each State may reserve the greater of--
            ``(1) 1 percent of the amounts received under such parts; or
            ``(2) $400,000 ($50,000 in the case of each outlying area).

    ``(b) Exception.--If the sum of the amounts appropriated for parts 
A, C, and D of this title is equal to or greater than $14,000,000,000, 
then the reservation described in subsection (a)(1) shall not exceed 1 
percent of the amount the State would receive, if $14,000,000,000 were 
allocated among the States for parts A, C, and D of this title.

    ``PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL 
                                AGENCIES

                 ``Subpart 1--Basic Program Requirements

``SEC. 1111. STATE PLANS. <<NOTE: 20 USC 6311.>> 

    ``(a) Plans Required.--
            ``(1) In general.--For any State desiring to receive a grant 
        under this part, the State educational agency shall submit to 
        the Secretary a plan, developed by the State educational agency, 
        in consultation with local educational agencies, teachers, 
        principals, pupil services personnel, administrators (including 
        administrators of programs described in other parts of this 
        title), other staff, and parents, that satisfies the 
        requirements of this section and that is coordinated with other 
        programs under this Act, the Individuals with Disabilities 
        Education Act, the Carl D. Perkins Vocational and Technical 
        Education Act of 1998, the Head Start Act, the Adult Education 
        and Family Literacy Act, and the McKinney-Vento Homeless 
        Assistance Act.
            ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 9302.

    ``(b) Academic Standards, Academic Assessments, and 
Accountability.--
            ``(1) Challenging academic standards.--
                    ``(A) In general.--Each State plan shall demonstrate 
                that the State has adopted challenging academic content 
                standards and challenging student academic achievement

[[Page 115 STAT. 1445]]

                standards that will be used by the State, its local 
                educational agencies, and its schools to carry out this 
                part, except that a State shall not be required to 
                submit such standards to the Secretary.
                    ``(B) Same standards.--The academic standards 
                required by subparagraph (A) shall be the same academic 
                standards that the State applies to all schools and 
                children in the State.
                    ``(C) Subjects.--The State shall have such academic 
                standards for all public elementary school and secondary 
                school children, including children served under this 
                part, in subjects determined by the State, but including 
                at least mathematics, reading or language arts, and 
                (beginning in the 2005-2006 school year) science, which 
                shall include the same knowledge, skills, and levels of 
                achievement expected of all children.
                    ``(D) Challenging academic standards.--Standards 
                under this paragraph shall include--
                          ``(i) challenging academic content standards 
                      in academic subjects that--
                                    ``(I) specify what children are 
                                expected to know and be able to do;
                                    ``(II) contain coherent and rigorous 
                                content; and
                                    ``(III) encourage the teaching of 
                                advanced skills; and
                          ``(ii) challenging student academic 
                      achievement standards that--
                                    ``(I) are aligned with the State's 
                                academic content standards;
                                    ``(II) describe two levels of high 
                                achievement (proficient and advanced) 
                                that determine how well children are 
                                mastering the material in the State 
                                academic content standards; and
                                    ``(III) describe a third level of 
                                achievement (basic) to provide complete 
                                information about the progress of the 
                                lower-achieving children toward 
                                mastering the proficient and advanced 
                                levels of achievement.
                    ``(E) Information.--For the subjects in which 
                students will be served under this part, but for which a 
                State is not required by subparagraphs (A), (B), and (C) 
                to develop, and has not otherwise developed, such 
                academic standards, the State plan shall describe a 
                strategy for ensuring that students are taught the same 
                knowledge and skills in such subjects and held to the 
                same expectations as are all children.
                    ``(F) Existing standards.--Nothing in this part 
                shall prohibit a State from revising, consistent with 
                this section, any standard adopted under this part 
                before or after the date of enactment of the No Child 
                Left Behind Act of 2001.
            ``(2) Accountability.--
                    ``(A) In general.--Each State plan shall demonstrate 
                that the State has developed and is implementing a 
                single, statewide State accountability system that will 
                be effective in ensuring that all local educational 
                agencies, public

[[Page 115 STAT. 1446]]

                elementary schools, and public secondary schools make 
                adequate yearly progress as defined under this 
                paragraph. Each State accountability system shall--
                          ``(i) be based on the academic standards and 
                      academic assessments adopted under paragraphs (1) 
                      and (3), and other academic indicators consistent 
                      with subparagraph (C)(vi) and (vii), and shall 
                      take into account the achievement of all public 
                      elementary school and secondary school students;
                          ``(ii) be the same accountability system the 
                      State uses for all public elementary schools and 
                      secondary schools or all local educational 
                      agencies in the State, except that public 
                      elementary schools, secondary schools, and local 
                      educational agencies not participating under this 
                      part are not subject to the requirements of 
                      section 1116; and
                          ``(iii) include sanctions and rewards, such as 
                      bonuses and recognition, the State will use to 
                      hold local educational agencies and public 
                      elementary schools and secondary schools 
                      accountable for student achievement and for 
                      ensuring that they make adequate yearly progress 
                      in accordance with the State's definition under 
                      subparagraphs (B) and (C).
                    ``(B) Adequate yearly progress.--Each State plan 
                shall demonstrate, based on academic assessments 
                described in paragraph (3), and in accordance with this 
                paragraph, what constitutes adequate yearly progress of 
                the State, and of all public elementary schools, 
                secondary schools, and local educational agencies in the 
                State, toward enabling all public elementary school and 
                secondary school students to meet the State's student 
                academic achievement standards, while working toward the 
                goal of narrowing the achievement gaps in the State, 
                local educational agencies, and schools.
                    ``(C) Definition.--`Adequate yearly progress' shall 
                be defined by the State in a manner that--
                          ``(i) applies the same high standards of 
                      academic achievement to all public elementary 
                      school and secondary school students in the State;
                          ``(ii) is statistically valid and reliable;
                          ``(iii) results in continuous and substantial 
                      academic improvement for all students;
                          ``(iv) measures the progress of public 
                      elementary schools, secondary schools and local 
                      educational agencies and the State based primarily 
                      on the academic assessments described in paragraph 
                      (3);
                          ``(v) includes separate measurable annual 
                      objectives for continuous and substantial 
                      improvement for each of the following:
                                    ``(I) The achievement of all public 
                                elementary school and secondary school 
                                students.
                                    ``(II) The achievement of--
                                            ``(aa) economically 
                                        disadvantaged students;
                                            ``(bb) students from major 
                                        racial and ethnic groups;
                                            ``(cc) students with 
                                        disabilities; and

[[Page 115 STAT. 1447]]

                                            ``(dd) students with limited 
                                        English proficiency;
                                except that disaggregation of data under 
                                subclause (II) shall not be required in 
                                a case in which the number of students 
                                in a category is insufficient to yield 
                                statistically reliable information or 
                                the results would reveal personally 
                                identifiable information about an 
                                individual student;
                          ``(vi) in accordance with subparagraph (D), 
                      includes graduation rates for public secondary 
                      school students (defined as the percentage of 
                      students who graduate from secondary school with a 
                      regular diploma in the standard number of years) 
                      and at least one other academic indicator, as 
                      determined by the State for all public elementary 
                      school students; and
                          ``(vii) in accordance with subparagraph (D), 
                      at the State's discretion, may also include other 
                      academic indicators, as determined by the State 
                      for all public school students, measured 
                      separately for each group described in clause (v), 
                      such as achievement on additional State or locally 
                      administered assessments, decreases in grade-to-
                      grade retention rates, attendance rates, and 
                      changes in the percentages of students completing 
                      gifted and talented, advanced placement, and 
                      college preparatory courses.
                    ``(D) Requirements for other indicators.--In 
                carrying out subparagraph (C)(vi) and (vii), the State--
                          ``(i) shall ensure that the indicators 
                      described in those provisions are valid and 
                      reliable, and are consistent with relevant, 
                      nationally recognized professional and technical 
                      standards, if any; and
                          ``(ii) except as provided in subparagraph 
                      (I)(i), may not use those indicators to reduce the 
                      number of, or change, the schools that would 
                      otherwise be subject to school improvement, 
                      corrective action, or restructuring under section 
                      1116 if those additional indicators were not used, 
                      but may use them to identify additional schools 
                      for school improvement or in need of corrective 
                      action or restructuring.
                    ``(E) Starting point.--Each State, using data for 
                the 2001-2002 school year, shall establish the starting 
                point for measuring, under subparagraphs (G) and (H), 
                the percentage of students meeting or exceeding the 
                State's proficient level of academic achievement on the 
                State assessments under paragraph (3) and pursuant to 
                the timeline described in subparagraph (F). The starting 
                point shall be, at a minimum, based on the higher of the 
                percentage of students at the proficient level who are 
                in--
                          ``(i) the State's lowest achieving group of 
                      students described in subparagraph (C)(v)(II); or
                          ``(ii) the school at the 20th percentile in 
                      the State, based on enrollment, among all schools 
                      ranked by the percentage of students at the 
                      proficient level.
                    ``(F) Timeline.--Each State shall establish a 
                timeline for adequate yearly progress. The timeline 
                shall ensure that not later than 12 years after the end 
                of the 2001-2002 school year, all students in each group 
                described

[[Page 115 STAT. 1448]]

                in subparagraph (C)(v) will meet or exceed the State's 
                proficient level of academic achievement on the State 
                assessments under paragraph (3).
                    ``(G) Measurable objectives.--Each State shall 
                establish statewide annual measurable objectives, 
                pursuant to subparagraph (C)(v), for meeting the 
                requirements of this paragraph, and which--
                          ``(i) shall be set separately for the 
                      assessments of mathematics and reading or language 
                      arts under subsection (a)(3);
                          ``(ii) shall be the same for all schools and 
                      local educational agencies in the State;
                          ``(iii) shall identify a single minimum 
                      percentage of students who are required to meet or 
                      exceed the proficient level on the academic 
                      assessments that applies separately to each group 
                      of students described in subparagraph (C)(v);
                          ``(iv) shall ensure that all students will 
                      meet or exceed the State's proficient level of 
                      academic achievement on the State assessments 
                      within the State's timeline under subparagraph 
                      (F); and
                          ``(v) may be the same for more than 1 year, 
                      subject to the requirements of subparagraph (H).
                    ``(H) Intermediate goals for annual yearly 
                progress.--Each State shall establish intermediate goals 
                for meeting the requirements, including the measurable 
                objectives in subparagraph (G), of this paragraph and 
                that shall--
                          ``(i) increase in equal increments over the 
                      period covered by the State's timeline under 
                      subparagraph (F);
                          ``(ii) provide for the first increase to occur 
                      in not more than 2 years; and
                          ``(iii) provide for each following increase to 
                      occur in not more than 3 years.
                    ``(I) Annual improvement for schools.--Each year, 
                for a school to make adequate yearly progress under this 
                paragraph--
                          ``(i) each group of students described in 
                      subparagraph (C)(v) must meet or exceed the 
                      objectives set by the State under subparagraph 
                      (G), except that if any group described in 
                      subparagraph (C)(v) does not meet those objectives 
                      in any particular year, the school shall be 
                      considered to have made adequate yearly progress 
                      if the percentage of students in that group who 
                      did not meet or exceed the proficient level of 
                      academic achievement on the State assessments 
                      under paragraph (3) for that year decreased by 10 
                      percent of that percentage from the preceding 
                      school year and that group made progress on one or 
                      more of the academic indicators described in 
                      subparagraph (C)(vi) or (vii); and
                          ``(ii) not less than 95 percent of each group 
                      of students described in subparagraph (C)(v) who 
                      are enrolled in the school are required to take 
                      the assessments, consistent with paragraph 
                      (3)(C)(xi) and with

[[Page 115 STAT. 1449]]

                      accommodations, guidelines, and alternative 
                      assessments provided in the same manner as those 
                      provided under section 612(a)(17)(A) of the 
                      Individuals with Disabilities Education Act and 
                      paragraph (3), on which adequate yearly progress 
                      is based (except that the 95 percent requirement 
                      described in this clause shall not apply in a case 
                      in which the number of students in a category is 
                      insufficient to yield statistically reliable 
                      information or the results would reveal personally 
                      identifiable information about an individual 
                      student).
                    ``(J) Uniform averaging procedure.--For the purpose 
                of determining whether schools are making adequate 
                yearly progress, the State may establish a uniform 
                procedure for averaging data which includes one or more 
                of the following:
                          ``(i) The State may average data from the 
                      school year for which the determination is made 
                      with data from one or two school years immediately 
                      preceding that school year.
                          ``(ii) Until the assessments described in 
                      paragraph (3) are administered in such manner and 
                      time to allow for the implementation of the 
                      uniform procedure for averaging data described in 
                      clause (i), the State may use the academic 
                      assessments that were required under paragraph (3) 
                      as that paragraph was in effect on the day 
                      preceding the date of enactment of the No Child 
                      Left Behind Act of 2001, provided that nothing in 
                      this clause shall be construed to undermine or 
                      delay the determination of adequate yearly 
                      progress, the requirements of section 1116, or the 
                      implementation of assessments under this section.
                          ``(iii) The State may use data across grades 
                      in a school.
                    ``(K) Accountability for charter schools.--The 
                accountability provisions under this Act shall be 
                overseen for charter schools in accordance with State 
                charter school law.
            ``(3) Academic assessments.--
                    ``(A) In general.--Each State plan shall demonstrate 
                that the State educational agency, in consultation with 
                local educational agencies, has implemented a set of 
                high-quality, yearly student academic assessments that 
                include, at a minimum, academic assessments in 
                mathematics, reading or language arts, and science that 
                will be used as the primary means of determining the 
                yearly performance of the State and of each local 
                educational agency and school in the State in enabling 
                all children to meet the State's challenging student 
                academic achievement standards, except that no State 
                shall be required to meet the requirements of this part 
                relating to science assessments until the beginning of 
                the 2007-2008 school year.
                    ``(B) Use of assessments.--Each State educational 
                agency may incorporate the data from the assessments 
                under this paragraph into a State-developed longitudinal 
                data system that links student test scores, length of 
                enrollment, and graduation records over time.
                    ``(C) Requirements.--Such assessments shall--

[[Page 115 STAT. 1450]]

                          ``(i) be the same academic assessments used to 
                      measure the achievement of all children;
                          ``(ii) be aligned with the State's challenging 
                      academic content and student academic achievement 
                      standards, and provide coherent information about 
                      student attainment of such standards;
                          ``(iii) be used for purposes for which such 
                      assessments are valid and reliable, and be 
                      consistent with relevant, nationally recognized 
                      professional and technical standards;
                          ``(iv) be used only if the State educational 
                      agency provides to the Secretary evidence from the 
                      test publisher or other relevant sources that the 
                      assessments used are of adequate technical quality 
                      for each purpose required under this Act and are 
                      consistent with the requirements of this section, 
                      and such evidence is made public by the Secretary 
                      upon request;
                          ``(v)(I) except as otherwise provided for 
                      grades 3 through 8 under clause vii, measure the 
                      proficiency of students in, at a minimum, 
                      mathematics and reading or language arts, and be 
                      administered not less than once during--
                                    ``(aa) grades 3 through 5;
                                    ``(bb) grades 6 through 9; and
                                    ``(cc) grades 10 through 12;
                          ``(II) beginning not later than school year 
                      2007-2008, measure the proficiency of all students 
                      in science and be administered not less than one 
                      time during--
                                    ``(aa) grades 3 through 5;
                                    ``(bb) grades 6 through 9; and
                                    ``(cc) grades 10 through 12;
                          ``(vi) involve multiple up-to-date measures of 
                      student academic achievement, including measures 
                      that assess higher-order thinking skills and 
                      understanding;
                          ``(vii) <<NOTE: Deadline.>>  beginning not 
                      later than school year 2005-2006, measure the 
                      achievement of students against the challenging 
                      State academic content and student academic 
                      achievement standards in each of grades 3 through 
                      8 in, at a minimum, mathematics, and reading or 
                      language arts, except that the Secretary may 
                      provide the State 1 additional year if the State 
                      demonstrates that exceptional or uncontrollable 
                      circumstances, such as a natural disaster or a 
                      precipitous and unforeseen decline in the 
                      financial resources of the State, prevented full 
                      implementation of the academic assessments by that 
                      deadline and that the State will complete 
                      implementation within the additional 1-year 
                      period;
                          ``(viii) at the discretion of the State, 
                      measure the proficiency of students in academic 
                      subjects not described in clauses (v), (vi), (vii) 
                      in which the State has adopted challenging 
                      academic content and academic achievement 
                      standards;
                          ``(ix) provide for--
                                    ``(I) the participation in such 
                                assessments of all students;
                                    ``(II) the reasonable adaptations 
                                and accommodations for students with 
                                disabilities (as defined

[[Page 115 STAT. 1451]]

                                under section 602(3) of the Individuals 
                                with Disabilities Education Act) 
                                necessary to measure the academic 
                                achievement of such students relative to 
                                State academic content and State student 
                                academic achievement standards; and
                                    ``(III) the inclusion of limited 
                                English proficient students, who shall 
                                be assessed in a valid and reliable 
                                manner and provided reasonable 
                                accommodations on assessments 
                                administered to such students under this 
                                paragraph, including, to the extent 
                                practicable, assessments in the language 
                                and form most likely to yield accurate 
                                data on what such students know and can 
                                do in academic content areas, until such 
                                students have achieved English language 
                                proficiency as determined under 
                                paragraph (7);
                          ``(x) notwithstanding subclause (III), the 
                      academic assessment (using tests written in 
                      English) of reading or language arts of any 
                      student who has attended school in the United 
                      States (not including Puerto Rico) for three or 
                      more consecutive school years, except that if the 
                      local educational agency determines, on a case-by-
                      case individual basis, that academic assessments 
                      in another language or form would likely yield 
                      more accurate and reliable information on what 
                      such student knows and can do, the local 
                      educational agency may make a determination to 
                      assess such student in the appropriate language 
                      other than English for a period that does not 
                      exceed two additional consecutive years, provided 
                      that such student has not yet reached a level of 
                      English language proficiency sufficient to yield 
                      valid and reliable information on what such 
                      student knows and can do on tests (written in 
                      English) of reading or language arts;
                          ``(xi) include students who have attended 
                      schools in a local educational agency for a full 
                      academic year but have not attended a single 
                      school for a full academic year, except that the 
                      performance of students who have attended more 
                      than 1 school in the local educational agency in 
                      any academic year shall be used only in 
                      determining the progress of the local educational 
                      agency;
                          ``(xii) produce individual student 
                      interpretive, descriptive, and diagnostic reports, 
                      consistent with clause (iii) that allow parents, 
                      teachers, and principals to understand and address 
                      the specific academic needs of students, and 
                      include information regarding achievement on 
                      academic assessments aligned with State academic 
                      achievement standards, and that are provided to 
                      parents, teachers, and principals, as soon as is 
                      practicably possible after the assessment is 
                      given, in an understandable and uniform format, 
                      and to the extent practicable, in a language that 
                      parents can understand;
                          ``(xiii) enable results to be disaggregated 
                      within each State, local educational agency, and 
                      school by gender, by each major racial and ethnic 
                      group, by

[[Page 115 STAT. 1452]]

                      English proficiency status, by migrant status, by 
                      students with disabilities as compared to 
                      nondisabled students, and by economically 
                      disadvantaged students as compared to students who 
                      are not economically disadvantaged, except that, 
                      in the case of a local educational agency or a 
                      school, such disaggregation shall not be required 
                      in a case in which the number of students in a 
                      category is insufficient to yield statistically 
                      reliable information or the results would reveal 
                      personally identifiable information about an 
                      individual student;
                          ``(xiv) be consistent with widely accepted 
                      professional testing standards, objectively 
                      measure academic achievement, knowledge, and 
                      skills, and be tests that do not evaluate or 
                      assess personal or family beliefs and attitudes, 
                      or publicly disclose personally identifiable 
                      information; and
                          ``(xv) enable itemized score analyses to be 
                      produced and reported, consistent with clause 
                      (iii), to local educational agencies and schools, 
                      so that parents, teachers, principals, and 
                      administrators can interpret and address the 
                      specific academic needs of students as indicated 
                      by the students' achievement on assessment items.
                    ``(D) Deferral.--A State may defer the commencement, 
                or suspend the administration, but not cease the 
                development, of the assessments described in this 
                paragraph, that were not required prior to the date of 
                enactment of the No Child Left Behind Act of 2001, for 1 
                year for each year for which the amount appropriated for 
                grants under section 6113(a)(2) is less than--
                          ``(i) $370,000,000 for fiscal year 2002;
                          ``(ii) $380,000,000 for fiscal year 2003;
                          ``(iii) $390,000,000 for fiscal year 2004; and
                          ``(iv) $400,000,000 for fiscal years 2005 
                      through 2007.
            ``(4) Special rule.--Academic assessment measures in 
        addition to those in paragraph (3) that do not meet the 
        requirements of such paragraph may be included in the assessment 
        under paragraph (3) as additional measures, but may not be used 
        in lieu of the academic assessments required under paragraph 
        (3). Such additional assessment measures may not be used to 
        reduce the number of or change, the schools that would otherwise 
        be subject to school improvement, corrective action, or 
        restructuring under section 1116 if such additional indicators 
        were not used, but may be used to identify additional schools 
        for school improvement or in need of corrective action or 
        restructuring except as provided in paragraph (2)(I)(i).
            ``(5) State authority.--If a State educational agency 
        provides evidence, which is satisfactory to the Secretary, that 
        neither the State educational agency nor any other State 
        government official, agency, or entity has sufficient authority, 
        under State law, to adopt curriculum content and student 
        academic achievement standards, and academic assessments aligned 
        with such academic standards, which will be applicable to all 
        students enrolled in the State's public elementary schools

[[Page 115 STAT. 1453]]

        and secondary schools, then the State educational agency may 
        meet the requirements of this subsection by--
                    ``(A) adopting academic standards and academic 
                assessments that meet the requirements of this 
                subsection, on a statewide basis, and limiting their 
                applicability to students served under this part; or
                    ``(B) adopting and implementing policies that ensure 
                that each local educational agency in the State that 
                receives grants under this part will adopt curriculum 
                content and student academic achievement standards, and 
                academic assessments aligned with such standards, 
                which--
                          ``(i) meet all of the criteria in this 
                      subsection and any regulations regarding such 
                      standards and assessments that the Secretary may 
                      publish; and
                          ``(ii) are applicable to all students served 
                      by each such local educational agency.
            ``(6) Language assessments.--Each State plan shall identify 
        the languages other than English that are present in the 
        participating student population and indicate the languages for 
        which yearly student academic assessments are not available and 
        are needed. The State shall make every effort to develop such 
        assessments and may request assistance from the Secretary if 
        linguistically accessible academic assessment measures are 
        needed. Upon request, the Secretary shall assist with the 
        identification of appropriate academic assessment measures in 
        the needed languages, but shall not mandate a specific academic 
        assessment or mode of instruction.
            ``(7) Academic assessments of english language 
        proficiency. <<NOTE: Deadline.>> --Each State plan shall 
        demonstrate that local educational agencies in the State will, 
        beginning not later than school year 2002-2003, provide for an 
        annual assessment of English proficiency (measuring students' 
        oral language, reading, and writing skills in English) of all 
        students with limited English proficiency in the schools served 
        by the State educational agency, except that the Secretary may 
        provide the State 1 additional year if the State demonstrates 
        that exceptional or uncontrollable circumstances, such as a 
        natural disaster or a precipitous and unforeseen decline in the 
        financial resources of the State, prevented full implementation 
        of this paragraph by that deadline and that the State will 
        complete implementation within the additional 1-year period.
            ``(8) Requirement.--Each State plan shall describe--
                    ``(A) how the State educational agency will assist 
                each local educational agency and school affected by the 
                State plan to develop the capacity to comply with each 
                of the requirements of sections 1112(c)(1)(D), 1114(b), 
                and 1115(c) that is applicable to such agency or school;
                    ``(B) how the State educational agency will assist 
                each local educational agency and school affected by the 
                State plan to provide additional educational assistance 
                to individual students assessed as needing help to 
                achieve the State's challenging academic achievement 
                standards;
                    ``(C) the specific steps the State educational 
                agency will take to ensure that both schoolwide programs 
                and targeted assistance schools provide instruction by 
                highly qualified instructional staff as required by 
                sections 1114(b)(1)(C) and 1115(c)(1)(E), including 
                steps that the

[[Page 115 STAT. 1454]]

                State educational agency will take to ensure that poor 
                and minority children are not taught at higher rates 
                than other children by inexperienced, unqualified, or 
                out-of-field teachers, and the measures that the State 
                educational agency will use to evaluate and publicly 
                report the progress of the State educational agency with 
                respect to such steps;
                    ``(D) an assurance that the State educational agency 
                will assist local educational agencies in developing or 
                identifying high-quality effective curricula aligned 
                with State academic achievement standards and how the 
                State educational agency will disseminate such curricula 
                to each local educational agency and school within the 
                State; and
                    ``(E) such other factors the State educational 
                agency determines appropriate to provide students an 
                opportunity to achieve the knowledge and skills 
                described in the challenging academic content standards 
                adopted by the State.
            ``(9) Factors affecting student achievement.--Each State 
        plan shall include an assurance that the State educational 
        agency will coordinate and collaborate, to the extent feasible 
        and necessary as determined by the State educational agency, 
        with agencies providing services to children, youth, and 
        families, with respect to local educational agencies within the 
        State that are identified under section 1116 and that request 
        assistance with addressing major factors that have significantly 
        affected the academic achievement of students in the local 
        educational agency or schools served by such agency.
            ``(10) Use of academic assessment results to improve student 
        academic achievement.--Each State plan shall describe how the 
        State educational agency will ensure that the results of the 
        State assessments described in paragraph (3)--
                    ``(A) will be promptly provided to local educational 
                agencies, schools, and teachers in a manner that is 
                clear and easy to understand, but not later than before 
                the beginning of the next school year; and
                    ``(B) be used by those local educational agencies, 
                schools, and teachers to improve the educational 
                achievement of individual students.

    ``(c) Other Provisions To Support Teaching and Learning.--Each State 
plan shall contain assurances that--
            ``(1) <<NOTE: Deadline.>>  the State educational agency will 
        meet the requirements of subsection (h)(1) and, beginning with 
        the 2002-2003 school year, will produce the annual State report 
        cards described in such subsection, except that the Secretary 
        may provide the State educational agency 1 additional year if 
        the State educational agency demonstrates that exceptional or 
        uncontrollable circumstances, such as a natural disaster or a 
        precipitous and unforeseen decline in the financial resources of 
        the State, prevented full implementation of this paragraph by 
        that deadline and that the State will complete implementation 
        within the additional 1-year period;
            ``(2) <<NOTE: Deadline.>>  the State will, beginning in 
        school year 2002-2003, participate in biennial State academic 
        assessments of 4th and 8th grade reading and mathematics under 
        the National Assessment of Educational Progress carried out 
        under section 411(b)(2) of the National Education Statistics Act 
        of 1994 if the Secretary pays the costs of administering such 
        assessments;

[[Page 115 STAT. 1455]]

            ``(3) the State educational agency, in consultation with the 
        Governor, will include, as a component of the State plan, a plan 
        to carry out the responsibilities of the State under sections 
        1116 and 1117, including carrying out the State educational 
        agency's statewide system of technical assistance and support 
        for local educational agencies;
            ``(4) the State educational agency will work with other 
        agencies, including educational service agencies or other local 
        consortia, and institutions to provide technical assistance to 
        local educational agencies and schools, including technical 
        assistance in providing professional development under section 
        1119, technical assistance under section 1117, and technical 
        assistance relating to parental involvement under section 1118;
            ``(5)(A) where educational service agencies exist, the State 
        educational agency will consider providing professional 
        development and technical assistance through such agencies; and
            ``(B) where educational service agencies do not exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through other cooperative 
        agreements such as through a consortium of local educational 
        agencies;
            ``(6) <<NOTE: Notification.>>  the State educational agency 
        will notify local educational agencies and the public of the 
        content and student academic achievement standards and academic 
        assessments developed under this section, and of the authority 
        to operate schoolwide programs, and will fulfill the State 
        educational agency's responsibilities regarding local 
        educational agency improvement and school improvement under 
        section 1116, including such corrective actions as are 
        necessary;
            ``(7) the State educational agency will provide the least 
        restrictive and burdensome regulations for local educational 
        agencies and individual schools participating in a program 
        assisted under this part;
            ``(8) the State educational agency will inform the Secretary 
        and the public of how Federal laws, if at all, hinder the 
        ability of States to hold local educational agencies and schools 
        accountable for student academic achievement;
            ``(9) the State educational agency will encourage schools to 
        consolidate funds from other Federal, State, and local sources 
        for schoolwide reform in schoolwide programs under section 1114;
            ``(10) the State educational agency will modify or eliminate 
        State fiscal and accounting barriers so that schools can easily 
        consolidate funds from other Federal, State, and local sources 
        for schoolwide programs under section 1114;
            ``(11) the State educational agency has involved the 
        committee of practitioners established under section 1903(b) in 
        developing the plan and monitoring its implementation;
            ``(12) the State educational agency will inform local 
        educational agencies in the State of the local educational 
        agency's authority to transfer funds under title VI, to obtain 
        waivers under part D of title IX, and, if the State is an Ed-
        Flex Partnership State, to obtain waivers under the Education 
        Flexibility Partnership Act of 1999;
            ``(13) the State educational agency will coordinate 
        activities funded under this part with other Federal activities 
        as appropriate; and

[[Page 115 STAT. 1456]]

            ``(14) the State educational agency will encourage local 
        educational agencies and individual schools participating in a 
        program assisted under this part to offer family literacy 
        services (using funds under this part), if the agency or school 
        determines that a substantial number of students served under 
        this part by the agency or school have parents who do not have a 
        secondary school diploma or its recognized equivalent or who 
        have low levels of literacy.

    ``(d) Parental Involvement.--Each State plan shall describe how the 
State educational agency will support the collection and dissemination 
to local educational agencies and schools of effective parental 
involvement practices. Such practices shall--
            ``(1) be based on the most current research that meets the 
        highest professional and technical standards, on effective 
        parental involvement that fosters achievement to high standards 
        for all children; and
            ``(2) be geared toward lowering barriers to greater 
        participation by parents in school planning, review, and 
        improvement experienced.

    ``(e) Peer Review and Secretarial Approval.--
            ``(1) Secretarial duties.--The Secretary shall--
                    ``(A) <<NOTE: Establishment.>>  establish a peer-
                review process to assist in the review of State plans;
                    ``(B) appoint individuals to the peer-review process 
                who are representative of parents, teachers, State 
                educational agencies, and local educational agencies, 
                and who are familiar with educational standards, 
                assessments, accountability, the needs of low-performing 
                schools, and other educational needs of students;
                    ``(C) <<NOTE: Deadline.>>  approve a State plan 
                within 120 days of its submission unless the Secretary 
                determines that the plan does not meet the requirements 
                of this section;
                    ``(D) if the Secretary determines that the State 
                plan does not meet the requirements of subsection (a), 
                (b), or (c), immediately notify the State of such 
                determination and the reasons for such determination;
                    ``(E) not decline to approve a State's plan before--
                          ``(i) offering the State an opportunity to 
                      revise its plan;
                          ``(ii) providing technical assistance in order 
                      to assist the State to meet the requirements of 
                      subsections (a), (b), and (c); and
                          ``(iii) providing a hearing; and
                    ``(F) have the authority to disapprove a State plan 
                for not meeting the requirements of this part, but shall 
                not have the authority to require a State, as a 
                condition of approval of the State plan, to include in, 
                or delete from, such plan one or more specific elements 
                of the State's academic content standards or to use 
                specific academic assessment instruments or items.
            ``(2) State revisions.--A State plan shall be revised by the 
        State educational agency if it is necessary to satisfy the 
        requirements of this section.

    ``(f) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this part; and

[[Page 115 STAT. 1457]]

                    ``(B) be periodically reviewed and revised as 
                necessary by the State educational agency to reflect 
                changes in the State's strategies and programs under 
                this part.
            ``(2) Additional information.--If significant changes are 
        made to a State's plan, such as the adoption of new State 
        academic content standards and State student achievement 
        standards, new academic assessments, or a new definition of 
        adequate yearly progress, such information shall be submitted to 
        the Secretary.

    ``(g) Penalties.--
            ``(1) Failure to meet deadlines enacted in 1994.--
                    ``(A) In general.--If a State fails to meet the 
                deadlines established by the Improving America's Schools 
                Act of 1994 (or under any waiver granted by the 
                Secretary or under any compliance agreement with the 
                Secretary) for demonstrating that the State has in place 
                challenging academic content standards and student 
                achievement standards, and a system for measuring and 
                monitoring adequate yearly progress, the Secretary shall 
                withhold 25 percent of the funds that would otherwise be 
                available to the State for State administration and 
                activities under this part in each year until the 
                Secretary determines that the State meets those 
                requirements.
                    ``(B) No extension.--Notwithstanding any other 
                provision of law, 90 days after the date of enactment of 
                the No Child Left Behind Act of 2001 the Secretary shall 
                not grant any additional waivers of, or enter into any 
                additional compliance agreements to extend, the 
                deadlines described in subparagraph (A) for any State.
            ``(2) Failure to meet requirements enacted in 2001.--If a 
        State fails to meet any of the requirements of this section, 
        other than the requirements described in paragraph (1), then the 
        Secretary may withhold funds for State administration under this 
        part until the Secretary determines that the State has fulfilled 
        those requirements.

    ``(h) Reports.--
            ``(1) Annual state report card.--
                    ``(A) <<NOTE: Deadline.>>  In general.--Not later 
                than the beginning of the 2002-2003 school year, unless 
                the State has received a 1-year extension pursuant to 
                subsection (c)(1), a State that receives assistance 
                under this part shall prepare and disseminate an annual 
                State report card.
                    ``(B) Implementation.--The State report card shall 
                be--
                          ``(i) concise; and
                          ``(ii) presented in an understandable and 
                      uniform format and, to the extent practicable, 
                      provided in a language that the parents can 
                      understand.
                    ``(C) Required information.--The State shall include 
                in its annual State report card--
                          ``(i) information, in the aggregate, on 
                      student achievement at each proficiency level on 
                      the State academic assessments described in 
                      subsection (b)(3) (disaggregated by race, 
                      ethnicity, gender, disability status, migrant 
                      status, English proficiency, and status as 
                      economically disadvantaged, except that such 
                      disaggregation shall not be required in a case in 
                      which

[[Page 115 STAT. 1458]]

                      the number of students in a category is 
                      insufficient to yield statistically reliable 
                      information or the results would reveal personally 
                      identifiable information about an individual 
                      student);
                          ``(ii) information that provides a comparison 
                      between the actual achievement levels of each 
                      group of students described in subsection 
                      (b)(2)(C)(v) and the State's annual measurable 
                      objectives for each such group of students on each 
                      of the academic assessments required under this 
                      part;
                          ``(iii) the percentage of students not tested 
                      (disaggregated by the same categories and subject 
                      to the same exception described in clause (i));
                          ``(iv) the most recent 2-year trend in student 
                      achievement in each subject area, and for each 
                      grade level, for which assessments under this 
                      section are required;
                          ``(v) aggregate information on any other 
                      indicators used by the State to determine the 
                      adequate yearly progress of students in achieving 
                      State academic achievement standards;
                          ``(vi) graduation rates for secondary school 
                      students consistent with subsection (b)(2)(C)(vi);
                          ``(vii) information on the performance of 
                      local educational agencies in the State regarding 
                      making adequate yearly progress, including the 
                      number and names of each school identified for 
                      school improvement under section 1116; and
                          ``(viii) the professional qualifications of 
                      teachers in the State, the percentage of such 
                      teachers teaching with emergency or provisional 
                      credentials, and the percentage of classes in the 
                      State not taught by highly qualified teachers, in 
                      the aggregate and disaggregated by high-poverty 
                      compared to low-poverty schools which, for the 
                      purpose of this clause, means schools in the top 
                      quartile of poverty and the bottom quartile of 
                      poverty in the State.
                    ``(D) Optional information.--The State may include 
                in its annual State report card such other information 
                as the State believes will best provide parents, 
                students, and other members of the public with 
                information regarding the progress of each of the 
                State's public elementary schools and public secondary 
                schools. Such information may include information 
                regarding--
                          ``(i) school attendance rates;
                          ``(ii) average class size in each grade;
                          ``(iii) academic achievement and gains in 
                      English proficiency of limited English proficient 
                      students;
                          ``(iv) the incidence of school violence, drug 
                      abuse, alcohol abuse, student suspensions, and 
                      student expulsions;
                          ``(v) the extent and type of parental 
                      involvement in the schools;
                          ``(vi) the percentage of students completing 
                      advanced placement courses, and the rate of 
                      passing of advanced placement tests; and

[[Page 115 STAT. 1459]]

                          ``(vii) a clear and concise description of the 
                      State's accountability system, including a 
                      description of the criteria by which the State 
                      evaluates school performance, and the criteria 
                      that the State has established, consistent with 
                      subsection (b)(2), to determine the status of 
                      schools regarding school improvement, corrective 
                      action, and restructuring.
            ``(2) Annual local educational agency report cards.--
                    ``(A) Report cards.--
                          ``(i) <<NOTE: Deadline.>>  In general.--Not 
                      later than the beginning of the 2002-2003 school 
                      year, a local educational agency that receives 
                      assistance under this part shall prepare and 
                      disseminate an annual local educational agency 
                      report card, except that the State educational 
                      agency may provide the local educational agency 1 
                      additional year if the local educational agency 
                      demonstrates that exceptional or uncontrollable 
                      circumstances, such as a natural disaster or a 
                      precipitous and unforeseen decline in the 
                      financial resources of the local educational 
                      agency, prevented full implementation of this 
                      paragraph by that deadline and that the local 
                      educational agency will complete implementation 
                      within the additional 1-year period.
                          ``(ii) Special rule.--If a State educational 
                      agency has received an extension pursuant to 
                      subsection (c)(1), then a local educational agency 
                      within that State shall not be required to include 
                      the information required under paragraph (1)(C) in 
                      such report card during such extension.
                    ``(B) Minimum requirements.--The State educational 
                agency shall ensure that each local educational agency 
                collects appropriate data and includes in the local 
                educational agency's annual report the information 
                described in paragraph (1)(C) as applied to the local 
                educational agency and each school served by the local 
                educational agency, and--
                          ``(i) in the case of a local educational 
                      agency--
                                    ``(I) the number and percentage of 
                                schools identified for school 
                                improvement under section 1116(c) and 
                                how long the schools have been so 
                                identified; and
                                    ``(II) information that shows how 
                                students served by the local educational 
                                agency achieved on the statewide 
                                academic assessment compared to students 
                                in the State as a whole; and
                          ``(ii) in the case of a school--
                                    ``(I) whether the school has been 
                                identified for school improvement; and
                                    ``(II) information that shows how 
                                the school's students achievement on the 
                                statewide academic assessments and other 
                                indicators of adequate yearly progress 
                                compared to students in the local 
                                educational agency and the State as a 
                                whole.
                    ``(C) Other information.--A local educational agency 
                may include in its annual local educational agency 
                report card any other appropriate information, whether 
                or not

[[Page 115 STAT. 1460]]

                such information is included in the annual State report 
                card.
                    ``(D) Data.--A local educational agency or school 
                shall only include in its annual local educational 
                agency report card data that are sufficient to yield 
                statistically reliable information, as determined by the 
                State, and that do not reveal personally identifiable 
                information about an individual student.
                    ``(E) <<NOTE: Deadline.>>  Public dissemination.--
                The local educational agency shall, not later than the 
                beginning of the 2002-2003 school year, unless the local 
                educational agency has received a 1-year extension 
                pursuant to subparagraph (A), publicly disseminate the 
                information described in this paragraph to all schools 
                in the school district served by the local educational 
                agency and to all parents of students attending those 
                schools in an understandable and uniform format and, to 
                the extent practicable, provided in a language that the 
                parents can understand, and make the information widely 
                available through public means, such as posting on the 
                Internet, distribution to the media, and distribution 
                through public agencies, except that if a local 
                educational agency issues a report card for all 
                students, the local educational agency may include the 
                information under this section as part of such report.
            ``(3) Preexisting report cards.--A State educational agency 
        or local educational agency that was providing public report 
        cards on the performance of students, schools, local educational 
        agencies, or the State prior to the enactment of the No Child 
        Left Behind Act of 2001 may use those report cards for the 
        purpose of this subsection, so long as any such report card is 
        modified, as may be needed, to contain the information required 
        by this subsection.
            ``(4) <<NOTE: Deadlines.>>  Annual state report to the 
        secretary.--Each State educational agency receiving assistance 
        under this part shall report annually to the Secretary, and make 
        widely available within the State--
                    ``(A) beginning with school year 2002-2003, 
                information on the State's progress in developing and 
                implementing the academic assessments described in 
                subsection (b)(3);
                    ``(B) beginning not later than school year 2002-
                2003, information on the achievement of students on the 
                academic assessments required by subsection (b)(3), 
                including the disaggregated results for the categories 
                of students identified in subsection (b)(2)(C)(v);
                    ``(C) in any year before the State begins to provide 
                the information described in subparagraph (B), 
                information on the results of student academic 
                assessments (including disaggregated results) required 
                under this section;
                    ``(D) beginning not later than school year 2002-
                2003, unless the State has received an extension 
                pursuant to subsection (c)(1), information on the 
                acquisition of English proficiency by children with 
                limited English proficiency;
                    ``(E) the number and names of each school identified 
                for school improvement under section 1116(c), the reason 
                why each school was so identified, and the measures 
                taken to address the achievement problems of such 
                schools;

[[Page 115 STAT. 1461]]

                    ``(F) the number of students and schools that 
                participated in public school choice and supplemental 
                service programs and activities under this title; and
                    ``(G) beginning not later than the 2002-2003 school 
                year, information on the quality of teachers and the 
                percentage of classes being taught by highly qualified 
                teachers in the State, local educational agency, and 
                school.
            ``(5) Report to congress.--The Secretary shall transmit 
        annually to the Committee on Education and the Workforce of the 
        House of Representatives and the Committee on Health, Education, 
        Labor, and Pensions of the Senate a report that provides 
        national and State-level data on the information collected under 
        paragraph (4).
            ``(6) Parents right-to-know.--
                    ``(A) <<NOTE: Notification.>>  Qualifications.--At 
                the beginning of each school year, a local educational 
                agency that receives funds under this part shall notify 
                the parents of each student attending any school 
                receiving funds under this part that the parents may 
                request, and the agency will provide the parents on 
                request (and in a timely manner), information regarding 
                the professional qualifications of the student's 
                classroom teachers, including, at a minimum, the 
                following:
                          ``(i) Whether the teacher has met State 
                      qualification and licensing criteria for the grade 
                      levels and subject areas in which the teacher 
                      provides instruction.
                          ``(ii) Whether the teacher is teaching under 
                      emergency or other provisional status through 
                      which State qualification or licensing criteria 
                      have been waived.
                          ``(iii) The baccalaureate degree major of the 
                      teacher and any other graduate certification or 
                      degree held by the teacher, and the field of 
                      discipline of the certification or degree.
                          ``(iv) Whether the child is provided services 
                      by paraprofessionals and, if so, their 
                      qualifications.
                    ``(B) Additional information.--In addition to the 
                information that parents may request under subparagraph 
                (A), a school that receives funds under this part shall 
                provide to each individual parent--
                          ``(i) information on the level of achievement 
                      of the parent's child in each of the State 
                      academic assessments as required under this part; 
                      and
                          ``(ii) timely notice that the parent's child 
                      has been assigned, or has been taught for four or 
                      more consecutive weeks by, a teacher who is not 
                      highly qualified.
                    ``(C) Format.--The notice and information provided 
                to parents under this paragraph shall be in an 
                understandable and uniform format and, to the extent 
                practicable, provided in a language that the parents can 
                understand.

    ``(i) Privacy.--Information collected under this section shall be 
collected and disseminated in a manner that protects the privacy of 
individuals.
    ``(j) Technical Assistance.--The Secretary shall provide a State 
educational agency, at the State educational agency's request, technical 
assistance in meeting the requirements of this section, including the 
provision of advice by experts in the development

[[Page 115 STAT. 1462]]

of high-quality academic assessments, the setting of State standards, 
the development of measures of adequate yearly progress that are valid 
and reliable, and other relevant areas.
    ``(k) Voluntary Partnerships.--A State may enter into a voluntary 
partnership with another State to develop and implement the academic 
assessments and standards required under this section.
    ``(l) Construction.--Nothing in this part shall be construed to 
prescribe the use of the academic assessments described in this part for 
student promotion or graduation purposes.
    ``(m) <<NOTE: Applicability.>>  Special Rule With Respect to Bureau-
Funded Schools.--In determining the assessments to be used by each 
operated or funded by BIA school receiving funds under this part, the 
following shall apply:
            ``(1) Each such school that is accredited by the State in 
        which it is operating shall use the assessments the State has 
        developed and implemented to meet the requirements of this 
        section, or such other appropriate assessment as approved by the 
        Secretary of the Interior.
            ``(2) Each such school that is accredited by a regional 
        accrediting organization shall adopt an appropriate assessment, 
        in consultation with and with the approval of, the Secretary of 
        the Interior and consistent with assessments adopted by other 
        schools in the same State or region, that meets the requirements 
        of this section.
            ``(3) Each such school that is accredited by a tribal 
        accrediting agency or tribal division of education shall use an 
        assessment developed by such agency or division, except that the 
        Secretary of the Interior shall ensure that such assessment 
        meets the requirements of this section.

``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS. <<NOTE: 20 USC 6312.>> 

    ``(a) Plans Required.--
            ``(1) Subgrants.--A local educational agency may receive a 
        subgrant under this part for any fiscal year only if such agency 
        has on file with the State educational agency a plan, approved 
        by the State educational agency, that is coordinated with other 
        programs under this Act, the Individuals with Disabilities 
        Education Act, the Carl D. Perkins Vocational and Technical 
        Education Act of 1998, the McKinney-Vento Homeless Assistance 
        Act, and other Acts, as appropriate.
            ``(2) Consolidated application.--The plan may be submitted 
        as part of a consolidated application under section 9305.

    ``(b) Plan Provisions.--
            ``(1) In general.--In order to help low-achieving children 
        meet challenging achievement academic standards, each local 
        educational agency plan shall include--
                    ``(A) a description of high-quality student academic 
                assessments, if any, that are in addition to the 
                academic assessments described in the State plan under 
                section 1111(b)(3), that the local educational agency 
                and schools served under this part will use--
                          ``(i) to determine the success of children 
                      served under this part in meeting the State 
                      student academic achievement standards, and to 
                      provide information to teachers, parents, and 
                      students on the progress being made toward meeting 
                      the State student academic

[[Page 115 STAT. 1463]]

                      achievement standards described in section 
                      1111(b)(1)(D)(ii);
                          ``(ii) to assist in diagnosis, teaching, and 
                      learning in the classroom in ways that best enable 
                      low-achieving children served under this part to 
                      meet State student achievement academic standards 
                      and do well in the local curriculum;
                          ``(iii) to determine what revisions are needed 
                      to projects under this part so that such children 
                      meet the State student academic achievement 
                      standards; and
                          ``(iv) to identify effectively students who 
                      may be at risk for reading failure or who are 
                      having difficulty reading, through the use of 
                      screening, diagnostic, and classroom-based 
                      instructional reading assessments, as defined 
                      under section 1208;
                    ``(B) at the local educational agency's discretion, 
                a description of any other indicators that will be used 
                in addition to the academic indicators described in 
                section 1111 for the uses described in such section;
                    ``(C) a description of how the local educational 
                agency will provide additional educational assistance to 
                individual students assessed as needing help in meeting 
                the State's challenging student academic achievement 
                standards;
                    ``(D) a description of the strategy the local 
                educational agency will use to coordinate programs under 
                this part with programs under title II to provide 
                professional development for teachers and principals, 
                and, if appropriate, pupil services personnel, 
                administrators, parents and other staff, including local 
                educational agency level staff in accordance with 
                sections 1118 and 1119;
                    ``(E) a description of how the local educational 
                agency will coordinate and integrate services provided 
                under this part with other educational services at the 
                local educational agency or individual school level, 
                such as--
                          ``(i) Even Start, Head Start, Reading First, 
                      Early Reading First, and other preschool programs, 
                      including plans for the transition of participants 
                      in such programs to local elementary school 
                      programs; and
                          ``(ii) services for children with limited 
                      English proficiency, children with disabilities, 
                      migratory children, neglected or delinquent youth, 
                      Indian children served under part A of title VII, 
                      homeless children, and immigrant children in order 
                      to increase program effectiveness, eliminate 
                      duplication, and reduce fragmentation of the 
                      instructional program;
                    ``(F) an assurance that the local educational agency 
                will participate, if selected, in the State National 
                Assessment of Educational Progress in 4th and 8th grade 
                reading and mathematics carried out under section 
                411(b)(2) of the National Education Statistics Act of 
                1994;
                    ``(G) a description of the poverty criteria that 
                will be used to select school attendance areas under 
                section 1113;
                    ``(H) a description of how teachers, in consultation 
                with parents, administrators, and pupil services 
                personnel, in targeted assistance schools under section 
                1115, will identify

[[Page 115 STAT. 1464]]

                the eligible children most in need of services under 
                this part;
                    ``(I) a general description of the nature of the 
                programs to be conducted by such agency's schools under 
                sections 1114 and 1115 and, where appropriate, 
                educational services outside such schools for children 
                living in local institutions for neglected or delinquent 
                children, and for neglected and delinquent children in 
                community day school programs;
                    ``(J) a description of how the local educational 
                agency will ensure that migratory children and formerly 
                migratory children who are eligible to receive services 
                under this part are selected to receive such services on 
                the same basis as other children who are selected to 
                receive services under this part;
                    ``(K) if appropriate, a description of how the local 
                educational agency will use funds under this part to 
                support preschool programs for children, particularly 
                children participating in Early Reading First, or in a 
                Head Start or Even Start program, which services may be 
                provided directly by the local educational agency or 
                through a subcontract with the local Head Start agency 
                designated by the Secretary of Health and Human Services 
                under section 641 of the Head Start Act, or an agency 
                operating an Even Start program, an Early Reading First 
                program, or another comparable public early childhood 
                development program;
                    ``(L) a description of the actions the local 
                educational agency will take to assist its low-achieving 
                schools identified under section 1116 as in need of 
                improvement;
                    ``(M) a description of the actions the local 
                educational agency will take to implement public school 
                choice and supplemental services, consistent with the 
                requirements of section 1116;
                    ``(N) a description of how the local educational 
                agency will meet the requirements of section 1119;
                    ``(O) a description of the services the local 
                educational agency will provide homeless children, 
                including services provided with funds reserved under 
                section 1113(c)(3)(A);
                    ``(P) a description of the strategy the local 
                educational agency will use to implement effective 
                parental involvement under section 1118; and
                    ``(Q) where appropriate, a description of how the 
                local educational agency will use funds under this part 
                to support after school (including before school and 
                summer school) and school-year extension programs.
            ``(2) Exception.--The academic assessments and indicators 
        described in subparagraphs (A) and (B) of paragraph (1) shall 
        not be used--
                    ``(A) in lieu of the academic assessments required 
                under section 1111(b)(3) and other State academic 
                indicators under section 1111(b)(2); or
                    ``(B) to reduce the number of, or change which, 
                schools would otherwise be subject to school 
                improvement, corrective action, or restructuring under 
                section 1116, if such additional assessments or 
                indicators described in such subparagraphs were not 
                used, but such assessments and indicators may be used to 
                identify additional schools for

[[Page 115 STAT. 1465]]

                school improvement or in need of corrective action or 
                restructuring.

    ``(c) Assurances.--
            ``(1) In general.--Each local educational agency plan shall 
        provide assurances that the local educational agency will--
                    ``(A) inform eligible schools and parents of 
                schoolwide program authority and the ability of such 
                schools to consolidate funds from Federal, State, and 
                local sources;
                    ``(B) provide technical assistance and support to 
                schoolwide programs;
                    ``(C) work in consultation with schools as the 
                schools develop the schools' plans pursuant to section 
                1114 and assist schools as the schools implement such 
                plans or undertake activities pursuant to section 1115 
                so that each school can make adequate yearly progress 
                toward meeting the State student academic achievement 
                standards;
                    ``(D) fulfill such agency's school improvement 
                responsibilities under section 1116, including taking 
                actions under paragraphs (7) and (8) of section 1116(b);
                    ``(E) provide services to eligible children 
                attending private elementary schools and secondary 
                schools in accordance with section 1120, and timely and 
                meaningful consultation with private school officials 
                regarding such services;
                    ``(F) take into account the experience of model 
                programs for the educationally disadvantaged, and the 
                findings of relevant scientifically based research 
                indicating that services may be most effective if 
                focused on students in the earliest grades at schools 
                that receive funds under this part;
                    ``(G) in the case of a local educational agency that 
                chooses to use funds under this part to provide early 
                childhood development services to low-income children 
                below the age of compulsory school attendance, ensure 
                that such services comply with the performance standards 
                established under section 641A(a) of the Head Start Act;
                    ``(H) work in consultation with schools as the 
                schools develop and implement their plans or activities 
                under sections 1118 and 1119;
                    ``(I) comply with the requirements of section 1119 
                regarding the qualifications of teachers and 
                paraprofessionals and professional development;
                    ``(J) inform eligible schools of the local 
                educational agency's authority to obtain waivers on the 
                school's behalf under title IX and, if the State is an 
                Ed-Flex Partnership State, to obtain waivers under the 
                Education Flexibility Partnership Act of 1999;
                    ``(K) coordinate and collaborate, to the extent 
                feasible and necessary as determined by the local 
                educational agency, with the State educational agency 
                and other agencies providing services to children, 
                youth, and families with respect to a school in school 
                improvement, corrective action, or restructuring under 
                section 1116 if such a school requests assistance from 
                the local educational agency in addressing major factors 
                that have significantly affected student achievement at 
                the school;

[[Page 115 STAT. 1466]]

                    ``(L) ensure, through incentives for voluntary 
                transfers, the provision of professional development, 
                recruitment programs, or other effective strategies, 
                that low-income students and minority students are not 
                taught at higher rates than other students by 
                unqualified, out-of-field, or inexperienced teachers;
                    ``(M) use the results of the student academic 
                assessments required under section 1111(b)(3), and other 
                measures or indicators available to the agency, to 
                review annually the progress of each school served by 
                the agency and receiving funds under this part to 
                determine whether all of the schools are making the 
                progress necessary to ensure that all students will meet 
                the State's proficient level of achievement on the State 
                academic assessments described in section 1111(b)(3) 
                within 12 years from the end of the 2001-2002 school 
                year;
                    ``(N) ensure that the results from the academic 
                assessments required under section 1111(b)(3) will be 
                provided to parents and teachers as soon as is 
                practicably possible after the test is taken, in an 
                understandable and uniform format and, to the extent 
                practicable, provided in a language that the parents can 
                understand; and
                    ``(O) assist each school served by the agency and 
                assisted under this part in developing or identifying 
                examples of high-quality, effective curricula consistent 
                with section 1111(b)(8)(D).
            ``(2) Special rule.--In carrying out subparagraph (G) of 
        paragraph (1), the Secretary--
                    ``(A) <<NOTE: Procedures.>>  shall consult with the 
                Secretary of Health and Human Services and shall 
                establish procedures (taking into consideration existing 
                State and local laws, and local teacher contracts) to 
                assist local educational agencies to comply with such 
                subparagraph; and
                    ``(B) shall disseminate to local educational 
                agencies the Head Start performance standards as in 
                effect under section 641A(a) of the Head Start Act, and 
                such agencies affected by such subparagraph shall plan 
                for the implementation of such subparagraph (taking into 
                consideration existing State and local laws, and local 
                teacher contracts), including pursuing the availability 
                of other Federal, State, and local funding sources to 
                assist in compliance with such subparagraph.
            ``(3) Inapplicability.--Paragraph (1)(G) of this subsection 
        shall not apply to preschool programs using the Even Start model 
        or to Even Start programs that are expanded through the use of 
        funds under this part.

    ``(d) Plan Development and Duration.--
            ``(1) Consultation.--Each local educational agency plan 
        shall be developed in consultation with teachers, principals, 
        administrators (including administrators of programs described 
        in other parts of this title), and other appropriate school 
        personnel, and with parents of children in schools served under 
        this part.
            ``(2) Duration.--Each such plan shall be submitted for the 
        first year for which this part is in effect following the date 
        of enactment of the No Child Left Behind Act of 2001

[[Page 115 STAT. 1467]]

        and shall remain in effect for the duration of the agency's 
        participation under this part.
            ``(3) Review.--Each local educational agency shall 
        periodically review and, as necessary, revise its plan.

    ``(e) State Approval.--
            ``(1) In general.--Each local educational agency plan shall 
        be filed according to a schedule established by the State 
        educational agency.
            ``(2) Approval.--The State educational agency shall approve 
        a local educational agency's plan only if the State educational 
        agency determines that the local educational agency's plan--
                    ``(A) enables schools served under this part to 
                substantially help children served under this part meet 
                the academic standards expected of all children 
                described in section 1111(b)(1); and
                    ``(B) meets the requirements of this section.
            ``(3) Review.--The State educational agency shall review the 
        local educational agency's plan to determine if such agencies 
        activities are in accordance with sections 1118 and 1119.

    ``(f) Program Responsibility.--The local educational agency plan 
shall reflect the shared responsibility of schools, teachers, and the 
local educational agency in making decisions regarding activities under 
sections 1114 and 1115.
    ``(g) Parental Notification.--
            ``(1) In general.--
                    ``(A) <<NOTE: Deadline.>>  Notice.--Each local 
                educational agency using funds under this part to 
                provide a language instruction educational program as 
                determined in part C of title III shall, not later than 
                30 days after the beginning of the school year, inform a 
                parent or parents of a limited English proficient child 
                identified for participation or participating in, such a 
                program of--
                          ``(i) the reasons for the identification of 
                      their child as limited English proficient and in 
                      need of placement in a language instruction 
                      educational program;
                          ``(ii) the child's level of English 
                      proficiency, how such level was assessed, and the 
                      status of the child's academic achievement;
                          ``(iii) the methods of instruction used in the 
                      program in which their child is, or will be 
                      participating, and the methods of instruction used 
                      in other available programs, including how such 
                      programs differ in content, instructional goals, 
                      and the use of English and a native language in 
                      instruction;
                          ``(iv) how the program in which their child 
                      is, or will be participating, will meet the 
                      educational strengths and needs of their child;
                          ``(v) how such program will specifically help 
                      their child learn English, and meet age-
                      appropriate academic achievement standards for 
                      grade promotion and graduation;
                          ``(vi) the specific exit requirements for the 
                      program, including the expected rate of transition 
                      from such program into classrooms that are not 
                      tailored for limited English proficient children, 
                      and the expected rate of graduation from secondary 
                      school for such program

[[Page 115 STAT. 1468]]

                      if funds under this part are used for children in 
                      secondary schools;
                          ``(vii) in the case of a child with a 
                      disability, how such program meets the objectives 
                      of the individualized education program of the 
                      child;
                          ``(viii) information pertaining to parental 
                      rights that includes written guidance--
                                    ``(I) detailing--
                                            ``(aa) the right that 
                                        parents have to have their child 
                                        immediately removed from such 
                                        program upon their request; and
                                            ``(bb) the options that 
                                        parents have to decline to 
                                        enroll their child in such 
                                        program or to choose another 
                                        program or method of 
                                        instruction, if available; and
                                    ``(II) assisting parents in 
                                selecting among various programs and 
                                methods of instruction, if more than one 
                                program or method is offered by the 
                                eligible entity.
                    ``(B) <<NOTE: Deadline.>>  Separate notification.--
                In addition to providing the information required to be 
                provided under paragraph (1), each eligible entity that 
                is using funds provided under this part to provide a 
                language instruction educational program, and that has 
                failed to make progress on the annual measurable 
                achievement objectives described in section 3122 for any 
                fiscal year for which part A is in effect, shall 
                separately inform a parent or the parents of a child 
                identified for participation in such program, or 
                participating in such program, of such failure not later 
                than 30 days after such failure occurs.
            ``(2) Notice.--The notice and information provided in 
        paragraph (1) to a parent or parents of a child identified for 
        participation in a language instruction educational program for 
        limited English proficient children shall be in an 
        understandable and uniform format and, to the extent 
        practicable, provided in a language that the parents can 
        understand.
            ``(3) <<NOTE: Deadline.>>  Special rule applicable during 
        the school year.--For those children who have not been 
        identified as limited English proficient prior to the beginning 
        of the school year the local educational agency shall notify 
        parents within the first 2 weeks of the child being placed in a 
        language instruction educational program consistent with 
        paragraphs (1) and (2).
            ``(4) Parental participation.--Each local educational agency 
        receiving funds under this part shall implement an effective 
        means of outreach to parents of limited English proficient 
        students to inform the parents regarding how the parents can be 
        involved in the education of their children, and be active 
        participants in assisting their children to attain English 
        proficiency, achieve at high levels in core academic subjects, 
        and meet challenging State academic achievement standards and 
        State academic content standards expected of all students, 
        including holding, and sending notice of opportunities for, 
        regular meetings for the purpose of formulating and responding 
        to recommendations from parents of students assisted under this 
        part.
            ``(5) Basis for admission or exclusion.--A student shall not 
        be admitted to, or excluded from, any federally assisted

[[Page 115 STAT. 1469]]

        education program on the basis of a surname or language-minority 
        status.

``SEC. 1113. <<NOTE: 20 USC 6313.>>  ELIGIBLE SCHOOL ATTENDANCE AREAS.

    ``(a) Determination.--
            ``(1) In general.--A local educational agency shall use 
        funds received under this part only in eligible school 
        attendance areas.
            ``(2) Eligible school attendance areas.--For the purposes of 
        this part--
                    ``(A) the term `school attendance area' means, in 
                relation to a particular school, the geographical area 
                in which the children who are normally served by that 
                school reside; and
                    ``(B) the term `eligible school attendance area' 
                means a school attendance area in which the percentage 
                of children from low-income families is at least as high 
                as the percentage of children from low-income families 
                served by the local educational agency as a whole.
            ``(3) Ranking order.--If funds allocated in accordance with 
        subsection (c) are insufficient to serve all eligible school 
        attendance areas, a local educational agency shall--
                    ``(A) annually rank, without regard to grade spans, 
                such agency's eligible school attendance areas in which 
                the concentration of children from low-income families 
                exceeds 75 percent from highest to lowest according to 
                the percentage of children from low-income families; and
                    ``(B) serve such eligible school attendance areas in 
                rank order.
            ``(4) Remaining funds.--If funds remain after serving all 
        eligible school attendance areas under paragraph (3), a local 
        educational agency shall--
                    ``(A) annually rank such agency's remaining eligible 
                school attendance areas from highest to lowest either by 
                grade span or for the entire local educational agency 
                according to the percentage of children from low-income 
                families; and
                    ``(B) serve such eligible school attendance areas in 
                rank order either within each grade-span grouping or 
                within the local educational agency as a whole.
            ``(5) Measures.--The local educational agency shall use the 
        same measure of poverty, which measure shall be the number of 
        children ages 5 through 17 in poverty counted in the most recent 
        census data approved by the Secretary, the number of children 
        eligible for free and reduced priced lunches under the Richard 
        B. Russell National School Lunch Act, the number of children in 
        families receiving assistance under the State program funded 
        under part A of title IV of the Social Security Act, or the 
        number of children eligible to receive medical assistance under 
        the Medicaid program, or a composite of such indicators, with 
        respect to all school attendance areas in the local educational 
        agency--
                    ``(A) to identify eligible school attendance areas;
                    ``(B) to determine the ranking of each area; and
                    ``(C) to determine allocations under subsection (c).

[[Page 115 STAT. 1470]]

            ``(6) Exception.--This subsection shall not apply to a local 
        educational agency with a total enrollment of less than 1,000 
        children.
            ``(7) Waiver for desegregation plans.--The Secretary may 
        approve a local educational agency's written request for a 
        waiver of the requirements of subsections (a) and (c), and 
        permit such agency to treat as eligible, and serve, any school 
        that children attend with a State-ordered, court-ordered school 
        desegregation plan or a plan that continues to be implemented in 
        accordance with a State-ordered or court-ordered desegregation 
        plan, if--
                    ``(A) the number of economically disadvantaged 
                children enrolled in the school is at least 25 percent 
                of the school's total enrollment; and
                    ``(B) the Secretary determines on the basis of a 
                written request from such agency and in accordance with 
                such criteria as the Secretary establishes, that 
                approval of that request would further the purposes of 
                this part.

    ``(b) Local Educational Agency Discretion.--
            ``(1) In general.--Notwithstanding subsection (a)(2), a 
        local educational agency may--
                    ``(A) designate as eligible any school attendance 
                area or school in which at least 35 percent of the 
                children are from low-income families;
                    ``(B) use funds received under this part in a school 
                that is not in an eligible school attendance area, if 
                the percentage of children from low-income families 
                enrolled in the school is equal to or greater than the 
                percentage of such children in a participating school 
                attendance area of such agency;
                    ``(C) designate and serve a school attendance area 
                or school that is not eligible under this section, but 
                that was eligible and that was served in the preceding 
                fiscal year, but only for 1 additional fiscal year; and
                    ``(D) elect not to serve an eligible school 
                attendance area or eligible school that has a higher 
                percentage of children from low-income families if--
                          ``(i) the school meets the comparability 
                      requirements of section 1120A(c);
                          ``(ii) the school is receiving supplemental 
                      funds from other State or local sources that are 
                      spent according to the requirements of section 
                      1114 or 1115; and
                          ``(iii) the funds expended from such other 
                      sources equal or exceed the amount that would be 
                      provided under this part.
            ``(2) Special rule.--Notwithstanding paragraph (1)(D), the 
        number of children attending private elementary schools and 
        secondary schools who are to receive services, and the 
        assistance such children are to receive under this part, shall 
        be determined without regard to whether the public school 
        attendance area in which such children reside is assisted under 
        subparagraph (A).

    ``(c) Allocations.--
            ``(1) In general.--A local educational agency shall allocate 
        funds received under this part to eligible school attendance 
        areas or eligible schools, identified under subsections (a) and

[[Page 115 STAT. 1471]]

        (b), in rank order, on the basis of the total number of children 
        from low-income families in each area or school.
            ``(2) Special rule.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the per-pupil amount of funds 
                allocated to each school attendance area or school under 
                paragraph (1) shall be at least 125 percent of the per-
                pupil amount of funds a local educational agency 
                received for that year under the poverty criteria 
                described by the local educational agency in the plan 
                submitted under section 1112, except that this paragraph 
                shall not apply to a local educational agency that only 
                serves schools in which the percentage of such children 
                is 35 percent or greater.
                    ``(B) Exception.--A local educational agency may 
                reduce the amount of funds allocated under subparagraph 
                (A) for a school attendance area or school by the amount 
                of any supplemental State and local funds expended in 
                that school attendance area or school for programs that 
                meet the requirements of section 1114 or 1115.
            ``(3) Reservation.--A local educational agency shall reserve 
        such funds as are necessary under this part to provide services 
        comparable to those provided to children in schools funded under 
        this part to serve--
                    ``(A) homeless children who do not attend 
                participating schools, including providing educationally 
                related support services to children in shelters and 
                other locations where children may live;
                    ``(B) children in local institutions for neglected 
                children; and
                    ``(C) if appropriate, children in local institutions 
                for delinquent children, and neglected or delinquent 
                children in community day school programs.
            ``(4) Financial incentives and rewards reservation.--A local 
        educational agency may reserve such funds as are necessary from 
        those funds received by the local educational agency under title 
        II, and not more than 5 percent of those funds received by the 
        local educational agency under subpart 2, to provide financial 
        incentives and rewards to teachers who serve in schools eligible 
        under this section and identified for school improvement, 
        corrective action, and restructuring under section 1116(b) for 
        the purpose of attracting and retaining qualified and effective 
        teachers.

``SEC. 1114. <<NOTE: 20 USC 6314.>>  SCHOOLWIDE PROGRAMS.

    ``(a) Use of Funds for Schoolwide Programs.--
            ``(1) In general.--A local educational agency may 
        consolidate and use funds under this part, together with other 
        Federal, State, and local funds, in order to upgrade the entire 
        educational program of a school that serves an eligible school 
        attendance area in which not less than 40 percent of the 
        children are from low-income families, or not less than 40 
        percent of the children enrolled in the school are from such 
        families.
            ``(2) Identification of students not required.--
                    ``(A) In general.--No school participating in a 
                schoolwide program shall be required--
                          ``(i) to identify particular children under 
                      this part as eligible to participate in a 
                      schoolwide program; or

[[Page 115 STAT. 1472]]

                          ``(ii) to provide services to such children 
                      that are supplementary, as otherwise required by 
                      section 1120A(b).
                    ``(B) Supplemental funds.--A school participating in 
                a schoolwide program shall use funds available to carry 
                out this section only to supplement the amount of funds 
                that would, in the absence of funds under this part, be 
                made available from non-Federal sources for the school, 
                including funds needed to provide services that are 
                required by law for children with disabilities and 
                children with limited English proficiency.
            ``(3) Exemption from statutory and regulatory 
        requirements.--
                    ``(A) Exemption.--Except as provided in subsection 
                (b), the Secretary may, through publication of a notice 
                in the Federal Register, exempt schoolwide programs 
                under this section from statutory or regulatory 
                provisions of any other noncompetitive formula grant 
                program administered by the Secretary (other than 
                formula or discretionary grant programs under the 
                Individuals with Disabilities Education Act, except as 
                provided in section 613(a)(2)(D) of such Act), or any 
                discretionary grant program administered by the 
                Secretary, to support schoolwide programs if the intent 
                and purposes of such other programs are met.
                    ``(B) Requirements.--A school that chooses to use 
                funds from such other programs shall not be relieved of 
                the requirements relating to health, safety, civil 
                rights, student and parental participation and 
                involvement, services to private school children, 
                maintenance of effort, comparability of services, uses 
                of Federal funds to supplement, not supplant non-Federal 
                funds, or the distribution of funds to State educational 
                agencies or local educational agencies that apply to the 
                receipt of funds from such programs.
                    ``(C) Records.--A school that consolidates and uses 
                funds from different Federal programs under this section 
                shall not be required to maintain separate fiscal 
                accounting records, by program, that identify the 
                specific activities supported by those particular funds 
                as long as the school maintains records that demonstrate 
                that the schoolwide program, considered as a whole, 
                addresses the intent and purposes of each of the Federal 
                programs that were consolidated to support the 
                schoolwide program.
            ``(4) Professional development.--Each school receiving funds 
        under this part for any fiscal year shall devote sufficient 
        resources to effectively carry out the activities described in 
        subsection (b)(1)(D) in accordance with section 1119 for such 
        fiscal year, except that a school may enter into a consortium 
        with another school to carry out such activities.

    ``(b) Components of a Schoolwide Program.--
            ``(1) In general.--A schoolwide program shall include the 
        following components:
                    ``(A) A comprehensive needs assessment of the entire 
                school (including taking into account the needs of 
                migratory children as defined in section 1309(2)) that 
                is based on information which includes the achievement 
                of children in relation to the State academic content 
                standards and

[[Page 115 STAT. 1473]]

                the State student academic achievement standards 
                described in section 1111(b)(1).
                    ``(B) Schoolwide reform strategies that--
                          ``(i) provide opportunities for all children 
                      to meet the State's proficient and advanced levels 
                      of student academic achievement described in 
                      section 1111(b)(1)(D);
                          ``(ii) use effective methods and instructional 
                      strategies that are based on scientifically based 
                      research that--
                                    ``(I) strengthen the core academic 
                                program in the school;
                                    ``(II) increase the amount and 
                                quality of learning time, such as 
                                providing an extended school year and 
                                before- and after-school and summer 
                                programs and opportunities, and help 
                                provide an enriched and accelerated 
                                curriculum; and
                                    ``(III) include strategies for 
                                meeting the educational needs of 
                                historically underserved populations;
                          ``(iii)(I) include strategies to address the 
                      needs of all children in the school, but 
                      particularly the needs of low-achieving children 
                      and those at risk of not meeting the State student 
                      academic achievement standards who are members of 
                      the target population of any program that is 
                      included in the schoolwide program, which may 
                      include--
                                    ``(aa) counseling, pupil services, 
                                and mentoring services;
                                    ``(bb) college and career awareness 
                                and preparation, such as college and 
                                career guidance, personal finance 
                                education, and innovative teaching 
                                methods, which may include applied 
                                learning and team-teaching strategies; 
                                and
                                    ``(cc) the integration of vocational 
                                and technical education programs; and
                          ``(II) address how the school will determine 
                      if such needs have been met; and
                          ``(iv) are consistent with, and are designed 
                      to implement, the State and local improvement 
                      plans, if any.
                    ``(C) Instruction by highly qualified teachers.
                    ``(D) In accordance with section 1119 and subsection 
                (a)(4), high-quality and ongoing professional 
                development for teachers, principals, and 
                paraprofessionals and, if appropriate, pupil services 
                personnel, parents, and other staff to enable all 
                children in the school to meet the State's student 
                academic achievement standards.
                    ``(E) Strategies to attract high-quality highly 
                qualified teachers to high-need schools.
                    ``(F) Strategies to increase parental involvement in 
                accordance with section 1118, such as family literary 
                services.
                    ``(G) Plans for assisting preschool children in the 
                transition from early childhood programs, such as Head 
                Start, Even Start, Early Reading First, or a State-run 
                preschool program, to local elementary school programs.

[[Page 115 STAT. 1474]]

                    ``(H) Measures to include teachers in the decisions 
                regarding the use of academic assessments described in 
                section 1111(b)(3) in order to provide information on, 
                and to improve, the achievement of individual students 
                and the overall instructional program.
                    ``(I) Activities to ensure that students who 
                experience difficulty mastering the proficient or 
                advanced levels of academic achievement standards 
                required by section 1111(b)(1) shall be provided with 
                effective, timely additional assistance which shall 
                include measures to ensure that students' difficulties 
                are identified on a timely basis and to provide 
                sufficient information on which to base effective 
                assistance.
                    ``(J) Coordination and integration of Federal, 
                State, and local services and programs, including 
                programs supported under this Act, violence prevention 
                programs, nutrition programs, housing programs, Head 
                Start, adult education, vocational and technical 
                education, and job training.
            ``(2) Plan.--
                    ``(A) In general.--Any eligible school that desires 
                to operate a schoolwide program shall first develop (or 
                amend a plan for such a program that was in existence on 
                the day before the date of enactment of the No Child 
                Left Behind Act of 2001), in consultation with the local 
                educational agency and its school support team or other 
                technical assistance provider under section 1117, a 
                comprehensive plan for reforming the total instructional 
                program in the school that--
                          ``(i) describes how the school will implement 
                      the components described in paragraph (1);
                          ``(ii) describes how the school will use 
                      resources under this part and from other sources 
                      to implement those components;
                          ``(iii) <<NOTE: Records.>>  includes a list of 
                      State educational agency and local educational 
                      agency programs and other Federal programs under 
                      subsection (a)(3) that will be consolidated in the 
                      schoolwide program; and
                          ``(iv) describes how the school will provide 
                      individual student academic assessment results in 
                      a language the parents can understand, including 
                      an interpretation of those results, to the parents 
                      of a child who participates in the academic 
                      assessments required by section 1111(b)(3).
                    ``(B) Plan development.--The comprehensive plan 
                shall be--
                          ``(i) developed during a one-year period, 
                      unless--
                                    ``(I) the local educational agency, 
                                after considering the recommendation of 
                                the technical assistance providers under 
                                section 1117, determines that less time 
                                is needed to develop and implement the 
                                schoolwide program; or
                                    ``(II) the school is operating a 
                                schoolwide program on the day preceding 
                                the date of enactment of the No Child 
                                Left Behind Act of 2001, in which case 
                                such school may continue to operate such 
                                program, but shall develop amendments to 
                                its existing plan during the first year 
                                of assistance

[[Page 115 STAT. 1475]]

                                after that date to reflect the 
                                provisions of this section;
                          ``(ii) developed with the involvement of 
                      parents and other members of the community to be 
                      served and individuals who will carry out such 
                      plan, including teachers, principals, and 
                      administrators (including administrators of 
                      programs described in other parts of this title), 
                      and, if appropriate, pupil services personnel, 
                      technical assistance providers, school staff, and, 
                      if the plan relates to a secondary school, 
                      students from such school;
                          ``(iii) in effect for the duration of the 
                      school's participation under this part and 
                      reviewed and revised, as necessary, by the school;
                          ``(iv) available to the local educational 
                      agency, parents, and the public, and the 
                      information contained in such plan shall be in an 
                      understandable and uniform format and, to the 
                      extent practicable, provided in a language that 
                      the parents can understand; and
                          ``(v) if appropriate, developed in 
                      coordination with programs under Reading First, 
                      Early Reading First, Even Start, Carl D. Perkins 
                      Vocational and Technical Education Act of 1998, 
                      and the Head Start Act.

    ``(c) Prekindergarten Program.--A school that is eligible for a 
schoolwide program under this section may use funds made available under 
this part to establish or enhance prekindergarten programs for children 
below the age of 6, such as Even Start programs or Early Reading First 
programs.

``SEC. 1115. TARGETED ASSISTANCE SCHOOLS. <<NOTE: 20 USC 6315.>> 

    ``(a) In General.--In all schools selected to receive funds under 
section 1113(c) that are ineligible for a schoolwide program under 
section 1114, or that choose not to operate such a schoolwide program, a 
local educational agency serving such school may use funds received 
under this part only for programs that provide services to eligible 
children under subsection (b) identified as having the greatest need for 
special assistance.
    ``(b) Eligible Children.--
            ``(1) Eligible population.--
                    ``(A) In general.--The eligible population for 
                services under this section is--
                          ``(i) children not older than age 21 who are 
                      entitled to a free public education through grade 
                      12; and
                          ``(ii) children who are not yet at a grade 
                      level at which the local educational agency 
                      provides a free public education.
                    ``(B) Eligible children from eligible population.--
                From the population described in subparagraph (A), 
                eligible children are children identified by the school 
                as failing, or most at risk of failing, to meet the 
                State's challenging student academic achievement 
                standards on the basis of multiple, educationally 
                related, objective criteria established by the local 
                educational agency and supplemented by the school, 
                except that children from preschool through grade 2 
                shall be selected solely on the basis of such criteria 
                as teacher judgment, interviews with parents, and 
                developmentally appropriate measures.

[[Page 115 STAT. 1476]]

            ``(2) Children included.--
                    ``(A) In general.--Children who are economically 
                disadvantaged, children with disabilities, migrant 
                children or limited English proficient children, are 
                eligible for services under this part on the same basis 
                as other children selected to receive services under 
                this part.
                    ``(B) Head start, even start, or early reading first 
                children.--A child who, at any time in the 2 years 
                preceding the year for which the determination is made, 
                participated in a Head Start, Even Start, or Early 
                Reading First program, or in preschool services under 
                this title, is eligible for services under this part.
                    ``(C) Part c children.--A child who, at any time in 
                the 2 years preceding the year for which the 
                determination is made, received services under part C is 
                eligible for services under this part.
                    ``(D) Neglected or delinquent children.--A child in 
                a local institution for neglected or delinquent children 
                and youth or attending a community day program for such 
                children is eligible for services under this part.
                    ``(E) Homeless children.--A child who is homeless 
                and attending any school served by the local educational 
                agency is eligible for services under this part.
            ``(3) Special rule.--Funds received under this part may not 
        be used to provide services that are otherwise required by law 
        to be made available to children described in paragraph (2) but 
        may be used to coordinate or supplement such services.

    ``(c) Components of a Targeted Assistance School Program.--
            ``(1) In general.--To assist targeted assistance schools and 
        local educational agencies to meet their responsibility to 
        provide for all their students served under this part the 
        opportunity to meet the State's challenging student academic 
        achievement standards in subjects as determined by the State, 
        each targeted assistance program under this section shall--
                    ``(A) use such program's resources under this part 
                to help participating children meet such State's 
                challenging student academic achievement standards 
                expected for all children;
                    ``(B) ensure that planning for students served under 
                this part is incorporated into existing school planning;
                    ``(C) use effective methods and instructional 
                strategies that are based on scientifically based 
                research that strengthens the core academic program of 
                the school and that--
                          ``(i) give primary consideration to providing 
                      extended learning time, such as an extended school 
                      year, before- and after-school, and summer 
                      programs and opportunities;
                          ``(ii) help provide an accelerated, high-
                      quality curriculum, including applied learning; 
                      and
                          ``(iii) minimize removing children from the 
                      regular classroom during regular school hours for 
                      instruction provided under this part;
                    ``(D) coordinate with and support the regular 
                education program, which may include services to assist 
                preschool children in the transition from early 
                childhood programs

[[Page 115 STAT. 1477]]

                such as Head Start, Even Start, Early Reading First or 
                State-run preschool programs to elementary school 
                programs;
                    ``(E) provide instruction by highly qualified 
                teachers;
                    ``(F) in accordance with subsection (e)(3) and 
                section 1119, provide opportunities for professional 
                development with resources provided under this part, 
                and, to the extent practicable, from other sources, for 
                teachers, principals, and paraprofessionals, including, 
                if appropriate, pupil services personnel, parents, and 
                other staff, who work with participating children in 
                programs under this section or in the regular education 
                program;
                    ``(G) provide strategies to increase parental 
                involvement in accordance with section 1118, such as 
                family literacy services; and
                    ``(H) coordinate and integrate Federal, State, and 
                local services and programs, including programs 
                supported under this Act, violence prevention programs, 
                nutrition programs, housing programs, Head Start, adult 
                education, vocational and technical education, and job 
                training.
            ``(2) Requirements.--Each school conducting a program under 
        this section shall assist participating children selected in 
        accordance with subsection (b) to meet the State's proficient 
        and advanced levels of achievement by--
                    ``(A) the coordinating of resources provided under 
                this part with other resources; and
                    ``(B) reviewing, on an ongoing basis, the progress 
                of participating children and revising the targeted 
                assistance program, if necessary, to provide additional 
                assistance to enable such children to meet the State's 
                challenging student academic achievement standards, such 
                as an extended school year, before- and after-school, 
                and summer programs and opportunities, training for 
                teachers regarding how to identify students who need 
                additional assistance, and training for teachers 
                regarding how to implement student academic achievement 
                standards in the classroom.

    ``(d) Integration of Professional Development.--To promote the 
integration of staff supported with funds under this part into the 
regular school program and overall school planning and improvement 
efforts, public school personnel who are paid with funds received under 
this part may--
            ``(1) participate in general professional development and 
        school planning activities; and
            ``(2) assume limited duties that are assigned to similar 
        personnel who are not so paid, including duties beyond classroom 
        instruction or that do not benefit participating children, so 
        long as the amount of time spent on such duties is the same 
        proportion of total work time as prevails with respect to 
        similar personnel at the same school.

    ``(e) Special Rules.--
            ``(1) Simultaneous service.--Nothing in this section shall 
        be construed to prohibit a school from serving students under 
        this section simultaneously with students with similar 
        educational needs, in the same educational settings where 
        appropriate.
            ``(2) Comprehensive services.--If--

[[Page 115 STAT. 1478]]

                    ``(A) health, nutrition, and other social services 
                are not otherwise available to eligible children in a 
                targeted assistance school and such school, if 
                appropriate, has engaged in a comprehensive needs 
                assessment and established a collaborative partnership 
                with local service providers; and
                    ``(B) funds are not reasonably available from other 
                public or private sources to provide such services, then 
                a portion of the funds provided under this part may be 
                used as a last resort to provide such services, 
                including--
                          ``(i) the provision of basic medical 
                      equipment, such as eyeglasses and hearing aids;
                          ``(ii) compensation of a coordinator; and
                          ``(iii) professional development necessary to 
                      assist teachers, pupil services personnel, other 
                      staff, and parents in identifying and meeting the 
                      comprehensive needs of eligible children.
            ``(3) Professional development.--Each school receiving funds 
        under this part for any fiscal year shall devote sufficient 
        resources to carry out effectively the professional development 
        activities described in subparagraph (F) of subsection (c)(1) in 
        accordance with section 1119 for such fiscal year, and a school 
        may enter into a consortium with another school to carry out 
        such activities.

``SEC. 1116. <<NOTE: 20 USC 6316.>>  ACADEMIC ASSESSMENT AND LOCAL 
            EDUCATIONAL AGENCY AND SCHOOL IMPROVEMENT.

    ``(a) Local Review.--
            ``(1) In general.--Each local educational agency receiving 
        funds under this part shall--
                    ``(A) use the State academic assessments and other 
                indicators described in the State plan to review 
                annually the progress of each school served under this 
                part to determine whether the school is making adequate 
                yearly progress as defined in section 1111(b)(2);
                    ``(B) at the local educational agency's discretion, 
                use any academic assessments or any other academic 
                indicators described in the local educational agency's 
                plan under section 1112(b)(1)(A) and (B) to review 
                annually the progress of each school served under this 
                part to determine whether the school is making adequate 
                yearly progress as defined in section 1111(b)(2), except 
                that the local educational agency may not use such 
                indicators (other than as provided for in section 
                1111(b)(2)(I)) if the indicators reduce the number or 
                change the schools that would otherwise be subject to 
                school improvement, corrective action, or restructuring 
                under section 1116 if such additional indicators were 
                not used, but may identify additional schools for school 
                improvement or in need of corrective action or 
                restructuring;
                    ``(C) publicize and disseminate the results of the 
                local annual review described in paragraph (1) to 
                parents, teachers, principals, schools, and the 
                community so that the teachers, principals, other staff, 
                and schools can continually refine, in an 
                instructionally useful manner, the program of 
                instruction to help all children served under this

[[Page 115 STAT. 1479]]

                part meet the challenging State student academic 
                achievement standards established under section 
                1111(b)(1); and
                    ``(D) review the effectiveness of the actions and 
                activities the schools are carrying out under this part 
                with respect to parental involvement, professional 
                development, and other activities assisted under this 
                part.
            ``(2) Available results.--The State educational agency shall 
        ensure that the results of State academic assessments 
        administered in that school year are available to the local 
        educational agency before the beginning of the next school year.

    ``(b) School Improvement.--
            ``(1) General requirements.--
                    ``(A) Identification.--Subject to subparagraph (C), 
                a local educational agency shall identify for school 
                improvement any elementary school or secondary school 
                served under this part that fails, for 2 consecutive 
                years, to make adequate yearly progress as defined in 
                the State's plan under section 1111(b)(2).
                    ``(B) Deadline.--The identification described in 
                subparagraph (A) shall take place before the beginning 
                of the school year following such failure to make 
                adequate yearly progress.
                    ``(C) Application.--Subparagraph (A) shall not apply 
                to a school if almost every student in each group 
                specified in section 1111(b)(2)(C)(v) enrolled in such 
                school is meeting or exceeding the State's proficient 
                level of academic achievement.
                    ``(D) Targeted assistance schools.--To determine if 
                an elementary school or a secondary school that is 
                conducting a targeted assistance program under section 
                1115 should be identified for school improvement, 
                corrective action, or restructuring under this section, 
                a local educational agency may choose to review the 
                progress of only the students in the school who are 
                served, or are eligible for services, under this part.
                    ``(E) Public school choice.--
                          ``(i) In general.--In the case of a school 
                      identified for school improvement under this 
                      paragraph, the local educational agency shall, not 
                      later than the first day of the school year 
                      following such identification, provide all 
                      students enrolled in the school with the option to 
                      transfer to another public school served by the 
                      local educational agency, which may include a 
                      public charter school, that has not been 
                      identified for school improvement under this 
                      paragraph, unless such an option is prohibited by 
                      State law.
                          ``(ii) Rule.--In providing students the option 
                      to transfer to another public school, the local 
                      educational agency shall give priority to the 
                      lowest achieving children from low-income 
                      families, as determined by the local educational 
                      agency for purposes of allocating funds to schools 
                      under section 1113(c)(1).
                    ``(F) Transfer.--Students who use the option to 
                transfer under subparagraph (E) and paragraph (5)(A), 
                (7)(C)(i), or (8)(A)(i) or subsection (c)(10)(C)(vii) 
                shall be enrolled in classes and other activities in the 
                public school

[[Page 115 STAT. 1480]]

                to which the students transfer in the same manner as all 
                other children at the public school.
            ``(2) Opportunity to review and present evidence; time 
        limit.--
                    ``(A) Identification.--Before identifying an 
                elementary school or a secondary school for school 
                improvement under paragraphs (1) or (5)(A), for 
                corrective action under paragraph (7), or for 
                restructuring under paragraph (8), the local educational 
                agency shall provide the school with an opportunity to 
                review the school-level data, including academic 
                assessment data, on which the proposed identification is 
                based.
                    ``(B) Evidence.--If the principal of a school 
                proposed for identification under paragraph (1), (5)(A), 
                (7), or (8) believes, or a majority of the parents of 
                the students enrolled in such school believe, that the 
                proposed identification is in error for statistical or 
                other substantive reasons, the principal may provide 
                supporting evidence to the local educational agency, 
                which shall consider that evidence before making a final 
                determination.
                    ``(C) <<NOTE: Deadline. Public information.>>  Final 
                determination.--Not later than 30 days after a local 
                educational agency provides the school with the 
                opportunity to review such school-level data, the local 
                educational agency shall make public a final 
                determination on the status of the school with respect 
                to the identification.
            ``(3) School plan.--
                    ``(A) <<NOTE: Deadline.>>  Revised plan.--After the 
                resolution of a review under paragraph (2), each school 
                identified under paragraph (1) for school improvement 
                shall, not later than 3 months after being so 
                identified, develop or revise a school plan, in 
                consultation with parents, school staff, the local 
                educational agency serving the school, and outside 
                experts, for approval by such local educational agency. 
                The school plan shall cover a 2-year period and--
                          ``(i) incorporate strategies based on 
                      scientifically based research that will strengthen 
                      the core academic subjects in the school and 
                      address the specific academic issues that caused 
                      the school to be identified for school 
                      improvement, and may include a strategy for the 
                      implementation of a comprehensive school reform 
                      model that includes each of the components 
                      described in part F;
                          ``(ii) adopt policies and practices concerning 
                      the school's core academic subjects that have the 
                      greatest likelihood of ensuring that all groups of 
                      students specified in section 1111(b)(2)(C)(v) and 
                      enrolled in the school will meet the State's 
                      proficient level of achievement on the State 
                      academic assessment described in section 
                      1111(b)(3) not later than 12 years after the end 
                      of the 2001-2002 school year;
                          ``(iii) provide an assurance that the school 
                      will spend not less than 10 percent of the funds 
                      made available to the school under section 1113 
                      for each fiscal year that the school is in school 
                      improvement status, for the purpose of providing 
                      to the school's teachers and principal high-
                      quality professional development that--

[[Page 115 STAT. 1481]]

                                    ``(I) directly addresses the 
                                academic achievement problem that caused 
                                the school to be identified for school 
                                improvement;
                                    ``(II) meets the requirements for 
                                professional development activities 
                                under section 1119; and
                                    ``(III) is provided in a manner that 
                                affords increased opportunity for 
                                participating in that professional 
                                development;
                          ``(iv) specify how the funds described in 
                      clause (iii) will be used to remove the school 
                      from school improvement status;
                          ``(v) <<NOTE: Deadline.>>  establish specific 
                      annual, measurable objectives for continuous and 
                      substantial progress by each group of students 
                      specified in section 1111(b)(2)(C)(v) and enrolled 
                      in the school that will ensure that all such 
                      groups of students will, in accordance with 
                      adequate yearly progress as defined in section 
                      1111(b)(2), meet the State's proficient level of 
                      achievement on the State academic assessment 
                      described in section 1111(b)(3) not later than 12 
                      years after the end of the 2001-2002 school year;
                          ``(vi) describe how the school will provide 
                      written notice about the identification to parents 
                      of each student enrolled in such school, in a 
                      format and, to the extent practicable, in a 
                      language that the parents can understand;
                          ``(vii) specify the responsibilities of the 
                      school, the local educational agency, and the 
                      State educational agency serving the school under 
                      the plan, including the technical assistance to be 
                      provided by the local educational agency under 
                      paragraph (4) and the local educational agency's 
                      responsibilities under section 1120A;
                          ``(viii) include strategies to promote 
                      effective parental involvement in the school;
                          ``(ix) incorporate, as appropriate, activities 
                      before school, after school, during the summer, 
                      and during any extension of the school year; and
                          ``(x) incorporate a teacher mentoring program.
                    ``(B) Conditional approval.--The local educational 
                agency may condition approval of a school plan under 
                this paragraph on--
                          ``(i) inclusion of one or more of the 
                      corrective actions specified in paragraph 
                      (7)(C)(iv); or
                          ``(ii) feedback on the school improvement plan 
                      from parents and community leaders.
                    ``(C) <<NOTE: Deadline.>>  Plan implementation.--
                Except as provided in subparagraph (D), a school shall 
                implement the school plan (including a revised plan) 
                expeditiously, but not later than the beginning of the 
                next full school year following the identification under 
                paragraph (1).
                    ``(D) Plan approved during school year.--
                Notwithstanding subparagraph (C), if a plan is not 
                approved prior to the beginning of a school year, such 
                plan shall be implemented immediately upon approval.

[[Page 115 STAT. 1482]]

                    ``(E) Local educational agency approval.--The local 
                educational agency, within 45 days of receiving a school 
                plan, shall--
                          ``(i) <<NOTE: Establishment.>>  establish a 
                      peer review process to assist with review of the 
                      school plan; and
                          ``(ii) promptly review the school plan, work 
                      with the school as necessary, and approve the 
                      school plan if the plan meets the requirements of 
                      this paragraph.
            ``(4) Technical assistance.--
                    ``(A) In general.--For each school identified for 
                school improvement under paragraph (1), the local 
                educational agency serving the school shall ensure the 
                provision of technical assistance as the school develops 
                and implements the school plan under paragraph (3) 
                throughout the plan's duration.
                    ``(B) Specific assistance.--Such technical 
                assistance--
                          ``(i) shall include assistance in analyzing 
                      data from the assessments required under section 
                      1111(b)(3), and other examples of student work, to 
                      identify and address problems in instruction, and 
                      problems if any, in implementing the parental 
                      involvement requirements described in section 
                      1118, the professional development requirements 
                      described in section 1119, and the 
                      responsibilities of the school and local 
                      educational agency under the school plan, and to 
                      identify and address solutions to such problems;
                          ``(ii) shall include assistance in identifying 
                      and implementing professional development, 
                      instructional strategies, and methods of 
                      instruction that are based on scientifically based 
                      research and that have proven effective in 
                      addressing the specific instructional issues that 
                      caused the school to be identified for school 
                      improvement;
                          ``(iii) shall include assistance in analyzing 
                      and revising the school's budget so that the 
                      school's resources are more effectively allocated 
                      to the activities most likely to increase student 
                      academic achievement and to remove the school from 
                      school improvement status; and
                          ``(iv) may be provided--
                                    ``(I) by the local educational 
                                agency, through mechanisms authorized 
                                under section 1117; or
                                    ``(II) by the State educational 
                                agency, an institution of higher 
                                education (that is in full compliance 
                                with all the reporting provisions of 
                                title II of the Higher Education Act of 
                                1965), a private not-for-profit 
                                organization or for-profit organization, 
                                an educational service agency, or 
                                another entity with experience in 
                                helping schools improve academic 
                                achievement.
                    ``(C) Scientifically based research.--Technical 
                assistance provided under this section by a local 
                educational agency or an entity approved by that agency 
                shall be based on scientifically based research.
            ``(5) Failure to make adequate yearly progress after 
        identification.--In the case of any school served under this

[[Page 115 STAT. 1483]]

        part that fails to make adequate yearly progress, as set out in 
        the State's plan under section 1111(b)(2), by the end of the 
        first full school year after identification under paragraph (1), 
        the local educational agency serving such school--
                    ``(A) shall continue to provide all students 
                enrolled in the school with the option to transfer to 
                another public school served by the local educational 
                agency in accordance with subparagraphs (E) and (F);
                    ``(B) shall make supplemental educational services 
                available consistent with subsection (e)(1); and
                    ``(C) shall continue to provide technical 
                assistance.
            ``(6) Notice to parents.--A local educational agency shall 
        promptly provide to a parent or parents (in an understandable 
        and uniform format and, to the extent practicable, in a language 
        the parents can understand) of each student enrolled in an 
        elementary school or a secondary school identified for school 
        improvement under paragraph (1), for corrective action under 
        paragraph (7), or for restructuring under paragraph (8)--
                    ``(A) an explanation of what the identification 
                means, and how the school compares in terms of academic 
                achievement to other elementary schools or secondary 
                schools served by the local educational agency and the 
                State educational agency involved;
                    ``(B) the reasons for the identification;
                    ``(C) an explanation of what the school identified 
                for school improvement is doing to address the problem 
                of low achievement;
                    ``(D) an explanation of what the local educational 
                agency or State educational agency is doing to help the 
                school address the achievement problem;
                    ``(E) an explanation of how the parents can become 
                involved in addressing the academic issues that caused 
                the school to be identified for school improvement; and
                    ``(F) an explanation of the parents' option to 
                transfer their child to another public school under 
                paragraphs (1)(E), (5)(A), (7)(C)(i), (8)(A)(i), and 
                subsection (c)(10)(C)(vii) (with transportation provided 
                by the agency when required by paragraph (9)) or to 
                obtain supplemental educational services for the child, 
                in accordance with subsection (e).
            ``(7) Corrective action.--
                    ``(A) In general.--In this subsection, the term 
                `corrective action' means action, consistent with State 
                law, that--
                          ``(i) substantially and directly responds to--
                                    ``(I) the consistent academic 
                                failure of a school that caused the 
                                local educational agency to take such 
                                action; and
                                    ``(II) any underlying staffing, 
                                curriculum, or other problems in the 
                                school; and
                          ``(ii) is designed to increase substantially 
                      the likelihood that each group of students 
                      described in 1111(b)(2)(C) enrolled in the school 
                      identified for corrective action will meet or 
                      exceed the State's proficient levels of 
                      achievement on the State academic assessments 
                      described in section 1111(b)(3).

[[Page 115 STAT. 1484]]

                    ``(B) System.--In order to help students served 
                under this part meet challenging State student academic 
                achievement standards, each local educational agency 
                shall implement a system of corrective action in 
                accordance with subparagraphs (C) through (E).
                    ``(C) Role of local educational agency.--In the case 
                of any school served by a local educational agency under 
                this part that fails to make adequate yearly progress, 
                as defined by the State under section 1111(b)(2), by the 
                end of the second full school year after the 
                identification under paragraph (1), the local 
                educational agency shall--
                          ``(i) continue to provide all students 
                      enrolled in the school with the option to transfer 
                      to another public school served by the local 
                      educational agency, in accordance with paragraph 
                      (1)(E) and (F);
                          ``(ii) continue to provide technical 
                      assistance consistent with paragraph (4) while 
                      instituting any corrective action under clause 
                      (iv);
                          ``(iii) continue to make supplemental 
                      educational services available, in accordance with 
                      subsection (e), to children who remain in the 
                      school; and
                          ``(iv) identify the school for corrective 
                      action and take at least one of the following 
                      corrective actions:
                                    ``(I) Replace the school staff who 
                                are relevant to the failure to make 
                                adequate yearly progress.
                                    ``(II) Institute and fully implement 
                                a new curriculum, including providing 
                                appropriate professional development for 
                                all relevant staff, that is based on 
                                scientifically based research and offers 
                                substantial promise of improving 
                                educational achievement for low-
                                achieving students and enabling the 
                                school to make adequate yearly progress.
                                    ``(III) Significantly decrease 
                                management authority at the school 
                                level.
                                    ``(IV) Appoint an outside expert to 
                                advise the school on its progress toward 
                                making adequate yearly progress, based 
                                on its school plan under paragraph (3).
                                    ``(V) Extend the school year or 
                                school day for the school.
                                    ``(VI) Restructure the internal 
                                organizational structure of the school.
                    ``(D) Delay.--Notwithstanding any other provision of 
                this paragraph, the local educational agency may delay, 
                for a period not to exceed 1 year, implementation of the 
                requirements under paragraph (5), corrective action 
                under this paragraph, or restructuring under paragraph 
                (8) if the school makes adequate yearly progress for 1 
                year or if its failure to make adequate yearly progress 
                is due to exceptional or uncontrollable circumstances, 
                such as a natural disaster or a precipitous and 
                unforeseen decline in the financial resources of the 
                local educational agency or school. No such period shall 
                be taken into account in determining the number of 
                consecutive years of failure to make adequate yearly 
                progress.

[[Page 115 STAT. 1485]]

                    ``(E) Publication and dissemination.--The local 
                educational agency shall publish and disseminate 
                information regarding any corrective action the local 
                educational agency takes under this paragraph at a 
                school--
                          ``(i) to the public and to the parents of each 
                      student enrolled in the school subject to 
                      corrective action;
                          ``(ii) in an understandable and uniform format 
                      and, to the extent practicable, provided in a 
                      language that the parents can understand; and
                          ``(iii) through such means as the Internet, 
                      the media, and public agencies.
            ``(8) Restructuring.--
                    ``(A) Failure to make adequate yearly progress.--If, 
                after 1 full school year of corrective action under 
                paragraph (7), a school subject to such corrective 
                action continues to fail to make adequate yearly 
                progress, then the local educational agency shall--
                          ``(i) continue to provide all students 
                      enrolled in the school with the option to transfer 
                      to another public school served by the local 
                      educational agency, in accordance with paragraph 
                      (1)(E) and (F);
                          ``(ii) continue to make supplemental 
                      educational services available, in accordance with 
                      subsection (e), to children who remain in the 
                      school; and
                          ``(iii) prepare a plan and make necessary 
                      arrangements to carry out subparagraph (B).
                    ``(B) <<NOTE: Deadline.>>  Alternative governance.--
                Not later than the beginning of the school year 
                following the year in which the local educational agency 
                implements subparagraph (A), the local educational 
                agency shall implement one of the following alternative 
                governance arrangements for the school consistent with 
                State law:
                          ``(i) Reopening the school as a public charter 
                      school.
                          ``(ii) Replacing all or most of the school 
                      staff (which may include the principal) who are 
                      relevant to the failure to make adequate yearly 
                      progress.
                          ``(iii) Entering into a contract with an 
                      entity, such as a private management company, with 
                      a demonstrated record of effectiveness, to operate 
                      the public school.
                          ``(iv) Turning the operation of the school 
                      over to the State educational agency, if permitted 
                      under State law and agreed to by the State.
                          ``(v) Any other major restructuring of the 
                      school's governance arrangement that makes 
                      fundamental reforms, such as significant changes 
                      in the school's staffing and governance, to 
                      improve student academic achievement in the school 
                      and that has substantial promise of enabling the 
                      school to make adequate yearly progress as defined 
                      in the State plan under section 1111(b)(2). In the 
                      case of a rural local educational agency with a 
                      total of less than 600 students in average daily 
                      attendance at the schools that are served by the 
                      agency and all of whose schools have a School 
                      Locale Code of 7 or 8, as determined by the 
                      Secretary, the Secretary shall, at such agency's 
                      request, provide

[[Page 115 STAT. 1486]]

                      technical assistance to such agency for the 
                      purpose of implementing this clause.
                    ``(C) Prompt notice.--The local educational agency 
                shall--
                          ``(i) provide prompt notice to teachers and 
                      parents whenever subparagraph (A) or (B) applies; 
                      and
                          ``(ii) provide the teachers and parents with 
                      an adequate opportunity to--
                                    ``(I) comment before taking any 
                                action under those subparagraphs; and
                                    ``(II) participate in developing any 
                                plan under subparagraph (A)(iii).
            ``(9) Transportation.--In any case described in paragraph 
        (1)(E) for schools described in paragraphs (1)(A), (5), 
        (7)(C)(i), and (8)(A), and subsection (c)(10)(C)(vii), the local 
        educational agency shall provide, or shall pay for the provision 
        of, transportation for the student to the public school the 
        student attends.
            ``(10) Funds for transportation and supplemental educational 
        services.--
                    ``(A) In general.--Unless a lesser amount is needed 
                to comply with paragraph (9) and to satisfy all requests 
                for supplemental educational services under subsection 
                (e), a local educational agency shall spend an amount 
                equal to 20 percent of its allocation under subpart 2, 
                from which the agency shall spend--
                          ``(i) an amount equal to 5 percent of its 
                      allocation under subpart 2 to provide, or pay for, 
                      transportation under paragraph (9);
                          ``(ii) an amount equal to 5 percent of its 
                      allocation under subpart 2 to provide supplemental 
                      educational services under subsection (e); and
                          ``(iii) an amount equal to the remaining 10 
                      percent of its allocation under subpart 2 for 
                      transportation under paragraph (9), supplemental 
                      educational services under subsection (e), or 
                      both, as the agency determines.
                    ``(B) Total amount.--The total amount described in 
                subparagraph (A)(ii) is the maximum amount the local 
                educational agency shall be required to spend under this 
                part on supplemental educational services described in 
                subsection (e).
                    ``(C) Insufficient funds.--If the amount of funds 
                described in subparagraph (A)(ii) or (iii) and available 
                to provide services under this subsection is 
                insufficient to provide supplemental educational 
                services to each child whose parents request the 
                services, the local educational agency shall give 
                priority to providing the services to the lowest-
                achieving children.
                    ``(D) Prohibition.--A local educational agency shall 
                not, as a result of the application of this paragraph, 
                reduce by more than 15 percent the total amount made 
                available under section 1113(c) to a school described in 
                paragraph (7)(C) or (8)(A) of subsection (b).
            ``(11) Cooperative agreement.--In any case described in 
        paragraph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i), or subsection 
        (c)(10)(C)(vii) if all public schools served by the local 
        educational agency to which a child may transfer are identified 
        for school improvement, corrective action or restructuring, the 
        agency

[[Page 115 STAT. 1487]]

        shall, to the extent practicable, establish a cooperative 
        agreement with other local educational agencies in the area for 
        a transfer.
            ``(12) Duration.--If any school identified for school 
        improvement, corrective action, or restructuring makes adequate 
        yearly progress for two consecutive school years, the local 
        educational agency shall no longer subject the school to the 
        requirements of school improvement, corrective action, or 
        restructuring or identify the school for school improvement for 
        the succeeding school year.
            ``(13) Special rule.--A local educational agency shall 
        permit a child who transferred to another school under this 
        subsection to remain in that school until the child has 
        completed the highest grade in that school. The obligation of 
        the local educational agency to provide, or to provide for, 
        transportation for the child ends at the end of a school year if 
        the local educational agency determines that the school from 
        which the child transferred is no longer identified for school 
        improvement or subject to corrective action or restructuring.
            ``(14) State educational agency responsibilities.--The State 
        educational agency shall--
                    ``(A) make technical assistance under section 1117 
                available to schools identified for school improvement, 
                corrective action, or restructuring under this 
                subsection consistent with section 1117(a)(2);
                    ``(B) if the State educational agency determines 
                that a local educational agency failed to carry out its 
                responsibilities under this subsection, take such 
                corrective actions as the State educational agency 
                determines to be appropriate and in compliance with 
                State law;
                    ``(C) ensure that academic assessment results under 
                this part are provided to schools before any 
                identification of a school may take place under this 
                subsection; and
                    ``(D) for local educational agencies or schools 
                identified for improvement under this subsection, notify 
                the Secretary of major factors that were brought to the 
                attention of the State educational agency under section 
                1111(b)(9) that have significantly affected student 
                academic achievement.

    ``(c) State Review and Local Educational Agency Improvement.--
            ``(1) In general.--A State shall--
                    ``(A) annually review the progress of each local 
                educational agency receiving funds under this part to 
                determine whether schools receiving assistance under 
                this part are making adequate yearly progress as defined 
                in section 1111(b)(2) toward meeting the State's student 
                academic achievement standards and to determine if each 
                local educational agency is carrying out its 
                responsibilities under this section and sections 1117, 
                1118, and 1119; and
                    ``(B) publicize and disseminate to local educational 
                agencies, teachers and other staff, parents, students, 
                and the community the results of the State review, 
                including statistically sound disaggregated results, as 
                required by section 1111(b)(2).
            ``(2) Rewards.--In the case of a local educational agency 
        that, for 2 consecutive years, has exceeded adequate yearly 
        progress as defined in the State plan under section 1111(b)(2),

[[Page 115 STAT. 1488]]

        the State may make rewards of the kinds described under section 
        1117 to the agency.
            ``(3) Identification of local educational agency for 
        improvement.--A State shall identify for improvement any local 
        educational agency that, for 2 consecutive years, including the 
        period immediately prior to the date of enactment of the No 
        Child Left Behind Act of 2001, failed to make adequate yearly 
        progress as defined in the State's plan under section 
        1111(b)(2).
            ``(4) Targeted assistance schools.--When reviewing targeted 
        assistance schools served by a local educational agency, a State 
        educational agency may choose to review the progress of only the 
        students in such schools who are served, or are eligible for 
        services, under this part.
            ``(5) Opportunity to review and present evidence.--
                    ``(A) Review.--Before identifying a local 
                educational agency for improvement under paragraph (3) 
                or corrective action under paragraph (10), a State 
                educational agency shall provide the local educational 
                agency with an opportunity to review the data, including 
                academic assessment data, on which the proposed 
                identification is based.
                    ``(B) <<NOTE: Deadline.>>  Evidence.--If the local 
                educational agency believes that the proposed 
                identification is in error for statistical or other 
                substantive reasons, the agency may provide supporting 
                evidence to the State educational agency, which shall 
                consider the evidence before making a final 
                determination not later than 30 days after the State 
                educational agency provides the local educational agency 
                with the opportunity to review such data under 
                subparagraph (A).
            ``(6) Notification to parents.--The State educational agency 
        shall promptly provide to the parents (in a format and, to the 
        extent practicable, in a language the parents can understand) of 
        each student enrolled in a school served by a local educational 
        agency identified for improvement, the results of the review 
        under paragraph (1) and, if the agency is identified for 
        improvement, the reasons for that identification and how parents 
        can participate in upgrading the quality of the local 
        educational agency.
            ``(7) Local educational agency revisions.--
                    ``(A) <<NOTE: Deadline.>>  Plan.--Each local 
                educational agency identified under paragraph (3) shall, 
                not later than 3 months after being so identified, 
                develop or revise a local educational agency plan, in 
                consultation with parents, school staff, and others. 
                Such plan shall--
                          ``(i) incorporate scientifically based 
                      research strategies that strengthen the core 
                      academic program in schools served by the local 
                      educational agency;
                          ``(ii) identify actions that have the greatest 
                      likelihood of improving the achievement of 
                      participating children in meeting the State's 
                      student academic achievement standards;
                          ``(iii) address the professional development 
                      needs of the instructional staff serving the 
                      agency by committing to spend not less than 10 
                      percent of the funds received by the local 
                      educational agency under subpart 2 for each fiscal 
                      year in which the agency is identified

[[Page 115 STAT. 1489]]

                      for improvement for professional development 
                      (including funds reserved for professional 
                      development under subsection (b)(3)(A)(iii)), but 
                      excluding funds reserved for professional 
                      development under section 1119;
                          ``(iv) include specific measurable achievement 
                      goals and targets for each of the groups of 
                      students identified in the disaggregated data 
                      pursuant to section 1111(b)(2)(C)(v), consistent 
                      with adequate yearly progress as defined under 
                      section 1111(b)(2);
                          ``(v) address the fundamental teaching and 
                      learning needs in the schools of that agency, and 
                      the specific academic problems of low-achieving 
                      students, including a determination of why the 
                      local educational agency's prior plan failed to 
                      bring about increased student academic 
                      achievement;
                          ``(vi) incorporate, as appropriate, activities 
                      before school, after school, during the summer, 
                      and during an extension of the school year;
                          ``(vii) specify the responsibilities of the 
                      State educational agency and the local educational 
                      agency under the plan, including specifying the 
                      technical assistance to be provided by the State 
                      educational agency under paragraph (9) and the 
                      local educational agency's responsibilities under 
                      section 1120A; and
                          ``(viii) include strategies to promote 
                      effective parental involvement in the school.
                    ``(B) <<NOTE: Deadline.>>  Implementation.--The 
                local educational agency shall implement the plan 
                (including a revised plan) expeditiously, but not later 
                than the beginning of the next school year after the 
                school year in which the agency was identified for 
                improvement.
            ``(9) State educational agency responsibility.--
                    ``(A) Technical or other assistance.--For each local 
                educational agency identified under paragraph (3), the 
                State educational agency shall provide technical or 
                other assistance if requested, as authorized under 
                section 1117, to better enable the local educational 
                agency to--
                          ``(i) develop and implement the local 
                      educational agency's plan; and
                          ``(ii) work with schools needing improvement.
                    ``(B) Methods and strategies.--Technical assistance 
                provided under this section by the State educational 
                agency or an entity authorized by such agency shall be 
                supported by effective methods and instructional 
                strategies based on scientifically based research. Such 
                technical assistance shall address problems, if any, in 
                implementing the parental involvement activities 
                described in section 1118 and the professional 
                development activities described in section 1119.
            ``(10) Corrective action.--In order to help students served 
        under this part meet challenging State student academic 
        achievement standards, each State shall implement a system of 
        corrective action in accordance with the following:
                    ``(A) Definition.--As used in this paragraph, the 
                term `corrective action' means action, consistent with 
                State law, that--

[[Page 115 STAT. 1490]]

                          ``(i) substantially and directly responds to 
                      the consistent academic failure that caused the 
                      State to take such action and to any underlying 
                      staffing, curricular, or other problems in the 
                      agency; and
                          ``(ii) is designed to meet the goal of having 
                      all students served under this part achieve at the 
                      proficient and advanced student academic 
                      achievement levels.
                    ``(B) General requirements.--After providing 
                technical assistance under paragraph (9) and subject to 
                subparagraph (E), the State--
                          ``(i) may take corrective action at any time 
                      with respect to a local educational agency that 
                      has been identified under paragraph (3);
                          ``(ii) shall take corrective action with 
                      respect to any local educational agency that fails 
                      to make adequate yearly progress, as defined by 
                      the State, by the end of the second full school 
                      year after the identification of the agency under 
                      paragraph (3); and
                          ``(iii) shall continue to provide technical 
                      assistance while instituting any corrective action 
                      under clause (i) or (ii).
                    ``(C) Certain corrective actions required.--In the 
                case of a local educational agency identified for 
                corrective action, the State educational agency shall 
                take at least one of the following corrective actions:
                          ``(i) Deferring programmatic funds or reducing 
                      administrative funds.
                          ``(ii) Instituting and fully implementing a 
                      new curriculum that is based on State and local 
                      academic content and achievement standards, 
                      including providing appropriate professional 
                      development based on scientifically based research 
                      for all relevant staff, that offers substantial 
                      promise of improving educational achievement for 
                      low-achieving students.
                          ``(iii) Replacing the local educational agency 
                      personnel who are relevant to the failure to make 
                      adequate yearly progress.
                          ``(iv) Removing particular schools from the 
                      jurisdiction of the local educational agency and 
                      establishing alternative arrangements for public 
                      governance and supervision of such schools.
                          ``(v) Appointing, through the State 
                      educational agency, a receiver or trustee to 
                      administer the affairs of the local educational 
                      agency in place of the superintendent and school 
                      board.
                          ``(vi) Abolishing or restructuring the local 
                      educational agency.
                          ``(vii) Authorizing students to transfer from 
                      a school operated by the local educational agency 
                      to a higher-performing public school operated by 
                      another local educational agency in accordance 
                      with subsections (b)(1)(E) and (F), and providing 
                      to such students transportation (or the costs of 
                      transportation) to such schools consistent with 
                      subsection (b)(9), in conjunction with carrying 
                      out not less than one additional action described 
                      under this subparagraph.

[[Page 115 STAT. 1491]]

                    ``(D) <<NOTE: Notice. Deadline.>>  Hearing.--Prior 
                to implementing any corrective action under this 
                paragraph, the State educational agency shall provide 
                notice and a hearing to the affected local educational 
                agency, if State law provides for such notice and 
                hearing. The hearing shall take place not later than 45 
                days following the decision to implement corrective 
                action.
                    ``(E) <<NOTE: Publication.>>  Notice to parents.--
                The State educational agency shall publish, and 
                disseminate to parents and the public, information on 
                any corrective action the State educational agency takes 
                under this paragraph through such means as the Internet, 
                the media, and public agencies.
                    ``(F) Delay.--Notwithstanding subparagraph (B)(ii), 
                a State educational agency may delay, for a period not 
                to exceed 1 year, implementation of corrective action 
                under this paragraph if the local educational agency 
                makes adequate yearly progress for 1 year or its failure 
                to make adequate yearly progress is due to exceptional 
                or uncontrollable circumstances, such as a natural 
                disaster or a precipitous and unforeseen decline in the 
                financial resources of the local educational agency. No 
                such period shall be taken into account in determining 
                the number of consecutive years of failure to make 
                adequate yearly progress.
            ``(11) Special rule.--If a local educational agency makes 
        adequate yearly progress for two consecutive school years 
        beginning after the date of identification of the agency under 
        paragraph (3), the State educational agency need no longer 
        identify the local educational agency for improvement or subject 
        the local educational agency to corrective action for the 
        succeeding school year.

    ``(d) Construction.--Nothing in this section shall be construed to 
alter or otherwise affect the rights, remedies, and procedures afforded 
school or school district employees under Federal, State, or local laws 
(including applicable regulations or court orders) or under the terms of 
collective bargaining agreements, memoranda of understanding, or other 
agreements between such employees and their employers.
    ``(e) Supplemental Educational Services.--
            ``(1) Supplemental educational services.--In the case of any 
        school described in paragraph (5), (7), or (8) of subsection 
        (b), the local educational agency serving such school shall, 
        subject to this subsection, arrange for the provision of 
        supplemental educational services to eligible children in the 
        school from a provider with a demonstrated record of 
        effectiveness, that is selected by the parents and approved for 
        that purpose by the State educational agency in accordance with 
        reasonable criteria, consistent with paragraph (5), that the 
        State educational agency shall adopt.
            ``(2) Local educational agency responsibilities.--Each local 
        educational agency subject to this subsection shall--
                    ``(A) provide, at a minimum, annual notice to 
                parents (in an understandable and uniform format and, to 
                the extent practicable, in a language the parents can 
                understand) of--
                          ``(i) the availability of services under this 
                      subsection;

[[Page 115 STAT. 1492]]

                          ``(ii) the identity of approved providers of 
                      those services that are within the local 
                      educational agency or whose services are 
                      reasonably available in neighboring local 
                      educational agencies; and
                          ``(iii) a brief description of the services, 
                      qualifications, and demonstrated effectiveness of 
                      each such provider;
                    ``(B) if requested, assist parents in choosing a 
                provider from the list of approved providers maintained 
                by the State;
                    ``(C) apply fair and equitable procedures for 
                serving students if the number of spaces at approved 
                providers is not sufficient to serve all students; and
                    ``(D) not disclose to the public the identity of any 
                student who is eligible for, or receiving, supplemental 
                educational services under this subsection without the 
                written permission of the parents of the student.
            ``(3) Agreement.--In the case of the selection of an 
        approved provider by a parent, the local educational agency 
        shall enter into an agreement with such provider. Such agreement 
        shall--
                    ``(A) require the local educational agency to 
                develop, in consultation with parents (and the provider 
                chosen by the parents), a statement of specific 
                achievement goals for the student, how the student's 
                progress will be measured, and a timetable for improving 
                achievement that, in the case of a student with 
                disabilities, is consistent with the student's 
                individualized education program under section 614(d) of 
                the Individuals with Disabilities Education Act;
                    ``(B) describe how the student's parents and the 
                student's teacher or teachers will be regularly informed 
                of the student's progress;
                    ``(C) provide for the termination of such agreement 
                if the provider is unable to meet such goals and 
                timetables;
                    ``(D) contain provisions with respect to the making 
                of payments to the provider by the local educational 
                agency; and
                    ``(E) prohibit the provider from disclosing to the 
                public the identity of any student eligible for, or 
                receiving, supplemental educational services under this 
                subsection without the written permission of the parents 
                of such student.
            ``(4) State educational agency responsibilities.--A State 
        educational agency shall--
                    ``(A) in consultation with local educational 
                agencies, parents, teachers, and other interested 
                members of the public, promote maximum participation by 
                providers to ensure, to the extent practicable, that 
                parents have as many choices as possible;
                    ``(B) develop and apply objective criteria, 
                consistent with paragraph (5), to potential providers 
                that are based on a demonstrated record of effectiveness 
                in increasing the academic proficiency of students in 
                subjects relevant to meeting the State academic content 
                and student achievement standards adopted under section 
                1111(b)(1);
                    ``(C) <<NOTE: Records.>>  maintain an updated list 
                of approved providers across the State, by school 
                district, from which parents may select;

[[Page 115 STAT. 1493]]

                    ``(D) <<NOTE: Reports. Public information.>>  
                develop, implement, and publicly report on standards and 
                techniques for monitoring the quality and effectiveness 
                of the services offered by approved providers under this 
                subsection, and for withdrawing approval from providers 
                that fail, for 2 consecutive years, to contribute to 
                increasing the academic proficiency of students served 
                under this subsection as described in subparagraph (B); 
                and
                    ``(E) <<NOTE: Notice.>>  provide annual notice to 
                potential providers of supplemental educational services 
                of the opportunity to provide services under this 
                subsection and of the applicable procedures for 
                obtaining approval from the State educational agency to 
                be an approved provider of those services.
            ``(5) Criteria for providers.--In order for a provider to be 
        included on the State list under paragraph (4)(C), a provider 
        shall agree to carry out the following:
                    ``(A) Provide parents of children receiving 
                supplemental educational services under this subsection 
                and the appropriate local educational agency with 
                information on the progress of the children in 
                increasing achievement, in a format and, to the extent 
                practicable, a language that such parents can 
                understand.
                    ``(B) Ensure that instruction provided and content 
                used by the provider are consistent with the instruction 
                provided and content used by the local educational 
                agency and State, and are aligned with State student 
                academic achievement standards.
                    ``(C) Meet all applicable Federal, State, and local 
                health, safety, and civil rights laws.
                    ``(D) Ensure that all instruction and content under 
                this subsection are secular, neutral, and 
                nonideological.
            ``(6) Amounts for supplemental educational services.--The 
        amount that a local educational agency shall make available for 
        supplemental educational services for each child receiving those 
        services under this subsection shall be the lesser of--
                    ``(A) the amount of the agency's allocation under 
                subpart 2, divided by the number of children from 
                families below the poverty level counted under section 
                1124(c)(1)(A); or
                    ``(B) the actual costs of the supplemental 
                educational services received by the child.
            ``(7) Funds provided by state educational agency.--Each 
        State educational agency may use funds that the agency reserves 
        under this part, and part A of title V, to assist local 
        educational agencies that do not have sufficient funds to 
        provide services under this subsection for all eligible students 
        requesting such services.
            ``(8) Duration.--The local educational agency shall continue 
        to provide supplemental educational services to a child 
        receiving such services under this subsection until the end of 
        the school year in which such services were first received.
            ``(9) Prohibition.--Nothing contained in this subsection 
        shall permit the making of any payment for religious worship or 
        instruction.
            ``(10) Waiver.--

[[Page 115 STAT. 1494]]

                    ``(A) Requirement.--At the request of a local 
                educational agency, a State educational agency may 
                waive, in whole or in part, the requirement of this 
                subsection to provide supplemental educational services 
                if the State educational agency determines that--
                          ``(i) none of the providers of those services 
                      on the list approved by the State educational 
                      agency under paragraph (4)(C) makes those services 
                      available in the area served by the local 
                      educational agency or within a reasonable distance 
                      of that area; and
                          ``(ii) the local educational agency provides 
                      evidence that it is not able to provide those 
                      services.
                    ``(B) <<NOTE: Deadline.>>  Notification.--The State 
                educational agency shall notify the local educational 
                agency, within 30 days of receiving the local 
                educational agency's request for a waiver under 
                subparagraph (A), whether the request is approved or 
                disapproved and, if disapproved, the reasons for the 
                disapproval, in writing.
            ``(11) Special rule.--If State law prohibits a State 
        educational agency from carrying out one or more of its 
        responsibilities under paragraph (4) with respect to those who 
        provide, or seek approval to provide, supplemental educational 
        services, each local educational agency in the State shall carry 
        out those responsibilities with respect to its students who are 
        eligible for those services.
            ``(12) Definitions.--In this subsection--
                    ``(A) the term `eligible child' means a child from a 
                low-income family, as determined by the local 
                educational agency for purposes of allocating funds to 
                schools under section 1113(c)(1);
                    ``(B) the term `provider' means a non-profit entity, 
                a for-profit entity, or a local educational agency 
                that--
                          ``(i) has a demonstrated record of 
                      effectiveness in increasing student academic 
                      achievement;
                          ``(ii) is capable of providing supplemental 
                      educational services that are consistent with the 
                      instructional program of the local educational 
                      agency and the academic standards described under 
                      section 1111; and
                          ``(iii) is financially sound; and
                    ``(C) the term `supplemental educational services' 
                means tutoring and other supplemental academic 
                enrichment services that are--
                          ``(i) in addition to instruction provided 
                      during the school day; and
                          ``(ii) are of high quality, research-based, 
                      and specifically designed to increase the academic 
                      achievement of eligible children on the academic 
                      assessments required under section 1111 and attain 
                      proficiency in meeting the State's academic 
                      achievement standards.

    ``(f) Schools and LEAs Previously Identified for Improvement or 
Corrective Action.--
            ``(1) Schools.--
                    ``(A) School improvement.--
                          ``(i) Schools in school-improvement status 
                      before date of enactment.--Any school that was in 
                      the first year of school improvement status under

[[Page 115 STAT. 1495]]

                      this section on the day preceding the date of 
                      enactment of the No Child Left Behind Act of 2001 
                      (as this section was in effect on such day) shall 
                      be treated by the local educational agency as a 
                      school that is in the first year of school 
                      improvement status under paragraph (1).
                          ``(ii) Schools in school-improvement status 
                      for 2 or more years before date of enactment.--Any 
                      school that was in school improvement status under 
                      this section for two or more consecutive school 
                      years preceding the date of enactment of the No 
                      Child Left Behind Act of 2001 (as this section was 
                      in effect on such day) shall be treated by the 
                      local educational agency as a school described in 
                      subsection (b)(5).
                    ``(B) Corrective action.--Any school that was in 
                corrective action status under this section on the day 
                preceding the date of enactment of the No Child Left 
                Behind Act of 2001 (as this section was in effect on 
                such day) shall be treated by the local educational 
                agency as a school described in paragraph (7).
            ``(2) LEAs.--
                    ``(A) LEA improvement.--A State shall identify for 
                improvement under subsection (c)(3) any local 
                educational agency that was in improvement status under 
                this section as this section was in effect on the day 
                preceding the date of enactment of the No Child Left 
                Behind Act of 2001.
                    ``(B) Corrective action.--A State shall identify for 
                corrective action under subsection (c)(10) any local 
                educational agency that was in corrective action status 
                under this section as this section was in effect on the 
                day preceding the date of enactment of the No Child Left 
                Behind Act of 2001.
                    ``(C) <<NOTE: Deadline.>>  Special rule.--For the 
                schools and other local educational agencies described 
                under paragraphs (1) and (2), as required, the State 
                shall ensure that public school choice in accordance 
                with subparagraphs (b)(1)(E) and (F) and supplemental 
                education services in accordance with subsection (e) are 
                provided not later than the first day of the 2002-2003 
                school year.
                    ``(D) Transition.--With respect to a determination 
                that a local educational agency has for 2 consecutive 
                years failed to make adequate yearly progress as defined 
                in the State plan under section 1111(b)(2), such 
                determination shall include in such 2-year period any 
                continuous period of time immediately preceding the date 
                of enactment of the No Child Left Behind Act of 2001 
                during which the agency has failed to make such 
                progress.

    ``(g) Schools Funded by the Bureau of Indian Affairs.--
            ``(1) Adequate yearly progress for bureau funded schools.--
                    ``(A) Development of definition.--
                          ``(i) Definition.--The Secretary of the 
                      Interior, in consultation with the Secretary if 
                      the Secretary of Interior requests the 
                      consultation, using the process set out in section 
                      1138(b) of the Education Amendments of 1978, shall 
                      define adequate yearly progress,

[[Page 115 STAT. 1496]]

                      consistent with section 1111(b), for the schools 
                      funded by the Bureau of Indian Affairs on a 
                      regional or tribal basis, as appropriate, taking 
                      into account the unique circumstances and needs of 
                      such schools and the students served by such 
                      schools.
                          ``(ii) Use of definition.--The Secretary of 
                      the Interior, consistent with clause (i), may use 
                      the definition of adequate yearly progress that 
                      the State in which the school that is funded by 
                      the Bureau is located uses consistent with section 
                      1111(b), or in the case of schools that are 
                      located in more than one State, the Secretary of 
                      the Interior may use whichever State definition of 
                      adequate yearly progress that best meets the 
                      unique circumstances and needs of such school or 
                      schools and the students the schools serve.
                    ``(B) Waiver.--The tribal governing body or school 
                board of a school funded by the Bureau of Indian Affairs 
                may waive, in part or in whole, the definition of 
                adequate yearly progress established pursuant to 
                paragraph (A) where such definition is determined by 
                such body or school board to be 
                inappropriate. <<NOTE: Deadline.>>  If such definition 
                is waived, the tribal governing body or school board 
                shall, within 60 days thereafter, submit to the 
                Secretary of Interior a proposal for an alternative 
                definition of adequate yearly progress, consistent with 
                section 1111(b), that takes into account the unique 
                circumstances and needs of such school or schools and 
                the students served. The Secretary of the Interior, in 
                consultation with the Secretary if the Secretary of 
                Interior requests the consultation, shall approve such 
                alternative definition unless the Secretary determines 
                that the definition does not meet the requirements of 
                section 1111(b), taking into account the unique 
                circumstances and needs of such school or schools and 
                the students served.
                    ``(C) Technical assistance.--The Secretary of 
                Interior shall, in consultation with the Secretary if 
                the Secretary of Interior requests the consultation, 
                either directly or through a contract, provide technical 
                assistance, upon request, to a tribal governing body or 
                school board of a school funded by the Bureau of Indian 
                Affairs that seeks to develop an alternative definition 
                of adequate yearly progress.
            ``(2) Accountability for bia schools.--For the purposes of 
        this section, schools funded by the Bureau of Indian Affairs 
        shall be considered schools subject to subsection (b), as 
        specifically provided for in this subsection, except that such 
        schools shall not be subject to subsection (c), or the 
        requirements to provide public school choice and supplemental 
        educational services under subsections (b) and (e).
            ``(3) School improvement for bureau schools.--
                    ``(A) Contract and grant schools.--For a school 
                funded by the Bureau of Indian Affairs which is operated 
                under a contract issued by the Secretary of the Interior 
                pursuant to the Indian Self-Determination Act (25 U.S.C. 
                450 et seq.) or under a grant issued by the Secretary of 
                the Interior pursuant to the Tribally Controlled Schools 
                Act of 1988 (25 U.S.C. 2501 et seq.), the school board

[[Page 115 STAT. 1497]]

                of such school shall be responsible for meeting the 
                requirements of subsection (b) relating to development 
                and implementation of any school improvement plan as 
                described in subsections (b)(1) through (b)(3), and 
                subsection (b)(5), other than subsection (b)(1)(E). The 
                Bureau of Indian Affairs shall be responsible for 
                meeting the requirements of subsection (b)(4) relating 
                to technical assistance.
                    ``(B) Bureau operated schools.--For schools operated 
                by the Bureau of Indian Affairs, the Bureau shall be 
                responsible for meeting the requirements of subsection 
                (b) relating to development and implementation of any 
                school improvement plan as described in subsections 
                (b)(1) through (b)(5), other than subsection (b)(1)(E).
            ``(4) Corrective action and restructuring for bureau-funded 
        schools.--
                    ``(A) Contract and grant schools.--For a school 
                funded by the Bureau of Indian Affairs which is operated 
                under a contract issued by the Secretary of the Interior 
                pursuant to the Indian Self-Determination Act (25 U.S.C. 
                450 et seq.) or under a grant issued by the Secretary of 
                the Interior pursuant to the Tribally Controlled Schools 
                Act of 1988 (25 U.S.C. 2501 et seq.), the school board 
                of such school shall be responsible for meeting the 
                requirements of subsection (b) relating to corrective 
                action and restructuring as described in subsection 
                (b)(7) and (b)(8). Any action taken by such school board 
                under subsection (b)(7) or (b)(8) shall take into 
                account the unique circumstances and structure of the 
                Bureau of Indian Affairs-funded school system and the 
                laws governing that system.
                    ``(B) Bureau operated schools.--For schools operated 
                by the Bureau of Indian Affairs, the Bureau shall be 
                responsible for meeting the requirements of subsection 
                (b) relating to corrective action and restructuring as 
                described in subsection (b)(7) and (b)(8). Any action 
                taken by the Bureau under subsection (b)(7) or (b)(8) 
                shall take into account the unique circumstances and 
                structure of the Bureau of Indian Affairs-funded school 
                system and the laws governing that system.
            ``(5) Annual report.--On an annual basis, the Secretary of 
        the Interior shall report to the Secretary of Education and to 
        the appropriate committees of Congress regarding any schools 
        funded by the Bureau of Indian Affairs which have been 
        identified for school improvement. Such report shall include--
                    ``(A) the identity of each school;
                    ``(B) a statement from each affected school board 
                regarding the factors that lead to such identification; 
                and
                    ``(C) an analysis by the Secretary of the Interior, 
                in consultation with the Secretary if the Secretary of 
                Interior requests the consultation, as to whether 
                sufficient resources were available to enable such 
                school to achieve adequate yearly progress.

    ``(h) Other Agencies.--After receiving the notice described in 
subsection (b)(14)(D), the Secretary may notify, to the extent

[[Page 115 STAT. 1498]]

feasible and necessary as determined by the Secretary, other relevant 
Federal agencies regarding the major factors that were determined by the 
State educational agency to have significantly affected student academic 
achievement.

``SEC. 1117. <<NOTE: 20 USC 6317.>>  SCHOOL SUPPORT AND RECOGNITION.

    ``(a) System for Support.--
            ``(1) In general.--Each State shall establish a statewide 
        system of intensive and sustained support and improvement for 
        local educational agencies and schools receiving funds under 
        this part, in order to increase the opportunity for all students 
        served by those agencies and schools to meet the State's 
        academic content standards and student academic achievement 
        standards.
            ``(2) Priorities.--In carrying out this subsection, a State 
        shall--
                    ``(A) first, provide support and assistance to local 
                educational agencies with schools subject to corrective 
                action under section 1116 and assist those schools, in 
                accordance with section 1116(b)(11), for which a local 
                educational agency has failed to carry out its 
                responsibilities under paragraphs (7) and (8) of section 
                1116(b);
                    ``(B) second, provide support and assistance to 
                other local educational agencies with schools identified 
                as in need of improvement under section 1116(b); and
                    ``(C) third, provide support and assistance to other 
                local educational agencies and schools participating 
                under this part that need that support and assistance in 
                order to achieve the purpose of this part.
            ``(3) Regional centers.--Such a statewide system shall, to 
        the extent practicable, work with and receive support and 
        assistance from the comprehensive regional technical assistance 
        centers and the regional educational laboratories under section 
        941(h) of the Educational Research, Development, Dissemination, 
        and Improvement Act of 1994, or other providers of technical 
        assistance.
            ``(4) Statewide system.--
                    ``(A) In order to achieve the purpose described in 
                paragraph (1), the statewide system shall include, at a 
                minimum, the following approaches:
                          ``(i) Establishing school support teams in 
                      accordance with subparagraph (C) for assignment 
                      to, and working in, schools in the State that are 
                      described in paragraph (2).
                          ``(ii) Providing such support as the State 
                      educational agency determines necessary and 
                      available in order to ensure the effectiveness of 
                      such teams.
                          ``(iii) Designating and using distinguished 
                      teachers and principals who are chosen from 
                      schools served under this part that have been 
                      especially successful in improving academic 
                      achievement.
                          ``(iv) Devising additional approaches to 
                      providing the assistance described in paragraph 
                      (1), such as providing assistance through 
                      institutions of higher education and educational 
                      service agencies or other local consortia, and 
                      private providers of scientifically based 
                      technical assistance.

[[Page 115 STAT. 1499]]

                    ``(B) Priority.--The State educational agency shall 
                give priority to the approach described in clause (i) of 
                subparagraph (A).
            ``(5) School support teams.--
                    ``(A) Composition.--Each school support team 
                established under this section shall be composed of 
                persons knowledgeable about scientifically based 
                research and practice on teaching and learning and about 
                successful schoolwide projects, school reform, and 
                improving educational opportunities for low-achieving 
                students, including--
                          ``(i) highly qualified or distinguished 
                      teachers and principals;
                          ``(ii) pupil services personnel;
                          ``(iii) parents;
                          ``(iv) representatives of institutions of 
                      higher education;
                          ``(v) representatives of regional educational 
                      laboratories or comprehensive regional technical 
                      assistance centers;
                          ``(vi) representatives of outside consultant 
                      groups; or
                          ``(vii) other individuals as the State 
                      educational agency, in consultation with the local 
                      educational agency, may determine appropriate.
                    ``(B) Functions.--Each school support team assigned 
                to a school under this section shall--
                          ``(i) review and analyze all facets of the 
                      school's operation, including the design and 
                      operation of the instructional program, and assist 
                      the school in developing recommendations for 
                      improving student performance in that school;
                          ``(ii) collaborate with parents and school 
                      staff and the local educational agency serving the 
                      school in the design, implementation, and 
                      monitoring of a plan that, if fully implemented, 
                      can reasonably be expected to improve student 
                      performance and help the school meet its goals for 
                      improvement, including adequate yearly progress 
                      under section 1111(b)(2)(B);
                          ``(iii) evaluate, at least semiannually, the 
                      effectiveness of school personnel assigned to the 
                      school, including identifying outstanding teachers 
                      and principals, and make findings and 
                      recommendations to the school, the local 
                      educational agency, and, where appropriate, the 
                      State educational agency; and
                          ``(iv) make additional recommendations as the 
                      school implements the plan described in clause 
                      (ii) to the local educational agency and the State 
                      educational agency concerning additional 
                      assistance that is needed by the school or the 
                      school support team.
                    ``(C) Continuation of assistance.--After one school 
                year, from the beginning of the activities, such school 
                support team, in consultation with the local educational 
                agency, may recommend that the school support team 
                continue to provide assistance to the school, or that 
                the local educational agency or the State educational 
                agency, as

[[Page 115 STAT. 1500]]

                appropriate, take alternative actions with regard to the 
                school.

    ``(b) State Recognition.--
            ``(1) Academic achievement awards program.--
                    ``(A) In general.--Each State receiving a grant 
                under this part--
                          ``(i) shall establish a program for making 
                      academic achievement awards to recognize schools 
                      that meet the criteria described in subparagraph 
                      (B); and
                          ``(ii) as appropriate and as funds are 
                      available under subsection (c)(2)(A), may 
                      financially reward schools served under this part 
                      that meet the criteria described in clause (ii).
                    ``(B) Criteria.--The criteria referred to in 
                subparagraph (A) are that a school--
                          ``(i) significantly closed the achievement gap 
                      between the groups of students described in 
                      section 1111(b)(2); or
                          ``(ii) exceeded their adequate yearly 
                      progress, consistent with section 1111(b)(2), for 
                      2 or more consecutive years.
            ``(2) Distinguished schools.--Of those schools meeting the 
        criteria described in paragraph (2), each State shall designate 
        as distinguished schools those schools that have made the 
        greatest gains in closing the achievement gap as described in 
        subparagraph (B)(i) or exceeding adequate yearly progress as 
        described in subparagraph (B)(ii). Such distinguished schools 
        may serve as models for and provide support to other schools, 
        especially schools identified for improvement under section 
        1116, to assist such schools in meeting the State's academic 
        content standards and student academic achievement standards.
            ``(3) Awards to teachers.--A State program under paragraph 
        (1) may also recognize and provide financial awards to teachers 
        teaching in a school described in such paragraph that 
        consistently makes significant gains in academic achievement in 
        the areas in which the teacher provides instruction, or to 
        teachers or principals designated as distinguished under 
        subsection (a)(4)(A)(iii).

    ``(c) Funding.--
            ``(1) In general.--Each State--
                    ``(A) shall use funds reserved under section 1003(a) 
                and may use funds made available under section 1003(g) 
                for the approaches described under subsection (a)(4)(A); 
                and
                    ``(B) shall use State administrative funds 
                authorized under section 1004(a) to establish the 
                statewide system of support described under subsection 
                (a).
            ``(2) Reservations of funds by state.--
                    ``(A) Awards program.--For the purpose of carrying 
                out subsection (b)(1), each State receiving a grant 
                under this part may reserve, from the amount (if any) by 
                which the funds received by the State under subpart 2 
                for a fiscal year exceed the amount received by the 
                State under that subpart for the preceding fiscal year, 
                not more than 5 percent of such excess amount.

[[Page 115 STAT. 1501]]

                    ``(B) Teacher awards.--For the purpose of carrying 
                out subsection (b)(3), a State educational agency may 
                reserve such funds as necessary from funds made 
                available under section 2113.
            ``(3) Use within 3 years.--Notwithstanding any other 
        provision of law, the amount reserved under subparagraph (A) by 
        a State for each fiscal year shall remain available to the State 
        until expended for a period not exceeding 3 years receipt of 
        funds.
            ``(4) Special allocation rule for schools in high-poverty 
        areas.--
                    ``(A) In general.--Each State shall distribute not 
                less than 75 percent of any amount reserved under 
                paragraph (2)(A) for each fiscal year to schools 
                described in subparagraph (B), or to teachers in those 
                schools consistent with subsection (b)(3).
                    ``(B) School described.--A school described in 
                subparagraph (A) is a school whose student population is 
                in the highest quartile of schools statewide in terms of 
                the percentage of children from low income families.

``SEC. 1118. PARENTAL INVOLVEMENT. <<NOTE: 20 USC 6318.>> 

    ``(a) Local Educational Agency Policy.--
            ``(1) In general.--A local educational agency may receive 
        funds under this part only if such agency implements programs, 
        activities, and procedures for the involvement of parents in 
        programs assisted under this part consistent with this section. 
        Such programs, activities, and procedures shall be planned and 
        implemented with meaningful consultation with parents of 
        participating children.
            ``(2) Written policy.--Each local educational agency that 
        receives funds under this part shall develop jointly with, agree 
        on with, and distribute to, parents of participating children a 
        written parent involvement policy. The policy shall be 
        incorporated into the local educational agency's plan developed 
        under section 1112, establish the agency's expectations for 
        parent involvement, and describe how the agency will--
                    ``(A) involve parents in the joint development of 
                the plan under section 1112, and the process of school 
                review and improvement under section 1116;
                    ``(B) provide the coordination, technical 
                assistance, and other support necessary to assist 
                participating schools in planning and implementing 
                effective parent involvement activities to improve 
                student academic achievement and school performance;
                    ``(C) build the schools' and parents' capacity for 
                strong parental involvement as described in subsection 
                (e);
                    ``(D) coordinate and integrate parental involvement 
                strategies under this part with parental involvement 
                strategies under other programs, such as the Head Start 
                program, Reading First program, Early Reading First 
                program, Even Start program, Parents as Teachers 
                program, and Home Instruction Program for Preschool 
                Youngsters, and State-run preschool programs;
                    ``(E) conduct, with the involvement of parents, an 
                annual evaluation of the content and effectiveness of 
                the parental involvement policy in improving the 
                academic

[[Page 115 STAT. 1502]]

                quality of the schools served under this part, including 
                identifying barriers to greater participation by parents 
                in activities authorized by this section (with 
                particular attention to parents who are economically 
                disadvantaged, are disabled, have limited English 
                proficiency, have limited literacy, or are of any racial 
                or ethnic minority background), and use the findings of 
                such evaluation to design strategies for more effective 
                parental involvement, and to revise, if necessary, the 
                parental involvement policies described in this section; 
                and
                    ``(F) involve parents in the activities of the 
                schools served under this part.
            ``(3) Reservation.--
                    ``(A) In general.--Each local educational agency 
                shall reserve not less than 1 percent of such agency's 
                allocation under subpart 2 of this part to carry out 
                this section, including promoting family literacy and 
                parenting skills, except that this paragraph shall not 
                apply if 1 percent of such agency's allocation under 
                subpart 2 of this part for the fiscal year for which the 
                determination is made is $5,000 or less.
                    ``(B) Parental input.--Parents of children receiving 
                services under this part shall be involved in the 
                decisions regarding how funds reserved under 
                subparagraph (A) are allotted for parental involvement 
                activities.
                    ``(C) Distribution of funds.--Not less than 95 
                percent of the funds reserved under subparagraph (A) 
                shall be distributed to schools served under this part.

    ``(b) School Parental Involvement Policy.--
            ``(1) In general.--Each school served under this part shall 
        jointly develop with, and distribute to, parents of 
        participating children a written parental involvement policy, 
        agreed on by such parents, that shall describe the means for 
        carrying out the requirements of subsections (c) through 
        (f). <<NOTE: Notification.>>  Parents shall be notified of the 
        policy in an understandable and uniform format and, to the 
        extent practicable, provided in a language the parents can 
        understand. <<NOTE: Public information.>>  Such policy shall be 
        made available to the local community and updated periodically 
        to meet the changing needs of parents and the school.
            ``(2) Special rule.--If the school has a parental 
        involvement policy that applies to all parents, such school may 
        amend that policy, if necessary, to meet the requirements of 
        this subsection.
            ``(3) Amendment.--If the local educational agency involved 
        has a school district-level parental involvement policy that 
        applies to all parents, such agency may amend that policy, if 
        necessary, to meet the requirements of this subsection.
            ``(4) Parental comments.--If the plan under section 1112 is 
        not satisfactory to the parents of participating children, the 
        local educational agency shall submit any parent comments with 
        such plan when such local educational agency submits the plan to 
        the State.

    ``(c) Policy Involvement.--Each school served under this part 
shall--
            ``(1) convene an annual meeting, at a convenient time, to 
        which all parents of participating children shall be invited and 
        encouraged to attend, to inform parents of their school's

[[Page 115 STAT. 1503]]

        participation under this part and to explain the requirements of 
        this part, and the right of the parents to be involved;
            ``(2) offer a flexible number of meetings, such as meetings 
        in the morning or evening, and may provide, with funds provided 
        under this part, transportation, child care, or home visits, as 
        such services relate to parental involvement;
            ``(3) involve parents, in an organized, ongoing, and timely 
        way, in the planning, review, and improvement of programs under 
        this part, including the planning, review, and improvement of 
        the school parental involvement policy and the joint development 
        of the schoolwide program plan under section 1114(b)(2), except 
        that if a school has in place a process for involving parents in 
        the joint planning and design of the school's programs, the 
        school may use that process, if such process includes an 
        adequate representation of parents of participating children;
            ``(4) provide parents of participating children--
                    ``(A) timely information about programs under this 
                part;
                    ``(B) a description and explanation of the 
                curriculum in use at the school, the forms of academic 
                assessment used to measure student progress, and the 
                proficiency levels students are expected to meet; and
                    ``(C) if requested by parents, opportunities for 
                regular meetings to formulate suggestions and to 
                participate, as appropriate, in decisions relating to 
                the education of their children, and respond to any such 
                suggestions as soon as practicably possible; and
            ``(5) if the schoolwide program plan under section 
        1114(b)(2) is not satisfactory to the parents of participating 
        children, submit any parent comments on the plan when the school 
        makes the plan available to the local educational agency.

    ``(d) Shared Responsibilities for High Student Academic 
Achievement.--As a component of the school-level parental involvement 
policy developed under subsection (b), each school served under this 
part shall jointly develop with parents for all children served under 
this part a school-parent compact that outlines how parents, the entire 
school staff, and students will share the responsibility for improved 
student academic achievement and the means by which the school and 
parents will build and develop a partnership to help children achieve 
the State's high standards. Such compact shall--
            ``(1) describe the school's responsibility to provide high-
        quality curriculum and instruction in a supportive and effective 
        learning environment that enables the children served under this 
        part to meet the State's student academic achievement standards, 
        and the ways in which each parent will be responsible for 
        supporting their children's learning, such as monitoring 
        attendance, homework completion, and television watching; 
        volunteering in their child's classroom; and participating, as 
        appropriate, in decisions relating to the education of their 
        children and positive use of extracurricular time; and
            ``(2) address the importance of communication between 
        teachers and parents on an ongoing basis through, at a minimum--

[[Page 115 STAT. 1504]]

                    ``(A) parent-teacher conferences in elementary 
                schools, at least annually, during which the compact 
                shall be discussed as the compact relates to the 
                individual child's achievement;
                    ``(B) frequent reports to parents on their 
                children's progress; and
                    ``(C) reasonable access to staff, opportunities to 
                volunteer and participate in their child's class, and 
                observation of classroom activities.

    ``(e) Building Capacity for Involvement.--To ensure effective 
involvement of parents and to support a partnership among the school 
involved, parents, and the community to improve student academic 
achievement, each school and local educational agency assisted under 
this part--
            ``(1) shall provide assistance to parents of children served 
        by the school or local educational agency, as appropriate, in 
        understanding such topics as the State's academic content 
        standards and State student academic achievement standards, 
        State and local academic assessments, the requirements of this 
        part, and how to monitor a child's progress and work with 
        educators to improve the achievement of their children;
            ``(2) shall provide materials and training to help parents 
        to work with their children to improve their children's 
        achievement, such as literacy training and using technology, as 
        appropriate, to foster parental involvement;
            ``(3) shall educate teachers, pupil services personnel, 
        principals, and other staff, with the assistance of parents, in 
        the value and utility of contributions of parents, and in how to 
        reach out to, communicate with, and work with parents as equal 
        partners, implement and coordinate parent programs, and build 
        ties between parents and the school;
            ``(4) shall, to the extent feasible and appropriate, 
        coordinate and integrate parent involvement programs and 
        activities with Head Start, Reading First, Early Reading First, 
        Even Start, the Home Instruction Programs for Preschool 
        Youngsters, the Parents as Teachers Program, and public 
        preschool and other programs, and conduct other activities, such 
        as parent resource centers, that encourage and support parents 
        in more fully participating in the education of their children;
            ``(5) shall ensure that information related to school and 
        parent programs, meetings, and other activities is sent to the 
        parents of participating children in a format and, to the extent 
        practicable, in a language the parents can understand;
            ``(6) may involve parents in the development of training for 
        teachers, principals, and other educators to improve the 
        effectiveness of such training;
            ``(7) may provide necessary literacy training from funds 
        received under this part if the local educational agency has 
        exhausted all other reasonably available sources of funding for 
        such training;
            ``(8) may pay reasonable and necessary expenses associated 
        with local parental involvement activities, including 
        transportation and child care costs, to enable parents to 
        participate in school-related meetings and training sessions;
            ``(9) may train parents to enhance the involvement of other 
        parents;

[[Page 115 STAT. 1505]]

            ``(10) may arrange school meetings at a variety of times, or 
        conduct in-home conferences between teachers or other educators, 
        who work directly with participating children, with parents who 
        are unable to attend such conferences at school, in order to 
        maximize parental involvement and participation;
            ``(11) may adopt and implement model approaches to improving 
        parental involvement;
            ``(12) may establish a districtwide parent advisory council 
        to provide advice on all matters related to parental involvement 
        in programs supported under this section;
            ``(13) may develop appropriate roles for community-based 
        organizations and businesses in parent involvement activities; 
        and
            ``(14) shall provide such other reasonable support for 
        parental involvement activities under this section as parents 
        may request.

    ``(f) Accessibility.--In carrying out the parental involvement 
requirements of this part, local educational agencies and schools, to 
the extent practicable, shall provide full opportunities for the 
participation of parents with limited English proficiency, parents with 
disabilities, and parents of migratory children, including providing 
information and school reports required under section 1111 in a format 
and, to the extent practicable, in a language such parents understand.
    ``(g) Information From Parental Information and Resource Centers.--
In a State where a parental information and resource center is 
established to provide training, information, and support to parents and 
individuals who work with local parents, local educational agencies, and 
schools receiving assistance under this part, each local educational 
agency or school that receives assistance under this part and is located 
in the State shall assist parents and parental organizations by 
informing such parents and organizations of the existence and purpose of 
such centers.
    ``(h) Review.--The State educational agency shall review the local 
educational agency's parental involvement policies and practices to 
determine if the policies and practices meet the requirements of this 
section.

``SEC. 1119. <<NOTE: 20 USC 6319.>>  QUALIFICATIONS FOR TEACHERS AND 
            PARAPROFESSIONALS.

    ``(a) Teacher Qualifications and Measurable Objectives.--
            ``(1) In general.--Beginning with the first day of the first 
        school year after the date of enactment of the No Child Left 
        Behind Act of 2001, each local educational agency receiving 
        assistance under this part shall ensure that all teachers hired 
        after such day and teaching in a program supported with funds 
        under this part are highly qualified.
            ``(2) State plan.--As part of the plan described in section 
        1111, each State educational agency receiving assistance under 
        this part shall develop a plan to ensure that all teachers 
        teaching in core academic subjects within the State are highly 
        qualified not later than the end of the 2005-2006 school year. 
        Such plan shall establish annual measurable objectives for each 
        local educational agency and school that, at a minimum--
                    ``(A) <<NOTE: Deadline.>>  shall include an annual 
                increase in the percentage of highly qualified teachers 
                at each local educational agency and school, to ensure 
                that all teachers teaching in core

[[Page 115 STAT. 1506]]

                academic subjects in each public elementary school and 
                secondary school are highly qualified not later than the 
                end of the 2005-2006 school year;
                    ``(B) shall include an annual increase in the 
                percentage of teachers who are receiving high-quality 
                professional development to enable such teachers to 
                become highly qualified and successful classroom 
                teachers; and
                    ``(C) may include such other measures as the State 
                educational agency determines to be appropriate to 
                increase teacher qualifications.
            ``(3) <<NOTE: Deadline.>>  Local plan.--As part of the plan 
        described in section 1112, each local educational agency 
        receiving assistance under this part shall develop a plan to 
        ensure that all teachers teaching within the school district 
        served by the local educational agency are highly qualified not 
        later than the end of the 2005-2006 school year.

    ``(b) <<NOTE: Deadlines.>>  Reports.--
            ``(1) Annual state and local reports.--
                    ``(A) Local reports.--Each State educational agency 
                described in subsection (a)(2) shall require each local 
                educational agency receiving funds under this part to 
                publicly report, each year, beginning with the 2002-2003 
                school year, the annual progress of the local 
                educational agency as a whole and of each of the schools 
                served by the agency, in meeting the measurable 
                objectives described in subsection (a)(2).
                    ``(B) State reports.--Each State educational agency 
                receiving assistance under this part shall prepare and 
                submit each year, beginning with the 2002-2003 school 
                year, a report to the Secretary, describing the State 
                educational agency's progress in meeting the measurable 
                objectives described in subsection (a)(2).
                    ``(C) Information from other reports.--A State 
                educational agency or local educational agency may 
                submit information from the reports described in section 
                1111(h) for the purposes of this subsection, if such 
                report is modified, as may be necessary, to contain the 
                information required by this subsection, and may submit 
                such information as a part of the reports required under 
                section 1111(h).
            ``(2) Annual reports by the secretary.--Each year, beginning 
        with the 2002-2003 school year, the Secretary shall publicly 
        report the annual progress of State educational agencies, local 
        educational agencies, and schools, in meeting the measurable 
        objectives described in subsection (a)(2).

    ``(c) New Paraprofessionals.--
            ``(1) In general.--Each local educational agency receiving 
        assistance under this part shall ensure that all 
        paraprofessionals hired after the date of enactment of the No 
        Child Left Behind Act of 2001 and working in a program supported 
        with funds under this part shall have--
                    ``(A) completed at least 2 years of study at an 
                institution of higher education;
                    ``(B) obtained an associate's (or higher) degree; or
                    ``(C) met a rigorous standard of quality and can 
                demonstrate, through a formal State or local academic 
                assessment--

[[Page 115 STAT. 1507]]

                          ``(i) knowledge of, and the ability to assist 
                      in instructing, reading, writing, and mathematics; 
                      or
                          ``(ii) knowledge of, and the ability to assist 
                      in instructing, reading readiness, writing 
                      readiness, and mathematics readiness, as 
                      appropriate.
            ``(2) Clarification.--The receipt of a secondary school 
        diploma (or its recognized equivalent) shall be necessary but 
        not sufficient to satisfy the requirements of paragraph (1)(C).

    ``(d) <<NOTE: Deadline.>>  Existing Paraprofessionals.--Each local 
educational agency receiving assistance under this part shall ensure 
that all paraprofessionals hired before the date of enactment of the No 
Child Left Behind Act of 2001, and working in a program supported with 
funds under this part shall, not later than 4 years after the date of 
enactment satisfy the requirements of subsection (c).

    ``(e) Exceptions for Translation and Parental Involvement 
Activities.--Subsections (c) and (d) shall not apply to a 
paraprofessional--
            ``(1) who is proficient in English and a language other than 
        English and who provides services primarily to enhance the 
        participation of children in programs under this part by acting 
        as a translator; or
            ``(2) whose duties consist solely of conducting parental 
        involvement activities consistent with section 1118.

    ``(f) General Requirement for All Paraprofessionals.--Each local 
educational agency receiving assistance under this part shall ensure 
that all paraprofessionals working in a program supported with funds 
under this part, regardless of the paraprofessionals' hiring date, have 
earned a secondary school diploma or its recognized equivalent.
    ``(g) Duties of Paraprofessionals.--
            ``(1) In general.--Each local educational agency receiving 
        assistance under this part shall ensure that a paraprofessional 
        working in a program supported with funds under this part is not 
        assigned a duty inconsistent with this subsection.
            ``(2) Responsibilities paraprofessionals may be assigned.--A 
        paraprofessional described in paragraph (1) may be assigned--
                    ``(A) to provide one-on-one tutoring for eligible 
                students, if the tutoring is scheduled at a time when a 
                student would not otherwise receive instruction from a 
                teacher;
                    ``(B) to assist with classroom management, such as 
                organizing instructional and other materials;
                    ``(C) to provide assistance in a computer 
                laboratory;
                    ``(D) to conduct parental involvement activities;
                    ``(E) to provide support in a library or media 
                center;
                    ``(F) to act as a translator; or
                    ``(G) to provide instructional services to students 
                in accordance with paragraph (3).
            ``(3) Additional limitations.--A paraprofessional described 
        in paragraph (1)--
                    ``(A) may not provide any instructional service to a 
                student unless the paraprofessional is working under the 
                direct supervision of a teacher consistent with section 
                1119; and
                    ``(B) may assume limited duties that are assigned to 
                similar personnel who are not working in a program 
                supported with funds under this part, including duties 
                beyond

[[Page 115 STAT. 1508]]

                classroom instruction or that do not benefit 
                participating children, so long as the amount of time 
                spent on such duties is the same proportion of total 
                work time as prevails with respect to similar personnel 
                at the same school.

    ``(h) Use of Funds.--A local educational agency receiving funds 
under this part may use such funds to support ongoing training and 
professional development to assist teachers and paraprofessionals in 
satisfying the requirements of this section.
    ``(i) Verification of Compliance.--
            ``(1) In general.--In verifying compliance with this 
        section, each local educational agency, at a minimum, shall 
        require that the principal of each school operating a program 
        under section 1114 or 1115 attest annually in writing as to 
        whether such school is in compliance with the requirements of 
        this section.
            ``(2) Availability of information.--Copies of attestations 
        under paragraph (1)--
                    ``(A) shall be maintained at each school operating a 
                program under section 1114 or 1115 and at the main 
                office of the local educational agency; and
                    ``(B) shall be available to any member of the 
                general public on request.

    ``(j) Combinations of Funds.--Funds provided under this part that 
are used for professional development purposes may be combined with 
funds provided under title II of this Act, other Acts, and other 
sources.
    ``(k) Special Rule.--Except as provided in subsection (l), no State 
educational agency shall require a school or a local educational agency 
to expend a specific amount of funds for professional development 
activities under this part, except that this paragraph shall not apply 
with respect to requirements under section 1116(c)(3).
    ``(l) <<NOTE: Deadline.>>  Minimum Expenditures.--Each local 
educational agency that receives funds under this part shall use not 
less than 5 percent, or more than 10 percent, of such funds for each of 
fiscal years 2002 and 2003, and not less than 5 percent of the funds for 
each subsequent fiscal year, for professional development activities to 
ensure that teachers who are not highly qualified become highly 
qualified not later than the end of the 2005-2006 school year.

``SEC. 1120. <<NOTE: 20 USC 6320.>>  PARTICIPATION OF CHILDREN ENROLLED 
            IN PRIVATE SCHOOLS.

    ``(a) General Requirement.--
            ``(1) In general.--To the extent consistent with the number 
        of eligible children identified under section 1115(b) in the 
        school district served by a local educational agency who are 
        enrolled in private elementary schools and secondary schools, a 
        local educational agency shall, after timely and meaningful 
        consultation with appropriate private school officials, provide 
        such children, on an equitable basis, special educational 
        services or other benefits under this part (such as dual 
        enrollment, educational radio and television, computer equipment 
        and materials, other technology, and mobile educational services 
        and equipment) that address their needs, and shall ensure that 
        teachers and families of the children participate, on an 
        equitable basis, in services and activities developed pursuant 
        to sections 1118 and 1119.

[[Page 115 STAT. 1509]]

            ``(2) Secular, neutral, nonideological.--Such educational 
        services or other benefits, including materials and equipment, 
        shall be secular, neutral, and nonideological.
            ``(3) Equity.--Educational services and other benefits for 
        such private school children shall be equitable in comparison to 
        services and other benefits for public school children 
        participating under this part, and shall be provided in a timely 
        manner.
            ``(4) Expenditures.--Expenditures for educational services 
        and other benefits to eligible private school children shall be 
        equal to the proportion of funds allocated to participating 
        school attendance areas based on the number of children from 
        low-income families who attend private schools, which the local 
        educational agency may determine each year or every 2 years.
            ``(5) Provision of services.--The local educational agency 
        may provide services under this section directly or through 
        contracts with public and private agencies, organizations, and 
        institutions.

    ``(b) Consultation.--
            ``(1) In general.--To ensure timely and meaningful 
        consultation, a local educational agency shall consult with 
        appropriate private school officials during the design and 
        development of such agency's programs under this part, on issues 
        such as--
                    ``(A) how the children's needs will be identified;
                    ``(B) what services will be offered;
                    ``(C) how, where, and by whom the services will be 
                provided;
                    ``(D) how the services will be academically assessed 
                and how the results of that assessment will be used to 
                improve those services;
                    ``(E) the size and scope of the equitable services 
                to be provided to the eligible private school children, 
                and the proportion of funds that is allocated under 
                subsection (a)(4) for such services;
                    ``(F) the method or sources of data that are used 
                under subsection (c) and section 1113(c)(1) to determine 
                the number of children from low-income families in 
                participating school attendance areas who attend private 
                schools;
                    ``(G) how and when the agency will make decisions 
                about the delivery of services to such children, 
                including a thorough consideration and analysis of the 
                views of the private school officials on the provision 
                of services through a contract with potential third-
                party providers; and
                    ``(H) how, if the agency disagrees with the views of 
                the private school officials on the provision of 
                services through a contract, the local educational 
                agency will provide in writing to such private school 
                officials an analysis of the reasons why the local 
                educational agency has chosen not to use a contractor.
            ``(2) Timing.--Such consultation shall include meetings of 
        agency and private school officials and shall occur before the 
        local educational agency makes any decision that affects the 
        opportunities of eligible private school children to participate 
        in programs under this part. Such meetings shall continue 
        throughout implementation and assessment of services provided 
        under this section.

[[Page 115 STAT. 1510]]

            ``(3) Discussion.--Such consultation shall include a 
        discussion of service delivery mechanisms a local educational 
        agency can use to provide equitable services to eligible private 
        school children.
            ``(4) Documentation.--Each local educational agency shall 
        maintain in the agency's records and provide to the State 
        educational agency involved a written affirmation signed by 
        officials of each participating private school that the 
        consultation required by this section has occurred. If such 
        officials do not provide such affirmation within a reasonable 
        period of time, the local educational agency shall forward the 
        documentation that such consultation has taken place to the 
        State educational agency.
            ``(5) Compliance.--
                    ``(A) In general.--A private school official shall 
                have the right to complain to the State educational 
                agency that the local educational agency did not engage 
                in consultation that was meaningful and timely, or did 
                not give due consideration to the views of the private 
                school official.
                    ``(B) Procedure.--If the private school official 
                wishes to complain, the official shall provide the basis 
                of the noncompliance with this section by the local 
                educational agency to the State educational agency, and 
                the local educational agency shall forward the 
                appropriate documentation to the State educational 
                agency.

    ``(c) Allocation for Equitable Service to Private School Students.--
            ``(1) Calculation.--A local educational agency shall have 
        the final authority, consistent with this section, to calculate 
        the number of children, ages 5 through 17, who are from low-
        income families and attend private schools by--
                    ``(A) using the same measure of low income used to 
                count public school children;
                    ``(B) using the results of a survey that, to the 
                extent possible, protects the identity of families of 
                private school students, and allowing such survey 
                results to be extrapolated if complete actual data are 
                unavailable;
                    ``(C) applying the low-income percentage of each 
                participating public school attendance area, determined 
                pursuant to this section, to the number of private 
                school children who reside in that school attendance 
                area; or
                    ``(D) using an equated measure of low income 
                correlated with the measure of low income used to count 
                public school children.
            ``(2) Complaint process.--Any dispute regarding low-income 
        data for private school students shall be subject to the 
        complaint process authorized in section 9505.

    ``(d) Public Control of Funds.--
            ``(1) In general.--The control of funds provided under this 
        part, and title to materials, equipment, and property purchased 
        with such funds, shall be in a public agency, and a public 
        agency shall administer such funds, materials, equipment, and 
        property.
            ``(2) Provision of services.--
                    ``(A) Provider.--The provision of services under 
                this section shall be provided--
                          ``(i) by employees of a public agency; or

[[Page 115 STAT. 1511]]

                          ``(ii) through contract by such public agency 
                      with an individual, association, agency, or 
                      organization.
                    ``(B) Requirement.--In the provision of such 
                services, such employee, individual, association, 
                agency, or organization shall be independent of such 
                private school and of any religious organization, and 
                such employment or contract shall be under the control 
                and supervision of such public agency.

    ``(e) Standards for a Bypass.--If a local educational agency is 
prohibited by law from providing for the participation in programs on an 
equitable basis of eligible children enrolled in private elementary 
schools and secondary schools, or if the Secretary determines that a 
local educational agency has substantially failed or is unwilling, to 
provide for such participation, as required by this section, the 
Secretary shall--
            ``(1) waive the requirements of this section for such local 
        educational agency;
            ``(2) arrange for the provision of services to such children 
        through arrangements that shall be subject to the requirements 
        of this section and sections 9503 and 9504; and
            ``(3) in making the determination under this subsection, 
        consider one or more factors, including the quality, size, 
        scope, and location of the program and the opportunity of 
        eligible children to participate.

``SEC. 1120A. FISCAL REQUIREMENTS. <<NOTE: 20 USC 6321.>> 

    ``(a) Maintenance of Effort.--A local educational agency may receive 
funds under this part for any fiscal year only if the State educational 
agency involved finds that the local educational agency has maintained 
the agency's fiscal effort in accordance with section 9521.
    ``(b) Federal Funds To Supplement, Not Supplant, Non-Federal 
Funds.--
            ``(1) In general.--A State educational agency or local 
        educational agency shall use Federal funds received under this 
        part only to supplement the funds that would, in the absence of 
        such Federal funds, be made available from non-Federal sources 
        for the education of pupils participating in programs assisted 
        under this part, and not to supplant such funds.
            ``(2) Special rule.--No local educational agency shall be 
        required to provide services under this part through a 
        particular instructional method or in a particular instructional 
        setting in order to demonstrate such agency's compliance with 
        paragraph (1).

    ``(c) Comparability of Services.--
            ``(1) In general.--
                    ``(A) Comparable services.--Except as provided in 
                paragraphs (4) and (5), a local educational agency may 
                receive funds under this part only if State and local 
                funds will be used in schools served under this part to 
                provide services that, taken as a whole, are at least 
                comparable to services in schools that are not receiving 
                funds under this part.
                    ``(B) Substantially comparable services.--If the 
                local educational agency is serving all of such agency's 
                schools under this part, such agency may receive funds 
                under this part only if such agency will use State and

[[Page 115 STAT. 1512]]

                local funds to provide services that, taken as a whole, 
                are substantially comparable in each school.
                    ``(C) Basis.--A local educational agency may meet 
                the requirements of subparagraphs (A) and (B) on a 
                grade-span by grade-span basis or a school-by-school 
                basis.
            ``(2) Written assurance.--
                    ``(A) Equivalence.--A local educational agency shall 
                be considered to have met the requirements of paragraph 
                (1) if such agency has filed with the State educational 
                agency a written assurance that such agency has 
                established and implemented--
                          ``(i) a local educational agency-wide salary 
                      schedule;
                          ``(ii) a policy to ensure equivalence among 
                      schools in teachers, administrators, and other 
                      staff; and
                          ``(iii) a policy to ensure equivalence among 
                      schools in the provision of curriculum materials 
                      and instructional supplies.
                    ``(B) Determinations.--For the purpose of this 
                subsection, in the determination of expenditures per 
                pupil from State and local funds, or instructional 
                salaries per pupil from State and local funds, staff 
                salary differentials for years of employment shall not 
                be included in such determinations.
                    ``(C) Exclusions.--A local educational agency need 
                not include unpredictable changes in student enrollment 
                or personnel assignments that occur after the beginning 
                of a school year in determining comparability of 
                services under this subsection.
            ``(3) Procedures and records.--Each local educational agency 
        assisted under this part shall--
                    ``(A) develop procedures for compliance with this 
                subsection; and
                    ``(B) maintain records that are updated biennially 
                documenting such agency's compliance with this 
                subsection.
            ``(4) Inapplicability.--This subsection shall not apply to a 
        local educational agency that does not have more than one 
        building for each grade span.
            ``(5) Compliance.--For the purpose of determining compliance 
        with paragraph (1), a local educational agency may exclude State 
        and local funds expended for--
                    ``(A) language instruction educational programs; and
                    ``(B) the excess costs of providing services to 
                children with disabilities as determined by the local 
                educational agency.
      ``(d) Exclusion of Funds.--For the purpose of complying with 
subsections (b) and (c), a State educational agency or local educational 
agency may exclude supplemental State or local funds expended in any 
school attendance area or school for programs that meet the intent and 
purposes of this part.

``SEC. 1120B. COORDINATION REQUIREMENTS. <<NOTE: 20 USC 6322.>> 

    ``(a) In General.--Each local educational agency receiving 
assistance under this part shall carry out the activities described in 
subsection (b) with Head Start agencies and, if feasible, other entities 
carrying out early childhood development programs such as the Early 
Reading First program.

[[Page 115 STAT. 1513]]

    ``(b) Activities.--The activities referred to in subsection (a) are 
activities that increase coordination between the local educational 
agency and a Head Start agency and, if feasible, other entities carrying 
out early childhood development programs, such as the Early Reading 
First program, serving children who will attend the schools of the local 
educational agency, including--
            ``(1) developing and implementing a systematic procedure for 
        receiving records regarding such children, transferred with 
        parental consent from a Head Start program or, where applicable, 
        another early childhood development program such as the Early 
        Reading First program;
            ``(2) establishing channels of communication between school 
        staff and their counterparts (including teachers, social 
        workers, and health staff) in such Head Start agencies or other 
        entities carrying out early childhood development programs such 
        as the Early Reading First program, as appropriate, to 
        facilitate coordination of programs;
            ``(3) conducting meetings involving parents, kindergarten or 
        elementary school teachers, and Head Start teachers or, if 
        appropriate, teachers from other early childhood development 
        programs such as the Early Reading First program, to discuss the 
        developmental and other needs of individual children;
            ``(4) organizing and participating in joint transition-
        related training of school staff, Head Start program staff, 
        Early Reading First program staff, and, where appropriate, other 
        early childhood development program staff; and
            ``(5) linking the educational services provided by such 
        local educational agency with the services provided by local 
        Head Start agencies and entities carrying out Early Reading 
        First programs.

    ``(c) Coordination of Regulations.--The Secretary shall work with 
the Secretary of Health and Human Services to coordinate regulations 
promulgated under this part with regulations promulgated under the Head 
Start Act.

                        ``Subpart 2--Allocations

``SEC. 1121. <<NOTE: 20 USC 6331.>>  GRANTS FOR THE OUTLYING AREAS AND 
            THE SECRETARY OF THE INTERIOR.

    ``(a) Reservation of Funds.--From the amount appropriated for 
payments to States for any fiscal year under section 1002(a) and 
1125A(f), the Secretary shall reserve a total of 1 percent to provide 
assistance to--
            ``(1) the outlying areas in the amount determined in 
        accordance with subsection (b); and
            ``(2) the Secretary of the Interior in the amount necessary 
        to make payments pursuant to subsection (d).

    ``(b) Assistance to Outlying Areas.--
            ``(1) Funds reserved.--From the amount made available for 
        any fiscal year under subsection (a), the Secretary shall award 
        grants to local educational agencies in the outlying areas.
            ``(2) Competitive grants.--Until each appropriate outlying 
        area enters into an agreement for extension of United States 
        educational assistance under the Compact of Free Association 
        after the date of enactment of the No Child Left Behind Act of 
        2001, the Secretary shall carry out the competition described

[[Page 115 STAT. 1514]]

        in paragraph (3), except that the amount reserved to carry out 
        such competition shall not exceed $5,000,000.
            ``(3) Limitation for competitive grants.--
                    ``(A) Competitive grants.--The Secretary shall use 
                funds described in paragraph (2) to award grants to the 
                outlying areas and freely associated States to carry out 
                the purposes of this part.
                    ``(B) Award basis.--The Secretary shall award grants 
                under subparagraph (A) on a competitive basis, taking 
                into consideration the recommendations of the Pacific 
                Region Educational Laboratory in Honolulu, Hawaii.
                    ``(C) Uses.--Except as provided in subparagraph (D), 
                grant funds awarded under this paragraph may be used 
                only--
                          ``(i) for programs described in this Act, 
                      including teacher training, curriculum 
                      development, instructional materials, or general 
                      school improvement and reform; and
                          ``(ii) to provide direct educational services 
                      that assist all students with meeting challenging 
                      State academic content standards.
                    ``(D) Administrative costs.--The Secretary may 
                provide not more than 5 percent of the amount reserved 
                for grants under this paragraph to pay the 
                administrative costs of the Pacific Region Educational 
                Laboratory under subparagraph (B).
            ``(4) Special rule.--The provisions of Public Law 95-134, 
        permitting the consolidation of grants by the outlying areas, 
        shall not apply to funds provided to the freely associated 
        States under this section.

    ``(c) Definitions.--For the purpose of subsections (a) and (b)--
            ``(1) the term `freely associated states' means the Republic 
        of the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau; and
            ``(2) the term `outlying area' means the United States 
        Virgin Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.

    ``(d) Allotment to the Secretary of the Interior.--
            ``(1) In general.--The amount allotted for payments to the 
        Secretary of the Interior under subsection (a)(2) for any fiscal 
        year shall be, as determined pursuant to criteria established by 
        the Secretary, the amount necessary to meet the special 
        educational needs of--
                    ``(A) Indian children on reservations served by 
                elementary schools and secondary schools for Indian 
                children operated or supported by the Department of the 
                Interior; and
                    ``(B) out-of-State Indian children in elementary 
                schools and secondary schools in local educational 
                agencies under special contracts with the Department of 
                the Interior.
            ``(2) Payments.--From the amount allotted for payments to 
        the Secretary of the Interior under subsection (a)(2), the 
        Secretary of the Interior shall make payments to local 
        educational agencies, on such terms as the Secretary determines 
        will best carry out the purposes of this part, with respect to 
        out-of-State Indian children described in paragraph (1). The

[[Page 115 STAT. 1515]]

        amount of such payment may not exceed, for each such child, the 
        greater of--
                    ``(A) 40 percent of the average per-pupil 
                expenditure in the State in which the agency is located; 
                or
                    ``(B) 48 percent of such expenditure in the United 
                States.

``SEC. 1122. ALLOCATIONS TO STATES. <<NOTE: 20 USC 6332.>> 

    ``(a) Allocation Formula.--Of the amount appropriated under section 
1002(a) to carry out this part for each of fiscal years 2002-2007 
(referred to in this subsection as the current fiscal year)--
            ``(1) an amount equal to the amount made available to carry 
        out section 1124 for fiscal year 2001 shall be allocated in 
        accordance with section 1124;
            ``(2) an amount equal to the amount made available to carry 
        out section 1124A for fiscal year 2001 shall be allocated in 
        accordance with section 1124A; and
            ``(3) an amount equal to 100 percent of the amount, if any, 
        by which the amount made available to carry out sections 1124, 
        1124A, and 1125 for the current fiscal year for which the 
        determination is made exceeds the amount available to carry out 
        sections 1124 and 1124A for fiscal year 2001 shall be allocated 
        in accordance with section 1125.

    ``(b) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums available under this subpart 
        for any fiscal year are insufficient to pay the full amounts 
        that all local educational agencies in States are eligible to 
        receive under sections 1124, 1124A, and 1125 for such year, the 
        Secretary shall ratably reduce the allocations to such local 
        educational agencies, subject to subsections (c) and (d) of this 
        section.
            ``(2) Additional funds.--If additional funds become 
        available for making payments under sections 1124, 1124A, and 
        1125 for such fiscal year, allocations that were reduced under 
        paragraph (1) shall be increased on the same basis as they were 
        reduced.

    ``(c) Hold-Harmless Amounts.--
            ``(1) Amounts for sections 1124, 1124a, and 1125.--For each 
        fiscal year, the amount made available to each local educational 
        agency under each of sections 1124, 1124A, and 1125 shall be--
                    ``(A) not less than 95 percent of the amount made 
                available for the preceding fiscal year if the number of 
                children counted for grants under section 1124 is not 
                less than 30 percent of the total number of children 
                aged 5 to 17 years, inclusive, in the local educational 
                agency;
                    ``(B) not less than 90 percent of the amount made 
                available for the preceding fiscal year if the 
                percentage described in subparagraph (A) is between 15 
                percent and 30 percent; and
                    ``(C) not less than 85 percent of the amount made 
                available for the preceding fiscal year if the 
                percentage described in subparagraph (A) is below 15 
                percent.
            ``(2) Payments.--If sufficient funds are appropriated, the 
        amounts described in paragraph (1) shall be paid to all local 
        educational agencies that received grants under section 1124A 
        for the preceding fiscal year, regardless of whether the local

[[Page 115 STAT. 1516]]

        educational agency meets the minimum eligibility criteria for 
        that fiscal year described in section 1124A(a)(1)(A) except that 
        a local educational agency that does not meet such minimum 
        eligibility criteria for 4 consecutive years shall no longer be 
        eligible to receive a hold harmless amount referred to in 
        paragraph (1).
            ``(3) Applicability.--Notwithstanding any other provision of 
        law, the Secretary shall not take into consideration the hold-
        harmless provisions of this subsection for any fiscal year for 
        purposes of calculating State or local allocations for the 
        fiscal year under any program administered by the Secretary 
        other than a program authorized under this part.
            ``(4) <<NOTE: Applicability.>>  Population data.--For any 
        fiscal year for which the Secretary calculates grants on the 
        basis of population data for counties, the Secretary shall apply 
        the hold-harmless percentages in paragraphs (1) and (2) to 
        counties and, if the Secretary's allocation for a county is not 
        sufficient to meet the hold-harmless requirements of this 
        subsection for every local educational agency within that 
        county, the State educational agency shall reallocate funds 
        proportionately from all other local educational agencies in the 
        State that are receiving funds in excess of the hold-harmless 
        amounts specified in this subsection.

    ``(d) Ratable Reductions.--
            ``(1) In general.--If the sums made available under this 
        subpart for any fiscal year are insufficient to pay the full 
        amounts that local educational agencies in all States are 
        eligible to receive under subsection (c) for such year, the 
        Secretary shall ratably reduce such amounts for such year.
            ``(2) Additional funds.--If additional funds become 
        available for making payments under subsection (c) for such 
        fiscal year, amounts that were reduced under paragraph (1) shall 
        be increased on the same basis as such amounts were reduced.

    ``(e) Definition.--For the purpose of this section and sections 
1124, 1124A, 1125, and 1125A, the term `State' means each of the 50 
States, the District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES. <<NOTE: 20 USC 
            6333.>> 

    ``(a) Amount of Grants.--
            ``(1) Grants for local educational agencies and puerto 
        rico.--Except as provided in paragraph (4) and in section 1126, 
        the grant that a local educational agency is eligible to receive 
        under this section for a fiscal year is the amount determined by 
        multiplying--
                    ``(A) the number of children counted under 
                subsection (c); and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the amount 
                determined under this subparagraph shall not be less 
                than 32 percent, or more than 48 percent, of the average 
                per-pupil expenditure in the United States.
            ``(2) Calculation of grants.--
                    ``(A) Allocations to local educational agencies.--
                The Secretary shall calculate grants under this section 
                on the basis of the number of children counted under 
                subsection (c) for local educational agencies, unless 
                the

[[Page 115 STAT. 1517]]

                Secretary and the Secretary of Commerce determine that 
                some or all of those data are unreliable or that their 
                use would be otherwise inappropriate, in which case--
                          ``(i) <<NOTE: Public information.>>  the two 
                      Secretaries shall publicly disclose the reasons 
                      for their determination in detail; and
                          ``(ii) <<NOTE: Applicability.>>  paragraph (3) 
                      shall apply.
                    ``(B) Allocations to large and small local 
                educational agencies.--
                          ``(i) For any fiscal year to which this 
                      paragraph applies, the Secretary shall calculate 
                      grants under this section for each local 
                      educational agency.
                          ``(ii) The amount of a grant under this 
                      section for each large local educational agency 
                      shall be the amount determined under clause (i).
                          ``(iii) For small local educational agencies, 
                      the State educational agency may either--
                                    ``(I) distribute grants under this 
                                section in amounts determined by the 
                                Secretary under clause (i); or
                                    ``(II) use an alternative method 
                                approved by the Secretary to distribute 
                                the portion of the State's total grants 
                                under this section that is based on 
                                those small agencies.
                          ``(iv) An alternative method under clause 
                      (iii)(II) shall be based on population data that 
                      the State educational agency determines best 
                      reflect the current distribution of children in 
                      poor families among the State's small local 
                      educational agencies that meet the eligibility 
                      criteria of subsection (b).
                          ``(v) <<NOTE: Deadline.>>  If a small local 
                      educational agency is dissatisfied with the 
                      determination of its grant by the State 
                      educational agency under clause (iii)(II), it may 
                      appeal that determination to the Secretary, who 
                      shall respond not later than 45 days after receipt 
                      of such appeal.
                          ``(vi) As used in this subparagraph--
                                    ``(I) the term `large local 
                                educational agency' means a local 
                                educational agency serving an area with 
                                a total population of 20,000 or more; 
                                and
                                    ``(II) the term `small local 
                                educational agency' means a local 
                                educational agency serving an area with 
                                a total population of less than 20,000.
            ``(3) Allocations to counties.--
                    ``(A) Calculation.--For any fiscal year to which 
                this paragraph applies, the Secretary shall calculate 
                grants under this section on the basis of the number of 
                children counted under subsection (c) for counties, and 
                State educational agencies shall suballocate county 
                amounts to local educational agencies, in accordance 
                with regulations issued by the Secretary.
                    ``(B) Direct allocations.--In any State in which a 
                large number of local educational agencies overlap 
                county boundaries, or for which the State believes it 
                has data that would better target funds than allocating 
                them by county, the State educational agency may apply 
                to the Secretary for authority to make the allocations 
                under this subpart for a particular fiscal year directly 
                to local educational agencies without regard to 
                counties.

[[Page 115 STAT. 1518]]

                    ``(C) Allocations to local educational agencies.--If 
                the Secretary approves the State educational agency's 
                application under subparagraph (B), the State 
                educational agency shall provide the Secretary an 
                assurance that such allocations shall be made--
                          ``(i) using precisely the same factors for 
                      determining a grant as are used under this 
                      subpart; or
                          ``(ii) using data that the State educational 
                      agency submits to the Secretary for approval that 
                      more accurately target poverty.
                    ``(D) Appeal.--The State educational agency shall 
                provide the Secretary an assurance that it will 
                establish a procedure through which a local educational 
                agency that is dissatisfied with its determinations 
                under subparagraph (B) may appeal directly to the 
                Secretary for a final determination.
            ``(4) Puerto rico.--
                    ``(A) In general.--For each fiscal year, the grant 
                that the Commonwealth of Puerto Rico shall be eligible 
                to receive under this section shall be the amount 
                determined by multiplying the number of children counted 
                under subsection (c) for the Commonwealth of Puerto Rico 
                by the product of--
                          ``(i) subject to subparagraph (B), the 
                      percentage that the average per-pupil expenditure 
                      in the Commonwealth of Puerto Rico is of the 
                      lowest average per-pupil expenditure of any of the 
                      50 States; and
                          ``(ii) 32 percent of the average per-pupil 
                      expenditure in the United States.
                    ``(B) Minimum percentage.--The percentage in 
                subparagraph (A)(i) shall not be less than--
                          ``(i) for fiscal year 2002, 77.5 percent;
                          ``(ii) for fiscal year 2003, 80.0 percent;
                          ``(iii) for fiscal year 2004, 82.5 percent;
                          ``(iv) for fiscal year 2005, 85.0 percent;
                          ``(v) for fiscal year 2006, 92.5 percent; and
                          ``(vi) for fiscal year 2007 and succeeding 
                      fiscal years, 100.0 percent.
                    ``(C) Limitation.--If the application of 
                subparagraph (B) would result in any of the 50 States or 
                the District of Columbia receiving less under this 
                subpart than it received under this subpart for the 
                preceding fiscal year, the percentage in subparagraph 
                (A) shall be the greater of--
                          ``(i) the percentage in subparagraph (A)(i);
                          ``(ii) the percentage specified in 
                      subparagraph (B) for the preceding fiscal year; or
                          ``(iii) the percentage used for the preceding 
                      fiscal year.

    ``(b) Minimum Number of Children To Qualify.--A local educational 
agency is eligible for a basic grant under this section for any fiscal 
year only if the number of children counted under subsection (c) for 
that agency is both--
            ``(1) 10 or more; and
            ``(2) more than 2 percent of the total school-age population 
        in the agency's jurisdiction.

    ``(c) Children To Be Counted.--

[[Page 115 STAT. 1519]]

            ``(1) Categories of children.--The number of children to be 
        counted for purposes of this section is the aggregate of--
                    ``(A) the number of children aged 5 to 17, 
                inclusive, in the school district of the local 
                educational agency from families below the poverty level 
                as determined under paragraph (2);
                    ``(B) the number of children (determined under 
                paragraph (4) for either the preceding year as described 
                in that paragraph, or for the second preceding year, as 
                the Secretary finds appropriate) aged 5 to 17, 
                inclusive, in the school district of such agency in 
                institutions for neglected and delinquent children 
                (other than such institutions operated by the United 
                States), but not counted pursuant to subpart 1 of part D 
                for the purposes of a grant to a State agency, or being 
                supported in foster homes with public funds; and
                    ``(C) the number of children aged 5 to 17, 
                inclusive, in the school district of such agency from 
                families above the poverty level as determined under 
                paragraph (4).
            ``(2) Determination of number of children.--For the purposes 
        of this section, the Secretary shall determine the number of 
        children aged 5 to 17, inclusive, from families below the 
        poverty level on the basis of the most recent satisfactory data, 
        described in paragraph (3), available from the Department of 
        Commerce. The District of Columbia and the Commonwealth of 
        Puerto Rico shall be treated as individual local educational 
        agencies. If a local educational agency contains two or more 
        counties in their entirety, then each county will be treated as 
        if such county were a separate local educational agency for 
        purposes of calculating grants under this part. The total of 
        grants for such counties shall be allocated to such a local 
        educational agency, which local educational agency shall 
        distribute to schools in each county within such agency a share 
        of the local educational agency's total grant that is no less 
        than the county's share of the population counts used to 
        calculate the local educational agency's grant.
            ``(3) Population updates.--
                    ``(A) In general.--In fiscal year 2002 and each 
                subsequent fiscal year, the Secretary shall use updated 
                data on the number of children, aged 5 to 17, inclusive, 
                from families below the poverty level for counties or 
                local educational agencies, published by the Department 
                of Commerce, unless the Secretary and the Secretary of 
                Commerce determine that the use of the updated 
                population data would be inappropriate or unreliable. If 
                appropriate and reliable data are not available 
                annually, the Secretary shall use data which are updated 
                every 2 years.
                    ``(B) <<NOTE: Public information.>>  Inappropriate 
                or unreliable data.--If the Secretary and the Secretary 
                of Commerce determine that some or all of the data 
                referred to in subparagraph (A) are inappropriate or 
                unreliable, the Secretary and the Secretary of Commerce 
                shall publicly disclose their reasons.
                    ``(C) Criteria of poverty.--In determining the 
                families that are below the poverty level, the Secretary 
                shall use the criteria of poverty used by the Bureau of 
                the Census in compiling the most recent decennial 
                census,

[[Page 115 STAT. 1520]]

                as the criteria have been updated by increases in the 
                Consumer Price Index for All Urban Consumers, published 
                by the Bureau of Labor Statistics.
            ``(4) Other children to be counted.--
                    ``(A) For the purpose of this section, the Secretary 
                shall determine the number of children aged 5 to 17, 
                inclusive, from families above the poverty level on the 
                basis of the number of such children from families 
                receiving an annual income, in excess of the current 
                criteria of poverty, from payments under a State program 
                funded under part A of title IV of the Social Security 
                Act; and in making such determinations, the Secretary 
                shall use the criteria of poverty used by the Bureau of 
                the Census in compiling the most recent decennial census 
                for a family of four in such form as those criteria have 
                been updated by increases in the Consumer Price Index 
                for All Urban Consumers, published by the Bureau of 
                Labor Statistics.
                    ``(B) The Secretary shall determine the number of 
                such children and the number of children aged 5 through 
                17 living in institutions for neglected or delinquent 
                children, or being supported in foster homes with public 
                funds, on the basis of the caseload data for the month 
                of October of the preceding fiscal year (using, in the 
                case of children described in the preceding sentence, 
                the criteria of poverty and the form of such criteria 
                required by such sentence which were determined for the 
                calendar year preceding such month of October) or, to 
                the extent that such data are not available to the 
                Secretary before January of the calendar year in which 
                the Secretary's determination is made, then on the basis 
                of the most recent reliable data available to the 
                Secretary at the time of such determination.
                    ``(C) <<NOTE: Deadline.>>  Except for the data on 
                children living in institutions for neglected or 
                delinquent children, the Secretary of Health and Human 
                Services shall collect and transmit the information 
                required by this subparagraph to the Secretary not later 
                than January 1 of each year.
                    ``(D) For the purpose of this section, the Secretary 
                shall consider all children who are in correctional 
                institutions to be living in institutions for delinquent 
                children.
            ``(5) Estimate.--When requested by the Secretary, the 
        Secretary of Commerce shall make a special updated estimate of 
        the number of children of such ages who are from families below 
        the poverty level (as determined under paragraph (1)(A)) in each 
        school district, and the Secretary is authorized to pay (either 
        in advance or by way of reimbursement) the Secretary of Commerce 
        the cost of making this special estimate. The Secretary of 
        Commerce shall give consideration to any request of the chief 
        executive of a State for the collection of additional census 
        information.

    ``(d) State Minimum.--Notwithstanding section 1122, the aggregate 
amount allotted for all local educational agencies within a State may 
not be less than the lesser of--
            ``(1) 0.25 percent of the total amount allocated to States 
        under this section for fiscal year 2001, plus 0.35 percent of 
        the total amount allocated to States under this section in 
        excess of the amount allocated for fiscal year 2001; or

[[Page 115 STAT. 1521]]

            ``(2) the average of--
                    ``(A) the amount calculated in paragraph (1), above; 
                and
                    ``(B) the number of children in such State counted 
                under subsection (c) in the fiscal year multiplied by 
                150 percent of the national average per-pupil payment 
                made with funds available under this section for that 
                year.

``SEC. 1124A. <<NOTE: 20 USC 6334.>>  CONCENTRATION GRANTS TO LOCAL 
            EDUCATIONAL AGENCIES.

    ``(a) Eligibility for and Amount of Grants.--
            ``(1) In general.--(A) Except as otherwise provided in this 
        paragraph, each local educational agency which is eligible for a 
        grant under section 1124 for any fiscal year is eligible for an 
        additional grant under this section for that fiscal year if the 
        number of children counted under section 1124(c) in the agency 
        exceeds either--
                    ``(i) 6,500; or
                    ``(ii) 15 percent of the total number of children 
                aged 5 through 17 in the agency.
            ``(B) Notwithstanding section 1122, no State shall receive 
        less than the lesser of--
                    ``(i) 0.25 percent of the total amount allocated to 
                States under this section for fiscal year 2001, plus 
                0.35 percent of the total amount allocated to States 
                under this section in excess of the amount allocated for 
                fiscal year 2001; or
                    ``(ii) the average of--
                          ``(I) the amount calculated under clause (i); 
                      and
                          ``(II) the greater of--
                                    ``(aa) $340,000; or
                                    ``(bb) the number of children in 
                                such State counted for purposes of this 
                                section in that fiscal year multiplied 
                                by 150 percent of the national average 
                                per-pupil payment made with funds 
                                available under this section for that 
                                year.
            ``(2) Determination.--For each county or local educational 
        agency eligible to receive an additional grant under this 
        section for any fiscal year, the Secretary shall determine the 
        product of--
                    ``(A) the number of children counted under section 
                1124(c) for that fiscal year; and
                    ``(B) the amount in section 1124(a)(1)(B) for each 
                State except the Commonwealth of Puerto Rico, and the 
                amount in section 1124(a)(4) for the Commonwealth of 
                Puerto Rico.
            ``(3) Amount.--The amount of the additional grant for which 
        an eligible local educational agency or county is eligible under 
        this section for any fiscal year shall be an amount which bears 
        the same ratio to the amount available to carry out this section 
        for that fiscal year as the product determined under paragraph 
        (2) for such local educational agency for that fiscal year bears 
        to the sum of such products for all local educational agencies 
        in the United States for that fiscal year.
            ``(4) Local allocations.--(A) Grant amounts under this 
        section shall be determined in accordance with section 
        1124(a)(2), (3), and (4).

[[Page 115 STAT. 1522]]

            ``(B) For any fiscal year for which the Secretary allocates 
        funds under this section on the basis of counties, a State may 
        reserve not more than 2 percent of its allocation under this 
        section to make grants to local educational agencies that meet 
        the criteria of paragraph (1)(A)(i) or (ii) and are in 
        ineligible counties that do not meet these criteria.

    ``(b) Small States.--In any State for which on the date of enactment 
of the No Child Left Behind Act of 2001 the number of children counted 
under section 1124(c) is less than 0.25 percent of the number of those 
children counted for all States, the State educational agency shall 
allocate funds under this section among the local educational agencies 
in the State either--
            ``(1) in accordance with paragraphs (2) and (4) of 
        subsection (a); or
            ``(2) based on their respective concentrations and numbers 
        of children counted under section 1124(c), except that only 
        those local educational agencies with concentrations or numbers 
        of children counted under section 1124(c) that exceed the 
        statewide average percentage of such children or the statewide 
        average number of such children shall receive any funds on the 
        basis of this paragraph.

``SEC. 1125. <<NOTE: 20 USC 6335.>>  TARGETED GRANTS TO LOCAL 
            EDUCATIONAL AGENCIES.

    ``(a) Eligibility of Local Educational Agencies.--
            ``(1) In general.--A local educational agency in a State is 
        eligible to receive a targeted grant under this section for any 
        fiscal year if--
                    ``(A) the number of children in the local 
                educational agency counted under section 1124(c), before 
                application of the weighted child count described in 
                subsection (c), is at least 10; and
                    ``(B) if the number of children counted for grants 
                under section 1124(c), before application of the 
                weighted child count described in subsection (c), is at 
                least 5 percent of the total number of children aged 5 
                to 17 years, inclusive, in the school district of the 
                local educational agency.
            ``(2) Special rule.--For any fiscal year for which the 
        Secretary allocates funds under this section on the basis of 
        counties, funds made available as a result of applying this 
        subsection shall be reallocated by the State educational agency 
        to other eligible local educational agencies in the State in 
        proportion to the distribution of other funds under this 
        section.

    ``(b) Grants for Local Educational Agencies, the District of 
Columbia, and the Commonwealth of Puerto Rico.--
            ``(1) In general.--The amount of the grant that a local 
        educational agency in a State (other than the Commonwealth of 
        Puerto Rico) is eligible to receive under this section for any 
        fiscal year shall be the product of--
                    ``(A) the weighted child count determined under 
                subsection (c); and
                    ``(B) the amount determined under section 
                1124(a)(1)(B).
            ``(2) Puerto rico.--For each fiscal year, the amount of the 
        grant the Commonwealth of Puerto Rico is eligible to receive 
        under this section shall be equal to the number of children 
        counted under subsection (c) for the Commonwealth of Puerto

[[Page 115 STAT. 1523]]

        Rico, multiplied by the amount determined in section 1124(a)(4) 
        for the Commonwealth of Puerto Rico.

    ``(c) Weighted Child Count.--
            ``(1) Weights for allocations to counties.--
                    ``(A) In general.--For each fiscal year for which 
                the Secretary uses county population data to calculate 
                grants, the weighted child count used to determine a 
                county's allocation under this section is the larger of 
                the two amounts determined under subparagraphs (B) and 
                (C).
                    ``(B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined by 
                adding--
                          ``(i) the number of children determined under 
                      section 1124(c) for that county who constitute not 
                      more than 15.00 percent, inclusive, of the 
                      county's total population aged 5 to 17, inclusive, 
                      multiplied by 1.0;
                          ``(ii) the number of such children who 
                      constitute more than 15.00 percent, but not more 
                      than 19.00 percent, of such population, multiplied 
                      by 1.75;
                          ``(iii) the number of such children who 
                      constitute more than 19.00 percent, but not more 
                      than 24.20 percent, of such population, multiplied 
                      by 2.5;
                          ``(iv) the number of such children who 
                      constitute more than 24.20 percent, but not more 
                      than 29.20 percent, of such population, multiplied 
                      by 3.25; and
                          ``(v) the number of such children who 
                      constitute more than 29.20 percent of such 
                      population, multiplied by 4.0.
                    ``(C) By number of children.--The amount referred to 
                in subparagraph (A) is determined by adding--
                          ``(i) the number of children determined under 
                      section 1124(c) who constitute not more than 
                      2,311, inclusive, of the county's total population 
                      aged 5 to 17, inclusive, multiplied by 1.0;
                          ``(ii) the number of such children between 
                      2,312 and 7,913, inclusive, in such population, 
                      multiplied by 1.5;
                          ``(iii) the number of such children between 
                      7,914 and 23,917, inclusive, in such population, 
                      multiplied by 2.0;
                          ``(iv) the number of such children between 
                      23,918 and 93,810, inclusive, in such population, 
                      multiplied by 2.5; and
                          ``(v) the number of such children in excess of 
                      93,811 in such population, multiplied by 3.0.
                    ``(D) Puerto rico.--Notwithstanding subparagraph 
                (A), the weighting factor for the Commonwealth of Puerto 
                Rico under this paragraph shall not be greater than the 
                total number of children counted under section 1124(c) 
                multiplied by 1.82.
            ``(2) Weights for allocations to local educational 
        agencies.--
                    ``(A) In general.--For each fiscal year for which 
                the Secretary uses local educational agency data, the 
                weighted child count used to determine a local 
                educational agency's grant under this section is the 
                larger of the two amounts determined under subparagraphs 
                (B) and (C).

[[Page 115 STAT. 1524]]

                    ``(B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined by 
                adding--
                          ``(i) the number of children determined under 
                      section 1124(c) for that local educational agency 
                      who constitute not more than 15.58 percent, 
                      inclusive, of the agency's total population aged 5 
                      to 17, inclusive, multiplied by 1.0;
                          ``(ii) the number of such children who 
                      constitute more than 15.58 percent, but not more 
                      than 22.11 percent, of such population, multiplied 
                      by 1.75;
                          ``(iii) the number of such children who 
                      constitute more than 22.11 percent, but not more 
                      than 30.16 percent, of such population, multiplied 
                      by 2.5;
                          ``(iv) the number of such children who 
                      constitute more than 30.16 percent, but not more 
                      than 38.24 percent, of such population, multiplied 
                      by 3.25; and
                          ``(v) the number of such children who 
                      constitute more than 38.24 percent of such 
                      population, multiplied by 4.0.
                    ``(C) By number of children.--The amount referred to 
                in subparagraph (A) is determined by adding--
                          ``(i) the number of children determined under 
                      section 1124(c) who constitute not more than 691, 
                      inclusive, of the agency's total population aged 5 
                      to 17, inclusive, multiplied by 1.0;
                          ``(ii) the number of such children between 692 
                      and 2,262, inclusive, in such population, 
                      multiplied by 1.5;
                          ``(iii) the number of such children between 
                      2,263 and 7,851, inclusive, in such population, 
                      multiplied by 2.0;
                          ``(iv) the number of such children between 
                      7,852 and 35,514, inclusive, in such population, 
                      multiplied by 2.5; and
                          ``(v) the number of such children in excess of 
                      35,514 in such population, multiplied by 3.0.
                    ``(D) Puerto rico.--Notwithstanding subparagraph 
                (A), the weighting factor for the Commonwealth of Puerto 
                Rico under this paragraph shall not be greater than the 
                total number of children counted under section 1124(c) 
                multiplied by 1.82.

    ``(d) Calculation of Grant Amounts.--Grant amounts under this 
section shall be calculated in the same manner as grant amounts are 
calculated under section 1124(a)(2) and (3).
    ``(e) State Minimum.--Notwithstanding any other provision of this 
section or section 1122, from the total amount available for any fiscal 
year to carry out this section, each State shall be allotted at least 
the lesser of--
            ``(1) 0.35 percent of the total amount available to carry 
        out this section; or
            ``(2) the average of--
                    ``(A) 0.35 percent of the total amount available to 
                carry out this section; and
                    ``(B) 150 percent of the national average grant 
                under this section per child described in section 
                1124(c), without application of a weighting factor, 
                multiplied by the State's total number of children 
                described in section 1124(c), without application of a 
                weighting factor.

[[Page 115 STAT. 1525]]

``SEC. <<NOTE: 20 USC 6336.>> 1125AA. ADEQUACY OF FUNDING OF TARGETED 
            GRANTS TO LOCAL EDUCATIONAL AGENCIES IN FISCAL YEARS AFTER 
            FISCAL YEAR 2001.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) The current Basic Grant Formula for the distribution 
        of funds under this part often does not provide funds for the 
        economically disadvantaged students for which such funds are 
        targeted.
            ``(2) Any school district in which more than 2 percent of 
        the students live below the poverty level qualifies for funding 
        under the Basic Grant Formula. As a result, 9 out of every 10 
        school districts in the country receive some form of aid under 
        the Formula.
            ``(3) Fifty-eight percent of all schools receive at least 
        some funding under this part, including many suburban schools 
        with predominantly well-off students.
            ``(4) One out of every 5 schools with concentrations of poor 
        students between 50 and 75 percent receive no funding at all 
        under this part.
            ``(5) In passing the Improving America's Schools Act in 
        1994, Congress declared that grants under this part would more 
        sharply target high poverty schools by using the Targeted Grant 
        Formula, but annual appropriation Acts have prevented the use of 
        that Formula.
            ``(6) The advantage of the Targeted Grant Formula over other 
        funding formulas under this part is that the Targeted Grant 
        Formula provides increased grants per poor child as the 
        percentage of economically disadvantaged children in a school 
        district increases.
            ``(7) Studies have found that the poverty of a child's 
        family is much more likely to be associated with educational 
        disadvantage if the family lives in an area with large 
        concentrations of poor families.
            ``(8) States with large populations of high poverty students 
        would receive significantly more funding if more funds under 
        this part were allocated through the Targeted Grant Formula.
            ``(9) Congress has an obligation to allocate funds under 
        this part so that such funds will positively affect the largest 
        number of economically disadvantaged students.

    ``(b) Limitation on Allocation of Title I Funds Contingent on 
Adequate Funding of Targeted Grants.--Pursuant to section 1122, the 
total amount allocated in any fiscal year after fiscal year 2001 for 
programs and activities under this part shall not exceed the amount 
allocated in fiscal year 2001 for such programs and activities unless 
the amount available for targeted grants to local educational agencies 
under section 1125 in the applicable fiscal year meets the requirements 
of section 1122(a).

``SEC. <<NOTE: 20 USC 6337.>> 1125A. EDUCATION FINANCE INCENTIVE GRANT 
            PROGRAM.

    ``(a) Grants.--From funds appropriated under subsection (f) the 
Secretary is authorized to make grants to States, from allotments under 
subsection (b), to carry out the programs and activities of this part.
    ``(b) Distribution Based Upon Fiscal Effort and Equity.--
            ``(1) In general.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), funds appropriated pursuant to 
                subsection (f) shall

[[Page 115 STAT. 1526]]

                be allotted to each State based upon the number of 
                children counted under section 1124(c) in such State 
                multiplied by the product of--
                          ``(i) the amount in section 1124(a)(1)(B) for 
                      all States other than the Commonwealth of Puerto 
                      Rico, except that the amount determined under that 
                      subparagraph shall not be less that 34 percent or 
                      more than 46 percent of the average per pupil 
                      expenditure in the United States, and the amount 
                      in section 1124(a)(4) for the Commonwealth of 
                      Puerto Rico, except that the amount in section 
                      1124(a)(4)(A)(ii) shall be 34 percent of the 
                      average per pupil expenditure in the United 
                      States; multiplied by
                          ``(ii) such State's effort factor described in 
                      paragraph (2); multiplied by
                          ``(iii) 1.30 minus such State's equity factor 
                      described in paragraph (3).
                    ``(B) State minimum.--Notwithstanding any other 
                provision of this section or section 1122, from the 
                total amount available for any fiscal year to carry out 
                this section, each State shall be allotted at least the 
                lesser of--
                          ``(i) 0.35 percent of total appropriations; or
                          ``(ii) the average of--
                                    ``(I) 0.35 percent of the total 
                                amount available to carry out this 
                                section; and
                                    ``(II) 150 percent of the national 
                                average grant under this section per 
                                child described in section 1124(c), 
                                without application of a weighting 
                                factor, multiplied by the State's total 
                                number of children described in section 
                                1124(c), without application of a 
                                weighting factor.
            ``(2) Effort factor.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the effort factor for a State shall be 
                determined in accordance with the succeeding sentence, 
                except that such factor shall not be less than 0.95 nor 
                greater than 1.05. The effort factor determined under 
                this sentence shall be a fraction the numerator of which 
                is the product of the 3-year average per-pupil 
                expenditure in the State multiplied by the 3-year 
                average per capita income in the United States and the 
                denominator of which is the product of the 3-year 
                average per capita income in such State multiplied by 
                the 3-year average per-pupil expenditure in the United 
                States.
                    ``(B) Commonwealth of puerto rico.--The effort 
                factor for the Commonwealth of Puerto Rico shall be 
                equal to the lowest effort factor calculated under 
                subparagraph (A) for any State.
            ``(3) Equity factor.--
                    ``(A) Determination.--
                          ``(i) In general.--Except as provided in 
                      subparagraph (B), the Secretary shall determine 
                      the equity factor under this section for each 
                      State in accordance with clause (ii).
                          ``(ii) Computation.--

[[Page 115 STAT. 1527]]

                                    ``(I) In general.--For each State, 
                                the Secretary shall compute a weighted 
                                coefficient of variation for the per-
                                pupil expenditures of local educational 
                                agencies in accordance with subclauses 
                                (II), (III), and (IV).
                                    ``(II) Variation.--In computing 
                                coefficients of variation, the Secretary 
                                shall weigh the variation between per-
                                pupil expenditures in each local 
                                educational agency and the average per-
                                pupil expenditures in the State 
                                according to the number of pupils served 
                                by the local educational agency.
                                    ``(III) Number of pupils.--In 
                                determining the number of pupils under 
                                this paragraph served by each local 
                                educational agency and in each State, 
                                the Secretary shall multiply the number 
                                of children counted under section 
                                1124(c) by a factor of 1.4.
                                    ``(IV) Enrollment requirement.--In 
                                computing coefficients of variation, the 
                                Secretary shall include only those local 
                                educational agencies with an enrollment 
                                of more than 200 students.
                    ``(B) Special rule.--The equity factor for a State 
                that meets the disparity standard described in section 
                222.162 of title 34, Code of Federal Regulations (as 
                such section was in effect on the day preceding the date 
                of enactment of the No Child Left Behind Act of 2001) or 
                a State with only one local educational agency shall be 
                not greater than 0.10.

    ``(c) Use of Funds; Eligibility of Local Educational Agencies.--All 
funds awarded to each State under this section shall be allocated to 
local educational agencies under the following provisions. Within local 
educational agencies, funds allocated under this section shall be 
distributed to schools on a basis consistent with section 1113, and may 
only be used to carry out activities under this part. A local 
educational agency in a State is eligible to receive a targeted grant 
under this section for any fiscal year if--
            ``(A) the number of children in the local educational agency 
        counted under section 1124(c), before application of the 
        weighted child count described in paragraph (3), is at least 10; 
        and
            ``(B) if the number of children counted for grants under 
        section 1124(c), before application of the weighted child count 
        described in paragraph (3), is at least 5 percent of the total 
        number of children aged 5 to 17 years, inclusive, in the school 
        district of the local educational agency.

    ``For any fiscal year for which the Secretary allocates funds under 
this section on the basis of counties, funds made available as a result 
of applying this subsection shall be reallocated by the State 
educational agency to other eligible local educational agencies in the 
State in proportion to the distribution of other funds under this 
section.
    ``(d) Allocation of Funds to Eligible Local Educational Agencies.--
Funds received by States under this section shall be allocated within 
States to eligible local educational agencies on the basis of weighted 
child counts calculated in accordance with paragraph (1), (2), or (3), 
as appropriate for each State.

[[Page 115 STAT. 1528]]

            ``(1) States with an equity factor less than .10.--In States 
        with an equity factor less than .10, the weighted child counts 
        referred to in subsection (d) shall be calculated as follows:
                    ``(A) Weights for allocations to counties.--
                          ``(i) In general.--For each fiscal year for 
                      which the Secretary uses county population data to 
                      calculate grants, the weighted child count used to 
                      determine a county's allocation under this section 
                      is the larger of the two amounts determined under 
                      clauses (ii) and (iii).
                          ``(ii) By percentage of children.--The amount 
                      referred to in clause ``(i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) for 
                                that county who constitute not more than 
                                15.00 percent, inclusive, of the 
                                county's total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such children 
                                who constitute more than 15.00 percent, 
                                but not more than 19.00 percent, of such 
                                population, multiplied by 1.75;
                                    ``(III) the number of such children 
                                who constitute more than 19.00 percent, 
                                but not more than 24.20 percent, of such 
                                population, multiplied by 2.5;
                                    ``(IV) the number of such children 
                                who constitute more than 24.20 percent, 
                                but not more than 29.20 percent, of such 
                                population, multiplied by 3.25; and
                                    ``(V) the number of such children 
                                who constitute more than 29.20 percent 
                                of such population, multiplied by 4.0.
                          ``(iii) By number of children.--The amount 
                      referred to in clause (i) is determined by adding
                                    ``(I) the number of children 
                                determined under section 1124(c) who 
                                constitute not more than 2,311, 
                                inclusive, of the county's total 
                                population aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such children 
                                between 2,312 and 7,913, inclusive, in 
                                such population, multiplied by 1.5;
                                    ``(III) the number of such children 
                                between 7,914 and 23,917, inclusive, in 
                                such population, multiplied by 2.0;
                                    ``(IV) the number of such children 
                                between 23,918 and 93,810, inclusive, in 
                                such population, multiplied by 2.5; and
                                    ``(V) the number of such children in 
                                excess of 93,811 in such population, 
                                multiplied by 3.0.
                    ``(B) Weights for allocations to local educational 
                agencies.--
                          ``(i) In general.--For each fiscal year for 
                      which the Secretary uses local educational agency 
                      data, the weighted child count used to determine a 
                      local educational agency's grant under this 
                      section is the larger

[[Page 115 STAT. 1529]]

                      of the two amounts determined under clauses (ii) 
                      and (iii).
                          ``(ii) By percentage of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) for 
                                that local educational agency who 
                                constitute not more than 15.58 percent, 
                                inclusive, of the agency's total 
                                population aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such children 
                                who constitute more than 15.58 percent, 
                                but not more than 22.11 percent, of such 
                                population, multiplied by 1.75;
                                    ``(III) the number of such children 
                                who constitute more than 22.11 percent, 
                                but not more than 30.16 percent, of such 
                                population, multiplied by 2.5;
                                    ``(IV) the number of such children 
                                who constitute more than 30.16 percent, 
                                but not more than 38.24 percent, of such 
                                population, multiplied by 3.25; and
                                    ``(V) the number of such children 
                                who constitute more than 38.24 percent 
                                of such population, multiplied by 4.0.
                          ``(iii) By number of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) who 
                                constitute not more than 691, inclusive, 
                                of the agency's total population aged 5 
                                to 17, inclusive, multiplied by 1.0;
                                    ``(II) the number of such children 
                                between 692 and 2,262, inclusive, in 
                                such population, multiplied by 1.5;
                                    ``(III) the number of such children 
                                between 2,263 and 7,851, inclusive, in 
                                such population, multiplied by 2.0;
                                    ``(IV) the number of such children 
                                between 7,852 and 35,514, inclusive, in 
                                such population, multiplied by 2.5; and
                                    ``(V) the number of such children in 
                                excess of 35,514 in such population, 
                                multiplied by 3.0.
            ``(2) States with an equity factor greater than or equal to 
        .10 and less than .20.--In States with an equity factor greater 
        than or equal to .10 and less than .20, the weighted child 
        counts referred to in subsection (d) shall be calculated as 
        follows:
                    ``(A) Weights for allocations to counties.--
                          ``(i) In general.--For each fiscal year for 
                      which the Secretary uses county population data to 
                      calculate grants, the weighted child count used to 
                      determine a county's allocation under this section 
                      is the larger of the two amounts determined under 
                      clauses (ii) and (iii).
                          ``(ii) By percentage of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) for 
                                that county who constitute not

[[Page 115 STAT. 1530]]

                                more than 15.00 percent, inclusive, of 
                                the county's total population aged 5 to 
                                17, inclusive, multiplied by 1.0;
                                    ``(II) the number of such children 
                                who constitute more than 15.00 percent, 
                                but not more than 19.00 percent, of such 
                                population, multiplied by 1.5;
                                    ``(III) the number of such children 
                                who constitute more than 19.00 percent, 
                                but not more than 24.20 percent, of such 
                                population, multiplied by 3.0;
                                    ``(IV) the number of such children 
                                who constitute more than 24.20 percent, 
                                but not more than 29.20 percent, of such 
                                population, multiplied by 4.5; and
                                    ``(V) the number of such children 
                                who constitute more than 29.20 percent 
                                of such population, multiplied by 6.0.
                          ``(iii) By number of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) who 
                                constitute not more than 2,311, 
                                inclusive, of the county's total 
                                population aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such children 
                                between 2,312 and 7,913, inclusive, in 
                                such population, multiplied by 1.5;
                                    ``(III) the number of such children 
                                between 7,914 and 23,917, inclusive, in 
                                such population, multiplied by 2.25;
                                    ``(IV) the number of such children 
                                between 23,918 and 93,810, inclusive, in 
                                such population, multiplied by 3.375; 
                                and
                                    ``(V) the number of such children in 
                                excess of 93,811 in such population, 
                                multiplied by 4.5.
                    ``(B) Weights for allocations to local educational 
                agencies.--
                          ``(i) In general.--For each fiscal year for 
                      which the Secretary uses local educational agency 
                      data, the weighted child count used to determine a 
                      local educational agency's grant under this 
                      section is the larger of the two amounts 
                      determined under clauses (ii) and (iii).
                          ``(ii) By percentage of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) for 
                                that local educational agency who 
                                constitute not more than 15.58 percent, 
                                inclusive, of the agency's total 
                                population aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such children 
                                who constitute more than 15.58 percent, 
                                but not more than 22.11 percent, of such 
                                population, multiplied by 1.5;
                                    ``(III) the number of such children 
                                who constitute more than 22.11 percent, 
                                but not more

[[Page 115 STAT. 1531]]

                                than 30.16 percent, of such population, 
                                multiplied by 3.0;
                                    ``(IV) the number of such children 
                                who constitute more than 30.16 percent, 
                                but not more than 38.24 percent, of such 
                                population, multiplied by 4.5; and
                                    ``(V) the number of such children 
                                who constitute more than 38.24 percent 
                                of such population, multiplied by 6.0.
                          ``(iii) By number of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) who 
                                constitute not more than 691, inclusive, 
                                of the agency's total population aged 5 
                                to 17, inclusive, multiplied by 1.0;
                                    ``(II) the number of such children 
                                between 692 and 2,262, inclusive, in 
                                such population, multiplied by 1.5;
                                    ``(III) the number of such children 
                                between 2,263 and 7,851, inclusive, in 
                                such population, multiplied by 2.25;
                                    ``(IV) the number of such children 
                                between 7,852 and 35,514, inclusive, in 
                                such population, multiplied by 3.375; 
                                and
                                    ``(V) the number of such children in 
                                excess of 35,514 in such population, 
                                multiplied by 4.5.
            ``(3) States with an equity factor greater than or equal to 
        .20.--In States with an equity factor greater than or equal to 
        .20, the weighted child counts referred to in subsection (d) 
        shall be calculated as follows:
                    ``(A) Weights for allocations to counties.--
                          ``(i) In general.--For each fiscal year for 
                      which the Secretary uses county population data to 
                      calculate grants, the weighted child count used to 
                      determine a county's allocation under this section 
                      is the larger of the two amounts determined under 
                      clauses (ii) and (iii).
                          ``(ii) By percentage of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) for 
                                that county who constitute not more than 
                                15.00 percent, inclusive, of the 
                                county's total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such children 
                                who constitute more than 15.00 percent, 
                                but not more than 19.00 percent, of such 
                                population, multiplied by 2.0;
                                    ``(III) the number of such children 
                                who constitute more than 19.00 percent, 
                                but not more than 24.20 percent, of such 
                                population, multiplied by 4.0;
                                    ``(IV) the number of such children 
                                who constitute more than 24.20 percent, 
                                but not more than 29.20 percent, of such 
                                population, multiplied by 6.0; and

[[Page 115 STAT. 1532]]

                                    ``(V) the number of such children 
                                who constitute more than 29.20 percent 
                                of such population, multiplied by 8.0.
                          ``(iii) By number of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) who 
                                constitute not more than 2,311, 
                                inclusive, of the county's total 
                                population aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such children 
                                between 2,312 and 7,913, inclusive, in 
                                such population, multiplied by 2.0;
                                    ``(III) the number of such children 
                                between 7,914 and 23,917, inclusive, in 
                                such population, multiplied by 3.0;
                                    ``(IV) the number of such children 
                                between 23,918 and 93,810, inclusive, in 
                                such population, multiplied by 4.5; and
                                    ``(V) the number of such children in 
                                excess of 93,811 in such population, 
                                multiplied by 6.0.
                    ``(B) Weights for allocations to local educational 
                agencies.--
                          ``(i) In general.--For each fiscal year for 
                      which the Secretary uses local educational agency 
                      data, the weighted child count used to determine a 
                      local educational agency's grant under this 
                      section is the larger of the two amounts 
                      determined under clauses (ii) and (iii).
                          ``(ii) By percentage of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) for 
                                that local educational agency who 
                                constitute not more than 15.58 percent, 
                                inclusive, of the agency's total 
                                population aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such children 
                                who constitute more than 15.58 percent, 
                                but not more than 22.11 percent, of such 
                                population, multiplied by 2.0;
                                    ``(III) the number of such children 
                                who constitute more than 22.11 percent, 
                                but not more than 30.16 percent, of such 
                                population, multiplied by 4.0;
                                    ``(IV) the number of such children 
                                who constitute more than 30.16 percent, 
                                but not more than 38.24 percent, of such 
                                population, multiplied by 6.0; and
                                    ``(V) the number of such children 
                                who constitute more than 38.24 percent 
                                of such population, multiplied by 8.0.
                          ``(iii) By number of children.--The amount 
                      referred to in clause (i) is determined by 
                      adding--
                                    ``(I) the number of children 
                                determined under section 1124(c) who 
                                constitute not more than 691, inclusive, 
                                of the agency's total population aged 5 
                                to 17, inclusive, multiplied by 1.0;

[[Page 115 STAT. 1533]]

                                    ``(II) the number of such children 
                                between 692 and 2,262, inclusive, in 
                                such population, multiplied by 2.0;
                                    ``(III) the number of such children 
                                between 2,263 and 7,851, inclusive, in 
                                such population, multiplied by 3.0;
                                    ``(IV) the number of such children 
                                between 7,852 and 35,514, inclusive, in 
                                such population, multiplied by 4.5; and
                                    ``(V) the number of such children in 
                                excess of 35,514 in such population, 
                                multiplied by 6.0.

    ``(e) Maintenance of Effort.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State is entitled to receive its full allotment of funds under 
        this section for any fiscal year if the Secretary finds that 
        either the combined fiscal effort per student or the aggregate 
        expenditures within the State with respect to the provision of 
        free public education for the fiscal year preceding the fiscal 
        year for which the determination is made was not less than 90 
        percent of such combined fiscal effort or aggregate expenditures 
        for the second fiscal year preceding the fiscal year for which 
        the determination is made.
            ``(2) Reduction of funds.--The Secretary shall reduce the 
        amount of funds awarded to any State under this section in any 
        fiscal year in the exact proportion to which the State fails to 
        meet the requirements of paragraph (1) by falling below 90 
        percent of both the fiscal effort per student and aggregate 
        expenditures (using the measure most favorable to the State), 
        and no such lesser amount shall be used for computing the effort 
        required under paragraph (1) for subsequent years.
            ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
        only, the requirements of this subsection if the Secretary 
        determines that such a waiver would be equitable due to 
        exceptional or uncontrollable circumstances such as a natural 
        disaster or a precipitous and unforeseen decline in the 
        financial resources of the State.

    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary for 
fiscal year 2002 and for each of the 5 succeeding fiscal years.
    ``(g) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums available under this section 
        for any fiscal year are insufficient to pay the full amounts 
        that all local educational agencies in States are eligible to 
        receive under this section for such year, the Secretary shall 
        ratably reduce the allocations to such local educational 
        agencies, subject to paragraphs (2) and (3).
            ``(2) Additional funds.--If additional funds become 
        available for making payments under this section for such fiscal 
        year, allocations that were reduced under paragraph (1) shall be 
        increased on the same basis as they were reduced.
            ``(3) Hold-harmless amounts.--For each fiscal year, if 
        sufficient funds are available, the amount made available to 
        each local educational agency under this section shall be
                    ``(A) not less than 95 percent of the amount made 
                available for the preceding fiscal year if the number of 
                children counted for grants under section 1124 is not 
                less

[[Page 115 STAT. 1534]]

                than 30 percent of the total number of children aged 5 
                to 17 years, inclusive, in the local educational agency;
                    ``(B) not less than 90 percent of the amount made 
                available for the preceding fiscal year if the 
                percentage described in subparagraph (A) is between 15 
                percent and 30 percent; and
                    ``(C) not less than 85 percent of the amount made 
                available for the preceding fiscal year if the 
                percentage described in subparagraph (A) is below 15 
                percent.
            ``(4) Applicability.--Notwithstanding any other provision of 
        law, the Secretary shall not take into consideration the hold-
        harmless provisions of this subsection for any fiscal year for 
        purposes of calculating State or local allocations for the 
        fiscal year under any program administered by the Secretary 
        other than a program authorized under this part.

``SEC. <<NOTE: 20 USC 6338.>> 1126. SPECIAL ALLOCATION PROCEDURES.

    ``(a) Allocations for Neglected Children.--
            ``(1) In general.--If a State educational agency determines 
        that a local educational agency in the State is unable or 
        unwilling to provide for the special educational needs of 
        children who are living in institutions for neglected children 
        as described in section 1124(c)(1)(B), the State educational 
        agency shall, if such agency assumes responsibility for the 
        special educational needs of such children, receive the portion 
        of such local educational agency's allocation under sections 
        1124, 1124A, 1125, and 1125A that is attributable to such 
        children.
            ``(2) Special rule.--If the State educational agency does 
        not assume such responsibility, any other State or local public 
        agency that does assume such responsibility shall receive that 
        portion of the local educational agency's allocation.

    ``(b) Allocations Among Local Educational Agencies.--The State 
educational agency may allocate the amounts of grants under sections 
1124, 1124A, 1125, and 1125A among the affected local educational 
agencies--
            ``(1) if two or more local educational agencies serve, in 
        whole or in part, the same geographical area;
            ``(2) if a local educational agency provides free public 
        education for children who reside in the school district of 
        another local educational agency; or
            ``(3) to reflect the merger, creation, or change of 
        boundaries of one or more local educational agencies.

    ``(c) Reallocation.--If a State educational agency determines that 
the amount of a grant a local educational agency would receive under 
sections 1124, 1124A, 1125, and 1125A is more than such local 
educational agency will use, the State educational agency shall make the 
excess amount available to other local educational agencies in the State 
that need additional funds in accordance with criteria established by 
the State educational agency.

``SEC. <<NOTE: 20 USC 6339.>> 1127. CARRYOVER AND WAIVER.

    ``(a) Limitation on Carryover.--Notwithstanding section 421(b) of 
the General Education Provisions Act or any other provision of law, not 
more than 15 percent of the funds allocated to a local educational 
agency for any fiscal year under this subpart (but not including funds 
received through any reallocation under this subpart) may remain 
available for obligation by such agency for one additional fiscal year.

[[Page 115 STAT. 1535]]

    ``(b) Waiver.--A State educational agency may, once every 3 years, 
waive the percentage limitation in subsection (a) if--
            ``(1) the agency determines that the request of a local 
        educational agency is reasonable and necessary; or
            ``(2) supplemental appropriations for this subpart become 
        available.

    ``(c) Exclusion.--The percentage limitation under subsection (a) 
shall not apply to any local educational agency that receives less than 
$50,000 under this subpart for any fiscal year.

           ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                       ``Subpart 1--Reading First

``SEC. <<NOTE: 20 USC 6361.>> 1201. PURPOSES.

    ``The purposes of this subpart are as follows:
            ``(1) To provide assistance to State educational agencies 
        and local educational agencies in establishing reading programs 
        for students in kindergarten through grade 3 that are based on 
        scientifically based reading research, to ensure that every 
        student can read at grade level or above not later than the end 
        of grade 3.
            ``(2) To provide assistance to State educational agencies 
        and local educational agencies in preparing teachers, including 
        special education teachers, through professional development and 
        other support, so the teachers can identify specific reading 
        barriers facing their students and so the teachers have the 
        tools to effectively help their students learn to read.
            ``(3) To provide assistance to State educational agencies 
        and local educational agencies in selecting or administering 
        screening, diagnostic, and classroom-based instructional reading 
        assessments.
            ``(4) To provide assistance to State educational agencies 
        and local educational agencies in selecting or developing 
        effective instructional materials (including classroom-based 
        materials to assist teachers in implementing the essential 
        components of reading instruction), programs, learning systems, 
        and strategies to implement methods that have been proven to 
        prevent or remediate reading failure within a State.
            ``(5) To strengthen coordination among schools, early 
        literacy programs, and family literacy programs to improve 
        reading achievement for all children.

``SEC. <<NOTE: 20 USC 6362.>> 1202. FORMULA GRANTS TO STATE EDUCATIONAL 
            AGENCIES.

    ``(a) In General.--
            ``(1) Authorization to make grants.--In the case of each 
        State educational agency that in accordance with section 1203 
        submits to the Secretary an application for a 6-year period, the 
        Secretary, from amounts appropriated under section 1002(b)(1) 
        and subject to the application's approval, shall make a grant to 
        the State educational agency for the uses specified in 
        subsections (c) and (d). For each fiscal year, the funds 
        provided under the grant shall equal the allotment determined 
        for the State educational agency under subsection (b).

[[Page 115 STAT. 1536]]

            ``(2) Duration of grants.--Subject to subsection (e)(3), a 
        grant under this section shall be awarded for a period of not 
        more than 6 years.

    ``(b) Determination of Amount of Allotments.--
            ``(1) Reservations from appropriations.--From the total 
        amount made available to carry out this subpart for a fiscal 
        year, the Secretary--
                    ``(A) shall reserve one-half of 1 percent for 
                allotments for the United States Virgin Islands, Guam, 
                American Samoa, and the Commonwealth of the Northern 
                Mariana Islands, to be distributed among these outlying 
                areas on the basis of their relative need, as determined 
                by the Secretary in accordance with the purposes of this 
                subpart;
                    ``(B) shall reserve one-half of 1 percent for the 
                Secretary of the Interior for programs under this 
                subpart in schools operated or funded by the Bureau of 
                Indian Affairs;
                    ``(C) may reserve not more than 2\1/2\ percent or 
                $25,000,000, whichever is less, to carry out section 
                1205 (relating to external evaluation) and section 1206 
                (relating to national activities);
                    ``(D) shall reserve $5,000,000 to carry out sections 
                1207 and 1224 (relating to information dissemination); 
                and
                    ``(E) for any fiscal year, beginning with fiscal 
                year 2004, for which the amount appropriated to carry 
                out this subpart exceeds the amount appropriated for 
                fiscal year 2003, shall reserve, to carry out section 
                1204, the lesser of--
                          ``(i) $90,000,000; or
                          ``(ii) 10 percent of such excess amount.
            ``(2) State allotments.--In accordance with paragraph (3), 
        the Secretary shall allot among each of the States the total 
        amount made available to carry out this subpart for any fiscal 
        year and not reserved under paragraph (1).
            ``(3) Determination of state allotment amounts.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall allot the amount made available under 
                paragraph (2) for a fiscal year among the States in 
                proportion to the number of children, aged 5 to 17, who 
                reside within the State and are from families with 
                incomes below the poverty line for the most recent 
                fiscal year for which satisfactory data are available, 
                compared to the number of such individuals who reside in 
                all such States for that fiscal year.
                    ``(B) Exceptions.--
                          ``(i) Minimum grant amount.--Subject to clause 
                      (ii), no State receiving an allotment under 
                      subparagraph (A) may receive less than one-fourth 
                      of 1 percent of the total amount allotted under 
                      such subparagraph.
                          ``(ii) Puerto rico.--The percentage of the 
                      amount allotted under subparagraph (A) that is 
                      allotted to the Commonwealth of Puerto Rico for a 
                      fiscal year may not exceed the percentage that was 
                      received by the Commonwealth of Puerto Rico of the 
                      funds allocated to all States under subpart 2 of 
                      part A for the preceding fiscal year.
            ``(4) Distribution of subgrants.--The Secretary may make a 
        grant to a State educational agency only if the State

[[Page 115 STAT. 1537]]

        educational agency agrees to expend at least 80 percent of the 
        amount of the funds provided under the grant for the purpose of 
        making, in accordance with subsection (c), competitive subgrants 
        to eligible local educational agencies.
            ``(5) Reallotment.--If a State educational agency described 
        in paragraph (2) does not apply for an allotment under this 
        section for any fiscal year, or if the State educational 
        agency's application is not approved, the Secretary shall 
        reallot such amount to the remaining State educational agencies 
        in accordance with paragraph (3).
            ``(6) Definition of state.--For purposes of this subsection, 
        the term `State' means each of the 50 States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.

    ``(c) Subgrants to Local Educational Agencies.--
            ``(1) Authorization to make subgrants.--In accordance with 
        paragraph (2), a State educational agency that receives a grant 
        under this section shall make competitive subgrants to eligible 
        local educational agencies.
            ``(2) Allocation.--
                    ``(A) Minimum subgrant amount.--In making subgrants 
                under paragraph (1), a State educational agency shall 
                allocate to each eligible local educational agency that 
                receives such a subgrant, at a minimum, an amount that 
                bears the same relation to the funds made available 
                under subsection (b)(4) as the amount the eligible local 
                educational agency received under part A for the 
                preceding fiscal year bears to the amount all the local 
                educational agencies in the State received under part A 
                for the preceding fiscal year.
                    ``(B) Priority.--In making subgrants under paragraph 
                (1), a State educational agency shall give priority to 
                eligible local educational agencies in which at least--
                          ``(i) 15 percent of the children served by the 
                      eligible local educational agency are from 
                      families with incomes below the poverty line; or
                          ``(ii) 6,500 children served by the eligible 
                      local educational agency are from families with 
                      incomes below the poverty line.
            ``(3) Notice.--A State educational agency receiving a grant 
        under this section shall provide notice to all eligible local 
        educational agencies in the State of the availability of 
        competitive subgrants under this subsection and of the 
        requirements for applying for the subgrants.
            ``(4) Local application.--To be eligible to receive a 
        subgrant under this subsection, an eligible local educational 
        agency shall submit an application to the State educational 
        agency at such time, in such manner, and containing such 
        information as the State educational agency may reasonably 
        require.
            ``(5) State requirement.--In distributing subgrant funds to 
        eligible local educational agencies under this subsection, a 
        State educational agency shall--
                    ``(A) provide funds in sufficient size and scope to 
                enable the eligible local educational agencies to 
                improve reading instruction; and

[[Page 115 STAT. 1538]]

                    ``(B) provide the funds in amounts related to the 
                number or percentage of students in kindergarten through 
                grade 3 who are reading below grade level.
            ``(6) Limitation to certain schools.--In distributing 
        subgrant funds under this subsection, an eligible local 
        educational agency shall provide funds only to schools that 
        both--
                    ``(A) are among the schools served by that eligible 
                local educational agency with the highest percentages or 
                numbers of students in kindergarten through grade 3 
                reading below grade level, based on the most currently 
                available data; and
                    ``(B)(i) are identified for school improvement under 
                section 1116(b); or
                    ``(ii) have the highest percentages or numbers of 
                children counted under section 1124(c).
            ``(7) Local uses of funds.--
                    ``(A) Required uses.--Subject to paragraph (8), an 
                eligible local educational agency that receives a 
                subgrant under this subsection shall use the funds 
                provided under the subgrant to carry out the following 
                activities:
                          ``(i) Selecting and administering screening, 
                      diagnostic, and classroom-based instructional 
                      reading assessments.
                          ``(ii) Selecting and implementing a learning 
                      system or program of reading instruction based on 
                      scientifically based reading research that--
                                    ``(I) includes the essential 
                                components of reading instruction; and
                                    ``(II) provides such instruction to 
                                the children in kindergarten through 
                                grade 3 in the schools served by the 
                                eligible local educational agency, 
                                including children who--
                                            ``(aa) may have reading 
                                        difficulties;
                                            ``(bb) are at risk of being 
                                        referred to special education 
                                        based on these difficulties;
                                            ``(cc) have been evaluated 
                                        under section 614 of the 
                                        Individuals with Disabilities 
                                        Education Act but, in accordance 
                                        with section 614(b)(5) of that 
                                        Act, have not been identified as 
                                        being a child with a disability 
                                        (as defined in section 602 of 
                                        that Act);
                                            ``(dd) are being served 
                                        under such Act primarily due to 
                                        being identified as being a 
                                        child with a specific learning 
                                        disability (as defined in 
                                        section 602 of that Act) related 
                                        to reading;
                                            ``(ee) are deficient in the 
                                        essential components of reading 
                                        skills, as listed in 
                                        subparagraphs (A) through (E) of 
                                        section 1208(3); or
                                            ``(ff) are identified as 
                                        having limited English 
                                        proficiency.
                          ``(iii) Procuring and implementing 
                      instructional materials, including education 
                      technology such as software and other digital 
                      curricula, that are based on scientifically based 
                      reading research.
                          ``(iv) Providing professional development for 
                      teachers of kindergarten through grade 3, and 
                      special

[[Page 115 STAT. 1539]]

                      education teachers of kindergarten through grade 
                      12, that--
                                    ``(I) will prepare these teachers in 
                                all of the essential components of 
                                reading instruction;
                                    ``(II) shall include--
                                            ``(aa) information on 
                                        instructional materials, 
                                        programs, strategies, and 
                                        approaches based on 
                                        scientifically based reading 
                                        research, including early 
                                        intervention, classroom reading 
                                        materials, and remedial programs 
                                        and approaches; and
                                            ``(bb) instruction in the 
                                        use of screening, diagnostic, 
                                        and classroom-based 
                                        instructional reading 
                                        assessments and other procedures 
                                        that effectively identify 
                                        students who may be at risk for 
                                        reading failure or who are 
                                        having difficulty reading;
                                    ``(III) shall be provided by 
                                eligible professional development 
                                providers; and
                                    ``(IV) will assist teachers in 
                                becoming highly qualified in reading 
                                instruction in accordance with the 
                                requirements of section 1119.
                          ``(v) Collecting and summarizing data--
                                    ``(I) to document the effectiveness 
                                of activities carried out under this 
                                subpart in individual schools and in the 
                                local educational agency as a whole; and
                                    ``(II) to stimulate and accelerate 
                                improvement by identifying the schools 
                                that produce significant gains in 
                                reading achievement.
                          ``(vi) Reporting data for all students and 
                      categories of students described in section 
                      1111(b)(2)(C)(v)(II).
                          ``(vii) Promoting reading and library programs 
                      that provide access to engaging reading material, 
                      including coordination with programs funded 
                      through grants received under subpart 4, where 
                      applicable.
                    ``(B) Additional uses.--Subject to paragraph (8), an 
                eligible local educational agency that receives a 
                subgrant under this subsection may use the funds 
                provided under the subgrant to carry out the following 
                activities:
                          ``(i) Humanities-based family literacy 
                      programs (which may be referred to as `Prime Time 
                      Family Reading Time') that bond families around 
                      the acts of reading and using public libraries.
                          ``(ii) Providing training in the essential 
                      components of reading instruction to a parent or 
                      other individual who volunteers to be a student's 
                      reading tutor, to enable such parent or individual 
                      to support instructional practices that are based 
                      on scientifically based reading research and are 
                      being used by the student's teacher.
                          ``(iii) Assisting parents, through the use of 
                      materials and reading programs, strategies, and 
                      approaches (including family literacy services) 
                      that are based on scientifically based reading 
                      research, to encourage reading and support their 
                      child's reading development.

[[Page 115 STAT. 1540]]

            ``(8) Local planning and administration.--An eligible local 
        educational agency that receives a subgrant under this 
        subsection may use not more than 3.5 percent of the funds 
        provided under the subgrant for planning and administration.

    ``(d) State Uses of Funds.--
            ``(1) In general.--A State educational agency that receives 
        a grant under this section may expend not more than a total of 
        20 percent of the grant funds to carry out the activities 
        described in paragraphs (3), (4), and (5).
            ``(2) Priority.--A State educational agency shall give 
        priority to carrying out the activities described in paragraphs 
        (3), (4), and (5) for schools described in subsection (c)(6).
            ``(3) Professional inservice and preservice development and 
        review.--A State educational agency may expend not more than 65 
        percent of the amount of the funds made available under 
        paragraph (1)--
                    ``(A) to develop and implement a program of 
                professional development for teachers, including special 
                education teachers, of kindergarten through grade 3 
                that--
                          ``(i) will prepare these teachers in all the 
                      essential components of reading instruction;
                          ``(ii) shall include--
                                    ``(I) information on instructional 
                                materials, programs, strategies, and 
                                approaches based on scientifically based 
                                reading research, including early 
                                intervention and reading remediation 
                                materials, programs, and approaches; and
                                    ``(II) instruction in the use of 
                                screening, diagnostic, and classroom-
                                based instructional reading assessments 
                                and other scientifically based 
                                procedures that effectively identify 
                                students who may be at risk for reading 
                                failure or who are having difficulty 
                                reading; and
                          ``(iii) shall be provided by eligible 
                      professional development providers;
                    ``(B) to strengthen and enhance preservice courses 
                for students preparing, at all public institutions of 
                higher education in the State, to teach kindergarten 
                through grade 3 by--
                          ``(i) reviewing such courses to determine 
                      whether the courses' content is consistent with 
                      the findings of the most current scientifically 
                      based reading research, including findings on the 
                      essential components of reading instruction;
                          ``(ii) following up such reviews with 
                      recommendations to ensure that such institutions 
                      offer courses that meet the highest standards; and
                          ``(iii) <<NOTE: Reports. Public 
                      information. Internet.>> preparing a report on the 
                      results of such reviews, submitting the report to 
                      the reading and literacy partnership for the State 
                      established under section 1203(d), and making the 
                      report available for public review by means of the 
                      Internet; and
                    ``(C) to make recommendations on how the State 
                licensure and certification standards in the area of 
                reading might be improved.
            ``(4) Technical assistance for local educational agencies 
        and schools.--A State educational agency may expend

[[Page 115 STAT. 1541]]

        not more than 25 percent of the amount of the funds made 
        available under paragraph (1) for one or more of the following:
                    ``(A) Assisting local educational agencies in 
                accomplishing the tasks required to design and implement 
                a program under this subpart, including--
                          ``(i) selecting and implementing a program or 
                      programs of reading instruction based on 
                      scientifically based reading research;
                          ``(ii) selecting screening, diagnostic, and 
                      classroom-based instructional reading assessments; 
                      and
                          ``(iii) identifying eligible professional 
                      development providers to help prepare reading 
                      teachers to teach students using the programs and 
                      assessments described in clauses (i) and (ii).
                    ``(B) Providing expanded opportunities to students 
                in kindergarten through grade 3 who are served by 
                eligible local educational agencies for receiving 
                reading assistance from alternative providers that 
                includes--
                          ``(i) screening, diagnostic, and classroom-
                      based instructional reading assessments; and
                          ``(ii) as need is indicated by the assessments 
                      under clause (i), instruction based on 
                      scientifically based reading research that 
                      includes the essential components of reading 
                      instruction.
            ``(5) Planning, administration, and reporting.--
                    ``(A) Expenditure of funds.--A State educational 
                agency may expend not more than 10 percent of the amount 
                of funds made available under paragraph (1) for the 
                activities described in this paragraph.
                    ``(B) Planning and administration.--A State 
                educational agency that receives a grant under this 
                section may expend funds made available under 
                subparagraph (A) for planning and administration 
                relating to the State uses of funds authorized under 
                this subpart, including the following:
                          ``(i) Administering the distribution of 
                      competitive subgrants to eligible local 
                      educational agencies under subsection (c) and 
                      section 1204(d).
                          ``(ii) Assessing and evaluating, on a regular 
                      basis, eligible local educational agency 
                      activities assisted under this subpart, with 
                      respect to whether they have been effective in 
                      increasing the number of children in grades 1, 2, 
                      and 3 served under this subpart who can read at or 
                      above grade level.
                    ``(C) Annual reporting.--
                          ``(i) In general.--A State educational agency 
                      that receives a grant under this section shall 
                      expend funds made available under subparagraph (A) 
                      to provide the Secretary annually with a report on 
                      the implementation of this subpart.
                          ``(ii) Information included.--Each report 
                      under this subparagraph shall include information 
                      on the following:
                                    ``(I) Evidence that the State 
                                educational agency is fulfilling its 
                                obligations under this subpart.

[[Page 115 STAT. 1542]]

                                    ``(II) Specific identification of 
                                those schools and local educational 
                                agencies that report the largest gains 
                                in reading achievement.
                                    ``(III) The progress the State 
                                educational agency and local educational 
                                agencies within the State are making in 
                                reducing the number of students served 
                                under this subpart in grades 1, 2, and 3 
                                who are reading below grade level, as 
                                demonstrated by such information as 
                                teacher reports and school evaluations 
                                of mastery of the essential components 
                                of reading instruction.
                                    ``(IV) Evidence on whether the State 
                                educational agency and local educational 
                                agencies within the State have 
                                significantly increased the number of 
                                students reading at grade level or 
                                above, significantly increased the 
                                percentages of students described in 
                                section 1111(b)(2)(C)(v)(II) who are 
                                reading at grade level or above, and 
                                successfully implemented this subpart.
                          ``(iii) Privacy protection.--Data in the 
                      report shall be reported in a manner that protects 
                      the privacy of individuals.
                          ``(iv) Contract.--To the extent practicable, a 
                      State educational agency shall enter into a 
                      contract with an entity that conducts 
                      scientifically based reading research, under which 
                      contract the entity will assist the State 
                      educational agency in producing the reports 
                      required to be submitted under this subparagraph.

    ``(e) Review.--
            ``(1) Progress report.--
                    ``(A) <<NOTE: Deadline.>> Submission.--Not later 
                than 60 days after the termination of the third year of 
                the grant period, each State educational agency 
                receiving a grant under this section shall submit a 
                progress report to the Secretary.
                    ``(B) Information included.--The progress report 
                shall include information on the progress the State 
                educational agency and local educational agencies within 
                the State are making in reducing the number of students 
                served under this subpart in grades 1, 2, and 3 who are 
                reading below grade level (as demonstrated by such 
                information as teacher reports and school evaluations of 
                mastery of the essential components of reading 
                instruction). The report shall also include evidence 
                from the State educational agency and local educational 
                agencies within the State that the State educational 
                agency and the local educational agencies have 
                significantly increased the number of students reading 
                at grade level or above, significantly increased the 
                percentages of students described in section 
                1111(b)(2)(C)(v)(II) who are reading at grade level or 
                above, and successfully implemented this subpart.
            ``(2) Peer review.--The progress report described in 
        paragraph (1) shall be reviewed by the peer review panel 
        convened under section 1203(c)(2).
            ``(3) Consequences of insufficient progress.--After 
        submission of the progress report described in paragraph (1), if 
        the Secretary determines that the State educational agency is 
        not making significant progress in meeting the purposes

[[Page 115 STAT. 1543]]

        of this subpart, the Secretary may withhold from the State 
        educational agency, in whole or in part, further payments under 
        this section in accordance with section 455 of the General 
        Education Provisions Act or take such other action authorized by 
        law as the Secretary determines necessary, including providing 
        technical assistance upon request of the State educational 
        agency.

    ``(f) Funds not Used for State Level Activities.--Any portion of 
funds described in subsection (d)(1) that a State educational agency 
does not expend in accordance with subsection (d)(1) shall be expended 
for the purpose of making subgrants in accordance with subsection (c).

``SEC. <<NOTE: 20 USC 6363.>> 1203. STATE FORMULA GRANT APPLICATIONS.

    ``(a) Applications.--
            ``(1) In general.--A State educational agency that desires 
        to receive a grant under section 1202 shall submit an 
        application to the Secretary at such time and in such form as 
        the Secretary may require. The application shall contain the 
        information described in subsection (b).
            ``(2) Special application provisions.--For those State 
        educational agencies that have received a grant under part C of 
        title II (as such part was in effect on the day before the date 
        of enactment of the No Child Left Behind Act of 2001), the 
        Secretary shall establish a modified set of requirements for an 
        application under this section that takes into account the 
        information already submitted and approved under that program 
        and minimizes the duplication of effort on the part of such 
        State educational agencies.

    ``(b) Contents.--An application under this section shall contain the 
following:
            ``(1) An assurance that the Governor of the State, in 
        consultation with the State educational agency, has established 
        a reading and literacy partnership described in subsection (d), 
        and a description of how such partnership--
                    ``(A) coordinated the development of the 
                application; and
                    ``(B) will assist in the oversight and evaluation of 
                the State educational agency's activities under this 
                subpart.
            ``(2) A description, if applicable, of the State's strategy 
        to expand, continue, or modify activities authorized under part 
        C of title II (as such part was in effect on the day before the 
        date of enactment of the No Child Left Behind Act of 2001).
            ``(3) An assurance that the State educational agency, and 
        any local educational agencies receiving a subgrant from that 
        State educational agency under section 1202, will, if requested, 
        participate in the external evaluation under section 1205.
            ``(4) A State educational agency plan containing a 
        description of the following:
                    ``(A) How the State educational agency will assist 
                local educational agencies in identifying screening, 
                diagnostic, and classroom-based instructional reading 
                assessments.
                    ``(B) How the State educational agency will assist 
                local educational agencies in identifying instructional 
                materials, programs, strategies, and approaches, based 
                on scientifically based reading research, including 
                early intervention

[[Page 115 STAT. 1544]]

                and reading remediation materials, programs, and 
                approaches.
                    ``(C) How the State educational agency will ensure 
                that professional development activities related to 
                reading instruction and provided under section 1202 
                are--
                          ``(i) coordinated with other Federal, State, 
                      and local level funds, and used effectively to 
                      improve instructional practices for reading; and
                          ``(ii) based on scientifically based reading 
                      research.
                    ``(D) How the activities assisted under section 1202 
                will address the needs of teachers and other 
                instructional staff in implementing the essential 
                components of reading instruction.
                    ``(E) How subgrants made by the State educational 
                agency under section 1202 will meet the requirements of 
                section 1202, including how the State educational agency 
                will ensure that eligible local educational agencies 
                receiving subgrants under section 1202 will use 
                practices based on scientifically based reading 
                research.
                    ``(F) How the State educational agency will, to the 
                extent practicable, make grants to eligible local 
                educational agencies in both rural and urban areas.
                    ``(G) How the State educational agency will build 
                on, and promote coordination among literacy programs in 
                the State (including federally funded programs such as 
                programs under the Adult Education and Family Literacy 
                Act, the Individuals with Disabilities Education Act, 
                and subpart 2), to increase the effectiveness of the 
                programs in improving reading for adults and children 
                and to avoid duplication of the efforts of the program.
                    ``(H) How the State educational agency will assess 
                and evaluate, on a regular basis, eligible local 
                educational agency activities assisted under section 
                1202, with respect to whether the activities have been 
                effective in achieving the purposes of section 1202.
                    ``(I) Any other information that the Secretary may 
                reasonably require.

    ``(c) Approval of Applications.--
            ``(1) In general.--The Secretary shall approve an 
        application of a State educational agency under this section 
        only if such application meets the requirements of this section.
            ``(2) Peer review.--
                    ``(A) In general.--The Secretary, in consultation 
                with the National Institute for Literacy, shall convene 
                a panel to evaluate applications under this section. At 
                a minimum, the panel shall include--
                          ``(i) three individuals selected by the 
                      Secretary;
                          ``(ii) three individuals selected by the 
                      National Institute for Literacy;
                          ``(iii) three individuals selected by the 
                      National Research Council of the National Academy 
                      of Sciences; and
                          ``(iv) three individuals selected by the 
                      National Institute of Child Health and Human 
                      Development.
                    ``(B) Experts.--The panel shall include--

[[Page 115 STAT. 1545]]

                          ``(i) experts who are competent, by virtue of 
                      their training, expertise, or experience, to 
                      evaluate applications under this section;
                          ``(ii) experts who provide professional 
                      development to individuals who teach reading to 
                      children and adults based on scientifically based 
                      reading research;
                          ``(iii) experts who provide professional 
                      development to other instructional staff based on 
                      scientifically based reading research; and
                          ``(iv) an individual who has expertise in 
                      screening, diagnostic, and classroom-based 
                      instructional reading assessments.
                    ``(C) Recommendations.--The panel shall recommend 
                grant applications from State educational agencies under 
                this section to the Secretary for funding or for 
                disapproval.

    ``(d) Reading and Literacy Partnerships.--
            ``(1) In general.--For a State educational agency to receive 
        a grant under section 1202, the Governor of the State, in 
        consultation with the State educational agency, shall establish 
        a reading and literacy partnership.
            ``(2) Required participants.--The reading and literacy 
        partnership shall include the following participants:
                    ``(A) The Governor of the State.
                    ``(B) The chief State school officer.
                    ``(C) The chairman and the ranking member of each 
                committee of the State legislature that is responsible 
                for education policy.
                    ``(D) A representative, selected jointly by the 
                Governor and the chief State school officer, of at least 
                one eligible local educational agency.
                    ``(E) A representative, selected jointly by the 
                Governor and the chief State school officer, of a 
                community-based organization working with children to 
                improve their reading skills, particularly a community-
                based organization using tutors and scientifically based 
                reading research.
                    ``(F) State directors of appropriate Federal or 
                State programs with a strong reading component, selected 
                jointly by the Governor and the chief State school 
                officer.
                    ``(G) A parent of a public or private school student 
                or a parent who educates the parent's child in the 
                parent's home, selected jointly by the Governor and the 
                chief State school officer.
                    ``(H) A teacher, who may be a special education 
                teacher, who successfully teaches reading, and another 
                instructional staff member, selected jointly by the 
                Governor and the chief State school officer.
                    ``(I) A family literacy service provider selected 
                jointly by the Governor and the chief State school 
                officer.
            ``(3) Optional participants.--The reading and literacy 
        partnership may include additional participants, who shall be 
        selected jointly by the Governor and the chief State school 
        officer, and who may include a representative of--
                    ``(A) an institution of higher education operating a 
                program of teacher preparation in the State that is 
                based on scientifically based reading research;
                    ``(B) a local educational agency;

[[Page 115 STAT. 1546]]

                    ``(C) a private nonprofit or for-profit eligible 
                professional development provider providing instruction 
                based on scientifically based reading research;
                    ``(D) an adult education provider;
                    ``(E) a volunteer organization that is involved in 
                reading programs; or
                    ``(F) a school library or a public library that 
                offers reading or literacy programs for children or 
                families.
            ``(4) Preexisting partnership.--If, before the date of 
        enactment of the No Child Left Behind Act of 2001, a State 
        educational agency established a consortium, partnership, or any 
        other similar body that was considered a reading and literacy 
        partnership for purposes of part C of title II of this Act (as 
        such part was in effect on the day before the date of enactment 
        of No Child Left Behind Act of 2001), that consortium, 
        partnership, or body may be considered a reading and literacy 
        partnership for purposes of this subsection consistent with the 
        provisions of this subpart.

``SEC. <<NOTE: 20 USC 6364.>> 1204. TARGETED ASSISTANCE GRANTS.

    ``(a) Eligibility Criteria for Awarding Targeted Assistance Grants 
to States.--Beginning <<NOTE: Effective date.>> with fiscal year 2004, 
from funds appropriated under section 1202(b)(1)(E), the Secretary shall 
make grants, on a competitive basis, to those State educational agencies 
that--
            ``(1) for each of 2 consecutive years, demonstrate that an 
        increasing percentage of third graders in each of the groups 
        described in section 1111(b)(2)(C)(v)(II) in the schools served 
        by the local educational agencies receiving funds under section 
        1202 are reaching the proficient level in reading; and
            ``(2) for each of the same such consecutive 2 years, 
        demonstrate that schools receiving funds under section 1202 are 
        improving the reading skills of students in grades 1, 2, and 3 
        based on screening, diagnostic, and classroom-based 
        instructional reading assessments.

    ``(b) Continuation of Performance Awards.--For any State educational 
agency that receives a competitive grant under this section, the 
Secretary shall make an award for each of the succeeding years that the 
State educational agency demonstrates it is continuing to meet the 
criteria described in subsection (a).
    ``(c) Distribution of Targeted Assistance Grants.--
            ``(1) In general.--The Secretary shall make a grant to each 
        State educational agency with an application approved under this 
        section in an amount that bears the same relation to the amount 
        made available to carry out this section for a fiscal year as 
        the number of children counted under section 1124(c) for the 
        State bears to the number of such children so counted for all 
        States with applications approved for that year.
            ``(2) Peer review.--The peer review panel convened under 
        section 1203(c)(2) shall review the applications submitted under 
        this subsection. The panel shall recommend such applications to 
        the Secretary for funding or for disapproval.
            ``(3) Application contents.--A State educational agency that 
        desires to receive a grant under this section shall submit an 
        application to the Secretary at such time, in such manner,

[[Page 115 STAT. 1547]]

        and accompanied by such information as the Secretary may 
        require. Each such application shall include the following:
                    ``(A) Evidence that the State educational agency has 
                carried out its obligations under section 1203.
                    ``(B) Evidence that the State educational agency has 
                met the criteria described in subsection (a).
                    ``(C) The amount of funds requested by the State 
                educational agency and a description of the criteria the 
                State educational agency intends to use in distributing 
                subgrants to eligible local educational agencies under 
                this section to continue or expand activities under 
                subsection (d)(5).
                    ``(D) Evidence that the State educational agency has 
                increased significantly the percentage of students 
                reading at grade level or above.
                    ``(E) Any additional evidence that demonstrates 
                success in the implementation of this section.

    ``(d) Subgrants to Eligible Local Educational Agencies.--
            ``(1) In general.--The Secretary may make a grant to a State 
        educational agency under this section only if the State 
        educational agency agrees to expend 100 percent of the amount of 
        the funds provided under the grant for the purpose of making 
        competitive subgrants in accordance with this subsection to 
        eligible local educational agencies.
            ``(2) Notice.--A State educational agency receiving a grant 
        under this section shall provide notice to all local educational 
        agencies in the State of the availability of competitive 
        subgrants under this subsection and of the requirements for 
        applying for the subgrants.
            ``(3) Application.--To be eligible to receive a subgrant 
        under this subsection, an eligible local educational agency 
        shall submit an application to the State educational agency at 
        such time, in such manner, and containing such information as 
        the State educational agency may reasonably require.
            ``(4) Distribution.--
                    ``(A) In general.--A State educational agency shall 
                distribute subgrants under this section through a 
                competitive process based on relative need of eligible 
                local educational agencies and the evidence described in 
                this paragraph.
                    ``(B) Evidence used in all years.--For all fiscal 
                years, a State educational agency shall distribute 
                subgrants under this section based on evidence that an 
                eligible local educational agency--
                          ``(i) satisfies the requirements of section 
                      1202(c)(4);
                          ``(ii) will carry out its obligations under 
                      this subpart;
                          ``(iii) will work with other local educational 
                      agencies in the State that have not received a 
                      subgrant under this subsection to assist such 
                      nonreceiving agencies in increasing the reading 
                      achievement of students; and
                          ``(iv) is meeting the criteria described in 
                      subsection (a).
            ``(5) Local uses of funds.--An eligible local educational 
        agency that receives a subgrant under this subsection--

[[Page 115 STAT. 1548]]

                    ``(A) shall use the funds provided under the 
                subgrant to carry out the activities described in 
                section 1202(c)(7)(A); and
                    ``(B) may use such funds to carry out the activities 
                described in section 1202(c)(7)(B).

``SEC. <<NOTE: 20 USC 6365.>> 1205. EXTERNAL EVALUATION.

    ``(a) <<NOTE: Contracts.>> In General.--From funds reserved under 
section 1202(b)(1)(C), the Secretary shall contract with an independent 
organization outside of the Department for a 5-year, rigorous, 
scientifically valid, quantitative evaluation of this subpart.

    ``(b) Process.--The evaluation under subsection (a) shall be 
conducted by an organization that is capable of designing and carrying 
out an independent evaluation that identifies the effects of specific 
activities carried out by State educational agencies and local 
educational agencies under this subpart on improving reading 
instruction. Such evaluation shall take into account factors influencing 
student performance that are not controlled by teachers or education 
administrators.
    ``(c) Analysis.--The evaluation under subsection (a) shall include 
the following:
            ``(1) An analysis of the relationship between each of the 
        essential components of reading instruction and overall reading 
        proficiency.
            ``(2) An analysis of whether assessment tools used by State 
        educational agencies and local educational agencies measure the 
        essential components of reading.
            ``(3) An analysis of how State reading standards correlate 
        with the essential components of reading instruction.
            ``(4) An analysis of whether the receipt of a targeted 
        assistance grant under section 1204 results in an increase in 
        the number of children who read proficiently.
            ``(5) A measurement of the extent to which specific 
        instructional materials improve reading proficiency.
            ``(6) A measurement of the extent to which specific 
        screening, diagnostic, and classroom-based instructional reading 
        assessments assist teachers in identifying specific reading 
        deficiencies.
            ``(7) A measurement of the extent to which professional 
        development programs implemented by State educational agencies 
        using funds received under this subpart improve reading 
        instruction.
            ``(8) A measurement of how well students preparing to enter 
        the teaching profession are prepared to teach the essential 
        components of reading instruction.
            ``(9) An analysis of changes in students' interest in 
        reading and time spent reading outside of school.
            ``(10) Any other analysis or measurement pertinent to this 
        subpart that is determined to be appropriate by the Secretary.

    ``(d) Program Improvement.--The findings of the evaluation conducted 
under this section shall be provided to State educational agencies and 
local educational agencies on a periodic basis for use in program 
improvement.

``SEC. <<NOTE: 20 USC 6366.>> 1206. NATIONAL ACTIVITIES.

    ``From funds reserved under section 1202(b)(1)(C), the Secretary--

[[Page 115 STAT. 1549]]

            ``(1) may provide technical assistance in achieving the 
        purposes of this subpart to State educational agencies, local 
        educational agencies, and schools requesting such assistance;
            ``(2) shall, at a minimum, evaluate the impact of services 
        provided to children under this subpart with respect to their 
        referral to, and eligibility for, special education services 
        under the Individuals with Disabilities Education Act (based on 
        their difficulties learning to read); and
            ``(3) shall carry out the external evaluation as described 
        in section 1205.

``SEC. <<NOTE: 20 USC 6367.>> 1207. INFORMATION DISSEMINATION.

    ``(a) In General.--From funds reserved under section 1202(b)(1)(D), 
the National Institute for Literacy, in collaboration with the Secretary 
of Education, the Secretary of Health and Human Services, and the 
Director of the National Institute for Child Health and Human 
Development shall--
            ``(1) disseminate information on scientifically based 
        reading research pertaining to children, youth, and adults;
            ``(2) identify and disseminate information about schools, 
        local educational agencies, and State educational agencies that 
        have effectively developed and implemented classroom reading 
        programs that meet the requirements of this subpart, including 
        those State educational agencies, local educational agencies, 
        and schools that have been identified as effective through the 
        evaluation and peer review provisions of this subpart; and
            ``(3) support the continued identification and dissemination 
        of information on reading programs that contain the essential 
        components of reading instruction as supported by scientifically 
        based reading research, that can lead to improved reading 
        outcomes for children, youth, and adults.

    ``(b) Dissemination and Coordination.--At a minimum, the National 
Institute for Literacy shall disseminate the information described in 
subsection (a) to--
            ``(1) recipients of Federal financial assistance under this 
        title, title III, the Head Start Act, the Individuals with 
        Disabilities Education Act, and the Adult Education and Family 
        Literacy Act; and
            ``(2) each Bureau funded school (as defined in section 1141 
        of the Education Amendments of 1978).

    ``(c) Use of Existing Networks.--In carrying out this section, the 
National Institute for Literacy shall, to the extent practicable, use 
existing information and dissemination networks developed and maintained 
through other public and private entities including through the 
Department and the National Center for Family Literacy.
    ``(d) National Institute for Literacy.--For purposes of funds 
reserved under section 1202(b)(1)(D) to carry out this section, the 
National Institute for Literacy shall administer such funds in 
accordance with section 242(b) of Public Law 105-220 (relating to the 
establishment and administration of the National Institute for 
Literacy).

``SEC. <<NOTE: 20 USC 6368.>> 1208. DEFINITIONS.

    ``In this subpart:
            ``(1) Eligible local educational agency.--The term `eligible 
        local educational agency' means a local educational agency 
        that--

[[Page 115 STAT. 1550]]

                    ``(A) is among the local educational agencies in the 
                State with the highest numbers or percentages of 
                students in kindergarten through grade 3 reading below 
                grade level, based on the most currently available data; 
                and
                    ``(B) has--
                          ``(i) jurisdiction over a geographic area that 
                      includes an area designated as an empowerment 
                      zone, or an enterprise community, under part I of 
                      subchapter U of chapter 1 of the Internal Revenue 
                      Code of 1986;
                          ``(ii) jurisdiction over a significant number 
                      or percentage of schools that are identified for 
                      school improvement under section 1116(b); or
                          ``(iii) the highest numbers or percentages of 
                      children who are counted under section 1124(c), in 
                      comparison to other local educational agencies in 
                      the State.
            ``(2) Eligible professional development provider.--The term 
        `eligible professional development provider' means a provider of 
        professional development in reading instruction to teachers, 
        including special education teachers, that is based on 
        scientifically based reading research.
            ``(3) Essential components of reading instruction.--The term 
        `essential components of reading instruction' means explicit and 
        systematic instruction in--
                    ``(A) phonemic awareness;
                    ``(B) phonics;
                    ``(C) vocabulary development;
                    ``(D) reading fluency, including oral reading 
                skills; and
                    ``(E) reading comprehension strategies.
            ``(4) Instructional staff.--The term `instructional staff'--
                    ``(A) means individuals who have responsibility for 
                teaching children to read; and
                    ``(B) includes principals, teachers, supervisors of 
                instruction, librarians, library school media 
                specialists, teachers of academic subjects other than 
                reading, and other individuals who have responsibility 
                for assisting children to learn to read.
            ``(5) Reading.--The term `reading' means a complex system of 
        deriving meaning from print that requires all of the following:
                    ``(A) The skills and knowledge to understand how 
                phonemes, or speech sounds, are connected to print.
                    ``(B) The ability to decode unfamiliar words.
                    ``(C) The ability to read fluently.
                    ``(D) Sufficient background information and 
                vocabulary to foster reading comprehension.
                    ``(E) The development of appropriate active 
                strategies to construct meaning from print.
                    ``(F) The development and maintenance of a 
                motivation to read.
            ``(6) Scientifically based reading research.--The term 
        `scientifically based reading research' means research that--
                    ``(A) applies rigorous, systematic, and objective 
                procedures to obtain valid knowledge relevant to reading 
                development, reading instruction, and reading 
                difficulties; and
                    ``(B) includes research that--

[[Page 115 STAT. 1551]]

                          ``(i) employs systematic, empirical methods 
                      that draw on observation or experiment;
                          ``(ii) involves rigorous data analyses that 
                      are adequate to test the stated hypotheses and 
                      justify the general conclusions drawn;
                          ``(iii) relies on measurements or 
                      observational methods that provide valid data 
                      across evaluators and observers and across 
                      multiple measurements and observations; and
                          ``(iv) has been accepted by a peer-reviewed 
                      journal or approved by a panel of independent 
                      experts through a comparably rigorous, objective, 
                      and scientific review.
            ``(7) Screening, diagnostic, and classroom-based 
        instructional reading assessments.--
                    ``(A) In general.--The term `screening, diagnostic, 
                and classroom-based instructional reading assessments' 
                means--
                          ``(i) screening reading assessments;
                          ``(ii) diagnostic reading assessments; and
                          ``(iii) classroom-based instructional reading 
                      assessments.
                    ``(B) Screening reading assessment.--The term 
                `screening reading assessment' means an assessment that 
                is--
                          ``(i) valid, reliable, and based on 
                      scientifically based reading research; and
                          ``(ii) a brief procedure designed as a first 
                      step in identifying children who may be at high 
                      risk for delayed development or academic failure 
                      and in need of further diagnosis of their need for 
                      special services or additional reading 
                      instruction.
                    ``(C) Diagnostic reading assessment.--The term 
                `diagnostic reading assessment' means an assessment that 
                is--
                          ``(i) valid, reliable, and based on 
                      scientifically based reading research; and
                          ``(ii) used for the purpose of--
                                    ``(I) identifying a child's specific 
                                areas of strengths and weaknesses so 
                                that the child has learned to read by 
                                the end of grade 3;
                                    ``(II) determining any difficulties 
                                that a child may have in learning to 
                                read and the potential cause of such 
                                difficulties; and
                                    ``(III) helping to determine 
                                possible reading intervention strategies 
                                and related special needs.
                    ``(D) Classroom-based instructional reading 
                assessment.--The term `classroom-based instructional 
                reading assessment' means an assessment that--
                          ``(i) evaluates children's learning based on 
                      systematic observations by teachers of children 
                      performing academic tasks that are part of their 
                      daily classroom experience; and
                          ``(ii) is used to improve instruction in 
                      reading, including classroom instruction.

[[Page 115 STAT. 1552]]

                    ``Subpart 2--Early Reading First

``SEC. <<NOTE: 20 USC 6371.>> 1221. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this subpart are as follows:
            ``(1) To support local efforts to enhance the early 
        language, literacy, and prereading development of preschool age 
        children, particularly those from low-income families, through 
        strategies and professional development that are based on 
        scientifically based reading research.
            ``(2) To provide preschool age children with cognitive 
        learning opportunities in high-quality language and literature-
        rich environments, so that the children can attain the 
        fundamental knowledge and skills necessary for optimal reading 
        development in kindergarten and beyond.
            ``(3) To demonstrate language and literacy activities based 
        on scientifically based reading research that supports the age-
        appropriate development of--
                    ``(A) recognition, leading to automatic recognition, 
                of letters of the alphabet;
                    ``(B) knowledge of letter sounds, the blending of 
                sounds, and the use of increasingly complex vocabulary;
                    ``(C) an understanding that written language is 
                composed of phonemes and letters each representing one 
                or more speech sounds that in combination make up 
                syllables, words, and sentences;
                    ``(D) spoken language, including vocabulary and oral 
                comprehension abilities; and
                    ``(E) knowledge of the purposes and conventions of 
                print.
            ``(4) To use screening assessments to effectively identify 
        preschool age children who may be at risk for reading failure.
            ``(5) To integrate such scientific reading research-based 
        instructional materials and literacy activities with existing 
        programs of preschools, child care agencies and programs, Head 
        Start centers, and family literacy services.

    ``(b) Definitions.--For purposes of this subpart:
            ``(1) Eligible applicant.--The term `eligible applicant' 
        means--
                    ``(A) one or more local educational agencies that 
                are eligible to receive a subgrant under subpart 1;
                    ``(B) one or more public or private organizations or 
                agencies, acting on behalf of one or more programs that 
                serve preschool age children (such as a program at a 
                Head Start center, a child care program, or a family 
                literacy program), which organizations or agencies shall 
                be located in a community served by a local educational 
                agency described in subparagraph (A); or
                    ``(C) one or more local educational agencies 
                described in subparagraph (A) in collaboration with one 
                or more organizations or agencies described in 
                subparagraph (B).
            ``(2) Scientifically based reading research.--The term 
        `scientifically based reading research' has the same meaning 
        given to that term in section 1208.
            ``(3) Screening reading assessment.--The term `screening 
        reading assessment' has the same meaning given to that term in 
        section 1208.

[[Page 115 STAT. 1553]]

``SEC. <<NOTE: 20 USC 6372.>> 1222. LOCAL EARLY READING FIRST GRANTS.

    ``(a) Program Authorized.--From amounts appropriated under section 
1002(b)(2), the Secretary shall award grants, on a competitive basis, 
for periods of not more than 6 years, to eligible applicants to enable 
the eligible applicants to carry out the authorized activities described 
in subsection (d).
    ``(b) Applications.--An eligible applicant that desires to receive a 
grant under this section shall submit an application to the Secretary, 
which shall include a description of--
            ``(1) the programs to be served by the proposed project, 
        including demographic and socioeconomic information on the 
        preschool age children enrolled in the programs;
            ``(2) how the proposed project will enhance the school 
        readiness of preschool age children in high-quality oral 
        language and literature-rich environments;
            ``(3) how the proposed project will prepare and provide 
        ongoing assistance to staff in the programs, through 
        professional development and other support, to provide high-
        quality language, literacy, and prereading activities using 
        scientifically based reading research, for preschool age 
        children;
            ``(4) how the proposed project will provide services and use 
        instructional materials that are based on scientifically based 
        reading research on early language acquisition, prereading 
        activities, and the development of spoken vocabulary skills;
            ``(5) how the proposed project will help staff in the 
        programs to meet more effectively the diverse needs of preschool 
        age children in the community, including such children with 
        limited English proficiency, disabilities, or other special 
        needs;
            ``(6) how the proposed project will integrate such 
        instructional materials and literacy activities with existing 
        preschool programs and family literacy services;
            ``(7) how the proposed project will help children, 
        particularly children experiencing difficulty with spoken 
        language, prereading, and early reading skills, to make the 
        transition from preschool to formal classroom instruction in 
        school;
            ``(8) if the eligible applicant has received a subgrant 
        under subpart 1, how the activities conducted under this subpart 
        will be coordinated with the eligible applicant's activities 
        under subpart 1 at the kindergarten through grade 3 level;
            ``(9) how the proposed project will evaluate the success of 
        the activities supported under this subpart in enhancing the 
        early language, literacy, and prereading development of 
        preschool age children served by the project; and
            ``(10) such other information as the Secretary may require.

    ``(c) Approval of Local Applications.--The Secretary shall select 
applicants for funding under this subpart based on the quality of the 
applications and the recommendations of a peer review panel convened 
under section 1203(c)(2), that includes, at a minimum, three 
individuals, selected from the entities described in clauses (ii), 
(iii), and (iv) of section 1203(c)(2)(A), who are experts in early 
reading development and early childhood development.
    ``(d) Authorized Activities.--An eligible applicant that receives a 
grant under this subpart shall use the funds provided under the grant to 
carry out the following activities:

[[Page 115 STAT. 1554]]

            ``(1) Providing preschool age children with high-quality 
        oral language and literature-rich environments in which to 
        acquire language and prereading skills.
            ``(2) Providing professional development that is based on 
        scientifically based reading research knowledge of early 
        language and reading development for the staff of the eligible 
        applicant and that will assist in developing the preschool age 
        children's--
                    ``(A) recognition, leading to automatic recognition, 
                of letters of the alphabet, knowledge of letters, 
                sounds, blending of letter sounds, and increasingly 
                complex vocabulary;
                    ``(B) understanding that written language is 
                composed of phonemes and letters each representing one 
                or more speech sounds that in combination make up 
                syllables, words, and sentences;
                    ``(C) spoken language, including vocabulary and oral 
                comprehension abilities; and
                    ``(D) knowledge of the purposes and conventions of 
                print.
            ``(3) Identifying and providing activities and instructional 
        materials that are based on scientifically based reading 
        research for use in developing the skills and abilities 
        described in paragraph (2).
            ``(4) Acquiring, providing training for, and implementing 
        screening reading assessments or other appropriate measures that 
        are based on scientifically based reading research to determine 
        whether preschool age children are developing the skills 
        described in this subsection.
            ``(5) Integrating such instructional materials, activities, 
        tools, and measures into the programs offered by the eligible 
        applicant.

    ``(e) Award Amounts.--The Secretary may establish a maximum award 
amount, or ranges of award amounts, for grants under this subpart.

``SEC. <<NOTE: 20 USC 6373.>> 1223. FEDERAL ADMINISTRATION.

    ``The Secretary shall consult with the Secretary of Health and Human 
Services to coordinate the activities under this subpart with preschool 
age programs administered by the Department of Health and Human 
Services.

``SEC. 1224. <<NOTE: 20 USC 6374.>> INFORMATION DISSEMINATION.

    ``From the funds the National Institute for Literacy receives under 
section 1202(b)(1)(D), the National Institute for Literacy, in 
consultation with the Secretary, shall disseminate information regarding 
projects assisted under this subpart that have proven effective.

``SEC. <<NOTE: 20 USC 6375.>> 1225. REPORTING REQUIREMENTS.

    ``Each eligible applicant receiving a grant under this subpart shall 
report annually to the Secretary regarding the eligible applicant's 
progress in addressing the purposes of this subpart. Such report shall 
include, at a minimum, a description of--
            ``(1) the research-based instruction, materials, and 
        activities being used in the programs funded under the grant;
            ``(2) the types of programs funded under the grant and the 
        ages of children served by such programs;

[[Page 115 STAT. 1555]]

            ``(3) the qualifications of the program staff who provide 
        early literacy instruction under such programs and the type of 
        ongoing professional development provided to such staff; and
            ``(4) the results of the evaluation described in section 
        1222(b)(9).

``SEC. <<NOTE: 20 USC 6376.>> 1226. EVALUATION.

    ``(a) <<NOTE: Effective date. Termination date.>> In General.--From 
the total amount made available under section 1002(b)(2) for the period 
beginning October 1, 2002, and ending September 30, 2006, the Secretary 
shall reserve not more than $3,000,000 to conduct an independent 
evaluation of the effectiveness of this subpart.

    ``(b) <<NOTE: Deadlines.>> Reports.--
            ``(1) Interim report.--Not later than October 1, 2004, the 
        Secretary shall submit an interim report to the Committee on 
        Education and the Workforce of the House of Representatives and 
        the Committee on Health, Education, Labor, and Pensions of the 
        Senate.
            ``(2) Final report.--Not later than September 30, 2006, the 
        Secretary shall submit a final report to the committees 
        described in paragraph (1).

    ``(c) Contents.--The reports submitted under subsection (b) shall 
include information on the following:
            ``(1) How the grant recipients under this subpart are 
        improving the prereading skills of preschool children.
            ``(2) The effectiveness of the professional development 
        program assisted under this subpart.
            ``(3) How early childhood teachers are being prepared with 
        scientifically based reading research on early reading 
        development.
            ``(4) What activities and instructional practices are most 
        effective.
            ``(5) How prereading instructional materials and literacy 
        activities based on scientifically based reading research are 
        being integrated into preschools, child care agencies and 
        programs, programs carried out under the Head Start Act, and 
        family literacy programs.
            ``(6) Any recommendations on strengthening or modifying this 
        subpart.

  ``Subpart 3--William F. Goodling Even Start Family Literacy Programs

``SEC. <<NOTE: 20 USC 6381.>> 1231. STATEMENT OF PURPOSE.

    ``It is the purpose of this subpart to help break the cycle of 
poverty and illiteracy by--
            ``(1) improving the educational opportunities of the 
        Nation's low-income families by integrating early childhood 
        education, adult literacy or adult basic education, and 
        parenting education into a unified family literacy program, to 
        be referred to as `Even Start'; and
            ``(2) establishing a program that shall--
                    ``(A) be implemented through cooperative projects 
                that build on high-quality existing community resources 
                to create a new range of services;

[[Page 115 STAT. 1556]]

                    ``(B) promote the academic achievement of children 
                and adults;
                    ``(C) assist children and adults from low-income 
                families to achieve to challenging State content 
                standards and challenging State student achievement 
                standards; and
                    ``(D) use instructional programs based on 
                scientifically based reading research and addressing the 
                prevention of reading difficulties for children and 
                adults, to the extent such research is available.

``SEC. <<NOTE: 20 USC 6381a.>> 1232. PROGRAM AUTHORIZED.

    ``(a) Reservation for Migrant Programs, Outlying Areas, and Indian 
Tribes.--
            ``(1) In general.--For each fiscal year, the Secretary shall 
        reserve 5 percent of the amount appropriated under section 
        1002(b)(3) (or, if such appropriated amount exceeds 
        $200,000,000, 6 percent of such amount) for programs, under such 
        terms and conditions as the Secretary shall establish, that are 
        consistent with the purpose of this subpart, and according to 
        their relative needs, for--
                    ``(A) children of migratory workers;
                    ``(B) the outlying areas; and
                    ``(C) Indian tribes and tribal organizations.
            ``(2) Special rule.--After December 21, 2000, the Secretary 
        shall award a grant, on a competitive basis, of sufficient size 
        and for a period of sufficient duration to demonstrate the 
        effectiveness of a family literacy program in a prison that 
        houses women and their preschool age children and that has the 
        capability of developing a program of high quality.
            ``(3) Coordination of programs for american indians.--The 
        Secretary shall ensure that programs under paragraph (1)(C) are 
        coordinated with family literacy programs operated by the Bureau 
        of Indian Affairs in order to avoid duplication and to encourage 
        the dissemination of information on high-quality family literacy 
        programs serving American Indians.

    ``(b) Reservation for Federal Activities.--
            ``(1) Evaluation, technical assistance, program improvement, 
        and replication activities.--Subject to paragraph (2), from 
        amounts appropriated under section 1002(b)(3), the Secretary may 
        reserve not more than 3 percent of such amounts for purposes 
        of--
                    ``(A) carrying out the evaluation required by 
                section 1239; and
                    ``(B) providing, through grants or contracts with 
                eligible organizations, technical assistance, program 
                improvement, and replication activities.
            ``(2) Research.--In any fiscal year, if the amount 
        appropriated under section 1002(b)(3) for such year--
                    ``(A) is equal to or less than the amount 
                appropriated for the preceding fiscal year, the 
                Secretary may reserve from such amount only the amount 
                necessary to continue multi-year activities carried out 
                pursuant to section 1241(b) that began during or prior 
                to the fiscal year preceding the fiscal year for which 
                the determination is made; or
                    ``(B) exceeds the amount appropriated for the 
                preceding fiscal year, then the Secretary shall reserve 
                from such

[[Page 115 STAT. 1557]]

                excess amount $2,000,000 or 50 percent, whichever is 
                less, to carry out section 1241(b).

    ``(c) Reservation for Grants.--
            ``(1) Grants authorized.--
                    ``(A) In general.--For any fiscal year for which at 
                least one State educational agency applies and submits 
                an application that meets the requirements and goals of 
                this subsection and for which the amount appropriated 
                under section 1002(b)(3) exceeds the amount appropriated 
                under that section for the preceding fiscal year, the 
                Secretary shall reserve, from the amount of the excess 
                remaining after the application of subsection (b)(2), 
                the amount of the remainder or $1,000,000, whichever is 
                less, to award grants, on a competitive basis, to State 
                educational agencies to enable them to plan and 
                implement statewide family literacy initiatives to 
                coordinate and, where appropriate, integrate existing 
                Federal, State, and local literacy resources consistent 
                with the purposes of this subpart.
                    ``(B) Coordination and integration.--The 
                coordination and integration described in subparagraph 
                (A) shall include coordination and integration of funds 
                available under the Adult Education and Family Literacy 
                Act, the Head Start Act, this subpart, part A of this 
                title, and part A of title IV of the Social Security 
                Act.
                    ``(C) Restriction.--No State educational agency may 
                receive more than one grant under this subsection.
            ``(2) Consortia.--
                    ``(A) Establishment.--To receive a grant under this 
                subsection, a State educational agency shall establish a 
                consortium of State-level programs under the following 
                provisions of laws:
                          ``(i) This title (other than part D).
                          ``(ii) The Head Start Act.
                          ``(iii) The Adult Education and Family 
                      Literacy Act.
                          ``(iv) All other State-funded preschool 
                      programs and programs providing literacy services 
                      to adults.
                    ``(B) Plan.--To receive a grant under this 
                subsection, the consortium established by a State 
                educational agency shall create a plan to use a portion 
                of the State educational agency's resources, derived 
                from the programs referred to in subparagraph (A), to 
                strengthen and expand family literacy services in the 
                State.
                    ``(C) Coordination with subpart 1.--The consortium 
                shall coordinate its activities under this paragraph 
                with the activities of the reading and literacy 
                partnership for the State educational agency established 
                under section 1203(d), if the State educational agency 
                receives a grant under section 1202.
            ``(3) Reading instruction.--Statewide family literacy 
        initiatives implemented under this subsection shall base reading 
        instruction on scientifically based reading research.
            ``(4) Technical assistance.--The Secretary shall provide, 
        directly or through a grant or contract with an organization 
        with experience in the development and operation of successful

[[Page 115 STAT. 1558]]

        family literacy services, technical assistance to State 
        educational agencies receiving a grant under this subsection.
            ``(5) Matching requirement.--The Secretary shall not make a 
        grant to a State educational agency under this subsection unless 
        the State educational agency agrees that, with respect to the 
        costs to be incurred by the eligible consortium in carrying out 
        the activities for which the grant was awarded, the State 
        educational agency will make available non-Federal contributions 
        in an amount equal to not less than the Federal funds provided 
        under the grant.

    ``(d) State Educational Agency Allocation.--
            ``(1) In general.--From amounts appropriated under section 
        1002(b)(3) and not reserved under subsection (a), (b), or (c), 
        the Secretary shall make grants to State educational agencies 
        from allocations under paragraph (2).
            ``(2) Allocations.--Except as provided in paragraph (3), 
        from the total amount available under paragraph (1) for 
        allocation to State educational agencies in any fiscal year, 
        each State educational agency shall be eligible to receive a 
        grant under paragraph (1) in an amount that bears the same ratio 
        to the total amount as the amount allocated under part A to that 
        State educational agency bears to the total amount allocated 
        under that part to all State educational agencies.
            ``(3) Minimum.--No State educational agency shall receive a 
        grant under paragraph (1) in any fiscal year in an amount that 
        is less than $250,000, or one-half of 1 percent of the amount 
        appropriated under section 1002(b)(3) and not reserved under 
        subsections (a), (b), and (c) for such year, whichever is 
        greater.

    ``(e) Definitions.--For the purpose of this subpart--
            ``(1) the term `eligible entity' means a partnership 
        composed of--
                    ``(A) a local educational agency; and
                    ``(B) a nonprofit community-based organization, a 
                public agency other than a local educational agency, an 
                institution of higher education, or a public or private 
                nonprofit organization other than a local educational 
                agency, of demonstrated quality;
            ``(2) the term `eligible organization' means any public or 
        private nonprofit organization with a record of providing 
        effective services to family literacy providers, such as the 
        National Center for Family Literacy, Parents as Teachers, Inc., 
        the Home Instruction Program for Preschool Youngsters, and the 
        Home and School Institute, Inc.;
            ``(3) the terms `Indian tribe' and `tribal organization' 
        have the meanings given those terms in section 4 of the Indian 
        Self-Determination and Education Assistance Act;
            ``(4) the term `scientifically based reading research' has 
        the meaning given that term in section 1208; and
            ``(5) the term `State' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. <<NOTE: 20 USC 6381b.>> 1233. STATE EDUCATIONAL AGENCY PROGRAMS.

    ``(a) State Educational Agency Level Activities.--Each State 
educational agency that receives a grant under section 1232(d)(1) may 
use not more than a total of 6 percent of the grant funds for the costs 
of--

[[Page 115 STAT. 1559]]

            ``(1) administration, which amount shall not exceed half of 
        the total;
            ``(2) providing, through one or more subgrants or contracts, 
        technical assistance for program improvement and replication, to 
        eligible entities that receive subgrants under subsection (b); 
        and
            ``(3) carrying out sections 1240 and 1234(c).

    ``(b) Subgrants for Local Programs.--
            ``(1) In general.--Each State educational agency shall use 
        the grant funds received under section 1232(d)(1) and not 
        reserved under subsection (a) to award subgrants to eligible 
        entities to carry out Even Start programs.
            ``(2) Minimum subgrant amounts.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), no State educational agency 
                shall award a subgrant under paragraph (1) in an amount 
                less than $75,000.
                    ``(B) Subgrantees in ninth and succeeding years.--No 
                State educational agency shall award a subgrant under 
                paragraph (1) in an amount less than $52,500 to an 
                eligible entity for a fiscal year to carry out an Even 
                Start program that is receiving assistance under this 
                subpart or its predecessor authority for the ninth (or 
                any subsequent) fiscal year.
                    ``(C) Exception for single subgrant.--A State 
                educational agency may award one subgrant in each fiscal 
                year of sufficient size, scope, and quality to be 
                effective in an amount less than $75,000 if, after 
                awarding subgrants under paragraph (1) for that fiscal 
                year in accordance with subparagraphs (A) and (B), less 
                than $75,000 is available to the State educational 
                agency to award those subgrants.

``SEC. <<NOTE: 20 USC 6381c.>> 1234. USES OF FUNDS.

    ``(a) In General.--In carrying out an Even Start program under this 
subpart, a recipient of funds under this subpart shall use those funds 
to pay the Federal share of the cost of providing intensive family 
literacy services that involve parents and children, from birth through 
age 7, in a cooperative effort to help parents become full partners in 
the education of their children and to assist children in reaching their 
full potential as learners.
    ``(b) Federal Share Limitation.--
            ``(1) In general.--
                    ``(A) Federal share.--Except as provided in 
                paragraph (2), the Federal share under this subpart may 
                not exceed--
                          ``(i) 90 percent of the total cost of the 
                      program in the first year that the program 
                      receives assistance under this subpart or its 
                      predecessor authority;
                          ``(ii) 80 percent in the second year;
                          ``(iii) 70 percent in the third year;
                          ``(iv) 60 percent in the fourth year;
                          ``(v) 50 percent in the fifth, sixth, seventh, 
                      and eighth such years; and
                          ``(vi) 35 percent in any subsequent year.
                    ``(B) Remaining cost.--The remaining cost of a 
                program assisted under this subpart may be provided in 
                cash or in kind, fairly evaluated, and may be obtained 
                from any source, including other Federal funds under 
                this Act.

[[Page 115 STAT. 1560]]

            ``(2) Waiver.--The State educational agency may waive, in 
        whole or in part, the Federal share described in paragraph (1) 
        for an eligible entity if the entity--
                    ``(A) demonstrates that it otherwise would not be 
                able to participate in the program assisted under this 
                subpart; and
                    ``(B) negotiates an agreement with the State 
                educational agency with respect to the amount of the 
                remaining cost to which the waiver will be applicable.
            ``(3) Prohibition.--Federal funds provided under this 
        subpart may not be used for the indirect costs of a program 
        assisted under this subpart, except that the Secretary may waive 
        this paragraph if an eligible recipient of funds reserved under 
        section 1232(a)(1)(C) demonstrates to the Secretary's 
        satisfaction that the recipient otherwise would not be able to 
        participate in the program assisted under this subpart.

    ``(c) Use of Funds for Family Literacy Services.--
            ``(1) In general.--A State educational agency may use a 
        portion of funds reserved under section 1233(a), to assist 
        eligible entities receiving a subgrant under section 1233(b) in 
        improving the quality of family literacy services provided under 
        Even Start programs under this subpart, except that in no case 
        may a State educational agency's use of funds for this purpose 
        for a fiscal year result in a decrease from the level of 
        activities and services provided to program participants in the 
        preceding year.
            ``(2) Priority.--In carrying out paragraph (1), a State 
        educational agency shall give priority to programs that were of 
        low quality, as evaluated based on the indicators of program 
        quality developed by the State educational agency under section 
        1240.
            ``(3) Technical assistance to help local programs raise 
        additional funds.--In carrying out paragraph (1), a State 
        educational agency may use the funds referred to in that 
        paragraph to provide technical assistance to help local programs 
        of demonstrated effectiveness to access and leverage additional 
        funds for the purpose of expanding services and reducing waiting 
        lists, including requesting and applying for non-Federal 
        resources.
            ``(4) Technical assistance and training.--Assistance under 
        paragraph (1) shall be in the form of technical assistance and 
        training, provided by a State educational agency through a 
        grant, contract, or cooperative agreement with an entity that 
        has experience in offering high-quality training and technical 
        assistance to family literacy providers.

``SEC. <<NOTE: 20 USC 6381d.>> 1235. PROGRAM ELEMENTS.

    ``Each program assisted under this subpart shall--
            ``(1) include the identification and recruitment of families 
        most in need of services provided under this subpart, as 
        indicated by a low level of income, a low level of adult 
        literacy or English language proficiency of the eligible parent 
        or parents, and other need-related indicators;
            ``(2) include screening and preparation of parents, 
        including teenage parents, and children to enable those parents 
        and

[[Page 115 STAT. 1561]]

        children to participate fully in the activities and services 
        provided under this subpart, including testing, referral to 
        necessary counselling, other developmental and support services, 
        and related services;
            ``(3) be designed to accommodate the participants' work 
        schedule and other responsibilities, including the provision of 
        support services, when those services are unavailable from other 
        sources, necessary for participation in the activities assisted 
        under this subpart, such as--
                    ``(A) scheduling and locating of services to allow 
                joint participation by parents and children;
                    ``(B) child care for the period that parents are 
                involved in the program provided under this subpart; and
                    ``(C) transportation for the purpose of enabling 
                parents and their children to participate in programs 
                authorized by this subpart;
            ``(4) include high-quality, intensive instructional programs 
        that promote adult literacy and empower parents to support the 
        educational growth of their children, developmentally 
        appropriate early childhood educational services, and 
        preparation of children for success in regular school programs;
            ``(5) with respect to the qualifications of staff the cost 
        of whose salaries are paid, in whole or in part, with Federal 
        funds provided under this subpart, ensure that--
                    ``(A) <<NOTE: Deadline.>> not later than December 
                21, 2004--
                          ``(i) a majority of the individuals providing 
                      academic instruction--
                                    ``(I) shall have obtained an 
                                associate's, bachelor's, or graduate 
                                degree in a field related to early 
                                childhood education, elementary school 
                                or secondary school education, or adult 
                                education; and
                                    ``(II) if applicable, shall meet 
                                qualifications established by the State 
                                for early childhood education, 
                                elementary school or secondary school 
                                education, or adult education provided 
                                as part of an Even Start program or 
                                another family literacy program;
                          ``(ii) the individual responsible for 
                      administration of family literacy services under 
                      this subpart has received training in the 
                      operation of a family literacy program; and
                          ``(iii) paraprofessionals who provide support 
                      for academic instruction have a secondary school 
                      diploma or its recognized equivalent; and
                    ``(B) all new personnel hired to provide academic 
                instruction--
                          ``(i) have obtained an associate's, 
                      bachelor's, or graduate degree in a field related 
                      to early childhood education, elementary school or 
                      secondary school education, or adult education; 
                      and
                          ``(ii) if applicable, meet qualifications 
                      established by the State for early childhood 
                      education, elementary school or secondary school 
                      education, or adult education provided as part of 
                      an Even Start program or another family literacy 
                      program;

[[Page 115 STAT. 1562]]

            ``(6) include special training of staff, including child-
        care staff, to develop the skills necessary to work with parents 
        and young children in the full range of instructional services 
        offered through this subpart;
            ``(7) provide and monitor integrated instructional services 
        to participating parents and children through home-based 
        programs;
            ``(8) operate on a year-round basis, including the provision 
        of some program services, including instructional and enrichment 
        services, during the summer months;
            ``(9) be coordinated with--
                    ``(A) other programs assisted under this Act;
                    ``(B) any relevant programs under the Adult 
                Education and Family Literacy Act, the Individuals with 
                Disabilities Education Act, and title I of the Workforce 
                Investment Act of 1998; and
                    ``(C) the Head Start program, volunteer literacy 
                programs, and other relevant programs;
            ``(10) use instructional programs based on scientifically 
        based reading research for children and adults, to the extent 
        that research is available;
            ``(11) encourage participating families to attend regularly 
        and to remain in the program a sufficient time to meet their 
        program goals;
            ``(12) include reading-readiness activities for preschool 
        children based on scientifically based reading research, to the 
        extent available, to ensure that children enter school ready to 
        learn to read;
            ``(13) if applicable, promote the continuity of family 
        literacy to ensure that individuals retain and improve their 
        educational outcomes;
            ``(14) ensure that the programs will serve those families 
        most in need of the activities and services provided by this 
        subpart; and
            ``(15) provide for an independent evaluation of the program, 
        to be used for program improvement.

``SEC. <<NOTE: 20 USC 6381e.>> 1236. ELIGIBLE PARTICIPANTS.

    ``(a) In General.--Except as provided in subsection (b), eligible 
participants in an Even Start program are--
            ``(1) a parent or parents--
                    ``(A) who are eligible for participation in adult 
                education and literacy activities under the Adult 
                Education and Family Literacy Act; or
                    ``(B) who are within the State's compulsory school 
                attendance age range, so long as a local educational 
                agency provides (or ensures the availability of) the 
                basic education component required under this subpart, 
                or who are attending secondary school; and
            ``(2) the child or children, from birth through age 7, of 
        any individual described in paragraph (1).

    ``(b) Eligibility for Certain Other Participants.--
            ``(1) In general.--Family members of eligible participants 
        described in subsection (a) may participate in activities and 
        services provided under this subpart, when appropriate to serve 
        the purpose of this subpart.

[[Page 115 STAT. 1563]]

            ``(2) Special rule.--Any family participating in a program 
        assisted under this subpart that becomes ineligible to 
        participate as a result of one or more members of the family 
        becoming ineligible to participate may continue to participate 
        in the program until all members of the family become ineligible 
        to participate, which--
                    ``(A) in the case of a family in which ineligibility 
                was due to the child or children of the family attaining 
                the age of 8, shall be in 2 years or when the parent or 
                parents become ineligible due to educational 
                advancement, whichever occurs first; and
                    ``(B) in the case of a family in which ineligibility 
                was due to the educational advancement of the parent or 
                parents of the family, shall be when all children in the 
                family attain the age of 8.
            ``(3) Children 8 years of age or older.--If an Even Start 
        program assisted under this subpart collaborates with a program 
        under part A, and funds received under the part A program 
        contribute to paying the cost of providing programs under this 
        subpart to children 8 years of age or older, the Even Start 
        program may, notwithstanding subsection (a)(2), permit the 
        participation of children 8 years of age or older if the focus 
        of the program continues to remain on families with young 
        children.

``SEC. <<NOTE: 20 USC 6381f.>> 1237. APPLICATIONS.

    ``(a) Submission.--To be eligible to receive a subgrant under this 
subpart, an eligible entity shall submit an application to the State 
educational agency in such form and containing or accompanied by such 
information as the State educational agency shall require.
    ``(b) Required Documentation.--Each application shall include 
documentation, satisfactory to the State educational agency, that the 
eligible entity has the qualified personnel needed--
            ``(1) to develop, administer, and implement an Even Start 
        program under this subpart; and
            ``(2) to provide access to the special training necessary to 
        prepare staff for the program, which may be offered by an 
        eligible organization.

    ``(c) Plan.--
            ``(1) In general.--The application shall also include a plan 
        of operation and continuous improvement for the program, that 
        includes--
                    ``(A) a description of the program objectives, 
                strategies to meet those objectives, and how those 
                strategies and objectives are consistent with the 
                program indicators established by the State;
                    ``(B) a description of the activities and services 
                that will be provided under the program, including a 
                description of how the program will incorporate the 
                program elements required by section 1235;
                    ``(C) a description of the population to be served 
                and an estimate of the number of participants to be 
                served;
                    ``(D) as appropriate, a description of the 
                applicant's collaborative efforts with institutions of 
                higher education, community-based organizations, the 
                State educational agency, private elementary schools, or 
                other eligible

[[Page 115 STAT. 1564]]

                organizations in carrying out the program for which 
                assistance is sought;
                    ``(E) a statement of the methods that will be used--
                          ``(i) to ensure that the programs will serve 
                      families most in need of the activities and 
                      services provided by this subpart;
                          ``(ii) to provide services under this subpart 
                      to individuals with special needs, such as 
                      individuals with limited English proficiency and 
                      individuals with disabilities; and
                          ``(iii) to encourage participants to remain in 
                      the program for a time sufficient to meet the 
                      program's purpose;
                    ``(F) a description of how the plan is integrated 
                with other programs under this Act or other Acts, as 
                appropriate; and
                    ``(G) a description of how the plan provides for 
                rigorous and objective evaluation of progress toward the 
                program objectives described in subparagraph (A) and for 
                continuing use of evaluation data for program 
                improvement.
            ``(2) Duration of the plan.--Each plan submitted under 
        paragraph (1) shall--
                    ``(A) remain in effect for the duration of the 
                eligible entity's participation under this subpart; and
                    ``(B) be periodically reviewed and revised by the 
                eligible entity as necessary.

    ``(d) Consolidated Application.--The plan described in subsection 
(c)(1) may be submitted as part of a consolidated application under 
section 9305.

``SEC. <<NOTE: 20 USC 6381g.>> 1238. AWARD OF SUBGRANTS.

    ``(a) Selection Process.--
            ``(1) In general.--The State educational agency shall 
        establish a review panel in accordance with paragraph (3) that 
        will approve applications that--
                    ``(A) are most likely to be successful in--
                          ``(i) meeting the purpose of this subpart; and
                          ``(ii) effectively implementing the program 
                      elements required under section 1235;
                    ``(B) demonstrate that the area to be served by the 
                program has a high percentage or a large number of 
                children and families who are in need of those services 
                as indicated by high levels of poverty, illiteracy, 
                unemployment, limited English proficiency, or other 
                need-related indicators, such as a high percentage of 
                children to be served by the program who reside in a 
                school attendance area served by a local educational 
                agency eligible for participation in programs under part 
                A, a high number or percentage of parents who have been 
                victims of domestic violence, or a high number or 
                percentage of parents who are receiving assistance under 
                a State program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.);
                    ``(C) provide services for at least a 3-year age 
                range, which may begin at birth;

[[Page 115 STAT. 1565]]

                    ``(D) demonstrate the greatest possible cooperation 
                and coordination between a variety of relevant service 
                providers in all phases of the program;
                    ``(E) include cost-effective budgets, given the 
                scope of the application;
                    ``(F) demonstrate the applicant's ability to provide 
                the non-Federal share required by section 1234(b);
                    ``(G) are representative of urban and rural regions 
                of the State; and
                    ``(H) show the greatest promise for providing models 
                that may be adopted by other family literacy projects 
                and other local educational agencies.
            ``(2) Priority for subgrants.--The State educational agency 
        shall give priority for subgrants under this subsection to 
        applications that--
                    ``(A) target services primarily to families 
                described in paragraph (1)(B); or
                    ``(B) are located in areas designated as empowerment 
                zones or enterprise communities.
            ``(3) Review panel.--A review panel shall consist of at 
        least three members, including one early childhood professional, 
        one adult education professional, and one individual with 
        expertise in family literacy programs, and may include other 
        individuals, such as one or more of the following:
                    ``(A) A representative of a parent-child education 
                organization.
                    ``(B) A representative of a community-based literacy 
                organization.
                    ``(C) A member of a local board of education.
                    ``(D) A representative of business and industry with 
                a commitment to education.
                    ``(E) An individual who has been involved in the 
                implementation of programs under this title in the 
                State.

    ``(b) Duration.--
            ``(1) In general.--Subgrants under this subpart may be 
        awarded for a period not to exceed 4 years.
            ``(2) Startup period.--The State educational agency may 
        provide subgrant funds to an eligible recipient, at the 
        recipient's request, for a 3- to 6-month start-up period during 
        the first year of the 4-year grant period, which may include 
        staff recruitment and training, and the coordination of 
        services, before requiring full implementation of the program.
            ``(3) Continuing eligibility.--In awarding subgrant funds to 
        continue a program under this subpart after the first year, the 
        State educational agency shall review the progress of each 
        eligible entity in meeting the objectives of the program 
        referred to in section 1237(c)(1)(A) and shall evaluate the 
        program based on the indicators of program quality developed by 
        the State under section 1240.
            ``(4) Insufficient progress.--The State educational agency 
        may refuse to award subgrant funds to an eligible entity if the 
        agency finds that the eligible entity has not sufficiently 
        improved the performance of the program, as evaluated based on 
        the indicators of program quality developed by the State under 
        section 1240, after--
                    ``(A) providing technical assistance to the eligible 
                entity; and

[[Page 115 STAT. 1566]]

                    ``(B) affording the eligible entity notice and an 
                opportunity for a hearing.
            ``(5) Grant renewal.--(A) An eligible entity that has 
        previously received a subgrant under this subpart may reapply 
        under this subpart for additional subgrants.
            ``(B) The Federal share of any subgrant renewed under 
        subparagraph (A) shall be limited in accordance with section 
        1234(b).

``SEC. <<NOTE: 20 USC 6381h.>> 1239. EVALUATION.

    ``From funds reserved under section 1232(b)(1), the Secretary shall 
provide for an independent evaluation of programs assisted under this 
subpart--
            ``(1) to determine the performance and effectiveness of 
        programs assisted under this subpart;
            ``(2) to identify effective Even Start programs assisted 
        under this subpart that can be duplicated and used in providing 
        technical assistance to Federal, State, and local programs; and
            ``(3) to provide State educational agencies and eligible 
        entities receiving a subgrant under this subpart, directly or 
        through a grant or contract with an organization with experience 
        in the development and operation of successful family literacy 
        services, technical assistance to ensure that local evaluations 
        undertaken under section 1235(15) provide accurate information 
        on the effectiveness of programs assisted under this subpart.

``SEC. <<NOTE: 20 USC 6381i.>> 1240. INDICATORS OF PROGRAM QUALITY.

    ``Each State educational agency receiving funds under this subpart 
shall develop, based on the best available research and evaluation data, 
indicators of program quality for programs assisted under this subpart. 
The indicators shall be used to monitor, evaluate, and improve those 
programs within the State. The indicators shall include the following:
            ``(1) With respect to eligible participants in a program who 
        are adults--
                    ``(A) achievement in the areas of reading, writing, 
                English-language acquisition, problem solving, and 
                numeracy;
                    ``(B) receipt of a secondary school diploma or a 
                general equivalency diploma (GED);
                    ``(C) entry into a postsecondary school, job 
                retraining program, or employment or career advancement, 
                including the military; and
                    ``(D) such other indicators as the State may 
                develop.
            ``(2) With respect to eligible participants in a program who 
        are children--
                    ``(A) improvement in ability to read on grade level 
                or reading readiness;
                    ``(B) school attendance;
                    ``(C) grade retention and promotion; and
                    ``(D) such other indicators as the State may 
                develop.

``SEC. <<NOTE: 20 USC 6381j.>> 1241. RESEARCH.

    ``(a) In General.--The Secretary shall carry out, through grant or 
contract, research into the components of successful family literacy 
services, in order to--

[[Page 115 STAT. 1567]]

            ``(1) improve the quality of existing programs assisted 
        under this subpart or other family literacy programs carried out 
        under this Act or the Adult Education and Family Literacy Act; 
        and
            ``(2) develop models for new programs to be carried out 
        under this Act or the Adult Education and Family Literacy Act.

    ``(b) Scientifically Based Research on Family Literacy.--
            ``(1) In general.--From amounts reserved under section 
        1232(b)(2), the National Institute for Literacy, in consultation 
        with the Secretary, shall carry out research that--
                    ``(A) is scientifically based reading research; and
                    ``(B) determines--
                          ``(i) the most effective ways of improving the 
                      literacy skills of adults with reading 
                      difficulties; and
                          ``(ii) how family literacy services can best 
                      provide parents with the knowledge and skills the 
                      parents need to support their children's literacy 
                      development.
            ``(2) Use of expert entity.--The National Institute for 
        Literacy, in consultation with the Secretary, shall carry out 
        the research under paragraph (1) through an entity, including a 
        Federal agency, that has expertise in carrying out longitudinal 
        studies of the development of literacy skills in children and 
        has developed effective interventions to help children with 
        reading difficulties.

    ``(c) Dissemination.--The National Institute for Literacy shall 
disseminate, pursuant to section 1207, the results of the research 
described in subsections (a) and (b) to State educational agencies and 
recipients of subgrants under this subpart.

``SEC. <<NOTE: 20 USC 6381k.>> 1242. CONSTRUCTION.

    ``Nothing in this subpart shall be construed to prohibit a recipient 
of funds under this subpart from serving students participating in Even 
Start simultaneously with students with similar educational needs, in 
the same educational settings where appropriate.

        ``Subpart 4--Improving Literacy Through School Libraries

``SEC. <<NOTE: 20 USC 6383.>> 1251. IMPROVING LITERACY THROUGH SCHOOL 
            LIBRARIES.

    ``(a) Purposes.--The purpose of this subpart is to improve literacy 
skills and academic achievement of students by providing students with 
increased access to up-to-date school library materials, a well-
equipped, technologically advanced school library media center, and 
well-trained, professionally certified school library media specialists.
    ``(b) Reservation.--From the funds appropriated under section 
1002(b)(4) for a fiscal year, the Secretary shall reserve--
            ``(1) one-half of 1 percent to award assistance under this 
        section to the Bureau of Indian Affairs to carry out activities 
        consistent with the purpose of this subpart; and
            ``(2) one-half of 1 percent to award assistance under this 
        section to the outlying areas according to their respective 
        needs for assistance under this subpart.

    ``(c) Grants.--
            ``(1) Competitive grants to eligible local educational 
        agencies.--If the amount of funds appropriated under section

[[Page 115 STAT. 1568]]

        1002(b)(4) for a fiscal year is less than $100,000,000, then the 
        Secretary shall award grants, on a competitive basis, to 
        eligible local educational agencies under subsection (e).
            ``(2) Formula grants to states.--If the amount of funds 
        appropriated under section 1002(b)(4) for a fiscal year equals 
        or exceeds $100,000,000, then the Secretary shall award grants 
        to State educational agencies from allotments under subsection 
        (d).
            ``(3) Definition of eligible local educational agency.--In 
        this section the term `eligible local educational agency' 
        means--
                    ``(A) in the case of a local educational agency 
                receiving assistance made available under paragraph (1), 
                a local educational agency in which 20 percent of the 
                students served by the local educational agency are from 
                families with incomes below the poverty line; and
                    ``(B) in the case of a local educational agency 
                receiving assistance from State allocations made 
                available under paragraph (2), a local educational 
                agency in which--
                          ``(i) 15 percent of the students who are 
                      served by the local educational agency are from 
                      such families; or
                          ``(ii) the percentage of students from such 
                      families who are served by the local educational 
                      agency is greater than the statewide percentage of 
                      children from such families.

    ``(d) State Grants.--
            ``(1) Allotments.--From funds made available under 
        subsection (c)(2) and not reserved under subsections (b) and (j) 
        for a fiscal year, the Secretary shall allot to each State 
        educational agency having an application approved under 
        subsection (f)(1) an amount that bears the same relation to the 
        funds as the amount the State educational agency received under 
        part A for the preceding fiscal year bears to the amount all 
        such State educational agencies received under part A for the 
        preceding fiscal year, to increase literacy and reading skills 
        by improving school libraries.
            ``(2) Competitive grants to eligible local educational 
        agencies.--Each State educational agency receiving an allotment 
        under paragraph (1) for a fiscal year--
                    ``(A) may reserve not more than 3 percent of the 
                allotted funds to provide technical assistance, 
                disseminate information about school library media 
                programs that are effective and based on scientifically 
                based research, and pay administrative costs related to 
                activities under this section; and
                    ``(B) shall use the allotted funds that remain after 
                making the reservation under subparagraph (A) to award 
                grants, for a period of 1 year, on a competitive basis, 
                to eligible local educational agencies in the State that 
                have an application approved under subsection (f)(2) for 
                activities described in subsection (g).
            ``(3) Reallotment.--If a State educational agency does not 
        apply for an allotment under this section for any fiscal year, 
        or if the State educational agency's application is not 
        approved, the Secretary shall reallot the amount of the State

[[Page 115 STAT. 1569]]

        educational agency's allotment to the remaining State 
        educational agencies in accordance with paragraph (1).

    ``(e) Direct Competitive Grants to Eligible Local Educational 
Agencies.--
            ``(1) In general.--From amounts made available under 
        subsection (c)(1) and not reserved under subsections (b) and (j) 
        for a fiscal year, the Secretary shall award grants, on a 
        competitive basis, to eligible local educational agencies that 
        have applications approved under subsection (f)(2) for 
        activities described in subsection (g).
            ``(2) Duration.--The Secretary shall award grants under this 
        subsection for a period of 1 year.
            ``(3) Distribution.--The Secretary shall ensure that grants 
        under this subsection are equitably distributed among the 
        different geographic regions of the United States, and among 
        local educational agencies serving urban and rural areas.

    ``(f) Applications.--
            ``(1) State educational agency.--Each State educational 
        agency desiring assistance under this section shall submit to 
        the Secretary an application at such time, in such manner, and 
        containing such information as the Secretary shall require. The 
        application shall contain a description of--
                    ``(A) how the State educational agency will assist 
                eligible local educational agencies in meeting the 
                requirements of this section and in using scientifically 
                based research to implement effective school library 
                media programs; and
                    ``(B) the standards and techniques the State 
                educational agency will use to evaluate the quality and 
                impact of activities carried out under this section by 
                eligible local educational agencies to determine the 
                need for technical assistance and whether to continue to 
                provide additional funding to the agencies under this 
                section.
            ``(2) Eligible local educational agency.--Each eligible 
        local educational agency desiring assistance under this section 
        shall submit to the Secretary or State educational agency, as 
        appropriate, an application at such time, in such manner, and 
        containing such information as the Secretary or State 
        educational agency, respectively, shall require. The application 
        shall contain a description of--
                    ``(A) a needs assessment relating to the need for 
                school library media improvement, based on the age and 
                condition of school library media resources, including 
                book collections, access of school library media centers 
                to advanced technology, and the availability of well-
                trained, professionally certified school library media 
                specialists, in schools served by the eligible local 
                educational agency;
                    ``(B) the manner in which the eligible local 
                educational agency will use the funds made available 
                through the grant to carry out the activities described 
                in subsection (g);
                    ``(C) how the eligible local educational agency will 
                extensively involve school library media specialists, 
                teachers, administrators, and parents in the activities 
                assisted under this section, and the manner in which the 
                eligible local educational agency will carry out the 
                activities described in subsection (g) using programs 
                and materials that are grounded in scientifically based 
                research;

[[Page 115 STAT. 1570]]

                    ``(D) the manner in which the eligible local 
                educational agency will effectively coordinate the funds 
                and activities provided under this section with Federal, 
                State, and local funds and activities under this subpart 
                and other literacy, library, technology, and 
                professional development funds and activities; and
                    ``(E) the manner in which the eligible local 
                educational agency will collect and analyze data on the 
                quality and impact of activities carried out under this 
                section by schools served by the eligible local 
                educational agency.

    ``(g) Local Activities.--Funds under this section may be used to--
            ``(1) acquire up-to-date school library media resources, 
        including books;
            ``(2) acquire and use advanced technology, incorporated into 
        the curricula of the school, to develop and enhance the 
        information literacy, information retrieval, and critical 
        thinking skills of students;
            ``(3) facilitate Internet links and other resource-sharing 
        networks among schools and school library media centers, and 
        public and academic libraries, where possible;
            ``(4) provide professional development described in section 
        1222(d)(2) for school library media specialists, and activities 
        that foster increased collaboration between school library media 
        specialists, teachers, and administrators; and
            ``(5) provide students with access to school libraries 
        during nonschool hours, including the hours before and after 
        school, during weekends, and during summer vacation periods.

    ``(h) Accountability and Reporting.--
            ``(1) Local reports.--Each eligible local educational agency 
        that receives funds under this section for a fiscal year shall 
        report to the Secretary or State educational agency, as 
        appropriate, on how the funding was used and the extent to which 
        the availability of, the access to, and the use of, up-to-date 
        school library media resources in the elementary schools and 
        secondary schools served by the eligible local educational 
        agency was increased.
            ``(2) State report.--Each State educational agency that 
        receives funds under this section shall compile the reports 
        received under paragraph (1) and submit the compiled reports to 
        the Secretary.

    ``(i) Supplement, Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local funds expended to carry out activities relating to 
library, technology, or professional development activities.
    ``(j) National Activities.--
            ``(1) Evaluations.--From the funds appropriated under 
        section 1002(b)(4) for each fiscal year, the Secretary shall 
        reserve not more than 1 percent for annual, independent, 
        national evaluations of the activities assisted under this 
        section and their impact on improving the reading skills of 
        students. The evaluations shall be conducted not later than 3 
        years after the date of enactment of the No Child Left Behind 
        Act of 2001, and biennially thereafter.
            ``(2) Report to congress.--The Secretary shall transmit the 
        State reports received under subsection (h)(2) and the

[[Page 115 STAT. 1571]]

        evaluations conducted under paragraph (1) to the Committee on 
        Health, Education, Labor, and Pensions of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives.

                ``PART C--EDUCATION OF MIGRATORY CHILDREN

``SEC. <<NOTE: 20 USC 6391.>> 1301. PROGRAM PURPOSE.

    ``It is the purpose of this part to assist States to--
            ``(1) support high-quality and comprehensive educational 
        programs for migratory children to help reduce the educational 
        disruptions and other problems that result from repeated moves;
            ``(2) ensure that migratory children who move among the 
        States are not penalized in any manner by disparities among the 
        States in curriculum, graduation requirements, and State 
        academic content and student academic achievement standards;
            ``(3) ensure that migratory children are provided with 
        appropriate educational services (including supportive services) 
        that address their special needs in a coordinated and efficient 
        manner;
            ``(4) ensure that migratory children receive full and 
        appropriate opportunities to meet the same challenging State 
        academic content and student academic achievement standards that 
        all children are expected to meet;
            ``(5) design programs to help migratory children overcome 
        educational disruption, cultural and language barriers, social 
        isolation, various health-related problems, and other factors 
        that inhibit the ability of such children to do well in school, 
        and to prepare such children to make a successful transition to 
        postsecondary education or employment; and
            ``(6) ensure that migratory children benefit from State and 
        local systemic reforms.

``SEC. <<NOTE: 20 USC 6392.>> 1302. PROGRAM AUTHORIZED.

    ``In order to carry out the purpose of this part, the Secretary 
shall make grants to State educational agencies, or combinations of such 
agencies, to establish or improve, directly or through local operating 
agencies, programs of education for migratory children in accordance 
with this part.

``SEC. <<NOTE: 20 USC 6393.>> 1303. STATE ALLOCATIONS.

    ``(a) State Allocations.--
            ``(1) Fiscal year 2002.--For fiscal year 2002, each State 
        (other than the Commonwealth of Puerto Rico) is entitled to 
        receive under this part an amount equal to--
                    ``(A) the sum of the estimated number of migratory 
                children aged 3 through 21 who reside in the State full 
                time and the full-time equivalent of the estimated 
                number of migratory children aged 3 through 21 who 
                reside in the State part time, as determined in 
                accordance with subsection (e); multiplied by
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the amount 
                determined under this paragraph shall not be less than 
                32 percent, nor more

[[Page 115 STAT. 1572]]

                than 48 percent, of the average per-pupil expenditure in 
                the United States.
            ``(2) Subsequent years.--
                    ``(A) Base amount.--
                          ``(i) In general.--Except as provided in 
                      subsection (b) and clause (ii), each State (other 
                      than the Commonwealth of Puerto Rico) is entitled 
                      to receive under this part, for fiscal year 2003 
                      and succeeding fiscal years, an amount equal to--
                                    ``(I) the amount that such State 
                                received under this part for fiscal year 
                                2002; plus
                                    ``(II) the amount allocated to the 
                                State under subparagraph (B).
                          ``(ii) Nonparticipating states.--In the case 
                      of a State (other than the Commonwealth of Puerto 
                      Rico) that did not receive any funds for fiscal 
                      year 2002 under this part, the State shall 
                      receive, for fiscal year 2003 and succeeding 
                      fiscal years, an amount equal to--
                                    ``(I) the amount that such State 
                                would have received under this part for 
                                fiscal year 2002 if its application 
                                under section 1304 for the year had been 
                                approved; plus
                                    ``(II) the amount allocated to the 
                                State under subparagraph (B).
                    ``(B) Allocation of additional amount.--For fiscal 
                year 2003 and succeeding fiscal years, the amount (if 
                any) by which the funds appropriated to carry out this 
                part for the year exceed such funds for fiscal year 2002 
                shall be allocated to a State (other than the 
                Commonwealth of Puerto Rico) so that the State receives 
                an amount equal to--
                          ``(i) the sum of--
                                    ``(I) the number of identified 
                                eligible migratory children, aged 3 
                                through 21, residing in the State during 
                                the previous year; and
                                    ``(II) the number of identified 
                                eligible migratory children, aged 3 
                                through 21, who received services under 
                                this part in summer or intersession 
                                programs provided by the State during 
                                such year; multiplied by
                          ``(ii) 40 percent of the average per-pupil 
                      expenditure in the State, except that the amount 
                      determined under this clause may not be less than 
                      32 percent, or more than 48 percent, of the 
                      average per-pupil expenditure in the United 
                      States.

    ``(b) Allocation to Puerto Rico.--
            ``(1) In general.--For each fiscal year, the grant which the 
        Commonwealth of Puerto Rico shall be eligible to receive under 
        this part shall be the amount determined by multiplying the 
        number of children who would be counted under subsection 
        (a)(1)(A) if such subsection applied to the Commonwealth of 
        Puerto Rico by the product of--
                    ``(A) the percentage which the average per-pupil 
                expenditure in the Commonwealth of Puerto Rico is of the 
                lowest average per-pupil expenditure of any of the 50 
                States; and

[[Page 115 STAT. 1573]]

                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.
            ``(2) Minimum percentage.--The percentage in paragraph 
        (1)(A) shall not be less than--
                    ``(A) for fiscal year 2002, 77.5 percent;
                    ``(B) for fiscal year 2003, 80.0 percent;
                    ``(C) for fiscal year 2004, 82.5 percent; and
                    ``(D) for fiscal year 2005 and succeeding fiscal 
                years, 85.0 percent.
            ``(3) Limitation.--If the application of paragraph (2) for 
        any fiscal year would result in any of the 50 States or the 
        District of Columbia receiving less under this part than it 
        received under this part for the preceding fiscal year, then the 
        percentage described in paragraph (1)(A) that is used for the 
        Commonwealth of Puerto Rico for the fiscal year for which the 
        determination is made shall be the greater of the percentage in 
        paragraph (1)(A) for such fiscal year or the percentage used for 
        the preceding fiscal year.

    ``(c) Ratable Reductions; Reallocations.--
            ``(1) In general.--(A) If, after the Secretary reserves 
        funds under section 1308(c), the amount appropriated to carry 
        out this part for any fiscal year is insufficient to pay in full 
        the amounts for which all States are eligible, the Secretary 
        shall ratably reduce each such amount.
            ``(B) If additional funds become available for making such 
        payments for any fiscal year, the Secretary shall allocate such 
        funds to States in amounts that the Secretary determines will 
        best carry out the purpose of this part.
            ``(2) Special rule.--(A) The Secretary shall further reduce 
        the amount of any grant to a State under this part for any 
        fiscal year if the Secretary determines, based on available 
        information on the numbers and needs of migratory children in 
        the State and the program proposed by the State to address such 
        needs, that such amount exceeds the amount required under 
        section 1304.
            ``(B) The Secretary shall reallocate such excess funds to 
        other States whose grants under this part would otherwise be 
        insufficient to provide an appropriate level of services to 
        migratory children, in such amounts as the Secretary determines 
        are appropriate.

    ``(d) Consortium Arrangements.--
            ``(1) In general.--In the case of a State that receives a 
        grant of $1,000,000 or less under this section, the Secretary 
        shall consult with the State educational agency to determine 
        whether consortium arrangements with another State or other 
        appropriate entity would result in delivery of services in a 
        more effective and efficient manner.
            ``(2) Proposals.--Any State, regardless of the amount of 
        such State's allocation, may submit a consortium arrangement to 
        the Secretary for approval.
            ``(3) Approval.--The Secretary shall approve a consortium 
        arrangement under paragraph (1) or (2) if the proposal 
        demonstrates that the arrangement will--
                    ``(A) reduce administrative costs or program 
                function costs for State programs; and

[[Page 115 STAT. 1574]]

                    ``(B) make more funds available for direct services 
                to add substantially to the welfare or educational 
                attainment of children to be served under this part.

    ``(e) Determining Numbers of Eligible Children.--In order to 
determine the estimated number of migratory children residing in each 
State for purposes of this section, the Secretary shall--
            ``(1) use such information as the Secretary finds most 
        accurately reflects the actual number of migratory children;
            ``(2) develop and implement a procedure for more accurately 
        reflecting cost factors for different types of summer and 
        intersession program designs;
            ``(3) adjust the full-time equivalent number of migratory 
        children who reside in each State to take into account--
                    ``(A) the special needs of those children 
                participating in special programs provided under this 
                part that operate during the summer and intersession 
                periods; and
                    ``(B) the additional costs of operating such 
                programs; and
            ``(4) conduct an analysis of the options for adjusting the 
        formula so as to better direct services to the child whose 
        education has been interrupted.

``SEC. <<NOTE: 20 USC 6394.>> 1304. STATE APPLICATIONS; SERVICES.

    ``(a) Application Required.--Any State desiring to receive a grant 
under this part for any fiscal year shall submit an application to the 
Secretary at such time and in such manner as the Secretary may require.
    ``(b) Program Information.--Each such application shall include--
            ``(1) a description of how, in planning, implementing, and 
        evaluating programs and projects assisted under this part, the 
        State and its local operating agencies will ensure that the 
        special educational needs of migratory children, including 
        preschool migratory children, are identified and addressed 
        through--
                    ``(A) the full range of services that are available 
                for migratory children from appropriate local, State, 
                and Federal educational programs;
                    ``(B) joint planning among local, State, and Federal 
                educational programs serving migrant children, including 
                language instruction educational programs under part A 
                or B of title III;
                    ``(C) the integration of services available under 
                this part with services provided by those other 
                programs; and
                    ``(D) measurable program goals and outcomes;
            ``(2) a description of the steps the State is taking to 
        provide all migratory students with the opportunity to meet the 
        same challenging State academic content standards and 
        challenging State student academic achievement standards that 
        all children are expected to meet;
            ``(3) a description of how the State will use funds received 
        under this part to promote interstate and intrastate 
        coordination of services for migratory children, including how, 
        consistent with procedures the Secretary may require, the State 
        will provide for educational continuity through the timely 
        transfer of pertinent school records, including information on 
        health,

[[Page 115 STAT. 1575]]

        when children move from one school to another, whether or not 
        such move occurs during the regular school year;
            ``(4) a description of the State's priorities for the use of 
        funds received under this part, and how such priorities relate 
        to the State's assessment of needs for services in the State;
            ``(5) a description of how the State will determine the 
        amount of any subgrants the State will award to local operating 
        agencies, taking into account the numbers and needs of migratory 
        children, the requirements of subsection (d), and the 
        availability of funds from other Federal, State, and local 
        programs;
            ``(6) such budgetary and other information as the Secretary 
        may require; and
            ``(7) a description of how the State will encourage programs 
        and projects assisted under this part to offer family literacy 
        services if the program or project serves a substantial number 
        of migratory children who have parents who do not have a high 
        school diploma or its recognized equivalent or who have low 
        levels of literacy.

    ``(c) Assurances.--Each such application shall also include 
assurances, satisfactory to the Secretary, that--
            ``(1) funds received under this part will be used only--
                    ``(A) for programs and projects, including the 
                acquisition of equipment, in accordance with section 
                1306; and
                    ``(B) to coordinate such programs and projects with 
                similar programs and projects within the State and in 
                other States, as well as with other Federal programs 
                that can benefit migratory children and their families;
            ``(2) such programs and projects will be carried out in a 
        manner consistent with the objectives of section 1114, 
        subsections (b) and (d) of section 1115, subsections (b) and (c) 
        of section 1120A, and part I;
            ``(3) in the planning and operation of programs and projects 
        at both the State and local agency operating level, there is 
        consultation with parent advisory councils for programs of 1 
        school year in duration, and that all such programs and projects 
        are carried out--
                    ``(A) in a manner that provides for the same 
                parental involvement as is required for programs and 
                projects under section 1118, unless extraordinary 
                circumstances make such provision impractical; and
                    ``(B) in a format and language understandable to the 
                parents;
            ``(4) in planning and carrying out such programs and 
        projects, there has been, and will be, adequate provision for 
        addressing the unmet education needs of preschool migratory 
        children;
            ``(5) the effectiveness of such programs and projects will 
        be determined, where feasible, using the same approaches and 
        standards that will be used to assess the performance of 
        students, schools, and local educational agencies under part A;
            ``(6) to the extent feasible, such programs and projects 
        will provide for--
                    ``(A) advocacy and outreach activities for migratory 
                children and their families, including informing such 
                children and families of, or helping such children and 
                families gain access to, other education, health, 
                nutrition, and social services;

[[Page 115 STAT. 1576]]

                    ``(B) professional development programs, including 
                mentoring, for teachers and other program personnel;
                    ``(C) family literacy programs, including such 
                programs that use models developed under Even Start;
                    ``(D) the integration of information technology into 
                educational and related programs; and
                    ``(E) programs to facilitate the transition of 
                secondary school students to postsecondary education or 
                employment; and
            ``(7) the State will assist the Secretary in determining the 
        number of migratory children under paragraphs (1)(A) and 
        (2)(B)(i) of section 1303(a), through such procedures as the 
        Secretary may require.

    ``(d) Priority for Services.--In providing services with funds 
received under this part, each recipient of such funds shall give 
priority to migratory children who are failing, or most at risk of 
failing, to meet the State's challenging State academic content 
standards and challenging State student academic achievement standards, 
and whose education has been interrupted during the regular school year.
    ``(e) Continuation of Services.--Notwithstanding any other provision 
of this part--
            ``(1) a child who ceases to be a migratory child during a 
        school term shall be eligible for services until the end of such 
        term;
            ``(2) a child who is no longer a migratory child may 
        continue to receive services for 1 additional school year, but 
        only if comparable services are not available through other 
        programs; and
            ``(3) secondary school students who were eligible for 
        services in secondary school may continue to be served through 
        credit accrual programs until graduation.

``SEC. <<NOTE: 20 USC 6395.>> 1305. SECRETARIAL APPROVAL; PEER REVIEW.

    ``(a) Secretarial Approval.--The Secretary shall approve each State 
application that meets the requirements of this part.
    ``(b) Peer Review.--The Secretary may review any such application 
with the assistance and advice of State officials and other individuals 
with relevant expertise.

``SEC. <<NOTE: 20 USC 6396.>> 1306. COMPREHENSIVE NEEDS ASSESSMENT AND 
            SERVICE-DELIVERY PLAN; AUTHORIZED ACTIVITIES.

    ``(a) Comprehensive Plan.--
            ``(1) In general.--Each State that receives assistance under 
        this part shall ensure that the State and its local operating 
        agencies identify and address the special educational needs of 
        migratory children in accordance with a comprehensive State plan 
        that--
                    ``(A) is integrated with other programs under this 
                Act or other Acts, as appropriate;
                    ``(B) may be submitted as a part of a consolidated 
                application under section 9302, if--
                          ``(i) the special needs of migratory children 
                      are specifically addressed in the comprehensive 
                      State plan;
                          ``(ii) the comprehensive State plan is 
                      developed in collaboration with parents of 
                      migratory children; and

[[Page 115 STAT. 1577]]

                          ``(iii) the comprehensive State plan is not 
                      used to supplant State efforts regarding, or 
                      administrative funding for, this part;
                    ``(C) provides that migratory children will have an 
                opportunity to meet the same challenging State academic 
                content standards and challenging State student academic 
                achievement standards that all children are expected to 
                meet;
                    ``(D) specifies measurable program goals and 
                outcomes;
                    ``(E) encompasses the full range of services that 
                are available for migratory children from appropriate 
                local, State, and Federal educational programs;
                    ``(F) is the product of joint planning among such 
                local, State, and Federal programs, including programs 
                under part A, early childhood programs, and language 
                instruction educational programs under part A or B of 
                title III; and
                    ``(G) provides for the integration of services 
                available under this part with services provided by such 
                other programs.
            ``(2) Duration of the plan.--Each such comprehensive State 
        plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes in the State's 
                strategies and programs under this part.

    ``(b) Authorized Activities.--
            ``(1) Flexibility.--In implementing the comprehensive plan 
        described in subsection (a), each State educational agency, 
        where applicable through its local educational agencies, shall 
        have the flexibility to determine the activities to be provided 
        with funds made available under this part, except that such 
        funds first shall be used to meet the identified needs of 
        migratory children that result from their migratory lifestyle, 
        and to permit these children to participate effectively in 
        school.
            ``(2) Unaddressed needs.--Funds provided under this part 
        shall be used to address the needs of migratory children that 
        are not addressed by services available from other Federal or 
        non-Federal programs, except that migratory children who are 
        eligible to receive services under part A may receive those 
        services through funds provided under that part, or through 
        funds under this part that remain after the agency addresses the 
        needs described in paragraph (1).
            ``(3) Construction.--Nothing in this part shall be construed 
        to prohibit a local educational agency from serving migratory 
        children simultaneously with students with similar educational 
        needs in the same educational settings, where appropriate.
            ``(4) Special rule.--Notwithstanding section 1114, a school 
        that receives funds under this part shall continue to address 
        the identified needs described in paragraph (1), and shall meet 
        the special educational needs of migratory children before using 
        funds under this part for schoolwide programs under section 
        1114.

[[Page 115 STAT. 1578]]

``SEC. <<NOTE: 20 USC 6397.>> 1307. BYPASS.

    ``The Secretary may use all or part of any State's allocation under 
this part to make arrangements with any public or private nonprofit 
agency to carry out the purpose of this part in such State if the 
Secretary determines that--
            ``(1) the State is unable or unwilling to conduct 
        educational programs for migratory children;
            ``(2) such arrangements would result in more efficient and 
        economic administration of such programs; or
            ``(3) such arrangements would add substantially to the 
        welfare or educational attainment of such children.

``SEC. <<NOTE: 20 USC 6398.>> 1308. COORDINATION OF MIGRANT EDUCATION 
            ACTIVITIES.

    ``(a) Improvement of Coordination.--
            ``(1) In general.--The Secretary, in consultation with the 
        States, may make grants to, or enter into contracts with, State 
        educational agencies, local educational agencies, institutions 
        of higher education, and other public and private nonprofit 
        entities to improve the interstate and intrastate coordination 
        among such agencies' educational programs, including the 
        establishment or improvement of programs for credit accrual and 
        exchange, available to migratory students.
            ``(2) Duration.--Grants under this subsection may be awarded 
        for not more than 5 years.

    ``(b) Student Records.--
            ``(1) Assistance.--The Secretary shall assist States in 
        developing effective methods for the electronic transfer of 
        student records and in determining the number of migratory 
        children in each State.
            ``(2) Information system.--
                    ``(A) In general.--The Secretary, in consultation 
                with the States, shall ensure the linkage of migrant 
                student record systems for the purpose of electronically 
                exchanging, among the States, health and educational 
                information regarding all migratory students. The 
                Secretary shall ensure such linkage occurs in a cost-
                effective manner, utilizing systems used by the States 
                prior to, or developed after, the date of enactment of 
                the No Child Left Behind Act of 2001, and shall 
                determine the minimum data elements that each State 
                receiving funds under this part shall collect and 
                maintain. Such elements may include--
                          ``(i) immunization records and other health 
                      information;
                          ``(ii) elementary and secondary academic 
                      history (including partial credit), credit 
                      accrual, and results from State assessments 
                      required under section 1111(b);
                          ``(iii) other academic information essential 
                      to ensuring that migratory children achieve to 
                      high standards; and
                          ``(iv) eligibility for services under the 
                      Individuals with Disabilities Education Act.
                    ``(B) <<NOTE: Federal Register, 
                publication.>> Notice and comment.--After consulting 
                with the States under subparagraph (A), the Secretary 
                shall publish a notice in the Federal Register seeking 
                public comment on the proposed data elements that each 
                State receiving

[[Page 115 STAT. 1579]]

                funds under this part shall be required to collect for 
                purposes of electronic transfer of migratory student 
                information and the requirements that States shall meet 
                for immediate electronic access to such 
                information. <<NOTE: Deadline.>> Such publication shall 
                occur not later than 120 days after the date of 
                enactment of the No Child Left Behind Act of 2001.
            ``(3) No cost for certain transfers.--A State educational 
        agency or local educational agency receiving assistance under 
        this part shall make student records available to another State 
        educational agency or local educational agency that requests the 
        records at no cost to the requesting agency, if the request is 
        made in order to meet the needs of a migratory child.
            ``(4) Report to congress.--
                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than April 30, 2003, the Secretary shall report to the 
                Committee on Health, Education, Labor, and Pensions of 
                the Senate and the Committee on Education and the 
                Workforce of the House of Representatives the 
                Secretary's findings and recommendations regarding the 
                maintenance and transfer of health and educational 
                information for migratory students by the States.
                    ``(B) Required contents.--The Secretary shall 
                include in such report--
                          ``(i) a review of the progress of States in 
                      developing and linking electronic records transfer 
                      systems;
                          ``(ii) recommendations for the development and 
                      linkage of such systems; and
                          ``(iii) recommendations for measures that may 
                      be taken to ensure the continuity of services 
                      provided for migratory students.

    ``(c) Availability of Funds.--For the purpose of carrying out this 
section in any fiscal year, the Secretary shall reserve not more than 
$10,000,000 of the amount appropriated to carry out this part for such 
year.
    ``(d) Incentive Grants.--From the amounts made available to carry 
out this section for any fiscal year, the Secretary may reserve not more 
than $3,000,000 to award grants of not more than $250,000 on a 
competitive basis to State educational agencies that propose a 
consortium arrangement with another State or other appropriate entity 
that the Secretary determines, pursuant to criteria that the Secretary 
shall establish, will improve the delivery of services to migratory 
children whose education is interrupted.
    ``(e) Data Collection.--The Secretary shall direct the National 
Center for Education Statistics to collect data on migratory children.

``SEC. <<NOTE: 20 USC 6399.>> 1309. DEFINITIONS.

    ``As used in this part:
            ``(1) Local operating agency.--The term `local operating 
        agency' means--
                    ``(A) a local educational agency to which a State 
                educational agency makes a subgrant under this part;
                    ``(B) a public or nonprofit private agency with 
                which a State educational agency or the Secretary makes 
                an arrangement to carry out a project under this part; 
                or
                    ``(C) a State educational agency, if the State 
                educational agency operates the State's migrant 
                education program or projects directly.

[[Page 115 STAT. 1580]]

            ``(2) Migratory child.--The term `migratory child' means a 
        child who is, or whose parent or spouse is, a migratory 
        agricultural worker, including a migratory dairy worker, or a 
        migratory fisher, and who, in the preceding 36 months, in order 
        to obtain, or accompany such parent or spouse, in order to 
        obtain, temporary or seasonal employment in agricultural or 
        fishing work--
                    ``(A) has moved from one school district to another;
                    ``(B) in a State that is comprised of a single 
                school district, has moved from one administrative area 
                to another within such district; or
                    ``(C) resides in a school district of more than 
                15,000 square miles, and migrates a distance of 20 miles 
                or more to a temporary residence to engage in a fishing 
                activity.

 ``PART D--PREVENTION AND INTERVENTION PROGRAMS FOR CHILDREN AND YOUTH 
                WHO ARE NEGLECTED, DELINQUENT, OR AT-RISK

``SEC. <<NOTE: 20 USC 6421.>> 1401. PURPOSE AND PROGRAM AUTHORIZATION.

    ``(a) Purpose.--It is the purpose of this part--
            ``(1) to improve educational services for children and youth 
        in local and State institutions for neglected or delinquent 
        children and youth so that such children and youth have the 
        opportunity to meet the same challenging State academic content 
        standards and challenging State student academic achievement 
        standards that all children in the State are expected to meet;
            ``(2) to provide such children and youth with the services 
        needed to make a successful transition from institutionalization 
        to further schooling or employment; and
            ``(3) to prevent at-risk youth from dropping out of school, 
        and to provide dropouts, and children and youth returning from 
        correctional facilities or institutions for neglected or 
        delinquent children and youth, with a support system to ensure 
        their continued education.

    ``(b) Program Authorized.--In order to carry out the purpose of this 
part and from amounts appropriated under section 1002(d), the Secretary 
shall make grants to State educational agencies to enable such agencies 
to award subgrants to State agencies and local educational agencies to 
establish or improve programs of education for neglected, delinquent, or 
at-risk children and youth.

``SEC. <<NOTE: 20 USC 6422.>> 1402. PAYMENTS FOR PROGRAMS UNDER THIS 
            PART.

    ``(a) Agency Subgrants.--Based on the allocation amount computed 
under section 1412, the Secretary shall allocate to each State 
educational agency an amount necessary to make subgrants to State 
agencies under subpart 1.
    ``(b) Local Subgrants.--Each State shall retain, for the purpose of 
carrying out subpart 2, funds generated throughout the State under part 
A of this title based on children and youth residing in local 
correctional facilities, or attending community day programs for 
delinquent children and youth.

[[Page 115 STAT. 1581]]

                   ``Subpart 1--State Agency Programs

``SEC. <<NOTE: 20 USC 6431.>> 1411. ELIGIBILITY.

    ``A State agency is eligible for assistance under this subpart if 
such State agency is responsible for providing free public education for 
children and youth--
            ``(1) in institutions for neglected or delinquent children 
        and youth;
            ``(2) attending community day programs for neglected or 
        delinquent children and youth; or
            ``(3) in adult correctional institutions.

``SEC. <<NOTE: 20 USC 6432.>> 1412. ALLOCATION OF FUNDS.

    ``(a) Subgrants to State Agencies.--
            ``(1) In general.--Each State agency described in section 
        1411 (other than an agency in the Commonwealth of Puerto Rico) 
        is eligible to receive a subgrant under this subpart, for each 
        fiscal year, in an amount equal to the product of--
                    ``(A) the number of neglected or delinquent children 
                and youth described in section 1411 who--
                          ``(i) are enrolled for at least 15 hours per 
                      week in education programs in adult correctional 
                      institutions; and
                          ``(ii) are enrolled for at least 20 hours per 
                      week--
                                    ``(I) in education programs in 
                                institutions for neglected or delinquent 
                                children and youth; or
                                    ``(II) in community day programs for 
                                neglected or delinquent children and 
                                youth; and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the amount 
                determined under this subparagraph shall not be less 
                than 32 percent, nor more than 48 percent, of the 
                average per-pupil expenditure in the United States.
            ``(2) Special rule.--The number of neglected or delinquent 
        children and youth determined under paragraph (1) shall--
                    ``(A) be determined by the State agency by a 
                deadline set by the Secretary, except that no State 
                agency shall be required to determine the number of such 
                children and youth on a specific date set by the 
                Secretary; and
                    ``(B) be adjusted, as the Secretary determines is 
                appropriate, to reflect the relative length of such 
                agency's annual programs.

    ``(b) Subgrants to State Agencies in Puerto Rico.--
            ``(1) In general.--For each fiscal year, the amount of the 
        subgrant which a State agency in the Commonwealth of Puerto Rico 
        shall be eligible to receive under this subpart shall be the 
        amount determined by multiplying the number of children counted 
        under subsection (a)(1)(A) for the Commonwealth of Puerto Rico 
        by the product of--
                    ``(A) the percentage which the average per-pupil 
                expenditure in the Commonwealth of Puerto Rico is of the 
                lowest average per-pupil expenditure of any of the 50 
                States; and
                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.
            ``(2) Minimum percentage.--The percentage in paragraph 
        (1)(A) shall not be less than--

[[Page 115 STAT. 1582]]

                    ``(A) for fiscal year 2002, 77.5 percent;
                    ``(B) for fiscal year 2003, 80.0 percent;
                    ``(C) for fiscal year 2004, 82.5 percent; and
                    ``(D) for fiscal year 2005 and succeeding fiscal 
                years, 85.0 percent.
            ``(3) Limitation.--If the application of paragraph (2) would 
        result in any of the 50 States or the District of Columbia 
        receiving less under this subpart than it received under this 
        subpart for the preceding fiscal year, then the percentage 
        described in paragraph (1)(A) that is used for the Commonwealth 
        of Puerto Rico for the fiscal year for which the determination 
        is made shall be the greater of--
                    ``(A) the percentage in paragraph (1)(A) for such 
                fiscal year; or
                    ``(B) the percentage used for the preceding fiscal 
                year.

    ``(c) Ratable Reductions in Case of Insufficient Appropriations.--If 
the amount appropriated for any fiscal year for subgrants under 
subsections (a) and (b) is insufficient to pay the full amount for which 
all State agencies are eligible under such subsections, the Secretary 
shall ratably reduce each such amount.

``SEC. <<NOTE: 20 USC 6433.>> 1413. STATE REALLOCATION OF FUNDS.

    ``If a State educational agency determines that a State agency does 
not need the full amount of the subgrant for which such State agency is 
eligible under this subpart for any fiscal year, the State educational 
agency may reallocate the amount that will not be needed to other 
eligible State agencies that need additional funds to carry out the 
purpose of this part, in such amounts as the State educational agency 
shall determine.

``SEC. <<NOTE: 20 USC 6434.>> 1414. STATE PLAN AND STATE AGENCY 
            APPLICATIONS.

    ``(a) State Plan.--
            ``(1) In general.--Each State educational agency that 
        desires to receive a grant under this subpart shall submit, for 
        approval by the Secretary, a plan--
                    ``(A) for meeting the educational needs of 
                neglected, delinquent, and at-risk children and youth;
                    ``(B) for assisting in the transition of children 
                and youth from correctional facilities to locally 
                operated programs; and
                    ``(C) that is integrated with other programs under 
                this Act or other Acts, as appropriate.
            ``(2) Contents.--Each such State plan shall--
                    ``(A) describe the program goals, objectives, and 
                performance measures established by the State that will 
                be used to assess the effectiveness of the program in 
                improving the academic, vocational, and technical skills 
                of children in the program;
                    ``(B) provide that, to the extent feasible, such 
                children will have the same opportunities to achieve as 
                such children would have if such children were in the 
                schools of local educational agencies in the State; and
                    ``(C) contain an assurance that the State 
                educational agency will--
                          ``(i) ensure that programs assisted under this 
                      subpart will be carried out in accordance with the 
                      State plan described in this subsection;

[[Page 115 STAT. 1583]]

                          ``(ii) carry out the evaluation requirements 
                      of section 1431;
                          ``(iii) ensure that the State agencies 
                      receiving subgrants under this subpart comply with 
                      all applicable statutory and regulatory 
                      requirements; and
                          ``(iv) provide such other information as the 
                      Secretary may reasonably require.
            ``(3) Duration of the plan.--Each such State plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes in the State's 
                strategies and programs under this part.

    ``(b) Secretarial Approval and Peer Review.--
            ``(1) Secretarial approval.--The Secretary shall approve 
        each State plan that meets the requirements of this subpart.
            ``(2) Peer review.--The Secretary may review any State plan 
        with the assistance and advice of individuals with relevant 
        expertise.

    ``(c) State Agency Applications.--Any State agency that desires to 
receive funds to carry out a program under this subpart shall submit an 
application to the State educational agency that--
            ``(1) describes the procedures to be used, consistent with 
        the State plan under section 1111, to assess the educational 
        needs of the children to be served under this subpart;
            ``(2) provide an assurance that in making services available 
        to children and youth in adult correctional institutions, 
        priority will be given to such children and youth who are likely 
        to complete incarceration within a 2-year period;
            ``(3) describes the program, including a budget for the 
        first year of the program, with annual updates to be provided to 
        the State educational agency;
            ``(4) describes how the program will meet the goals and 
        objectives of the State plan;
            ``(5) describes how the State agency will consult with 
        experts and provide the necessary training for appropriate 
        staff, to ensure that the planning and operation of institution-
        wide projects under section 1416 are of high quality;
            ``(6) describes how the State agency will carry out the 
        evaluation requirements of section 9601 and how the results of 
        the most recent evaluation will be used to plan and improve the 
        program;
            ``(7) includes data showing that the State agency has 
        maintained the fiscal effort required of a local educational 
        agency, in accordance with section 9521;
            ``(8) describes how the programs will be coordinated with 
        other appropriate State and Federal programs, such as programs 
        under title I of Public Law 105-220, vocational and technical 
        education programs, State and local dropout prevention programs, 
        and special education programs;
            ``(9) describes how the State agency will encourage 
        correctional facilities receiving funds under this subpart to 
        coordinate with local educational agencies or alternative 
        education programs attended by incarcerated children and youth 
        prior to their incarceration to ensure that student assessments 
        and appropriate academic records are shared jointly between the

[[Page 115 STAT. 1584]]

        correctional facility and the local educational agency or 
        alternative education program;
            ``(10) describes how appropriate professional development 
        will be provided to teachers and other staff;
            ``(11) designates an individual in each affected 
        correctional facility or institution for neglected or delinquent 
        children and youth to be responsible for issues relating to the 
        transition of children and youth from such facility or 
        institution to locally operated programs;
            ``(12) describes how the State agency will endeavor to 
        coordinate with businesses for training and mentoring for 
        participating children and youth;
            ``(13) provides an assurance that the State agency will 
        assist in locating alternative programs through which students 
        can continue their education if the students are not returning 
        to school after leaving the correctional facility or institution 
        for neglected or delinquent children and youth;
            ``(14) provides assurances that the State agency will work 
        with parents to secure parents' assistance in improving the 
        educational achievement of their children and youth, and 
        preventing their children's and youth's further involvement in 
        delinquent activities;
            ``(15) provides an assurance that the State agency will work 
        with children and youth with disabilities in order to meet an 
        existing individualized education program and an assurance that 
        the agency will notify the child's or youth's local school if 
        the child or youth--
                    ``(A) is identified as in need of special education 
                services while the child or youth is in the correctional 
                facility or institution for neglected or delinquent 
                children and youth; and
                    ``(B) intends to return to the local school;
            ``(16) provides an assurance that the State agency will work 
        with children and youth who dropped out of school before 
        entering the correctional facility or institution for neglected 
        or delinquent children and youth to encourage the children and 
        youth to reenter school once the term of the incarceration is 
        completed or provide the child or youth with the skills 
        necessary to gain employment, continue the education of the 
        child or youth, or achieve a secondary school diploma or its 
        recognized equivalent if the child or youth does not intend to 
        return to school;
            ``(17) provides an assurance that teachers and other 
        qualified staff are trained to work with children and youth with 
        disabilities and other students with special needs taking into 
        consideration the unique needs of such students;
            ``(18) describes any additional services to be provided to 
        children and youth, such as career counseling, distance 
        learning, and assistance in securing student loans and grants; 
        and
            ``(19) provides an assurance that the program under this 
        subpart will be coordinated with any programs operated under the 
        Juvenile Justice and Delinquency Prevention Act of 1974 (42 
        U.S.C. 5601 et seq.) or other comparable programs, if 
        applicable.

[[Page 115 STAT. 1585]]

``SEC. <<NOTE: 20 USC 6435.>> 1415. USE OF FUNDS.

    ``(a) Uses.--
            ``(1) In general.--A State agency shall use funds received 
        under this subpart only for programs and projects that--
                    ``(A) are consistent with the State plan under 
                section 1414(a); and
                    ``(B) concentrate on providing participants with the 
                knowledge andskills needed to make a successful 
                transition to secondary school completion, vocational or 
                technical training, further education, or employment.
            ``(2) Programs and projects.--Such programs and projects--
                    ``(A) may include the acquisition of equipment;
                    ``(B) shall be designed to support educational 
                services that--
                          ``(i) except for institution-wide projects 
                      under section 1416, are provided to children and 
                      youth identified by the State agency as failing, 
                      or most at-risk of failing, to meet the State's 
                      challenging academic content standards and student 
                      academic achievement standards;
                          ``(ii) supplement and improve the quality of 
                      the educational services provided to such children 
                      and youth by the State agency; and
                          ``(iii) afford such children and youth an 
                      opportunity to meet challenging State academic 
                      achievement standards;
                    ``(C) shall be carried out in a manner consistent 
                with section 1120A and part I (as applied to programs 
                and projects under this part); and
                    ``(D) may include the costs of meeting the 
                evaluation requirements of section 9601.

    ``(b) Supplement, Not Supplant.--A program under this subpart that 
supplements the number of hours of instruction students receive from 
State and local sources shall be considered to comply with the 
supplement, not supplant requirement of section 1120A (as applied to 
this part) without regard to the subject areas in which instruction is 
given during those hours.

``SEC. <<NOTE: 20 USC 6436.>> 1416. INSTITUTION-WIDE PROJECTS.

    ``A State agency that provides free public education for children 
and youth in an institution for neglected or delinquent children and 
youth (other than an adult correctional institution) or attending a 
community-day program for such children and youth may use funds received 
under this subpart to serve all children in, and upgrade the entire 
educational effort of, that institution or program if the State agency 
has developed, and the State educational agency has approved, a 
comprehensive plan for that institution or program that--
            ``(1) provides for a comprehensive assessment of the 
        educational needs of all children and youth in the institution 
        or program serving juveniles;
            ``(2) provides for a comprehensive assessment of the 
        educational needs of youth aged 20 and younger in adult 
        facilities who are expected to complete incarceration within a 
        2-year period;
            ``(3) describes the steps the State agency has taken, or 
        will take, to provide all children and youth under age 21

[[Page 115 STAT. 1586]]

        with the opportunity to meet challenging State academic content 
        standards and student academic achievement standards in order to 
        improve the likelihood that the children and youth will complete 
        secondary school, attain a secondary diploma or its recognized 
        equivalent, or find employment after leaving the institution;
            ``(4) describes the instructional program, pupil services, 
        and procedures that will be used to meet the needs described in 
        paragraph (1), including, to the extent feasible, the provision 
        of mentors for the children and youth described in paragraph 
        (1);
            ``(5) specifically describes how such funds will be used;
            ``(6) describes the measures and procedures that will be 
        used to assess student progress;
            ``(7) describes how the agency has planned, and will 
        implement and evaluate, the institution-wide or program-wide 
        project in consultation with personnel providing direct 
        instructional services and support services in institutions or 
        community-day programs for neglected or delinquent children and 
        youth, and with personnel from the State educational agency; and
            ``(8) includes an assurance that the State agency has 
        provided for appropriate training for teachers and other 
        instructional and administrative personnel to enable such 
        teachers and personnel to carry out the project effectively.

``SEC. <<NOTE: 20 USC 6437.>> 1417. THREE-YEAR PROGRAMS OR PROJECTS.

    ``If a State agency operates a program or project under this subpart 
in which individual children or youth are likely to participate for more 
than 1 year, the State educational agency may approve the State agency's 
application for a subgrant under this subpart for a period of not more 
than 3 years.

``SEC. <<NOTE: 20 USC 6438.>> 1418. TRANSITION SERVICES.

    ``(a) Transition Services.--Each State agency shall reserve not less 
than 15 percent and not more than 30 percent of the amount such agency 
receives under this subpart for any fiscal year to support--
            ``(1) projects that facilitate the transition of children 
        and youth from State-operated institutions to schools served by 
        local educational agencies; or
            ``(2) the successful reentry of youth offenders, who are age 
        20 or younger and have received a secondary school diploma or 
        its recognized equivalent, into postsecondary education, or 
        vocational and technical training programs, through strategies 
        designed to expose the youth to, and prepare the youth for, 
        postsecondary education, or vocational and technical training 
        programs, such as--
                    ``(A) preplacement programs that allow adjudicated 
                or incarcerated youth to audit or attend courses on 
                college, university, or community college campuses, or 
                through programs provided in institutional settings;
                    ``(B) worksite schools, in which institutions of 
                higher education and private or public employers partner 
                to create programs to help students make a successful 
                transition to postsecondary education and employment; 
                and
                    ``(C) essential support services to ensure the 
                success of the youth, such as--

[[Page 115 STAT. 1587]]

                          ``(i) personal, vocational and technical, and 
                      academic, counseling;
                          ``(ii) placement services designed to place 
                      the youth in a university, college, or junior 
                      college program;
                          ``(iii) information concerning, and assistance 
                      in obtaining, available student financial aid;
                          ``(iv) counseling services; and
                          ``(v) job placement services.

    ``(b) Conduct of Projects.--A project supported under this section 
may be conducted directly by the State agency, or through a contract or 
other arrangement with one or more local educational agencies, other 
public agencies, or private nonprofit organizations.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to prohibit a school that receives funds under subsection (a) 
from serving neglected and delinquent children and youth simultaneously 
with students with similar educational needs, in the same educational 
settings where appropriate.

``SEC. <<NOTE: 20 USC 6439.>> 1419. EVALUATION; TECHNICAL ASSISTANCE; 
            ANNUAL MODEL PROGRAM.

    ``The Secretary may reserve not more than 2.5 percent of the amount 
made available to carry out this subpart for a fiscal year--
            ``(1) to develop a uniform model to evaluate the 
        effectiveness of programs assisted under this subpart; and
            ``(2) to provide technical assistance to and support the 
        capacity building of State agency programs assisted under this 
        subpart.

                   ``Subpart 2--Local Agency Programs

``SEC. <<NOTE: 20 USC 6451.>> 1421. PURPOSE.

    ``The purpose of this subpart is to support the operation of local 
educational agency programs that involve collaboration with locally 
operated correctional facilities--
            ``(1) to carry out high quality education programs to 
        prepare children and youth for secondary school completion, 
        training, employment, or further education;
            ``(2) to provide activities to facilitate the transition of 
        such children and youth from the correctional program to further 
        education or employment; and
            ``(3) to operate programs in local schools for children and 
        youth returning from correctional facilities, and programs which 
        may serve at-risk children and youth.

``SEC. <<NOTE: 20 USC 6452.>> 1422. PROGRAMS OPERATED BY LOCAL 
            EDUCATIONAL AGENCIES.

    ``(a) Local Subgrants.--With funds made available under section 
1402(b), the State educational agency shall award subgrants to local 
educational agencies with high numbers or percentages of children and 
youth residing in locally operated (including county operated) 
correctional facilities for children and youth (including facilities 
involved in community day programs).
    ``(b) Special Rule.--A local educational agency that serves a school 
operated by a correctional facility is not required to operate a program 
of support for children and youth returning from such school to a school 
that is not operated by a correctional agency but served by such local 
educational agency, if more than 30 percent of the children and youth 
attending the school operated by the

[[Page 115 STAT. 1588]]

correctional facility will reside outside the boundaries served by the 
local educational agency after leaving such facility.
    ``(c) Notification.--A State educational agency shall notify local 
educational agencies within the State of the eligibility of such 
agencies to receive a subgrant under this subpart.
    ``(d) Transitional and Academic Services.--Transitional and 
supportive programs operated in local educational agencies under this 
subpart shall be designed primarily to meet the transitional and 
academic needs of students returning to local educational agencies or 
alternative education programs from correctional facilities. Services to 
students at-risk of dropping out of school shall not have a negative 
impact on meeting the transitional and academic needs of the students 
returning from correctional facilities.

``SEC. <<NOTE: 20 USC 6453.>> 1423. LOCAL EDUCATIONAL AGENCY 
            APPLICATIONS.

    ``Each local educational agency desiring assistance under this 
subpart shall submit an application to the State educational agency that 
contains such information as the State educational agency may require. 
Each such application shall include--
            ``(1) a description of the program to be assisted;
            ``(2) a description of formal agreements, regarding the 
        program to be assisted, between--
                    ``(A) the local educational agency; and
                    ``(B) correctional facilities and alternative school 
                programs serving children and youth involved with the 
                juvenile justice system;
            ``(3) as appropriate, a description of how participating 
        schools will coordinate with facilities working with delinquent 
        children and youth to ensure that such children and youth are 
        participating in an education program comparable to one 
        operating in the local school such youth would attend;
            ``(4) a description of the program operated by participating 
        schools for children and youth returning from correctional 
        facilities and, as appropriate, the types of services that such 
        schools will provide such children and youth and other at-risk 
        children and youth;
            ``(5) a description of the characteristics (including 
        learning difficulties, substance abuse problems, and other 
        special needs) of the children and youth who will be returning 
        from correctional facilities and, as appropriate, other at-risk 
        children and youth expected to be served by the program, and a 
        description of how the school will coordinate existing 
        educational programs to meet the unique educational needs of 
        such children and youth;
            ``(6) as appropriate, a description of how schools will 
        coordinate with existing social, health, and other services to 
        meet the needs of students returning from correctional 
        facilities, at-risk children or youth, and other participating 
        children or youth, including prenatal health care and nutrition 
        services related to the health of the parent and the child or 
        youth, parenting and child development classes, child care, 
        targeted reentry and outreach programs, referrals to community 
        resources, and scheduling flexibility;
            ``(7) as appropriate, a description of any partnerships with 
        local businesses to develop training, curriculum-based youth 
        entrepreneurship education, and mentoring services for 
        participating students;

[[Page 115 STAT. 1589]]

            ``(8) as appropriate, a description of how the program will 
        involve parents in efforts to improve the educational 
        achievement of their children, assist in dropout prevention 
        activities, and prevent the involvement of their children in 
        delinquent activities;
            ``(9) a description of how the program under this subpart 
        will be coordinated with other Federal, State, and local 
        programs, such as programs under title I of Public Law 105-220 
        and vocational and technical education programs serving at-risk 
        children and youth;
            ``(10) a description of how the program will be coordinated 
        with programs operated under the Juvenile Justice and 
        Delinquency Prevention Act of 1974 and other comparable 
        programs, if applicable;
            ``(11) as appropriate, a description of how schools will 
        work with probation officers to assist in meeting the needs of 
        children and youth returning from correctional facilities;
            ``(12) a description of the efforts participating schools 
        will make to ensure correctional facilities working with 
        children and youth are aware of a child's or youth's existing 
        individualized education program; and
            ``(13) as appropriate, a description of the steps 
        participating schools will take to find alternative placements 
        for children and youth interested in continuing their education 
        but unable to participate in a regular public school program.

``SEC. <<NOTE: 20 USC 6454.>> 1424. USES OF FUNDS.

    ``Funds provided to local educational agencies under this subpart 
may be used, as appropriate, for--
            ``(1) programs that serve children and youth returning to 
        local schools from correctional facilities, to assist in the 
        transition of such children and youth to the school environment 
        and help them remain in school in order to complete their 
        education;
            ``(2) dropout prevention programs which serve at-risk 
        children and youth, including pregnant and parenting teens, 
        children and youth who have come in contact with the juvenile 
        justice system, children and youth at least 1 year behind their 
        expected grade level, migrant youth, immigrant youth, students 
        with limited English proficiency, and gang members;
            ``(3) the coordination of health and social services for 
        such individuals if there is a likelihood that the provision of 
        such services, including day care, drug and alcohol counseling, 
        and mental health services, will improve the likelihood such 
        individuals will complete their education;
            ``(4) special programs to meet the unique academic needs of 
        participating children and youth, including vocational and 
        technical education, special education, career counseling, 
        curriculum-based youth entrepreneurship education, and 
        assistance in securing student loans or grants for postsecondary 
        education; and
            ``(5) programs providing mentoring and peer mediation.

``SEC. <<NOTE: 20 USC 6455.>> 1425. PROGRAM REQUIREMENTS FOR 
            CORRECTIONAL FACILITIES RECEIVING FUNDS UNDER THIS SECTION.

    ``Each correctional facility entering into an agreement with a local 
educational agency under section 1423(2) to provide services to children 
and youth under this subpart shall--

[[Page 115 STAT. 1590]]

            ``(1) where feasible, ensure that educational programs in 
        the correctional facility are coordinated with the student's 
        home school, particularly with respect to a student with an 
        individualized education program under part B of the Individuals 
        with Disabilities Education Act;
            ``(2) if the child or youth is identified as in need of 
        special education services while in the correctional facility, 
        notify the local school of the child or youth of such need;
            ``(3) where feasible, provide transition assistance to help 
        the child or youth stay in school, including coordination of 
        services for the family, counseling, assistance in accessing 
        drug and alcohol abuse prevention programs, tutoring, and family 
        counseling;
            ``(4) provide support programs that encourage children and 
        youth who have dropped out of school to reenter school once 
        their term at the correctional facility has been completed, or 
        provide such children and youth with the skills necessary to 
        gain employment or seek a secondary school diploma or its 
        recognized equivalent;
            ``(5) work to ensure that the correctional facility is 
        staffed with teachers and other qualified staff who are trained 
        to work with children and youth with disabilities taking into 
        consideration the unique needs of such children and youth;
            ``(6) ensure that educational programs in the correctional 
        facility are related to assisting students to meet high academic 
        achievement standards;
            ``(7) to the extent possible, use technology to assist in 
        coordinating educational programs between the correctional 
        facility and the community school;
            ``(8) where feasible, involve parents in efforts to improve 
        the educational achievement of their children and prevent the 
        further involvement of such children in delinquent activities;
            ``(9) coordinate funds received under this subpart with 
        other local, State, and Federal funds available to provide 
        services to participating children and youth, such as funds made 
        available under title I of Public Law 105-220, and vocational 
        and technical education funds;
            ``(10) coordinate programs operated under this subpart with 
        activities funded under the Juvenile Justice and Delinquency 
        Prevention Act of 1974 and other comparable programs, if 
        applicable; and
            ``(11) if appropriate, work with local businesses to develop 
        training, curriculum-based youth entrepreneurship education, and 
        mentoring programs for children and youth.

``SEC. <<NOTE: 20 USC 6456.>> 1426. ACCOUNTABILITY.

    ``The State educational agency may--
            ``(1) reduce or terminate funding for projects under this 
        subpart if a local educational agency does not show progress in 
        reducing dropout rates for male students and for female students 
        over a 3-year period; and
            ``(2) require correctional facilities or institutions for 
        neglected or delinquent children and youth to demonstrate, after 
        receiving assistance under this subpart for 3 years, that there 
        has been an increase in the number of children and youth 
        returning to school, obtaining a secondary school diploma

[[Page 115 STAT. 1591]]

        or its recognized equivalent, or obtaining employment after such 
        children and youth are released.

                     ``Subpart 3--General Provisions

``SEC. <<NOTE: 20 USC 6471.>> 1431. PROGRAM EVALUATIONS.

    ``(a) Scope of Evaluation.--Each State agency or local educational 
agency that conducts a program under subpart 1 or 2 shall evaluate the 
program, disaggregating data on participation by gender, race, 
ethnicity, and age, not less than once every 3 years, to determine the 
program's impact on the ability of participants--
            ``(1) to maintain and improve educational achievement;
            ``(2) to accrue school credits that meet State requirements 
        for grade promotion and secondary school graduation;
            ``(3) to make the transition to a regular program or other 
        education program operated by a local educational agency;
            ``(4) to complete secondary school (or secondary school 
        equivalency requirements) and obtain employment after leaving 
        the correctional facility or institution for neglected or 
        delinquent children and youth; and
            ``(5) as appropriate, to participate in postsecondary 
        education and job training programs.

    ``(b) Exception.--The disaggregation required under subsection (a) 
shall not be required in a case in which the number of students in a 
category is insufficient to yield statistically reliable information or 
the results would reveal personally identifiable information about an 
individual student.
    ``(c) Evaluation Measures.--In conducting each evaluation under 
subsection (a), a State agency or local educational agency shall use 
multiple and appropriate measures of student progress.
    ``(d) Evaluation Results.--Each State agency and local educational 
agency shall--
            ``(1) submit evaluation results to the State educational 
        agency and the Secretary; and
            ``(2) use the results of evaluations under this section to 
        plan and improve subsequent programs for participating children 
        and youth.

``SEC. <<NOTE: 20 USC 6472.>> 1432. DEFINITIONS.

    ``In this part:
            ``(1) Adult correctional institution.--The term `adult 
        correctional institution' means a facility in which persons 
        (including persons under 21 years of age) are confined as a 
        result of a conviction for a criminal offense.
            ``(2) At-risk.--The term `at-risk', when used with respect 
        to a child, youth, or student, means a school aged individual 
        who is at-risk of academic failure, has a drug or alcohol 
        problem, is pregnant or is a parent, has come into contact with 
        the juvenile justice system in the past, is at least 1 year 
        behind the expected grade level for the age of the individual, 
        has limited English proficiency, is a gang member, has dropped 
        out of school in the past, or has a high absenteeism rate at 
        school.
            ``(3) Community day program.--The term `community day 
        program' means a regular program of instruction provided by

[[Page 115 STAT. 1592]]

        a State agency at a community day school operated specifically 
        for neglected or delinquent children and youth.
            ``(4) Institution for neglected or delinquent children and 
        youth.--The term `institution for neglected or delinquent 
        children and youth' means--
                    ``(A) a public or private residential facility, 
                other than a foster home, that is operated for the care 
                of children who have been committed to the institution 
                or voluntarily placed in the institution under 
                applicable State law, due to abandonment, neglect, or 
                death of their parents or guardians; or
                    ``(B) a public or private residential facility for 
                the care of children who have been adjudicated to be 
                delinquent or in need of supervision.

                ``PART E--NATIONAL ASSESSMENT OF TITLE I

``SEC. <<NOTE: 20 USC 6491.>> 1501. EVALUATIONS.

    ``(a) National Assessment of Title I.--
            ``(1) In general.--The Secretary shall conduct a national 
        assessment of the programs assisted under this title and the 
        impact of this title on States, local educational agencies, 
        schools, and students.
            ``(2) Issues to be examined.--In conducting the assessment 
        under this subsection, the Secretary shall examine, at a 
        minimum, the following:
                    ``(A) The implementation of programs assisted under 
                this title and the impact of such implementation on 
                increasing student academic achievement (particularly in 
                schools with high concentrations of children living in 
                poverty), relative to the goal of all students reaching 
                the proficient level of achievement based on State 
                academic assessments, challenging State academic content 
                standards, and challenging State student academic 
                achievement standards under section 1111.
                    ``(B) The types of programs and services that have 
                demonstrated the greatest likelihood of helping students 
                reach the proficient and advanced levels of achievement 
                based on State student academic achievement standards 
                and State academic content standards.
                    ``(C) The implementation of State academic 
                standards, assessments, and accountability systems 
                developed under this title, including--
                          ``(i) the time and cost required for the 
                      development of academic assessments for students 
                      in grades 3 through 8;
                          ``(ii) how well such State assessments meet 
                      the requirements for assessments described in this 
                      title; and
                          ``(iii) the impact of such standards, 
                      assessments, and accountability systems on 
                      educational programs and instruction at the local 
                      level.
                    ``(D) Each State's definition of adequate yearly 
                progress, including--
                          ``(i) the impact of applying this definition 
                      to schools, local educational agencies, and the 
                      State;

[[Page 115 STAT. 1593]]

                          ``(ii) the number of schools and local 
                      educational agencies not meeting this definition; 
                      and
                          ``(iii) the changes in the identification of 
                      schools in need of improvement as a result of such 
                      definition.
                    ``(E) How schools, local educational agencies, and 
                States have--
                          ``(i) publicized and disseminated the local 
                      educational agency report cards required under 
                      section 1111(h)(2) to teachers, school staff, 
                      students, parents, and the community;
                          ``(ii) used funds made available under this 
                      title to provide preschool and family literacy 
                      services and the impact of these services on 
                      students' school readiness;
                          ``(iii) implemented the provisions of section 
                      1118 and afforded parents meaningful opportunities 
                      to be involved in the education of their children;
                          ``(iv) used Federal, State, and local 
                      educational agency funds and resources to support 
                      schools and provide technical assistance to 
                      improve the achievement of students in low-
                      performing schools, including the impact of the 
                      technical assistance on such achievement; and
                          ``(v) <<NOTE: Deadline.>> used State 
                      educational agency and local educational agency 
                      funds and resources to help schools in which 50 
                      percent or more of the students are from families 
                      with incomes below the poverty line meet the 
                      requirement described in section 1119 of having 
                      all teachers highly qualified not later than the 
                      end of the 2005-2006 school year.
                    ``(F) The implementation of schoolwide programs and 
                targeted assistance programs under this title and the 
                impact of such programs on improving student academic 
                achievement, including the extent to which schools meet 
                the requirements of such programs.
                    ``(G) The extent to which varying models of 
                comprehensive school reform are funded and implemented 
                under this title, and the effect of the implementation 
                of such models on improving achievement of disadvantaged 
                students.
                    ``(H) The costs as compared to the benefits of the 
                activities assisted under this title.
                    ``(I) The extent to which actions authorized under 
                section 1116 are implemented by State educational 
                agencies and local educational agencies to improve the 
                academic achievement of students in low-performing 
                schools, and the effectiveness of the implementation of 
                such actions, including the following:
                          ``(i) The number of schools identified for 
                      school improvement and how many years the schools 
                      remain in this status.
                          ``(ii) The types of support provided by the 
                      State educational agencies and local educational 
                      agencies to schools and local educational agencies 
                      respectively identified as in need of improvement, 
                      and the impact of such support on student 
                      achievement.
                          ``(iii) The number of parents who take 
                      advantage of the public school choice provisions 
                      of this title, the

[[Page 115 STAT. 1594]]

                      costs (including transportation costs) associated 
                      with implementing these provisions, the 
                      implementation of these provisions, and the impact 
                      of these provisions (including the impact of 
                      attending another school) on student achievement.
                          ``(iv) The number of parents who choose to 
                      take advantage of the supplemental educational 
                      services option, the criteria used by the States 
                      to determine the quality of providers, the kinds 
                      of services that are available and utilized, the 
                      costs associated with implementing this option, 
                      and the impact of receiving supplemental 
                      educational services on student achievement.
                          ``(v) The implementation and impact of actions 
                      that are taken with regard to schools and local 
                      educational agencies identified for corrective 
                      action and restructuring.
                    ``(J) The extent to which State and local fiscal 
                accounting requirements under this title affect the 
                flexibility of schoolwide programs.
                    ``(K) The implementation and impact of the 
                professional development activities assisted under this 
                title and title II on instruction, student academic 
                achievement, and teacher qualifications.
                    ``(L) The extent to which the assistance made 
                available under this title, including funds under 
                section 1002, is targeted to disadvantaged students, 
                schools, and local educational agencies with the 
                greatest need.
                    ``(M) The effectiveness of Federal administration 
                assistance made available under this title, including 
                monitoring and technical assistance.
                    ``(N) The academic achievement of the groups of 
                students described in section 1111(b)(2)(C)(v)(II).
                    ``(O) Such other issues as the Secretary considers 
                appropriate.
            ``(3) Sources of information.--In conducting the assessment 
        under this subsection, the Secretary shall use information from 
        a variety of sources, including the National Assessment of 
        Educational Progress (carried out under section 411 of the 
        National Education Statistics Act of 1994), State evaluations, 
        and other research studies.
            ``(4) Coordination.--In carrying out this subsection, the 
        Secretary shall--
                    ``(A) coordinate the national assessment under this 
                subsection with the longitudinal study described in 
                subsection (c); and
                    ``(B) ensure that the independent review panel 
                described in subsection (d) participates in conducting 
                the national assessment under this subsection, including 
                planning for and reviewing the assessment.
            ``(5) Developmentally appropriate measures.--In conducting 
        the national assessment under this subsection, the Secretary 
        shall use developmentally appropriate measures to assess student 
        academic achievement.
            ``(6) Reports.--
                    ``(A) <<NOTE: Deadline.>> Interim report.--Not later 
                than 3 years after the date of enactment of the No Child 
                Left Behind Act

[[Page 115 STAT. 1595]]

                of 2001, the Secretary shall transmit to the President, 
                the Committee on Education and the Workforce of the 
                House of Representatives, and the Committee on Health, 
                Education, Labor, and Pensions of the Senate an interim 
                report on the national assessment conducted under this 
                subsection.
                    ``(B) <<NOTE: Deadline.>> Final report.--Not later 
                than 5 years after the date of enactment of the No Child 
                Left Behind Act of 2001, the Secretary shall transmit to 
                the President, the Committee on Education and the 
                Workforce of the House of Representatives, and the 
                Committee on Health, Education, Labor, and Pensions of 
                the Senate a final report on the national assessment 
                conducted under this subsection.

    ``(b) Studies and Data Collection.--
            ``(1) In general.--In addition to other activities described 
        in this section, the Secretary may, directly or through awarding 
        grants to or entering into contracts with appropriate entities--
                    ``(A) assess the implementation and effectiveness of 
                programs under this title;
                    ``(B) collect the data necessary to comply with the 
                Government Performance and Results Act of 1993; and
                    ``(C) provide guidance and technical assistance to 
                State educational agencies and local educational 
                agencies in developing and maintaining management 
                information systems through which such agencies may 
                develop program performance indicators to improve 
                services and performance.
            ``(2) Minimum information.--In carrying out this subsection, 
        the Secretary shall collect, at a minimum, trend information on 
        the effect of each program authorized under this title, which 
        shall complement the data collected and reported under 
        subsections (a) and (c).

    ``(c) National Longitudinal Study.--
            ``(1) In general.--The Secretary shall conduct a 
        longitudinal study of schools receiving assistance under part A.
            ``(2) Issues to be examined.--In carrying out this 
        subsection, the Secretary shall ensure that the study referred 
        to in paragraph (1) provides Congress and educators with each of 
        the following:
                    ``(A) An accurate description and analysis of the 
                short- and long-term effect of the assistance made 
                available under this title on academic achievement.
                    ``(B) Information that can be used to improve the 
                effectiveness of the assistance made available under 
                this title in enabling students to meet challenging 
                academic achievement standards.
                    ``(C) An analysis of educational practices or model 
                programs that are effective in improving the achievement 
                of disadvantaged children.
                    ``(D) An analysis of the costs as compared to the 
                benefits of the assistance made available under this 
                title in improving the achievement of disadvantaged 
                children.
                    ``(E) An analysis of the effects of the availability 
                of school choice options under section 1116 on the 
                academic achievement of disadvantaged students, on 
                schools in school

[[Page 115 STAT. 1596]]

                improvement, and on schools from which students have 
                transferred under such options.
                    ``(F) Such other information as the Secretary 
                considers appropriate.
            ``(3) Scope.--In conducting the study referred to in 
        paragraph (1), the Secretary shall ensure that the study--
                    ``(A) bases its analysis on a nationally 
                representative sample of schools participating in 
                programs under this title;
                    ``(B) to the extent practicable, includes in its 
                analysis students who transfer to different schools 
                during the course of the study; and
                    ``(C) analyzes varying models or strategies for 
                delivering school services, including--
                          ``(i) schoolwide and targeted services; and
                          ``(ii) comprehensive school reform models.

    ``(d) <<NOTE: Establishment.>> Independent Review Panel.--
            ``(1) In general.--The Secretary shall establish an 
        independent review panel (in this subsection referred to as the 
        `Review Panel') to advise the Secretary on methodological and 
        other issues that arise in carrying out subsections (a) and (c).
            ``(2) Appointment of members.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall appoint members of the Review Panel from 
                among qualified individuals who are--
                          ``(i) specialists in statistics, evaluation, 
                      research, and assessment;
                          ``(ii) education practitioners, including 
                      teachers, principals, and local and State 
                      superintendents;
                          ``(iii) parents and members of local school 
                      boards or other organizations involved with the 
                      implementation and operation of programs under 
                      this title; and
                          ``(iv) other individuals with technical 
                      expertise who will contribute to the overall rigor 
                      and quality of the program evaluation.
                    ``(B) Limitations.--In appointing members of the 
                Review Panel, the Secretary shall ensure that--
                          ``(i) in order to ensure diversity, the Review 
                      Panel includes individuals appointed under 
                      subparagraph (A)(i) who represent disciplines or 
                      programs outside the field of education; and
                          ``(ii) the total number of the individuals 
                      appointed under subparagraph (A)(ii) or (A)(iv) 
                      does not exceed one-fourth of the total number of 
                      the individuals appointed under this paragraph.
            ``(3) Functions.--The Review Panel shall consult with and 
        advise the Secretary--
                    ``(A) to ensure that the assessment conducted under 
                subsection (a) and the study conducted under subsection 
                (c)--
                          ``(i) adhere to the highest possible standards 
                      of quality with respect to research design, 
                      statistical analysis, and the dissemination of 
                      findings; and
                          ``(ii) use valid and reliable measures to 
                      document program implementation and impacts; and
                    ``(B) to ensure--

[[Page 115 STAT. 1597]]

                          ``(i) that the final report described in 
                      subsection (a)(6)(B) is reviewed not later than 
                      120 days after its completion by not less than two 
                      independent experts in program evaluation (who may 
                      be from among the members of the Review Panel 
                      appointed under paragraph (2));
                          ``(ii) that such experts evaluate and comment 
                      on the degree to which the report complies with 
                      subsection (a); and
                          ``(iii) that the comments of such experts are 
                      transmitted with the report under subsection 
                      (a)(6)(B).

``SEC. <<NOTE: 20 USC 6492.>> 1502. DEMONSTRATIONS OF INNOVATIVE 
            PRACTICES.

    ``(a) In General.--From the funds appropriated for any fiscal year 
under section 1002(e)(1), the Secretary may award grants to State 
educational agencies, local educational agencies, other public agencies, 
nonprofit organizations, public or private partnerships involving 
business and industry organizations, and consortia of such entities to 
carry out demonstration projects that show the most promise of enabling 
children served under this title to meet challenging State academic 
content standards and challenging State student academic achievement 
standards.
    ``(b) Evaluation.--The Secretary shall evaluate the demonstration 
projects supported under this title, using rigorous methodological 
designs and techniques, including control groups and random assignment, 
to the extent feasible, to produce reliable evidence of effectiveness.
    ``(c) Partnerships.--From funds appropriated under section 
1002(e)(1) for any fiscal year, the Secretary may, directly or through 
grants or contracts, work in partnership with State educational 
agencies, local educational agencies, other public agencies, and 
nonprofit organizations to disseminate and use the highest quality 
research and knowledge about effective practices to improve the quality 
of teaching and learning in schools assisted under this title.

``SEC. <<NOTE: 20 USC 6493.>> 1503. ASSESSMENT EVALUATION.

    ``(a) In General.--The Secretary shall conduct an independent study 
of assessments used for State accountability purposes and for making 
decisions about the promotion and graduation of students. Such research 
shall be conducted over a period not to exceed 5 years and shall address 
the components described in subsection (d).
    ``(b) Contract Authorized.--The Secretary is authorized to award a 
contract, through a peer review process, to an organization or entity 
capable of conducting rigorous, independent research. The Assistant 
Secretary of Educational Research and Improvement shall appoint peer 
reviewers to evaluate the applications for this contract.
    ``(c) Study.--The study shall--
            ``(1) synthesize and analyze existing research that meets 
        standards of quality and scientific rigor; and
            ``(2) evaluate academic assessment and accountability 
        systems in State educational agencies, local educational 
        agencies, and schools; and
            ``(3) make recommendations to the Department and to the 
        Committee on Education and the Workforce of the United States 
        House of Representatives and the Committee on Health,

[[Page 115 STAT. 1598]]

        Education, Labor, and Pensions of the United States Senate, 
        based on the findings of the study.

    ``(d) Components of the Research Program.--The study described in 
subsection (a) shall examine--
            ``(1) the effect of the assessment and accountability 
        systems described in section (c) on students, teachers, parents, 
        families, schools, school districts, and States, including 
        correlations between such systems and--
                    ``(A) student academic achievement, progress to the 
                State-defined level of proficiency, and progress toward 
                closing achievement gaps, based on independent measures;
                    ``(B) changes in course offerings, teaching 
                practices, course content, and instructional material;
                    ``(C) changes in turnover rates among teachers, 
                principals, and pupil-services personnel;
                    ``(D) changes in dropout, grade-retention, and 
                graduation rates for students; and
                    ``(E) such other effects as may be appropriate;
            ``(2) the effect of the academic assessments on students 
        with disabilities;
            ``(3) the effect of the academic assessments on low, middle, 
        and high socioeconomic status students, limited and nonlimited 
        English proficient students, racial and ethnic minority 
        students, and nonracial or nonethnic minority students;
            ``(4) guidelines for assessing the validity, reliability, 
        and consistency of those systems using nationally recognized 
        professional and technical standards;
            ``(5) the relationship between accountability systems and 
        the inclusion or exclusion of students from the assessment 
        system; and
            ``(6) such other factors as the Secretary finds appropriate.

    ``(e) <<NOTE: Deadline. Public information.>> Reporting.--Not later 
than 3 years after the contract described in subsection (b) is awarded, 
the organization or entity conducting the study shall submit an interim 
report to the Committee on Education and the Workforce of the United 
States House of Representatives and the Committee on Health, Education, 
Labor and Pensions of the United States Senate, and to the President and 
the States, and shall make the report widely available to the public. 
The organization or entity shall submit a final report to the same 
recipients as soon as possible after the completion of the study. 
Additional reports may be periodically prepared and released as 
necessary.

    ``(f) Reservation of Funds.--The Secretary may reserve up to 15 
percent of the funds authorized to be appropriated for this part to 
carry out the study, except such reservation of funds shall not exceed 
$1,500,000.

``SEC. <<NOTE: 20 USC 6494.>> 1504. CLOSE UP FELLOWSHIP PROGRAM.

    ``(a) Program for Middle School and Secondary School Students.--
            ``(1) Establishment.--
                    ``(A) General authority.--In accordance with this 
                subsection, the Secretary may make grants to the Close 
                Up Foundation of Washington, District of Columbia, a 
                nonpartisan, nonprofit foundation, for the purpose of 
                assisting the Close Up Foundation in carrying out its 
                programs of increasing civic responsibility and 
                understanding of the

[[Page 115 STAT. 1599]]

                Federal Government among middle school and secondary 
                school students.
                    ``(B) Use of funds.--Grants under this subsection 
                shall be used only to provide financial assistance to 
                economically disadvantaged students who participate in 
                the programs described in subparagraph (A).
                    ``(C) Name of fellowships.--Financial assistance 
                received by students pursuant to this subsection shall 
                be known as Close Up fellowships.
            ``(2) Applications.--
                    ``(A) Application required.--No grant under this 
                subsection may be made except upon an application at 
                such time, in such manner, and accompanied by such 
                information as the Secretary may reasonably require.
                    ``(B) Contents of application.--Each application 
                submitted under this paragraph shall contain assurances 
                that--
                          ``(i) Close Up fellowships provided under this 
                      subsection shall be made to economically 
                      disadvantaged middle school and secondary school 
                      students;
                          ``(ii) every effort shall be made to ensure 
                      the participation of students from rural, small 
                      town, and urban areas;
                          ``(iii) in awarding the fellowships to 
                      economically disadvantaged students, special 
                      consideration shall be given to the participation 
                      of those students with special educational needs, 
                      including students with disabilities, ethnic 
                      minority students, and students with migrant 
                      parents; and
                          ``(iv) the funds received under this 
                      subsection shall be properly disbursed.

    ``(b) Program for Middle School and Secondary School Teachers.--
            ``(1) Establishment.--
                    ``(A) General authority.--In accordance with this 
                subsection, the Secretary may make grants to the Close 
                Up Foundation of Washington, District of Columbia, a 
                nonpartisan, nonprofit foundation, for the purpose of 
                assisting the Close Up Foundation in carrying out its 
                programs of professional development for middle school 
                and secondary school teachers and its programs to 
                increase civic responsibility and understanding of the 
                Federal Government among the teachers' students.
                    ``(B) Use of funds.--Grants under this subsection 
                shall be used only to provide financial assistance to 
                teachers who participate in the programs described in 
                subparagraph (A).
                    ``(C) Name of fellowships.--Financial assistance 
                received by teachers pursuant to this subsection shall 
                be known as Close Up fellowships.
            ``(2) Applications.--
                    ``(A) Application required.--No grant under this 
                subsection may be made except upon an application at 
                such time, in such manner, and accompanied by such 
                information as the Secretary may reasonably require.

[[Page 115 STAT. 1600]]

                    ``(B) Contents of application.--Each application 
                submitted under this paragraph shall contain assurances 
                that--
                          ``(i) Close Up fellowships provided under this 
                      subsection shall be made only to a teacher who has 
                      worked with at least one student from such 
                      teacher's school who participates in a program 
                      described in subsection (a)(1)(A);
                          ``(ii) no teacher shall receive more than one 
                      such fellowship in any fiscal year; and
                          ``(iii) the funds received under this 
                      subsection shall be properly disbursed.

    ``(c) Programs for New Americans.--
            ``(1) Establishment.--
                    ``(A) General authority.--In accordance with this 
                subsection, the Secretary may make grants to the Close 
                Up Foundation of Washington, District of Columbia, a 
                nonpartisan, nonprofit foundation, for the purpose of 
                assisting the Close Up Foundation in carrying out its 
                programs of increasing civic responsibility and 
                understanding of the Federal Government among 
                economically disadvantaged middle school and secondary 
                school recent immigrant students.
                    ``(B) Definition.--In this subsection, the term 
                `recent immigrant student' means a student who is a 
                member of a family that immigrated to the United States 
                within 5 years of the student's participation in such a 
                program.
                    ``(C) Use of funds.--Grants under this subsection 
                shall be used only to provide financial assistance to 
                economically disadvantaged recent immigrant students and 
                their teachers who participate in the programs described 
                in subparagraph (A).
                    ``(D) Name of fellowships.--Financial assistance 
                received by students and teachers pursuant to this 
                subsection shall be known as Close Up Fellowships for 
                New Americans.
            ``(2) Applications.--
                    ``(A) Application required.--No grant under this 
                subsection may be made except upon an application at 
                such time, in such manner, and accompanied by such 
                information as the Secretary may reasonably require.
                    ``(B) Contents of application.--Each application 
                submitted under this paragraph shall contain assurances 
                that--
                          ``(i) Close Up Fellowships for New Americans 
                      shall be made to economically disadvantaged middle 
                      school and secondary school recent immigrant 
                      students;
                          ``(ii) every effort shall be made to ensure 
                      the participation of recent immigrant students 
                      from rural, small town, and urban areas;
                          ``(iii) in awarding the fellowships to 
                      economically disadvantaged recent immigrant 
                      students, special consideration shall be given to 
                      the participation of those students with special 
                      educational needs, including students with 
                      disabilities, students with migrant parents, and 
                      ethnic minority students;

[[Page 115 STAT. 1601]]

                          ``(iv) fully describe the activities to be 
                      carried out with the proceeds of the grant made 
                      under paragraph (1); and
                          ``(v) the funds received under this subsection 
                      shall be properly disbursed.

    ``(d) General Provisions.--
            ``(1) Administrative provisions.--
                    ``(A) Accountability.--In consultation with the 
                Secretary, the Close Up Foundation shall devise and 
                implement procedures to measure the efficacy of the 
                programs authorized in subsections (a), (b), and (c) in 
                attaining objectives that include the following:
                          ``(i) Providing young people with an increased 
                      understanding of the Federal Government.
                          ``(ii) Heightening a sense of civic 
                      responsibility among young people.
                          ``(iii) Enhancing the skills of educators in 
                      teaching young people about civic responsibility, 
                      the Federal Government, and attaining citizenship 
                      competencies.
                    ``(B) General rule.--Payments under this section may 
                be made in installments, in advance, or by way of 
                reimbursement, with necessary adjustments on account of 
                underpayments or overpayments.
                    ``(C) Audit rule.--The Comptroller General of the 
                United States or any of the Comptroller General's duly 
                authorized representatives shall have access for the 
                purpose of audit and examination to any books, 
                documents, papers, and records that are pertinent to any 
                grant under this section.
             ``(2) Continuation of awards.--Notwithstanding any other 
        provision of this Act, any person or entity that was awarded a 
        grant under part G of title X before the date of enactment of 
        the No Child Left Behind Act of 2001 shall continue to receive 
        funds in accordance with the terms of such award until the date 
        on which the award period terminates under such terms.

                  ``PART F--COMPREHENSIVE SCHOOL REFORM

``SEC. <<NOTE: 20 USC 6511.>> 1601. PURPOSE.

    ``The purpose of this part is to provide financial incentives for 
schools to develop comprehensive school reforms, based upon 
scientifically based research and effective practices that include an 
emphasis on basic academics and parental involvement so that all 
children can meet challenging State academic content and academic 
achievement standards.

``SEC. <<NOTE: 20 USC 6512.>> 1602. PROGRAM AUTHORIZATION.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to State educational agencies, from allotments under 
        paragraph (2), to enable the State educational agencies to award 
        subgrants to local educational agencies to carry out the purpose 
        described in section 1601.
            ``(2) Allotments.--
                    ``(A) Reservations.--Of the amount appropriated 
                under section 1002(f), the Secretary may reserve--

[[Page 115 STAT. 1602]]

                          ``(i) not more than 1 percent for each fiscal 
                      year to provide assistance to schools supported by 
                      the Bureau of Indian Affairs and in the United 
                      States Virgin Islands, Guam, American Samoa, and 
                      the Commonwealth of the Northern Mariana Islands 
                      according to their respective needs for assistance 
                      under this part;
                          ``(ii) not more than 1 percent for each fiscal 
                      year to conduct national evaluation activities 
                      described in section 1607; and
                          ``(iii) not more than 3 percent of the amount 
                      appropriated in fiscal year 2002 to carry out this 
                      part, for quality initiatives described in section 
                      1608.
                    ``(B) In general.--Of the amount appropriated under 
                section 1002(f) that remains after making the 
                reservation under subparagraph (A) for a fiscal year, 
                the Secretary shall allot to each State for the fiscal 
                year an amount that bears the same ratio to the 
                remainder for that fiscal year as the amount made 
                available under section 1124 to the State for the 
                preceding fiscal year bears to the total amount made 
                available under section 1124 to all States for that 
                year.
                    ``(C) Reallotment.--If a State does not apply for 
                funds under this section, the Secretary shall reallot 
                such funds to other States that do apply in proportion 
                to the amount allotted to such other States under 
                subparagraph (B).

``SEC. <<NOTE: 20 USC 6513.>> 1603. STATE APPLICATIONS.

    ``(a) In General.--Each State educational agency that desires to 
receive a grant under this part shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require.
    ``(b) Contents.--Each such application shall describe--
            ``(1) the process and selection criteria by which the State 
        educational agency, using expert review, will select local 
        educational agencies to receive subgrants under this part;
            ``(2) how the State educational agency will ensure that 
        funds under this part are limited to comprehensive school reform 
        programs that--
                    ``(A) include each of the components described in 
                section 1606(a);
                    ``(B) have the capacity to improve the academic 
                achievement of all students in core academic subjects 
                within participating schools; and
                    ``(C) are supported by technical assistance 
                providers that have a successful track record, financial 
                stability, and the capacity to deliver high quality 
                materials, professional development for school 
                personnel, and on-site support during the full 
                implementation period of the reforms;
            ``(3) how the State educational agency will disseminate 
        materials and information on comprehensive school reforms that 
        are based on scientifically based research and effective 
        practices;
            ``(4) how the State educational agency will evaluate 
        annually the implementation of such reforms and measure the 
        extent to which the reforms have resulted in increased student 
        academic achievement; and

[[Page 115 STAT. 1603]]

            ``(5) how the State educational agency will provide 
        technical assistance to the local educational agency or 
        consortia of local educational agencies, and to participating 
        schools, in evaluating, developing, and implementing 
        comprehensive school reform.

``SEC. <<NOTE: 20 USC 6514.>> 1604. STATE USE OF FUNDS.

    ``(a) In General.--Except as provided in subsection (e), a State 
educational agency that receives a grant under this part shall use the 
grant funds to award subgrants, on a competitive basis, to local 
educational agencies or consortia of local educational agencies in the 
State that receive funds under part A, to support comprehensive school 
reforms in schools that are eligible for funds under part A.
    ``(b) Subgrant Requirements.--A subgrant to a local educational 
agency or consortium shall be--
            ``(1) of sufficient size and scope to support the initial 
        costs of comprehensive school reforms selected or designed by 
        each school identified in the application of the local 
        educational agency or consortium;
            ``(2) in an amount not less than $50,000--
                    ``(A) for each participating school; or
                    ``(B) for each participating consortium of small 
                schools (which for purposes of this subparagraph means a 
                consortium of small schools serving a total of not more 
                than 500 students); and
            ``(3) renewable for two additional 1-year subgrant periods 
        after the initial 1-year subgrant is made if the school is or 
        the schools are making substantial progress in the 
        implementation of reforms.

    ``(c) Priority.--A State educational agency, in awarding subgrants 
under this part, shall give priority to local educational agencies or 
consortia that--
            ``(1) plan to use the funds in schools identified as being 
        in need of improvement or corrective action under section 
        1116(c); and
            ``(2) demonstrate a commitment to assist schools with budget 
        allocation, professional development, and other strategies 
        necessary to ensure the comprehensive school reforms are 
        properly implemented and are sustained in the future.

    ``(d) Grant Consideration.--In awarding subgrants under this part, 
the State educational agency shall take into consideration the equitable 
distribution of subgrants to different geographic regions within the 
State, including urban and rural areas, and to schools serving 
elementary and secondary students.
    ``(e) Administrative Costs.--A State educational agency that 
receives a grant under this part may reserve not more than 5 percent of 
the grant funds for administrative, evaluation, and technical assistance 
expenses.
    ``(f) Supplement.--Funds made available under this part shall be 
used to supplement, and not supplant, any other Federal, State, or local 
funds that would otherwise be available to carry out the activities 
assisted under this part.
    ``(g) Reporting.--Each State educational agency that receives a 
grant under this part shall provide to the Secretary such information as 
the Secretary may require, including the names of local educational 
agencies and schools receiving assistance under this

[[Page 115 STAT. 1604]]

part, the amount of the assistance, a description of the comprehensive 
school reforms selected and used, and a copy of the State's annual 
evaluation of the implementation of comprehensive school reforms 
supported under this part and the student achievement results.

``SEC. <<NOTE: 20 USC 6515.>> 1605. LOCAL APPLICATIONS.

    ``(a) In General.--Each local educational agency or consortium of 
local educational agencies desiring a subgrant under this part shall 
submit an application to the State educational agency at such time, in 
such manner, and containing such information as the State educational 
agency may reasonably require.
    ``(b) Contents.--Each such application shall--
            ``(1) identify the schools that are eligible for assistance 
        under part A and plan to implement a comprehensive school reform 
        program, including the projected costs of such a program;
            ``(2) describe the comprehensive school reforms based on 
        scientifically based research and effective practices that such 
        schools will implement;
            ``(3) describe how the local educational agency or 
        consortium will provide technical assistance and support for the 
        effective implementation of the comprehensive school reforms 
        based on scientifically based research and effective practices 
        selected by such schools; and
            ``(4) describe how the local educational agency or 
        consortium will evaluate the implementation of such 
        comprehensive school reforms and measure the results achieved in 
        improving student academic achievement.

``SEC. <<NOTE: 20 USC 6516.>> 1606. LOCAL USE OF FUNDS.

    ``(a) Uses of Funds.--A local educational agency or consortium that 
receives a subgrant under this part shall provide the subgrant funds to 
schools that are eligible for assistance under part A and served by the 
agency, to enable the schools to implement a comprehensive school reform 
program that--
            ``(1) employs proven strategies and proven methods for 
        student learning, teaching, and school management that are based 
        on scientifically based research and effective practices and 
        have been replicated successfully in schools;
            ``(2) integrates a comprehensive design for effective school 
        functioning, including instruction, assessment, classroom 
        management, professional development, parental involvement, and 
        school management, that aligns the school's curriculum, 
        technology, and professional development into a comprehensive 
        school reform plan for schoolwide change designed to enable all 
        students to meet challenging State content and student academic 
        achievement standards and addresses needs identified through a 
        school needs assessment;
            ``(3) provides high quality and continuous teacher and staff 
        professional development;
            ``(4) includes measurable goals for student academic 
        achievement and benchmarks for meeting such goals;
            ``(5) is supported by teachers, principals, administrators, 
        school personnel staff, and other professional staff;
            ``(6) provides support for teachers, principals, 
        administrators, and other school staff;

[[Page 115 STAT. 1605]]

            ``(7) provides for the meaningful involvement of parents and 
        the local community in planning, implementing, and evaluating 
        school improvement activities consistent with section 1118;
            ``(8) uses high quality external technical support and 
        assistance from an entity that has experience and expertise in 
        schoolwide reform and improvement, which may include an 
        institution of higher education;
            ``(9) includes a plan for the annual evaluation of the 
        implementation of school reforms and the student results 
        achieved;
            ``(10) identifies other resources, including Federal, State, 
        local, and private resources, that shall be used to coordinate 
        services that will support and sustain the comprehensive school 
        reform effort; and
            ``(11)(A) has been found, through scientifically based 
        research to significantly improve the academic achievement of 
        students participating in such program as compared to students 
        in schools who have not participated in such program; or
            ``(B) has been found to have strong evidence that such 
        program will significantly improve the academic achievement of 
        participating children.

    ``(b) Special Rule.--A school that receives funds to develop a 
comprehensive school reform program shall not be limited to using 
nationally available approaches, but may develop the school's own 
comprehensive school reform program for schoolwide change as described 
in subsection (a).

``SEC. <<NOTE: 20 USC 6517.>> 1607. EVALUATION AND REPORTS.

    ``(a) In General.--The Secretary shall develop a plan for a national 
evaluation of the programs assisted under this part.
    ``(b) Evaluation.--The national evaluation shall--
            ``(1) evaluate the implementation and results achieved by 
        schools after 3 years of implementing comprehensive school 
        reforms; and
            ``(2) assess the effectiveness of comprehensive school 
        reforms in schools with diverse characteristics.

    ``(c) Reports.--The Secretary shall submit a report describing the 
results of the evaluation under subsection (b) for the Comprehensive 
School Reform Program to the Committee on Education and the Workforce, 
and the Committee on Appropriations of the House of Representatives, and 
the Committee on Health, Education, Labor, and Pensions, and the 
Committee on Appropriations of the Senate.

``SEC. <<NOTE: 20 USC 6518.>> 1608. QUALITY INITIATIVES.

    ``The Secretary, through grants or contracts, shall provide funds 
for--
            ``(1) a public-private effort, in which funds are matched by 
        private organizations, to assist States, local educational 
        agencies, and schools, in making informed decisions regarding 
        approving or selecting providers of comprehensive school reform, 
        consistent with the requirements described in section 1606(a); 
        and
            ``(2) activities to foster the development of comprehensive 
        school reform models and to provide effective capacity building

[[Page 115 STAT. 1606]]

        for comprehensive school reform providers to expand their work 
        in more schools, assure quality, and promote financial 
        stability.

  ``PART <<NOTE: Access to High Standards Act.>> G--ADVANCED PLACEMENT 
PROGRAMS

``SEC. <<NOTE: 20 USC 6531.>> 1701. SHORT TITLE.

    ``This part may be cited as the `Access to High Standards Act'.

``SEC. <<NOTE: 20 USC 6532.>> 1702. PURPOSES.

    The purposes of this part are--
            ``(1) to support State and local efforts to raise academic 
        standards through advanced placement programs, and thus further 
        increase the number of students who participate and succeed in 
        advanced placement programs;
            ``(2) to encourage more of the 600,000 students who take 
        advanced placement courses each year but do not take advanced 
        placement exams each year, to demonstrate their achievements 
        through taking the exams;
            ``(3) to build on the many benefits of advanced placement 
        programs for students, which benefits may include the 
        acquisition of skills that are important to many employers, 
        Scholastic Aptitude Test (SAT) scores that are 100 points above 
        the national averages, and the achievement of better grades in 
        secondary school and in college than the grades of students who 
        have not participated in the programs;
            ``(4) to increase the availability and broaden the range of 
        schools, including middle schools, that have advanced placement 
        and pre-advanced placement programs;
            ``(5) to demonstrate that larger and more diverse groups of 
        students can participate and succeed in advanced placement 
        programs;
            ``(6) to provide greater access to advanced placement and 
        pre-advanced placement courses and highly trained teachers for 
        low-income and other disadvantaged students;
            ``(7) to provide access to advanced placement courses for 
        secondary school students at schools that do not offer advanced 
        placement programs, increase the rate at which secondary school 
        students participate in advanced placement courses, and increase 
        the numbers of students who receive advanced placement test 
        scores for which college academic credit is awarded;
            ``(8) to increase the participation of low-income 
        individuals in taking advanced placement tests through the 
        payment or partial payment of the costs of the advanced 
        placement test fees; and
            ``(9) to increase the number of individuals that achieve a 
        baccalaureate or advanced degree, and to decrease the amount of 
        time such individuals require to attain such degrees.

``SEC. <<NOTE: 20 USC 6533.>> 1703. FUNDING DISTRIBUTION RULE.

    ``From amounts appropriated under section 1002(g) for a fiscal year, 
the Secretary shall give priority to funding activities under section 
1704 and shall distribute any remaining funds under section 1705.

``SEC. <<NOTE: 20 USC 6534.>> 1704. ADVANCED PLACEMENT TEST FEE PROGRAM.

    ``(a) Grants Authorized.--From amounts made available under section 
1703 for a fiscal year, the Secretary shall award

[[Page 115 STAT. 1607]]

grants to State educational agencies having applications approved under 
this section to enable the State educational agencies to reimburse low-
income individuals to cover part or all of the costs of advanced 
placement test fees, if the low-income individuals--
            ``(1) are enrolled in an advanced placement course; and
            ``(2) plan to take an advanced placement test.

    ``(b) Award Basis.--In determining the amount of the grant awarded 
to a State educational agency under this section for a fiscal year, the 
Secretary shall consider the number of children eligible to be counted 
under section 1124(c) in the State in relation to the number of such 
children so counted in all the States.
    ``(c) Information Dissemination.--A State educational agency awarded 
a grant under this section shall disseminate information regarding the 
availability of advanced placement test fee payments under this section 
to eligible individuals through secondary school teachers and guidance 
counselors.
    ``(d) Applications.--Each State educational agency desiring to 
receive a grant under this section shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require. At a minimum, each State 
educational agency application shall--
            ``(1) describe the advanced placement test fees the State 
        educational agency will pay on behalf of low-income individuals 
        in the State from grant funds awarded under this section;
            ``(2) provide an assurance that any grant funds awarded 
        under this section shall be used only to pay for advanced 
        placement test fees; and
            ``(3) contain such information as the Secretary may require 
        to demonstrate that the State educational agency will ensure 
        that a student is eligible for payments authorized under this 
        section, including documentation required under chapter 1 of 
        subpart 2 of part A of title IV of the Higher Education Act of 
        1965.

    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as are necessary to carry out this section.
    ``(f) Report.--
            ``(1) In general.--Each State educational agency awarded a 
        grant under this section shall, with respect to each advanced 
        placement subject, annually report to the Secretary on--
                    ``(A) the number of students in the State who are 
                taking an advanced placement course in that subject;
                    ``(B) the number of advanced placement tests taken 
                by students in the State who have taken an advanced 
                placement course in that subject;
                    ``(C) the number of students in the State scoring at 
                different levels on advanced placement tests in that 
                subject; and
                    ``(D) demographic information regarding individuals 
                in the State taking advanced placement courses and tests 
                in that subject disaggregated by race, ethnicity, sex, 
                English proficiency status, and socioeconomic status.
            ``(2) <<NOTE: Records.>> Report to congress.--The Secretary 
        shall annually compile the information received from each State 
        educational agency under paragraph (1) and report to the 
        appropriate committees of Congress regarding the information.

    ``(g) BIA as SEA.--For purposes of this section the Bureau of Indian 
Affairs shall be treated as a State educational agency.

[[Page 115 STAT. 1608]]

``SEC. <<NOTE: 20 USC 6535.>> 1705. ADVANCED PLACEMENT INCENTIVE PROGRAM 
            GRANTS.

    ``(a) Grants Authorized.--
            ``(1) In general.--From amounts made available under section 
        1703 for a fiscal year, the Secretary shall award grants, on a 
        competitive basis, to eligible entities to enable those entities 
        to carry out the authorized activities described in subsection 
        (d).
            ``(2) Duration and payments.--
                    ``(A) Duration.--The Secretary shall award a grant 
                under this section for a period of not more than 3 
                years.
                    ``(B) Payments.--The Secretary shall make grant 
                payments under this section on an annual basis.
            ``(3) Definition of eligible entity.--In this section, the 
        term `eligible entity' means a State educational agency, local 
        educational agency, or national nonprofit educational entity 
        with expertise in advanced placement services.

    ``(b) Application.--Each eligible entity desiring a grant under this 
section shall submit an application to the Secretary at such time, in 
such manner, and accompanied by such information as the Secretary may 
require.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an eligible entity that submits an 
application under subsection (b) that--
            ``(1) demonstrates a pervasive need for access to advanced 
        placement incentive programs;
            ``(2) provides for the involvement of business and community 
        organizations in the activities to be assisted;
            ``(3) assures the availability of matching funds from State, 
        local, or other sources to pay for the cost of activities to be 
        assisted;
            ``(4) demonstrates a focus on developing or expanding 
        advanced placement programs and participation in the core 
        academic areas of English, mathematics, and science;
            ``(5) demonstrates an intent to carry out activities that 
        target--
                    ``(A) local educational agencies serving schools 
                with a high concentration of low-income students; or
                    ``(B) schools with a high concentration of low-
                income students; and
            ``(6) in the case of a local educational agency, assures 
        that the local educational agency serves schools with a high 
        concentration of low-income students; or
            ``(7) demonstrates an intent to carry out activities to 
        increase the availability of, and participation in, on-line 
        advanced placement courses.

    ``(d) Authorized Activities.--
            ``(1) In general.--Subject to paragraph (2), an eligible 
        entity shall use grant funds made available under this section 
        to expand access for low-income individuals to advanced 
        placement incentive programs that involve--
                    ``(A) teacher training;
                    ``(B) pre-advanced placement course development;
                    ``(C) coordination and articulation between grade 
                levels to prepare students for academic achievement in 
                advanced placement courses;
                    ``(D) books and supplies; or

[[Page 115 STAT. 1609]]

                    ``(E) activities to increase the availability of, 
                and participation in, on-line advanced placement 
                courses; or
                    ``(F) any other activity directly related to 
                expanding access to and participation in advanced 
                placement incentive programs, particularly for low-
                income individuals.
            ``(2) State educational agency.--In the case of an eligible 
        entity that is a State educational agency, the entity may use 
        grant funds made available under this section to award subgrants 
        to local educational agencies to enable the local educational 
        agencies to carry out the activities under paragraph (1).

    ``(e) Contracts.--An eligible entity awarded a grant to provide 
online advanced placement courses under this part may enter into a 
contract with a nonprofit or for profit organization to provide the 
online advanced placement courses, including contracting for necessary 
support services.
    ``(f) Data Collection and Reporting.--
            ``(1) Data collection.--Each eligible entity awarded a grant 
        under this section shall, with respect to each advanced 
        placement subject, annually report to the Secretary on--
                    ``(A) the number of students served by the eligible 
                entity who are taking an advanced placement course in 
                that subject;
                    ``(B) the number of advanced placement tests taken 
                by students served by the eligible entity in that 
                subject;
                    ``(C) the number of students served by the eligible 
                entity scoring at different levels on advanced placement 
                tests in that subject; and
                    ``(D) demographic information regarding individuals 
                served by such agency who taking advanced placement 
                courses and tests in that subject disaggregated by race, 
                ethnicity, sex, English proficiency status, and 
                socioeconomic status.
            ``(2) <<NOTE: Records.>> Report.--The Secretary shall 
        annually compile the information received from each eligible 
        entity under paragraph (1) and report to the appropriate 
        committees of Congress regarding the information.

``SEC. <<NOTE: 20 USC 6536.>> 1706. SUPPLEMENT, NOT SUPPLANT.

    Grant funds provided under this part shall supplement, and not 
supplant, other non-Federal funds that are available to assist low-
income individuals to pay for the cost of advanced placement test fees 
or to expand access to advanced placement and pre-advanced placement 
courses.

``SEC. <<NOTE: 20 USC 6537.>> 1707. DEFINITIONS.

    ``In this part:
            ``(1) Advanced placement test.--The term `advanced placement 
        test' means an advanced placement test administered by the 
        College Board or approved by the Secretary.
            ``(2) High concentration of low-income students.--The term 
        `high concentration of low-income students', used with respect 
        to a school, means a school that serves a student population 40 
        percent or more of whom are low-income individuals.
            ``(3) Low-income individual.--The term `low-income 
        individual' means an individual who is determined by a State 
        educational agency or local educational agency to be a child,

[[Page 115 STAT. 1610]]

        ages 5 through 17, from a low-income family, on the basis of 
        data used by the Secretary to determine allocations under 
        section 1124 of this Act, data on children eligible for free or 
        reduced-price lunches under the National School Lunch Act, data 
        on children in families receiving assistance under part A of 
        title IV of the Social Security Act, or data on children 
        eligible to receive medical assistance under the medicaid 
        program under title XIX of the Social Security Act, or through 
        an alternate method that combines or extrapolates from those 
        data.

``PART <<NOTE: Dropout Prevention Act.>> H--SCHOOL DROPOUT PREVENTION

``SEC. <<NOTE: 20 USC 6551.>> 1801. SHORT TITLE.

    ``This part may be cited as the `Dropout Prevention Act'.

``SEC. <<NOTE: 20 USC 6552.>> 1802. PURPOSE.

    ``The purpose of this part is to provide for school dropout 
prevention and reentry and to raise academic achievement levels by 
providing grants that--
            ``(1) challenge all children to attain their highest 
        academic potential; and
            ``(2) ensure that all students have substantial and ongoing 
        opportunities to attain their highest academic potential through 
        schoolwide programs proven effective in school dropout 
        prevention and reentry.

``SEC. <<NOTE: 20 USC 6553.>> 1803. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized to 
be appropriated $125,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 5 succeeding fiscal years, of which--
            ``(1) 10 percent shall be available to carry out subpart 1 
        for each fiscal year; and
            ``(2) 90 percent shall be available to carry out subpart 2 
        for each fiscal year.

               ``Subpart 1--Coordinated National Strategy

``SEC. 1811. <<NOTE: 20 USC 6555.>> NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary is authorized--
            ``(1) to collect systematic data on the effectiveness of the 
        programs assisted under this part in reducing school dropout 
        rates and increasing school reentry and secondary school 
        graduation rates;
            ``(2) to establish a national clearinghouse of information 
        on effective school dropout prevention and reentry programs that 
        shall disseminate to State educational agencies, local 
        educational agencies, and schools--
                    ``(A) the results of research on school dropout 
                prevention and reentry; and
                    ``(B) information on effective programs, best 
                practices, and Federal resources to--
                          ``(i) reduce annual school dropout rates;
                          ``(ii) increase school reentry; and
                          ``(iii) increase secondary school graduation 
                      rates;

[[Page 115 STAT. 1611]]

            ``(3) to provide technical assistance to State educational 
        agencies, local educational agencies, and schools in designing 
        and implementing programs and securing resources to implement 
        effective school dropout prevention and reentry programs;
            ``(4) to establish and consult with an interagency working 
        group that shall--
                    ``(A) address inter- and intra-agency program 
                coordination issues at the Federal level with respect to 
                school dropout prevention and reentry, and assess the 
                targeting of existing Federal services to students who 
                are most at risk of dropping out of school, and the 
                cost-effectiveness of various programs and approaches 
                used to address school dropout prevention and reentry;
                    ``(B) describe the ways in which State educational 
                agencies and local educational agencies can implement 
                effective school dropout prevention and reentry programs 
                using funds from a variety of Federal programs, 
                including the programs under this part; and
                    ``(C) examine Federal programs that may have a 
                positive impact on secondary school graduation or school 
                reentry;
            ``(5) to carry out a national recognition program in 
        accordance with subsection (b) that recognizes schools that have 
        made extraordinary progress in lowering school dropout rates; 
        and
            ``(6) to use funds made available for this subpart to carry 
        out the evaluation required under section 1830(c).

    ``(b) Recognition Program.--
            ``(1) Establishment.--The Secretary shall--
                    ``(A) establish a national recognition program; and
                    ``(B) develop uniform national guidelines for the 
                recognition program that shall be used to recognize 
                eligible schools from nominations submitted by State 
                educational agencies.
            ``(2) Recognition.--The Secretary shall recognize, under the 
        recognition program established under paragraph (1), eligible 
        schools.
            ``(3) Support.--The Secretary may make monetary awards to an 
        eligible school recognized under this subsection in amounts 
        determined appropriate by the Secretary that shall be used for 
        dissemination activities within the eligible school district or 
        nationally.
            ``(4) Definition of eligible school.--In this subsection, 
        the term `eligible school' means a public middle school or 
        secondary school, including a charter school, that has 
        implemented comprehensive reforms that have been effective in 
        lowering school dropout rates for all students--
                    ``(A) in that secondary school or charter school; or
                    ``(B) in the case of a middle school, in the 
                secondary school that the middle school feeds students 
                into.

    ``(c) Capacity Building.--
            ``(1) In general.--The Secretary, through a contract with 
        one or more non-Federal entities, may conduct a capacity 
        building and design initiative in order to increase the types of 
        proven strategies for school dropout prevention and reentry that 
        address the needs of an entire school population rather than a 
        subset of students.
            ``(2) Number and duration.--

[[Page 115 STAT. 1612]]

                    ``(A) Number.--The Secretary may award not more than 
                five contracts under this subsection.
                    ``(B) Duration.--The Secretary may award a contract 
                under this subsection for a period of not more than 5 
                years.

    ``(d) Support for Existing Reform Networks.--
            ``(1) In general.--The Secretary may provide appropriate 
        support to eligible entities to enable the eligible entities to 
        provide training, materials, development, and staff assistance 
        to schools assisted under this part.
            ``(2) Definition of eligible entity.--In this subsection, 
        the term `eligible entity' means an entity that, prior to the 
        date of enactment of the Dropout Prevention Act--
                    ``(A) provided training, technical assistance, and 
                materials related to school dropout prevention or 
                reentry to 100 or more elementary schools or secondary 
                schools; and
                    ``(B) developed and published a specific educational 
                program or design related to school dropout prevention 
                or reentry for use by the schools.

            ``Subpart 2--School Dropout Prevention Initiative

``SEC. <<NOTE: 20 USC 6561.>> 1821. DEFINITIONS.

    ``In this subpart:
            ``(1) Low-income student.--The term `low-income student' 
        means a student who is determined by a local educational agency 
        to be from a low-income family using the measures described in 
        section 1113(c).
            ``(2) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, and the Bureau of Indian Affairs for purposes of 
        serving schools funded by the Bureau.

``SEC. <<NOTE: 20 USC 6561a.>> 1822. PROGRAM AUTHORIZED.

    ``(a) Grants to State Educational Agencies and Local Educational 
Agencies.--
            ``(1) Amount less than $75,000,000.--
                    ``(A) In general.--If the amount appropriated under 
                section 1803 for a fiscal year equals or is less than 
                $75,000,000, then the Secretary shall use such amount to 
                award grants, on a competitive basis, to--
                          ``(i) State educational agencies to support 
                      activities--
                                    ``(I) in schools that--
                                            ``(aa) serve students in 
                                        grades 6 through 12; and
                                            ``(bb) have annual school 
                                        dropout rates that are above the 
                                        State average annual school 
                                        dropout rate; or
                                    ``(II) in the middle schools that 
                                feed students into the schools described 
                                in subclause (I); or
                          ``(ii) local educational agencies that 
                      operate--
                                    ``(I) schools that--
                                            ``(aa) serve students in 
                                        grades 6 through 12; and

[[Page 115 STAT. 1613]]

                                            ``(bb) have annual school 
                                        dropout rates that are above the 
                                        State average annual school 
                                        dropout rate; or
                                    ``(II) middle schools that feed 
                                students into the schools described in 
                                subclause (I).
                    ``(B) Use of grant funds.--Grant funds awarded under 
                this paragraph shall be used to fund effective, 
                sustainable, and coordinated school dropout prevention 
                and reentry programs that may include the activities 
                described in subsection (b)(2), in--
                          ``(i) schools serving students in grades 6 
                      through 12 that have annual school dropout rates 
                      that are above the State average annual school 
                      dropout rate; or
                          ``(ii) the middle schools that feed students 
                      into the schools described in clause (i).
            ``(2) Amount less than $250,000,000 but more than 
        $75,000,000.--If the amount appropriated under section 1803 for 
        a fiscal year is less than $250,000,000 but more than 
        $75,000,000, then the Secretary shall use such amount to award 
        grants, on a competitive basis, to State educational agencies to 
        enable the State educational agencies to award subgrants under 
        subsection (b).
            ``(3) Amount equal to or exceeds $250,000,000.--If the 
        amount appropriated under section 1803 for a fiscal year equals 
        or exceeds $250,000,000, then the Secretary shall use such 
        amount to award a grant to each State educational agency in an 
        amount that bears the same relation to such appropriated amount 
        as the amount the State educational agency received under part A 
        for the preceding fiscal year bears to the amount received by 
        all State educational agencies under such part for the preceding 
        fiscal year, to enable the State educational agency to award 
        subgrants under subsection (b).

    ``(b) Subgrants to Local Educational Agencies.--
            ``(1) In general.--From amounts made available to a State 
        educational agency under paragraph (2) or (3) of subsection (a), 
        the State educational agency shall award subgrants, on a 
        competitive basis, to local educational agencies that operate 
        public schools that serve students in grades 6 through 12 and 
        that have annual school dropout rates that are above the State 
        average annual school dropout rate, to enable those schools, or 
        the middle schools that feed students into those schools, to 
        implement effective, sustainable, and coordinated school dropout 
        prevention and reentry programs that involve activities such 
        as--
                    ``(A) professional development;
                    ``(B) obtaining curricular materials;
                    ``(C) release time for professional staff to obtain 
                professional development;
                    ``(D) planning and research;
                    ``(E) remedial education;
                    ``(F) reduction in pupil-to-teacher ratios;
                    ``(G) efforts to meet State student academic 
                achievement standards;
                    ``(H) counseling and mentoring for at-risk students;
                    ``(I) implementing comprehensive school reform 
                models, such as creating smaller learning communities; 
                and

[[Page 115 STAT. 1614]]

                    ``(J) school reentry activities.
            ``(2) Amount.--Subject to paragraph (3), a subgrant under 
        this subpart shall be awarded--
                    ``(A) in the first year that a local educational 
                agency receives a subgrant payment under this subpart, 
                in an amount that is based on factors such as--
                          ``(i) the size of schools operated by the 
                      local educational agency;
                          ``(ii) costs of the model or set of prevention 
                      and reentry strategies being implemented; and
                          ``(iii) local cost factors such as poverty 
                      rates;
                    ``(B) in the second year, in an amount that is not 
                less than 75 percent of the amount the local educational 
                agency received under this subpart in the first such 
                year;
                    ``(C) in the third year, in an amount that is not 
                less than 50 percent of the amount the local educational 
                agency received under this subpart in the first such 
                year; and
                    ``(D) in each succeeding year, in an amount that is 
                not less than 30 percent of the amount the local 
                educational agency received under this subpart in the 
                first year.
            ``(3) Duration.--A subgrant under this subpart shall be 
        awarded for a period of 3 years, and may be continued for a 
        period of 2 additional years if the State educational agency 
        determines, based on the annual reports described in section 
        1830(a), that significant progress has been made in lowering the 
        annual school dropout rate for secondary schools participating 
        in the program assisted under this subpart.

``SEC. <<NOTE: 20 USC 6561b.>> 1823. APPLICATIONS.

    ``(a) In General.--To receive--
            ``(1) a grant under this subpart, a State educational agency 
        or local educational agency shall submit an application and plan 
        to the Secretary at such time, in such manner, and accompanied 
        by such information as the Secretary may reasonably require; and
            ``(2) a subgrant under this subpart, a local educational 
        agency shall submit an application and plan to the State 
        educational agency at such time, in such manner, and accompanied 
        by such information as the State educational agency may 
        reasonably require.

    ``(b) Contents.--
            ``(1) State educational agency and local educational 
        agency.--Each application and plan submitted under subsection 
        (a) shall--
                    ``(A) include an outline--
                          ``(i) of the State educational agency's or 
                      local educational agency's strategy for reducing 
                      the State educational agency or local educational 
                      agency's annual school dropout rate;
                          ``(ii) for targeting secondary schools, and 
                      the middle schools that feed students into those 
                      secondary schools, that have the highest annual 
                      school dropout rates; and
                          ``(iii) for assessing the effectiveness of the 
                      efforts described in the plan;
                    ``(B) contain an identification of the schools in 
                the State or operated by the local educational agency 
                that

[[Page 115 STAT. 1615]]

                have annual school dropout rates that are greater than 
                the average annual school dropout rate for the State;
                    ``(C) describe the instructional strategies to be 
                implemented, how the strategies will serve all students, 
                and the effectiveness of the strategies;
                    ``(D) describe a budget and timeline for 
                implementing the strategies;
                    ``(E) contain evidence of coordination with existing 
                resources;
                    ``(F) provide an assurance that funds provided under 
                this subpart will supplement, and not supplant, other 
                State and local funds available for school dropout 
                prevention and reentry programs; and
                    ``(G) describe how the activities to be assisted 
                conform with research knowledge about school dropout 
                prevention and reentry.
            ``(2) Local educational agency.--Each application and plan 
        submitted under subsection (a) by a local educational agency 
        shall contain, in addition to the requirements of paragraph 
        (1)--
                    ``(A) an assurance that the local educational agency 
                is committed to providing ongoing operational support 
                for such schools to address the problem of school 
                dropouts for a period of 5 years; and
                    ``(B) an assurance that the local educational agency 
                will support the plan, including--
                          ``(i) provision of release time for teacher 
                      training;
                          ``(ii) efforts to coordinate activities for 
                      secondary schools and the middle schools that feed 
                      students into those secondary schools; and
                          ``(iii) encouraging other schools served by 
                      the local educational agency to participate in the 
                      plan.

``SEC. <<NOTE: 20 USC 6561c.>> 1824. STATE RESERVATION.

    ``A State educational agency that receives a grant under paragraph 
(2) or (3) of section 1822(a) may reserve not more than 5 percent of the 
grant funds for administrative costs and State activities related to 
school dropout prevention and reentry activities, of which not more than 
2 percent of the grant funds may be used for administrative costs.

``SEC. <<NOTE: 20 USC 6561d.>> 1825. STRATEGIES AND CAPACITY BUILDING.

    ``Each local educational agency receiving a grant or subgrant under 
this subpart and each State educational agency receiving a grant under 
this subpart shall implement scientifically based, sustainable, and 
widely replicated strategies for school dropout prevention and reentry. 
The strategies may include--
            ``(1) specific strategies for targeted purposes, such as--
                    ``(A) effective early intervention programs designed 
                to identify at-risk students;
                    ``(B) effective programs serving at-risk students, 
                including racial and ethnic minorities and pregnant and 
                parenting teenagers, designed to prevent such students 
                from dropping out of school; and
                    ``(C) effective programs to identify and encourage 
                youth who have already dropped out of school to reenter 
                school and complete their secondary education; and

[[Page 115 STAT. 1616]]

            ``(2) approaches such as breaking larger schools down into 
        smaller learning communities and other comprehensive reform 
        approaches, creating alternative school programs, and developing 
        clear linkages to career skills and employment.

``SEC. <<NOTE: 20 USC 6561e.>> 1826. SELECTION OF LOCAL EDUCATIONAL 
            AGENCIES FOR SUBGRANTS.

    ``(a) State Educational Agency Review and Award.--The State 
educational agency shall review applications submitted under section 
1823(a)(2) and award subgrants to local educational agencies with the 
assistance and advice of a panel of experts on school dropout prevention 
and reentry.
    ``(b) Eligibility.--A local educational agency is eligible to 
receive a subgrant under this subpart if the local educational agency 
operates a public school (including a public alternative school)--
            ``(1) that is eligible to receive assistance under part A; 
        and
            ``(2)(A) that serves students 50 percent or more of whom are 
        low-income students; or
            ``(B) in which a majority of the students come from feeder 
        schools that serve students 50 percent or more of whom are low-
        income students.

``SEC. <<NOTE: 20 USC 6561f.>> 1827. COMMUNITY BASED ORGANIZATIONS.

    ``A local educational agency that receives a grant or subgrant under 
this subpart and a State educational agency that receives a grant under 
this subpart may use the funds to secure necessary services from a 
community-based organization or other government agency if the funds are 
used to provide school dropout prevention and reentry activities related 
to schoolwide efforts.

``SEC. <<NOTE: 20 USC 6561g.>> 1828. TECHNICAL ASSISTANCE.

    ``Notwithstanding any other provision of law, each local educational 
agency that receives funds under this subpart shall use the funds to 
provide technical assistance to secondary schools served by the agency 
that have not made progress toward lowering annual school dropout rates 
after receiving assistance under this subpart for 2 fiscal years.

``SEC. <<NOTE: 20 USC 6561h.>> 1829. SCHOOL DROPOUT RATE CALCULATION.

    ``For purposes of calculating an annual school dropout rate under 
this subpart, a school shall use the annual event school dropout rate 
for students leaving a school in a single year determined in accordance 
with the National Center for Education Statistics' Common Core of Data.

``SEC. <<NOTE: 20 USC 6561i.>> 1830. REPORTING AND ACCOUNTABILITY.

    ``(a) Local Educational Agency Reports.--
            ``(1) In general.--To receive funds under this subpart for a 
        fiscal year after the first fiscal year that a local educational 
        agency receives funds under this subpart, the local educational 
        agency shall provide, on an annual basis, a report regarding the 
        status of the implementation of activities funded under this 
        subpart, and the dropout data for students at schools assisted 
        under this subpart, disaggregated by race and ethnicity, to 
        the--
                    ``(A) Secretary, if the local educational agency 
                receives a grant under section 1822(a)(1); or

[[Page 115 STAT. 1617]]

                    ``(B) State educational agency, if the local 
                educational agency receives a subgrant under paragraph 
                (2) or (3) of section 1822(a).
            ``(2) Dropout data.--The dropout data under paragraph (1) 
        shall include annual school dropout rates for each fiscal year, 
        starting with the 2 fiscal years before the local educational 
        agency received funds under this subpart.

    ``(b) State Report on Program Activities.--Each State educational 
agency receiving funds under this subpart shall provide to the 
Secretary, at such time and in such format as the Secretary may require, 
information on the status of the implementation of activities funded 
under this subpart and outcome data for students in schools assisted 
under this subpart.
    ``(c) Accountability.--The Secretary shall evaluate the effect of 
the activities assisted under this subpart on school dropout prevention 
compared, if feasible, to a control group using control procedures. The 
Secretary may use funds appropriated for subpart 1 to carry out this 
evaluation.

                      ``PART I--GENERAL PROVISIONS

``SEC. <<NOTE: 20 USC 6571.>> 1901. FEDERAL REGULATIONS.

    ``(a) In General.--The Secretary may issue such regulations as are 
necessary to reasonably ensure that there is compliance with this title.
    ``(b) Negotiated Rulemaking Process.--
            ``(1) <<NOTE: Federal Register, publication.>> In general.--
        Before publishing in the Federal Register proposed regulations 
        to carry out this title, the Secretary shall obtain the advice 
        and recommendations of representatives of Federal, State, and 
        local administrators, parents, teachers, paraprofessionals, and 
        members of local school boards and other organizations involved 
        with the implementation and operation of programs under this 
        title.
            ``(2) Meetings and electronic exchange.--Such advice and 
        recommendations may be obtained through such mechanisms as 
        regional meetings and electronic exchanges of information.
            ``(3) Proposed regulations.--After obtaining such advice and 
        recommendations, and before publishing proposed regulations, the 
        Secretary shall--
                    ``(A) establish a negotiated rulemaking process on, 
                at a minimum, standards and assessments;
                    ``(B) select individuals to participate in such 
                process from among individuals or groups that provided 
                advice and recommendations, including representation 
                from all geographic regions of the United States, in 
                such numbers as will provide an equitable balance 
                between representatives of parents and students and 
                representatives of educators and education officials; 
                and
                    ``(C) <<NOTE: Deadline.>> prepare a draft of 
                proposed policy options that shall be provided to the 
                individuals selected by the Secretary under subparagraph 
                (B) not less than 15 days before the first meeting under 
                such process.
            ``(4) Process.--Such process--
                    ``(A) <<NOTE: Deadline.>> shall be conducted in a 
                timely manner to ensure that final regulations are 
                issued by the Secretary not later

[[Page 115 STAT. 1618]]

                than 1 year after the date of enactment of the No Child 
                Left Behind Act of 2001; and
                    ``(B) shall not be subject to the Federal Advisory 
                Committee Act, but shall otherwise follow the provisions 
                of the Negotiated Rulemaking Act of 1990 (5 U.S.C. 561 
                et seq.).
            ``(5) Emergency situation.--In an emergency situation in 
        which regulations to carry out this title must be issued within 
        a very limited time to assist State educational agencies and 
        local educational agencies with the operation of a program under 
        this title, the Secretary may issue proposed regulations without 
        following such process but shall, immediately thereafter and 
        before issuing final regulations, conduct regional meetings to 
        review such proposed regulations.

    ``(c) Limitation.--Regulations to carry out this part may not 
require local programs to follow a particular instructional model, such 
as the provision of services outside the regular classroom or school 
program.

``SEC. <<NOTE: 20 USC 6572.>> 1902. AGREEMENTS AND RECORDS.

    ``(a) Agreements.--All published proposed regulations shall conform 
to agreements that result from negotiated rulemaking described in 
section 1901 unless the Secretary reopens the negotiated rulemaking 
process or provides a written explanation to the participants involved 
in the process explaining why the Secretary decided to depart from, and 
not adhere to, such agreements.
    ``(b) Records.--The Secretary shall ensure that an accurate and 
reliable record of agreements reached during the negotiations process is 
maintained.

``SEC. <<NOTE: 20 USC 6573.>> 1903. STATE ADMINISTRATION.

    ``(a) Rulemaking.--
            ``(1) In general.--Each State that receives funds under this 
        title shall--
                    ``(A) ensure that any State rules, regulations, and 
                policies relating to this title conform to the purposes 
                of this title and provide any such proposed rules, 
                regulations, and policies to the committee of 
                practitioners created under subsection (b) for review 
                and comment;
                    ``(B) minimize such rules, regulations, and policies 
                to which the State's local educational agencies and 
                schools are subject;
                    ``(C) eliminate or modify State and local fiscal 
                accounting requirements in order to facilitate the 
                ability of schools to consolidate funds under schoolwide 
                programs; and
                    ``(D) identify any such rule, regulation, or policy 
                as a State-imposed requirement.
            ``(2) Support and facilitation.--State rules, regulations, 
        and policies under this title shall support and facilitate local 
        educational agency and school-level systemic reform designed to 
        enable all children to meet the challenging State student 
        academic achievement standards.

    ``(b) Committee of Practitioners.--
            ``(1) In general.--Each State educational agency that 
        receives funds under this title shall create a State committee 
        of practitioners to advise the State in carrying out its 
        responsibilities under this title.

[[Page 115 STAT. 1619]]

            ``(2) Membership.--Each such committee shall include--
                    ``(A) as a majority of its members, representatives 
                from local educational agencies;
                    ``(B) administrators, including the administrators 
                of programs described in other parts of this title;
                    ``(C) teachers, including vocational educators;
                    ``(D) parents;
                    ``(E) members of local school boards;
                    ``(F) representatives of private school children; 
                and
                    ``(G) pupil services personnel.
            ``(3) Duties.--The duties of such committee shall include a 
        review, before publication, of any proposed or final State rule 
        or regulation pursuant to this title. In an emergency situation 
        where such rule or regulation must be issued within a very 
        limited time to assist local educational agencies with the 
        operation of the program under this title, the State educational 
        agency may issue a regulation without prior consultation, but 
        shall immediately thereafter convene the State committee of 
        practitioners to review the emergency regulation before issuance 
        in final form.

``SEC. <<NOTE: 20 USC 6574.>> 1904. LOCAL EDUCATIONAL AGENCY SPENDING 
            AUDITS.

    ``(a) Audits.--The Comptroller General of the United States shall 
conduct audits of not less than 6 local educational agencies that 
receive funds under part A in each fiscal year to determine more clearly 
and specifically how local educational agencies are expending such 
funds. Such audits--
            ``(1) shall be conducted in 6 local educational agencies 
        that represent the size, ethnic, economic, and geographic 
        diversity of local educational agencies; and
            ``(2) shall examine the extent to which funds have been 
        expended for academic instruction in the core curriculum and 
        activities unrelated to academic instruction in the core 
        curriculum, such as the payment of janitorial, utility, and 
        other maintenance services, the purchase and lease of vehicles, 
        and the payment for travel and attendance costs at conferences.

    ``(b) <<NOTE: Deadline.>> Report.--Not later than 3 months after the 
completion of the audits under subsection (a) each year, the Comptroller 
General of the United States shall submit a report on each audit to the 
Committee on Education and the Workforce of the House of Representatives 
and the Committee on Health, Education, Labor and Pensions of the 
Senate.

``SEC. <<NOTE: 20 USC 6575.>> 1905. PROHIBITION AGAINST FEDERAL 
            MANDATES, DIRECTION, OR CONTROL.

    ``Nothing in this title shall be construed to authorize an officer 
or employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's specific instructional 
content, academic achievement standards and assessments, curriculum, or 
program of instruction.

``SEC. <<NOTE: 20 USC 6576.>> 1906. RULE OF CONSTRUCTION ON EQUALIZED 
            SPENDING.

    ``Nothing in this title shall be construed to mandate equalized 
spending per pupil for a State, local educational agency, or school.

``SEC. <<NOTE: 20 USC 6577.>> 1907. STATE REPORT ON DROPOUT DATA.

    ``Not <<NOTE: Deadline.>> later than 1 year after a State 
educational agency receives funds under this title, the agency shall 
report to the Secretary

[[Page 115 STAT. 1620]]

and statewide, all school district data regarding annual school dropout 
rates in the State disaggregated by race and ethnicity according to 
procedures that conform with the National Center for Education 
Statistics' Common Core of Data.

``SEC. <<NOTE: 20 USC 6578.>> 1908. REGULATIONS FOR SECTIONS 1111 AND 
            1116.

    ``The <<NOTE: Deadline.>> Secretary shall issue regulations for 
sections 1111 and 1116 not later than 6 months after the date of 
enactment of the No Child Left Behind Act of 2001.''.

TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
                               PRINCIPALS

SEC. 201. TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND.

    Title II (20 U.S.C. 6601 et seq.) is amended to read as follows:

 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS 
                             AND PRINCIPALS

      ``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND

``SEC. <<NOTE: 20 USC 6601.>> 2101. PURPOSE.

    ``The purpose of this part is to provide grants to State educational 
agencies, local educational agencies, State agencies for higher 
education, and eligible partnerships in order to--
            ``(1) increase student academic achievement through 
        strategies such as improving teacher and principal quality and 
        increasing the number of highly qualified teachers in the 
        classroom and highly qualified principals and assistant 
        principals in schools; and
            ``(2) hold local educational agencies and schools 
        accountable for improvements in student academic achievement.

``SEC. <<NOTE: 20 USC 6602.>> 2102. DEFINITIONS.

    ``In this part:
            ``(1) Arts and sciences.--The term `arts and sciences' 
        means--
                    ``(A) when referring to an organizational unit of an 
                institution of higher education, any academic unit that 
                offers one or more academic majors in disciplines or 
                content areas corresponding to the academic subjects in 
                which teachers teach; and
                    ``(B) when referring to a specific academic subject, 
                the disciplines or content areas in which an academic 
                major is offered by an organizational unit described in 
                subparagraph (A).
            ``(2) Charter school.--The term `charter school' has the 
        meaning given the term in section 5210.

[[Page 115 STAT. 1621]]

            ``(3) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational 
        agency--
                    ``(A)(i) that serves not fewer than 10,000 children 
                from families with incomes below the poverty line; or
                    ``(ii) for which not less than 20 percent of the 
                children served by the agency are from families with 
                incomes below the poverty line; and
                    ``(B)(i) for which there is a high percentage of 
                teachers not teaching in the academic subjects or grade 
                levels that the teachers were trained to teach; or
                    ``(ii) for which there is a high percentage of 
                teachers with emergency, provisional, or temporary 
                certification or licensing.
            ``(4) Highly qualified paraprofessional.--The term `highly 
        qualified paraprofessional' means a paraprofessional who has not 
        less than 2 years of--
                    ``(A) experience in a classroom; and
                    ``(B) postsecondary education or demonstrated 
                competence in a field or academic subject for which 
                there is a significant shortage of qualified teachers.
            ``(5) Out-of-field teacher.--The term `out-of-field teacher' 
        means a teacher who is teaching an academic subject or a grade 
        level for which the teacher is not highly qualified.
            ``(6) Principal.--The term `principal' includes an assistant 
        principal.

``SEC. <<NOTE: 20 USC 6603.>> 2103. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) Grants to States, Local Educational Agencies, and Eligible 
Partnerships.--There are authorized to be appropriated to carry out this 
part (other than subpart 5) $3,175,000,000 for fiscal year 2002 and such 
sums as may be necessary for each of the 5 succeeding fiscal years.
    ``(b) National Programs.--There are authorized to be appropriated to 
carry out subpart 5 such sums as may be necessary for fiscal year 2002 
and each of the 5 succeeding fiscal years.

                      ``Subpart 1--Grants to States

``SEC. <<NOTE: 20 USC 6611.>> 2111. ALLOTMENTS TO STATES.

    ``(a) In General.--The Secretary shall make grants to States with 
applications approved under section 2112 to pay for the Federal share of 
the cost of carrying out the activities specified in section 2113. Each 
grant shall consist of the allotment determined for a State under 
subsection (b).
    ``(b) Determination of Allotments.--
            ``(1) Reservation of funds.--
                    ``(A) In general.--From the total amount 
                appropriated under section 2103(a) for a fiscal year, 
                the Secretary shall reserve--
                          ``(i) one-half of 1 percent for allotments for 
                      the United States Virgin Islands, Guam, American 
                      Samoa, and the Commonwealth of the Northern 
                      Mariana Islands, to be distributed among those 
                      outlying areas on the basis of their relative 
                      need, as determined by the Secretary, in 
                      accordance with the purpose of this part; and

[[Page 115 STAT. 1622]]

                          ``(ii) one-half of 1 percent for the Secretary 
                      of the Interior for programs under this part in 
                      schools operated or funded by the Bureau of Indian 
                      Affairs.
            ``(2) State allotments.--
                    ``(A) Hold harmless.--
                          ``(i) In general.--Subject to subparagraph 
                      (B), from the funds appropriated under section 
                      2103(a) for any fiscal year and not reserved under 
                      paragraph (1), the Secretary shall allot to each 
                      of the 50 States, the District of Columbia, and 
                      the Commonwealth of Puerto Rico an amount equal to 
                      the total amount that such State received for 
                      fiscal year 2001 under--
                                    ``(I) section 2202(b) of this Act 
                                (as in effect on the day before the date 
                                of enactment of the No Child Left Behind 
                                Act of 2001); and
                                    ``(II) section 306 of the Department 
                                of Education Appropriations Act, 2001 
                                (as enacted into law by section 1(a)(1) 
                                of Public Law 106-554).
                          ``(ii) Ratable reduction.--If the funds 
                      described in clause (i) are insufficient to pay 
                      the full amounts that all States are eligible to 
                      receive under clause (i) for any fiscal year, the 
                      Secretary shall ratably reduce those amounts for 
                      the fiscal year.
                    ``(B) Allotment of additional funds.--
                          ``(i) In general.--Subject to clause (ii), for 
                      any fiscal year for which the funds appropriated 
                      under section 2103(a) and not reserved under 
                      paragraph (1) exceed the total amount required to 
                      make allotments under subparagraph (A), the 
                      Secretary shall allot to each of the States 
                      described in subparagraph (A) the sum of--
                                    ``(I) an amount that bears the same 
                                relationship to 35 percent of the excess 
                                amount as the number of individuals age 
                                5 through 17 in the State, as determined 
                                by the Secretary on the basis of the 
                                most recent satisfactory data, bears to 
                                the number of those individuals in all 
                                such States, as so determined; and
                                    ``(II) an amount that bears the same 
                                relationship to 65 percent of the excess 
                                amount as the number of individuals age 
                                5 through 17 from families with incomes 
                                below the poverty line, in the State, as 
                                determined by the Secretary on the basis 
                                of the most recent satisfactory data, 
                                bears to the number of those individuals 
                                in all such States, as so determined.
                          ``(ii) Exception.--No State receiving an 
                      allotment under clause (i) may receive less than 
                      one-half of 1 percent of the total excess amount 
                      allotted under such clause for a fiscal year.
            ``(3) Reallotment.--If any State does not apply for an 
        allotment under this subsection for any fiscal year, the 
        Secretary shall reallot the amount of the allotment to the 
        remaining States in accordance with this subsection.

[[Page 115 STAT. 1623]]

``SEC. <<NOTE: 20 USC 6612.>> 2112. STATE APPLICATIONS.

    ``(a) In General.--For a State to be eligible to receive a grant 
under this part, the State educational agency shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(b) Contents.--Each application submitted under this section shall 
include the following:
            ``(1) A description of how the activities to be carried out 
        by the State educational agency under this subpart will be based 
        on a review of scientifically based research and an explanation 
        of why the activities are expected to improve student academic 
        achievement.
            ``(2) A description of how the State educational agency will 
        ensure that a local educational agency receiving a subgrant to 
        carry out subpart 2 will comply with the requirements of such 
        subpart.
            ``(3) A description of how the State educational agency will 
        ensure that activities assisted under this subpart are aligned 
        with challenging State academic content and student academic 
        achievement standards, State assessments, and State and local 
        curricula.
            ``(4) A description of how the State educational agency will 
        use funds under this part to improve the quality of the State's 
        teachers and principals.
            ``(5)(A) A description of how the State educational agency 
        will coordinate professional development activities authorized 
        under this part with professional development activities 
        provided under other Federal, State, and local programs.
            ``(B) A description of the comprehensive strategy that the 
        State educational agency will use, as part of such coordination 
        effort, to ensure that teachers are trained in the use of 
        technology so that technology and applications of technology are 
        effectively used in the classroom to improve teaching and 
        learning in all curricula and academic subjects, as appropriate.
            ``(6) A description of how the State educational agency will 
        encourage the development of proven, innovative strategies to 
        deliver intensive professional development programs that are 
        both cost-effective and easily accessible, such as strategies 
        that involve delivery through the use of technology, peer 
        networks, and distance learning.
            ``(7)(A) A description of how the State educational agency 
        will ensure compliance with the requirements for professional 
        development activities described in section 9101 and how the 
        activities to be carried out under the grant will be developed 
        collaboratively and based on the input of teachers, principals, 
        parents, administrators, paraprofessionals, and other school 
        personnel.
            ``(B) In the case of a State in which the State educational 
        agency is not the entity responsible for teacher professional 
        standards, certification, and licensing, an assurance that the 
        State activities carried out under this subpart are carried out 
        in conjunction with the entity responsible for such standards, 
        certification, and licensing under State law.
            ``(8) A description of how the State educational agency will 
        ensure that the professional development (including teacher

[[Page 115 STAT. 1624]]

        mentoring) needs of teachers will be met using funds under this 
        subpart and subpart 2.
            ``(9) A description of the State educational agency's annual 
        measurable objectives under section 1119(a)(2).
            ``(10) A description of how the State educational agency 
        will use funds under this part to meet the teacher and 
        paraprofessional requirements of section 1119 and how the State 
        educational agency will hold local educational agencies 
        accountable for meeting the annual measurable objectives 
        described in section 1119(a)(2).
            ``(11) In the case of a State that has a charter school law 
        that exempts teachers from State certification and licensing 
        requirements, the specific portion of the State law that 
        provides for the exemption.
            ``(12) An assurance that the State educational agency will 
        comply with section 9501 (regarding participation by private 
        school children and teachers).

    ``(c) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed to be 
approved by the Secretary unless the Secretary makes a written 
determination, prior to the expiration of the 120-day period beginning 
on the date on which the Secretary received the application, that the 
application is not in compliance with this subpart.
    ``(d) Disapproval.--The Secretary shall not finally disapprove the 
application, except after giving the State educational agency notice and 
an opportunity for a hearing.
    ``(e) Notification.--If the Secretary finds that the application is 
not in compliance, in whole or in part, with this subpart, the Secretary 
shall--
            ``(1) give the State educational agency notice and an 
        opportunity for a hearing; and
            ``(2) notify the State educational agency of the finding of 
        noncompliance and, in such notification, shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only as to the 
                noncompliant provisions, needed to make the application 
                compliant.

    ``(f) Response.--If the State educational agency responds to the 
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the 
notification, and resubmits the application with the requested 
information described in subsection (e)(2)(B), the Secretary shall 
approve or disapprove such application prior to the later of--
            ``(1) the expiration of the 45-day period beginning on the 
        date on which the application is resubmitted; or
            ``(2) the expiration of the 120-day period described in 
        subsection (c).

    ``(g) Failure To Respond.--If the State educational agency does not 
respond to the Secretary's notification described in subsection (e)(2) 
during the 45-day period beginning on the date on which the agency 
received the notification, such application shall be deemed to be 
disapproved.

[[Page 115 STAT. 1625]]

``SEC. 2113. STATE USE OF FUNDS. <<NOTE: 20 USC 6613.>> 

    ``(a) In General.--A State that receives a grant under section 2111 
shall--
            ``(1) reserve 95 percent of the funds made available through 
        the grant to make subgrants to local educational agencies as 
        described in subpart 2;
            ``(2) reserve 2.5 percent (or, for a fiscal year described 
        in subsection (b), the percentage determined under subsection 
        (b)) of the funds to make subgrants to local partnerships as 
        described in subpart 3; and
            ``(3) use the remainder of the funds for State activities 
        described in subsection (c).

    ``(b) Special Rule.--For any fiscal year for which the total amount 
that would be reserved by all States under subsection (a)(2), if the 
States applied a 2.5 percentage rate, exceeds $125,000,000, the 
Secretary shall determine an alternative percentage that the States 
shall apply for that fiscal year under subsection (a)(2) so that the 
total amount reserved by all States under subsection (a)(2) equals 
$125,000,000.
    ``(c) State Activities.--The State educational agency for a State 
that receives a grant under section 2111 shall use the funds described 
in subsection (a)(3) to carry out one or more of the following 
activities, which may be carried out through a grant or contract with a 
for-profit or nonprofit entity:
            ``(1) Reforming teacher and principal certification 
        (including recertification) or licensing requirements to ensure 
        that--
                    ``(A)(i) teachers have the necessary subject matter 
                knowledge and teaching skills in the academic subjects 
                that the teachers teach; and
                    ``(ii) principals have the instructional leadership 
                skills to help teachers teach and students learn;
                    ``(B) teacher certification (including 
                recertification) or licensing requirements are aligned 
                with challenging State academic content standards; and
                    ``(C) teachers have the subject matter knowledge and 
                teaching skills, including technology literacy, and 
                principals have the instructional leadership skills, 
                necessary to help students meet challenging State 
                student academic achievement standards.
            ``(2) Carrying out programs that provide support to teachers 
        or principals, including support for teachers and principals new 
        to their profession, such as programs that--
                    ``(A) provide teacher mentoring, team teaching, 
                reduced class schedules, and intensive professional 
                development; and
                    ``(B) use standards or assessments for guiding 
                beginning teachers that are consistent with challenging 
                State student academic achievement standards and with 
                the requirements for professional development activities 
                described in section 9101.
            ``(3) Carrying out programs that establish, expand, or 
        improve alternative routes for State certification of teachers 
        and principals, especially in the areas of mathematics and 
        science, for highly qualified individuals with a baccalaureate 
        or master's degree, including mid-career professionals from 
        other occupations, paraprofessionals, former military personnel,

[[Page 115 STAT. 1626]]

        and recent college or university graduates with records of 
        academic distinction who demonstrate the potential to become 
        highly effective teachers or principals.
            ``(4) Developing and implementing mechanisms to assist local 
        educational agencies and schools in effectively recruiting and 
        retaining highly qualified teachers, including specialists in 
        core academic subjects, principals, and pupil services 
        personnel, except that funds made available under this paragraph 
        may be used for pupil services personnel only--
                    ``(A) if the State educational agency is making 
                progress toward meeting the annual measurable objectives 
                described in section 1119(a)(2); and
                    ``(B) in a manner consistent with mechanisms to 
                assist local educational agencies and schools in 
                effectively recruiting and retaining highly qualified 
                teachers and principals.
            ``(5) Reforming tenure systems, implementing teacher testing 
        for subject matter knowledge, and implementing teacher testing 
        for State certification or licensing, consistent with title II 
        of the Higher Education Act of 1965.
            ``(6) Providing professional development for teachers and 
        principals and, in cases in which a State educational agency 
        determines support to be appropriate, supporting the 
        participation of pupil services personnel in the same type of 
        professional development activities as are made available to 
        teachers and principals.
            ``(7) Developing systems to measure the effectiveness of 
        specific professional development programs and strategies to 
        document gains in student academic achievement or increases in 
        teacher mastery of the academic subjects the teachers teach.
            ``(8) Fulfilling the State educational agency's 
        responsibilities concerning proper and efficient administration 
        of the programs carried out under this part, including provision 
        of technical assistance to local educational agencies.
            ``(9) Funding projects to promote reciprocity of teacher and 
        principal certification or licensing between or among States, 
        except that no reciprocity agreement developed under this 
        paragraph or developed using funds provided under this part may 
        lead to the weakening of any State teaching certification or 
        licensing requirement.
            ``(10) Developing or assisting local educational agencies in 
        the development and use of proven, innovative strategies to 
        deliver intensive professional development programs that are 
        both cost-effective and easily accessible, such as strategies 
        that involve delivery through the use of technology, peer 
        networks, and distance learning.
            ``(11) Encouraging and supporting the training of teachers 
        and administrators to effectively integrate technology into 
        curricula and instruction, including training to improve the 
        ability to collect, manage, and analyze data to improve 
        teaching, decisionmaking, school improvement efforts, and 
        accountability.
            ``(12) Developing, or assisting local educational agencies 
        in developing, merit-based performance systems, and strategies 
        that provide differential and bonus pay for teachers in high-
        need academic subjects such as reading, mathematics, and science 
        and teachers in high-poverty schools and districts.

[[Page 115 STAT. 1627]]

            ``(13) Providing assistance to local educational agencies 
        for the development and implementation of professional 
        development programs for principals that enable the principals 
        to be effective school leaders and prepare all students to meet 
        challenging State academic content and student academic 
        achievement standards, and the development and support of school 
        leadership academies to help exceptionally talented aspiring or 
        current principals and superintendents become outstanding 
        managers and educational leaders.
            ``(14) Developing, or assisting local educational agencies 
        in developing, teacher advancement initiatives that promote 
        professional growth and emphasize multiple career paths (such as 
        paths to becoming a career teacher, mentor teacher, or exemplary 
        teacher) and pay differentiation.
            ``(15) Providing assistance to teachers to enable them to 
        meet certification, licensing, or other requirements needed to 
        become highly qualified by the end of the fourth year for which 
        the State receives funds under this part (as amended by the No 
        Child Left Behind Act of 2001).
            ``(16) Supporting activities that ensure that teachers are 
        able to use challenging State academic content standards and 
        student academic achievement standards, and State assessments, 
        to improve instructional practices and improve student academic 
        achievement.
            ``(17) Funding projects and carrying out programs to 
        encourage men to become elementary school teachers.
            ``(18) Establishing and operating a center that--
                    ``(A) serves as a statewide clearinghouse for the 
                recruitment and placement of kindergarten, elementary 
                school, and secondary school teachers; and
                    ``(B) establishes and carries out programs to 
                improve teacher recruitment and retention within the 
                State.

    ``(d) Administrative Costs.--A State educational agency or State 
agency for higher education receiving a grant under this part may use 
not more than 1 percent of the grant funds for planning and 
administration related to carrying out activities under subsection (c) 
and subpart 3.
    ``(e) Coordination.--A State that receives a grant to carry out this 
subpart and a grant under section 202 of the Higher Education Act of 
1965 shall coordinate the activities carried out under this subpart and 
the activities carried out under that section.
    ``(f) Supplement, Not Supplant.--Funds received under this subpart 
shall be used to supplement, and not supplant, non-Federal funds that 
would otherwise be used for activities authorized under this subpart.

          ``Subpart 2--Subgrants to Local Educational Agencies

``SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES. <<NOTE: 20 USC 
            6621.>> 

    ``(a) Subgrants to Local Educational Agencies.--
            ``(1) In general.--The Secretary may make a grant to a State 
        under subpart 1 only if the State educational agency agrees to 
        distribute the funds described in this subsection as subgrants 
        to local educational agencies under this subpart.
            ``(2) Hold harmless.--

[[Page 115 STAT. 1628]]

                    ``(A) In general.--From the funds reserved by a 
                State under section 2113(a)(1), the State educational 
                agency shall allocate to each local educational agency 
                in the State an amount equal to the total amount that 
                such agency received for fiscal year 2001 under--
                          ``(i) section 2203(1)(B) of this Act (as in 
                      effect on the day before the date of enactment of 
                      the No Child Left Behind Act of 2001); and
                          ``(ii) section 306 of the Department of 
                      Education Appropriations Act, 2001 (as enacted 
                      into law by section 1(a)(1) of Public Law 106-
                      554).
                    ``(B) Nonparticipating agencies.--In the case of a 
                local educational agency that did not receive any funds 
                for fiscal year 2001 under one or both of the provisions 
                referred to in clauses (i) and (ii) of subparagraph (A), 
                the amount allocated to the agency under such 
                subparagraph shall be the total amount that the agency 
                would have received for fiscal year 2001 if the agency 
                had elected to participate in all of the programs for 
                which the agency was eligible under each of the 
                provisions referred to in those clauses.
                    ``(C) Ratable reduction.--If the funds described in 
                subparagraph (A) are insufficient to pay the full 
                amounts that all local educational agencies in the State 
                are eligible to receive under subparagraph (A) for any 
                fiscal year, the State educational agency shall ratably 
                reduce such amounts for the fiscal year.
            ``(3) Allocation of additional funds.--For any fiscal year 
        for which the funds reserved by a State under section 2113(a)(1) 
        exceed the total amount required to make allocations under 
        paragraph (2), the State educational agency shall allocate to 
        each of the eligible local educational agencies in the State the 
        sum of--
                    ``(A) an amount that bears the same relationship to 
                20 percent of the excess amount as the number of 
                individuals age 5 through 17 in the geographic area 
                served by the agency, as determined by the Secretary on 
                the basis of the most recent satisfactory data, bears to 
                the number of those individuals in the geographic areas 
                served by all the local educational agencies in the 
                State, as so determined; and
                    ``(B) an amount that bears the same relationship to 
                80 percent of the excess amount as the number of 
                individuals age 5 through 17 from families with incomes 
                below the poverty line in the geographic area served by 
                the agency, as determined by the Secretary on the basis 
                of the most recent satisfactory data, bears to the 
                number of those individuals in the geographic areas 
                served by all the local educational agencies in the 
                State, as so determined.

``SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT. <<NOTE: 20 USC 
            6622.>> 

    ``(a) In General.--To be eligible to receive a subgrant under this 
subpart, a local educational agency shall submit an application to the 
State educational agency at such time, in such manner, and containing 
such information as the State educational agency may reasonably require.

[[Page 115 STAT. 1629]]

    ``(b) Contents.--Each application submitted under this section shall 
be based on the needs assessment required in subsection (c) and shall 
include the following:
            ``(1)(A) A description of the activities to be carried out 
        by the local educational agency under this subpart and how these 
        activities will be aligned with--
                    ``(i) challenging State academic content standards 
                and student academic achievement standards, and State 
                assessments; and
                    ``(ii) the curricula and programs tied to the 
                standards described in clause (i).
            ``(B) A description of how the activities will be based on a 
        review of scientifically based research and an explanation of 
        why the activities are expected to improve student academic 
        achievement.
            ``(2) A description of how the activities will have a 
        substantial, measurable, and positive impact on student academic 
        achievement and how the activities will be used as part of a 
        broader strategy to eliminate the achievement gap that separates 
        low-income and minority students from other students.
            ``(3) An assurance that the local educational agency will 
        target funds to schools within the jurisdiction of the local 
        educational agency that--
                    ``(A) have the lowest proportion of highly qualified 
                teachers;
                    ``(B) have the largest average class size; or
                    ``(C) are identified for school improvement under 
                section 1116(b).
            ``(4) A description of how the local educational agency will 
        coordinate professional development activities authorized under 
        this subpart with professional development activities provided 
        through other Federal, State, and local programs.
            ``(5) A description of the professional development 
        activities that will be made available to teachers and 
        principals under this subpart and how the local educational 
        agency will ensure that the professional development (which may 
        include teacher mentoring) needs of teachers and principals will 
        be met using funds under this subpart.
            ``(6) A description of how the local educational agency will 
        integrate funds under this subpart with funds received under 
        part D that are used for professional development to train 
        teachers to integrate technology into curricula and instruction 
        to improve teaching, learning, and technology literacy.
            ``(7) A description of how the local educational agency, 
        teachers, paraprofessionals, principals, other relevant school 
        personnel, and parents have collaborated in the planning of 
        activities to be carried out under this subpart and in the 
        preparation of the application.
            ``(8) A description of the results of the needs assessment 
        described in subsection (c).
            ``(9) A description of how the local educational agency will 
        provide training to enable teachers to--
                    ``(A) teach and address the needs of students with 
                different learning styles, particularly students with 
                disabilities, students with special learning needs 
                (including students who are gifted and talented), and 
                students with limited English proficiency;

[[Page 115 STAT. 1630]]

                    ``(B) improve student behavior in the classroom and 
                identify early and appropriate interventions to help 
                students described in subparagraph (A) learn;
                    ``(C) involve parents in their child's education; 
                and
                    ``(D) understand and use data and assessments to 
                improve classroom practice and student learning.
            ``(10) A description of how the local educational agency 
        will use funds under this subpart to meet the requirements of 
        section 1119.
            ``(11) An assurance that the local educational agency will 
        comply with section 9501 (regarding participation by private 
        school children and teachers).

    ``(c) Needs Assessment.--
            ``(1) In general.--To be eligible to receive a subgrant 
        under this subpart, a local educational agency shall conduct an 
        assessment of local needs for professional development and 
        hiring, as identified by the local educational agency and school 
        staff.
            ``(2) Requirements.--Such needs assessment shall be 
        conducted with the involvement of teachers, including teachers 
        participating in programs under part A of title I, and shall 
        take into account the activities that need to be conducted in 
        order to give teachers the means, including subject matter 
        knowledge and teaching skills, and to give principals the 
        instructional leadership skills to help teachers, to provide 
        students with the opportunity to meet challenging State and 
        local student academic achievement standards.

``SEC. 2123. LOCAL USE OF FUNDS. <<NOTE: 20 USC 6623.>> 

    ``(a) In General.--A local educational agency that receives a 
subgrant under section 2121 shall use the funds made available through 
the subgrant to carry out one or more of the following activities, 
including carrying out the activities through a grant or contract with a 
for-profit or nonprofit entity:
            ``(1) Developing and implementing mechanisms to assist 
        schools in effectively recruiting and retaining highly qualified 
        teachers, including specialists in core academic subjects, 
        principals, and pupil services personnel, except that funds made 
        available under this paragraph may be used for pupil services 
        personnel only--
                    ``(A) if the local educational agency is making 
                progress toward meeting the annual measurable objectives 
                described in section 1119(a)(2); and
                    ``(B) in a manner consistent with mechanisms to 
                assist schools in effectively recruiting and retaining 
                highly qualified teachers and principals.
            ``(2) Developing and implementing initiatives to assist in 
        recruiting highly qualified teachers (particularly initiatives 
        that have proven effective in retaining highly qualified 
        teachers), and hiring highly qualified teachers, who will be 
        assigned teaching positions within their fields, including--
                    ``(A) providing scholarships, signing bonuses, or 
                other financial incentives, such as differential pay, 
                for teachers to teach--
                          ``(i) in academic subjects in which there 
                      exists a shortage of highly qualified teachers 
                      within a school or within the local educational 
                      agency; and

[[Page 115 STAT. 1631]]

                          ``(ii) in schools in which there exists a 
                      shortage of highly qualified teachers;
                    ``(B) recruiting and hiring highly qualified 
                teachers to reduce class size, particularly in the early 
                grades; and
                    ``(C) establishing programs that--
                          ``(i) train and hire regular and special 
                      education teachers (which may include hiring 
                      special education teachers to team-teach in 
                      classrooms that contain both children with 
                      disabilities and nondisabled children);
                          ``(ii) train and hire highly qualified 
                      teachers of special needs children, as well as 
                      teaching specialists in core academic subjects who 
                      will provide increased individualized instruction 
                      to students;
                          ``(iii) recruit qualified professionals from 
                      other fields, including highly qualified 
                      paraprofessionals, and provide such professionals 
                      with alternative routes to teacher certification, 
                      including developing and implementing hiring 
                      policies that ensure comprehensive recruitment 
                      efforts as a way to expand the applicant pool, 
                      such as through identifying teachers certified 
                      through alternative routes, and using a system of 
                      intensive screening designed to hire the most 
                      qualified applicants; and
                          ``(iv) provide increased opportunities for 
                      minorities, individuals with disabilities, and 
                      other individuals underrepresented in the teaching 
                      profession.
            ``(3) Providing professional development activities--
                    ``(A) that improve the knowledge of teachers and 
                principals and, in appropriate cases, paraprofessionals, 
                concerning--
                          ``(i) one or more of the core academic 
                      subjects that the teachers teach; and
                          ``(ii) effective instructional strategies, 
                      methods, and skills, and use of challenging State 
                      academic content standards and student academic 
                      achievement standards, and State assessments, to 
                      improve teaching practices and student academic 
                      achievement; and
                    ``(B) that improve the knowledge of teachers and 
                principals and, in appropriate cases, paraprofessionals, 
                concerning effective instructional practices and that--
                          ``(i) involve collaborative groups of teachers 
                      and administrators;
                          ``(ii) provide training in how to teach and 
                      address the needs of students with different 
                      learning styles, particularly students with 
                      disabilities, students with special learning needs 
                      (including students who are gifted and talented), 
                      and students with limited English proficiency;
                          ``(iii) provide training in methods of--
                                    ``(I) improving student behavior in 
                                the classroom; and
                                    ``(II) identifying early and 
                                appropriate interventions to help 
                                students described in clause (ii) learn;
                          ``(iv) provide training to enable teachers and 
                      principals to involve parents in their child's 
                      education,

[[Page 115 STAT. 1632]]

                      especially parents of limited English proficient 
                      and immigrant children; and
                          ``(v) provide training on how to understand 
                      and use data and assessments to improve classroom 
                      practice and student learning.
            ``(4) Developing and implementing initiatives to promote 
        retention of highly qualified teachers and principals, 
        particularly within elementary schools and secondary schools 
        with a high percentage of low-achieving students, including 
        programs that provide--
                    ``(A) teacher mentoring from exemplary teachers, 
                principals, or superintendents;
                    ``(B) induction and support for teachers and 
                principals during their first 3 years of employment as 
                teachers or principals, respectively;
                    ``(C) incentives, including financial incentives, to 
                retain teachers who have a record of success in helping 
                low-achieving students improve their academic 
                achievement; or
                    ``(D) incentives, including financial incentives, to 
                principals who have a record of improving the academic 
                achievement of all students, but particularly students 
                from economically disadvantaged families, students from 
                racial and ethnic minority groups, and students with 
                disabilities.
            ``(5) Carrying out programs and activities that are designed 
        to improve the quality of the teacher force, such as--
                    ``(A) innovative professional development programs 
                (which may be provided through partnerships including 
                institutions of higher education), including programs 
                that train teachers and principals to integrate 
                technology into curricula and instruction to improve 
                teaching, learning, and technology literacy, are 
                consistent with the requirements of section 9101, and 
                are coordinated with activities carried out under part 
                D;
                    ``(B) development and use of proven, cost-effective 
                strategies for the implementation of professional 
                development activities, such as through the use of 
                technology and distance learning;
                    ``(C) tenure reform;
                    ``(D) merit pay programs; and
                    ``(E) testing of elementary school and secondary 
                school teachers in the academic subjects that the 
                teachers teach.
            ``(6) Carrying out professional development activities 
        designed to improve the quality of principals and 
        superintendents, including the development and support of 
        academies to help talented aspiring or current principals and 
        superintendents become outstanding managers and educational 
        leaders.
            ``(7) Hiring highly qualified teachers, including teachers 
        who become highly qualified through State and local alternative 
        routes to certification, and special education teachers, in 
        order to reduce class size, particularly in the early grades.
            ``(8) Carrying out teacher advancement initiatives that 
        promote professional growth and emphasize multiple career paths 
        (such as paths to becoming a career teacher, mentor teacher, or 
        exemplary teacher) and pay differentiation.
            ``(10) Carrying out programs and activities related to 
        exemplary teachers.

[[Page 115 STAT. 1633]]

    ``(b) Supplement, Not Supplant.--Funds received under this subpart 
shall be used to supplement, and not supplant, non-Federal funds that 
would otherwise be used for activities authorized under this subpart.

             ``Subpart 3--Subgrants to Eligible Partnerships

``SEC. 2131. DEFINITIONS. <<NOTE: 20 USC 6631.>> 

    ``In this subpart:
            ``(1) Eligible partnership.--The term `eligible partnership' 
        means an entity that--
                    ``(A) shall include--
                          ``(i) a private or State institution of higher 
                      education and the division of the institution that 
                      prepares teachers and principals;
                          ``(ii) a school of arts and sciences; and
                          ``(iii) a high-need local educational agency; 
                      and
                    ``(B) may include another local educational agency, 
                a public charter school, an elementary school or 
                secondary school, an educational service agency, a 
                nonprofit educational organization, another institution 
                of higher education, a school of arts and sciences 
                within such an institution, the division of such an 
                institution that prepares teachers and principals, a 
                nonprofit cultural organization, an entity carrying out 
                a prekindergarten program, a teacher organization, a 
                principal organization, or a business.
            ``(2) Low-performing school.--The term `low-performing 
        school' means an elementary school or secondary school that is 
        identified under section 1116.

``SEC. 2132. SUBGRANTS. <<NOTE: 20 USC 6632.>> 

    ``(a) In General.--The State agency for higher education for a State 
that receives a grant under section 2111, working in conjunction with 
the State educational agency (if such agencies are separate), shall use 
the funds reserved under section 2113(a)(2) to make subgrants, on a 
competitive basis, to eligible partnerships to enable such partnerships 
to carry out the activities described in section 2134.
    ``(b) Distribution.--The State agency for higher education shall 
ensure that--
            ``(1) such subgrants are equitably distributed by geographic 
        area within a State; or
            ``(2) eligible partnerships in all geographic areas within 
        the State are served through the subgrants.

    ``(c) Special Rule.--No single participant in an eligible 
partnership may use more than 50 percent of the funds made available to 
the partnership under this section.

``SEC. 2133. APPLICATIONS. <<NOTE: 20 USC 6633.>> 

    ``To be eligible to receive a subgrant under this subpart, an 
eligible partnership shall submit an application to the State agency for 
higher education at such time, in such manner, and containing such 
information as the agency may require.

``SEC. 2134. USE OF FUNDS. <<NOTE: 20 USC 6634.>> 

    ``(a) In General.--An eligible partnership that receives a subgrant 
under section 2132 shall use the subgrant funds for--

[[Page 115 STAT. 1634]]

            ``(1) professional development activities in core academic 
        subjects to ensure that--
                    ``(A) teachers and highly qualified 
                paraprofessionals, and, if appropriate, principals have 
                subject matter knowledge in the academic subjects that 
                the teachers teach, including the use of computer 
                related technology to enhance student learning; and
                    ``(B) principals have the instructional leadership 
                skills that will help such principals work most 
                effectively with teachers to help students master core 
                academic subjects; and
            ``(2) developing and providing assistance to local 
        educational agencies and individuals who are teachers, highly 
        qualified paraprofessionals, or principals of schools served by 
        such agencies, for sustained, high-quality professional 
        development activities that--
                    ``(A) ensure that the individuals are able to use 
                challenging State academic content standards and student 
                academic achievement standards, and State assessments, 
                to improve instructional practices and improve student 
                academic achievement;
                    ``(B) may include intensive programs designed to 
                prepare such individuals who will return to a school to 
                provide instruction related to the professional 
                development described in subparagraph (A) to other such 
                individuals within such school; and
                    ``(C) may include activities of partnerships between 
                one or more local educational agencies, one or more 
                schools served by such local educational agencies, and 
                one or more institutions of higher education for the 
                purpose of improving teaching and learning at low-
                performing schools.

    ``(b) Coordination.--An eligible partnership that receives a 
subgrant to carry out this subpart and a grant under section 203 of the 
Higher Education Act of 1965 shall coordinate the activities carried out 
under this subpart and the activities carried out under that section 
203.

                       ``Subpart 4--Accountability

``SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY. <<NOTE: 20 USC 
            6641.>> 

    ``(a) Improvement Plan.--After the second year of the plan described 
in section 1119(a)(2), if a State educational agency determines, based 
on the reports described in section 1119(b)(1), that a local educational 
agency in the State has failed to make progress toward meeting the 
annual measurable objectives described in section 1119(a)(2), for 2 
consecutive years, such local educational agency shall develop an 
improvement plan that will enable the agency to meet such annual 
measurable objectives and that specifically addresses issues that 
prevented the agency from meeting such annual measurable objectives.
    ``(b) Technical Assistance.--During the development of the 
improvement plan described in subsection (a) and throughout 
implementation of the plan, the State educational agency shall--
            ``(1) provide technical assistance to the local educational 
        agency; and
            ``(2) provide technical assistance, if applicable, to 
        schools served by the local educational agency that need 
        assistance

[[Page 115 STAT. 1635]]

        to enable the local educational agency to meet the annual 
        measurable objectives described in section 1119(a)(2).

    ``(c) <<NOTE: Contracts.>> Accountability.--After the third year of 
the plan described in section 1119(a)(2), if the State educational 
agency determines, based on the reports described in section 1119(b)(1), 
that the local educational agency has failed to make progress toward 
meeting the annual measurable objectives described in section 
1119(a)(2), and has failed to make adequate yearly progress as described 
under section 1111(b)(2)(B), for 3 consecutive years, the State 
educational agency shall enter into an agreement with such local 
educational agency on the use of that agency's funds under this part. As 
part of this agreement, the State educational agency--
            ``(1) shall develop, in conjunction with the local 
        educational agency, teachers, and principals, professional 
        development strategies and activities, based on scientifically 
        based research, that the local educational agency will use to 
        meet the annual measurable objectives described in section 
        1119(a)(2) and require such agency to utilize such strategies 
        and activities; and
            ``(2)(A) except as provided in subparagraphs (B) and (C), 
        shall prohibit the use of funds received under part A of title I 
        to fund any paraprofessional hired after the date such 
        determination is made;
            ``(B) shall allow the use of such funds to fund a 
        paraprofessional hired after that date if the local educational 
        agency can demonstrate that the hiring is to fill a vacancy 
        created by the departure of another paraprofessional funded 
        under title I and such new paraprofessional satisfies the 
        requirements of section 1119(c); and
            ``(C) may allow the use of such funds to fund a 
        paraprofessional hired after that date if the local educational 
        agency can demonstrate--
                    ``(i) that a significant influx of population has 
                substantially increased student enrollment; or
                    ``(ii) that there is an increased need for 
                translators or assistance with parental involvement 
                activities.

    ``(d) Special Rule.--During the development of the strategies and 
activities described in subsection (c)(1), the State educational agency 
shall, in conjunction with the local educational agency, provide from 
funds allocated to such local educational agency under subpart 2 
directly to one or more schools served by such local educational agency, 
to enable teachers at the schools to choose, with continuing 
consultation with the principal involved, professional development 
activities that--
            ``(1) meet the requirements for professional development 
        activities described in section 9101; and
            ``(2) are coordinated with other reform efforts at the 
        schools.

                    ``Subpart 5--National Activities

``SEC. 2151. NATIONAL ACTIVITIES OF DEMONSTRATED 
            EFFECTIVENESS. <<NOTE: 20 USC 6651.>> 

    ``(a) National Teacher Recruitment Campaign.--The Secretary is 
authorized to establish and carry out a national teacher recruitment 
campaign, which may include activities carried out through the National 
Teacher Recruitment Clearinghouse, to assist

[[Page 115 STAT. 1636]]

high-need local educational agencies in recruiting teachers 
(particularly those activities that are effective in retaining new 
teachers) and training teachers and to conduct a national public service 
campaign concerning the resources for, and the routes to, entering the 
field of teaching. In carrying out the campaign, the Secretary may 
promote and link the activities of the campaign to the information and 
referral activities of the National Teacher Recruitment Clearinghouse. 
The Secretary shall coordinate activities under this subsection with 
State and regional recruitment activities.
    ``(b) School Leadership.--
            ``(1) In general.--The Secretary is authorized to establish 
        and carry out a national principal recruitment program to assist 
        high-need local educational agencies in recruiting and training 
        principals (including assistant principals) through such 
        activities as--
                    ``(A) providing financial incentives to aspiring new 
                principals;
                    ``(B) providing stipends to principals who mentor 
                new principals;
                    ``(C) carrying out professional development programs 
                in instructional leadership and management; and
                    ``(D) providing incentives that are appropriate for 
                teachers or individuals from other fields who want to 
                become principals and that are effective in retaining 
                new principals.
            ``(2) Grants.--If the Secretary uses sums made available 
        under section 2103(b) to carry out paragraph (1), the Secretary 
        shall carry out such paragraph by making grants, on a 
        competitive basis, to--
                    ``(A) high-need local educational agencies;
                    ``(B) consortia of high-need local educational 
                agencies; and
                    ``(C) partnerships of high-need local educational 
                agencies, nonprofit organizations, and institutions of 
                higher education.

    ``(c) Advanced Certification or Advanced Credentialing.--
            ``(1) In general.--The Secretary is authorized to support 
        activities to encourage and support teachers seeking advanced 
        certification or advanced credentialing through high quality 
        professional teacher enhancement programs designed to improve 
        teaching and learning.
            ``(2) Implementation.--In carrying out paragraph (1), the 
        Secretary shall make grants to eligible entities to--
                    ``(A) develop teacher standards that include 
                measures tied to increased student academic achievement; 
                and
                    ``(B) promote outreach, teacher recruitment, teacher 
                subsidy, or teacher support programs, related to teacher 
                certification or credentialing by the National Board for 
                Professional Teaching Standards, the National Council on 
                Teacher Quality, or other nationally recognized 
                certification or credentialing organizations.
            ``(3) Eligible entities.--In this subsection, the term 
        `eligible entity' includes--
                    ``(A) a State educational agency;
                    ``(B) a local educational agency;

[[Page 115 STAT. 1637]]

                    ``(C) the National Board for Professional Teaching 
                Standards, in partnership with a high-need local 
                educational agency or a State educational agency;
                    ``(D) the National Council on Teacher Quality, in 
                partnership with a high-need local educational agency or 
                a State educational agency; or
                    ``(E) another recognized entity, including another 
                recognized certification or credentialing organization, 
                in partnership with a high-need local educational agency 
                or a State educational agency.

    ``(d) Special Education Teacher Training.--The Secretary is 
authorized to award a grant to the University of Northern Colorado to 
enable such university to provide, to other institutions of higher 
education, assistance in training special education teachers.
    ``(e) Early Childhood Educator Professional Development.--
            ``(1) Purpose.--The purpose of this subsection is to enhance 
        the school readiness of young children, particularly 
        disadvantaged young children, and to prevent young children from 
        encountering difficulties once the children enter school, by 
        improving the knowledge and skills of early childhood educators 
        who work in communities that have high concentrations of 
        children living in poverty.
            ``(2) Program authorized.--
                    ``(A) Grants to partnerships.--The Secretary is 
                authorized to carry out the purpose of this subsection 
                by awarding grants, on a competitive basis, to 
                partnerships consisting of--
                          ``(i)(I) one or more institutions of higher 
                      education that provide professional development 
                      for early childhood educators who work with 
                      children from low-income families in high-need 
                      communities; or
                          ``(II) another public or private entity that 
                      provides such professional development;
                          ``(ii) one or more public agencies (including 
                      local educational agencies, State educational 
                      agencies, State human services agencies, and State 
                      and local agencies administering programs under 
                      the Child Care and Development Block Grant Act of 
                      1990 (42 U.S.C. 9858 et seq.), Head Start 
                      agencies, or private organizations; and
                          ``(iii) to the extent feasible, an entity with 
                      demonstrated experience in providing training to 
                      educators in early childhood education programs 
                      concerning identifying and preventing behavior 
                      problems or working with children identified as or 
                      suspected to be victims of abuse.
                    ``(B) Duration and number of grants.--
                          ``(i) Duration.--The Secretary shall award 
                      grants under this subsection for periods of not 
                      more than 4 years.
                          ``(ii) Number.--No partnership may receive 
                      more than one grant under this subsection.
            ``(3) Applications.--
                    ``(A) Applications required.--Any partnership that 
                desires to receive a grant under this subsection shall 
                submit

[[Page 115 STAT. 1638]]

                an application to the Secretary at such time, in such 
                manner, and containing such information as the Secretary 
                may require.
                    ``(B) Contents.--Each such application shall 
                include--
                          ``(i) a description of the high-need community 
                      to be served by the project proposed to be carried 
                      out through the grant, including such demographic 
                      and socioeconomic information as the Secretary may 
                      request;
                          ``(ii) information on the quality of the early 
                      childhood educator professional development 
                      program currently conducted (as of the date of the 
                      submission of the application) by the institution 
                      of higher education or another provider in the 
                      partnership;
                          ``(iii) the results of a needs assessment that 
                      the entities in the partnership have undertaken to 
                      determine the most critical professional 
                      development needs of the early childhood educators 
                      to be served by the partnership and in the broader 
                      community, and a description of how the proposed 
                      project will address those needs;
                          ``(iv) a description of how the proposed 
                      project will be carried out, including a 
                      description of--
                                    ``(I) how individuals will be 
                                selected to participate;
                                    ``(II) the types of professional 
                                development activities, based on 
                                scientifically based research, that will 
                                be carried out;
                                    ``(III) how research on effective 
                                professional development and on adult 
                                learning will be used to design and 
                                deliver project activities;
                                    ``(IV) how the project will be 
                                coordinated with and build on, and will 
                                not supplant or duplicate, early 
                                childhood education professional 
                                development activities in the high-need 
                                community;
                                    ``(V) how the project will train 
                                early childhood educators to provide 
                                developmentally appropriate school-
                                readiness services that are based on the 
                                best available research on early 
                                childhood pedagogy and child development 
                                and learning domains;
                                    ``(VI) how the project will train 
                                early childhood educators to meet the 
                                diverse educational needs of children in 
                                the community, including children who 
                                have limited English proficiency, 
                                children with disabilities, or children 
                                with other special needs; and
                                    ``(VII) how the project will train 
                                early childhood educators in identifying 
                                and preventing behavioral problems in 
                                children or working with children 
                                identified as or suspected to be victims 
                                of abuse;
                          ``(v) a description of--
                                    ``(I) the specific objectives that 
                                the partnership will seek to attain 
                                through the project, and the methods 
                                that the partnership will use to measure 
                                progress toward attainment of those 
                                objectives; and

[[Page 115 STAT. 1639]]

                                    ``(II) how the objectives and the 
                                measurement methods align with the 
                                achievement indicators established by 
                                the Secretary under paragraph (6)(A);
                          ``(vi) a description of the partnership's plan 
                      for continuing the activities carried out under 
                      the project after Federal funding ceases;
                          ``(vii) an assurance that, where applicable, 
                      the project will provide appropriate professional 
                      development to volunteers working directly with 
                      young children, as well as to paid staff; and
                          ``(viii) an assurance that, in developing the 
                      application and in carrying out the project, the 
                      partnership has consulted with, and will consult 
                      with, relevant agencies, early childhood educator 
                      organizations, and early childhood providers that 
                      are not members of the partnership.
            ``(4) Selection of grant recipients.--
                    ``(A) Criteria.--The Secretary shall select 
                partnerships to receive grants under this subsection on 
                the basis of the degree to which the communities 
                proposed to be served require assistance and the quality 
                of the applications submitted under paragraph (3).
                    ``(B) Geographic distribution.--In selecting 
                partnerships to receive grants under this subsection, 
                the Secretary shall seek to ensure that communities in 
                different regions of the Nation, as well as both urban 
                and rural communities, are served.
            ``(5) Uses of funds.--
                    ``(A) In general.--Each partnership receiving a 
                grant under this subsection shall use the grant funds to 
                carry out activities that will improve the knowledge and 
                skills of early childhood educators who are working in 
                early childhood programs that are located in high-need 
                communities and serve concentrations of children from 
                low-income families.
                    ``(B) Allowable activities.--Such activities may 
                include--
                          ``(i) professional development for early 
                      childhood educators, particularly to familiarize 
                      those educators with the application of recent 
                      research on child, language, and literacy 
                      development and on early childhood pedagogy;
                          ``(ii) professional development for early 
                      childhood educators in working with parents, so 
                      that the educators and parents can work together 
                      to provide and support developmentally appropriate 
                      school-readiness services that are based on 
                      scientifically based research on early childhood 
                      pedagogy and child development and learning 
                      domains;
                          ``(iii) professional development for early 
                      childhood educators to work with children who have 
                      limited English proficiency, children with 
                      disabilities, and children with other special 
                      needs;

[[Page 115 STAT. 1640]]

                          ``(iv) professional development to train early 
                      childhood educators in identifying and preventing 
                      behavioral problems in children or working with 
                      children identified as or suspected to be victims 
                      of abuse;
                          ``(v) activities that assist and support early 
                      childhood educators during their first 3 years in 
                      the field;
                          ``(vi) development and implementation of early 
                      childhood educator professional development 
                      programs that make use of distance learning and 
                      other technologies;
                          ``(vii) professional development activities 
                      related to the selection and use of screening and 
                      diagnostic assessments to improve teaching and 
                      learning; and
                          ``(viii) data collection, evaluation, and 
                      reporting needed to meet the requirements of 
                      paragraph (6) relating to accountability.
            ``(6) Accountability.--
                    ``(A) Achievement indicators.--On the date on which 
                the Secretary first issues a notice soliciting 
                applications for grants under this subsection, the 
                Secretary shall announce achievement indicators for this 
                subsection, which shall be designed--
                          ``(i) to measure the quality and accessibility 
                      of the professional development provided;
                          ``(ii) to measure the impact of that 
                      professional development on the early childhood 
                      education provided by the individuals who receive 
                      the professional development; and
                          ``(iii) to provide such other measures of 
                      program impact as the Secretary determines to be 
                      appropriate.
                    ``(B) Annual reports; termination.--
                          ``(i) Annual reports.--Each partnership 
                      receiving a grant under this subsection shall 
                      report annually to the Secretary on the 
                      partnership's progress toward attaining the 
                      achievement indicators.
                          ``(ii) Termination.--The Secretary may 
                      terminate a grant under this subsection at any 
                      time if the Secretary determines that the 
                      partnership receiving the grant is not making 
                      satisfactory progress toward attaining the 
                      achievement indicators.
            ``(7) Cost-sharing.--
                    ``(A) In general.--Each partnership carrying out a 
                project through a grant awarded under this subsection 
                shall provide, from sources other than the program 
                carried out under this subsection, which may include 
                Federal sources--
                          ``(i) at least 50 percent of the total cost of 
                      the project for the grant period; and
                          ``(ii) at least 20 percent of the project cost 
                      for each year.
                    ``(B) Acceptable contributions.--A partnership may 
                meet the requirements of subparagraph (A) by providing 
                contributions in cash or in kind, fairly evaluated, 
                including plant, equipment, and services.
                    ``(C) Waivers.--The Secretary may waive or modify 
                the requirements of subparagraph (A) for partnerships in 
                cases of demonstrated financial hardship.

[[Page 115 STAT. 1641]]

            ``(8) Federal coordination.--The Secretary and the Secretary 
        of Health and Human Services shall coordinate activities carried 
        out through programs under this subsection with activities 
        carried out through other early childhood programs administered 
        by the Secretary or the Secretary of Health and Human Services.
            ``(9) Definitions.--In this subsection:
                    ``(A) Early childhood educator.--The term `early 
                childhood educator' means a person providing, or 
                employed by a provider of, nonresidential child care 
                services (including center-based, family-based, and in-
                home child care services) that is legally operating 
                under State law, and that complies with applicable State 
                and local requirements for the provision of child care 
                services to children at any age from birth through the 
                age at which a child may start kindergarten in that 
                State.
                    ``(B) High-need community.--
                          ``(i) In general.--The term `high-need 
                      community' means--
                                    ``(I) a political subdivision of a 
                                State, or a portion of a political 
                                subdivision of a State, in which at 
                                least 50 percent of the children are 
                                from low-income families; or
                                    ``(II) a political subdivision of a 
                                State that is among the 10 percent of 
                                political subdivisions of the State 
                                having the greatest numbers of such 
                                children.
                          ``(ii) Determination.--In determining which 
                      communities are described in clause (i), the 
                      Secretary shall use such data as the Secretary 
                      determines are most accurate and appropriate.
                    ``(C) Low-income family.--The term `low-income 
                family' means a family with an income below the poverty 
                line for the most recent fiscal year for which 
                satisfactory data are available.

    ``(f) Teacher Mobility.--
            ``(1) Establishment.--The Secretary is authorized to 
        establish a panel to be known as the National Panel on Teacher 
        Mobility (referred to in this subsection as the `panel').
            ``(2) Membership.--The panel shall be composed of 12 members 
        appointed by the Secretary. The Secretary shall appoint the 
        members from among practitioners and experts with experience 
        relating to teacher mobility, such as teachers, members of 
        teacher certification or licensing bodies, faculty of 
        institutions of higher education that prepare teachers, and 
        State policymakers with such experience.
            ``(3) Period of appointment; vacancies.--Members shall be 
        appointed for the life of the panel. Any vacancy in the panel 
        shall not affect the powers of the panel, but shall be filled in 
        the same manner as the original appointment.
            ``(4) Duties.--
                    ``(A) Study.--
                          ``(i) In general.--The panel shall study 
                      strategies for increasing mobility and employment 
                      opportunities for highly qualified teachers, 
                      especially for States with teacher shortages and 
                      States with school districts or schools that are 
                      difficult to staff.

[[Page 115 STAT. 1642]]

                          ``(ii) Data and analysis.--As part of the 
                      study, the panel shall evaluate the desirability 
                      and feasibility of State initiatives that support 
                      teacher mobility by collecting data and conducting 
                      effective analysis concerning--
                                    ``(I) teacher supply and demand;
                                    ``(II) the development of 
                                recruitment and hiring strategies that 
                                support teachers; and
                                    ``(III) increasing reciprocity of 
                                certification and licensing across 
                                States.
                    ``(B) <<NOTE: Deadline.>>  report.--Not later than 1 
                year after the date on which all members of the panel 
                have been appointed, the panel shall submit to the 
                Secretary and to the appropriate committees of Congress 
                a report containing the results of the study.
            ``(5) Powers.--
                    ``(A) Hearings.--The panel may hold such hearings, 
                sit and act at such times and places, take such 
                testimony, and receive such evidence as the panel 
                considers advisable to carry out the objectives of this 
                subsection.
                    ``(B) Information from federal agencies.--The panel 
                may secure directly from any Federal department or 
                agency such information as the panel considers necessary 
                to carry out the provisions of this subsection. Upon 
                request of a majority of the members of the panel, the 
                head of such department or agency shall furnish such 
                information to the panel.
                    ``(C) Postal services.--The panel may use the United 
                States mails in the same manner and under the same 
                conditions as other departments and agencies of the 
                Federal Government.
            ``(6) Personnel.--
                    ``(A) Travel expenses.--The members of the panel 
                shall not receive compensation for the performance of 
                services for the panel, but shall be allowed travel 
                expenses, including per diem in lieu of subsistence, at 
                rates authorized for employees of agencies under 
                subchapter I of chapter 57 of title 5, United States 
                Code, while away from their homes or regular places of 
                business in the performance of services for the panel. 
                Notwithstanding section 1342 of title 31, United States 
                Code, the Secretary may accept the voluntary and 
                uncompensated services of members of the panel.
                    ``(B) Detail of government employees.--Any Federal 
                Government employee may be detailed to the panel without 
                reimbursement, and such detail shall be without 
                interruption or loss of civil service status or 
                privilege.
            ``(7) Permanent committee.--Section 14 of the Federal 
        Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
        panel.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

``SEC. 2201. PURPOSE; DEFINITIONS. <<NOTE: 20 USC 6661.>> 

    ``(a) Purpose.--The purpose of this part is to improve the academic 
achievement of students in the areas of mathematics

[[Page 115 STAT. 1643]]

and science by encouraging State educational agencies, institutions of 
higher education, local educational agencies, elementary schools, and 
secondary schools to participate in programs that--
            ``(1) improve and upgrade the status and stature of 
        mathematics and science teaching by encouraging institutions of 
        higher education to assume greater responsibility for improving 
        mathematics and science teacher education through the 
        establishment of a comprehensive, integrated system of 
        recruiting, training, and advising mathematics and science 
        teachers;
            ``(2) focus on the education of mathematics and science 
        teachers as a career-long process that continuously stimulates 
        teachers' intellectual growth and upgrades teachers' knowledge 
        and skills;
            ``(3) bring mathematics and science teachers in elementary 
        schools and secondary schools together with scientists, 
        mathematicians, and engineers to increase the subject matter 
        knowledge of mathematics and science teachers and improve such 
        teachers' teaching skills through the use of sophisticated 
        laboratory equipment and work space, computing facilities, 
        libraries, and other resources that institutions of higher 
        education are better able to provide than the elementary schools 
        and secondary schools;
            ``(4) develop more rigorous mathematics and science 
        curricula that are aligned with challenging State and local 
        academic content standards and with the standards expected for 
        postsecondary study in engineering, mathematics, and science; 
        and
            ``(5) improve and expand training of mathematics and science 
        teachers, including training such teachers in the effective 
        integration of technology into curricula and instruction.

    ``(b) Definitions.--In this part:
            ``(1) Eligible partnership.--The term `eligible partnership' 
        means a partnership that--
                    ``(A) shall include--
                          ``(i) if grants are awarded under section 
                      2202(a)(1), a State educational agency;
                          ``(ii) an engineering, mathematics, or science 
                      department of an institution of higher education; 
                      and
                          ``(iii) a high-need local educational agency; 
                      and
                    ``(B) may include--
                          ``(i) another engineering, mathematics, 
                      science, or teacher training department of an 
                      institution of higher education;
                          ``(ii) additional local educational agencies, 
                      public charter schools, public or private 
                      elementary schools or secondary schools, or a 
                      consortium of such schools;
                          ``(iii) a business; or
                          ``(iv) a nonprofit or for-profit organization 
                      of demonstrated effectiveness in improving the 
                      quality of mathematics and science teachers.
            ``(2) Summer workshop or institute.--The term `summer 
        workshop or institute' means a workshop or institute, conducted 
        during the summer, that--
                    ``(A) is conducted for a period of not less than 2 
                weeks;
                    ``(B) includes, as a component, a program that 
                provides direct interaction between students and 
                faculty; and

[[Page 115 STAT. 1644]]

                    ``(C) provides for followup training during the 
                academic year that is conducted in the classroom for a 
                period of not less than three consecutive or 
                nonconsecutive days, except that--
                          ``(i) if the workshop or institute is 
                      conducted during a 2-week period, the followup 
                      training shall be conducted for a period of not 
                      less than 4 days; and
                          ``(ii) if the followup training is for 
                      teachers in rural school districts, the followup 
                      training may be conducted through distance 
                      learning.

``SEC. 2202. GRANTS FOR MATHEMATICS AND SCIENCE PARTNERSHIPS. <<NOTE: 20 
            USC 6662.>> 

    ``(a) Grants Authorized.--
            ``(1) Grants to partnerships.--For any fiscal year for which 
        the funds appropriated under section 2203 are less than 
        $100,000,000, the Secretary is authorized to award grants, on a 
        competitive basis, to eligible partnerships to carry out the 
        authorized activities described in subsection (c).
            ``(2) Grants to state educational agencies.--
                    ``(A) In general.--For any fiscal year for which the 
                funds appropriated under section 2203 equal or exceed 
                $100,000,000--
                          ``(i) if an eligible partnership in the State 
                      was previously awarded a grant under paragraph 
                      (1), and the grant period has not ended, the 
                      Secretary shall reserve funds in a sufficient 
                      amount to make payments to the partnership in 
                      accordance with the terms of the grant; and
                          ``(ii) the Secretary is authorized to award 
                      grants to State educational agencies to enable 
                      such agencies to award subgrants, on a competitive 
                      basis, to eligible partnerships to carry out the 
                      authorized activities described in subsection (c).
                    ``(B) Allotment.--The Secretary shall allot the 
                amount made available under this part for a fiscal year 
                and not reserved under subparagraph (A)(i) among the 
                State educational agencies in proportion to the number 
                of children, aged 5 to 17, who are from families with 
                incomes below the poverty line and reside in a State for 
                the most recent fiscal year for which satisfactory data 
                are available, as compared to the number of such 
                children who reside in all such States for such year.
                    ``(C) Minimum allotment.--The amount of any State 
                educational agency's allotment under subparagraph (B) 
                for any fiscal year may not be less than one-half of 1 
                percent of the amount made available under this part for 
                such year.
            ``(3) Duration.--The Secretary shall award grants under this 
        part for a period of 3 years.
            ``(4) Supplement, not supplant.--Funds received under this 
        part shall be used to supplement, and not supplant, funds that 
        would otherwise be used for activities authorized under this 
        part.

    ``(b) Application Requirements.--
            ``(1) In general.--Each eligible partnership desiring a 
        grant or subgrant under this part shall submit an application--

[[Page 115 STAT. 1645]]

                    ``(A) in the case of grants awarded pursuant to 
                subsection (a)(1), to the Secretary, at such time, in 
                such manner, and accompanied by such information as the 
                Secretary may require; or
                    ``(B) in the case of subgrants awarded pursuant to 
                subsection (a)(2), to the State educational agency, at 
                such time, in such manner, and accompanied by such 
                information as the State educational agency may require.
            ``(2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall include--
                    ``(A) the results of a comprehensive assessment of 
                the teacher quality and professional development needs 
                of any schools, local educational agencies, and State 
                educational agencies that comprise the eligible 
                partnership with respect to the teaching and learning of 
                mathematics and science;
                    ``(B) a description of how the activities to be 
                carried out by the eligible partnership will be aligned 
                with challenging State academic content and student 
                academic achievement standards in mathematics and 
                science and with other educational reform activities 
                that promote student academic achievement in mathematics 
                and science;
                    ``(C) a description of how the activities to be 
                carried out by the eligible partnership will be based on 
                a review of scientifically based research, and an 
                explanation of how the activities are expected to 
                improve student academic achievement and strengthen the 
                quality of mathematics and science instruction;
                    ``(D) a description of--
                          ``(i) how the eligible partnership will carry 
                      out the authorized activities described in 
                      subsection (c); and
                          ``(ii) the eligible partnership's evaluation 
                      and accountability plan described in subsection 
                      (e); and
                    ``(E) a description of how the eligible partnership 
                will continue the activities funded under this part 
                after the original grant or subgrant period has expired.

    ``(c) Authorized Activities.--An eligible partnership shall use 
funds provided under this part for one or more of the following 
activities related to elementary schools or secondary schools:
            ``(1) Creating opportunities for enhanced and ongoing 
        professional development of mathematics and science teachers 
        that improves the subject matter knowledge of such teachers.
            ``(2) Promoting strong teaching skills for mathematics and 
        science teachers and teacher educators, including integrating 
        reliable scientifically based research teaching methods and 
        technology-based teaching methods into the curriculum.
            ``(3) Establishing and operating mathematics and science 
        summer workshops or institutes, including followup training, for 
        elementary school and secondary school mathematics and science 
        teachers that--
                    ``(A) shall--
                          ``(i) directly relate to the curriculum and 
                      academic areas in which the teacher provides 
                      instruction, and focus only secondarily on 
                      pedagogy;
                          ``(ii) enhance the ability of the teacher to 
                      understand and use the challenging State academic 
                      content

[[Page 115 STAT. 1646]]

                      standards for mathematics and science and to 
                      select appropriate curricula; and
                          ``(iii) train teachers to use curricula that 
                      are--
                                    ``(I) based on scientific research;
                                    ``(II) aligned with challenging 
                                State academic content standards; and
                                    ``(III) object-centered, experiment-
                                oriented, and concept- and content-
                                based; and
                    ``(B) may include--
                          ``(i) programs that provide teachers and 
                      prospective teachers with opportunities to work 
                      under the guidance of experienced teachers and 
                      college faculty;
                          ``(ii) instruction in the use of data and 
                      assessments to inform and instruct classroom 
                      practice; and
                          ``(iii) professional development activities, 
                      including supplemental and followup activities, 
                      such as curriculum alignment, distance learning, 
                      and activities that train teachers to utilize 
                      technology in the classroom.
            ``(4) Recruiting mathematics, engineering, and science 
        majors to teaching through the use of--
                    ``(A) signing and performance incentives that are 
                linked to activities proven effective in retaining 
                teachers, for individuals with demonstrated professional 
                experience in mathematics, engineering, or science;
                    ``(B) stipends provided to mathematics and science 
                teachers for certification through alternative routes;
                    ``(C) scholarships for teachers to pursue advanced 
                course work in mathematics, engineering, or science; and
                    ``(D) other programs that the State educational 
                agency determines to be effective in recruiting and 
                retaining individuals with strong mathematics, 
                engineering, or science backgrounds.
            ``(5) Developing or redesigning more rigorous mathematics 
        and science curricula that are aligned with challenging State 
        and local academic content standards and with the standards 
        expected for postsecondary study in mathematics and science.
            ``(6) Establishing distance learning programs for 
        mathematics and science teachers using curricula that are 
        innovative, content-based, and based on scientifically based 
        research that is current as of the date of the program involved.
            ``(7) Designing programs to prepare a mathematics or science 
        teacher at a school to provide professional development to other 
        mathematics or science teachers at the school and to assist 
        beginning and other teachers at the school, including (if 
        applicable) a mechanism to integrate the teacher's experiences 
        from a summer workshop or institute into the provision of 
        professional development and assistance.
            ``(8) Establishing and operating programs to bring 
        mathematics and science teachers into contact with working 
        scientists, mathematicians, and engineers, to expand such 
        teachers' subject matter knowledge of and research in science 
        and mathematics.
            ``(9) Designing programs to identify and develop exemplary 
        mathematics and science teachers in the kindergarten through 
        grade 8 classrooms.

[[Page 115 STAT. 1647]]

            ``(10) Training mathematics and science teachers and 
        developing programs to encourage young women and other 
        underrepresented individuals in mathematics and science careers 
        (including engineering and technology) to pursue postsecondary 
        degrees in majors leading to such careers.

    ``(d) Coordination and Consultation.--
            ``(1) Partnership grants.--An eligible partnership receiving 
        a grant under section 203 of the Higher Education Act of 1965 
        shall coordinate the use of such funds with any related 
        activities carried out by such partnership with funds made 
        available under this part.
            ``(2) National science foundation.--In carrying out the 
        activities authorized by this part, the Secretary shall consult 
        and coordinate with the Director of the National Science 
        Foundation, particularly with respect to the appropriate roles 
        for the Department and the Foundation in the conduct of summer 
        workshops, institutes, or partnerships to improve mathematics 
        and science teaching in elementary schools and secondary 
        schools.

    ``(e) Evaluation and Accountability Plan.--
            ``(1) In general.--Each eligible partnership receiving a 
        grant or subgrant under this part shall develop an evaluation 
        and accountability plan for activities assisted under this part 
        that includes rigorous objectives that measure the impact of 
        activities funded under this part.
            ``(2) Contents.--The plan developed pursuant to paragraph 
        (1)--
                    ``(A) shall include measurable objectives to 
                increase the number of mathematics and science teachers 
                who participate in content-based professional 
                development activities;
                    ``(B) shall include measurable objectives for 
                improved student academic achievement on State 
                mathematics and science assessments or, where 
                applicable, an International Mathematics and Science 
                Study assessment; and
                    ``(C) may include objectives and measures for--
                          ``(i) increased participation by students in 
                      advanced courses in mathematics and science;
                          ``(ii) increased percentages of elementary 
                      school teachers with academic majors or minors, or 
                      group majors or minors, in mathematics, 
                      engineering, or the sciences; and
                          ``(iii) increased percentages of secondary 
                      school classes in mathematics and science taught 
                      by teachers with academic majors in mathematics, 
                      engineering, and science.

    ``(f) Report.--Each eligible partnership receiving a grant or 
subgrant under this part shall report annually to the Secretary 
regarding the eligible partnership's progress in meeting the objectives 
described in the accountability plan of the partnership under subsection 
(e).

``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6663.>> 

    ``There are authorized to be appropriated to carry out this part 
$450,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.

[[Page 115 STAT. 1648]]

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

                 ``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

``SEC. 2301. DEFINITIONS. <<NOTE: 20 USC 6671.>> 

    ``In this chapter:
            ``(1) Armed forces.--The term `Armed Forces' means the Army, 
        Navy, Air Force, Marine Corps, and Coast Guard.
            ``(2) Member of the armed forces.--The term `member of the 
        Armed Forces' includes a former member of the Armed Forces.
            ``(3) Program.--The term `Program' means the Troops-to-
        Teachers Program authorized by this chapter.
            ``(4) Reserve component.--The term `reserve component' 
        means--
                    ``(A) the Army National Guard of the United States;
                    ``(B) the Army Reserve;
                    ``(C) the Naval Reserve;
                    ``(D) the Marine Corps Reserve;
                    ``(E) the Air National Guard of the United States;
                    ``(F) the Air Force Reserve; and
                    ``(G) the Coast Guard Reserve.
            ``(5) Secretary concerned.--The term `Secretary concerned' 
        means--
                    ``(A) the Secretary of the Army, with respect to 
                matters concerning a reserve component of the Army;
                    ``(B) the Secretary of the Navy, with respect to 
                matters concerning reserve components named in 
                subparagraphs (C) and (D) of paragraph (4);
                    ``(C) the Secretary of the Air Force, with respect 
                to matters concerning a reserve component of the Air 
                Force; and
                    ``(D) the Secretary of Transportation, with respect 
                to matters concerning the Coast Guard Reserve.

``SEC. 2302. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM. <<NOTE: 20 USC 
            6672.>> 

    ``(a) Purpose.--The purpose of this section is to authorize a 
mechanism for the funding and administration of the Troops-to-Teachers 
Program, which was originally established by the Troops-to-Teachers 
Program Act of 1999 (title XVII of the National Defense Authorization 
Act for Fiscal Year 2000) (20 U.S.C. 9301 et seq.).
    ``(b) Program Authorized.--The Secretary may carry out a program (to 
be known as the `Troops-to-Teachers Program')--
            ``(1) to assist eligible members of the Armed Forces 
        described in section 2303 to obtain certification or licensing 
        as elementary school teachers, secondary school teachers, or 
        vocational or technical teachers, and to become highly qualified 
        teachers; and
            ``(2) to facilitate the employment of such members--
                    ``(A) by local educational agencies or public 
                charter schools that the Secretary identifies as--
                          ``(i) receiving grants under part A of title I 
                      as a result of having within their jurisdictions 
                      concentrations of children from low-income 
                      families; or

[[Page 115 STAT. 1649]]

                          ``(ii) experiencing a shortage of highly 
                      qualified teachers, in particular a shortage of 
                      science, mathematics, special education, or 
                      vocational or technical teachers; and
                    ``(B) in elementary schools or secondary schools, or 
                as vocational or technical teachers.

    ``(c) <<NOTE: Memorandum.>>  Administration of Program.--The 
Secretary shall enter into a memorandum of agreement with the Secretary 
of Defense under which the Secretary of Defense, acting through the 
Defense Activity for Non-Traditional Education Support of the Department 
of Defense, will perform the actual administration of the Program, other 
than section 2306. Using funds appropriated to the Secretary to carry 
out this chapter, the Secretary shall transfer to the Secretary of 
Defense such amounts as may be necessary to administer the Program 
pursuant to the memorandum of agreement.

    ``(d) Information Regarding Program.--The Secretary shall provide to 
the Secretary of Defense information regarding the Program and 
applications to participate in the Program, for distribution as part of 
preseparation counseling provided under section 1142 of title 10, United 
States Code, to members of the Armed Forces described in section 2303.
    ``(e) Placement Assistance and Referral Services.--The Secretary 
may, with the agreement of the Secretary of Defense, provide placement 
assistance and referral services to members of the Armed Forces who meet 
the criteria described in section 2303, including meeting education 
qualification requirements under subsection 2303(c)(2). Such members 
shall not be eligible for financial assistance under subsections (c) and 
(d) of section 2304.

``SEC. 2303. <<NOTE: 20 USC 6673.>> RECRUITMENT AND SELECTION OF PROGRAM 
            PARTICIPANTS.

    ``(a) Eligible Members.--The following members of the Armed Forces 
are eligible for selection to participate in the Program:
            ``(1) Any member who--
                    ``(A) on or after October 1, 1999, becomes entitled 
                to retired or retainer pay in the manner provided in 
                title 10 or title 14, United States Code;
                    ``(B) has an approved date of retirement that is 
                within 1 year after the date on which the member submits 
                an application to participate in the Program; or
                    ``(C) has been transferred to the Retired Reserve.
            ``(2) Any member who, on or after the date of enactment of 
        the No Child Left Behind Act of 2001--
                    ``(A)(i) is separated or released from active duty 
                after 6 or more years of continuous active duty 
                immediately before the separation or release; or
                    ``(ii) has completed a total of at least 10 years of 
                active duty service, 10 years of service computed under 
                section 12732 of title 10, United States Code, or 10 
                years of any combination of such service; and
                    ``(B) executes a reserve commitment agreement for a 
                period of not less than 3 years under subsection (e)(2).
            ``(3) Any member who, on or after the date of enactment of 
        the No Child Left Behind Act of 2001, is retired or separated 
        for physical disability under chapter 61 of title 10, United 
        States Code.
            ``(4) Any member who--

[[Page 115 STAT. 1650]]

                    ``(A) during the period beginning on October 1, 
                1990, and ending on September 30, 1999, was 
                involuntarily discharged or released from active duty 
                for purposes of a reduction of force after 6 or more 
                years of continuous active duty immediately before the 
                discharge or release; or
                    ``(B) applied for the teacher placement program 
                administered under section 1151 of title 10, United 
                States Code, before the repeal of that section, and 
                satisfied the eligibility criteria specified in 
                subsection (c) of such section 1151.

    ``(b) Submission of Applications.--
            ``(1) Form and submission.--Selection of eligible members of 
        the Armed Forces to participate in the Program shall be made on 
        the basis of applications submitted to the Secretary within the 
        time periods specified in paragraph (2). An application shall be 
        in such form and contain such information as the Secretary may 
        require.
            ``(2) Time for submission.--An application shall be 
        considered to be submitted on a timely basis under paragraph (1) 
        if--
                    ``(A) in the case of a member described in paragraph 
                (1)(A), (2), or (3) of subsection (a), the application 
                is submitted not later than 4 years after the date on 
                which the member is retired or separated or released 
                from active duty, whichever applies to the member; or
                    ``(B) in the case of a member described in 
                subsection (a)(4), the application is submitted not 
                later than September 30, 2003.

    ``(c) Selection Criteria.--
            ``(1) Establishment.--Subject to paragraphs (2) and (3), the 
        Secretary shall prescribe the criteria to be used to select 
        eligible members of the Armed Forces to participate in the 
        Program.
            ``(2) Educational background.--
                    ``(A) Elementary or secondary school teacher.--If a 
                member of the Armed Forces described in paragraph (1), 
                (2), or (3) of subsection (a) is applying for assistance 
                for placement as an elementary school or secondary 
                school teacher, the Secretary shall require the member 
                to have received a baccalaureate or advanced degree from 
                an accredited institution of higher education.
                    ``(B) Vocational or technical teacher.--If a member 
                of the Armed Forces described in paragraph (1), (2), or 
                (3) of subsection (a) is applying for assistance for 
                placement as a vocational or technical teacher, the 
                Secretary shall require the member--
                          ave received the equivalent of 1 year of 
                      college from an accredited institution of higher 
                      education and have 6 or more years of military 
                      experience in a vocational or technical field; or
                          ``(ii) to otherwise meet the certification or 
                      licensing requirements for a vocational or 
                      technical teacher in the State in which the member 
                      seeks assistance for placement under the Program.
            ``(3) Honorable service.--A member of the Armed Forces is 
        eligible to participate in the Program only if the member's

[[Page 115 STAT. 1651]]

        last period of service in the Armed Forces was honorable, as 
        characterized by the Secretary concerned (as defined in section 
        101(a)(9) of title 10, United States Code). A member selected to 
        participate in the Program before the retirement of the member 
        or the separation or release of the member from active duty may 
        continue to participate in the Program after the retirement, 
        separation, or release only if the member's last period of 
        service is characterized as honorable by the Secretary concerned 
        (as so defined).

    ``(d) Selection Priorities.--In selecting eligible members of the 
Armed Forces to receive assistance under the Program, the Secretary 
shall give priority to members who have educational or military 
experience in science, mathematics, special education, or vocational or 
technical subjects and agree to seek employment as science, mathematics, 
or special education teachers in elementary schools or secondary schools 
or in other schools under the jurisdiction of a local educational 
agency.
    ``(e) Other Conditions on Selection.--
            ``(1) Selection subject to funding.--The Secretary may not 
        select an eligible member of the Armed Forces to participate in 
        the Program under this section and receive financial assistance 
        under section 2304 unless the Secretary has sufficient 
        appropriations for the Program available at the time of the 
        selection to satisfy the obligations to be incurred by the 
        United States under section 2304 with respect to the member.
            ``(2) Reserve commitment agreement.--The Secretary may not 
        select an eligible member of the Armed Forces described in 
        subsection (a)(2)(A) to participate in the Program under this 
        section and receive financial assistance under section 2304 
        unless--
                    ``(A) the Secretary notifies the Secretary concerned 
                and the member that the Secretary has reserved a full 
                stipend or bonus under section 2304 for the member; and
                    ``(B) the member executes a written agreement with 
                the Secretary concerned to serve as a member of the 
                Selected Reserve of a reserve component of the Armed 
                Forces for a period of not less than 3 years (in 
                addition to any other reserve commitment the member may 
                have).

``SEC. 2304. PARTICIPATION AGREEMENT AND FINANCIAL 
            ASSISTANCE. <<NOTE: 20 USC 6674.>> 

    ``(a) Participation Agreement.--
            ``(1) In general.--An eligible member of the Armed Forces 
        selected to participate in the Program under section 2303 and 
        receive financial assistance under this section shall be 
        required to enter into an agreement with the Secretary in which 
        the member agrees--
                    ``(A) within such time as the Secretary may require, 
                to obtain certification or licensing as an elementary 
                school teacher, secondary school teacher, or vocational 
                or technical teacher, and to become a highly qualified 
                teacher; and
                    ``(B) to accept an offer of full-time employment as 
                an elementary school teacher, secondary school teacher, 
                or vocational or technical teacher for not less than 3 
                school years with a high-need local educational agency 
                or public charter school, as such terms are defined in 
                section 2101, to begin the school year after obtaining 
                that certification or licensing.

[[Page 115 STAT. 1652]]

            ``(2) Waiver.--The Secretary may waive the 3-year commitment 
        described in paragraph (1)(B) for a participant if the Secretary 
        determines such waiver to be appropriate. If the Secretary 
        provides the waiver, the participant shall not be considered to 
        be in violation of the agreement and shall not be required to 
        provide reimbursement under subsection (f), for failure to meet 
        the 3-year commitment.

    ``(b) Violation of Participation Agreement; Exceptions.--A 
participant in the Program shall not be considered to be in violation of 
the participation agreement entered into under subsection (a) during any 
period in which the participant--
            ``(1) is pursuing a full-time course of study related to the 
        field of teaching at an institution of higher education;
            ``(2) is serving on active duty as a member of the Armed 
        Forces;
            ``(3) is temporarily totally disabled for a period of time 
        not to exceed 3 years as established by sworn affidavit of a 
        qualified physician;
            ``(4) is unable to secure employment for a period not to 
        exceed 12 months by reason of the care required by a spouse who 
        is disabled;
            ``(5) is a highly qualified teacher who is seeking and 
        unable to find full-time employment as a teacher in an 
        elementary school or secondary school or as a vocational or 
        technical teacher for a single period not to exceed 27 months; 
        or
            ``(6) satisfies the provisions of additional reimbursement 
        exceptions that may be prescribed by the Secretary.

    ``(c) Stipend for Participants.--
            ``(1) Stipend authorized.--Subject to paragraph (2), the 
        Secretary may pay to a participant in the Program selected under 
        section 2303 a stipend in an amount of not more than $5,000.
            ``(2) Limitation.--The total number of stipends that may be 
        paid under paragraph (1) in any fiscal year may not exceed 
        5,000.

    ``(d) Bonus for Participants.--
            ``(1) Bonus authorized.--Subject to paragraph (2), the 
        Secretary may, in lieu of paying a stipend under subsection (c), 
        pay a bonus of $10,000 to a participant in the Program selected 
        under section 2303 who agrees in the participation agreement 
        under subsection (a) to become a highly qualified teacher and to 
        accept full-time employment as an elementary school teacher, 
        secondary school teacher, or vocational or technical teacher for 
        not less than 3 school years in a high-need school.
            ``(2) Limitation.--The total number of bonuses that may be 
        paid under paragraph (1) in any fiscal year may not exceed 
        3,000.
            ``(3) High-need school defined.--In this subsection, the 
        term `high-need school' means a public elementary school, public 
        secondary school, or public charter school that meets one or 
        more of the following criteria:
                    ``(A) Low-income children.--At least 50 percent of 
                the students enrolled in the school were from low-income 
                families (as described in section 2302(b)(2)(A)(i)).
                    ``(B) Children with disabilities.--The school has a 
                large percentage of students who qualify for assistance

[[Page 115 STAT. 1653]]

                under part B of the Individuals with Disabilities 
                Education Act.

    ``(e) Treatment of Stipend and Bonus.--A stipend or bonus paid under 
this section to a participant in the Program shall be taken into account 
in determining the eligibility of the participant for Federal student 
financial assistance provided under title IV of the Higher Education Act 
of 1965.
    ``(f) Reimbursement Under Certain Circumstances.--
            ``(1) Reimbursement required.--A participant in the Program 
        who is paid a stipend or bonus under this section shall be 
        required to repay the stipend or bonus under the following 
        circumstances:
                    ``(A) Failure to obtain qualifications or 
                employment.--The participant fails to obtain teacher 
                certification or licensing, to become a highly qualified 
                teacher, or to obtain employment as an elementary school 
                teacher, secondary school teacher, or vocational or 
                technical teacher as required by the participation 
                agreement under subsection (a).
                    ``(B) Termination of employment.--The participant 
                voluntarily leaves, or is terminated for cause from, 
                employment as an elementary school teacher, secondary 
                school teacher, or vocational or technical teacher 
                during the 3 years of required service in violation of 
                the participation agreement.
                    ``(C) Failure to complete service under reserve 
                commitment agreement.--The participant executed a 
                written agreement with the Secretary concerned under 
                section 2303(e)(2) to serve as a member of a reserve 
                component of the Armed Forces for a period of 3 years 
                and fails to complete the required term of service.
            ``(2) Amount of reimbursement.--A participant required to 
        reimburse the Secretary for a stipend or bonus paid to the 
        participant under this section shall pay an amount that bears 
        the same ratio to the amount of the stipend or bonus as the 
        unserved portion of required service bears to the 3 years of 
        required service. Any amount owed by the participant shall bear 
        interest at the rate equal to the highest rate being paid by the 
        United States on the day on which the reimbursement is 
        determined to be due for securities having maturities of 90 days 
        or less and shall accrue from the day on which the participant 
        is first notified of the amount due.
            ``(3) Treatment of obligation.--The obligation to reimburse 
        the Secretary under this subsection is, for all purposes, a debt 
        owing the United States. A discharge in bankruptcy under title 
        11, United States Code, shall not release a participant from the 
        obligation to reimburse the Secretary under this subsection.
            ``(4) Exceptions to reimbursement requirement.--A 
        participant shall be excused from reimbursement under this 
        subsection if the participant becomes permanently totally 
        disabled as established by sworn affidavit of a qualified 
        physician. The Secretary may also waive the reimbursement in 
        cases of extreme hardship to the participant, as determined by 
        the Secretary.

    ``(g) Relationship to Educational Assistance Under Montgomery GI 
Bill.--The receipt by a participant in the Program

[[Page 115 STAT. 1654]]

of a stipend or bonus under this section shall not reduce or otherwise 
affect the entitlement of the participant to any benefits under chapter 
30 of title 38, United States Code, or chapter 1606 of title 10, United 
States Code.

``SEC. 2305. PARTICIPATION BY STATES. <<NOTE: 20 USC 6675.>> 

    ``(a) Discharge of State Activities Through Consortia of States.--
The Secretary may permit States participating in the Program to carry 
out activities authorized for such States under the Program through one 
or more consortia of such States.
    ``(b) Assistance to States.--
            ``(1) Grants authorized.--Subject to paragraph (2), the 
        Secretary may make grants to States participating in the 
        Program, or to consortia of such States, in order to permit such 
        States or consortia of States to operate offices for purposes of 
        recruiting eligible members of the Armed Forces for 
        participation in the Program and facilitating the employment of 
        participants in the Program as elementary school teachers, 
        secondary school teachers, and vocational or technical teachers.
            ``(2) Limitation.--The total amount of grants made under 
        paragraph (1) in any fiscal year may not exceed $5,000,000.

``SEC. 2306. <<NOTE: 20 USC 6676.>> SUPPORT OF INNOVATIVE PRERETIREMENT 
            TEACHER CERTIFICATION PROGRAMS.

    ``(a) Purpose.--The purpose of this section is to provide funding to 
develop, implement, and demonstrate teacher certification programs.
    ``(b) Development, Implementation and Demonstration.--The Secretary 
may enter into a memorandum of agreement with a State educational 
agency, an institution of higher education, or a consortia of State 
educational agencies or institutions of higher education, to develop, 
implement, and demonstrate teacher certification programs for members of 
the Armed Forces described in section 2303(a)(1)(B) for the purpose of 
assisting such members to consider and prepare for a career as a highly 
qualified elementary school teacher, secondary school teacher, or 
vocational or technical teacher upon retirement from the Armed Forces.
    ``(c) Program Elements.--A teacher certification program under 
subsection (b) shall--
            ``(1) provide recognition of military experience and 
        training as related to certification or licensing requirements;
            ``(2) provide courses of instruction that may be conducted 
        on or near a military installation;
            ``(3) incorporate alternative approaches to achieve teacher 
        certification, such as innovative methods to gaining field-based 
        teaching experiences, and assessment of background and 
        experience as related to skills, knowledge, and abilities 
        required of elementary school teachers, secondary school 
        teachers, or vocational or technical teachers;
            ``(4) provide for courses to be delivered via distance 
        education methods; and
            ``(5) address any additional requirements or specifications 
        established by the Secretary.

    ``(d) Application Procedures.--
            ``(1) In general.--A State educational agency or institution 
        of higher education (or a consortium of State educational 
        agencies or institutions of higher education) that desires to 
        enter into a memorandum under subsection (b) shall prepare and

[[Page 115 STAT. 1655]]

        submit to the Secretary a proposal, at such time, in such 
        manner, and containing such information as the Secretary may 
        require, including an assurance that the State educational 
        agency, institution, or consortium is operating a program 
        leading to State approved teacher certification.
            ``(2) Preference.--The Secretary shall give preference to 
        State educational agencies, institutions, and consortia that 
        submit proposals that provide for cost sharing with respect to 
        the program involved.

    ``(e) Continuation of Programs.--Upon successful completion of the 
demonstration phase of teacher certification programs funded under this 
section, the continued operation of the teacher certification programs 
shall not be the responsibility of the Secretary. A State educational 
agency, institution, or consortium that desires to continue a program 
that is funded under this section after such funding is terminated shall 
use amounts derived from tuition charges to continue such program.
    ``(f) Funding Limitation.--The total amount obligated by the 
Secretary under this section for any fiscal year may not exceed 
$10,000,000.

``SEC. 2307. REPORTING REQUIREMENTS. <<NOTE: 20 USC 6677.>> 

    ``(a) <<NOTE: Deadline.>>  Report Required.--Not later than March 
31, 2006, the Secretary (in consultation with the Secretary of Defense 
and the Secretary of Transportation) and the Comptroller General of the 
United States shall submit to Congress a report on the effectiveness of 
the Program in the recruitment and retention of qualified personnel by 
local educational agencies and public charter schools.

    ``(b) Elements of Report.--The report submitted under subsection (a) 
shall include information on the following:
            ``(1) The number of participants in the Program.
            ``(2) The schools in which the participants are employed.
            ``(3) The grade levels at which the participants teach.
            ``(4) The academic subjects taught by the participants.
            ``(5) The rates of retention of the participants by the 
        local educational agencies and public charter schools employing 
        the participants.
            ``(6) Such other matters as the Secretary or the Comptroller 
        General of the United States, as the case may be, considers to 
        be appropriate.

               ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

``SEC. 2311. PURPOSES. <<NOTE: 20 USC 6681.>> 

    ``The purposes of this chapter are--
            ``(1) to establish a program to recruit and retain highly 
        qualified mid-career professionals (including highly qualified 
        paraprofessionals), and recent graduates of an institution of 
        higher education, as teachers in high-need schools, including 
        recruiting teachers through alternative routes to certification; 
        and
            ``(2) to encourage the development and expansion of 
        alternative routes to certification under State-approved 
        programs that enable individuals to be eligible for teacher 
        certification within a reduced period of time, relying on the 
        experience, expertise, and academic qualifications of an 
        individual, or other

[[Page 115 STAT. 1656]]

        factors in lieu of traditional course work in the field of 
        education.

``SEC. 2312. DEFINITIONS. <<NOTE: 20 USC 6682.>> 

    ``In this chapter:
            ``(1) Eligible participant.--The term `eligible participant' 
        means--
                    ``(A) an individual with substantial, demonstrable 
                career experience, including a highly qualified 
                paraprofessional; or
                    ``(B) an individual who is a graduate of an 
                institution of higher education who--
                          ``(i) has graduated not more than 3 years 
                      before applying to an eligible entity to teach 
                      under this chapter; and
                          ``(ii) in the case of an individual wishing to 
                      teach in a secondary school, has completed an 
                      academic major (or courses totaling an equivalent 
                      number of credit hours) in the academic subject 
                      that the individual will teach.
            ``(2) High-need local educational agency.--The term `high-
        need local educational agency' has the meaning given the term in 
        section 2102.
            ``(3) High-need school.--The term `high-need school' means a 
        school that--
                    ``(A) is located in an area in which the percentage 
                of students from families with incomes below the poverty 
                line is 30 percent or more; or
                    ``(B)(i) is located in an area with a high 
                percentage of out-of-field teachers, as defined in 
                section 2102;
                    ``(ii) is within the top quartile of elementary 
                schools and secondary schools statewide, as ranked by 
                the number of unfilled, available teacher positions at 
                the schools;
                    ``(iii) is located in an area in which there is a 
                high teacher turnover rate; or
                    ``(iv) is located in an area in which there is a 
                high percentage of teachers who are not certified or 
                licensed.

``SEC. 2313. GRANT PROGRAM. <<NOTE: 20 USC 6683.>> 

    ``(a) In General.--The Secretary may establish a program to make 
grants on a competitive basis to eligible entities to develop State and 
local teacher corps or other programs to establish, expand, or enhance 
teacher recruitment and retention efforts.
    ``(b) Eligible Entity.--To be eligible to receive a grant under this 
section, an entity shall be--
            ``(1) a State educational agency;
            ``(2) a high-need local educational agency;
            ``(3) a for-profit or nonprofit organization that has a 
        proven record of effectively recruiting and retaining highly 
        qualified teachers, in a partnership with a high-need local 
        educational agency or with a State educational agency;
            ``(4) an institution of higher education, in a partnership 
        with a high-need local educational agency or with a State 
        educational agency;
            ``(5) a regional consortium of State educational agencies; 
        or
            ``(6) a consortium of high-need local educational agencies.

[[Page 115 STAT. 1657]]

    ``(c) Priority.--In making such a grant, the Secretary shall give 
priority to a partnership or consortium that includes a high-need State 
educational agency or local educational agency.
    ``(d) Application.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section, an entity described in subsection (b) shall submit 
        an application to the Secretary at such time, in such manner, 
        and containing such information as the Secretary may require.
            ``(2) Contents.--The application shall describe--
                    ``(A) one or more target recruitment groups on which 
                the applicant will focus its recruitment efforts;
                    ``(B) the characteristics of each such target group 
                that--
                          ``(i) show the knowledge and experience of the 
                      group's members; and
                          ``(ii) demonstrate that the members are 
                      eligible to achieve the objectives of this 
                      section;
                    ``(C) describe how the applicant will use funds 
                received under this section to develop a teacher corps 
                or other program to recruit and retain highly qualified 
                midcareer professionals (which may include highly 
                qualified paraprofessionals), recent college graduates, 
                and recent graduate school graduates, as highly 
                qualified teachers in high-need schools operated by 
                high-need local educational agencies;
                    ``(D) explain how the program carried out under the 
                grant will meet the relevant State laws (including 
                regulations) related to teacher certification or 
                licensing and facilitate the certification or licensing 
                of such teachers;
                    ``(E) describe how the grant will increase the 
                number of highly qualified teachers, in high-need 
                schools operated by high-need local educational agencies 
                (in urban or rural school districts), and in high-need 
                academic subjects, in the jurisdiction served by the 
                applicant; and
                    ``(F) describe how the applicant will collaborate, 
                as needed, with other institutions, agencies, or 
                organizations to recruit (particularly through 
                activities that have proven effective in retaining 
                highly qualified teachers), train, place, support, and 
                provide teacher induction programs to program 
                participants under this chapter, including providing 
                evidence of the commitment of the institutions, 
                agencies, or organizations to the applicant's programs.

    ``(e) Duration of Grants.--The Secretary may make grants under this 
section for periods of 5 years. At the end of the 5-year period for such 
a grant, the grant recipient may apply for an additional grant under 
this section.
    ``(f) Equitable Distribution.--To the extent practicable, the 
Secretary shall ensure an equitable geographic distribution of grants 
under this section among the regions of the United States.
    ``(g) Uses of Funds.--
            ``(1) In general.--An entity that receives a grant under 
        this section shall use the funds made available through the 
        grant to develop a teacher corps or other program in order to 
        establish, expand, or enhance a teacher recruitment and 
        retention program for highly qualified mid-career professionals 
        (including highly qualified paraprofessionals), and recent 
        graduates of an institution of higher education, who are 
        eligible

[[Page 115 STAT. 1658]]

        participants, including activities that provide alternative 
        routes to teacher certification.
            ``(2) Authorized activities.--The entity shall use the funds 
        to carry out a program that includes two or more of the 
        following activities:
                    ``(A) Providing scholarships, stipends, bonuses, and 
                other financial incentives, that are linked to 
                participation in activities that have proven effective 
                in retaining teachers in high-need schools operated by 
                high-need local educational agencies, to all eligible 
                participants, in an amount not to exceed $5,000 per 
                participant.
                    ``(B) Carrying out pre- and post-placement induction 
                or support activities that have proven effective in 
                recruiting and retaining teachers, such as--
                          ``(i) teacher mentoring;
                          ``(ii) providing internships;
                          ``(iii) providing high-quality, preservice 
                      coursework; and
                          ``(iv) providing high-quality, sustained 
                      inservice professional development.
                    ``(C) Carrying out placement and ongoing activities 
                to ensure that teachers are placed in fields in which 
                the teachers are highly qualified to teach and are 
                placed in high-need schools.
                    ``(D) Making payments to pay for costs associated 
                with accepting teachers recruited under this section 
                from among eligible participants or provide financial 
                incentives to prospective teachers who are eligible 
                participants.
                    ``(E) Collaborating with institutions of higher 
                education in developing and implementing programs to 
                facilitate teacher recruitment (including teacher 
                credentialing) and teacher retention programs.
                    ``(F) Carrying out other programs, projects, and 
                activities that are designed and have proven to be 
                effective in recruiting and retaining teachers, and that 
                the Secretary determines to be appropriate.
                    ``(G) Developing long-term recruitment and retention 
                strategies including developing--
                          ``(i) a statewide or regionwide clearinghouse 
                      for the recruitment and placement of teachers;
                          ``(ii) administrative structures to develop 
                      and implement programs to provide alternative 
                      routes to certification;
                          ``(iii) reciprocity agreements between or 
                      among States for the certification or licensing of 
                      teachers; or
                          ``(iv) other long-term teacher recruitment and 
                      retention strategies.
            ``(3) Effective programs.--The entity shall use the funds 
        only for programs that have proven to be effective in both 
        recruiting and retaining teachers.

    ``(h) Requirements.--
            ``(1) Targeting.--An entity that receives a grant under this 
        section to carry out a program shall ensure that participants in 
        the program recruited with funds made available under this 
        section are placed in high-need schools operated

[[Page 115 STAT. 1659]]

        by high-need local educational agencies. In placing the 
        participants in the schools, the entity shall give priority to 
        the schools that are located in areas with the highest 
        percentages of students from families with incomes below the 
        poverty line.
            ``(2) Supplement, not supplant.--Funds made available under 
        this section shall be used to supplement, and not supplant, 
        State and local public funds expended for teacher recruitment 
        and retention programs, including programs to recruit the 
        teachers through alternative routes to certification.
            ``(3) Partnerships and consortia of local educational 
        agencies.--In the case of a partnership established by a local 
        educational agency to carry out a program under this chapter, or 
        a consortium of such agencies established to carry out a program 
        under this chapter, the local educational agency or consortium 
        shall not be eligible to receive funds through a State program 
        under this chapter.

    ``(i) Period of Service.--A program participant in a program under 
this chapter who receives training through the program shall serve a 
high-need school operated by a high-need local educational agency for at 
least 3 years.
    ``(j) <<NOTE: Requirements.>>  Repayment.--The Secretary shall 
establish such requirements as the Secretary determines to be 
appropriate to ensure that program participants who receive a stipend or 
other financial incentive under subsection (g)(2)(A), but fail to 
complete their service obligation under subsection (i), repay all or a 
portion of such stipend or other incentive.
    ``(k) Administrative Funds.--No entity that receives a grant under 
this section shall use more than 5 percent of the funds made available 
through the grant for the administration of a program under this chapter 
carried out under the grant.

``SEC. 2314. <<NOTE: 20 USC 6684.>> EVALUATION AND ACCOUNTABILITY FOR 
            RECRUITING AND RETAINING TEACHERS.

    ``(a) Evaluation.--Each entity that receives a grant under this 
chapter shall conduct--
            ``(1) an interim evaluation of the program funded under the 
        grant at the end of the third year of the grant period; and
            ``(2) a final evaluation of the program at the end of the 
        fifth year of the grant period.

    ``(b) Contents.--In conducting the evaluation, the entity shall 
describe the extent to which local educational agencies that received 
funds through the grant have met the goals relating to teacher 
recruitment and retention described in the application.
    ``(c) Reports.--The entity shall prepare and submit to the Secretary 
and to Congress interim and final reports containing the results of the 
interim and final evaluations, respectively.
    ``(d) Revocation.--If the Secretary determines that the recipient of 
a grant under this chapter has not made substantial progress in meeting 
such goals and the objectives of the grant by the end of the third year 
of the grant period, the Secretary--
            ``(1) shall revoke the payment made for the fourth year of 
        the grant period; and
            ``(2) shall not make a payment for the fifth year of the 
        grant period.

[[Page 115 STAT. 1660]]

                     ``CHAPTER C--GENERAL PROVISIONS

``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6691.>> 

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart $150,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 5 succeeding fiscal years.
    ``(b) Reservation.--From the funds appropriated to carry out this 
subpart for fiscal year 2002, the Secretary shall reserve not more than 
$30,000,000 to carry out chapter A.

                  ``Subpart 2--National Writing Project

``SEC. 2331. PURPOSES. <<NOTE: 20 USC 6701.>> 

    ``The purposes of this subpart are--
            ``(1) to support and promote the expansion of the National 
        Writing Project network of sites so that teachers in every 
        region of the United States will have access to a National 
        Writing Project program;
            ``(2) to ensure the consistent high quality of the sites 
        through ongoing review, evaluation, and technical assistance;
            ``(3) to support and promote the establishment of programs 
        to disseminate effective practices and research findings about 
        the teaching of writing; and
            ``(4) to coordinate activities assisted under this subpart 
        with activities assisted under this Act.

``SEC. 2332. NATIONAL WRITING PROJECT. <<NOTE: 20 USC 6702.>> 

    ``(a) Authorization.--The Secretary is authorized to award a grant 
to the National Writing Project, a nonprofit educational organization 
that has as its primary purpose the improvement of the quality of 
student writing and learning (hereafter in this section referred to as 
the `grantee') to improve the teaching of writing and the use of writing 
as a part of the learning process in our Nation's classrooms.
    ``(b) Requirements of Grant.--The grant shall provide that--
            ``(1) the grantee will enter into contracts with 
        institutions of higher education or other nonprofit educational 
        providers (hereafter in this section referred to as 
        `contractors') under which the contractors will agree to 
        establish, operate, and provide the non-Federal share of the 
        cost of teacher training programs in effective approaches and 
        processes for the teaching of writing;
            ``(2) funds made available by the Secretary to the grantee 
        pursuant to any contract entered into under this section will be 
        used to pay the Federal share of the cost of establishing and 
        operating teacher training programs as provided in paragraph 
        (1); and
            ``(3) the grantee will meet such other conditions and 
        standards as the Secretary determines to be necessary to assure 
        compliance with the provisions of this section and will provide 
        such technical assistance as may be necessary to carry out the 
        provisions of this section.

    ``(c) Teacher Training Programs.--The teacher training programs 
authorized in subsection (a) shall--
            ``(1) be conducted during the school year and during the 
        summer months;

[[Page 115 STAT. 1661]]

            ``(2) train teachers who teach grades kindergarten through 
        college;
            ``(3) select teachers to become members of a National 
        Writing Project teacher network whose members will conduct 
        writing workshops for other teachers in the area served by each 
        National Writing Project site; and
            ``(4) encourage teachers from all disciplines to participate 
        in such teacher training programs.

    ``(d) Federal Share.--
            ``(1) In general.--Except as provided in paragraph (2) or 
        (3) and for purposes of subsection (a), the term `Federal share' 
        means, with respect to the costs of teacher training programs 
        authorized in subsection (a), 50 percent of such costs to the 
        contractor.
            ``(2) Waiver.--The Secretary may waive the provisions of 
        paragraph (1) on a case-by-case basis if the National Advisory 
        Board described in subsection (e) determines, on the basis of 
        financial need, that such waiver is necessary.
            ``(3) Maximum.--The Federal share of the costs of teacher 
        training programs conducted pursuant to subsection (a) may not 
        exceed $100,000 for any one contractor, or $200,000 for a 
        statewide program administered by any one contractor in at least 
        five sites throughout the State.

    ``(e) National Advisory Board.--
            ``(1) Establishment.--The National Writing Project shall 
        establish and operate a National Advisory Board.
            ``(2) Composition.--The National Advisory Board established 
        pursuant to paragraph (1) shall consist of--
                    ``(A) national educational leaders;
                    ``(B) leaders in the field of writing; and
                    ``(C) such other individuals as the National Writing 
                Project determines necessary.
            ``(3) Duties.--The National Advisory Board established 
        pursuant to paragraph (1) shall--
                    ``(A) advise the National Writing Project on 
                national issues related to student writing and the 
                teaching of writing;
                    ``(B) review the activities and programs of the 
                National Writing Project; and
                    ``(C) support the continued development of the 
                National Writing Project.

    ``(f) Evaluation.--
            ``(1) In general.--The Secretary shall conduct an 
        independent evaluation by grant or contract of the teacher 
        training programs administered pursuant to this subpart. Such 
        evaluation shall specify the amount of funds expended by the 
        National Writing Project and each contractor receiving 
        assistance under this section for administrative costs. The 
        results of such evaluation shall be made available to the 
        appropriate committees of Congress.
            ``(2) Funding limitation.--The Secretary shall reserve not 
        more than $150,000 from the total amount appropriated pursuant 
        to the authority of subsection (h) for fiscal year 2002 and each 
        of the 5 succeeding fiscal years to conduct the evaluation 
        described in paragraph (1).

    ``(g) Application Review.--

[[Page 115 STAT. 1662]]

            ``(1) Review board.--The National Writing Project shall 
        establish and operate a National Review Board that shall consist 
        of--
                    ``(A) leaders in the field of research in writing; 
                and
                    ``(B) such other individuals as the National Writing 
                Project deems necessary.
            ``(2) Duties.--The National Review Board shall--
                    ``(A) review all applications for assistance under 
                this subsection; and
                    ``(B) recommend applications for assistance under 
                this subsection for funding by the National Writing 
                Project.

    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subpart $15,000,000 as may be necessary 
for fiscal year 2002 and each of the 5 succeeding fiscal years.

``Subpart 3--Civic Education <<NOTE: Education for Democracy Act.>> 

``SEC. 2341. SHORT TITLE. <<NOTE: 20 USC 6711.>> 

    ``This subpart may be cited as the `Education for Democracy Act'.

``SEC. 2342. PURPOSE. <<NOTE: 20 USC 6712.>> 

    ``It is the purpose of this subpart--
            ``(1) to improve the quality of civics and government 
        education by educating students about the history and principles 
        of the Constitution of the United States, including the Bill of 
        Rights;
            ``(2) to foster civic competence and responsibility; and
            ``(3) to improve the quality of civic education and economic 
        education through cooperative civic education and economic 
        education exchange programs with emerging democracies.

``SEC. 2343. GENERAL AUTHORITY. <<NOTE: 20 USC 6713.>> 

    ``(a) Authority.--The Secretary is authorized to award grants to, or 
enter into contracts with--
            ``(1) the Center for Civic Education, to carry out civic 
        education activities under sections 2344 and 2345;
            ``(2) the National Council on Economic Education, to carry 
        out economic education activities under section 2345; and
            ``(3) organizations experienced in the development of 
        curricula and programs in civics and government education and 
        economic education for students in elementary schools and 
        secondary schools in countries other than the United States, to 
        carry out civic education activities under section 2345.

    ``(b) Distribution for Cooperative Civic Education and Economic 
Education Exchange Programs.--
            ``(1) Limitation.--Not more than 40 percent of the amount 
        appropriated under section 2346 for a fiscal year shall be used 
        to carry out section 2345.
            ``(2) Distribution.--Of the amount used to carry out section 
        2345 for a fiscal year (consistent with paragraph (1)), the 
        Secretary shall use--
                    ``(A) 37.5 percent for a grant or contract for the 
                Center for Civic Education;
                    ``(B) 37.5 percent for a grant or contract for the 
                National Council on Economic Education; and

[[Page 115 STAT. 1663]]

                    ``(C) 25 percent for not less than 1, but not more 
                than 3, grants or contracts for organizations described 
                in subsection (a)(3).

``SEC. 2344. WE THE PEOPLE PROGRAM. <<NOTE: 20 USC 6714.>> 

    ``(a) The Citizen and the Constitution.--
            ``(1) Educational activities.--The Center for Civic 
        Education--
                    ``(A) shall use funds made available under grants or 
                contracts under section 2343(a)(1)--
                          ``(i) to continue and expand the educational 
                      activities of the program entitled the `We the 
                      People . . . The Citizen and the Constitution' 
                      program administered by such center;
                          ``(ii) to carry out activities to enhance 
                      student attainment of challenging academic content 
                      standards in civics and government;
                          ``(iii) to provide a course of instruction on 
                      the basic principles of the Nation's 
                      constitutional democracy and the history of the 
                      Constitution of the United States, including the 
                      Bill of Rights;
                          ``(iv) to provide, at the request of a 
                      participating school, school and community 
                      simulated congressional hearings following the 
                      course of instruction described in clause (iii); 
                      and
                          ``(v) to provide an annual national 
                      competition of simulated congressional hearings 
                      for secondary school students who wish to 
                      participate in such a program; and
                    ``(B) may use funds made available under grants or 
                contracts under section 2343(a)(1)--
                          ``(i) to provide advanced, sustained, and 
                      ongoing training of teachers about the 
                      Constitution of the United States and the 
                      political system of the United States;
                          ``(ii) to provide materials and methods of 
                      instruction, including teacher training, that 
                      utilize the latest advancements in educational 
                      technology; and
                          ``(iii) to provide civic education materials 
                      and services to address specific problems such as 
                      the prevention of school violence and the abuse of 
                      drugs and alcohol.
            ``(2) Availability of program.--The education program 
        authorized under this subsection shall be made available to 
        public and private elementary schools and secondary schools, 
        including Bureau funded schools, in the 435 congressional 
        districts, and in the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, Guam, American 
        Samoa, and the Commonwealth of the Northern Mariana Islands.

    ``(b) Project Citizen.--
            ``(1) Educational activities.--The Center for Civic 
        Education--
                    ``(A) shall use funds made available under grants or 
                contracts under section 2343(a)(1)--
                          ``(i) to continue and expand the educational 
                      activities of the program entitled the `We the 
                      People . . . Project Citizen' program administered 
                      by the Center;

[[Page 115 STAT. 1664]]

                          ``(ii) to carry out activities to enhance 
                      student attainment of challenging academic content 
                      standards in civics and government;
                          ``(iii) to provide a course of instruction at 
                      the middle school level on the roles of State and 
                      local governments in the Federal system 
                      established by the Constitution of the United 
                      States; and
                          ``(iv) to provide an annual national showcase 
                      or competition; and
                    ``(B) may use funds made available under grants or 
                contracts under section 2343(a)(1)--
                          ``(i) to provide optional school and community 
                      simulated State legislative hearings;
                          ``(ii) to provide advanced, sustained, and 
                      ongoing training of teachers on the roles of State 
                      and local governments in the Federal system 
                      established by the Constitution of the United 
                      States;
                          ``(iii) to provide materials and methods of 
                      instruction, including teacher training, that 
                      utilize the latest advancements in educational 
                      technology; and
                          ``(iv) to provide civic education materials 
                      and services to address specific problems such as 
                      the prevention of school violence and the abuse of 
                      drugs and alcohol.
            ``(2) Availability of program.--The education program 
        authorized under this subsection shall be made available to 
        public and private middle schools, including Bureau funded 
        schools, in the 50 States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.

    ``(c) Bureau-Funded School Defined.--In this section, the term 
`Bureau-funded school' has the meaning given such term in section 1146 
of the Education Amendments of 1978 (25 U.S.C. 2026).

``SEC. 2345. <<NOTE: 20 USC 6715.>> COOPERATIVE CIVIC EDUCATION AND 
            ECONOMIC EDUCATION EXCHANGE PROGRAMS.

    ``(a) Cooperative Education Exchange Programs.--The Center for Civic 
Education, the National Council on Economic Education, and organizations 
described in section 2343(a)(3) shall use funds made available under 
grants or contracts under section 2343 to carry out cooperative 
education exchange programs in accordance with this section.
    ``(b) Purpose.--The purpose of the cooperative education exchange 
programs carried out under this section shall be--
            ``(1) to make available to educators from eligible countries 
        exemplary curriculum and teacher training programs in civics and 
        government education, and economics education, developed in the 
        United States;
            ``(2) to assist eligible countries in the adaptation, 
        implementation, and institutionalization of such programs;
            ``(3) to create and implement civics and government 
        education, and economic education, programs for students that 
        draw upon the experiences of the participating eligible 
        countries;
            ``(4) to provide a means for the exchange of ideas and 
        experiences in civics and government education, and economic

[[Page 115 STAT. 1665]]

        education, among political, educational, governmental, and 
        private sector leaders of participating eligible countries; and
            ``(5) to provide support for--
                    ``(A) independent research and evaluation to 
                determine the effects of educational programs on 
                students' development of the knowledge, skills, and 
                traits of character essential for the preservation and 
                improvement of constitutional democracy; and
                    ``(B) effective participation in, and the 
                preservation and improvement of, an efficient market 
                economy.

    ``(c) Activities.--In carrying out the cooperative education 
exchange programs assisted under this section, the Center for Civic 
Education, the National Council on Economic Education, and organizations 
described in section 2343(a)(3) shall--
            ``(1) provide to the participants from eligible countries--
                    ``(A) seminars on the basic principles of United 
                States constitutional democracy and economic system, 
                including seminars on the major governmental and 
                economic institutions and systems in the United States, 
                and visits to such institutions;
                    ``(B) visits to school systems, institutions of 
                higher education, and nonprofit organizations conducting 
                exemplary programs in civics and government education, 
                and economic education, in the United States;
                    ``(C) translations and adaptations with respect to 
                United States civics and government education, and 
                economic education, curricular programs for students and 
                teachers, and in the case of training programs for 
                teachers, translations and adaptations into forms useful 
                in schools in eligible countries, and joint research 
                projects in such areas; and
                    ``(D) independent research and evaluation 
                assistance--
                          ``(i) to determine the effects of the 
                      cooperative education exchange programs on 
                      students' development of the knowledge, skills, 
                      and traits of character essential for the 
                      preservation and improvement of constitutional 
                      democracy; and
                          ``(ii) to identify effective participation in, 
                      and the preservation and improvement of, an 
                      efficient market economy;
            ``(2) provide to the participants from the United States--
                    ``(A) seminars on the histories, economies, and 
                systems of government of eligible countries;
                    ``(B) visits to school systems, institutions of 
                higher education, and organizations conducting exemplary 
                programs in civics and government education, and 
                economic education, located in eligible countries;
                    ``(C) assistance from educators and scholars in 
                eligible countries in the development of curricular 
                materials on the history, government, and economy of 
                such countries that are useful in United States 
                classrooms;
                    ``(D) opportunities to provide onsite demonstrations 
                of United States curricula and pedagogy for educational 
                leaders in eligible countries; and
                    ``(E) independent research and evaluation assistance 
                to determine--

[[Page 115 STAT. 1666]]

                          ``(i) the effects of the cooperative education 
                      exchange programs assisted under this section on 
                      students' development of the knowledge, skills, 
                      and traits of character essential for the 
                      preservation and improvement of constitutional 
                      democracy; and
                          ``(ii) effective participation in, and 
                      improvement of, an efficient market economy; and
            ``(3) assist participants from eligible countries and the 
        United States to participate in international conferences on 
        civics and government education, and economic education, for 
        educational leaders, teacher trainers, scholars in related 
        disciplines, and educational policymakers.

    ``(d) Participants.--The primary participants in the cooperative 
education exchange programs assisted under this section shall be 
educational leaders in the areas of civics and government education, and 
economic education, including teachers, curriculum and teacher training 
specialists, scholars in relevant disciplines, and educational 
policymakers, and government and private sector leaders from the United 
States and eligible countries.
    ``(e) Consultation.--The Secretary may award a grant to, or enter 
into a contract with, the entities described in section 2343 to carry 
out programs assisted under this section only if the Secretary of State 
concurs with the Secretary that such grant, or contract, respectively, 
is consistent with the foreign policy of the United States.
    ``(f) Avoidance of Duplication.--With the concurrence of the 
Secretary of State, the Secretary shall ensure that--
            ``(1) the activities carried out under the programs assisted 
        under this section are not duplicative of other activities 
        conducted in eligible countries; and
            ``(2) any institutions in eligible countries, with which the 
        Center for Civic Education, the National Council on Economic 
        Education, or organizations described in section 2343(a)(3) may 
        work in conducting such activities, are creditable.

    ``(g) Eligible Country Defined.--In this section, the term `eligible 
country' means a Central European country, an Eastern European country, 
Lithuania, Latvia, Estonia, the independent states of the former Soviet 
Union as defined in section 3 of the FREEDOM Support Act (22 U.S.C. 
5801), the Republic of Ireland, the province of Northern Ireland in the 
United Kingdom, and any developing country (as such term is defined in 
section 209(d) of the Education for the Deaf Act) if the Secretary, with 
the concurrence of the Secretary of State, determines that such 
developing country has a democratic form of government.

``SEC. 2346. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6716.>> 

    ``There are authorized to be appropriated to carry out this subpart 
$30,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.

          ``Subpart 4--Teaching of Traditional American History

``SEC. 2351. ESTABLISHMENT OF PROGRAM. <<NOTE: 20 USC 6721.>> 

    ``(a) In General.--The Secretary may establish and implement a 
program to be known as the `Teaching American History Grant

[[Page 115 STAT. 1667]]

Program', under which the Secretary shall award grants on a competitive 
basis to local educational agencies--
            ``(1) to carry out activities to promote the teaching of 
        traditional American history in elementary schools and secondary 
        schools as a separate academic subject (not as a component of 
        social studies); and
            ``(2) for the development, implementation, and strengthening 
        of programs to teach traditional American history as a separate 
        academic subject (not as a component of social studies) within 
        elementary school and secondary school curricula, including the 
        implementation of activities--
                    ``(A) to improve the quality of instruction; and
                    ``(B) to provide professional development and 
                teacher education activities with respect to American 
                history.

    ``(b) Required Partnership.--A local educational agency that 
receives a grant under subsection (a) shall carry out activities under 
the grant in partnership with one or more of the following:
            ``(1) An institution of higher education.
            ``(2) A nonprofit history or humanities organization.
            ``(3) A library or museum.

    ``(c) Application.--To be eligible to receive an grant under this 
section, a local educational agency shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require.

``SEC. 2352. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6722.>> 

    ``There are authorized to be appropriated to carry out this subpart 
such sums as may be necessary for fiscal year 2002 and each of the 5 
succeeding fiscal years.

  ``Subpart 5--Teacher Liability Protection <<NOTE: Paul D. Coverdell 
Teacher Protection Act of 2001.>> 

``SEC. 2361. SHORT TITLE. <<NOTE: 20 USC 6731.>> 

    ``This subpart may be cited as the `Paul D. Coverdell Teacher 
Protection Act of 2001'.

``SEC. 2362. PURPOSE. <<NOTE: 20 USC 6732.>> 

    ``The purpose of this subpart is to provide teachers, principals, 
and other school professionals the tools they need to undertake 
reasonable actions to maintain order, discipline, and an appropriate 
educational environment.

``SEC. 2363. DEFINITIONS. <<NOTE: 20 USC 6733.>> 

    ``For purposes of this subpart:
            ``(1) Economic loss.--The term `economic loss' means any 
        pecuniary loss resulting from harm (including the loss of 
        earnings or other benefits related to employment, medical 
        expense loss, replacement services loss, loss due to death, 
        burial costs, and loss of business or employment opportunities) 
        to the extent recovery for such loss is allowed under applicable 
        State law.
            ``(2) Harm.--The term `harm' includes physical, nonphysical, 
        economic, and noneconomic losses.
            ``(3) Noneconomic loss.--The term `noneconomic loss' means 
        loss for physical or emotional pain, suffering, inconvenience, 
        physical impairment, mental anguish, disfigurement, loss of 
        enjoyment of life, loss of society or companionship, loss of 
        consortium (other than loss of domestic service), hedonic

[[Page 115 STAT. 1668]]

        damages, injury to reputation, or any other nonpecuniary loss of 
        any kind or nature.
            ``(4) School.--The term `school' means a public or private 
        kindergarten, a public or private elementary school or secondary 
        school, or a home school.
            ``(5) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, any other territory or possession of the United States, 
        or any political subdivision of any such State, territory, or 
        possession.
            ``(6) Teacher.--The term `teacher' means--
                    ``(A) a teacher, instructor, principal, or 
                administrator;
                    ``(B) another educational professional who works in 
                a school;
                    ``(C) a professional or nonprofessional employee 
                who--
                          ``(i) works in a school; and
                          ``(ii)(I) in the employee's job, maintains 
                      discipline or ensures safety; or
                          ``(II) in an emergency, is called on to 
                      maintain discipline or ensure safety; or
                    ``(D) an individual member of a school board (as 
                distinct from the board).

``SEC. 2364. APPLICABILITY. <<NOTE: 20 USC 6734.>> 

    ``This subpart shall only apply to States that receive funds under 
this Act, and shall apply to such a State as a condition of receiving 
such funds.

``SEC. 2365. <<NOTE: 20 USC 6735.>> PREEMPTION AND ELECTION OF STATE 
            NONAPPLICABILITY.

    ``(a) Preemption.--This subpart preempts the laws of any State to 
the extent that such laws are inconsistent with this subpart, except 
that this subpart shall not preempt any State law that provides 
additional protection from liability relating to teachers.
    ``(b) Election of State Regarding Nonapplicability.--This subpart 
shall not apply to any civil action in a State court against a teacher 
with respect to claims arising within that State if such State enacts a 
statute in accordance with State requirements for enacting legislation--
            ``(1) citing the authority of this subsection;
            ``(2) declaring the election of such State that this subpart 
        shall not apply, as of a date certain, to such civil action in 
        the State; and
            ``(3) containing no other provisions.

``SEC. 2366. LIMITATION ON LIABILITY FOR TEACHERS. <<NOTE: 20 USC 
            6736.>> 

    ``(a) Liability Protection for Teachers.--Except as provided in 
subsection (b), no teacher in a school shall be liable for harm caused 
by an act or omission of the teacher on behalf of the school if--
            ``(1) the teacher was acting within the scope of the 
        teacher's employment or responsibilities to a school or 
        governmental entity;
            ``(2) the actions of the teacher were carried out in 
        conformity with Federal, State, and local laws (including rules 
        and regulations) in furtherance of efforts to control, 
        discipline,

[[Page 115 STAT. 1669]]

        expel, or suspend a student or maintain order or control in the 
        classroom or school;
            ``(3) if appropriate or required, the teacher was properly 
        licensed, certified, or authorized by the appropriate 
        authorities for the activities or practice involved in the State 
        in which the harm occurred, where the activities were or 
        practice was undertaken within the scope of the teacher's 
        responsibilities;
            ``(4) the harm was not caused by willful or criminal 
        misconduct, gross negligence, reckless misconduct, or a 
        conscious, flagrant indifference to the rights or safety of the 
        individual harmed by the teacher; and
            ``(5) the harm was not caused by the teacher operating a 
        motor vehicle, vessel, aircraft, or other vehicle for which the 
        State requires the operator or the owner of the vehicle, craft, 
        or vessel to--
                    ``(A) possess an operator's license; or
                    ``(B) maintain insurance.

    ``(b) Exceptions to Teacher Liability Protection.--If the laws of a 
State limit teacher liability subject to one or more of the following 
conditions, such conditions shall not be construed as inconsistent with 
this section:
            ``(1) A State law that requires a school or governmental 
        entity to adhere to risk management procedures, including 
        mandatory training of teachers.
            ``(2) A State law that makes the school or governmental 
        entity liable for the acts or omissions of its teachers to the 
        same extent as an employer is liable for the acts or omissions 
        of its employees.
            ate law that makes a limitation of liability inapplicable if 
        the civil action was brought by an officer of a State or local 
        government pursuant to State or local law.

    ``(c) Limitation on Punitive Damages Based on the Actions of 
Teachers.--
            ``(1) General rule.--Punitive damages may not be awarded 
        against a teacher in an action brought for harm based on the act 
        or omission of a teacher acting within the scope of the 
        teacher's employment or responsibilities to a school or 
        governmental entityunless the claimant establishes by clear and 
        convincing evidence that the harm was proximately caused by an 
        act or omission of such teacher that constitutes willful or 
        criminal misconduct, or a conscious, flagrant indifference to 
        the rights or safety of the individual harmed.
            ``(2) Construction.--Paragraph (1) does not create a cause 
        of action for punitive damages and does not preempt or supersede 
        any Federal or State law to the extent that such law would 
        further limit the award of punitive damages.

    ``(d) Exceptions to Limitations on Liability.--
            ``(1) In general.--The limitations on the liability of a 
        teacher under this subpart shall not apply to any misconduct 
        that--
                    ``(A) constitutes a crime of violence (as that term 
                is defined in section 16 of title 18, United States 
                Code) or act of international terrorism (as that term is 
                defined in section 2331 of title 18, United States Code) 
                for which the defendant has been convicted in any court;

[[Page 115 STAT. 1670]]

                    ``(B) involves a sexual offense, as defined by 
                applicable State law, for which the defendant has been 
                convicted in any court;
                    ``(C) involves misconduct for which the defendant 
                has been found to have violated a Federal or State civil 
                rights law; or
                    ``(D) where the defendant was under the influence 
                (as determined pursuant to applicable State law) of 
                intoxicating alcohol or any drug at the time of the 
                misconduct.
            ``(2) Hiring.--The limitations on the liability of a teacher 
        under this subpart shall not apply to misconduct during 
        background investigations, or during other actions, involved in 
        the hiring of a teacher.

    ``(e) Rules of Construction.--
            ``(1) Concerning responsibility of teachers to schools and 
        governmental entities.--Nothing in this section shall be 
        construed to affect any civil action brought by any school or 
        any governmental entity against any teacher of such school.
            ``(2) Concerning corporal punishment.--Nothing in this 
        subpart shall be construed to affect any State or local law 
        (including a rule or regulation) or policy pertaining to the use 
        of corporal punishment.

``SEC. 2367. <<NOTE: 20 USC 6737.>> ALLOCATION OF RESPONSIBILITY FOR 
            NONECONOMIC LOSS.

    ``(a) General Rule.--In any civil action against a teacher, based on 
an act or omission of a teacher acting within the scope of the teacher's 
employment or responsibilities to a school or governmental entity, the 
liability of the teacher for noneconomic loss shall be determined in 
accordance with subsection (b).
    ``(b) Amount of Liability.--
            ``(1) In general.--
                    ``(A) Liability.--Each defendant who is a teacher 
                shall be liable only for the amount of noneconomic loss 
                allocated to that defendant in direct proportion to the 
                percentage of responsibility of that defendant 
                (determined in accordance with paragraph (2)) for the 
                harm to the claimant with respect to which that 
                defendant is liable.
                    ``(B) Separate judgment.--The court shall render a 
                separate judgment against each defendant in an amount 
                determined pursuant to subparagraph (A).
            ``(2) Percentage of responsibility.--For purposes of 
        determining the amount of noneconomic loss allocated to a 
        defendant who is a teacher under this section, the trier of fact 
        shall determine the percentage of responsibility of each person 
        responsible for the claimant's harm, whether or not such person 
        is a party to the action.

    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to preempt or supersede any Federal or State law that further 
limits the application of joint liability in a civil action described in 
subsection (a), beyond the limitations established in this section.

``SEC. 2368. EFFECTIVE DATE. <<NOTE: 20 USC 6738.>> 

    ``(a) In General.--This subpart shall take effect 90 days after the 
date of enactment of the No Child Left Behind Act of 2001.
    ``(b) Application.--This subpart applies to any claim for harm 
caused by an act or omission of a teacher if that claim is filed

[[Page 115 STAT. 1671]]

on or after the effective date of the No Child Left Behind Act of 2001 
without regard to whether the harm that is the subject of the claim or 
the conduct that caused the harm occurred before such effective date.

 ``PART <<NOTE: Enhancing Education Through Technology Act of 2001.>>  
D--ENHANCING EDUCATION THROUGH TECHNOLOGY

``SEC. 2401. SHORT TITLE.

    ``This part may be cited as the `Enhancing Education Through 
Technology Act of 2001'.

``SEC. 2402. PURPOSES AND GOALS.

    ``(a) Purposes.--The purposes of this part are the following:
            ``(1) To provide assistance to States and localities for the 
        implementation and support of a comprehensive system that 
        effectively uses technology in elementary schools and secondary 
        schools to improve student academic achievement.
            ``(2) To encourage the establishment or expansion of 
        initiatives, including initiatives involving public-private 
        partnerships, designed to increase access to technology, 
        particularly in schools served by high-need local educational 
        agencies.
            ``(3) To assist States and localities in the acquisition, 
        development, interconnection, implementation, improvement, and 
        maintenance of an effective educational technology 
        infrastructure in a manner that expands access to technology for 
        students (particularly for disadvantaged students) and teachers.
            ``(4) To promote initiatives that provide school teachers, 
        principals, and administrators with the capacity to integrate 
        technology effectively into curricula and instruction that are 
        aligned with challenging State academic content and student 
        academic achievement standards, through such means as high-
        quality professional development programs.
            ``(5) To enhance the ongoing professional development of 
        teachers, principals, and administrators by providing constant 
        access to training and updated research in teaching and learning 
        through electronic means.
            ``(6) To support the development and utilization of 
        electronic networks and other innovative methods, such as 
        distance learning, of delivering specialized or rigorous 
        academic courses and curricula for students in areas that would 
        not otherwise have access to such courses and curricula, 
        particularly in geographically isolated regions.
            ``(7) To support the rigorous evaluation of programs funded 
        under this part, particularly regarding the impact of such 
        programs on student academic achievement, and ensure that timely 
        information on the results of such evaluations is widely 
        accessible through electronic means.
            ``(8) To support local efforts using technology to promote 
        parent and family involvement in education and communication 
        among students, parents, teachers, principals, and 
        administrators.

    ``(b) Goals.--
            ``(1) Primary goal.--The primary goal of this part is to 
        improve student academic achievement through the use of 
        technology in elementary schools and secondary schools.

[[Page 115 STAT. 1672]]

            ``(2) Additional goals.--The additional goals of this part 
        are the following:
                    ``(A) To assist every student in crossing the 
                digital divide by ensuring that every student is 
                technologically literate by the time the student 
                finishes the eighth grade, regardless of the student's 
                race, ethnicity, gender, family income, geographic 
                location, or disability.
                    ``(B) To encourage the effective integration of 
                technology resources and systems with teacher training 
                and curriculum development to establish research-based 
                instructional methods that can be widely implemented as 
                best practices by State educational agencies and local 
                educational agencies.

``SEC. 2403. DEFINITIONS. <<NOTE: 20 USC 6753.>> 

    ``In this part:
            ``(1) Eligible local entity.--The term `eligible local 
        entity' means--
                    ``(A) a high-need local educational agency; or
                    ``(B) an eligible local partnership.
            ``(2) Eligible local partnership.--The term `eligible local 
        partnership' means a partnership that--
                    ``(A) shall include at least one high-need local 
                educational agency and at least one--
                          ``(i) local educational agency that can 
                      demonstrate that teachers in schools served by the 
                      agency are effectively integrating technology and 
                      proven teaching practices into instruction, based 
                      on a review of relevant research, and that the 
                      integration results in improvement in--
                                    ``(I) classroom instruction in the 
                                core academic subjects; and
                                    ``(II) the preparation of students 
                                to meet challenging State academic 
                                content and student academic achievement 
                                standards;
                          ``(ii) institution of higher education that is 
                      in full compliance with the reporting requirements 
                      of section 207(f) of the Higher Education Act of 
                      1965 and that has not been identified by its State 
                      as low-performing under section 208 of such Act;
                          ``(iii) for-profit business or organization 
                      that develops, designs, manufactures, or produces 
                      technology products or services, or has 
                      substantial expertise in the application of 
                      technology in instruction; or
                          ``(iv) public or private nonprofit 
                      organization with demonstrated experience in the 
                      application of educational technology to 
                      instruction; and
                    ``(B) may include other local educational agencies, 
                educational service agencies, libraries, or other 
                educational entities appropriate to provide local 
                programs.
            ``(3) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational agency 
        that--
                    ``(A) is among the local educational agencies in a 
                State with the highest numbers or percentages of 
                children from families with incomes below the poverty 
                line; and

[[Page 115 STAT. 1673]]

                    ``(B)(i) operates one or more schools identified 
                under section 1116; or
                    ``(ii) has a substantial need for assistance in 
                acquiring and using technology.

``SEC. 2404. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6754.>> 

    ``(a) In General.--There are authorized to be appropriated to carry 
out subparts 1 and 2, $1,000,000,000 for fiscal year 2002, and such sums 
as may be necessary for each of the 5 succeeding fiscal years.
    ``(b) Allocation of Funds Between State and Local and National 
Initiatives.--The amount of funds made available under subsection (a) 
for a fiscal year shall be allocated so that--
            ``(1) not less than 98 percent is made available to carry 
        out subpart 1; and
            ``(2) not more than 2 percent is made available to carry out 
        subpart 2.

    ``(c) Allocation of Funds for Study.--Of the total amount of funds 
allocated under subsection (b)(2) for fiscal years 2002 through 2007, 
not more than $15,000,000 may be used to carry out section 2421(a).
    ``(d) Limitation.--Of the amount of funds made available to a 
recipient of funds under this part for a fiscal year, not more than 5 
percent may be used by the recipient for administrative costs or 
technical assistance, of which not more than 60 percent may be used by 
the recipient for administrative costs.

             ``Subpart 1--State and Local Technology Grants

``SEC. 2411. ALLOTMENT AND REALLOTMENT. <<NOTE: 20 USC 6761.>> 

    ``(a) Reservations and Allotment.--From the amount made available to 
carry out this subpart under section 2404(b)(1) for a fiscal year--
            ``(1) the Secretary shall reserve--
                    ``(A) three-fourths of 1 percent for the Secretary 
                of the Interior for programs under this subpart for 
                schools operated or funded by the Bureau of Indian 
                Affairs;
                    ``(B) one-half of 1 percent to provide assistance 
                under this subpart to the outlying areas; and
                    ``(C) such sums as may be necessary for continuation 
                awards on grants awarded under section 3136 prior to the 
                date of enactment of the No Child Left Behind Act of 
                2001; and
            ``(2) from the remainder of such amount and subject to 
        subsection (b), the Secretary shall make grants by allotting to 
        each eligible State educational agency under this subpart an 
        amount that bears the same relationship to such remainder for 
        such year as the amount received under part A of title I for 
        such year by such State educational agency bears to the amount 
        received under such part for such year by all State educational 
        agencies.

    ``(b) Minimum Allotment.--The amount of any State educational 
agency's allotment under subsection (a)(2) for any fiscal year may not 
be less than one-half of 1 percent of the amount made available for 
allotments to States under this part for such year.

[[Page 115 STAT. 1674]]

    ``(c) Reallotment of Unused Funds.--If any State educational agency 
does not apply for an allotment under this subpart for a fiscal year, or 
does not use its entire allotment under this subpart for that fiscal 
year, the Secretary shall reallot the amount of the State educational 
agency's allotment, or the unused portion of the allotment, to the 
remaining State educational agencies that use their entire allotments 
under this subpart in accordance with this section.
    ``(d) State Educational Agency Defined.--In this section, the term 
`State educational agency' does not include an agency of an outlying 
area or the Bureau of Indian Affairs.

``SEC. 2412. USE OF ALLOTMENT BY STATE. <<NOTE: 20 USC 6762.>> 

    ``(a) In General.--Of the amount provided to a State educational 
agency (from the agency's allotment under section 2411(a)(2)) for a 
fiscal year--
            ``(1) the State educational agency may use not more than 5 
        percent to carry out activities under section 2415; and
            ``(2) the State educational agency shall distribute the 
        remainder as follows:
                    ``(A) From 50 percent of the remainder, the State 
                educational agency shall award subgrants by allocating 
                to each eligible local educational agency that has 
                submitted an application to the State educational agency 
                under section 2414, for the activities described in 
                section 2416, an amount that bears the same relationship 
                to 50 percent of the remainder for such year as the 
                amount received under part A of title I for such year by 
                such local educational agency bears to the amount 
                received under such part for such year by all local 
                educational agencies within the State.
                    ``(B) From 50 percent of the remainder and subject 
                to subsection (b), the State educational agency shall 
                award subgrants, through a State-determined competitive 
                process, to eligible local entities that have submitted 
                applications to the State educational agency under 
                section 2414, for the activities described in section 
                2416.

    ``(b) Sufficient Amounts.--
            ``(1) Special rule.--In awarding a subgrant under subsection 
        (a)(2)(B), the State educational agency shall--
                    ``(A) determine the local educational agencies 
                that--
                          ``(i) received allocations under subsection 
                      (a)(2)(A) that are not of sufficient size to be 
                      effective, consistent with the purposes of this 
                      part; and
                          ``(ii) are eligible local entities;
                    ``(B) give priority to applications submitted by 
                eligible local educational agencies described in 
                subparagraph (A); and
                    ``(C) determine the minimum amount for awards under 
                subsection (a)(2)(B) to ensure that subgrants awarded 
                under that subsection are of sufficient size to be 
                effective.
            ``(2) Sufficiency.--In awarding subgrants under subsection 
        (a)(2)(B), each State educational agency shall ensure that each 
        subgrant is of sufficient size and duration, and that the 
        program funded by the subgrant is of sufficient scope and 
        quality, to carry out the purposes of this part effectively.

[[Page 115 STAT. 1675]]

            ``(3) Distribution.--In awarding subgrants under subsection 
        (a)(2)(B), each State educational agency shall ensure an 
        equitable distribution of assistance under this subpart among 
        urban and rural areas of the State, according to the 
        demonstrated need of those local educational agencies serving 
        the areas.

    ``(c) Fiscal Agent.--If an eligible local partnership receives a 
subgrant under subsection (a)(2)(B), a local educational agency in the 
partnership shall serve as the fiscal agent for the partnership.
    ``(d) Technical Assistance.--Each State educational agency receiving 
a grant under section 2411(a) shall--
            ``(1) identify the local educational agencies served by the 
        State educational agency that--
                    ``(A) have the highest numbers or percentages of 
                children from families with incomes below the poverty 
                line; and
                    ``(B) demonstrate to such State educational agency 
                the greatest need for technical assistance in developing 
                an application under section 2414; and
            ``(2) offer the technical assistance described in paragraph 
        (1)(B) to those local educational agencies.

``SEC. 2413. STATE APPLICATIONS. <<NOTE: 20 USC 6763.>> 

    ``(a) In General.--To be eligible to receive a grant under this 
subpart, a State educational agency shall submit to the Secretary, at 
such time and in such manner as the Secretary may specify, an 
application containing a new or updated statewide long-range strategic 
educational technology plan (which shall address the educational 
technology needs of local educational agencies) and such other 
information as the Secretary may reasonably require.
    ``(b) Contents.--Each State application submitted under subsection 
(a) shall include each of the following:
            ``(1) An outline of the State educational agency's long-term 
        strategies for improving student academic achievement, including 
        technology literacy, through the effective use of technology in 
        classrooms throughout the State, including through improving the 
        capacity of teachers to integrate technology effectively into 
        curricula and instruction.
            ``(2) A description of the State educational agency's goals 
        for using advanced technology to improve student academic 
        achievement, and how those goals are aligned with challenging 
        State academic content and student academic achievement 
        standards.
            ``(3) A description of how the State educational agency will 
        take steps to ensure that all students and teachers in the 
        State, particularly students and teachers in districts served by 
        high-need local educational agencies, have increased access to 
        technology.
            ``(4) A description of the process and accountability 
        measures that the State educational agency will use to evaluate 
        the extent to which activities funded under this subpart are 
        effective in integrating technology into curricula and 
        instruction.
            ``(5) A description of how the State educational agency will 
        encourage the development and utilization of innovative 
        strategies for the delivery of specialized or rigorous academic 
        courses and curricula through the use of technology, including

[[Page 115 STAT. 1676]]

        distance learning technologies, particularly for those areas of 
        the State that would not otherwise have access to such courses 
        and curricula due to geographical isolation or insufficient 
        resources.
            ``(6) An assurance that financial assistance provided under 
        this subpart will supplement, and not supplant, State and local 
        funds.
            ``(7) A description of how the plan incorporates teacher 
        education, professional development, and curriculum development, 
        and how the State educational agency will work to ensure that 
        teachers and principals in a State receiving funds under this 
        part are technologically literate.
            ``(8) A description of--
                    ``(A) how the State educational agency will provide 
                technical assistance to applicants under section 2414, 
                especially to those applicants serving the highest 
                numbers or percentages of children in poverty or with 
                the greatest need for technical assistance; and
                    ``(B) the capacity of the State educational agency 
                to provide such assistance.
            ``(9) A description of technology resources and systems that 
        the State will provide for the purpose of establishing best 
        practices that can be widely replicated by State educational 
        agencies and local educational agencies in the State and in 
        other States.
            ``(10) A description of the State's long-term strategies for 
        financing technology to ensure that all students, teachers, and 
        classrooms have access to technology.
            ``(11) A description of the State's strategies for using 
        technology to increase parental involvement.
            ``(12) A description of how the State educational agency 
        will ensure that each subgrant awarded under section 
        2412(a)(2)(B) is of sufficient size and duration, and that the 
        program funded by the subgrant is of sufficient scope and 
        quality, to carry out the purposes of this part effectively.
            ``(13) A description of how the State educational agency 
        will ensure ongoing integration of technology into school 
        curricula and instructional strategies in all schools in the 
        State, so that technology will be fully integrated into the 
        curricula and instruction of the schools by December 31, 2006.
            ``(14) A description of how the local educational agencies 
        in the State will provide incentives to teachers who are 
        technologically literate and teaching in rural or urban areas, 
        to encourage such teachers to remain in those areas.
            ``(15) A description of how public and private entities will 
        participate in the implementation and support of the plan.

    ``(c) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed to be 
approved by the Secretary unless the Secretary makes a written 
determination, prior to the expiration of the 120-day period beginning 
on the date on which the Secretary received the application, that the 
application is not in compliance with this part.
    ``(d) <<NOTE: Notice.>>  Disapproval.--The Secretary shall not 
finally disapprove the application, except after giving the State 
educational agency notice and an opportunity for a hearing.

[[Page 115 STAT. 1677]]

    ``(e) Notification.--If the Secretary finds that the application is 
not in compliance, in whole or in part, with this part, the Secretary 
shall--
            ``(1) give the State educational agency notice and an 
        opportunity for a hearing; and
            ``(2) notify the State educational agency of the finding of 
        noncompliance and, in such notification, shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only as to the 
                noncompliant provisions, needed to make the application 
                compliant.

    ``(f) Response.--If the State educational agency responds to the 
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the 
notification, and resubmits the application with the requested 
information described in subsection (e)(2)(B), the Secretary shall 
approve or disapprove such application prior to the later of--
            ``(1) the expiration of the 45-day period beginning on the 
        date on which the application is resubmitted; or
            ``(2) the expiration of the 120-day period described in 
        subsection (c).

    ``(g) Failure to Respond.--If the State educational agency does not 
respond to the Secretary's notification described in subsection (e)(2) 
during the 45-day period beginning on the date on which the agency 
received the notification, such application shall be deemed to be 
disapproved.

``SEC. 2414. LOCAL APPLICATIONS. <<NOTE: 20 USC 6764.>> 

    ``(a) In General.--To be eligible to receive a subgrant from a State 
educational agency under this subpart, a local educational agency or 
eligible local entity shall submit to the State educational agency an 
application containing a new or updated local long-range strategic 
educational technology plan that is consistent with the objectives of 
the statewide educational technology plan described in section 2413(a), 
and such other information as the State educational agency may 
reasonably require, at such time and in such manner as the State 
educational agency may require.
    ``(b) Contents.--The application shall include each of the 
following:
            ``(1) A description of how the applicant will use Federal 
        funds under this subpart to improve the student academic 
        achievement, including technology literacy, of all students 
        attending schools served by the local educational agency and to 
        improve the capacity of all teachers teaching in schools served 
        by the local educational agency to integrate technology 
        effectively into curricula and instruction.
            ``(2) A description of the applicant's specific goals for 
        using advanced technology to improve student academic 
        achievement, aligned with challenging State academic content and 
        student academic achievement standards.
            ``(3) A description of the steps the applicant will take to 
        ensure that all students and teachers in schools served by the 
        local educational agency involved have increased access to 
        educational technology, including how the agency would use

[[Page 115 STAT. 1678]]

        funds under this subpart (such as combining the funds with funds 
        from other sources), to help ensure that--
                  ``(A) students in high-poverty and high-needs schools, 
                or schools identified under section 1116, have access to 
                technology; and
                    ``(B) teachers are prepared to integrate technology 
                effectively into curricula and instruction.
            ``(4) A description of how the applicant will--
                    ``(A) identify and promote curricula and teaching 
                strategies that integrate technology effectively into 
                curricula and instruction, based on a review of relevant 
                research, leading to improvements in student academic 
                achievement, as measured by challenging State academic 
                content and student academic achievement standards; and
                    ``(B) provide ongoing, sustained professional 
                development for teachers, principals, administrators, 
                and school library media personnel serving the local 
                educational agency, to further the effective use of 
                technology in the classroom or library media center, 
                including, if applicable, a list of the entities that 
                will be partners with the local educational agency 
                involved in providing the ongoing, sustained 
                professional development.
            ``(5) A description of the type and costs of technologies to 
        be acquired under this subpart, including services, software, 
        and digital curricula, and including specific provisions for 
        interoperability among components of such technologies.
            ``(6) A description of how the applicant will coordinate 
        activities carried out with funds provided under this subpart 
        with technology-related activities carried out with funds 
        available from other Federal, State, and local sources.
            ``(7) A description of how the applicant will integrate 
        technology (including software and other electronically 
        delivered learning materials) into curricula and instruction, 
        and a timeline for such integration.
            ``(8) A description of how the applicant will encourage the 
        development and utilization of innovative strategies for the 
        delivery of specialized or rigorous academic courses and 
        curricula through the use of technology, including distance 
        learning technologies, particularly for those areas that would 
        not otherwise have access to such courses and curricula due to 
        geographical isolation or insufficient resources.
            ``(9) A description of how the applicant will ensure the 
        effective use of technology to promote parental involvement and 
        increase communication with parents, including a description of 
        how parents will be informed of the technology being applied in 
        their child's education so that the parents are able to 
        reinforce at home the instruction their child receives at 
        school.
            ``(10) A description of how programs will be developed, 
        where applicable, in collaboration with adult literacy service 
        providers, to maximize the use of technology.
            ``(11) A description of the process and accountability 
        measures that the applicant will use to evaluate the extent to 
        which activities funded under this subpart are effective in 
        integrating technology into curricula and instruction, 
        increasing the ability of teachers to teach, and enabling 
        students to meet

[[Page 115 STAT. 1679]]

        challenging State academic content and student academic 
        achievement standards.
            ``(12) A description of the supporting resources (such as 
        services, software, other electronically delivered learning 
        materials, and print resources) that will be acquired to ensure 
        successful and effective uses of technology.

    ``(c) Combined Applications.--A local educational agency that is an 
eligible local entity and submits an application to the State 
educational agency under this section for funds awarded under section 
2412(a)(2)(A) may combine the agency's application for funds awarded 
under that section with an application for funds awarded under section 
2412(a)(2)(B).
    ``(d) Special Rule.--
            ``(1) Consortium applications.--
                    ``(A) In general.--For any fiscal year, a local 
                educational agency applying for financial assistance 
                described in section 2412(a)(2)(A) may apply as part of 
                a consortium that includes other local educational 
                agencies, institutions of higher education, educational 
                service agencies, libraries, or other educational 
                entities appropriate to provide local programs.
                    ``(B) Fiscal agent.--If a local educational agency 
                applies for and receives financial assistance described 
                in section 2412(a)(2)(A) as part of a consortium, the 
                local educational agency shall serve as the fiscal agent 
                for the consortium.
            ``(2) State educational agency assistance.--At the request 
        of a local educational agency, a State educational agency may 
        assist the local educational agency in the formation of a 
        consortium described in paragraph (1) to provide services for 
        the teachers and students served by the local educational 
        agency.

``SEC. 2415. STATE ACTIVITIES. <<NOTE: 20 USC 6765.>> 

    ``From funds made available under section 2412(a)(1), a State 
educational agency shall carry out activities and assist local efforts 
to carry out the purposes of this part, which may include the following 
activities:
            ``(1) Developing, or assisting applicants or recipients of 
        funds under this subpart in the development and utilization of, 
        innovative strategies for the delivery of specialized or 
        rigorous academic courses and curricula through the use of 
        technology, including distance learning technologies, and 
        providing other technical assistance to such applicants or 
        recipients throughout the State, with priority given to high-
        need local educational agencies.
            ``(2) Establishing or supporting public-private initiatives 
        (such as interest-free or reduced-cost loans) for the 
        acquisition of educational technology for high-need local 
        educational agencies and students attending schools served by 
        such agencies.
            ``(3) Assisting recipients of funds under this subpart in 
        providing sustained and intensive, high-quality professional 
        development based on a review of relevant research in the 
        integration of advanced technologies, including emerging 
        technologies, into curricula and instruction and in using those 
        technologies to create new learning environments, including 
        training in the use of technology to--

[[Page 115 STAT. 1680]]

                    ``(A) access data and resources to develop curricula 
                and instructional materials;
                    ``(B) enable teachers--
                          ``(i) to use the Internet and other technology 
                      to communicate with parents, other teachers, 
                      principals, and administrators; and
                          ``(ii) to retrieve Internet-based learning 
                      resources; and
                    ``(C) lead to improvements in classroom instruction 
                in the core academic subjects, that effectively prepare 
                students to meet challenging State academic content 
                standards and student academic achievement standards.
            ``(4) Assisting recipients of funds under this subpart in 
        providing all students (including students with disabilities and 
        students with limited English proficiency) and teachers with 
        access to educational technology.
            ``(5) Developing performance measurement systems to 
        determine the effectiveness of educational technology programs 
        funded under this subpart, particularly in determining the 
        extent to which activities funded under this subpart are 
        effective in integrating technology into curricula and 
        instruction, increasing the ability of teachers to teach, and 
        enabling students to meet challenging State academic content and 
        student academic achievement standards.
            ``(6) Collaborating with other State educational agencies on 
        distance learning, including making specialized or rigorous 
        academic courses and curricula available to students in areas 
        that would not otherwise have access to such courses and 
        curricula.

``SEC. 2416. LOCAL ACTIVITIES. <<NOTE: 20 USC 6766.>> 

    ``(a) Professional Development.--
            ``(1) In general.--A recipient of funds made available under 
        section 2412(a)(2) shall use not less than 25 percent of such 
        funds to provide ongoing, sustained, and intensive, high-quality 
        professional development. The recipient shall provide 
        professional development in the integration of advanced 
        technologies, including emerging technologies, into curricula 
        and instruction and in using those technologies to create new 
        learning environments, such as professional development in the 
        use of technology--
                    ``(A) to access data and resources to develop 
                curricula and instructional materials;
                    ``(B) to enable teachers--
                          ``(i) to use the Internet and other technology 
                      to communicate with parents, other teachers, 
                      principals, and administrators; and
                          ``(ii) to retrieve Internet-based learning 
                      resources; and
                    ``(C) to lead to improvements in classroom 
                instruction in the core academic subjects, that 
                effectively prepare students to meet challenging State 
                academic content standards, including increasing student 
                technology literacy, and student academic achievement 
                standards.
            ``(2) Waivers.--Paragraph (1) shall not apply to a recipient 
        of funds made available under section 2412(a)(2) that 
        demonstrates, to the satisfaction of the State educational 
        agency

[[Page 115 STAT. 1681]]

        involved, that the recipient already provides ongoing, 
        sustained, and intensive, high-quality professional development 
        that is based on a review of relevant research, to all teachers 
        in core academic subjects in the integration of advanced 
        technologies, including emerging technologies, into curricula 
        and instruction.

    ``(b) Other Activities.--In addition to the activities described in 
subsection (a), a recipient of funds made available by a State 
educational agency under section 2412(a)(2) shall use such funds to 
carry out other activities consistent with this subpart, which may 
include the following:
            ``(1) Establishing or expanding initiatives, particularly 
        initiatives involving public-private partnerships, designed to 
        increase access to technology for students and teachers, with 
        special emphasis on the access of high-need schools to 
        technology.
            ``(2) Adapting or expanding existing and new applications of 
        technology to enable teachers to increase student academic 
        achievement, including technology literacy--
                    ``(A) through the use of teaching practices that are 
                based on a review of relevant research and are designed 
                to prepare students to meet challenging State academic 
                content and student academic achievement standards; and
                    ``(B) by the development and utilization of 
                innovative distance learning strategies to deliver 
                specialized or rigorous academic courses and curricula 
                to areas that would not otherwise have access to such 
                courses and curricula.
            ``(3) Acquiring proven and effective courses and curricula 
        that include integrated technology and are designed to help 
        students meet challenging State academic content and student 
        academic achievement standards.
            ``(4) Utilizing technology to develop or expand efforts to 
        connect schools and teachers with parents and students to 
        promote meaningful parental involvement, to foster increased 
        communication about curricula, assignments, and assessments 
        between students, parents, and teachers, and to assist parents 
        to understand the technology being applied in their child's 
        education, so that parents are able to reinforce at home the 
        instruction their child receives at school.
            ``(5) Preparing one or more teachers in elementary schools 
        and secondary schools as technology leaders who are provided 
        with the means to serve as experts and train other teachers in 
        the effective use of technology, and providing bonus payments to 
        the technology leaders.
            ``(6) Acquiring, adapting, expanding, implementing, 
        repairing, and maintaining existing and new applications of 
        technology, to support the school reform effort and to improve 
        student academic achievement, including technology literacy.
            ``(7) Acquiring connectivity linkages, resources, and 
        services (including the acquisition of hardware and software and 
        other electronically delivered learning materials) for use by 
        teachers, students, academic counselors, and school library 
        media personnel in the classroom, in academic and college 
        counseling centers, or in school library media centers, in order 
        to improve student academic achievement.
            ``(8) Using technology to collect, manage, and analyze data 
        to inform and enhance teaching and school improvement efforts.

[[Page 115 STAT. 1682]]

            ``(9) Implementing performance measurement systems to 
        determine the effectiveness of education technology programs 
        funded under this subpart, particularly in determining the 
        extent to which activities funded under this subpart are 
        effective in integrating technology into curricula and 
        instruction, increasing the ability of teachers to teach, and 
        enabling students to meet challenging State academic content and 
        student academic achievement standards.
            ``(10) Developing, enhancing, or implementing information 
        technology courses.

               ``Subpart 2--National Technology Activities

``SEC. 2421. NATIONAL ACTIVITIES. <<NOTE: 20 USC 6771.>> 

    ``(a) Study.--Using funds made available under section 2404(b)(2), 
the Secretary--
            ``(1) shall conduct an independent, long-term study, 
        utilizing scientifically based research methods and control 
        groups or control conditions--
                    ``(A) on the conditions and practices under which 
                educational technology is effective in increasing 
                student academic achievement; and
                    ``(B) on the conditions and practices that increase 
                the ability of teachers to integrate technology 
                effectively into curricula and instruction, that enhance 
                the learning environment and opportunities, and that 
                increase student academic achievement, including 
                technology literacy;
            ``(2) <<NOTE: Establishment.>> shall establish an 
        independent review panel to advise the Secretary on 
        methodological and other issues that arise in conducting the 
        long-term study;
            ``(3) shall consult with other interested Federal 
        departments or agencies, State and local educational 
        practitioners and policymakers (including teachers, principals, 
        and superintendents), and experts in technology, regarding the 
        study; and
            ``(4) <<NOTE: Reports. Deadline.>> shall submit to Congress 
        interim reports, when appropriate, and a final report, to be 
        submitted not later than April 1, 2006, on the findings of the 
        study.

    ``(b) <<NOTE: Internet.>>  Dissemination.--Using funds made 
available under section 2404(b)(2), the Secretary shall make widely 
available, including through dissemination on the Internet and to all 
State educational agencies and other recipients of funds under this 
part, findings identified through activities carried out under this 
section regarding the conditions and practices under which educational 
technology is effective in increasing student academic achievement.

    ``(c) Technical Assistance.--Using funds made available under 
section 2404(b)(2), the Secretary may provide technical assistance 
(directly or through the competitive award of grants or contracts) to 
State educational agencies, local educational agencies, and other 
recipients of funds, particularly in rural areas, under this part, in 
order to assist such State educational agencies, local educational 
agencies, and other recipients to achieve the purposes of this part.

``SEC. 2422. NATIONAL EDUCATION TECHNOLOGY PLAN. <<NOTE: 20 USC 6772.>> 

    ``(a) <<NOTE: Publication. Public information.>>  In General.--Based 
on the Nation's progress and an assessment by the Secretary of the 
continuing and future needs

[[Page 115 STAT. 1683]]

of the Nation's schools in effectively using technology to provide all 
students the opportunity to meet challenging State academic content and 
student academic achievement standards, the Secretary shall update and 
publish, in a form readily accessible to the public, a national long-
range technology plan, by not later than 12 months after the date of 
enactment of the No Child Left Behind Act of 2001.

    ``(b) Contents.--The plan referred to in subsection (a) shall 
include each of the following:
            ``(1) A description of the manner in which the Secretary 
        will promote--
                    ``(A) higher student academic achievement through 
                the integration of advanced technologies, including 
                emerging technologies, into curricula and instruction;
                    ``(B) increased access to technology for teaching 
                and learning for schools with a high number or 
                percentage of children from families with incomes below 
                the poverty line; and
                    ``(C) the use of technology to assist in the 
                implementation of State systemic reform strategies.
            ``(2) A description of joint activities of the Department of 
        Education and other Federal departments or agencies that will 
        promote the use of technology in education.

                 ``Subpart 3--Ready-to-Learn Television

``SEC. 2431. READY-TO-LEARN TELEVISION. <<NOTE: 20 USC 6775.>> 

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to, or enter into contracts or cooperative agreements 
        with, eligible entities described in paragraph (3) to enable 
        such entities--
                    ``(A) to develop, produce, and distribute 
                educational and instructional video programming for 
                preschool and elementary school children and their 
                parents in order to facilitate student academic 
                achievement;
                    ``(B) to facilitate the development, directly or 
                through contracts with producers of children and family 
                educational television programming, of educational 
                programming for preschool and elementary school 
                children, and the accompanying support materials and 
                services that promote the effective use of such 
                programming;
                    ``(C) to facilitate the development of programming 
                and digital content containing Ready-to-Learn-based 
                children's programming and resources for parents and 
                caregivers that is specially designed for nationwide 
                distribution over public television stations' digital 
                broadcasting channels and the Internet;
                    ``(D) to contract with entities (such as public 
                telecommunications entities) so that programs developed 
                under this section are disseminated and distributed to 
                the widest possible audience appropriate to be served by 
                the programming, and through the use of the most 
                appropriate distribution technologies; and
                    ``(E) to develop and disseminate education and 
                training materials, including interactive programs and 
                programs

[[Page 115 STAT. 1684]]

                adaptable to distance learning technologies, that are 
                designed--
                          ``(i) to promote school readiness; and
                          ``(ii) to promote the effective use of 
                      materials developed under subparagraphs (B) and 
                      (C) among parents, teachers, Head Start providers, 
                      Even Start providers, providers of family literacy 
                      services, child care providers, early childhood 
                      development personnel, elementary school teachers, 
                      public libraries, and after-school program 
                      personnel caring for preschool and elementary 
                      school children.
            ``(2) Availability.--In awarding grants, contracts, or 
        cooperative agreements under this section, the Secretary shall 
        ensure that eligible entities make programming widely available, 
        with support materials as appropriate, to young children, 
        parents, child care workers, Head Start providers, Even Start 
        providers, and providers of family literacy services to increase 
        the effective use of such programming.
            ``(3) Eligible entities.--To be eligible to receive a grant, 
        contract, or cooperative agreements under this section, an 
        entity shall be a public telecommunications entity that is able 
        to demonstrate each of the following:
                    ``(A) A capacity for the development and national 
                distribution of educational and instructional television 
                programming of high quality that is accessible by a 
                large majority of disadvantaged preschool and elementary 
                school children.
                    ``(B) A capacity to contract with the producers of 
                children's television programming for the purpose of 
                developing educational television programming of high 
                quality.
                    ``(C) A capacity, consistent with the entity's 
                mission and nonprofit nature, to negotiate such 
                contracts in a manner that returns to the entity an 
                appropriate share of any ancillary income from sales of 
                any program-related products.
                    ``(D) A capacity to localize programming and 
                materials to meet specific State and local needs and to 
                provide educational outreach at the local level.
            ``(4) Coordination of activities.--An entity receiving a 
        grant, contract, or cooperative agreement under this section 
        shall consult with the Secretary and the Secretary of Health and 
        Human Services--
                    ``(A) to maximize the utilization of quality 
                educational programming by preschool and elementary 
                school children, and make such programming widely 
                available to federally funded programs serving such 
                populations; and
                    ``(B) to coordinate activities with Federal programs 
                that have major training components for early childhood 
                development, including programs under the Head Start Act 
                (42 U.S.C. 9831 et seq.) and Even Start, and State 
                training activities funded under the Child Care and 
                Development Block Grant Act of 1990 (42 U.S.C. 9858 et 
                seq.), regarding the availability and utilization of 
                materials developed under paragraph (1)(E) to enhance 
                parent and child care provider skills in early childhood 
                development and education.

[[Page 115 STAT. 1685]]

    ``(b) Applications.--To be eligible to receive a grant, contract, or 
cooperative agreement under subsection (a), an entity shall submit to 
the Secretary an application at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(c) Reports and Evaluations.--
            ``(1) Annual report to the secretary.--An entity receiving a 
        grant, contract, or cooperative agreement under this section 
        shall prepare and submit to the Secretary an annual report that 
        contains such information as the Secretary may require. At a 
        minimum, the report shall describe the program activities 
        undertaken with funds received under the grant, contract, or 
        cooperative agreement, including each of the following:
                    ``(A) The programming that has been developed, 
                directly or indirectly, by the eligible entity, and the 
                target population of the programs developed.
                    ``(B) The support and training materials that have 
                been developed to accompany the programming, and the 
                method by which the materials are distributed to 
                consumers and users of the programming.
                    ``(C) The means by which programming developed under 
                this section has been distributed, including the 
                distance learning technologies that have been utilized 
                to make programming available, and the geographic 
                distribution achieved through such technologies.
                    ``(D) The initiatives undertaken by the entity to 
                develop public-private partnerships to secure non-
                Federal support for the development, distribution, and 
                broadcast of educational and instructional programming.
            ``(2) Report to congress.--The Secretary shall prepare and 
        submit to the relevant committees of Congress a biannual report 
        that includes the following:
                    ``(A) A summary of the activities assisted under 
                subsection (a).
                    ``(B) A description of the education and training 
                materials made available under subsection (a)(1)(E), the 
                manner in which outreach has been conducted to inform 
                parents and child care providers of the availability of 
                such materials, and the manner in which such materials 
                have been distributed in accordance with such 
                subsection.

    ``(d) Administrative Costs.--An entity that receives a grant, 
contract, or cooperative agreement under this section may use up to 5 
percent of the amount received under the grant, contract, or agreement 
for the normal and customary expenses of administering the grant, 
contract, or agreement.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section such sums as may be necessary for 
        fiscal year 2002, and for each of the 5 succeeding fiscal years.
            ``(2) Funding rule.--Not less than 60 percent of the amount 
        appropriated under paragraph (1) for each fiscal year shall be 
        used to carry out activities under subparagraphs (B) through (D) 
        of subsection (a)(1).

[[Page 115 STAT. 1686]]

  ``Subpart 4--Limitation on Availability of Certain Funds for Schools

``SEC. 2441. INTERNET SAFETY. <<NOTE: 20 USC 6777.>> 

    ``(a) In General.--No funds made available under this part to a 
local educational agency for an elementary school or secondary school 
that does not receive services at discount rates under section 254(h)(5) 
of the Communications Act of 1934 (47 U.S.C. 254(h)(5)) may be used to 
purchase computers used to access the Internet, or to pay for direct 
costs associated with accessing the Internet, for such school unless the 
school, school board, local educational agency, or other authority with 
responsibility for administration of such school both--
            ``(1)(A) has in place a policy of Internet safety for minors 
        that includes the operation of a technology protection measure 
        with respect to any of its computers with Internet access that 
        protects against access through such computers to visual 
        depictions that are--
                    ``(i) obscene;
                    ``(ii) child pornography; or
                    ``(iii) harmful to minors; and
            ``(B) is enforcing the operation of such technology 
        protection measure during any use of such computers by minors; 
        and
            ``(2)(A) has in place a policy of Internet safety that 
        includes the operation of a technology protection measure with 
        respect to any of its computers with Internet access that 
        protects against access through such computers to visual 
        depictions that are--
                    ``(i) obscene; or
                    ``(ii) child pornography; and
            ``(B) is enforcing the operation of such technology 
        protection measure during any use of such computers.

    ``(b) Timing and Applicability of Implementation.--
            ``(1) <<NOTE: Certification.>>  In general.--The local 
        educational agency with responsibility for a school covered by 
        subsection (a) shall certify the compliance of such school with 
        the requirements of subsection (a) as part of the application 
        process for the next program funding year under this Act 
        following December 21, 2000, and for each subsequent program 
        funding year thereafter.
            ``(2) Process.--
                    ``(A) Schools with internet safety policies and 
                technology protection measures in place.--A local 
                educational agency with responsibility for a school 
                covered by subsection (a) that has in place an Internet 
                safety policy meeting the requirements of subsection (a) 
                shall certify its compliance with subsection (a) during 
                each annual program application cycle under this Act.
                    ``(B) Schools without internet safety policies and 
                technology protection measures in place.--
                          ``(i) Certification.--A local educational 
                      agency with responsibility for a school covered by 
                      subsection (a) that does not have in place an 
                      Internet safety policy meeting the requirements of 
                      subsection (a)--
                                    ``(I) for the first program year 
                                after December 21, 2000, in which the 
                                local educational agency is applying for 
                                funds for such school under this

[[Page 115 STAT. 1687]]

                                Act, shall certify that it is 
                                undertaking such actions, including any 
                                necessary procurement procedures, to put 
                                in place an Internet safety policy that 
                                meets such requirements; and
                                    ``(II) for the second program year 
                                after December 21, 2000, in which the 
                                local educational agency is applying for 
                                funds for such school under this Act, 
                                shall certify that such school is in 
                                compliance with such requirements.
                          ``(ii) Ineligibility.--Any school covered by 
                      subsection (a) for which the local educational 
                      agency concerned is unable to certify compliance 
                      with such requirements in such second program year 
                      shall be ineligible for all funding under this 
                      part for such second program year and all 
                      subsequent program years until such time as such 
                      school comes into compliance with such 
                      requirements.
                    ``(C) Waivers.--Any school subject to a 
                certification under subparagraph (B)(i)(II) for which 
                the local educational agency concerned cannot make the 
                certification otherwise required by that subparagraph 
                may seek a waiver of that subparagraph if State or local 
                procurement rules or regulations or competitive bidding 
                requirements prevent the making of the certification 
                otherwise required by that 
                subparagraph. <<NOTE: Notification.>>  The local 
                educational agency concerned shall notify the Secretary 
                of the applicability of that subparagraph to the school. 
                Such notice shall certify that the school will be 
                brought into compliance with the requirements in 
                subsection (a) before the start of the third program 
                year after December 21, 2000, in which the school is 
                applying for funds under this part.

    ``(c) Disabling During Certain Use.--An administrator, supervisor, 
or person authorized by the responsible authority under subsection (a) 
may disable the technology protection measure concerned to enable access 
for bona fide research or other lawful purposes.
    ``(d) Noncompliance.--
            ``(1) Use of general education provisions act remedies.--
        Whenever the Secretary has reason to believe that any recipient 
        of funds under this part is failing to comply substantially with 
        the requirements of this section, the Secretary may--
                    ``(A) withhold further payments to the recipient 
                under this part;
                    ``(B) issue a complaint to compel compliance of the 
                recipient through a cease and desist order; or
                    ``(C) enter into a compliance agreement with a 
                recipient to bring it into compliance with such 
                requirements,
        in same manner as the Secretary is authorized to take such 
        actions under sections 455, 456, and 457, respectively, of the 
        General Education Provisions Act.
            ``(2) Recovery of funds prohibited.--The actions authorized 
        by paragraph (1) are the exclusive remedies available with 
        respect to the failure of a school to comply substantially with 
        a provision of this section, and the Secretary shall not seek a 
        recovery of funds from the recipient for such failure.
            ``(3) Recommencement of payments.--Whenever the Secretary 
        determines (whether by certification or other appropriate

[[Page 115 STAT. 1688]]

        evidence) that a recipient of funds who is subject to the 
        withholding of payments under paragraph (1)(A) has cured the 
        failure providing the basis for the withholding of payments, the 
        Secretary shall cease the withholding of payments to the 
        recipient under that paragraph.

    ``(e) Definitions.--In this subpart:
            ``(1) Computer.--The term `computer' includes any hardware, 
        software, or other technology attached or connected to, 
        installed in, or otherwise used in connection with a computer.
            ``(2) Access to internet.--A computer shall be considered to 
        have access to the Internet if such computer is equipped with a 
        modem or is connected to a computer network that has access to 
        the Internet.
            ``(3) Acquisition or operation.--An elementary school or 
        secondary school shall be considered to have received funds 
        under this part for the acquisition or operation of any computer 
        if such funds are used in any manner, directly or indirectly--
                    ``(A) to purchase, lease, or otherwise acquire or 
                obtain the use of such computer; or
                    ``(B) to obtain services, supplies, software, or 
                other actions or materials to support, or in connection 
                with, the operation of such computer.
            ``(4) Minor.--The term `minor' means an individual who has 
        not attained the age of 17.
            ``(5) Child pornography.--The term `child pornography' has 
        the meaning given that term in section 2256 of title 18, United 
        States Code.
            ``(6) Harmful to minors.--The term `harmful to minors' means 
        any picture, image, graphic image file, or other visual 
        depiction that--
                    ``(A) taken as a whole and with respect to minors, 
                appeals to a prurient interest in nudity, sex, or 
                excretion;
                    ``(B) depicts, describes, or represents, in a 
                patently offensive way with respect to what is suitable 
                for minors, an actual or simulated sexual act or sexual 
                contact, actual or simulated normal or perverted sexual 
                acts, or a lewd exhibition of the genitals; and
                    ``(C) taken as a whole, lacks serious literary, 
                artistic, political, or scientific value as to minors.
            ``(7) Obscene.--The term `obscene' has the meaning 
        applicable to that term under section 1460 of title 18, United 
        States Code.
            ``(8) Sexual act and sexual contact.--The terms `sexual act' 
        and `sexual contact' have the meanings given those terms in 
        section 2246 of title 18, United States Code.

    ``(f) Severability.--If any provision of this section is held 
invalid, the remainder of this section shall not be affected thereby.''.

SEC. 202. CONTINUATION OF AWARDS. <<NOTE: 20 USC 6301 note.>> 

    Notwithstanding any other provision of this Act or the Elementary 
and Secondary Education Act of 1965, in the case of--
            (1) a person or entity that, prior to the date of enactment 
        of this Act, was awarded funds appropriated under the Department 
        of Education Appropriations Act, 2001 for new teacher 
        recruitment initiatives; or

[[Page 115 STAT. 1689]]

            (2) a person or agency that, prior to the date of enactment 
        of this Act, was awarded a grant or contract under part K of 
        title X of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 8331 et seq.),

the Secretary of Education shall continue to provide funds in accordance 
with the terms of such award until the date on which the award period 
terminates.

   TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

SEC. 301. LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT CHILDREN 
            AND IMMIGRANT CHILDREN AND YOUTH.

    Title III (20 U.S.C. 6801 et seq.) is amended to read as follows:

  ``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

``SEC. 3001. <<NOTE: 20 USC 6801.>> AUTHORIZATIONS OF APPROPRIATIONS; 
            CONDITION ON EFFECTIVENESS OF PARTS.

    ``(a) Authorizations of Appropriations.--
            ``(1) In general.--Subject to subsection (b), there are 
        authorized to be appropriated to carry out this title, except 
        for subpart 4 of part B, $750,000,000 for fiscal year 2002 and 
        such sums as may be necessary for each of the 5 succeeding 
        fiscal years.
            ``(2) Emergency immigrant education program.--There are 
        authorized to be appropriated to carry out subpart 4 of part B 
        (when such part is in effect) such sums as may be necessary for 
        fiscal year 2002 and each of the 5 succeeding fiscal years.

    ``(b) Conditions on Effectiveness of Parts A and B.--
            ``(1) Part a.--Part A shall be in effect for any fiscal year 
        for which the amount appropriated under paragraphs (1) and (2) 
        of subsection (a) equals or exceeds $650,000,000.
            ``(2) Part b.--Part B shall be in effect only for a fiscal 
        year for which part A is not in effect.

    ``(c) References.--In any fiscal year for which part A is in effect, 
references in Federal law (other than this title) to part B shall be 
considered to be references to part A. In any fiscal year for which part 
B is in effect, references in Federal law (other than this title) to 
part A shall be considered to be references to part B.

[[Page 115 STAT. 1690]]

 ``PART <<NOTE: English Language Acquisition, Language Enhancement, and 
 Academic Achievement Act. Children, youth and families. Grants. 20 USC 
  6811.>>  A--ENGLISH LANGUAGE ACQUISITION, LANGUAGE ENHANCEMENT, AND 
ACADEMIC ACHIEVEMENT ACT

``SEC. 3101. SHORT TITLE.

    ``This part may be cited as the `English Language Acquisition, 
Language Enhancement, and Academic Achievement Act'.

``SEC. 3102. PURPOSES. <<NOTE: 20 USC 6812.>> 

    ``The purposes of this part are--
            ``(1) to help ensure that children who are limited English 
        proficient, including immigrant children and youth, attain 
        English proficiency, develop high levels of academic attainment 
        in English, and meet the same challenging State academic content 
        and student academic achievement standards as all children are 
        expected to meet;
            ``(2) to assist all limited English proficient children, 
        including immigrant children and youth, to achieve at high 
        levels in the core academic subjects so that those children can 
        meet the same challenging State academic content and student 
        academic achievement standards as all children are expected to 
        meet, consistent with section 1111(b)(1);
            ``(3) to develop high-quality language instruction 
        educational programs designed to assist State educational 
        agencies, local educational agencies, and schools in teaching 
        limited English proficient children and serving immigrant 
        children and youth;
            ``(4) to assist State educational agencies and local 
        educational agencies to develop and enhance their capacity to 
        provide high-quality instructional programs designed to prepare 
        limited English proficient children, including immigrant 
        children and youth, to enter all-English instruction settings;
            ``(5) to assist State educational agencies, local 
        educational agencies, and schools to build their capacity to 
        establish, implement, and sustain language instruction 
        educational programs and programs of English language 
        development for limited English proficient children;
            ``(6) to promote parental and community participation in 
        language instruction educational programs for the parents and 
        communities of limited English proficient children;
            ``(7) to streamline language instruction educational 
        programs into a program carried out through formula grants to 
        State educational agencies and local educational agencies to 
        help limited English proficient children, including immigrant 
        children and youth, develop proficiency in English, while 
        meeting challenging State academic content and student academic 
        achievement standards;
            ``(8) to hold State educational agencies, local educational 
        agencies, and schools accountable for increases in English 
        proficiency and core academic content knowledge of limited 
        English proficient children by requiring--
                    ``(A) demonstrated improvements in the English 
                proficiency of limited English proficient children each 
                fiscal year; and

[[Page 115 STAT. 1691]]

                    ``(B) adequate yearly progress for limited English 
                proficient children, including immigrant children and 
                youth, as described in section 1111(b)(2)(B); and
            ``(9) to provide State educational agencies and local 
        educational agencies with the flexibility to implement language 
        instruction educational programs, based on scientifically based 
        research on teaching limited English proficient children, that 
        the agencies believe to be the most effective for teaching 
        English.

 ``Subpart 1--Grants and Subgrants for English Language Acquisition and 
                          Language Enhancement

``SEC. 3111. FORMULA GRANTS TO STATES. <<NOTE: 20 USC 6821.>> 

    ``(a) In General.--In the case of each State educational agency 
having a plan approved by the Secretary for a fiscal year under section 
3113, the Secretary shall make a grant for the year to the agency for 
the purposes specified in subsection (b). The grant shall consist of the 
allotment determined for the State educational agency under subsection 
(c).
    ``(b) Use of Funds.--
            ``(1) Subgrants to eligible entities.--The Secretary may 
        make a grant under subsection (a) only if the State educational 
        agency involved agrees to expend at least 95 percent of the 
        State educational agency's allotment under subsection (c) for a 
        fiscal year--
                    ``(A) to award subgrants, from allocations under 
                section 3114, to eligible entities to carry out the 
                activities described in section 3115 (other than 
                subsection (e)); and
                    ``(B) to award subgrants under section 3114(d)(1) to 
                eligible entities that are described in that section to 
                carry out the activities described in section 3115(e).
            ``(2) State activities.--Subject to paragraph (3), each 
        State educational agency receiving a grant under subsection (a) 
        may reserve not more than 5 percent of the agency's allotment 
        under subsection (c) to carry out one or more of the following 
        activities:
                    ``(A) Professional development activities, and other 
                activities, that assist personnel in meeting State and 
                local certification and licensing requirements for 
                teaching limited English proficient children.
                    ``(B) Planning, evaluation, administration, and 
                interagency coordination related to the subgrants 
                referred to in paragraph (1).
                    ``(C) Providing technical assistance and other forms 
                of assistance to eligible entities that are receiving 
                subgrants from a State educational agency under this 
                subpart, including assistance in--
                          ``(i) identifying and implementing language 
                      instruction educational programs and curricula 
                      that are based on scientifically based research on 
                      teaching limited English proficient children;
                          ``(ii) helping limited English proficient 
                      children meet the same challenging State academic 
                      content and

[[Page 115 STAT. 1692]]

                      student academic achievement standards as all 
                      children are expected to meet;
                          ``(iii) identifying or developing, and 
                      implementing, measures of English proficiency; and
                          ``(iv) promoting parental and community 
                      participation in programs that serve limited 
                      English proficient children.
                    ``(D) Providing recognition, which may include 
                providing financial awards, to subgrantees that have 
                exceeded their annual measurable achievement objectives 
                pursuant to section 3122.
            ``(3) Administrative expenses.--From the amount reserved 
        under paragraph (2), a State educational agency may use not more 
        than 60 percent of such amount or $175,000, whichever is 
        greater, for the planning and administrative costs of carrying 
        out paragraphs (1) and (2).

    ``(c) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated under 
        section 3001(a) for each fiscal year, the Secretary shall 
        reserve--
                    ``(A) 0.5 percent or $5,000,000 of such amount, 
                whichever is greater, for payments to eligible entities 
                that are defined under section 3112(a) for activities, 
                approved by the Secretary, consistent with this subpart;
                    ``(B) 0.5 percent of such amount for payments to 
                outlying areas, to be allotted in accordance with their 
                respective needs for assistance under this subpart, as 
                determined by the Secretary, for activities, approved by 
                the Secretary, consistent with this subpart;
                    ``(C) 6.5 percent of such amount for national 
                activities under sections 3131 and 3303, except that not 
                more than 0.5 percent of such amount shall be reserved 
                for evaluation activities conducted by the Secretary and 
                not more than $2,000,000 of such amount may be reserved 
                for the National Clearinghouse for English Language 
                Acquisition and Language Instruction Educational 
                Programs described in section 3303; and
                    ``(D) such sums as may be necessary to make 
                continuation awards under paragraph (2).
            ``(2) Continuation awards.--
                    ``(A) In general.--Before making allotments to State 
                educational agencies under paragraph (3) for any fiscal 
                year, the Secretary shall use the sums reserved under 
                paragraph (1)(D) to make continuation awards to 
                recipients who received grants or fellowships for the 
                fiscal year preceding any fiscal year described in 
                section 3001(b)(1)(A) under--
                          ``(i) subparts 1 and 3 of part A of title VII 
                      (as in effect on the day before the date of 
                      enactment of the No Child Left Behind Act of 
                      2001); or
                          ``(ii) subparts 1 and 3 of part B of this 
                      title.
                    ``(B) Use of funds.--The Secretary shall make the 
                awards in order to allow such recipients to receive 
                awards for the complete period of their grants or 
                fellowships under the appropriate subparts.
            ``(3) State allotments.--

[[Page 115 STAT. 1693]]

                    ``(A) In general.--Except as provided in 
                subparagraph (B), from the amount appropriated under 
                section 3001(a) for each fiscal year that remains after 
                making the reservations under paragraph (1), the 
                Secretary shall allot to each State educational agency 
                having a plan approved under section 3113(c)--
                          ``(i) an amount that bears the same 
                      relationship to 80 percent of the remainder as the 
                      number of limited English proficient children in 
                      the State bears to the number of such children in 
                      all States; and
                          ``(ii) an amount that bears the same 
                      relationship to 20 percent of the remainder as the 
                      number of immigrant children and youth in the 
                      State bears to the number of such children and 
                      youth in all States.
                    ``(B) Minimum allotments.--No State educational 
                agency shall receive an allotment under this paragraph 
                that is less than $500,000.
                    ``(C) Reallotment.--If any State educational agency 
                described in subparagraph (A) does not submit a plan to 
                the Secretary for a fiscal year, or submits a plan (or 
                any amendment to a plan) that the Secretary, after 
                reasonable notice and opportunity for a hearing, 
                determines does not satisfy the requirements of this 
                subpart, the Secretary--
                          ``(i) shall endeavor to make the State's 
                      allotment available on a competitive basis to 
                      specially qualified agencies within the State to 
                      satisfy the requirements of section 3115 (and any 
                      additional requirements that the Secretary may 
                      impose), consistent with the purposes of such 
                      section, and to carry out required and authorized 
                      activities under such section; and
                          ``(ii) shall reallot any portion of such 
                      allotment remaining after the application of 
                      clause (i) to the remaining State educational 
                      agencies in accordance with subparagraph (A).
                    ``(D) Special rule for puerto rico.--The total 
                amount allotted to Puerto Rico for any fiscal year under 
                subparagraph (A) shall not exceed 0.5 percent of the 
                total amount allotted to all States for that fiscal 
                year.
            ``(4) Use of data for determinations.--
                    ``(A) In general.--In making State allotments under 
                paragraph (3), for the purpose of determining the number 
                of limited English proficient children in a State and in 
                all States, and the number of immigrant children and 
                youth in a State and in all States, for each fiscal 
                year, the Secretary shall use data that will yield the 
                most accurate, up-to-date numbers of such children and 
                youth.
                    ``(B) Special rule.--
                          ``(i) First 2 years.--In making determinations 
                      under subparagraph (A) for the 2 fiscal years 
                      following the date of enactment of the No Child 
                      Left Behind Act of 2001, the Secretary shall 
                      determine the number of limited English proficient 
                      children in a State and in all States, and the 
                      number of immigrant children and youth in a State 
                      and in all States, using data available from the 
                      Bureau of Census or submitted by the States to the 
                      Secretary.

[[Page 115 STAT. 1694]]

                          ``(ii) Subsequent years.--For subsequent 
                      fiscal years, the Secretary shall determine the 
                      number of limited English proficient children in a 
                      State and in all States, and the number of 
                      immigrant children and youth in a State and in all 
                      States, using the more accurate of--
                                    ``(I) the data available from the 
                                American Community Survey available from 
                                the Department of Commerce; or
                                    ``(II) the number of children being 
                                assessed for English proficiency in a 
                                State as required under section 
                                1111(b)(7).

``SEC. 3112. <<NOTE: 20 USC 6822.>> NATIVE AMERICAN AND ALASKA NATIVE 
            CHILDREN IN SCHOOL.

    ``(a) Eligible Entities.--For the purpose of carrying out programs 
under this part for individuals served by elementary schools, secondary 
schools, and postsecondary schools operated predominately for Native 
American children (including Alaska Native children), the following 
shall be considered to be an eligible entity:
            ``(1) An Indian tribe.
            ``(2) A tribally sanctioned educational authority.
            ``(3) A Native Hawaiian or Native American Pacific Islander 
        native language educational organization.
            ``(4) An elementary school or secondary school that is 
        operated or funded by the Bureau of Indian Affairs, or a 
        consortium of such schools.
            ``(5) An elementary school or secondary school operated 
        under a contract with or grant from the Bureau of Indian 
        Affairs, in consortium with another such school or a tribal or 
        community organization.
            ``(6) An elementary school or secondary school operated by 
        the Bureau of Indian Affairs and an institution of higher 
        education, in consortium with an elementary school or secondary 
        school operated under a contract with or grant from the Bureau 
        of Indian Affairs or a tribal or community organization.

    ``(b) Submission of Applications for Assistance.--Notwithstanding 
any other provision of this part, an entity that is considered to be an 
eligible entity under subsection (a), and that desires to receive 
Federal financial assistance under this subpart, shall submit an 
application to the Secretary.
    ``(c) Special Rule.--An eligible entity described in subsection (a) 
that receives Federal financial assistance pursuant to this section 
shall not be eligible to receive a subgrant under section 3114.

``SEC. 3113. STATE AND SPECIALLY QUALIFIED AGENCY PLANS. <<NOTE: 20 USC 
            6823.>> 

    ``(a) Plan Required.--Each State educational agency and specially 
qualified agency desiring a grant under this subpart shall submit a plan 
to the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
    ``(b) Contents.--Each plan submitted under subsection (a) shall--
            ``(1) describe the process that the agency will use in 
        making subgrants to eligible entities under section 3114(d)(1);
            ``(2) describe how the agency will establish standards and 
        objectives for raising the level of English proficiency that are 
        derived from the four recognized domains of speaking, listening,

[[Page 115 STAT. 1695]]

        reading, and writing, and that are aligned with achievement of 
        the challenging State academic content and student academic 
        achievement standards described in section 1111(b)(1);
            ``(3) contain an assurance that--
                    ``(A) in the case of a State educational agency, the 
                agency consulted with local educational agencies, 
                education-related community groups and nonprofit 
                organizations, parents, teachers, school administrators, 
                and researchers, in developing the annual measurable 
                achievement objectives described in section 3122;
                    ``(B) in the case of a specially qualified agency, 
                the agency consulted with education-related community 
                groups and nonprofit organizations, parents, teachers, 
                and researchers, in developing the annual measurable 
                achievement objectives described in section 3122;
                    ``(C) the agency will ensure that eligible entities 
                receiving a subgrant under this subpart comply with the 
                requirement in section 1111(b)(7) to annually assess in 
                English children who have been in the United States for 
                3 or more consecutive years;
                    ``(D) the agency will ensure that eligible entities 
                receiving a subgrant under this subpart annually assess 
                the English proficiency of all limited English 
                proficient children participating in a program funded 
                under this subpart, consistent with section 1111(b)(7);
                    ``(E) in awarding subgrants under section 3114, the 
                agency will address the needs of school systems of all 
                sizes and in all geographic areas, including school 
                systems with rural and urban schools;
                    ``(F) subgrants to eligible entities under section 
                3114(d)(1) will be of sufficient size and scope to allow 
                such entities to carry out high-quality language 
                instruction educational programs for limited English 
                proficient children; and
                    ``(G) the agency will require an eligible entity 
                receiving a subgrant under this subpart to use the 
                subgrant in ways that will build such recipient's 
                capacity to continue to offer high-quality language 
                instruction educational programs that assist limited 
                English proficient children in meeting challenging State 
                academic content and student academic achievement 
                standards once assistance under this subpart is no 
                longer available;
            ``(4) describe how the agency will coordinate its programs 
        and activities under this subpart with its other programs and 
        activities under this Act and other Acts, as appropriate;
            ``(5) describe how the agency will hold local educational 
        agencies, eligible entities, elementary schools, and secondary 
        schools accountable for--
                    ``(A) meeting all annual measurable achievement 
                objectives described in section 3122;
                    ``(B) making adequate yearly progress for limited 
                English proficient children, as described in section 
                1111(b)(2)(B); and
                    ``(C) achieving the purposes of this part; and
            ``(6) describe how eligible entities in the State will be 
        given the flexibility to teach limited English proficient 
        children--

[[Page 115 STAT. 1696]]

                    ``(A) using a language instruction curriculum that 
                is tied to scientifically based research on teaching 
                limited English proficient children and that has been 
                demonstrated to be effective; and
                    ``(B) in the manner the eligible entities determine 
                to be the most effective.

    ``(c) Approval.--The Secretary, after using a peer review process, 
shall approve a plan submitted under subsection (a) if the plan meets 
the requirements of this section.
    ``(d) Duration of Plan.--
            ``(1) In general.--Each plan submitted by a State 
        educational agency or specially qualified agency and approved 
        under subsection (c) shall--
                    ``(A) remain in effect for the duration of the 
                agency's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                agency, as necessary, to reflect changes to the agency's 
                strategies and programs carried out under this part.
            ``(2) Additional information.--
                    ``(A) Amendments.--If the State educational agency 
                or specially qualified agency amends the plan, the 
                agency shall submit such amendment to the Secretary.
                    ``(B) Approval.--The Secretary shall approve such 
                amendment to an approved plan, unless the Secretary 
                determines that the amendment will result in the agency 
                not meeting the requirements, or fulfilling the 
                purposes, of this part.

    ``(e) Consolidated Plan.--A plan submitted under subsection (a) may 
be submitted as part of a consolidated plan under section 9302.
    ``(f) Secretary Assistance.--The Secretary shall provide technical 
assistance, if requested, in the development of English proficiency 
standards, objectives, and assessments.

``SEC. 3114. WITHIN-STATE ALLOCATIONS. <<NOTE: 20 USC 6824.>> 

    ``(a) In General.--After making the reservation required under 
subsection (d)(1), each State educational agency receiving a grant under 
section 3111(c)(3) shall award subgrants for a fiscal year by allocating 
to each eligible entity in the State having a plan approved under 
section 3116 an amount that bears the same relationship to the amount 
received under the grant and remaining after making such reservation as 
the population of limited English proficient children in schools served 
by the eligible entity bears to the population of limited English 
proficient children in schools served by all eligible entities in the 
State.
    ``(b) Limitation.--A State educational agency shall not award a 
subgrant from an allocation made under subsection (a) if the amount of 
such subgrant would be less than $10,000.
    ``(c) Reallocation.--Whenever a State educational agency determines 
that an amount from an allocation made to an eligible entity under 
subsection (a) for a fiscal year will not be used by the entity for the 
purpose for which the allocation was made, the agency shall, in 
accordance with such rules as it determines to be appropriate, 
reallocate such amount, consistent with such subsection, to other 
eligible entities in the State that the agency determines will use the 
amount to carry out that purpose.

[[Page 115 STAT. 1697]]

    ``(d) Required Reservation.--A State educational agency receiving a 
grant under this subpart for a fiscal year--
            ``(1) shall reserve not more than 15 percent of the agency's 
        allotment under section 3111(c)(3) to award subgrants to 
        eligible entities in the State that have experienced a 
        significant increase, as compared to the average of the 2 
        preceding fiscal years, in the percentage or number of immigrant 
        children and youth, who have enrolled, during the fiscal year 
        preceding the fiscal year for which the subgrant is made, in 
        public and nonpublic elementary schools and secondary schools in 
        the geographic areas under the jurisdiction of, or served by, 
        such entities; and
            ``(2) in awarding subgrants under paragraph (1)--
                    ``(A) shall equally consider eligible entities that 
                satisfy the requirement of such paragraph but have 
                limited or no experience in serving immigrant children 
                and youth; and
                    ``(B) shall consider the quality of each local plan 
                under section 3116 and ensure that each subgrant is of 
                sufficient size and scope to meet the purposes of this 
                part.

``SEC. 3115. SUBGRANTS TO ELIGIBLE ENTITIES. <<NOTE: 20 USC 6825.>> 

    ``(a) Purposes of Subgrants.--A State educational agency may make a 
subgrant to an eligible entity from funds received by the agency under 
this subpart only if the entity agrees to expend the funds to improve 
the education of limited English proficient children, by assisting the 
children to learn English and meet challenging State academic content 
and student academic achievement standards. In carrying out activities 
with such funds, the entity shall use approaches and methodologies based 
on scientifically based research on teaching limited English proficient 
children and immigrant children and youth for the following purposes:
            ``(1) Developing and implementing new language instruction 
        educational programs and academic content instruction programs 
        for such children, and such children and youth, including 
        programs of early childhood education, elementary school 
        programs, and secondary school programs.
            ``(2) Carrying out highly focused, innovative, locally 
        designed activities to expand or enhance existing language 
        instruction educational programs and academic content 
        instruction programs for such children, and such children and 
        youth.
            ``(3) Implementing, within an individual school, schoolwide 
        programs for restructuring, reforming, and upgrading all 
        relevant programs, activities, and operations relating to 
        language instruction educational programs and academic content 
        instruction for such children, and such children and youth.
            ``(4) Implementing, within the entire jurisdiction of a 
        local educational agency, agencywide programs for restructuring, 
        reforming, and upgrading all relevant programs, activities, and 
        operations relating to language instruction educational programs 
        and academic content instruction for such children, and such 
        children and youth.

    ``(b) Administrative Expenses.--Each eligible entity receiving funds 
under section 3114(a) for a fiscal year may use not more than 2 percent 
of such funds for the cost of administering this subpart.

[[Page 115 STAT. 1698]]

    ``(c) Required Subgrantee Activities.--An eligible entity receiving 
funds under section 3114(a) shall use the funds--
            ``(1) to increase the English proficiency of limited English 
        proficient children by providing high-quality language 
        instruction educational programs that are based on 
        scientifically based research demonstrating the effectiveness of 
        the programs in increasing--
                    ``(A) English proficiency; and
                    ``(B) student academic achievement in the core 
                academic subjects; and
            ``(2) to provide high-quality professional development to 
        classroom teachers (including teachers in classroom settings 
        that are not the settings of language instruction educational 
        programs), principals, administrators, and other school or 
        community-based organizational personnel, that is--
                    ``(A) designed to improve the instruction and 
                assessment of limited English proficient children;
                    ``(B) designed to enhance the ability of such 
                teachers to understand and use curricula, assessment 
                measures, and instruction strategies for limited English 
                proficient children;
                    ``(C) based on scientifically based research 
                demonstrating the effectiveness of the professional 
                development in increasing children's English proficiency 
                or substantially increasing the subject matter 
                knowledge, teaching knowledge, and teaching skills of 
                such teachers; and
                    ``(D) of sufficient intensity and duration (which 
                shall not include activities such as one-day or short-
                term workshops and conferences) to have a positive and 
                lasting impact on the teachers' performance in the 
                classroom, except that this subparagraph shall not apply 
                to an activity that is one component of a long-term, 
                comprehensive professional development plan established 
                by a teacher and the teacher's supervisor based on an 
                assessment of the needs of the teacher, the supervisor, 
                the students of the teacher, and any local educational 
                agency employing the teacher.

    ``(d) Authorized Subgrantee Activities.--Subject to subsection (c), 
an eligible entity receiving funds under section 3114(a) may use the 
funds to achieve one of the purposes described in subsection (a) by 
undertaking one or more of the following activities:
            ``(1) Upgrading program objectives and effective instruction 
        strategies.
            ``(2) Improving the instruction program for limited English 
        proficient children by identifying, acquiring, and upgrading 
        curricula, instruction materials, educational software, and 
        assessment procedures.
            ``(3) Providing--
                    ``(A) tutorials and academic or vocational education 
                for limited English proficient children; and
                    ``(B) intensified instruction.
            ``(4) Developing and implementing elementary school or 
        secondary school language instruction educational programs that 
        are coordinated with other relevant programs and services.
            ``(5) Improving the English proficiency and academic 
        achievement of limited English proficient children.

[[Page 115 STAT. 1699]]

            ``(6) Providing community participation programs, family 
        literacy services, and parent outreach and training activities 
        to limited English proficient children and their families--
                    ``(A) to improve the English language skills of 
                limited English proficient children; and
                    ``(B) to assist parents in helping their children to 
                improve their academic achievement and becoming active 
                participants in the education of their children.
            ``(7) Improving the instruction of limited English 
        proficient children by providing for--
                    ``(A) the acquisition or development of educational 
                technology or instructional materials;
                    ``(B) access to, and participation in, electronic 
                networks for materials, training, and communication; and
                    ``(C) incorporation of the resources described in 
                subparagraphs (A) and (B) into curricula and programs, 
                such as those funded under this subpart.
            ``(8) Carrying out other activities that are consistent with 
        the purposes of this section.

    ``(e) Activities by Agencies Experiencing Substantial Increases in 
Immigrant Children and Youth.--
            ``(1) In general.--An eligible entity receiving funds under 
        section 3114(d)(1) shall use the funds to pay for activities 
        that provide enhanced instructional opportunities for immigrant 
        children and youth, which may include--
                    ``(A) family literacy, parent outreach, and training 
                activities designed to assist parents to become active 
                participants in the education of their children;
                    ``(B) support for personnel, including teacher aides 
                who have been specifically trained, or are being 
                trained, to provide services to immigrant children and 
                youth;
                    ``(C) provision of tutorials, mentoring, and 
                academic or career counseling for immigrant children and 
                youth;
                    ``(D) identification and acquisition of curricular 
                materials, educational software, and technologies to be 
                used in the program carried out with funds;
                    ``(E) basic instruction services that are directly 
                attributable to the presence in the school district 
                involved of immigrant children and youth, including the 
                payment of costs of providing additional classroom 
                supplies, costs of transportation, or such other costs 
                as are directly attributable to such additional basic 
                instruction services;
                    ``(F) other instruction services that are designed 
                to assist immigrant children and youth to achieve in 
                elementary schools and secondary schools in the United 
                States, such as programs of introduction to the 
                educational system and civics education; and
                    ``(G) activities, coordinated with community-based 
                organizations, institutions of higher education, private 
                sector entities, or other entities with expertise in 
                working with immigrants, to assist parents of immigrant 
                children and youth by offering comprehensive community 
                services.
            ``(2) Duration of subgrants.--The duration of a subgrant 
        made by a State educational agency under section 3114(d)(1) 
        shall be determined by the agency in its discretion.

    ``(f) Selection of Method of Instruction.--

[[Page 115 STAT. 1700]]

            ``(1) In general.--To receive a subgrant from a State 
        educational agency under this subpart, an eligible entity shall 
        select one or more methods or forms of instruction to be used in 
        the programs and activities undertaken by the entity to assist 
        limited English proficient children to attain English 
        proficiency and meet challenging State academic content and 
        student academic achievement standards.
            ``(2) Consistency.--Such selection shall be consistent with 
        sections 3125 through 3127.

    ``(g) Supplement, Not Supplant.--Federal funds made available under 
this subpart shall be used so as to supplement the level of Federal, 
State, and local public funds that, in the absence of such availability, 
would have been expended for programs for limited English proficient 
children and immigrant children and youth and in no case to supplant 
such Federal, State, and local public funds.

``SEC. 3116. LOCAL PLANS. <<NOTE: 20 USC 6826.>> 

    ``(a) Plan Required.--Each eligible entity desiring a subgrant from 
the State educational agency under section 3114 shall submit a plan to 
the State educational agency at such time, in such manner, and 
containing such information as the State educational agency may require.
    ``(b) Contents.--Each plan submitted under subsection (a) shall--
            ``(1) describe the programs and activities proposed to be 
        developed, implemented, and administered under the subgrant;
            ``(2) describe how the eligible entity will use the subgrant 
        funds to meet all annual measurable achievement objectives 
        described in section 3122;
            ``(3) describe how the eligible entity will hold elementary 
        schools and secondary schools receiving funds under this subpart 
        accountable for--
                    ``(A) meeting the annual measurable achievement 
                objectives described in section 3122;
                    ``(B) making adequate yearly progress for limited 
                English proficient children, as described in section 
                1111(b)(2)(B); and
                    ``(C) annually measuring the English proficiency of 
                limited English proficient children, so that such 
                children served by the programs carried out under this 
                part develop proficiency in English while meeting State 
                academic content and student academic achievement 
                standards as required by section 1111(b)(1);
            ``(4) describe how the eligible entity will promote parental 
        and community participation in programs for limited English 
        proficient children;
            ``(5) contain an assurance that the eligible entity 
        consulted with teachers, researchers, school administrators, and 
        parents, and, if appropriate, with education-related community 
        groups and nonprofit organizations, and institutions of higher 
        education, in developing such plan; and
            ``(6) describe how language instruction educational programs 
        carried out under the subgrant will ensure that limited English 
        proficient children being served by the programs develop English 
        proficiency.

[[Page 115 STAT. 1701]]

    ``(c) Teacher English Fluency.--Each eligible entity receiving a 
subgrant under section 3114 shall include in its plan a certification 
that all teachers in any language instruction educational program for 
limited English proficient children that is, or will be, funded under 
this part are fluent in English and any other language used for 
instruction, including having written and oral communications skills.
    ``(d) Other Requirements for Approval.--Each local plan shall also 
contain assurances that--
            ``(1) each local educational agency that is included in the 
        eligible entity is complying with section 3302 prior to, and 
        throughout, each school year;
            ``(2) the eligible entity annually will assess the English 
        proficiency of all children with limited English proficiency 
        participating in programs funded under this part;
            ``(3) the eligible entity has based its proposed plan on 
        scientifically based research on teaching limited English 
        proficient children;
            ``(4) the eligible entity will ensure that the programs will 
        enable children to speak, read, write, and comprehend the 
        English language and meet challenging State academic content and 
        student academic achievement standards; and
            ``(5) the eligible entity is not in violation of any State 
        law, including State constitutional law, regarding the education 
        of limited English proficient children, consistent with sections 
        3126 and 3127.

             ``Subpart 2--Accountability and Administration

``SEC. 3121. EVALUATIONS. <<NOTE: 20 USC 6841.>> 

    ``(a) In General.--Each eligible entity that receives a subgrant 
from a State educational agency under subpart 1 shall provide such 
agency, at the conclusion of every second fiscal year during which the 
subgrant is received, with an evaluation, in a form prescribed by the 
agency, that includes--
            ``(1) a description of the programs and activities conducted 
        by the entity with funds received under subpart 1 during the two 
        immediately preceding fiscal years;
            ``(2) a description of the progress made by children in 
        learning the English language and meeting challenging State 
        academic content and student academic achievement standards;
            ``(3) the number and percentage of children in the programs 
        and activities attaining English proficiency by the end of each 
        school year, as determined by a valid and reliable assessment of 
        English proficiency; and
            ``(4) a description of the progress made by children in 
        meeting challenging State academic content and student academic 
        achievement standards for each of the 2 years after such 
        children are no longer receiving services under this part.

    ``(b) Use of Evaluation.--An evaluation provided by an eligible 
entity under subsection (a) shall be used by the entity and the State 
educational agency--
            ``(1) for improvement of programs and activities;
            ``(2) to determine the effectiveness of programs and 
        activities in assisting children who are limited English 
        proficient

[[Page 115 STAT. 1702]]

        to attain English proficiency (as measured consistent with 
        subsection (d)) and meet challenging State academic content and 
        student academic achievement standards; and
            ``(3) in determining whether or not to continue funding for 
        specific programs or activities.

    ``(c) Evaluation Components.--An evaluation provided by an eligible 
entity under subsection (a) shall--
            ``(1) provide an evaluation of children enrolled in a 
        program or activity conducted by the entity using funds under 
        subpart 1 (including the percentage of children) who--
                    ``(A) are making progress in attaining English 
                proficiency, including the percentage of children who 
                have achieved English proficiency;
                    ``(B) have transitioned into classrooms not tailored 
                to limited English proficient children, and have a 
                sufficient level of English proficiency to permit them 
                to achieve in English and transition into classrooms not 
                tailored to limited English proficient children;
                    ``(C) are meeting the same challenging State 
                academic content and student academic achievement 
                standards as all children are expected to meet; and
                    ``(D) are not receiving waivers for the reading or 
                language arts assessments under section 1111(b)(3)(C); 
                and
            ``(2) include such other information as the State 
        educational agency may require.

    ``(d) Evaluation Measures.--A State shall approve evaluation 
measures for use under subsection (c) that are designed to assess--
            ``(1) the progress of children in attaining English 
        proficiency, including a child's level of comprehension, 
        speaking, listening, reading, and writing skills in English;
            ``(2) student attainment of challenging State student 
        academic achievement standards on assessments described in 
        section 1111(b)(3); and
            ``(3) progress in meeting the annual measurable achievement 
        objectives described in section 3122.

    ``(e) Special Rule for Specially Qualified Agencies.--Each specially 
qualified agency receiving a grant under this part shall provide the 
evaluations described in subsection (a) to the Secretary subject to the 
same requirements as apply to eligible entities providing such 
evaluations to State educational agencies under such subsection.

``SEC. 3122. ACHIEVEMENT OBJECTIVES AND ACCOUNTABILITY. <<NOTE: 20 USC 
            6842.>> 

    ``(a) Achievement Objectives.--
            ``(1) In general.--Each State educational agency or 
        specially qualified agency receiving a grant under subpart 1 
        shall develop annual measurable achievement objectives for 
        limited English proficient children served under this part that 
        relate to such children's development and attainment of English 
        proficiency while meeting challenging State academic content and 
        student academic achievement standards as required by section 
        1111(b)(1).
            ``(2) Development of objectives.--Such annual measurable 
        achievement objectives shall be developed in a manner that--

[[Page 115 STAT. 1703]]

                    ``(A) reflects the amount of time an individual 
                child has been enrolled in a language instruction 
                educational program; and
                    ``(B) uses consistent methods and measurements to 
                reflect the increases described in subparagraphs (A)(i), 
                (A)(ii), and (B) of paragraph (3).
            ``(3) Contents.--Such annual measurable achievement 
        objectives--
                    ``(A) shall include--
                          ``(i) at a minimum, annual increases in the 
                      number or percentage of children making progress 
                      in learning English;
                          ``(ii) at a minimum, annual increases in the 
                      number or percentage of children attaining English 
                      proficiency by the end of each school year, as 
                      determined by a valid and reliable assessment of 
                      English proficiency consistent with section 
                      1111(b)(7); and
                          ``(iii) making adequate yearly progress for 
                      limited English proficient children as described 
                      in section 1111(b)(2)(B); and
                    ``(B) at the discretion of the agency, may include 
                the number or percentage of children not receiving 
                waivers for reading or language arts assessments under 
                section 1111(b)(3)(C), but this achievement objective 
                shall not be applied to an eligible entity that, in a 
                given school year--
                          ``(i) has experienced a large increase in 
                      limited English proficient children or immigrant 
                      children and youth;
                          ``(ii) enrolls a statistically significant 
                      number of immigrant children and youth from 
                      countries where such children and youth had little 
                      or no access to formal education; or
                          ``(iii) has a statistically significant number 
                      of immigrant children and youth who have fled from 
                      war or natural disaster.

    ``(b) Accountability.--
            ``(1) For states.--Each State educational agency receiving a 
        grant under subpart 1 shall hold eligible entities receiving a 
        subgrant under such subpart accountable for meeting the annual 
        measurable achievement objectives under subsection (a), 
        including making adequate yearly progress for limited English 
        proficient children.
            ``(2) Improvement plan.--If a State educational agency 
        determines, based on the annual measurable achievement 
        objectives described in subsection (a), that an eligible entity 
        has failed to make progress toward meeting such objectives for 2 
        consecutive years, the agency shall require the entity to 
        develop an improvement plan that will ensure that the entity 
        meets such objectives. The improvement plan shall specifically 
        address the factors that prevented the entity from achieving 
        such objectives.
            ``(3) Technical assistance.--During the development of the 
        improvement plan described in paragraph (2), and throughout its 
        implementation, the State educational agency shall--
                    ``(A) provide technical assistance to the eligible 
                entity;
                    ``(B) provide technical assistance, if applicable, 
                to schools served by such entity under subpart 1 that 
                need

[[Page 115 STAT. 1704]]

                assistance to enable the schools to meet the annual 
                measurable achievement objectives described in 
                subsection (a);
                    ``(C) develop, in consultation with the entity, 
                professional development strategies and activities, 
                based on scientifically based research, that the agency 
                will use to meet such objectives;
                    ``(D) require such entity to utilize such strategies 
                and activities; and
                    ``(E) develop, in consultation with the entity, a 
                plan to incorporate strategies and methodologies, based 
                on scientifically based research, to improve the 
                specific program or method of instruction provided to 
                limited English proficient children.
            ``(4) Accountability.--If a State educational agency 
        determines that an eligible entity has failed to meet the annual 
        measurable achievement objectives described in subsection (a) 
        for 4 consecutive years, the agency shall--
                    ``(A) require such entity to modify the entity's 
                curriculum, program, and method of instruction; or
                    ``(B)(i) make a determination whether the entity 
                shall continue to receive funds related to the entity's 
                failure to meet such objectives; and
                    ``(ii) require such entity to replace educational 
                personnel relevant to the entity's failure to meet such 
                objectives.

    ``(c) Special Rule for Specially Qualified Agencies.--The Secretary 
shall hold specially qualified agencies receiving a grant under this 
subpart accountable for meeting the annual measurable achievement 
objectives described in subsection (a) in the same manner as State 
educational agencies hold eligible entities accountable under subsection 
(b).

``SEC. 3123. REPORTING REQUIREMENTS. <<NOTE: 20 USC 6843.>> 

    ``(a) <<NOTE: Deadline.>>  States.--Based upon the evaluations 
provided to a State educational agency under section 3121, each such 
agency that receives a grant under this part shall prepare and submit 
every second year to the Secretary a report on programs and activities 
carried out by the State educational agency under this part and the 
effectiveness of such programs and activities in improving the education 
provided to children who are limited English proficient.

    ``(b) Secretary.--Every second year, the Secretary shall prepare and 
submit to the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate a report--
            ``(1) on programs and activities carried out to serve 
        limited English proficient children under this part, and the 
        effectiveness of such programs and activities in improving the 
        academic achievement and English proficiency of children who are 
        limited English proficient;
            ``(2) on the types of language instruction educational 
        programs used by local educational agencies or eligible entities 
        receiving funding under this part to teach limited English 
        proficient children;
            ``(3) containing a critical synthesis of data reported by 
        eligible entities to States under section 3121(a);

[[Page 115 STAT. 1705]]

            ``(4) containing a description of technical assistance and 
        other assistance provided by State educational agencies under 
        section 3111(b)(2)(C);
            ``(5) containing an estimate of the number of certified or 
        licensed teachers working in language instruction educational 
        programs and educating limited English proficient children, and 
        an estimate of the number of such teachers that will be needed 
        for the succeeding 5 fiscal years;
            ``(6) containing the major findings of scientifically based 
        research carried out under this part;
            ``(7) containing the number of programs or activities, if 
        any, that were terminated because the entities carrying out the 
        programs or activities were not able to reach program goals;
            ``(8) containing the number of limited English proficient 
        children served by eligible entities receiving funding under 
        this part who were transitioned out of language instruction 
        educational programs funded under this part into classrooms 
        where instruction is not tailored for limited English proficient 
        children; and
            ``(9) containing other information gathered from the 
        evaluations from specially qualified agencies and other reports 
        submitted to the Secretary under this title when applicable.

``SEC. 3124. COORDINATION WITH RELATED PROGRAMS. <<NOTE: 20 USC 6844.>> 

    ``In order to maximize Federal efforts aimed at serving the 
educational needs of children of limited English proficiency, the 
Secretary shall coordinate and ensure close cooperation with other 
entities carrying out programs serving language-minority and limited 
English proficient children that are administered by the Department and 
other agencies.

``SEC. 3125. RULES OF CONSTRUCTION. <<NOTE: 20 USC 6845.>> 

    ``Nothing in this part shall be construed--
            ``(1) to prohibit a local educational agency from serving 
        limited English proficient children simultaneously with children 
        with similar educational needs, in the same educational settings 
        where appropriate;
            ``(2) to require a State or a local educational agency to 
        establish, continue, or eliminate any particular type of 
        instructional program for limited English proficient children; 
        or
            ``(3) to limit the preservation or use of Native American 
        languages.

``SEC. 3126. LEGAL AUTHORITY UNDER STATE LAW. <<NOTE: 20 USC 6846.>> 

    ``Nothing in this part shall be construed to negate or supersede 
State law, or the legal authority under State law of any State agency, 
State entity, or State public official, over programs that are under the 
jurisdiction of the State agency, entity, or official.

``SEC. 3127. CIVIL RIGHTS. <<NOTE: 20 USC 6847.>> 

    ``Nothing in this part shall be construed in a manner inconsistent 
with any Federal law guaranteeing a civil right.

``SEC. 3128. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO. <<NOTE: 20 
            USC 6848.>> 

    ``Notwithstanding any other provision of this part, programs 
authorized under this part that serve Native American (including Native 
American Pacific Islander) children and children in the

[[Page 115 STAT. 1706]]

Commonwealth of Puerto Rico may include programs of instruction, teacher 
training, curriculum development, evaluation, and assessment designed 
for Native American children learning and studying Native American 
languages and children of limited Spanish proficiency, except that an 
outcome of programs serving such children shall be increased English 
proficiency among such children.

``SEC. 3129. PROHIBITION. <<NOTE: 20 USC 6849.>> 

    ``In carrying out this part, the Secretary shall neither mandate nor 
preclude the use of a particular curricular or pedagogical approach to 
educating limited English proficient children.

                    ``Subpart 3--National Activities

``SEC. 3131. NATIONAL PROFESSIONAL DEVELOPMENT PROJECT. <<NOTE: 20 USC 
            6861.>> 

    ``The Secretary shall use funds made available under section 
3111(c)(1)(C) to award grants on a competitive basis, for a period of 
not more than 5 years, to institutions of higher education (in consortia 
with State educational agencies or local educational agencies) to 
provide for professional development activities that will improve 
classroom instruction for limited English proficient children and assist 
educational personnel working with such children to meet high 
professional standards, including standards for certification and 
licensure as teachers who work in language instruction educational 
programs or serve limited English proficient children. Grants awarded 
under this subsection may be used--
            ``(1) for preservice professional development programs that 
        will assist local schools and institutions of higher education 
        to upgrade the qualifications and skills of educational 
        personnel who are not certified or licensed, especially 
        educational paraprofessionals;
            ``(2) for the development of curricula appropriate to the 
        needs of the consortia participants involved; and
            ``(3) in conjunction with other Federal need-based student 
        financial assistance programs, for financial assistance, and 
        costs related to tuition, fees, and books for enrolling in 
        courses required to complete the degree involved, to meet 
        certification or licensing requirements for teachers who work in 
        language instruction educational programs or serve limited 
        English proficient children.

                        ``Subpart 4--Definitions

``SEC. 3141. ELIGIBLE ENTITY. <<NOTE: 20 USC 6871.>> 

    ``In this part, the term `eligible entity' means--
            ``(1) one or more local educational agencies; or
            ``(2) one or more local educational agencies, in 
        collaboration with an institution of higher education, 
        community-based organization, or State educational agency.

 ``PART <<NOTE: Improving Language Instruction Educational Programs For 
     Academic Achievement Act. Children, youth and families. Native 
  Americans. Grants 20 USC 6891.>>  B--IMPROVING LANGUAGE INSTRUCTION 
EDUCATIONAL PROGRAMS

``SEC. 3201. SHORT TITLE.

    ``This part may be cited as the `Improving Language Instruction 
Educational Programs For Academic Achievement Act'.

[[Page 115 STAT. 1707]]

``SEC. 3202. PURPOSE. <<NOTE: 20 USC 6892.>> 

    ``The purpose of this part is to help ensure that limited English 
proficient children master English and meet the same rigorous standards 
for academic achievement as all children are expected to meet, including 
meeting challenging State academic content and student academic 
achievement standards by--
            ``(1) promoting systemic improvement and reform of, and 
        developing accountability systems for, educational programs 
        serving limited English proficient children;
            ``(2) developing language skills and multicultural 
        understanding;
            ``(3) developing the English proficiency of limited English 
        proficient children and, to the extent possible, the native 
        language skills of such children;
            ``(4) providing similar assistance to Native Americans with 
        certain modifications relative to the unique status of Native 
        American languages under Federal law;
            ``(5) developing data collection and dissemination, 
        research, materials, and technical assistance that are focused 
        on school improvement for limited English proficient children; 
        and
            ``(6) developing programs that strengthen and improve the 
        professional training of educational personnel who work with 
        limited English proficient children.

``SEC. 3203. NATIVE AMERICAN CHILDREN IN SCHOOL. <<NOTE: 20 USC 6893.>> 

    ``(a) Eligible Entities.--For the purpose of carrying out programs 
under this part for individuals served by elementary schools, secondary 
schools, and postsecondary schools operated predominately for Native 
American (including Alaska Native) children and youth, an Indian tribe, 
a tribally sanctioned educational authority, a Native Hawaiian or Native 
American Pacific Islander native language education organization, or an 
elementary school or secondary school that is operated or funded by the 
Bureau of Indian Affairs shall be considered to be a local educational 
agency.
    ``(b) Application.--Notwithstanding any other provision of this 
part, each tribe, authority, organization, or school described in 
subsection (a) shall submit any application for assistance under this 
part directly to the Secretary along with timely comments on the need 
for the program proposed in the application.

``SEC. 3204. <<NOTE: 20 USC 6894.>> RESIDENTS OF THE TERRITORIES AND 
            FREELY ASSOCIATED STATES.

    ``For the purpose of carrying out programs under this part in the 
outlying areas, the term `local educational agency' includes public 
institutions or agencies whose mission is the preservation and 
maintenance of native languages.

            ``Subpart 1--Program Development and Enhancement

``SEC. 3211. <<NOTE: 20 USC 6911.>> FINANCIAL ASSISTANCE FOR LANGUAGE 
            INSTRUCTION EDUCATIONAL PROGRAMS.

    ``The purpose of this subpart is to assist local educational 
agencies, institutions of higher education, and community-based 
organizations, through the grants authorized under sections 3212 and 
3213--

[[Page 115 STAT. 1708]]

            ``(1) to develop and enhance their capacity to provide high-
        quality instruction through language instruction educational 
        programs or special alternative instruction programs to limited 
        English proficient children; and
            ``(2) to help such children--
                    ``(A) develop English proficiency and, to the extent 
                possible, proficiency in their native language; and
                    ``(B) meet the same challenging State academic 
                content and student academic achievement standards as 
                all children are expected to meet under section 
                1111(b)(1).

``SEC. 3212. PROGRAM ENHANCEMENT ACTIVITIES. <<NOTE: 20 USC 6912.>> 

    ``(a) Program Authorized.--
            ``(1) Authority.--
                    ``(A) In general.--The Secretary is authorized to 
                award grants to eligible entities having applications 
                approved under section 3214 to enable such entities to 
                provide innovative, locally designed, high-quality 
                instruction to limited English proficient children, by 
                expanding, developing, or strengthening language 
                instruction educational programs or special alternative 
                instruction programs.
                    ``(B) Period.--Each grant awarded under this section 
                shall be awarded for a period of 3 years.
            ``(2) Authorized activities.--
                    ``(A) Mandatory activities.--Grants awarded under 
                this section shall be used for--
                          ``(i) developing, implementing, expanding, or 
                      enhancing comprehensive preschool, elementary, or 
                      secondary education programs for limited English 
                      proficient children, that are--
                                    ``(I) aligned with State and local 
                                academic content and student academic 
                                achievement standards, and local school 
                                reform efforts; and
                                    ``(II) coordinated with related 
                                academic services for children;
                          ``(ii) providing high-quality professional 
                      development to classroom teachers, administrators, 
                      and other school or community-based organization 
                      personnel to improve the instruction and 
                      assessment of limited English proficient children; 
                      and
                          ``(iii) annually assessing the English 
                      proficiency of all limited English proficient 
                      children served by activities carried out under 
                      this section.
                    ``(B) Permissible activities.--Grants awarded under 
                this section may be used for--
                          ``(i) implementing programs to upgrade the 
                      reading and other academic skills of limited 
                      English proficient children;
                          ``(ii) developing accountability systems to 
                      monitor the academic progress of limited English 
                      proficient and formerly limited English proficient 
                      children;
                          ``(iii) implementing family education programs 
                      and parent outreach and training activities 
                      designed to assist parents to become active 
                      participants in the education of their children;

[[Page 115 STAT. 1709]]

                          ``(iv) improving the instruction programs for 
                      limited English proficient children by 
                      identifying, acquiring, and applying effective 
                      curricula, instruction materials (including 
                      materials provided through technology), and 
                      assessments that are all aligned with State and 
                      local standards;
                          ``(v) providing intensified instruction, 
                      including tutorials and academic, or vocational 
                      and technical, training, for limited English 
                      proficient children;
                          ``(vi) adapting best practice models for 
                      meeting the needs of limited English proficient 
                      children;
                          ``(vii) assisting limited English proficient 
                      children with disabilities;
                          ``(viii) implementing applied learning 
                      activities such as service learning to enhance and 
                      support comprehensive elementary and secondary 
                      language instruction educational programs;
                          ``(ix) acquiring or developing education 
                      technology or instruction materials for limited 
                      English proficient children, including materials 
                      in languages other than English;
                          ``(x) participating in electronic networks for 
                      materials, training, and communication, and 
                      incorporating information derived from such 
                      participation in curricula and programs; and
                          ``(xi) carrying out such other activities 
                      related to the purpose of this part as the 
                      Secretary may approve.

    ``(b) Priority.--In awarding grants under this section, the 
Secretary may give priority to an entity that--
            ``(1) serves a school district--
                    ``(A) that has a total district enrollment that is 
                less than 10,000 students; or
                    ``(B) with a large percentage or number of limited 
                English proficient children; and
            ``(2) has limited or no experience in serving limited 
        English proficient children.

    ``(c) Eligible Entity.--In this section, the term `eligible entity' 
means--
            ``(1) one or more local educational agencies;
            ``(2) one or more local educational agencies in 
        collaboration with an institution of higher education, 
        community-based organization, or State educational agency; or
            ``(3) a community-based organization or an institution of 
        higher education that has an application approved by the local 
        educational agency to participate in programs carried out under 
        this subpart by enhancing early childhood education or family 
        education programs or conducting instruction programs that 
        supplement the educational services provided by a local 
        educational agency.

``SEC. 3213. <<NOTE: 20 USC 6913.>> COMPREHENSIVE SCHOOL AND SYSTEMWIDE 
            IMPROVEMENT ACTIVITIES.

    ``(a) Program Authorized.--
            ``(1) Authority.--The Secretary is authorized to award 
        grants to eligible entities having applications approved under 
        section 3214 to enable such entities to develop and implement 
        language instruction educational programs, and improve,

[[Page 115 STAT. 1710]]

        reform, or upgrade programs or operations that serve significant 
        percentages or numbers of limited English proficient children.
            ``(2) Mandatory activities.--Grants awarded under this 
        section shall be used for--
                    ``(A) improving instruction programs for limited 
                English proficient children by acquiring and upgrading 
                curricula and related instruction materials;
                    ``(B) aligning the activities carried out under this 
                section with State and local school reform efforts;
                    ``(C) providing training, aligned with State and 
                local standards, to school personnel and participating 
                community-based organization personnel to improve the 
                instruction and assessment of limited English proficient 
                children;
                    ``(D) developing and implementing plans, coordinated 
                with plans for programs carried out under title II of 
                the Higher Education Act of 1965 (where applicable), and 
                title II of this Act (where applicable), to recruit 
                teachers trained to serve limited English proficient 
                children;
                    ``(E) implementing culturally and linguistically 
                appropriate family education programs, or parent 
                outreach and training activities, that are designed to 
                assist parents of limited English proficient children to 
                become active participants in the education of their 
                children;
                    ``(F) coordinating the activities carried out under 
                this section with other programs, such as programs 
                carried out under this title;
                    ``(G) providing services to meet the full range of 
                the educational needs of limited English proficient 
                children;
                    ``(H) annually assessing the English proficiency of 
                all limited English proficient children served by the 
                activities carried out under this section; and
                    ``(I) developing or improving accountability systems 
                to monitor the academic progress of limited English 
                proficient children.
            ``(3) Permissible activities.--Grants awarded under this 
        section may be used for--
                    ``(A) implementing programs to upgrade reading and 
                other academic skills of limited English proficient 
                children;
                    ``(B) developing and using educational technology to 
                improve learning, assessments, and accountability to 
                meet the needs of limited English proficient children;
                    ``(C) implementing scientifically based research 
                programs to meet the needs of limited English proficient 
                children;
                    ``(D) providing tutorials and academic, or 
                vocational and technical, training for limited English 
                proficient children;
                    ``(E) developing and implementing State and local 
                academic content and student academic achievement 
                standards for learning English as a second language, as 
                well as for learning other languages;
                    ``(F) developing and implementing programs for 
                limited English proficient children to meet the needs of 
                changing populations of such children;
                    ``(G) implementing policies to ensure that limited 
                English proficient children have access to other 
                education

[[Page 115 STAT. 1711]]

                programs (other than programs designed to address 
                limited English proficiency);
                    ``(H) assisting limited English proficient children 
                with disabilities;
                    ``(I) developing and implementing programs to help 
                children become proficient in English and other 
                languages;
                    ``(J) acquiring or developing education technology 
                or instruction materials for limited English proficient 
                children, including materials in languages other than 
                English;
                    ``(K) participating in electronic networks for 
                materials, training, and communication and incorporating 
                information derived from such participation in curricula 
                and programs; and
                    ``(L) carrying out such other activities related to 
                the purpose of this part as the Secretary may approve.
            ``(4) Special rule.--
                    ``(A) Planning.--A recipient of a grant under this 
                section, before carrying out activities under this 
                section, shall plan, train personnel, develop curricula, 
                and acquire or develop materials, but shall not use 
                funds made available under this section for planning 
                purposes for more than 45 days.
                    ``(B) Commencement of activities.--The recipient 
                shall commence carrying out activities under this 
                section not later than the later of--
                          ``(i) the beginning of the first school year 
                      that begins after the grant is received; or
                          ``(ii) 30 days after the date of receipt of 
                      the grant.

    ``(b) Availability of Appropriations.--
            ``(1) Reservation of funds for continued payments.--
                    ``(A) Covered grant.--In this paragraph, the term 
                `covered grant' means a grant--
                          ``(i) that was awarded under section 7112, 
                      7113, 7114, or 7115 (as such sections were in 
                      effect on the day before the date of enactment of 
                      the No Child Left Behind Act of 2001); and
                          ``(ii) for which the grant period has not 
                      ended.
                    ``(B) Reservation.--For any fiscal year that is part 
                of the grant period of a covered grant, the Secretary 
                shall reserve funds for the payments described in 
                subparagraph (C) from the amount appropriated for the 
                fiscal year under section 3001(a) and made available for 
                carrying out this section.
                    ``(C) Payments.--The Secretary shall continue to 
                make grant payments to each entity that received a 
                covered grant, in accordance with the terms of that 
                grant, for the duration of the grant period of the 
                grant, to carry out activities in accordance with the 
                appropriate section described in subparagraph (A)(i).
            ``(2) Availability.--Of the amount appropriated for a fiscal 
        year under section 3001(a) that is made available to carry out 
        this section, and that remains after the Secretary reserves 
        funds for payments under paragraph (1)--
                    ``(A) not less than one-third of the remainder shall 
                be used to award grants to eligible entities for 
                activities carried out within an entire school district; 
                and

[[Page 115 STAT. 1712]]

                    ``(B) not less than two-thirds of the remainder 
                shall be used to award grants to eligible entities for 
                activities carried out within individual schools.

    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an applicant that--
            ``(1) experiences a significant increase in the number or 
        percentage of limited English proficient children enrolled in 
        the applicant's programs and has limited or no experience in 
        serving limited English proficient children;
            ``(2) is a local educational agency that serves a school 
        district that has a total district enrollment that is less than 
        10,000 students;
            ``(3) demonstrates that the applicant has a proven track 
        record of success in helping limited English proficient children 
        learn English and meet high academic standards; or
            ``(4) serves a school district with a large number or 
        percentage of limited English proficient children.

    ``(d) Eligible Entities.--In this section, the term `eligible 
entity' means--
            ``(1) one or more local educational agencies; or
            ``(2) one or more local educational agencies, in 
        collaboration with an institution of higher education, 
        community-based organization, or State educational agency.

``SEC. 3214. APPLICATIONS. <<NOTE: 20 USC 6914.>> 

    ``(a) In General.--
            ``(1) Secretary.--To receive a grant under this subpart, an 
        eligible entity described in section 3212 or 3213 shall submit 
        an application to the Secretary at such time, in such form, and 
        containing such information as the Secretary may require.
            ``(2) <<NOTE: Records.>>  State educational agency.--The 
        eligible entity, with the exception of schools funded by the 
        Bureau of Indian Affairs, shall submit a copy of the application 
        submitted by the entity under this section to the State 
        educational agency.

    ``(b) State Review and Comments.--
            ``(1) Deadline.--The State educational agency, not later 
        than 45 days after receipt of an application under this section, 
        shall review the application and submit the written comments of 
        the agency regarding the application to the Secretary.
            ``(2) Comments.--
                    ``(A) Submission of comments.--Regarding 
                applications submitted under this subpart, the State 
                educational agency shall--
                          ``(i) submit to the Secretary written comments 
                      regarding all such applications; and
                          ``(ii) submit to each eligible entity the 
                      comments that pertain to such entity.
                    ``(B) Subject.--For purposes of this subpart, such 
                comments shall address--
                          ``(i) how the activities to be carried out 
                      under the grant will further the academic 
                      achievement and English proficiency of limited 
                      English proficient children served under the 
                      grant; and
                          ``(ii) how the grant application is consistent 
                      with the State plan required under section 1111.

[[Page 115 STAT. 1713]]

    ``(c) Eligible Entity Comments.--An eligible entity may submit to 
the Secretary comments that address the comments submitted by the State 
educational agency.
    ``(d) Comment Consideration.--In making grants under this subpart, 
the Secretary shall take into consideration comments made by State 
educational agencies.
    ``(e) Waiver.--Notwithstanding subsection (b), the Secretary is 
authorized to waive the review requirement specified in subsection (b) 
if a State educational agency can demonstrate that such review 
requirement may impede such agency's ability to fulfill the requirements 
of participation in the program authorized in section 3224, particularly 
such agency's ability to carry out data collection efforts and such 
agency's ability to provide technical assistance to local educational 
agencies not receiving funds under this subpart.
    ``(f) Required Documentation.--Such application shall include 
documentation that--
            ``(1) the applicant has the qualified personnel required to 
        develop, administer, and implement the program proposed in the 
        application; and
            ``(2) the leadership personnel of each school participating 
        in the program have been involved in the development and 
        planning of the program in the school.

    ``(g) Contents.--
            ``(1) In general.--An application for a grant under this 
        subpart shall contain the following:
                    ``(A) A description of the need for the proposed 
                program, including--
                          ``(i) data on the number of limited English 
                      proficient children in the school or school 
                      district to be served;
                          ``(ii) information on the characteristics of 
                      the children, including--
                                    ``(I) the native languages of the 
                                children;
                                    ``(II) the proficiency of the 
                                children in English and their native 
                                language;
                                    ``(III) achievement data (current as 
                                of the date of submission of the 
                                application) for the limited English 
                                proficient children in--
                                            ``(aa) reading or language 
                                        arts (in English and in the 
                                        native language, if applicable); 
                                        and
                                            ``(bb) mathematics;
                                    ``(IV) a comparison of that data for 
                                the children with that data for the 
                                English proficient peers of the 
                                children; and
                                    ``(V) the previous schooling 
                                experiences of the children;
                          ``(iii) the professional development needs of 
                      the instruction personnel who will provide 
                      services for the limited English proficient 
                      children under the proposed program; and
                          ``(iv) how the services provided through the 
                      grant will supplement the basic services provided 
                      to limited English proficient children.
                    ``(B) A description of the program to be implemented 
                and how such program's design--

[[Page 115 STAT. 1714]]

                          ``(i) relates to the linguistic and academic 
                      needs of the limited English proficient children 
                      to be served;
                          ``(ii) will ensure that the services provided 
                      through the program will supplement the basic 
                      services the applicant provides to limited English 
                      proficient children;
                          ``(iii) will ensure that the program is 
                      coordinated with other programs under this Act and 
                      other Acts;
                          ``(iv) involves the parents of the limited 
                      English proficient children to be served;
                          ``(v) ensures accountability in achieving high 
                      academic standards; and
                          ``(vi) promotes coordination of services for 
                      the limited English proficient children to be 
                      served and their families.
                    ``(C) A description, if appropriate, of the 
                applicant's collaborative activities with institutions 
                of higher education, community-based organizations, 
                local educational agencies or State educational 
                agencies, private schools, nonprofit organizations, or 
                businesses in carrying out the proposed program.
                    ``(D) An assurance that the applicant will not 
                reduce the level of State and local funds that the 
                applicant expends for language instruction educational 
                programs or special alternative instruction programs if 
                the applicant receives an award under this subpart.
                    ``(E) An assurance that the applicant will employ 
                teachers in the proposed program who, individually or in 
                combination, are proficient in--
                          ``(i) English, with respect to written, as 
                      well as oral, communication skills; and
                          ``(ii) the native language of the majority of 
                      the children who the teachers teach, if 
                      instruction in the program is in the native 
                      language as well as English.
                    ``(F) A budget for the grant funds.
            ``(2) Additional information.--Each application for a grant 
        under section 3213 shall--
                    ``(A) describe--
                          ``(i) current services (as of the date of 
                      submission of the application) the applicant 
                      provides to limited English proficient children;
                          ``(ii) what services limited English 
                      proficient children will receive under the grant 
                      that such children will not otherwise receive;
                          ``(iii) how funds received under this subpart 
                      will be integrated with all other Federal, State, 
                      local, and private resources that may be used to 
                      serve limited English proficient children;
                          ``(iv) specific achievement and school 
                      retention goals for the children to be served by 
                      the proposed program and how progress toward 
                      achieving such goals will be measured; and
                          ``(v) the current family education programs 
                      (as of the date of submission of the application) 
                      of the eligible entity, if applicable; and
                    ``(B) provide assurances that--

[[Page 115 STAT. 1715]]

                          ``(i) the program funded with the grant will 
                      be integrated with the overall educational program 
                      of the children served through the proposed 
                      program; and
                          ``(ii) the application has been developed in 
                      consultation with parents and other 
                      representatives of the children to be served in 
                      such program.

    ``(h) Approval of Applications.--An application for a grant under 
this subpart may be approved only if the Secretary determines that--
            ``(1) the program proposed in the application will use 
        qualified personnel, including personnel who are proficient in 
        the language or languages used for instruction;
            ``(2) in designing the program, the eligible entity has, 
        after consultation with appropriate private school officials--
                    ``(A) taken into account the needs of children in 
                nonprofit private elementary schools and secondary 
                schools; and
                    ``(B) in a manner consistent with the number of such 
                children enrolled in such schools in the area to be 
                served, whose educational needs are of the type and 
                whose language, and grade levels are of a similar type 
                to the needs, language, and grade levels that the 
                program is intended to address, provided for the 
                participation of such children on a basis comparable to 
                the basis on which public school children participate;
            ``(3)(A) student evaluation and assessment procedures in the 
        program are valid and reliable for limited English proficient 
        children; and
            ``(B) limited English proficient children with disabilities 
        will be identified and served through the program in accordance 
        with the requirements of the Individuals with Disabilities 
        Education Act;
            ``(4) Federal funds made available for the program will be 
        used to supplement the State and local funds that, in the 
        absence of such Federal funds, would be expended for special 
        programs for children of limited English proficient individuals, 
        and in no case to supplant such State and local funds, except 
        that nothing in this paragraph shall be construed to preclude a 
        local educational agency from using funds made available under 
        this subpart--
                    ``(A) for activities carried out under an order of a 
                Federal or State court respecting services to be 
                provided to such children; or
                    ``(B) to carry out a plan approved by the Secretary 
                as adequate under title VI of the Civil Rights Act of 
                1964 with respect to services to be provided to such 
                children;
            ``(5)(A) the assistance provided through the grant will 
        contribute toward building the capacity of the eligible entity 
        to provide a program on a regular basis, similar to the proposed 
        program, that will be of sufficient size, scope, and quality to 
        promise significant improvement in the education of limited 
        English proficient children; and
            ``(B) the eligible entity will have the resources and 
        commitment to continue the program of sufficient size, scope, 
        and quality when assistance under this subpart is reduced or no 
        longer available; and

[[Page 115 STAT. 1716]]

            ``(6) the eligible entity will use State and national 
        dissemination sources for program design and dissemination of 
        results and products.

    ``(i) Consideration.--In determining whether to approve an 
application under this subpart, the Secretary shall give consideration 
to--
            ``(1) the degree to which the program for which assistance 
        is sought involves the collaborative efforts of institutions of 
        higher education, community-based organizations, the appropriate 
        local educational agency and State educational agency, or 
        businesses; and
            ``(2) whether the application provides for training for 
        personnel participating in, or preparing to participate in, a 
        program that will assist such personnel in meeting State and 
        local certification requirements.

``SEC. 3215. CAPACITY BUILDING. <<NOTE: 20 USC 6915.>> 

    ``Each recipient of a grant under this subpart shall use the grant 
in ways that will build such recipient's capacity to continue to offer 
high-quality language instruction educational programs and special 
alternative instruction programs to limited English proficient children 
after Federal assistance is reduced or eliminated.

``SEC. 3216. <<NOTE: 20 USC 6916.>> PROGRAMS FOR NATIVE AMERICANS AND 
            PUERTO RICO.

    ``Notwithstanding any other provision of this part, programs 
authorized under this subpart that serve Native American (including 
Native American Pacific Islander) children and children in the 
Commonwealth of Puerto Rico may include programs of instruction, teacher 
training, curriculum development, evaluation, and assessment designed 
for Native American children learning and studying Native American 
languages and children of limited Spanish proficiency, except that an 
outcome of programs serving such children shall be increased English 
proficiency among such children.

``SEC. 3217. EVALUATIONS. <<NOTE: 20 USC 6917.>> 

    ``(a) <<NOTE: Reports.>>  Evaluation.--Each recipient of funds under 
this subpart for a program shall annually conduct an evaluation of the 
program and submit to the Secretary a report concerning the evaluation, 
in the form prescribed by the Secretary.

    ``(b) Use of Evaluation.--Such evaluation shall be used by the grant 
recipient--
            ``(1) for program improvement;
            ``(2) to further define the program's goals and objectives; 
        and
            ``(3) to determine program effectiveness.

    ``(c) Evaluation Report Components.--In preparing the evaluation 
reports, the recipient shall--
            ``(1) use the data provided in the application submitted by 
        the recipient under section 3214 as baseline data against which 
        to report academic achievement and gains in English proficiency 
        for children in the program;
            ``(2) disaggregate the results of the evaluation by gender, 
        native languages spoken by children, socioeconomic status, and 
        whether the children have disabilities;
            ``(3) include data on the progress of the recipient in 
        achieving the objectives of the program, including data 
        demonstrating the extent to which children served by the program

[[Page 115 STAT. 1717]]

        are meeting the challenging State academic content and student 
        academic achievement standards, and including data comparing 
        limited English proficient children with English proficient 
        children with regard to school retention and academic 
        achievement concerning--
                    ``(A) reading and language arts;
                    ``(B) English proficiency;
                    ``(C) mathematics; and
                    ``(D) the native language of the children, if the 
                program develops native language proficiency;
            ``(4) include information on the extent that professional 
        development activities carried out through the program have 
        resulted in improved classroom practices and improved student 
        academic achievement;
            lude a description of how the activities carried out through 
        the program are coordinated and integrated with the other 
        Federal, State, or local programs serving limited English 
        proficient children; and
            ``(6) include such other information as the Secretary may 
        require.

``SEC. 3218. CONSTRUCTION. <<NOTE: 20 USC 6918.>> 

    ``Nothing in this subpart shall be construed to prohibit a local 
educational agency from serving limited English proficient children 
simultaneously with children with similar educational needs, in the same 
educational settings where appropriate.

          ``Subpart 2--Research, Evaluation, and Dissemination

``SEC. 3221. AUTHORITY. <<NOTE: 20 USC 6931.>> 

    ``(a) In General.--The Secretary is authorized to conduct data 
collection, dissemination, research, and ongoing program evaluation 
activities in accordance with the provisions of this subpart for the 
purpose of improving language instruction educational programs and 
special alternative instruction programs for limited English proficient 
children.
    ``(b) Competitive Awards.--Research and program evaluation 
activities carried out under this subpart shall be supported through 
competitive grants, contracts, and cooperative agreements awarded to 
institutions of higher education, nonprofit organizations, State 
educational agencies, and local educational agencies.
    ``(c) Administration.--The Secretary shall conduct data collection, 
dissemination, and ongoing program evaluation activities authorized by 
this subpart through the Office of English Language Acquisition, 
Language Enhancement, and Academic Achievement for Limited English 
Proficient Students.

``SEC. 3222. RESEARCH. <<NOTE: 20 USC 6932.>> 

    ``(a) Administration.--The Secretary shall conduct research 
activities authorized by this subpart through the Office of Educational 
Research and Improvement in coordination and collaboration with the 
Office of English Language Acquisition, Language Enhancement, and 
Academic Achievement for Limited English Proficient Students.
    ``(b) Requirements.--Such research activities--

[[Page 115 STAT. 1718]]

            ``(1) shall have a practical application to teachers, 
        counselors, paraprofessionals, school administrators, parents, 
        and others involved in improving the education of limited 
        English proficient children and their families;
            ``(2) may include research on effective instruction 
        practices for multilingual classes, and on effective instruction 
        strategies to be used by a teacher or other staff member who 
        does not know the native language of a limited English 
        proficient child in the teacher's or staff member's classroom;
            ``(3) may include establishing (through the National Center 
        for Education Statistics in consultation with experts in second 
        language acquisition and scientifically based research on 
        teaching limited English proficient children) a common 
        definition of `limited English proficient child' for purposes of 
        national data collection; and
            ``(4) shall be administered by individuals with expertise in 
        second language acquisition, scientifically based research on 
        teaching limited English proficient children, and the needs of 
        limited English proficient children and their families.

    ``(c) Field-Initiated Research.--
            ``(1) In general.--The Secretary shall reserve not less than 
        5 percent of the funds made available to carry out this section 
        for field-initiated research conducted by recipients of grants 
        under subpart 1 or this subpart who have received such grants 
        within the previous 5 years. Such research may provide for 
        longitudinal studies of limited English proficient children or 
        teachers who serve such children, monitoring the education of 
        such children from entry into language instruction educational 
        programs through secondary school completion.
            ``(2) Applications.--An applicant for assistance under this 
        subsection may submit an application for such assistance to the 
        Secretary at the same time as the applicant submits another 
        application under subpart 1 or this subpart. The Secretary shall 
        complete a review of such applications on a timely basis to 
        allow the activities carried out under research and program 
        grants to be coordinated when recipients are awarded two or more 
        of such grants.

    ``(d) Consultation.--The Secretary shall consult with agencies, 
organizations, and individuals that are engaged in research and practice 
on the education of limited English proficient children, language 
instruction educational programs, or related research, to identify areas 
of study and activities to be funded under this section.
    ``(e) Data Collection.--The Secretary shall provide for the 
collection of data on limited English proficient children as part of the 
data systems operated by the Department.

``SEC. 3223. ACADEMIC EXCELLENCE AWARDS. <<NOTE: 20 USC 6933.>> 

    ``(a) Authority.--The Secretary may make grants to State educational 
agencies to assist the agencies in recognizing local educational 
agencies and other public and nonprofit entities whose programs have--
            ``(1) demonstrated significant progress in assisting limited 
        English proficient children to learn English according to age 
        appropriate and developmentally appropriate standards; and
            ``(2) demonstrated significant progress in assisting limited 
        English proficient children to meet, according to age 
        appropriate

[[Page 115 STAT. 1719]]

        and developmentally appropriate standards, the same challenging 
        State academic content and student academic achievement 
        standards as all children are expected to meet.

    ``(b) Applications.--A State educational agency desiring a grant 
under this section shall include an application for such grant in the 
application submitted by the agency under section 3224(e).

``SEC. 3224. STATE GRANT PROGRAM. <<NOTE: 20 USC 6934.>> 

    ``(a) State Grant Program.--The Secretary is authorized to make an 
award to a State educational agency that demonstrates, to the 
satisfaction of the Secretary, that such agency, through such agency's 
programs and other Federal education programs, effectively provides for 
the education of limited English proficient children within the State.
    ``(b) Payments.--The amount paid to a State educational agency under 
subsection (a) shall not exceed 5 percent of the total amount awarded to 
local educational agencies and entities within the State under subpart 1 
for the previous fiscal year, except that in no case shall the amount 
paid by the Secretary to any State educational agency under this 
subsection for any fiscal year be less than $100,000.
    ``(c) Use of Funds.--
            ``(1) In general.--A State educational agency shall use 
        funds awarded under this section--
                    ``(A) to assist local educational agencies in the 
                State with activities that--
                          ``(i) consist of program design, capacity 
                      building, assessment of student academic 
                      achievement, program evaluation, and development 
                      of data collection and accountability systems for 
                      limited English proficient children; and
                          ``(ii) are aligned with State reform efforts; 
                      and
                    ``(B) to collect data on the State's limited English 
                proficient populations and document the services 
                available to all such populations.
            ``(2) Training.--The State educational agency may also use 
        funds provided under this section for the training of State 
        educational agency personnel in educational issues affecting 
        limited English proficient children.
            ``(3) Special rule.--Recipients of funds under this section 
        shall not restrict the provision of services under this section 
        to federally funded programs.

    ``(d) State Consultation.--A State educational agency receiving 
funds under this section shall consult with recipients of grants under 
this subpart and other individuals or organizations involved in the 
development or operation of programs serving limited English proficient 
children to ensure that such funds are used in a manner consistent with 
the requirements of this subpart.
    ``(e) Applications.--A State educational agency desiring to receive 
funds under this section shall submit an application to the Secretary at 
such time, in such form, and containing such information and assurances 
as the Secretary may require.
    ``(f) Supplement, Not Supplant.--Federal funds made available under 
this section for any fiscal year shall be used by the State educational 
agency to supplement and, to the extent practical, to increase the State 
funds that, in the absence of such Federal

[[Page 115 STAT. 1720]]

funds, would be made available for the purposes described in this 
section, and in no case to supplant such State funds.
    ``(g) Report to the Secretary.--A State educational agency receiving 
an award under this section shall provide for the annual submission of a 
summary report to the Secretary describing such State's use of the funds 
made available through the award.

``SEC. 3225. INSTRUCTION MATERIALS DEVELOPMENT. <<NOTE: 20 USC 6935.>> 

    ``(a) In General.--The Secretary may make grants for the 
development, publication, and dissemination of high-quality instruction 
materials--
            ``(1) in Native American languages (including Native 
        Hawaiian languages and the language of Native American Pacific 
        Islanders), and the language of natives of the outlying areas, 
        for which instruction materials are not readily available; and
            ``(2) in other low-incidence languages in the United States 
        for which instruction materials are not readily available.

    ``(b) Priority.--In making the grants, the Secretary shall give 
priority to applicants for the grants who propose--
            ``(1) to develop instruction materials in languages 
        indigenous to the United States or the outlying areas; and
            ``(2) to develop and evaluate materials, in collaboration 
        with entities carrying out activities assisted under subpart 1 
        and this subpart, that are consistent with challenging State 
        academic content and student academic achievement standards.

                  ``Subpart 3--Professional Development

``SEC. 3231. PROFESSIONAL DEVELOPMENT GRANTS. <<NOTE: 20 USC 6951.>> 

    ``(a) Purpose.--The purpose of this section is to provide assistance 
to prepare educators to improve educational services for limited English 
proficient children by--
            ``(1) supporting professional development programs and 
        activities to prepare teachers, pupil service personnel, 
        administrators, and other educational personnel working in 
        language instruction educational programs to provide effective 
        services to limited English proficient children;
            ``(2) incorporating curricula and resources concerning 
        appropriate and effective instruction and assessment 
        methodologies specific to limited English proficient children 
        into preservice and inservice professional development programs;
            ``(3) upgrading the qualifications and skills of non-
        certified educational personnel, including paraprofessionals, to 
        enable such personnel to meet high professional standards for 
        educating limited English proficient children;
            ``(4) improving the quality of professional development 
        programs in schools or departments of education at institutions 
        of higher education, for educational personnel serving, or 
        preparing to serve, limited English proficient children; and
            ``(5) supporting the recruitment and training of prospective 
        educational personnel to serve limited English proficient 
        children by providing fellowships for undergraduate, graduate, 
        doctoral, and post-doctoral study related to the instruction of 
        such children.

    ``(b) Authorization.--

[[Page 115 STAT. 1721]]

            ``(1) In general.--The Secretary is authorized to award 
        grants under this section to--
                    ``(A) State educational agencies;
                    ``(B) local educational agencies;
                    ``(C) institutions of higher education; or
                    ``(D) consortia of one or more local educational 
                agencies, State educational agencies, institutions of 
                higher education, for-profit organizations, or nonprofit 
                organizations.
            ``(2) Duration.--Each grant awarded under this section shall 
        be awarded for a period of not more than 4 years.

    ``(c) Authorized Activities.--Grants awarded under this section 
shall be used to conduct high-quality professional development programs 
and effective activities to improve the quality of instruction and 
services provided to limited English proficient children, including--
            ``(1) implementing preservice and inservice professional 
        development programs for teachers who serve limited English 
        proficient children, administrators, and other educational 
        personnel who are preparing to provide educational services for 
        limited English proficient children, including professional 
        development programs that assist limited English proficient 
        children to attain English proficiency;
            ``(2) implementing school-based collaborative efforts among 
        teachers to improve instruction in core academic subjects, 
        especially reading, for limited English proficient children;
            ``(3) developing and implementing programs to assist 
        beginning teachers who serve limited English proficient children 
        with transitioning to the teaching profession, including 
        programs that provide mentoring and team teaching with trained 
        and experienced teachers;
            ``(4) implementing programs that support effective teacher 
        use of education technologies to improve instruction and 
        assessment;
            ``(5) developing curricular materials and assessments for 
        teachers that are appropriate to the needs of limited English 
        proficient children, and that are aligned with challenging State 
        academic content and student academic achievement standards, 
        including materials and assessments that ensure limited English 
        proficient children attain English proficiency;
            ``(6) integrating and coordinating activities with entities 
        carrying out other programs consistent with the purpose of this 
        section and supported under this Act, or other Acts as 
        appropriate;
            ``(7) developing and implementing career ladder programs to 
        upgrade the qualifications and skills of non-certified 
        educational personnel working in, or preparing to work in, 
        language instruction educational programs to enable such 
        personnel to meet high professional standards, including 
        standards for certification and licensure as teachers;
            ``(8) developing and implementing activities to help recruit 
        and train secondary school students as teachers who serve 
        limited English proficient children;
            ``(9) providing fellowships and assistance for costs related 
        to enrollment in a course of study at an institution of higher 
        education that addresses the instruction of limited English 
        proficient children in such areas as teacher training, program

[[Page 115 STAT. 1722]]

        administration, research, evaluation, and curriculum 
        development, and for the support of dissertation research 
        related to such study, except that any person receiving such a 
        fellowship or assistance shall agree to--
                    ``(A) work in an activity related to improving the 
                educational services for limited English proficient 
                children authorized under this subpart, including work 
                as a teacher that serves limited English proficient 
                children, for a period of time equivalent to the period 
                of time during which such person receives assistance 
                under this paragraph; or
                    ``(B) repay such assistance; and
            ``(10) carrying out such other activities as are consistent 
        with the purpose of this section.

    ``(d) Application.--
            ``(1) In general.--Each eligible entity desiring a grant 
        under this section shall submit an application to the Secretary 
        at such time, in such form, and containing such information as 
        the Secretary may require.
            ``(2) Contents.--Each application shall--
                    ``(A) describe the programs and activities proposed 
                to be developed, implemented, and administered under the 
                award;
                    ``(B) describe how the applicant has consulted with, 
                and assessed the needs of, public and private schools 
                serving limited English proficient children to determine 
                such schools' need for, and the design of, the program 
                for which funds are sought; and
                    ``(C) describe how the programs and activities to be 
                carried out under the award will be used to ensure that 
                limited English proficient children meet challenging 
                State academic content and student academic achievement 
                standards and attain English proficiency.
            ``(3) Special rule.--An eligible entity that proposes to 
        conduct a master's-level or doctoral-level program with funds 
        received under this section shall include in the entity's 
        application an assurance that such program will include a 
        training practicum in a local elementary school or secondary 
        school program serving limited English proficient children.
            ``(4) Outreach and technical assistance.--The Secretary 
        shall provide for outreach and technical assistance to 
        institutions of higher education eligible for assistance under 
        title III of the Higher Education Act of 1965, and institutions 
        of higher education that are operated or funded by the Bureau of 
        Indian Affairs, to facilitate the participation of such 
        institutions in programs and activities under this section.
            ``(5) Distribution rule.--In making awards under this 
        section, the Secretary shall ensure adequate representation of 
        Hispanic-serving institutions that demonstrate competence and 
        experience in carrying out the programs and activities 
        authorized under this section and that are otherwise qualified.

    ``(e) Priorities in Awarding Grants.--
            ``(1) Grants to agencies.--In awarding grants to State 
        educational agencies and local educational agencies under this 
        section, the Secretary shall give priority to agencies that 
        propose programs and activities designed to implement 
        professional development programs for teachers and educational 
        personnel who are providing or preparing to provide educational

[[Page 115 STAT. 1723]]

        services for limited English proficient children, including 
        services provided through language instruction educational 
        programs, that ensure such children attain English proficiency 
        and meet challenging State academic content and student academic 
        achievement standards.
            ``(2) Grants to institutions of higher education.--In 
        awarding grants to institutions of higher education under this 
        section, the Secretary shall give priority to institutions that 
        propose programs and activities to recruit and upgrade the 
        qualifications and skills of certified and non-certified 
        educational personnel by offering degree programs that prepare 
        beginning teachers to serve limited English proficient children.

    ``(f) Program Evaluations.--Each recipient of an award under this 
section for a program or activity shall annually conduct an independent 
evaluation of the program or activity and submit to the Secretary a 
report containing such evaluation. Such report shall include information 
on--
            ``(1) the program or activity conducted by the recipient to 
        provide high-quality professional development to participants in 
        such program or activity;
            ``(2) the number of participants served through the program 
        or activity, the number of participants who completed the 
        requirements of the program or activity, and the number of 
        participants who took positions in an instruction setting with 
        limited English proficient children;
            ``(3) the effectiveness of the program or activity in 
        imparting the professional skills necessary for participants to 
        achieve the objectives of the program or activity; and
            ``(4) the teaching effectiveness of graduates of the program 
        or activity or other participants who have completed the program 
        or activity.

           ``Subpart 4--Emergency Immigrant Education Program

``SEC. 3241. PURPOSE. <<NOTE: 20 USC 6961.>> 

    ``The purpose of this subpart is to assist eligible local 
educational agencies that experience unexpectedly large increases in 
their student population due to immigration--
            ``(1) to provide high-quality instruction to immigrant 
        children and youth; and
            ``(2) to help such children and youth--
                    ``(A) with their transition into American society; 
                and
                    ``(B) meet the same challenging State academic 
                content and student academic achievement standards as 
                all children are expected to meet.

``SEC. 3242. STATE ADMINISTRATIVE COSTS. <<NOTE: 20 USC 6962.>> 

    ``For any fiscal year, a State educational agency may reserve not 
more than 1.5 percent (2 percent if the State educational agency 
distributes funds received under this subpart to local educational 
agencies on a competitive basis) of the amount allotted to such agency 
under section 3244 to pay the costs of performing such agency's 
administrative functions under this subpart.

[[Page 115 STAT. 1724]]

``SEC. 3243. WITHHOLDING. <<NOTE: 20 USC 6963.>> 

    ``Whenever the <<NOTE: Notification.>> Secretary, after providing 
reasonable notice and opportunity for a hearing to any State educational 
agency, finds that there is a failure to comply with a requirement of 
any provision of this subpart, the Secretary shall notify that agency 
that further payments will not be made to the agency under this subpart 
or, in the discretion of the Secretary, that the State educational 
agency shall not make further payments under this subpart to specified 
local educational agencies whose actions cause or are involved in such 
failure until the Secretary is satisfied that there is no longer any 
such failure to comply. Until the Secretary is so satisfied, no further 
payments shall be made to the State educational agency under this 
subpart, or payments by the State educational agency under this subpart 
shall be limited to local educational agencies whose actions did not 
cause or were not involved in the failure, as the case may be.

``SEC. 3244. STATE ALLOTMENTS. <<NOTE: 20 USC 6964.>> 

    ``(a) Payments.--The Secretary shall, in accordance with the 
provisions of this section, make payments to State educational agencies 
for each of the fiscal years 2002 through 2008 for the purpose set forth 
in section 3241.
    ``(b) Allotments.--
            ``(1) In general.--Except as provided in subsections (c) and 
        (d), of the amount appropriated for each fiscal year for this 
        subpart, each State participating in the program assisted under 
        this subpart shall receive an allotment equal to the proportion 
        of the number of immigrant children and youth who are enrolled 
        in public elementary schools or secondary schools under the 
        jurisdiction of each local educational agency described in 
        paragraph (2), and in nonpublic elementary schools or secondary 
        schools within the district served by each such local 
        educational agency within such State, relative to the total 
        number of immigrant children and youth so enrolled in all the 
        States participating in the program assisted under this subpart.
            ``(2) Eligible local educational agencies.--A local 
        educational agency referred to in paragraph (1) is a local 
        educational agency for which the sum of the number of immigrant 
        children and youth who are enrolled in public elementary schools 
        or secondary schools under the jurisdiction of such agency, and 
        in nonpublic elementary schools or secondary schools within the 
        district served by such agency, during the fiscal year for which 
        the payments are to be made under this subpart, is equal to at 
        least--
                    ``(A) 500; or
                    ``(B) 3 percent of the total number of children 
                enrolled in such public or nonpublic schools during such 
                fiscal year,
        whichever is less.

    ``(c) Determinations of Number of Children and Youth.--
            ``(1) In general.--Determinations by the Secretary under 
        this section for any period with respect to the number of 
        immigrant children and youth shall be made on the basis of data 
        or estimates provided to the Secretary by each State educational 
        agency in accordance with criteria established by the Secretary, 
        unless the Secretary determines, after notice

[[Page 115 STAT. 1725]]

        and opportunity for a hearing to the affected State educational 
        agency, that such data or estimates are clearly erroneous.
            ``(2) Special rule.--No such determination with respect to 
        the number of immigrant children and youth shall operate because 
        of an underestimate or overestimate to deprive any State 
        educational agency of the allotment under this section that such 
        State would otherwise have received had such determination been 
        made on the basis of accurate data.

    ``(d) Reallotment.--
            ``(1) In general.--Whenever the Secretary determines that 
        any amount of a payment made to a State under this subpart for a 
        fiscal year will not be used by such State for carrying out the 
        purpose for which the payment was made, the Secretary shall make 
        such amount available for carrying out such purpose to one or 
        more other States to the extent the Secretary determines that 
        such other States will be able to use such additional amount for 
        carrying out such purpose.
            ``(2) Fiscal year.--Any amount made available to a State 
        from any appropriation for a fiscal year in accordance with 
        paragraph (1) shall, for purposes of this subpart, be regarded 
        as part of such State's payment (as determined under subsection 
        (b)) for such year, but shall remain available until the end of 
        the succeeding fiscal year.

    ``(e) Reservation of Funds.--
            ``(1) In general.--Notwithstanding any other provision of 
        this subpart, if the amount appropriated to carry out this 
        subpart exceeds $50,000,000 for a fiscal year, a State 
        educational agency may reserve not more than 20 percent of such 
        agency's payment under this subpart for such year to award 
        grants, on a competitive basis, to local educational agencies 
        within the State as follows:
                    ``(A) Agencies with immigrant children and youth.--
                At least \1/2\ of the funds reserved under this 
                paragraph shall be made available to eligible local 
                educational agencies (as described in subsection (b)(2)) 
                within the State with the highest numbers and 
                percentages of immigrant children and youth.
                    ``(B) Agencies with a sudden influx of children and 
                youth.--Funds reserved under this paragraph and not made 
                available under subparagraph (A) may be distributed to 
                local educational agencies within the State that are 
                experiencing a sudden influx of immigrant children and 
                youth and that are otherwise not eligible for assistance 
                under this subpart.
            ``(2) Use of grant funds.--Each local educational agency 
        receiving a grant under paragraph (1) shall use such grant funds 
        to carry out the activities described in section 3247.
            ``(3) Information.--Local educational agencies receiving 
        funds under paragraph (1) with the highest number of immigrant 
        children and youth may make information available on serving 
        immigrant children and youth to local educational agencies in 
        the State with sparse numbers of such children and youth.

``SEC. 3245. <<NOTE: 20 USC 6965.>>  STATE APPLICATIONS.

    ``(a) Submission.--No State educational agency shall receive any 
payment under this subpart for any fiscal year unless such

[[Page 115 STAT. 1726]]

agency submits an application to the Secretary at such time, in such 
manner, and containing or accompanied by such information, as the 
Secretary may reasonably require. Each such application shall--
            ``(1) provide that the educational programs, services, and 
        activities for which payments under this subpart are made will 
        be administered by or under the supervision of the agency;
            ``(2) provide assurances that payments under this subpart 
        will be used for purposes set forth in sections 3241 and 3247, 
        including a description of how local educational agencies 
        receiving funds under this subpart will use such funds to meet 
        such purposes and will coordinate with entities carrying out 
        other programs and activities assisted under this Act, and other 
        Acts as appropriate;
            ``(3) provide an assurance that local educational agencies 
        receiving funds under this subpart will coordinate the use of 
        such funds with entities carrying out programs and activities 
        assisted under part A of title I;
            ``(4) provide assurances that such payments, with the 
        exception of payments reserved under section 3244(e), will be 
        distributed among local educational agencies within that State 
        on the basis of the number of immigrant children and youth 
        counted with respect to each such local educational agency under 
        section 3244(b)(1);
            ``(5) provide assurances that the State educational agency 
        will not finally disapprove in whole or in part any application 
        for funds received under this subpart without first affording 
        the local educational agency submitting an application for such 
        funds reasonable notice and opportunity for a hearing;
            ``(6) provide for making such reports as the Secretary may 
        reasonably require to perform the Secretary's functions under 
        this subpart;
            ``(7) provide assurances--
                    ``(A) that to the extent consistent with the number 
                of immigrant children and youth enrolled in the 
                nonpublic elementary schools or secondary schools within 
                the district served by a local educational agency, such 
                agency, after consultation with appropriate officials of 
                such schools, shall provide for the benefit of such 
                children and youth secular, neutral, and nonideological 
                services, materials, and equipment necessary for the 
                education of such children and youth;
                    ``(B) that the control of funds provided under this 
                subpart for any materials or equipment, or property 
                repaired, remodeled, or constructed with those funds 
                shall be in a public agency for the uses and purpose 
                provided in this subpart, and a public agency shall 
                administer such funds and property; and
                    ``(C) that the provision of services pursuant to 
                this paragraph shall be provided by employees of a 
                public agency or through contract by such public agency 
                with a person, association, agency, or corporation who 
                or which, in the provision of such services, is 
                independent of such nonpublic elementary school or 
                secondary school and of any religious organization, and 
                such employment or contract shall be under the control 
                and supervision of such

[[Page 115 STAT. 1727]]

                public agency, and the funds provided under this 
                paragraph shall not be commingled with State or local 
                funds;
            ``(8) provide that funds reserved under section 3244(e) be 
        awarded on a competitive basis based on merit and need in 
        accordance with such section; and
            ``(9) provide an assurance that the State educational agency 
        and local educational agencies in the State receiving funds 
        under this subpart will comply with the requirements of section 
        1120(b).

    ``(b) Application Review.--
            ``(1) In general.--The Secretary shall review all 
        applications submitted pursuant to this section by State 
        educational agencies.
            ``(2) Approval.--The Secretary shall approve any application 
        submitted by a State educational agency that meets the 
        requirements of this section.
            ``(3) Disapproval.--The Secretary shall disapprove any 
        application submitted by a State educational agency that does 
        not meet the requirements of this section, but shall not finally 
        disapprove an application except after providing reasonable 
        notice, technical assistance, and an opportunity for a hearing 
        to the State educational agency.

``SEC. 3246. <<NOTE: 20 USC 6966.>>  ADMINISTRATIVE PROVISIONS.

    ``(a) <<NOTE: Deadline.>>  Notification of Amount.--The Secretary, 
not later than June 1 of each year, shall notify each State educational 
agency that has an application approved under section 3245 of the amount 
of such agency's allotment under section 3244 for the succeeding year.

    ``(b) Services to Immigrant Children and Youth Enrolled in Nonpublic 
Schools.--If by reason of any provision of law a local educational 
agency is prohibited from providing educational services for immigrant 
children and youth enrolled in nonpublic elementary schools and 
secondary schools, as required by section 3245(a)(7), or if the 
Secretary determines that a local educational agency has substantially 
failed or is unwilling to provide for the participation on an equitable 
basis of such children and youth enrolled in such schools, the Secretary 
may waive such requirement and shall arrange for the provision of 
services, subject to the requirements of this subpart, to such children 
and youth. Such waivers shall be subject to consultation, withholding, 
notice, and judicial review requirements in accordance with the 
provisions of title I.

``SEC. 3247. <<NOTE: 20 USC 6967.>>  USES OF FUNDS.

    ``(a) Use of Funds.--Funds awarded under this subpart shall be used 
to pay for enhanced instructional opportunities for immigrant children 
and youth, which may include--
            ``(1) family literacy, parent outreach, and training 
        activities designed to assist parents to become active 
        participants in the education of their children;
            ``(2) support of personnel, including teacher aides who have 
        been specifically trained, or are being trained, to provide 
        services to immigrant children and youth;
            ``(3) tutorials, mentoring, and academic or career 
        counseling for immigrant children and youth;
            ``(4) identification and acquisition of curricular 
        materials, educational software, and technologies;

[[Page 115 STAT. 1728]]

            ``(5) the provision of basic instruction services that are 
        directly attributable to the presence in the school district of 
        immigrant children and youth, including payment of costs of 
        providing additional classroom supplies, costs of 
        transportation, or such other costs as are directly attributable 
        to such additional basic instruction services; and
            ``(6) such other activities, related to the purpose of this 
        subpart, as the Secretary may authorize.

    ``(b) Consortia.--A local educational agency that receives a grant 
under this subpart may collaborate or form a consortium with one or more 
local educational agencies, institutions of higher education, and 
nonprofit organizations to carry out a program described in an 
application approved under this subpart.
    ``(c) Subgrants.--A local educational agency that receives a grant 
under this subpart may, with the approval of the Secretary, make a 
subgrant to, or enter into a contract with, an institution of higher 
education, a nonprofit organization, or a consortium of such 
institutions or organizations to carry out a program described in an 
application approved under this subpart, including a program to serve 
out-of-school youth.
    ``(d) Construction.--Nothing in this subpart shall be construed to 
prohibit a local educational agency from serving immigrant children and 
youth simultaneously with children and youth with similar educational 
needs, in the same educational settings where appropriate.

``SEC. 3248. <<NOTE: 20 USC 6968.>>  REPORTS.

    ``(a) Biennial Report.--Each State educational agency receiving 
funds under this subpart shall submit, once every 2 years, a report to 
the Secretary concerning the expenditure of funds by local educational 
agencies under this subpart. Each local educational agency receiving 
funds under this subpart shall submit to the State educational agency 
such information as may be necessary for such report.
    ``(b) Report to Congress.--The Secretary shall submit, once every 2 
years, a report to the appropriate committees of Congress concerning 
programs assisted under this subpart.

                       ``Subpart 5--Administration

``SEC. 3251. <<NOTE: 20 USC 6981.>>  RELEASE TIME.

    ``The Secretary shall allow entities carrying out professional 
development programs funded under this part to use funds provided under 
this part for professional release time to enable individuals to 
participate in programs assisted under this part.

``SEC. 3252. <<NOTE: 20 USC 6982.>>  NOTIFICATION.

    ``A State educational agency, and when applicable, the State board 
for postsecondary education, shall be notified within 3 working days 
after the date an award under this part is made to an eligible entity 
within the State.

``SEC. 3253. <<NOTE: 20 USC 6983.>>  COORDINATION AND REPORTING 
            REQUIREMENTS.

    ``(a) Coordination With Related Programs.--In order to maximize 
Federal efforts aimed at serving the educational needs of children and 
youth of limited English proficiency, the Secretary shall coordinate and 
ensure close cooperation with other programs serving language-minority 
and limited English proficient children

[[Page 115 STAT. 1729]]

that are administered by the Department and other agencies. The 
Secretary shall consult with the Secretary of Labor, the Secretary of 
Health and Human Services, the Secretary of Agriculture, the Attorney 
General, and the heads of other relevant agencies to identify and 
eliminate barriers to appropriate coordination of programs that affect 
language-minority and limited English proficient children and their 
families. The Secretary shall provide for continuing consultation and 
collaboration, between the Office of English Language Acquisition, 
Language Enhancement, and Academic Achievement for Limited English 
Proficient Students and relevant programs operated by the Department, 
including programs under this part and other programs under this Act, in 
planning, contracts, providing joint technical assistance, providing 
joint field monitoring activities and in other relevant activities to 
ensure effective program coordination to provide high-quality 
educational opportunities to all language-minority and limited English 
proficient children.
    ``(b) Data.--The Secretary shall, to the extent feasible, ensure 
that all data collected by the Department shall include the collection 
and reporting of data on limited English proficient children.
    ``(c) Publication of Proposals.--The Secretary shall publish and 
disseminate all requests for proposals for programs funded under this 
part.
    ``(d) <<NOTE: Deadline.>>  Report.--The Director shall prepare and, 
not later than February 1 of every other year, shall submit to the 
Secretary, the Committee on Education and the Workforce of the House of 
Representatives, and the Committee on Health, Education, Labor, and 
Pensions of the Senate a report--
            ``(1) on programs and activities carried out to serve 
        limited English proficient children under this part, and the 
        effectiveness of such programs and activities in improving the 
        academic achievement and English proficiency of children who are 
        limited English proficient;
            ``(2) containing a critical synthesis of data reported by 
        States under section 3224, when applicable;
            ``(3) containing an estimate of the number of certified or 
        licensed teachers working in language instruction educational 
        programs and educating limited English proficient children, and 
        an estimate of the number of such teachers that will be needed 
        for the succeeding 5 fiscal years;
            ``(4) containing the major findings of scientifically based 
        research carried out under this part; and
            ``(5) containing other information gathered from the reports 
        submitted to the Secretary under this title when applicable.

                      ``PART C--GENERAL PROVISIONS

``SEC. 3301. <<NOTE: 20 USC 7011.>>  DEFINITIONS.

    ``Except as otherwise provided, in this title:
            ``(1) Child.--The term `child' means any individual aged 3 
        through 21.
            ``(2) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization of 
        demonstrated effectiveness, Indian tribe, or tribally sanctioned 
        educational authority, that is representative of a community or 
        significant segments of a community and that provides 
        educational or related services to individuals in the community.

[[Page 115 STAT. 1730]]

        Such term includes a Native Hawaiian or Native American Pacific 
        Islander native language educational organization.
            ``(3) Community college.--The term `community college' means 
        an institution of higher education as defined in section 101 of 
        the Higher Education Act of 1965 that provides not less than a 
        2-year program that is acceptable for full credit toward a 
        bachelor's degree, including institutions receiving assistance 
        under the Tribally Controlled College or University Assistance 
        Act of 1978.
            ``(4) Director.--The term `Director' means the Director of 
        the Office of English Language Acquisition, Language 
        Enhancement, and Academic Achievement for Limited English 
        Proficient Students established under section 209 of the 
        Department of Education Organization Act.
            ``(5) Family education program.--The term `family education 
        program' means a language instruction educational program or 
        special alternative instruction program that--
                    ``(A) is designed--
                          ``(i) to help limited English proficient 
                      adults and out-of-school youths achieve English 
                      proficiency; and
                          ``(ii) to provide instruction on how parents 
                      and family members can facilitate the educational 
                      achievement of their children;
                    ``(B) when feasible, uses instructional programs 
                based on models developed under the Even Start Family 
                Literacy Programs, which promote adult literacy and 
                train parents to support the educational growth of their 
                children, the Parents as Teachers Program, and the Home 
                Instruction Program for Preschool Youngsters; and
                    ``(C) gives preference to participation by parents 
                and immediate family members of children attending 
                school.
            ``(6) Immigrant children and youth.--The term `immigrant 
        children and youth' means individuals who--
                    ``(A) are aged 3 through 21;
                    ``(B) were not born in any State; and
                    ``(C) have not been attending one or more schools in 
                any one or more States for more than 3 full academic 
                years.
            ``(7) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Native village or Regional Corporation 
        or Village Corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act, that is recognized as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians.
            ``(8) Language instruction educational program.--The term 
        `language instruction educational program' means an instruction 
        course--
                    ``(A) in which a limited English proficient child is 
                placed for the purpose of developing and attaining 
                English proficiency, while meeting challenging State 
                academic content and student academic achievement 
                standards, as required by section 1111(b)(1); and
                    ``(B) that may make instructional use of both 
                English and a child's native language to enable the 
                child to develop and attain English proficiency, and may 
                include the participation of English proficient children 
                if such course is

[[Page 115 STAT. 1731]]

                designed to enable all participating children to become 
                proficient in English and a second language.
            ``(9) Native american and native american language.--The 
        terms `Native American' and `Native American language' shall 
        have the meanings given such terms in section 103 of the Native 
        American Languages Act.
            ``(10) Native hawaiian or native american pacific islander 
        native language educational organization.--The term `Native 
        Hawaiian or Native American Pacific Islander native language 
        educational organization' means a nonprofit organization with--
                    ``(A) a majority of its governing board and 
                employees consisting of fluent speakers of the 
                traditional Native American languages used in the 
                organization's educational programs; and
                    ``(B) not less than 5 years successful experience in 
                providing educational services in traditional Native 
                American languages.
            ``(11) Native language.--The term `native language', when 
        used with reference to an individual of limited English 
        proficiency, means--
                    ``(A) the language normally used by such individual; 
                or
                    ``(B) in the case of a child or youth, the language 
                normally used by the parents of the child or youth.
            ``(12) Paraprofessional.--The term `paraprofessional' means 
        an individual who is employed in a preschool, elementary school, 
        or secondary school under the supervision of a certified or 
        licensed teacher, including individuals employed in language 
        instruction educational programs, special education, and migrant 
        education.
            ``(13) Specially qualified agency.--The term `specially 
        qualified agency' means an eligible entity, as defined in 
        section 3141, in a State whose State educational agency--
                    ``(A) does not participate in a program under 
                subpart 1 of part A for a fiscal year; or
                    ``(B) submits a plan (or any amendment to a plan) 
                that the Secretary, after reasonable notice and 
                opportunity for a hearing, determines does not satisfy 
                the requirements of such subpart.
            ``(14) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.
            ``(15) Tribally sanctioned educational authority.--The term 
        `tribally sanctioned educational authority' means--
                    ``(A) any department or division of education 
                operating within the administrative structure of the 
                duly constituted governing body of an Indian tribe; and
                    ``(B) any nonprofit institution or organization that 
                is--
                          ``(i) chartered by the governing body of an 
                      Indian tribe to operate a school described in 
                      section 3112(a) or otherwise to oversee the 
                      delivery of educational services to members of the 
                      tribe; and
                          ``(ii) approved by the Secretary for the 
                      purpose of carrying out programs under subpart 1 
                      of part A for individuals served by a school 
                      described in section 3112(a).

[[Page 115 STAT. 1732]]

``SEC. 3302. <<NOTE: 20 USC 7012.>>  PARENTAL NOTIFICATION.

    ``(a) <<NOTE: Deadline.>>  In General.--Each eligible entity using 
funds provided under this title to provide a language instruction 
educational program shall, not later than 30 days after the beginning of 
the school year, inform a parent or the parents of a limited English 
proficient child identified for participation in, or participating in, 
such program of--
            ``(1) the reasons for the identification of their child as 
        limited English proficient and in need of placement in a 
        language instruction educational program;
            ``(2) the child's level of English proficiency, how such 
        level was assessed, and the status of the child's academic 
        achievement;
            ``(3) the method of instruction used in the program in which 
        their child is, or will be, participating, and the methods of 
        instruction used in other available programs, including how such 
        programs differ in content, instruction goals, and use of 
        English and a native language in instruction;
            ``(4) how the program in which their child is, or will be 
        participating will meet the educational strengths and needs of 
        the child;
            ``(5) how such program will specifically help their child 
        learn English, and meet age appropriate academic achievement 
        standards for grade promotion and graduation;
            ``(6) the specific exit requirements for such program, the 
        expected rate of transition from such program into classrooms 
        that are not tailored for limited English proficient children, 
        and the expected rate of graduation from secondary school for 
        such program if funds under this title are used for children in 
        secondary schools;
            ``(7) in the case of a child with a disability, how such 
        program meets the objectives of the individualized education 
        program of the child; and
            ``(8) information pertaining to parental rights that 
        includes written guidance--
                    ``(A) detailing--
                          ``(i) the right that parents have to have 
                      their child immediately removed from such program 
                      upon their request; and
                          ``(ii) the options that parents have to 
                      decline to enroll their child in such program or 
                      to choose another program or method of 
                      instruction, if available; and
                    ``(B) assisting parents in selecting among various 
                programs and methods of instruction, if more than one 
                program or method is offered by the eligible entity.

    ``(b) <<NOTE: Deadline.>>  Separate Notification.--In addition to 
providing the information required to be provided under subsection (a), 
each eligible entity that is using funds provided under this title to 
provide a language instruction educational program, and that has failed 
to make progress on the annual measurable achievement objectives 
described in section 3122 for any fiscal year for which part A is in 
effect, shall separately inform a parent or the parents of a child 
identified for participation in such program, or participating in such 
program, of such failure not later than 30 days after such failure 
occurs.

    ``(c) Receipt of Information.--The information required to be 
provided under subsections (a) and (b) to a parent shall be

[[Page 115 STAT. 1733]]

provided in an understandable and uniform format and, to the extent 
practicable, in a language that the parent can understand.
    ``(d) Special Rule Applicable During School Year.--For a child who 
has not been identified for participation in a language instruction 
educational program prior to the beginning of the school year, the 
eligible entity shall carry out subsections (a) through (c) with respect 
to the parents of the child within 2 weeks of the child being placed in 
such a program.
    ``(e) Parental Participation.--
            ``(1) In General.--Each eligible entity using funds provided 
        under this title to provide a language instruction educational 
        program shall implement an effective means of outreach to 
        parents of limited English proficient children to inform such 
        parents of how they can--
                    ``(A) be involved in the education of their 
                children; and
                    ``(B) be active participants in assisting their 
                children--
                          ``(i) to learn English;
                          ``(ii) to achieve at high levels in core 
                      academic subjects; and
                          ``(iii) to meet the same challenging State 
                      academic content and student academic achievement 
                      standards as all children are expected to meet.
            ``(2) Receipt of recommendations.--The outreach described in 
        paragraph (1) shall include holding, and sending notice of 
        opportunities for, regular meetings for the purpose of 
        formulating and responding to recommendations from parents 
        described in such paragraph.

    ``(f) Basis for Admission or Exclusion.--A child shall not be 
admitted to, or excluded from, any federally assisted education program 
on the basis of a surname or language-minority status.

``SEC. 3303. <<NOTE: Establishment. 20 USC 7013.>>  NATIONAL 
            CLEARINGHOUSE.

    ``The Secretary shall establish and support the operation of a 
National Clearinghouse for English Language Acquisition and Language 
Instruction Educational Programs, which shall collect, analyze, 
synthesize, and disseminate information about language instruction 
educational programs for limited English proficient children, and 
related programs. The National Clearinghouse shall--
            ``(1) be administered as an adjunct clearinghouse of the 
        Educational Resources Information Center Clearinghouses system 
        supported by the Office of Educational Research and Improvement;
            ``(2) coordinate activities with Federal data and 
        information clearinghouses and entities operating Federal 
        dissemination networks and systems;
            ``(3) develop a system for improving the operation and 
        effectiveness of federally funded language instruction 
        educational programs;
            ``(4) collect and disseminate information on--
                    ``(A) educational research and processes related to 
                the education of limited English proficient children; 
                and
                    ``(B) accountability systems that monitor the 
                academic progress of limited English proficient children 
                in language instruction educational programs, including 
                information on academic content and English proficiency 
                assessments for language instruction educational 
                programs; and

[[Page 115 STAT. 1734]]

            ``(5) <<NOTE: Publication.>>  publish, on an annual basis, a 
        list of grant recipients under this title.

``SEC. 3304. <<NOTE: 20 USC 7014.>>  REGULATIONS.

    ``In developing regulations under this title, the Secretary shall 
consult with State educational agencies and local educational agencies, 
organizations representing limited English proficient individuals, and 
organizations representing teachers and other personnel involved in the 
education of limited English proficient children.''.

                     TITLE IV--21ST CENTURY SCHOOLS

SEC. 401. 21ST CENTURY SCHOOLS.

    Title IV (20 U.S.C. 7101 et seq.) is amended to read as follows:

                    ``TITLE IV--21ST CENTURY SCHOOLS

       ``PART <<NOTE: Safe and Drug-Free Schools and Communities 
Act. Grants.>>  A--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

``SEC. 4001. <<NOTE: 20 USC 7101.>>  SHORT TITLE.

    ``This part may be cited as the `Safe and Drug-Free Schools and 
Communities Act'.

``SEC. 4002. <<NOTE: 20 USC 7102.>>  PURPOSE.

    ``The purpose of this part is to support programs that prevent 
violence in and around schools; that prevent the illegal use of alcohol, 
tobacco, and drugs; that involve parents and communities; and that are 
coordinated with related Federal, State, school, and community efforts 
and resources to foster a safe and drug-free learning environment that 
supports student academic achievement, through the provision of Federal 
assistance to--
            ``(1) States for grants to local educational agencies and 
        consortia of such agencies to establish, operate, and improve 
        local programs of school drug and violence prevention and early 
        intervention;
            ``(2) States for grants to, and contracts with, community-
        based organizations and public and private entities for programs 
        of drug and violence prevention and early intervention, 
        including community-wide drug and violence prevention planning 
        and organizing activities;
            ``(3) States for development, training, technical 
        assistance, and coordination activities; and
            ``(4) public and private entities to provide technical 
        assistance; conduct training, demonstrations, and evaluation; 
        and to provide supplementary services and community-wide drug 
        and violence prevention planning and organizing activities for 
        the prevention of drug use and violence among students and 
        youth.

``SEC. 4003. <<NOTE: 20 USC 7103.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
            ``(1) $650,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the 5 succeeding fiscal years, for 
        State grants under subpart 1; and

[[Page 115 STAT. 1735]]

            ``(2) such sums for fiscal year 2002, and for each of the 5 
        succeeding fiscal years, for national programs under subpart 2.

                        ``Subpart 1--State Grants

``SEC. 4111. <<NOTE: 20 USC 7111.>>  RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--
            ``(1) In general.--From the amount made available under 
        section 4003(1) to carry out this subpart for each fiscal year, 
        the Secretary--
                    ``(A) shall reserve 1 percent or $4,750,000 
                (whichever is greater) of such amount for grants to 
                Guam, American Samoa, the United States Virgin Islands, 
                and the Commonwealth of the Northern Mariana Islands, to 
                be allotted in accordance with the Secretary's 
                determination of their respective needs and to carry out 
                programs described in this subpart;
                    ``(B) shall reserve 1 percent or $4,750,000 
                (whichever is greater) of such amount for the Secretary 
                of the Interior to carry out programs described in this 
                subpart for Indian youth; and
                    ``(C) shall reserve 0.2 percent of such amount for 
                Native Hawaiians to be used under section 4117 to carry 
                out programs described in this subpart.
            ``(2) Other reservations.--From the amount made available 
        under section 4003(2) to carry out subpart 2 for each fiscal 
        year, the Secretary--
                    ``(A) may reserve not more than $2,000,000 for the 
                national impact evaluation required by section 4122(a);
                    ``(B) notwithstanding section 3 of the No Child Left 
                Behind Act of 2001, shall reserve an amount necessary to 
                make continuation grants to grantees under the Safe 
                Schools/Healthy Students initiative (under the same 
                terms and conditions as provided for in the grants 
                involved).

    ``(b) State Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall, for each fiscal year, allot among the States--
                    ``(A) one-half of the remainder not reserved under 
                subsection (a) according to the ratio between the 
                school-aged population of each State and the school-aged 
                population of all the States; and
                    ``(B) one-half of such remainder according to the 
                ratio between the amount each State received under 
                section 1124A for the preceding year and the sum of such 
                amounts received by all the States.
            ``(2) Minimum.--For any fiscal year, no State shall be 
        allotted under this subsection an amount that is less than the 
        greater of--
                    ``(A) one-half of 1 percent of the total amount 
                allotted to all the States under this subsection; or
                    ``(B) the amount such State received for fiscal year 
                2001 under section 4111 as such section was in effect 
                the day preceding the date of enactment of the No Child 
                Left Behind Act of 2001.
            ``(3) Reallotment.--

[[Page 115 STAT. 1736]]

                    ``(A) Reallotment for failure to apply.--If any 
                State does not apply for an allotment under this subpart 
                for a fiscal year, the Secretary shall reallot the 
                amount of the State's allotment to the remaining States 
                in accordance with this section.
                    ``(B) Reallotment of unused funds.--The Secretary 
                may reallot any amount of any allotment to a State if 
                the Secretary determines that the State will be unable 
                to use such amount within 2 years of such allotment. 
                Such reallotments shall be made on the same basis as 
                allotments are made under paragraph (1).
            ``(4) Definition.--In this section the term `State' means 
        each of the 50 States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

    ``(c) Limitation.--Amounts appropriated under section 4003(2) for a 
fiscal year may not be increased above the amounts appropriated under 
such section for the previous fiscal year unless the amounts 
appropriated under section 4003(1) for the fiscal year involved are at 
least 10 percent greater that the amounts appropriated under such 
section 4003(1) for the previous fiscal year.

``SEC. 4112. <<NOTE: 20 USC 7112.>>  RESERVATION OF STATE FUNDS FOR SAFE 
            AND DRUG-FREE SCHOOLS.

    ``(a) State Reservation for the Chief Executive Officer of a 
State.--
            ``(1) In general.--The chief executive officer of a State 
        may reserve not more than 20 percent of the total amount 
        allocated to a State under section 4111(b) for each fiscal year 
        to award competitive grants and contracts to local educational 
        agencies, community-based organizations (including community 
        anti-drug coalitions) other public entities and private 
        organizations, and consortia thereof. Such grants and contracts 
        shall be used to carry out the comprehensive State plan 
        described in section 4113(a) through programs or activities that 
        complement and support activities of local educational agencies 
        described in section 4115(b). Such officer shall award grants 
        based on--
                    ``(A) the quality of the program or activity 
                proposed; and
                    ``(B) how the program or activity meets the 
                principles of effectiveness described in section 
                4115(a).
            ``(2) Priority.--In making such grants and contracts under 
        this section, a chief executive officer shall give priority to 
        programs and activities that prevent illegal drug use and 
        violence for--
                    ``(A) children and youth who are not normally served 
                by State educational agencies or local educational 
                agencies; or
                    ``(B) populations that need special services or 
                additional resources (such as youth in juvenile 
                detention facilities, runaway or homeless children and 
                youth, pregnant and parenting teenagers, and school 
                dropouts).
            ``(3) Special consideration.--In awarding funds under 
        paragraph (1), a chief executive officer shall give special 
        consideration to grantees that pursue a comprehensive approach 
        to

[[Page 115 STAT. 1737]]

        drug and violence prevention that includes providing and 
        incorporating mental health services related to drug and 
        violence prevention in their program.
            ``(4) Peer review.--Grants or contracts awarded under this 
        section shall be subject to a peer review process.
            ``(5) Use of funds.--Grants and contracts under this section 
        shall be used to implement drug and violence prevention 
        activities, including--
                    ``(A) activities that complement and support local 
                educational agency activities under section 4115, 
                including developing and implementing activities to 
                prevent and reduce violence associated with prejudice 
                and intolerance;
                    ``(B) dissemination of information about drug and 
                violence prevention; and
                    ``(C) development and implementation of community-
                wide drug and violence prevention planning and 
                organizing.
            ``(6) Administrative costs.--The chief executive officer of 
        a State may use not more than 3 percent of the amount described 
        in paragraph (1) for the administrative costs incurred in 
        carrying out the duties of such officer under this section.

    ``(b) In State Distribution.--
            ``(1) In general.--A State educational agency shall 
        distribute not less than 93 percent of the amount made available 
        to the State under section 4111(b), less the amount reserved 
        under subsection (a) of this section, to its local educational 
        agencies.
            ``(2) State administration costs.--
                    ``(A) In general.--A State educational agency may 
                use not more than 3 percent of the amount made available 
                to the State under section 4111(b) for each fiscal year 
                less the amount reserved under subsection (a) of this 
                section, for State educational agency administrative 
                costs, including the implementation of the uniform 
                management information and reporting system as provided 
                for under subsection (c)(3).
                    ``(B) Additional amounts for the uniform management 
                information system.--In the case of fiscal year 2002, a 
                State educational agency may, in addition to amounts 
                provided for in subparagraph (A), use 1 percent of the 
                amount made available to the State educational agency 
                under section 4111(b) for each fiscal year less the 
                amount reserved under subsection (a) of this section, 
                for implementation of the uniform management information 
                and reporting system as provided for under subsection 
                (c)(3).

    ``(c) State Activities.--
            ``(1) In general.--A State educational agency may use not 
        more than 5 percent of the amount made available to the State 
        under section 4111(b) for each fiscal year less the amount 
        reserved under subsection (a) of this section, for activities 
        described in this subsection.
            ``(2) Activities.--A State educational agency shall use the 
        amounts described in paragraph (1), either directly, or through 
        grants and contracts, to plan, develop, and implement capacity 
        building, technical assistance and training, evaluation, program

[[Page 115 STAT. 1738]]

        improvement services, and coordination activities for local 
        educational agencies, community-based organizations, and other 
        public and private entities. Such uses--
                    ``(A) shall meet the principles of effectiveness 
                described in section 4115(a);
                    ``(B) shall complement and support local uses of 
                funds under section 4115(b);
                    ``(C) shall be in accordance with the purposes of 
                this part; and
                    ``(D) may include, among others activities--
                          ``(i) identification, development, evaluation, 
                      and dissemination of drug and violence prevention 
                      strategies, programs, activities, and other 
                      information;
                          ``(ii) training, technical assistance, and 
                      demonstration projects to address violence that is 
                      associated with prejudice and intolerance; and
                          ``(iii) financial assistance to enhance drug 
                      and violence prevention resources available in 
                      areas that serve large numbers of low-income 
                      children, are sparsely populated, or have other 
                      special needs.
            ``(3) Uniform management information and reporting system.--
                    ``(A) Information and statistics.--A State shall 
                establish a uniform management information and reporting 
                system.
                    ``(B) Uses of funds.--A State may use funds 
                described in subparagraphs (A) and (B) of subsection 
                (b)(2), either directly or through grants and contracts, 
                to implement the uniform management information and 
                reporting system described in subparagraph (A), for the 
                collection of information on--
                          ``(i) truancy rates;
                          ``(ii) the frequency, seriousness, and 
                      incidence of violence and drug-related offenses 
                      resulting in suspensions and expulsions in 
                      elementary schools and secondary schools in the 
                      State;
                          ``(iii) the types of curricula, programs, and 
                      services provided by the chief executive officer, 
                      the State educational agency, local educational 
                      agencies, and other recipients of funds under this 
                      subpart; and
                          ``(iv) the incidence and prevalence, age of 
                      onset, perception of health risk, and perception 
                      of social disapproval of drug use and violence by 
                      youth in schools and communities.
                    ``(C) Compilation of statistics.--In compiling the 
                statistics required for the uniform management 
                information and reporting system, the offenses described 
                in subparagraph (B)(ii) shall be defined pursuant to the 
                State's criminal code, but shall not identify victims of 
                crimes or persons accused of crimes. The collected data 
                shall include incident reports by school officials, 
                anonymous student surveys, and anonymous teacher 
                surveys.
                    ``(D) Reporting.--The information described under 
                subparagraph (B) shall be reported to the public and the 
                data referenced in clauses (i) and (ii) of such 
                subparagraph shall be reported to the State on a school-
                by-school basis.

[[Page 115 STAT. 1739]]

                    ``(E) Limitation.--Nothing in this subsection shall 
                be construed to authorize the Secretary to require 
                particular policies, procedures, or practices with 
                respect to crimes committed on school property or school 
                security.

``SEC. 4113. <<NOTE: 20 USC 7113.>>  STATE APPLICATION.

    ``(a) In General.--In order to receive an allotment under section 
4111(b) for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
            ``(1) contains a comprehensive plan for the use of funds by 
        the State educational agency and the chief executive officer of 
        the State to provide safe, orderly, and drug-free schools and 
        communities through programs and activities that complement and 
        support activities of local educational agencies under section 
        4115(b), that comply with the principles of effectiveness under 
        section 4115(a), and that otherwise are in accordance with the 
        purpose of this part;
            ``(2) describes how activities funded under this subpart 
        will foster a safe and drug-free learning environment that 
        supports academic achievement;
            ``(3) provides an assurance that the application was 
        developed in consultation and coordination with appropriate 
        State officials and others, including the chief executive 
        officer, the chief State school officer, the head of the State 
        alcohol and drug abuse agency, the heads of the State health and 
        mental health agencies, the head of the State criminal justice 
        planning agency, the head of the State child welfare agency, the 
        head of the State board of education, or their designees, and 
        representatives of parents, students, and community-based 
        organizations;
            ``(4) describes how the State educational agency will 
        coordinate such agency's activities under this subpart with the 
        chief executive officer's drug and violence prevention programs 
        under this subpart and with the prevention efforts of other 
        State agencies and other programs, as appropriate, in accordance 
        with the provisions in section 9306;
            ``(5) provides an assurance that funds reserved under 
        section 4112(a) will not duplicate the efforts of the State 
        educational agency and local educational agencies with regard to 
        the provision of school-based drug and violence prevention 
        activities and that those funds will be used to serve 
        populations not normally served by the State educational 
        agencies and local educational agencies and populations that 
        need special services, such as school dropouts, suspended and 
        expelled students, youth in detention centers, runaway or 
        homeless children and youth, and pregnant and parenting youth;
            ``(6) provides an assurance that the State will cooperate 
        with, and assist, the Secretary in conducting data collection as 
        required by section 4122;
            ``(7) provides an assurance that the local educational 
        agencies in the State will comply with the provisions of section 
        9501 pertaining to the participation of private school children 
        and teachers in the programs and activities under this subpart;
            ``(8) provides an assurance that funds under this subpart 
        will be used to increase the level of State, local, and other 
        non-Federal funds that would, in the absence of funds under

[[Page 115 STAT. 1740]]

        this subpart, be made available for programs and activities 
        authorized under this subpart, and in no case supplant such 
        State, local, and other non-Federal funds;
            ``(9) contains the results of a needs assessment conducted 
        by the State for drug and violence prevention programs, which 
        shall be based on ongoing State evaluation activities, including 
        data on--
                    ``(A) the incidence and prevalence of illegal drug 
                use and violence among youth in schools and communities, 
                including the age of onset, the perception of health 
                risks, and the perception of social disapproval among 
                such youth;
                    ``(B) the prevalence of risk factors, including high 
                or increasing rates of reported cases of child abuse or 
                domestic violence;
                    ``(C) the prevalence of protective factors, buffers, 
                or assets; and
                    ``(D) other variables in the school and community 
                identified through scientifically based research;
            ``(10) provides a statement of the State's performance 
        measures for drug and violence prevention programs and 
        activities to be funded under this subpart that will be focused 
        on student behavior and attitudes, derived from the needs 
        assessment described in paragraph (9), and be developed in 
        consultation between the State and local officials, and that 
        consist of--
                    ``(A) performance indicators for drug and violence 
                prevention programs and activities; and
                    ``(B) levels of performance for each performance 
                indicator;
            ``(11) describes the procedures the State will use for 
        assessing and publicly reporting progress toward meeting the 
        performance measures described in paragraph (10);
            ``(12) provides an assurance that the State application will 
        be available for public review after submission of the 
        application;
            ``(13) describes the special outreach activities that will 
        be carried out by the State educational agency and the chief 
        executive officer of the State to maximize the participation of 
        community-based organizations of demonstrated effectiveness that 
        provide services such as mentoring programs in low-income 
        communities;
            ``(14) describes how funds will be used by the State 
        educational agency and the chief executive officer of the State 
        to support, develop, and implement community-wide comprehensive 
        drug and violence prevention planning and organizing activities;
            ``(15) describes how input from parents will be sought 
        regarding the use of funds by the State educational agency and 
        the chief executive officer of the State;
            ``(16) describes how the State educational agency will 
        review applications from local educational agencies, including 
        how the agency will receive input from parents in such review;
            ``(17) describes how the State educational agency will 
        monitor the implementation of activities under this subpart, and 
        provide technical assistance for local educational agencies, 
        community-based organizations, other public entities, and 
        private organizations;

[[Page 115 STAT. 1741]]

            ``(18) describes how the chief executive officer of the 
        State will award funds under section 4112(a) and implement a 
        plan for monitoring the performance of, and providing technical 
        assistance to, recipients of such funds; and
            ``(19) includes any other information the Secretary may 
        require.

    ``(b) Interim Application.--
            ``(1) Authority.--Notwithstanding any other provision of 
        this section, a State may submit for fiscal year 2002 a 1-year 
        interim application and plan for the use of funds under this 
        subpart that is consistent with the requirements of this section 
        and contains such information as the Secretary may specify in 
        regulations.
            ``(2) Purpose.--The purpose of such interim application and 
        plan shall be to afford the State the opportunity to fully 
        develop and review such State's application and comprehensive 
        plan otherwise required by this section.
            ``(3) Exception.--A State may not receive a grant under this 
        subpart for a fiscal year after fiscal year 2002 unless the 
        Secretary has approved such State's application and 
        comprehensive plan as described in subsection (a).

    ``(c) Approval Process.--
            ``(1) Deemed approval.--An application submitted by a State 
        pursuant to this section shall undergo peer review by the 
        Secretary and shall be deemed to be approved by the Secretary 
        unless the Secretary makes a written determination, prior to the 
        expiration of the 120-day period beginning on the date on which 
        the Secretary received the application, that the application is 
        not in compliance with this subpart.
            ``(2) Disapproval.--The Secretary shall not finally 
        disapprove the application, except after giving the State 
        educational agency and the chief executive officer of the State 
        notice and an opportunity for a hearing.
            ``(3) Notification.--If the Secretary finds that the 
        application is not in compliance, in whole or in part, with this 
        subpart, the Secretary shall--
                    ``(A) give the State educational agency and the 
                chief executive officer of the State notice and an 
                opportunity for a hearing; and
                    ``(B) notify the State educational agency and the 
                chief executive officer of the State of the finding of 
                noncompliance, and in such notification, shall--
                          ``(i) cite the specific provisions in the 
                      application that are not in compliance; and
                          ``(ii) request additional information, only as 
                      to the noncompliant provisions, needed to make the 
                      application compliant.
            ``(4) Response.--If the State educational agency and the 
        chief executive officer of the State respond to the Secretary's 
        notification described in paragraph (3)(B) during the 45-day 
        period beginning on the date on which the agency received the 
        notification, and resubmit the application with the requested 
        information described in paragraph (3)(B)(ii), the Secretary 
        shall approve or disapprove such application prior to the later 
        of--
                    ``(A) the expiration of the 45-day period beginning 
                on the date on which the application is resubmitted; or

[[Page 115 STAT. 1742]]

                    ``(B) the expiration of the 120-day period described 
                in paragraph (1).
            ``(5) Failure to respond.--If the State educational agency 
        and the chief executive officer of the State do not respond to 
        the Secretary's notification described in paragraph (3)(B) 
        during the 45-day period beginning on the date on which the 
        agency received the notification, such application shall be 
        deemed to be disapproved.

``SEC. 4114. <<NOTE: 20 USC 7114.>>  LOCAL EDUCATIONAL AGENCY PROGRAM.

    ``(a) In General.--
            ``(1) Funds to local educational agencies.--A State shall 
        provide the amount made available to the State under this 
        subpart, less the amounts reserved under section 4112 to local 
        educational agencies for drug and violence prevention and 
        education programs and activities as follows:
                    ``(A) 60 percent of such amount based on the 
                relative amount such agencies received under part A of 
                title I for the preceding fiscal year.
                    ``(B) 40 percent of such amount based on the 
                relative enrollments in public and private nonprofit 
                elementary schools and secondary schools within the 
                boundaries of such agencies.
            ``(2) Administrative costs.--Of the amount received under 
        paragraph (1), a local educational agency may use not more than 
        2 percent for the administrative costs of carrying out its 
        responsibilities under this subpart.
            ``(3) Return of funds to state; reallocation.--
                    ``(A) Return.--Except as provided in subparagraph 
                (B), upon the expiration of the 1-year period beginning 
                on the date on which a local educational agency receives 
                its allocation under this subpart--
                          ``(i) such agency shall return to the State 
                      educational agency any funds from such allocation 
                      that remain unobligated; and
                          ``(ii) the State educational agency shall 
                      reallocate any such amount to local educational 
                      agencies that have submitted plans for using such 
                      amount for programs or activities on a timely 
                      basis.
                    ``(B) Carryover.--In any fiscal year, a local 
                educational agency, may retain for obligation in the 
                succeeding fiscal year--
                          ``(i) an amount equal to not more than 25 
                      percent of the allocation it received under this 
                      subpart for such fiscal year; or
                          ``(ii) upon a demonstration of good cause by 
                      such agency and approval by the State educational 
                      agency, an amount that exceeds 25 percent of such 
                      allocation.
                    ``(C) Reallocation.--If a local educational agency 
                chooses not to apply to receive the amount allocated to 
                such agency under this subsection, or if such agency's 
                application under subsection (d) is disapproved by the 
                State educational agency, the State educational agency 
                shall reallocate such amount to one or more of its other 
                local educational agencies.

    ``(b) Eligibility.--To be eligible to receive a subgrant under this 
subpart, a local educational agency desiring a subgrant shall

[[Page 115 STAT. 1743]]

submit an application to the State educational agency in accordance with 
subsection (d). Such an application shall be amended, as necessary, to 
reflect changesin the activities and programs of the local educational 
agency.
    ``(c) Development.--
            ``(1) Consultation.--
                    ``(A) In general.--A local educational agency shall 
                develop its application through timely and meaningful 
                consultation with State and local government 
                representatives, representatives of schools to be served 
                (including private schools), teachers and other staff, 
                parents, students, community-based organizations, and 
                others with relevant and demonstrated expertise in drug 
                and violence prevention activities (such as medical, 
                mental health, and law enforcement professionals).
                    ``(B) Continued consultation.--On an ongoing basis, 
                the local educational agency shall consult with such 
                representatives and organizations in order to seek 
                advice regarding how best to coordinate such agency's 
                activities under this subpart with other related 
                strategies, programs, and activities being conducted in 
                the community.
            ``(2) Design and development.--To ensure timely and 
        meaningful consultation under paragraph (1), a local educational 
        agency at the initial stages of design and development of a 
        program or activity shall consult, in accordance with this 
        subsection, with appropriate entities and persons on issues 
        regarding the design and development of the program or activity, 
        including efforts to meet the principles of effectiveness 
        described in section 4115(a).

    ``(d) Contents of Applications.--An application submitted by a local 
educational agency under this section shall contain--
            ``(1) an assurance that the activities or programs to be 
        funded comply with the principles of effectiveness described in 
        section 4115(a) and foster a safe and drug-free learning 
        environment that supports academic achievement;
            ``(2) a detailed explanation of the local educational 
        agency's comprehensive plan for drug and violence prevention, 
        including a description of--
                    ``(A) how the plan will be coordinated with programs 
                under this Act, and other Federal, State, and local 
                programs for drug and violence prevention, in accordance 
                with section 9306;
                    ``(B) the local educational agency's performance 
                measures for drug and violence prevention programs and 
                activities, that shall consist of--
                          ``(i) performance indicators for drug and 
                      violence prevention programs and activities; 
                      including--
                                    ``(I) specific reductions in the 
                                prevalence of identified risk factors; 
                                and
                                    ``(II) specific increases in the 
                                prevalence of protective factors, 
                                buffers, or assets if any have been 
                                identified; and
                          ``(ii) levels of performance for each 
                      performance indicator;
                    ``(C) how such agency will assess and publicly 
                report progress toward attaining its performance 
                measures;

[[Page 115 STAT. 1744]]

                    ``(D) the drug and violence prevention activity or 
                program to be funded, including how the activity or 
                program will meet the principles of effectiveness 
                described in section 4115(a), and the means of 
                evaluating such activity or program; and
                    ``(E) how the services will be targeted to schools 
                and students with the greatest need;
            ``(3) a description for how the results of the evaluations 
        of the effectiveness of the program will be used to refine, 
        improve, and strengthen the program;
            ``(4) an assurance that funds under this subpart will be 
        used to increase the level of State, local, and other non-
        Federal funds that would, in the absence of funds under this 
        subpart, be made available for programs and activities 
        authorized under this subpart, and in no case supplant such 
        State, local, and other non-Federal funds;
            ``(5) a description of the mechanisms used to provide 
        effective notice to the community of an intention to submit an 
        application under this subpart;
            ``(6) an assurance that drug and violence prevention 
        programs supported under this subpart convey a clear and 
        consistent message that acts of violence and the illegal use of 
        drugs are wrong and harmful;
            ``(7) an assurance that the applicant has, or the schools to 
        be served have, a plan for keeping schools safe and drug-free 
        that includes--
                    ``(A) appropriate and effective school discipline 
                policies that prohibit disorderly conduct, the illegal 
                possession of weapons, and the illegal use, possession, 
                distribution, and sale of tobacco, alcohol, and other 
                drugs by students;
                    ``(B) security procedures at school and while 
                students are on the way to and from school;
                    ``(C) prevention activities that are designed to 
                create and maintain safe, disciplined, and drug-free 
                environments;
                    ``(D) a crisis management plan for responding to 
                violent or traumatic incidents on school grounds; and
                    ``(E) a code of conduct policy for all students that 
                clearly states the responsibilities of students, 
                teachers, and administrators in maintaining a classroom 
                environment that--
                          ``(i) allows a teacher to communicate 
                      effectively with all students in the class;
                          ``(ii) allows all students in the class to 
                      learn;
                          ``(iii) has consequences that are fair, and 
                      developmentally appropriate;
                          ``(iv) considers the student and the 
                      circumstances of the situation; and
                          ``(v) is enforced accordingly;
            ``(8) an assurance that the application and any waiver 
        request under section 4115(a)(3) will be available for public 
        review after submission of the application; and
            ``(9) such other assurances, goals, and objectives 
        identified through scientifically based research that the State 
        may reasonably require in accordance with the purpose of this 
        part.

    ``(e) Review of Application.--
            ``(1) In general.--In reviewing local applications under 
        this section, a State educational agency shall use a peer review

[[Page 115 STAT. 1745]]

        process or other methods of assuring the quality of such 
        applications.
            ``(2) Considerations.--In determining whether to approve the 
        application of a local educational agency under this section, a 
        State educational agency shall consider the quality of 
        application and the extent to which the application meets the 
        principles of effectiveness described in section 4115(a).

    ``(f) Approval Process.--
            ``(1) Deemed approval.--An application submitted by a local 
        educational agency pursuant to this section shall be deemed to 
        be approved by the State educational agency unless the State 
        educational agency makes a written determination, prior to the 
        expiration of the 120-day period beginning on the date on which 
        the State educational agency received the application, that the 
        application is not in compliance with this subpart.
            ``(2) Disapproval.--The State educational agency shall not 
        finally disapprove the application, except after giving the 
        local educational agency notice and opportunity for a hearing.
            ``(3) Notification.--If the State educational agency finds 
        that the application is not in compliance, in whole or in part, 
        with this subpart, the State educational agency shall--
                    ``(A) give the local educational agency notice and 
                an opportunity for a hearing; and
                    ``(B) notify the local educational agency of the 
                finding of noncompliance, and in such notification, 
                shall--
                          ``(i) cite the specific provisions in the 
                      application that are not in compliance; and
                          ``(ii) request additional information, only as 
                      to the noncompliant provisions, needed to make the 
                      application compliant.
            ``(4) Response.--If the local educational agency responds to 
        the State educational agency's notification described in 
        paragraph (3)(B) during the 45-day period beginning on the date 
        on which the agency received the notification, and resubmits the 
        application with the requested information described in 
        paragraph (3)(B)(ii), the State educational agency shall approve 
        or disapprove such application prior to the later of--
                    ``(A) the expiration of the 45-day period beginning 
                on the date on which the application is resubmitted; or
                    ``(B) the expiration of the 120-day period described 
                in paragraph (1).
            ``(5) Failure to respond.--If the local educational agency 
        does not respond to the State educational agency's notification 
        described in paragraph (3)(B) during the 45-day period beginning 
        on the date on which the agency received the notification, such 
        application shall be deemed to be disapproved.

``SEC. 4115. <<NOTE: 20 USC 7115.>>  AUTHORIZED ACTIVITIES.

    ``(a) Principles of Effectiveness.--
            ``(1) In general.--For a program or activity developed 
        pursuant to this subpart to meet the principles of 
        effectiveness, such program or activity shall--
                    ``(A) be based on an assessment of objective data 
                regarding the incidence of violence and illegal drug use 
                in the elementary schools and secondary schools and 
                communities to be served, including an objective 
                analysis

[[Page 115 STAT. 1746]]

                of the current conditions and consequences regarding 
                violence and illegal drug use, including delinquency and 
                serious discipline problems, among students who attend 
                such schools (including private school students who 
                participate in the drug and violence prevention program) 
                that is based on ongoing local assessment or evaluation 
                activities;
                    ``(B) be based on an established set of performance 
                measures aimed at ensuring that the elementary schools 
                and secondary schools and communities to be served by 
                the program have a safe, orderly, and drug-free learning 
                environment;
                    ``(C) be based on scientifically based research that 
                provides evidence that the program to be used will 
                reduce violence and illegal drug use;
                    ``(D) be based on an analysis of the data reasonably 
                available at the time, of the prevalence of risk 
                factors, including high or increasing rates of reported 
                cases of child abuse and domestic violence; protective 
                factors, buffers, assets; or other variables in schools 
                and communities in the State identified through 
                scientifically based research; and
                    ``(E) include meaningful and ongoing consultation 
                with and input from parents in the development of the 
                application and administration of the program or 
                activity.
            ``(2) Periodic evaluation.--
                    ``(A) Requirement.--The program or activity shall 
                undergo a periodic evaluation to assess its progress 
                toward reducing violence and illegal drug use in schools 
                to be served based on performance measures described in 
                section 4114(d)(2)(B).
                    ``(B) <<NOTE: Public information.>>  Use of 
                results.--The results shall be used to refine, improve, 
                and strengthen the program, and to refine the 
                performance measures, and shall also be made available 
                to the public upon request, with public notice of such 
                availability provided.
            ``(3) Waiver.--A local educational agency may apply to the 
        State for a waiver of the requirement of subsection (a)(1)(C) to 
        allow innovative activities or programs that demonstrate 
        substantial likelihood of success.

    ``(b) Local Educational Agency Activities.--
            ``(1) Program requirements.--A local educational agency 
        shall use funds made available under section 4114 to develop, 
        implement, and evaluate comprehensive programs and activities, 
        which are coordinated with other school and community-based 
        services and programs, that shall--
                    ``(A) foster a safe and drug-free learning 
                environment that supports academic achievement;
                    ``(B) be consistent with the principles of 
                effectiveness described in subsection (a)(1);
                    ``(C) be designed to--
                          ``(i) prevent or reduce violence; the use, 
                      possession and distribution of illegal drugs; and 
                      delinquency; and
                          ``(ii) create a well disciplined environment 
                      conducive to learning, which includes consultation 
                      between teachers, principals, and other school 
                      personnel to identify early warning signs of drug 
                      use and violence and

[[Page 115 STAT. 1747]]

                      to provide behavioral interventions as part of 
                      classroom management efforts; and
                    ``(D) include activities to--
                          ``(i) promote the involvement of parents in 
                      the activity or program;
                          ``(ii) promote coordination with community 
                      groups and coalitions, and government agencies; 
                      and
                          ``(iii) distribute information about the local 
                      educational agency's needs, goals, and programs 
                      under this subpart.
            ``(2) Authorized activities.--Each local educational agency, 
        or consortium of such agencies, that receives a subgrant under 
        this subpart may use such funds to carry out activities that 
        comply with the principles of effectiveness described in 
        subsection (a), such as the following:
                    ``(A) Age appropriate and developmentally based 
                activities that--
                          ``(i) address the consequences of violence and 
                      the illegal use of drugs, as appropriate;
                          ``(ii) promote a sense of individual 
                      responsibility;
                          ``(iii) teach students that most people do not 
                      illegally use drugs;
                          ``(iv) teach students to recognize social and 
                      peer pressure to use drugs illegally and the 
                      skills for resisting illegal drug use;
                          ``(v) teach students about the dangers of 
                      emerging drugs;
                          ``(vi) engage students in the learning 
                      process; and
                          ``(vii) incorporate activities in secondary 
                      schools that reinforce prevention activities 
                      implemented in elementary schools.
                    ``(B) Activities that involve families, community 
                sectors (which may include appropriately trained 
                seniors), and a variety of drug and violence prevention 
                providers in setting clear expectations against violence 
                and illegal use of drugs and appropriate consequences 
                for violence and illegal use of drugs.
                    ``(C) Dissemination of drug and violence prevention 
                information to schools and the community.
                    ``(D) Professional development and training for, and 
                involvement of, school personnel, pupil services 
                personnel, parents, and interested community members in 
                prevention, education, early identification and 
                intervention, mentoring, or rehabilitation referral, as 
                related to drug and violence prevention.
                    ``(E) Drug and violence prevention activities that 
                may include the following:
                          ``(i) Community-wide planning and organizing 
                      activities to reduce violence and illegal drug 
                      use, which may include gang activity prevention.
                          ``(ii) Acquiring and installing metal 
                      detectors, electronic locks, surveillance cameras, 
                      or other related equipment and technologies.
                          ``(iii) Reporting criminal offenses committed 
                      on school property.
                          ``(iv) Developing and implementing 
                      comprehensive school security plans or obtaining 
                      technical assistance

[[Page 115 STAT. 1748]]

                      concerning such plans, which may include obtaining 
                      a security assessment or assistance from the 
                      School Security and Technology Resource Center at 
                      the Sandia National Laboratory located in 
                      Albuquerque, New Mexico.
                          ``(v) Supporting safe zones of passage 
                      activities that ensure that students travel safely 
                      to and from school, which may include bicycle and 
                      pedestrian safety programs.
                          ``(vi) The hiring and mandatory training, 
                      based on scientific research, of school security 
                      personnel (including school resource officers) who 
                      interact with students in support of youth drug 
                      and violence prevention activities under this part 
                      that are implemented in the school.
                          ``(vii) Expanded and improved school-based 
                      mental health services related to illegal drug use 
                      and violence, including early identification of 
                      violence and illegal drug use, assessment, and 
                      direct or group counseling services provided to 
                      students, parents, families, and school personnel 
                      by qualified school-based mental health service 
                      providers.
                          ``(viii) Conflict resolution programs, 
                      including peer mediation programs that educate and 
                      train peer mediators and a designated faculty 
                      supervisor, and youth anti-crime and anti-drug 
                      councils and activities.
                          ``(ix) Alternative education programs or 
                      services for violent or drug abusing students that 
                      reduce the need for suspension or expulsion or 
                      that serve students who have been suspended or 
                      expelled from the regular educational settings, 
                      including programs or services to assist students 
                      to make continued progress toward meeting the 
                      State academic achievement standards and to 
                      reenter the regular education setting.
                          ``(x) Counseling, mentoring, referral 
                      services, and other student assistance practices 
                      and programs, including assistance provided by 
                      qualified school-based mental health services 
                      providers and the training of teachers by school-
                      based mental health services providers in 
                      appropriate identification and intervention 
                      techniques for students at risk of violent 
                      behavior and illegal use of drugs.
                          ``(xi) Programs that encourage students to 
                      seek advice from, and to confide in, a trusted 
                      adult regarding concerns about violence and 
                      illegal drug use.
                          ``(xii) Drug and violence prevention 
                      activities designed to reduce truancy.
                          ``(xiii) Age-appropriate, developmentally-
                      based violence prevention and education programs 
                      that address victimization associated with 
                      prejudice and intolerance, and that include 
                      activities designed to help students develop a 
                      sense of individual responsibility and respect for 
                      the rights of others, and to resolve conflicts 
                      without violence.
                          ``(xiv) Consistent with the fourth amendment 
                      to the Constitution of the United States, the 
                      testing of a student for illegal drug use or the 
                      inspecting of

[[Page 115 STAT. 1749]]

                      a student's locker for weapons or illegal drugs or 
                      drug paraphernalia, including at the request of or 
                      with the consent of a parent or legal guardian of 
                      the student, if the local educational agency 
                      elects to so test or inspect.
                          ``(xv) Emergency intervention services 
                      following traumatic crisis events, such as a 
                      shooting, major accident, or a drug-related 
                      incident that have disrupted the learning 
                      environment.
                          ``(xvi) Establishing or implementing a system 
                      for transferring suspension and expulsion records, 
                      consistent with section 444 of the General 
                      Education Provisions Act (20 U.S.C. 1232g), by a 
                      local educational agency to any public or private 
                      elementary school or secondary school.
                          ``(xvii) Developing and implementing character 
                      education programs, as a component of drug and 
                      violence prevention programs, that take into 
                      account the views of parents of the students for 
                      whom the program is intended and such students, 
                      such as a program described in subpart 3 of part D 
                      of title V.
                          ``(xviii) Establishing and maintaining a 
                      school safety hotline.
                          ``(xix) Community service, including community 
                      service performed by expelled students, and 
                      service-learning projects.
                          ``(xx) Conducting a nationwide background 
                      check of each local educational agency employee, 
                      regardless of when hired, and prospective 
                      employees for the purpose of determining whether 
                      the employee or prospective employee has been 
                      convicted of a crime that bears upon the 
                      employee's fitness--
                                    ``(I) to be responsible for the 
                                safety or well-being of children;
                                    ``(II) to serve in the particular 
                                capacity in which the employee or 
                                prospective employee is or will be 
                                employed; or
                                    ``(III) to otherwise be employed by 
                                the local educational agency.
                          ``(xxi) Programs to train school personnel to 
                      identify warning signs of youth suicide and to 
                      create an action plan to help youth at risk of 
                      suicide.
                          ``(xxii) Programs that respond to the needs of 
                      students who are faced with domestic violence or 
                      child abuse.
                    ``(F) The evaluation of any of the activities 
                authorized under this subsection and the collection of 
                objective data used to assess program needs, program 
                implementation, or program success in achieving program 
                goals and objectives.

    ``(c) Limitation.--
            ``(1) In general.--Except as provided in paragraph (2), not 
        more than 40 percent of the funds available to a local 
        educational agency under this subpart may be used to carry out 
        the activities described in clauses (ii) through (vi) of 
        subsection (b)(2)(E), of which not more than 50 percent of such

[[Page 115 STAT. 1750]]

        amount may be used to carry out the activities described in 
        clauses (ii) through (v) of such subsection.
            ``(2) Exception.--A local educational agency may use funds 
        under this subpart for activities described in clauses (ii) 
        through (v) of subsection (b)(2)(E) only if funding for these 
        activities is not received from other Federal agencies.

    ``(d) Rule of Construction.--Nothing in this section shall be 
construed to prohibit the use of funds under this subpart by any local 
educational agency or school for the establishment or implementation of 
a school uniform policy if such policy is part of the overall 
comprehensive drug and violence prevention plan of the State involved 
and is supported by the State's needs assessment and other 
scientifically based research information.

``SEC. 4116. <<NOTE: 20 USC 7116.>>  REPORTING.

    ``(a) State Report.--
            ``(1) In <<NOTE: Deadline.>>  general.--By December 1, 2003, 
        and every 2 years thereafter, the chief executive officer of the 
        State, in cooperation with the State educational agency, shall 
        submit to the Secretary a report--
                    ``(A) on the implementation and outcomes of State 
                programs under section 4112(a)(1) and section 4112(c) 
                and local educational agency programs under section 
                4115(b), as well as an assessment of their 
                effectiveness;
                    ``(B) on the State's progress toward attaining its 
                performance measures for drug and violence prevention 
                under section 4113(a)(10); and
                    ``(C) on the State's efforts to inform parents of, 
                and include parents in, violence and drug prevention 
                efforts.
            ``(2) Special rule.--The report required by this subsection 
        shall be--
                    ``(A) in the form specified by the Secretary;
                    ``(B) based on the State's ongoing evaluation 
                activities, and shall include data on the incidence and 
                prevalence, age of onset, perception of health risk, and 
                perception of social disapproval of drug use and 
                violence by youth in schools and communities; and
                    ``(C) made readily available to the public.

    ``(b) Local Educational Agency Report.--
            ``(1) In general.--Each local educational agency receiving 
        funds under this subpart shall submit to the State educational 
        agency such information that the State requires to complete the 
        State report required by subsection (a), including a description 
        of how parents were informed of, and participated in, violence 
        and drug prevention efforts.
            ``(2) Availability.--Information under paragraph (1) shall 
        be made readily available to the public.
            ``(3) <<NOTE: Deadline.>>  Provision of documentation.--Not 
        later than January 1 of each year that a State is required to 
        report under subsection (a), the Secretary shall provide to the 
        State educational agency all of the necessary documentation 
        required for compliance with this section.

``SEC. 4117. <<NOTE: 20 USC 7117.>>  PROGRAMS FOR NATIVE HAWAIIANS.

    ``(a) <<NOTE: Contracts.>>  General Authority.--From the funds made 
available pursuant to section 4111(a)(1)(C) to carry out this section, 
the Secretary shall make grants to or enter into cooperative agreements 
or contracts with organizations primarily serving and representing

[[Page 115 STAT. 1751]]

Native Hawaiians for the benefit of Native Hawaiians to plan, conduct, 
and administer programs, or portions thereof, that are authorized by and 
consistent with the provisions of this subpart.

    ``(b) Definition of Native Hawaiian.--For the purposes of this 
section, the term `Native Hawaiian' means any individual any of whose 
ancestors were natives, prior to 1778, of the area which now comprises 
the State of Hawaii.

                     ``Subpart 2--National Programs

``SEC. 4121. <<NOTE: 20 USC 7131.>>  FEDERAL ACTIVITIES.

    ``(a) Program Authorized.--From funds made available to carry out 
this subpart under section 4003(2), the Secretary, in consultation with 
the Secretary of Health and Human Services, the Director of the Office 
of National Drug Control Policy, and the Attorney General, shall carry 
out programs to prevent the illegal use of drugs and violence among, and 
promote safety and discipline for, students. The Secretary shall carry 
out such programs directly, or through grants, contracts, or cooperative 
agreements with public and private entities and individuals, or through 
agreements with other Federal agencies, and shall coordinate such 
programs with other appropriate Federal activities. Such programs may 
include--
            ``(1) the development and demonstration of innovative 
        strategies for the training of school personnel, parents, and 
        members of the community for drug and violence prevention 
        activities based on State and local needs;
            ``(2) the development, demonstration, scientifically based 
        evaluation, and dissemination of innovative and high quality 
        drug and violence prevention programs and activities, based on 
        State and local needs, which may include--
                    ``(A) alternative education models, either 
                established within a school or separate and apart from 
                an existing school, that are designed to promote drug 
                and violence prevention, reduce disruptive behavior, 
                reduce the need for repeat suspensions and expulsions, 
                enable students to meet challenging State academic 
                standards, and enable students to return to the regular 
                classroom as soon as possible;
                    ``(B) community service and service-learning 
                projects, designed to rebuild safe and healthy 
                neighborhoods and increase students' sense of individual 
                responsibility;
                    ``(C) video-based projects developed by 
                noncommercial telecommunications entities that provide 
                young people with models for conflict resolution and 
                responsible decisionmaking; and
                    ``(D) child abuse education and prevention programs 
                for elementary and secondary students;
            ``(3) the provision of information on drug abuse education 
        and prevention to the Secretary of Health and Human Services for 
        dissemination;
            ``(4) the provision of information on violence prevention 
        and education and school safety to the Department of Justice for 
        dissemination;
            ``(5) technical assistance to chief executive officers, 
        State agencies, local educational agencies, and other recipients 
        of

[[Page 115 STAT. 1752]]

        funding under this part to build capacity to develop and 
        implement high-quality, effective drug and violence prevention 
        programs consistent with the principles of effectiveness in 
        section 4115(a);
            ``(6) assistance to school systems that have particularly 
        severe drug and violence problems, including hiring drug 
        prevention and school safety coordinators, or assistance to 
        support appropriate response efforts to crisis situations;
            ``(7) the development of education and training programs, 
        curricula, instructional materials, and professional training 
        and development for preventing and reducing the incidence of 
        crimes and conflicts motivated by hate in localities most 
        directly affected by hate crimes;
            ``(8) activities in communities designated as empowerment 
        zones or enterprise communities that will connect schools to 
        community-wide efforts to reduce drug and violence problems; and
            ``(9) other activities in accordance with the purpose of 
        this part, based on State and local needs.

    ``(b) Peer Review.--The Secretary shall use a peer review process in 
reviewing applications for funds under this section.

``SEC. 4122. <<NOTE: 20 USC 7132.>>  IMPACT EVALUATION.

    ``(a) Biennial Evaluation.--The Secretary, in consultation with the 
Safe and Drug-Free Schools and Communities Advisory Committee described 
in section 4124, shall conduct an independent biennial evaluation of the 
impact of programs assisted under this subpart and of other recent and 
new initiatives to combat violence and illegal drug use in schools. The 
evaluation shall report on whether community and local educational 
agency programs funded under this subpart--
            ``(1) comply with the principles of effectiveness described 
        in section 4115(a);
            ``(2) have appreciably reduced the level of illegal drug, 
        alcohol, and tobacco use, and school violence and the illegal 
        presence of weapons at schools; and
            ``(3) have conducted effective parent involvement and 
        training programs.

    ``(b) Data Collection.--The National Center for Education Statistics 
shall collect data, that is subject to independent review, to determine 
the incidence and prevalence of illegal drug use and violence in 
elementary schools and secondary schools in the States. The collected 
data shall include incident reports by schools officials, anonymous 
student surveys, and anonymous teacher surveys.
    ``(c) <<NOTE: Deadline.>>  Biennial Report.--Not later than January 
1, 2003, and every 2 years thereafter, the Secretary shall submit to the 
President and Congress a report on the findings of the evaluation 
conducted under subsection (a) together with the data collected under 
subsection (b) and data available from other sources on the incidence 
and prevalence, age of onset, perception of health risk, and perception 
of social disapproval of drug use and violence in elementary schools and 
secondary schools in the States. The Secretary shall include data 
submitted by the States pursuant to subsection 4116(a).

``SEC. 4123. <<NOTE: 20 USC 7133.>>  HATE CRIME PREVENTION.

    ``(a) Grant Authorization.--From funds made available to carry out 
this subpart under section 4003(2) the Secretary may

[[Page 115 STAT. 1753]]

make grants to local educational agencies and community-based 
organizations for the purpose of providing assistance to localities most 
directly affected by hate crimes.
    ``(b) Use of Funds.--
            ``(1) Program development.--Grants under this section may be 
        used to improve elementary and secondary educational efforts, 
        including--
                    ``(A) development of education and training programs 
                designed to prevent and to reduce the incidence of 
                crimes and conflicts motivated by hate;
                    ``(B) development of curricula for the purpose of 
                improving conflict or dispute resolution skills of 
                students, teachers, and administrators;
                    ``(C) development and acquisition of equipment and 
                instructional materials to meet the needs of, or 
                otherwise be part of, hate crime or conflict programs; 
                and
                    ``(D) professional training and development for 
                teachers and administrators on the causes, effects, and 
                resolutions of hate crimes or hate-based conflicts.
            ``(2) Application.--In order to be eligible to receive a 
        grant under this section for any fiscal year, a local 
        educational agency, or a local educational agency in conjunction 
        with a community-based organization, shall submit an application 
        to the Secretary in such form and containing such information as 
        the Secretary may reasonably require.
            ``(3) Requirements.--Each application under paragraph (2) 
        shall include--
                    ``(A) a request for funds for the purpose described 
                in this section;
                    ``(B) a description of the schools and communities 
                to be served by the grants; and
                    ``(C) assurances that Federal funds received under 
                this section shall be used to supplement, and not 
                supplant, non-Federal funds.
            ``(4) Comprehensive plan.--Each application shall include a 
        comprehensive plan that contains--
                    ``(A) a description of the hate crime or conflict 
                problems within the schools or the community targeted 
                for assistance;
                    ``(B) a description of the program to be developed 
                or augmented by such Federal and matching funds;
                    ``(C) assurances that such program or activity shall 
                be administered by or under the supervision of the 
                applicant;
                    ``(D) procedures for the proper and efficient 
                administration of such program; and
                    ``(E) fiscal control and fund accounting procedures 
                as may be necessary to ensure prudent use, proper 
                disbursement, and accurate accounting of funds received 
                under this section.

    ``(c) Award of Grants.--
            ``(1) Selection of recipients.--The Secretary shall consider 
        the incidence of crimes and conflicts motivated by bias in the 
        targeted schools and communities in awarding grants under this 
        section.

[[Page 115 STAT. 1754]]

            ``(2) Geographic distribution.--The Secretary shall attempt, 
        to the extent practicable, to achieve an equitable geographic 
        distribution of grant awards.
            ``(3) Dissemination of information.--The Secretary shall 
        attempt, to the extent practicable, to make available 
        information regarding successful hate crime prevention programs, 
        including programs established or expanded with grants under 
        this section.

    ``(d) Reports.--The Secretary shall submit to Congress a report 
every 2 years that shall contain a detailed statement regarding grants 
and awards, activities of grant recipients, and an evaluation of 
programs established under this section.

``SEC. 4124. <<NOTE: 20 USC 7134.>>  SAFE AND DRUG-FREE SCHOOLS AND 
            COMMUNITIES ADVISORY COMMITTEE.

    ``(a) Establishment.--
            ``(1) In general.--There is hereby established an advisory 
        committee to be known as the `Safe and Drug Free Schools and 
        Communities Advisory Committee' (referred to in this section as 
        the `Advisory Committee') to--
                    ``(A) consult with the Secretary under subsection 
                (b);
                    ``(B) coordinate Federal school- and community-based 
                substance abuse and violence prevention programs and 
                reduce duplicative research or services;
                    ``(C) develop core data sets and evaluation 
                protocols for safe and drug-free school- and community-
                based programs;
                    ``(D) provide technical assistance and training for 
                safe and drug-free school- and community-based programs;
                    ``(E) provide for the diffusion of scientifically 
                based research to safe and drug-free school- and 
                community-based programs; and
                    ``(F) review other regulations and standards 
                developed under this title.
            ``(2) Composition.--The Advisory Committee shall be composed 
        of representatives from--
                    ``(A) the Department of Education;
                    ``(B) the Centers for Disease Control and 
                Prevention;
                    ``(C) the National Institute on Drug Abuse;
                    ``(D) the National Institute on Alcoholism and 
                Alcohol Abuse;
                    ``(E) the Center for Substance Abuse Prevention;
                    ``(F) the Center for Mental Health Services;
                    ``(G) the Office of Juvenile Justice and Delinquency 
                Prevention;
                    ``(H) the Office of National Drug Control Policy;
                    ``(I) State and local governments, including 
                education agencies; and
                    ``(J) researchers and expert practitioners.
            ``(3) Consultation.--In carrying out its duties under this 
        section, the Advisory Committee shall annually consult with 
        interested State and local coordinators of school- and 
        community-based substance abuse and violence prevention programs 
        and other interested groups.

    ``(b) Programs.--
            ``(1) In general.--From amounts made available under section 
        4003(2) to carry out this subpart, the Secretary, in

[[Page 115 STAT. 1755]]

        consultation with the Advisory Committee, shall carry out 
        scientifically based research programs to strengthen the 
        accountability and effectiveness of the State, chief executive 
        officer's, and national programs under this part.
            ``(2) Grants, contracts or cooperative agreements.--The 
        Secretary shall carry out paragraph (1) directly or through 
        grants, contracts, or cooperative agreements with public and 
        private entities and individuals or through agreements with 
        other Federal agencies.
            ``(3) Coordination.--The Secretary shall coordinate programs 
        under this section with other appropriate Federal activities.
            ``(4) Activities.--Activities that may be carried out under 
        programs funded under this section may include--
                    ``(A) the provision of technical assistance and 
                training, in collaboration with other Federal agencies 
                utilizing their expertise and national and regional 
                training systems, for Governors, State educational 
                agencies and local educational agencies to support high 
                quality, effective programs that--
                          ``(i) provide a thorough assessment of the 
                      substance abuse and violence problem;
                          ``(ii) utilize objective data and the 
                      knowledge of a wide range of community members;
                          ``(iii) develop measurable goals and 
                      objectives; and
                          ``(iv) implement scientifically based research 
                      activities that have been shown to be effective 
                      and that meet identified needs;
                    ``(B) the provision of technical assistance and 
                training to foster program accountability;
                    ``(C) the diffusion and dissemination of best 
                practices and programs;
                    ``(D) the development of core data sets and 
                evaluation tools;
                    ``(E) program evaluations;
                    ``(F) the provision of information on drug abuse 
                education and prevention to the Secretary of Health and 
                Human Services for dissemination by the clearinghouse 
                for alcohol and drug abuse information established under 
                section 501(d)(16) of the Public Health Service Act; and
                    ``(G) other activities that meet unmet needs related 
                to the purpose of this part and that are undertaken in 
                consultation with the Advisory Committee.

``SEC. 4125. <<NOTE: 20 USC 7135.>>  NATIONAL COORDINATOR PROGRAM.

    ``(a) In General.--From funds made available to carry out this 
subpart under section 4003(2), the Secretary may provide for the 
establishment of a National Coordinator Program under which the 
Secretary shall award grants to local educational agencies for the 
hiring of drug prevention and school safety program coordinators.
    ``(b) Use of Funds.--Amounts received under a grant under subsection 
(a) shall be used by local educational agencies to recruit, hire, and 
train individuals to serve as drug prevention and school safety program 
coordinators in schools with significant drug and school safety 
problems. Such coordinators shall be responsible for developing, 
conducting, and analyzing assessments of drug and

[[Page 115 STAT. 1756]]

crime problems at their schools, and administering the safe and drug-
free grant program at such schools.

``SEC. 4126. <<NOTE: 20 USC 7136.>>  COMMUNITY SERVICE GRANT PROGRAM.

    ``(a) In General.--From funds made available to carry out this 
subpart under section 4003(2), the Secretary may make grants to States 
to carry out programs under which students expelled or suspended from 
school are required to perform community service.
    ``(b) Allocation.--From the amount described in subsection (a), the 
Secretary shall allocate among the States--
            ``(1) one-half according to the ratio between the school-
        aged population of each State and the school-aged population of 
        all the States; and
            ``(2) one-half according to the ratio between the amount 
        each State received under section 1124A for the preceding year 
        and the sum of such amounts received by all the States.

    ``(c) Minimum.--For any fiscal year, no State shall be allotted 
under this section an amount that is less than one-half of 1 percent of 
the total amount allotted to all the States under this section.
    ``(d) Reallotment.--The Secretary may reallot any amount of any 
allotment to a State if the Secretary determines that the State will be 
unable to use such amount within 2 years of such allotment. Such 
reallotments shall be made on the same basis as allotments are made 
under subsection (b).
    ``(e) Definition.--In this section, the term `State' means each of 
the 50 States, the District of Columbia, and the Commonwealth of Puerto 
Rico.

``SEC. 4127. <<NOTE: Establishment. 20 USC 7137.>>  SCHOOL SECURITY 
            TECHNOLOGY AND RESOURCE CENTER.

    ``(a) Center.--From funds made available to carry out this subpart 
under section 4003(2), the Secretary, the Attorney General, and the 
Secretary of Energy may enter into an agreement for the establishment at 
the Sandia National Laboratories, in partnership with the National Law 
Enforcement and Corrections Technology Center--Southeast and the 
National Center for Rural Law Enforcement in Little Rock, Arkansas, of a 
center to be known as the `School Security Technology and Resource 
Center' (hereafter in this section `the Center').
    ``(b) Administration.--The Center established under subsection (a) 
shall be administered by the Attorney General.
    ``(c) Functions.--The center established under subsection (a) shall 
be a resource to local educational agencies for school security 
assessments, security technology development, evaluation and 
implementation, and technical assistance relating to improving school 
security. <<NOTE: Publication. Reports.>>  The Center will also conduct 
and publish school violence research, coalesce data from victim 
communities, and monitor and report on schools that implement school 
security strategies.

``SEC. 4128. <<NOTE: 20 USC 7138.>>  NATIONAL CENTER FOR SCHOOL AND 
            YOUTH SAFETY.

    ``(a) Establishment.--From funds made available to carry out this 
subpart under section 4003(2), the Secretary of Education and the 
Attorney General may jointly establish a National Center for School and 
Youth Safety (in this section referred to as the `Center'). The 
Secretary of Education and the Attorney General may establish the Center 
at an existing facility, if the facility has a history of performing two 
or more of the duties described in subsection (b). The Secretary of 
Education and the Attorney

[[Page 115 STAT. 1757]]

General shall jointly appoint a Director of the Center to oversee the 
operation of the Center.
    ``(b) Duties.--The Center shall carry out emergency response, 
anonymous student hotline, consultation, and information and outreach 
activities with respect to elementary and secondary school safety, 
including the following:
            ``(1) Emergency response.--The staff of the Center, and such 
        temporary contract employees as the Director of the Center shall 
        determine necessary, shall offer emergency assistance to local 
        communities to respond to school safety crises. Such assistance 
        shall include counseling for victims and the community, 
        assistance to law enforcement to address short-term security 
        concerns, and advice on how to enhance school safety, prevent 
        future incidents, and respond to future incidents.
            ``(2) Anonymous student hotline.--The Center shall establish 
        a toll-free telephone number for students to report criminal 
        activity, threats of criminal activity, and other high-risk 
        behaviors such as substance abuse, gang or cult affiliation, 
        depression, or other warning signs of potentially violent 
        behavior. The Center shall relay the reports, without 
        attribution, to local law enforcement or appropriate school 
        hotlines. The Director of the Center shall work with the 
        Attorney General to establish guidelines for Center staff to 
        work with law enforcement around the Nation to relay information 
        reported through the hotline.
            ``(3) Consultation.--The Center shall establish a toll-free 
        number for the public to contact staff of the Center for 
        consultation regarding school safety. The Director of the Center 
        shall hire administrative staff and individuals with expertise 
        in enhancing school safety, including individuals with 
        backgrounds in counseling and psychology, education, law 
        enforcement and criminal justice, and community development to 
        assist in the consultation.
            ``(4) Information and outreach.--The Center shall compile 
        information about the best practices in school violence 
        prevention, intervention, and crisis management, and shall serve 
        as a clearinghouse for model school safety program information. 
        The staff of the Center shall work to ensure local governments, 
        school officials, parents, students, and law enforcement 
        officials and agencies are aware of the resources, grants, and 
        expertise available to enhance school safety and prevent school 
        crime. The staff of the Center shall give special attention to 
        providing outreach to rural and impoverished communities.

``SEC. 4129. <<NOTE: 20 USC 7139.>>  GRANTS TO REDUCE ALCOHOL ABUSE.

    ``(a) In General.--The Secretary, in consultation with the 
Administrator of the Substance Abuse and Mental Health Services 
Administration, may award grants from funds made available to carry out 
this subpart under section 4003(2), on a competitive basis, to local 
educational agencies to enable such agencies to develop and implement 
innovative and effective programs to reduce alcohol abuse in secondary 
schools.
    ``(b) Eligibility.--To be eligible to receive a grant under 
subsection (a), a local educational agency shall prepare and submit to 
the Secretary an application at such time, in such manner,

[[Page 115 STAT. 1758]]

and containing such information as the Secretary may require, 
including--
            ``(1) a description of the activities to be carried out 
        under the grant;
            ``(2) an assurance that such activities will include one or 
        more of the proven strategies for reducing underage alcohol 
        abuse as determined by the Substance Abuse and Mental Health 
        Services Administration;
            ``(3) an explanation of how activities to be carried out 
        under the grant that are not described in paragraph (2) will be 
        effective in reducing underage alcohol abuse, including 
        references to the past effectiveness of such activities;
            ``(4) an assurance that the applicant will submit to the 
        Secretary an annual report concerning the effectiveness of the 
        programs and activities funded under the grant; and
            ``(5) such other information as the Secretary determines 
        appropriate.

    ``(c) <<NOTE: Procedures.>>  Streamlining of Process for Low-Income 
and Rural LEAs.--The Secretary, in consultation with the Administrator 
of the Substance Abuse and Mental Health Services Administration, shall 
develop procedures to make the application process for grants under this 
section more user-friendly, particularly for low-income and rural local 
educational agencies.

    ``(d) Reservations.--
            ``(1) SAMHSA.--The Secretary may reserve 20 percent of any 
        amount used to carry out this section to enable the 
        Administrator of the Substance Abuse and Mental Health Services 
        Administration to provide alcohol abuse resources and start-up 
        assistance to local educational agencies receiving grants under 
        this section.
            ``(2) Low-income and rural areas.--The Secretary may reserve 
        25 percent of any amount used to carry out this section to award 
        grants to low-income and rural local educational agencies.

``SEC. 4130. <<NOTE: 20 USC 7140.>>  MENTORING PROGRAMS.

    ``(a) Purpose; Definitions.--
            ``(1) Purpose.--The purpose of this section is to make 
        assistance available to promote mentoring programs for children 
        with greatest need--
                    ``(A) to assist such children in receiving support 
                and guidance from a mentor;
                    ``(B) to improve the academic achievement of such 
                children;
                    ``(C) to improve interpersonal relationships between 
                such children and their peers, teachers, other adults, 
                and family members;
                    ``(D) to reduce the dropout rate of such children; 
                and
                    ``(E) to reduce juvenile delinquency and involvement 
                in gangs by such children.
            ``(2) Definitions.--In this part:
                    ``(A) Child with greatest need.--The term `child 
                with greatest need' means a child who is at risk of 
                educational failure, dropping out of school, or 
                involvement in criminal or delinquent activities, or who 
                lacks strong positive role models.

[[Page 115 STAT. 1759]]

                    ``(B) Eligible entity.--The term `eligible entity' 
                means--
                          ``(i) a local educational agency;
                          ``(ii) a nonprofit, community-based 
                      organization; or
                          ``(iii) a partnership between a local 
                      educational agency and a nonprofit, community-
                      based organization.
                    ``(C) Mentor.--The term `mentor' means a responsible 
                adult, a postsecondary school student, or a secondary 
                school student who works with a child--
                          ``(i) to provide a positive role model for the 
                      child;
                          ``(ii) to establish a supportive relationship 
                      with the child; and
                          ``(iii) to provide the child with academic 
                      assistance and exposure to new experiences and 
                      examples of opportunity that enhance the ability 
                      of the child to become a responsible adult.
                    ``(D) State.--The term `State' means each of the 
                several States, the District of Columbia, the 
                Commonwealth of Puerto Rico, the United States Virgin 
                Islands, Guam, American Samoa, and the Commonwealth of 
                the Northern Mariana Islands.

    ``(b) Grant Program.--
            ``(1) In general.--The Secretary may award grants from funds 
        made available to carry out this subpart under section 4003(2) 
        to eligible entities to assist such entities in establishing and 
        supporting mentoring programs and activities for children with 
        greatest need that--
                    ``(A) are designed to link such children 
                (particularly children living in rural areas, high-crime 
                areas, or troubled home environments, or children 
                experiencing educational failure) with mentors who--
                          ``(i) have received training and support in 
                      mentoring;
                          ``(ii) have been screened using appropriate 
                      reference checks, child and domestic abuse record 
                      checks, and criminal background checks; and
                          ``(iii) are interested in working with 
                      children with greatest need; and
                    ``(B) are intended to achieve one or more of the 
                following goals with respect to children with greatest 
                need:
                          ``(i) Provide general guidance.
                          ``(ii) Promote personal and social 
                      responsibility.
                          ``(iii) Increase participation in, and enhance 
                      the ability to benefit from, elementary and 
                      secondary education.
                          ``(iv) Discourage illegal use of drugs and 
                      alcohol, violence, use of dangerous weapons, 
                      promiscuous behavior, and other criminal, harmful, 
                      or potentially harmful activity.
                          ``(v) Encourage participation in community 
                      service and community activities.
                          ``(vi) Encourage setting goals and planning 
                      for the future, including encouragement of 
                      graduation from secondary school and planning for 
                      postsecondary education or training.
                          ``(viii) Discourage involvement in gangs.
            ``(2) Use of funds.--

[[Page 115 STAT. 1760]]

                    ``(A) In general.--Each eligible entity awarded a 
                grant under this subsection shall use the grant funds 
                for activities that establish or implement a mentoring 
                program, that may include--
                          ``(i) hiring of mentoring coordinators and 
                      support staff;
                          ``(ii) providing for the professional 
                      development of mentoring coordinators and support 
                      staff;
                          ``(iii) recruitment, screening, and training 
                      of mentors;
                          ``(iv) reimbursement to schools, if 
                      appropriate, for the use of school materials or 
                      supplies in carrying out the mentoring program;
                          ``(v) dissemination of outreach materials;
                          ``(vi) evaluation of the mentoring program 
                      using scientifically based methods; and
                          ``(vii) such other activities as the Secretary 
                      may reasonably prescribe by rule.
                    ``(B) Prohibited uses.--Notwithstanding subparagraph 
                (A), an eligible entity awarded a grant under this 
                section may not use the grant funds--
                          ``(i) to directly compensate mentors;
                          ``(ii) to obtain educational or other 
                      materials or equipment that would otherwise be 
                      used in the ordinary course of the eligible 
                      entity's operations;
                          ``(iii) to support litigation of any kind; or
                          ``(iv) for any other purpose reasonably 
                      prohibited by the Secretary by rule.
            ``(3) Availability of funds.--Funds made available through a 
        grant under this section shall be available for obligation for a 
        period not to exceed 3 years.
            ``(4) Application.--Each eligible entity seeking a grant 
        under this section shall submit to the Secretary an application 
        that includes--
                    ``(A) a description of the plan for the mentoring 
                program the eligible entity proposes to carry out with 
                such grant;
                    ``(B) information on the children expected to be 
                served by the mentoring program for which such grant is 
                sought;
                    ``(C) a description of the mechanism the eligible 
                entity will use to match children with mentors based on 
                the needs of the children;
                    ``(D) an assurance that no mentor will be assigned 
                to mentor so many children that the assignment will 
                undermine the mentor's ability to be an effective mentor 
                or the mentor's ability to establish a close 
                relationship (a one-to-one relationship, where 
                practicable) with each mentored child;
                    ``(E) an assurance that the mentoring program will 
                provide children with a variety of experiences and 
                support, including--
                          ``(i) emotional support;
                          ``(ii) academic assistance; and
                          ``(iii) exposure to experiences that the 
                      children might not otherwise encounter on their 
                      own;
                    ``(F) an assurance that the mentoring program will 
                be monitored to ensure that each child assigned a mentor

[[Page 115 STAT. 1761]]

                benefits from that assignment and that the child will be 
                assigned a new mentor if the relationship between the 
                original mentor and the child is not beneficial to the 
                child;
                    ``(G) information regarding how mentors and children 
                will be recruited to the mentoring program;
                    ``(H) information regarding how prospective mentors 
                will be screened;
                    ``(I) information on the training that will be 
                provided to mentors; and
                    ``(J) information on the system that the eligible 
                entity will use to manage and monitor information 
                relating to the mentoring program's--
                          ``(i) reference checks;
                          ``(ii) child and domestic abuse record checks;
                          ``(iii) criminal background checks; and
                          ``(iv) procedure for matching children with 
                      mentors.
            ``(5) Selection.--
                    ``(A) Competitive basis.--In accordance with this 
                subsection, the Secretary shall award grants to eligible 
                entities on a competitive basis.
                    ``(B) Priority.--In awarding grants under 
                subparagraph (A), the Secretary shall give priority to 
                each eligible entity that--
                          ``(i) serves children with greatest need 
                      living in rural areas, high-crime areas, or 
                      troubled home environments, or who attend schools 
                      with violence problems;
                          ``(ii) provides high quality background 
                      screening of mentors, training of mentors, and 
                      technical assistance in carrying out mentoring 
                      programs; or
                          ``(iii) proposes a school-based mentoring 
                      program.
                    ``(C) Other considerations.--In awarding grants 
                under subparagraph (A), the Secretary shall also 
                consider--
                          ``(i) the degree to which the location of the 
                      mentoring program proposed by each eligible entity 
                      contributes to a fair distribution of mentoring 
                      programs with respect to urban and rural 
                      locations;
                          ``(ii) the quality of the mentoring program 
                      proposed by each eligible entity, including--
                                    ``(I) the resources, if any, the 
                                eligible entity will dedicate to 
                                providing children with opportunities 
                                for job training or postsecondary 
                                education;
                                    ``(II) the degree to which parents, 
                                teachers, community-based organizations, 
                                and the local community have 
                                participated, or will participate, in 
                                the design and implementation of the 
                                proposed mentoring program;
                                    ``(III) the degree to which the 
                                eligible entity can ensure that mentors 
                                will develop longstanding relationships 
                                with the children they mentor;
                                    ``(IV) the degree to which the 
                                mentoring program will serve children 
                                with greatest need in the 4th through 
                                8th grades; and
                                    ``(V) the degree to which the 
                                mentoring program will continue to serve 
                                children from the 9th grade through 
                                graduation from secondary school, as 
                                needed; and

[[Page 115 STAT. 1762]]

                          ``(iii) the capability of each eligible entity 
                      to effectively implement its mentoring program.
                    ``(D) Grant to each state.--Notwithstanding any 
                other provision of this subsection, in awarding grants 
                under subparagraph (A), the Secretary shall select not 
                less than one grant recipient from each State for which 
                there is an eligible entity that submits an application 
                of sufficient quality pursuant to paragraph (4).
            ``(6) Model screening guidelines.--
                    ``(A) In general.--Based on model screening 
                guidelines developed by the Office of Juvenile Programs 
                of the Department of Justice, the Secretary shall 
                develop and distribute to each eligible entity awarded a 
                grant under this section specific model guidelines for 
                the screening of mentors who seek to participate in 
                mentoring programs assisted under this section.
                    ``(B) Background checks.--The guidelines developed 
                under this subsection shall include, at a minimum, a 
                requirement that potential mentors be subject to 
                reference checks, child and domestic abuse record 
                checks, and criminal background checks.

``Subpart 3--Gun <<NOTE: Gun-Free Schools Act.>>  Possession

``SEC. <<NOTE: 20 USC 7151.>>  4141. GUN-FREE REQUIREMENTS.

    ``(a) Short Title.--This subpart may be cited as the `Gun-Free 
Schools Act'.
    ``(b) Requirements.--
            ``(1) In general.--Each State receiving Federal funds under 
        any title of this Act shall have in effect a State law requiring 
        local educational agencies to expel from school for a period of 
        not less than 1 year a student who is determined to have brought 
        a firearm to a school, or to have possessed a firearm at a 
        school, under the jurisdiction of local educational agencies in 
        that State, except that such State law shall allow the chief 
        administering officer of a local educational agency to modify 
        such expulsion requirement for a student on a case-by-case basis 
        if such modification is in writing.
            ``(2) Construction.--Nothing in this subpart shall be 
        construed to prevent a State from allowing a local educational 
        agency that has expelled a student from such a student's regular 
        school setting from providing educational services to such 
        student in an alternative setting.
            ``(3) Definition.--For the purpose of this section, the term 
        `firearm' has the same meaning given such term in section 921(a) 
        of title 18, United States Code.

    ``(c) Special Rule.--The provisions of this section shall be 
construed in a manner consistent with the Individuals with Disabilities 
Education Act.
    ``(d) Report to State.--Each local educational agency requesting 
assistance from the State educational agency that is to be provided from 
funds made available to the State under any title of this Act shall 
provide to the State, in the application requesting such assistance--
            ``(1) an assurance that such local educational agency is in 
        compliance with the State law required by subsection (b); and

[[Page 115 STAT. 1763]]

            ``(2) a description of the circumstances surrounding any 
        expulsions imposed under the State law required by subsection 
        (b), including--
                    ``(A) the name of the school concerned;
                    ``(B) the number of students expelled from such 
                school; and
                    ``(C) the type of firearms concerned.

    ``(e) Reporting.--Each State shall report the information described 
in subsection (d) to the Secretary on an annual basis.
    ``(f) Definition.--For the purpose of subsection (d), the term 
`school' means any setting that is under the control and supervision of 
the local educational agency for the purpose of student activities 
approved and authorized by the local educational agency.
    ``(g) Exception.--Nothing in this section shall apply to a firearm 
that is lawfully stored inside a locked vehicle on school property, or 
if it is for activities approved and authorized by the local educational 
agency and the local educational agency adopts appropriate safeguards to 
ensure student safety.
    ``(h) Policy Regarding Criminal Justice System Referral.--
            ``(1) In general.--No funds shall be made available under 
        any title of this Act to any local educational agency unless 
        such agency has a policy requiring referral to the criminal 
        justice or juvenile delinquency system of any student who brings 
        a firearm or weapon to a school served by such agency.
            ``(2) Definition.--For the purpose of this subsection, the 
        term `school' has the same meaning given to such term by section 
        921(a) of title 18, United States Code.

                     ``Subpart 4--General Provisions

``SEC. 4151. <<NOTE: 20 USC 7161.>>  DEFINITIONS.

    ``In this part:
            ``(1) Controlled substance.--The term `controlled substance' 
        means a drug or other substance identified under Schedule I, II, 
        III, IV, or V in section 202(c) of the Controlled Substances Act 
        (21 U.S.C. 812(c)).
            ``(2) Drug.--The term `drug' includes controlled substances; 
        the illegal use of alcohol and tobacco; and the harmful, 
        abusive, or addictive use of substances, including inhalants and 
        anabolic steroids.
            ``(3) Drug and violence prevention.--The term `drug and 
        violence prevention' means--
                    ``(A) with respect to drugs, prevention, early 
                intervention, rehabilitation referral, or education 
                related to the illegal use of drugs;
                    ``(B) with respect to violence, the promotion of 
                school safety, such that students and school personnel 
                are free from violent and disruptive acts, including 
                sexual harassment and abuse, and victimization 
                associated with prejudice and intolerance, on school 
                premises, going to and from school, and at school-
                sponsored activities, through the creation and 
                maintenance of a school environment that is free of 
                weapons and fosters individual responsibility and 
                respect for the rights of others.
            ``(4) Hate crime.--The term `hate crime' means a crime as 
        described in section 1(b) of the Hate Crime Statistics Act of 
        1990.

[[Page 115 STAT. 1764]]

            ``(5) Nonprofit.--The term `nonprofit', as applied to a 
        school, agency, organization, or institution means a school, 
        agency, organization, or institution owned and operated by one 
        or more nonprofit corporations or associations, no part of the 
        net earnings of which inures, or may lawfully inure, to the 
        benefit of any private shareholder or individual.
            ``(6) Protective factor, buffer, or asset.--The terms 
        `protective factor', `buffer', and `asset' mean any one of a 
        number of the community, school, family, or peer-individual 
        domains that are known, through prospective, longitudinal 
        research efforts, or which are grounded in a well-established 
        theoretical model of prevention, and have been shown to prevent 
        alcohol, tobacco, or illegal drug use, as well as violent 
        behavior, by youth in the community, and which promote positive 
        youth development.
            ``(7) Risk factor.--The term `risk factor' means any one of 
        a number of characteristics of the community, school, family, or 
        peer-individual domains that are known, through prospective, 
        longitudinal research efforts, to be predictive of alcohol, 
        tobacco, and illegal drug use, as well as violent behavior, by 
        youth in the school and community.
            ``(8) School-aged population.--The term `school-aged 
        population' means the population aged five through 17, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data available from the Department of Commerce.
            ``(9) School based mental health services provider.--The 
        term `school based mental health services provider' includes a 
        State licensed or State certified school counselor, school 
        psychologist, school social worker, or other State licensed or 
        certified mental health professional qualified under State law 
        to provide such services to children and adolescents.
            ``(10) School personnel.--The term `school personnel' 
        includes teachers, principals, administrators, counselors, 
        social workers, psychologists, nurses, librarians, and other 
        support staff who are employed by a school or who perform 
        services for the school on a contractual basis.
            ``(11) School resource officer.--The term `school resource 
        officer' means a career law enforcement officer, with sworn 
        authority, deployed in community oriented policing, and assigned 
        by the employing police department to a local educational agency 
        to work in collaboration with schools and community based 
        organizations to--
                    ``(A) educate students in crime and illegal drug use 
                prevention and safety;
                    ``(B) develop or expand community justice 
                initiatives for students; and
                    ``(C) train students in conflict resolution, 
                restorative justice, and crime and illegal drug use 
                awareness.

``SEC. 4152. <<NOTE: 20 USC 7162.>>  MESSAGE AND MATERIALS.

    ``(a) `Wrong and Harmful' Message.--Drug and violence prevention 
programs supported under this part shall convey a clear and consistent 
message that the illegal use of drugs and acts of violence are wrong and 
harmful.
    ``(b) Curriculum.--The Secretary shall not prescribe the use of 
specific curricula for programs supported under this part.

[[Page 115 STAT. 1765]]

``SEC. 4153. <<NOTE: 20 USC 7163.>>  PARENTAL CONSENT.

    ``Upon receipt of written notification from the parents or legal 
guardians of a student, the local educational agency shall withdraw such 
student from any program or activity funded under this part. The local 
educational agency shall make reasonable efforts to inform parents or 
legal guardians of the content of such programs or activities funded 
under this part, other than classroom instruction.

``SEC. 4154. <<NOTE: 20 USC 7164.>>  PROHIBITED USES OF FUNDS.

    ``No funds under this part may be used for--
            ``(1) construction (except for minor remodeling needed to 
        accomplish the purposes of this part); or
            ``(2) medical services, drug treatment or rehabilitation, 
        except for pupil services or referral to treatment for students 
        who are victims of, or witnesses to, crime or who illegally use 
        drugs.

``SEC. 4155. <<NOTE: 20 USC 7165.>>  TRANSFER OF SCHOOL DISCIPLINARY 
            RECORDS.

    ``(a) Nonapplication of Provisions.--This section shall not apply to 
any disciplinary records with respect to a suspension or expulsion that 
are transferred from a private, parochial or other nonpublic school, 
person, institution, or other entity, that provides education below the 
college level.
    ``(b) <<NOTE: Deadline. Procedures.>>  Disciplinary Records.--In 
accordance with the Family Educational Rights and Privacy Act of 1974 
(20 U.S.C. 1232g), not later than 2 years after the date of enactment of 
this part, each State receiving Federal funds under this Act shall 
provide an assurance to the Secretary that the State has a procedure in 
place to facilitate the transfer of disciplinary records, with respect 
to a suspension or expulsion, by local educational agencies to any 
private or public elementary school or secondary school for any student 
who is enrolled or seeks, intends, or is instructed to enroll, on a 
full- or part-time basis, in the school.

            ``PART B--21ST CENTURY COMMUNITY LEARNING CENTERS

``SEC. 4201. <<NOTE: 20 USC 7171.>>  PURPOSE; DEFINITIONS.

    ``(a) Purpose.--The purpose of this part is to provide opportunities 
for communities to establish or expand activities in community learning 
centers that--
            ``(1) provide opportunities for academic enrichment, 
        including providing tutorial services to help students, 
        particularly students who attend low-performing schools, to meet 
        State and local student academic achievement standards in core 
        academic subjects, such as reading and mathematics;
            ``(2) offer students a broad array of additional services, 
        programs, and activities, such as youth development activities, 
        drug and violence prevention programs, counseling programs, art, 
        music, and recreation programs, technology education programs, 
        and character education programs, that are designed to reinforce 
        and complement the regular academic program of participating 
        students; and
            ``(3) offer families of students served by community 
        learning centers opportunities for literacy and related 
        educational development.

    ``(b) Definitions.--In this part:

[[Page 115 STAT. 1766]]

            ``(1) Community learning center.--The term `community 
        learning center' means an entity that--
                    ``(A) assists students in meeting State and local 
                academic achievement standards in core academic 
                subjects, such as reading and mathematics, by providing 
                the students with opportunities for academic enrichment 
                activities and a broad array of other activities (such 
                as drug and violence prevention, counseling, art, music, 
                recreation, technology, and character education 
                programs) during nonschool hours or periods when school 
                is not in session (such as before and after school or 
                during summer recess) that reinforce and complement the 
                regular academic programs of the schools attended by the 
                students served; and
                    ``(B) offers families of students served by such 
                center opportunities for literacy and related 
                educational development.
            ``(2) Covered program.--The term `covered program' means a 
        program for which--
                    ``(A) the Secretary made a grant under part I of 
                title X (as such part was in effect on the day before 
                the date of enactment of the No Child Left Behind Act of 
                2001); and
                    ``(B) the grant period had not ended on that date of 
                enactment.
            ``(3) Eligible entity.--The term `eligible entity' means a 
        local educational agency, community-based organization, another 
        public or private entity, or a consortium of two or more of such 
        agencies, organizations, or entities.
            ``(4) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 4202. <<NOTE: 20 USC 7172.>>  ALLOTMENTS TO STATES.

    ``(a) Reservation.--From the funds appropriated under section 4206 
for any fiscal year, the Secretary shall reserve--
            ``(1) such amount as may be necessary to make continuation 
        awards to grant recipients under covered programs (under the 
        terms of those grants);
            ``(2) not more than 1 percent for national activities, which 
        the Secretary may carry out directly or through grants and 
        contracts, such as providing technical assistance to eligible 
        entities carrying out programs under this part or conducting a 
        national evaluation; and
            ``(3) not more than 1 percent for payments to the outlying 
        areas and the Bureau of Indian Affairs, to be allotted in 
        accordance with their respective needs for assistance under this 
        part, as determined by the Secretary, to enable the outlying 
        areas and the Bureau to carry out the purpose of this part.

    ``(b) State Allotments.--
            ``(1) Determination.--From the funds appropriated under 
        section 4206 for any fiscal year and remaining after the 
        Secretary makes reservations under subsection (a), the Secretary 
        shall allot to each State for the fiscal year an amount that 
        bears the same relationship to the remainder as the amount the 
        State received under subpart 2 of part A of title I for the 
        preceding fiscal year bears to the amount all States received 
        under that subpart for the preceding fiscal year, except that

[[Page 115 STAT. 1767]]

        no State shall receive less than an amount equal to one-half of 
        1 percent of the total amount made available to all States under 
        this subsection.
            ``(2) Reallotment of unused funds.--If a State does not 
        receive an allotment under this part for a fiscal year, the 
        Secretary shall reallot the amount of the State's allotment to 
        the remaining States in accordance with this section.

    ``(c) State Use of Funds.--
            ``(1) In general.--Each State that receives an allotment 
        under this part shall reserve not less than 95 percent of the 
        amount allotted to such State under subsection (b), for each 
        fiscal year for awards to eligible entities under section 4204.
            ``(2) State administration.--A State educational agency may 
        use not more than 2 percent of the amount made available to the 
        State under subsection (b) for--
                    ``(A) the administrative costs of carrying out its 
                responsibilities under this part;
                    ``(B) establishing and implementing a peer review 
                process for grant applications described in section 
                4204(b) (including consultation with the Governor and 
                other State agencies responsible for administering youth 
                development programs and adult learning activities); and
                    supervising the awarding of funds to eligible 
                entities (in consultation with the Governor and other 
                State agencies responsible for administering youth 
                development programs and adult learning activities).
            ``(3) State activities.--A State educational agency may use 
        not more than 3 percent of the amount made available to the 
        State under subsection (b) for the following activities:
                    ``(A) Monitoring and evaluation of programs and 
                activities assisted under this part.
                    ``(B) Providing capacity building, training, and 
                technical assistance under this part.
                    ``(C) Comprehensive evaluation (directly, or through 
                a grant or contract) of the effectiveness of programs 
                and activities assisted under this part.
                    ``(D) Providing training and technical assistance to 
                eligible entities who are applicants for or recipients 
                of awards under this part.

``SEC. 4203. <<NOTE: 20 USC 7173.>>  STATE APPLICATION.

    ``(a) In General.--In order to receive an allotment under section 
4202 for any fiscal year, a State shall submit to the Secretary, at such 
time as the Secretary may require, an application that--
            ``(1) designates the State educational agency as the agency 
        responsible for the administration and supervision of programs 
        assisted under this part;
            ``(2) describes how the State educational agency will use 
        funds received under this part, including funds reserved for 
        State-level activities;
            ``(3) contains an assurance that the State educational 
        agency will make awards under this part only to eligible 
        entities that propose to serve--
                    ``(A) students who primarily attend--
                          ``(i) schools eligible for schoolwide programs 
                      under section 1114; or

[[Page 115 STAT. 1768]]

                          ``(ii) schools that serve a high percentage of 
                      students from low-income families; and
                    ``(B) the families of students described in 
                subparagraph (A);
            ``(4) describes the procedures and criteria the State 
        educational agency will use for reviewing applications and 
        awarding funds to eligible entities on a competitive basis, 
        which shall include procedures and criteria that take into 
        consideration the likelihood that a proposed community learning 
        center will help participating students meet local content and 
        student academic achievement standards;
            ``(5) describes how the State educational agency will ensure 
        that awards made under this part are--
                    ``(A) of sufficient size and scope to support high-
                quality, effective programs that are consistent with the 
                purpose of this part; and
                    ``(B) in amounts that are consistent with section 
                4204(h);
            ``(6) describes the steps the State educational agency will 
        take to ensure that programs implement effective strategies, 
        including providing ongoing technical assistance and training, 
        evaluation, and dissemination of promising practices;
            ``(7) describes how programs under this part will be 
        coordinated with programs under this Act, and other programs as 
        appropriate;
            ``(8) contains an assurance that the State educational 
        agency--
                    ``(A) will make awards for programs for a period of 
                not less than 3 years and not more than 5 years; and
                    ``(B) will require each eligible entity seeking such 
                an award to submit a plan describing how the community 
                learning center to be funded through the award will 
                continue after funding under this part ends;
            ``(9) contains an assurance that funds appropriated to carry 
        out this part will be used to supplement, and not supplant, 
        other Federal, State, and local public funds expended to provide 
        programs and activities authorized under this part and other 
        similar programs;
            ``(10) contains an assurance that the State educational 
        agency will require eligible entities to describe in their 
        applications under section 4204(b) how the transportation needs 
        of participating students will be addressed;
            ``(11) provides an assurance that the application was 
        developed in consultation and coordination with appropriate 
        State officials, including the chief State school officer, and 
        other State agencies administering before and after school (or 
        summer school) programs, the heads of the State health and 
        mental health agencies or their designees, and representatives 
        of teachers, parents, students, the business community, and 
        community-based organizations;
            ``(12) describes the results of the State's needs and 
        resources assessment for before and after school activities, 
        which shall be based on the results of on-going State evaluation 
        activities;
            ``(13) describes how the State educational agency will 
        evaluate the effectiveness of programs and activities carried 
        out under this part, which shall include, at a minimum--

[[Page 115 STAT. 1769]]

                    ``(A) a description of the performance indicators 
                and performance measures that will be used to evaluate 
                programs and activities; and
                    ``(B) public dissemination of the evaluations of 
                programs and activities carried out under this part; and
            ``(14) provides for timely public notice of intent to file 
        an application and an assurance that the application will be 
        available for public review after submission.

    ``(b) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed to be 
approved by the Secretary unless the Secretary makes a written 
determination, prior to the expiration of the 120-day period beginning 
on the date on which the Secretary received the application, that the 
application is not in compliance with this part.
    ``(c) Disapproval.--The Secretary shall not finally disapprove the 
application, except after giving the State educational agency notice and 
opportunity for a hearing.
    ``(d) Notification.--If the Secretary finds that the application is 
not in compliance, in whole or in part, with this part, the Secretary 
shall--
            ``(1) give the State educational agency notice and an 
        opportunity for a hearing; and
            ``(2) notify the State educational agency of the finding of 
        noncompliance, and, in such notification, shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only as to the 
                noncompliant provisions, needed to make the application 
                compliant.

    ``(e) Response.--If the State educational agency responds to the 
Secretary's notification described in subsection (d)(2) during the 45-
day period beginning on the date on which the agency received the 
notification, and resubmits the application with the requested 
information described in subsection (d)(2)(B), the Secretary shall 
approve or disapprove such application prior to the later of--
            ``(1) the expiration of the 45-day period beginning on the 
        date on which the application is resubmitted; or
            ``(2) the expiration of the 120-day period described in 
        subsection (b).

    ``(f) Failure To Respond.--If the State educational agency does not 
respond to the Secretary's notification described in subsection (d)(2) 
during the 45-day period beginning on the date on which the agency 
received the notification, such application shall be deemed to be 
disapproved.

``SEC. 4204. <<NOTE: 20 USC 7174.>>  LOCAL COMPETITIVE GRANT PROGRAM.

    ``(a) In General.--A State that receives funds under this part for a 
fiscal year shall provide the amount made available under section 
4202(c)(1) to eligible entities for community learning centers in 
accordance with this part.
    ``(b) Application.--
            ``(1) In general.--To be eligible to receive an award under 
        this part, an eligible entity shall submit an application to the 
        State educational agency at such time, in such manner, and 
        including such information as the State educational agency may 
        reasonably require.

[[Page 115 STAT. 1770]]

            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall include--
                    ``(A) a description of the before and after school 
                or summer recess activities to be funded, including--
                          ``(i) an assurance that the program will take 
                      place in a safe and easily accessible facility;
                          ``(ii) a description of how students 
                      participating in the program carried out by the 
                      community learning center will travel safely to 
                      and from the center and home; and
                          ``(iii) a description of how the eligible 
                      entity will disseminate information about the 
                      community learning center (including its location) 
                      to the community in a manner that is 
                      understandable and accessible;
                    ``(B) a description of how the activity is expected 
                to improve student academic achievement;
                    ``(C) an identification of Federal, State, and local 
                programs that will be combined or coordinated with the 
                proposed program to make the most effective use of 
                public resources;
                    ``(D) an assurance that the proposed program was 
                developed, and will be carried out, in active 
                collaboration with the schools the students attend;
                    ``(E) a description of how the activities will meet 
                the principles of effectiveness described in section 
                4205(b);
                    ``(F) an assurance that the program will primarily 
                target students who attend schools eligible for 
                schoolwide programs under section 1114 and the families 
                of such students;
                    ``(G) an assurance that funds under this part will 
                be used to increase the level of State, local, and other 
                non-Federal funds that would, in the absence of funds 
                under this part, be made available for programs and 
                activities authorized under this part, and in no case 
                supplant Federal, State, local, or non-Federal funds;
                    ``(H) a description of the partnership between a 
                local educational agency, a community-based 
                organization, and another public entity or private 
                entity, if appropriate;
                    ``(I) an evaluation of the community needs and 
                available resources for the community learning center 
                and a description of how the program proposed to be 
                carried out in the center will address those needs 
                (including the needs of working families);
                    ``(J) a demonstration that the eligible entity has 
                experience, or promise of success, in providing 
                educational and related activities that will complement 
                and enhance the academic performance, achievement, and 
                positive youth development of the students;
                    ``(K) a description of a preliminary plan for how 
                the community learning center will continue after 
                funding under this part ends;
                    ``(L) an assurance that the community will be given 
                notice of an intent to submit an application and that 
                the application and any waiver request will be available 
                for public review after submission of the application;
                    ``(M) if the eligible entity plans to use senior 
                volunteers in activities carried out through the 
                community learning

[[Page 115 STAT. 1771]]

                center, a description of how the eligible entity will 
                encourage and use appropriately qualified seniors to 
                serve as the volunteers; and
                    ``(N) such other information and assurances as the 
                State educational agency may reasonably require.

    ``(c) Approval of Certain Applications.--The State educational 
agency may approve an application under this part for a program to be 
located in a facility other than an elementary school or secondary 
school only if the program will be at least as available and accessible 
to the students to be served as if the program were located in an 
elementary school or secondary school.
    ``(d) Permissive Local Match.--
            ``(1) In general.--A State educational agency may require an 
        eligible entity to match funds awarded under this part, except 
        that such match may not exceed the amount of the grant award and 
        may not be derived from other Federal or State funds.
            ``(2) Sliding scale.--The amount of a match under paragraph 
        (1) shall be established based on a sliding fee scale that takes 
        into account--
                    ``(A) the relative poverty of the population to be 
                targeted by the eligible entity; and
                    ``(B) the ability of the eligible entity to obtain 
                such matching funds.
            ``(3) In-kind contributions.--Each State educational agency 
        that requires an eligible entity to match funds under this 
        subsection shall permit the eligible entity to provide all or 
        any portion of such match in the form of in-kind contributions.
            ``(4) Consideration.--Notwithstanding this subsection, a 
        State educational agency shall not consider an eligible entity's 
        ability to match funds when determining which eligible entities 
        will receive awards under this part.

    ``(e) Peer Review.--In reviewing local applications under this 
section, a State educational agency shall use a peer review process or 
other methods of assuring the quality of such applications.
    ``(f) Geographic Diversity.--To the extent practicable, a State 
educational agency shall distribute funds under this part equitably 
among geographic areas within the State, including urban and rural 
communities.
    ``(g) Duration of Awards.--Grants under this part may be awarded for 
a period of not less than 3 years and not more than 5 years.
    ``(h) Amount of Awards.--A grant awarded under this part may not be 
made in an amount that is less than $50,000.
    ``(i) Priority.--
            ``(1) In general.--In awarding grants under this part, a 
        State educational agency shall give priority to applications--
                    ``(A) proposing to target services to students who 
                attend schools that have been identified as in need of 
                improvement under section 1116; and
                    ``(B) submitted jointly by eligible entities 
                consisting of not less than 1--
                          ``(i) local educational agency receiving funds 
                      under part A of title I; and
                          ``(ii) community-based organization or other 
                      public or private entity.

[[Page 115 STAT. 1772]]

            ``(2) Special rule.--The State educational agency shall 
        provide the same priority under paragraph (1) to an application 
        submitted by a local educational agency if the local educational 
        agency demonstrates that it is unable to partner with a 
        community-based organization in reasonable geographic proximity 
        and of sufficient quality to meet the requirements of this part.

``SEC. 4205. <<NOTE: 20 USC 7175.>>  LOCAL ACTIVITIES.

    ``(a) Authorized Activities.--Each eligible entity that receives an 
award under this part may use the award funds to carry out a broad array 
of before and after school activities (including during summer recess 
periods) that advance student academic achievement, including--
            ``(1) remedial education activities and academic enrichment 
        learning programs, including providing additional assistance to 
        students to allow the students to improve their academic 
        achievement;
            ``(2) mathematics and science education activities;
            ``(3) arts and music education activities;
            ``(4) entrepreneurial education programs;
            ``(5) tutoring services (including those provided by senior 
        citizen volunteers) and mentoring programs;
            ``(6) programs that provide after school activities for 
        limited English proficient students that emphasize language 
        skills and academic achievement;
            ``(7) recreational activities;
            ``(8) telecommunications and technology education programs;
            ``(9) expanded library service hours;
            ``(10) programs that promote parental involvement and family 
        literacy;
            ``(11) programs that provide assistance to students who have 
        been truant, suspended, or expelled to allow the students to 
        improve their academic achievement; and
            ``(12) drug and violence prevention programs, counseling 
        programs, and character education programs.

    ``(b) Principles of Effectiveness.--
            ``(1) In general.--For a program or activity developed 
        pursuant to this part to meet the principles of effectiveness, 
        such program or activity shall--
                    ``(A) be based upon an assessment of objective data 
                regarding the need for before and after school programs 
                (including during summer recess periods) and activities 
                in the schools and communities;
                    ``(B) be based upon an established set of 
                performance measures aimed at ensuring the availability 
                of high quality academic enrichment opportunities; and
                    ``(C) if appropriate, be based upon scientifically 
                based research that provides evidence that the program 
                or activity will help students meet the State and local 
                student academic achievement standards.
            ``(2) Periodic evaluation.--
                    ``(A) In general.--The program or activity shall 
                undergo a periodic evaluation to assess its progress 
                toward achieving its goal of providing high quality 
                opportunities for academic enrichment.

[[Page 115 STAT. 1773]]

                    ``(B) Use of results.--The results of evaluations 
                under subparagraph (A) shall be--
                          ``(i) used to refine, improve, and strengthen 
                      the program or activity, and to refine the 
                      performance measures; and
                          ``(ii) <<NOTE: Public information. Notice.>>  
                      made available to the public upon request, with 
                      public notice of such availability provided.

``SEC. 4206. <<NOTE: 20 USC 7176.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
            ``(1) $1,250,000,000 for fiscal year 2002;
            ``(2) $1,500,000,000 for fiscal year 2003;
            ``(3) $1,750,000,000 for fiscal year 2004;
            ``(4) $2,000,000,000 for fiscal year 2005;
            ``(5) $2,250,000,000 for fiscal year 2006; and
            ``(6) $2,500,000,000 for fiscal year 2007.

  ``PART C--ENVIRONMENTAL <<NOTE: Pro-Children Act of 2001.>>  TOBACCO 
SMOKE

``SEC. 4301. <<NOTE: 20 USC 7181.>>  SHORT TITLE.

    ``This part may be cited as the `Pro-Children Act of 2001'.

``SEC. 4302. <<NOTE: 20 USC 7182.>>  DEFINITIONS.

    ``As used in this part:
            ``(1) Children.--The term `children' means individuals who 
        have not attained the age of 18.
            ``(2) Children's services.--The term `children's services' 
        means the provision on a routine or regular basis of health, day 
        care, education, or library services--
                    ``(A) that are funded, after the date of enactment 
                of the No Child Left Behind Act of 2001, directly by the 
                Federal Government or through State or local 
                governments, by Federal grant, loan, loan guarantee, or 
                contract programs--
                          ``(i) administered by either the Secretary of 
                      Health and Human Services or the Secretary of 
                      Education (other than services provided and funded 
                      solely under titles XVIII and XIX of the Social 
                      Security Act); or
                          ``(ii) administered by the Secretary of 
                      Agriculture in the case of a clinic (as defined in 
                      part 246.2 of title 7, Code of Federal Regulations 
                      (or any corresponding similar regulation or 
                      ruling)) under section 17(b)(6) of the Child 
                      Nutrition Act of 1966; or
                    ``(B) that are provided in indoor facilities that 
                are constructed, operated, or maintained with such 
                Federal funds, as determined by the appropriate head of 
                a Federal agency in any enforcement action carried out 
                under this part,
        except that nothing in clause (ii) of subparagraph (A) is 
        intended to include facilities (other than clinics) where 
        coupons are redeemed under the Child Nutrition Act of 1966.
            ``(3) Indoor facility.--The term `indoor facility' means a 
        building that is enclosed.
            ``(4) Person.--The term `person' means any State or local 
        subdivision of a State, agency of such State or subdivision, 
        corporation, or partnership that owns or operates or otherwise 
        controls and provides children's services or any individual who 
        owns or operates or otherwise controls and provides such 
        services.

[[Page 115 STAT. 1774]]

            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.

``SEC. 4303. <<NOTE: 20 USC 7183.>>  NONSMOKING POLICY FOR CHILDREN'S 
            SERVICES.

    ``(a) Prohibition.--After the date of enactment of the No Child Left 
Behind Act of 2001, no person shall permit smoking within any indoor 
facility owned or leased or contracted for, and utilized, by such person 
for provision of routine or regular kindergarten, elementary, or 
secondary education or library services to children.
    ``(b) Additional Prohibition.--
            ``(1) In general.--After the date of enactment of the No 
        Child Left Behind Act of 2001, no person shall permit smoking 
        within any indoor facility (or portion of such a facility) owned 
        or leased or contracted for, and utilized by, such person for 
        the provision of regular or routine health care or day care or 
        early childhood development (Head Start) services.
            ``(2) Exception.--Paragraph (1) shall not apply to--
                    ``(A) any portion of such facility that is used for 
                inpatient hospital treatment of individuals dependent 
                on, or addicted to, drugs or alcohol; and
                    ``(B) any private residence.

    ``(c) Federal Agencies.--
            ``(1) Kindergarten, elementary, or secondary education or 
        library services.--After the date of enactment of the No Child 
        Left Behind Act of 2001, no Federal agency shall permit smoking 
        within any indoor facility in the United States operated by such 
        agency, directly or by contract, to provide routine or regular 
        kindergarten, elementary, or secondary education or library 
        services to children.
            ``(2) Health or day care or early childhood development 
        services.--
                    ``(A) In general.--After the date of enactment of 
                the No Child Left Behind Act of 2001, no Federal agency 
                shall permit smoking within any indoor facility (or 
                portion of such facility) operated by such agency, 
                directly or by contract, to provide routine or regular 
                health or day care or early childhood development (Head 
                Start) services to children.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to--
                          ``(i) any portion of such facility that is 
                      used for inpatient hospital treatment of 
                      individuals dependent on, or addicted to, drugs or 
                      alcohol; and
                          ``(ii) any private residence.
            ``(3) Application of provisions.--The provisions of 
        paragraph (2) shall also apply to the provision of such routine 
        or regular kindergarten, elementary or secondary education or 
        library services in the facilities described in paragraph (2) 
        not subject to paragraph (1).

    ``(d) <<NOTE: Federal Register, publication.>>  Notice.--The 
prohibitions in subsections (a) through (c) shall be published in a 
notice in the Federal Register by the Secretary (in consultation with 
the heads of other affected agencies) and by such agency heads in 
funding arrangements involving the provision of children's services 
administered by such heads. Such prohibitions shall be effective 90 days 
after such notice is published, or 270 days after the date of enactment 
of the No Child Left Behind Act of 2001, whichever occurs first.

[[Page 115 STAT. 1775]]

    ``(e) Civil Penalties.--
            ``(1) In general.--Any failure to comply with a prohibition 
        in this section shall be considered to be a violation of this 
        section and any person subject to such prohibition who commits 
        such violation may be liable to the United States for a civil 
        penalty in an amount not to exceed $1,000 for each violation, or 
        may be subject to an administrative compliance order, or both, 
        as determined by the Secretary. Each day a violation continues 
        shall constitute a separate violation. In the case of any civil 
        penalty assessed under this section, the total amount shall not 
        exceed 50 percent of the amount of Federal funds received under 
        any title of this Act by such person for the fiscal year in 
        which the continuing violation occurred. For the purpose of the 
        prohibition in subsection (c), the term `person', as used in 
        this paragraph, shall mean the head of the applicable Federal 
        agency or the contractor of such agency providing the services 
        to children.
            ``(2) Administrative proceeding.--A civil penalty may be 
        assessed in a written notice, or an administrative compliance 
        order may be issued under paragraph (1), by the Secretary only 
        after an opportunity for a hearing in accordance with section 
        554 of title 5, United States Code. <<NOTE: Notice. Deadline.>>  
        Before making such assessment or issuing such order, or both, 
        the Secretary shall give written notice of the assessment or 
        order to such person by certified mail with return receipt and 
        provide information in the notice of an opportunity to request 
        in writing, not later than 30 days after the date of receipt of 
        such notice, such hearing. The notice shall reasonably describe 
        the violation and be accompanied with the procedures for such 
        hearing and a simple form that may be used to request such 
        hearing if such person desires to use such form. If a hearing is 
        requested, the Secretary shall establish by such certified 
        notice the time and place for such hearing, which shall be 
        located, to the greatest extent possible, at a location 
        convenient to such person. The Secretary (or the Secretary's 
        designee) and such person may consult to arrange a suitable date 
        and location where appropriate.
            ``(3) Circumstances affecting penalty or order.--In 
        determining the amount of the civil penalty or the nature of the 
        administrative compliance order, the Secretary shall take into 
        account, as appropriate--
                    ``(A) the nature, circumstances, extent, and gravity 
                of the violation;
                    ``(B) with respect to the violator, any good faith 
                efforts to comply, the importance of achieving early and 
                permanent compliance, the ability to pay or comply, the 
                effect of the penalty or order on the ability to 
                continue operation, any prior history of the same kind 
                of violation, the degree of culpability, and any 
                demonstration of willingness to comply with the 
                prohibitions of this section in a timely manner; and
                    C) such other matters as justice may require.
            ``(4) Modification.--The Secretary may, as appropriate, 
        compromise, modify, or remit, with or without conditions, any 
        civil penalty or administrative compliance order. In the case of 
        a civil penalty, the amount, as finally determined by the 
        Secretary or agreed upon in compromise, may be deducted

[[Page 115 STAT. 1776]]

        from any sums that the United States or the agencies or 
        instrumentalities of the United States owe to the person against 
        whom the penalty is assessed.
            ``(5) Petition for review.--Any person aggrieved by a 
        penalty assessed or an order issued, or both, by the Secretary 
        under this section may file a petition for judicial review of 
        the order with the United States Court of Appeals for the 
        District of Columbia Circuit or for any other circuit in which 
        the person resides or transacts business. <<NOTE: Records.>>  
        Such person shall provide a copy of the petition to the 
        Secretary or the Secretary's designee. The petition shall be 
        filed within 30 days after the Secretary's assessment or order, 
        or both, are final and have been provided to such person by 
        certified mail. The Secretary shall promptly provide to the 
        court a certified copy of the transcript of any hearing held 
        under this section and a copy of the notice or order.
            ``(6) Failure to comply.--If a person fails to pay an 
        assessment of a civil penalty or comply with an order, after the 
        assessment or order, or both, are final under this section, or 
        after a court has entered a final judgment under paragraph (5) 
        in favor of the Secretary, the Attorney General, at the request 
        of the Secretary, shall recover the amount of the civil penalty 
        (plus interest at prevailing rates from the day the assessment 
        or order, or both, are final) or enforce the order in an action 
        brought in the appropriate district court of the United States. 
        In such action, the validity and appropriateness of the penalty 
        or order or the amount of the penalty shall not be subject to 
        review.

``SEC. 4304. <<NOTE: 20 USC 7184.>>  PREEMPTION.

    ``Nothing in this part is intended to preempt any provision of law 
of a State or political subdivision of a State that is more restrictive 
than a provision of this part.''.

   TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

SEC. 501. INNOVATIVE PROGRAMS AND PARENTAL CHOICE PROVISIONS.

    Title V (20 U.S.C. 7201 et seq.) is amended to read as follows:

  ``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                      ``PART A--INNOVATIVE PROGRAMS

``SEC. 5101. <<NOTE: 20 USC 7201.>>  PURPOSES, STATE AND LOCAL 
            RESPONSIBILITY.

    ``(a) Purposes.--The purposes of this part are the following:
            ``(1) To support local education reform efforts that are 
        consistent with and support statewide education reform efforts.

[[Page 115 STAT. 1777]]

            ``(2) To provide funding to enable State educational 
        agencies and local educational agencies to implement promising 
        educational reform programs and school improvement programs 
        based on scientifically based research.
            ``(3) To provide a continuing source of innovation and 
        educational improvement, including support programs to provide 
        library services and instructional and media materials.
            ``(4) To meet the educational needs of all students, 
        including at-risk youth.
            ``(5) To develop and implement education programs to improve 
        school, student, and teacher performance, including professional 
        development activities and class size reduction programs.

    ``(b) State and Local Responsibility.--The State educational agency 
shall bear the basic responsibility for the administration of funds made 
available under this part, but it is the intent of Congress that the 
responsibility be carried out with a minimum of paperwork and that the 
responsibility for the design and implementation of programs assisted 
under this part be mainly that of local educational agencies, school 
superintendents and principals, and classroom teachers and supporting 
personnel, because local educational agencies and individuals have the 
most direct contact with students and are most likely to be able to 
design programs to meet the educational needs of students in their own 
school districts.

                  ``Subpart 1--State and Local Programs

``SEC. 5111. <<NOTE: 20 USC 7211.>>  ALLOTMENT TO STATES.

    ``(a) In General.--From the sums appropriated to carry out this part 
for each fiscal year and not reserved under subsection (b), the 
Secretary shall allot, and make available in accordance with this part, 
to each State educational agency an amount that bears the same ratio to 
such sums as the school-age population of the State bears to the school-
age population of all States, except that no State shall receive less 
than an amount equal to one-half of 1 percent of such sums.
    ``(b) Reservation.--From the sums appropriated to carry out this 
part for each fiscal year, the Secretary shall reserve not more than 1 
percent for payments to the outlying areas, to be allotted in accordance 
with their respective needs for assistance under this part.

``SEC. 5112. <<NOTE: 20 USC 7211a.>>  ALLOCATION TO LOCAL EDUCATIONAL 
            AGENCIES.

    ``(a) Distribution Rule.--
            ``(1) Allocation of base amounts.--From the amount made 
        available to a State educational agency under this part for a 
        fiscal year, the State educational agency shall distribute, to 
        local educational agencies within the State, an amount that is 
        not less than 85 percent of the amount made available to the 
        State educational agency under this part for fiscal year 2002, 
        according to the relative enrollments in public and in private 
        nonprofit schools within the jurisdictions of such local 
        educational agencies, adjusted, in accordance with criteria

[[Page 115 STAT. 1778]]

        approved by the Secretary, to provide higher per-pupil 
        allocations to local educational agencies that have the greatest 
        numbers or percentages of children whose education imposes a 
        higher-than-average cost per child, such as--
                    ``(A) children living in areas with high 
                concentrations of economically disadvantaged families;
                    ``(B) children from economically disadvantaged 
                families; and
                    ``(C) children living in sparsely populated areas.
            ``(2) Allocation of increased amounts.--From the amount made 
        available to a State educational agency under this part for a 
        fiscal year that exceeds the amount made available to the agency 
        under this part for fiscal year 2002, the State educational 
        agency shall distribute 100 percent (or, in the case of a State 
        educational agency receiving a minimum allotment under section 
        5111(a), not less than 50 percent, notwithstanding subsection 
        (b)) to local educational agencies within the State, on the same 
        basis as the State educational agency distributes amounts under 
        paragraph (1).

    ``(b) Limitations and Requirements.--Not more than 15 percent of 
funds made available under section 5111 for State programs under this 
part for any fiscal year may be used for State administration under 
section 5121.
    ``(c) Calculation of Enrollments.--
            ``(1) In general.--The calculation of relative enrollments 
        under subsection (a)(1) shall be on the basis of the total of--
                    ``(A) the number of children enrolled in public 
                schools; and
                    ``(B) the number of children enrolled in private 
                nonprofit schools that participated in programs assisted 
                under this part, for the fiscal year preceding the 
                fiscal year for which the determination is made.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall diminish the responsibility of each local educational 
        agency to contact, on an annual basis, appropriate officials 
        from private nonprofit schools within the areas served by such 
        agencies in order to determine whether such schools desire that 
        their children participate in programs assisted under this part.
            ``(3) Adjustments.--
                    ``(A) State criteria.--Relative enrollments 
                calculated under subsection (a)(1) shall be adjusted, in 
                accordance with criteria approved by the Secretary under 
                subparagraph (B), to provide higher per-pupil 
                allocations only to local educational agencies that 
                serve the greatest numbers or percentages of--
                          ``(i) children living in areas with high 
                      concentrations of economically disadvantaged 
                      families;
                          ``(ii) children from economically 
                      disadvantaged families; or
                          ``(iii) children living in sparsely populated 
                      areas.
                    ``(B) Review of criteria.--The Secretary shall 
                review criteria submitted by a State educational agency 
                for adjusting allocations under paragraph (1) and shall 
                approve such criteria only if the Secretary determines 
                that such criteria are reasonably calculated to produce 
                an adjusted allocation that reflects the relative needs 
                of the State's

[[Page 115 STAT. 1779]]

                local educational agencies based on the factors set 
                forth in subparagraph (A).

    ``(d) Payment of Allocations.--
            ``(1) Distribution.--From the funds paid to a State 
        educational agency under this subpart for a fiscal year, the 
        State educational agency shall distribute to each eligible local 
        educational agency that has submitted an application as required 
        by section 5133 the amount of such local educational agency's 
        allocation, as determined under subsection (a).
            ``(2) Additional funds.--
                    ``(A) Use.--Additional funds resulting from higher 
                per-pupil allocations provided to a local educational 
                agency on the basis of adjusted enrollments of children 
                described in subsection (a)(1) may, in the discretion of 
                the local educational agency, be allocated for 
                expenditures to provide services for children enrolled 
                in public schools and private nonprofit schools in 
                direct proportion to the number of children described in 
                subsection (a)(1) and enrolled in such schools within 
                the area served by the local educational agency.
                    ``(B) Allocation.--In any fiscal year, any local 
                educational agency that elects to allocate such 
                additional funds in the manner described in subparagraph 
                (A) shall allocate all additional funds to schools 
                within the area served by the local educational agency 
                in such manner.
                    ``(C) Rule of construction.--Subparagraphs (A) and 
                (B) may not be construed to require any school to limit 
                the use of the additional funds described in 
                subparagraph (A) to the provision of services to 
                specific students or categories of students.

                       ``Subpart 2--State Programs

``SEC. 5121. <<NOTE: 20 USC 7213.>>  STATE USES OF FUNDS.

    ``A State educational agency may use funds made available for State 
use under section 5112(b) only for one or more of the following:
            ``(1) State administration of programs under this part, 
        including--
                    ``(A) allocating funds to local educational 
                agencies;
                    ``(B) planning, supervising, and processing State 
                educational agency funds; and
                    ``(C) monitoring and evaluating programs under this 
                part.
            ``(2) Support for the planning, design, and initial 
        implementation of charter schools as described in part B.
            ``(3) Statewide education reform, school improvement 
        programs and technical assistance and direct grants to local 
        educational agencies, which assist such agencies under section 
        5131.
            ``(4) Support for the design and implementation of high-
        quality yearly student assessments.
            ``(5) Support for implementation of challenging State and 
        local academic achievement standards.
            ``(6) Support for arrangements that provide for independent 
        analysis to measure and report on school district achievement.

[[Page 115 STAT. 1780]]

            ``(7) Support for the program described in section 321 of 
        the Departments of Labor, Health and Human Services, and 
        Education, and Related Agencies Appropriations Act, 2001 (as 
        enacted into law by section 1(a)(1) of Public Law 106-554).
            ``(8) Support for programs to assist in the implementation 
        of the policy described in section 9507 which may include 
        payment of reasonable transportation costs and tuition costs for 
        such students.

``SEC. 5122. <<NOTE: 20 USC 7213a.>>  STATE APPLICATIONS.

    ``(a) Application Requirements.--Any State that desires to receive 
assistance under this part shall submit to the Secretary an application 
that includes each of the following:
            ``(1) Designation of the State educational agency as the 
        State agency responsible for administration and supervision of 
        programs assisted under this part.
            ``(2) Provision for an annual statewide summary of how 
        assistance under this part is contributing toward improving 
        student academic achievement or improving the quality of 
        education for students.
            ``(3) Information setting forth the allocation of funds 
        required to implement section 5142.
            ``(4) A provision that the State educational agency will 
        keep such records, and provide such information to the 
        Secretary, as may be required for fiscal audit and program 
        evaluation (consistent with the responsibilities of the 
        Secretary under this section).
            ``(5) An assurance that, apart from providing technical and 
        advisory assistance and monitoring compliance with this part, 
        the State educational agency has not exercised, and will not 
        exercise, any influence in the decisionmaking processes of local 
        educational agencies as to the expenditure made pursuant to an 
        application submitted under section 5133.
            ``(6) An assurance that there is compliance with the 
        specific requirements of this part.
            ``(7) Provision for timely public notice and public 
        dissemination of the information provided under paragraph (3).

    ``(b) Statewide Summary.--The statewide summary referred to in 
subsection (a)(2) shall be submitted annually to the Secretary and shall 
be derived from the evaluation information submitted by local 
educational agencies to the State educational agency under section 
5133(b)(8). The State educational agency shall determine the format and 
content of such summary and may include in the summary statistical 
measures, such as the number of students served by each type of 
innovative assistance program described in section 5131 and the number 
of teachers trained.
    ``(c) Period of Application.--An application submitted by the State 
educational agency under subsection (a) shall be for a period not to 
exceed 3 years. The agency may amend the application annually, as may be 
necessary to reflect changes, without filing a new application.
    ``(d) Audit Rule.--A local educational agency that receives less 
than an average of $10,000 under this part for any 3 consecutive fiscal 
years shall not be audited more frequently than once every 5 years.

[[Page 115 STAT. 1781]]

            ``Subpart 3--Local Innovative Education Programs

``SEC. 5131. <<NOTE: 20 USC 7215.>>  LOCAL USES OF FUNDS.

    ``(a) Innovative Assistance Programs.--Funds made available to local 
educational agencies under section 5112 shall be used for innovative 
assistance programs, which may include any of the following:
            ``(1) Programs to recruit, train, and hire highly qualified 
        teachers to reduce class size, especially in the early grades, 
        and professional development activities carried out in 
        accordance with title II, that give teachers, principals, and 
        administrators the knowledge and skills to provide students with 
        the opportunity to meet challenging State or local academic 
        content standards and student academic achievement standards.
            ``(2) Technology activities related to the implementation of 
        school-based reform efforts, including professional development 
        to assist teachers and other school personnel (including school 
        library media personnel) regarding how to use technology 
        effectively in the classrooms and the school library media 
        centers involved.
            ``(3) Programs for the development or acquisition and use of 
        instructional and educational materials, including library 
        services and materials (including media materials), academic 
        assessments, reference materials, computer software and hardware 
        for instructional use, and other curricular materials that are 
        tied to high academic standards, that will be used to improve 
        student academic achievement, and that are part of an overall 
        education reform program.
            ``(4) Promising education reform projects, including magnet 
        schools.
            ``(5) Programs to improve the academic achievement of 
        educationally disadvantaged elementary school and secondary 
        school students, including activities to prevent students from 
        dropping out of school.
            ``(6) Programs to improve the literacy skills of adults, 
        especially the parents of children served by the local 
        educational agency, including adult education and family 
        literacy programs.
            ``(7) Programs to provide for the educational needs of 
        gifted and talented children.
            ``(8) The planning, design, and initial implementation of 
        charter schools as described in part B.
            ``(9) School improvement programs or activities under 
        sections 1116 and 1117.
            ``(10) Community service programs that use qualified school 
        personnel to train and mobilize young people to measurably 
        strengthen their communities through nonviolence, 
        responsibility, compassion, respect, and moral courage.
            ``(11) Activities to promote consumer, economic, and 
        personal finance education, such as disseminating information on 
        and encouraging use of the best practices for teaching the basic 
        principles of economics and promoting the concept of achieving 
        financial literacy through the teaching of personal financial 
        management skills (including the basic principles involved with 
        earning, spending, saving, and investing).

[[Page 115 STAT. 1782]]

            ``(12) Activities to promote, implement, or expand public 
        school choice.
            ``(13) Programs to hire and support school nurses.
            ``(14) Expansion and improvement of school-based mental 
        health services, including early identification of drug use and 
        violence, assessment, and direct individual or group counseling 
        services provided to students, parents, and school personnel by 
        qualified school-based mental health services personnel.
            ``(15) Alternative educational programs for those students 
        who have been expelled or suspended from their regular 
        educational setting, including programs to assist students to 
        reenter the regular educational setting upon return from 
        treatment or alternative educational programs.
            ``(16) Programs to establish or enhance prekindergarten 
        programs for children.
            ``(17) Academic intervention programs that are operated 
        jointly with community-based organizations and that support 
        academic enrichment, and counseling programs conducted during 
        the school day (including during extended school day or extended 
        school year programs), for students most at risk of not meeting 
        challenging State academic achievement standards or not 
        completing secondary school.
            ``(18) Programs for cardiopulmonary resuscitation (CPR) 
        training in schools.
            ``(19) Programs to establish smaller learning communities.
            ``(20) Activities that encourage and expand improvements 
        throughout the area served by the local educational agency that 
        are designed to advance student academic achievement.
            ``(21) Initiatives to generate, maintain, and strengthen 
        parental and community involvement.
            ``(22) Programs and activities that expand learning 
        opportunities through best-practice models designed to improve 
        classroom learning and teaching.
            ``(23) Programs to provide same-gender schools and 
        classrooms (consistent with applicable law).
            ``(24) Service learning activities.
            ``(25) School safety programs, including programs to 
        implement the policy described in section 9507 and which may 
        include payment of reasonable transportation costs and tuition 
        costs for such students.
            ``(26) Programs that employ research-based cognitive and 
        perceptual development approaches and rely on a diagnostic-
        prescriptive model to improve students' learning of academic 
        content at the preschool, elementary, and secondary levels.
            ``(27) Supplemental educational services, as defined in 
        section 1116(e).

    ``(b) Requirements.--The innovative assistance programs described in 
subsection (a) shall be--
            ``(1) tied to promoting challenging academic achievement 
        standards;
            ``(2) used to improve student academic achievement; and
            ``(3) part of an overall education reform strategy.

    ``(c) <<NOTE: Deadline.>>  Guidelines.--Not later than 120 days 
after the date of enactment of the No Child Left Behind Act of 2001, the 
Secretary shall issue guidelines for local educational agencies seeking 
funding for programs described in subsection (a)(23).

[[Page 115 STAT. 1783]]

``SEC. 5132. <<NOTE: 20 USC 7215a.>>  ADMINISTRATIVE AUTHORITY.

    ``In order to conduct the programs authorized by this part, each 
State educational agency or local educational agency may use funds made 
available under this part to make grants to, and to enter into contracts 
with, local educational agencies, institutions of higher education, 
libraries, museums, and other public and private nonprofit agencies, 
organizations, and institutions.

``SEC. 5133. <<NOTE: 20 USC 7215b.>>  LOCAL APPLICATIONS.

    ``(a) Submission of Application.--A local educational agency may 
receive an allocation of funds under this part for any year for which 
the agency submits an application under this section that the State 
educational agency certifies under subsection (b).
    ``(b) Certification and Contents of Application.--The State 
educational agency shall certify each application submitted under 
subsection (a) that includes each of the following:
            ``(1) A description of locally identified needs relative to 
        the purposes of this part and to the innovative assistance 
        programs described in section 5131.
            ``(2) A statement that sets forth the planned allocation of 
        funds, based on the needs identified in subparagraph (A), among 
        innovative assistance programs described in section 5131, a 
        description of the programs that the local educational agency 
        intends to support, and a description of the reasons for the 
        selection of such programs.
            ``(3) Information setting forth the allocation of such funds 
        required to implement section 5142.
            ``(4) A description of how assistance under this part will 
        contribute to improving student academic achievement or 
        improving the quality of education for students.
            ``(5) An assurance that the local educational agency will 
        comply with this part, including the provisions of section 5142 
        concerning the participation of children enrolled in private 
        nonprofit schools.
            ``(6) An assurance that the local educational agency will 
        keep such records, and provide such information to the State 
        educational agency, as may be reasonably required for fiscal 
        audit and program evaluation (consistent with the 
        responsibilities of the State educational agency under this 
        part).
            ``(7) Provision, in the allocation of funds for the 
        assistance authorized by this part and in the planning, design, 
        and implementation of such innovative assistance programs, for 
        systematic consultation with parents of children attending 
        elementary schools and secondary schools in the area served by 
        the local educational agency, with teachers and administrative 
        personnel in such schools, and with such other groups involved 
        in the implementation of this part (such as librarians, school 
        counselors, and other pupil services personnel) as may be 
        considered appropriate by the local educational agency.
            ``(8) An assurance that--
                    ``(A) programs carried out under this part will be 
                evaluated annually;
                    ``(B) the evaluation will be used to make decisions 
                about appropriate changes in programs for the subsequent 
                year;
                    ``(C) the evaluation will describe how assistance 
                under this part affected student academic achievement 
                and will

[[Page 115 STAT. 1784]]

                include, at a minimum, information and data on the use 
                of funds, the types of services furnished, and the 
                students served under this part; and
                    ``(D) the evaluation will be submitted to the State 
                educational agency at the time and in the manner 
                requested by the State educational agency.
            ``(9) If the local educational agency seeks funds under 
        section 5131(a)(23), a description of how the agency will comply 
        with the guidelines issued by the Secretary regarding same-
        gender schools and classrooms under section 5131(c).

    ``(c) Period of Application.--An application submitted by a local 
educational agency under subsection (a) may seek allocations under this 
part for a period not to exceed 3 fiscal years. The agency may amend the 
application annually, as may be necessary to reflect changes, without 
the filing of a new application.
    ``(d) Local Educational Agency Discretion.--
            ``(1) In general.--Subject to the limitations and 
        requirements of this part, a local educational agency shall have 
        complete discretion in determining how funds made available to 
        carry out this subpart will be divided among programs described 
        in section 5131.
            ``(2) Limitation.--In exercising the discretion described in 
        paragraph (1), a local educational agency shall ensure that 
        expenditures under this subpart carry out the purposes of this 
        part and are used to meet the educational needs within the 
        schools served by the local educational agency.

                     ``Subpart 4--General Provisions

``SEC. 5141. <<NOTE: 20 USC 7217.>>  MAINTENANCE OF EFFORT.

    ``(a) In general.--Except as provided in subsection (b), a State 
educational agency is entitled to receive its full allotment of funds 
under this part for any fiscal year only if the Secretary determines 
that either the combined fiscal effort per student or the aggregate 
expenditures within the State, with respect to the provision of free 
public education for the fiscal year preceding the fiscal year for which 
the determination is made, was not less than 90 percent of such combined 
fiscal effort or aggregate expenditures for the second fiscal year 
preceding the fiscal year for which the determination is made.
    ``(b) Reduction of Funds.--The Secretary shall reduce the amount of 
the allotment of funds under this part in any fiscal year in the exact 
proportion by which the State educational agency fails to meet the 
requirements of subsection (a) by falling below 90 percent of the fiscal 
effort per student or aggregate expenditures (using the measure most 
favorable to the State educational agency), and no such lesser amount 
shall be used for computing the effort or expenditures required under 
paragraph (1) for subsequent years.
    ``(c) Waiver.--The Secretary may waive, for 1 fiscal year only, the 
requirements of this section, if the Secretary determines that such a 
waiver would be equitable due to exceptional or uncontrollable 
circumstances, such as a natural disaster or a precipitous and 
unforeseen decline in the financial resources of the State educational 
agency.

[[Page 115 STAT. 1785]]

``SEC. 5142. <<NOTE: 20 USC 7217a.>>  PARTICIPATION OF CHILDREN ENROLLED 
            IN PRIVATE SCHOOLS.

    ``(a) Participation on Equitable Basis.--
            ``(1) In general.--To the extent consistent with the number 
        of children in the school district of a local educational agency 
        that is eligible to receive funds under this part, or that 
        serves the area in which a program assisted under this part is 
        located, who are enrolled in private nonprofit elementary 
        schools and secondary schools, or, with respect to instructional 
        or personnel training programs funded by the State educational 
        agency from funds made available for State educational agency 
        use, the local educational agency, after consultation with 
        appropriate private school officials--
                    ``(A) shall provide, as may be necessary, for the 
                benefit of such children in such schools--
                          ``(i) secular, neutral, and nonideological 
                      services, materials, and equipment, including the 
                      participation of the teachers of such children 
                      (and other educational personnel serving such 
                      children) in training programs; and
                          ``(ii) the repair, minor remodeling, or 
                      construction of public facilities (consistent with 
                      subsection (c)); or
                    ``(B) if such services, materials, and equipment are 
                not feasible or necessary in one or more such private 
                schools, as determined by the local educational agency 
                after consultation with the appropriate private school 
                officials, shall provide such other arrangements as will 
                assure equitable participation of such children in the 
                purposes and benefits of this part.
            ``(2) Other provisions for services.--If no program is 
        carried out under paragraph (1) in the school district of a 
        local educational agency, the State educational agency shall 
        make arrangements, such as through contracts with nonprofit 
        agencies or organizations, under which children in private 
        schools in the district are provided with services and materials 
        to the same extent as would have occurred if the local 
        educational agency had received funds under this part.
            ``(3) Application of requirements.--The requirements of this 
        section relating to the participation of children, teachers, and 
        other personnel serving such children shall apply to programs 
        carried out under this part by a State educational agency or 
        local educational agency, whether directly or through grants to, 
        or contracts with, other public or private agencies, 
        institutions, or organizations.

    ``(b) Equal Expenditures.--
            ``(1) In general.--Expenditures for programs under 
        subsection (a) shall be equal (consistent with the number of 
        children to be served) to expenditures for programs under this 
        part for children enrolled in the public schools of the local 
        educational agency.
            ``(2) Concentrated programs.--Taking into account the needs 
        of the individual children and other factors that relate to the 
        expenditures referred to in paragraph (1), and when funds 
        available to a local educational agency under this part are used 
        to concentrate programs on a particular group, attendance area, 
        or grade or age level, children enrolled in private schools who 
        are included within the group, attendance area,

[[Page 115 STAT. 1786]]

        or grade or age level selected for such concentration shall, 
        after consultation with the appropriate private school 
        officials, be assured equitable participation in the purposes 
        and benefits of such programs.

    ``(c) Administrative Requirements.--
            ``(1) Funds and property.--The control of funds provided 
        under this part, and title to materials, equipment, and property 
        repaired, remodeled, or constructed with such funds, shall be in 
        a public agency for the uses and purposes provided in this part, 
        and a public agency shall administer such funds and property.
            ``(2) Provision of services.--Services provided under this 
        part shall be provided by employees of a public agency or 
        through contract by such a public agency with a person, 
        association, agency, or corporation that, in the provision of 
        such services, is independent of the private school and of any 
        religious organizations, and such employment or contract shall 
        be under the control and supervision of such a public agency. 
        The funds provided under this part shall not be commingled with 
        State or local funds.

    ``(d) Waiver.--
            ``(1) State prohibition.--If a State educational agency or 
        local educational agency is prohibited, by reason of any 
        provision of law, from providing for the participation in 
        programs of children enrolled in private elementary schools and 
        secondary schools as required by subsections (a) through (c), 
        the Secretary shall waive such requirements for the agency 
        involved and shall arrange for the provision of services to such 
        children through arrangements that shall be subject to the 
        requirements of this section.
            ``(2) Failure to comply.--If the Secretary determines that a 
        State educational agency or a local educational agency has 
        substantially failed, or is unwilling, to provide for the 
        participation on an equitable basis of children enrolled in 
        private elementary schools and secondary schools as required by 
        subsections (a) through (c), the Secretary may waive such 
        requirements and shall arrange for the provision of services to 
        such children through arrangements that shall be subject to the 
        requirements of this section.

    ``(e) Withholding of Allotment or Allocation.--Pending final 
resolution of any investigation or complaint that could result in a 
waiver under subsection (d)(1) or (d)(2), the Secretary may withhold 
from the allotment or allocation of the affected State educational 
agency or local educational agency the amount estimated by the Secretary 
to be necessary to pay the cost of services to be provided by the 
Secretary under such subsection.
    ``(f) Duration of Determination.--Any determination by the Secretary 
under this section shall continue in effect until the Secretary 
determines that there will no longer be any failure or inability on the 
part of the State educational agency or local educational agency to meet 
the requirements of subsections (a) through (c).
    ``(g) Payment From State Allotment.--When the Secretary arranges for 
services under subsection (d), the Secretary shall, after consultation 
with the appropriate public school and private

[[Page 115 STAT. 1787]]

school officials, pay the cost of such services, including the 
administrative costs of arranging for those services, from the 
appropriate allotment of the State educational agency under this part.
    ``(h) Review of Determination.--
            ``(1) Written objections.--The Secretary shall not take any 
        final action under this section until the State educational 
        agency and the local educational agency affected by such action 
        have had an opportunity, for not less than 45 days after 
        receiving written notice thereof, to submit written objections 
        and to appear before the Secretary or the Secretary's designee 
        to show cause why that action should not be taken.
            ``(2) <<NOTE: Deadline.>>  Court action.--If a State 
        educational agency or local educational agency is dissatisfied 
        with the Secretary's final action after a proceeding under 
        paragraph (1), such agency may, not later than 60 days after 
        notice of such action, file with the United States court of 
        appeals for the circuit in which such State is located a 
        petition for review of that action. A copy of the petition shall 
        be transmitted by the clerk of the court to the 
        Secretary. <<NOTE: Records.>>  The Secretary thereupon shall 
        file in the court the record of the proceedings on which the 
        Secretary based the action, as provided in section 2112 of title 
        28, United States Code.
            ``(3) Remand to secretary.--The findings of fact by the 
        Secretary with respect to a proceeding under paragraph (1), if 
        supported by substantial evidence, shall be conclusive. The 
        court, for good cause shown, may remand the case to the 
        Secretary to take further evidence and the Secretary may make 
        new or modified findings of fact and may modify the Secretary's 
        previous action, and shall file in the court the record of the 
        further proceedings. Such new or modified findings of fact shall 
        likewise be conclusive, if supported by substantial evidence.
            ``(4) Court review.--Upon the filing of a petition under 
        paragraph (2), the court shall have jurisdiction to affirm the 
        action of the Secretary or to set such action aside, in whole or 
        in part. The judgment of the court shall be subject to review by 
        the Supreme Court upon certiorari or certification, as provided 
        in section 1254 of title 28, United States Code.

    ``(i) <<NOTE: Applicability.>>  Prior Determination.--Any bypass 
determination by the Secretary under title VI (as such title was in 
effect on the day preceding the date of enactment of the No Child Left 
Behind Act of 2001) shall, to the extent consistent with the purposes of 
this part, apply to programs under this part.

``SEC. 5143. <<NOTE: 20 USC 7217b.>>  FEDERAL ADMINISTRATION.

    ``(a) Technical Assistance.--The Secretary, upon request, shall 
provide technical assistance to State educational agencies and local 
educational agencies under this part.
    ``(b) Rulemaking.--The Secretary shall issue regulations under this 
part only to the extent that such regulations are necessary to ensure 
that there is compliance with the specific requirements and assurances 
required by this part.
    ``(c) Availability of Appropriations.--Notwithstanding any other 
provision of law, unless expressly in limitation of this subsection, 
funds appropriated in any fiscal year to carry out programs under this 
part shall become available for obligation on July 1 of such fiscal year 
and shall remain available for obligation until the end of the 
subsequent fiscal year.

[[Page 115 STAT. 1788]]

``SEC. 5144. <<NOTE: 20 USC 7217c.>>  SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available under this part shall be used to supplement, 
and not supplant, any other Federal, State, or local education funds.

``SEC. 5145. <<NOTE: 20 USC 7217d.>>  DEFINITIONS.

    ``In this part:
            ``(1) Local educational agency.--The term `local educational 
        agency' means a local educational agency or a consortium of such 
        agencies.
            ``(2) Public school.--The term `public school' means a 
        public elementary school or a public secondary school.
            ``(3) School-age population.--The term `school-age 
        population' means the population aged 5 through 17.
            ``(4) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 5146. <<NOTE: 20 USC 7217e.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part--
            ``(1) $450,000,000 for fiscal year 2002;
            ``(2) $475,000,000 for fiscal year 2003;
            ``(3) $500,000,000 for fiscal year 2004;
            ``(4) $525,000,000 for fiscal year 2005;
            ``(5) $550,000,000 for fiscal year 2006; and
            ``(6) $600,000,000 for fiscal year 2007.

                    ``PART B--PUBLIC CHARTER SCHOOLS

                  ``Subpart 1--Charter School Programs

``SEC. 5201. <<NOTE: 20 USC 7221.>>  PURPOSE.

    ``It is the purpose of this subpart to increase national 
understanding of the charter schools model by--
            ``(1) providing financial assistance for the planning, 
        program design, and initial implementation of charter schools;
            ``(2) evaluating the effects of such schools, including the 
        effects on students, student academic achievement, staff, and 
        parents;
            ``(3) expanding the number of high-quality charter schools 
        available to students across the Nation; and
            ``(4) encouraging the States to provide support to charter 
        schools for facilities financing in an amount more nearly 
        commensurate to the amount the States have typically provided 
        for traditional public schools.

``SEC. 5202. <<NOTE: 20 USC 7221a.>>  PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to section 
5203 to enable such agencies to conduct a charter school grant program 
in accordance with this subpart.
    ``(b) Special Rule.--If a State educational agency elects not to 
participate in the program authorized by this subpart or does not have 
an application approved under section 5203, the Secretary may award a 
grant to an eligible applicant that serves such State and has an 
application approved pursuant to section 5203(c).
    ``(c) Program Periods.--

[[Page 115 STAT. 1789]]

            ``(1) Grants to states.--Grants awarded to State educational 
        agencies under this subpart shall be for a period of not more 
        than 3 years.
            ``(2) Grants to eligible applicants.--Grants awarded by the 
        Secretary to eligible applicants or subgrants awarded by State 
        educational agencies to eligible applicants under this subpart 
        shall be for a period of not more than 3 years, of which the 
        eligible applicant may use--
                    ``(A) not more than 18 months for planning and 
                program design;
                    ``(B) not more than 2 years for the initial 
                implementation of a charter school; and
                    ``(C) not more than 2 years to carry out 
                dissemination activities described in section 
                5204(f)(6)(B).

    ``(d) Limitation.--A charter school may not receive--
            ``(1) more than one grant for activities described in 
        subparagraphs (A) and (B) of subsection (c)(2); or
            ``(2) more than one grant for activities under subparagraph 
        (C) of subsection (c)(2).

    ``(e) Priority Treatment.--
            ``(1) In general.--In awarding grants under this subpart for 
        fiscal year 2002 or any succeeding fiscal year from any funds 
        appropriated under section 5211 (other than funds reserved to 
        carry out section 5205(b)), the Secretary shall give priority to 
        States to the extent that the States meet the criteria described 
        in paragraph (2) and one or more of the criteria described in 
        subparagraph (A), (B), or (C) of paragraph (3).
            ``(2) Review and evaluation priority criteria.--The criteria 
        referred to in paragraph (1) are that the State provides for 
        periodic review and evaluation by the authorized public 
        chartering agency of each charter school, at least once every 5 
        years unless required more frequently by State law, to determine 
        whether the charter school is meeting the terms of the school's 
        charter, and is meeting or exceeding the student academic 
        achievement requirements and goals for charter schools as set 
        forth under State law or the school's charter.
            ``(3) Priority criteria.--The criteria referred to in 
        paragraph (1) are the following:
                    ``(A) The State has demonstrated progress, in 
                increasing the number of high-quality charter schools 
                that are held accountable in the terms of the schools' 
                charters for meeting clear and measurable objectives for 
                the educational progress of the students attending the 
                schools, in the period prior to the period for which a 
                State educational agency or eligible applicant applies 
                for a grant under this subpart.
                    ``(B) The State--
                          ``(i) provides for one authorized public 
                      chartering agency that is not a local educational 
                      agency, such as a State chartering board, for each 
                      individual or entity seeking to operate a charter 
                      school pursuant to such State law; or
                          ``(ii) in the case of a State in which local 
                      educational agencies are the only authorized 
                      public chartering agencies, allows for an appeals 
                      process for the denial of an application for a 
                      charter school.

[[Page 115 STAT. 1790]]

                    ``(C) The State ensures that each charter school has 
                a high degree of autonomy over the charter school's 
                budgets and expenditures.

    ``(f) Amount Criteria.--In determining the amount of a grant to be 
awarded under this subpart to a State educational agency, the Secretary 
shall take into consideration the number of charter schools that are 
operating, or are approved to open, in the State.

``SEC. 5203. <<NOTE: 20 USC 7221b.>>  APPLICATIONS.

    ``(a) Applications From State Agencies.--Each State educational 
agency desiring a grant from the Secretary under this subpart shall 
submit to the Secretary an application at such time, in such manner, and 
containing or accompanied by such information as the Secretary may 
require.
    ``(b) Contents of a State Educational Agency Application.--Each 
application submitted pursuant to subsection (a) shall--
            ``(1) describe the objectives of the State educational 
        agency's charter school grant program and a description of how 
        such objectives will be fulfilled, including steps taken by the 
        State educational agency to inform teachers, parents, and 
        communities of the State educational agency's charter school 
        grant program; and
            ``(2) describe how the State educational agency--
                    ``(A) will inform each charter school in the State 
                regarding--
                          ``(i) Federal funds that the charter school is 
                      eligible to receive; and
                          ``(ii) Federal programs in which the charter 
                      school may participate;
                    ``(B) will ensure that each charter school in the 
                State receives the charter school's commensurate share 
                of Federal education funds that are allocated by formula 
                each year, including during the first year of operation 
                of the charter school; and
                    ``(C) will disseminate best or promising practices 
                of charter schools to each local educational agency in 
                the State; and
            ``(3) contain assurances that the State educational agency 
        will require each eligible applicant desiring to receive a 
        subgrant to submit an application to the State educational 
        agency containing--
                    ``(A) a description of the educational program to be 
                implemented by the proposed charter school, including--
                          ``(i) how the program will enable all students 
                      to meet challenging State student academic 
                      achievement standards;
                          ``(ii) the grade levels or ages of children to 
                      be served; and
                          ``(iii) the curriculum and instructional 
                      practices to be used;
                    ``(B) a description of how the charter school will 
                be managed;
                    ``(C) a description of--
                          ``(i) the objectives of the charter school; 
                      and

[[Page 115 STAT. 1791]]

                          ``(ii) the methods by which the charter school 
                      will determine its progress toward achieving those 
                      objectives;
                    ``(D) a description of the administrative 
                relationship between the charter school and the 
                authorized public chartering agency;
                    ``(E) a description of how parents and other members 
                of the community will be involved in the planning, 
                program design, and implementation of the charter 
                school;
                    ``(F) a description of how the authorized public 
                chartering agency will provide for continued operation 
                of the school once the Federal grant has expired, if 
                such agency determines that the school has met the 
                objectives described in subparagraph (C)(i);
                    ``(G) a request and justification for waivers of any 
                Federal statutory or regulatory provisions that the 
                eligible applicant believes are necessary for the 
                successful operation of the charter school, and a 
                description of any State or local rules, generally 
                applicable to public schools, that will be waived for, 
                or otherwise not apply to, the school;
                    ``(H) a description of how the subgrant funds or 
                grant funds, as appropriate, will be used, including a 
                description of how such funds will be used in 
                conjunction with other Federal programs administered by 
                the Secretary;
                    ``(I) a description of how students in the community 
                will be--
                          ``(i) informed about the charter school; and
                          ``(ii) given an equal opportunity to attend 
                      the charter school;
                    ``(J) an assurance that the eligible applicant will 
                annually provide the Secretary and the State educational 
                agency such information as may be required to determine 
                if the charter school is making satisfactory progress 
                toward achieving the objectives described in 
                subparagraph (C)(i);
                    ``(K) an assurance that the eligible applicant will 
                cooperate with the Secretary and the State educational 
                agency in evaluating the program assisted under this 
                subpart;
                    ``(L) a description of how a charter school that is 
                considered a local educational agency under State law, 
                or a local educational agency in which a charter school 
                is located, will comply with sections 613(a)(5) and 
                613(e)(1)(B) of the Individuals with Disabilities 
                Education Act;
                    ``(M) if the eligible applicant desires to use 
                subgrant funds for dissemination activities under 
                section 5202(c)(2)(C), a description of those activities 
                and how those activities will involve charter schools 
                and other public schools, local educational agencies, 
                developers, and potential developers; and
                    ``(N) such other information and assurances as the 
                Secretary and the State educational agency may require.

    ``(c) Eligible Applicant Application.--Each eligible applicant 
desiring a grant pursuant to section 5202(b) shall submit an application 
to the Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require.
    ``(d) Contents of Eligible Applicant Application.--Each application 
submitted pursuant to subsection (c) shall contain--

[[Page 115 STAT. 1792]]

            ``(1) the information and assurances described in 
        subparagraphs (A) through (N) of subsection (b)(3), except that 
        for purposes of this subsection subparagraphs (J), (K), and (N) 
        of such subsection shall be applied by striking `and the State 
        educational agency' each place such term appears;
            ``(2) assurances that the State educational agency--
                    ``(A) will grant, or will obtain, waivers of State 
                statutory or regulatory requirements; and
                    ``(B) will assist each subgrantee in the State in 
                receiving a waiver under section 5204(e); and
            ``(3) assurances that the eligible applicant has provided 
        its authorized public chartering authority timely notice, and a 
        copy, of the application, except that the State educational 
        agency (or the Secretary, in the case of an application 
        submitted to the Secretary) may waive the requirement of this 
        paragraph in the case of an application for a precharter 
        planning grant or subgrant if the authorized public chartering 
        authority to which a charter school proposal will be submitted 
        has not been determined at the time the grant or subgrant 
        application is submitted.

``SEC. 5204. <<NOTE: 20 USC 7221c.>>  ADMINISTRATION.

    ``(a) Selection Criteria for State Educational Agencies.--The 
Secretary shall award grants to State educational agencies under this 
subpart on the basis of the quality of the applications submitted under 
section 5203(b), after taking into consideration such factors as--
            ``(1) the contribution that the charter schools grant 
        program will make to assisting educationally disadvantaged and 
        other students in meeting State academic content standards and 
        State student academic achievement standards;
            ``(2) the degree of flexibility afforded by the State 
        educational agency to charter schools under the State's charter 
        schools law;
            ``(3) the ambitiousness of the objectives for the State 
        charter school grant program;
            ``(4) the quality of the strategy for assessing achievement 
        of those objectives;
            ``(5) the likelihood that the charter school grant program 
        will meet those objectives and improve educational results for 
        students;
            ``(6) the number of high-quality charter schools created 
        under this subpart in the State; and
            ``(7) in the case of State educational agencies that propose 
        to use grant funds to support dissemination activities under 
        subsection (f)(6)(B), the quality of those activities and the 
        likelihood that those activities will improve student academic 
        achievement.

    ``(b) Selection Criteria for Eligible Applicants.--The Secretary 
shall award grants to eligible applicants under this subpart on the 
basis of the quality of the applications submitted under section 
5203(c), after taking into consideration such factors as--
            ``(1) the quality of the proposed curriculum and 
        instructional practices;
            ``(2) the degree of flexibility afforded by the State 
        educational agency and, if applicable, the local educational 
        agency to the charter school;

[[Page 115 STAT. 1793]]

            ``(3) the extent of community support for the application;
            ``(4) the ambitiousness of the objectives for the charter 
        school;
            ``(5) the quality of the strategy for assessing achievement 
        of those objectives;
            ``(6) the likelihood that the charter school will meet those 
        objectives and improve educational results for students; and
            ``(7) in the case of an eligible applicant that proposes to 
        use grant funds to support dissemination activities under 
        subsection (f)(6)(B), the quality of those activities and the 
        likelihood that those activities will improve student 
        achievement.

    ``(c) Peer Review.--The Secretary, and each State educational agency 
receiving a grant under this subpart, shall use a peer review process to 
review applications for assistance under this subpart.
    ``(d) Diversity of Projects.--The Secretary and each State 
educational agency receiving a grant under this subpart, shall award 
grants and subgrants under this subpart in a manner that, to the extent 
possible, ensures that such grants and subgrants--
            ``(1) are distributed throughout different areas of the 
        Nation and each State, including urban and rural areas; and
            ``(2) will assist charter schools representing a variety of 
        educational approaches, such as approaches designed to reduce 
        school size.

    ``(e) Waivers.--The Secretary may waive any statutory or regulatory 
requirement over which the Secretary exercises administrative authority 
except any such requirement relating to the elements of a charter school 
described in section 5210(1), if--
            ``(1) the waiver is requested in an approved application 
        under this subpart; and
            ``(2) the Secretary determines that granting such a waiver 
        will promote the purpose of this subpart.

    ``(f) Use of Funds.--
            ``(1) State educational agencies.--Each State educational 
        agency receiving a grant under this subpart shall use such grant 
        funds to award subgrants to one or more eligible applicants in 
        the State to enable such applicant to plan and implement a 
        charter school in accordance with this subpart, except that the 
        State educational agency may reserve not more than 10 percent of 
        the grant funds to support dissemination activities described in 
        paragraph (6).
            ``(2) Eligible applicants.--Each eligible applicant 
        receiving funds from the Secretary or a State educational agency 
        shall use such funds to plan and implement a charter school, or 
        to disseminate information about the charter school and 
        successful practices in the charter school, in accordance with 
        this subpart.
            ``(3) Allowable activities.--An eligible applicant receiving 
        a grant or subgrant under this subpart may use the grant or 
        subgrant funds only for--
                    (A) post-award planning and design of the 
                educational program, which may include--
                          ``(i) refinement of the desired educational 
                      results and of the methods for measuring progress 
                      toward achieving those results; and
                          ``(ii) professional development of teachers 
                      and other staff who will work in the charter 
                      school; and

[[Page 115 STAT. 1794]]

                    ``(B) initial implementation of the charter school, 
                which may include--
                          ``(i) informing the community about the 
                      school;
                          ``(ii) acquiring necessary equipment and 
                      educational materials and supplies;
                          ``(iii) acquiring or developing curriculum 
                      materials; and
                          ``(iv) other initial operational costs that 
                      cannot be met from State or local sources.
            ``(4) Administrative expenses.--
                    ``(A) State educational agency administrative 
                expenses.--Each State educational agency receiving a 
                grant pursuant to this subpart may reserve not more than 
                5 percent of such grant funds for administrative 
                expenses associated with the charter school grant 
                program assisted under this subpart.
                    ``(B) Local administrative expenses.--A local 
                educational agency may not deduct funds for 
                administrative fees or expenses from a subgrant awarded 
                to an eligible applicant, unless the eligible applicant 
                enters voluntarily into a mutually agreed upon 
                arrangement for administrative services with the 
                relevant local educational agency. Absent such approval, 
                the local educational agency shall distribute all such 
                subgrant funds to the eligible applicant without delay.
            ``(5) Revolving loan funds.--Each State educational agency 
        receiving a grant pursuant to this subpart may reserve not more 
        than 10 percent of the grant funds for the establishment of a 
        revolving loan fund. Such fund may be used to make loans to 
        eligible applicants that have received a subgrant under this 
        subpart, under such terms as may be determined by the State 
        educational agency, for the initial operation of the charter 
        school grant program of the eligible applicant until such time 
        as the recipient begins receiving ongoing operational support 
        from State or local financing sources.
            ``(6) Dissemination.--
                    ``(A) In general.--A charter school may apply for 
                funds under this subpart, whether or not the charter 
                school has applied for or received funds under this 
                subpart for planning, program design, or implementation, 
                to carry out the activities described in subparagraph 
                (B) if the charter school has been in operation for at 
                least 3 consecutive years and has demonstrated overall 
                success, including--
                          ``(i) substantial progress in improving 
                      student academic achievement;
                          ``(ii) high levels of parent satisfaction; and
                          ``(iii) the management and leadership 
                      necessary to overcome initial start-up problems 
                      and establish a thriving, financially viable 
                      charter school.
                    ``(B) Activities.--A charter school described in 
                subparagraph (A) may use funds reserved under paragraph 
                (1) to assist other schools in adapting the charter 
                school's program (or certain aspects of the charter 
                school's program), or to disseminate information about 
                the charter school, through such activities as--
                          ``(i) assisting other individuals with the 
                      planning and start-up of one or more new public 
                      schools,

[[Page 115 STAT. 1795]]

                      including charter schools, that are independent of 
                      the assisting charter school and the assisting 
                      charter school's developers, and that agree to be 
                      held to at least as high a level of accountability 
                      as the assisting charter school;
                          ``(ii) developing partnerships with other 
                      public schools, including charter schools, 
                      designed to improve student academic achievement 
                      in each of the schools participating in the 
                      partnership;
                          ``(iii) developing curriculum materials, 
                      assessments, and other materials that promote 
                      increased student achievement and are based on 
                      successful practices within the assisting charter 
                      school; and
                          ``(iv) conducting evaluations and developing 
                      materials that document the successful practices 
                      of the assisting charter school and that are 
                      designed to improve student performance in other 
                      schools.

    ``(g) Tribally Controlled Schools.--Each State that receives a grant 
under this subpart and designates a tribally controlled school as a 
charter school shall not consider payments to a school under the 
Tribally Controlled Schools Act of 1988 (25 U.S.C. 2507) in 
determining--
            ``(1) the eligibility of the school to receive any other 
        Federal, State, or local aid; or
            ``(2) the amount of such aid.

``SEC. 5205. <<NOTE: 20 USC 7221d.>>  NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary shall reserve for each fiscal year 
the greater of 5 percent or $5,000,000 of the amount appropriated to 
carry out this subpart, except that in no fiscal year shall the total 
amount so reserved exceed $8,000,000, to carry out the following 
activities:
            ``(1) To provide charter schools, either directly or through 
        State educational agencies, with--
                    ``(A) information regarding--
                          ``(i) Federal funds that charter schools are 
                      eligible to receive; and
                          ``(ii) other Federal programs in which charter 
                      schools may participate; and
                    ``(B) assistance in applying for Federal education 
                funds that are allocated by formula, including 
                assistance with filing deadlines and submission of 
                applications.
            ``(2) To provide for other evaluations or studies that 
        include the evaluation of the impact of charter schools on 
        student academic achievement, including information regarding--
                    ``(A) students attending charter schools reported on 
                the basis of race, age, disability, gender, limited 
                English proficiency, and previous enrollment in public 
                school; and
                    ``(B) the professional qualifications of teachers 
                within a charter school and the turnover of the teaching 
                force.
            ``(3) To provide--
                    ``(A) information to applicants for assistance under 
                this subpart;
                    ``(B) assistance to applicants for assistance under 
                this subpart with the preparation of applications under 
                section 5203;

[[Page 115 STAT. 1796]]

                    ``(C) assistance in the planning and startup of 
                charter schools;
                    ``(D) training and technical assistance to existing 
                charter schools; and
                    ``(E) for the dissemination to other public schools 
                of best or promising practices in charter schools.
            ``(4) To provide (including through the use of one or more 
        contracts that use a competitive bidding process) for the 
        collection of information regarding the financial resources 
        available to charter schools, including access to private 
        capital, and to widely disseminate to charter schools any such 
        relevant information and model descriptions of successful 
        programs.
            ``(5) To carry out evaluations of, technical assistance for, 
        and information dissemination regarding, the per-pupil 
        facilities aid programs. In carrying out the evaluations, the 
        Secretary may carry out one or more evaluations of State 
        programs assisted under this subsection, which shall, at a 
        minimum, address--
                    ``(A) how, and the extent to which, the programs 
                promote educational equity and excellence; and
                    ``(B) the extent to which charter schools supported 
                through the programs are--
                          ``(i) held accountable to the public;
                          ``(ii) effective in improving public 
                      education; and
                          ``(iii) open and accessible to all students.

    ``(b) Per-Pupil Facilities Aid Programs.--
            ``(1) Definition of per-pupil facilities aid program.--In 
        this subsection, the term `per-pupil facilities aid program' 
        means a program in which a State makes payments, on a per-pupil 
        basis, to charter schools to provide the schools with 
        financing--
                    ``(A) that is dedicated solely for funding charter 
                school facilities; or
                    ``(B) a portion of which is dedicated for funding 
                charter school facilities.
            ``(2) Grants.--
                    ``(A) In general.--From the amount made available to 
                carry out this subsection under paragraphs (2) and 
                (3)(B) of section 5211(b) for any fiscal year, the 
                Secretary shall make grants, on a competitive basis, to 
                States to pay for the Federal share of the cost of 
                establishing or enhancing, and administering per-pupil 
                facilities aid programs.
                    ``(B) Period.--The Secretary shall award grants 
                under this subsection for periods of not more than 5 
                years.
                    ``(C) Federal share.--The Federal share of the cost 
                described in subparagraph (A) for a per-pupil facilities 
                aid program shall be not more than--
                          ``(i) 90 percent of the cost, for the first 
                      fiscal year for which the program receives 
                      assistance under this subsection;
                          ``(ii) 80 percent in the second such year;
                          ``(iii) 60 percent in the third such year;
                          ``(iv) 40 percent in the fourth such year; and
                          ``(v) 20 percent in the fifth such year.
            ``(3) Use of funds.--
                    ``(A) In general.--A State that receives a grant 
                under this subsection shall use the funds made available 
                through

[[Page 115 STAT. 1797]]

                the grant to establish or enhance, and administer, a 
                per-pupil facilities aid program for charter schools in 
                the State.
                    ``(B) Evaluations; technical assistance; 
                dissemination.--From the amount made available to a 
                State through a grant under this subsection for a fiscal 
                year, the State may reserve not more than 5 percent to 
                carry out evaluations, to provide technical assistance, 
                and to disseminate information.
                    ``(C) Supplement, not supplant.--Funds made 
                available under this subsection shall be used to 
                supplement, and not supplant, State and local public 
                funds expended to provide per pupil facilities aid 
                programs, operations financing programs, or other 
                programs, for charter schools.
            ``(4) Requirements.--
                    ``(A) Voluntary participation.--No State may be 
                required to participate in a program carried out under 
                this subsection.
                    ``(B) State law.--To be eligible to receive a grant 
                under this subsection, a State shall establish or 
                enhance, and administer, a per-pupil facilities aid 
                program for charter schools in the State, that--
                          ``(i) is specified in State law; and
                          ``(ii) provides annual financing, on a per-
                      pupil basis, for charter school facilities.
            ``(5) Applications.--To be eligible to receive a grant under 
        this subsection, a State shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(6) Priorities.--In making grants under this subsection, 
        the Secretary shall give priority to States that meet the 
        criteria described in paragraph (2), and subparagraphs (A), (B), 
        and (C) of paragraph (3), of section 5202(e).

    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to require charter schools to collect any data described in 
subsection (a).

``SEC. 5206. <<NOTE: 20 USC 7221e.>>  FEDERAL FORMULA ALLOCATION DURING 
            FIRST YEAR AND FOR SUCCESSIVE ENROLLMENT EXPANSIONS.

    ``(a) In General.--For purposes of the allocation to schools by the 
States or their agencies of funds under part A of title I, and any other 
Federal funds which the Secretary allocates to States on a formula 
basis, the Secretary and each State educational agency shall take such 
measures as are necessary to ensure that every charter school receives 
the Federal funding for which the charter school is eligible not later 
than 5 months after the charter school first opens, notwithstanding the 
fact that the identity and characteristics of the students enrolling in 
that charter school are not fully and completely determined until that 
charter school actually opens. The measures similarly shall ensure that 
every charter school expanding its enrollment in any subsequent year of 
operation receives the Federal funding for which the charter school is 
eligible not later than 5 months after such expansion.
    ``(b) Adjustment and Late Openings.--
            ``(1) In general.--The measures described in subsection (a) 
        shall include provision for appropriate adjustments, through 
        recovery of funds or reduction of payments for the succeeding 
        year, in cases where payments made to a charter school on

[[Page 115 STAT. 1798]]

        the basis of estimated or projected enrollment data exceed the 
        amounts that the school is eligible to receive on the basis of 
        actual or final enrollment data.
            ``(2) Rule.--For charter schools that first open after 
        November 1 of any academic year, the State, in accordance with 
        guidance provided by the Secretary and applicable Federal 
        statutes and regulations, shall ensure that such charter schools 
        that are eligible for the funds described in subsection (a) for 
        such academic year have a full and fair opportunity to receive 
        those funds during the charter schools' first year of operation.

``SEC. 5207. <<NOTE: 20 USC 7221f.>>  SOLICITATION OF INPUT FROM CHARTER 
            SCHOOL OPERATORS.

    ``To the extent practicable, the Secretary shall ensure that 
administrators, teachers, and other individuals directly involved in the 
operation of charter schools are consulted in the development of any 
rules or regulations required to implement this subpart, as well as in 
the development of any rules or regulations relevant to charter schools 
that are required to implement part A of title I, the Individuals with 
Disabilities Education Act, or any other program administered by the 
Secretary that provides education funds to charter schools or regulates 
the activities of charter schools.

``SEC. 5208. <<NOTE: 20 USC 7221g.>>  RECORDS TRANSFER.

    ``State educational agencies and local educational agencies, to the 
extent practicable, shall ensure that a student's records and, if 
applicable, a student's individualized education program as defined in 
section 602(11) of the Individuals with Disabilities Education Act, are 
transferred to a charter school upon the transfer of the student to the 
charter school, and to another public school upon the transfer of the 
student from a charter school to another public school, in accordance 
with applicable State law.

``SEC. 5209. <<NOTE: 20 USC 7221h.>>  PAPERWORK REDUCTION.

    ``To the extent practicable, the Secretary and each authorized 
public chartering agency shall ensure that implementation of this 
subpart results in a minimum of paperwork for any eligible applicant or 
charter school.

``SEC. 5210. <<NOTE: 20 USC 7221i.>>  DEFINITIONS.

    ``In this subpart:
            ``(1) Charter school.--The term `charter school' means a 
        public school that--
                    ``(A) in accordance with a specific State statute 
                authorizing the granting of charters to schools, is 
                exempt from significant State or local rules that 
                inhibit the flexible operation and management of public 
                schools, but not from any rules relating to the other 
                requirements of this paragraph;
                    ``(B) is created by a developer as a public school, 
                or is adapted by a developer from an existing public 
                school, and is operated under public supervision and 
                direction;
                    ``(C) operates in pursuit of a specific set of 
                educational objectives determined by the school's 
                developer and agreed to by the authorized public 
                chartering agency;
                    ``(D) provides a program of elementary or secondary 
                education, or both;

[[Page 115 STAT. 1799]]

                    ``(E) is nonsectarian in its programs, admissions 
                policies, employment practices, and all other 
                operations, and is not affiliated with a sectarian 
                school or religious institution;
                    ``(F) does not charge tuition;
                    ``(G) complies with the Age Discrimination Act of 
                1975, title VI of the Civil Rights Act of 1964, title IX 
                of the Education Amendments of 1972, section 504 of the 
                Rehabilitation Act of 1973, and part B of the 
                Individuals with Disabilities Education Act;
                    ``(H) is a school to which parents choose to send 
                their children, and that admits students on the basis of 
                a lottery, if more students apply for admission than can 
                be accommodated;
                    ``(I) agrees to comply with the same Federal and 
                State audit requirements as do other elementary schools 
                and secondary schools in the State, unless such 
                requirements are specifically waived for the purpose of 
                this program;
                    ``(J) meets all applicable Federal, State, and local 
                health and safety requirements;
                    ``(K) operates in accordance with State law; and
                    ``(L) has a written performance contract with the 
                authorized public chartering agency in the State that 
                includes a description of how student performance will 
                be measured in charter schools pursuant to State 
                assessments that are required of other schools and 
                pursuant to any other assessments mutually agreeable to 
                the authorized public chartering agency and the charter 
                school.
            ``(2) Developer.--The term `developer' means an individual 
        or group of individuals (including a public or private nonprofit 
        organization), which may include teachers, administrators and 
        other school staff, parents, or other members of the local 
        community in which a charter school project will be carried out.
            ``(3) Eligible applicant.--The term `eligible applicant' 
        means a developer that has--
                    ``(A) applied to an authorized public chartering 
                authority to operate a charter school; and
                    ``(B) provided adequate and timely notice to that 
                authority under section 5203(d)(3).
            ``(4) Authorized public chartering agency.--The term 
        `authorized public chartering agency' means a State educational 
        agency, local educational agency, or other public entity that 
        has the authority pursuant to State law and approved by the 
        Secretary to authorize or approve a charter school.

``SEC. 5211. <<NOTE: 20 USC 7221j.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart $300,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 5 succeeding fiscal years.
    ``(b) Reservation.--From the amount appropriated under subsection 
(a) for each fiscal year, the Secretary shall reserve--
            ``(1) $200,000,000 to carry out this subpart, other than 
        section 5205(b); and
            ``(2) any funds in excess of $200,000,000, that do not 
        exceed $300,000,000, to carry out section 5205(b); and

[[Page 115 STAT. 1800]]

            ``(3)(A) 50 percent of any funds in excess of $300,000,000 
        to carry out this subpart, other than section 5205(b); and
            ``(B) 50 percent of any funds in excess of $300,000,000 to 
        carry out section 5205(b).

  ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

``SEC. 5221. <<NOTE: 20 USC 7223.>>  PURPOSE.

    ``The purpose of this subpart is to provide grants to eligible 
entities to permit the eligible entities to demonstrate innovative 
credit enhancement initiatives that assist charter schools to address 
the cost of acquiring, constructing, and renovating facilities.

``SEC. 5222. <<NOTE: 20 USC 7223a.>>  GRANTS TO ELIGIBLE ENTITIES.

    ``(a) Grants.--The Secretary shall use 100 percent of the amount 
available to carry out this subpart to award not less than three grants 
to eligible entities that have applications approved under this subpart 
to demonstrate innovative methods of assisting charter schools to 
address the cost of acquiring, constructing, and renovating facilities 
by enhancing the availability of loans or bond financing.
    ``(b) Grantee Selection.--
            ``(1) Evaluation of application.--The Secretary shall 
        evaluate each application submitted under section 5223, and 
        shall determine whether the application is sufficient to merit 
        approval.
            ``(2) Distribution of grants.--The Secretary shall award at 
        least one grant to an eligible entity described in section 
        5230(2)(A), at least one grant to an eligible entity described 
        in section 5230(2)(B), and at least one grant to an eligible 
        entity described in section 5230(2)(C), if applications are 
        submitted that permit the Secretary to do so without approving 
        an application that is not of sufficient quality to merit 
        approval.

    ``(c) Grant Characteristics.--Grants under this subpart shall be of 
a sufficient size, scope, and quality so as to ensure an effective 
demonstration of an innovative means of enhancing credit for the 
financing of charter school acquisition, construction, or renovation.
    ``(d) Special Rule.--In the event the Secretary determines that the 
funds made available under this subpart are insufficient to permit the 
Secretary to award not less than three grants in accordance with 
subsections (a) through (c), such three-grant minimum and subsection 
(b)(2) shall not apply, and the Secretary may determine the appropriate 
number of grants to be awarded in accordance with subsection (c).

``SEC. 5223. <<NOTE: 20 USC 7223b.>>  APPLICATIONS.

    ``(a) In General.--To receive a grant under this subpart, an 
eligible entity shall submit to the Secretary an application in such 
form as the Secretary may reasonably require.
    ``(b) Contents.--An application submitted under subsection (a) shall 
contain--
            ``(1) a statement identifying the activities proposed to be 
        undertaken with funds received under this subpart, including how 
        the eligible entity will determine which charter schools

[[Page 115 STAT. 1801]]

        will receive assistance, and how much and what types of 
        assistance charter schools will receive;
            ``(2) a description of the involvement of charter schools in 
        the application's development and the design of the proposed 
        activities;
            ``(3) a description of the eligible entity's expertise in 
        capital market financing;
            ``(4) a description of how the proposed activities will 
        leverage the maximum amount of private-sector financing capital 
        relative to the amount of government funding used and otherwise 
        enhance credit available to charter schools;
            ``(5) a description of how the eligible entity possesses 
        sufficient expertise in education to evaluate the likelihood of 
        success of a charter school program for which facilities 
        financing is sought;
            ``(6) in the case of an application submitted by a State 
        governmental entity, a description of the actions that the 
        entity has taken, or will take, to ensure that charter schools 
        within the State receive the funding the charter schools need to 
        have adequate facilities; and
            ``(7) such other information as the Secretary may reasonably 
        require.

``SEC. 5224. <<NOTE: 20 USC 7223c.>>  CHARTER SCHOOL OBJECTIVES.

    ``An eligible entity receiving a grant under this subpart shall use 
the funds deposited in the reserve account established under section 
5225(a) to assist one or more charter schools to access private sector 
capital to accomplish one or both of the following objectives:
            ``(1) The acquisition (by purchase, lease, donation, or 
        otherwise) of an interest (including an interest held by a third 
        party for the benefit of a charter school) in improved or 
        unimproved real property that is necessary to commence or 
        continue the operation of a charter school.
            ``(2) The construction of new facilities, or the renovation, 
        repair, or alteration of existing facilities, necessary to 
        commence or continue the operation of a charter school.

``SEC. 5225. <<NOTE: 20 USC 7223d.>>  RESERVE ACCOUNT.

    ``(a) Use of Funds.--To assist charter schools to accomplish the 
objectives described in section 5224, an eligible entity receiving a 
grant under this subpart shall, in accordance with State and local law, 
directly or indirectly, alone or in collaboration with others, deposit 
the funds received under this subpart (other than funds used for 
administrative costs in accordance with section 5226) in a reserve 
account established and maintained by the eligible entity for this 
purpose. Amounts deposited in such account shall be used by the eligible 
entity for one or more of the following purposes:
            ``(1) Guaranteeing, insuring, and reinsuring bonds, notes, 
        evidences of debt, loans, and interests therein, the proceeds of 
        which are used for an objective described in section 5224.
            ``(2) Guaranteeing and insuring leases of personal and real 
        property for an objective described in section 5224.
            ``(3) Facilitating financing by identifying potential 
        lending sources, encouraging private lending, and other similar 
        activities that directly promote lending to, or for the benefit 
        of, charter schools.

[[Page 115 STAT. 1802]]

            ``(4) Facilitating the issuance of bonds by charter schools, 
        or by other public entities for the benefit of charter schools, 
        by providing technical, administrative, and other appropriate 
        assistance (including the recruitment of bond counsel, 
        underwriters, and potential investors and the consolidation of 
        multiple charter school projects within a single bond issue).

    ``(b) Investment.--Funds received under this subpart and deposited 
in the reserve account established under subsection (a) shall be 
invested in obligations issued or guaranteed by the United States or a 
State, or in other similarly low-risk securities.
    ``(c) Reinvestment of Earnings.--Any earnings on funds received 
under this subpart shall be deposited in the reserve account established 
under subsection (a) and used in accordance with such subsection.

``SEC. 5226. <<NOTE: 20 USC 7223e.>>  LIMITATION ON ADMINISTRATIVE 
            COSTS.

    ``An eligible entity may use not more than 0.25 percent of the funds 
received under this subpart for the administrative costs of carrying out 
its responsibilities under this subpart.

``SEC. 5227. <<NOTE: 20 USC 7223f.>>  AUDITS AND REPORTS.

    ``(a) Financial Record Maintenance and Audit.--The financial records 
of each eligible entity receiving a grant under this subpart shall be 
maintained in accordance with generally accepted accounting principles 
and shall be subject to an annual audit by an independent public 
accountant.
    ``(b) Reports.--
            ``(1) Grantee annual reports.--Each eligible entity 
        receiving a grant under this subpart annually shall submit to 
        the Secretary a report of its operations and activities under 
        this subpart.
            ``(2) Contents.--Each annual report submitted under 
        paragraph (1) shall include--
                    ``(A) a copy of the most recent financial 
                statements, and any accompanying opinion on such 
                statements, prepared by the independent public 
                accountant reviewing the financial records of the 
                eligible entity;
                    ``(B) a copy of any report made on an audit of the 
                financial records of the eligible entity that was 
                conducted under subsection (a) during the reporting 
                period;
                    ``(C) an evaluation by the eligible entity of the 
                effectiveness of its use of the Federal funds provided 
                under this subpart in leveraging private funds;
                    ``(D) a listing and description of the charter 
                schools served during the reporting period;
                    ``(E) a description of the activities carried out by 
                the eligible entity to assist charter schools in meeting 
                the objectives set forth in section 5224; and
                    ``(F) a description of the characteristics of 
                lenders and other financial institutions participating 
                in the activities undertaken by the eligible entity 
                under this subpart during the reporting period.
            ``(3) Secretarial report.--The Secretary shall review the 
        reports submitted under paragraph (1) and shall provide a 
        comprehensive annual report to Congress on the activities 
        conducted under this subpart.

[[Page 115 STAT. 1803]]

``SEC. 5228. <<NOTE: 20 USC 7223g.>>  NO FULL FAITH AND CREDIT FOR 
            GRANTEE OBLIGATIONS.

    ``No financial obligation of an eligible entity entered into 
pursuant to this subpart (such as an obligation under a guarantee, bond, 
note, evidence of debt, or loan) shall be an obligation of, or 
guaranteed in any respect by, the United States. The full faith and 
credit of the United States is not pledged to the payment of funds which 
may be required to be paid under any obligation made by an eligible 
entity pursuant to any provision of this subpart.

``SEC. 5229. <<NOTE: 20 USC 7223h.>>  RECOVERY OF FUNDS.

    ``(a) In General.--The Secretary, in accordance with chapter 37 of 
title 31, United States Code, shall collect--
            ``(1) all of the funds in a reserve account established by 
        an eligible entity under section 5225(a) if the Secretary 
        determines, not earlier than 2 years after the date on which the 
        eligible entity first received funds under this subpart, that 
        the eligible entity has failed to make substantial progress in 
        carrying out the purposes described in section 5225(a); or
            ``(2) all or a portion of the funds in a reserve account 
        established by an eligible entity under section 5225(a) if the 
        Secretary determines that the eligible entity has permanently 
        ceased to use all or a portion of the funds in such account to 
        accomplish any purpose described in section 5225(a).

    ``(b) Exercise of Authority.--The Secretary shall not exercise the 
authority provided in subsection (a) to collect from any eligible entity 
any funds that are being properly used to achieve one or more of the 
purposes described in section 5225(a).
    ``(c) <<NOTE: Applicability.>>  Procedures.--The provisions of 
sections 451, 452, and 458 of the General Education Provisions Act shall 
apply to the recovery of funds under subsection (a).

    ``(d) Construction.--This section shall not be construed to impair 
or affect the authority of the Secretary to recover funds under part D 
of the General Education Provisions Act.

``SEC. 5230. <<NOTE: 20 USC 7223i.>>  DEFINITIONS.

    ``In this subpart:
            ``(1) Charter school.--The term `charter school' has the 
        meaning given such term in section 5210.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a public entity, such as a State or local 
                governmental entity;
                    ``(B) a private nonprofit entity; or
                    ``(C) a consortium of entities described in 
                subparagraphs (A) and (B).

``SEC. 5231. <<NOTE: 20 USC 7223j.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subpart, there are authorized 
to be appropriated $150,000,000 for fiscal year 2002 and such sums as 
may be necessary for fiscal year 2003.

          ``Subpart 3--Voluntary Public School Choice Programs

``SEC. 5241. <<NOTE: 20 USC 7225.>>  GRANTS.

    ``(a) Authorization.--From funds made available under section 5248 
to carry out this subpart, the Secretary shall award grants, on a 
competitive basis, to eligible entities to enable the entities

[[Page 115 STAT. 1804]]

to establish or expand a program of public school choice (referred to in 
this subpart as a `program') in accordance with this subpart.
    ``(b) Duration.--Grants awarded under subsection (a) may be awarded 
for a period of not more than 5 years.

``SEC. 5242. <<NOTE: 20 USC 7225a.>>  USES OF FUNDS.

    ``(a) Required Use of Funds.--An eligible entity that receives a 
grant under this subpart shall use the grant funds to provide students 
selected to participate in the program with transportation services or 
the cost of transportation to and from the public elementary schools and 
secondary schools, including charter schools, that the students choose 
to attend under the program.
    ``(b) Permissible Uses of Funds.--An eligible entity that receives a 
grant under this subpart may use the grant funds for--
            ``(1) planning or designing a program (for not more than 1 
        year);
            ``(2) the cost of making tuition transfer payments to public 
        elementary schools or secondary schools to which students 
        transfer under the program;
            ``(3) the cost of capacity-enhancing activities that enable 
        high-demand public elementary schools or secondary schools to 
        accommodate transfer requests under the program;
            ``(4) the cost of carrying out public education campaigns to 
        inform students and parents about the program; and
            ``(5) other costs reasonably necessary to implement the 
        program.

    ``(c) Nonpermissible Uses of Funds.--An eligible entity that 
receives a grant under this subpart may not use the grant funds for 
school construction.
    ``(d) Administrative Expenses.--The eligible entity may use not more 
than 5 percent of the funds made available through the grant for any 
fiscal year for administrative expenses.

``SEC. 5243. <<NOTE: 20 USC 7225b.>>  APPLICATIONS.

    ``(a) Submission.--An eligible entity that desires a grant under 
this subpart shall submit an application to the Secretary at such time, 
in such manner, and containing such information as the Secretary may 
require.
    ``(b) Contents.--An application submitted under subsection (a) shall 
include--
            ``(1) a description of the program for which the eligible 
        entity seeks funds and the goals for such program;
            ``(2) a description of how and when parents of students will 
        be given the notice required under section 5245(a)(2);
            ``(3) a description of how students will be selected for the 
        program;
            ``(4) a description of how the program will be coordinated 
        with, and will complement and enhance, other related Federal and 
        non-Federal projects;
            ``(5) if the program is to be carried out by a partnership, 
        the name of each partner and a description of the partner's 
        responsibilities; and
            ``(6) such other information as the Secretary may require.

``SEC. 5244. <<NOTE: 20 USC 7225c.>>  PRIORITIES.

    ``In awarding grants under this subpart, the Secretary shall give 
priority to an eligible entity--

[[Page 115 STAT. 1805]]

            ``(1) whose program would provide the widest variety of 
        choices to all students in participating schools;
            ``(2) whose program would, through various choice options, 
        have the most impact in allowing students in low-performing 
        schools to attend higher-performing schools; and
            ``(3) that is a partnership that seeks to implement an 
        interdistrict approach to carrying out a program.

``SEC. 5245. <<NOTE: 20 USC 7225d.>>  REQUIREMENTS AND VOLUNTARY 
            PARTICIPATION.

    ``(a) Parent and Community Involvement and Notice.--In carrying out 
a program under this subpart, an eligible entity shall--
            ``(1) develop the program with--
                    ``(A) the involvement of parents and others in the 
                community to be served; and
                    ``(B) individuals who will carry out the program, 
                including administrators, teachers, principals, and 
                other staff; and
            ``(2) provide to parents of students in the area to be 
        served by the program with prompt notice of--
                    ``(A) the existence of the program;
                    ``(B) the program's availability; and
                    ``(C) a clear explanation of how the program will 
                operate.

    ``(b) Selection of Students.--An eligible entity that receives a 
grant under this subpart shall select students to participate in a 
program on the basis of a lottery, if more students apply for admission 
to the program than can be accommodated.
    ``(c) Voluntary Participation.--Student participation in a program 
funded under this subpart shall be voluntary.

``SEC. 5246. <<NOTE: 20 USC 7225e.>>  EVALUATIONS.

    ``(a) In General.--From the amount made available to carry out this 
subpart for any fiscal year, the Secretary may reserve not more than 5 
percent--
            ``(1) to carry out evaluations;
            ``(2) to provide technical assistance; and
            ``(3) to disseminate information.

    ``(b) Evaluations.--In carrying out the evaluations under subsection 
(a), the Secretary shall, at a minimum, address--
            ``(1) how, and the extent to which, the programs promote 
        educational equity and excellence;
            ``(2) the characteristics of the students participating in 
        the programs; and
            ``(3) the effect of the programs on the academic achievement 
        of students participating in the programs, particularly students 
        who move from schools identified under section 1116 to schools 
        not so identified, and on the overall quality of participating 
        schools and districts.

``SEC. 5247. <<NOTE: 20 USC 7225f.>>  DEFINITIONS.

    ``In this subpart:
            ``(1) Charter school.--The term `charter school' has the 
        meaning given such term in section 5210.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) one or more State educational agencies;
                    ``(B) one or more local educational agencies; or
                    ``(C) a partnership of--
                          ``(i) one or more--

[[Page 115 STAT. 1806]]

                                    ``(I) State educational agencies; 
                                and
                                    ``(II) local educational agencies or 
                                other public, for-profit, or nonprofit 
                                entities; or
                          ``(ii) one or more--
                                    ``(I) local educational agencies; 
                                and
                                    ``(II) public, for-profit, or 
                                nonprofit entities.
            ``(3) Low-performing school.--The term `low-performing 
        school' means a public elementary school or secondary school 
        that has failed to make adequate yearly progress, as described 
        in section 1111(b), for two or more consecutive years.

``SEC. 5248. <<NOTE: 20 USC 7225g.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$100,000,000 for fiscal year 2002 and each of the 5 succeeding fiscal 
years.

                   ``PART C--MAGNET SCHOOLS ASSISTANCE

``SEC. 5301. <<NOTE: 20 USC 7231.>>  FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) Magnet schools are a significant part of the Nation's 
        effort to achieve voluntary desegregation in our Nation's 
        schools.
            ``(2) The use of magnet schools has increased dramatically 
        since the inception of the magnet schools assistance program 
        under this Act, with approximately 2,000,000 students nationwide 
        attending such schools, of whom more than 65 percent are non-
        white.
            ``(3) Magnet schools offer a wide range of distinctive 
        programs that have served as models for school improvement 
        efforts.
            ``(4) It is in the best interests of the United States--
                    ``(A) to continue the Federal Government's support 
                of local educational agencies that are implementing 
                court-ordered desegregation plans and local educational 
                agencies that are voluntarily seeking to foster 
                meaningful interaction among students of different 
                racial and ethnic backgrounds, beginning at the earliest 
                stage of such students' education;
                    ``(B) to ensure that all students have equitable 
                access to a high quality education that will prepare all 
                students to function well in a technologically oriented 
                and a highly competitive economy comprised of people 
                from many different racial and ethnic backgrounds; and
                    ``(C) to continue to desegregate and diversify 
                schools by supporting magnet schools, recognizing that 
                segregation exists between minority and nonminority 
                students as well as among students of different minority 
                groups.
            ``(5) Desegregation efforts through magnet school programs 
        are a significant part of our Nation's effort to achieve 
        voluntary desegregation in schools and help to ensure equal 
        educational opportunities for all students.

    ``(b) Purpose.--The purpose of this part is to assist in the 
desegregation of schools served by local educational agencies by 
providing financial assistance to eligible local educational agencies 
for--

[[Page 115 STAT. 1807]]

            ``(1) the elimination, reduction, or prevention of minority 
        group isolation in elementary schools and secondary schools with 
        substantial proportions of minority students, which shall 
        include assisting in the efforts of the United States to achieve 
        voluntary desegregation in public schools;
            ``(2) the development and implementation of magnet school 
        programs that will assist local educational agencies in 
        achieving systemic reforms and providing all students the 
        opportunity to meet challenging State academic content standards 
        and student academic achievement standards;
            ``(3) the development and design of innovative educational 
        methods and practices that promote diversity and increase 
        choices in public elementary schools and public secondary 
        schools and public educational programs;
            ``(4) courses of instruction within magnet schools that will 
        substantially strengthen the knowledge of academic subjects and 
        the attainment of tangible and marketable vocational, 
        technological, and professional skills of students attending 
        such schools;
            ``(5) improving the capacity of local educational agencies, 
        including through professional development, to continue 
        operating magnet schools at a high performance level after 
        Federal funding for the magnet schools is terminated; and
            ``(6) ensuring that all students enrolled in the magnet 
        school programs have equitable access to high quality education 
        that will enable the students to succeed academically and 
        continue with postsecondary education or productive employment.

``SEC. 5302. <<NOTE: 20 USC 7231a.>>  DEFINITION.

    ``For the purpose of this part, the term `magnet school' means a 
public elementary school, public secondary school, public elementary 
education center, or public secondary education center that offers a 
special curriculum capable of attracting substantial numbers of students 
of different racial backgrounds.

``SEC. 5303. <<NOTE: 20 USC 7231b.>>  PROGRAM AUTHORIZED.

    ``The Secretary, in accordance with this part, is authorized to 
award grants to eligible local educational agencies, and consortia of 
such agencies where appropriate, to carry out the purpose of this part 
for magnet schools that are--
            ``(1) part of an approved desegregation plan; and
            ``(2) designed to bring students from different social, 
        economic, ethnic, and racial backgrounds together.

``SEC. 5304. <<NOTE: 20 USC 7231c.>>  ELIGIBILITY.

    ``A local educational agency, or consortium of such agencies where 
appropriate, is eligible to receive a grant under this part to carry out 
the purpose of this part if such agency or consortium--
            ``(1) is implementing a plan undertaken pursuant to a final 
        order issued by a court of the United States, or a court of any 
        State, or any other State agency or official of competent 
        jurisdiction, that requires the desegregation of minority-group-
        segregated children or faculty in the elementary schools and 
        secondary schools of such agency; or
            ``(2) without having been required to do so, has adopted and 
        is implementing, or will, if a grant is awarded to such local 
        educational agency, or consortium of such agencies, under this 
        part, adopt and implement a plan that has been approved

[[Page 115 STAT. 1808]]

        by the Secretary as adequate under title VI of the Civil Rights 
        Act of 1964 for the desegregation of minority-group-segregated 
        children or faculty in such schools.

``SEC. 5305. <<NOTE: 20 USC 7231d.>>  APPLICATIONS AND REQUIREMENTS.

    ``(a) Applications.--An eligible local educational agency, or 
consortium of such agencies, desiring to receive a grant under this part 
shall submit an application to the Secretary at such time, in such 
manner, and containing such information and assurances as the Secretary 
may reasonably require.
    ``(b) Information and Assurances.--Each application submitted under 
subsection (a) shall include--
            ``(1) a description of--
                    ``(A) how a grant awarded under this part will be 
                used to promote desegregation, including how the 
                proposed magnet school programs will increase 
                interaction among students of different social, 
                economic, ethnic, and racial backgrounds;
                    ``(B) the manner and extent to which the magnet 
                school program will increase student academic 
                achievement in the instructional area or areas offered 
                by the school;
                    ``(C) how the applicant will continue the magnet 
                school program after assistance under this part is no 
                longer available, and, if applicable, an explanation of 
                why magnet schools established or supported by the 
                applicant with grant funds under this part cannot be 
                continued without the use of grant funds under this 
                part;
                    ``(D) how grant funds under this part will be used--
                          ``(i) to improve student academic achievement 
                      for all students attending the magnet school 
                      programs; and
                          ``(ii) to implement services and activities 
                      that are consistent with other programs under this 
                      Act, and other Acts, as appropriate; and
                    ``(E) the criteria to be used in selecting students 
                to attend the proposed magnet school program; and
            ``(2) assurances that the applicant will--
                    ``(A) use grant funds under this part for the 
                purposes specified in section 5301(b);
                    ``(B) employ highly qualified teachers in the 
                courses of instruction assisted under this part;
                    ``(C) not engage in discrimination based on race, 
                religion, color, national origin, sex, or disability 
                in--
                          ``(i) the hiring, promotion, or assignment of 
                      employees of the applicant or other personnel for 
                      whom the applicant has any administrative 
                      responsibility;
                          ``(ii) the assignment of students to schools, 
                      or to courses of instruction within the schools, 
                      of such applicant, except to carry out the 
                      approved plan; and
                          ``(iii) designing or operating extracurricular 
                      activities for students;
                    ``(D) carry out a high-quality education program 
                that will encourage greater parental decisionmaking and 
                involvement; and
                    ``(E) give students residing in the local attendance 
                area of the proposed magnet school program equitable 
                consideration for placement in the program, consistent 
                with

[[Page 115 STAT. 1809]]

                desegregation guidelines and the capacity of the 
                applicant to accommodate the students.

    ``(c) Special Rule.--No grant shall be awarded under this part 
unless the Assistant Secretary of Education for Civil Rights determines 
that the assurances described in subsection (b)(2)(C) will be met.

``SEC. 5306. <<NOTE: 20 USC 7231e.>>  PRIORITY.

    ``In awarding grants under this part, the Secretary shall give 
priority to applicants that--
            ``(1) demonstrate the greatest need for assistance, based on 
        the expense or difficulty of effectively carrying out approved 
        desegregation plans and the magnet school program for which the 
        grant is sought;
            ``(2) propose to carry out new magnet school programs, or 
        significantly revise existing magnet school programs; and
            ``(3) propose to select students to attend magnet school 
        programs by methods such as lottery, rather than through 
        academic examination.

``SEC. 5307. <<NOTE: 20 USC 7231f.>>  USE OF FUNDS.

    ``(a) In General.--Grant funds made available under this part may be 
used by an eligible local educational agency, or consortium of such 
agencies--
            ``(1) for planning and promotional activities directly 
        related to the development, expansion, continuation, or 
        enhancement of academic programs and services offered at magnet 
        schools;
            ``(2) for the acquisition of books, materials, and 
        equipment, including computers and the maintenance and operation 
        of materials, equipment, and computers, necessary to conduct 
        programs in magnet schools;
            ``(3) for the compensation, or subsidization of the 
        compensation, of elementary school and secondary school teachers 
        who are highly qualified, and instructional staff where 
        applicable, who are necessary to conduct programs in magnet 
        schools;
            ``(4) with respect to a magnet school program offered to 
        less than the entire student population of a school, for 
        instructional activities that--
                    ``(A) are designed to make available the special 
                curriculum that is offered by the magnet school program 
                to students who are enrolled in the school but who are 
                not enrolled in the magnet school program; and
                    ``(B) further the purpose of this part;
            ``(5) for activities, which may include professional 
        development, that will build the recipient's capacity to operate 
        magnet school programs once the grant period has ended;
            ``(6) to enable the local educational agency, or consortium 
        of such agencies, to have more flexibility in the administration 
        of a magnet school program in order to serve students attending 
        a school who are not enrolled in a magnet school program; and
            ``(7) to enable the local educational agency, or consortium 
        of such agencies, to have flexibility in designing magnet 
        schools for students in all grades.

    ``(b) Special Rule.--Grant funds under this part may be used for 
activities described in paragraphs (2) and (3) of subsection (a) only if 
the activities are directly related to improving student academic 
achievement based on the State's challenging academic

[[Page 115 STAT. 1810]]

content standards and student academic achievement standards or directly 
related to improving student reading skills or knowledge of mathematics, 
science, history, geography, English, foreign languages, art, or music, 
or to improving vocational, technological, and professional skills.

``SEC. 5308. <<NOTE: 20 USC 7231g.>>  PROHIBITION.

    ``Grants under this part may not be used for transportation or any 
activity that does not augment academic improvement.

``SEC. 5309. <<NOTE: 20 USC 7231h.>>  LIMITATIONS.

    ``(a) Duration of Awards.--A grant under this part shall be awarded 
for a period that shall not exceed 3 fiscal years.
    ``(b) Limitation on Planning Funds.--A local educational agency, or 
consortium of such agencies, may expend for planning (professional 
development shall not be considered to be planning for purposes of this 
subsection) not more than 50 percent of the grant funds received under 
this part for the first year of the program and not more than 15 percent 
of such funds for each of the second and third such years.
    ``(c) Amount.--No local educational agency, or consortium of such 
agencies, awarded a grant under this part shall receive more than 
$4,000,000 under this part for any 1 fiscal year.
    ``(d) <<NOTE: Deadline.>>  Timing.--To the extent practicable, the 
Secretary shall award grants for any fiscal year under this part not 
later than July 1 of the applicable fiscal year.

``SEC. 5310. <<NOTE: 20 USC 7231i.>>  EVALUATIONS.

    ``(a) Reservation.--The Secretary may reserve not more than 2 
percent of the funds appropriated under section 5311(a) for any fiscal 
year to carry out evaluations, provide technical assistance, and carry 
out dissemination projects with respect to magnet school programs 
assisted under this part.
    ``(b) Contents.--Each evaluation described in subsection (a), at a 
minimum, shall address--
            ``(1) how and the extent to which magnet school programs 
        lead to educational quality and improvement;
            ``(2) the extent to which magnet school programs enhance 
        student access to a high quality education;
            ``(3) the extent to which magnet school programs lead to the 
        elimination, reduction, or prevention of minority group 
        isolation in elementary schools and secondary schools with 
        substantial proportions of minority students; and
            ``(4) the extent to which magnet school programs differ from 
        other school programs in terms of the organizational 
        characteristics and resource allocations of such magnet school 
        programs.

    ``(c) <<NOTE: Public information.>>  Dissemination.--The Secretary 
shall collect and disseminate to the general public information on 
successful magnet school programs.

``SEC. 5311. <<NOTE: 20 USC 7231j.>>  AUTHORIZATION OF APPROPRIATIONS; 
            RESERVATION.

    ``(a) Authorization.--For the purpose of carrying out this part, 
there are authorized to be appropriated $125,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.
    ``(b) Availability of Funds for Grants to Agencies Not Previously 
Assisted.--In any fiscal year for which the amount

[[Page 115 STAT. 1811]]

appropriated pursuant to subsection (a) exceeds $75,000,000, the 
Secretary shall give priority in using such amounts in excess of 
$75,000,000 to awarding grants to local educational agencies or 
consortia of such agencies that did not receive a grant under this part 
in the preceding fiscal year.

             ``PART D--FUND FOR THE IMPROVEMENT OF EDUCATION

``SEC. 5401. <<NOTE: 20 USC 7241.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part the 
following amounts:
            ``(1) $550,000,000 for fiscal year 2002.
            ``(2) $575,000,000 for fiscal year 2003.
            ``(3) $600,000,000 for fiscal year 2004.
            ``(4) $625,000,000 for fiscal year 2005.
            ``(5) $650,000,000 for fiscal year 2006.
            ``(6) $675,000,000 for fiscal year 2007.

           ``Subpart 1--Fund for the Improvement of Education

``SEC. 5411. <<NOTE: 20 USC 7243.>>  PROGRAMS AUTHORIZED.

    ``(a) Authorization.--The Secretary is authorized to support 
nationally significant programs to improve the quality of elementary and 
secondary education at the State and local levels and help all children 
meet challenging State academic content and student academic achievement 
standards. The Secretary may carry out such programs directly, or 
through grants to, or contracts with--
            ``(1) States or local educational agencies;
            ``(2) institutions of higher education; and
            ``(3) other public and private agencies, organizations, and 
        institutions.

    ``(b) Uses of Funds.--Funds made available under section 5401 to 
carry out this subpart may be used for any of the following programs:
            ``(1) Activities to promote systemic education reform at the 
        State and local levels, including scientifically based research, 
        development, and evaluation designed to improve--
                    ``(A) student academic achievement at the State and 
                local level; and
                    ``(B) strategies for effective parent and community 
                involvement.
            ``(2) Programs at the State and local levels that are 
        designed to yield significant results, including programs to 
        explore approaches to public school choice and school-based 
        decisionmaking.
            ``(3) Recognition programs, which may include financial 
        awards to States, local educational agencies, and schools that 
        have made the greatest progress, based on the Secretary's 
        determination or on a nomination by the State in which the 
        school is located (or in the case of a Bureau funded school, by 
        the Secretary of the Interior) in--
                    ``(A) improving the academic achievement of 
                economically disadvantaged students and students from 
                major racial and ethnic minority groups; and

[[Page 115 STAT. 1812]]

                    ``(B) closing the academic achievement gap for those 
                groups of students farthest away from the proficient 
                level on the academic assessments administered by the 
                State under section 1111.
            ``(4) Scientifically based studies and evaluations of 
        education reform strategies and innovations, and the 
        dissemination of information on the effectiveness of such 
        strategies and innovations.
            ``(5) Identification and recognition of exemplary schools 
        and programs, such as Blue Ribbon Schools, including programs to 
        evaluate the effectiveness of using the best practices of 
        exemplary or Blue Ribbon Schools to improve academic 
        achievement.
            ``(6) Activities to support Scholar-Athlete Games programs, 
        including the World Scholar-Athlete Games and the U.S. Scholar-
        Athlete Games.
            ``(7) Programs to promote voter participation in American 
        elections through programs, such as the National Student/Parent 
        Mock Election and Kids Voting USA.
            ``(8) Demonstrations relating to the planning and evaluation 
        of the effectiveness of programs under which local educational 
        agencies or schools contract with private management 
        organizations to reform a school or schools.
            ``(9) Other programs that meet the purposes of this Act.

    ``(c) Basis of Awards.--The Secretary is authorized to--
            ``(1) make awards under this subpart on the basis of 
        competitions announced by the Secretary; and
            ``(2) support meritorious unsolicited proposals for awards 
        under this subpart.

    ``(d) Effectiveness of Programs.--The Secretary shall ensure that 
programs supported under this subpart are designed so that their 
effectiveness is readily ascertainable, and shall ensure that such 
effectiveness is assessed using rigorous, scientifically based research 
and evaluations.

``SEC. 5412. <<NOTE: 20 USC 7243a.>>  APPLICATIONS.

    ``(a) Submission.--To be eligible for an award under this subpart, 
an entity shall submit an application to the Secretary, at such time, in 
such manner, and containing such information as the Secretary may 
require.
    ``(b) Contents.--Each application submitted under subsection (a) 
shall--
            ``(1) establish clear objectives, which are based on 
        scientifically based research, for the proposed program; and
            ``(2) describe the activities the applicant will carry out 
        in order to meet the objectives described in paragraph (1).

    ``(c) Peer Review.--The Secretary shall use a peer review process in 
reviewing applications for awards under this subpart and in recognizing 
States, local educational agencies, and schools under section 
5411(b)(3), only if funds are used for such recognition programs. The 
Secretary may use funds appropriated under this subpart for the cost of 
such peer review.

``SEC. 5413. <<NOTE: 20 USC 7243b.>>  PROGRAM REQUIREMENTS.

    ``(a) Evaluations.--A recipient of an award under this subpart 
shall--

[[Page 115 STAT. 1813]]

            ``(1) evaluate the effectiveness of the program funded under 
        the award in achieving the objectives stated in applications 
        submitted under section 5412; and
            ``(2) report to the Secretary such information as may be 
        required to determine the effectiveness of such program, 
        including evidence of progress toward meeting such objectives.

    ``(b) <<NOTE: Public information. Notice.>>  Dissemination of 
Evaluation Results.--The Secretary shall provide for the dissemination 
of the evaluations of programs funded under this subpart by making the 
evaluations publicly available upon request, and shall provide public 
notice that the evaluations are so available.

    ``(c) Matching Funds.--The Secretary may require recipients of 
awards under this subpart to provide matching funds from non-Federal 
sources, and shall permit the recipients to match funds in whole or in 
part with in-kind contributions.
    ``(d) Special Rule for Recognition Programs.--The application 
requirements of section 5412(b), and the evaluation requirements of 
subsections (a) and (b) of this section, do not apply to recognition 
programs under section 5411(b)(3).

``SEC. 5414. <<NOTE: 20 USC 7243c.>>  STUDIES OF NATIONAL SIGNIFICANCE.

    ``(a) Studies.--The Secretary shall conduct the following studies of 
national significance:
            ``(1) Unhealthy public school buildings.--A study regarding 
        the health and learning impacts of environmentally unhealthy 
        public school buildings on students and teachers. The study 
        shall include the following information:
                    ``(A) The characteristics of those public elementary 
                school and secondary school buildings that contribute to 
                unhealthy school environments.
                    ``(B) The health and learning impacts of 
                environmental unhealthy public school buildings on 
                students that are attending or that have attended such 
                schools.
                    ``(C) Recommendations to Congress on how to assist 
                schools that are out of compliance with Federal or State 
                health and safety codes, and a cost estimate of bringing 
                up environmentally unhealthy public school buildings to 
                minimum Federal health and safety building standards.
            ``(2) Exposure to violent entertainment.--A study regarding 
        how exposure to violent entertainment (such as in movies, music, 
        television, Internet content, video games, and arcade games) 
        affects children's cognitive development and educational 
        achievement.
            ``(3) Sexual abuse in schools.--A study regarding the 
        prevalence of sexual abuse in schools, including recommendations 
        and legislative remedies for addressing the problem of sexual 
        abuse in schools.

    ``(b) Completion Date.--The studies under subsection (a) shall be 
completed not later than 18 months after the date of enactment of the No 
Child Left Behind Act of 2001.
    ``(c) Public Dissemination.--The Secretary shall make the study 
conducted under subsection (a)(1) available to the public through the 
Educational Resources Information Center National Clearinghouse for 
Educational Facilities of the Department.

[[Page 115 STAT. 1814]]

    ``Subpart 2--Elementary and Secondary School Counseling Programs

``SEC. 5421. <<NOTE: 20 USC 7245.>>  ELEMENTARY AND SECONDARY SCHOOL 
            COUNSELING PROGRAMS.

    ``(a) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to local educational agencies to enable such agencies to 
        establish or expand elementary school and secondary school 
        counseling programs that comply with the requirements of 
        subsection (c)(2).
            ``(2) Special consideration.--In awarding grants under this 
        section, the Secretary shall give special consideration to 
        applications describing programs that--
                    ``(A) demonstrate the greatest need for new or 
                additional counseling services among children in the 
                schools served by the local educational agency, in part 
                by providing information on current ratios of students 
                to school counselors, students to school social workers, 
                and students to school psychologists;
                    ``(B) propose the most promising and innovative 
                approaches for initiating or expanding school 
                counseling; and
                    ``(C) show the greatest potential for replication 
                and dissemination.
            ``(3) Equitable distribution.--In awarding grants under this 
        section, the Secretary shall ensure an equitable geographic 
        distribution among the regions of the United States and among 
        local educational agencies located in urban, rural, and suburban 
        areas.
            ``(4) Duration.--A grant under this section shall be awarded 
        for a period not to exceed 3 years.
            ``(5) Maximum grant.--A grant awarded under this section 
        shall not exceed $400,000 for any fiscal year.
            ``(6) Supplement, not supplant.--Funds made available under 
        this section shall be used to supplement, and not supplant, 
        other Federal, State, or local funds used for providing school-
        based counseling and mental health services to students.

    ``(b) Applications.--
            ``(1) In general.--Each local educational agency desiring a 
        grant under this section shall submit an application to the 
        Secretary at such time, in such manner, and accompanied by such 
        information as the Secretary may reasonably require.
            ``(2) Contents.--Each application for a grant under this 
        section shall--
                    ``(A) describe the school population to be targeted 
                by the program, the particular counseling needs of such 
                population, and the current school counseling resources 
                available for meeting such needs;
                    ``(B) describe the activities, services, and 
                training to be provided by the program and the specific 
                approaches to be used to meet the needs described in 
                subparagraph (A);
                    ``(C) describe the methods to be used to evaluate 
                the outcomes and effectiveness of the program;

[[Page 115 STAT. 1815]]

                    ``(D) describe how the local educational agency will 
                involve community groups, social service agencies, and 
                other public and private entities in collaborative 
                efforts to enhance the program and promote school-linked 
                services integration;
                    ``(E) document that the local educational agency has 
                the personnel qualified to develop, implement, and 
                administer the program;
                    ``(F) describe how diverse cultural populations, if 
                applicable, will be served through the program;
                    ``(G) assure that the funds made available under 
                this subpart for any fiscal year will be used to 
                supplement, and not supplant, any other Federal, State, 
                or local funds used for providing school-based 
                counseling and mental health services to students; and
                    ``(H) assure that the applicant will appoint an 
                advisory board composed of interested parties, including 
                parents, teachers, school administrators, counseling 
                services providers described in subsection (c)(2)(D), 
                and community leaders, to advise the local educational 
                agency on the design and implementation of the program.

    ``(c) Use of Funds.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to local educational agencies to enable the local 
        educational agencies to initiate or expand elementary school or 
        secondary school counseling programs that comply with the 
        requirements of paragraph (2).
            ``(2) Requirements.--Each program funded under this section 
        shall--
                    ``(A) be comprehensive in addressing the counseling 
                and educational needs of all students;
                    ``(B) use a developmental, preventive approach to 
                counseling;
                    ``(C) increase the range, availability, quantity, 
                and quality of counseling services in the elementary 
                schools and secondary schools of the local educational 
                agency;
                    ``(D) expand counseling services through qualified 
                school counselors, school social workers, school 
                psychologists, other qualified psychologists, or child 
                and adolescent psychiatrists;
                    ``(E) use innovative approaches to increase 
                children's understanding of peer and family 
                relationships, work and self, decisionmaking, or 
                academic and career planning, or to improve peer 
                interaction;
                    ``(F) provide counseling services in settings that 
                meet the range of student needs;
                    ``(G) include in-service training appropriate to the 
                activities funded under this Act for teachers, 
                instructional staff, and appropriate school personnel, 
                including in-service training in appropriate 
                identification and early intervention techniques by 
                school counselors, school social workers, school 
                psychologists, other qualified psychologists, and child 
                and adolescent psychiatrists;
                    ``(H) involve parents of participating students in 
                the design, implementation, and evaluation of the 
                counseling program;

[[Page 115 STAT. 1816]]

                    ``(I) involve community groups, social service 
                agencies, or other public or private entities in 
                collaborative efforts to enhance the program and promote 
                school-linked integration of services;
                    ``(J) evaluate annually the effectiveness and 
                outcomes of the counseling services and activities 
                assisted under this section;
                    ``(K) ensure a team approach to school counseling in 
                the schools served by the local educational agency by 
                working toward ratios recommended by the American School 
                Health Association of one school counselor to 250 
                students, one school social worker to 800 students, and 
                one school psychologist to 1,000 students; and
                    ``(L) ensure that school counselors, school 
                psychologists, other qualified psychologists, school 
                social workers, or child and adolescent psychiatrists 
                paid from funds made available under this section spend 
                a majority of their time counseling students or in other 
                activities directly related to the counseling process.

    ``(d) Limitation on Administrative Costs.--Not more than 4 percent 
of the amounts made available under this section for any fiscal year may 
be used for administrative costs to carry out this section.
    ``(e) Definitions.--For the purpose of this section--
            ``(1) the term `child and adolescent psychiatrist' means an 
        individual who--
                    ``(A) possesses State medical licensure; and
                    ``(B) has completed residency training programs in 
                both general psychiatry and child and adolescent 
                psychiatry;
            ``(2) the term `other qualified psychologist' means an 
        individual who has demonstrated competence in counseling 
        children in a school setting and who--
                    ``(A) is licensed in psychology by the State in 
                which the individual works; and
                    ``(B) practices in the scope of the individual's 
                education, training, and experience with children in 
                school settings;
            ``(3) the term `school counselor' means an individual who 
        has documented competence in counseling children and adolescents 
        in a school setting and who--
                    ``(A) is licensed by the State or certified by an 
                independent professional regulatory authority;
                    ``(B) in the absence of such State licensure or 
                certification, possesses national certification in 
                school counseling or a specialty of counseling granted 
                by an independent professional organization; or
                    ``(C) holds a minimum of a master's degree in school 
                counseling from a program accredited by the Council for 
                Accreditation of Counseling and Related Educational 
                Programs or the equivalent;
            ``(4) the term `school psychologist' means an individual 
        who--
                    ``(A) has completed a minimum of 60 graduate 
                semester hours in school psychology from an institution 
                of higher education and has completed 1,200 clock hours 
                in a supervised school psychology internship, of which 
                600 hours are in the school setting;

[[Page 115 STAT. 1817]]

                    ``(B) is licensed or certified in school psychology 
                by the State in which the individual works; or
                    ``(C) in the absence of such State licensure or 
                certification, possesses national certification by the 
                National School Psychology Certification Board; and
            ``(5) the term `school social worker' means an individual 
        who--
                    ``(A) holds a master's degree in social work from a 
                program accredited by the Council on Social Work 
                Education; and
                    ``(B)(i) is licensed or certified by the State in 
                which services are provided; or
                    ``(ii) in the absence of such State licensure or 
                certification, possesses a national credential or 
                certification as a school social work specialist granted 
                by an independent professional organization.

    ``(f) <<NOTE: Deadline.>>  Report.--Not later than 2 years after 
assistance is made available to local educational agencies under 
subsection (c), the Secretary shall make publicly available a report--
            ``(1) evaluating the programs assisted pursuant to each 
        grant under this subpart; and
            ``(2) outlining the information from local educational 
        agencies regarding the ratios of students to--
                    ``(A) school counselors;
                    ``(B) school social workers; and
                    ``(C) school psychologists.

    ``(g) Special Rule.--
            ``(1) Amount equals or exceeds $40,000,000.--If the amount 
        of funds made available by the Secretary for this subpart equals 
        or exceeds $40,000,000, the Secretary shall award not less than 
        $40,000,000 in grants to local educational agencies to enable 
        the agencies to establish or expand counseling programs in 
        elementary schools.
            ``(2) Amount less than $40,000,000.--If the amount of funds 
        made available by the Secretary for this subpart is less than 
        $40,000,000, the Secretary shall award grants to local 
        educational agencies only to establish or expand counseling 
        programs in elementary schools.

            ``Subpart 3--Partnerships in Character Education

``SEC. 5431. <<NOTE: 20 USC 7247.>>  PARTNERSHIPS IN CHARACTER EDUCATION 
            PROGRAM.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to eligible entities for the design and implementation of 
        character education programs that--
                    ``(A) are able to be integrated into classroom 
                instruction and to be consistent with State academic 
                content standards; and
                    ``(B) are able to be carried out in conjunction with 
                other educational reform efforts.
            ``(2) Eligible entity.--In this section, the term `eligible 
        entity' means--
                    ``(A) a State educational agency in partnership 
                with--
                          ``(i) one or more local educational agencies; 
                      or
                          ``(ii) one or more--
                                    ``(I) local educational agencies; 
                                and

[[Page 115 STAT. 1818]]

                                    ``(II) nonprofit organizations or 
                                entities, including an institution of 
                                higher education;
                    ``(B) a local educational agency or consortium of 
                local educational agencies; or
                    ``(C) a local educational agency in partnership with 
                one or more nonprofit organizations or entities, 
                including an institution of higher education.
            ``(3) Duration.--Each grant under this section shall be 
        awarded for a period not to exceed 5 years, of which the 
        eligible entity may not use more than 1 year for planning and 
        program design.
            ``(4) Amount of grants for state educational agencies.--
        Subject to the availability of appropriations, the amount of a 
        grant made by the Secretary to a State educational agency under 
        this section shall not be less than $500,000 if the State 
        educational agency--
                    ``(A) is in a partnership described in paragraph 
                (2)(A); and
                    ``(B) meets such requirements as the Secretary may 
                establish under this section.

    ``(b) Contracts Under Program.--
            ``(1) Evaluation.--Each eligible entity awarded a grant 
        under this section may contract with outside sources, including 
        institutions of higher education and private and nonprofit 
        organizations, for the purposes of--
                    ``(A) evaluating the program for which the 
                assistance is made available;
                    ``(B) measuring the integration of such program into 
                the curriculum and teaching methods of schools where the 
                program is carried out; and
                    ``(C) measuring the success of such program in 
                fostering the elements of character selected by the 
                recipient under subsection (c).
            ``(2) Materials and program development.--Each eligible 
        entity awarded a grant under this section may contract with 
        outside sources, including institutions of higher education and 
        private and nonprofit organizations, for assistance in--
                    ``(A) developing secular curricula, materials, 
                teacher training, and other activities related to 
                character education; and
                    ``(B) integrating secular character education into 
                the curricula and teaching methods of schools where the 
                program is carried out.

    ``(c) Elements of Character.--
            ``(1) Selection.--
                    ``(A) In general.--Each eligible entity awarded a 
                grant under this section may select the elements of 
                character that will be taught under the program for 
                which the grant was awarded.
                    ``(B) Consideration of views.--In selecting elements 
                of character under subparagraph (A), the eligible entity 
                shall consider the views of the parents of the students 
                to be taught under the program and the views of the 
                students.
            ``(2) Example elements.--Elements of character selected 
        under this subsection may include any of the following:
                    ``(A) Caring.

[[Page 115 STAT. 1819]]

                    ``(B) Civic virtue and citizenship.
                    ``(C) Justice and fairness.
                    ``(D) Respect.
                    ``(E) Responsibility.
                    ``(F) Trustworthiness.
                    ``(G) Giving.
                    ``(H) Any other elements deemed appropriate by the 
                eligible entity.

    ``(d) Use of Funds by State Educational Agency Recipients.--Of the 
total funds received in any fiscal year under this section by an 
eligible entity that is a State educational agency--
            ``(1) not more than 3 percent of such funds may be used for 
        administrative purposes; and
            ``(2) the remainder of such funds may be used for--
                    ``(A) collaborative initiatives with and between 
                local educational agencies and schools;
                    ``(B) the preparation or purchase of materials, and 
                teacher training;
                    ``(C) providing assistance to local educational 
                agencies, schools, or institutions of higher education; 
                and
                    ``(D) technical assistance and evaluation.

    ``(e) Application.--
            ``(1) In general.--Each eligible entity desiring a grant 
        under this section shall submit an application to the Secretary 
        at such time and in such manner as the Secretary may require.
            ``(2) Required information.--Each application for a grant 
        under this section shall include (together with any other 
        information that the Secretary may require) information that--
                    ``(A) demonstrates that the program for which the 
                grant is sought has clear objectives that are based on 
                scientifically based research;
                    ``(B) describes any partnerships or collaborative 
                efforts among the organizations and entities of the 
                eligible entity;
                    ``(C) describes the activities that will be carried 
                out with the grant funds and how such activities will 
                meet the objectives described in subparagraph (A), 
                including--
                          ``(i) how parents, students, students with 
                      disabilities (including those with mental or 
                      physical disabilities), and other members of the 
                      community, including members of private and 
                      nonprofit organizations, will be involved in the 
                      design and implementation of the program and how 
                      the eligible entity will work with the larger 
                      community to increase the reach and promise of the 
                      program;
                          ``(ii) curriculum and instructional practices 
                      that will be used or developed; and
                          ``(iii) methods of teacher training and parent 
                      education that will be used or developed;
                    ``(D) describes how the program for which the grant 
                is sought will be linked to other efforts to improve 
                academic achievement, including--
                          ``(i) broader educational reforms that are 
                      being instituted by the eligible entity or its 
                      partners; and
                          ``(ii) State academic content standards;
                    ``(E) in the case of an eligible entity that is a 
                State educational agency, describes how the State 
                educational agency--

[[Page 115 STAT. 1820]]

                          ``(i) will provide technical and professional 
                      assistance to its local educational agency 
                      partners in the development and implementation of 
                      character education programs; and
                          ``(ii) will assist other interested local 
                      educational agencies that are not members of the 
                      original partnership in designing and establishing 
                      character education programs;
                    ``(F) describes how the eligible entity will 
                evaluate the success of its program--
                          ``(i) based on the objectives described in 
                      subparagraph (A); and
                          ``(ii) in cooperation with any national 
                      evaluation conducted pursuant to subsection 
                      (h)(2)(B)(iii); and
                    ``(G) assures that the eligible entity annually will 
                provide to the Secretary such information as may be 
                required to determine the effectiveness of the program.

    ``(f) Selection of Recipients.--
            ``(1) Peer review.--
                    ``(A) In general.--In selecting eligible entities to 
                receive grants under this section from among the 
                applicants for such grants, the Secretary shall use a 
                peer review process that includes the participation of 
                experts in the field of character education and 
                development.
                    ``(B) Use of funds.--The Secretary may use funds 
                appropriated under this section for the cost of carrying 
                out peer reviews under this paragraph.
            ``(2) Selection criteria.--Each selection under paragraph 
        (1) shall be made on the basis of the quality of the application 
        submitted, taking into consideration such factors as--
                    ``(A) the extent to which the program fosters 
                character in students and the potential for improved 
                student academic achievement;
                    ``(B) the extent and ongoing nature of parental, 
                student, and community involvement;
                    ``(C) the quality of the plan for measuring and 
                assessing success; and
                    ``(D) the likelihood that the objectives of the 
                program will be achieved.
            ``(3) Equitable distribution.--In making selections under 
        this subsection, the Secretary shall ensure, to the extent 
        practicable under paragraph (2), that the programs assisted 
        under this section are equitably distributed among the 
        geographic regions of the United States, and among urban, 
        suburban, and rural areas.

    ``(g) Participation by Private School Children and Teachers.--Each 
eligible entity that receives a grant under this section shall provide, 
to the extent feasible and appropriate, for the participation in 
programs and activities under this section of students and teachers in 
private elementary schools and secondary schools.
    ``(h) Evaluation and Program Development.--
            ``(1) State and local reporting and evaluation.--Each 
        eligible entity receiving a grant under this section shall 
        submit to the Secretary a comprehensive evaluation of the 
        program assisted under this section, including its impact on 
        students,

[[Page 115 STAT. 1821]]

        students with disabilities (including those with mental or 
        physical disabilities), teachers, administrators, parents, and 
        others--
                    ``(A) by the end of the second year of the program; 
                and
                    ``(B) <<NOTE: Deadline.>>  not later than 1 year 
                after completion of the grant period.
            ``(2) National research, dissemination, and evaluation.--
                    ``(A) In general.--
                          ``(i) Authorization.--The Secretary is 
                      authorized to award grants to, or enter into 
                      contracts or cooperative agreements with, State 
                      educational agencies or local educational 
                      agencies, institutions of higher education, tribal 
                      organizations, or other public or private agencies 
                      or organizations to carry out research, 
                      development, dissemination, technical assistance, 
                      and evaluation activities that support or inform 
                      State and local character education programs.
                          ``(ii) Reservation of funds.--The Secretary 
                      shall reserve not more than 5 percent of the funds 
                      made available under this section to carry out 
                      this paragraph.
                    ``(B) Uses.--Funds made available under subparagraph 
                (A) may be used for the following:
                          ``(i) Conducting research and development 
                      activities that focus on matters such as--
                                    ``(I) the extent to which schools 
                                are undertaking character education 
                                initiatives;
                                    ``(II) the effectiveness of 
                                instructional models for all students, 
                                including students with disabilities 
                                (including those with mental or physical 
                                disabilities);
                                    ``(III) materials and curricula for 
                                use by programs in character education;
                                    ``(IV) models of professional 
                                development in character education;
                                    ``(V) the development of measures of 
                                effectiveness for character education 
                                programs (which may include the factors 
                                described in paragraph (3)); and
                                    ``(VI) the effectiveness of State 
                                and local programs receiving funds under 
                                this section.
                          ``(ii) Providing technical assistance to State 
                      and local programs, particularly on matters of 
                      program evaluation.
                          ``(iii) Conducting evaluations of State and 
                      local programs receiving funding under this 
                      section, that may be conducted through a national 
                      clearinghouse under clause (iv).
                          ``(iv) Compiling and disseminating, through a 
                      national clearinghouse or other means--
                                    ``(I) information on model character 
                                education programs;
                                    ``(II) information about high 
                                quality character education materials 
                                and curricula;
                                    ``(III) research findings in the 
                                area of character education and 
                                character development; and

[[Page 115 STAT. 1822]]

                                    ``(IV) any other information that 
                                will be useful to character education 
                                program participants nationwide, 
                                including educators, parents, and 
                                administrators.
                    ``(C) Partnerships.--In carrying out national 
                activities under this paragraph, the Secretary may enter 
                into partnerships with national nonprofit character 
                education organizations and institutions of higher 
                education with expertise and successful experience in 
                implementing--
                          ``(i) character education programs that had an 
                      effective impact on schools, students, students 
                      with disabilities (including those with mental or 
                      physical disabilities), and teachers; or
                          ``(ii) character education program evaluation 
                      and research.
                    ``(D) Partnership for activities under subparagraph 
                (B)(iv).--In carrying out national activities under 
                subparagraph (B)(iv), the Secretary may enter into a 
                partnership with a national nonprofit character 
                education organization that will disseminate information 
                to educators, parents, administrators, and others 
                nationwide, including information about the range of 
                model character education programs, materials, and 
                curricula.
                    ``(E) Report.--Each entity awarded a grant or 
                entering into a contract or cooperative agreement under 
                this paragraph shall submit an annual report to the 
                Secretary that--
                          ``(i) describes the entity's progress in 
                      carrying out research, development, dissemination, 
                      evaluation, and technical assistance under this 
                      paragraph;
                          ``(ii) identifies unmet and future information 
                      needs in the field of character education; and
                          ``(iii) if applicable, describes the progress 
                      of the entity in carrying out the requirements of 
                      subparagraph (B)(iv), including a listing of--
                                    ``(I) the number of requests for 
                                information received by the entity in 
                                the course of carrying out such 
                                requirements;
                                    ``(II) the types of organizations 
                                making such requests; and
                                    ``(III) the types of information 
                                requested.
            ``(3) Factors.--Factors that may be considered in evaluating 
        the success of programs funded under this section include the 
        following:
                    ``(A) Discipline issues.
                    ``(B) Student academic achievement.
                    ``(C) Participation in extracurricular activities.
                    ``(D) Parental and community involvement.
                    ``(E) Faculty and administration involvement.
                    ``(F) Student and staff morale.
                    ``(G) Overall improvements in school climate for all 
                students, including students with disabilities 
                (including those with mental or physical disabilities).

    ``(i) Permissive Match.--
            ``(1) In general.--The Secretary may require eligible 
        entities to match funds awarded under this section with non-
        Federal funds, except that the amount of the match may not 
        exceed the amount of the grant award.

[[Page 115 STAT. 1823]]

            ``(2) Sliding scale.--The amount of a match under paragraph 
        (1) shall be established based on a sliding scale that takes 
        into account--
                    ``(A) the poverty of the population to be targeted 
                by the eligible entity; and
                    ``(B) the ability of the eligible entity to obtain 
                funding for the match.
            ``(3) In-kind contributions.--The Secretary shall permit 
        eligible entities to match funds in whole or in part with in-
        kind contributions.
            ``(4) Consideration.--Notwithstanding this subsection, the 
        Secretary in making awards under this section shall not consider 
        the ability of an eligible entity to match funds.

                ``Subpart 4--Smaller Learning Communities

``SEC. 5441. <<NOTE: 20 USC 7249.>>  SMALLER LEARNING COMMUNITIES.

    ``(a) Grant Authority.--The Secretary is authorized to award grants 
to local educational agencies to enable the agencies to create a smaller 
learning community or communities.
    ``(b) Application.--Each local educational agency desiring a grant 
under this subpart shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require. The application shall include descriptions of the 
following:
            ``(1) Strategies and methods the local educational agency 
        will use to create the smaller learning community or 
        communities.
            ``(2) Curriculum and instructional practices, including any 
        particular themes or emphases, to be used in the smaller 
        learning environment.
            ``(3) The extent of involvement of teachers and other school 
        personnel in investigating, designing, implementing, and 
        sustaining the smaller learning community or communities.
            ``(4) The process to be used for involving students, 
        parents, and other stakeholders in the development and 
        implementation of the smaller learning community or communities.
            ``(5) Any cooperation or collaboration among community 
        agencies, organizations, businesses, and others to develop or 
        implement a plan to create the smaller learning community or 
        communities.
            ``(6) The training and professional development activities 
        that will be offered to teachers and others involved in the 
        activities assisted under this subpart.
            ``(7) The objectives of the activities assisted under this 
        subpart, including a description of how such activities will 
        better enable all students to reach challenging State academic 
        content standards and State student academic achievement 
        standards.
            ``(8) The methods by which the local educational agency will 
        assess progress in meeting the objectives described in paragraph 
        (7).
            ``(9) If the smaller learning community or communities exist 
        as a school-within-a-school, the relationship, including 
        governance and administration, of the smaller learning community 
        to the remainder of the school.

[[Page 115 STAT. 1824]]

            ``(10) The administrative and managerial relationship 
        between the local educational agency and the smaller learning 
        community or communities, including how such agency will 
        demonstrate a commitment to the continuity of the smaller 
        learning community or communities (including the continuity of 
        student and teacher assignment to a particular learning 
        community).
            ``(11) How the local educational agency will coordinate or 
        use funds provided under this subpart with other funds provided 
        under this Act or other Federal laws.
            ``(12) The grade levels or ages of students who will 
        participate in the smaller learning community or communities.
            ``(13) The method of placing students in the smaller 
        learning community or communities, such that students are not 
        placed according to ability or any other measure, but are placed 
        at random or by their own choice, and not pursuant to testing or 
        other judgments.

    ``(c) Authorized Activities.--Funds under this section may be used 
for one or more of the following:
            ``(1) To study--
                    ``(A) the feasibility of creating the smaller 
                learning community or communities; and
                    ``(B) effective and innovative organizational and 
                instructional strategies that will be used in the 
                smaller learning community or communities.
            ``(2) To research, develop, and implement--
                    ``(A) strategies for creating the smaller learning 
                community or communities; and
                    ``(B) strategies for effective and innovative 
                changes in curriculum and instruction, geared to 
                challenging State academic content standards and State 
                student academic achievement standards.
            ``(3) To provide professional development for school staff 
        in innovative teaching methods that--
                    ``(A) challenge and engage students; and
                    ``(B) will be used in the smaller learning community 
                or communities.
            ``(4) To develop and implement strategies to include 
        parents, business representatives, local institutions of higher 
        education, community-based organizations, and other community 
        members in the smaller learning communities as facilitators of 
        activities that enable teachers to participate in professional 
        development activities and provide links between students and 
        their community.

   ``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution 
                                 Program

``SEC. 5451. <<NOTE: 20 USC 7251.>>  INEXPENSIVE BOOK DISTRIBUTION 
            PROGRAM FOR READING MOTIVATION.

    ``(a) Purpose.--The purpose of this subpart is to establish and 
implement a model partnership between a governmental entity and a 
private entity, to help prepare young children for reading and to 
motivate older children to read, through the distribution of inexpensive 
books. Local reading motivation programs assisted under this section 
shall use such assistance to provide books, training for volunteers, 
motivational activities, and other essential

[[Page 115 STAT. 1825]]

literacy resources and shall assign the highest priority to serving the 
youngest and neediest children in the United States.
    ``(b) Authorization.--The <<NOTE: Contracts.>>  Secretary is 
authorized to enter into a contract with Reading Is Fundamental (RIF) 
(hereafter in this section referred to as the `contractor') to support 
and promote programs, which include the distribution of inexpensive 
books to young and school-age children, that motivate children to read.

    ``(c) Requirements of Contract.--Any contract entered into under 
subsection (b) shall contain each of the following:
            ``(1) A provision that the contractor will enter into 
        subcontracts with local private nonprofit groups or 
        organizations, or with public agencies, under which each 
        subcontractor will agree to establish, operate, and provide the 
        non-Federal share of the cost of reading motivation programs 
        that include the distribution of books, by gift (to the extent 
        feasible) or by loan, to children from birth through secondary 
        school age, including children in family literacy programs.
            ``(2) A provision that funds made available to 
        subcontractors will be used only to pay the Federal share of the 
        cost of such programs.
            ``(3) A provision that, in selecting subcontractors for 
        initial funding, the contractor will give priority to programs 
        that will serve a substantial number or percentage of children 
        with special needs, such as the following:
                    ``(A) Low-income children, particularly in high-
                poverty areas.
                    ``(B) Children at risk of school failure.
                    ``(C) Children with disabilities.
                    ``(D) Foster children.
                    ``(E) Homeless children.
                    ``(F) Migrant children.
                    ildren without access to libraries.
                    ``(H) Institutionalized or incarcerated children.
                    ``(I) Children whose parents are institutionalized 
                or incarcerated.
            ``(4) A provision that the contractor will provide such 
        training and technical assistance to subcontractors as may be 
        necessary to carry out the purpose of this subpart.
            ``(5) A provision that the contractor will annually report 
        to the Secretary the number, and a description, of programs 
        funded under paragraph (3).
            ``(6) Such other terms and conditions as the Secretary 
        determines to be appropriate to ensure the effectiveness of such 
        programs.

    ``(d) Restriction on Payments.--The Secretary shall make no payment 
of the Federal share of the cost of acquiring and distributing books 
under any contract under this section unless the Secretary determines 
that the contractor or subcontractor, as the case may be, has made 
arrangements with book publishers or distributors to obtain books at 
discounts at least as favorable as discounts that are customarily given 
by such publisher or distributor for book purchases made under similar 
circumstances in the absence of Federal assistance.
    ``(e) Special Rules for Certain Subcontractors.--
            ``(1) Funds from other federal sources.--Subcontractors 
        operating programs under this section in low-income

[[Page 115 STAT. 1826]]

        communities with a substantial number or percentage of children 
        with special needs, as described in subsection (c)(3), may use 
        funds from other Federal sources to pay the non-Federal share of 
        the cost of the program, if those funds do not comprise more 
        than 50 percent of the non-Federal share of the funds used for 
        the cost of acquiring and distributing books.
            ``(2) Waiver authority.--Notwithstanding subsection (c), the 
        contractor may waive, in whole or in part, the requirement in 
        subsection (c)(1) for a subcontractor, if the subcontractor 
        demonstrates that it would otherwise not be able to participate 
        in the program, and enters into an agreement with the contractor 
        with respect to the amount of the non-Federal share to which the 
        waiver will apply. In a case in which such a waiver is granted, 
        the requirement in subsection (c)(2) shall not apply.

    ``(f) Multi-Year Contracts.--The contractor may enter into a multi-
year subcontract under this section, if--
            ``(1) the contractor believes that such subcontract will 
        provide the subcontractor with additional leverage in seeking 
        local commitments; and
            ``(2) the subcontract does not undermine the finances of the 
        national program.

    ``(g) Federal Share Defined.--In this section, the term `Federal 
share' means, with respect to the cost to a subcontractor of purchasing 
books to be paid for under this section, 75 percent of such costs to the 
subcontractor, except that the Federal share for programs serving 
children of migrant or seasonal farmworkers shall be 100 percent of such 
costs to the subcontractor.

``Subpart <<NOTE: Jacob K. Javits Gifted and Talented Students Education 
Act of 2001.>>  6--Gifted and Talented Students

``SEC. 5461. <<NOTE: 20 USC 7253.>>  SHORT TITLE.

    ``This subpart may be cited as the `Jacob K. Javits Gifted and 
Talented Students Education Act of 2001'.

``SEC. 5462. <<NOTE: 20 USC 7253a.>>  PURPOSE.

    ``The purpose of this subpart is to initiate a coordinated program 
of scientifically based research, demonstration projects, innovative 
strategies, and similar activities designed to build and enhance the 
ability of elementary schools and secondary schools nationwide to meet 
the special educational needs of gifted and talented students.

``SEC. 5463. <<NOTE: 20 USC 7253b.>>  RULE OF CONSTRUCTION.

    Nothing in this subpart shall be construed to prohibit a recipient 
of funds under this subpart from serving gifted and talented students 
simultaneously with students with similar educational needs, in the same 
educational settings, where appropriate.

``SEC. 5464. <<NOTE: 20 USC 7253c.>>  AUTHORIZED PROGRAMS.

    ``(a) Establishment of Program.--
            ``(1) In general.--The Secretary (after consultation with 
        experts in the field of the education of gifted and talented 
        students) is authorized to make grants to, or enter into 
        contracts with, State educational agencies, local educational 
        agencies, institutions of higher education, other public 
        agencies, and other private agencies and organizations 
        (including Indian tribes and Indian organizations (as such terms 
        are defined

[[Page 115 STAT. 1827]]

        in section 4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b)) and Native Hawaiian 
        organizations) to assist such agencies, institutions, and 
        organizations in carrying out programs or projects authorized by 
        this subpart that are designed to meet the educational needs of 
        gifted and talented students, including the training of 
        personnel in the education of gifted and talented students and 
        in the use, where appropriate, of gifted and talented services, 
        materials, and methods for all students.
            ``(2) Application.--Each entity seeking assistance under 
        this subpart shall submit an application to the Secretary at 
        such time, in such manner, and containing such information as 
        the Secretary may reasonably require. Each such application 
        shall describe how--
                    ``(A) the proposed gifted and talented services, 
                materials, and methods can be adapted, if appropriate, 
                for use by all students; and
                    ``(B) the proposed programs can be evaluated.

    ``(b) Use of Funds.--Programs and projects assisted under this 
section may include each of the following:
            ``(1) Conducting--
                    ``(A) scientifically based research on methods and 
                techniques for identifying and teaching gifted and 
                talented students and for using gifted and talented 
                programs and methods to serve all students; and
                    ``(B) program evaluations, surveys, and the 
                collection, analysis, and development of information 
                needed to accomplish the purpose of this subpart.
            ``(2) Carrying out professional development (including 
        fellowships) for personnel (including leadership personnel) 
        involved in the education of gifted and talented students.
            ``(3) Establishing and operating model projects and 
        exemplary programs for serving gifted and talented students, 
        including innovative methods for identifying and educating 
        students who may not be served by traditional gifted and 
        talented programs (such as summer programs, mentoring programs, 
        service learning programs, and cooperative programs involving 
        business, industry, and education).
            ``(4) Implementing innovative strategies, such as 
        cooperative learning, peer tutoring, and service learning.
            ``(5) Carrying out programs of technical assistance and 
        information dissemination, including assistance and information 
        with respect to how gifted and talented programs and methods, 
        where appropriate, may be adapted for use by all students.
            ``(6) Making materials and services available through State 
        regional educational service centers, institutions of higher 
        education, or other entities.
            ``(7) Providing funds for challenging, high-level course 
        work, disseminated through technologies (including distance 
        learning), for individual students or groups of students in 
        schools and local educational agencies that would not otherwise 
        have the resources to provide such course work.

    ``(c) Special Rule.--To the extent that funds appropriated to carry 
out this subpart for a fiscal year beginning with fiscal year 2002 
exceed such funds appropriated for fiscal year 2001, the Secretary shall 
use such excess funds to award grants, on a competitive

[[Page 115 STAT. 1828]]

basis, to State educational agencies, local educational agencies, or 
both, to implement activities described in subsection (b).
    ``(d) Center for Research and Development.--
            ``(1) In General.--The Secretary (after consultation with 
        experts in the field of the education of gifted and talented 
        students) shall establish a National Research Center for the 
        Education of Gifted and Talented Children and Youth through 
        grants to, or contracts with, one or more institutions of higher 
        education or State educational agencies, or a combination or 
        consortium of such institutions and agencies and other public or 
        private agencies and organizations, for the purpose of carrying 
        out activities described in subsection (b).
            ``(2) Director.--The National Center shall be headed by a 
        Director. The Secretary may authorize the Director to carry out 
        such functions of the National Center as may be agreed upon 
        through arrangements with institutions of higher education, 
        State educational agencies, local educational agencies, or other 
        public or private agencies and organizations.
            ``(3) Funding.--The Secretary may use not more than 30 
        percent of the funds made available under this subpart for 
        fiscal year 2001 to carry out this subsection.

    ``(e) Coordination.--Scientifically based research activities 
supported under this subpart--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to ensure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by such Office; and
            ``(2) may include collaborative scientifically based 
        research activities which are jointly funded and carried out 
        with such Office.

``SEC. 5465. <<NOTE: 20 USC 7253d.>>  PROGRAM PRIORITIES.

    ``(a) General Priority.--In carrying out this subpart, the Secretary 
shall give highest priority to programs and projects designed to develop 
new information that--
            ``(1) improves the capability of schools to plan, conduct, 
        and improve programs to identify and serve gifted and talented 
        students; and
            ``(2) assists schools in the identification of, and 
        provision of services to, gifted and talented students 
        (including economically disadvantaged individuals, individuals 
        with limited English proficiency, and individuals with 
        disabilities) who may not be identified and served through 
        traditional assessment methods.

    ``(b) Service Priority.--The Secretary shall ensure that not less 
than 50 percent of the applications approved under section 5464(a)(2) in 
a fiscal year address the priority described in subsection (a)(2).

``SEC. 5466. <<NOTE: 20 USC 7253e.>>  GENERAL PROVISIONS.

    ``(a) Participation of Private School Children and Teachers.--In 
making grants and entering into contracts under this subpart, the 
Secretary shall ensure, where appropriate, that provision is made for 
the equitable participation of students and teachers in private 
nonprofit elementary schools and secondary schools, including the 
participation of teachers and other personnel in professional 
development programs serving such students.

[[Page 115 STAT. 1829]]

    ``(b) Review, Dissemination, and Evaluation.--The Secretary shall--
            ``(1) use a peer review process in reviewing applications 
        under this subpart;
            ``(2) ensure that information on the activities and results 
        of programs and projects funded under this subpart is 
        disseminated to appropriate State educational agencies, local 
        educational agencies, and other appropriate organizations, 
        including nonprofit private organizations; and
            ``(3) <<NOTE: Deadline.>>  evaluate the effectiveness of 
        programs under this subpart in accordance with section 9601, in 
        terms of the impact on students traditionally served in separate 
        gifted and talented programs and on other students, and submit 
        the results of such evaluation to Congress not later than 2 
        years after the date of enactment of the No Child Left Behind 
        Act of 2001.

    ``(c) Program Operations.--The Secretary shall ensure that the 
programs under this subpart are administered within the Department by a 
person who has recognized professional qualifications and experience in 
the field of the education of gifted and talented students and who 
shall--
            ``(1) administer and coordinate the programs authorized 
        under this subpart;
            ``(2) serve as a focal point of national leadership and 
        information on the educational needs of gifted and talented 
        students and the availability of educational services and 
        programs designed to meet such needs;
            ``(3) assist the Assistant Secretary for Educational 
        Research and Improvement in identifying research priorities that 
        reflect the needs of gifted and talented students; and
            ``(4) shall disseminate, and consult on, the information 
        developed under this subpart with other offices within the 
        Department.

``Subpart <<NOTE: Star Schools Act.>>  7--Star Schools Program

``SEC. 5471. <<NOTE: 20 USC 7255.>>  SHORT TITLE.

    ``This subpart may be cited as the `Star Schools Act'.

``SEC. 5472. <<NOTE: 20 USC 7255a.>>  PURPOSES.

    ``The purposes of this subpart are the following:
            ``(1) To encourage improved instruction in mathematics, 
        science, and foreign languages as well as other subjects (such 
        as literacy skills and vocational education).
            ``(2) To serve underserved populations, including 
        disadvantaged, illiterate, limited English proficient 
        populations, and individuals with disabilities through a Star 
        Schools program under which grants are made to eligible 
        telecommunication partnerships to enable such partnerships--
                    ``(A) to develop, construct, acquire, maintain, and 
                operate telecommunications audio and visual facilities 
                and equipment;
                    ``(B) to develop and acquire educational and 
                instructional programming; and
                    ``(C) to obtain technical assistance for the use of 
                such facilities and instructional programming.

[[Page 115 STAT. 1830]]

``SEC. 5473. <<NOTE: 20 USC 7255b.>>  GRANT PROGRAM AUTHORIZED.

    ``(a) Authorization.--The Secretary, in conjunction with the Office 
of Educational Technology, is authorized to make grants, in accordance 
with the provisions of this subpart, to eligible entities to pay the 
Federal share of the cost of the following:
            ``(1) Development, construction, acquisition, maintenance, 
        and operation of telecommunications facilities and equipment.
            ``(2) Development and acquisition of live, interactive 
        instructional programming.
            ``(3) Development and acquisition of preservice and 
        inservice teacher training programs based on established 
        research regarding teacher-to-teacher mentoring, and ongoing, 
        in-class instruction.
            ``(4) Establishment of teleconferencing facilities and 
        resources for making interactive training available to teachers.
            ``(5) Obtaining technical assistance.
            ``(6) Coordination of the design and connectivity of 
        telecommunications networks to reach the greatest number of 
        schools.

    ``(b) Duration and Amount.--
            ``(1) In general.--A grant under this section may not 
        exceed--
                    ``(A) 5 years in duration (subject to subsection 
                (c)); and
                    ``(B) $10,000,000 in any single fiscal year.

    ``(c) Renewal.--
            ``(1) In general.--Grants awarded under subsection (a) may 
        be renewed for a single additional period of 3 years.
            ``(2) Continuing Eligibility.--In order to be eligible to 
        receive a grant renewal under this subsection, a grant recipient 
        shall demonstrate, to the satisfaction of the Secretary, in an 
        addendum to its application submitted under section 5474, that 
        the grant recipient will--
                    ``(A) continue to provide services in the subject 
                areas and geographic areas assisted with funds received 
                under this subpart for the previous grant period; and
                    ``(B) use all grant funds received under this 
                subpart for the 3 year renewal period to provide 
                expanded services by--
                          ``(i) increasing the number of students, 
                      schools, or school districts served by the courses 
                      of instruction assisted under this part in the 
                      previous fiscal year;
                          ``(ii) providing new courses of instruction; 
                      and
                          ``(iii) serving new populations of underserved 
                      individuals, such as children or adults who are 
                      disadvantaged, have limited English proficiency, 
                      are individuals with disabilities, are illiterate, 
                      or lack secondary school diplomas or their 
                      recognized equivalent.
            ``(3) Supplement, not supplant.--Grant funds received under 
        this subsection shall be used to supplement, and not supplant, 
        services provided by the grant recipient under this subpart in 
        the previous fiscal year.

    ``(d) Reservations.--
            ``(1) Instructional programming.--At least 25 percent of the 
        funds made available to the Secretary for any fiscal year under 
        this subpart shall be used for the cost of instructional 
        programming.

[[Page 115 STAT. 1831]]

            ``(2) Local educational agency assistance.--At least 50 
        percent of the funds available in any fiscal year under this 
        subpart shall be used for the cost of facilities, equipment, 
        teacher training or retraining, technical assistance, or 
        programming, for local educational agencies that are eligible to 
        receive assistance under part A of title I.

    ``(e) Federal Share.--
            ``(1) Amount.--The Federal share of the cost of projects 
        funded under this section shall not exceed the following 
        amounts:
                    ``(A) 75 percent for the first and second years for 
                which an eligible telecommunications partnership 
                receives a grant under this subpart.
                    ``(B) 60 percent for the third and fourth such 
                years.
                    ``(C) 50 percent for the fifth such year.
            ``(2) Reduction or waiver.--The Secretary may reduce or 
        waive the corresponding non-Federal share under paragraph (1) 
        upon a showing of financial hardship.

    ``(f) Required local educational agency participation.--The 
Secretary is authorized to make a grant under this section to any 
eligible entity, if at least one local educational agency is 
participating in the proposed program.
    ``(g) Assistance Obtaining Satellite Time.--The Secretary may assist 
recipients of grants made under this section in acquiring satellite 
time, where appropriate, as economically as possible.

``SEC. 5474. <<NOTE: 20 USC 7255c.>>  APPLICATIONS.

    ``(a) Submission.--Each eligible entity that desires to receive a 
grant under section 5473 shall submit an application to the Secretary, 
at such time, in such manner, and containing or accompanied by such 
information as the Secretary may reasonably require.
    ``(b) Contents.--An application submitted under subsection (a) shall 
include each of the following:
            ``(1) A description of how the proposed program will assist 
        all students to have an opportunity to meet challenging State 
        academic achievement standards, how such program will assist 
        State and local educational reform efforts, and how such program 
        will contribute to creating a high-quality system of educational 
        development.
            ``(2) A description of the telecommunications facilities and 
        equipment and technical assistance for which assistance is 
        sought, which may include--
                    ``(A) the design, development, construction, 
                acquisition, maintenance, and operation of State or 
                multistate educational telecommunications networks and 
                technology resource centers;
                    ``(B) microwave, fiber optics, cable, and satellite 
                transmission equipment or any combination thereof;
                    ``(C) reception facilities;
                    ``(D) satellite time;
                    ``(E) production facilities;
                    ``(F) other telecommunications equipment capable of 
                serving a wide geographic area;
                    ``(G) the provision of training services to 
                instructors who will be using the facilities and 
                equipment for which

[[Page 115 STAT. 1832]]

                assistance is sought, including training in using such 
                facilities and equipment and training in integrating 
                programs into the classroom curriculum; and
                    ``(H) the development of educational and related 
                programming for use on a telecommunications network.
            ``(3) In the case of an application for assistance for 
        instructional programming, a description of the types of 
        programming that will be developed to enhance instruction and 
        training and provide an assurance that such programming will be 
        designed in consultation with professionals (including classroom 
        teachers) who are experts in the applicable subject matter and 
        grade level.
            ``(4) A description of how the eligible entity has engaged 
        in sufficient survey and analysis of the area to be served to 
        ensure that the services offered by the eligible entity will 
        increase the availability of courses of instruction in English, 
        mathematics, science, foreign languages, arts, history, 
        geography, or other disciplines.
            ``(5) A description of the professional development policies 
        for teachers and other school personnel to be implemented to 
        ensure the effective use of the telecommunications facilities 
        and equipment for which assistance is sought.
            ``(6) A description of the manner in which historically 
        underserved students (such as students from low-income families, 
        limited English proficient students, students with disabilities, 
        or students who have low literacy skills) and their families, 
        will participate in the benefits of the telecommunications 
        facilities, equipment, technical assistance, and programming 
        assisted under this subpart.
            ``(7) A description of how existing telecommunications 
        equipment, facilities, and services, where available, will be 
        used.
            ``(8) An assurance that the financial interest of the United 
        States in the telecommunications facilities and equipment will 
        be protected for the useful life of such facilities and 
        equipment.
            ``(9) An assurance that a significant portion of any 
        facilities and equipment, technical assistance, and programming 
        for which assistance is sought for elementary schools and 
        secondary schools will be made available to schools or local 
        educational agencies that have a high number or percentage of 
        children eligible to be counted under part A of title I.
            ``(10) An assurance that the applicant will use the funds 
        provided under this subpart to supplement, and not supplant, 
        funds available for the purposes of this subpart.
            ``(11) A description of how funds received under this 
        subpart will be coordinated with funds received for educational 
        technology in the classroom.
            ``(12) A description of the activities or services for which 
        assistance is sought, such as--
                    ``(A) providing facilities, equipment, training 
                services, and technical assistance;
                    ``(B) making programs accessible to students with 
                disabilities through mechanisms such as closed 
                captioning and descriptive video services;
                    ``(C) linking networks around issues of national 
                importance (such as elections) or to provide information 
                about

[[Page 115 STAT. 1833]]

                employment opportunities, job training, or student and 
                other social service programs;
                    ``(D) sharing curriculum resources between networks 
                and development of program guides which demonstrate 
                cooperative, cross-network listing of programs for 
                specific curriculum areas;
                    ``(E) providing teacher and student support 
                services, including classroom and training support 
                materials which permit student and teacher involvement 
                in the live interactive distance learning telecasts;
                    ``(F) incorporating community resources, such as 
                libraries and museums, into instructional programs;
                    ``(G) providing professional development for 
                teachers, including, as appropriate, training to early 
                childhood development and Head Start teachers and staff 
                and vocational education teachers and staff, and adult 
                and family educators;
                    ``(H) providing programs for adults to maximize the 
                use of telecommunications facilities and equipment;
                    ``(I) providing teacher training on proposed or 
                established models of exemplary academic content 
                standards in mathematics and science and other 
                disciplines as such standards are developed; and
                    ``(J) providing parent education programs during and 
                after the regular school day which reinforce a student's 
                course of study and actively involve parents in the 
                learning process.
            ``(13) A description of how the proposed program as a whole 
        will be financed and how arrangements for future financing will 
        be developed before the program expires.
            ``(14) An assurance that a significant portion of any 
        facilities, equipment, technical assistance, and programming for 
        which assistance is sought for elementary schools and secondary 
        schools will be made available to schools in local educational 
        agencies that have a high percentage of children counted for the 
        purpose of part A of title I.
            ``(15) An assurance that the applicant will provide such 
        information and cooperate in any evaluation that the Secretary 
        may conduct under this subpart.
            ``(16) Such additional assurances as the Secretary may 
        reasonably require.

    ``(c) Approval.--In approving applications submitted under 
subsection (a) for grants under section 5473, the Secretary shall--
            ``(1) to the extent feasible, ensure an equitable geographic 
        distribution of services provided under this subpart.
            ``(2) give priority to applications describing programs 
        that--
                    ``(A) propose high-quality plans, will provide 
                instruction consistent with State academic content 
                standards, or will otherwise provide significant and 
                specific assistance to States and local educational 
                agencies undertaking systemic education reform;
                    ``(B) will provide services to programs serving 
                adults, especially parents, with low levels of literacy;
                    ``(C) will serve schools with significant numbers of 
                children counted for the purposes of part A of title I;
                    ``(D) ensure that the eligible entity will--

[[Page 115 STAT. 1834]]

                          ``(i) serve the broadest range of 
                      institutions, programs providing instruction 
                      outside of the school setting, programs serving 
                      adults, especially parents, with low levels of 
                      literacy, institutions of higher education, 
                      teacher training centers, research institutes, and 
                      private industry;
                          ``(ii) have substantial academic and teaching 
                      capabilities, including the capability of 
                      training, retraining, and inservice upgrading of 
                      teaching skills and the capability to provide 
                      professional development;
                          ``(iii) provide a comprehensive range of 
                      courses for educators to teach instructional 
                      strategies for students with different skill 
                      levels;
                          ``(iv) provide training to participating 
                      educators in ways to integrate telecommunications 
                      courses into existing school curriculum;
                          ``(v) provide instruction for students, 
                      teachers, and parents;
                          ``(vi) serve a multistate area; and
                          ``(vii) give priority to the provision of 
                      equipment and linkages to isolated areas; and
                    ``(E) involve a telecommunications entity (such as a 
                satellite, cable, telephone, computer, or public or 
                private television stations) participating in the 
                eligible entity and donating equipment or in-kind 
                services for telecommunications linkages.

``SEC. 5475. <<NOTE: 20 USC 7255d.>>  OTHER GRANT ASSISTANCE.

    ``(a) Special Statewide Network.--
            ``(1) In general.--The Secretary, in conjunction with the 
        Office of Educational Technology, may provide assistance to a 
        statewide telecommunications network if such network--
                    ``(A) provides 2-way full-motion interactive video 
                and audio communications;
                    ``(B) links together public colleges and 
                universities and secondary schools throughout the State; 
                and
                    ``(C) meets any other requirements determined 
                appropriate by the Secretary.
            ``(2) Matching contribution.--A statewide telecommunications 
        network assisted under paragraph (1) shall contribute, either 
        directly or through private contributions, non-Federal funds 
        equal to not less than 50 percent of the cost of such network.

    ``(b) Special Local Network.--
            ``(1) In general.--The Secretary is authorized to provide 
        assistance, on a competitive basis, to a local educational 
        agency, or a consortium of such agencies, to enable such agency 
        or consortium to establish a high-technology demonstration 
        program.
            ``(2) Program requirements.--A high-technology demonstration 
        program assisted under paragraph (1) shall--
                    ``(A) include 2-way full-motion interactive video, 
                audio, and text communications;
                    ``(B) link together elementary schools and secondary 
                schools, colleges, and universities;
                    ``(C) provide parent participation and family 
                programs;
                    ``(D) include a staff development program; and

[[Page 115 STAT. 1835]]

                    ``(E) have a significant contribution and 
                participation from business and industry.
            ``(3) Matching requirement.--A local educational agency or 
        consortium receiving a grant under paragraph (1) shall provide, 
        either directly or through private contributions, non-Federal 
        matching funds equal to not less than 50 percent of the amount 
        of the grant.

    ``(c) Telecommunications Programs for Continuing Education.--
            ``(1) Authority.--The Secretary is authorized to award 
        grants, on a competitive basis, to eligible entities to develop 
        and operate one or more programs that provide online access to 
        educational resources in support of continuing education and 
        curriculum requirements relevant to achieving a secondary school 
        diploma or its recognized equivalent. The program authorized by 
        this subsection shall be designed to advance adult literacy, 
        secondary school completion, and the acquisition of specified 
        competency by the end of the 12th grade.
            ``(2) Applications.--Each eligible entity desiring a grant 
        under this subsection shall submit an application to the 
        Secretary. The application shall include each of the following:
                    ``(A) A demonstration that the applicant will use 
                publicly funded or free public telecommunications 
                infrastructure to deliver video, voice, and data in an 
                integrated service to support and assist in the 
                acquisition of a secondary school diploma or its 
                recognized equivalent.
                    ``(B) An assurance that the content of the materials 
                to be delivered is consistent with the accreditation 
                requirements of the State for which such materials are 
                used.
                    ``(C) To the extent feasible, materials developed in 
                the Federal departments and agencies and under 
                appropriate federally funded programs.
                    ``(D) An assurance that the applicant has the 
                technological and substantive experience to carry out 
                the program.
                    ``(E) Such additional assurances as the Secretary 
                may reasonably require.

``SEC. 5476. <<NOTE: 20 USC 7255e.>>  ADMINISTRATIVE PROVISIONS.

    ``(a) Leadership, Evaluation, and Peer Review.--
            ``(1) Reservation of funds.--The Secretary may reserve not 
        more than 5 percent of the amount made available to carry out 
        this subpart for a fiscal year for national leadership, 
        evaluation, and peer review activities, which the Secretary may 
        carry out directly or through grants, contracts, and cooperative 
        agreements.
            ``(2) Leadership.--Funds reserved for leadership activities 
        under paragraph (1) may be used for--
                    ``(A) disseminating information, including lists and 
                descriptions of services available from grant recipients 
                under this subpart; and
                    ``(B) other activities designed to enhance the 
                quality of distance learning activities nationwide.
            ``(3) Evaluation.--Funds reserved for evaluation activities 
        under paragraph (1) may be used to conduct independent 
        evaluations of the activities assisted under this subpart and of 
        distance learning in general, including--

[[Page 115 STAT. 1836]]

                    ``(A) analyses of distance learning efforts 
                (including such efforts that are, or are not, assisted 
                under this subpart); and
                    ``(B) comparisons of the effects (including student 
                outcomes) of different technologies in distance learning 
                efforts.
            ``(4) Peer review.--Funds reserved for peer review 
        activities under paragraph (1) may be used for peer review of--
                    ``(A) applications for grants under this subpart; 
                and
                    ``(B) activities assisted under this subpart.

    ``(b) Coordination.--The Department, the National Science 
Foundation, the Department of Agriculture, the Department of Commerce, 
and any other Federal department or agency operating a 
telecommunications network for educational purposes, shall coordinate 
the activities assisted under this subpart with the activities of such 
department or agency relating to a telecommunications network for 
educational purposes.
    ``(c) Funds From Other Agencies.--The Secretary may accept funds 
from other Federal departments or agencies to carry out the purposes of 
this subpart, including funds for the purchase of equipment.
    ``(d) Availability of Funds.--Funds made available to carry out this 
subpart shall remain available until expended.
    ``(e) Closed Captioning and Descriptive Video.--The Secretary shall 
encourage each entity receiving funds under this subpart to provide--
            ``(1) closed captioning of the verbal content of the 
        entity's programming, as appropriate; and
            ``(2) descriptive video of the visual content of the 
        entity's programming, as appropriate.

``SEC. 5477. <<NOTE: 20 USC 7255f.>>  DEFINITIONS.

    ``In this subpart:
            ``(1) Educational institution.--The term `educational 
        institution' means an institution of higher education, a local 
        educational agency, or a State educational agency.
            ``(2) Eligible entity.--The term `eligible entity' includes 
        any of the following that is organized on a Statewide or 
        multistate basis:
                    ``(A) A public agency or corporation established for 
                the purpose of developing and operating 
                telecommunications networks to enhance educational 
                opportunities provided by educational institutions, 
                teacher training centers, and other entities, except 
                that any such agency or corporation shall represent the 
                interests of elementary schools and secondary schools 
                that are eligible to participate in the program under 
                part A of title I.
                    ``(B) A partnership that will provide 
                telecommunications services and that includes three or 
                more of the following entities, at least one of which 
                shall be an agency described in clause (i) or (ii):
                          ``(i) A local educational agency that serves a 
                      significant number of elementary schools and 
                      secondary schools that are eligible for assistance 
                      under part A of title I, or elementary schools and 
                      secondary schools operated or funded for Indian 
                      children by the Department of the Interior 
                      eligible under section 1121(d)(1)(A).

[[Page 115 STAT. 1837]]

                          ``(ii) A State educational agency.
                          ``(iii) An adult and family education program.
                          ``(iv) An institution of higher education or a 
                      State higher education agency (as that term is 
                      defined in section 103 of the Higher Education Act 
                      of 1965 (20 U.S.C. 1003)).
                          ``(v) A teacher training center or academy 
                      that--
                                    ``(I) provides teacher preservice 
                                and inservice training; and
                                    ``(II) receives Federal financial 
                                assistance or has been approved by a 
                                State agency;
                          ``(vi)(I) A public or private entity with 
                      experience and expertise in the planning and 
                      operation of a telecommunications network, 
                      including entities involved in telecommunications 
                      through satellite, cable, telephone, or computer; 
                      or
                          ``(II) a public broadcasting entity with such 
                      experience.
                          ``(vii) A public or private elementary school 
                      or secondary school.
            ``(3) Instructional programming.--The term `instructional 
        programming' means courses of instruction and training courses 
        for elementary and secondary students, teachers, and others, and 
        materials for use in such instruction and training that have 
        been prepared in audio and visual form on tape, disc, film, or 
        live, and presented by means of telecommunications devices.
            ``(4) Public broadcasting entity.--The term `public 
        broadcasting entity' has the same meaning given such term in 
        section 397 of the Communications Act of 1934 (47 U.S.C. 397).

                       ``Subpart 8--Ready to Teach

``SEC. 5481. <<NOTE: 20 USC 7257.>>  GRANTS.

    ``(a) In General.--The Secretary is authorized to award grants to a 
nonprofit telecommunications entity, or partnership of such entities, 
for the purpose of carrying out a national telecommunications-based 
program to improve teaching in core curriculum areas. The program shall 
be designed to assist elementary school and secondary school teachers in 
preparing all students to achieve challenging State academic content and 
student academic achievement standards in core curriculum areas.
    ``(b) Digital Educational Programming.--The Secretary is authorized 
to award grants, as provided for in section 5484, to eligible entities 
described in subsection (b) of such section, to enable such entities to 
develop, produce, and distribute innovative educational and 
instructional video programming that is designed for use by elementary 
schools and secondary schools and based on challenging State academic 
content and student academic achievement standards. In awarding such 
grants, the Secretary shall ensure that eligible entities enter into 
multiyear content development collaborative arrangements with State 
educational agencies, local educational agencies, institutions of higher 
education, businesses, or other agencies or organizations.

[[Page 115 STAT. 1838]]

``SEC. 5482. <<NOTE: 20 USC 7257a.>>  APPLICATION REQUIRED.

    ``(a) General Application.--
            ``(1) In general.--To be eligible to receive a grant under 
        section 5481(a), a nonprofit telecommunications entity, or 
        partnership of such entities shall submit an application to the 
        Secretary. Each such application shall--
                    ``(A) demonstrate that the applicant will use the 
                public broadcasting infrastructure, the Internet, and 
                school digital networks, where available, to deliver 
                video and data in an integrated service to train 
                teachers in the use of materials and learning 
                technologies for achieving challenging State academic 
                content and student academic achievement standards;
                    ``(B) ensure that the project for which assistance 
                is sought will be conducted in cooperation with 
                appropriate State educational agencies, local 
                educational agencies, and State or local nonprofit 
                public telecommunications entities;
                    ``(C) ensure that a significant portion of the 
                benefits available for elementary schools and secondary 
                schools from the project for which assistance is sought 
                will be available to schools of local educational 
                agencies that have a high percentage of children counted 
                for the purpose of part A of title I; and
                    ``(D) contain such additional assurances as the 
                Secretary may reasonably require.
            ``(2) Sites.--In approving applications under paragraph (1), 
        the Secretary shall ensure that the program authorized by 
        section 5481(a) is conducted at elementary school and secondary 
        school sites throughout the United States.

    ``(b) Programming Application.--To be eligible to receive a grant 
under section 5481(b), an entity shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require.

``SEC. 5483. <<NOTE: 20 USC 7257b.>>  REPORTS AND EVALUATION.

    ``An entity receiving a grant under section 5481(a) shall prepare 
and submit to the Secretary an annual report that contains such 
information as the Secretary may require. At a minimum, such report 
shall describe the program activities undertaken with funds received 
under the grant, including--
            ``(1) the core curriculum areas for which program activities 
        have been undertaken and the number of teachers using the 
        program in each core curriculum area; and
            ``(2) the States in which teachers using the program are 
        located.

``SEC. 5484. <<NOTE: 20 USC 7257c.>>  DIGITAL EDUCATIONAL PROGRAMMING 
            GRANTS.

    ``(a) Grants.--The Secretary is authorized to award grants under 
section 5481(b) to eligible entities to facilitate the development of 
educational programming that shall--
            ``(1) include student assessment tools to provide feedback 
        on student academic achievement;
            ``(2) include built-in teacher utilization and support 
        components to ensure that teachers understand and can easily use 
        the content of the programming with group instruction or for 
        individual student use;

[[Page 115 STAT. 1839]]

            ``(3) be created for, or adaptable to, challenging State 
        academic content standards and student academic achievement 
        standards; and
            ``(4) be capable of distribution through digital 
        broadcasting and school digital networks.

    ``(b) Eligible Entities.--To be eligible to receive a grant under 
section 5481(b), an entity shall be a local public telecommunications 
entity, as defined in section 397(12) of the Communications Act of 1934, 
that is able to demonstrate a capacity for the development and 
distribution of educational and instructional television programming of 
high quality.
    ``(c) Competitive Basis.--Grants under section 5481(b) shall be 
awarded on a competitive basis as determined by the Secretary.
    ``(d) Matching Requirement.--To be eligible to receive a grant under 
section 5481(b), an entity shall contribute to the activities assisted 
under such grant non-Federal matching funds in an amount equal to not 
less than 100 percent of the amount of the grant. Such matching funds 
may include funds provided for the transition to digital broadcasting, 
as well as in-kind contributions.
    ``(e) Duration.--A grant under section 5481(b) shall be awarded for 
a period of 3 years in order to provide a sufficient period of time for 
the creation of a substantial body of significant content.

``SEC. 5485. <<NOTE: 20 USC 7257d.>>  ADMINISTRATIVE COSTS.

    ``An entity that receives a grant under this subpart may not use 
more than 5 percent of the amount received under the grant for 
administrative costs.

``Subpart <<NOTE: Foreign Language Assistance Act of 2001.>>  9--Foreign 
Language Assistance Program

``SEC. 5491. <<NOTE: 20 USC 7259.>>  SHORT TITLE.

    ``This subpart may be cited as the `Foreign Language Assistance Act 
of 2001'.

``SEC. 5492. <<NOTE: 20 USC 7259a.>>  PROGRAM AUTHORIZED.

    ``(a) Program Authority.--
            ``(1) In general.--The Secretary is authorized to make 
        grants, on a competitive basis, to State educational agencies or 
        local educational agencies to pay the Federal share of the cost 
        of innovative model programs providing for the establishment, 
        improvement, or expansion of foreign language study for 
        elementary school and secondary school students.
            ``(2) Duration.--Each grant under paragraph (1) shall be 
        awarded for a period of 3 years.

    ``(b) Requirements.--
            ``(1) Grants to state educational agencies.--In awarding a 
        grant under subsection (a) to a State educational agency, the 
        Secretary shall support programs that promote systemic 
        approaches to improving foreign language learning in the State.
            ``(2) Grants to local educational agencies.--In awarding a 
        grant under subsection (a) to a local educational agency, the 
        Secretary shall support programs that--
                    ``(A) show the promise of being continued beyond the 
                grant period;

[[Page 115 STAT. 1840]]

                    ``(B) demonstrate approaches that can be 
                disseminated and duplicated in other local educational 
                agencies; and
                    ``(C) may include a professional development 
                component.

    ``(c) Federal Share.--
            ``(1) In general.--The Federal share for each fiscal year 
        shall be 50 percent.
            ``(2) Waiver.--Notwithstanding paragraph (1), the Secretary 
        may determine the Federal share for any local educational agency 
        which the Secretary determines does not have adequate resources 
        to pay the non-Federal share of the cost of the activities 
        assisted under this subpart.

    ``(d) Special rule.--Not less than \3/4\ of the funds made available 
under section 5401 to carry out this subpart shall be used for the 
expansion of foreign language learning in the elementary grades.
    ``(e) Reservation.--The Secretary may reserve not more than 5 
percent of funds made available under section 5401 to carry out this 
subpart for a fiscal year to evaluate the efficacy of programs assisted 
under this subpart.

``SEC. 5493. <<NOTE: 20 USC 7259b.>>  APPLICATIONS.

    ``(a) In General.--Any State educational agency or local educational 
agency desiring a grant under this subpart shall submit an application 
to the Secretary at such time, in such manner, and containing such 
information and assurances as the Secretary may require.
    ``(b) Special Consideration.--The Secretary shall give special 
consideration to applications describing programs that--
            ``(1) include intensive summer foreign language programs for 
        professional development;
            ``(2) link nonnative English speakers in the community with 
        the schools in order to promote two-way language learning;
            ``(3) promote the sequential study of a foreign language for 
        students, beginning in elementary schools;
            ``(4) make effective use of technology, such as computer-
        assisted instruction, language laboratories, or distance 
        learning, to promote foreign language study;
            ``(5) promote innovative activities, such as foreign 
        language immersion, partial foreign language immersion, or 
        content-based instruction; and
            ``(6) are carried out through a consortium comprised of the 
        agency receiving the grant and an elementary school or secondary 
        school.

``SEC. 5494. <<NOTE: 20 USC 7259c.>>  ELEMENTARY SCHOOL FOREIGN LANGUAGE 
            INCENTIVE PROGRAM.

    ``(a) Incentive Payments.--From amounts made available under section 
5401 to carry out this subpart, the Secretary shall make an incentive 
payment for each fiscal year to each public elementary school that 
provides to students attending such school a program designed to lead to 
communicative competency in a foreign language.
    ``(b) Amount.--The Secretary shall determine the amount of the 
incentive payment under subsection (a) for each public elementary school 
for each fiscal year on the basis of the number of students 
participating in a program described in such subsection at such school 
for such year compared to the total number of

[[Page 115 STAT. 1841]]

such students at all such schools in the United States for such year.
    ``(c) Requirement.--The Secretary shall consider a program to be 
designed to lead to communicative competency in a foreign language if 
such program is comparable to a program that provides not less than 45 
minutes of instruction in a foreign language for not fewer than 4 days 
per week throughout an academic year.

  ``Subpart <<NOTE: Carol M. White Physical Education Program.>>  10--
Physical Education

``SEC. 5501. <<NOTE: 20 USC 7261.>>  SHORT TITLE.

    ``This subpart may be cited as the `Carol M. White Physical 
Education Program'.

``SEC. 5502. <<NOTE: 20 USC 7261a.>>  PURPOSE.

    ``The purpose of this subpart is to award grants and contracts to 
initiate, expand, and improve physical education programs for all 
kindergarten through 12th-grade students.

``SEC. 5503. <<NOTE: 20 USC 7261b.>>  PROGRAM AUTHORIZED.

    ``(a) Authorization.--The Secretary is authorized to award grants to 
local educational agencies and community-based organizations (such as 
Boys and Girls Clubs, Boy Scouts and Girl Scouts, and the Young Men's 
Christian Organization (YMCA) and Young Women's Christian Organization 
(YWCA)) to pay the Federal share of the costs of initiating, expanding, 
and improving physical education programs (including after-school 
programs) for kindergarten through 12th-grade students by--
            ``(1) providing equipment and support to enable students to 
        participate actively in physical education activities; and
            ``(2) providing funds for staff and teacher training and 
        education.

    ``(b) Program Elements.--A physical education program funded under 
this subpart may provide for one or more of the following:
            ``(1) Fitness education and assessment to help students 
        understand, improve, or maintain their physical well-being.
            ``(2) Instruction in a variety of motor skills and physical 
        activities designed to enhance the physical, mental, and social 
        or emotional development of every student.
            ``(3) Development of, and instruction in, cognitive concepts 
        about motor skill and physical fitness that support a lifelong 
        healthy lifestyle.
            ``(4) Opportunities to develop positive social and 
        cooperative skills through physical activity participation.
            ``(5) Instruction in healthy eating habits and good 
        nutrition.
            ``(6) Opportunities for professional development for 
        teachers of physical education to stay abreast of the latest 
        research, issues, and trends in the field of physical education.

    ``(c) Special Rule.--For the purpose of this subpart, 
extracurricular activities, such as team sports and Reserve Officers' 
Training Corps (ROTC) program activities, shall not be considered as 
part of the curriculum of a physical education program assisted under 
this subpart.

``SEC. 5504. <<NOTE: 20 USC 7261c.>>  APPLICATIONS.

    ``(a) Submission.--Each local educational agency or community-based 
organization desiring a grant or contract under this subpart

[[Page 115 STAT. 1842]]

shall submit to the Secretary an application that contains a plan to 
initiate, expand, or improve physical education programs in order to 
make progress toward meeting State standards for physical education.
    ``(b) Private School and Home-Schooled Students.--An application for 
funds under this subpart may provide for the participation, in the 
activities funded under this subpart, of--
            ``(1) students enrolled in private nonprofit elementary 
        schools or secondary schools, and their parents and teachers; or
            ``(2) home-schooled students, and their parents and 
        teachers.

``SEC. 5505. <<NOTE: 20 USC 7261d.>>  REQUIREMENTS.

    ``(a) Annual Report to the Secretary.--In order to continue 
receiving funding after the first year of a multiyear grant or contract 
under this subpart, the administrator of the grant or contract for the 
local educational agency or community-based organization shall submit to 
the Secretary an annual report that--
            ``(1) describes the activities conducted during the 
        preceding year; and
            ``(2) demonstrates that progress has been made toward 
        meeting State standards for physical education.

    ``(b) Administrative Expenses.--Not more than 5 percent of the grant 
funds made available to a local educational agency or community-based 
organization under this subpart for any fiscal year may be used for 
administrative expenses.

``SEC. 5506. <<NOTE: 20 USC 7261e.>>  ADMINISTRATIVE PROVISIONS.

    ``(a) Federal Share.--The Federal share under this subpart may not 
exceed--
            ``(1) 90 percent of the total cost of a program for the 
        first year for which the program receives assistance under this 
        subpart; and
            ``(2) 75 percent of such cost for the second and each 
        subsequent such year.

    ``(b) Proportionality.--To the extent practicable, the Secretary 
shall ensure that grants awarded under this subpart shall be equitably 
distributed among local educational agencies and community-based 
organizations serving urban and rural areas.
    ``(c) <<NOTE: Deadline.>>  Report to Congress.--Not later than June 
1, 2003, the Secretary shall submit a report to Congress that--
            ``(1) describes the programs assisted under this subpart;
            ``(2) documents the success of such programs in improving 
        physical fitness; and
            ``(3) makes such recommendations as the Secretary determines 
        appropriate for the continuation and improvement of the programs 
        assisted under this subpart.

    ``(d) Availability of Funds.--Amounts made available to the 
Secretary to carry out this subpart shall remain available until 
expended.

``SEC. 5507. <<NOTE: 20 USC 7261f.>>  SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available under this subpart shall be used to 
supplement, and not supplant, any other Federal, State, or local funds 
available for physical education activities.

[[Page 115 STAT. 1843]]

               ``Subpart 11--Community Technology Centers

``SEC. 5511. <<NOTE: 20 USC 7263.>>  PURPOSE AND PROGRAM AUTHORIZATION.

    ``(a) Purpose.--It is the purpose of this subpart to assist eligible 
applicants--
            ``(1) to create or expand community technology centers that 
        will provide disadvantaged residents of economically distressed 
        urban and rural communities with access to information 
        technology and related training; and
            ``(2) to provide technical assistance and support to 
        community technology centers.

    ``(b) Program Authorization.--The Secretary is authorized, in 
conjunction with the Office of Educational Technology, to award grants, 
contracts, or cooperative agreements, on a competitive basis, for a 
period of not more than 3 years, to eligible applicants in order to 
assist such applicants in--
            ``(1) creating or expanding community technology centers; or
            ``(2) providing technical assistance and support to 
        community technology centers.
            ``(3) Service of americorps participants.--The Secretary may 
        collaborate with the Chief Executive Officer of the Corporation 
        for National and Community Service on the use in community 
        technology centers of participants in National Service programs 
        carried out under subtitle C of title I of the National and 
        Community Service Act of 1990 (42 U.S.C. 12571 et seq.).

``SEC. 5512. <<NOTE: 20 USC 7263a.>>  ELIGIBILITY AND APPLICATION 
            REQUIREMENTS.

    ``(a) Eligible Applicants.--In order to be eligible to receive an 
award under this subpart, an applicant shall--
            ``(1) be an entity (such as a foundation, museum, library, 
        for-profit business, public or private nonprofit organization, 
        or community-based organization), an institution of higher 
        education, a State educational agency, a local education agency, 
        or a consortium of such entities, institutions, or agencies; and
            ``(2) have the capacity to significantly expand access to 
        computers and related services for disadvantaged residents of 
        economically distressed urban and rural communities (who would 
        otherwise be denied such access).

    ``(b) Application Requirements.--In order to receive an award under 
this subpart, an eligible applicant shall submit an application to the 
Secretary at such time, and containing such information, as the 
Secretary may require. The application shall include each of the 
following:
            ``(1) A description of the proposed project, including a 
        description of the magnitude of the need for the services and 
        how the project would expand access to information technology 
        and related services to disadvantaged residents of an 
        economically distressed urban or rural community.
            ``(2) A demonstration of--
                    ``(A) the commitment, including the financial 
                commitment, of entities (such as institutions, 
                organizations, business and other groups in the 
                community) that will provide support for the creation, 
                expansion, and continuation of the proposed project; and
                    ``(B) the extent to which the proposed project 
                coordinates with other appropriate agencies, efforts, 
                and

[[Page 115 STAT. 1844]]

                organizations providing services to disadvantaged 
                residents of an economically distressed urban or rural 
                community.
            ``(3) A description of how the proposed project would be 
        sustained once the Federal funds awarded under this subpart end.
            ``(4) A plan for the evaluation of the program, which shall 
        include benchmarks to monitor progress toward specific project 
        objectives.

    ``(c) Matching Requirements.--The Federal share of the cost of any 
project funded under this subpart shall not exceed 50 percent. The non-
Federal share of such project may be in cash or in kind, fairly 
evaluated, including services.

``SEC. 5513. <<NOTE: 20 USC 7263b.>>  USES OF FUNDS.

    ``(a) Required Uses.--A recipient shall use funds under this subpart 
for--
            ``(1) creating or expanding community technology centers 
        that expand access to information technology and related 
        training for disadvantaged residents of distressed urban or 
        rural communities; and
            ``(2) evaluating the effectiveness of the project.

    ``(b) Permissible Uses.--A recipient may use funds under this 
subpart for activities, described in its application, that carry out the 
purposes of this subpart, such as--
            ``(1) supporting a center coordinator, and staff, to 
        supervise instruction and build community partnerships;
            ``(2) acquiring equipment, networking capabilities, and 
        infrastructure to carry out the project; and
            ``(3) developing and providing services and activities for 
        community residents that provide access to computers, 
        information technology, and the use of such technology in 
        support of preschool preparation, academic achievement, 
        educational development, and workforce development, such as the 
        following:
                    ``(A) After-school activities in which children and 
                youths use software that provides academic enrichment 
                and assistance with homework, develop their technical 
                skills, explore the Internet, and participate in 
                multimedia activities, including web page design and 
                creation.
                    ``(B) Adult education and family literacy activities 
                through technology and the Internet, including--
                          ``(i) General Education Development, Language 
                      Instruction Educational Programs, and adult basic 
                      education classes or programs;
                          ``(ii) introduction to computers;
                          ``(iii) intergenerational activities; and
                          ``(iv) educational development opportunities.
                    ``(C) Career development and job preparation 
                activities, such as--
                          ``(i) training in basic and advanced computer 
                      skills;
                          ``(ii) resume writing workshops; and
                          ``(iii) access to databases of employment 
                      opportunities, career information, and other 
                      online materials.
                    ``(D) Small business activities, such as--
                          ``(i) computer-based training for basic 
                      entrepreneurial skills and electronic commerce; 
                      and
                          ``(ii) access to information on business 
                      start-up programs that is available online, or 
                      from other sources.

[[Page 115 STAT. 1845]]

                    ``(E) Activities that provide home access to 
                computers and technology, such as assistance and 
                services to promote the acquisition, installation, and 
                use of information technology in the home through low-
                cost solutions such as networked computers, web-based 
                television devices, and other technology.

 ``Subpart <<NOTE: Alaska Native and Native Hawaiian Education Through 
Cultural and Historical Organizations Act.>>  12--Educational, Cultural, 
    Apprenticeship, and Exchange Programs for Alaska Natives, Native 
    Hawaiians, and Their Historical Whaling and Trading Partners in 
Massachusetts

``SEC. 5521. <<NOTE: 20 USC 7265.>>  SHORT TITLE.

    ``This subpart may be cited as the `Alaska Native and Native 
Hawaiian Education Through Cultural and Historical Organizations Act'.

``SEC. 5522. <<NOTE: 20 USC 7265a.>>  FINDINGS AND PURPOSES.

    ``(a) Findings.--Congress finds the following:
            ``(1) Alaska Natives and Native Hawaiians have been linked 
        for over 200 years to the coastal towns of Salem, Massachusetts, 
        and New Bedford, Massachusetts, through the China trade from 
        Salem and whaling voyages from New Bedford.
            ``(2) Nineteenth-century trading ships sailed from Salem, 
        Massachusetts, around Cape Horn of South America, and up the 
        Northwest coast of the United States to Alaska, where their 
        crews traded with Alaska Native people for furs, and then went 
        on to Hawaii to trade for sandalwood with Native Hawaiians 
        before going on to China.
            ``(3) During the 19th century, over 2,000 whaling voyages 
        sailed out of New Bedford, Massachusetts to the Arctic region of 
        Alaska, and joined Alaska Natives from Barrow, Alaska and other 
        areas in the Arctic region in subsistence whaling activities.
            ``(4) Many New Bedford whaling voyages continued on to 
        Hawaii, where they joined Native Hawaiians from the neighboring 
        islands.
            ``(5) From those commercial and whaling voyages, a rich 
        cultural exchange and strong trading relationships developed 
        among the three peoples involved.
            ``(6) In the past decades, awareness of the historical 
        trading, cultural, and whaling links has faded among Alaska 
        Natives, Native Hawaiians, and the people of the continental 
        United States.
            ``(7) In 2000, the Alaska Native Heritage Center in Alaska, 
        the Bishop Museum in Hawaii, and the Peabody-Essex Museum in 
        Massachusetts initiated the New Trade Winds project to use 21st-
        century technology, including the Internet, to educate students 
        and their parents about historic and contemporary cultural and 
        trading ties that continue to link the diverse cultures of the 
        peoples involved.
            ``(8) The New Bedford Whaling Museum, in partnership with 
        the New Bedford Whaling National Historical Park, has developed 
        a cultural exchange and educational program with the Inupiat 
        Heritage Center in Barrow, Alaska to bring together the 
        children, parents, and elders from the Arctic region of

[[Page 115 STAT. 1846]]

        Alaska with children and families of Massachusetts to learn 
        about their historical ties and about each other's contemporary 
        cultures.
            ``(9) Within the fast-growing cultural sector, meaningful 
        educational and career opportunities based on traditional 
        relationships exist for Alaska Natives, Native Hawaiians, and 
        low-income youth in Massachusetts.
            ``(10) Cultural institutions can provide practical, 
        culturally relevant, education-related internship and apprentice 
        programs, such as the Museum Action Corps at the Peabody-Essex 
        Museum and similar programs at the New Bedford Oceanarium and 
        other institutions, to prepare youths and their families for 
        careers in the cultural sector.
            ``(11) The resources of the institutions described in 
        paragraphs (7) and (8) provide unique opportunities for 
        illustrating and interpreting the contributions of Alaska 
        Natives, Native Hawaiians, the whaling industry, and the China 
        trade to the economic, social, and environmental history of the 
        United States, for educating students and their parents, and for 
        providing opportunities for internships and apprenticeships 
        leading to careers with cultural institutions.

    ``(b) Purposes.--The purposes of this subpart are the following:
            ``(1) To authorize and develop innovative culturally-based 
        educational programs and cultural exchanges to assist Alaska 
        Natives, Native Hawaiians, and children and families of 
        Massachusetts linked by history and tradition to Alaska and 
        Hawaii to learn about shared culture and traditions.
            ``(2) To authorize and develop internship and apprentice 
        programs to assist Alaska Natives, Native Hawaiians, and 
        children and families of Massachusetts linked by history and 
        tradition with Alaska and Hawaii to prepare for careers with 
        cultural institutions.
            ``(3) To supplement programs and authorities in the area of 
        education to further the objectives of this subpart.

``SEC. 5523. <<NOTE: 20 USC 7265b.>>  PROGRAM AUTHORIZATION.

    ``(a) Grants and Contracts.--In order to carry out programs that 
fulfill the purposes of this subpart, the Secretary is authorized to 
make grants to, or enter into contracts with, the following:
            ``(1) The Alaska Native Heritage Center in Anchorage, 
        Alaska.
            ``(2) The Inupiat Heritage Center in Barrow, Alaska.
            ``(3) The Bishop Museum in Hawaii.
            ``(4) The Peabody-Essex Museum in Salem, Massachusetts.
            ``(5) The New Bedford Whaling Museum and the New Bedford 
        Oceanarium in New Bedford, Massachusetts.
            ``(6) Other Alaska Native and Native Hawaiian cultural and 
        educational organizations.
            ``(7) Cultural and educational organizations with experience 
        in developing or operating programs that illustrate and 
        interpret the contributions of Alaska Natives, Native Hawaiians, 
        the whaling industry, and the China trade to the economic, 
        social, and environmental history of the United States.
            ``(8) Consortia of the organizations and entities described 
        in this subsection.

[[Page 115 STAT. 1847]]

    ``(b) Uses of Funds.--Activities provided through programs carried 
out under this subpart may include one or more of the following:
            ``(1) Development and implementation of educational programs 
        to increase understanding of cultural diversity and 
        multicultural communication among Alaska Natives, Native 
        Hawaiians, and the people of the continental United States, 
        based on historic patterns of trading and commerce.
            ``(2) Development and implementation of programs using 
        modern technology, including the Internet, to educate students, 
        their parents, and teachers about historic and contemporary 
        cultural and trading ties that continue to link the diverse 
        cultures of Alaska Natives, Native Hawaiians, and the people of 
        Massachusetts.
            ``(3) Cultural exchanges of elders, students, parents, and 
        teachers among Alaska Natives, Native Hawaiians, and the people 
        of Massachusetts to increase awareness of diverse cultures among 
        each group.
            ``(4) Sharing of collections among cultural institutions 
        designed to increase awareness of diverse cultures and links 
        among them.
            ``(5) Development and implementation of internship and 
        apprentice programs in cultural institutions to train Alaska 
        Natives, Native Hawaiians, and low-income students in 
        Massachusetts for careers with cultural institutions.
            ``(6) Other activities, consistent with the purposes of this 
        subpart, to meet the educational needs of Alaska Natives, Native 
        Hawaiians, and students and their parents in Massachusetts.

``SEC. 5524. <<NOTE: 20 USC 7265c.>>  ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this 
subpart, and no contract may be entered into under this subpart, unless 
the entity seeking the grant or contract submits an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may determine to be necessary to carry out the 
provisions of this subpart.
    ``(b) Local Educational Agency Coordination.--Each applicant for a 
grant or contract under this subpart shall inform each local educational 
agency serving students who will participate in the program to be 
carried out under the grant or contract about the application.

``SEC. 5525. <<NOTE: 20 USC 7265d.>>  AVAILABILITY OF FUNDS.

    ``If sufficient funds are made available under section 5401 to carry 
out this subpart for a fiscal year, the Secretary shall make available, 
to support activities described in section 5523(b), the following 
amounts:
            ``(1) Not less than $2,000,000 each to--
                    ``(A) the New Bedford Whaling Museum, in partnership 
                with the New Bedford Oceanarium, in Massachusetts; and
                    ``(B) the Inupiat Heritage Center in Alaska.
            ``(2) For the New Trade Winds project, not less than 
        $1,000,000 each to--
                    ``(A) the Alaska Native Heritage Center in Alaska;
                    ``(B) the Bishop Museum in Hawaii; and
                    ``(C) the Peabody-Essex Museum in Massachusetts.

[[Page 115 STAT. 1848]]

            ``(3) For internship and apprenticeship programs (including 
        the Museum Action Corps of the Peabody-Essex Museum), not less 
        than $1,000,000 each to--
                    ``(A) the Alaska Native Heritage Center in Alaska;
                    ``(B) the Bishop Museum in Hawaii; and
                    ``(C) the Peabody-Essex Museum in Massachusetts.

``SEC. 5526. <<NOTE: 20 USC 7265e.>>  DEFINITIONS.

    ``In this subpart:
            ``(1) Alaska native.--The term `Alaska Native' has the 
        meaning given that term in section 7306.
            ``(2) Native hawaiian.--The term `Native Hawaiian' has the 
        meaning given that term in section 7207.

 ``Subpart <<NOTE: Excellence in Economic Education Act of 2001.>>  13--
Excellence in Economic Education

``SEC. 5531. <<NOTE: 20 USC 7267.>>  SHORT TITLE.

    ``This subpart may be cited as the `Excellence in Economic Education 
Act of 2001'.

``SEC. 5532. <<NOTE: 20 USC 7267a.>>  PURPOSE AND GOALS.

    ``(a) Purpose.--The purpose of this subpart is to promote economic 
and financial literacy among all students in kindergarten through grade 
12 by awarding a competitive grant to a national nonprofit educational 
organization that has as its primary purpose the improvement of the 
quality of student understanding of personal finance and economics.
    ``(b) Objectives.--The objectives of this subpart are the following:
            ``(1) To increase students' knowledge of, and achievement 
        in, economics to enable the students to become more productive 
        and informed citizens.
            ``(2) To strengthen teachers' understanding of, and 
        competency in, economics to enable the teachers to increase 
        student mastery of economic principles and the practical 
        application of those principles.
            ``(3) To encourage economic education research and 
        development, to disseminate effective instructional materials, 
        and to promote replication of best practices and exemplary 
        programs that foster economic literacy.
            ``(4) To assist States in measuring the impact of education 
        in economics.
            ``(5) To leverage and expand private and public support for 
        economic education partnerships at national, State, and local 
        levels.

``SEC. 5533. <<NOTE: 20 USC 7267b.>>  GRANT PROGRAM AUTHORIZED.

    ``(a) Authorization.--The Secretary is authorized to award a 
competitive grant to a national nonprofit educational organization that 
has as its primary purpose the improvement of the quality of student 
understanding of personal finance and economics through effective 
teaching of economics in the Nation's classrooms (referred to in this 
subpart as the `grantee').
    ``(b) Uses of Funds.--
            ``(1) Direct activities.--The grantee shall use 25 percent 
        of the funds made available through the grant for a fiscal 
        year--

[[Page 115 STAT. 1849]]

                    ``(A) to strengthen and expand the grantee's 
                relationships with State and local personal finance, 
                entrepreneurial, and economic education organizations;
                    ``(B) to support and promote training of teachers 
                who teach a grade from kindergarten through grade 12 
                regarding economics, including the dissemination of 
                information on effective practices and research findings 
                regarding the teaching of economics;
                    ``(C) to support research on effective teaching 
                practices and the development of assessment instruments 
                to document student understanding of personal finance 
                and economics; and
                    ``(D) to develop and disseminate appropriate 
                materials to foster economic literacy.
            ``(2) Subgrants.--The grantee shall use 75 percent of the 
        funds made available through the grant for a fiscal year to 
        award subgrants to State educational agencies or local 
        educational agencies, and State or local economic, personal 
        finance, or entrepreneurial education organizations (referred to 
        in this section as the `recipient'). The grantee shall award 
        such a subgrant to pay for the Federal share of the cost of 
        enabling the recipient to work in partnership with one or more 
        of the entities described in paragraph (3) for one or more of 
        the following purposes:
                    ``(A) Collaboratively establishing and conducting 
                teacher training programs that use effective and 
                innovative approaches to the teaching of economics, 
                personal finance, and entrepreneurship.
                    ``(B) Providing resources to school districts that 
                desire to incorporate economics and personal finance 
                into the curricula of the schools in the districts.
                    ``(C) Conducting evaluations of the impact of 
                economic and financial literacy education on students.
                    ``(D) Conducting economic and financial literacy 
                education research.
                    ``(E) Creating and conducting school-based student 
                activities to promote consumer, economic, and personal 
                finance education (such as saving, investing, and 
                entrepreneurial education) and to encourage awareness 
                and student academic achievement in economics.
                    ``(F) Encouraging replication of best practices to 
                promote economic and financial literacy.
            ``(3) Partnership entities.--The entities described in this 
        paragraph are the following:
                    ``(A) A private sector entity.
                    ``(B) A State educational agency.
                    ``(C) A local educational agency.
                    ``(D) An institution of higher education.
                    ``(E) An organization promoting economic 
                development.
                    ``(F) An organization promoting educational 
                excellence.
                    ``(G) An organization promoting personal finance or 
                entrepreneurial education.

``SEC. 5534. <<NOTE: 20 USC 7267c.>>  APPLICATIONS.

    ``(a) Grantee Applications.--To be eligible to receive a grant under 
this subpart, the grantee shall submit to the Secretary an

[[Page 115 STAT. 1850]]

application at such time, in such manner, and accompanied by such 
information as the Secretary may require.
    ``(b) Recipient Applications.--
            ``(1) Submission.--To be eligible to receive a subgrant 
        under this section, a recipient shall submit an application to 
        the grantee at such time, in such manner, and accompanied by 
        such information as the grantee may require.
            ``(2) Review.--The grantee shall invite the individuals 
        described in paragraph (3) to review all applications from 
        recipients for a subgrant under this section and to make 
        recommendations to the grantee regarding the approval of the 
        applications.
            ``(3) Reviewers.--The individuals described in this 
        paragraph are the following:
                          ``(i) Leaders in the fields of economics and 
                      education.
                          ``(ii) Such other individuals as the grantee 
                      determines to be necessary, especially members of 
                      the State and local business, banking, and finance 
                      communities.

``SEC. 5535. <<NOTE: 20 USC 7267d.>>  REQUIREMENTS.

    ``(a) Administrative Costs.--The grantee and each recipient 
receiving a subgrant under this subpart for a fiscal year may use not 
more than 5 percent of the funds made available through the grant or 
subgrant for administrative costs.
    ``(b) Teacher Training Programs.--In carrying out the teacher 
training programs described in section 5533(b)(2)(A), a recipient 
shall--
            ``(1) train teachers who teach a grade from kindergarten 
        through grade 12; and
            ``(2) encourage teachers from disciplines other than 
        economics and financial literacy to participate in such teacher 
        training programs, if the training will promote the economic and 
        financial literacy of those teachers' students.

    ``(c) Involvement of Business Community.--In carrying out the 
activities assisted under this subpart, the grantee and recipients are 
strongly encouraged to--
            ``(1) include interactions with the local business community 
        to the fullest extent possible to reinforce the connection 
        between economic and financial literacy and economic 
        development; and
            ``(2) work with private businesses to obtain matching 
        contributions for Federal funds and assist recipients in working 
        toward self-sufficiency.

    ``(d) Additional Requirements and Technical Assistance.--The grantee 
shall--
            ``(1) meet such other requirements as the Secretary 
        determines to be necessary to assure compliance with this 
        section; and
            ``(2) receive from the Secretary such technical assistance 
        as may be necessary to carry out this section.

``SEC. 5536. <<NOTE: 20 USC 7267e.>>  ADMINISTRATIVE PROVISIONS.

    ``(a) Federal Share.--The Federal share of the cost described in 
section 5533(b)(2) shall be 50 percent.
    ``(b) Payment of Non-Federal Share.--The non-Federal share may be 
paid in cash or in kind (fairly evaluated, including plant, equipment, 
or services).

[[Page 115 STAT. 1851]]

    ``(c) Reports to Congress.--Not later than 2 years after the date 
funds are first made available to carry out this subpart, and every 2 
years thereafter, the Secretary shall submit to the appropriate 
committees of Congress a report regarding activities assisted under this 
subpart.

``SEC. 5537. <<NOTE: 20 USC 7267f.>>  SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available to carry out this subpart shall be used to 
supplement, and not supplant, other Federal, State, and local funds 
expended for the purpose described in section 5532(a).

      ``Subpart 14--Grants to Improve the Mental Health of Children

``SEC. 5541. <<NOTE: 20 USC 7269.>>  GRANTS FOR THE INTEGRATION OF 
            SCHOOLS AND MENTAL HEALTH SYSTEMS.

    ``(a) Authorization.--The Secretary is authorized to award grants 
to, or enter into contracts or cooperative agreements with, State 
educational agencies, local educational agencies, or Indian tribes, for 
the purpose of increasing student access to quality mental health care 
by developing innovative programs to link local school systems with the 
local mental health system.
    ``(b) Duration.--With respect to a grant, contract, or cooperative 
agreement awarded or entered into under this section, the period during 
which payments under such grant, contract or agreement are made to the 
recipient may not exceed 5 years.
    ``(c) Use of Funds.--A State educational agency, local educational 
agency, or Indian tribe that receives a grant, contract, or cooperative 
agreement under this section shall use amounts made available through 
such grant, contract, or cooperative agreement for the following:
            ``(1) To enhance, improve, or develop collaborative efforts 
        between school-based service systems and mental health service 
        systems to provide, enhance, or improve prevention, diagnosis, 
        and treatment services to students.
            ``(2) To enhance the availability of crisis intervention 
        services, appropriate referrals for students potentially in need 
        of mental health services, and ongoing mental health services.
            ``(3) To provide training for the school personnel and 
        mental health professionals who will participate in the program 
        carried out under this section.
            ``(4) To provide technical assistance and consultation to 
        school systems and mental health agencies and families 
        participating in the program carried out under this section.
            ``(5) To provide linguistically appropriate and culturally 
        competent services.
            ``(6) To evaluate the effectiveness of the program carried 
        out under this section in increasing student access to quality 
        mental health services, and make recommendations to the 
        Secretary about sustainability of the program.

    ``(d) Applications.--To be eligible to receive a grant, contract, or 
cooperative agreement under this section, a State educational agency, 
local educational agency, or Indian tribe shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may reasonably require. The application 
shall include each of the following:

[[Page 115 STAT. 1852]]

            ``(1) A description of the program to be funded under the 
        grant, contract, or cooperative agreement.
            ``(2) A description of how such program will increase access 
        to quality mental health services for students.
            ``(3) A description of how the applicant will establish a 
        crisis intervention program to provide immediate mental health 
        services to the school community when necessary.
            ``(4) An assurance that--
                    ``(A) persons providing services under the grant, 
                contract, or cooperative agreement are adequately 
                trained to provide such services;
                    ``(B) the services will be provided in accordance 
                with subsection (c);
                    ``(C) teachers, principal administrators, and other 
                school personnel are aware of the program; and
                    ``(D) parents of students participating in services 
                under this section will be involved in the design and 
                implementation of the services.
            ``(5) An explanation of how the applicant will support and 
        integrate existing school-based services with the program to 
        provide appropriate mental health services for students.
            ``(6) An explanation of how the applicant will establish a 
        program that will support students and the school in maintaining 
        an environment conducive to learning.

    ``(e) Interagency Agreements.--
            ``(1) Designation of lead agency.--The recipient of each 
        grant, contract, or cooperative agreement shall designate a lead 
        agency to direct the establishment of an interagency agreement 
        among local educational agencies, juvenile justice authorities, 
        mental health agencies, and other relevant entities in the 
        State, in collaboration with local entities and parents and 
        guardians of students.
            ``(2) Contents.--The interagency agreement shall ensure the 
        provision of the services described in subsection (c), 
        specifying with respect to each agency, authority, or entity--
                    ``(A) the financial responsibility for the services;
                    ``(B) the conditions and terms of responsibility for 
                the services, including quality, accountability, and 
                coordination of the services; and
                    ``(C) the conditions and terms of reimbursement 
                among the agencies, authorities, or entities that are 
                parties to the interagency agreement, including 
                procedures for dispute resolution.

    ``(f) Evaluation.--The Secretary shall evaluate each program carried 
out by a State educational agency, local educational agency, or Indian 
tribe under this section and shall disseminate the findings with respect 
to each such evaluation to appropriate public and private entities.
    ``(g) Distribution of Awards.--The Secretary shall ensure that 
grants, contracts, and cooperative agreements awarded or entered into 
under this section are equitably distributed among the geographical 
regions of the United States and among urban, suburban, and rural 
populations.
    ``(h) Rule of Construction.--Nothing in Federal law shall be 
construed--

[[Page 115 STAT. 1853]]

            ``(1) to prohibit an entity involved with a program carried 
        out under this section from reporting a crime that is committed 
        by a student to appropriate authorities; or
            ``(2) to prevent State law enforcement and judicial 
        authorities from exercising their responsibilities with regard 
        to the application of Federal and State law to crimes committed 
        by a student.

    ``(i) Supplement, Not Supplant.--Any services provided through 
programs carried out under this section must supplement, and not 
supplant, existing mental health services, including any services 
required to be provided under the Individuals with Disabilities 
Education Act (20 U.S.C. 1400 et seq.).

``SEC. 5542. <<NOTE: 20 USC 7269a.>>  PROMOTION OF SCHOOL READINESS 
            THROUGH EARLY CHILDHOOD EMOTIONAL AND SOCIAL DEVELOPMENT.

    ``(a) Authorization.--The Secretary, in consultation with the 
Secretary of Health and Human Services, may award grants (to be known as 
`Foundations for Learning Grants') to local educational agencies, local 
councils, community-based organizations, and other public or nonprofit 
private entities to assist eligible children to become ready for school.
    ``(b) Applications.--To be eligible to receive a grant under this 
section, a local educational agency, local council, community-based 
organization, or other public or nonprofit private entity, or a 
combination of such entities, shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require. The application 
shall include each of the following:
            ``(1) A description of the population that the applicant 
        intends to serve and the types of services to be provided under 
        the grant.
            ``(2) A description of the manner in which services under 
        the grant will be coordinated with existing similar services 
        provided by public and nonprofit private entities within the 
        State.
            ``(3) An assurance that--
                    ``(A) services under the grant shall be provided by 
                or under the supervision of qualified professionals with 
                expertise in early childhood development;
                    ``(B) such services shall be culturally competent;
                    ``(C) such services shall be provided in accordance 
                with subsection (c);
                    ``(D) funds received under this section shall be 
                used to supplement, and not supplant, non-Federal funds; 
                and
                    ``(E) parents of students participating in services 
                under this section will be involved in the design and 
                implementation of the services.

    ``(c) Uses of Funds.--A local educational agency, local council, 
community-based organization, or other public or nonprofit private 
entity that receives funds under this section may use such funds to 
benefit eligible children, for one or more of the following:
            ``(1) To deliver services to eligible children and their 
        families that foster eligible children's emotional, behavioral, 
        and social development and take into consideration the 
        characteristics described in subsection (f)(1).
            ``(2) To coordinate and facilitate access by eligible 
        children and their families to the services available through 
        community

[[Page 115 STAT. 1854]]

        resources, including mental health, physical health, substance 
        abuse, educational, domestic violence prevention, child welfare, 
        and social services.
            ``(3) To provide ancillary services such as transportation 
        or child care in order to facilitate the delivery of any other 
        services or activities authorized by this section.
            ``(4) To develop or enhance early childhood community 
        partnerships and build toward a community system of care that 
        brings together child-serving agencies or organizations to 
        provide individualized supports for eligible children and their 
        families.
            ``(5) To evaluate the success of strategies and services 
        provided pursuant to this section in promoting young children's 
        successful entry to school and to maintain data systems required 
        for effective evaluations.
            ``(6) To pay for the expenses of administering the 
        activities authorized under this section, including assessment 
        of children's eligibility for services.

    ``(d) Limitations.--
            ``(1) Services not otherwise funded.--A local educational 
        agency, local council, community-based organization, or other 
        public or nonprofit private entity may use funds under this 
        section only to pay for services that cannot be paid for using 
        other Federal, State, or local public resources or through 
        private insurance.
            ``(2) Administrative expenses.--A grantee may not use more 
        than 3 percent of the amount of the grant to pay the 
        administrative expenses described in subsection (c)(6).

    ``(e) Evaluations.--The Secretary shall directly evaluate, or enter 
into a contract for an outside evaluation of, each program carried out 
under this section and shall disseminate the findings with respect to 
such evaluation to appropriate public and private entities.
    ``(f) Definitions.--In this section:
            ``(1) Eligible child.--The term `eligible child' means a 
        child who has not attained the age of 7 years, and to whom two 
        or more of the following characteristics apply:
                    ``(A) The child has been abused, maltreated, or 
                neglected.
                    ``(B) The child has been exposed to violence.
                    ``(C) The child has been homeless.
                    ``(D) The child has been removed from child care, 
                Head Start, or preschool for behavioral reasons or is at 
                risk of being so removed.
                    ``(E) The child has been exposed to parental 
                depression or other mental illness.
                    ``(F) The family income with respect to the child is 
                below 200 percent of the poverty line.
                    ``(G) The child has been exposed to parental 
                substance abuse.
                    ``(H) The child has had early behavioral and peer 
                relationship problems.
                    ``(I) The child had a low birth weight.
                    ``(J) The child has a cognitive deficit or 
                developmental disability.
            ``(2) Local council.--The term `local council' means a 
        council that is established or designated by a local government

[[Page 115 STAT. 1855]]

        entity, Indian tribe, regional corporation, or native Hawaiian 
        entity, as appropriate, which is composed of representatives of 
        local agencies directly affected by early learning programs, 
        parents, key community leaders, and other individuals concerned 
        with early learning issues in the locality, such as elementary 
        education, child care resource and referral services, early 
        learning opportunities, child care, and health services.
            ``(3) Provider of early childhood services.--The term 
        `provider of early childhood services' means a public or private 
        entity that has regular contact with young children, including 
        child welfare agencies, child care providers, Head Start and 
        Early Head Start providers, preschools, kindergartens, 
        libraries, mental health professionals, family courts, homeless 
        shelters, and primary care providers.

                     ``Subpart 15--Arts in Education

``SEC. 5551. <<NOTE: 20 USC 7271.>>  ASSISTANCE FOR ARTS EDUCATION.

    ``(a) Purposes.--The purposes of this subpart are the following:
            ``(1) To support systemic education reform by strengthening 
        arts education as an integral part of the elementary school and 
        secondary school curriculum.
            ``(2) To help ensure that all students meet challenging 
        State academic content standards and challenging State student 
        academic achievement standards in the arts.
            ``(3) To support the national effort to enable all students 
        to demonstrate competence in the arts.

    ``(b) Authority.--The Secretary is authorized to make grants to, or 
enter into contracts or cooperative agreements with, eligible entities 
described in subsection (c).
    ``(c) Eligible Entities.--The Secretary may make assistance 
available under subsection (b) to each of the following eligible 
entities:
            ``(1) State educational agencies.
            ``(2) Local educational agencies.
            ``(3) Institutions of higher education.
            ``(4) Museums or other cultural institutions.
            ``(5) Any other public or private agencies, institutions, or 
        organizations.

    ``(d) Use of Funds.--Assistance made available under this subpart 
may be used for any of the following:
            ``(1) Research on arts education.
            ``(2) Planning, developing, acquiring, expanding, improving, 
        or disseminating information about model school-based arts 
        education programs.
            ``(3) The development of model State arts education 
        assessments based on State academic achievement standards.
            ``(4) The development and implementation of curriculum 
        frameworks for arts education.
            ``(5) The development of model inservice professional 
        development programs for arts educators and other instructional 
        staff.
            ``(6) Supporting collaborative activities with Federal 
        agencies or institutions involved in arts education, arts 
        educators, and organizations representing the arts, including 
        State and local arts agencies involved in arts education.

[[Page 115 STAT. 1856]]

            ``(7) Supporting model projects and programs in the 
        performing arts for children and youth through arrangements made 
        with the John F. Kennedy Center for the Performing Arts.
            ``(8) Supporting model projects and programs by Very Special 
        Arts which assure the participation in mainstream settings in 
        arts and education programs of individuals with disabilities.
            ``(9) Supporting model projects and programs to integrate 
        arts education into the regular elementary school and secondary 
        school curriculum.
            ``(10) Other activities that further the purposes of this 
        subpart.

    ``(e) Special Rule.--If the amount made available to the Secretary 
to carry out this subpart for any fiscal year is $15,000,000 or less, 
then such amount shall only be available to carry out the activities 
described in paragraphs (7) and (8) of subsection (d).
    ``(f) Conditions.--As conditions of receiving assistance made 
available under this subpart, the Secretary shall require each entity 
receiving such assistance--
            ``(1) to coordinate, to the extent practicable, each project 
        or program carried out with such assistance with appropriate 
        activities of public or private cultural agencies, institutions, 
        and organizations, including museums, arts education 
        associations, libraries, and theaters; and
            ``(2) to use such assistance only to supplement, and not to 
        supplant, any other assistance or funds made available from non-
        Federal sources for the activities assisted under this subpart.

    ``(g) Consultation.--In carrying out this subpart, the Secretary 
shall consult with Federal agencies or institutions, arts educators 
(including professional arts education associations), and organizations 
representing the arts (including State and local arts agencies involved 
in arts education).

 ``Subpart 16--Parental Assistance and Local Family Information Centers

``SEC. 5561. <<NOTE: 20 USC 7273.>>  PURPOSES.

    ``The purposes of this subpart are the following:
            ``(1) To provide leadership, technical assistance, and 
        financial support to nonprofit organizations (including 
        statewide nonprofit organizations) and local educational 
        agencies to help the organizations and agencies implement 
        successful and effective parental involvement policies, 
        programs, and activities that lead to improvements in student 
        academic achievement.
            ``(2) To strengthen partnerships among parents (including 
        parents of children from birth through age 5), teachers, 
        principals, administrators, and other school personnel in 
        meeting the educational needs of children.
            ``(3) To develop and strengthen the relationship between 
        parents and their children's school.
            ``(4) To further the developmental progress of children 
        assisted under this subpart.
            ``(5) To coordinate activities funded under this subpart 
        with parental involvement initiatives funded under section 1118 
        and other provisions of this Act.

[[Page 115 STAT. 1857]]

            ``(6) To provide a comprehensive approach to improving 
        student learning, through coordination and integration of 
        Federal, State, and local services and programs.

``SEC. 5562. <<NOTE: 20 USC 7273a.>>  GRANTS AUTHORIZED.

    ``(a) Parental Information and Resource Centers.--The Secretary is 
authorized to award grants in each fiscal year to nonprofit 
organizations (including statewide nonprofit organizations), and 
consortia of such organizations and local educational agencies, to 
establish school-linked or school-based parental information and 
resource centers that provide comprehensive training, information, and 
support to--
            ``(1) parents of children enrolled in elementary schools and 
        secondary schools;
            ``(2) individuals who work with the parents of children 
        enrolled in elementary schools and secondary schools;
            ``(3) State educational agencies, local educational 
        agencies, schools, organizations that support family-school 
        partnerships (such as parent-teacher associations and Parents as 
        Teachers organizations), and other organizations that carry out 
        parent education and family involvement programs; and
            ``(4) parents of children from birth through age 5.

    ``(b) Geographic Distribution.--In awarding grants under this 
subpart, the Secretary shall, to the extent practicable, ensure that 
such grants are distributed in all geographic regions of the United 
States.

``SEC. 5563. <<NOTE: 20 USC 7273b.>>  APPLICATIONS.

    ``(a) Submission.--Each nonprofit organization (including a 
statewide nonprofit organization), or a consortia of such an 
organization and a local educational agency, that desires a grant under 
this subpart shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary may 
require.
    ``(b) Contents.--Each application submitted under subsection (a), at 
a minimum, shall include assurances that the organization or consortium 
will--
            ``(1)(A) be governed by a board of directors the membership 
        of which includes parents; or
            ``(B) be an organization or consortium that represents the 
        interests of parents;
            ``(2) establish a special advisory committee the membership 
        of which includes--
                    ``(A) parents of children enrolled in elementary 
                schools and secondary schools, who shall constitute a 
                majority of the members of the special advisory 
                committee;
                    ``(B) representatives of education professionals 
                with expertise in improving services for disadvantaged 
                children; and
                    ``(C) representatives of local elementary schools 
                and secondary schools, including students and 
                representatives from local youth organizations;
            ``(3) use at least 50 percent of the funds received under 
        this subpart in each fiscal year to serve areas with high 
        concentrations of low-income families, in order to serve parents 
        who are severely educationally or economically disadvantaged;

[[Page 115 STAT. 1858]]

            ``(4) operate a center of sufficient size, scope, and 
        quality to ensure that the center is adequate to serve the 
        parents in the area;
            ``(5) serve both urban and rural areas;
            ``(6) design a center that meets the unique training, 
        information, and support needs of parents of children enrolled 
        in elementary schools and secondary schools, particularly such 
        parents who are educationally or economically disadvantaged;
            ``(7) demonstrate the capacity and expertise to conduct the 
        effective training, information, and support activities for 
        which assistance is sought;
            ``(8) network with--
                    ``(A) local educational agencies and schools;
                    ``(B) parents of children enrolled in elementary 
                schools and secondary schools;
                    ``(C) parent training and information centers 
                assisted under section 682 of the Individuals with 
                Disabilities Education Act;
                    ``(D) clearinghouses; and
                    ``(E) other organizations and agencies;
            ``(9) focus on serving parents of children enrolled in 
        elementary schools and secondary schools who are parents of low-
        income, minority, and limited English proficient children;
            ``(10) use at least 30 percent of the funds received under 
        this subpart in each fiscal year to establish, expand, or 
        operate Parents as Teachers programs, Home Instruction for 
        Preschool Youngsters programs, or other early childhood parent 
        education programs;
            ``(11) provide assistance to parents in areas such as 
        understandingState and local standards and measures of student 
        and school academic achievement;
            ``(12) work with State educational agencies and local 
        educational agencies to determine parental needs and the best 
        means for delivery of services;
            ``(13) identify and coordinate Federal, State, and local 
        services and programs that support improved student learning, 
        including programs supported under this Act, violence prevention 
        programs, nutrition programs, housing programs, Head Start 
        programs, adult education, and job training; and
            ``(14) work with and foster partnerships with other agencies 
        that provide programs and deliver services described in 
        paragraph (13) to make such programs and services more 
        accessible to children and families.

``SEC. 5564. <<NOTE: 20 USC 7273c.>>  USES OF FUNDS.

    ``(a) In General.--Grant funds received under this subpart shall be 
used for one or more of the following:
            ``(1) To assist parents in participating effectively in 
        their children's education and to help their children meet State 
        and local standards, such as assisting parents--
                    ``(A) to engage in activities that will improve 
                student academic achievement, including understanding 
                the accountability systems in place within their State 
                educational agency and local educational agency and 
                understanding their children's educational academic 
                achievement in comparison to State and local standards;

[[Page 115 STAT. 1859]]

                    ``(B) to provide follow-up support for their 
                children's educational achievement;
                    ``(C) to communicate effectively with teachers, 
                principals, counselors, administrators, and other school 
                personnel;
                    ``(D) to become active participants in the 
                development, implementation, and review of school-parent 
                compacts, parent involvement policies, and school 
                planning and improvement;
                    ``(E) to participate in the design and provision of 
                assistance to students who are not making adequate 
                academic progress;
                    ``(F) to participate in State and local 
                decisionmaking; and
                    ``(G) to train other parents (such as training 
                related to Parents as Teachers activities).
            ``(2) To obtain information about the range of options, 
        programs, services, and resources available at the national, 
        State, and local levels to assist parents and school personnel 
        who work with parents.
            ``(3) To help the parents learn and use the technology 
        applied in their children's education.
            ``(4) To plan, implement, and fund activities for parents 
        that coordinate the education of their children with other 
        Federal, State, and local services and programs that serve their 
        children or their families.
            ``(5) To provide support for State or local educational 
        personnel, if the participation of such personnel will further 
        the activities assisted under the grant.
            ``(6) To coordinate and integrate early childhood programs 
        with school-age programs.

    ``(b) Permissive Activities.--Grant funds received under this 
subpart may be used to assist schools with activities including one or 
more of the following:
            ``(1) Developing and implementing the schools' plans or 
        activities under sections 1118 and 1119.
            ``(2) Developing and implementing school improvement plans, 
        including addressing problems that develop in the implementation 
        of the schools' plans or activities under sections 1118 and 
        1119.
            ``(3) Providing information about assessment and individual 
        results to parents in a manner and a language the family can 
        understand.
            ``(4) Coordinating the efforts of Federal, State, and local 
        parent education and family involvement initiatives.
            ``(5) Providing training, information, and support to--
                    ``(A) State educational agencies;
                    ``(B) local educational agencies and schools, 
                especially low-performing local educational agencies and 
                schools; and
                    ``(C) organizations that support family-school 
                partnerships.

``SEC. 5565. <<NOTE: 20 USC 7273d.>>  ADMINISTRATIVE PROVISIONS.

    ``(a) Matching Funds for Grant Renewal.--For each fiscal year after 
the first fiscal year in which an organization or consortium receives 
assistance under this subpart, the organization or consortium shall 
demonstrate in the application submitted for such

[[Page 115 STAT. 1860]]

fiscal year, that a portion of the services provided by the organization 
or consortium is supported through non-Federal contributions, which 
contributions may be in cash or in kind.
    ``(b) Submission of Information.--
            ``(1) In general.--Each organization or consortium receiving 
        assistance under this subpart shall submit to the Secretary, on 
        an annual basis, information concerning the parental information 
        and resource centers assisted under this subpart, including the 
        following information:
                    ``(A) The number of parents (including the number of 
                minority and limited English proficient parents) who 
                receive information and training.
                    ``(B) The types and modes of training, information, 
                and support provided under this subpart.
                    ``(C) The strategies used to reach and serve parents 
                of minority and limited English proficient children, 
                parents with limited literacy skills, and other parents 
                in need of the services provided under this subpart.
                    ``(D) The parental involvement policies and 
                practices used by the center and an evaluation of 
                whether such policies and practices are effective in 
                improving home-school communication, student academic 
                achievement, student and school academic achievement, 
                and parental involvement in school planning, review, and 
                improvement.
                    ``(E) The effectiveness of the activities that local 
                educational agencies and schools are carrying out, with 
                regard to parental involvement and other activities 
                assisted under this Act, that lead to improved student 
                academic achievement and improved student and school 
                academic achievement.
            ``(2) Dissemination.--The Secretary shall disseminate 
        annually to Congress and the public the information that each 
        organization or consortium submits under paragraph (1).

    ``(c) Technical Assistance.--The Secretary shall provide technical 
assistance, by grant or contract, for the establishment, development, 
and coordination of parent training, information, and support programs 
and parental information and resource centers.
    ``(d) Rule of Construction.--Nothing in this subpart shall be 
construed to prohibit a parental information and resource center from--
            ``(1) having its employees or agents meet with a parent at a 
        site that is not on school grounds; or
            ``(2) working with another agency that serves children.

    ``(e) Parental Rights.--Notwithstanding any other provision of this 
subpart--
            ``(1) no person (including a parent who educates a child at 
        home, a public school parent, or a private school parent) shall 
        be required to participate in any program of parent education or 
        developmental screening under this subpart; and
            ``(2) no program or center assisted under this subpart shall 
        take any action that infringes in any manner on the right of a 
        parent to direct the education of their children.

    ``(f) Continuation of Awards.--The Secretary shall use funds made 
available under this subpart to continue to make grant or contract 
payments to each entity that was awarded a multiyear grant or contract 
under title IV of the Goals 2000: Educate America Act (as such title was 
in effect on the day before the date of

[[Page 115 STAT. 1861]]

enactment of the No Child Left Behind Act of 2001) for the duration of 
the grant or contract award.

``SEC. 5566. <<NOTE: 20 USC 7273e.>>  LOCAL FAMILY INFORMATION CENTERS.

    ``(a) In General.--If the amount made available to carry out this 
subpart for a fiscal year is more than $50,000,000, the Secretary is 
authorized to award 50 percent of the amount that exceeds $50,000,000 as 
grants to, and enter into contracts and cooperative agreements with, 
local nonprofit parent organizations to enable the organizations to 
support local family information centers that help ensure that parents 
of students in elementary schools and secondary schools assisted under 
this subpart have the training, information, and support the parents 
need to enable the parents to participate effectively in their 
children's early childhood education, in their children's elementary and 
secondary education, and in helping their children to meet challenging 
State academic content and student academic achievement standards.
    ``(b) Local Nonprofit Parent Organization Defined.--In this section, 
the term `local nonprofit parent organization' means a private nonprofit 
organization (other than an institution of higher education) that--
            ``(1) has a demonstrated record of working with low-income 
        individuals and parents;
            ``(2)(A) has a board of directors, the majority of whom are 
        parents of students in elementary schools and secondary schools 
        assisted under part A of title I and located in the geographic 
        area to be served by a local family information center; or
            ``(B) has a special governing committee to direct and 
        implement a local family information center, a majority of the 
        members of whom are parents of students in schools assisted 
        under part A of title I; and
            ``(3) is located in a community with elementary schools and 
        secondary schools that receive funds under part A of title I, 
        and is accessible to the families of students in those schools.

               ``Subpart 17--Combatting Domestic Violence

``SEC. 5571. <<NOTE: 20 USC 7275.>>  GRANTS TO COMBAT THE IMPACT OF 
            EXPERIENCING OR WITNESSING DOMESTIC VIOLENCE ON ELEMENTARY 
            AND SECONDARY SCHOOL CHILDREN.

    ``(a) Definitions.--In this section:
            ``(1) Domestic violence.--The term `domestic violence' has 
        the meaning given that term in section 2003 of the Omnibus Crime 
        Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg-2).
            ``(2) Expert.--The term `expert' means--
                    ``(A) an expert on domestic violence, sexual 
                assault, and child abuse from the educational, legal, 
                youth, mental health, substance abuse, or victim 
                advocacy field; and
                    ``(B) a State or local domestic violence coalition 
                or community-based youth organization.
            ``(3) Witness domestic violence.--
                    ``(A) In general.--The term `witness domestic 
                violence' means to witness--
                          ``(i) an act of domestic violence that 
                      constitutes actual or attempted physical assault; 
                      or

[[Page 115 STAT. 1862]]

                          ``(ii) a threat or other action that places 
                      the victim in fear of domestic violence.
                    ``(B) Witness.--In subparagraph (A), the term 
                `witness' means--
                          ``(i) to directly observe an act, threat, or 
                      action described in subparagraph (A), or the 
                      aftermath of that act, threat, or action; or
                          ``(ii) to be within earshot of an act, threat, 
                      or action described in subparagraph (A), or the 
                      aftermath of that act, threat, or action.

    ``(b) Grants Authorized.--
            ``(1) Authority.--The Secretary is authorized to award 
        grants to local educational agencies that work with experts to 
        enable the elementary schools and secondary schools served by 
        the local educational agency--
                    ``(A) to provide training to school administrators, 
                faculty, and staff, with respect to issues concerning 
                children who experience domestic violence in dating 
                relationships or who witness domestic violence, and the 
                impact of the violence on the children;
                    ``(B) to provide educational programming for 
                students regarding domestic violence and the impact of 
                experiencing or witnessing domestic violence on 
                children;
                    ``(C) to provide support services for students and 
                school personnel to develop and strengthen effective 
                prevention and intervention strategies with respect to 
                issues concerning children who experience domestic 
                violence in dating relationships or who witness domestic 
                violence, and the impact of the violence on the 
                children; and
                    ``(D) to develop and implement school system 
                policies regarding appropriate and safe responses to, 
                identification of, and referral procedures for, students 
                who are experiencing or witnessing domestic violence.
            ``(2) Award basis.--The Secretary is authorized to award 
        grants under this section--
                    ``(A) on a competitive basis; and
                    ``(B) in a manner that ensures that such grants are 
                equitably distributed among local educational agencies 
                located in rural, urban, and suburban areas.
            ``(3) Policy dissemination.--The Secretary shall disseminate 
        to local educational agencies any Department policy guidance 
        regarding the prevention of domestic violence and the impact on 
        children of experiencing or witnessing domestic violence.

    ``(c) Uses of Funds.--Funds made available to carry out this subpart 
may be used for one or more of the following purposes:
            ``(1) To provide training for elementary school and 
        secondary school administrators, faculty, and staff that 
        addresses issues concerning elementary school and secondary 
        school students who experience domestic violence in dating 
        relationships or who witness domestic violence, and the impact 
        of such violence on those students.
            ``(2) To provide education programs for elementary school 
        and secondary school students that are developmentally 
        appropriate for the students' grade levels and are designed to 
        meet any unique cultural and language needs of the particular 
        student populations.

[[Page 115 STAT. 1863]]

            ``(3) To develop and implement elementary school and 
        secondary school system policies regarding--
                    ``(A) appropriate and safe responses to, 
                identification of, and referral procedures for, students 
                who are experiencing or witnessing domestic violence; 
                and
                    ``(B) to develop and implement policies on reporting 
                and referral procedures for those students.
            ``(4) To provide the necessary human resources to respond to 
        the needs of elementary school and secondary school students and 
        personnel who are faced with the issue of domestic violence, 
        such as a resource person who is either on-site or on-call and 
        who is an expert.
            ``(5) To provide media center materials and educational 
        materials to elementary schools and secondary schools that 
        address issues concerning children who experience domestic 
        violence in dating relationships or who witness domestic 
        violence, and the impact of the violence on those children.
            ``(6) To conduct evaluations to assess the impact of 
        programs and policies assisted under this subpart in order to 
        enhance the development of the programs.

    ``(d) Confidentiality.--Policies, programs, training materials, and 
evaluations developed and implemented under subsection (c) shall address 
issues of safety and confidentiality for the victim and the victim's 
family in a manner consistent with applicable Federal and State laws.
    ``(e) Application.--To be eligible for a grant under this section 
for a fiscal year, a local educational agency, in consultation with an 
expert, shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require. The application shall include each of the following:
            ``(1) A description of the need for funds provided under the 
        grant and the plan for implementation of any of the activities 
        described in subsection (c).
            ``(2) A description of how the experts will work in 
        consultation and collaboration with the local educational 
        agency.
            ``(3) Measurable objectives for, and expected results from, 
        the use of the funds provided under the grant.
            ``(4) Provisions for appropriate remuneration for 
        collaborating partners.

             ``Subpart 18--Healthy, High-Performance Schools

``SEC. 5581. <<NOTE: 20 USC 7277.>>  GRANT PROGRAM AUTHORIZED.

    ``The Secretary, in consultation with the Secretary of Energy and 
the Administrator of the Environmental Protection Agency, is authorized 
to award grants to State educational agencies to permit such State 
educational agencies to carry out section 5582.

``SEC. 5582. <<NOTE: 20 USC 7277a.>>  STATE USES OF FUNDS.

    ``(a) Subgrants.--
            ``(1) In general.--A State educational agency receiving a 
        grant under this subpart shall use funds made available under 
        the grant to award subgrants to local educational agencies to 
        permit such local educational agencies to carry out the 
        activities described in section 5583.

[[Page 115 STAT. 1864]]

            ``(2) Limitation.--A State educational agency shall award 
        subgrants under this subsection to local educational agencies 
        that are the neediest, as determined by the State, and that have 
        made a commitment to develop healthy, high-performance school 
        buildings in accordance with the plan developed and approved 
        under paragraph (3)(A).
            ``(3) Implementation.--
                    ``(A) Plans.--A State educational agency shall award 
                subgrants under this subsection only to local 
                educational agencies that, in consultation with the 
                State educational agency and State agencies with 
                responsibilities relating to energy and health, have 
                developed plans that the State educational agency 
                determines to be feasible and appropriate in order to 
                achieve the purposes for which the subgrants are made.
                    ``(B) Supplementing grant funds.--The State 
                educational agency shall encourage local educational 
                agencies that receive subgrants under this subsection to 
                supplement their subgrant funds with funds from other 
                sources in order to implement their plans.

    ``(b) Administration.--A State educational agency receiving a grant 
under this subpart shall use the grant funds made available under this 
subpart for one or more of the following:
            ``(1) To evaluate compliance by local educational agencies 
        with the requirements of this subpart.
            ``(2) To distribute information and materials on healthy, 
        high-performance school buildings for both new and existing 
        facilities.
            ``(3) To organize and conduct programs for school board 
        members, school district personnel, and others to disseminate 
        information on healthy, high-performance school buildings.
            ``(4) To provide technical services and assistance in 
        planning and designing healthy, high-performance school 
        buildings.
            ``(5) To collect and monitor information pertaining to 
        healthy, high-performance school building projects.

``SEC. 5583. <<NOTE: 20 USC 7277b.>>  LOCAL USES OF FUNDS.

    ``(a) In General.--A local educational agency that receives a 
subgrant under section 5582(a) shall use the subgrant funds to plan and 
prepare for healthy, high-performance school building projects that--
            ``(1) reduce energy use to at least 30 percent below that of 
        a school constructed in compliance with standards prescribed in 
        chapter 8 of the 2000 International Energy Conservation Code, or 
        a similar State code intended to achieve substantially 
        equivalent results;
            ``(2) meet Federal and State health and safety codes; and
            ``(3) support healthful, energy efficient, and 
        environmentally sound practices.

    ``(b) Use of Funds.--A local educational agency that receives a 
subgrant under section 5582(a) shall use funds for one or more of the 
following:
            ``(1) To develop a comprehensive energy audit of the energy 
        consumption characteristics of a building and the need for 
        additional energy conservation measures necessary to allow 
        schools to meet the guidelines set out in subsection (a).

[[Page 115 STAT. 1865]]

            ``(2) To produce a comprehensive analysis of building 
        strategies, designs, materials, and equipment that--
                    ``(A) are cost effective, produce greater energy 
                efficiency, and enhance indoor air quality; and
                    ``(B) can be used when conducting school 
                construction and renovation or purchasing materials and 
                equipment.
            ``(3) To obtain research and provide technical services and 
        assistance in planning and designing healthy, high-performance 
        school buildings, including developing a timeline for 
        implementation of such plans.

``SEC. 5584. <<NOTE: 20 USC 7277c.>>  REPORT TO CONGRESS.

    ``The Secretary shall conduct a biennial review of State actions 
implementing this subpart and carrying out the plans developed under 
this subpart through State and local funding, and shall submit a report 
to Congress on the results of such reviews.

``SEC. 5585. <<NOTE: 20 USC 7277d.>>  LIMITATIONS.

    ``No funds received under this subpart may be used for any of the 
following:
            ``(1) Payment of maintenance of costs in connection with any 
        projects constructed in whole or in part with Federal funds 
        provided under this subpart.
            ``(2) Construction, renovation, or repair of school 
        facilities.
            ``(3) Construction, renovation, repair, or acquisition of a 
        stadium or other facility primarily used for athletic contests 
        or exhibitions, or other events for which admission is charged 
        to the general public.

``SEC. 5586. <<NOTE: 20 USC 7277e.>>  HEALTHY, HIGH-PERFORMANCE SCHOOL 
            BUILDING DEFINED.

    ``In this subpart, the term `healthy, high-performance school 
building' means a school building in which the design, construction, 
operation, and maintenance--
            ``(1) use energy-efficient and affordable practices and 
        materials;
            ``(2) are cost-effective;
            ``(3) enhance indoor air quality; and
            ``(4) protect and conserve water.

    ``Subpart 19--Grants for Capital Expenses of Providing Equitable 
                  Services for Private School Students

``SEC. 5591. <<NOTE: 20 USC 7279.>>  GRANT PROGRAM AUTHORIZED.

    ``The Secretary is authorized to award grants to State educational 
agencies, from allotments made under section 5593, to enable the State 
educational agencies to award subgrants to local educational agencies to 
pay for capital expenses in accordance with this subpart.

``SEC. 5592. <<NOTE: 20 USC 7279a.>>  USES OF FUNDS.

    ``A local educational agency that receives a subgrant under this 
subpart shall use the subgrant funds only to pay for capital expenses 
incurred in providing equitable services for private school students 
under section 1120.

[[Page 115 STAT. 1866]]

``SEC. 5593. <<NOTE: 20 USC 7279b.>>  ALLOTMENTS TO STATES.

    ``From the funds made available to carry out this subpart for a 
fiscal year, the Secretary shall allot to each State an amount that 
bears the same ratio to the funds made available as the number of 
private school students who received services under part A of title I in 
the State in the most recent year for which data, satisfactory to the 
Secretary, are available bears to the number of such students in all 
States in such year.

``SEC. 5594. <<NOTE: 20 USC 7279c.>>  SUBGRANTS TO LOCAL EDUCATIONAL 
            AGENCIES.

    ``(a) Applications.--A local educational agency that desires to 
receive a subgrant under this subpart shall submit an application to the 
State educational agency involved at such time, in such manner, and 
containing such information as the State educational agency may require.
    ``(b) Distribution.--A State educational agency shall award 
subgrants to local educational agencies within the State based on the 
degree of need set forth in their respective applications submitted 
under subsection (a).

``SEC. 5595. <<NOTE: 20 USC 7279d.>>  CAPITAL EXPENSES DEFINED.

    ``In this subpart, the term `capital expenses' means--
            ``(1) expenditures for noninstructional goods and services, 
        such as the purchase, lease, or renovation of real and personal 
        property, including mobile educational units and leasing of 
        neutral sites or spaces;
            ``(2) insurance and maintenance costs;
            ``(3) transportation; and
            ``(4) other comparable goods and services.

``SEC. 5596. <<NOTE: 20 USC 7279e.>>  TERMINATION.

    ``The authority provided by this subpart terminates effective 
October 1, 2003.

   ``Subpart 20--Additional Assistance for Certain Local Educational 
            Agencies Impacted by Federal Property Acquisition

``SEC. 5601. <<NOTE: 20 USC 7281.>>  RESERVATION.

    ``The Secretary is authorized to provide additional assistance to 
meet special circumstances relating to the provision of education in 
local educational agencies eligible to receive assistance under section 
8002.

``SEC. 5602. <<NOTE: 20 USC 7281a.>>  ELIGIBILITY.

    ``A local educational agency is eligible to receive additional 
assistance under this subpart only if such agency--
            ``(1) received a payment under both section 8002 and section 
        8003(b) for fiscal year 1996 and is eligible to receive payments 
        under those sections for the year of application;
            ``(2) provided a free public education to children described 
        under subparagraph (A), (B), or (D) of section 8003(a)(1);
            ``(3) had a military installation located within the 
        geographic boundaries of the local educational agency that was 
        closed as a result of base closure or realignment and, at the 
        time at which the agency is applying for a payment under

[[Page 115 STAT. 1867]]

        this subpart, the agency does not have a military installation 
        located within its geographic boundaries;
            ``(4) remains responsible for the free public education of 
        children residing in housing located on Federal property within 
        the boundaries of the closed military installation but whose 
        parents are on active duty in the uniformed services and 
        assigned to a military activity located within the boundaries of 
        an adjoining local educational agency; and
            ``(5) demonstrates to the satisfaction of the Secretary that 
        such agency's per-pupil revenue derived from local sources for 
        current expenditures is not less than that revenue for the 
        preceding fiscal year.

``SEC. 5603. <<NOTE: 20 USC 7281b.>>  MAXIMUM AMOUNT.

    ``(a) Maximum Amount.--The maximum amount that a local educational 
agency is eligible to receive under this subpart for any fiscal year, 
when combined with its payment under section 8002(b), shall not be more 
than 50 percent of the maximum amount determined under section 8002(b).
    ``(b) Insufficient Funds.--If funds appropriated under section 5401 
are insufficient to pay the amount determined under subsection (a), the 
Secretary shall ratably reduce the payment to each local educational 
agency eligible under this subpart.
    ``(c) Excess Funds.--If funds appropriated under section 5401 are in 
excess of the amount determined under subsection (a), the Secretary 
shall ratably distribute any excess funds to all local educational 
agencies eligible for payment under section 8002(b).

``Subpart <<NOTE: Women's Educational Equity Act of 2001.>>  21--Women's 
Educational Equity Act

``SEC. 5611. <<NOTE: 20 USC 7283.>>  SHORT TITLE AND FINDINGS.

    ``(a) Short Title.--This subpart may be cited as the `Women's 
Educational Equity Act of 2001'.
    ``(b) Findings.--Congress finds that--
            ``(1) since the enactment of title IX of the Education 
        Amendments of 1972, women and girls have made strides in 
        educational achievement and in their ability to avail themselves 
        of educational opportunities;
            ``(2) because of funding provided under the Women's 
        Educational Equity Act of 2001, more curricula, training, and 
        other educational materials concerning educational equity for 
        women and girls are available for national dissemination;
            ``(3) teaching and learning practices in the United States 
        are frequently inequitable as such practices relate to women and 
        girls, for example--
                    ``(A) sexual harassment, particularly that 
                experienced by girls, undermines the ability of schools 
                to provide a safe and equitable learning or workplace 
                environment;
                    ``(B) classroom textbooks and other educational 
                materials do not sufficiently reflect the experiences, 
                achievements, or concerns of women and, in most cases, 
                are not written by women or persons of color;
                    ``(C) girls do not take as many mathematics and 
                science courses as boys, girls lose confidence in their 
                mathematics and science ability as girls move through 
                adolescence, and there are few women role models in the 
                sciences; and

[[Page 115 STAT. 1868]]

                    ``(D) pregnant and parenting teenagers are at high 
                risk for dropping out of school and existing dropout 
                prevention programs do not adequately address the needs 
                of such teenagers;
            ``(4) efforts to improve the quality of public education 
        also must include efforts to ensure equal access to quality 
        education programs for all women and girls;
            ``(5) Federal support should address not only research and 
        development of innovative model curricula and teaching and 
        learning strategies to promote gender equity, but should also 
        assist schools and local communities implement gender equitable 
        practices;
            ``(6) Federal assistance for gender equity must be tied to 
        systemic reform, involve collaborative efforts to implement 
        effective gender practices at the local level, and encourage 
        parental participation; and
            ``(7) excellence in education, high educational achievements 
        and standards, and the full participation of women and girls in 
        American society, cannot be achieved without educational equity 
        for women and girls.

``SEC. 5612. <<NOTE: 20 USC 7283a.>>  STATEMENT OF PURPOSE.

    ``It is the purpose of this subpart--
            ``(1) to promote gender equity in education in the United 
        States;
            ``(2) to provide financial assistance to enable educational 
        agencies and institutions to meet the requirements of title IX 
        of the Educational Amendments of 1972; and
            ``(3) to promote equity in education for women and girls who 
        suffer from multiple forms of discrimination based on sex, race, 
        ethnic origin, limited English proficiency, disability, or age.

``SEC. 5613. <<NOTE: 20 USC 7283b.>>  PROGRAMS AUTHORIZED.

    ``(a) In General.--The Secretary is authorized--
            ``(1) to promote, coordinate, and evaluate gender equity 
        policies, programs, activities, and initiatives in all Federal 
        education programs and offices;
            ``(2) to develop, maintain, and disseminate materials, 
        resources, analyses, and research relating to education equity 
        for women and girls;
            ``(3) to provide information and technical assistance to 
        assure the effective implementation of gender equity programs;
            ``(4) to coordinate gender equity programs and activities 
        with other Federal agencies with jurisdiction over education and 
        related programs;
            ``(5) to assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying research 
        priorities related to education equity for women and girls; and
            ``(6) to perform any other activities consistent with 
        achieving the purposes of this subpart.

    ``(b) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to, and enter into contracts and cooperative agreements 
        with, public agencies, private nonprofit agencies, 
        organizations, institutions, student groups, community groups, 
        and individuals, for a period not to exceed 4 years, to--

[[Page 115 STAT. 1869]]

                    ``(A) provide grants to develop model equity 
                programs; and
                    ``(B) provide funds for the implementation of equity 
                programs in schools throughout the Nation.
            ``(2) Support and technical assistance.--To achieve the 
        purposes of this subpart, the Secretary is authorized to provide 
        support and technical assistance--
                    ``(A) to implement effective gender-equity policies 
                and programs at all educational levels, including--
                          ``(i) assisting educational agencies and 
                      institutions to implement policies and practices 
                      to comply with title IX of the Education 
                      Amendments of 1972;
                          ``(ii) training for teachers, counselors, 
                      administrators, and other school personnel, 
                      especially preschool and elementary school 
                      personnel, in gender equitable teaching and 
                      learning practices;
                          ``(iii) leadership training for women and 
                      girls to develop professional and marketable 
                      skills to compete in the global marketplace, 
                      improve self-esteem, and benefit from exposure to 
                      positive role models;
                          ``(iv) school-to-work transition programs, 
                      guidance and counseling activities, and other 
                      programs to increase opportunities for women and 
                      girls to enter a technologically demanding 
                      workplace and, in particular, to enter highly 
                      skilled, high paying careers in which women and 
                      girls have been underrepresented;
                          ``(v) enhancing educational and career 
                      opportunities for those women and girls who suffer 
                      multiple forms of discrimination, based on sex, 
                      and on race, ethnic origin, limited English 
                      proficiency, disability, socioeconomic status, or 
                      age;
                          ``(vi) assisting pregnant students and 
                      students rearing children to remain in or to 
                      return to secondary school, graduate, and prepare 
                      their preschool children to start school;
                          ``(vii) evaluating exemplary model programs to 
                      assess the ability of such programs to advance 
                      educational equity for women and girls;
                          ``(viii) introduction into the classroom of 
                      textbooks, curricula, and other materials designed 
                      to achieve equity for women and girls;
                          ``(ix) programs and policies to address sexual 
                      harassment and violence against women and girls 
                      and to ensure that educational institutions are 
                      free from threats to the safety of students and 
                      personnel;
                          ``(x) nondiscriminatory tests of aptitude and 
                      achievement and of alternative assessments that 
                      eliminate biased assessment instruments from use;
                          ``(xi) programs to increase educational 
                      opportunities, including higher education, 
                      vocational training, and other educational 
                      programs for low-income women, including 
                      underemployed and unemployed women, and women 
                      receiving assistance under a State program funded 
                      under part A of title IV of the Social Security 
                      Act;
                          ``(xii) programs to improve representation of 
                      women in educational administration at all levels; 
                      and

[[Page 115 STAT. 1870]]

                          ``(xiii) planning, development, and initial 
                      implementation of--
                                    ``(I) comprehensive institutionwide 
                                or districtwide evaluation to assess the 
                                presence or absence of gender equity in 
                                educational settings;
                                    ``(II) comprehensive plans for 
                                implementation of equity programs in 
                                State educational agencies and local 
                                educational agencies and institutions of 
                                higher education, including community 
                                colleges; and
                                    ``(III) innovative approaches to 
                                school-community partnerships for 
                                educational equity; and
                    ``(B) for research and development, which shall be 
                coordinated with each of the research institutes of the 
                Office of Educational Research and Improvement to avoid 
                duplication of research efforts, designed to advance 
                gender equity nationwide and to help make policies and 
                practices in educational agencies and institutions, and 
                local communities, gender equitable, including--
                          ``(i) research and development of innovative 
                      strategies and model training programs for 
                      teachers and other education personnel;
                          ``(ii) the development of high-quality and 
                      challenging assessment instruments that are 
                      nondiscriminatory;
                          ``(iii) the development and evaluation of 
                      model curricula, textbooks, software, and other 
                      educational materials to ensure the absence of 
                      gender stereotyping and bias;
                          ``(iv) the development of instruments and 
                      procedures that employ new and innovative 
                      strategies to assess whether diverse educational 
                      settings are gender equitable;
                          ``(v) the development of instruments and 
                      strategies for evaluation, dissemination, and 
                      replication of promising or exemplary programs 
                      designed to assist local educational agencies in 
                      integrating gender equity in their educational 
                      policies and practices;
                          ``(vi) updating high-quality educational 
                      materials previously developed through awards made 
                      under this subpart;
                          ``(vii) the development of policies and 
                      programs to address and prevent sexual harassment 
                      and violence to ensure that educational 
                      institutions are free from threats to safety of 
                      students and personnel;
                          ``(viii) the development and improvement of 
                      programs and activities to increase opportunity 
                      for women, including continuing educational 
                      activities, vocational education, and programs for 
                      low-income women, including underemployed and 
                      unemployed women, and women receiving assistance 
                      under the State program funded under part A of 
                      title IV of the Social Security Act; and
                          ``(ix) the development of guidance and 
                      counseling activities, including career education 
                      programs, designed to ensure gender equity.

[[Page 115 STAT. 1871]]

``SEC. 5614. <<NOTE: 20 USC 7283c.>>  APPLICATIONS.

    ``An application under this subpart shall--
            ``(1) set forth policies and procedures that will ensure a 
        comprehensive evaluation of the activities assisted under this 
        subpart, including an evaluation of the practices, policies, and 
        materials used by the applicant and an evaluation or estimate of 
        the continued significance of the work of the project following 
        completion of the award period;
            ``(2) demonstrate how the applicant will address perceptions 
        of gender roles based on cultural differences or stereotypes;
            ``(3) for applications for assistance under section 
        5613(b)(1), demonstrate how the applicant will foster 
        partnerships and, where applicable, share resources with State 
        educational agencies, local educational agencies, institutions 
        of higher education, community-based organizations (including 
        organizations serving women), parent, teacher, and student 
        groups, businesses, or other recipients of Federal educational 
        funding which may include State literacy resource centers;
            ``(4) for applications for assistance under section 
        5613(b)(1), demonstrate how parental involvement in the project 
        will be encouraged; and
            ``(5) for applications for assistance under section 
        5613(b)(1), describe plans for continuation of the activities 
        assisted under this subpart with local support following 
        completion of the grant period and termination of Federal 
        support under this subpart.

``SEC. 5615. <<NOTE: 20 USC 7283d.>>  CRITERIA AND PRIORITIES.

    ``(a) Criteria and Priorities.--
            ``(1) In general.--The Secretary shall establish separate 
        criteria and priorities for awards under paragraphs (1) and (2) 
        of section 5613(b) to ensure that funds under this subpart are 
        used for programs that most effectively will achieve the 
        purposes of this subpart.
            ``(2) Criteria.--The criteria described in paragraph (1) may 
        include the extent to which the activities assisted under this 
        subpart--
                    ``(A) address the needs of women and girls of color 
                and women and girls with disabilities;
                    ``(B) meet locally defined and documented 
                educational equity needs and priorities, including 
                compliance with title IX of the Education Amendments of 
                1972;
                    ``(C) are a significant component of a comprehensive 
                plan for educational equity and compliance with title IX 
                of the Education Amendments of 1972 in the particular 
                school district, institution of higher education, 
                vocational-technical institution, or other educational 
                agency or institution; and
                    ``(D) implement an institutional change strategy 
                with long-term impact that will continue as a central 
                activity of the applicant after the grant under this 
                subpart has terminated.

    ``(b) Priorities.--In awarding grants under this subpart, the 
Secretary may give special consideration to applications--
            ``(1) submitted by applicants that have not received 
        assistance under this subpart or this subpart's predecessor 
        authorities;

[[Page 115 STAT. 1872]]

            ``(2) for projects that will contribute significantly to 
        directly improving teaching and learning practices in the local 
        community; and
            ``(3) for projects that will--
                    ``(A) provide for a comprehensive approach to 
                enhancing gender equity in educational institutions and 
                agencies;
                    ``(B) draw on a variety of resources, including the 
                resources of local educational agencies, community-based 
                organizations, institutions of higher education, and 
                private organizations;
                    ``(C) implement a strategy with long-term impact 
                that will continue as a central activity of the 
                applicant after the grant under this subpart has 
                terminated;
                    ``(D) address issues of national significance that 
                can be duplicated; and
                    ``(E) address the educational needs of women and 
                girls who suffer multiple or compound discrimination 
                based on sex and on race, ethnic origin, disability, or 
                age.

    ``(c) Special Rule.--To the extent feasible, the Secretary shall 
ensure that grants awarded under this subpart for each fiscal year 
address--
            ``(1) all levels of education, including preschool, 
        elementary and secondary education, higher education, vocational 
        education, and adult education;
            ``(2) all regions of the United States; and
            ``(3) urban, rural, and suburban educational institutions.

    ``(d) Coordination.--Research activities supported under this 
subpart--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to ensure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by the Office; and
            ``(2) may include collaborative research activities which 
        are jointly funded and carried out with the Office of 
        Educational Research and Improvement.

    ``(e) Limitation.--Nothing in this subpart shall be construed as 
prohibiting men and boys from participating in any programs or 
activities assisted with funds under this subpart.

``SEC. 5616. <<NOTE: 20 USC 7283e.>>  REPORT.

    ``Not <<NOTE: Deadline.>>  later than January 1, 2006, the Secretary 
shall submit to the President and Congress a report on the status of 
educational equity for girls and women in the Nation.

``SEC. 5617. <<NOTE: 20 USC 7283f.>>  ADMINISTRATION.

    ``(a) Evaluation and <<NOTE: Deadline.>>  Dissemination.--Not later 
than January 1, 2005, the Secretary shall evaluate and disseminate 
materials and programs developed under this subpart and shall report to 
Congress regarding such evaluation materials and programs.

    ``(b) Program Operations.--The Secretary shall ensure that the 
activities assisted under this subpart are administered within the 
Department by a person who has recognized professional qualifications 
and experience in the field of gender equity education.

[[Page 115 STAT. 1873]]

``SEC. 5618. <<NOTE: 20 USC 7283g.>>  AMOUNT.

    ``From amounts made available to carry out this subpart for a fiscal 
year, not less than two-thirds of such amount shall be used to carry out 
the activities described in section 5613(b)(1).''.

SEC. 502. <<NOTE: 20 USC 6301 note.>>  CONTINUATION OF AWARDS.

    (a) In General.--Notwithstanding any other provision of this Act or 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et 
seq.), in the case of any agency or consortium that was awarded a grant 
under section 5111 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7211) or any person or agency that was awarded a contract or 
grant under part B, D, or E of title X of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8031 et seq., 8091 et seq., 8131 et 
seq.), prior to the date of enactment of this Act, the Secretary of 
Education shall continue to provide funds in accordance with the terms 
of such award until the date on which the award period terminates under 
such terms.
    (b) Special Rule.--Notwithstanding any other provision of this Act, 
any person or agency that was awarded or entered into a grant, contract, 
or cooperative agreement under part B of title V of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7231 et seq.), prior to the 
date of enactment of this Act shall continue to receive funds in 
accordance with the terms of such grant, contract, or agreement until 
the date on which the grant, contract, or agreement period terminates 
under such terms.

                TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

SEC. 601. FLEXIBILITY AND ACCOUNTABILITY.

    Title VI (20 U.S.C. 7301 et seq.) is amended to read as follows:

               ``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

                ``PART A--IMPROVING ACADEMIC ACHIEVEMENT

                       ``Subpart 1--Accountability

``SEC. 6111. <<NOTE: 20 USC 7301.>>  GRANTS FOR STATE ASSESSMENTS AND 
            RELATED ACTIVITIES.

    ``The Secretary shall make grants to States to enable the States--
            ``(1) to pay the costs of the development of the additional 
        State assessments and standards required by section 1111(b), 
        which may include the costs of working in voluntary partnerships 
        with other States, at the sole discretion of each such State; 
        and
            ``(2) if a State has developed the assessments and standards 
        required by section 1111(b), to administer those assessments or 
        to carry out other activities described in this subpart and 
        other activities related to ensuring that the State's schools

[[Page 115 STAT. 1874]]

        and local educational agencies are held accountable for results, 
        such as the following:
                    ``(A) Developing challenging State academic content 
                and student academic achievement standards and aligned 
                assessments in academic subjects for which standards and 
                assessments are not required by section 1111(b).
                    ``(B) Developing or improving assessments of English 
                language proficiency necessary to comply with section 
                1111(b)(7).
                    ``(C) Ensuring the continued validity and 
                reliability of State assessments.
                    ``(D) Refining State assessments to ensure their 
                continued alignment with the State's academic content 
                standards and to improve the alignment of curricula and 
                instructional materials.
                    ``(E) Developing multiple measures to increase the 
                reliability and validity of State assessment systems.
                    ``(F) Strengthening the capacity of local 
                educational agencies and schools to provide all students 
                the opportunity to increase educational achievement, 
                including carrying out professional development 
                activities aligned with State student academic 
                achievement standards and assessments.
                    ``(G) Expanding the range of accommodations 
                available to students with limited English proficiency 
                and students with disabilities to improve the rates of 
                inclusion of such students, including professional 
                development activities aligned with State academic 
                achievement standards and assessments.
                    ``(H) Improving the dissemination of information on 
                student achievement and school performance to parents 
                and the community, including the development of 
                information and reporting systems designed to identify 
                best educational practices based on scientifically based 
                research or to assist in linking records of student 
                achievement, length of enrollment, and graduation over 
                time.

``SEC. 6112. <<NOTE: 20 USC 7301a.>>  GRANTS FOR ENHANCED ASSESSMENT 
            INSTRUMENTS.

    ``(a) Grant Program Authorized.--From funds made available to carry 
out this subpart, the Secretary shall award, on a competitive basis, 
grants to State educational agencies that have submitted an application 
at such time, in such manner, and containing such information as the 
Secretary may require, which demonstrate to the satisfaction of the 
Secretary, that the requirements of this section will be met, for the 
following:
            ``(1) To enable States (or consortia of States) to 
        collaborate with institutions of higher education, other 
        research institutions, or other organizations to improve the 
        quality, validity, and reliability of State academic assessments 
        beyond the requirements for such assessments described in 
        section 1111(b)(3).
            ``(2) To measure student academic achievement using multiple 
        measures of student academic achievement from multiple sources.
            ``(3) To chart student progress over time.
            ``(4) To evaluate student academic achievement through the 
        development of comprehensive academic assessment

[[Page 115 STAT. 1875]]

        instruments, such as performance and technology-based academic 
        assessments.

    ``(b) Application.--Each State wishing to apply for funds under this 
section shall include in its State plan under part A of title I such 
information as the Secretary may require.
    ``(c) Annual Report.--Each State educational agency receiving a 
grant under this section shall submit an annual report to the Secretary 
describing its activities, and the result of those activities, under the 
grant.

``SEC. 6113. <<NOTE: 20 USC 7301b.>>  FUNDING.

    ``(a) Authorization of Appropriations.--
            ``(1) National assessment of educational progress.--For the 
        purpose of administering the State assessments under the 
        National Assessment of Educational Progress, there are 
        authorized to be appropriated $72,000,000 for fiscal year 2002, 
        and such sums as may be necessary for each of the 5 succeeding 
        fiscal years.
            ``(2) State assessments and related activities.--For the 
        purpose of carrying out this subpart, there are authorized to be 
        appropriated $490,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the 5 succeeding fiscal years.

    ``(b) Allotment of Appropriated Funds.--
            ``(1) In general.--From amounts made available for each 
        fiscal year under subsection (a)(2) that are equal to or less 
        than the amount described in section 1111(b)(3)(D) (hereinafter 
        in this subsection referred to as the `trigger amount'), the 
        Secretary shall--
                    ``(A) reserve one-half of 1 percent for the Bureau 
                of Indian Affairs;
                    ``(B) reserve one-half of 1 percent for the outlying 
                areas; and
                    ``(C) from the remainder, allocate to each State an 
                amount equal to--
                          ``(i) $3,000,000; and
                          ``(ii) with respect to any amounts remaining 
                      after the allocation is made under clause (i), an 
                      amount that bears the same relationship to such 
                      total remaining amounts as the number of students 
                      ages 5 through 17 in the State (as determined by 
                      the Secretary on the basis of the most recent 
                      satisfactory data) bears to the total number of 
                      such students in all States.
            ``(2) Remainder.--Any amounts remaining for a fiscal year 
        after the Secretary carries out paragraph (1) shall be made 
        available as follows:
                    ``(A)(i) To award funds under section 6112 to States 
                according to the quality, needs, and scope of the State 
                application under that section.
                    ``(ii) In determining the grant amount under clause 
                (i), the Secretary shall ensure that a State's grant 
                shall include an amount that bears the same relationship 
                to the total funds available under this paragraph for 
                the fiscal year as the number of students ages 5 through 
                17 in the State (as determined by the Secretary on the 
                basis

[[Page 115 STAT. 1876]]

                of the most recent satisfactory data) bears to the total 
                number of such students in all States.
                    ``(B) Any amounts remaining after the Secretary 
                awards funds under subparagraph (A) shall be allocated 
                to each State that did not receive a grant under such 
                subparagraph, in an amount that bears the same 
                relationship to the total funds available under this 
                subparagraph as the number of students ages 5 through 17 
                in the State (as determined by the Secretary on the 
                basis of the most recent satisfactory data) bears to the 
                total number of such students in all States.

    ``(c) State Defined.--In this section, the term `State' means each 
of the 50 States, the District of Columbia, and the Commonwealth of 
Puerto Rico.

  ``Subpart <<NOTE: State and Local Transferability Act.>>  2--Funding 
Transferability for State and Local Educational Agencies

``SEC. 6121. <<NOTE: 20 USC 7305.>>  SHORT TITLE.

    ``This subpart may be cited as the `State and Local Transferability 
Act'.

``SEC. 6122. <<NOTE: 20 USC 7305a.>>  PURPOSE.

    ``The purpose of this subpart is to allow States and local 
educational agencies the flexibility--
            ``(1) to target Federal funds to Federal programs that most 
        effectively address the unique needs of States and localities; 
        and
            ``(2) to transfer Federal funds allocated to other 
        activities to allocations for certain activities authorized 
        under title I.

``SEC. 6123. <<NOTE: 20 USC 7305b.>>  TRANSFERABILITY OF FUNDS.

    ``(a) Transfers by States.--
            ``(1) In general.--In accordance with this subpart, a State 
        may transfer not more than 50 percent of the nonadministrative 
        State funds (including funds transferred under paragraph (2)) 
        allotted to the State for use for State-level activities under 
        the following provisions for a fiscal year to one or more of the 
        State's allotments for such fiscal year under any other of such 
        provisions:
                    ``(A) Section 2113(a)(3).
                    ``(B) Section 2412(a)(1).
                    ``(C) Subsections (a)(1) (with the agreement of the 
                Governor) and (c)(1) of section 4112 and section 
                4202(c)(3).
                    ``(D) Section 5112(b).
            ``(2) Additional funds for title i.--In accordance with this 
        subpart and subject to the 50 percent limitation described in 
        paragraph (1), a State may transfer any funds allotted to the 
        State under a provision listed in paragraph (1) to its allotment 
        under title I.

    ``(b) Transfers by Local Educational Agencies.--
            ``(1) Authority to transfer funds.--
                    ``(A) In general.--In accordance with this subpart, 
                a local educational agency (except a local educational 
                agency identified for improvement under section 1116(c) 
                or subject to corrective action under section 
                1116(c)(9))

[[Page 115 STAT. 1877]]

                may transfer not more than 50 percent of the funds 
                allocated to it (including funds transferred under 
                subparagraph (C)) under each of the provisions listed in 
                paragraph (2) for a fiscal year to one or more of its 
                allocations for such fiscal year under any other 
                provision listed in paragraph (2).
                    ``(B) Agencies identified for improvement.--In 
                accordance with this subpart, a local educational agency 
                identified for improvement under section 1116(c) may 
                transfer not more than 30 percent of the funds allocated 
                to it (including funds transferred under subparagraph 
                (C)) under each of the provisions listed in paragraph 
                (2) for a fiscal year--
                          ``(i) to its allocation for school improvement 
                      for such fiscal year under section 1003; or
                          ``(ii) to any other allocation for such fiscal 
                      year if such transferred funds are used only for 
                      local educational agency improvement activities 
                      consistent with section 1116(c).
                    ``(C) Additional funds for title i.--In accordance 
                with this subpart and subject to the percentage 
                limitation described in subparagraph (A) or (B), as 
                applicable, a local educational agency may transfer 
                funds allocated to such agency under any of the 
                provisions listed in paragraph (2) for a fiscal year to 
                its allocation for part A of title I for that fiscal 
                year.
            ``(2) Applicable provisions.--A local educational agency may 
        transfer funds under subparagraph (A), (B), or (C) of paragraph 
        (1) from allocations made under each of the following 
        provisions:
                    ``(A) Section 2121.
                    ``(B) Section 2412(a)(2)(A).
                    ``(C) Section 4112(b)(1).
                    ``(D) Section 5112(a).

    ``(c) No Transfer of Title I Funds.--A State or a local educational 
agency may not transfer under this subpart to any other program any 
funds allotted or allocated to it for part A of title I.
    ``(d) Modification of Plans and Applications; Notification.--
            ``(1) State <<NOTE: Deadline.>>  transfers.--Each State that 
        makes a transfer of funds under this section shall--
                    ``(A) modify, to account for such transfer, each 
                State plan, or application submitted by the State, to 
                which such funds relate;
                    ``(B) not later than 30 days after the date of such 
                transfer, submit a copy of such modified plan or 
                application to the Secretary; and
                    ``(C) not later than 30 days before the effective 
                date of such transfer, notify the Secretary of such 
                transfer.
            ``(2) Local transfers.--Each local educational agency that 
        makes a transfer of funds under this section shall--
                    ``(A) modify, to account for such transfer, each 
                local plan, or application submitted by the agency, to 
                which such funds relate;

[[Page 115 STAT. 1878]]

                    ``(B) <<NOTE: Deadline.>>  not later than 30 days 
                after the date of such transfer, submit a copy of such 
                modified plan or application to the State; and
                    ``(C) <<NOTE: Deadline.>>  not later than 30 days 
                before the effective date of such transfer, notify the 
                State of such transfer.

    ``(e) Applicable Rules.--
            ``(1) In general.--Except as otherwise provided in this 
        subpart, funds transferred under this section are subject to 
        each of the rules and requirements applicable to the funds under 
        the provision to which the transferred funds are transferred.
            ``(2) Consultation.--Each State educational agency or local 
        educational agency that transfers funds under this section shall 
        conduct consultations in accordance with section 9501, if such 
        transfer transfers funds from a program that provides for the 
        participation of students, teachers, or other educational 
        personnel, from private schools.

 ``Subpart <<NOTE: State and Local Flexibility Demonstration Act.>>  3--
State and Local Flexibility Demonstration

``SEC. 6131. <<NOTE: 20 USC 7311.>>  SHORT TITLE.

    ``This subpart may be cited as the `State and Local Flexibility 
Demonstration Act'.

``SEC. 6132. <<NOTE: 20 USC 7311a.>>  PURPOSE.

    ``The purpose of this subpart is to create options for selected 
State educational agencies and local educational agencies--
            ``(1) to improve the academic achievement of all students, 
        and to focus the resources of the Federal Government upon such 
        achievement;
            ``(2) to improve teacher quality and subject matter mastery, 
        especially in mathematics, reading, and science;
            ``(3) to better empower parents, educators, administrators, 
        and schools to effectively address the needs of their children 
        and students;
            ``(4) to give participating State educational agencies and 
        local educational agencies greater flexibility in determining 
        how to increase their students' academic achievement and 
        implement education reforms in their schools;
            ``(5) to eliminate barriers to implementing effective State 
        and local education reform, while preserving the goals of 
        opportunity for all students and accountability for student 
        progress;
            ``(6) to hold participating State educational agencies and 
        local educational agencies accountable for increasing the 
        academic achievement of all students, especially disadvantaged 
        students; and
            ``(7) to narrow achievement gaps between the lowest and 
        highest achieving groups of students so that no child is left 
        behind.

``SEC. 6133. <<NOTE: 20 USC 7311b.>>  GENERAL PROVISION.

    ``For purposes of this subpart, any State that is one local 
educational agency shall be considered a State educational agency and 
not a local educational agency.

[[Page 115 STAT. 1879]]

                ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

``SEC. 6141. <<NOTE: 20 USC 7315.>>  STATE FLEXIBILITY.

    ``(a) Flexibility Authority.--Except as otherwise provided in this 
chapter, the Secretary shall, on a competitive basis, grant flexibility 
authority to not more than seven eligible State educational agencies, 
under which the agencies may consolidate and use funds in accordance 
with section 6142.
    ``(b) Definitions.--In this chapter:
            ``(1) Eligible state educational agency.--The term `eligible 
        State educational agency' means a State educational agency 
        that--
                    ``(A) submits an approvable application under 
                subsection (c); and
                    ``(B) proposes performance agreements--
                          ``(i) that shall be entered into with not 
                      fewer than 4, and not more than 10, local 
                      educational agencies;
                          ``(ii) not fewer than half of which shall be 
                      entered into with high-poverty local educational 
                      agencies; and
                          ``(iii) that require the local educational 
                      agencies described in clause (i) to align their 
                      use of consolidated funds under section 6152 with 
                      the State educational agency's use of consolidated 
                      funds under section 6142.
            ``(2) High-poverty local educational agency.--The term 
        `high-poverty local educational agency' means a local 
        educational agency for which 20 percent or more of the children 
        who are age 5 through 17, and served by the local educational 
        agency, are from families with incomes below the poverty line.

    ``(c) State Applications.--
            ``(1) Applications.--To be eligible to receive flexibility 
        authority under this chapter, a State educational agency shall 
        submit an application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require, including--
                    ``(A) information demonstrating, to the satisfaction 
                of the Secretary, that the grant of authority offers 
                substantial promise of--
                          ``(i) assisting the State educational agency 
                      in making adequate yearly progress, as defined 
                      under section 1111(b)(2); and
                          ``(ii) aligning State and local reforms and 
                      assisting the local educational agencies that 
                      enter into performance agreements with the State 
                      educational agency under paragraph (2) in making 
                      such adequate yearly progress;
                    ``(B) the performance agreements that the State 
                educational agency proposes to enter into with eligible 
                local educational agencies under paragraph (2);
                    ``(C) information demonstrating that the State 
                educational agency has consulted with and involved 
                parents, representatives of local educational agencies, 
                and other educators in the development of the terms of 
                the grant of authority;
                    ``(D) a provision specifying that the grant of 
                flexibility authority shall be for a term of not more 
                than 5 years;
                    ``(E) a list of the programs described in section 
                6142(b) that are included in the scope of the grant of 
                authority;

[[Page 115 STAT. 1880]]

                    ``(F) a provision specifying that no requirements of 
                any program described in section 6142(b) and included by 
                a State educational agency in the scope of the grant of 
                authority shall apply to that agency, except as 
                otherwise provided in this chapter;
                    ``(G) a 5-year plan describing how the State 
                educational agency intends to consolidate and use the 
                funds from programs included in the scope of the grant 
                of authority, for any educational purpose authorized 
                under this Act, in order to make adequate yearly 
                progress and advance the education priorities of the 
                State and the local educational agencies with which the 
                State educational agency enters into performance 
                agreements;
                    ``(H) an assurance that the State educational agency 
                will provide parents, teachers, and representatives of 
                local educational agencies and schools with notice and 
                an opportunity to comment on the proposed terms of the 
                grant of authority;
                    ``(I) an assurance that the State educational 
                agency, and the local educational agencies with which 
                the State educational agency enters into performance 
                agreements, will use fiscal control and fund accounting 
                procedures that will ensure proper disbursement of, and 
                accounting for, Federal funds consolidated and used 
                under the grant of authority;
                    ``(J) an assurance that the State educational 
                agency, and the local educational agencies with which 
                the State educational agency enters into performance 
                agreements, will meet the requirements of all applicable 
                Federal civil rights laws in carrying out the grant of 
                authority, including consolidating and using funds under 
                the grant of authority;
                    ``(K) an assurance that, in consolidating and using 
                funds under the grant of authority--
                          ``(i) the State educational agency, and the 
                      local educational agencies with which the State 
                      educational agency enters into performance 
                      agreements, will provide for the equitable 
                      participation of students and professional staff 
                      in private schools consistent with section 9501; 
                      and
                          ``(ii) that sections 9502, 9503, and 9504 
                      shall apply to all services and assistance 
                      provided with such funds in the same manner as 
                      such sections apply to services and assistance 
                      provided in accordance with section 9501;
                    ``(L) an assurance that the State educational agency 
                will, for the duration of the grant of authority, use 
                funds consolidated under section 6142 only to supplement 
                the amount of funds that would, in the absence of those 
                Federal funds, be made available from non-Federal 
                sources for the education of students participating in 
                programs assisted with the consolidated funds, and not 
                to supplant those funds; and
                    ``(M) an assurance that the State educational agency 
                shall, not later than 1 year after the date on which the 
                Secretary makes the grant of authority, and annually 
                thereafter during the term of the grant of authority, 
                disseminate widely to parents and the general public, 
                transmit to the

[[Page 115 STAT. 1881]]

                Secretary, distribute to print and broadcast media, and 
                post on the Internet, a report, which shall include a 
                detailed description of how the State educational 
                agency, and the local educational agencies with which 
                the State educational agency enters into performance 
                agreements, used the funds consolidated under the grant 
                of authority to make adequate yearly progress and 
                advance the education priorities of the State and local 
                educational agencies in the State.
            ``(2) Proposed performance agreements with local educational 
        agencies.--
                    ``(A) In general.--A State educational agency that 
                wishes to receive flexibility authority under this 
                subpart shall propose performance agreements that meet 
                the requirements of clauses (i) and (ii) of subsection 
                (b)(1)(B) (subject to approval of the application or 
                amendment involved under subsection (d) or (e)).
                    ``(B) Performance agreements.--Each proposed 
                performance agreement with a local educational agency 
                shall--
                          ``(i) contain plans for the local educational 
                      agency to consolidate and use funds in accordance 
                      with section 6152, for activities that are aligned 
                      with the State educational agency's plan described 
                      in paragraph (1)(G);
                          ``(ii) be subject to the requirements of 
                      chapter B relating to agreements between the 
                      Secretary and a local educational agency, except--
                                    ``(I) that, as appropriate, 
                                references in that chapter to the 
                                Secretary shall be deemed to be 
                                references to the State educational 
                                agency; and
                                    ``(II) as otherwise provided in this 
                                chapter; and
                          ``(iii) contain an assurance that the local 
                      educational agency will, for the duration of the 
                      grant of authority, use funds consolidated under 
                      section 6152 only to supplement the amount of 
                      funds that would, in the absence of those Federal 
                      funds, be made available from non-Federal sources 
                      for the education of students participating in 
                      programs assisted with the consolidated funds, and 
                      not to supplant those funds.

    ``(d) Approval and Selection.--The Secretary shall--
            ``(1) establish a peer review process to assist in the 
        review of proposed State applications under this section; and
            ``(2) appoint individuals to participate in the peer review 
        process who are--
                    ``(A) representative of parents, teachers, State 
                educational agencies, and local educational agencies; 
                and
                    ``(B) familiar with educational standards, 
                assessments, accountability, curricula, instruction, and 
                staff development, and other diverse educational needs 
                of students.

    ``(e) Amendment to Grant of Authority.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall amend the grant of flexibility authority made to a State 
        educational agency under this chapter, in each of the following 
        circumstances:
                    ``(A) Reduction in scope of the grant of 
                authority.--Not later than 1 year after receiving a 
                grant

[[Page 115 STAT. 1882]]

                of flexibility authority, the State educational agency 
                seeks to amend the grant of authority to remove from the 
                scope of the grant of authority any program described in 
                section 6142(b).
                    ``(B) Expansion of scope of the grant of 
                authority.--Not later than 1 year after receiving a 
                grant of flexibility authority, the State educational 
                agency seeks to amend the grant of authority to include 
                in the scope of the grant of authority any additional 
                program described in section 6142(b) or any additional 
                achievement indicators for which the State will be held 
                accountable.
                    ``(C) Changes with respect to number of performance 
                agreements.--The State educational agency seeks to amend 
                the grant of authority to include or remove performance 
                agreements that the State educational agency proposes to 
                enter into with eligible local educational agencies, 
                except that in no case may the State educational agency 
                enter into performance agreements that do not meet the 
                requirements of clauses (i) and (ii) of subsection 
                (b)(1)(B).
            ``(2) Approval and disapproval.--
                    ``(A) Deemed approval.--A proposed amendment to a 
                grant of flexibility authority submitted by a State 
                educational agency pursuant to paragraph (1) shall be 
                deemed to be approved by the Secretary unless the 
                Secretary makes a written determination, prior to the 
                expiration of the 120-day period beginning on the date 
                on which the Secretary received the proposed amendment, 
                that the proposed amendment is not in compliance with 
                this chapter.
                    ``(B) Disapproval.--The Secretary shall not finally 
                disapprove the proposed amendment, except after giving 
                the State educational agency notice and an opportunity 
                for a hearing.
                    ``(C) Notification.--If the Secretary finds that the 
                proposed amendment is not in compliance, in whole or in 
                part, with this chapter, the Secretary shall--
                          ``(i) give the State educational agency notice 
                      and an opportunity for a hearing; and
                          ``(ii) notify the State educational agency of 
                      the finding of noncompliance and, in such 
                      notification, shall--
                                    ``(I) cite the specific provisions 
                                in the proposed amendment that are not 
                                in compliance; and
                                    ``(II) request additional 
                                information, only as to the noncompliant 
                                provisions, needed to make the proposed 
                                amendment compliant.
                    ``(D) Response.--If the State educational agency 
                responds to the Secretary's notification described in 
                subparagraph (C)(ii) during the 45-day period beginning 
                on the date on which the agency received the 
                notification, and resubmits the proposed amendment with 
                the requested information described in subparagraph 
                (C)(ii)(II), the Secretary shall approve or disapprove 
                such proposed amendment prior to the later of--
                          ``(i) the expiration of the 45-day period 
                      beginning on the date on which the proposed 
                      amendment is resubmitted; or

[[Page 115 STAT. 1883]]

                          ``(ii) the expiration of the 120-day period 
                      described in subparagraph (A).
                    ``(E) Failure to respond.--If the State educational 
                agency does not respond to the Secretary's notification 
                described in subparagraph (C)(ii) during the 45-day 
                period beginning on the date on which the agency 
                received the notification, such proposed amendment shall 
                be deemed to be disapproved.
            ``(3) Treatment of program funds withdrawn from grant of 
        authority.--Beginning on the effective date of an amendment 
        executed under paragraph (1)(A), each program requirement of 
        each program removed from the scope of a grant of authority 
        shall apply to the use of funds made available under the program 
        by the State educational agency and each local educational 
        agency with which the State educational agency has a performance 
        agreement.

``SEC. 6142. <<NOTE: 20 USC 7315a.>>  CONSOLIDATION AND USE OF FUNDS.

    ``(a) In General.--
            ``(1) Authority.--Under a grant of flexibility authority 
        made under this chapter, a State educational agency may 
        consolidate Federal funds described in subsection (b) and made 
        available to the agency, and use such funds for any educational 
        purpose authorized under this Act.
            ``(2) Program requirements.--Except as otherwise provided in 
        this chapter, a State educational agency may use funds under 
        paragraph (1) notwithstanding the program requirements of the 
        program under which the funds were made available to the State.

    ``(b) Eligible Funds and Programs.--
            ``(1) Funds.--The funds described in this subsection are 
        funds, for State-level activities and State administration, that 
        are described in the following provisions:
                    ``(A) Section 1004.
                    ``(B) Paragraphs (4) and (5) of section 1202(d).
                    ``(C) Section 2113(a)(3).
                    ``(D) Section 2412(a)(1).
                    ``(E) Subsections (a) (with the agreement of the 
                Governor), (b)(2), and (c)(1) of section 4112.
                    ``(F) Paragraphs (2) and (3) of section 4202(c).
                    ``(G) Section 5112(b).
            ``(2) Programs.--The programs described in this subsection 
        are the programs authorized to be carried out with funds 
        described in paragraph (1).

    ``(c) Special Rule.--A State educational agency that receives a 
grant of flexibility authority under this chapter--
            ``(1) shall ensure that the funds described in section 
        5112(a) are allocated to local educational agencies in the State 
        in accordance with section 5112(a); but
            ``(2) may specify how the local educational agencies shall 
        use the allocated funds.

``SEC. 6143. <<NOTE: 20 USC 7315b.>>  PERFORMANCE REVIEW AND PENALTIES.

    ``(a) Midterm Review.--
            ``(1) Failure to make adequate yearly progress.--If, during 
        the term of a grant of flexibility authority under this chapter, 
        a State educational agency fails to make adequate yearly 
        progress for 2 consecutive years, the Secretary shall,

[[Page 115 STAT. 1884]]

        after providing notice and an opportunity for a hearing, 
        terminate the grant of authority promptly.
            ``(2) Noncompliance.--The Secretary may, after providing 
        notice and an opportunity for a hearing (including the 
        opportunity to provide evidence as described in paragraph (3)), 
        terminate a grant of flexibility authority for a State if there 
        is evidence that the State educational agency involved has 
        failed to comply with the terms of the grant of authority.
            ``(3) Evidence.--If a State educational agency believes that 
        a determination of the Secretary under this subsection is in 
        error for statistical or other substantive reasons, the State 
        educational agency may provide supporting evidence to the 
        Secretary, and the Secretary shall consider that evidence before 
        making a final termination determination under this subsection.

    ``(b) Final Review.--
            ``(1) In general.--If, at the end of the 5-year term of a 
        grant of flexibility authority made under this chapter, the 
        State educational agency has not met the requirements described 
        in section 6141(c), the Secretary may not renew the grant of 
        flexibility authority under section 6144.
            ``(2) Compliance.--Beginning on the date on which such term 
        ends, the State educational agency, and the local educational 
        agencies with which the State educational agency has entered 
        into performance agreements, shall be required to comply with 
        each of the program requirements in effect on such date for each 
        program that was included in the grant of authority.

``SEC. 6144. <<NOTE: 20 USC 7315c.>>  RENEWAL OF GRANT OF FLEXIBILITY 
            AUTHORITY.

    ``(a) In General.--Except as provided in section 6143 and in 
accordance with this section, if a State educational agency has met, by 
the end of the original 5-year term of a grant of flexibility authority 
under this chapter, the requirements described in section 6141(c), the 
Secretary shall renew a grant of flexibility authority for one 
additional 5-year term.
    ``(b) Renewal.--The Secretary may not renew a grant of flexibility 
authority under this chapter unless, not later than 6 months before the 
end of the original term of the grant of authority, the State 
educational agency seeking the renewal notifies the Secretary, and the 
local educational agencies with which the State educational agency has 
entered into performance agreements, of the agency's intention to renew 
the grant of authority.
    ``(c) Effective Date.--A renewal under this section shall be 
effective on the later of--
            ``(1) the expiration of the original term of the grant of 
        authority; or
            ``(2) the date on which the State educational agency seeking 
        the renewal provides to the Secretary all data required for the 
        application described in section 6141(c).

              ``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION

``SEC. 6151. <<NOTE: 20 USC 7321.>>  LOCAL FLEXIBILITY DEMONSTRATION 
            AGREEMENTS.

    ``(a) Authority.--Except as otherwise provided in this chapter, the 
Secretary shall, on a competitive basis, enter into local flexibility 
demonstration agreements--

[[Page 115 STAT. 1885]]

            ``(1) with local educational agencies that submit approvable 
        proposed agreements under subsection (c) and that are selected 
        under subsection (b); and
            ``(2) under which those agencies may consolidate and use 
        funds in accordance with section 6152.

    ``(b) Selection of Local Educational Agencies.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall enter into local flexibility demonstration agreements 
        under this chapter with not more than 80 local educational 
        agencies. Each local educational agency shall be selected on a 
        competitive basis from among those local educational agencies 
        that--
                    ``(A) submit a proposed local flexibility 
                demonstration agreement under subsection (c) to the 
                Secretary and demonstrate, to the satisfaction of the 
                Secretary, that the agreement--
                          ``(i) has a substantial promise of assisting 
                      the local educational agency in meeting the 
                      State's definition of adequate yearly progress, 
                      advancing the education priorities of the local 
                      educational agency, meeting the general purposes 
                      of the programs included under this chapter and 
                      the purposes of this part, improving student 
                      achievement, and narrowing achievement gaps in 
                      accordance with section 1111(b);
                          ``(ii) meets the requirements of this chapter; 
                      and
                          ``(iii) contains a plan to consolidate and use 
                      funds in accordance with section 6152 in order to 
                      meet the State's definition of adequate yearly 
                      progress and the local educational agency's 
                      specific, measurable goals for improving student 
                      achievement and narrowing achievement gaps; and
                    ``(B) have consulted and involved parents and other 
                educators in the development of the proposed local 
                flexibility demonstration agreement.
            ``(2) Geographic distribution.--
                    ``(A) Initial agreements.--The Secretary may enter 
                into not more than three local flexibility demonstration 
                agreements under this chapter with local educational 
                agencies in each State that does not have a grant of 
                flexibility authority under chapter A.
                    ``(B) Urban and rural areas.--If more than three 
                local educational agencies in a State submit approvable 
                local flexibility demonstration agreements under this 
                chapter, the Secretary shall select local educational 
                agencies with which to enter into such agreements in a 
                manner that ensures an equitable distribution among such 
                agencies serving urban and rural areas.
                    ``(C) Priority of states to enter into state 
                flexibility demonstration agreements.--Notwithstanding 
                any other provision of this part, a local educational 
                agency may not seek to enter into a local flexibility 
                demonstration agreement under this chapter if that 
                agency is located in a State for which the State 
                educational agency--
                          ``(i) has, not later than 4 months after the 
                      date of enactment of the No Child Left Behind Act 
                      of 2001, notified the Secretary of its intent to 
                      apply for a grant of flexibility authority under 
                      chapter A and, within

[[Page 115 STAT. 1886]]

                      such period of time as the Secretary may 
                      establish, is provided with such authority by the 
                      Secretary; or
                          ``(ii) has, at any time after such period, 
                      been granted flexibility authority under chapter 
                      A.

    ``(c) Required Terms of Local Flexibility Demonstration Agreement.--
Each local flexibility demonstration agreement entered into with the 
Secretary under this chapter shall contain each of the following terms:
            ``(1) Duration.--The local flexibility demonstration 
        agreement shall be for a term of 5 years.
            ``(2) Application of program requirements.--The local 
        flexibility demonstration agreement shall provide that no 
        requirements of any program described in section 6152 and 
        included by a local educational agency in the scope of its 
        agreement shall apply to that agency, except as otherwise 
        provided in this chapter.
            ``(3) List of programs.--The local flexibility demonstration 
        agreement shall list which of the programs described in section 
        6152 are included in the scope of the agreement.
            ``(4) Use of funds to improve student achievement.--The 
        local flexibility demonstration agreement shall contain a 5-year 
        plan describing how the local educational agency intends to 
        consolidate and use the funds from programs included in the 
        scope of the agreement for any educational purpose authorized 
        under this Act to advance the education priorities of the local 
        educational agency, meet the general purposes of the included 
        programs, improve student achievement, and narrow achievement 
        gaps in accordance with section 1111(b).
            ``(5) Local input.--The local flexibility demonstration 
        agreement shall contain an assurance that the local educational 
        agency will provide parents, teachers, and representatives of 
        schools with notice and an opportunity to comment on the 
        proposed terms of the local flexibility demonstration agreement.
            ``(6) Fiscal responsibilities.--The local flexibility 
        demonstration agreement shall contain an assurance that the 
        local educational agency will use fiscal control and fund 
        accounting procedures that will ensure proper disbursement of, 
        and accounting for, Federal funds consolidated and used under 
        the agreement.
            ``(7) Civil rights.--The local flexibility demonstration 
        agreement shall contain an assurance that the local educational 
        agency will meet the requirements of all applicable Federal 
        civil rights laws in carrying out the agreement and in 
        consolidating and using the funds under the agreement.
            ``(8) Private school participation.--The local flexibility 
        demonstration agreement shall contain an assurance that the 
        local educational agency agrees that in consolidating and using 
        funds under the agreement--
                    ``(A) the local educational agency, will provide for 
                the equitable participation of students and professional 
                staff in private schools consistent with section 9501; 
                and
                    ``(B) that sections 9502, 9503, and 9504 shall apply 
                to all services and assistance provided with such funds 
                in the same manner as such sections apply to services 
                and assistance provided in accordance with section 9501.
            ``(9) Supplanting.--The local flexibility demonstration 
        agreement shall contain an assurance that the local educational

[[Page 115 STAT. 1887]]

        agency will, for the duration of the grant of authority, use 
        funds consolidated under section 6152 only to supplement the 
        amount of funds that would, in the absence of those Federal 
        funds, be made available from non-Federal sources for the 
        education of students participating in programs assisted with 
        the consolidated funds, and not to supplant those funds.
            ``(10) Annual reports.--The local flexibility demonstration 
        agreement shall contain an assurance that the local educational 
        agency shall, not later than 1 year after the date on which the 
        Secretary enters into the agreement, and annually thereafter 
        during the term of the agreement, disseminate widely to parents 
        and the general public, transmit to the Secretary, and the State 
        educational agency for the State in which the local educational 
        agency is located, distribute to print and broadcast media, and 
        post on the Internet, a report that includes a detailed 
        description of how the local educational agency used the funds 
        consolidated under the agreement to improve student academic 
        achievement and reduce achievement gaps.

    ``(d) Peer Review.--The Secretary shall--
            ``(1) establish a peer review process to assist in the 
        review of proposed local flexibility demonstration agreements 
        under this chapter; and
            ``(2) appoint individuals to the peer review process who are 
        representative of parents, teachers, State educational agencies, 
        and local educational agencies, and who are familiar with 
        educational standards, assessments, accountability, curriculum, 
        instruction and staff development, and other diverse educational 
        needs of students.

    ``(e) Amendment to Performance Agreement.--
            ``(1) In general.--In each of the following circumstances, 
        the Secretary shall amend a local flexibility demonstration 
        agreement entered into with a local educational agency under 
        this chapter:
                    ``(A) Reduction in scope of local flexibility 
                demonstration agreement.--Not <<NOTE: Deadline.>>  later 
                than 1 year after entering into a local flexibility 
                demonstration agreement, the local educational agency 
                seeks to amend the agreement to remove from the scope 
                any program described in section 6152.
                    ``(B) Expansion of scope of local flexibility 
                demonstration agreement.--Not <<NOTE: Deadline.>>  later 
                than 1 year after entering into the local flexibility 
                demonstration agreement, a local educational agency 
                seeks to amend the agreement to include in its scope any 
                additional program described in section 6251 or any 
                additional achievement indicators for which the local 
                educational agency will be held accountable.
            ``(2) Approval and disapproval.--
                    ``(A) Deemed approval.--A proposed amendment to a 
                local flexibility demonstration agreement pursuant to 
                paragraph (1) shall be deemed to be approved by the 
                Secretary unless the Secretary makes a written 
                determination, prior to the expiration of the 120-day 
                period beginning on the date on which the Secretary 
                received the proposed amendment, that the proposed 
                amendment is not in compliance with this chapter.

[[Page 115 STAT. 1888]]

                    ``(B) Disapproval.--The Secretary shall not finally 
                disapprove the proposed amendment, except after giving 
                the local educational agency notice and an opportunity 
                for a hearing.
                    ``(C) Notification.--If the Secretary finds that the 
                proposed amendment is not in compliance, in whole or in 
                part, with this chapter, the Secretary shall--
                          ``(i) give the local educational agency notice 
                      and an opportunity for a hearing; and
                          ``(ii) notify the local educational agency of 
                      the finding of noncompliance and, in such 
                      notification, shall--
                                    ``(I) cite the specific provisions 
                                in the proposed amendment that are not 
                                in compliance; and
                                    ``(II) request additional 
                                information, only as to the noncompliant 
                                provisions, needed to make the proposed 
                                amendment compliant.
                    ``(D) Response.--If the local educational agency 
                responds to the Secretary's notification described in 
                subparagraph (C)(ii) during the 45-day period beginning 
                on the date on which the agency received the 
                notification, and resubmits the proposed amendment with 
                the requested information described in subparagraph 
                (C)(ii)(II), the Secretary shall approve or disapprove 
                such proposed amendment prior to the later of--
                          ``(i) the expiration of the 45-day period 
                      beginning on the date on which the proposed 
                      amendment is resubmitted; or
                          ``(ii) the expiration of the 120-day period 
                      described in subparagraph (A).
                    ``(E) Failure to respond.--If the local educational 
                agency does not respond to the Secretary's notification 
                described in subparagraph (C)(ii) during the 45-day 
                period beginning on the date on which the agency 
                received the notification, such proposed amendment shall 
                be deemed to be disapproved.
            ``(3) Treatment of program funds withdrawn from agreement.--
        Beginning on the effective date of an amendment executed under 
        paragraph (1)(A), each program requirement of each program 
        removed from the scope of a local flexibility demonstration 
        agreement shall apply to the use of funds made available under 
        the program by the local educational agency.

``SEC. 6152. <<NOTE: 20 USC 7321a.>>  CONSOLIDATION AND USE OF FUNDS.

    ``(a) In General.--
            ``(1) Authority.--Under a local flexibility demonstration 
        agreement entered into under this chapter, a local educational 
        agency may consolidate Federal funds made available to the 
        agency under the provisions listed in subsection (b) and use 
        such funds for any educational purpose permitted under this Act.
            ``(2) Program requirements.--Except as otherwise provided in 
        this chapter, a local educational agency may use funds under 
        paragraph (1) notwithstanding the program requirements of the 
        program under which the funds were made available to the agency.

[[Page 115 STAT. 1889]]

    ``(b) Eligible Programs.--Program funds made available to local 
educational agencies on the basis of a formula under the following 
provisions may be consolidated and used under subsection (a):
            ``(1) Subpart 2 of part A of title II.
            ``(2) Subpart 1 of part D of title II.
            ``(3) Subpart 1 of part A of title IV.
            ``(4) Subpart 1 of part A of title V.

``SEC. 6153. <<NOTE: 20 USC 7321b.>>  LIMITATIONS ON ADMINISTRATIVE 
            EXPENDITURES.

    ``Each local educational agency that has entered into a local 
flexibility demonstration agreement with the Secretary under this 
chapter may use for administrative purposes not more than 4 percent of 
the total amount of funds allocated to the agency under the programs 
included in the scope of the agreement.

``SEC. 6154. <<NOTE: 20 USC 7321c.>>  PERFORMANCE REVIEW AND PENALTIES.

    ``(a) Midterm Review.--
            ``(1) Failure to make adequate yearly progress.--If, during 
        the term of a local flexibility demonstration agreement, a local 
        educational agency fails to make adequate yearly progress for 2 
        consecutive years, the Secretary shall, after notice and 
        opportunity for a hearing, promptly terminate the agreement.
            ``(2) Noncompliance.--The Secretary may, after providing 
        notice and an opportunity for a hearing (including the 
        opportunity to provide information as provided for in paragraph 
        (3)), terminate a local flexibility demonstration agreement 
        under this chapter if there is evidence that the local 
        educational agency has failed to comply with the terms of the 
        agreement.
            ``(3) Evidence.--If a local educational agency believes that 
        the Secretary's determination under this subsection is in error 
        for statistical or other substantive reasons, the local 
        educational agency may provide supporting evidence to the 
        Secretary, and the Secretary shall consider that evidence before 
        making a final early termination determination.

    ``(b) Final Review.--If, at the end of the 5-year term of a local 
flexibility demonstration agreement entered into under this chapter, the 
local educational agency has not met the requirements described in 
section 6151(c), the Secretary may not renew the agreement under section 
6155 and, beginning on the date on which such term ends, the local 
educational agency shall be required to comply with each of the program 
requirements in effect on such date for each program included in the 
local flexibility demonstration agreement.

``SEC. 6155. <<NOTE: 20 USC 7321d.>>  RENEWAL OF LOCAL FLEXIBILITY 
            DEMONSTRATION AGREEMENT.

    ``(a) In General.--Except as provided in section 6154 and in 
accordance with this section, the Secretary shall renew for one 
additional 5-year term a local flexibility demonstration agreement 
entered into under this chapter if the local educational agency has met, 
by the end of the original term of the agreement, the requirements 
described in section 6151(c).
    ``(b) Notification.--The Secretary may not renew a local flexibility 
demonstration agreement under this chapter unless, not less than 6 
months before the end of the original term of the agreement,

[[Page 115 STAT. 1890]]

the local educational agency seeking the renewal notifies the Secretary 
of its intention to renew.
    ``(c) Effective Date.--A renewal under this section shall be 
effective at the end of the original term of the agreement or on the 
date on which the local educational agency seeking renewal provides to 
the Secretary all data required under the agreement, whichever is later.

``SEC. 6156. <<NOTE: 20 USC 7321e.>>  REPORTS.

    ``(a) Transmittal to Congress.--Not later than 60 days after the 
Secretary receives a report described in section 6151(b)(10), the 
Secretary shall make the report available to the Committee on Education 
and the Workforce of the House of Representatives and the Committee on 
Health, Education, Labor, and Pensions of the Senate.
    ``(b) Limitation.--A State in which a local educational agency that 
has a local flexibility demonstration agreement is located may not 
require such local educational agency to provide any application 
information with respect to the programs included within the scope of 
that agreement other than that information that is required to be 
included in the report described in section 6151(b)(10).

     ``Subpart 4--State Accountability for Adequate Yearly Progress

``SEC. 6161. <<NOTE: 20 USC 7325.>>  ACCOUNTABILITY FOR ADEQUATE YEARLY 
            PROGRESS.

    ``In the case of a State educational agency that has a plan approved 
under subpart 1 of part A of title I after the date of enactment of the 
No Child Left Behind Act of 2001, and has a plan approved under subpart 
1 of part A of title III of such Act after such date of enactment, the 
Secretary shall annually, starting with the beginning of the first 
school year following the first two school years for which such plans 
were implemented, review whether the State has--
            ``(1) made adequate yearly progress, as defined in section 
        1111(b)(2)(B), for each of the groups of students described in 
        section 1111(b)(2)(C)(v); and
            ``(2) met its annual measurable achievement objectives under 
        section 3122(a).

``SEC. 6162. <<NOTE: 20 USC 7325a.>>  PEER REVIEW.

    ``The Secretary shall use a peer review process to review, based on 
data from the State assessments administered under section 1111(b)(3) 
and on data from the evaluations conducted under section 3121, whether 
the State has failed to make adequate yearly progress for 2 consecutive 
years or whether the State has met its annual measurable achievement 
objectives.

``SEC. 6163. <<NOTE: 20 USC 7325b.>>  TECHNICAL ASSISTANCE.

    ``(a) Provision of Assistance.--
            ``(1) Adequate yearly progress.--Based on the review 
        described in section 6161(1), the Secretary shall provide 
        technical assistance to a State that has failed to make adequate 
        yearly progress, as defined in section 1111(b)(2), for 2 
        consecutive years. The Secretary shall provide such assistance 
        not later than the beginning of the first school year that 
        begins after such determination is made.

[[Page 115 STAT. 1891]]

            ``(2) Annual measurable achievement objectives.--Based on 
        the reviews described in section 6161(2), the Secretary may 
        provide technical assistance to a State that has failed to meet 
        its annual measurable achievement objectives under section 
        3122(a) for 2 consecutive years. The Secretary shall provide 
        such assistance not later than the beginning of the first school 
        year that begins after such determination is made.

    ``(b) Characteristics.--The technical assistance described in 
subsection (a) shall--
            ``(1) be valid, reliable and rigorous; and
            ``(2) provide constructive feedback to help the State make 
        adequate yearly progress, as defined in section 1111(b)(2), or 
        meet the annual measurable achievement objectives under section 
        3122(a).

``SEC. 6164. <<NOTE: 20 USC 7325c.>>  REPORT TO CONGRESS.

    ``Beginning with the school year that begins in 2005, the Secretary 
shall submit an annual report to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate containing the following:
            ``(1) A list of each State that has not made adequate yearly 
        progress based on the review conducted under section 6161(1).
            ``(2) A list of each State that has not met its annual 
        measurable achievement objectives based on the review conducted 
        under section 6161(2).
            ``(3) The information reported by the State to the Secretary 
        pursuant to section 1119(a).
            ``(4) A description of any technical assistance provided 
        pursuant to section 6163.

    ``PART <<NOTE: Rural Education Achievement Program.>>  B--RURAL 
EDUCATION INITIATIVE

``SEC. 6201. <<NOTE: 20 USC 7341.>>  SHORT TITLE.

    ``This part may be cited as the `Rural Education Achievement 
Program'.

``SEC. 6202. <<NOTE: 20 USC 7341a.>>  PURPOSE.

    ``It is the purpose of this part to address the unique needs of 
rural school districts that frequently--
            ``(1) lack the personnel and resources needed to compete 
        effectively for Federal competitive grants; and
            ``(2) receive formula grant allocations in amounts too small 
        to be effective in meeting their intended purposes.

          ``Subpart 1--Small, Rural School Achievement Program

``SEC. 6211. <<NOTE: 20 USC 7345.>>  USE OF APPLICABLE FUNDING.

    ``(a) Alternative Uses.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, an eligible local educational agency may use the applicable 
        funding that the agency is eligible to receive from the State 
        educational agency for a fiscal year to carry out local 
        activities authorized under any of the following provisions:
                    ``(A) Part A of title I.
                    ``(B) Part A or D of title II.

[[Page 115 STAT. 1892]]

                    ``(C) Title III.
                    ``(D) Part A or B of title IV.
                    ``(E) Part A of title V.
            ``(2) Notification.--An eligible local educational agency 
        shall notify the State educational agency of the local 
        educational agency's intention to use the applicable funding in 
        accordance with paragraph (1), by a date that is established by 
        the State educational agency for the notification.

    ``(b) Eligibility.--
            ``(1) In general.--A local educational agency shall be 
        eligible to use the applicable funding in accordance with 
        subsection (a) if--
                    ``(A)(i)(I) the total number of students in average 
                daily attendance at all of the schools served by the 
                local educational agency is fewer than 600; or
                    ``(II) each county in which a school served by the 
                local educational agency is located has a total 
                population density of fewer than 10 persons per square 
                mile; and
                    ``(ii) all of the schools served by the local 
                educational agency are designated with a school locale 
                code of 7 or 8, as determined by the Secretary; or
                    ``(B) the agency meets the criteria established in 
                subparagraph (A)(i) and the Secretary, in accordance 
                with paragraph (2), grants the local educational 
                agency's request to waive the criteria described in 
                subparagraph (A)(ii).
            ``(2) Certification.--The Secretary shall determine whether 
        to waive the criteria described in paragraph (1)(A)(ii) based on 
        a demonstration by the local educational agency, and concurrence 
        by the State educational agency, that the local educational 
        agency is located in an area defined as rural by a governmental 
        agency of the State.

    ``(c) Applicable Funding Defined.--In this section, the term 
`applicable funding' means funds provided under any of the following 
provisions:
            ``(1) Subpart 2 and section 2412(a)(2)(A) of title II.
            ``(2) Section 4114.
            ``(3) Part A of title V.

    ``(d) Disbursement.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under this 
section for the fiscal year at the same time as the State educational 
agency disburses the applicable funding to local educational agencies 
that do not intend to use the applicable funding for such alternative 
uses for the fiscal year.
    ``(e) Applicable Rules.--Applicable funding under this section shall 
be available to carry out local activities authorized under subsection 
(a).

``SEC. 6212. <<NOTE: 20 USC 7345a.>>  GRANT PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies to enable the local educational 
agencies to carry out activities authorized under any of the following 
provisions:
            ``(1) Part A of title I.
            ``(2) Part A or D of title II.
            ``(3) Title III.
            ``(4) Part A or B of title IV.

[[Page 115 STAT. 1893]]

            ``(5) Part A of title V.

    ``(b) Allocation.--
            ``(1) In general.--Except as provided in paragraph (3), the 
        Secretary shall award a grant under subsection (a) to a local 
        educational agency eligible under section 6211(b) for a fiscal 
        year in an amount equal to the initial amount determined under 
        paragraph (2) for the fiscal year minus the total amount 
        received by the agency under the provisions of law described in 
        section 6211(c) for the preceding fiscal year.
            ``(2) Determination of initial amount.--The initial amount 
        referred to in paragraph (1) is equal to $100 multiplied by the 
        total number of students in excess of 50 students, in average 
        daily attendance at the schools served by the local educational 
        agency, plus $20,000, except that the initial amount may not 
        exceed $60,000.
            ``(3) Ratable adjustment.--
                    ``(A) In general.--If the amount made available to 
                carry out this section for any fiscal year is not 
                sufficient to pay in full the amounts that local 
                educational agencies are eligible to receive under 
                paragraph (1) for such year, the Secretary shall ratably 
                reduce such amounts for such year.
                    ``(B) Additional amounts.--If additional funds 
                become available for making payments under paragraph (1) 
                for such fiscal year, payments that were reduced under 
                subparagraph (A) shall be increased on the same basis as 
                such payments were reduced.

    ``(c) Disbursement.--The Secretary shall disburse the funds awarded 
to a local educational agency under this section for a fiscal year not 
later than July 1 of that fiscal year.
    ``(d) Special Eligibility Rule.--A local educational agency that is 
eligible to receive a grant under this subpart for a fiscal year is not 
eligible to receive funds for such fiscal year under subpart 2.

``SEC. 6213. <<NOTE: 20 USC 7345b.>>  ACCOUNTABILITY.

    ``(a) Academic Achievement Assessment.--Each local educational 
agency that uses or receives funds under this subpart for a fiscal year 
shall administer an assessment that is consistent with section 
1111(b)(3).
    ``(b) Determination Regarding Continuing Participation.--Each State 
educational agency that receives funding under the provisions of law 
described in section 6211(c) shall--
            ``(1) after the third year that a local educational agency 
        in the State participates in a program under this subpart and on 
        the basis of the results of the assessments described in 
        subsection (a), determine whether the local educational agency 
        participating in the program made adequate yearly progress, as 
        described in section 1111(b)(2);
            ``(2) permit only those local educational agencies that 
        participated and made adequate yearly progress, as described in 
        section 1111(b)(2), to continue to participate; and
            ``(3) permit those local educational agencies that 
        participated and failed to make adequate yearly progress, as 
        described in section 1111(b)(2), to continue to participate only 
        if such local educational agencies use applicable funding under 
        this subpart to carry out the requirements of section 1116.

[[Page 115 STAT. 1894]]

            ``Subpart 2--Rural and Low-Income School Program

``SEC. 6221. <<NOTE: 20 USC 7351.>>  PROGRAM AUTHORIZED.

    ``(a) Grants to States.--
            ``(1) In general.--From amounts appropriated under section 
        6234 for this subpart for a fiscal year that are not reserved 
        under subsection (c), the Secretary shall award grants (from 
        allotments made under paragraph (2)) for the fiscal year to 
        State educational agencies that have applications submitted 
        under section 6223 approved to enable the State educational 
        agencies to award grants to eligible local educational agencies 
        for local authorized activities described in section 6222(a).
            ``(2) Allotment.--From amounts described in paragraph (1) 
        for a fiscal year, the Secretary shall allot to each State 
        educational agency for that fiscal year an amount that bears the 
        same ratio to those amounts as the number of students in average 
        daily attendance served by eligible local educational agencies 
        in the State for that fiscal year bears to the number of all 
        such students served by eligible local educational agencies in 
        all States for that fiscal year.
            ``(3) Specially qualified agencies.--
                    ``(A) Eligibility and application.--If a State 
                educational agency elects not to participate in the 
                program under this subpart or does not have an 
                application submitted under section 6223 approved, a 
                specially qualified agency in such State desiring a 
                grant under this subpart may submit an application under 
                such section directly to the Secretary to receive an 
                award under this subpart.
                    ``(B) Direct awards.--The Secretary may award, on a 
                competitive basis or by formula, the amount the State 
                educational agency is eligible to receive under 
                paragraph (2) directly to a specially qualified agency 
                in the State that has submitted an application in 
                accordance with subparagraph (A) and obtained approval 
                of the application.
                    ``(C) Specially qualified agency defined.--In this 
                subpart, the term `specially qualified agency' means an 
                eligible local educational agency served by a State 
                educational agency that does not participate in a 
                program under this subpart in a fiscal year, that may 
                apply directly to the Secretary for a grant in such year 
                under this subsection.

    ``(b) Local Awards.--
            ``(1) Eligibility.--A local educational agency shall be 
        eligible to receive a grant under this subpart if--
                    ``(A) 20 percent or more of the children ages 5 
                through 17 years served by the local educational agency 
                are from families with incomes below the poverty line; 
                and
                    ``(B) all of the schools served by the agency are 
                designated with a school locale code of 6, 7, or 8, as 
                determined by the Secretary.
            ``(2) Award basis.--A State educational agency shall award 
        grants to eligible local educational agencies--
                    ``(A) on a competitive basis;

[[Page 115 STAT. 1895]]

                    ``(B) according to a formula based on the number of 
                students in average daily attendance served by the 
                eligible local educational agencies or schools in the 
                State; or
                    ``(C) according to an alternative formula, if, prior 
                to awarding the grants, the State educational agency 
                demonstrates, to the satisfaction of the Secretary, that 
                the alternative formula enables the State educational 
                agency to allot the grant funds in a manner that serves 
                equal or greater concentrations of children from 
                families with incomes below the poverty line, relative 
                to the concentrations that would be served if the State 
                educational agency used the formula described in 
                subparagraph (B).

    ``(c) Reservations.--From amounts appropriated under section 6234 
for this subpart for a fiscal year, the Secretary shall reserve--
            ``(1) one-half of 1 percent to make awards to elementary 
        schools or secondary schools operated or supported by the Bureau 
        of Indian Affairs, to carry out the activities authorized under 
        this subpart; and
            ``(2) one-half of 1 percent to make awards to the outlying 
        areas in accordance with their respective needs, to carry out 
        the activities authorized under this subpart.

``SEC. 6222. <<NOTE: 20 USC 7351a.>>  USES OF FUNDS.

    ``(a) Local Awards.--Grant funds awarded to local educational 
agencies under this subpart shall be used for any of the following:
            ``(1) Teacher recruitment and retention, including the use 
        of signing bonuses and other financial incentives.
            ``(2) Teacher professional development, including programs 
        that train teachers to utilize technology to improve teaching 
        and to train special needs teachers.
            ``(3) Educational technology, including software and 
        hardware, as described in part D of title II.
            ``(4) Parental involvement activities.
            ``(5) Activities authorized under the Safe and Drug-Free 
        Schools program under part A of title IV.
            ``(6) Activities authorized under part A of title I.
            ``(7) Activities authorized under title III.

    ``(b) Administrative Costs.--A State educational agency receiving a 
grant under this subpart may not use more than 5 percent of the amount 
of the grant for State administrative costs and to provide technical 
assistance to eligible local educational agencies.

``SEC. 6223. <<NOTE: 20 USC 7351b.>>  APPLICATIONS.

    ``(a) In General.--Each State educational agency or specially 
qualified agency desiring to receive a grant under this subpart shall 
submit an application to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may require.
    ``(b) Contents.--At a minimum, each application submitted under 
subsection (a) shall include information on specific measurable goals 
and objectives to be achieved through the activities carried out through 
the grant, which may include specific educational goals and objectives 
relating to--
            ``(1) increased student academic achievement;
            ``(2) decreased student dropout rates; or
            ``(3) such other factors as the State educational agency or 
        specially qualified agency may choose to measure.

[[Page 115 STAT. 1896]]

``SEC. 6224. <<NOTE: 20 USC 7351c.>>  ACCOUNTABILITY.

    ``(a) State Report.--Each State educational agency that receives a 
grant under this subpart shall prepare and submit 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 subpart;
            ``(2) how local educational agencies and schools used funds 
        provided under this subpart; and
            ``(3) the degree to which progress has been made toward 
        meeting the goals and objectives described in the application 
        submitted under section 6223.

    ``(b) Specially Qualified Agency Report.--Each specially qualified 
agency that receives a grant under this subpart shall provide an annual 
report to the Secretary. Such report shall describe--
            ``(1) how such agency uses funds provided under this 
        subpart; and
            ``(2) the degree to which progress has been made toward 
        meeting the goals and objectives described in the application 
        submitted under section 6223.

    ``(c) Report to Congress.--The Secretary shall prepare and submit to 
the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate a biennial report. The report shall describe--
            ``(1) the methods the State educational agencies used to 
        award grants to eligible local educational agencies, and to 
        provide assistance to schools, under this subpart;
            local educational agencies and schools used funds provided 
        under this subpart; and
            ``(3) the degree to which progress has been made toward 
        meeting the goals and objectives described in the applications 
        submitted under section 6223.

    ``(d) Academic Achievement Assessment.--Each local educational 
agency or specially qualified agency that receives a grant under this 
subpart for a fiscal year shall administer an assessment that is 
consistent with section 1111(b)(3).
    ``(e) Determination Regarding Continuing Participation.--Each State 
educational agency or specially qualified agency that receives a grant 
under this subpart shall--
            ``(1) after the third year that a local educational agency 
        or specially qualified agency in the State receives funds under 
        this subpart, and on the basis of the results of the assessments 
        described in subsection (d)--
                    ``(A) in the case of a local educational agency, 
                determine whether the local educational agency made 
                adequate yearly progress, as described in section 
                1111(b)(2); and
                    ``(B) in the case of a specially qualified agency, 
                submit to the Secretary information that would allow the 
                Secretary to determine whether the specially qualified 
                agency has made adequate yearly progress, as described 
                in section 1111(b)(2);
            ``(2) permit only those local educational agencies or 
        specially qualified agencies that made adequate yearly progress, 
        as described in section 1111(b)(2), to continue to receive 
        grants under this subpart; and

[[Page 115 STAT. 1897]]

            ``(3) permit those local educational agencies or specially 
        qualified agencies that failed to make adequate yearly progress, 
        as described in section 1111(b)(2), to continue to receive such 
        grants only if the State educational agency disbursed such 
        grants to the local educational agencies or specially qualified 
        agencies to carry out the requirements of section 1116.

                     ``Subpart 3--General Provisions

``SEC. 6231. <<NOTE: 20 USC 7355.>>  ANNUAL AVERAGE DAILY ATTENDANCE 
            DETERMINATION.

    ``(a) <<NOTE: Deadlines.>>  Census Determination.--Each local 
educational agency desiring a grant under section 6212 and each local 
educational agency or specially qualified agency desiring a grant under 
subpart 2 shall--
            ``(1) not later than December 1 of each year, conduct a 
        census to determine the number of students in average daily 
        attendance in kindergarten through grade 12 at the schools 
        served by the agency; and
            ``(2) not later than March 1 of each year, submit the number 
        described in paragraph (1) to the Secretary (and to the State 
        educational agency, in the case of a local educational agency 
        seeking a grant under subpart (2)).

    ``(b) Penalty.--If the Secretary determines that a local educational 
agency or specially qualified agency has knowingly submitted false 
information under subsection (a) for the purpose of gaining additional 
funds under section 6212 or subpart 2, then the agency shall be fined an 
amount equal to twice the difference between the amount the agency 
received under this section and the correct amount the agency would have 
received under section 6212 or subpart 2 if the agency had submitted 
accurate information under subsection (a).

``SEC. 6232. <<NOTE: 20 USC 7355a.>>  SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available under subpart 1 or subpart 2 shall be used to 
supplement, and not supplant, any other Federal, State, or local 
education funds.

``SEC. 6233. <<NOTE: 20 USC 7355b.>>  RULE OF CONSTRUCTION.

    ``Nothing in this part shall be construed to prohibit a local 
educational agency that enters into cooperative arrangements with other 
local educational agencies for the provision of special, compensatory, 
or other education services, pursuant to State law or a written 
agreement, from entering into similar arrangements for the use, or the 
coordination of the use, of the funds made available under this part.

``SEC. 6234. <<NOTE: 20 USC 7355c.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$300,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 5 succeeding fiscal years, to be distributed equally between 
subparts 1 and 2.

                      ``PART C--GENERAL PROVISIONS

``SEC. <<NOTE: 20 USC 7371.>>  6301. PROHIBITION AGAINST FEDERAL 
            MANDATES, DIRECTION, OR CONTROL.

    ``Nothing in this title shall be construed to authorize an officer 
or employee of the Federal Government to mandate, direct, or

[[Page 115 STAT. 1898]]

control a State, local educational agency, or school's specific 
instructional content, academic achievement standards and assessments, 
curriculum, or program of instruction, as a condition of eligibility to 
receive funds under this Act.

``SEC. 6302. <<NOTE: 20 USC 7372.>>  RULE OF CONSTRUCTION ON EQUALIZED 
            SPENDING.

    ``Nothing in this title shall be construed to mandate equalized 
spending per pupil for a State, local educational agency, or school.''.

SEC. 602. AMENDMENT TO THE NATIONAL EDUCATION STATISTICS ACT OF 1994.

    (a) National Assessment of Educational Progress.--Section 411 of the 
National Education Statistics Act of 1994 (20 U.S.C. 9010) is amended to 
read as follows:

``SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

    ``(a) Establishment.--The Commissioner shall, with the advice of the 
National Assessment Governing Board established under section 412, and 
with the technical assistance of the Advisory Council established under 
section 407, carry out, through grants, contracts, or cooperative 
agreements with one or more qualified organizations, or consortia 
thereof, a National Assessment of Educational Progress, which 
collectively refers to a national assessment, State assessments, and a 
long-term trend assessment in reading and mathematics.
    ``(b) Purpose; State Assessments.--
            ``(1) Purpose.--The purpose of this section is to provide, 
        in a timely manner, a fair and accurate measurement of student 
        academic achievement and reporting trends in such achievement in 
        reading, mathematics, and other subject matter as specified in 
        this section.
            ``(2) Measurement and reporting.--The Commissioner, in 
        carrying out the measurement and reporting described in 
        paragraph (1), shall--
                    ``(A) use a random sampling process which is 
                consistent with relevant, widely accepted professional 
                assessment standards and that produces data that are 
                representative on a national and regional basis;
                    ``(B) conduct a national assessment and collect and 
                report assessment data, including achievement data 
                trends, in a valid and reliable manner on student 
                academic achievement in public and private elementary 
                schools and secondary schools at least once every 2 
                years, in grades 4 and 8 in reading and mathematics;
                    ``(C) conduct a national assessment and collect and 
                report assessment data, including achievement data 
                trends, in a valid and reliable manner on student 
                academic achievement in public and private schools in 
                reading and mathematics in grade 12 in regularly 
                scheduled intervals, but at least as often as such 
                assessments were conducted prior to the date of 
                enactment of the No Child Left Behind Act of 2001;
                    ``(D) to the extent time and resources allow, and 
                after the requirements described in subparagraph (B) are 
                implemented and the requirements described in 
                subparagraph (C) are met, conduct additional national 
                assessments and collect and report assessment data, 
                including achievement data trends, in a valid and 
                reliable manner on student

[[Page 115 STAT. 1899]]

                academic achievement in grades 4, 8, and 12 in public 
                and private elementary schools and secondary schools in 
                regularly scheduled intervals in additional subject 
                matter, including writing, science, history, geography, 
                civics, economics, foreign languages, and arts, and the 
                trend assessment described in subparagraph (F);
                    ``(E) conduct the reading and mathematics 
                assessments described in subparagraph (B) in the same 
                year, and every other year thereafter, to provide for 1 
                year in which no such assessments are conducted in 
                between each administration of such assessments;
                    ``(F) continue to conduct the trend assessment of 
                academic achievement at ages 9, 13, and 17 for the 
                purpose of maintaining data on long-term trends in 
                reading and mathematics;
                    ``(G) include information on special groups, 
                including, whenever feasible, information collected, 
                cross tabulated, compared, and reported by race, 
                ethnicity, socioeconomic status, gender, disability and 
                limited English proficiency; and
                    ``(H) ensure that achievement data are made 
                available on a timely basis following official 
                reporting, in a manner that facilitates further analysis 
                and that includes trend lines.
            ``(3) State assessments.--
                    ``(A) In general.--The Commissioner--
                          ``(i) shall conduct biennial State academic 
                      assessments of student achievement in reading and 
                      mathematics in grades 4 and 8 as described in 
                      paragraphs (1)(B) and (1)(E);
                          ``(ii) may conduct the State academic 
                      assessments of student achievement in reading and 
                      mathematics in grade 12 as described in paragraph 
                      (1)(C);
                          ``(iii) may conduct State academic assessments 
                      of student achievement in grades 4, 8, and 12 as 
                      described in paragraph (1)(D); and
                          ``(iv) shall conduct each such State 
                      assessment, in each subject area and at each grade 
                      level, on a developmental basis until the 
                      Commissioner determines, as the result of an 
                      evaluation required by subsection (f), that such 
                      assessment produces high quality data that are 
                      valid and reliable.
                    ``(B) Agreement.--
                          ``(i) In general.--States participating in 
                      State assessments shall enter into an agreement 
                      with the Secretary pursuant to subsection (d)(3).
                          ``(ii) Content.--Such agreement shall contain 
                      information sufficient to give States full 
                      information about the process for decision-making 
                      (which shall include the consensus process used), 
                      on objectives to be tested, and the standards for 
                      random sampling, test administration, test 
                      security, data collection, validation, and 
                      reporting.
                    ``(C) Review and release.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), a participating State shall review 
                      and give permission for the release of results 
                      from any test of its

[[Page 115 STAT. 1900]]

                      students administered as a part of a State 
                      assessment prior to the release of such data. 
                      Refusal by a State to release its data shall not 
                      restrict the release of data from other States 
                      that have approved the release of such data.
                          ``(ii) Special rule.--A State participating in 
                      the biennial academic assessments of student 
                      achievement in reading and mathematics in grades 4 
                      and 8 shall be deemed to have given its permission 
                      to release its data if the State has an approved 
                      plan under section 1111 of the Elementary and 
                      Secondary Education Act of 1965.
            ``(4) Prohibited activities.--
                    ``(A) In general.--The use of assessment items and 
                data on any assessment authorized under this section by 
                an agent or agents of the Federal Government to rank, 
                compare, or otherwise evaluate individual students or 
                teachers, or to provide rewards or sanctions for 
                individual students, teachers, schools or local 
                educational agencies is prohibited.
                    ``(B) Special rule.--Any assessment authorized under 
                this section shall not be used by an agent or agents of 
                the Federal Government to establish, require, or 
                influence the standards, assessments, curriculum, 
                including lesson plans, textbooks, or classroom 
                materials, or instructional practices of States or local 
                educational agencies.
                    ``(C) Applicability to student educational 
                decisions.--Nothing in this section shall be construed 
                to prescribe the use of any assessment authorized under 
                this section for student promotion or graduation 
                purposes.
                    ``(D) Applicability to home schools.--Nothing in 
                this section shall be construed to affect home schools, 
                whether or not a home school is treated as a home school 
                or a private school under State law, nor shall any home 
                schooled student be required to participate in any 
                assessment referenced or authorized under this section.
            ``(5) Requirement.--In carrying out any assessment 
        authorized under this section, the Commissioner, in a manner 
        consistent with subsection (c)(2), shall--
                    ``(A) use widely accepted professional testing 
                standards, objectively measure academic achievement, 
                knowledge, and skills, and ensure that any academic 
                assessment authorized under this section be tests that 
                do not evaluate or assess personal or family beliefs and 
                attitudes or publicly disclose personally identifiable 
                information;
                    ``(B) only collect information that is directly 
                related to the appraisal of academic achievement, and to 
                the fair and accurate presentation of such information; 
                and
                    ``(C) collect information on race, ethnicity, 
                socioeconomic status, disability, limited English 
                proficiency, and gender.
            ``(6) Technical assistance.--In carrying out any assessment 
        authorized under this section, the Commissioner may provide 
        technical assistance to States, localities, and other parties.

    ``(c) Access.--
            ``(1) Public access.--

[[Page 115 STAT. 1901]]

                    ``(A) In general.--Except as provided in paragraph 
                (3), parents and members of the public shall have access 
                to all assessment data, questions, and complete and 
                current assessment instruments of any assessment 
                authorized under this section. The local educational 
                agency shall make reasonable efforts to inform parents 
                and members of the public about the access required 
                under this paragraph.
                    ``(B) Timeline.--The access described in this 
                paragraph shall be provided within 45 days of the date 
                the request was made, in writing, and be made available 
                in a secure setting that is convenient to both parties.
                    ``(C) Prohibition.--To protect the integrity of the 
                assessment, no copy of the assessment items or 
                assessment instruments shall be duplicated or taken from 
                the secure setting.
            ``(2) Complaints.--
                    ``(A) In general.--Parents and members of the public 
                may submit written complaints to the National Assessment 
                Governing Board.
                    ``(B) Forwarding of complaints.--The National 
                Assessment Governing Board shall forward such complaints 
                to the Commissioner, the Secretary of Education, and the 
                State and local educational agency from within which the 
                complaint originated within 30 days of receipt of such 
                complaint.
                    ``(C) Review.--The National Assessment Governing 
                Board, in consultation with the Commissioner, shall 
                review such complaint and determine whether revisions 
                are necessary and appropriate. As determined by such 
                review, the Board shall revise, as necessary and 
                appropriate, the procedures or assessment items that 
                have generated the complaint and respond to the 
                individual submitting the complaint, with a copy of such 
                response provided to the Secretary, describing any 
                action taken, not later than 30 days after so acting.
                    ``(D) Report.--The Secretary shall submit a summary 
                report of all complaints received pursuant to 
                subparagraph (A) and responses by the National 
                Assessment Governing Board pursuant to subparagraph (B) 
                to the Chairman of the House Committee on Education and 
                the Workforce, and the Chairman of the Senate Committee 
                on Health, Education, Labor, and Pensions.
                    ``(E) Cognitive questions.--
                          ``(i) In general.--The Commissioner may 
                      decline to make available through public means, 
                      such as posting on the Internet, distribution to 
                      the media, distribution through public agencies, 
                      or in response to a request under section 552 of 
                      title 5, United States Code, for a period, not to 
                      exceed 10 years after initial use, cognitive 
                      questions that the Commissioner intends to reuse 
                      in the future.
                          ``(ii) Extension.--Notwithstanding clause (i), 
                      the Commissioner may decline to make cognitive 
                      questions available as described in clause (i) for 
                      a period longer than 10 years if the Commissioner 
                      determines such additional period is necessary to 
                      protect the security and integrity of long-term 
                      trend data.

[[Page 115 STAT. 1902]]

            ``(3) Personally identifiable information.--
                    ``(A) In general.--The Commissioner shall ensure 
                that all personally identifiable information about 
                students, their academic achievement, and their 
                families, and that information with respect to 
                individual schools, remains confidential, in accordance 
                with section 552a of title 5, United States Code.
                    ``(B) Prohibition.--The National Board, the 
                Commissioner, and any contractor or subcontractor shall 
                not maintain any system of records containing a 
                student's name, birth information, Social Security 
                number, or parents' name or names, or any other 
                personally identifiable information.
            ``(4) Penalties.--Any unauthorized person who knowingly 
        discloses, publishes, or uses assessment questions, or complete 
        and current assessment instruments of any assessment authorized 
        under this section may be fined as specified in section 3571 of 
        title 18, United States Code or charged with a class E felony.

    ``(d) Participation.--
            ``(1) Voluntary participation.--Participation in any 
        assessment authorized under this section shall be voluntary for 
        students, schools, and local educational agencies.
            ``(2) Student participation.--Parents of children selected 
        to participate in any assessment authorized under this section 
        shall be informed before the administration of any authorized 
        assessment, that their child may be excused from participation 
        for any reason, is not required to finish any authorized 
        assessment, and is not required to answer any test question.
            ``(3) State participation.--
                    ``(A) Voluntary.--Participation in assessments 
                authorized under this section, other than reading and 
                mathematics in grades 4 and 8, shall be voluntary.
                    ``(B) Agreement.--For reading and mathematics 
                assessments in grades 4 and 8, the Secretary shall enter 
                into an agreement with any State carrying out an 
                assessment for the State under this section. Each such 
                agreement shall contain provisions designed to ensure 
                that the State will participate in the assessment.
            ``(4) Review.--Representatives of State educational agencies 
        and local educational agencies or the chief State school officer 
        shall have the right to review any assessment item or procedure 
        of any authorized assessment upon request in a manner consistent 
        with subsection (c), except the review described in subparagraph 
        (2)(C) of subsection (c) shall take place in consultation with 
        the representatives described in this paragraph.

    ``(e) Student Achievement Levels.--
            ``(1) Achievement levels.--The National Assessment Governing 
        Board shall develop appropriate student achievement levels for 
        each grade or age in each subject area to be tested under 
        assessments authorized under this section, except the trend 
        assessment described in subsection (b)(2)(F).
            ``(2) Determination of levels.--
                    ``(A) In general.--Such levels shall--
                          ``(i) be determined by--

[[Page 115 STAT. 1903]]

                                    ``(I) identifying the knowledge that 
                                can be measured and verified objectively 
                                using widely accepted professional 
                                assessment standards; and
                                    ``(II) developing achievement levels 
                                that are consistent with relevant widely 
                                accepted professional assessment 
                                standards and based on the appropriate 
                                level of subject matter knowledge for 
                                grade levels to be assessed, or the age 
                                of the students, as the case may be.
                    ``(B) National consensus approach.--After the 
                determinations described in subparagraph (A), devising a 
                national consensus approach.
                    ``(C) Trial basis.--The achievement levels shall be 
                used on a trial basis until the Commissioner determines, 
                as a result of an evaluation under subsection (f), that 
                such levels are reasonable, valid, and informative to 
                the public.
                    ``(D) Status.--The Commissioner and the Board shall 
                ensure that reports using such levels on a trial basis 
                do so in a manner that makes clear the status of such 
                levels.
                    ``(E) Updates.--Such levels shall be updated as 
                appropriate by the National Assessment Governing Board 
                in consultation with the Commissioner.
            ``(3) Reporting.--After determining that such levels are 
        reasonable, valid, and informative to the public, as the result 
        of an evaluation under subsection (f), the Commissioner shall 
        use such levels or other methods or indicators for reporting 
        results of the National Assessment and State assessments.
            ``(4) Review.--The National Assessment Governing Board shall 
        provide for a review of any trial student achievement levels 
        under development by representatives of State educational 
        agencies or the chief State school officer in a manner 
        consistent with subsection (c), except the review described in 
        subparagraph (2)(C) shall take place in consultation with the 
        representatives described in this paragraph.

    ``(f) Review of National and State Assessments.--
            ``(1) Review.--
                    ``(A) In general.--The Secretary shall provide for 
                continuing review of any assessment authorized under 
                this section, and student achievement levels, by one or 
                more professional assessment evaluation organizations.
                    ``(B) Issues addressed.--Such continuing review 
                shall address--
                          ``(i) whether any authorized assessment is 
                      properly administered, produces high quality data 
                      that are valid and reliable, is consistent with 
                      relevant widely accepted professional assessment 
                      standards, and produces data on student 
                      achievement that are not otherwise available to 
                      the State (other than data comparing participating 
                      States to each other and the Nation);
                          ``(ii) whether student achievement levels are 
                      reasonable, valid, reliable, and informative to 
                      the public;-
                          ``(iii) whether any authorized assessment is 
                      being administered as a random sample and is 
                      reporting the trends in academic achievement in a 
                      valid and reliable manner in the subject areas 
                      being assessed;

[[Page 115 STAT. 1904]]

                          ``(iv) whether any of the test questions are 
                      biased, as described in section 412(e)(4); and
                          ``(v) whether the appropriate authorized 
                      assessments are measuring, consistent with this 
                      section, reading ability and mathematical 
                      knowledge.
            ``(2) Report.--The Secretary shall report to the Committee 
        on Education and the Workforce of the House of Representatives 
        and the Committee on Health, Education, Labor, and Pensions of 
        the Senate, the President, and the Nation on the findings and 
        recommendations of such reviews.
            ``(3) Use of findings and recommendations.--The Commissioner 
        and the National Assessment Governing Board shall consider the 
        findings and recommendations of such reviews in designing the 
        competition to select the organization, or organizations, 
        through which the Commissioner carries out the National 
        Assessment.

    ``(g) Coverage Agreements.--
            ``(1) Department of defense schools.--The Secretary and the 
        Secretary of Defense may enter into an agreement, including such 
        terms as are mutually satisfactory, to include in the National 
        Assessment elementary schools and secondary schools operated by 
        the Department of Defense.
            ``(2) Bureau of indian affairs schools.--The Secretary and 
        the Secretary of the Interior may enter into an agreement, 
        including such terms as are mutually satisfactory, to include in 
        the National Assessment schools for Indian children operated or 
        supported by the Bureau of Indian Affairs.''.

    (b) National Assessment Governing Board.--Section 412 of the 
National Education Statistics Act of 1994 (20 U.S.C. 9011) is amended to 
read as follows:

``SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.

    ``(a) Establishment.--There is established the National Assessment 
Governing Board (hereafter in this title referred to as the `Board'), 
which shall formulate policy guidelines for the National Assessment.
    ``(b) Membership.--
            ``(1) Appointment and composition.--The Board shall be 
        appointed by the Secretary and be composed as follows:
                    ``(A) Two Governors, or former Governors, who shall 
                not be members of the same political party.
                    ``(B) Two State legislators, who shall not be 
                members of the same political party.
                    ``(C) Two chief State school officers.
                    ``(D) One superintendent of a local educational 
                agency.
                    ``(E) One member of a State board of education.
                    ``(F) One member of a local board of education.
                    ``(G) Three classroom teachers representing the 
                grade levels at which the National Assessment is 
                conducted.
                    ``(H) One representative of business or industry.
                    ``(I) Two curriculum specialists.
                    ``(J) Three testing and measurement experts, who 
                shall have training and experience in the field of 
                testing and measurement.
                    ``(K) One nonpublic school administrator or 
                policymaker.

[[Page 115 STAT. 1905]]

                    ``(L) Two school principals, of whom one shall be an 
                elementary school principal and one shall be a secondary 
                school principal.
                    ``(M) Two parents who are not employed by a local, 
                State or Federal educational agency.
                    ``(N) Two additional members who are representatives 
                of the general public, and who may be parents, but who 
                are not employed by a local, State, or Federal 
                educational agency.
            ``(2) Assistant secretary for educational research.--The 
        Assistant Secretary for Educational Research and Improvement 
        shall serve as an ex officio, nonvoting member of the Board.
            ``(3) Balance and diversity.--The Secretary and the Board 
        shall ensure at all times that the membership of the Board 
        reflects regional, racial, gender, and cultural balance and 
        diversity and that the Board exercises its independent judgment, 
        free from inappropriate influences and special interests.

    ``(c) Terms.--
            ``(1) In general.--Terms of service of members of the Board 
        shall be staggered and may not exceed a period of 4 years, as 
        determined by the Secretary.
            ``(2) Service limitation.--Members of the Board may serve 
        not more than two terms.
            ``(3) Change of status.--A member of the Board who changes 
        status under subsection (b) during the term of the appointment 
        of the member may continue to serve as a member until the 
        expiration of such term.
            ``(4) Conforming provision.--Members of the Board previously 
        granted 3 year terms, whose terms are in effect on the date of 
        enactment of the Department of Education Appropriations Act, 
        2001, shall have their terms extended by 1 year.

    ``(d) Vacancies.--
            ``(1) In general.--
                    ``(A) Organizations.--The Secretary shall appoint 
                new members to fill vacancies on the Board from among 
                individuals who are nominated by organizations 
                representing the type of individuals described in 
                subsection (b)(1) with respect to which the vacancy 
                exists.
                    ``(B) Nominations.--Each organization submitting 
                nominations to the Secretary with respect to a 
                particular vacancy shall nominate for such vacancy six 
                individuals who are qualified by experience or training 
                to fill the particular Board vacancy.
                    ``(C) Maintenance of board.--The Secretary's 
                appointments shall maintain the composition, diversity, 
                and balance of the Board required under subsection (b).
            ``(2) Additional nominations.--The Secretary may request 
        that each organization described in paragraph (1)(A) submit 
        additional nominations if the Secretary determines that none of 
        the individuals nominated by such organization have appropriate 
        knowledge or expertise.

    ``(e) Duties.--
            ``(1) In general.--In carrying out its functions under this 
        section the Board shall--
                    ``(A) select the subject areas to be assessed 
                (consistent with section 411(b));

[[Page 115 STAT. 1906]]

                    ``(B) develop appropriate student achievement levels 
                as provided in section 411(e);
                    ``(C) develop assessment objectives consistent with 
                the requirements of this section and test specifications 
                that produce an assessment that is valid and reliable, 
                and are based on relevant widely accepted professional 
                standards;
                    ``(D) develop a process for review of the assessment 
                which includes the active participation of teachers, 
                curriculum specialists, local school administrators, 
                parents, and concerned members of the public;
                    ``(E) design the methodology of the assessment to 
                ensure that assessment items are valid and reliable, in 
                consultation with appropriate technical experts in 
                measurement and assessment, content and subject matter, 
                sampling, and other technical experts who engage in 
                large scale surveys, including the Advisory Council 
                established under section 407;
                    ``(F) consistent with section 411, measure student 
                academic achievement in grades 4, 8, and 12 in the 
                authorized academic subjects;
                    ``(G) develop guidelines for reporting and 
                disseminating results;
                    ``(H) develop standards and procedures for regional 
                and national comparisons; and
                    ``(I) take appropriate actions needed to improve the 
                form, content, use, and reporting of results of any 
                assessment authorized by section 411 consistent with the 
                provisions of this section and section 411.
            ``(2) Delegation.--The Board may delegate any of the Board's 
        procedural and administrative functions to its staff.
            ``(3) All cognitive and noncognitive assessment items.--The 
        Board shall have final authority on the appropriateness of all 
        assessment items.
            ``(4) Prohibition against bias.--The Board shall take steps 
        to ensure that all items selected for use in the National 
        Assessment are free from racial, cultural, gender, or regional 
        bias and are secular, neutral, and non-ideological.
            ``(5) Technical.--In carrying out the duties required by 
        paragraph (1), the Board may seek technical advice, as 
        appropriate, from the Commissioner and the Advisory Council on 
        Education Statistics and other experts.
            ``(6) <<NOTE: Deadline.>>  Report.--Not later than 90 days 
        after an evaluation of the student achievement levels under 
        section 411(e), the Board shall make a report to the Secretary, 
        the Committee on Education and the Workforce of the House of 
        Representatives, and the Committee on Health, Education, Labor, 
        and Pensions of the Senate describing the steps the Board is 
        taking to respond to each of the recommendations contained in 
        such evaluation.

    ``(f) Personnel.--
            ``(1) In general.--In the exercise of its responsibilities, 
        the Board shall be independent of the Secretary and the other 
        offices and officers of the Department.
            ``(2) Staff.--
                    ``(A) In general.--The Secretary may appoint, at the 
                request of the Board, such staff as will enable the 
                Board to carry out its responsibilities.

[[Page 115 STAT. 1907]]

                    ``(B) Technical employees.--Such appointments may 
                include, for terms not to exceed 3 years and without 
                regard to the provisions of title 5, United States Code, 
                governing appointments in the competitive service, not 
                more than six technical employees who may be paid 
                without regard to the provisions of chapter 51 and 
                subchapter III of chapter 53 of such title relating to 
                classification and General Schedule pay rates.

    ``(g) Coordination.--The Commissioner and the Board shall meet 
periodically--
            ``(1) to ensure coordination of their duties and activities 
        relating to the National Assessment; and
            ``(2) for the Commissioner to report to the Board on the 
        Department's actions to implement the decisions of the Board.

    ``(h) Administration.--The Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply with respect to the Board, other than sections 10, 
11, and 12 of such Act.''.

     TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

SEC. 701. INDIANS, NATIVE HAWAIIANS, AND ALASKA NATIVES.

    Title VII (20 U.S.C. 7401 et seq.) is amended to read as follows:

    ``TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

                       ``PART A--INDIAN EDUCATION

``SEC. 7101. <<NOTE: 20 USC 7401.>>  STATEMENT OF POLICY.

    ``It is the policy of the United States to fulfill the Federal 
Government's unique and continuing trust relationship with and 
responsibility to the Indian people for the education of Indian 
children. The Federal Government will continue to work with local 
educational agencies, Indian tribes and organizations, postsecondary 
institutions, and other entities toward the goal of ensuring that 
programs that serve Indian children are of the highest quality and 
provide for not only the basic elementary and secondary educational 
needs, but also the unique educational and culturally related academic 
needs of these children.

``SEC. 7102. <<NOTE: 20 USC 7402.>>  PURPOSE.

    ``(a) Purpose.--It is the purpose of this part to support the 
efforts of local educational agencies, Indian tribes and organizations, 
postsecondary institutions, and other entities to meet the unique 
educational and culturally related academic needs of American Indian and 
Alaska Native students, so that such students can meet the same 
challenging State student academic achievement standards as all other 
students are expected to meet.
    ``(b) Programs.--This part carries out the purpose described in 
subsection (a) by authorizing programs of direct assistance for--
            ``(1) meeting the unique educational and culturally related 
        academic needs of American Indians and Alaska Natives;
            ``(2) the education of Indian children and adults;

[[Page 115 STAT. 1908]]

            ``(3) the training of Indian persons as educators and 
        counselors, and in other professions serving Indian people; and
            ``(4) research, evaluation, data collection, and technical 
        assistance.

        ``Subpart 1--Formula Grants to Local Educational Agencies

``SEC. 7111. <<NOTE: 20 USC 7421.>>  PURPOSE.

    ``It is the purpose of this subpart to support local educational 
agencies in their efforts to reform elementary school and secondary 
school programs that serve Indian students in order to ensure that such 
programs--
            ``(1) are based on challenging State academic content and 
        student academic achievement standards that are used for all 
        students; and
            ``(2) are designed to assist Indian students in meeting 
        those standards.

``SEC. 7112. <<NOTE: 20 USC 7422.>>  GRANTS TO LOCAL EDUCATIONAL 
            AGENCIES AND TRIBES.

    ``(a) In General.--The Secretary may make grants, from allocations 
made under section 7113, to local educational agencies and Indian 
tribes, in accordance with this section and section 7113.
    ``(b) Local Educational Agencies.--
            ``(1) Enrollment requirements.--A local educational agency 
        shall be eligible for a grant under this subpart for any fiscal 
        year if the number of Indian children eligible under section 
        7117 who were enrolled in the schools of the agency, and to whom 
        the agency provided free public education, during the preceding 
        fiscal year--
                    ``(A) was at least 10; or
                    ``(B) constituted not less than 25 percent of the 
                total number of individuals enrolled in the schools of 
                such agency.
            ``(2) Exclusion.--The requirement of paragraph (1) shall not 
        apply in Alaska, California, or Oklahoma, or with respect to any 
        local educational agency located on, or in proximity to, a 
        reservation.

    ``(c) Indian Tribes.--
            ``(1) In general.--If a local educational agency that is 
        otherwise eligible for a grant under this subpart does not 
        establish a committee under section 7114(c)(4) for such grant, 
        an Indian tribe that represents not less than \1/2\ of the 
        eligible Indian children who are served by such local 
        educational agency may apply for such grant.
            ``(2) Special rule.--The Secretary shall treat each Indian 
        tribe applying for a grant pursuant to paragraph (1) as if such 
        Indian tribe were a local educational agency for purposes of 
        this subpart, except that any such tribe is not subject to 
        section 7114(c)(4), section 7118(c), or section 7119.

``SEC. 7113. <<NOTE: 20 USC 2423.>>  AMOUNT OF GRANTS.

    ``(a) Amount of Grant Awards.--
            ``(1) In general.--Except as provided in subsection (b) and 
        paragraph (2), the Secretary shall allocate to each local 
        educational agency that has an approved application under this 
        subpart an amount equal to the product of--

[[Page 115 STAT. 1909]]

                    ``(A) the number of Indian children who are eligible 
                under section 7117 and served by such agency; and
                    ``(B) the greater of--
                          ``(i) the average per pupil expenditure of the 
                      State in which such agency is located; or
                          ``(ii) 80 percent of the average per pupil 
                      expenditure of all the States.
            ``(2) Reduction.--The Secretary shall reduce the amount of 
        each allocation otherwise determined under this section in 
        accordance with subsection (e).

    ``(b) Minimum Grant.--
            ``(1) In general.--Notwithstanding subsection (e), an entity 
        that is eligible for a grant under section 7112, and a school 
        that is operated or supported by the Bureau of Indian Affairs 
        that is eligible for a grant under subsection (d), that submits 
        an application that is approved by the Secretary, shall, subject 
        to appropriations, receive a grant under this subpart in an 
        amount that is not less than $3,000.
            ``(2) Consortia.--Local educational agencies may form a 
        consortium for the purpose of obtaining grants under this 
        subpart.
            ``(3) Increase.--The Secretary may increase the minimum 
        grant under paragraph (1) to not more than $4,000 for all 
        grantees if the Secretary determines such increase is necessary 
        to ensure the quality of the programs provided.

    ``(c) Definition.--For the purpose of this section, the term 
`average per pupil expenditure', used with respect to a State, means an 
amount equal to--
            ``(1) the sum of the aggregate current expenditures of all 
        the local educational agencies in the State, plus any direct 
        current expenditures by the State for the operation of such 
        agencies, without regard to the sources of funds from which such 
        local or State expenditures were made, during the second fiscal 
        year preceding the fiscal year for which the computation is 
        made; divided by
            ``(2) the aggregate number of children who were included in 
        average daily attendance for whom such agencies provided free 
        public education during such preceding fiscal year.

    ``(d) Schools Operated or Supported by the Bureau of Indian 
Affairs.--
            ``(1) In general.--Subject to subsection (e), in addition to 
        the grants awarded under subsection (a), the Secretary shall 
        allocate to the Secretary of the Interior an amount equal to the 
        product of--
                    ``(A) the total number of Indian children enrolled 
                in schools that are operated by--
                          ``(i) the Bureau of Indian Affairs; or
                          ``(ii) an Indian tribe, or an organization 
                      controlled or sanctioned by an Indian tribal 
                      government, for the children of that tribe under a 
                      contract with, or grant from, the Department of 
                      the Interior under the Indian Self-Determination 
                      Act or the Tribally Controlled Schools Act of 
                      1988; and
                    ``(B) the greater of--
                          ``(i) the average per pupil expenditure of the 
                      State in which the school is located; or

[[Page 115 STAT. 1910]]

                          ``(ii) 80 percent of the average per pupil 
                      expenditure of all the States.
            ``(2) Special rule.--Any school described in paragraph 
        (1)(A) that wishes to receive an allocation under this subpart 
        shall submit an application in accordance with section 7114, and 
        shall otherwise be treated as a local educational agency for the 
        purpose of this subpart, except that such school shall not be 
        subject to section 7114(c)(4), section 7118(c), or section 7119.

    ``(e) Ratable Reductions.--If the sums appropriated for any fiscal 
year under section 7152(a) are insufficient to pay in full the amounts 
determined for local educational agencies under subsection (a)(1) and 
for the Secretary of the Interior under subsection (d), each of those 
amounts shall be ratably reduced.

``SEC. 7114. <<NOTE: 20 USC 7424.>>  APPLICATIONS.

    ``(a) Application Required.--Each local educational agency that 
desires to receive a grant under this subpart shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(b) Comprehensive Program Required.--Each application submitted 
under subsection (a) shall include a description of a comprehensive 
program for meeting the needs of Indian children served by the local 
educational agency, including the language and cultural needs of the 
children, that--
            ``(1) describes how the comprehensive program will offer 
        programs and activities to meet the culturally related academic 
        needs of American Indian and Alaska Native students;
            ``(2)(A) is consistent with the State and local plans 
        submitted under other provisions of this Act; and
            ``(B) includes academic content and student academic 
        achievement goals for such children, and benchmarks for 
        attaining such goals, that are based on the challenging State 
        academic content and student academic achievement standards 
        adopted under title I for all children;
            ``(3) explains how Federal, State, and local programs, 
        especially programs carried out under title I, will meet the 
        needs of such students;
            ``(4) demonstrates how funds made available under this 
        subpart will be used for activities described in section 7115;
            ``(5) describes the professional development opportunities 
        that will be provided, as needed, to ensure that--
                    ``(A) teachers and other school professionals who 
                are new to the Indian community are prepared to work 
                with Indian children; and
                    ``(B) all teachers who will be involved in programs 
                assisted under this subpart have been properly trained 
                to carry out such programs; and
            ``(6) describes how the local educational agency--
                    ``(A) will periodically assess the progress of all 
                Indian children enrolled in the schools of the local 
                educational agency, including Indian children who do not 
                participate in programs assisted under this subpart, in 
                meeting the goals described in paragraph (2);
                    ``(B) will provide the results of each assessment 
                referred to in subparagraph (A) to--

[[Page 115 STAT. 1911]]

                          ``(i) the committee described in subsection 
                      (c)(4); and
                          ``(ii) the community served by the local 
                      educational agency; and
                    ``(C) is responding to findings of any previous 
                assessments that are similar to the assessments 
                described in subparagraph (A).

    ``(c) Assurances.--Each application submitted under subsection (a) 
shall include assurances that--
            ``(1) the local educational agency will use funds received 
        under this subpart only to supplement the funds that, in the 
        absence of the Federal funds made available under this subpart, 
        such agency would make available for the education of Indian 
        children, and not to supplant such funds;
            ``(2) the local educational agency will prepare and submit 
        to the Secretary such reports, in such form and containing such 
        information, as the Secretary may require to--
                    ``(A) carry out the functions of the Secretary under 
                this subpart; and
                    ``(B) determine the extent to which activities 
                carried out with funds provided to the local educational 
                agency under this subpart are effective in improving the 
                educational achievement of Indian students served by 
                such agency;
            ``(3) the program for which assistance is sought--
                    ``(A) is based on a comprehensive local assessment 
                and prioritization of the unique educational and 
                culturally related academic needs of the American Indian 
                and Alaska Native students for whom the local 
                educational agency is providing an education;
                    ``(B) will use the best available talents and 
                resources, including individuals from the Indian 
                community; and
                    ``(C) was developed by such agency in open 
                consultation with parents of Indian children and 
                teachers, and, if appropriate, Indian students from 
                secondary schools, including through public hearings 
                held by such agency to provide to the individuals 
                described in this subparagraph a full opportunity to 
                understand the program and to offer recommendations 
                regarding the program; and
            ``(4) the local educational agency developed the program 
        with the participation and written approval of a committee--
                    ``(A) that is composed of, and selected by--
                          ``(i) parents of Indian children in the local 
                      educational agency's schools;
                          ``(ii) teachers in the schools; and
                          ``(iii) if appropriate, Indian students 
                      attending secondary schools of the agency;
                    ``(B) a majority of whose members are parents of 
                Indian children;
                    ``(C) that has set forth such policies and 
                procedures, including policies and procedures relating 
                to the hiring of personnel, as will ensure that the 
                program for which assistance is sought will be operated 
                and evaluated in consultation with, and with the 
                involvement of, parents of the children, and 
                representatives of the area, to be served;

[[Page 115 STAT. 1912]]

                    ``(D) with respect to an application describing a 
                schoolwide program in accordance with section 7115(c), 
                that has--
                          ``(i) reviewed in a timely fashion the 
                      program; and
                          ``(ii) determined that the program will not 
                      diminish the availability of culturally related 
                      activities for American Indian and Alaska Native 
                      students; and
                    ``(E) that has adopted reasonable bylaws for the 
                conduct of the activities of the committee and abides by 
                such bylaws.

``SEC. 7115. <<NOTE: 20 USC 7425.>>  AUTHORIZED SERVICES AND ACTIVITIES.

    ``(a) General Requirements.--Each local educational agency that 
receives a grant under this subpart shall use the grant funds, in a 
manner consistent with the purpose specified in section 7111, for 
services and activities that--
          (1) are designed to carry out the comprehensive program of the 
        local educational agency for Indian students, and described in 
        the application of the local educational agency submitted to the 
        Secretary under section 7114(a);
            ``(2) are designed with special regard for the language and 
        cultural needs of the Indian students; and
            ``(3) supplement and enrich the regular school program of 
        such agency.

    ``(b) Particular Activities.--The services and activities referred 
to in subsection (a) may include--
            ``(1) culturally related activities that support the program 
        described in the application submitted by the local educational 
        agency;
            ``(2) early childhood and family programs that emphasize 
        school readiness;
            ``(3) enrichment programs that focus on problem solving and 
        cognitive skills development and directly support the attainment 
        of challenging State academic content and student academic 
        achievement standards;
            ``(4) integrated educational services in combination with 
        other programs that meet the needs of Indian children and their 
        families;
            ``(5) career preparation activities to enable Indian 
        students to participate in programs such as the programs 
        supported by the Carl D. Perkins Vocational and Technical 
        Education Act of 1998, including programs for tech-prep 
        education, mentoring, and apprenticeship;
            ``(6) activities to educate individuals concerning substance 
        abuse and to prevent substance abuse;
            ``(7) the acquisition of equipment, but only if the 
        acquisition of the equipment is essential to achieve the purpose 
        described in section 7111;
            ``(8) activities that promote the incorporation of 
        culturally responsive teaching and learning strategies into the 
        educational program of the local educational agency;
            ``(9) activities that incorporate American Indian and Alaska 
        Native specific curriculum content, consistent with State 
        standards, into the curriculum used by the local educational 
        agency;
            ``(10) family literacy services; and

[[Page 115 STAT. 1913]]

            ``(11) activities that recognize and support the unique 
        cultural and educational needs of Indian children, and 
        incorporate appropriately qualified tribal elders and seniors.

    ``(c) Schoolwide Programs.--Notwithstanding any other provision of 
law, a local educational agency may use funds made available to such 
agency under this subpart to support a schoolwide program under section 
1114 if--
            ``(1) the committee established pursuant to section 
        7114(c)(4) approves the use of the funds for the schoolwide 
        program; and
            ``(2) the schoolwide program is consistent with the purpose 
        described in section 7111.

    ``(d) Limitation on Administrative Costs.--Not more than 5 percent 
of the funds provided to a grantee under this subpart for any fiscal 
year may be used for administrative purposes.

``SEC. 7116. <<NOTE: 20 USC 7426.>>  INTEGRATION OF SERVICES AUTHORIZED.

    ``(a) Plan.--An entity receiving funds under this subpart may submit 
a plan to the Secretary for the integration of education and related 
services provided to Indian students.
    ``(b) Consolidation of Programs.--Upon the receipt of an acceptable 
plan under subsection (a), the Secretary, in cooperation with each 
Federal agency providing grants for the provision of education and 
related services to the entity, shall authorize the entity to 
consolidate, in accordance with such plan, the federally funded 
education and related services programs of the entity and the Federal 
programs, or portions of the programs, serving Indian students in a 
manner that integrates the program services involved into a single, 
coordinated, comprehensive program and reduces administrative costs by 
consolidating administrative functions.
    ``(c) Programs Affected.--The funds that may be consolidated in a 
demonstration project under any such plan referred to in subsection (a) 
shall include funds for any Federal program exclusively serving Indian 
children, or the funds reserved under any Federal program to exclusively 
serve Indian children, under which the entity is eligible for receipt of 
funds under a statutory or administrative formula for the purposes of 
providing education and related services that would be used to serve 
Indian students.
    ``(d) Plan Requirements.--For a plan to be acceptable pursuant to 
subsection (b), the plan shall--
            ``(1) identify the programs or funding sources to be 
        consolidated;
            ``(2) be consistent with the objectives of this section 
        concerning authorizing the services to be integrated in a 
        demonstration project;
            ``(3) describe a comprehensive strategy that identifies the 
        full range of potential educational opportunities and related 
        services to be provided to assist Indian students to achieve the 
        objectives set forth in this subpart;
            ``(4) describe the way in which services are to be 
        integrated and delivered and the results expected from the plan;
            ``(5) identify the projected expenditures under the plan in 
        a single budget;
            ``(6) identify the State, tribal, or local agency or 
        agencies to be involved in the delivery of the services 
        integrated under the plan;

[[Page 115 STAT. 1914]]

            ``(7) identify any statutory provisions, regulations, 
        policies, or procedures that the entity believes need to be 
        waived in order to implement the plan;
            ``(8) set forth measures for academic content and student 
        academic achievement goals designed to be met within a specific 
        period of time; and
            ``(9) be approved by a committee formed in accordance with 
        section 7114(c)(4), if such a committee exists.

    ``(e) Plan Review.--Upon receipt of the plan from an eligible 
entity, the Secretary shall consult with the Secretary of each Federal 
department providing funds to be used to implement the plan, and with 
the entity submitting the plan. The parties so consulting shall identify 
any waivers of statutory requirements or of Federal departmental 
regulations, policies, or procedures necessary to enable the entity to 
implement the plan. Notwithstanding any other provision of law, the 
Secretary of the affected department shall have the authority to waive 
any regulation, policy, or procedure promulgated by that department that 
has been so identified by the entity or department, unless the Secretary 
of the affected department determines that such a waiver is inconsistent 
with the objectives of this subpart or those provisions of the statute 
from which the program involved derives authority that are specifically 
applicable to Indian students.
    ``(f) <<NOTE: Deadline.>>  Plan Approval.--Within 90 days after the 
receipt of an entity's plan by the Secretary, the Secretary shall inform 
the entity, in writing, of the Secretary's approval or disapproval of 
the plan. If the plan is disapproved, the entity shall be informed, in 
writing, of the reasons for the disapproval and shall be given an 
opportunity to amend the plan or to petition the Secretary to reconsider 
such disapproval.

    ``(g) Responsibilities <<NOTE: Deadline.>>  of Department of 
Education.--Not later than 180 days after the date of enactment of the 
No Child Left Behind Act of 2001, the Secretary of Education, the 
Secretary of the Interior, and the head of any other Federal department 
or agency identified by the Secretary of Education, shall enter into an 
interdepartmental memorandum of agreement providing for the 
implementation of the demonstration projects authorized under this 
section. The lead agency head for a demonstration project under this 
section shall be--
            ``(1) the Secretary of the Interior, in the case of an 
        entity meeting the definition of a contract or grant school 
        under title XI of the Education Amendments of 1978; or
            ``(2) the Secretary of Education, in the case of any other 
        entity.

    ``(h) Responsibilities of Lead Agency.--The responsibilities of the 
lead agency shall include--
            ``(1) the use of a single report format related to the plan 
        for the individual project, which shall be used by an eligible 
        entity to report on the activities undertaken under the project;
            ``(2) the use of a single report format related to the 
        projected expenditures for the individual project which shall be 
        used by an eligible entity to report on all project 
        expenditures;
            ``(3) the development of a single system of Federal 
        oversight for the project, which shall be implemented by the 
        lead agency; and
            ``(4) the provision of technical assistance to an eligible 
        entity appropriate to the project, except that an eligible 
        entity

[[Page 115 STAT. 1915]]

        shall have the authority to accept or reject the plan for 
        providing such technical assistance and the technical assistance 
        provider.

    ``(i) Report Requirements.--A single report format shall be 
developed by the Secretary, consistent with the requirements of this 
section. Such report format shall require that reports described in 
subsection (h), together with records maintained on the consolidated 
program at the local level, shall contain such information as will allow 
a determination that the eligible entity has complied with the 
requirements incorporated in its approved plan, including making a 
demonstration of student academic achievement, and will provide 
assurances to each Secretary that the eligible entity has complied with 
all directly applicable statutory requirements and with those directly 
applicable regulatory requirements that have not been waived.
    ``(j) No Reduction in Amounts.--In no case shall the amount of 
Federal funds available to an eligible entity involved in any 
demonstration project be reduced as a result of the enactment of this 
section.
    ``(k) Interagency Fund Transfers Authorized.--The Secretary is 
authorized to take such action as may be necessary to provide for an 
interagency transfer of funds otherwise available to an eligible entity 
in order to further the objectives of this section.
    ``(l) Administration of Funds.--
            ``(1) In general.--Program funds for the consolidated 
        programs shall be administered in such a manner as to allow for 
        a determination that funds from a specific program are spent on 
        allowable activities authorized under such program, except that 
        the eligible entity shall determine the proportion of the funds 
        granted that shall be allocated to such program.
            ``(2) Separate records not required.--Nothing in this 
        section shall be construed as requiring the eligible entity to 
        maintain separate records tracing any services or activities 
        conducted under the approved plan to the individual programs 
        under which funds were authorized for the services or 
        activities, nor shall the eligible entity be required to 
        allocate expenditures among such individual programs.

    ``(m) Overage.--The eligible entity may commingle all administrative 
funds from the consolidated programs and shall be entitled to the full 
amount of such funds (under each program's or agency's regulations). The 
overage (defined as the difference between the amount of the commingled 
funds and the actual administrative cost of the programs) shall be 
considered to be properly spent for Federal audit purposes, if the 
overage is used for the purposes provided for under this section.
    ``(n) Fiscal Accountability.--Nothing in this part shall be 
construed so as to interfere with the ability of the Secretary or the 
lead agency to fulfill the responsibilities for the safeguarding of 
Federal funds pursuant to chapter 75 of title 31, United States Code.
    ``(o) Report on Statutory Obstacles to Program Integration.--
            ``(1) Preliminary <<NOTE: Deadline.>>  report.--Not later 
        than 2 years after the date of enactment of the No Child Left 
        Behind Act of 2001, the Secretary of Education shall submit a 
        preliminary report to the Committee on Education and the 
        Workforce and the Committee on Resources of the House of 
        Representatives

[[Page 115 STAT. 1916]]

        and the Committee on Health, Education, Labor, and Pensions and 
        the Committee on Indian Affairs of the Senate on the status of 
        the implementation of the demonstration projects authorized 
        under this section.
            ``(2) Final <<NOTE: Deadline.>>  report.--Not later than 5 
        years after the date of enactment of the No Child Left Behind 
        Act of 2001, the Secretary of Education shall submit a report to 
        the Committee on Education and the Workforce and the Committee 
        on Resources of the House of Representatives and the Committee 
        on Health, Education, Labor, and Pensions and the Committee on 
        Indian Affairs of the Senate on the results of the 
        implementation of the demonstration projects authorized under 
        this section. Such report shall identify statutory barriers to 
        the ability of participants to integrate more effectively their 
        education and related services to Indian students in a manner 
        consistent with the objectives of this section.

    ``(p) Definitions.--For the purposes of this section, the term 
`Secretary' means--
            ``(1) the Secretary of the Interior, in the case of an 
        entity meeting the definition of a contract or grant school 
        under title XI of the Education Amendments of 1978; or
            ``(2) the Secretary of Education, in the case of any other 
        entity.

``SEC. 7117. <<NOTE: 20 USC 7427.>>  STUDENT ELIGIBILITY FORMS.

    ``(a) In General.--The Secretary shall require that, as part of an 
application for a grant under this subpart, each applicant shall 
maintain a file, with respect to each Indian child for whom the local 
educational agency provides a free public education, that contains a 
form that sets forth information establishing the status of the child as 
an Indian child eligible for assistance under this subpart, and that 
otherwise meets the requirements of subsection (b).
    ``(b) Forms.--The form described in subsection (a) shall include--
            ``(1) either--
                    ``(A)(i) the name of the tribe or band of Indians 
                (as defined in section 7151) with respect to which the 
                child claims membership;
                    ``(ii) the enrollment number establishing the 
                membership of the child (if readily available); and
                    ``(iii) the name and address of the organization 
                that maintains updated and accurate membership data for 
                such tribe or band of Indians; or
                    ``(B) the name, the enrollment number (if readily 
                available), and the name and address of the organization 
                responsible for maintaining updated and accurate 
                membership data, of any parent or grandparent of the 
                child from whom the child claims eligibility under this 
                subpart, if the child is not a member of the tribe or 
                band of Indians (as so defined);
            ``(2) a statement of whether the tribe or band of Indians 
        (as so defined), with respect to which the child, or parent or 
        grandparent of the child, claims membership, is federally 
        recognized;
            ``(3) the name and address of the parent or legal guardian 
        of the child;

[[Page 115 STAT. 1917]]

            ``(4) a signature of the parent or legal guardian of the 
        child that verifies the accuracy of the information supplied; 
        and
            ``(5) any other information that the Secretary considers 
        necessary to provide an accurate program profile.

    ``(c) Statutory Construction.--Nothing in this section shall be 
construed to affect a definition contained in section 7151.
    ``(d) Forms and Standards of Proof.--The forms and the standards of 
proof (including the standard of good faith compliance) that were in use 
during the 1985-86 academic year to establish the eligibility of a child 
for entitlement under the Indian Elementary and Secondary School 
Assistance Act shall be the forms and standards of proof used--
            ``(1) to establish eligibility under this subpart; and
            ``(2) to meet the requirements of subsection (a).

    ``(e) Documentation.--For purposes of determining whether a child is 
eligible to be counted for the purpose of computing the amount of a 
grant award under section 7113, the membership of the child, or any 
parent or grandparent of the child, in a tribe or band of Indians (as so 
defined) may be established by proof other than an enrollment number, 
notwithstanding the availability of an enrollment number for a member of 
such tribe or band. Nothing in subsection (b) shall be construed to 
require the furnishing of an enrollment number.
    ``(f) Monitoring and Evaluation Review.--
            ``(1) In general.--
                    ``(A) Review.--For each fiscal year, in order to 
                provide such information as is necessary to carry out 
                the responsibility of the Secretary to provide technical 
                assistance under this subpart, the Secretary shall 
                conduct a monitoring and evaluation review of a sampling 
                of the recipients of grants under this subpart. The 
                sampling conducted under this subparagraph shall take 
                into account the size of and the geographic location of 
                each local educational agency.
                    ``(B) Exception.--A local educational agency may not 
                be held liable to the United States or be subject to any 
                penalty, by reason of the findings of an audit that 
                relates to the date of completion, or the date of 
                submission, of any forms used to establish, before April 
                28, 1988, the eligibility of a child for an entitlement 
                under the Indian Elementary and Secondary School 
                Assistance Act.
            ``(2) False information.--Any local educational agency that 
        provides false information in an application for a grant under 
        this subpart shall--
                    ``(A) be ineligible to apply for any other grant 
                under this subpart; and
                    ``(B) be liable to the United States for any funds 
                from the grant that have not been expended.
            ``(3) Excluded children.--A student who provides false 
        information for the form required under subsection (a) shall not 
        be counted for the purpose of computing the amount of a grant 
        under section 7113.

    ``(g) Tribal Grant and Contract Schools.--Notwithstanding any other 
provision of this section, in calculating the amount of a grant under 
this subpart to a tribal school that receives a grant or contract from 
the Bureau of Indian Affairs, the Secretary shall use only one of the 
following, as selected by the school:

[[Page 115 STAT. 1918]]

            ``(1) A count of the number of students in the schools 
        certified by the Bureau.
            ``(2) A count of the number of students for whom the school 
        has eligibility forms that comply with this section.

    ``(h) Timing of Child Counts.--For purposes of determining the 
number of children to be counted in calculating the amount of a local 
educational agency's grant under this subpart (other than in the case 
described in subsection (g)(1)), the local educational agency shall--
            ``(1) establish a date on, or a period not longer than 31 
        consecutive days during, which the agency counts those children, 
        if that date or period occurs before the deadline established by 
        the Secretary for submitting an application under section 7114; 
        and
            ``(2) determine that each such child was enrolled, and 
        receiving a free public education, in a school of the agency on 
        that date or during that period, as the case may be.

``SEC. 7118. <<NOTE: 20 USC 7428.>>  PAYMENTS.

    ``(a) In General.--Subject to subsections (b) and (c), the Secretary 
shall pay to each local educational agency that submits an application 
that is approved by the Secretary under this subpart the amount 
determined under section 7113. The Secretary shall notify the local 
educational agency of the amount of the payment not later than June 1 of 
the year for which the Secretary makes the payment.
    ``(b) Payments Taken Into Account by the State.--The Secretary may 
not make a grant under this subpart to a local educational agency for a 
fiscal year if, for such fiscal year, the State in which the local 
educational agency is located takes into consideration payments made 
under this chapter in determining the eligibility of the local 
educational agency for State aid, or the amount of the State aid, with 
respect to the free public education of children during such fiscal year 
or the preceding fiscal year.
    ``(c) Reduction of Payment for Failure To Maintain Fiscal Effort.--
            ``(1) In general.--The Secretary may not pay a local 
        educational agency the full amount of a grant award determined 
        under section 7113 for any fiscal year unless the State 
        educational agency notifies the Secretary, and the Secretary 
        determines, that with respect to the provision of free public 
        education by the local educational agency for the preceding 
        fiscal year, the combined fiscal effort of the local educational 
        agency and the State, computed on either a per student or 
        aggregate expenditure basis, was not less than 90 percent of the 
        amount of the combined fiscal effort, computed on the same 
        basis, for the second preceding fiscal year.
            ``(2) Failure to maintain effort.--If, for the preceding 
        fiscal year, the Secretary determines that a local educational 
        agency and State failed to maintain the combined fiscal effort 
        for such agency at the level specified in paragraph (1), the 
        Secretary shall--
                    ``(A) reduce the amount of the grant that would 
                otherwise be made to such agency under this subpart in 
                the exact proportion of the failure to maintain the 
                fiscal effort at such level; and

[[Page 115 STAT. 1919]]

                    ``(B) not use the reduced amount of the agency and 
                State expenditures for the preceding year to determine 
                compliance with paragraph (1) for any succeeding fiscal 
                year, but shall use the amount of expenditures that 
                would have been required to comply with paragraph (1).
            ``(3) Waiver.--
                    ``(A) In general.--The Secretary may waive the 
                requirement of paragraph (1) for a local educational 
                agency, for not more than 1 year at a time, if the 
                Secretary determines that the failure to comply with 
                such requirement is due to exceptional or uncontrollable 
                circumstances, such as a natural disaster or a 
                precipitous and unforeseen decline in the agency's 
                financial resources.
                    ``(B) Future determinations.--The Secretary shall 
                not use the reduced amount of the agency's expenditures 
                for the fiscal year preceding the fiscal year for which 
                a waiver is granted to determine compliance with 
                paragraph (1) for any succeeding fiscal year, but shall 
                use the amount of expenditures that would have been 
                required to comply with paragraph (1) in the absence of 
                the waiver.

    ``(d) Reallocations.--The Secretary may reallocate, in a manner that 
the Secretary determines will best carry out the purpose of this 
subpart, any amounts that--
            ``(1) based on estimates made by local educational agencies 
        or other information, the Secretary determines will not be 
        needed by such agencies to carry out approved programs under 
        this subpart; or
            ``(2) otherwise become available for reallocation under this 
        subpart.

``SEC. 7119. <<NOTE: 20 USC 7429.>>  STATE EDUCATIONAL AGENCY REVIEW.

    ``Before submitting an application to the Secretary under section 
7114, a local educational agency shall submit the application to the 
State educational agency, which may comment on such application. If the 
State educational agency comments on the application, the agency shall 
comment on all applications submitted by local educational agencies in 
the State and shall provide those comments to the respective local 
educational agencies, with an opportunity to respond.

   ``Subpart 2--Special Programs and Projects To Improve Educational 
                    Opportunities for Indian Children

``SEC. 7121. <<NOTE: 20 USC 7441.>>  IMPROVEMENT OF EDUCATIONAL 
            OPPORTUNITIES FOR INDIAN CHILDREN.

    ``(a) Purpose.--
            ``(1) In general.--It is the purpose of this section to 
        support projects to develop, test, and demonstrate the 
        effectiveness of services and programs to improve educational 
        opportunities and achievement of Indian children.
            ``(2) Coordination.--The Secretary shall take the necessary 
        actions to achieve the coordination of activities assisted under 
        this subpart with--
                    ``(A) other programs funded under this Act; and

[[Page 115 STAT. 1920]]

                    ``(B) other Federal programs operated for the 
                benefit of American Indian and Alaska Native children.

    ``(b) Eligible Entities.--In this section, the term `eligible 
entity' means a State educational agency, local educational agency, 
Indian tribe, Indian organization, federally supported elementary school 
or secondary school for Indian students, Indian institution (including 
an Indian institution of higher education), or a consortium of such 
entities.
    ``(c) Grants Authorized.--
            ``(1) In general.--The Secretary shall award grants to 
        eligible entities to enable such entities to carry out 
        activities that meet the purpose of this section, including--
                    ``(A) innovative programs related to the educational 
                needs of educationally disadvantaged children;
                    ``(B) educational services that are not available to 
                such children in sufficient quantity or quality, 
                including remedial instruction, to raise the achievement 
                of Indian children in one or more of the core academic 
                subjects of English, mathematics, science, foreign 
                languages, art, history, and geography;
                    ``(C) bilingual and bicultural programs and 
                projects;
                    ``(D) special health and nutrition services, and 
                other related activities, that address the special 
                health, social, and psychological problems of Indian 
                children;
                    ``(E) special compensatory and other programs and 
                projects designed to assist and encourage Indian 
                children to enter, remain in, or reenter school, and to 
                increase the rate of high school graduation for Indian 
                children;
                    ``(F) comprehensive guidance, counseling, and 
                testing services;
                    ``(G) early childhood and kindergarten programs, 
                including family-based preschool programs that emphasize 
                school readiness and parental skills, and the provision 
                of services to Indian children with disabilities;
                    ``(H) partnership projects between local educational 
                agencies and institutions of higher education that allow 
                secondary school students to enroll in courses at the 
                postsecondary level to aid such students in the 
                transition from secondary to postsecondary education;
                    ``(I) partnership projects between schools and local 
                businesses for career preparation programs designed to 
                provide Indian youth with the knowledge and skills such 
                youth need to make an effective transition from school 
                to a high-skill, high-wage career;
                    ``(J) programs designed to encourage and assist 
                Indian students to work toward, and gain entrance into, 
                an institution of higher education;
                    ``(K) family literacy services;
                    ``(L) activities that recognize and support the 
                unique cultural and educational needs of Indian 
                children, and incorporate appropriately qualified tribal 
                elders and seniors; or
                    ``(M) other services that meet the purpose described 
                in this section.
            ``(2) Professional development.--Professional development of 
        teaching professionals and paraprofessionals may be a part of 
        any program assisted under this section.

[[Page 115 STAT. 1921]]

    ``(d) Grant Requirements and Applications.--
            ``(1) Grant requirements.--
                    ``(A) In general.--The Secretary may make multiyear 
                grants under subsection (c) for the planning, 
                development, pilot operation, or demonstration of any 
                activity described in subsection (c) for a period not to 
                exceed 5 years.
                    ``(B) Priority.--In making multiyear grants 
                described in this paragraph, the Secretary shall give 
                priority to entities submitting applications that 
                present a plan for combining two or more of the 
                activities described in subsection (c) over a period of 
                more than 1 year.
                    ``(C) Progress.--The Secretary shall make a grant 
                payment for a grant described in this paragraph to an 
                eligible entity after the initial year of the multiyear 
                grant only if the Secretary determines that the eligible 
                entity has made substantial progress in carrying out the 
                activities assisted under the grant in accordance with 
                the application submitted under paragraph (3) and any 
                subsequent modifications to such application.
            ``(2) Dissemination grants.--
                    ``(A) In general.--In addition to awarding the 
                multiyear grants described in paragraph (1), the 
                Secretary may award grants under subsection (c) to 
                eligible entities for the dissemination of exemplary 
                materials or programs assisted under this section.
                    ``(B) Determination.--The Secretary may award a 
                dissemination grant described in this paragraph if, 
                prior to awarding the grant, the Secretary determines 
                that the material or program to be disseminated--
                          ``(i) has been adequately reviewed;
                          ``(ii) has demonstrated educational merit; and
                          ``(iii) can be replicated.
            ``(3) Application.--
                    ``(A) In general.--Any eligible entity that desires 
                to receive a grant under this section shall submit an 
                application to the Secretary at such time and in such 
                manner as the Secretary may reasonably require.
                    ``(B) Contents.--Each application submitted to the 
                Secretary under subparagraph (A), other than an 
                application for a dissemination grant under paragraph 
                (2), shall contain--
                          ``(i) a description of how parents of Indian 
                      children and representatives of Indian tribes have 
                      been, and will be, involved in developing and 
                      implementing the activities for which assistance 
                      is sought;
                          ``(ii) assurances that the applicant will 
                      participate, at the request of the Secretary, in 
                      any national evaluation of activities assisted 
                      under this section;
                          ``(iii) information demonstrating that the 
                      proposed program for the activities is a 
                      scientifically based research program, where 
                      applicable, which may include a program that has 
                      been modified to be culturally appropriate for 
                      students who will be served;
                          ``(iv) a description of how the applicant will 
                      incorporate the proposed activities into the 
                      ongoing school program involved once the grant 
                      period is over; and

[[Page 115 STAT. 1922]]

                          ``(v) such other assurances and information as 
                      the Secretary may reasonably require.

    ``(e) Administrative Costs.--Not more than 5 percent of the funds 
provided to a grantee under this subpart for any fiscal year may be used 
for administrative purposes.

``SEC. 7122. <<NOTE: 20 USC 7442.>>  PROFESSIONAL DEVELOPMENT FOR 
            TEACHERS AND EDUCATION PROFESSIONALS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to increase the number of qualified Indian individuals 
        in teaching or other education professions that serve Indian 
        people;
            ``(2) to provide training to qualified Indian individuals to 
        enable such individuals to become teachers, administrators, 
        teacher aides, social workers, and ancillary educational 
        personnel; and
            ``(3) to improve the skills of qualified Indian individuals 
        who serve in the capacities described in paragraph (2).

    ``(b) Eligible Entities.--For the purpose of this section, the term 
`eligible entity' means--
            ``(1) an institution of higher education, including an 
        Indian institution of higher education;
            ``(2) a State educational agency or local educational 
        agency, in consortium with an institution of higher education;
            ``(3) an Indian tribe or organization, in consortium with an 
        institution of higher education; and
            ``(4) a Bureau-funded school (as defined in section 1146 of 
        the Education Amendments of 1978).

    ``(c) Program Authorized.--The Secretary is authorized to award 
grants to eligible entities having applications approved under this 
section to enable those entities to carry out the activities described 
in subsection (d).
    ``(d) Authorized Activities.--
            ``(1) In general.--Grant funds under this section shall be 
        used for activities to provide support and training for Indian 
        individuals in a manner consistent with the purposes of this 
        section. Such activities may include continuing programs, 
        symposia, workshops, conferences, and direct financial support, 
        and may include programs designed to train tribal elders and 
        seniors.
            ``(2) Special rules.--
                    ``(A) Type of training.--For education personnel, 
                the training received pursuant to a grant under this 
                section may be inservice or preservice training.
                    ``(B) Program.--For individuals who are being 
                trained to enter any field other than teaching, the 
                training received pursuant to a grant under this section 
                shall be in a program that results in a graduate degree.

    ``(e) Application.--Each eligible entity desiring a grant under this 
section shall submit an application to the Secretary at such time, in 
such manner, and accompanied by such information, as the Secretary may 
reasonably require.
    ``(f) Special Rule.--In awarding grants under this section, the 
Secretary--
            ``(1) shall consider the prior performance of the eligible 
        entity; and

[[Page 115 STAT. 1923]]

            ``(2) may not limit eligibility to receive a grant under 
        this section on the basis of--
                    ``(A) the number of previous grants the Secretary 
                has awarded such entity; or
                    ``(B) the length of any period during which such 
                entity received such grants.

    ``(g) Grant Period.--Each grant under this section shall be awarded 
for a period of not more than 5 years.
    ``(h) Service Obligation.--
            ``(1) In general.--The Secretary shall require, by 
        regulation, that an individual who receives training pursuant to 
        a grant made under this section--
                    ``(A) perform work--
                          ``(i) related to the training received under 
                      this section; and
                          ``(ii) that benefits Indian people; or
                    ``(B) repay all or a prorated part of the assistance 
                received.
            ``(2) Reporting.--The <<NOTE: Regulations.>>  Secretary 
        shall establish, by regulation, a reporting procedure under 
        which a grant recipient under this section shall, not later than 
        12 months after the date of completion of the training, and 
        periodically thereafter, provide information concerning 
        compliance with the work requirement under paragraph (1).

                    ``Subpart 3--National Activities

``SEC. 7131. <<NOTE: 20 USC 7451.>>  NATIONAL RESEARCH ACTIVITIES.

    ``(a) Authorized Activities.--The Secretary may use funds made 
available under section 7152(b) for each fiscal year to--
            ``(1) conduct research related to effective approaches for 
        the education of Indian children and adults;
            ``(2) evaluate federally assisted education programs from 
        which Indian children and adults may benefit;
            ``(3) collect and analyze data on the educational status and 
        needs of Indians; and
            ``(4) carry out other activities that are consistent with 
        the purpose of this part.

    ``(b) Eligibility.--The Secretary may carry out any of the 
activities described in subsection (a) directly or through grants to, or 
contracts or cooperative agreements with, Indian tribes, Indian 
organizations, State educational agencies, local educational agencies, 
institutions of higher education, including Indian institutions of 
higher education, and other public and private agencies and 
institutions.
    ``(c) Coordination.--Research activities supported under this 
section--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to ensure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by the Office; and
            ``(2) may include collaborative research activities that are 
        jointly funded and carried out by the Office of Indian Education 
        Programs and the Office of Educational Research and Improvement.

[[Page 115 STAT. 1924]]

``SEC. 7132. <<NOTE: 20 USC 7452.>>  IN-SERVICE TRAINING FOR TEACHERS OF 
            INDIAN CHILDREN.

    ``(a) Grants Authorized.--In addition to the grants authorized by 
section 7122(c), the Secretary may make grants to eligible consortia for 
the provision of high quality in-service training. The Secretary may 
make such a grant to--
            ``(1) a consortium of a tribal college and an institution of 
        higher education that awards a degree in education; or
            ``(2) a consortium of--
                    ``(A) a tribal college;
                    ``(B) an institution of higher education that awards 
                a degree in education; and
                    ``(C) one or more elementary schools or secondary 
                schools operated by the Bureau of Indian Affairs, local 
                educational agencies serving Indian children, or tribal 
                educational agencies.

    ``(b) Use of Funds.--
            ``(1) In-service training.--A consortium that receives a 
        grant under subsection (a) shall use the grant funds only to 
        provide high quality in-service training to teachers, including 
        teachers who are not Indians, in schools of local educational 
        agencies with substantial numbers of Indian children enrolled in 
        their schools, in order to better meet the needs of those 
        children.
            ``(2) Components.--The training described in paragraph (1) 
        shall include such activities as preparing teachers to use the 
        best available scientifically based research practices and 
        learning strategies, and to make the most effective use of 
        curricula and materials, to respond to the unique needs of 
        Indian children in their classrooms.

    ``(c) Preference for Indian Applicants.--In applying section 7143 to 
this section, the Secretary shall give a preference to any consortium 
that includes one or more of the entities described in section 7143.

``SEC. 7133. <<NOTE: 20 USC 7453.>>  FELLOWSHIPS FOR INDIAN STUDENTS.

    ``(a) Fellowships.--
            ``(1) Authority.--The Secretary is authorized to award 
        fellowships to Indian students to enable such students to study 
        in graduate and professional programs at institutions of higher 
        education.
            ``(2) Requirements.--The fellowships described in paragraph 
        (1) shall be awarded to Indian students to enable such students 
        to pursue a course of study--
                    ``(A) of not more than 4 academic years; and
                    ``(B) that leads--
                          ``(i) toward a postbaccalaureate degree in 
                      medicine, clinical psychology, psychology, law, 
                      education, or a related field; or
                          ``(ii) to an undergraduate or graduate degree 
                      in engineering, business administration, natural 
                      resources, or a related field.

    ``(b) Stipends.--The Secretary shall pay to Indian students awarded 
fellowships under subsection (a) such stipends (including allowances for 
subsistence of such students and dependents of such students) as the 
Secretary determines to be consistent with prevailing practices under 
comparable federally supported programs.

[[Page 115 STAT. 1925]]

    ``(c) Payments to Institutions in Lieu of Tuition.--The Secretary 
shall pay to the institution of higher education at which such a 
fellowship recipient is pursuing a course of study, in lieu of tuition 
charged to such recipient, such amounts as the Secretary may determine 
to be necessary to cover the cost of education provided to such 
recipient.
    ``(d) Special Rules.--
            ``(1) In general.--If a fellowship awarded under subsection 
        (a) is vacated prior to the end of the period for which the 
        fellowship is awarded, the Secretary may award an additional 
        fellowship for the unexpired portion of the period of the first 
        fellowship.
            ``(2) Written notice.--Not <<NOTE: Deadline.>>  later than 
        45 days before the commencement of an academic term, the 
        Secretary shall provide to each individual who is awarded a 
        fellowship under subsection (a) for such academic term written 
        notice of--
                    ``(A) the amount of the funding for the fellowship; 
                and
                    ``(B) any stipends or other payments that will be 
                made under this section to, or for the benefit of, the 
                individual for the academic term.
            ``(3) Priority.--Not more than 10 percent of the fellowships 
        awarded under subsection (a) shall be awarded, on a priority 
        basis, to persons receiving training in guidance counseling with 
        a specialty in the area of alcohol and substance abuse 
        counseling and education.

    ``(e) Service Obligation.--
            ``(1) In general.--The Secretary shall require, by 
        regulation, that an individual who receives financial assistance 
        under this section--
                    ``(A) perform work--
                          ``(i) related to the training for which the 
                      individual receives the assistance under this 
                      section; and
                          ``(ii) that benefits Indian people; or
                    ``(B) repay all or a prorated portion of such 
                assistance.
            ``(2) <<NOTE: Regulations.>>  Reporting.--The Secretary 
        shall establish, by regulation, a reporting procedure under 
        which a recipient of assistance under this section shall, not 
        later than 12 months after the date of completion of the 
        training, and periodically thereafter, provide information 
        concerning the compliance of such recipient with the work 
        requirement described in paragraph (1).

    ``(f) Administration of Fellowships.--The Secretary may administer 
the fellowships authorized under this section through a grant to, or 
contract or cooperative agreement with, an Indian organization with 
demonstrated qualifications to administer all facets of the program 
assisted under this section.

``SEC. 7134. <<NOTE: 20 USC 7454.>>  GIFTED AND TALENTED INDIAN 
            STUDENTS.

    ``(a) Program Authorized.--The Secretary is authorized to--
            ``(1) establish two centers for gifted and talented Indian 
        students at tribally controlled community colleges in accordance 
        with this section; and
            ``(2) support demonstration projects described in subsection 
        (c).

    ``(b) Eligible Entities.--The Secretary shall make grants, or enter 
into contracts, for the activities described in subsection (a), to or 
with--

[[Page 115 STAT. 1926]]

            ``(1) two tribally controlled community colleges that--
                    ``(A) are eligible for funding under the Tribally 
                Controlled College or University Assistance Act of 1978; 
                and
                    ``(B) are fully accredited; or
            ``(2) the American Indian Higher Education Consortium, if 
        the Secretary does not receive applications that the Secretary 
        determines to be approvable from two colleges that meet the 
        requirements of paragraph (1).

    ``(c) Use of Funds.--
            ``(1) In general.--Funds made available through the grants 
        made, or contracts entered into, by the Secretary under 
        subsection (b) shall be used for--
                    ``(A) the establishment of centers described in 
                subsection (a); and
                    ``(B) carrying out demonstration projects designed 
                to--
                          ``(i) address the special needs of Indian 
                      students in elementary schools and secondary 
                      schools who are gifted and talented; and
                          ``(ii) provide such support services to the 
                      families of the students described in clause (i) 
                      as are needed to enable such students to benefit 
                      from the projects.
            ``(2) Subcontracts.--Each recipient of a grant or contract 
        under subsection (b) to carry out a demonstration project under 
        subsection (a) may enter into a contract with any other entity, 
        including the Children's Television Workshop, to carry out the 
        demonstration project.
            ``(3) Demonstration projects.--Demonstration projects 
        assisted under subsection (b) may include--
                    ``(A) the identification of the special needs of 
                gifted and talented Indian students, particularly at the 
                elementary school level, giving attention to--
                          ``(i) identifying the emotional and 
                      psychosocial needs of such students; and
                          ``(ii) providing such support services to the 
                      families of such students as are needed to enable 
                      such students to benefit from the projects;
                    ``(B) the conduct of educational, psychosocial, and 
                developmental activities that the Secretary determines 
                hold a reasonable promise of resulting in substantial 
                progress toward meeting the educational needs of such 
                gifted and talented children, including--
                          ``(i) demonstrating and exploring the use of 
                      Indian languages and exposure to Indian cultural 
                      traditions; and
                          ``(ii) carrying out mentoring and 
                      apprenticeship programs;
                    ``(C) the provision of technical assistance and the 
                coordination of activities at schools that receive 
                grants under subsection (d) with respect to the 
                activities assisted under such grants, the evaluation of 
                programs assisted under such grants, or the 
                dissemination of such evaluations;
                    ``(D) the use of public television in meeting the 
                special educational needs of such gifted and talented 
                children;
                    ``(E) leadership programs designed to replicate 
                programs for such children throughout the United States,

[[Page 115 STAT. 1927]]

                including disseminating information derived from the 
                demonstration projects conducted under subsection (a); 
                and
                    ``(F) appropriate research, evaluation, and related 
                activities pertaining to the needs of such children and 
                to the provision of such support services to the 
                families of such children as are needed to enable such 
                children to benefit from the projects.
            ``(4) Application.--Each eligible entity desiring a grant or 
        contract under subsection (b) shall submit an application to the 
        Secretary at such time, in such manner, and accompanied by such 
        information, as the Secretary may reasonably require.

    ``(d) Additional Grants.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of the Interior, shall award 5 grants to schools 
        funded by the Bureau of Indian Affairs (hereafter referred to 
        individually in this section as a `Bureau school') for program 
        research and development and the development and dissemination 
        of curriculum and teacher training material, regarding--
                    ``(A) gifted and talented students;
                    ``(B) college preparatory studies (including 
                programs for Indian students with an interest in 
                pursuing teaching careers);
                    ``(C) students with special culturally related 
                academic needs, including students with social, lingual, 
                and cultural needs; or
                    ``(D) mathematics and science education.
            ``(2) Applications.--Each Bureau school desiring a grant 
        under this subsection shall submit an application to the 
        Secretary at such time, in such manner, and accompanied by such 
        information, as the Secretary may reasonably require.
            ``(3) Special rule.--Each application described in paragraph 
        (2) shall be developed, and each grant under this subsection 
        shall be administered, jointly by the supervisor of the Bureau 
        school and the local educational agency serving such school.
            ``(4) Requirements.--In awarding grants under paragraph (1), 
        the Secretary shall achieve a mixture of the programs described 
        in paragraph (1) that ensures that Indian students at all grade 
        levels and in all geographic areas of the United States are able 
        to participate in a program assisted under this subsection.
            ``(5) Grant period.--Subject to the availability of 
        appropriations, a grant awarded under paragraph (1) shall be 
        awarded for a 3-year period and may be renewed by the Secretary 
        for additional 3-year periods if the Secretary determines that 
        the performance of the grant recipient has been satisfactory.
            ``(6) Dissemination.--
                    ``(A) Cooperative efforts.--The dissemination of any 
                materials developed from activities assisted under 
                paragraph (1) shall be carried out in cooperation with 
                entities that receive funds pursuant to subsection (b).
                    ``(B) Report.--The Secretary shall prepare and 
                submit to the Secretary of the Interior and to Congress 
                a report concerning any results from activities 
                described in this subsection.
            ``(7) Evaluation costs.--

[[Page 115 STAT. 1928]]

                    ``(A) Division.--The costs of evaluating any 
                activities assisted under paragraph (1) shall be divided 
                between the Bureau schools conducting such activities 
                and the recipients of grants or contracts under 
                subsection (b) who conduct demonstration projects under 
                subsection (a).
                    ``(B) Grants and contracts.--If no funds are 
                provided under subsection (b) for--
                          ``(i) the evaluation of activities assisted 
                      under paragraph (1);
                          ``(ii) technical assistance and coordination 
                      with respect to such activities; or
                          ``(iii) the dissemination of the evaluations 
                      referred to in clause (i),
                the Secretary shall make such grants, or enter into such 
                contracts, as are necessary to provide for the 
                evaluations, technical assistance, and coordination of 
                such activities, and the dissemination of the 
                evaluations.

    ``(e) Information Network.--The Secretary shall encourage each 
recipient of a grant or contract under this section to work 
cooperatively as part of a national network to ensure that the 
information developed by the grant or contract recipient is readily 
available to the entire educational community.

``SEC. 7135. <<NOTE: 20 USC 7455.>>  GRANTS TO TRIBES FOR EDUCATION 
            ADMINISTRATIVE PLANNING AND DEVELOPMENT.

    ``(a) In General.--The Secretary may make grants to Indian tribes, 
and tribal organizations approved by Indian tribes, to plan and develop 
a centralized tribal administrative entity to--
            ``(1) coordinate all education programs operated by the 
        tribe or within the territorial jurisdiction of the tribe;
            ``(2) develop education codes for schools within the 
        territorial jurisdiction of the tribe;
            ``(3) provide support services and technical assistance to 
        schools serving children of the tribe; and
            ``(4) perform child-find screening services for the 
        preschool-aged children of the tribe to--
                    ``(A) ensure placement in appropriate educational 
                facilities; and
                    ``(B) coordinate the provision of any needed special 
                services for conditions such as disabilities and English 
                language skill deficiencies.

    ``(b) Period of Grant.--Each grant awarded under this section may be 
awarded for a period of not more than 3 years. Such grant may be renewed 
upon the termination of the initial period of the grant if the grant 
recipient demonstrates to the satisfaction of the Secretary that 
renewing the grant for an additional 3-year period is necessary to carry 
out the objectives of the grant described in subsection (c)(2)(A).
    ``(c) Application for Grant.--
            ``(1) In general.--Each Indian tribe and tribal organization 
        desiring a grant under this section shall submit an application 
        to the Secretary at such time, in such manner, containing such 
        information, and consistent with such criteria, as the Secretary 
        may prescribe in regulations.
            ``(2) Contents.--Each application described in paragraph (1) 
        shall contain--

[[Page 115 STAT. 1929]]

                    ``(A) a statement describing the activities to be 
                conducted, and the objectives to be achieved, under the 
                grant; and
                    ``(B) a description of the method to be used for 
                evaluating the effectiveness of the activities for which 
                assistance is sought and for determining whether such 
                objectives are achieved.
            ``(3) Approval.--The Secretary may approve an application 
        submitted by a tribe or tribal organization pursuant to this 
        section only if the Secretary is satisfied that such 
        application, including any documentation submitted with the 
        application--
                    ``(A) demonstrates that the applicant has consulted 
                with other education entities, if any, within the 
                territorial jurisdiction of the applicant who will be 
                affected by the activities to be conducted under the 
                grant;
                    ``(B) provides for consultation with such other 
                education entities in the operation and evaluation of 
                the activities conducted under the grant; and
                    ``(C) demonstrates that there will be adequate 
                resources provided under this section or from other 
                sources to complete the activities for which assistance 
                is sought, except that the availability of such other 
                resources shall not be a basis for disapproval of such 
                application.

    ``(d) Restriction.--A tribe may not receive funds under this section 
if such tribe receives funds under section 1144 of the Education 
Amendments of 1978.

``SEC. 7136. <<NOTE: 20 USC 7456.>>  IMPROVEMENT OF EDUCATIONAL 
            OPPORTUNITIES FOR ADULT INDIANS.

    ``(a) In General.--The Secretary shall make grants to State 
educational agencies, local educational agencies, and Indian tribes, 
institutions, and organizations--
            ``(1) to support planning, pilot, and demonstration projects 
        that are designed to test and demonstrate the effectiveness of 
        programs for improving employment and educational opportunities 
        for adult Indians;
            ``(2) to assist in the establishment and operation of 
        programs that are designed to stimulate--
                    ``(A) the provision of basic literacy opportunities 
                for all nonliterate Indian adults; and
                    ``(B) the provision of opportunities to all Indian 
                adults to qualify for a secondary school diploma, or its 
                recognized equivalent, in the shortest period of time 
                feasible;
            ``(3) to support a major research and development program to 
        develop more innovative and effective techniques for achieving 
        literacy and secondary school equivalency for Indians;
            ``(4) to provide for basic surveys and evaluations to define 
        accurately the extent of the problems of illiteracy and lack of 
        secondary school completion among Indians; and
            ``(5) to encourage the dissemination of information and 
        materials relating to, and the evaluation of, the effectiveness 
        of education programs that may offer educational opportunities 
        to Indian adults.

    ``(b) Educational Services.--The Secretary may make grants to Indian 
tribes, institutions, and organizations to develop and establish 
educational services and programs specifically designed to improve 
educational opportunities for Indian adults.

[[Page 115 STAT. 1930]]

    ``(c) Information and Evaluation.--The Secretary may make grants to, 
and enter into contracts with, public agencies and institutions and 
Indian tribes, institutions, and organizations, for--
            ``(1) the dissemination of information concerning 
        educational programs, services, and resources available to 
        Indian adults, including evaluations of the programs, services, 
        and resources; and
            ``(2) the evaluation of federally assisted programs in which 
        Indian adults may participate to determine the effectiveness of 
        the programs in achieving the purposes of the programs with 
        respect to Indian adults.

    ``(d) Applications.--
            ``(1) In general.--Each entity desiring a grant or contract 
        under this section shall submit to the Secretary an application 
        at such time, in such manner, containing such information, and 
        consistent with such criteria, as the Secretary may prescribe in 
        regulations.
            ``(2) Contents.--Each application described in paragraph (1) 
        shall contain--
                    ``(A) a statement describing the activities to be 
                conducted and the objectives to be achieved under the 
                grant or contract; and
                    ``(B) a description of the method to be used for 
                evaluating the effectiveness of the activities for which 
                assistance is sought and determining whether the 
                objectives of the grant or contract are achieved.
            ``(3) Approval.--The Secretary shall not approve an 
        application described in paragraph (1) unless the Secretary 
        determines that such application, including any documentation 
        submitted with the application, indicates that--
                    ``(A) there has been adequate participation, by the 
                individuals to be served and the appropriate tribal 
                communities, in the planning and development of the 
                activities to be assisted; and
                    ``(B) the individuals and tribal communities 
                referred to in subparagraph (A) will participate in the 
                operation and evaluation of the activities to be 
                assisted.
            ``(4) Priority.--In approving applications under paragraph 
        (1), the Secretary shall give priority to applications from 
        Indian educational agencies, organizations, and institutions.

    ``(e) Administrative Costs.--Not more than 5 percent of the funds 
made available to an entity through a grant or contract made or entered 
into under this section for a fiscal year may be used to pay for 
administrative costs.

                   ``Subpart 4--Federal Administration

``SEC. 7141. <<NOTE: 20 USC 7471.>>  NATIONAL ADVISORY COUNCIL ON INDIAN 
            EDUCATION.

    ``(a) Membership.--There <<NOTE: Establishment.>>  is established a 
National Advisory Council on Indian Education (hereafter in this section 
referred to as the `Council'), which shall--
            ``(1) consist of 15 Indian members, who shall be appointed 
        by the President from lists of nominees furnished, from time to 
        time, by Indian tribes and organizations; and
            ``(2) represent different geographic areas of the United 
        States.

    ``(b) Duties.--The Council shall--

[[Page 115 STAT. 1931]]

            ``(1) advise the Secretary concerning the funding and 
        administration (including the development of regulations and 
        administrative policies and practices) of any program, including 
        any program established under this part--
                    ``(A) with respect to which the Secretary has 
                jurisdiction; and
                    ``(B)(i) that includes Indian children or adults as 
                participants; or
                    ``(ii) that may benefit Indian children or adults;
            ``(2) make recommendations to the Secretary for filling the 
        position of Director of Indian Education whenever a vacancy 
        occurs; and
            ``(3) <<NOTE: Deadline.>>  submit to Congress, not later 
        than June 30 of each year, a report on the activities of the 
        Council, <<NOTE: Reports.>> including--
                    ``(A) any recommendations that the Council considers 
                appropriate for the improvement of Federal education 
                programs that include Indian children or adults as 
                participants, or that may benefit Indian children or 
                adults; and
                    ``(B) recommendations concerning the funding of any 
                program described in subparagraph (A).

``SEC. 7142. <<NOTE: 20 USC 7472.>>  PEER REVIEW.

    ``The Secretary may use a peer review process to review applications 
submitted to the Secretary under subpart 2 or subpart 3.

``SEC. 7143. <<NOTE: 20 USC 7473.>>  PREFERENCE FOR INDIAN APPLICANTS.

    ``In making grants and entering into contracts or cooperative 
agreements under subpart 2 or subpart 3, the Secretary shall give a 
preference to Indian tribes, organizations, and institutions of higher 
education under any program with respect to which Indian tribes, 
organizations, and institutions are eligible to apply for grants, 
contracts, or cooperative agreements.

``SEC. 7144. <<NOTE: 20 USC 7474.>>  MINIMUM GRANT CRITERIA.

    ``The Secretary may not approve an application for a grant, 
contract, or cooperative agreement under subpart 2 or subpart 3 unless 
the application is for a grant, contract, or cooperative agreement that 
is--
            ``(1) of sufficient size, scope, and quality to achieve the 
        purpose or objectives of such grant, contract, or cooperative 
        agreement; and
            ``(2) based on relevant research findings.

       ``Subpart 5--Definitions; Authorizations of Appropriations

``SEC. 7151. <<NOTE: 20 USC 7491.>>  DEFINITIONS.

    ``For the purposes of this part:
            ``(1) Adult.--The term `adult' means an individual who--
                    ``(A) has attained the age of 16 years; or
                    ``(B) has attained an age that is greater than the 
                age of compulsory school attendance under an applicable 
                State law.
            ``(2) Free public education.--The term `free public 
        education' means education that is--
                    ``(A) provided at public expense, under public 
                supervision and direction, and without tuition charge; 
                and

[[Page 115 STAT. 1932]]

                    ``(B) provided as elementary or secondary education 
                in the applicable State or to preschool children.
            ``(3) Indian.--The term `Indian' means an individual who 
        is--
                    ``(A) a member of an Indian tribe or band, as 
                membership is defined by the tribe or band, including--
                          ``(i) any tribe or band terminated since 1940; 
                      and
                          ``(ii) any tribe or band recognized by the 
                      State in which the tribe or band resides;
                    ``(B) a descendant, in the first or second degree, 
                of an individual described in subparagraph (A);
                    ``(C) considered by the Secretary of the Interior to 
                be an Indian for any purpose;
                    ``(D) an Eskimo, Aleut, or other Alaska Native; or
                    ``(E) a member of an organized Indian group that 
                received a grant under the Indian Education Act of 1988 
                as in effect the day preceding the date of enactment of 
                the Improving America's Schools Act of 1994.

``SEC. 7152. <<NOTE: 20 USC 7492.>>  AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) Subpart 1.--For the purpose of carrying out subpart 1, there 
are authorized to be appropriated $96,400,000 for fiscal year 2002 and 
such sums as may be necessary for each of the 5 succeeding fiscal years.
    ``(b) Subparts 2 and 3.--For the purpose of carrying out subparts 2 
and 3, there are authorized to be appropriated $24,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.

  ``PART <<NOTE: Native Hawaiian Education Act.>>  B--NATIVE HAWAIIAN 
EDUCATION

``SEC. 7201. <<NOTE: 20 USC 7511.>>  SHORT TITLE.

    ``This part may be cited as the `Native Hawaiian Education Act'.

``SEC. 7202. <<NOTE: 20 USC 7512.>>  FINDINGS.

    ``Congress finds the following:
            ``(1) Native Hawaiians are a distinct and unique indigenous 
        people with a historical continuity to the original inhabitants 
        of the Hawaiian archipelago, whose society was organized as a 
        nation and internationally recognized as a nation by the United 
        States, Britain, France, and Japan, as evidenced by treaties 
        governing friendship, commerce, and navigation.
            ``(2) At the time of the arrival of the first nonindigenous 
        people in Hawaii in 1778, the Native Hawaiian people lived in a 
        highly organized, self-sufficient subsistence social system 
        based on a communal land tenure system with a sophisticated 
        language, culture, and religion.
            ``(3) A unified monarchal government of the Hawaiian Islands 
        was established in 1810 under Kamehameha I, the first King of 
        Hawaii.
            ``(4) From 1826 until 1893, the United States recognized the 
        sovereignty and independence of the Kingdom of Hawaii, which was 
        established in 1810 under Kamehameha I, extended full and 
        complete diplomatic recognition to the Kingdom of Hawaii, and 
        entered into treaties and conventions with the Kingdom of Hawaii 
        to govern friendship, commerce and navigation in 1826, 1842, 
        1849, 1875, and 1887.

[[Page 115 STAT. 1933]]

            ``(5) In 1893, the sovereign, independent, internationally 
        recognized, and indigenous government of Hawaii, the Kingdom of 
        Hawaii, was overthrown by a small group of non-Hawaiians, 
        including United States citizens, who were assisted in their 
        efforts by the United States Minister, a United States naval 
        representative, and armed naval forces of the United States. 
        Because of the participation of United States agents and 
        citizens in the overthrow of the Kingdom of Hawaii, in 1993 the 
        United States apologized to Native Hawaiians for the overthrow 
        and the deprivation of the rights of Native Hawaiians to self-
        determination through Public Law 103-150 (107 Stat. 1510).
            ``(6) In 1898, the joint resolution entitled `Joint 
        Resolution to provide for annexing the Hawaiian Islands to the 
        United States', approved July 7, 1898 (30 Stat. 750), ceded 
        absolute title of all lands held by the Republic of Hawaii, 
        including the government and crown lands of the former Kingdom 
        of Hawaii, to the United States, but mandated that revenue 
        generated from the lands be used `solely for the benefit of the 
        inhabitants of the Hawaiian Islands for educational and other 
        public purposes'.
            ``(7) By 1919, the Native Hawaiian population had declined 
        from an estimated 1,000,000 in 1778 to an alarming 22,600, and 
        in recognition of this severe decline, Congress enacted the 
        Hawaiian Homes Commission Act, 1920 (42 Stat. 108), which 
        designated approximately 200,000 acres of ceded public lands for 
        homesteading by Native Hawaiians.
            ``(8) Through the enactment of the Hawaiian Homes Commission 
        Act, 1920, Congress affirmed the special relationship between 
        the United States and the Native Hawaiians, which was described 
        by then Secretary of the Interior Franklin K. Lane, who said: 
        `One thing that impressed me . . . was the fact that the natives 
        of the island who are our wards, I should say, and for whom in a 
        sense we are trustees, are falling off rapidly in numbers and 
        many of them are in poverty.'.
            ``(9) In 1938, Congress again acknowledged the unique status 
        of the Hawaiian people by including in the Act of June 20, 1938 
        (52 Stat. 781, chapter 530; 16 U.S.C. 391b, 391b-1, 392b, 392c, 
        396, 396a), a provision to lease lands within the National Parks 
        extension to Native Hawaiians and to permit fishing in the area 
        `only by native Hawaiian residents of said area or of adjacent 
        villages and by visitors under their guidance.'.
            ``(10) Under the Act entitled `An Act to provide for the 
        admission of the State of Hawaii into the Union', approved March 
        18, 1959 (73 Stat. 4), the United States transferred 
        responsibility for the administration of the Hawaiian Home Lands 
        to the State of Hawaii but reaffirmed the trust relationship 
        between the United States and the Hawaiian people by retaining 
        the exclusive power to enforce the trust, including the power to 
        approve land exchanges and amendments to such Act affecting the 
        rights of beneficiaries under such Act.
            ``(11) In 1959, under the Act entitled `An Act to provide 
        for the admission of the State of Hawaii into the Union', the 
        United States also ceded to the State of Hawaii title to the 
        public lands formerly held by the United States, but mandated 
        that such lands be held by the State `in public trust' and

[[Page 115 STAT. 1934]]

        reaffirmed the special relationship that existed between the 
        United States and the Hawaiian people by retaining the legal 
        responsibility to enforce the public trust responsibility of the 
        State of Hawaii for the betterment of the conditions of Native 
        Hawaiians, as defined in section 201(a) of the Hawaiian Homes 
        Commission Act, 1920.
            ``(12) The United States has recognized and reaffirmed 
        that--
                    ``(A) Native Hawaiians have a cultural, historic, 
                and land-based link to the indigenous people who 
                exercised sovereignty over the Hawaiian Islands, and 
                that group has never relinquished its claims to 
                sovereignty or its sovereign lands;
                    ``(B) Congress does not extend services to Native 
                Hawaiians because of their race, but because of their 
                unique status as the indigenous people of a once 
                sovereign nation as to whom the United States has 
                established a trust relationship;
                    ``(C) Congress has also delegated broad authority to 
                administer a portion of the Federal trust responsibility 
                to the State of Hawaii;
                    ``(D) the political status of Native Hawaiians is 
                comparable to that of American Indians and Alaska 
                Natives; and
                    ``(E) the aboriginal, indigenous people of the 
                United States have--
                          ``(i) a continuing right to autonomy in their 
                      internal affairs; and
                          ``(ii) an ongoing right of self-determination 
                      and self-governance that has never been 
                      extinguished.
            ``(13) The political relationship between the United States 
        and the Native Hawaiian people has been recognized and 
        reaffirmed by the United States, as evidenced by the inclusion 
        of Native Hawaiians in--
                    ``(A) the Native American Programs Act of 1974 (42 
                U.S.C. 2991 et seq.);
                    ``(B) the American Indian Religious Freedom Act (42 
                U.S.C. 1996);
                    ``(C) the National Museum of the American Indian Act 
                (20 U.S.C. 80q et seq.);
                    ``(D) the Native American Graves Protection and 
                Repatriation Act (25 U.S.C. 3001 et seq.);
                    ``(E) the National Historic Preservation Act (16 
                U.S.C. 470 et seq.);
                    ``(F) the Native American Languages Act (25 U.S.C. 
                2901 et seq.);
                    ``(G) the American Indian, Alaska Native, and Native 
                Hawaiian Culture and Art Development Act (20 U.S.C. 4401 
                et seq.);
                    ``(H) the Workforce Investment Act of 1998 (29 
                U.S.C. 2801 et seq.); and
                    ``(I) the Older Americans Act of 1965 (42 U.S.C. 
                3001 et seq.).
            ``(14) In 1981, Congress instructed the Office of Education 
        to submit to Congress a comprehensive report on Native Hawaiian 
        education. The report, entitled the `Native Hawaiian Educational 
        Assessment Project', was released in 1983 and

[[Page 115 STAT. 1935]]

        documented that Native Hawaiians scored below parity with regard 
        to national norms on standardized achievement tests, were 
        disproportionately represented in many negative social and 
        physical statistics indicative of special educational needs, and 
        had educational needs that were related to their unique cultural 
        situation, such as different learning styles and low self-image.
            ``(15) In recognition of the educational needs of Native 
        Hawaiians, in 1988, Congress enacted title IV of the Augustus F. 
        Hawkins-Robert T. Stafford Elementary and Secondary School 
        Improvement Amendments of 1988 (102 Stat. 130) to authorize and 
        develop supplemental educational programs to address the unique 
        conditions of Native Hawaiians.
            ``(16) In 1993, the Kamehameha Schools Bishop Estate 
        released a 10-year update of findings of the Native Hawaiian 
        Educational Assessment Project, which found that despite the 
        successes of the programs established under title IV of the 
        Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary 
        School Improvement Amendments of 1988, many of the same 
        educational needs still existed for Native Hawaiians. Subsequent 
        reports by the Kamehameha Schools Bishop Estate and other 
        organizations have generally confirmed those findings. For 
        example--
                    ``(A) educational risk factors continue to start 
                even before birth for many Native Hawaiian children, 
                including--
                          ``(i) late or no prenatal care;
                          ``(ii) high rates of births by Native Hawaiian 
                      women who are unmarried; and
                          ``(iii) high rates of births to teenage 
                      parents;
                    ``(B) Native Hawaiian students continue to begin 
                their school experience lagging behind other students in 
                terms of readiness factors such as vocabulary test 
                scores;
                    ``(C) Native Hawaiian students continue to score 
                below national norms on standardized education 
                achievement tests at all grade levels;
                    ``(D) both public and private schools continue to 
                show a pattern of lower percentages of Native Hawaiian 
                students in the uppermost achievement levels and in 
                gifted and talented programs;
                    ``(E) Native Hawaiian students continue to be 
                overrepresented among students qualifying for special 
                education programs provided to students with learning 
                disabilities, mild mental retardation, emotional 
                impairment, and other such disabilities;
                    ``(F) Native Hawaiians continue to be 
                underrepresented in institutions of higher education and 
                among adults who have completed four or more years of 
                college;
                    ``(G) Native Hawaiians continue to be 
                disproportionately represented in many negative social 
                and physical statistics indicative of special 
                educational needs, as demonstrated by the fact that--
                          ``(i) Native Hawaiian students are more likely 
                      to be retained in grade level and to be 
                      excessively absent in secondary school;

[[Page 115 STAT. 1936]]

                          ``(ii) Native Hawaiian students have the 
                      highest rates of drug and alcohol use in the State 
                      of Hawaii; and
                          ``(iii) Native Hawaiian children continue to 
                      be disproportionately victimized by child abuse 
                      and neglect; and
                    ``(H) Native Hawaiians now comprise over 23 percent 
                of the students served by the State of Hawaii Department 
                of Education, and there are and will continue to be 
                geographically rural, isolated areas with a high Native 
                Hawaiian population density.
            ``(17) In the 1998 National Assessment of Educational 
        Progress, Hawaiian fourth-graders ranked 39th among groups of 
        students from 39 States in reading. Given that Hawaiian students 
        rank among the lowest groups of students nationally in reading, 
        and that Native Hawaiian students rank the lowest among Hawaiian 
        students in reading, it is imperative that greater focus be 
        placed on beginning reading and early education and literacy in 
        Hawaii.
            ``(18) The findings described in paragraphs (16) and (17) 
        are inconsistent with the high rates of literacy and integration 
        of traditional culture and Western education historically 
        achieved by Native Hawaiians through a Hawaiian language-based 
        public school system established in 1840 by Kamehameha III.
            ``(19) Following the overthrow of the Kingdom of Hawaii in 
        1893, Hawaiian medium schools were banned. After annexation, 
        throughout the territorial and statehood period of Hawaii, and 
        until 1986, use of the Hawaiian language as an instructional 
        medium in education in public schools was declared unlawful. The 
        declaration caused incalculable harm to a culture that placed a 
        very high value on the power of language, as exemplified in the 
        traditional saying: `I ka `olelo no ke ola; I ka `olelo no ka 
        make. In the language rests life; In the language rests death.'.
            ``(20) Despite the consequences of over 100 years of 
        nonindigenous influence, the Native Hawaiian people are 
        determined to preserve, develop, and transmit to future 
        generations their ancestral territory and their cultural 
        identity in accordance with their own spiritual and traditional 
        beliefs, customs, practices, language, and social institutions.
            ``(21) The State of Hawaii, in the constitution and statutes 
        of the State of Hawaii--
                    ``(A) reaffirms and protects the unique right of the 
                Native Hawaiian people to practice and perpetuate their 
                culture and religious customs, beliefs, practices, and 
                language;
                    ``(B) recognizes the traditional language of the 
                Native Hawaiian people as an official language of the 
                State of Hawaii, which may be used as the language of 
                instruction for all subjects and grades in the public 
                school system; and
                    ``(C) promotes the study of the Hawaiian culture, 
                language, and history by providing a Hawaiian education 
                program and using community expertise as a suitable and 
                essential means to further the program.

[[Page 115 STAT. 1937]]

``SEC. 7203. <<NOTE: 20 USC 7513.>>  PURPOSES.

    ``The purposes of this part are to--
            ``(1) authorize and develop innovative educational programs 
        to assist Native Hawaiians;
            ``(2) provide direction and guidance to appropriate Federal, 
        State, and local agencies to focus resources, including 
        resources made available under this part, on Native Hawaiian 
        education, and to provide periodic assessment and data 
        collection;
            ``(3) supplement and expand programs and authorities in the 
        area of education to further the purposes of this title; and
            ``(4) encourage the maximum participation of Native 
        Hawaiians in planning and management of Native Hawaiian 
        education programs.

``SEC. 7204. <<NOTE: 20 USC 7514.>>  NATIVE HAWAIIAN EDUCATION COUNCIL 
            AND ISLAND COUNCILS.

    ``(a) Establishment of Native Hawaiian Education Council.--In order 
to better effectuate the purposes of this part through the coordination 
of educational and related services and programs available to Native 
Hawaiians, including those programs receiving funding under this part, 
the Secretary is authorized to establish a Native Hawaiian Education 
Council (hereafter in this part referred to as the `Education Council').
    ``(b) Composition of Education Council.--The Education Council shall 
consist of not more than 21 members, unless otherwise determined by a 
majority of the council.
    ``(c) Conditions and Terms.--
            ``(1) Conditions.--At least 10 members of the Education 
        Council shall be Native Hawaiian education service providers and 
        10 members of the Education Council shall be Native Hawaiians or 
        Native Hawaiian education consumers. In addition, a 
        representative of the State of Hawaii Office of Hawaiian Affairs 
        shall serve as a member of the Education Council.
            ``(2) Appointments.--The members of the Education Council 
        shall be appointed by the Secretary based on recommendations 
        received from the Native Hawaiian community.
            ``(3) Terms.--Members of the Education Council shall serve 
        for staggered terms of 3 years, except as provided in paragraph 
        (4).
            ``(4) Council determinations.--Additional conditions and 
        terms relating to membership on the Education Council, including 
        term lengths and term renewals, shall be determined by a 
        majority of the Education Council.

    ``(d) Native Hawaiian Education Council Grant.--The Secretary shall 
make a direct grant to the Education Council to carry out the following 
activities:
            ``(1) Coordinate the educational and related services and 
        programs available to Native Hawaiians, including the programs 
        assisted under this part.
            ``(2) Assess the extent to which such services and programs 
        meet the needs of Native Hawaiians, and collect data on the 
        status of Native Hawaiian education.
            ``(3) Provide direction and guidance, through the issuance 
        of reports and recommendations, to appropriate Federal, State, 
        and local agencies in order to focus and improve the use of 
        resources, including resources made available under this part,

[[Page 115 STAT. 1938]]

        relating to Native Hawaiian education, and serve, where 
        appropriate, in an advisory capacity.
            ``(4) Make direct grants, if such grants enable the 
        Education Council to carry out the duties of the Education 
        Council, as described in paragraphs (1) through (3).

    ``(e) Additional Duties of the Education Council.--
            ``(1) In general.--The Education Council shall provide 
        copies of any reports and recommendations issued by the 
        Education Council, including any information that the Education 
        Council provides to the Secretary pursuant to subsection (i), to 
        the Secretary, the Committee on Education and the Workforce of 
        the House of Representatives, and the Committee on Indian 
        Affairs of the Senate.
            ``(2) Annual report.--The Education Council shall prepare 
        and submit to the Secretary an annual report on the Education 
        Council's activities.
            ``(3) Island council support and assistance.--The Education 
        Council shall provide such administrative support and financial 
        assistance to the island councils established pursuant to 
        subsection (f) as the Secretary determines to be appropriate, in 
        a manner that supports the distinct needs of each island 
        council.

    ``(f) Establishment of Island Councils.--
            ``(1) In general.--In order to better effectuate the 
        purposes of this part and to ensure the adequate representation 
        of island and community interests within the Education Council, 
        the Secretary is authorized to facilitate the establishment of 
        Native Hawaiian education island councils (hereafter in this 
        part referred to as an `island council') for the following 
        islands:
                    ``(A) Hawaii.
                    ``(B) Maui.
                    ``(C) Molokai.
                    ``(D) Lanai.
                    ``(E) Oahu.
                    ``(F) Kauai.
                    ``(G) Niihau.
            ``(2) Composition of island councils.--Each island council 
        shall consist of parents, students, and other community members 
        who have an interest in the education of Native Hawaiians, and 
        shall be representative of individuals concerned with the 
        educational needs of all age groups, from children in preschool 
        through adults. At least three-fourths of the members of each 
        island council shall be Native Hawaiians.

    ``(g) Administrative Provisions Relating to Education Council and 
Island Councils.--The Education Council and each island council shall 
meet at the call of the chairperson of the appropriate council, or upon 
the request of the majority of the members of the appropriate council, 
but in any event not less often than four times during each calendar 
year. The provisions of the Federal Advisory Committee Act shall not 
apply to the Education Council and each island council.
    ``(h) Compensation.--Members of the Education Council and each 
island council shall not receive any compensation for service on the 
Education Council and each island council, respectively.
    ``(i) <<NOTE: Deadline.>>  Report.--Not later than 4 years after the 
date of enactment of the No Child Left Behind Act of 2001, the Secretary 
shall prepare and submit to the Committee on Education and the Workforce

[[Page 115 STAT. 1939]]

of the House of Representatives and the Committee on Indian Affairs of 
the Senate a report that summarizes the annual reports of the Education 
Council, describes the allocation and use of funds under this part, and 
contains recommendations for changes in Federal, State, and local policy 
to advance the purposes of this part.

``SEC. 7205. <<NOTE: 20 USC 7515.>>  PROGRAM AUTHORIZED.

    ``(a) General Authority.--
            ``(1) Grants and contracts.--The Secretary is authorized to 
        make direct grants to, or enter into contracts with--
                    ``(A) Native Hawaiian educational organizations;
                    ``(B) Native Hawaiian community-based organizations;
                    ``(C) public and private nonprofit organizations, 
                agencies, and institutions with experience in developing 
                or operating Native Hawaiian programs or programs of 
                instruction in the Native Hawaiian language; and
                    ``(D) consortia of the organizations, agencies, and 
                institutions described in subparagraphs (A) through (C),
        to carry out programs that meet the purposes of this part.
            ``(2) Priorities.--In awarding grants or contracts to carry 
        out activities described in paragraph (3), the Secretary shall 
        give priority to entities proposing projects that are designed 
        to address--
                    ``(A) beginning reading and literacy among students 
                in kindergarten through third grade;
                    ``(B) the needs of at-risk children and youth;
                    ``(C) needs in fields or disciplines in which Native 
                Hawaiians are underemployed; and
                    ``(D) the use of the Hawaiian language in 
                instruction.
            ``(3) Authorized activities.--Activities provided through 
        programs carried out under this part may include--
                    ``(A) the development and maintenance of a statewide 
                Native Hawaiian early education and care system to 
                provide a continuum of services for Native Hawaiian 
                children from the prenatal period of the children 
                through age 5;
                    ``(B) the operation of family-based education 
                centers that provide such services as--
                          ``(i) programs for Native Hawaiian parents and 
                      their infants from the prenatal period of the 
                      infants through age 3;
                          ``(ii) preschool programs for Native 
                      Hawaiians; and
                          ``(iii) research on, and development and 
                      assessment of, family-based, early childhood, and 
                      preschool programs for Native Hawaiians;
                    ``(C) activities that enhance beginning reading and 
                literacy in either the Hawaiian or the English language 
                among Native Hawaiian students in kindergarten through 
                third grade and assistance in addressing the distinct 
                features of combined English and Hawaiian literacy for 
                Hawaiian speakers in fifth and sixth grade;
                    ``(D) activities to meet the special needs of Native 
                Hawaiian students with disabilities, including--
                          ``(i) the identification of such students and 
                      their needs;
                          ``(ii) the provision of support services to 
                      the families of those students; and

[[Page 115 STAT. 1940]]

                          ``(iii) other activities consistent with the 
                      requirements of the Individuals with Disabilities 
                      Education Act;
                    ``(E) activities that address the special needs of 
                Native Hawaiian students who are gifted and talented, 
                including--
                          ``(i) educational, psychological, and 
                      developmental activities designed to assist in the 
                      educational progress of those students; and
                          ``(ii) activities that involve the parents of 
                      those students in a manner designed to assist in 
                      the students' educational progress;
                    ``(F) the development of academic and vocational 
                curricula to address the needs of Native Hawaiian 
                children and adults, including curriculum materials in 
                the Hawaiian language and mathematics and science 
                curricula that incorporate Native Hawaiian tradition and 
                culture;
                    ``(G) professional development activities for 
                educators, including--
                          ``(i) the development of programs to prepare 
                      prospective teachers to address the unique needs 
                      of Native Hawaiian students within the context of 
                      Native Hawaiian culture, language, and traditions;
                          ``(ii) in-service programs to improve the 
                      ability of teachers who teach in schools with 
                      concentrations of Native Hawaiian students to meet 
                      those students' unique needs; and
                          ``(iii) the recruitment and preparation of 
                      Native Hawaiians, and other individuals who live 
                      in communities with a high concentration of Native 
                      Hawaiians, to become teachers;
                    ``(H) the operation of community-based learning 
                centers that address the needs of Native Hawaiian 
                families and communities through the coordination of 
                public and private programs and services, including--
                          ``(i) preschool programs;
                          ``(ii) after-school programs;
                          ``(iii) vocational and adult education 
                      programs; and
                          ``(iv) programs that recognize and support the 
                      unique cultural and educational needs of Native 
                      Hawaiian children, and incorporate appropriately 
                      qualified Native Hawaiian elders and seniors;
                    ``(I) activities, including program co-location, to 
                enable Native Hawaiians to enter and complete programs 
                of postsecondary education, including--
                          ``(i) provision of full or partial 
                      scholarships for undergraduate or graduate study 
                      that are awarded to students based on their 
                      academic promise and financial need, with a 
                      priority, at the graduate level, given to students 
                      entering professions in which Native Hawaiians are 
                      underrepresented;
                          ``(ii) family literacy services;
                          ``(iii) counseling and support services for 
                      students receiving scholarship assistance;
                          ``(iv) counseling and guidance for Native 
                      Hawaiian secondary students who have the potential 
                      to receive scholarships; and

[[Page 115 STAT. 1941]]

                          ``(v) faculty development activities designed 
                      to promote the matriculation of Native Hawaiian 
                      students;
                    ``(J) research and data collection activities to 
                determine the educational status and needs of Native 
                Hawaiian children and adults;
                    ``(K) other research and evaluation activities 
                related to programs carried out under this part; and
                    ``(L) other activities, consistent with the purposes 
                of this part, to meet the educational needs of Native 
                Hawaiian children and adults.
            ``(4) Special rule and conditions.--
                    ``(A) Institutions outside hawaii.--The Secretary 
                shall not establish a policy under this section that 
                prevents a Native Hawaiian student enrolled at a 2- or 
                4-year degree granting institution of higher education 
                outside of the State of Hawaii from receiving a 
                scholarship pursuant to paragraph (3)(I).
                    ``(B) Scholarship conditions.--The Secretary shall 
                establish conditions for receipt of a scholarship 
                awarded under paragraph (3)(I). The conditions shall 
                require that an individual seeking such a scholarship 
                enter into a contract to provide professional services, 
                either during the scholarship period or upon completion 
                of a program of postsecondary education, to the Native 
                Hawaiian community.

    ``(b) Administrative Costs.--Not more than 5 percent of funds 
provided to a recipient of a grant or contract under subsection (a) for 
any fiscal year may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section and section 7204 such sums as may be 
        necessary for fiscal year 2002 and each of the 5 succeeding 
        fiscal years.
            ``(2) Reservation.--Of the funds appropriated under this 
        subsection, the Secretary shall reserve $500,000 for fiscal year 
        2002 and each of the 5 succeeding fiscal years to make a direct 
        grant to the Education Council to carry out section 7204.
            ``(3) Availability.--Funds appropriated under this 
        subsection shall remain available until expended.

``SEC. 7206. <<NOTE: 20 USC 7516.>>  ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this part, 
and no contract may be entered into under this part, unless the entity 
seeking the grant or contract submits an application to the Secretary at 
such time, in such manner, and containing such information as the 
Secretary may determine to be necessary to carry out the provisions of 
this part.
    ``(b) Special Rule.--Each applicant for a grant or contract under 
this part shall submit the application for comment to the local 
educational agency serving students who will participate in the program 
to be carried out under the grant or contract, and include those 
comments, if any, with the application to the Secretary.

``SEC. 7207. <<NOTE: 20 USC 7517.>>  DEFINITIONS.

    ``In this part:

[[Page 115 STAT. 1942]]

            ``(1) Native hawaiian.--The term `Native Hawaiian' means any 
        individual who is--
                    ``(A) a citizen of the United States; and
                    ``(B) a descendant of the aboriginal people who, 
                prior to 1778, occupied and exercised sovereignty in the 
                area that now comprises the State of Hawaii, as 
                evidenced by--
                          ``(i) genealogical records;
                          ``(ii) Kupuna (elders) or Kamaaina (long-term 
                      community residents) verification; or
                          ``(iii) certified birth records.
            ``(2) Native hawaiian community-based organization.--The 
        term `Native Hawaiian community-based organization' means any 
        organization that is composed primarily of Native Hawaiians from 
        a specific community and that assists in the social, cultural, 
        and educational development of Native Hawaiians in that 
        community.
            ``(3) Native hawaiian educational organization.--The term 
        `Native Hawaiian educational organization' means a private 
        nonprofit organization that--
                    ``(A) serves the interests of Native Hawaiians;
                    ``(B) has Native Hawaiians in substantive and 
                policymaking positions within the organization;
                    ``(C) incorporates Native Hawaiian perspective, 
                values, language, culture, and traditions into the core 
                function of the organization;
                    ``(D) has demonstrated expertise in the education of 
                Native Hawaiian youth; and
                    ``(E) has demonstrated expertise in research and 
                program development.
            ``(4) Native hawaiian language.--The term `Native Hawaiian 
        language' means the single Native American language indigenous 
        to the original inhabitants of the State of Hawaii.
            ``(5) Native hawaiian organization.--The term `Native 
        Hawaiian organization' means a private nonprofit organization 
        that--
                    ``(A) serves the interests of Native Hawaiians;
                    ``(B) has Native Hawaiians in substantive and 
                policymaking positions within the organization; and
                    ``(C) is recognized by the Governor of Hawaii for 
                the purpose of planning, conducting, or administering 
                programs (or portions of programs) for the benefit of 
                Native Hawaiians.
            ``(6) Office of hawaiian affairs.--The term `Office of 
        Hawaiian Affairs' means the Office of Hawaiian Affairs 
        established by the Constitution of the State of Hawaii.

``PART <<NOTE: Alaska Native Educational Equity, Support, and Assistance 
Act.>>  C--ALASKA NATIVE EDUCATION

``SEC. 7301. <<NOTE: 20 USC 7541.>>  SHORT TITLE.

    ``This part may be cited as the `Alaska Native Educational Equity, 
Support, and Assistance Act'.

``SEC. 7302. <<NOTE: 20 USC 7542.>>  FINDINGS.

    ``Congress finds and declares the following:

[[Page 115 STAT. 1943]]

            ``(1) The attainment of educational success is critical to 
        the betterment of the conditions, long-term well-being, and 
        preservation of the culture of Alaska Natives.
            ``(2) It is the policy of the Federal Government to 
        encourage the maximum participation by Alaska Natives in the 
        planning and the management of Alaska Native education programs.
            ``(3) Alaska Native children enter and exit school with 
        serious educational handicaps.
            ``(4) The educational achievement of Alaska Native children 
        is far below national norms. Native performance on standardized 
        tests is low, Native student dropout rates are high, and Natives 
        are significantly underrepresented among holders of 
        baccalaureate degrees in the State of Alaska. As a result, 
        Native students are being denied their opportunity to become 
        full participants in society by grade school and high school 
        educations that are condemning an entire generation to an 
        underclass status and a life of limited choices.
            ``(5) The programs authorized in this part, combined with 
        expanded Head Start, infant learning, and early childhood 
        education programs, and parent education programs, are essential 
        if educational handicaps are to be overcome.
            ``(6) The sheer magnitude of the geographic barriers to be 
        overcome in delivering educational services in rural Alaska and 
        Alaska villages should be addressed through the development and 
        implementation of innovative, model programs in a variety of 
        areas.
            ``(7) Native children should be afforded the opportunity to 
        begin their formal education on a par with their non-Native 
        peers. The Federal Government should lend support to efforts 
        developed by and undertaken within the Alaska Native community 
        to improve educational opportunity for all students.

``SEC. 7303. <<NOTE: 20 USC 7543.>>  PURPOSES.

    ``The purposes of this part are as follows:
            ``(1) To recognize the unique educational needs of Alaska 
        Natives.
            ``(2) To authorize the development of supplemental 
        educational programs to benefit Alaska Natives.
            ``(3) To supplement existing programs and authorities in the 
        area of education to further the purposes of this part.
            ``(4) To provide direction and guidance to appropriate 
        Federal, State and local agencies to focus resources, including 
        resources made available under this part, on meeting the 
        educational needs of Alaska Natives.

``SEC. 7304. <<NOTE: 20 USC 7544.>>  PROGRAM AUTHORIZED.

    ``(a) General Authority.--
            ``(1) Grants and contracts.--The Secretary is authorized to 
        make grants to, or enter into contracts with, Alaska Native 
        organizations, educational entities with experience in 
        developing or operating Alaska Native programs or programs of 
        instruction conducted in Alaska Native languages, cultural and 
        community-based organizations with experience in developing or 
        operating programs to benefit Alaska Natives, and consortia of 
        organizations and entities described in this paragraph to carry 
        out programs that meet the purposes of this part.
            ``(2) Permissible activities.--Activities provided through 
        programs carried out under this part may include the following:

[[Page 115 STAT. 1944]]

                    ``(A) The development and implementation of plans, 
                methods, and strategies to improve the education of 
                Alaska Natives.
                    ``(B) The development of curricula and educational 
                programs that address the educational needs of Alaska 
                Native students, including the following:
                          ``(i) Curriculum materials that reflect the 
                      cultural diversity or the contributions of Alaska 
                      Natives.
                          ``(ii) Instructional programs that make use of 
                      Native Alaskan languages.
                          ``(iii) Networks that introduce successful 
                      programs, materials, and techniques to urban and 
                      rural schools.
                    ``(C) Professional development activities for 
                educators, including the following:
                          ``(i) Programs to prepare teachers to address 
                      the cultural diversity and unique needs of Alaska 
                      Native students.
                          ``(ii) In-service programs to improve the 
                      ability of teachers to meet the unique needs of 
                      Alaska Native students.
                          ``(iii) Recruitment and preparation of 
                      teachers who are Alaska Native, reside in 
                      communities with high concentrations of Alaska 
                      Native students, or are likely to succeed as 
                      teachers in isolated, rural communities and engage 
                      in cross-cultural instruction in Alaska.
                    ``(D) The development and operation of home 
                instruction programs for Alaska Native preschool 
                children, to ensure the active involvement of parents in 
                their children's education from the earliest ages.
                    ``(E) Family literacy services.
                    ``(F) The development and operation of student 
                enrichment programs in science and mathematics that--
                          ``(i) are designed to prepare Alaska Native 
                      students from rural areas, who are preparing to 
                      enter secondary school, to excel in science and 
                      math;
                          ``(ii) provide appropriate support services to 
                      the families of such students that are needed to 
                      enable such students to benefit from the programs; 
                      and
                          ``(iii) may include activities that recognize 
                      and support the unique cultural and educational 
                      needs of Alaska Native children, and incorporate 
                      appropriately qualified Alaska Native elders and 
                      seniors.
                    ``(G) Research and data collection activities to 
                determine the educational status and needs of Alaska 
                Native children and adults.
                    ``(H) Other research and evaluation activities 
                related to programs carried out under this part.
                    ``(I) Remedial and enrichment programs to assist 
                Alaska Native students in performing at a high level on 
                standardized tests.
                    ``(J) Education and training of Alaska Native 
                students enrolled in a degree program that will lead to 
                certification or licensing as teachers.
                    ``(K) Parenting education for parents and caregivers 
                of Alaska Native children to improve parenting and 
                caregiving skills (including skills relating to 
                discipline and

[[Page 115 STAT. 1945]]

                cognitive development), including parenting education 
                provided through in-home visitation of new mothers.
                    ``(L) Cultural education programs operated by the 
                Alaska Native Heritage Center and designed to share the 
                Alaska Native culture with students.
                    ``(M) A cultural exchange program operated by the 
                Alaska Humanities Forum and designed to share Alaska 
                Native culture with urban students in a rural setting, 
                which shall be known as the Rose Cultural Exchange 
                Program.
                    ``(N) Activities carried out through Even Start 
                programs carried out under subpart 3 of part B of title 
                I and Head Start programs carried out under the Head 
                Start Act, including the training of teachers for 
                programs described in this subparagraph.
                    ``(O) Other early learning and preschool programs.
                    ``(P) Dropout prevention programs such as the Cook 
                Inlet Tribal Council's Partners for Success program.
                    ``(Q) An Alaska Initiative for Community Engagement 
                program.
                    ``(R) Career preparation activities to enable Alaska 
                Native children and adults to prepare for meaningful 
                employment, including programs providing tech-prep, 
                mentoring, training, and apprenticeship activities.
                    ``(S) Provision of operational support and 
                purchasing of equipment, to develop regional vocational 
                schools in rural areas of Alaska, including boarding 
                schools, for Alaska Native students in grades 9 through 
                12, or at higher levels of education, to provide the 
                students with necessary resources to prepare for skilled 
                employment opportunities.
                    ``(T) Other activities, consistent with the purposes 
                of this part, to meet the educational needs of Alaska 
                Native children and adults.
            ``(3) Home instruction programs.--Home instruction programs 
        for Alaska Native preschool children carried out under paragraph 
        (2)(D) may include the following:
                    ``(A) Programs for parents and their infants, from 
                the prenatal period of the infant through age 3.
                    ``(B) Preschool programs.
                    ``(C) Training, education, and support for parents 
                in such areas as reading readiness, observation, story 
                telling, and critical thinking.

    ``(b) Limitation on Administrative Costs.--Not more than 5 percent 
of funds provided to a grantee under this section for any fiscal year 
may be used for administrative purposes.
    ``(c) Priorities.--In awarding grants or contracts to carry out 
activities described in subsection (a)(2), except for activities listed 
in subsection (d)(2), the Secretary shall give priority to applications 
from Alaska Native regional nonprofit organizations, or consortia that 
include at least one Alaska Native regional nonprofit organization.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section such sums as may be necessary for 
        fiscal year 2002 and each of the 5 succeeding fiscal years.

[[Page 115 STAT. 1946]]

            ``(2) Availability of funds.--Of the funds appropriated and 
        made available under this section for a fiscal year, the 
        Secretary shall make available--
                    ``(A) not less than $1,000,000 to support activities 
                described in subsection (a)(2)(K);
                    ``(B) not less than $1,000,000 to support activities 
                described in subsection (a)(2)(L);
                    ``(C) not less than $1,000,000 to support activities 
                described in subsection (a)(2)(M);
                    ``(D) not less than $2,000,000 to support activities 
                described in subsection (a)(2)(P); and
                    ``(E) not less than $2,000,000 to support activities 
                described in subsection (a)(2)(Q).

``SEC. 7305. <<NOTE: 20 USC 7545.>>  ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this part, 
and no contract may be entered into under this part, unless the entity 
seeking the grant or contract submits an application to the Secretary in 
such form, in such manner, and containing such information as the 
Secretary may determine necessary to carry out the provisions of this 
part.
    ``(b) Applications.--A State educational agency or local educational 
agency may apply for an award under this part only as part of a 
consortium involving an Alaska Native organization. The consortium may 
include other eligible applicants.
    ``(c) Consultation Required.--Each applicant for an award under this 
part shall provide for ongoing advice from and consultation with 
representatives of the Alaska Native community.
    ``(d) Local Educational Agency Coordination.--Each applicant for an 
award under this part shall inform each local educational agency serving 
students who would participate in the program to be carried out under 
the grant or contract about the application.

``SEC. 7306. <<NOTE: 20 USC 7546.>>  DEFINITIONS.

    ``In this part:
            ``(1) Alaska native.--The term `Alaska Native' has the same 
        meaning as the term `Native' has in section 3(b) of the Alaska 
        Native Claims Settlement Act.
            ``(2) Alaska native organization.--The term `Alaska Native 
        organization' means a federally recognized tribe, consortium of 
        tribes, regional nonprofit Native association, and another 
        organization that--
                    ``(A) has or commits to acquire expertise in the 
                education of Alaska Natives; and
                    ``(B) has Alaska Natives in substantive and 
                policymaking positions within the organization.''.

SEC. 702. CONFORMING AMENDMENTS.

    (a) Higher Education Act of 1965.--Section 317(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1059d(b)) is amended--
            (1) in paragraph (1), by striking ``section 9308'' and 
        inserting ``section 7306''; and
            (2) in paragraph (3), by striking ``section 9212'' and 
        inserting ``section 7207''.

    (b) Public Law <<NOTE: 20 USC 2326.>>  88-210.--Section 116 of 
Public Law 88-210 (as added by section 1 of Public Law 105-332 (112 
Stat. 3076))

[[Page 115 STAT. 1947]]

is amended by striking ``section 9212 of the Native Hawaiian Education 
Act (20 U.S.C. 7912)'' and inserting ``section 7207 of the Native 
Hawaiian Education Act''.

    (c) Carl D. Perkins Vocational and Technical Education Act of 
1998.--Section 116(a)(5) of the Carl D. Perkins Vocational and Technical 
Education Act of 1998 (20 U.S.C. 2326(a)(5)) is amended by striking 
``section 9212'' and all that follows and inserting ``section 7207 of 
the Native Hawaiian Education Act''.
    (d) Museum and Library Services Act.--Section 261 of the Museum and 
Library Services Act (20 U.S.C. 9161) is amended by striking ``section 
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and 
inserting ``section 7207 of the Native Hawaiian Education Act''.
    (e) Act of April 16, 1934.--Section 5 of the Act of April 16, 1934 
(commonly known as the ``Johnson-O'Malley Act'') (88 Stat. 2213; 25 
U.S.C. 456) is amended by striking ``section 9104(c)(4)'' and inserting 
``section 7114(c)(4)''.
    (f) Native American Languages Act.--Section 103 of the Native 
American Languages Act (25 U.S.C. 2902) is amended--
            (1) in paragraph (2), by striking ``section 9161(4) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7881(4))'' and inserting ``section 7151(3) of the Elementary and 
        Secondary Education Act of 1965''; and
            (2) in paragraph (3), by striking ``section 9212(1) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7912(1))'' and inserting ``section 7207 of the Elementary and 
        Secondary Education Act of 1965''.

    (g) Workforce Investment Act of 1998.--Section 166(b)(3) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2911(b)(3)) is amended by 
striking ``paragraphs (1) and (3), respectively, of section 9212 of the 
Native Hawaiian Education Act (20 U.S.C. 7912)'' and inserting ``section 
7207 of the Native Hawaiian Education Act''.
    (h) Assets for Independence Act.--Section 404(11) of the Assets for 
Independence Act (42 U.S.C. 604 note) is amended by striking ``section 
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and 
inserting ``section 7207 of the Native Hawaiian Education Act''.

SEC. 703. <<NOTE: 20 USC 7401 note.>>  SAVINGS PROVISIONS.

    Funds appropriated for parts A, B, and C of title IX of the 
Elementary and Secondary Education Act of 1965 (as in effect on the day 
before the date of enactment of this Act) shall be available for use 
under parts A, B, and C, respectively, of title VII of such Act, as 
added by this section.

                     TITLE VIII--IMPACT AID PROGRAM

SEC. 801. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.

    (a) Foundation Payments for Pre-1995 Recipients.--Section 8002(h)(1) 
(20 U.S.C. 7702(h)(1)) is amended--
            (1) in subparagraph (A), by striking ``and was eligible to 
        receive a payment under section 2 of the Act of September 30, 
        1950'' and inserting ``and that filed, or has been determined 
        pursuant to statute to have filed a timely application, and

[[Page 115 STAT. 1948]]

        met, or has been determined pursuant to statute to meet, the 
        eligibility requirements of section 2(a)(1)(C) of the Act of 
        September 30, 1950''; and
            (2) in subparagraph (B), by striking ``(or if the local 
        educational agency was not eligible to receive a payment under 
        such section 2 for fiscal year 1994'' and inserting ``(or if the 
        local educational agency did not meet, or has not been 
        determined pursuant to statute to meet, the eligibility 
        requirements of section 2(a)(1)(C) of the Act of September 30, 
        1950 for fiscal year 1994''.

    (b) Payments for 1995 Recipients.--Section 8002(h)(2) (20 U.S.C. 
7702(h)(2)) is amended--
            (1) in subparagraph (A), by adding at the end before the 
        period ``, or whose application under this section for fiscal 
        year 1995 was determined pursuant to statute to be timely filed 
        for purposes of payments for subsequent fiscal years''; and
            (2) in subparagraph (B)(ii), by striking ``for each local 
        educational agency that received a payment under this section 
        for fiscal year 1995'' and inserting ``for each local 
        educational agency described in subparagraph (A)''.

    (c) Remaining Funds.--Section 8002(h)(4)(B) (20 U.S.C. 
7702(h)(4)(B)) is amended--
            (1) by striking ``(in the same manner as percentage shares 
        are determined for local educational agencies under paragraph 
        (2)(B)(ii))'' and inserting ``(by dividing the maximum amount 
        that the agency is eligible to receive under subsection (b) by 
        the total of the maximum amounts for all such agencies)''; and
            (2) by striking ``, except that for the purpose of 
        calculating a local educational agency's assessed value of the 
        Federal property'' and inserting ``, except that, for the 
        purpose of calculating a local educational agency's maximum 
        amount under subsection (b)''.

    (d) Additional Assistance for Certain Local Educational Agencies 
Impacted by Federal Property Acquisition.--Section 8002 (20 U.S.C. 7702) 
is amended by striking subsection (j).
    (e) Minimum Payment With Respect to Loss of Eligibility of Certain 
Local Educational Agencies.--Section 8002 (20 U.S.C. 7702) is amended by 
adding at the end the following:
    ``(n) Loss of Eligibility.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, the Secretary shall make a minimum payment to a 
        local educational agency described in paragraph (2), for the 
        first fiscal year that the agency loses eligibility for 
        assistance under this section as a result of property located 
        within the school district served by the agency failing to meet 
        the definition of Federal property under section 
        8013(5)(C)(iii), in an amount equal to 90 percent of the amount 
        received by the agency under this section for the preceding 
        year.
            ``(2) Local educational agency described.--A local 
        educational agency described in this paragraph is an agency 
        that--
                    ``(A) was eligible for, and received, a payment 
                under this section for fiscal year 2002; and
                    ``(B) beginning in fiscal year 2003 or a subsequent 
                fiscal year, is no longer eligible for payments under 
                this section as provided for in subsection (a)(1)(C) as 
                a result

[[Page 115 STAT. 1949]]

                of the transfer of the Federal property involved to a 
                non-Federal entity.''.

    (f) Application for Payment.--Notwithstanding any other provision of 
law, the Secretary shall treat as timely filed an application under 
section 8002 (20 U.S.C. 7702) from Academy School District 20, Colorado, 
for a payment for fiscal year 1999, and shall process that application 
from funds appropriated for that section for fiscal year 2001.

SEC. 802. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    (a) Eligibility for Certain Heavily Impacted Local Educational 
Agencies.--
            (1) In general.--Section 8003(b)(2)(C) (20 U.S.C. 
        7703(b)(2)(C)) is amended--
                    (A) in clauses (i) and (ii), by inserting after 
                ``Federal military installation'' each place it appears 
                the following: ``(or if the agency is a qualified local 
                educational agency as described in clause (iv))''; and
                    (B) by adding at the end the following:
                          ``(iv) Qualified local educational agency.--A 
                      qualified local educational agency described in 
                      this clause is an agency that meets the following 
                      requirements:
                                    ``(I) The boundaries of the agency 
                                are the same as island property 
                                designated by the Secretary of the 
                                Interior to be property that is held in 
                                trust by the Federal Government.
                                    ``(II) The agency has no taxing 
                                authority.
                                    ``(III) The agency received a 
                                payment under paragraph (1) for fiscal 
                                year 2001.''.
            (2) <<NOTE: 20 USC 7703 note.>>  Effective date.--The 
        Secretary shall consider an application for a payment under 
        section 8003(b)(2) for fiscal year 2002 from a qualified local 
        educational agency described in section 8003(b)(2)(C)(iv), as 
        added by paragraph (1), as meeting the requirements of section 
        8003(b)(2)(C)(iii), and shall provide a payment under section 
        8003(b)(2) for fiscal year 2002, if the agency submits to the 
        Secretary an application for payment under such section not 
        later than 30 days after the date of enactment of this Act.

    (b) Applications for Payment.--
            (1) Warner public schools, muskogee county, oklahoma.--
        Notwithstanding any other provision of law, the Secretary of 
        Education shall treat as timely filed an application under 
        section 8003 (20 U.S.C. 7703) from Warner Public Schools, 
        Muskogee County, Oklahoma, for a payment for fiscal year 2002, 
        and shall process that application for payment, if the Secretary 
        has received the fiscal year 2002 application not later than 30 
        days after the date of enactment of this Act.
            (2) Pine point school, school district 25, minnesota.--
        Notwithstanding any other provision of law, the Secretary shall 
        treat as timely filed an application under section 8003 (20 
        U.S.C. 7703) from Pine Point School, School District 25, 
        Minnesota, for a payment for fiscal year 2002, and shall process 
        that application for payment, if the Secretary has received

[[Page 115 STAT. 1950]]

        the fiscal year 2002 application not later than 30 days after 
        the date of enactment of this Act.

SEC. 803. CONSTRUCTION.

    Section 8007(b) (20 U.S.C. 7707(b)) is amended to read as follows:
    ``(b) School Facility Emergency and Modernization Grants 
Authorized.--
            ``(1) In general.--From 60 percent of the amount 
        appropriated for each fiscal year under section 8014(e), the 
        Secretary--
                    ``(A) shall award emergency grants in accordance 
                with this subsection to eligible local educational 
                agencies to enable the agencies to carry out emergency 
                repairs of school facilities; and
                    ``(B) shall award modernization grants in accordance 
                with this subsection to eligible local educational 
                agencies to enable the agencies to carry out the 
                modernization of school facilities.
            ``(2) Priority.--In approving applications from local 
        educational agencies for emergency grants and modernization 
        grants under this subsection, the Secretary shall give priority 
        to applications in accordance with the following:
                    ``(A) The Secretary shall first give priority to 
                applications for emergency grants from local educational 
                agencies that meet the requirements of paragraph (3)(A) 
                and, among such applications for emergency grants, shall 
                give priority to those applications of local educational 
                agencies based on the severity of the emergency, as 
                determined by the Secretary.
                    ``(B) The Secretary shall next give priority to 
                applications for emergency grants from local educational 
                agencies that meet the requirements of subparagraph (C) 
                or (D) of paragraph (3) and, among such applications for 
                emergency grants, shall give priority to those 
                applications of local educational agencies based on the 
                severity of the emergency, as determined by the 
                Secretary.
                    ``(C) The Secretary shall next give priority to 
                applications for modernization grants from local 
                educational agencies that meet the requirements of 
                paragraph (3)(B) and, among such applications for 
                modernization grants, shall give priority to those 
                applications of local educational agencies based on the 
                severity of the need for modernization, as determined by 
                the Secretary.
                    ``(D) The Secretary shall next give priority to 
                applications for modernization grants from local 
                educational agencies that meet the requirements of 
                subparagraph (C) or (D) of paragraph (3) and, among such 
                applications for modernization grants, shall give 
                priority to those applications of local educational 
                agencies based on the severity of the need for 
                modernization, as determined by the Secretary.
            ``(3) Eligibility requirements.--
                    ``(A) Emergency grants.--A local educational agency 
                is eligible to receive an emergency grant under 
                paragraph (2)(A) if--

[[Page 115 STAT. 1951]]

                          ``(i) the agency (or in the case of a local 
                      educational agency that does not have the 
                      authority to tax or issue bonds, the agency's 
                      fiscal agent)--
                                    ``(I) has no practical capacity to 
                                issue bonds;
                                    ``(II) has minimal capacity to issue 
                                bonds and is at not less than 75 percent 
                                of the agency's limit of bonded 
                                indebtedness; or
                                    ``(III) does not meet the 
                                requirements of subclauses (I) and (II) 
                                but is eligible to receive funds under 
                                section 8003(b)(2) for the fiscal year; 
                                and
                          ``(ii) the agency is eligible to receive 
                      assistance under subsection (a) for the fiscal 
                      year and has a school facility emergency, as 
                      determined by the Secretary, that poses a health 
                      or safety hazard to the students and school 
                      personnel assigned to the school facility.
                    ``(B) Modernization grants.--A local educational 
                agency is eligible to receive a modernization grant 
                under paragraph (2)(C) if--
                          ``(i) the agency is eligible to receive 
                      assistance under this title for the fiscal year;
                          ``(ii) the agency (or in the case of a local 
                      educational agency that does not have the 
                      authority to tax or issue bonds, the agency's 
                      fiscal agent) meets the requirements of subclause 
                      (I), (II), or (III) of subparagraph (A)(i); and
                          ``(iii) the agency has facility needs 
                      resulting from the presence of the Federal 
                      Government, such as the enrollment of federally 
                      connected children, the presence of tax-exempt 
                      Federal property, or an increase in enrollment due 
                      to the expansion of Federal activities, housing 
                      privatization, or the acquisition of Federal 
                      property.
                    ``(C) Additional eligibility for emergency and 
                modernization grants.--(i) A local educational agency is 
                eligible to receive an emergency grant or a 
                modernization grant under subparagraph (B) or (D) of 
                paragraph (2), respectively, if the agency meets the 
                following requirements:
                          ``(I) The agency receives a basic support 
                      payment under section 8003(b) for the fiscal year 
                      and the agency meets at least one of the following 
                      requirements:
                                    ``(aa) The number of children 
                                determined under section 8003(a)(1)(C) 
                                for the agency for the preceding school 
                                year constituted at least 40 percent of 
                                the total student enrollment in the 
                                schools of the agency during the 
                                preceding school year.
                                    ``(bb) The number of children 
                                determined under subparagraphs (B) and 
                                (D)(i) of section 8003(a)(1) for the 
                                agency for the preceding school year 
                                constituted at least 40 percent of the 
                                total student enrollment in the schools 
                                of the agency during the preceding 
                                school year.
                          ``(II) The agency (or in the case of a local 
                      educational agency that does not have the 
                      authority to tax or issue bonds, the agency's 
                      fiscal agent) is at

[[Page 115 STAT. 1952]]

                      not less than 75 percent of the agency's limit of 
                      bonded indebtedness.
                          ``(III) The agency has an assessed value of 
                      real property per student that may be taxed for 
                      school purposes that is less than the average of 
                      the assessed value of real property per student 
                      that may be taxed for school purposes in the State 
                      in which the local educational agency is located.
                    ``(ii) A local educational agency is also eligible 
                to receive a modernization grant under this subparagraph 
                if the agency is eligible to receive assistance under 
                section 8002 for the fiscal year and meets the 
                requirements of subclauses (II) and (III) of clause (i).
                    ``(D) Special rule.--
                          ``(i) In general.--Any school described in 
                      clause (ii) that desires to receive an emergency 
                      grant or a modernization grant under subparagraph 
                      (B) or (D) of paragraph (2), respectively, shall, 
                      except as provided in the following sentence, 
                      submit an application in accordance with paragraph 
                      (6), and shall otherwise be treated as a local 
                      educational agency for the purpose of this 
                      subsection. The school shall submit an application 
                      for the grant to the local educational agency of 
                      such school and the agency shall submit the 
                      application on behalf of the school to the 
                      Secretary.
                          ``(ii) School described.--A school described 
                      in this clause is a school that meets the 
                      following requirements:
                                    ``(I) The school is located within 
                                the geographic boundaries of a local 
                                educational agency that does not meet 
                                the applicable eligibility requirements 
                                under subparagraph (A), (B), or (C) for 
                                a grant under this subsection.
                                    ``(II) The school meets at least one 
                                of the following requirements:
                                            ``(aa) The number of 
                                        children determined under 
                                        section 8003(a)(1)(C) for the 
                                        school for the preceding school 
                                        year constituted at least 40 
                                        percent of the total student 
                                        enrollment in the school during 
                                        the preceding school year.
                                            ``(bb) The number of 
                                        children determined under 
                                        subparagraphs (B) and (D)(i) of 
                                        section 8003(a)(1) for the 
                                        school for the preceding school 
                                        year constituted at least 40 
                                        percent of the total student 
                                        enrollment in the school during 
                                        the preceding school year.
                                    ``(III) The school is located within 
                                the geographic boundaries of a local 
                                educational agency that meets the 
                                requirements of subclauses (II) and 
                                (III) of subparagraph (C)(i).
                    ``(E) Rule of construction.--For purposes of 
                subparagraph (A)(i), a local educational agency--
                          ``(i) has no practical capacity to issue bonds 
                      if the total assessed value of real property that 
                      may be taxed for school purposes is less than 
                      $25,000,000; and

[[Page 115 STAT. 1953]]

                          ``(ii) has minimal capacity to issue bonds if 
                      the total assessed value of real property that may 
                      be taxed for school purposes is at least 
                      $25,000,000 but not more than $50,000,000.
            ``(4) Award criteria.--In awarding emergency grants and 
        modernization grants under this subsection, the Secretary shall 
        consider the following factors:
                    ``(A) The ability of the local educational agency to 
                respond to the emergency, or to pay for the 
                modernization project, as the case may be, as measured 
                by--
                          ``(i) the agency's level of bonded 
                      indebtedness;
                          ``(ii) the assessed value of real property per 
                      student that may be taxed for school purposes 
                      compared to the average of the assessed value of 
                      real property per student that may be taxed for 
                      school purposes in the State in which the agency 
                      is located;
                          ``(iii) the agency's total tax rate for school 
                      purposes (or, if applicable, for capital 
                      expenditures) compared to the average total tax 
                      rate for school purposes (or the average capital 
                      expenditure tax rate, if applicable) in the State 
                      in which the agency is located; and
                          ``(iv) funds that are available to the agency, 
                      from any other source, including subsection (a), 
                      that may be used for capital expenditures.
                    ``(B) The percentage of property in the agency that 
                is nontaxable due to the presence of the Federal 
                Government.
                    ``(C) The number and percentages of children 
                described in subparagraphs (A), (B), (C), and (D) of 
                section 8003(a)(1) served in the school facility with 
                the emergency or served in the school facility proposed 
                for modernization, as the case may be.
                    ``(D) In the case of an emergency grant, the 
                severity of the emergency, as measured by the threat 
                that the condition of the school facility poses to the 
                health, safety, and well-being of students.
                    ``(E) In the case of a modernization grant--
                          ``(i) the severity of the need for 
                      modernization, as measured by such factors as--
                                    ``(I) overcrowding, as evidenced by 
                                the use of portable classrooms, or the 
                                potential for future overcrowding 
                                because of increased enrollment; or
                                    ``(II) the agency's inability to 
                                utilize technology or offer a curriculum 
                                in accordance with contemporary State 
                                standards due to the physical 
                                limitations of the current school 
                                facility; and
                          ``(ii) the age of the school facility proposed 
                      for modernization.
            ``(5) Other award provisions.--
                    ``(A) General provisions.--
                          ``(i) Limitations on amount of funds.--
                                    ``(I) In general.--The amount of 
                                funds provided under an emergency grant 
                                or a modernization grant awarded under 
                                this subsection to a local educational 
                                agency that meets the requirements of 
                                subclause (II) or (III) of paragraph 
                                (3)(A)(i) for purposes of eligibility 
                                under subparagraph (A) or

[[Page 115 STAT. 1954]]

                                (B) of paragraph (3) or that meets the 
                                requirements of clause (i) or (ii) of 
                                paragraph (3)(C) for purposes of 
                                eligibility under such paragraph (3)(C), 
                                or to a school that is eligible under 
                                paragraph (3)(D)--
                                            ``(aa) shall not exceed 50 
                                        percent of the total cost of the 
                                        project to be assisted under 
                                        this subsection; and
                                            ``(bb) shall not exceed 
                                        $4,000,000 during any 4-year 
                                        period.
                                    ``(II) In-kind contributions.--A 
                                local educational agency may use in-kind 
                                contributions to meet the matching 
                                requirement of subclause (I)(aa).
                          ``(ii) Prohibitions on use of funds.--A local 
                      educational agency may not use funds provided 
                      under an emergency grant or modernization grant 
                      awarded under this subsection for--
                                    ``(I) a project for a school 
                                facility for which the agency does not 
                                have full title or other interest;
                                    ``(II) stadiums or other school 
                                facilities that are primarily used for 
                                athletic contests, exhibitions, or other 
                                events for which admission is charged to 
                                the general public; or
                                    ``(III) the acquisition of real 
                                property.
                          ``(iii) Supplement, not supplant.--A local 
                      educational agency shall use funds provided under 
                      an emergency grant or modernization grant awarded 
                      under this subsection only to supplement the 
                      amount of funds that would, in the absence of the 
                      Federal funds provided under the grant, be made 
                      available from non-Federal sources to carry out 
                      emergency repairs of school facilities or to carry 
                      out the modernization of school facilities, as the 
                      case may be, and not to supplant such funds.
                          ``(iv) Maintenance costs.--Nothing in this 
                      subsection shall be construed to authorize the 
                      payment of maintenance costs in connection with 
                      any school facility modernized in whole or in part 
                      with Federal funds provided under this subsection.
                          ``(v) Environmental safeguards.--All projects 
                      carried out with Federal funds provided under this 
                      subsection shall comply with all relevant Federal, 
                      State, and local environmental laws and 
                      regulations.
                          ``(vi) Carry-over of certain applications.--A 
                      local educational agency that applies for an 
                      emergency grant or a modernization grant under 
                      this subsection for a fiscal year and does not 
                      receive the grant for the fiscal year shall have 
                      the application for the grant considered for the 
                      following fiscal year, subject to the priority 
                      requirements of paragraph (2) and the award 
                      criteria requirements of paragraph (4).
                    ``(B) Emergency grants; prohibition on use of 
                funds.--A local educational agency that is awarded an 
                emergency grant under this subsection may not use 
                amounts under the grant for the complete or partial 
                replacement of an existing school facility unless such

[[Page 115 STAT. 1955]]

                replacement is less expensive or more cost-effective 
                than correcting the identified emergency.
            ``(6) Application.--A local educational agency that desires 
        to receive an emergency grant or a modernization grant under 
        this subsection shall submit an application to the Secretary at 
        such time, in such manner, and accompanied by such information 
        as the Secretary may require. Each application shall contain the 
        following:
                    ``(A) A description of how the local educational 
                agency meets the award criteria under paragraph (4), 
                including the information described in clauses (i) 
                through (iv) of paragraph (4)(A) and subparagraphs (B) 
                and (C) of paragraph (4).
                    ``(B) In the case of an application for an emergency 
                grant--
                          ``(i) a description of the school facility 
                      deficiency that poses a health or safety hazard to 
                      the occupants of the facility and a description of 
                      how the deficiency will be repaired; and
                          ``(ii) a signed statement from an appropriate 
                      local official certifying that a deficiency in the 
                      school facility threatens the health or safety of 
                      the occupants of the facility or that prevents the 
                      use of all or a portion of the building.
                    ``(C) In the case of an application for a 
                modernization grant--
                          ``(i) an explanation of the need for the 
                      school facility modernization project;
                          ``(ii) the date on which original construction 
                      of the facility to be modernized was completed;
                          ``(iii) a listing of the school facilities to 
                      be modernized, including the number and percentage 
                      of children determined under section 8003(a)(1) in 
                      average daily attendance in each school facility; 
                      and
                          ``(iv) a description of the ownership of the 
                      property on which the current school facility is 
                      located or on which the planned school facility 
                      will be located.
                    ``(D) A description of the project for which a grant 
                under this subsection will be used, including a cost 
                estimate for the project.
                    ``(E) A description of the interest in, or authority 
                over, the school facility involved, such as an ownership 
                interest or a lease arrangement.
                    ``(F) Such other information and assurances as the 
                Secretary may reasonably require.
            ``(7) Report.--
                    ``(A) <<NOTE: Deadline.>>  In general.--Not later 
                than January 1 of each year, the Secretary shall prepare 
                and submit to the appropriate congressional committees a 
                report that contains a justification for each grant 
                awarded under this subsection for the prior fiscal year.
                    ``(B) Definition.--In this paragraph, the term 
                `appropriate congressional committees' means--
                          ``(i) the Committee on Appropriations and the 
                      Committee on Education and the Workforce of the 
                      House of Representatives; and

[[Page 115 STAT. 1956]]

                          ``(ii) the Committee on Appropriations and the 
                      Committee on Health, Education, Labor, and 
                      Pensions of the Senate.''.

SEC. 804. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.

    Section 8009(b)(1) (20 U.S.C. 7709(b)(1)) is amended by inserting 
after ``section 8003(a)(2)(B)'' the following: ``and, with respect to a 
local educational agency that receives a payment under section 
8003(b)(2), the amount in excess of the amount that the agency would 
receive if the agency were deemed to be an agency eligible to receive a 
payment under section 8003(b)(1) and not section 8003(b)(2)''.

SEC. 805. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 8014 (20 U.S.C. 7714) is amended in 
subsections (a), (b), (c), and (f) by striking ``three succeeding fiscal 
years'' each place it appears and inserting ``seven succeeding fiscal 
years''.
    (b) Construction.--Section 8014(e) (20 U.S.C. 7714(e)) is amended by 
striking ``for each of the three succeeding fiscal years'' and inserting 
``for fiscal year 2001, $150,000,000 for fiscal year 2002, and such sums 
as may be necessary for each of the five succeeding fiscal years''.
    (c) Additional Assistance for Certain Local Educational Agencies 
Impacted by Federal Property Acquisition.--Section 8014 (20 U.S.C. 7714) 
is amended by striking subsection (g).

                      TITLE IX--GENERAL PROVISIONS

SEC. 901. GENERAL PROVISIONS.

    Title IX (20 U.S.C. 7801 et seq.) is amended to read as follows:

                     ``TITLE IX--GENERAL PROVISIONS

                          ``PART A--DEFINITIONS

``SEC. 9101. <<NOTE: 20 USC 7801.>>  DEFINITIONS.

    ``Except as otherwise provided, in this Act:
            ``(1) Average daily attendance.--
                    ``(A) In general.--Except as provided otherwise by 
                State law or this paragraph, the term `average daily 
                attendance' means--
                          ``(i) the aggregate number of days of 
                      attendance of all students during a school year; 
                      divided by
                          ``(ii) the number of days school is in session 
                      during that year.
                    ``(B) Conversion.--The Secretary shall permit the 
                conversion of average daily membership (or other similar 
                data) to average daily attendance for local educational 
                agencies in States that provide State aid to local 
                educational agencies on the basis of average daily 
                membership (or other similar data).
                    ``(C) Special rule.--If the local educational agency 
                in which a child resides makes a tuition or other 
                payment for the free public education of the child in a 
                school located

[[Page 115 STAT. 1957]]

                in another school district, the Secretary shall, for the 
                purpose of this Act--
                          ``(i) consider the child to be in attendance 
                      at a school of the agency making the payment; and
                          ``(ii) not consider the child to be in 
                      attendance at a school of the agency receiving the 
                      payment.
                    ``(D) Children with disabilities.--If a local 
                educational agency makes a tuition payment to a private 
                school or to a public school of another local 
                educational agency for a child with a disability, as 
                defined in section 602 of the Individuals with 
                Disabilities Education Act, the Secretary shall, for the 
                purpose of this Act, consider the child to be in 
                attendance at a school of the agency making the payment.
            ``(2) Average per-pupil expenditure.--The term `average per-
        pupil expenditure' means, in the case of a State or of the 
        United States--
                    ``(A) without regard to the source of funds--
                          ``(i) the aggregate current expenditures, 
                      during the third fiscal year preceding the fiscal 
                      year for which the determination is made (or, if 
                      satisfactory data for that year are not available, 
                      during the most recent preceding fiscal year for 
                      which satisfactory data are available) of all 
                      local educational agencies in the State or, in the 
                      case of the United States, for all States (which, 
                      for the purpose of this paragraph, means the 50 
                      States and the District of Columbia); plus
                          ``(ii) any direct current expenditures by the 
                      State for the operation of those agencies; divided 
                      by
                    ``(B) the aggregate number of children in average 
                daily attendance to whom those agencies provided free 
                public education during that preceding year.
            ``(3) Beginning teacher.--The term `beginning teacher' means 
        a teacher in a public school who has been teaching less than a 
        total of three complete school years.
            ``(4) Child.--The term `child' means any person within the 
        age limits for which the State provides free public education.
            ``(5) Child with a disability.--The term `child with a 
        disability' has the same meaning given that term in section 602 
        of the Individuals with Disabilities Education Act.
            ``(6) Community-based organization.--The term `community-
        based organization' means a public or private nonprofit 
        organization of demonstrated effectiveness that--
                    ``(A) is representative of a community or 
                significant segments of a community; and
                    ``(B) provides educational or related services to 
                individuals in the community.
            ``(7) Consolidated local application.--The term 
        `consolidated local application' means an application submitted 
        by a local educational agency pursuant to section 9305.
            ``(8) Consolidated local plan.--The term `consolidated local 
        plan' means a plan submitted by a local educational agency 
        pursuant to section 9305.
            ``(9) Consolidated state application.--The term 
        `consolidated State application' means an application submitted 
        by a State educational agency pursuant to section 9302.

[[Page 115 STAT. 1958]]

            ``(10) Consolidated state plan.--The term `consolidated 
        State plan' means a plan submitted by a State educational agency 
        pursuant to section 9302.
            ``(11) Core academic subjects.--The term `core academic 
        subjects' means English, reading or language arts, mathematics, 
        science, foreign languages, civics and government, economics, 
        arts, history, and geography.
            ``(12) County.--The term `county' means one of the divisions 
        of a State used by the Secretary of Commerce in compiling and 
        reporting data regarding counties.
            ``(13) Covered program.--The term `covered program' means 
        each of the programs authorized by--
                    ``(A) part A of title I;
                    ``(B) subpart 3 of part B of title I;
                    ``(C) part C of title I;
                    ``(D) part D of title I;
                    ``(E) part F of title I;
                    ``(F) part A of title II;
                    ``(G) part D of title II;
                    ``(H) part A of title III;
                    ``(I) part A of title IV;
                    ``(J) part B of title IV;
                    ``(K) part A of title V; and
                    ``(L) subpart 2 of part B of title VI.
            ``(14) Current expenditures.--The term `current 
        expenditures' means expenditures for free public education--
                    ``(A) including expenditures for administration, 
                instruction, attendance and health services, pupil 
                transportation services, operation and maintenance of 
                plant, fixed charges, and net expenditures to cover 
                deficits for food services and student body activities; 
                but
                    ``(B) not including expenditures for community 
                services, capital outlay, and debt service, or any 
                expenditures made from funds received under title I and 
                part A of title V.
            ``(15) Department.--The term `Department' means the 
        Department of Education.
            ``(16) Distance learning.--The term `distance learning' 
        means the transmission of educational or instructional 
        programming to geographically dispersed individuals and groups 
        via telecommunications.
            ``(17) Educational service agency.--The term `educational 
        service agency' means a regional public multiservice agency 
        authorized by State statute to develop, manage, and provide 
        services or programs to local educational agencies.
            ``(18) Elementary school.--The term `elementary school' 
        means a nonprofit institutional day or residential school, 
        including a public elementary charter school, that provides 
        elementary education, as determined under State law.
            ``(19) Exemplary teacher.--The term `exemplary teacher' 
        means a teacher who--
                    ``(A) is a highly qualified teacher such as a master 
                teacher;
                    ``(B) has been teaching for at least 5 years in a 
                public or private school or institution of higher 
                education;
                    ``(C) is recommended to be an exemplary teacher by 
                administrators and other teachers who are knowledgeable 
                about the individual's performance;

[[Page 115 STAT. 1959]]

                    ``(D) is currently teaching and based in a public 
                school; and
                    ``(E) assists other teachers in improving 
                instructional strategies, improves the skills of other 
                teachers, performs teacher mentoring, develops 
                curricula, and offers other professional development.
            ``(20) Family literacy services.--The term `family literacy 
        services' means services provided to participants on a voluntary 
        basis that are of sufficient intensity in terms of hours, and of 
        sufficient duration, to make sustainable changes in a family, 
        and that integrate all of the following activities:
                    ``(A) Interactive literacy activities between 
                parents and their children.
                    ``(B) Training for parents regarding how to be the 
                primary teacher for their children and full partners in 
                the education of their children.
                    ``(C) Parent literacy training that leads to 
                economic self-sufficiency.
                    ``(D) An age-appropriate education to prepare 
                children for success in school and life experiences.
            ``(21) Free public education.--The term `free public 
        education' means education that is provided--
                    ``(A) at public expense, under public supervision 
                and direction, and without tuition charge; and
                    ``(B) as elementary school or secondary school 
                education as determined under applicable State law, 
                except that the term does not include any education 
                provided beyond grade 12.
            ``(22) Gifted and talented.--The term `gifted and talented', 
        when used with respect to students, children, or youth, means 
        students, children, or youth who give evidence of high 
        achievement capability in areas such as intellectual, creative, 
        artistic, or leadership capacity, or in specific academic 
        fields, and who need services or activities not ordinarily 
        provided by the school in order to fully develop those 
        capabilities.
            ``(23) Highly qualified.--The term `highly qualified'--
                    ``(A) when used with respect to any public 
                elementary school or secondary school teacher teaching 
                in a State, means that--
                          ``(i) the teacher has obtained full State 
                      certification as a teacher (including 
                      certification obtained through alternative routes 
                      to certification) or passed the State teacher 
                      licensing examination, and holds a license to 
                      teach in such State, except that when used with 
                      respect to any teacher teaching in a public 
                      charter school, the term means that the teacher 
                      meets the requirements set forth in the State's 
                      public charter school law; and
                          ``(ii) the teacher has not had certification 
                      or licensure requirements waived on an emergency, 
                      temporary, or provisional basis;
                    ``(B) when used with respect to--
                          ``(i) an elementary school teacher who is new 
                      to the profession, means that the teacher--
                                    ``(I) holds at least a bachelor's 
                                degree; and
                                    ``(II) has demonstrated, by passing 
                                a rigorous State test, subject knowledge 
                                and teaching skills

[[Page 115 STAT. 1960]]

                                in reading, writing, mathematics, and 
                                other areas of the basic elementary 
                                school curriculum (which may consist of 
                                passing a State-required certification 
                                or licensing test or tests in reading, 
                                writing, mathematics, and other areas of 
                                the basic elementary school curriculum); 
                                or
                          ``(ii) a middle or secondary school teacher 
                      who is new to the profession, means that the 
                      teacher holds at least a bachelor's degree and has 
                      demonstrated a high level of competency in each of 
                      the academic subjects in which the teacher teaches 
                      by--
                                    ``(I) passing a rigorous State 
                                academic subject test in each of the 
                                academic subjects in which the teacher 
                                teaches (which may consist of a passing 
                                level of performance on a State-required 
                                certification or licensing test or tests 
                                in each of the academic subjects in 
                                which the teacher teaches); or
                                    ``(II) successful completion, in 
                                each of the academic subjects in which 
                                the teacher teaches, of an academic 
                                major, a graduate degree, coursework 
                                equivalent to an undergraduate academic 
                                major, or advanced certification or 
                                credentialing; and
                    ``(C) when used with respect to an elementary, 
                middle, or secondary school teacher who is not new to 
                the profession, means that the teacher holds at least a 
                bachelor's degree and--
                          ``(i) has met the applicable standard in 
                      clause (i) or (ii) of subparagraph (B), which 
                      includes an option for a test; or
                          ``(ii) demonstrates competence in all the 
                      academic subjects in which the teacher teaches 
                      based on a high objective uniform State standard 
                      of evaluation that--
                                    ``(I) is set by the State for both 
                                grade appropriate academic subject 
                                matter knowledge and teaching skills;
                                    ``(II) is aligned with challenging 
                                State academic content and student 
                                academic achievement standards and 
                                developed in consultation with core 
                                content specialists, teachers, 
                                principals, and school administrators;
                                    ``(III) provides objective, coherent 
                                information about the teacher's 
                                attainment of core content knowledge in 
                                the academic subjects in which a teacher 
                                teaches;
                                    ``(IV) is applied uniformly to all 
                                teachers in the same academic subject 
                                and the same grade level throughout the 
                                State;
                                    ``(V) takes into consideration, but 
                                not be based primarily on, the time the 
                                teacher has been teaching in the 
                                academic subject;
                                    ``(VI) is made available to the 
                                public upon request; and
                                    ``(VII) may involve multiple, 
                                objective measures of teacher 
                                competency.

[[Page 115 STAT. 1961]]

            ``(24) Institution of higher education.--The term 
        `institution of higher education' has the meaning given that 
        term in section 101(a) of the Higher Education Act of 1965.
            ``(25) Limited english proficient.--The term `limited 
        English proficient', when used with respect to an individual, 
        means an individual--
                    ``(A) who is aged 3 through 21;
                    ``(B) who is enrolled or preparing to enroll in an 
                elementary school or secondary school;
                    ``(C)(i) who was not born in the United States or 
                whose native language is a language other than English;
                    ``(ii)(I) who is a Native American or Alaska Native, 
                or a native resident of the outlying areas; and
                    ``(II) who comes from an environment where a 
                language other than English has had a significant impact 
                on the individual's level of English language 
                proficiency; or
                    ``(iii) who is migratory, whose native language is a 
                language other than English, and who comes from an 
                environment where a language other than English is 
                dominant; and
                    ``(D) whose difficulties in speaking, reading, 
                writing, or understanding the English language may be 
                sufficient to deny the individual--
                          ``(i) the ability to meet the State's 
                      proficient level of achievement on State 
                      assessments described in section 1111(b)(3);
                          ``(ii) the ability to successfully achieve in 
                      classrooms where the language of instruction is 
                      English; or
                          ``(iii) the opportunity to participate fully 
                      in society.
            ``(26) Local educational agency.--
                    ``(A) In general.--The term `local educational 
                agency' means a public board of education or other 
                public authority legally constituted within a State for 
                either administrative control or direction of, or to 
                perform a service function for, public elementary 
                schools or secondary schools in a city, county, 
                township, school district, or other political 
                subdivision of a State, or of or for a combination of 
                school districts or counties that is recognized in a 
                State as an administrative agency for its public 
                elementary schools or secondary schools.
                    ``(B) Administrative control and direction.--The 
                term includes any other public institution or agency 
                having administrative control and direction of a public 
                elementary school or secondary school.
                    ``(C) BIA schools.--The term includes an elementary 
                school or secondary school funded by the Bureau of 
                Indian Affairs but only to the extent that including the 
                school makes the school eligible for programs for which 
                specific eligibility is not provided to the school in 
                another provision of law and the school does not have a 
                student population that is smaller than the student 
                population of the local educational agency receiving 
                assistance under this Act with the smallest student 
                population, except that the school shall not be subject 
                to the jurisdiction of any State educational agency 
                other than the Bureau of Indian Affairs.

[[Page 115 STAT. 1962]]

                    ``(D) Educational service agencies.--The term 
                includes educational service agencies and consortia of 
                those agencies.
                    ``(E) State educational agency.--The term includes 
                the State educational agency in a State in which the 
                State educational agency is the sole educational agency 
                for all public schools.
            ``(27) Mentoring.--The term `mentoring', except when used to 
        refer to teacher mentoring, means a process by which a 
        responsible adult, postsecondary student, or secondary school 
        student works with a child to provide a positive role model for 
        the child, to establish a supportive relationship with the 
        child, and to provide the child with academic assistance and 
        exposure to new experiences and examples of opportunity that 
        enhance the ability of the child to become a responsible adult.
            ``(28) Native american and native american language.--The 
        terms `Native American' and `Native American language' have the 
        same meaning given those terms in section 103 of the Native 
        American Languages Act of 1990.
            ``(29) Other staff.--The term `other staff' means pupil 
        services personnel, librarians, career guidance and counseling 
        personnel, education aides, and other instructional and 
        administrative personnel.
            ``(30) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands, and for the 
        purpose of section 1121(b) and any other discretionary grant 
        program under this Act, includes the freely associated states of 
        the Republic of the Marshall Islands, the Federated States of 
        Micronesia, and the Republic of Palau until an agreement for the 
        extension of United States education assistance under the 
        Compact of Free Association for each of the freely associated 
        states becomes effective after the date of enactment of the No 
        Child Left Behind Act of 2001.
            ``(31) Parent.--The term `parent' includes a legal guardian 
        or other person standing in loco parentis (such as a grandparent 
        or stepparent with whom the child lives, or a person who is 
        legally responsible for the child's welfare).
            ``(32) Parental involvement.--The term `parental 
        involvement' means the participation of parents in regular, two-
        way, and meaningful communication involving student academic 
        learning and other school activities, including ensuring--
                    ``(A) that parents play an integral role in 
                assisting their child's learning;
                    ``(B) that parents are encouraged to be actively 
                involved in their child's education at school;
                    ``(C) that parents are full partners in their 
                child's education and are included, as appropriate, in 
                decisionmaking and on advisory committees to assist in 
                the education of their child;
                    ``(D) the carrying out of other activities, such as 
                those described in section 1118.
            ``(33) 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) applicable to a family of 
        the size involved.

[[Page 115 STAT. 1963]]

            ``(34) Professional development.--The term `professional 
        development'--
                    ``(A) includes activities that--
                          ``(i) improve and increase teachers' knowledge 
                      of the academic subjects the teachers teach, and 
                      enable teachers to become highly qualified;
                          ``(ii) are an integral part of broad 
                      schoolwide and districtwide educational 
                      improvement plans;
                          ``(iii) give teachers, principals, and 
                      administrators the knowledge and skills to provide 
                      students with the opportunity to meet challenging 
                      State academic content standards and student 
                      academic achievement standards;
                          ``(iv) improve classroom management skills;
                          ``(v)(I) are high quality, sustained, 
                      intensive, and classroom-focused in order to have 
                      a positive and lasting impact on classroom 
                      instruction and the teacher's performance in the 
                      classroom; and
                          ``(II) are not 1-day or short-term workshops 
                      or conferences;
                          ``(vi) support the recruiting, hiring, and 
                      training of highly qualified teachers, including 
                      teachers who became highly qualified through State 
                      and local alternative routes to certification;
                          ``(vii) advance teacher understanding of 
                      effective instructional strategies that are--
                                    ``(I) based on scientifically based 
                                research (except that this subclause 
                                shall not apply to activities carried 
                                out under part D of title II); and
                                    ``(II) strategies for improving 
                                student academic achievement or 
                                substantially increasing the knowledge 
                                and teaching skills of teachers; and
                          ``(viii) are aligned with and directly related 
                      to--
                                    ``(I) State academic content 
                                standards, student academic achievement 
                                standards, and assessments; and
                                    ``(II) the curricula and programs 
                                tied to the standards described in 
                                subclause (I) except that this subclause 
                                shall not apply to activities described 
                                in clauses (ii) and (iii) of section 
                                2123(3)(B);
                          ``(ix) are developed with extensive 
                      participation of teachers, principals, parents, 
                      and administrators of schools to be served under 
                      this Act;
                          ``(x) are designed to give teachers of limited 
                      English proficient children, and other teachers 
                      and instructional staff, the knowledge and skills 
                      to provide instruction and appropriate language 
                      and academic support services to those children, 
                      including the appropriate use of curricula and 
                      assessments;
                          ``(xi) to the extent appropriate, provide 
                      training for teachers and principals in the use of 
                      technology so that technology and technology 
                      applications are effectively used in the classroom 
                      to improve teaching and learning in the curricula 
                      and core academic subjects in which the teachers 
                      teach;

[[Page 115 STAT. 1964]]

                          ``(xii) as a whole, are regularly evaluated 
                      for their impact on increased teacher 
                      effectiveness and improved student academic 
                      achievement, with the findings of the evaluations 
                      used to improve the quality of professional 
                      development;
                          ``(xiii) provide instruction in methods of 
                      teaching children with special needs;
                          ``(xiv) include instruction in the use of data 
                      and assessments to inform and instruct classroom 
                      practice; and
                          ``(xv) include instruction in ways that 
                      teachers, principals, pupil services personnel, 
                      and school administrators may work more 
                      effectively with parents; and
                    ``(B) may include activities that--
                          ``(i) involve the forming of partnerships with 
                      institutions of higher education to establish 
                      school-based teacher training programs that 
                      provide prospective teachers and beginning 
                      teachers with an opportunity to work under the 
                      guidance of experienced teachers and college 
                      faculty;
                          ``(ii) create programs to enable 
                      paraprofessionals (assisting teachers employed by 
                      a local educational agency receiving assistance 
                      under part A of title I) to obtain the education 
                      necessary for those paraprofessionals to become 
                      certified and licensed teachers; and
                          ``(iii) provide follow-up training to teachers 
                      who have participated in activities described in 
                      subparagraph (A) or another clause of this 
                      subparagraph that are designed to ensure that the 
                      knowledge and skills learned by the teachers are 
                      implemented in the classroom.
            ``(35) Public telecommunications entity.--The term `public 
        telecommunications entity' has the meaning given that term in 
        section 397(12) of the Communications Act of 1934.
            ``(36) Pupil services personnel; pupil services.--
                    ``(A) Pupil services personnel.--The term `pupil 
                services personnel' means school counselors, school 
                social workers, school psychologists, and other 
                qualified professional personnel involved in providing 
                assessment, diagnosis, counseling, educational, 
                therapeutic, and other necessary services (including 
                related services as that term is defined in section 602 
                of the Individuals with Disabilities Education Act) as 
                part of a comprehensive program to meet student needs.
                    ``(B) Pupil services.--The term `pupil services' 
                means the services provided by pupil services personnel.
            ``(37) Scientifically based research.--The term 
        `scientifically based research'--
                    ``(A) means research that involves the application 
                of rigorous, systematic, and objective procedures to 
                obtain reliable and valid knowledge relevant to 
                education activities and programs; and
                    ``(B) includes research that--
                          ``(i) employs systematic, empirical methods 
                      that draw on observation or experiment;

[[Page 115 STAT. 1965]]

                          ``(ii) involves rigorous data analyses that 
                      are adequate to test the stated hypotheses and 
                      justify the general conclusions drawn;
                          ``(iii) relies on measurements or 
                      observational methods that provide reliable and 
                      valid data across evaluators and observers, across 
                      multiple measurements and observations, and across 
                      studies by the same or different investigators;
                          ``(iv) is evaluated using experimental or 
                      quasi-experimental designs in which individuals, 
                      entities, programs, or activities are assigned to 
                      different conditions and with appropriate controls 
                      to evaluate the effects of the condition of 
                      interest, with a preference for random-assignment 
                      experiments, or other designs to the extent that 
                      those designs contain within-condition or across-
                      condition controls;
                          ``(v) ensures that experimental studies are 
                      presented in sufficient detail and clarity to 
                      allow for replication or, at a minimum, offer the 
                      opportunity to build systematically on their 
                      findings; and
                          ``(vi) has been accepted by a peer-reviewed 
                      journal or approved by a panel of independent 
                      experts through a comparably rigorous, objective, 
                      and scientific review.
            ``(38) Secondary school.--The term `secondary school' means 
        a nonprofit institutional day or residential school, including a 
        public secondary charter school, that provides secondary 
        education, as determined under State law, except that the term 
        does not include any education beyond grade 12.
            ``(39) Secretary.--The term `Secretary' means the Secretary 
        of Education.
          State.--The term `State' means each of the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, and each 
        of the outlying areas.
            ``(41) State educational agency.--The term `State 
        educational agency' means the agency primarily responsible for 
        the State supervision of public elementary schools and secondary 
        schools.
            ``(42) Teacher mentoring.--The term `teacher mentoring' 
        means activities that--
                    ``(A) consist of structured guidance and regular and 
                ongoing support for teachers, especially beginning 
                teachers, that--
                          ``(i) are designed to help the teachers 
                      continue to improve their practice of teaching and 
                      to develop their instructional skills; and
                           part of an ongoing developmental induction 
                      process--
                                    ``(I) involve the assistance of an 
                                exemplary teacher and other appropriate 
                                individuals from a school, local 
                                educational agency, or institution of 
                                higher education; and
                                    ``(II) may include coaching, 
                                classroom observation, team teaching, 
                                and reduced teaching loads; and
                    ``(B) may include the establishment of a partnership 
                by a local educational agency with an institution of 
                higher

[[Page 115 STAT. 1966]]

                education, another local educational agency, a teacher 
                organization, or another organization.
            ``(43) Technology.--The term `technology' means state-of-
        the-art technology products and services.

``SEC. 9102. <<NOTE: 20 USC 7802.>>  APPLICABILITY OF TITLE.

    ``Parts B, C, D, and E of this title do not apply to title VIII of 
this Act.

``SEC. 9103. <<NOTE: 20 USC 7803.>>  APPLICABILITY TO BUREAU OF INDIAN 
            AFFAIRS OPERATED SCHOOLS.

    ``For the purpose of any competitive program under this Act--
            ``(1) a consortium of schools operated by the Bureau of 
        Indian Affairs;
            ``(2) a school operated under a contract or grant with the 
        Bureau of Indian Affairs in consortium with another contract or 
        grant school or a tribal or community organization; or
            ``(3) a Bureau of Indian Affairs school in consortium with 
        an institution of higher education, a contract or grant school, 
        or a tribal or community organization,

shall be given the same consideration as a local educational agency.

   ``PART B--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER FUNDS

``SEC. 9201. <<NOTE: 20 USC 7821.>>  CONSOLIDATION OF STATE 
            ADMINISTRATIVE FUNDS FOR ELEMENTARY AND SECONDARY EDUCATION 
            PROGRAMS.

    ``(a) Consolidation of Administrative Funds.--
            ``(1) In general.--A State educational agency may 
        consolidate the amounts specifically made available to it for 
        State administration under one or more of the programs under 
        paragraph (2) if the State educational agency can demonstrate 
        that the majority of its resources are derived from non-Federal 
        sources.
            ``(2) Applicability.--This section applies to any program 
        under this Act under which funds are authorized to be used for 
        administration, and such other programs as the Secretary may 
        designate.

    ``(b) Use of funds.--
            ``(1) In general.--A State educational agency shall use the 
        amount available under this section for the administration of 
        the programs included in the consolidation under subsection (a).
            ``(2) Additional uses.--A State educational agency may also 
        use funds available under this section for administrative 
        activities designed to enhance the effective and coordinated use 
        of funds under programs included in the consolidation under 
        subsection (a), such as--
                    ``(A) the coordination of those programs with other 
                Federal and non-Federal programs;
                    ``(B) the establishment and operation of peer-review 
                mechanisms under this Act;
                    ``(C) the administration of this title;
                    ``(D) the dissemination of information regarding 
                model programs and practices;
                    ``(E) technical assistance under any program under 
                this Act;

[[Page 115 STAT. 1967]]

                    ``(F) State-level activities designed to carry out 
                this title;
                    ``(G) training personnel engaged in audit and other 
                monitoring activities; and
                    ``(H) implementation of the Cooperative Audit 
                Resolution and Oversight Initiative of the Department.

    ``(c) Records.--A State educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual program, to account for costs relating 
to the administration of programs included in the consolidation under 
subsection (a).
    ``(d) Review.--To determine the effectiveness of State 
administration under this section, the Secretary may periodically review 
the performance of State educational agencies in using consolidated 
administrative funds under this section and take such steps as the 
Secretary finds appropriate to ensure the effectiveness of that 
administration.
    ``(e) Unused Administrative Funds.--If a State educational agency 
does not use all of the funds available to the agency under this section 
for administration, the agency may use those funds during the applicable 
period of availability as funds available under one or more programs 
included in the consolidation under subsection (a).
    ``(f) Consolidation of Funds for Standards and Assessment 
Development.--In order to develop challenging State academic standards 
and assessments, a State educational agency may consolidate the amounts 
described in subsection (a) for those purposes under title I.

``SEC. 9202. <<NOTE: 20 USC 7822.>>  SINGLE LOCAL EDUCATIONAL AGENCY 
            STATES.

    ``A State educational agency that also serves as a local educational 
agency shall, in its applications or plans under this Act, describe how 
the agency will eliminate duplication in conducting administrative 
functions.

``SEC. 9203. <<NOTE: 20 USC 7823.>>  CONSOLIDATION OF FUNDS FOR LOCAL 
            ADMINISTRATION.

    ``(a) General Authority.--In accordance with regulations of the 
Secretary and for any fiscal year, a local educational agency, with the 
approval of its State educational agency, may consolidate and use for 
the administration of one or more programs under this Act (or such other 
programs as the Secretary shall designate) not more than the percentage, 
established in each program, of the total available for the local 
educational agency under those programs.
    ``(b) State Procedures.--Within 1 year after the date of enactment 
of the No Child Left Behind Act of 2001, a State educational agency 
shall, in collaboration with local educational agencies in the State, 
establish procedures for responding to requests from local educational 
agencies to consolidate administrative funds under subsection (a) and 
for establishing limitations on the amount of funds under those programs 
that may be used for administration on a consolidated basis.
    ``(c) Conditions.--A local educational agency that consolidates 
administrative funds under this section for any fiscal year shall not 
use any other funds under the programs included in the consolidation for 
administration for that fiscal year.
    ``(d) Uses of Administrative Funds.--A local educational agency that 
consolidates administrative funds under this section

[[Page 115 STAT. 1968]]

may use the consolidated funds for the administration of the programs 
and for uses, at the school district and school levels, comparable to 
those described in section 9201(b)(2).
    ``(e) Records.--A local educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual program, to account for costs relating 
to the administration of the programs included in the consolidation.

``SEC. 9204. <<NOTE: 20 USC 7824.>>  CONSOLIDATED SET-ASIDE FOR 
            DEPARTMENT OF THE INTERIOR FUNDS.

    ``(a) General Authority.--
            ``(1) Transfer.--The Secretary shall transfer to the 
        Department of the Interior, as a consolidated amount for covered 
        programs, the Indian education programs under part A of title 
        VII, and the education for homeless children and youth program 
        under subtitle B of title VII of the McKinney-Vento Homeless 
        Assistance Act, the amounts allotted to the Department of the 
        Interior under those programs.
            ``(2) Agreement.--
                    ``(A) In general.--The Secretary and the Secretary 
                of the Interior shall enter into an agreement, 
                consistent with the requirements of the programs 
                specified in paragraph (1), for the distribution and use 
                of those program funds under terms that the Secretary 
                determines best meet the purposes of those programs.
                    ``(B) Contents.--The agreement shall--
                          ``(i) set forth the plans of the Secretary of 
                      the Interior for the use of the amount transferred 
                      and the achievement measures to assess program 
                      effectiveness, including measurable goals and 
                      objectives; and
                          ``(ii) be developed in consultation with 
                      Indian tribes.

    ``(b) Administration.--The Department of the Interior may use not 
more than 1.5 percent of the funds consolidated under this section for 
its costs related to the administration of the funds transferred under 
this section.

 ``PART C--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND LOCAL PLANS 
                            AND APPLICATIONS

``SEC. 9301. <<NOTE: 20 USC 7841.>>  PURPOSES.

    ``The purposes of this part are--
            ``(1) to improve teaching and learning by encouraging 
        greater cross-program coordination, planning, and service 
        delivery;
            ``(2) to provide greater flexibility to State and local 
        authorities through consolidated plans, applications, and 
        reporting; and
            ``(3) to enhance the integration of programs under this Act 
        with State and local programs.

``SEC. 9302. <<NOTE: 20 USC 7842.>>  OPTIONAL CONSOLIDATED STATE PLANS 
            OR APPLICATIONS.

    ``(a) General Authority.--

[[Page 115 STAT. 1969]]

            ``(1) Simplification.--In order to simplify application 
        requirements and reduce the burden for State educational 
        agencies under this Act, the Secretary, in accordance with 
        subsection (b), shall establish procedures and criteria under 
        which, after consultation with the Governor, a State educational 
        agency may submit a consolidated State plan or a consolidated 
        State application meeting the requirements of this section for--
                    ``(A) each of the covered programs in which the 
                State participates; and
                    ``(B) such other programs as the Secretary may 
                designate.
            ``(2) Consolidated applications and plans.--After 
        consultation with the Governor, a State educational agency that 
        submits a consolidated State plan or a consolidated State 
        application under this section shall not be required to submit 
        separate State plans or applications under any of the programs 
        to which the consolidated State plan or consolidated State 
        application under this section applies.

    ``(b) Collaboration.--
            ``(1) In general.--In establishing criteria and procedures 
        under this section, the Secretary shall collaborate with State 
        educational agencies and, as appropriate, with other State 
        agencies, local educational agencies, public and private 
        nonprofit agencies, organizations, and institutions, private 
        schools, and representatives of parents, students, and teachers.
            ``(2) Contents.--Through the collaborative process described 
        in paragraph (1), the Secretary shall establish, for each 
        program under this Act to which this section applies, the 
        descriptions, information, assurances, and other material 
        required to be included in a consolidated State plan or 
        consolidated State application.
            ``(3) Necessary materials.--The Secretary shall require only 
        descriptions, information, assurances (including assurances of 
        compliance with applicable provisions regarding participation by 
        private school children and teachers), and other materials that 
        are absolutely necessary for the consideration of the 
        consolidated State plan or consolidated State application.

``SEC. 9303. <<NOTE: 20 USC 7843.>>  CONSOLIDATED REPORTING.

    ``(a) In general.--In order to simplify reporting requirements and 
reduce reporting burdens, the Secretary shall establish procedures and 
criteria under which a State educational agency, in consultation with 
the Governor of the State, may submit a consolidated State annual 
report.
    ``(b) Contents.--The report shall contain information about the 
programs included in the report, including the performance of the State 
under those programs, and other matters as the Secretary determines are 
necessary, such as monitoring activities.
    ``(c) Replacement.--The report shall replace separate individual 
annual reports for the programs included in the consolidated State 
annual report.

``SEC. 9304. <<NOTE: 20 USC 7844.>>  GENERAL APPLICABILITY OF STATE 
            EDUCATIONAL AGENCY ASSURANCES.

    ``(a) Assurances.--A State educational agency, in consultation with 
the Governor of the State, that submits a consolidated State plan or 
consolidated State application under this Act, whether

[[Page 115 STAT. 1970]]

separately or under section 9302, shall have on file with the Secretary 
a single set of assurances, applicable to each program for which the 
plan or application is submitted, that provides that--
            ``(1) each such program will be administered in accordance 
        with all applicable statutes, regulations, program plans, and 
        applications;
            ``(2)(A) the control of funds provided under each such 
        program and title to property acquired with program funds will 
        be in a public agency, a nonprofit private agency, institution, 
        or organization, or an Indian tribe, if the law authorizing the 
        program provides for assistance to those entities; and
            ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will administer 
        those funds and property to the extent required by the 
        authorizing law;
            ``(3) the State will adopt and use proper methods of 
        administering each such program, including--
                    ``(A) the enforcement of any obligations imposed by 
                law on agencies, institutions, organizations, and other 
                recipients responsible for carrying out each program;
                    ``(B) the correction of deficiencies in program 
                operations that are identified through audits, 
                monitoring, or evaluation; and
                    ``(C) the adoption of written procedures for the 
                receipt and resolution of complaints alleging violations 
                of law in the administration of the programs;
            ``(4) the State will cooperate in carrying out any 
        evaluation of each such program conducted by or for the 
        Secretary or other Federal officials;
            ``(5) the State will use such fiscal control and fund 
        accounting procedures as will ensure proper disbursement of, and 
        accounting for, Federal funds paid to the State under each such 
        program;
            ``(6) the State will--
                    ``(A) make reports to the Secretary as may be 
                necessary to enable the Secretary to perform the 
                Secretary's duties under each such program; and
                    ``(B) maintain such records, provide such 
                information to the Secretary, and afford such access to 
                the records as the Secretary may find necessary to carry 
                out the Secretary's duties; and
            ``(7) before the plan or application was submitted to the 
        Secretary, the State afforded a reasonable opportunity for 
        public comment on the plan or application and considered such 
        comment.

    ``(b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

``SEC. 9305. <<NOTE: 20 USC 7845.>>  CONSOLIDATED LOCAL PLANS OR 
            APPLICATIONS.

    ``(a) General Authority.--
            ``(1) Consolidated plan.--A local educational agency 
        receiving funds under more than one covered program may submit 
        plans or applications to the State educational agency under 
        those programs on a consolidated basis.
            ``(2) Availability to governor.--The State educational 
        agency shall make any consolidated local plans and applications 
        available to the Governor.

[[Page 115 STAT. 1971]]

    ``(b) Required Consolidated Plans or Applications.--A State 
educational agency that has an approved consolidated State plan or 
application under section 9302 may require local educational agencies in 
the State receiving funds under more than one program included in the 
consolidated State plan or consolidated State application to submit 
consolidated local plans or applications under those programs, but may 
not require those agencies to submit separate plans.
    ``(c) Collaboration.--A State educational agency, in consultation 
with the Governor, shall collaborate with local educational agencies in 
the State in establishing procedures for the submission of the 
consolidated State plans or consolidated State applications under this 
section.
    ``(d) Necessary Materials.--The State educational agency shall 
require only descriptions, information, assurances, and other material 
that are absolutely necessary for the consideration of the local 
educational agency plan or application.

``SEC. 9306. <<NOTE: 20 USC 7846.>>  OTHER GENERAL ASSURANCES.

    ``(a) Assurances.--Any applicant, other than a State educational 
agency that submits a plan or application under this Act, whether 
separately or pursuant to section 9305, shall have on file with the 
State educational agency a single set of assurances, applicable to each 
program for which a plan or application is submitted, that provides 
that--
            ``(1) each such program will be administered in accordance 
        with all applicable statutes, regulations, program plans, and 
        applications;
            ``(2)(A) the control of funds provided under each such 
        program and title to property acquired with program funds will 
        be in a public agency or in a nonprofit private agency, 
        institution, organization, or Indian tribe, if the law 
        authorizing the program provides for assistance to those 
        entities; and
            ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will administer 
        the funds and property to the extent required by the authorizing 
        statutes;
            ``(3) the applicant will adopt and use proper methods of 
        administering each such program, including--
                    ``(A) the enforcement of any obligations imposed by 
                law on agencies, institutions, organizations, and other 
                recipients responsible for carrying out each program; 
                and
                    ``(B) the correction of deficiencies in program 
                operations that are identified through audits, 
                monitoring, or evaluation;
            ``(4) the applicant will cooperate in carrying out any 
        evaluation of each such program conducted by or for the State 
        educational agency, the Secretary, or other Federal officials;
            ``(5) the applicant will use such fiscal control and fund 
        accounting procedures as will ensure proper disbursement of, and 
        accounting for, Federal funds paid to the applicant under each 
        such program;
            ``(6) the applicant will--
                    ``(A) <<NOTE: Reports.>>  submit such reports to the 
                State educational agency (which shall make the reports 
                available to the Governor) and the Secretary as the 
                State educational agency and Secretary may require to 
                enable the State educational

[[Page 115 STAT. 1972]]

                agency and the Secretary to perform their duties under 
                each such program; and
                    ``(B) maintain such records, provide such 
                information, and afford such access to the records as 
                the State educational agency (after consultation with 
                the Governor) or the Secretary may reasonably require to 
                carry out the State educational agency's or the 
                Secretary's duties; and
            ``(7) before the application was submitted, the applicant 
        afforded a reasonable opportunity for public comment on the 
        application and considered such comment.

    ``(b) GEPA Provision.--Section 442 of the General Education 
Provisions Act shall not apply to programs under this Act.

                            ``PART D--WAIVERS

``SEC. 9401. <<NOTE: 20 USC 7861.>>  WAIVERS OF STATUTORY AND REGULATORY 
            REQUIREMENTS.

    ``(a) In General.--Except as provided in subsection (c), the 
Secretary may waive any statutory or regulatory requirement of this Act 
for a State educational agency, local educational agency, Indian tribe, 
or school through a local educational agency, that--
            ``(1) receives funds under a program authorized by this Act; 
        and
            ``(2) requests a waiver under subsection (b).

    ``(b) Request for Waiver.--
            ``(1) In general.--A State educational agency, local 
        educational agency, or Indian tribe that desires a waiver shall 
        submit a waiver request to the Secretary that--
                    ``(A) identifies the Federal programs affected by 
                the requested waiver;
                    ``(B) describes which Federal statutory or 
                regulatory requirements are to be waived and how the 
                waiving of those requirements will--
                          ``(i) increase the quality of instruction for 
                      students; and
                          ``(ii) improve the academic achievement of 
                      students;
                    ``(C) describes, for each school year, specific, 
                measurable educational goals, in accordance with section 
                1111(b), for the State educational agency and for each 
                local educational agency, Indian tribe, or school that 
                would be affected by the waiver and the methods to be 
                used to measure annually such progress for meeting such 
                goals and outcomes;
                    ``(D) explains how the waiver will assist the State 
                educational agency and each affected local educational 
                agency, Indian tribe, or school in reaching those goals; 
                and
                    ``(E) describes how schools will continue to provide 
                assistance to the same populations served by programs 
                for which waivers are requested.
            ``(2) Additional information.--Such requests--
                    ``(A) may provide for waivers of requirements 
                applicable to State educational agencies, local 
                educational agencies, Indian tribes, and schools; and
                    ``(B) shall be developed and submitted--

[[Page 115 STAT. 1973]]

                          ``(i)(I) by local educational agencies (on 
                      behalf of those agencies and schools) to State 
                      educational agencies; and
                          ``(II) by State educational agencies (on 
                      behalf of, and based on the requests of, local 
                      educational agencies) to the Secretary; or
                          ``(ii) by Indian tribes (on behalf of schools 
                      operated by the tribes) to the Secretary.
            ``(3) General requirements.--
                    ``(A) State educational agencies.--In the case of a 
                waiver request submitted by a State educational agency 
                acting on its own behalf, the State educational agency 
                shall--
                          ``(i) provide all interested local educational 
                      agencies in the State with notice and a reasonable 
                      opportunity to comment on the request;
                          ``(ii) submit the comments to the Secretary; 
                      and
                          ``(iii) provide notice and information to the 
                      public regarding the waiver request in the manner 
                      in which the applying agency customarily provides 
                      similar notices and information to the public.
                    ``(B) Local educational agencies.--In the case of a 
                waiver request submitted by a local educational agency 
                that receives funds under this Act--
                          ``(i) the request shall be reviewed by the 
                      State educational agency and be accompanied by the 
                      comments, if any, of the State educational agency; 
                      and
                          ``(ii) notice and information regarding the 
                      waiver request shall be provided to the public by 
                      the agency requesting the waiver in the manner in 
                      which that agency customarily provides similar 
                      notices and information to the public.

    ``(c) Restrictions.--The Secretary shall not waive under this 
section any statutory or regulatory requirements relating to--
            ``(1) the allocation or distribution of funds to States, 
        local educational agencies, or other recipients of funds under 
        this Act;
            ``(2) maintenance of effort;
            ``(3) comparability of services;
            ``(4) use of Federal funds to supplement, not supplant, non-
        Federal funds;
            ``(5) equitable participation of private school students and 
        teachers;
            ``(6) parental participation and involvement;
            ``(7) applicable civil rights requirements;
            ``(8) the requirement for a charter school under subpart 1 
        of part B of title V;
            ``(9) the prohibitions regarding--
                    ``(A) State aid in section 9522;
                    ``(B) use of funds for religious worship or 
                instruction in section 9505; and
                    ``(C) activities in section 9526; or
            ``(10) the selection of a school attendance area or school 
        under subsections (a) and (b) of section 1113, except that the 
        Secretary may grant a waiver to allow a school attendance area 
        or school to participate in activities under part A of title I 
        if the percentage of children from low-income families in

[[Page 115 STAT. 1974]]

        the school attendance area or who attend the school is not more 
        than 10 percentage points below the lowest percentage of those 
        children for any school attendance area or school of the local 
        educational agency that meets the requirements of subsections 
        (a) and (b) of section 1113.

    ``(d) Duration and Extension of Waiver.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        waiver approved by the Secretary under this section may be for a 
        period not to exceed 4 years.
            ``(2) Extension.--The Secretary may extend the period 
        described in paragraph (1) if the Secretary determines that--
                    ``(A) the waiver has been effective in enabling the 
                State or affected recipient to carry out the activities 
                for which the waiver was requested and the waiver has 
                contributed to improved student achievement; and
                  `(B) the extension is in the public interest.

    ``(e) Reports.--
            ``(1) Local waiver.--A local educational agency that 
        receives a waiver under this section shall, at the end of the 
        second year for which a waiver is received under this section 
        and each subsequent year, submit a report to the State 
        educational agency that--
                    ``(A) describes the uses of the waiver by the agency 
                or by schools;
                    ``(B) describes how schools continued to provide 
                assistance to the same populations served by the 
                programs for which waivers were granted; and
                    ``(C) evaluates the progress of the agency and of 
                schools in improving the quality of instruction or the 
                academic achievement of students.
            ``(2) State waiver.--A State educational agency that 
        receives reports required under paragraph (1) shall annually 
        submit a report to the Secretary that is based on those reports 
        and contains such information as the Secretary may require.
            ``(3) Indian tribe waiver.--An Indian tribe that receives a 
        waiver under this section shall annually submit a report to the 
        Secretary that--
                    ``(A) describes the uses of the waiver by schools 
                operated by the tribe; and
                    ``(B) evaluates the progress of those schools in 
                improving the quality of instruction or the academic 
                achievement of students.
            ``(4) Report to congress.--Beginning in fiscal year 2002 and 
        for each subsequent year, the Secretary shall submit to the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate a report--
                    ``(A) summarizing the uses of waivers by State 
                educational agencies, local educational agencies, Indian 
                tribes, and schools; and
                    ``(B) describing whether the waivers--
                          ``(i) increased the quality of instruction to 
                      students; or
                          ``(ii) improved the academic achievement of 
                      students.

    ``(f) Termination of Waivers.--The Secretary shall terminate a 
waiver under this section if the Secretary determines, after notice

[[Page 115 STAT. 1975]]

and an opportunity for a hearing, that the performance of the State or 
other recipient affected by the waiver has been inadequate to justify a 
continuation of the waiver or if the waiver is no longer necessary to 
achieve its original purposes.
    ``(g) <<NOTE: Federal Register, publication.>>  Publication.--A 
notice of the Secretary's decision to grant each waiver under subsection 
(a) shall be published in the Federal Register and the Secretary shall 
provide for the dissemination of the notice to State educational 
agencies, interested parties, including educators, parents, students, 
advocacy and civil rights organizations, and the public.

                      ``PART E--UNIFORM PROVISIONS

                      ``Subpart 1--Private Schools

``SEC. 9501. <<NOTE: 20 USC 7881.>>  PARTICIPATION BY PRIVATE SCHOOL 
            CHILDREN AND TEACHERS.

    ``(a) Private School Participation.--
            ``(1) In general.--Except as otherwise provided in this Act, 
        to the extent consistent with the number of eligible children in 
        areas served by a State educational agency, local educational 
        agency, educational service agency, consortium of those 
        agencies, or another entity receiving financial assistance under 
        a program specified in subsection (b), who are enrolled in 
        private elementary schools and secondary schools in areas served 
        by such agency, consortium, or entity, the agency, consortium, 
        or entity shall, after timely and meaningful consultation with 
        appropriate private school officials provide to those children 
        and their teachers or other educational personnel, on an 
        equitable basis, special educational services or other benefits 
        that address their needs under the program.
            ``(2) Secular, neutral, and nonideological services or 
        benefits.--Educational services or other benefits, including 
        materials and equipment, provided under this section, shall be 
        secular, neutral, and nonideological.
            ``(3) Special rule.--Educational services and other benefits 
        provided under this section for private school children, 
        teachers, and other educational personnel shall be equitable in 
        comparison to services and other benefits for public school 
        children, teachers, and other educational personnel 
        participating in the program and shall be provided in a timely 
        manner.
            ``(4) Expenditures.--Expenditures for educational services 
        and other benefits provided under this section for eligible 
        private school children, their teachers, and other educational 
        personnel serving those children shall be equal, taking into 
        account the number and educational needs of the children to be 
        served, to the expenditures for participating public school 
        children.
            ``(5) Provision of services.--An agency, consortium, or 
        entity described in subsection (a)(1) of this section may 
        provide those services directly or through contracts with public 
        and private agencies, organizations, and institutions.

    ``(b) Applicability.--
            ``(1) In general.--This section applies to programs under--
                    ``(A) subparts 1 and 3 of part B of title I;
                    ``(B) part C of title I;
                    ``(C) part A of title II, to the extent provided in 
                paragraph (3);

[[Page 115 STAT. 1976]]

                    ``(D) part B of title II;
                    ``(E) part D of title II;
                    ``(F) part A of title III;
                    ``(G) part A of title IV; and
                    ``(H) part B of title IV.
            ``(2) Definition.--For the purpose of this section, the term 
        `eligible children' means children eligible for services under a 
        program described in paragraph (1).
            ``(3) Application.--(A) Except as provided in subparagraph 
        (B), this subpart, including subsection (a)(4), applies to funds 
        awarded to a local educational agency under part A of title II 
        only to the extent that the local educational agency uses funds 
        under that part to provide professional development to teachers 
        and others.
            ``(B) Subject to subparagraph (A), the share of the local 
        educational agency's subgrant under part A of title II that is 
        used for professional development and subject to a determination 
        of equitable expenditures under subsection (a)(4) shall not be 
        less than the aggregate share of that agency's awards that were 
        used for professional development for fiscal year 2001 under 
        section 2203(1)(B) (as such section was in effect on the day 
        preceding the date of enactment of the No Child Left Behind Act 
        of 2001) and section 306 of the Department of Education 
        Appropriations Act, 2001.

    ``(c) Consultation.--
            ``(1) In general.--To ensure timely and meaningful 
        consultation, a State educational agency, local educational 
        agency, educational service agency, consortium of those 
        agencies, or entity shall consult with appropriate private 
        school officials during the design and development of the 
        programs under this Act, on issues such as--
                    ``(A) how the children's needs will be identified;
                    ``(B) what services will be offered;
                    ``(C) how, where, and by whom the services will be 
                provided;
                    ``(D) how the services will be assessed and how the 
                results of the assessment will be used to improve those 
                services;
                    ``(E) the size and scope of the equitable services 
                to be provided to the eligible private school children, 
                teachers, and other educational personnel and the amount 
                of funds available for those services; and
                    ``(F) how and when the agency, consortium, or entity 
                will make decisions about the delivery of services, 
                including a thorough consideration and analysis of the 
                views of the private school officials on the provision 
                of contract services through potential third-party 
                providers.
            ``(2) Disagreement.--If the agency, consortium, or entity 
        disagrees with the views of the private school officials on the 
        provision of services through a contract, the agency, 
        consortium, or entity shall provide to the private school 
        officials a written explanation of the reasons why the local 
        educational agency has chosen not to use a contractor.
            ``(3) Timing.--The consultation required by paragraph (1) 
        shall occur before the agency, consortium, or entity makes any 
        decision that affects the opportunities of eligible private 
        school children, teachers, and other educational personnel to

[[Page 115 STAT. 1977]]

        participate in programs under this Act, and shall continue 
        throughout the implementation and assessment of activities under 
        this section.
            ``(4) Discussion required.--The consultation required by 
        paragraph (1) shall include a discussion of service delivery 
        mechanisms that the agency, consortium, or entity could use to 
        provide equitable services to eligible private school children, 
        teachers, administrators, and other staff.

    ``(d) Public Control of Funds.--
            ``(1) In general.--The control of funds used to provide 
        services under this section, and title to materials, equipment, 
        and property purchased with those funds, shall be in a public 
        agency for the uses and purposes provided in this Act, and a 
        public agency shall administer the funds and property.
            ``(2) Provision of services.--
                    ``(A) In general.--The provision of services under 
                this section shall be provided--
                          ``(i) by employees of a public agency; or
                          ``(ii) through contract by the public agency 
                      with an individual, association, agency, 
                      organization, or other entity.
                    ``(B) Independence; public agency.--In the provision 
                of those services, the employee, person, association, 
                agency, organization, or other entity shall be 
                independent of the private school and of any religious 
                organization, and the employment or contract shall be 
                under the control and supervision of the public agency.
                    ``(C) Commingling of funds prohibited.--Funds used 
                to provide services under this section shall not be 
                commingled with non-Federal funds.

``SEC. 9502. <<NOTE: 20 USC 7882.>>  STANDARDS FOR BY-PASS.

    ``(a) In General.--If, by reason of any provision of law, a State 
educational agency, local educational agency, educational service 
agency, consortium of those agencies, or other entity is prohibited from 
providing for the participation in programs of children enrolled in, or 
teachers or other educational personnel from, private elementary schools 
and secondary schools, on an equitable basis, or if the Secretary 
determines that the agency, consortium, or entity has substantially 
failed or is unwilling to provide for that participation, as required by 
section 9501, the Secretary shall--
            ``(1) waive the requirements of that section for the agency, 
        consortium, or entity; and
            ``(2) arrange for the provision of equitable services to 
        those children, teachers, or other educational personnel through 
        arrangements that shall be subject to the requirements of this 
        section and of sections 9501, 9503, and 9504.

    ``(b) Determination.--In making the determination under subsection 
(a), the Secretary shall consider one or more factors, including the 
quality, size, scope, and location of the program, and the opportunity 
of private school children, teachers, and other educational personnel to 
participate in the program.

``SEC. 9503. <<NOTE: 20 USC 7883.>>  COMPLAINT PROCESS FOR PARTICIPATION 
            OF PRIVATE SCHOOL CHILDREN.

    ``(a) Procedures for Complaints.--The Secretary shall develop and 
implement written procedures for receiving, investigating, and resolving 
complaints from parents, teachers, or other

[[Page 115 STAT. 1978]]

individuals and organizations concerning violations of section 9501 by a 
State educational agency, local educational agency, educational service 
agency, consortium of those agencies, or entity. The individual or 
organization shall submit the complaint to the State educational agency 
for a written resolution by the State educational agency within a 
reasonable period of time.
    ``(b) Appeals <<NOTE: Deadline.>>  to Secretary.--The resolution may 
be appealed by an interested party to the Secretary not later than 30 
days after the State educational agency resolves the complaint or fails 
to resolve the complaint within a reasonable period of time. The appeal 
shall be accompanied by a copy of the State educational agency's 
resolution, and a complete statement of the reasons supporting the 
appeal. <<NOTE: Deadline.>>  The Secretary shall investigate and resolve 
the appeal not later than 120 days after receipt of the appeal.

``SEC. 9504. <<NOTE: 20 USC 7884.>>  BY-PASS DETERMINATION PROCESS.

    ``(a) Review.--
            ``(1) In general.--
                    ``(A) Written objections.--The Secretary shall not 
                take any final action under section 9502 until the State 
                educational agency, local educational agency, 
                educational service agency, consortium of those 
                agencies, or entity affected by the action has had an 
                opportunity, for not less than 45 days after receiving 
                written notice thereof, to submit written objections and 
                to appear before the Secretary to show cause why that 
                action should not be taken.
                    ``(B) Prior to reduction.--Pending final resolution 
                of any investigation or complaint that could result in a 
                determination under this section, the Secretary may 
                withhold from the allocation of the affected State 
                educational agency or local educational agency the 
                amount estimated by the Secretary to be necessary to pay 
                the cost of those services.
            ``(2) Petition for review.--
                    ``(A) Petition.--If the affected agency, consortium, 
                or entity is dissatisfied with the Secretary's final 
                action after a proceeding under paragraph (1), the 
                agency, consortium, or entity may, within 60 days after 
                notice of that action, file with the United States court 
                of appeals for the circuit in which the State is located 
                a petition for review of that action.
                    ``(B) Transmission.--A copy of the petition shall be 
                forthwith transmitted by the clerk of the court to the 
                Secretary.
                    ``(C) Filing.--The Secretary, upon receipt of the 
                copy of the petition, shall file in the court the record 
                of the proceedings on which the Secretary based the 
                action, as provided in section 2112 of title 28, United 
                States Code.
            ``(3) Findings of fact.--
                    ``(A) In general.--The findings of fact by the 
                Secretary, if supported by substantial evidence, shall 
                be conclusive, but the court, for good cause shown, may 
                remand the case to the Secretary to take further 
                evidence and the Secretary may then make new or modified 
                findings of fact and may modify the Secretary's previous 
                action, and shall file in the court the record of the 
                further proceedings.

[[Page 115 STAT. 1979]]

                    ``(B) New or modified findings.--Any new or modified 
                findings of fact shall likewise be conclusive if 
                supported by substantial evidence.
            ``(4) Jurisdiction.--
                    ``(A) In general.--Upon the filing of a petition, 
                the court shall have jurisdiction to affirm the action 
                of the Secretary or to set the action aside, in whole or 
                in part.
                    ``(B) Judgment.--The judgment of the court shall be 
                subject to review by the Supreme Court of the United 
                States upon certiorari or certification as provided in 
                section 1254 of title 28, United States Code.

    ``(b) Determination.--Any determination by the Secretary under this 
section shall continue in effect until the Secretary determines, in 
consultation with that agency, consortium, or entity and representatives 
of the affected private school children, teachers, or other educational 
personnel, that there will no longer be any failure or inability on the 
part of the agency, consortium, or entity to meet the applicable 
requirements of section 9501 or any other provision of this Act.
    ``(c) Payment From State Allotment.--When the Secretary arranges for 
services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of those services, including the administrative costs of 
arranging for those services, from the appropriate allocation or 
allocations under this Act.
    ``(d) Prior Determination.--Any by-pass determination by the 
Secretary under this Act as in effect on the day preceding the date of 
enactment of the No Child Left Behind Act of 2001 shall remain in effect 
to the extent the Secretary determines that that determination is 
consistent with the purpose of this section.

``SEC. 9505. <<NOTE: 20 USC 7885.>>  PROHIBITION AGAINST FUNDS FOR 
            RELIGIOUS WORSHIP OR INSTRUCTION.

    ``Nothing contained in this Act shall be construed to authorize the 
making of any payment under this Act for religious worship or 
instruction.

``SEC. 9506. <<NOTE: 20 USC 7886.>>  PRIVATE, RELIGIOUS, AND HOME 
            SCHOOLS.

    ``(a) Applicability to Nonrecipient Private Schools.--Nothing in 
this Act shall be construed to affect any private school that does not 
receive funds or services under this Act, nor shall any student who 
attends a private school that does not receive funds or services under 
this Act be required to participate in any assessment referenced in this 
Act.
    ``(b) Applicability to Home Schools.--Nothing in this Act shall be 
construed to affect a home school, whether or not a home school is 
treated as a home school or a private school under State law, nor shall 
any student schooled at home be required to participate in any 
assessment referenced in this Act.
    ``(c) Rule of Construction on Prohibition of Federal Control Over 
Nonpublic Schools.--Nothing in this Act shall be construed to permit, 
allow, encourage, or authorize any Federal control over any aspect of 
any private, religious, or home school, whether or not a home school is 
treated as a private school or home school under State law. This section 
shall not be construed to bar private, religious, or home schools from 
participation in programs or services under this Act.

[[Page 115 STAT. 1980]]

    ``(d) Rule of Construction on State and Local Educational Agency 
Mandates.--Nothing in this Act shall be construed to require any State 
educational agency or local educational agency that receives funds under 
this Act to mandate, direct, or control the curriculum of a private or 
home school, regardless or whether or not a home school is treated as a 
private school under state law, nor shall any funds under this Act be 
used for this purpose.

                      ``Subpart 2--Other Provisions

``SEC. 9521. <<NOTE: 20 USC 7901.>>  MAINTENANCE OF EFFORT.

    ``(a) In General.--A local educational agency may receive funds 
under a covered program for any fiscal year only if the State 
educational agency finds that either the combined fiscal effort per 
student or the aggregate expenditures of the agency and the State with 
respect to the provision of free public education by the agency for the 
preceding fiscal year was not less than 90 percent of the combined 
fiscal effort or aggregate expenditures for the second preceding fiscal 
year.
    ``(b) Reduction in Case of Failure To Meet.--
            ``(1) In general.--The State educational agency shall reduce 
        the amount of the allocation of funds under a covered program in 
        any fiscal year in the exact proportion by which a local 
        educational agency fails to meet the requirement of subsection 
        (a) of this section by falling below 90 percent of both the 
        combined fiscal effort per student and aggregate expenditures 
        (using the measure most favorable to the local agency).
            ``(2) Special rule.--No such lesser amount shall be used for 
        computing the effort required under subsection (a) of this 
        section for subsequent years.

    ``(c) Waiver.--The Secretary may waive the requirements of this 
section if the Secretary determines that a waiver would be equitable due 
to--
            ``(1) exceptional or uncontrollable circumstances, such as a 
        natural disaster; or
            ``(2) a precipitous decline in the financial resources of 
        the local educational agency.

``SEC. 9522. <<NOTE: 20 USC 7902.>>  PROHIBITION REGARDING STATE AID.

    ``A State shall not take into consideration payments under this Act 
(other than under title VIII) in determining the eligibility of any 
local educational agency in that State for State aid, or the amount of 
State aid, with respect to free public education of children.

``SEC. 9523. <<NOTE: 20 USC 7903.>>  PRIVACY OF ASSESSMENT RESULTS.

    ``Any results from an individual assessment referred to in this Act 
of a student that become part of the education records of the student 
shall have the protections provided in section 444 of the General 
Education Provisions Act.

``SEC. 9524. <<NOTE: 20 USC 7904.>>  SCHOOL PRAYER.

    ``(a) Guidance.--The <<NOTE: Deadline.>>  Secretary shall provide 
and revise guidance, not later than September 1, 2002, and of every 
second year thereafter, to State educational agencies, local educational 
agencies, and the public on constitutionally protected prayer in public

[[Page 115 STAT. 1981]]

elementary schools and secondary schools, including making the guidance 
available on the Internet. The guidance shall be reviewed, prior to 
distribution, by the Office of Legal Counsel of the Department of 
Justice for verification that the guidance represents the current state 
of the law concerning constitutionally protected prayer in public 
elementary schools and secondary schools.

    ``(b) Certification.--As a condition of receiving funds under this 
Act, a local educational agency shall certify in writing to the State 
educational agency involved that no policy of the local educational 
agency prevents, or otherwise denies participation in, constitutionally 
protected prayer in public elementary schools and secondary schools, as 
detailed in the guidance required under subsection (a). The 
certification shall be provided by October 1 of each year. The State 
educational agency shall report to the Secretary by November 1 of each 
year a list of those local educational agencies that have not filed the 
certification or against which complaints have been made to the State 
educational agency that the local educational agencies are not in 
compliance with this section.
    ``(c) Enforcement.--The Secretary is authorized and directed to 
effectuate subsection (b) by issuing, and securing compliance with, 
rules or orders with respect to a local educational agency that fails to 
certify, or is found to have certified in bad faith, that no policy of 
the local educational agency prevents, or otherwise denies participation 
in, constitutionally protected prayer in public elementary schools and 
secondary schools.

``SEC. 9525. <<NOTE: Boy Scouts of America Equal Access Act. 20 USC 
            7905.>>  EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES.

    ``(a) Short Title.--This section may be cited as the `Boy Scouts of 
America Equal Access Act'.
    ``(b) In General.--
            ``(1) Equal access.--Notwithstanding any other provision of 
        law, no public elementary school, public secondary school, local 
        educational agency, or State educational agency that has a 
        designated open forum or a limited public forum and that 
        receives funds made available through the Department shall deny 
        equal access or a fair opportunity to meet to, or discriminate 
        against, any group officially affiliated with the Boy Scouts of 
        America, or any other youth group listed in title 36 of the 
        United States Code (as a patriotic society), that wishes to 
        conduct a meeting within that designated open forum or limited 
        public forum, including denying such access or opportunity or 
        discriminating for reasons based on the membership or leadership 
        criteria or oath of allegiance to God and country of the Boy 
        Scouts of America or of the youth group listed in title 36 of 
        the United States Code (as a patriotic society).
            ``(2) Voluntary sponsorship.--Nothing in this section shall 
        be construed to require any school, agency, or a school served 
        by an agency to sponsor any group officially affiliated with the 
        Boy Scouts of America, or any other youth group listed in title 
        36 of the United States Code (as a patriotic society).

    ``(c) Termination of Assistance and Other Action.--
            ``(1) Departmental action.--The Secretary is authorized and 
        directed to effectuate subsection (b) by issuing and securing 
        compliance with rules or orders with respect to a public 
        elementary school, public secondary school, local educational 
        agency, or State educational agency that receives funds made

[[Page 115 STAT. 1982]]

        available through the Department and that denies equal access, 
        or a fair opportunity to meet, or discriminates, as described in 
        subsection (b).
            ``(2) Procedure.--The Secretary shall issue and secure 
        compliance with the rules or orders, under paragraph (1), 
        through the Office for Civil Rights and in a manner consistent 
        with the procedure used by a Federal department or agency under 
        section 602 of the Civil Rights Act of 1964. If the public 
        school or agency does not comply with the rules or orders, then 
        notwithstanding any other provision of law, no funds made 
        available through the Department shall be provided to a school 
        that fails to comply with such rules or orders or to any agency 
        or school served by an agency that fails to comply with such 
        rules or orders.
            ``(3) Judicial review.--Any action taken by the Secretary 
        under paragraph (1) shall be subject to the judicial review 
        described in section 603 of the Civil Rights Act of 1964. Any 
        person aggrieved by the action may obtain that judicial review 
        in the manner, and to the extent, provided in section 603 of 
        such Act.

    ``(d) Definition and Rule.--
            ``(1) Definition.--In this section, the term `youth group' 
        means any group or organization intended to serve young people 
        under the age of 21.
            ``(2) Rule.--For the purpose of this section, an elementary 
        school or secondary school has a limited public forum whenever 
        the school involved grants an offering to, or opportunity for, 
        one or more outside youth or community groups to meet on school 
        premises or in school facilities before or after the hours 
        during which attendance at the school is compulsory.

``SEC. 9526. <<NOTE: 20 USC 7906.>>  GENERAL PROHIBITIONS.

    ``(a) Prohibition.--None of the funds authorized under this Act 
shall be used--
            ``(1) to develop or distribute materials, or operate 
        programs or courses of instruction directed at youth, that are 
        designed to promote or encourage sexual activity, whether 
        homosexual or heterosexual;
            ``(2) to distribute or to aid in the distribution by any 
        organization of legally obscene materials to minors on school 
        grounds;
            ``(3) to provide sex education or HIV-prevention education 
        in schools unless that instruction is age appropriate and 
        includes the health benefits of abstinence; or
            ``(4) to operate a program of contraceptive distribution in 
        schools.

    ``(b) Local Control.--Nothing in this section shall be construed 
to--
            ``(1) authorize an officer or employee of the Federal 
        Government to mandate, direct, review, or control a State, local 
        educational agency, or school's instructional content, 
        curriculum, and related activities;
            ``(2) limit the application of the General Education 
        Provisions Act;
            ``(3) require the distribution of scientifically or 
        medically false or inaccurate materials or to prohibit the 
        distribution of scientifically or medically true or accurate 
        materials; or

[[Page 115 STAT. 1983]]

            ``(4) create any legally enforceable right.

``SEC. 9527. <<NOTE: 20 USC 7907.>>  PROHIBITIONS ON FEDERAL GOVERNMENT 
            AND USE OF FEDERAL FUNDS.

    ``(a) General Prohibition.--Nothing in this Act shall be construed 
to authorize an officer or employee of the Federal Government to 
mandate, direct, or control a State, local educational agency, or 
school's curriculum, program of instruction, or allocation of State or 
local resources, or mandate a State or any subdivision thereof to spend 
any funds or incur any costs not paid for under this Act.
    ``(b) Prohibition on Endorsement of Curriculum.--Notwithstanding any 
other prohibition of Federal law, no funds provided to the Department 
under this Act may be used by the Department to endorse, approve, or 
sanction any curriculum designed to be used in an elementary school or 
secondary school.
    ``(c) Prohibition on Requiring Federal Approval or Certification of 
Standards.--
            ``(1) In general.--Notwithstanding any other provision of 
        Federal law, no State shall be required to have academic content 
        or student academic achievement standards approved or certified 
        by the Federal Government, in order to receive assistance under 
        this Act.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to affect requirements under title I or part 
        A of title VI.

    ``(d) Rule of Construction on Building Standards.--Nothing in this 
Act shall be construed to mandate national school building standards for 
a State, local educational agency, or school.

``SEC. 9528. <<NOTE: 20 USC 7908.>>  ARMED FORCES RECRUITER ACCESS TO 
            STUDENTS AND STUDENT RECRUITING INFORMATION.

    ``(a) Policy.--
            ``(1) Access to student recruiting information.--
        Notwithstanding section 444(a)(5)(B) of the General Education 
        Provisions Act and except as provided in paragraph (2), each 
        local educational agency receiving assistance under this Act 
        shall provide, on a request made by military recruiters or an 
        institution of higher education, access to secondary school 
        students names, addresses, and telephone listings.
            ``(2) Consent.--A secondary school student or the parent of 
        the student may request that the student's name, address, and 
        telephone listing described in paragraph (1) not be released 
        without prior written parental consent, and the local 
        educational agency or private school shall notify parents of the 
        option to make a request and shall comply with any request.
            ``(3) Same access to students.--Each local educational 
        agency receiving assistance under this Act shall provide 
        military recruiters the same access to secondary school students 
        as is provided generally to post secondary educational 
        institutions or to prospective employers of those students.

    ``(b) <<NOTE: Deadline.>>  Notification.--The Secretary, in 
consultation with the Secretary of Defense, shall, not later than 120 
days after the date of enactment of the No Child Left Behind Act of 
2001, notify principals, school administrators, and other educators 
about the requirements of this section.

    ``(c) Exception.--The requirements of this section do not apply to a 
private secondary school that maintains a religious objection

[[Page 115 STAT. 1984]]

to service in the Armed Forces if the objection is verifiable through 
the corporate or other organizational documents or materials of that 
school.
    ``(d) Special Rule.--A local educational agency prohibited by 
Connecticut State law (either explicitly by statute or through statutory 
interpretation by the State Supreme Court or State Attorney General) 
from providing military recruiters with information or access as 
required by this section shall have until May 31, 2002, to comply with 
that requirement.

``SEC. 9529. <<NOTE: 20 USC 7909.>>  PROHIBITION ON FEDERALLY SPONSORED 
            TESTING.

    ``(a) General Prohibition.--Notwithstanding any other provision of 
Federal law and except as provided in subsection (b), no funds provided 
under this Act to the Secretary or to the recipient of any award may be 
used to develop, pilot test, field test, implement, administer, or 
distribute any federally sponsored national test in reading, 
mathematics, or any other subject, unless specifically and explicitly 
authorized by law.
    ``(b) Exceptions.--Subsection (a) shall not apply to international 
comparative assessments developed under the authority of section 
404(a)(6) of the National Education Statistics Act of 1994 and 
administered to only a representative sample of pupils in the United 
States and in foreign nations.

``SEC. 9530. <<NOTE: 20 USC 7910.>>  LIMITATIONS ON NATIONAL TESTING OR 
            CERTIFICATION FOR TEACHERS.

    ``(a) Mandatory National Testing or Certification of Teachers.--
Notwithstanding any other provision of this Act or any other provision 
of law, no funds available to the Department or otherwise available 
under this Act may be used for any purpose relating to a mandatory 
nationwide test or certification of teachers or education 
paraprofessionals, including any planning, development, implementation, 
or administration of such test or certification.
    ``(b) Prohibition on Withholding Funds.--The Secretary is prohibited 
from withholding funds from any State educational agency or local 
educational agency if the State educational agency or local educational 
agency fails to adopt a specific method of teacher or paraprofessional 
certification.

``SEC. 9531. <<NOTE: 20 USC 7911.>>  PROHIBITION ON NATIONWIDE DATABASE.

    ``Nothing in this Act (other than section 1308(b)) shall be 
construed to authorize the development of a nationwide database of 
personally identifiable information on individuals involved in studies 
or other collections of data under this Act.

``SEC. 9532. <<NOTE: 20 USC 7912.>>  UNSAFE SCHOOL CHOICE OPTION.

    ``(a) Unsafe School Choice Policy.--Each State receiving funds under 
this Act shall establish and implement a statewide policy requiring that 
a student attending a persistently dangerous public elementary school or 
secondary school, as determined by the State in consultation with a 
representative sample of local educational agencies, or who becomes a 
victim of a violent criminal offense, as determined by State law, while 
in or on the grounds of a public elementary school or secondary school 
that the student attends, be allowed to attend a safe public elementary 
school or secondary school within the local educational agency, 
including a public charter school.

[[Page 115 STAT. 1985]]

    ``(b) Certification.--As a condition of receiving funds under this 
Act, a State shall certify in writing to the Secretary that the State is 
in compliance with this section.

``SEC. 9533. <<NOTE: 20 USC 7913.>>  PROHIBITION ON DISCRIMINATION.

    ``Nothing in this Act shall be construed to require, authorize, or 
permit, the Secretary, or a State educational agency, local educational 
agency, or school to grant to a student, or deny or impose upon a 
student, any financial or educational benefit or burden, in violation of 
the fifth or 14th amendments to the Constitution or other law relating 
to discrimination in the provision of federally funded programs or 
activities.

``SEC. 9534. <<NOTE: 20 USC 7914.>>  CIVIL RIGHTS.

    ``(a) In General.--Nothing in this Act shall be construed to permit 
discrimination on the basis of race, color, religion, sex (except as 
otherwise permitted under title IX of the Education Amendments of 1972), 
national origin, or disability in any program funded under this Act.
    ``(b) Rule of Construction.--Nothing in this Act shall be construed 
to require the disruption of services to a child or the displacement of 
a child enrolled in or participating in a program administered by an 
eligible entity, as defined in section 1116 of title I and part B of 
title V, at the commencement of the entity's participation in a grant 
under section 1116 of title I or part B of title V.

``SEC. 9535. <<NOTE: 20 USC 7915.>>  RULEMAKING.

    ``The Secretary shall issue regulations under this Act only to the 
extent that such regulations are necessary to ensure that there is 
compliance with the specific requirements and assurances required by 
this Act.

``SEC. 9536. <<NOTE: 20 USC 7916.>>  SEVERABILITY.

    ``If any provision of this Act is held invalid, the remainder of 
this Act shall be unaffected thereby.

                          ``PART F--EVALUATIONS

``SEC. 9601. <<NOTE: 20 USC 7941.>>  EVALUATIONS.

    ``(a) Reservation of Funds.--Except as provided in subsections (b) 
and (c), the Secretary may reserve not more than 0.5 percent of the 
amount appropriated to carry out each categorical program and 
demonstration project authorized under this Act--
            ``(1) to conduct--
                    ``(A) comprehensive evaluations of the program or 
                project; and
                    ``(B) studies of the effectiveness of the program or 
                project and its administrative impact on schools and 
                local educational agencies;
            ``(2) to evaluate the aggregate short- and long-term effects 
        and cost efficiencies across Federal programs assisted or 
        authorized under this Act and related Federal preschool, 
        elementary, and secondary programs under any other Federal law; 
        and
            ``(3) to increase the usefulness of evaluations of grant 
        recipients in order to ensure the continuous progress of the 
        program or project by improving the quality, timeliness, 
        efficiency, and

[[Page 115 STAT. 1986]]

        use of information relating to performance under the program or 
        project.

    ``(b) Titles I and III Excluded.--The Secretary may not reserve 
under subsection (a) funds appropriated to carry out any program 
authorized under title I or title III.
    ``(c) Evaluation Activities Authorized Elsewhere.--If, under any 
other provision of this Act (other than title I), funds are authorized 
to be reserved or used for evaluation activities with respect to a 
program or project, the Secretary may not reserve additional funds under 
this section for the evaluation of that program or project.''.

   TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES

                             PART A--REPEALS

SEC. 1011. REPEALS.

    The following provisions of law are repealed:
            (1) Part G of title XV of the Higher Education Amendments of 
        1992 (20 U.S.C. 1070a-11 note), relating to the Advanced 
        Placement fee payment program.
            (2) Part B of title VIII of the Higher Education Amendments 
        of 1998 (20 U.S.C. 1070a-11 note), relating to the Advanced 
        Placement incentive program.
            (3) Part F of the General Education Provisions Act (20 
        U.S.C. 1235 et seq.), relating to Ready to Learn Television.
            (4) The following provisions of the Goals 2000: Educate 
        America Act (20 U.S.C. 5801 et seq.):
                    (A) Parts A and C of title II (20 U.S.C. 5821 et 
                seq., 5871), relating to the National Education Goals 
                Panel.
                    (B) Title VI (20 U.S.C. 5951), relating to the 
                International Education Program.
            (5) The following provisions of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6301 et seq.):
                    (A) Titles X through XII (20 U.S.C. 8001 et seq.).
                    (B) Sections 13001 and 13002 (20 U.S.C. 8601, 8602).
                    (C) Title XIV (20 U.S.C. 8801 et seq.).
            (6) The Troops-to-Teachers Program Act of 1999 (20 U.S.C. 
        9301 et seq.).

SEC. 1012. CONFORMING CLERICAL AND TECHNICAL AMENDMENTS.

    The table of contents in section 1(b) of the Goals 2000: Educate 
America Act (20 U.S.C. 5801 note) is amended by striking the items 
relating to the following provisions:
            (1) Parts A and C of title II (including the items relating 
        to sections within those parts).
            (2) Sections 231, 232, 234, and 235.
            (3) Titles III through VI (including the items relating to 
        sections within those titles).

[[Page 115 STAT. 1987]]

                         PART B--REDESIGNATIONS

SEC. 1021. COMPREHENSIVE REGIONAL ASSISTANCE CENTERS.

    (a) In <<NOTE: 20 USC 6053-6053d.>>  General.--Part A of title XIII 
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8621 et 
seq.) is transferred to and redesignated as part K of the Educational 
Research, Development, Dissemination, and Improvement Act of 1994.

    (b) <<NOTE: 20 USC 6053-6053d.>>  Sections.--Sections 13101 through 
13105 of such part are redesignated as sections 1001 through 1005, 
respectively.

    (c) Defined <<NOTE: 20 USC 6053e.>>  Terms.--Part K of the 
Educational Research, Development, Dissemination, and Improvement Act of 
1994 (as transferred and redesignated by this section) is amended by 
adding at the end the following new section:

``SEC. 1006. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 9101 of 
the Elementary and Secondary Education Act of 1965 shall apply.''.

SEC. 1022. NATIONAL DIFFUSION NETWORK.

    (a) In <<NOTE: 20 USC 6054, 6054a.>>  General.--Part B of title XIII 
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8651 et 
seq.) is transferred to and redesignated as part L of the Educational 
Research, Development, Dissemination, and Improvement Act of 1994.

    (b) Sections.--Sections <<NOTE: 20 USC 6054, 6054a.>>  13201 and 
13102 of such part are redesignated as sections 1011 and 1012, 
respectively.

    (c) Defined <<NOTE: 20 USC 6054b.>>  Terms.--Part L of the 
Educational Research, Development, Dissemination, and Improvement Act of 
1994 (as transferred and redesignated by this section) is amended by 
adding at the end the following new section:

``SEC. 1013. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 9101 of 
the Elementary and Secondary Education Act of 1965 shall apply.''.

SEC. 1023. EISENHOWER REGIONAL MATHEMATICS AND SCIENCE EDUCATION 
            CONSORTIA.

    (a) In <<NOTE: 20 USC 6055-6055g.>>  General.--Part C of title XIII 
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8671 et 
seq.) is transferred to and redesignated as part M of the Educational 
Research, Development, Dissemination, and Improvement Act of 1994.

    (b) Sections.--Sections <<NOTE: 20 USC 6055-6055g.>>  13301 through 
13108 of such part are redesignated as sections 1021 through 1028, 
respectively.

    (c) Defined <<NOTE: 20 USC 6055h.>>  Terms.--Part M of the 
Educational Research, Development, Dissemination, and Improvement Act of 
1994 (as transferred and redesignated by this section) is amended by 
adding at the end the following new section:

``SEC. 1029. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 9101 of 
the Elementary and Secondary Education Act of 1965 shall apply.''.

SEC. 1024. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.

    (a) In <<NOTE: 20 USC 6056.>>  General.--Part D of title XIII of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8701) is 
transferred

[[Page 115 STAT. 1988]]

to and redesignated as part N of the Educational Research, Development, 
Dissemination, and Improvement Act of 1994.

    (b) <<NOTE: 20 USC 6056.>>  Sections.--Section 13401 of such part is 
redesignated as section 1031.

    (c) Defined <<NOTE: 20 USC 6056a.>>  Terms.--Part N of the 
Educational Research, Development, Dissemination, and Improvement Act of 
1994 (as transferred and redesignated by this section) is amended by 
adding at the end the following new section:

``SEC. 1032. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 9101 of 
the Elementary and Secondary Education Act of 1965 shall apply.''.

SEC. 1025. CONFORMING AMENDMENTS.

    (a) Parts K Through M.--Parts K through M of the Educational 
Research, Development, Dissemination, and Improvement Act of 1994 (as 
transferred and redesignated by sections 1021 through 1024 of this Act) 
are amended as follows:
            (1) Insert ``of such Act'' in--
                    (A) section <<NOTE: 20 USC 6053a.>>  1002(a)(1)(A), 
                after ``title I''; and
                    (B) section 1002(a)(1)(B), after ``section 1114''.
            (2) Insert ``of the Elementary and Secondary Education Act 
        of 1965 (as such Act was in effect on the day before the date of 
        enactment of the No Child Left Behind Act of 2001)'' in--
                    (A) sections <<NOTE: 20 USC 6053, 6054.>>  
                1001(a)(2)(A) and 1011(e)(1), after ``title I'';
                    (B) sections 1002(b)(1) and section 1011(g)(3)(A), 
                after ``section 1114''; and
                    (C) in section 1011(e)(3), after ``title III''.
            (3) In section 1011(a)(1), strike ``(hereafter referred to 
        in this Act as `NDN')''.
            (4) In <<NOTE: 20 USC 6055f.>>  subsections (c) and (g)(1) 
        of section 1011 and in section 1027(1)(E), strike ``of the 
        Educational Research, Development, Dissemination, and 
        Improvement Act of 1994''.
            (5) In subsections (a)(2)(A) and (d) of section 1011, strike 
        ``part A'' and insert ``part K''.
            (6) In sections 1002(a)(4) and 1011(e)(3), strike ``part C'' 
        and insert ``part M''.
            (7) In section 1002(a), strike ``section 13101(a)'' and 
        insert ``section 1001(a)''.
            (8) In <<NOTE: 20 USC 6053b.>>  section 1003(b)(1), strike 
        ``section 13102'' and insert ``section 1002''.
            (9) In section <<NOTE: 20 USC 6053c.>>  1004(b)(1), strike 
        ``section 13105'' and insert ``section 1005''.
            (10) In sections 1002(a)(7) and 1003(b)(2), strike ``section 
        13201'' and insert ``section 1011''.
            (11) In section <<NOTE: 20 USC 6055a.>>  1022(2) and (3), 
        strike ``section 13301(a)(1)'' and insert ``section 
        1021(a)(1)''.
            (12) In section 1027(4), strike ``section 13301'' and insert 
        ``section 1021''.
            (13) <<NOTE: 20 USC 6055d.>>  In subsections (a) and (b) of 
        section 1025, strike ``section 13303'' and insert ``section 
        1023''.
            (14) In the text preceding paragraph (1) of section 1022, 
        strike ``section 13304'' and insert ``section 1024''.
            (15) In section <<NOTE: 20 USC 6055.>>  1021(a)(3), strike 
        ``section 13308'' and insert ``section 1028''.

[[Page 115 STAT. 1989]]

            (16) <<NOTE: 20 USC 6053b, 6054.>>  In sections 1003(b)(2) 
        and 1011(f)(4), strike ``section 13401'' and insert ``section 
        1031''.
            (17) Strike ``this Act'' and insert ``the Elementary and 
        Secondary Education Act of 1965 (as such Act was in effect on 
        the day before the date of enactment of the No Child Left Behind 
        Act of 2001)'' in--
                    (A) section <<NOTE: 20 USC 6053.>>  1001(a)(1) (the 
                first occurrence only);
                    (B) paragraphs (1) through (3) of section 1001(c);
                    (C) paragraphs <<NOTE: 20 USC 6053a.>>  (1), (2), 
                (6), and (8) of section 1002(a);
                    (D) section 1011(e); and
                    (E) section <<NOTE: 20 USC 6056.>>  1031(2).
            (18) In paragraphs <<NOTE: 20 USC 6053c.>>  (1) and (2) of 
        section 1004(b), strike ``this Act'' and insert ``the Elementary 
        and Secondary Education Act of 1965''.
            (19) In section 1001(a)(1) (the second occurrence only) and 
        in section 1002(a)(1)(C), strike ``this Act'' and insert ``such 
        Act''.
            (20) Section 1011 is amended--
                    (A) in subsection (a)(1), by striking ``In order to 
                implement the purposes of this title, the'' and 
                inserting ``The''; and
                    (B) in subsection (f)(5), by striking ``to achieve 
                the purposes of this title''.
            (21) <<NOTE: 20 USC 6055a.>>  In section 1022(1), strike ``, 
        the Eisenhower National Clearinghouse for Science and 
        Mathematics Education established under section 2102(b)''.
            (22) In section <<NOTE: 20 USC 6055e.>>  1026(a), strike 
        ``section 14701'' and insert ``section 9601''.

    (b) Title XIII Heading.--The Elementary and Secondary Education Act 
of 1965 is amended by striking the heading of title XIII.

 PART <<NOTE: McKinney-Vento Homeless Education Assistance Improvements 
Act of 2001.>>  C--HOMELESS EDUCATION

SEC. 1031. <<NOTE: 42 USC 11301 note.>>  SHORT TITLE.

    This part may be cited as the ``McKinney-Vento Homeless Education 
Assistance Improvements Act of 2001''.

SEC. 1032. EDUCATION FOR HOMELESS CHILDREN AND YOUTHS.

    Subtitle B of title VII of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11431 et seq.) is amended to read as follows:

        ``Subtitle B--Education for Homeless Children and Youths

``SEC. 721. <<NOTE: 42 USC 11431.>>  STATEMENT OF POLICY.

    ``The following is the policy of the Congress:
            ``(1) Each State educational agency shall ensure that each 
        child of a homeless individual and each homeless youth has equal 
        access to the same free, appropriate public education, including 
        a public preschool education, as provided to other children and 
        youths.
            ``(2) In any State that has a compulsory residency 
        requirement as a component of the State's compulsory school 
        attendance laws or other laws, regulations, practices, or 
        policies that may act as a barrier to the enrollment, 
        attendance, or success in school of homeless children and 
        youths, the State will review and undertake steps to revise such 
        laws, regulations, practices,

[[Page 115 STAT. 1990]]

        or policies to ensure that homeless children and youths are 
        afforded the same free, appropriate public education as provided 
        to other children and youths.
            ``(3) Homelessness alone is not sufficient reason to 
        separate students from the mainstream school environment.
            ``(4) Homeless children and youths should have access to the 
        education and other services that such children and youths need 
        to ensure that such children and youths have an opportunity to 
        meet the same challenging State student academic achievement 
        standards to which all students are held.

``SEC. 722. <<NOTE: 42 USC 11432.>>  GRANTS FOR STATE AND LOCAL 
            ACTIVITIES FOR THE EDUCATION OF HOMELESS CHILDREN AND 
            YOUTHS.

    ``(a) General Authority.--The Secretary is authorized to make grants 
to States in accordance with the provisions of this section to enable 
such States to carry out the activities described in subsections (d) 
through (g).
    ``(b) Application.--No State may receive a grant under this section 
unless the State educational agency submits an application to the 
Secretary at such time, in such manner, and containing or accompanied by 
such information as the Secretary may reasonably require.
    ``(c) Allocation and Reservations.--
            ``(1) Allocation.--(A) Subject to subparagraph (B), the 
        Secretary is authorized to allot to each State an amount that 
        bears the same ratio to the amount appropriated for such year 
        under section 726 that remains after the Secretary reserves 
        funds under paragraph (2) and uses funds to carry out section 
        724(d) and (h), as the amount allocated under section 1122 of 
        the Elementary and Secondary Education Act of 1965 to the State 
        for that year bears to the total amount allocated under section 
        1122 of such Act to all States for that year, except that no 
        State shall receive less than the greater of--
                    ``(i) $150,000;
                    ``(ii) one-fourth of 1 percent of the amount 
                appropriated under section 726 for that year; or
                    ``(iii) the amount such State received under this 
                section for fiscal year 2001.
            ``(B) If there are insufficient funds in a fiscal year to 
        allot to each State the minimum amount under subparagraph (A), 
        the Secretary shall ratably reduce the allotments to all States 
        based on the proportionate share that each State received under 
        this subsection for the preceding fiscal year.
            ``(2) Reservations.--(A) The Secretary is authorized to 
        reserve 0.1 percent of the amount appropriated for each fiscal 
        year under section 726 to be allocated by the Secretary among 
        the United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands, according to their 
        respective need for assistance under this subtitle, as 
        determined by the Secretary.
            ``(B)(i) The Secretary shall transfer 1 percent of the 
        amount appropriated for each fiscal year under section 726 to 
        the Department of the Interior for programs for Indian students 
        served by schools funded by the Secretary of the Interior,

[[Page 115 STAT. 1991]]

        as determined under the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450 et seq.), that are consistent with 
        the purposes of the programs described in this subtitle.
            ``(ii) The Secretary and the Secretary of the Interior shall 
        enter into an agreement, consistent with the requirements of 
        this subtitle, for the distribution and use of the funds 
        described in clause (i) under terms that the Secretary 
        determines best meet the purposes of the programs described in 
        this subtitle. Such agreement shall set forth the plans of the 
        Secretary of the Interior for the use of the amounts 
        transferred, including appropriate goals, objectives, and 
        milestones.
            ``(3) State defined.--For purposes of this subsection, the 
        term `State' does not include the United States Virgin Islands, 
        Guam, American Samoa, or the Commonwealth of the Northern 
        Mariana Islands.

    ``(d) Activities.--Grants under this section shall be used for the 
following:
            ``(1) To carry out the policies set forth in section 721 in 
        the State.
            ``(2) To provide activities for, and services to, homeless 
        children, including preschool-aged homeless children, and youths 
        that enable such children and youths to enroll in, attend, and 
        succeed in school, or, if appropriate, in preschool programs.
            ``(3) To establish or designate an Office of Coordinator for 
        Education of Homeless Children and Youths in the State 
        educational agency in accordance with subsection (f).
            ``(4) To prepare and carry out the State plan described in 
        subsection (g).
            ``(5) To develop and implement professional development 
        programs for school personnel to heighten their awareness of, 
        and capacity to respond to, specific problems in the education 
        of homeless children and youths.

    ``(e) State and Local Subgrants.--
            ``(1) Minimum disbursements by states.--From the sums made 
        available each year to carry out this subtitle, the State 
        educational agency shall distribute not less than 75 percent in 
        subgrants to local educational agencies for the purposes of 
        carrying out section 723, except that States funded at the 
        minimum level set forth in subsection (c)(1) shall distribute 
        not less than 50 percent in subgrants to local educational 
        agencies for the purposes of carrying out section 723.
            ``(2) Use by state educational agency.--A State educational 
        agency may use funds made available for State use under this 
        subtitle to conduct activities under subsection (f) directly or 
        through grants or contracts.
            ``(3) Prohibition on segregating homeless students.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) and section 723(a)(2)(B)(ii), in 
                providing a free public education to a homeless child or 
                youth, no State receiving funds under this subtitle 
                shall segregate such child or youth in a separate 
                school, or in a separate program within a school, based 
                on such child's or youth's status as homeless.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                paragraphs (1)(J)(i) and (3) of subsection (g), section 
                723(a)(2), and any other provision of this subtitle 
                relating to the placement of homeless children or youths 
                in schools,

[[Page 115 STAT. 1992]]

                a State that has a separate school for homeless children 
                or youths that was operated in fiscal year 2000 in a 
                covered county shall be eligible to receive funds under 
                this subtitle for programs carried out in such school 
                if--
                          ``(i) the school meets the requirements of 
                      subparagraph (C);
                          ``(ii) any local educational agency serving a 
                      school that the homeless children and youths 
                      enrolled in the separate school are eligible to 
                      attend meets the requirements of subparagraph (E); 
                      and
                          ``(iii) the State is otherwise eligible to 
                      receive funds under this subtitle.
                    ``(C) School requirements.--For the State to be 
                eligible under subparagraph (B) to receive funds under 
                this subtitle, the school described in such subparagraph 
                shall--
                          ``(i) provide written notice, at the time any 
                      child or youth seeks enrollment in such school, 
                      and at least twice annually while the child or 
                      youth is enrolled in such school, to the parent or 
                      guardian of the child or youth (or, in the case of 
                      an unaccompanied youth, the youth) that--
                                    ``(I) shall be signed by the parent 
                                or guardian (or, in the case of an 
                                unaccompanied youth, the youth);
                                    ``(II) sets forth the general rights 
                                provided under this subtitle;
                                    ``(III) specifically states--
                                            ``(aa) the choice of schools 
                                        homeless children and youths are 
                                        eligible to attend, as provided 
                                        in subsection (g)(3)(A);
                                            ``(bb) that no homeless 
                                        child or youth is required to 
                                        attend a separate school for 
                                        homeless children or youths;
                                            ``(cc) that homeless 
                                        children and youths shall be 
                                        provided comparable services 
                                        described in subsection (g)(4), 
                                        including transportation 
                                        services, educational services, 
                                        and meals through school meals 
                                        programs; and
                                            ``(dd) that homeless 
                                        children and youths should not 
                                        be stigmatized by school 
                                        personnel; and
                                    ``(IV) provides contact information 
                                for the local liaison for homeless 
                                children and youths and the State 
                                Coordinator for Education of Homeless 
                                Children and Youths;
                          ``(ii)(I) provide assistance to the parent or 
                      guardian of each homeless child or youth (or, in 
                      the case of an unaccompanied youth, the youth) to 
                      exercise the right to attend the parent's or 
                      guardian's (or youth's) choice of schools, as 
                      provided in subsection (g)(3)(A); and
                          ``(II) coordinate with the local educational 
                      agency with jurisdiction for the school selected 
                      by the parent or guardian (or youth), to provide 
                      transportation and other necessary services;

[[Page 115 STAT. 1993]]

                          ``(iii) ensure that the parent or guardian 
                      (or, in the case of an unaccompanied youth, the 
                      youth) shall receive the information required by 
                      this subparagraph in a manner and form 
                      understandable to such parent or guardian (or 
                      youth), including, if necessary and to the extent 
                      feasible, in the native language of such parent or 
                      guardian (or youth); and
                          ``(iv) demonstrate in the school's application 
                      for funds under this subtitle that such school--
                                    ``(I) is complying with clauses (i) 
                                and (ii); and
                                    ``(II) is meeting (as of the date of 
                                submission of the application) the same 
                                Federal and State standards, 
                                regulations, and mandates as other 
                                public schools in the State (such as 
                                complying with sections 1111 and 1116 of 
                                the Elementary and Secondary Education 
                                Act of 1965 and providing a full range 
                                of education and related services, 
                                including services applicable to 
                                students with disabilities).
                    ``(D) School ineligibility.--A separate school 
                described in subparagraph (B) that fails to meet the 
                standards, regulations, and mandates described in 
                subparagraph (C)(iv)(II) shall not be eligible to 
                receive funds under this subtitle for programs carried 
                out in such school after the first date of such failure.
                    ``(E) Local educational agency requirements.--For 
                the State to be eligible to receive the funds described 
                in subparagraph (B), the local educational agency 
                described in subparagraph (B)(ii) shall--
                          ``(i) implement a coordinated system for 
                      ensuring that homeless children and youths--
                                    ``(I) are advised of the choice of 
                                schools provided in subsection 
                                (g)(3)(A);
                                    ``(II) are immediately enrolled, in 
                                accordance with subsection (g)(3)(C), in 
                                the school selected under subsection 
                                (g)(3)(A); and
                                    ``(III) are promptly provided 
                                necessary services described in 
                                subsection (g)(4), including 
                                transportation, to allow homeless 
                                children and youths to exercise their 
                                choices of schools under subsection 
                                (g)(3)(A);
                          ``(ii) document that written notice has been 
                      provided--
                                    ``(I) in accordance with 
                                subparagraph (C)(i) for each child or 
                                youth enrolled in a separate school 
                                under subparagraph (B); and
                                    ``(II) in accordance with subsection 
                                (g)(6)(A)(v);
                          ``(iii) prohibit schools within the agency's 
                      jurisdiction from referring homeless children or 
                      youths to, or requiring homeless children and 
                      youths to enroll in or attend, a separate school 
                      described in subparagraph (B);
                          ``(iv) identify and remove any barriers that 
                      exist in schools within the agency's jurisdiction 
                      that may have contributed to the creation or 
                      existence of separate schools described in 
                      subparagraph (B); and

[[Page 115 STAT. 1994]]

                          ``(v) not use funds received under this 
                      subtitle to establish--
                                    ``(I) new or additional separate 
                                schools for homeless children or youths; 
                                or
                                    ``(II) new or additional sites for 
                                separate schools for homeless children 
                                or youths, other than the sites occupied 
                                by the schools described in subparagraph 
                                (B) in fiscal year 2000.
                    ``(F) Report.--
                          ``(i) Preparation.--The Secretary shall 
                      prepare a report on the separate schools and local 
                      educational agencies described in subparagraph (B) 
                      that receive funds under this subtitle in 
                      accordance with this paragraph. The report shall 
                      contain, at a minimum, information on--
                                    ``(I) compliance with all 
                                requirements of this paragraph;
                                    ``(II) barriers to school access in 
                                the school districts served by the local 
                                educational agencies; and
                                    ``(III) the progress the separate 
                                schools are making in integrating 
                                homeless children and youths into the 
                                mainstream school environment, including 
                                the average length of student enrollment 
                                in such schools.
                          ``(ii) Compliance with information requests.--
                      For purposes of enabling the Secretary to prepare 
                      the report, the separate schools and local 
                      educational agencies shall cooperate with the 
                      Secretary and the State Coordinator for Education 
                      of Homeless Children and Youths established in the 
                      State under subsection (d)(3), and shall comply 
                      with any requests for information by the Secretary 
                      and State Coordinator for such State.
                          ``(iii) <<NOTE: Deadline.>>  Submission.--Not 
                      later than 2 years after the date of enactment of 
                      the McKinney-Vento Homeless Education Assistance 
                      Improvements Act of 2001, the Secretary shall 
                      submit the report described in clause (i) to--
                                    ``(I) the President;
                                    ``(II) the Committee on Education 
                                and the Workforce of the House of 
                                Representatives; and
                                    ``(III) the Committee on Health, 
                                Education, Labor, and Pensions of the 
                                Senate.
                    ``(G) Definition.--For purposes of this paragraph, 
                the term `covered county' means--
                          ``(i) San Joaquin County, California;
                          ``(ii) Orange County, California;
                          ``(iii) San Diego County, California; and
                          ``(iv) Maricopa County, Arizona.

    ``(f) Functions of the Office of Coordinator.--The Coordinator for 
Education of Homeless Children and Youths established in each State 
shall--
            ``(1) gather reliable, valid, and comprehensive information 
        on the nature and extent of the problems homeless children and 
        youths have in gaining access to public preschool programs and 
        to public elementary schools and secondary schools, the 
        difficulties in identifying the special needs of such children

[[Page 115 STAT. 1995]]

        and youths, any progress made by the State educational agency 
        and local educational agencies in the State in addressing such 
        problems and difficulties, and the success of the programs under 
        this subtitle in allowing homeless children and youths to enroll 
        in, attend, and succeed in, school;
            ``(2) develop and carry out the State plan described in 
        subsection (g);
            ``(3) collect and transmit to the Secretary, at such time 
        and in such manner as the Secretary may require, a report 
        containing such information as the Secretary determines is 
        necessary to assess the educational needs of homeless children 
        and youths within the State;
            ``(4) facilitate coordination between the State educational 
        agency, the State social services agency, and other agencies 
        (including agencies providing mental health services) to provide 
        services to homeless children, including preschool-aged homeless 
        children, and youths, and to families of such children and 
        youths;
            ``(5) in order to improve the provision of comprehensive 
        education and related services to homeless children and youths 
        and their families, coordinate and collaborate with--
                    ``(A) educators, including child development and 
                preschool program personnel;
                    ``(B) providers of services to homeless and runaway 
                children and youths and homeless families (including 
                domestic violence agencies, shelter operators, 
                transitional housing facilities, runaway and homeless 
                youth centers, and transitional living programs for 
                homeless youths);
                    ``(C) local educational agency liaisons designated 
                under subsection (g)(1)(J)(ii) for homeless children and 
                youths; and
                    ``(D) community organizations and groups 
                representing homeless children and youths and their 
                families; and
            ``(6) provide technical assistance to local educational 
        agencies in coordination with local educational agency liaisons 
        designated under subsection (g)(1)(J)(ii), to ensure that local 
        educational agencies comply with the requirements of section 
        722(e)(3) and paragraphs (3) through (7) of subsection (g).

    ``(g) State Plan.--
            ``(1) In general.--Each State shall submit to the Secretary 
        a plan to provide for the education of homeless children and 
        youths within the State. Such plan shall include the following:
                    ``(A) A description of how such children and youths 
                are (or will be) given the opportunity to meet the same 
                challenging State academic achievement standards all 
                students are expected to meet.
                    ``(B) A description of the procedures the State 
                educational agency will use to identify such children 
                and youths in the State and to assess their special 
                needs.
                    ``(C) A description of procedures for the prompt 
                resolution of disputes regarding the educational 
                placement of homeless children and youths.
                    ``(D) A description of programs for school personnel 
                (including principals, attendance officers, teachers, 
                enrollment personnel, and pupil services personnel) to 
                heighten the awareness of such personnel of the specific 
                needs of runaway and homeless youths.

[[Page 115 STAT. 1996]]

                    ``(E) A description of procedures that ensure that 
                homeless children and youths who meet the relevant 
                eligibility criteria are able to participate in Federal, 
                State, or local food programs.
                    ``(F) A description of procedures that ensure that--
                          ``(i) homeless children have equal access to 
                      the same public preschool programs, administered 
                      by the State agency, as provided to other children 
                      in the State;
                          ``(ii) homeless youths and youths separated 
                      from the public schools are identified and 
                      accorded equal access to appropriate secondary 
                      education and support services; and
                          ``(iii) homeless children and youths who meet 
                      the relevant eligibility criteria are able to 
                      participate in Federal, State, or local before- 
                      and after-school care programs.
                    ``(G) Strategies to address problems identified in 
                the report provided to the Secretary under subsection 
                (f)(3).
                    ``(H) Strategies to address other problems with 
                respect to the education of homeless children and 
                youths, including problems resulting from enrollment 
                delays that are caused by--
                          ``(i) immunization and medical records 
                      requirements;
                          ``(ii) residency requirements;
                          ``(iii) lack of birth certificates, school 
                      records, or other documentation;
                          ``(iv) guardianship issues; or
                          ``(v) uniform or dress code requirements.
                    ``(I) A demonstration that the State educational 
                agency and local educational agencies in the State have 
                developed, and shall review and revise, policies to 
                remove barriers to the enrollment and retention of 
                homeless children and youths in schools in the State.
                    ``(J) Assurances that--
                          ``(i) the State educational agency and local 
                      educational agencies in the State will adopt 
                      policies and practices to ensure that homeless 
                      children and youths are not stigmatized or 
                      segregated on the basis of their status as 
                      homeless;
                          ``(ii) local educational agencies will 
                      designate an appropriate staff person, who may 
                      also be a coordinator for other Federal programs, 
                      as a local educational agency liaison for homeless 
                      children and youths, to carry out the duties 
                      described in paragraph (6)(A); and
                          ``(iii) the State and its local educational 
                      agencies will adopt policies and practices to 
                      ensure that transportation is provided, at the 
                      request of the parent or guardian (or in the case 
                      of an unaccompanied youth, the liaison), to and 
                      from the school of origin, as determined in 
                      paragraph (3)(A), in accordance with the 
                      following, as applicable:
                                    ``(I) If the homeless child or youth 
                                continues to live in the area served by 
                                the local educational agency in which 
                                the school of origin is located,

[[Page 115 STAT. 1997]]

                                the child's or youth's transportation to 
                                and from the school of origin shall be 
                                provided or arranged by the local 
                                educational agency in which the school 
                                of origin is located.
                                    ``(II) If the homeless child's or 
                                youth's living arrangements in the area 
                                served by the local educational agency 
                                of origin terminate and the child or 
                                youth, though continuing his or her 
                                education in the school of origin, 
                                begins living in an area served by 
                                another local educational agency, the 
                                local educational agency of origin and 
                                the local educational agency in which 
                                the homeless child or youth is living 
                                shall agree upon a method to apportion 
                                the responsibility and costs for 
                                providing the child with transportation 
                                to and from the school of origin. If the 
                                local educational agencies are unable to 
                                agree upon such method, the 
                                responsibility and costs for 
                                transportation shall be shared equally.
            ``(2) Compliance.--
                    ``(A) In general.--Each plan adopted under this 
                subsection shall also describe how the State will ensure 
                that local educational agencies in the State will comply 
                with the requirements of paragraphs (3) through (7).
                    ``(B) Coordination.--Such plan shall indicate what 
                technical assistance the State will furnish to local 
                educational agencies and how compliance efforts will be 
                coordinated with the local educational agency liaisons 
                designated under paragraph (1)(J)(ii).
            ``(3) Local educational agency requirements.--
                    ``(A) In general.--The local educational agency 
                serving each child or youth to be assisted under this 
                subtitle shall, according to the child's or youth's best 
                interest--
                          ``(i) continue the child's or youth's 
                      education in the school of origin for the duration 
                      of homelessness--
                                    ``(I) in any case in which a family 
                                becomes homeless between academic years 
                                or during an academic year; or
                                    ``(II) for the remainder of the 
                                academic year, if the child or youth 
                                becomes permanently housed during an 
                                academic year; or
                          ``(ii) enroll the child or youth in any public 
                      school that nonhomeless students who live in the 
                      attendance area in which the child or youth is 
                      actually living are eligible to attend.
                    ``(B) Best interest.--In determining the best 
                interest of the child or youth under subparagraph (A), 
                the local educational agency shall--
                          ``(i) to the extent feasible, keep a homeless 
                      child or youth in the school of origin, except 
                      when doing so is contrary to the wishes of the 
                      child's or youth's parent or guardian;
                          ``(ii) provide a written explanation, 
                      including a statement regarding the right to 
                      appeal under subparagraph (E), to the homeless 
                      child's or youth's parent or guardian, if the 
                      local educational agency sends such child or youth 
                      to a school other than the school of

[[Page 115 STAT. 1998]]

                      origin or a school requested by the parent or 
                      guardian; and
                          ``(iii) in the case of an unaccompanied youth, 
                      ensure that the homeless liaison designated under 
                      paragraph (1)(J)(ii) assists in placement or 
                      enrollment decisions under this subparagraph, 
                      considers the views of such unaccompanied youth, 
                      and provides notice to such youth of the right to 
                      appeal under subparagraph (E).
                    ``(C) Enrollment.--(i) The school selected in 
                accordance with this paragraph shall immediately enroll 
                the homeless child or youth, even if the child or youth 
                is unable to produce records normally required for 
                enrollment, such as previous academic records, medical 
                records, proof of residency, or other documentation.
                    ``(ii) The enrolling school shall immediately 
                contact the school last attended by the child or youth 
                to obtain relevant academic and other records.
                    ``(iii) If the child or youth needs to obtain 
                immunizations, or immunization or medical records, the 
                enrolling school shall immediately refer the parent or 
                guardian of the child or youth to the local educational 
                agency liaison designated under paragraph (1)(J)(ii), 
                who shall assist in obtaining necessary immunizations, 
                or immunization or medical records, in accordance with 
                subparagraph (D).
                    ``(D) Records.--Any record ordinarily kept by the 
                school, including immunization or medical records, 
                academic records, birth certificates, guardianship 
                records, and evaluations for special services or 
                programs, regarding each homeless child or youth shall 
                be maintained--
                          ``(i) so that the records are available, in a 
                      timely fashion, when a child or youth enters a new 
                      school or school district; and
                          ``(ii) in a manner consistent with section 444 
                      of the General Education Provisions Act (20 U.S.C. 
                      1232g).
                    ``(E) Enrollment disputes.--If a dispute arises over 
                school selection or enrollment in a school--
                          ``(i) the child or youth shall be immediately 
                      admitted to the school in which enrollment is 
                      sought, pending resolution of the dispute;
                          ``(ii) the parent or guardian of the child or 
                      youth shall be provided with a written explanation 
                      of the school's decision regarding school 
                      selection or enrollment, including the rights of 
                      the parent, guardian, or youth to appeal the 
                      decision;
                          ``(iii) the child, youth, parent, or guardian 
                      shall be referred to the local educational agency 
                      liaison designated under paragraph (1)(J)(ii), who 
                      shall carry out the dispute resolution process as 
                      described in paragraph (1)(C) as expeditiously as 
                      possible after receiving notice of the dispute; 
                      and
                          ``(iv) in the case of an unaccompanied youth, 
                      the homeless liaison shall ensure that the youth 
                      is immediately enrolled in school pending 
                      resolution of the dispute.

[[Page 115 STAT. 1999]]

                    ``(F) Placement choice.--The choice regarding 
                placement shall be made regardless of whether the child 
                or youth lives with the homeless parents or has been 
                temporarily placed elsewhere.
                    ``(G) School of origin defined.--In this paragraph, 
                the term `school of origin' means the school that the 
                child or youth attended when permanently housed or the 
                school in which the child or youth was last enrolled.
                    ``(H) Contact information.--Nothing in this subtitle 
                shall prohibit a local educational agency from requiring 
                a parent or guardian of a homeless child to submit 
                contact information.
            ``(4) Comparable services.--Each homeless child or youth to 
        be assisted under this subtitle shall be provided services 
        comparable to services offered to other students in the school 
        selected under paragraph (3), including the following:
                    ``(A) Transportation services.
                    ``(B) Educational services for which the child or 
                youth meets the eligibility criteria, such as services 
                provided under title I of the Elementary and Secondary 
                Education Act of 1965 or similar State or local 
                programs, educational programs for children with 
                disabilities, and educational programs for students with 
                limited English proficiency.
                    ``(C) Programs in vocational and technical 
                education.
                    ``(D) Programs for gifted and talented students.
                    ``(E) School nutrition programs.
            ``(5) Coordination.--
                    ``(A) In general.--Each local educational agency 
                serving homeless children and youths that receives 
                assistance under this subtitle shall coordinate--
                          ``(i) the provision of services under this 
                      subtitle with local social services agencies and 
                      other agencies or programs providing services to 
                      homeless children and youths and their families, 
                      including services and programs funded under the 
                      Runaway and Homeless Youth Act (42 U.S.C. 5701 et 
                      seq.); and
                          ``(ii) with other local educational agencies 
                      on interdistrict issues, such as transportation or 
                      transfer of school records.
                    ``(B) Housing assistance.--If applicable, each State 
                educational agency and local educational agency that 
                receives assistance under this subtitle shall coordinate 
                with State and local housing agencies responsible for 
                developing the comprehensive housing affordability 
                strategy described in section 105 of the Cranston-
                Gonzalez National Affordable Housing Act (42 U.S.C. 
                12705) to minimize educational disruption for children 
                and youths who become homeless.
                    ``(C) Coordination purpose.--The coordination 
                required under subparagraphs (A) and (B) shall be 
                designed to--
                          ``(i) ensure that homeless children and youths 
                      have access and reasonable proximity to available 
                      education and related support services; and
                          ``(ii) raise the awareness of school personnel 
                      and service providers of the effects of short-term 
                      stays in a shelter and other challenges associated 
                      with homelessness.

[[Page 115 STAT. 2000]]

            ``(6) Local educational agency liaison.--
                    ``(A) Duties.--Each local educational agency liaison 
                for homeless children and youths, designated under 
                paragraph (1)(J)(ii), shall ensure that--
                          ``(i) homeless children and youths are 
                      identified by school personnel and through 
                      coordination activities with other entities and 
                      agencies;
                          ``(ii) homeless children and youths enroll in, 
                      and have a full and equal opportunity to succeed 
                      in, schools of that local educational agency;
                          ``(iii) homeless families, children, and 
                      youths receive educational services for which such 
                      families, children, and youths are eligible, 
                      including Head Start and Even Start programs and 
                      preschool programs administered by the local 
                      educational agency, and referrals to health care 
                      services, dental services, mental health services, 
                      and other appropriate services;
                          ``(iv) the parents or guardians of homeless 
                      children and youths are informed of the 
                      educational and related opportunities available to 
                      their children and are provided with meaningful 
                      opportunities to participate in the education of 
                      their children;
                          ``(v) public notice of the educational rights 
                      of homeless children and youths is disseminated 
                      where such children and youths receive services 
                      under this Act, such as schools, family shelters, 
                      and soup kitchens;
                          ``(vi) enrollment disputes are mediated in 
                      accordance with paragraph (3)(E); and
                          ``(vii) the parent or guardian of a homeless 
                      child or youth, and any unaccompanied youth, is 
                      fully informed of all transportation services, 
                      including transportation to the school of origin, 
                      as described in paragraph (1)(J)(iii), and is 
                      assisted in accessing transportation to the school 
                      that is selected under paragraph (3)(A).
                    ``(B) Notice.--State coordinators established under 
                subsection (d)(3) and local educational agencies shall 
                inform school personnel, service providers, and 
                advocates working with homeless families of the duties 
                of the local educational agency liaisons.
                    ``(C) Local and state coordination.--Local 
                educational agency liaisons for homeless children and 
                youths shall, as a part of their duties, coordinate and 
                collaborate with State coordinators and community and 
                school personnel responsible for the provision of 
                education and related services to homeless children and 
                youths.
            ``(7) Review and revisions.--
                    ``(A) In general.--Each State educational agency and 
                local educational agency that receives assistance under 
                this subtitle shall review and revise any policies that 
                may act as barriers to the enrollment of homeless 
                children and youths in schools that are selected under 
                paragraph (3).
                    ``(B) Consideration.--In reviewing and revising such 
                policies, consideration shall be given to issues 
                concerning transportation, immunization, residency, 
                birth certificates, school records and other 
                documentation, and guardianship.

[[Page 115 STAT. 2001]]

                    ``(C) Special attention.--Special attention shall be 
                given to ensuring the enrollment and attendance of 
                homeless children and youths who are not currently 
                attending school.

``SEC. 723. <<NOTE: 42 USC 11433.>>  LOCAL EDUCATIONAL AGENCY SUBGRANTS 
            FOR THE EDUCATION OF HOMELESS CHILDREN AND YOUTHS.

    ``(a) General Authority.--
            ``(1) In general.--The State educational agency shall, in 
        accordance with section 722(e), and from amounts made available 
        to such agency under section 726, make subgrants to local 
        educational agencies for the purpose of facilitating the 
        enrollment, attendance, and success in school of homeless 
        children and youths.
            ``(2) Services.--
                    ``(A) In general.--Services under paragraph (1)--
                          ``(i) may be provided through programs on 
                      school grounds or at other facilities;
                          ``(ii) shall, to the maximum extent 
                      practicable, be provided through existing programs 
                      and mechanisms that integrate homeless children 
                      and youths with nonhomeless children and youths; 
                      and
                          ``(iii) shall be designed to expand or improve 
                      services provided as part of a school's regular 
                      academic program, but not to replace such services 
                      provided under such program.
                    ``(B) Services on school grounds.--If services under 
                paragraph (1) are provided on school grounds, schools--
                          ``(i) may use funds under this subtitle to 
                      provide the same services to other children and 
                      youths who are determined by the local educational 
                      agency to be at risk of failing in, or dropping 
                      out of, school, subject to the requirements of 
                      clause (ii); and
                          ``(ii) except as otherwise provided in section 
                      722(e)(3)(B), shall not provide services in 
                      settings within a school that segregate homeless 
                      children and youths from other children and 
                      youths, except as necessary for short periods of 
                      time--
                                    ``(I) for health and safety 
                                emergencies; or
                                    ``(II) to provide temporary, 
                                special, and supplementary services to 
                                meet the unique needs of homeless 
                                children and youths.
            ``(3) Requirement.--Services provided under this section 
        shall not replace the regular academic program and shall be 
        designed to expand upon or improve services provided as part of 
        the school's regular academic program.

    ``(b) Application.--A local educational agency that desires to 
receive a subgrant under this section shall submit an application to the 
State educational agency at such time, in such manner, and containing or 
accompanied by such information as the State educational agency may 
reasonably require. Such application shall include the following:
            ``(1) An assessment of the educational and related needs of 
        homeless children and youths in the area served by such agency 
        (which may be undertaken as part of needs assessments for other 
        disadvantaged groups).

[[Page 115 STAT. 2002]]

            ``(2) A description of the services and programs for which 
        assistance is sought to address the needs identified in 
        paragraph (1).
            ``(3) An assurance that the local educational agency's 
        combined fiscal effort per student, or the aggregate 
        expenditures of that agency and the State with respect to the 
        provision of free public education by such agency for the fiscal 
        year preceding the fiscal year for which the determination is 
        made, was not less than 90 percent of such combined fiscal 
        effort or aggregate expenditures for the second fiscal year 
        preceding the fiscal year for which the determination is made.
            ``(4) An assurance that the applicant complies with, or will 
        use requested funds to comply with, paragraphs (3) through (7) 
        of section 722(g).
            ``(5) A description of policies and procedures, consistent 
        with section 722(e)(3), that the agency will implement to ensure 
        that activities carried out by the agency will not isolate or 
        stigmatize homeless children and youths.

    ``(c) Awards.--
            ``(1) In general.--The State educational agency shall, in 
        accordance with the requirements of this subtitle and from 
        amounts made available to it under section 726, make competitive 
        subgrants to local educational agencies that submit applications 
        under subsection (b). Such subgrants shall be awarded on the 
        basis of the need of such agencies for assistance under this 
        subtitle and the quality of the applications submitted.
            ``(2) Need.--In determining need under paragraph (1), the 
        State educational agency may consider the number of homeless 
        children and youths enrolled in preschool, elementary, and 
        secondary schools within the area served by the local 
        educational agency, and shall consider the needs of such 
        children and youths and the ability of the local educational 
        agency to meet such needs. The State educational agency may also 
        consider the following:
                    ``(A) The extent to which the proposed use of funds 
                will facilitate the enrollment, retention, and 
                educational success of homeless children and youths.
                    ``(B) The extent to which the application--
                          ``(i) reflects coordination with other local 
                      and State agencies that serve homeless children 
                      and youths; and
                          ``(ii) describes how the applicant will meet 
                      the requirements of section 722(g)(3).
                    ``(C) The extent to which the applicant exhibits in 
                the application and in current practice a commitment to 
                education for all homeless children and youths.
                    ``(D) Such other criteria as the State agency 
                determines appropriate.
            ``(3) Quality.--In determining the quality of applications 
        under paragraph (1), the State educational agency shall consider 
        the following:
                    ``(A) The applicant's needs assessment under 
                subsection (b)(1) and the likelihood that the program 
                presented in the application will meet such needs.
                    ``(B) The types, intensity, and coordination of the 
                services to be provided under the program.
                    ``(C) The involvement of parents or guardians of 
                homeless children or youths in the education of their 
                children.

[[Page 115 STAT. 2003]]

                    ``(D) The extent to which homeless children and 
                youths will be integrated within the regular education 
                program.
                    ``(E) The quality of the applicant's evaluation plan 
                for the program.
                    ``(F) The extent to which services provided under 
                this subtitle will be coordinated with other services 
                available to homeless children and youths and their 
                families.
                    ``(G) Such other measures as the State educational 
                agency considers indicative of a high-quality program, 
                such as the extent to which the local educational agency 
                will provide case management or related services to 
                unaccompanied youths.
            ``(4) Duration of grants.--Grants awarded under this section 
        shall be for terms not to exceed 3 years.

    ``(d) Authorized Activities.--A local educational agency may use 
funds awarded under this section for activities that carry out the 
purpose of this subtitle, including the following:
            ``(1) The provision of tutoring, supplemental instruction, 
        and enriched educational services that are linked to the 
        achievement of the same challenging State academic content 
        standards and challenging State student academic achievement 
        standards the State establishes for other children and youths.
            ``(2) The provision of expedited evaluations of the 
        strengths and needs of homeless children and youths, including 
        needs and eligibility for programs and services (such as 
        educational programs for gifted and talented students, children 
        with disabilities, and students with limited English 
        proficiency, services provided under title I of the Elementary 
        and Secondary Education Act of 1965 or similar State or local 
        programs, programs in vocational and technical education, and 
        school nutrition programs).
            ``(3) Professional development and other activities for 
        educators and pupil services personnel that are designed to 
        heighten the understanding and sensitivity of such personnel to 
        the needs of homeless children and youths, the rights of such 
        children and youths under this subtitle, and the specific 
        educational needs of runaway and homeless youths.
            ``(4) The provision of referral services to homeless 
        children and youths for medical, dental, mental, and other 
        health services.
            ``(5) The provision of assistance to defray the excess cost 
        of transportation for students under section 722(g)(4)(A), not 
        otherwise provided through Federal, State, or local funding, 
        where necessary to enable students to attend the school selected 
        under section 722(g)(3).
            ``(6) The provision of developmentally appropriate early 
        childhood education programs, not otherwise provided through 
        Federal, State, or local funding, for preschool-aged homeless 
        children.
            ``(7) The provision of services and assistance to attract, 
        engage, and retain homeless children and youths, and 
        unaccompanied youths, in public school programs and services 
        provided to nonhomeless children and youths.
            ``(8) The provision for homeless children and youths of 
        before- and after-school, mentoring, and summer programs in 
        which a teacher or other qualified individual provides tutoring, 
        homework assistance, and supervision of educational activities.

[[Page 115 STAT. 2004]]

            ``(9) If necessary, the payment of fees and other costs 
        associated with tracking, obtaining, and transferring records 
        necessary to enroll homeless children and youths in school, 
        including birth certificates, immunization or medical records, 
        academic records, guardianship records, and evaluations for 
        special programs or services.
            ``(10) The provision of education and training to the 
        parents of homeless children and youths about the rights of, and 
        resources available to, such children and youths.
            ``(11) The development of coordination between schools and 
        agencies providing services to homeless children and youths, as 
        described in section 722(g)(5).
            ``(12) The provision of pupil services (including violence 
        prevention counseling) and referrals for such services.
            ``(13) Activities to address the particular needs of 
        homeless children and youths that may arise from domestic 
        violence.
            ``(14) The adaptation of space and purchase of supplies for 
        any nonschool facilities made available under subsection (a)(2) 
        to provide services under this subsection.
            ``(15) The provision of school supplies, including those 
        supplies to be distributed at shelters or temporary housing 
        facilities, or other appropriate locations.
            ``(16) The provision of other extraordinary or emergency 
        assistance needed to enable homeless children and youths to 
        attend school.

``SEC. 724. <<NOTE: 42 USC 11434.>>  SECRETARIAL RESPONSIBILITIES.

    ``(a) Review of State Plans.--In reviewing the State plan submitted 
by a State educational agency under section 722(g), the Secretary shall 
use a peer review process and shall evaluate whether State laws, 
policies, and practices described in such plan adequately address the 
problems of homeless children and youths relating to access to education 
and placement as described in such plan.
    ``(b) Technical Assistance.--The Secretary shall provide support and 
technical assistance to a State educational agency to assist such agency 
in carrying out its responsibilities under this subtitle, if requested 
by the State educational agency.
    ``(c) Notice.--The Secretary shall, before the next school year that 
begins after the date of enactment of the McKinney-Vento Homeless 
Education Assistance Improvements Act of 2001, create and disseminate 
nationwide a public notice of the educational rights of homeless 
children and youths and disseminate such notice to other Federal 
agencies, programs, and grantees, including Head Start grantees, Health 
Care for the Homeless grantees, Emergency Food and Shelter grantees, and 
homeless assistance programs administered by the Department of Housing 
and Urban Development.
    ``(d) Evaluation and Dissemination.--The Secretary shall conduct 
evaluation and dissemination activities of programs designed to meet the 
educational needs of homeless elementary and secondary school students, 
and may use funds appropriated under section 726 to conduct such 
activities.
    ``(e) Submission and Distribution.--The Secretary shall require 
applications for grants under this subtitle to be submitted to the 
Secretary not later than the expiration of the 60-day period beginning 
on the date that funds are available for purposes of

[[Page 115 STAT. 2005]]

making such grants and shall make such grants not later than the 
expiration of the 120-day period beginning on such date.
    ``(f) Determination by Secretary.--The Secretary, based on the 
information received from the States and information gathered by the 
Secretary under subsection (h), shall determine the extent to which 
State educational agencies are ensuring that each homeless child and 
homeless youth has access to a free appropriate public education, as 
described in section 721(1).
    ``(g) <<NOTE: Federal Register, publication. Deadline.>>  
Guidelines.--The Secretary shall develop, issue, and publish in the 
Federal Register, not later than 60 days after the date of enactment of 
the McKinney-Vento Homeless Education Assistance Improvements Act of 
2001, school enrollment guidelines for States with respect to homeless 
children and youths. The guidelines shall describe--
            ``(1) successful ways in which a State may assist local 
        educational agencies to immediately enroll homeless children and 
        youths in school; and
            ``(2) how a State can review the State's requirements 
        regarding immunization and medical or school records and make 
        such revisions to the requirements as are appropriate and 
        necessary in order to enroll homeless children and youths in 
        school immediately.

    ``(h) Information.--
            ``(1) In general.--From funds appropriated under section 
        726, the Secretary shall, directly or through grants, contracts, 
        or cooperative agreements, periodically collect and disseminate 
        data and information regarding--
                    ``(A) the number and location of homeless children 
                and youths;
                    ``(B) the education and related services such 
                children and youths receive;
                    ``(C) the extent to which the needs of homeless 
                children and youths are being met; and
                    ``(D) such other data and information as the 
                Secretary determines to be necessary and relevant to 
                carry out this subtitle.
            ``(2) Coordination.--The Secretary shall coordinate such 
        collection and dissemination with other agencies and entities 
        that receive assistance and administer programs under this 
        subtitle.

    ``(i) <<NOTE: Deadline.>>  Report.--Not later than 4 years after the 
date of enactment of the McKinney-Vento Homeless Education Assistance 
Improvements Act of 2001, the Secretary shall prepare and submit to the 
President and the Committee on Education and the Workforce of the House 
of Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate a report on the status of education of homeless 
children and youths, which shall include information on--
            ``(1) the education of homeless children and youths; and
            ``(2) the actions of the Secretary and the effectiveness of 
        the programs supported under this subtitle.

``SEC. 725. <<NOTE: 42 USC 11434a.>>  DEFINITIONS.

    ``For purposes of this subtitle:
            ``(1) The terms `enroll' and `enrollment' include attending 
        classes and participating fully in school activities.
            ``(2) The term `homeless children and youths'--

[[Page 115 STAT. 2006]]

                    ``(A) means individuals who lack a fixed, regular, 
                and adequate nighttime residence (within the meaning of 
                section 103(a)(1)); and
                    ``(B) includes--
                          ``(i) children and youths who are sharing the 
                      housing of other persons due to loss of housing, 
                      economic hardship, or a similar reason; are living 
                      in motels, hotels, trailer parks, or camping 
                      grounds due to the lack of alternative adequate 
                      accommodations; are living in emergency or 
                      transitional shelters; are abandoned in hospitals; 
                      or are awaiting foster care placement;
                          ``(ii) children and youths who have a primary 
                      nighttime residence that is a public or private 
                      place not designed for or ordinarily used as a 
                      regular sleeping accommodation for human beings 
                      (within the meaning of section 103(a)(2)(C));
                          ``(iii) children and youths who are living in 
                      cars, parks, public spaces, abandoned buildings, 
                      substandard housing, bus or train stations, or 
                      similar settings; and
                          ``(iv) migratory children (as such term is 
                      defined in section 1309 of the Elementary and 
                      Secondary Education Act of 1965) who qualify as 
                      homeless for the purposes of this subtitle because 
                      the children are living in circumstances described 
                      in clauses (i) through (iii).
            ``(3) The terms `local educational agency' and `State 
        educational agency' have the meanings given such terms in 
        section 9101 of the Elementary and Secondary Education Act of 
        1965.
            ``(4) The term `Secretary' means the Secretary of Education.
            ``(5) The term `State' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico.
            ``(6) The term `unaccompanied youth' includes a youth not in 
        the physical custody of a parent or guardian.

``SEC. 726. <<NOTE: 42 USC 11435.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subtitle, there are 
authorized to be appropriated $70,000,000 for fiscal year 2002 and such 
sums as may be necessary for each of fiscal years 2003 through 2007.''.

SEC. 1033. CONFORMING AMENDMENT.

    The table of contents of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11301 note) is amended so that the items relating to subtitle 
B of title VII read as follows:

        ``Subtitle B--Education for Homeless Children and Youths

``Sec. 721. Statement of policy.
``Sec. 722. Grants for State and local activities for the education of 
           homeless children and youths.
``Sec. 723. Local educational agency subgrants for the education of 
           homeless children and youths.
``Sec. 724. Secretarial responsibilities.
``Sec. 725. Definitions.
``Sec. 726. Authorization of appropriations.''.

SEC. 1034. <<NOTE: 42 USC 11301 note.>>  TECHNICAL AMENDMENT.

    (a) In General.--Section 1 of Public Law 106-400 (42 U.S.C. 11301) 
is amended by striking ``Section 1 of'' and inserting ``Section 101 
of''.

[[Page 115 STAT. 2007]]

    (b) <<NOTE: 42 USC 11301 note.>>  Effective Date.--The amendment 
made by subsection (a) shall be deemed to be effective on the date of 
enactment of Public Law 106-400.

 PART <<NOTE: Native American Education Improvement Act of 2001.>>  D--
NATIVE AMERICAN EDUCATION IMPROVEMENT

SEC. 1041. <<NOTE: 25 USC 2000 note.>>  SHORT TITLE.

    This part may be cited as the ``Native American Education 
Improvement Act of 2001''.

SEC. 1042. <<NOTE: 25 USC 2022-2026.>>  AMENDMENTS TO THE EDUCATION 
            AMENDMENTS OF 1978.

    Part B of title XI of the Education Amendments of 1978 (25 U.S.C. 
2001 et seq.) is amended to read as follows:

               ``PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

``SEC. 1120. <<NOTE: 25 USC 2000.>>  DECLARATION OF POLICY.

    ``Congress declares that the Federal Government has the sole 
responsibility for the operation and financial support of the Bureau of 
Indian Affairs funded school system that it has established on or near 
Indian reservations and Indian trust lands throughout the Nation for 
Indian children. It is the policy of the United States to fulfill the 
Federal Government's unique and continuing trust relationship with and 
responsibility to the Indian people for the education of Indian children 
and for the operation and financial support of the Bureau of Indian 
Affairs-funded school system to work in full cooperation with tribes 
toward the goal of ensuring that the programs of the Bureau of Indian 
Affairs-funded school system are of the highest quality and provide for 
the basic elementary and secondary educational needs of Indian children, 
including meeting the unique educational and cultural needs of those 
children.

``SEC. 1121. <<NOTE: 25 USC 2001.>>  ACCREDITATION FOR THE BASIC 
            EDUCATION OF INDIAN CHILDREN IN BUREAU OF INDIAN AFFAIRS 
            SCHOOLS.

    ``(a) Purpose; Declarations of Purpose.--
            ``(1) Purpose.--The purpose of the accreditation required 
        under this section shall be to ensure that Indian students being 
        served by a school funded by the Bureau of Indian Affairs are 
        provided with educational opportunities that equal or exceed 
        those for all other students in the United States.
            ``(2) Declarations of purpose.--Local school boards for 
        schools operated by the Bureau of Indian Affairs, in cooperation 
        and consultation with the appropriate tribal governing bodies 
        and their communities, are encouraged to adopt declarations of 
        purpose for education for their communities, taking into account 
        the implications of such declarations on education in their 
        communities and for their schools. In adopting such declarations 
        of purpose, the school boards shall consider the effect the 
        declarations may have on the motivation of students and 
        faculties.

    ``(b) Accreditation.--
            ``(1) Deadline.--
                    ``(A) <<NOTE: Deadline.>>  In general.--Not later 
                than 24 months after the date of enactment of the Native 
                American Education

[[Page 115 STAT. 2008]]

                Improvement Act of 2001, each Bureau-funded school 
                shall, to the extent that necessary funds are provided, 
                be a candidate for accreditation or be accredited--
                          ``(i) by a tribal accrediting body, if the 
                      accreditation standards of the tribal accrediting 
                      body have been accepted by formal action of the 
                      tribal governing body and such accreditation is 
                      acknowledged by a generally recognized State 
                      certification or regional accrediting agency;
                          ``(ii) by a regional accreditation agency;
                          ``(iii) by State accreditation standards for 
                      the State in which the Bureau-funded school is 
                      located; or
                          ``(iv) in the case of a Bureau-funded school 
                      that is located on a reservation that is located 
                      in more than one State, in accordance with the 
                      State accreditation standards of one State as 
                      selected by the tribal government.
                    ``(B) <<NOTE: Deadline.>>  Feasibility study.--Not 
                later than 12 months after the date of enactment of the 
                Native American Education Improvement Act of 2001, the 
                Secretary of the Interior and the Secretary of Education 
                shall, in consultation with Indian tribes, Indian 
                education organizations, and accrediting agencies, 
                develop and submit to the appropriate committees of 
                Congress a report on the desirability and feasibility of 
                establishing a tribal accreditation agency that would--
                          ``(i) review and acknowledge the accreditation 
                      standards for Bureau-funded schools; and
                          ``(ii) establish accreditation procedures to 
                      facilitate the application, review of the 
                      standards and review processes, and recognition of 
                      qualified and credible tribal departments of 
                      education as accrediting bodies serving tribal 
                      schools.
            ``(2) Determination of accreditation to be applied.--The 
        accreditation type applied for each school shall be determined 
        by the tribal governing body, or the school board, if authorized 
        by the tribal governing body.
            ``(3) Assistance to school boards.--
                    ``(A) In general.--The Secretary, through contracts 
                and grants, shall provide technical and financial 
                assistance to Bureau-funded schools, to the extent that 
                necessary amounts are made available, to enable such 
                schools to obtain the accreditation required under this 
                subsection, if the school boards request that such 
                assistance, in part or in whole, be provided.
                    ``(B) Entities through which assistance may be 
                provided.--The Secretary may provide such assistance 
                directly or through the Department of Education, an 
                institution of higher education, a private not-for-
                profit organization or for-profit organization, an 
                educational service agency, or another entity with 
                demonstrated experience in assisting schools in 
                obtaining accreditation.
            ``(4) Application of current standards during 
        accreditation.--A Bureau-funded school that is seeking 
        accreditation shall remain subject to the standards issued under 
        section 1121 of the Education Amendments of 1978 and in effect 
        on the day before the date of enactment of the Native American

[[Page 115 STAT. 2009]]

        Education Improvement Act of 2001 until such time as the school 
        is accredited, except that if any of such standards are in 
        conflict with the standards of the accrediting agency, the 
        standards of such agency shall apply in such case.
            ``(5) <<NOTE: Deadline.>>  Annual report on unaccredited 
        schools.--Not later than 90 days after the end of each school 
        year, the Secretary shall prepare and submit to the Committee on 
        Appropriations, the Committee on Education and the Workforce, 
        and the Committee on Resources of the House of Representatives 
        and the Committee on Appropriations, the Committee on Indian 
        Affairs, and the Committee on Health, Education, Labor, and 
        Pensions of the Senate, a report concerning unaccredited Bureau-
        funded schools that--
                    ``(A) identifies those Bureau-funded schools that 
                fail to be accredited or to be candidates for 
                accreditation within the period provided for in 
                paragraph (1);
                    ``(B) with respect to each Bureau-funded school 
                identified under subparagraph (A), identifies the 
                reasons that each such school is not accredited or a 
                candidate for accreditation, as determined by the 
                appropriate accreditation agency, and a description of 
                any possible way in which to remedy such 
                nonaccreditation; and
                    ``(C) with respect to each Bureau-funded school for 
                which the reported reasons for the lack of accreditation 
                under subparagraph (B) are a result of the school's 
                inadequate basic resources, contains information and 
                funding requests for the full funding needed to provide 
                such schools with accreditation, such funds if provided 
                shall be applied to such unaccredited school under this 
                paragraph.
            ``(6) Opportunity to review and present evidence.--
                    ``(A) In general.--Prior to including a Bureau-
                funded school in an annual report required under 
                paragraph (5), the Secretary shall--
                          ``(i) ensure that the school has exhausted all 
                      administrative remedies provided by the 
                      accreditation agency; and
                          ``(ii) provide the school with an opportunity 
                      to review the data on which such inclusion is 
                      based.
                    ``(B) Provision of additional information.--If the 
                school board of a school that the Secretary has proposed 
                for inclusion in an annual report under paragraph (5) 
                believes that such inclusion is in error, the school 
                board may provide to the Secretary such information as 
                the board believes is in conflict with the information 
                and conclusions of the Secretary with respect to the 
                determination to include the school in such annual 
                report. The Secretary shall consider such information 
                provided by the school board before making a final 
                determination concerning the inclusion of the school in 
                any such report.
                    ``(C) <<NOTE: Deadline.>>  Publication of 
                accreditation status.--Not later than 30 days after 
                making an initial determination to include a school in 
                an annual report under paragraph (5), the Secretary 
                shall make public the final determination on the 
                accreditation status of the school.
            ``(7) School plan.--
                    ``(A) <<NOTE: Deadline.>>  In general.--Not later 
                than 120 days after the date on which a school is 
                included in an annual report

[[Page 115 STAT. 2010]]

                under paragraph (5), the school shall develop a school 
                plan, in consultation with interested parties including 
                parents, school staff, the school board, and other 
                outside experts (if appropriate), that shall be 
                submitted to the Secretary for approval. The school plan 
                shall cover a 3-year period and shall--
                          ``(i) incorporate strategies that address the 
                      specific issues that caused the school to fail to 
                      be accredited or fail to be a candidate for 
                      accreditation;
                          ``(ii) incorporate policies and practices 
                      concerning the school that have the greatest 
                      likelihood of ensuring that the school will obtain 
                      accreditation during the 3-year period beginning 
                      on the date on which the plan is implemented;
                          ``(iii) contain an assurance that the school 
                      will reserve the necessary funds, from the funds 
                      described in paragraph (3), for each fiscal year 
                      for the purpose of obtaining accreditation;
                          ``(iv) specify how the funds described in 
                      clause (iii) will be used to obtain accreditation;
                          ``(v) establish specific annual, objective 
                      goals for measuring continuous and significant 
                      progress made by the school in a manner that will 
                      ensure the accreditation of the school within the 
                      3-year period described in clause (ii);
                          ``(vi) identify how the school will provide 
                      written notification about the lack of 
                      accreditation to the parents of each student 
                      enrolled in such school, in a format and, to the 
                      extent practicable, in a language the parents can 
                      understand; and
                          ``(vii) specify the responsibilities of the 
                      school board and any assistance to be provided by 
                      the Secretary under paragraph (3).
                    ``(B) Implementation.--A school shall implement the 
                school plan under subparagraph (A) expeditiously, but in 
                no event later than the beginning of the school year 
                following the school year in which the school was 
                included in the annual report under paragraph (5) so 
                long as the necessary resources have been provided to 
                the school.
                    ``(C) <<NOTE: Deadline.>>  Review of plan.--Not 
                later than 45 days after receiving a school plan, the 
                Secretary shall--
                          ``(i) establish a peer-review process to 
                      assist with the review of the plan; and
                          ``(ii) promptly review the school plan, work 
                      with the school as necessary, and approve the 
                      school plan if the plan meets the requirements of 
                      this paragraph.
            ``(8) Corrective action.--
                    ``(A) Definition.--In this subsection, the term 
                `corrective action' means any action that--
                          ``(i) substantially and directly responds to--
                                    ``(I) the failure of a school to 
                                achieve accreditation; and
                                    ``(II) any underlying staffing, 
                                curriculum, or other programmatic 
                                problem in the school that contributed 
                                to the lack of accreditation; and
                          ``(ii) is designed to increase substantially 
                      the likelihood that the school will be accredited.

[[Page 115 STAT. 2011]]

                    ``(B) Waiver.--The Secretary shall grant a waiver 
                which shall exempt a school from any or all of the 
                requirements of this paragraph and paragraph (7) (though 
                such school shall be required to comply with the 
                standards contained in part 36 of title 25, Code of 
                Federal Register, as in effect on the date of enactment 
                of the Native American Education Improvement Act of 
                2001) if the school--
                          ``(i) is identified in the report described in 
                      paragraph (5)(C); and
                          ``(ii) fails to be accredited for reasons that 
                      are beyond the control of the school board, as 
                      determined by the Secretary, including, but not 
                      limited to--
                                    ``(I) a significant decline in 
                                financial resources;
                                    ``(II) the poor condition of 
                                facilities, vehicles, or other property; 
                                and
                                    ``(III) a natural disaster.
                    ``(C) Duties of secretary.--After providing 
                assistance to a school under paragraph (3), the 
                Secretary shall--
                          ``(i) annually review the progress of the 
                      school under the applicable school plan to 
                      determine whether the school is meeting, or making 
                      adequate progress toward achieving the goals 
                      described in paragraph (7)(A)(v) with respect to 
                      reaccreditation or becoming a candidate for 
                      accreditation;
                          ``(ii) except as provided in subparagraph (B), 
                      continue to provide assistance while implementing 
                      the school's plan, and, if determined appropriate 
                      by the Secretary, take corrective action with 
                      respect to the school if it fails to be accredited 
                      at the end of the third full year immediately 
                      following the date that the school's plan was 
                      first in effect under paragraph (7);
                          ``(iii) provide all students enrolled in a 
                      school that is eligible for a corrective action 
                      determination by the Secretary under clause (ii) 
                      with the option to transfer to another public or 
                      Bureau-funded school, including a public charter 
                      school, that is accredited;
                          ``(iv) promptly notify the parents of children 
                      enrolled in a school that is eligible for a 
                      corrective action determination by the Secretary 
                      under clause (ii) of the option to transfer their 
                      child to another public or Bureau-funded school; 
                      and
                          ``(v) provide, or pay for the provision of, 
                      transportation for each student described in 
                      clause (iii) to the school described in clause 
                      (iii) to which the student elects to be 
                      transferred to the extent funds are available, as 
                      determined by the tribal governing body.
                    ``(D) Failure of school plan of bureau-operated 
                school.--With respect to a Bureau-operated school that 
                fails to be accredited at the end of the third full year 
                immediately following the date that the school's plan 
                was first in effect under paragraph (7), the Secretary 
                may take one or more of the following corrective 
                actions:
                          ``(i) Institute and fully implement actions 
                      suggested by the accrediting agency.

[[Page 115 STAT. 2012]]

                          ``(ii) Consult with the tribe involved to 
                      determine the causes for the lack of accreditation 
                      including potential staffing and administrative 
                      changes that are or may be necessary.
                          ``(iii) Set aside a certain amount of funds 
                      that may only be used by the school to obtain 
                      accreditation.
                          ``(iv)(I) Provide the tribe with a 60-day 
                      period during which to determine whether the tribe 
                      desires to operate the school as a contract or 
                      grant school before meeting the accreditation 
                      requirements in section 5207(c) of the Tribally 
                      Controlled Schools Act of 1988 at the beginning of 
                      the next school year following the determination 
                      to take corrective action. If the tribe agrees to 
                      operate the school as a contract or grant school, 
                      the tribe shall prepare a plan, pursuant to 
                      paragraph (7), for approval by the Secretary in 
                      accordance with paragraph (7), to achieve 
                      accreditation.
                          ``(II) If the tribe declines to assume control 
                      of the school, the Secretary, in consultation with 
                      the tribe, may contract with an outside entity, 
                      consistent with applicable law, or appoint a 
                      receiver or trustee to operate and administer the 
                      affairs of the school until the school is 
                      accredited. The outside entity, receiver, or 
                      trustee shall prepare a plan, pursuant to 
                      paragraph (7), for approval by the Secretary in 
                      accordance with paragraph (7).
                          ``(III) Upon accreditation of the school, the 
                      Secretary shall allow the tribe to continue to 
                      operate the school as a grant or contract school, 
                      or if the school is being controlled by an outside 
                      entity, provide the tribe with the option to 
                      assume operation of the school as a contract 
                      school, in accordance with the Indian Self-
                      Determination Act, or as a grant school in 
                      accordance with the Tribally Controlled Schools 
                      Act of 1988, at the beginning of the school year 
                      following the school year in which the school 
                      obtains accreditation. If the tribe declines, the 
                      Secretary may allow the outside entity, receiver, 
                      or trustee to continue the operation of the school 
                      or reassume control of the school.
                    ``(E) Failure of school plan of contract or grant 
                school.--
                          ``(i) Corrective action.--With respect to a 
                      contract or grant school that fails to be 
                      accredited at the end of the third full year 
                      immediately following the date that the school's 
                      plan was first in effect under paragraph (7), the 
                      Secretary may take one or more of the corrective 
                      actions described in subparagraph (D)(i) and 
                      (D)(ii). The Secretary shall implement such 
                      corrective action for at least 1 year prior to 
                      taking any action described under clause (ii).
                          ``(ii) Outside entity.--If the corrective 
                      action described in clause (i) does not result in 
                      accreditation of the school, the Secretary, in 
                      conjunction with the tribal governing body, may 
                      contract with an outside entity to operate the 
                      school in order to achieve accreditation of the 
                      school within 2 school years. Prior to entering 
                      into such a contract, the Secretary shall

[[Page 115 STAT. 2013]]

                      develop a proposal for such operation which shall 
                      include, at a minimum, the following elements:
                                    ``(I) The identification of one or 
                                more outside entities each of which has 
                                demonstrated to the Secretary its 
                                ability to develop a satisfactory plan 
                                for achieving accreditation and its 
                                willingness and availability to 
                                undertake such a plan.
                                    ``(II) A plan for implementing 
                                operation of the school by such an 
                                outside entity, including the 
                                methodology for oversight and evaluation 
                                of the performance of the outside entity 
                                by the Secretary and the tribe.
                          ``(iii) Proposal amendments.--The tribal 
                      governing body shall have 60 days to amend the 
                      plan developed pursuant to clause (ii), including 
                      identifying another outside entity to operate the 
                      school. <<NOTE: Deadline.>>  The Secretary shall 
                      reach agreement with the tribal governing body on 
                      the proposal and any such amendments to the plan 
                      not later than 30 days after the expiration of the 
                      60-day period described in the preceding sentence. 
                      After the approval of the proposal and any 
                      amendments, the Secretary, with continuing 
                      consultation with such tribal governing body, 
                      shall implement the proposal.
                          ``(iv) Accreditation.--Upon accreditation of 
                      the school, the tribe shall have the option to 
                      assume the operation and administration of the 
                      school as a contract school after complying with 
                      the Indian Self-Determination Act, or as a grant 
                      school, after complying with the Tribally 
                      Controlled Schools Act of 1988, at the beginning 
                      of the school year following the year in which the 
                      school obtains accreditation.
                          ``(v) Retrocede.--Nothing in this subparagraph 
                      shall limit a tribe's right to retrocede operation 
                      of a school to the Secretary pursuant to section 
                      105(e) of the Indian Self-Determination Act (with 
                      respect to a contract school) or section 5204(f) 
                      of the Tribally Controlled Schools Act of 1988 
                      (with respect to a grant school).
                          ``(vi) Consistent.--The provisions of this 
                      subparagraph shall be construed to be consistent 
                      with the provisions of the Tribally Controlled 
                      Schools Act of 1988 and the Indian Self-
                      Determination Act as in effect on the day before 
                      the date of enactment of the Native American 
                      Education Improvement Act of 2001, and shall not 
                      be construed as expanding the authority of the 
                      Secretary under any other law.
                    ``(F) Hearing.--With respect to a school that is 
                operated pursuant to a grant, or a school that is 
                operated under a contract under the Indian Self-
                Determination Act, prior to implementing any corrective 
                action under this paragraph, the Secretary shall provide 
                notice and an opportunity for a hearing to the affected 
                school pursuant to section 5207 of the Tribally 
                Controlled Schools Act of 1988.
            ``(9) Statutory construction.--Nothing in this section shall 
        be construed to alter or otherwise affect the rights, remedies, 
        and procedures afforded to school employees under

[[Page 115 STAT. 2014]]

        applicable law (including applicable regulations or court 
        orders) or under the terms of any collective bargaining 
        agreement, memorandum of understanding, or other agreement 
        between such employees and their employers.
            ``(10) Fiscal control and fund accounting standards.--The 
        Bureau shall, either directly or through contract with an Indian 
        organization, establish a consistent system of reporting 
        standards for fiscal control and fund accounting for all 
        contract and grant schools. Such standards shall provide data 
        comparable to those used by Bureau-operated schools.

    ``(c) Annual Plan.--
            ``(1) In general.--Except as provided in subsection (b), the 
        Secretary shall implement the standards in effect under this 
        section on the day before the date of enactment of the Native 
        American Education Improvement Act of 2001.
            ``(2) Plan.--On an annual basis, the Secretary shall submit 
        to the appropriate committees of Congress, all Bureau-funded 
        schools, and the tribal governing bodies of such schools a 
        detailed plan to ensure that all Bureau-funded schools are 
        accredited, or if such schools are in the process of obtaining 
        accreditation that such schools meet the Bureau standards in 
        effect on the day before the date of enactment of the Native 
        American Education Improvement Act of 2001 to the extent that 
        such standards do not conflict with the standards of the 
        accrediting agency. Such plan shall include detailed information 
        on the status of each school's educational program in relation 
        to the applicable standards, specific cost estimates for meeting 
        such standards at each school, and specific timelines for 
        bringing each school up to the level required by such standards.

    ``(d) Closure or Consolidation of Schools.--
            ``(1) In general.--Except as specifically required by law--
                    ``(A) no Bureau-funded school or dormitory operated 
                on or after January 1, 1992, may be closed, 
                consolidated, or transferred to another authority; and
                    ``(B) no program of such a school may be 
                substantially curtailed except in accordance with the 
                requirements of this subsection.
            ``(2) Exceptions.--This subsection (other than this 
        paragraph) shall not apply--
                    ``(A) in those cases in which the tribal governing 
                body for a school, or the local school board concerned 
                (if designated by the tribal governing body to act under 
                this paragraph), requests the closure, consolidation, or 
                substantial curtailment; or
                    ``(B) if a temporary closure, consolidation, or 
                substantial curtailment is required by facility 
                conditions that constitute an immediate hazard to health 
                and safety.
            ``(3) Regulations.--The Secretary shall, by regulation, 
        promulgate standards and procedures for the closure, transfer to 
        another authority, consolidation, or substantial curtailment of 
        Bureau schools, in accordance with the requirements of this 
        subsection.
            ``(4) Notice.--
                    ``(A) In general.--In a case in which closure, 
                transfer to another authority, consolidation, or 
                substantial curtailment of a school is under active 
                consideration or review by any division of the Bureau or 
                the Department of the

[[Page 115 STAT. 2015]]

                Interior, the affected tribe, tribal governing body, and 
                designated local school board will be notified 
                immediately in writing, kept fully and currently 
                informed, and afforded an opportunity to comment with 
                respect to such consideration or review.
                    ``(B) Decision to <<NOTE: Notification. Deadline.>>  
                close.--If a formal decision is made to close, transfer 
                to another authority, consolidate, or substantially 
                curtail a school, the affected tribe, tribal governing 
                body, and designated school board shall be notified not 
                later than 180 days before the end of the school year 
                preceding the proposed closure date.
                    ``(C) Copies.--Copies of any such notices and 
                information shall be--
                          ``(i) submitted promptly to the appropriate 
                      committees of Congress; and
                          ``(ii) <<NOTE: Federal Register, 
                      publication.>>  published in the Federal Register.
            ``(5) Report.--The Secretary shall submit to the appropriate 
        committees of Congress, the affected tribe, and the designated 
        school board, a report describing the process of the active 
        consideration or review referred to in paragraph (4) that 
        includes--
                    ``(A) a study of the impact of such action on the 
                student population;
                    ``(B) a description of those students with 
                particular educational and social needs;
                    ``(C) recommendations to ensure that alternative 
                services are available to such students; and
                    ``(D) a description of the consultation conducted 
                between the potential service provider, current service 
                provider, parents, tribal representatives and the tribe 
                or tribes involved, and the Director of the Office of 
                Indian Education Programs within the Bureau regarding 
                such students.
            ``(6) Limitation on certain actions.--No irrevocable action 
        may be taken in furtherance of any such proposed school closure, 
        transfer to another authority, consolidation, or substantial 
        curtailment (including any action which would prejudice the 
        personnel or programs of such school) prior to the end of the 
        first full academic year after such report is made.
            ``(7) Tribal governing body approval required for certain 
        actions.--The Secretary may, with the approval of the tribal 
        governing body, terminate, contract, transfer to any other 
        authority, consolidate, or substantially curtail the operation 
        or facilities of--
                    ``(A) any Bureau-funded school that is operated on 
                or after January 1, 1999;
                    ``(B) any program of such a school that is operated 
                on or after January 1, 1999; or
                    ``(C) any school board of a school operated under a 
                grant under the Tribally Controlled Schools Act of 1988.

    ``(e) Application for Contracts or Grants for Non-Bureau-Funded 
Schools or Expansion of Bureau-Funded Schools.--
            ``(1) Review by secretary.--
                    ``(A) Consideration of factors.--
                          ``(i) In general.--The Secretary shall 
                      consider only the factors described in 
                      subparagraph (B) in reviewing--

[[Page 115 STAT. 2016]]

                                    ``(I) applications from any tribe 
                                for the awarding of a contract or grant 
                                for a school that is not a Bureau-funded 
                                school; and
                                    ``(II) applications from any tribe 
                                or school board of any Bureau-funded 
                                school for--
                                            ``(aa) a school which is not 
                                        a Bureau-funded school; or
                                            ``(bb) the expansion of a 
                                        Bureau-funded school which would 
                                        increase the amount of funds 
                                        received by the Indian tribe or 
                                        school board under section 1127.
                          ``(ii) No denial based on geographic 
                      proximity.--With respect to applications described 
                      in this subparagraph, the Secretary shall give 
                      consideration to all factors described in 
                      subparagraph (B), but no such application shall be 
                      denied based primarily upon the geographic 
                      proximity of comparable public education.
                    ``(B) Factors.--With respect to applications 
                described in subparagraph (A), the Secretary shall 
                consider the following factors relating to the program 
                and services that are the subject of the application:
                          ``(i) The adequacy of the facilities or the 
                      potential to obtain or provide adequate 
                      facilities.
                          ``(ii) Geographic and demographic factors in 
                      the affected areas.
                          ``(iii) The adequacy of the applicant's 
                      program plans or, in the case of a Bureau-funded 
                      school, of projected needs analysis done either by 
                      the tribe or the Bureau.
                          ``(iv) Geographic proximity of comparable 
                      public education.
                          ``(v) The stated needs of all affected 
                      parties, including students, families, tribal 
                      governments at both the central and local levels, 
                      and school organizations.
                          ``(vi) Adequacy and comparability of programs 
                      already available.
                          ``(vii) Consistency of available programs with 
                      tribal educational codes or tribal legislation on 
                      education.
                          ``(viii) The history and success of those 
                      services for the proposed population to be served, 
                      as determined from all factors, including 
                      standardized examination performance.
            ``(2) Determination on application.--
                    ``(A) <<NOTE: Deadline.>>  In general.--Not later 
                than 180 days after the date on which an application 
                described in paragraph (1)(A) is submitted to the 
                Secretary, the Secretary shall make a determination of 
                whether to approve the application.
                    ``(B) Failure to make determination.--If the 
                Secretary fails to make a determination with respect to 
                an application by the date described in subparagraph 
                (A), the application shall be deemed to have been 
                approved by the Secretary.
            ``(3) Requirements for applications.--
                    ``(A) In general.--Notwithstanding paragraph (2)(B), 
                an application described in paragraph (1)(A) may be 
                approved by the Secretary only if--

[[Page 115 STAT. 2017]]

                          ``(i) the application has been approved by the 
                      tribal governing body of the students served by 
                      (or to be served by) the school or program that is 
                      the subject of the application; and
                          ``(ii) written evidence of such approval is 
                      submitted with the application.
                    ``(B) Included information.--Each application 
                described in paragraph (1)(A) shall include information 
                concerning each of the factors described in paragraph 
                (1)(B).
            ``(4) Denial of applications.--If the Secretary denies an 
        application described in paragraph (1)(A), the Secretary shall--
                    ``(A) <<NOTE: Deadline.>>  state the objections to 
                the application in writing to the applicant not later 
                than 180 days after the date the application is 
                submitted to the Secretary;
                    ``(B) provide assistance to the applicant to 
                overcome the stated objections;
                    ``(C) provide to the applicant a hearing on the 
                record regarding the denial, under the same rules and 
                regulations as apply under the Indian Self-Determination 
                and Education Assistance Act; and
                    ``(D) provide to the applicant a notice of the 
                applicant's appeals rights and an opportunity to appeal 
                the decision resulting from the hearing under 
                subparagraph (D).
            ``(5) Effective date of a subject application.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, an action that is the subject of any 
                application described in paragraph (1)(A) that is 
                approved by the Secretary shall become effective--
                          ``(i) at the beginning of the academic year 
                      following the fiscal year in which the application 
                      is approved; or
                          ``(ii) at an earlier date determined by the 
                      Secretary.
                    ``(B) Applications deemed approved.--If an 
                application is deemed to have been approved by the 
                Secretary under paragraph (2)(B), the action that is the 
                subject of the application shall become effective--
                          ``(i) on the date that is 18 months after the 
                      date on which the application is submitted to the 
                      Secretary; or
                          ``(ii) at an earlier date determined by the 
                      Secretary.
            ``(6) Statutory construction.--Nothing in this section or 
        any other provision of law, shall be construed to preclude the 
        expansion of grades and related facilities at a Bureau-funded 
        school, if such expansion is paid for with non-Bureau funds. 
        Subject to the availability of appropriated funds the Secretary 
        is authorized to provide the necessary funds needed to 
        supplement the cost of operations and maintenance of such 
        expansion.

    ``(f) Joint Administration.--Administrative, transportation, and 
program cost funds received by Bureau-funded schools, and any program 
from the Department of Education or any other Federal agency for the 
purpose of providing education or related services, and other funds 
received for such education and related services from nonfederally 
funded programs, shall be apportioned and the funds shall be retained at 
the school.

[[Page 115 STAT. 2018]]

    ``(g) General Use of Funds.--Funds received by Bureau-funded schools 
from the Bureau of Indian Affairs, and under any program from the 
Department of Education or any other Federal agency, for the purpose of 
providing education or related services may be used for schoolwide 
projects to improve the educational program for all Indian students.
    ``(h) Study on Adequacy of Funds and Formulas.--
            ``(1) Study.--The Comptroller General of the United States 
        shall conduct a study to determine the adequacy of funding, and 
        formulas used by the Bureau to determine funding, for programs 
        operated by Bureau-funded schools, taking into account unique 
        circumstances applicable to Bureau-funded schools. The study 
        shall analyze existing information gathered and contained in 
        germane studies that have been conducted or are currently being 
        conducted with regard to Bureau-funded schools.
            ``(2) Action.--Upon completion of the study, the Secretary 
        of the Interior shall take such action as necessary to ensure 
        distribution of the findings of the study to all affected Indian 
        tribes, local school boards, and associations of local school 
        boards.

``SEC. 1122. <<NOTE: 25 USC 2002.>>  NATIONAL CRITERIA FOR HOME-LIVING 
            SITUATIONS.

    ``(a) Revision of Standards.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of Education, Indian organizations and tribes, and 
        Bureau-funded schools, shall revise the national standards for 
        home-living (dormitory) situations to include such factors as 
        heating, lighting, cooling, adult-child ratios, needs for 
        counselors (including special needs related to off-reservation 
        home-living (dormitory) situations), therapeutic programs, 
        space, and privacy.
            ``(2) Implementation.--Such standards shall be implemented 
        in Bureau-operated schools, and shall serve as minimum standards 
        for contract or grant schools.
            ``(3) Revision after establishment.--Once established, any 
        revisions of such standards shall be developed according to the 
        requirements established under section 1137.

    ``(b) Implementation.--The Secretary shall implement the revised 
standards established under this section immediately upon completion of 
the standards.
    ``(c) Plan.--
            ``(1) <<NOTE: Federal Register, publication.>>  In 
        general.--The Secretary shall submit to the appropriate 
        committees of Congress, the tribes, and the affected schools, 
        and publish in the Federal Register, a detailed plan to bring 
        all Bureau-funded schools that provide home-living (dormitory) 
        situations up to the standards established under this section.
            ``(2) Components of plan.--The plan described in paragraph 
        (1) shall include--
                    ``(A) a statement of the relative needs of each 
                Bureau-funded home-living (dormitory) school;
                    ``(B) projected future needs of each Bureau-funded 
                home-living (dormitory) school;
                    ``(C) detailed information on the status of each 
                school in relation to the standards established under 
                this section;

[[Page 115 STAT. 2019]]

                    ``(D) specific cost estimates for meeting each 
                standard for each such school;
                    ``(E) aggregate cost estimates for bringing all such 
                schools into compliance with the criteria established 
                under this section; and
                    ``(F) specific timelines for bringing each school 
                into compliance with such standards.

    ``(d) Waiver.--
            ``(1) In general.--A tribal governing body or local school 
        board may, in accordance with this subsection, waive the 
        standards established under this section for a school described 
        in subsection (a).
            ``(2) Inappropriate standards.--
                    ``(A) In general.--A tribal governing body, or the 
                local school board so designated by the tribal governing 
                body, may waive, in whole or in part, the standards 
                established under this section if such standards are 
                determined by such body or board to be inappropriate for 
                the needs of students from that tribe.
                    ``(B) Alternative <<NOTE: Deadline.>>  standards.--
                The tribal governing body or school board involved 
                shall, not later than 60 days after providing a waiver 
                under subparagraph (A) for a school, submit to the 
                Director a proposal for alternative standards that take 
                into account the specific needs of the tribe's children. 
                Such alternative standards shall be established by the 
                Director for the school involved unless specifically 
                rejected by the Director for good cause and in writing 
                provided to the affected tribes or local school board.

    ``(e) Closure for Failure To Meet Standards Prohibited.--No school 
in operation on or before July 1, 1999 (regardless of compliance or 
noncompliance with the standards established under this section), may be 
closed, transferred to another authority, or consolidated, and no 
program of such a school may be substantially curtailed, because the 
school failed to meet such standards.

``SEC. 1123. <<NOTE: 25 USC 2003.>>  CODIFICATION OF REGULATIONS.

    ``(a) Part 32 of Title 25, Code of Federal Regulations.--The 
provisions of part 32 of title 25, Code of Federal Regulations, as in 
effect on January 1, 1987, are incorporated into this Act and shall be 
treated as though such provisions are set forth in this subsection. Such 
provisions may be altered only by means of an Act of Congress. To the 
extent that such provisions of part 32 do not conform with this Act or 
any statutory provision of law enacted before November 1, 1978, the 
provisions of this Act and the provisions of such other statutory law 
shall govern.
    ``(b) Definition of Regulation.--In this section, the term 
`regulation' means any rule, regulation, guideline, interpretation, 
order, or requirement of general applicability prescribed by any officer 
or employee of the executive branch.

``SEC. 1124. <<NOTE: 25 USC 2004.>>  SCHOOL BOUNDARIES.

    ``(a) Establishment <<NOTE: Regulations.>>  by Secretary.--The 
Secretary shall establish, by regulation, separate geographical 
attendance areas for each Bureau-funded school.

    ``(b) Establishment by Tribal Body.--In any case where there is more 
than one Bureau-funded school located on an Indian reservation, at the 
direction of the tribal governing body, the relevant school boards of 
the Bureau-funded schools on the reservation may,

[[Page 115 STAT. 2020]]

by mutual consent, establish the relevant attendance areas for such 
schools, subject to the approval of the tribal governing body. Any such 
boundaries so established shall be accepted by the Secretary.
    ``(c) Boundary Revisions.--
            ``(1) Notice.--On or after July 1, 2001, no geographical 
        attendance area shall be revised or established with respect to 
        any Bureau-funded school unless the tribal governing body or the 
        local school board concerned (if so designated by the tribal 
        governing body) has been afforded--
                    ``(A) at least 6 months notice of the intention of 
                the Bureau to revise or establish such attendance area; 
                and
                    ``(B) the opportunity to propose alternative 
                boundaries.
            ``(2) Revision process.--Any tribe may petition the 
        Secretary for revision of existing attendance area boundaries. 
        The Secretary shall accept such proposed alternative or revised 
        boundaries unless the Secretary finds, after consultation with 
        the affected tribe or tribes, that such revised boundaries do 
        not reflect the needs of the Indian students to be served or do 
        not provide adequate stability to all of the affected programs. 
        The Secretary shall <<NOTE: Federal Register, publication.>>  
        cause such revisions to be published in the Federal Register.
            ``(3) Tribal resolution determination.--Nothing in this 
        section shall deny a tribal governing body the authority, on a 
        continuing basis, to adopt a tribal resolution allowing parents 
        the choice of the Bureau-funded school their children may 
        attend, regardless of the attendance boundaries established 
        under this section.

    ``(d) Funding Restrictions.--
            ``(1) In general.--The Secretary shall not deny funding to a 
        Bureau-funded school for any eligible Indian student attending 
        the school solely because that student's home or domicile is 
        outside of the geographical attendance area established for that 
        school under this section.
            ``(2) Transportation.--No funding shall be made available 
        without tribal authorization to enable a school to provide 
        transportation for any student to or from the school and a 
        location outside the approved attendance area of the school.

    ``(e) Reservation as Boundary.--When there is only one Bureau-funded 
program located on an Indian reservation--
            ``(1) the attendance area for the program shall be the 
        boundaries (established by treaty, agreement, legislation, court 
        decisions, or executive decisions and as accepted by the tribe) 
        of the reservation served; and
            ``(2) those students residing near the reservation shall 
        also receive services from such program.

    ``(f) Off-Reservation Home-Living (Dormitory) Schools.--
            ``(1) In general.--Notwithstanding any geographical 
        attendance areas, attendance at off-reservation home-living 
        (dormitory) schools shall include students requiring special 
        emphasis programs to be implemented at each off-reservation 
        home-living (dormitory) school.
            ``(2) Coordination.--Such attendance shall be coordinated 
        between education line officers, the family, and the referring 
        and receiving programs.

[[Page 115 STAT. 2021]]

``SEC. 1125. <<NOTE: 25 USC 2005.>>  FACILITIES CONSTRUCTION.

    ``(a) National Survey of Facilities Conditions.--
            ``(1) In <<NOTE: Deadline.>>  general.--Not later than 12 
        months after the date of enactment of the Native American 
        Education Improvement Act of 2001, the General Accounting Office 
        shall compile, collect, and secure the data that are needed to 
        prepare a national survey of the physical conditions of all 
        Bureau-funded school facilities.
            ``(2) Data and methodologies.--In preparing the national 
        survey required under paragraph (1), the General Accounting 
        Office shall use the following data and methodologies:
                    ``(A) The existing Department of Defense formula for 
                determining the condition and adequacy of Department of 
                Defense facilities.
                    ``(B) Data related to conditions of Bureau-funded 
                schools that has previously been compiled, collected, or 
                secured from whatever source derived so long as the data 
                are accurate, relevant, timely, and necessary to the 
                survey.
                    ``(C) The methodologies of the American Institute of 
                Architects, or other accredited and reputable 
                architecture or engineering associations.
            ``(3) Consultations.--
                    ``(A) In general.--In carrying out the survey 
                required under paragraph (1), the General Accounting 
                Office shall, to the maximum extent practicable, consult 
                (and if necessary contract) with national, regional, and 
                tribal Indian education organizations to ensure that a 
                complete and accurate national survey is achieved.
                    ``(B) Requests for information.--All Bureau-funded 
                schools shall comply with reasonable requests for 
                information by the General Accounting Office and shall 
                respond to such requests in a timely fashion.
            ``(4) <<NOTE: Deadline.>>  Submission.--Not later than 2 
        years after the date of enactment of the Native American 
        Education Improvement Act of 2001, the General Accounting Office 
        shall submit the results of the national survey conducted under 
        paragraph (1) to the Committee on Indian Affairs, the Committee 
        on Health, Education, Labor, and Pensions, and the Committee on 
        Appropriations of the Senate and the Committee on Resources, the 
        Committee on Education and the Workforce, and the Committee on 
        Appropriations of the House of Representatives and to the 
        Secretary. The Secretary shall submit the results of the 
        national survey to school boards of Bureau-funded schools and 
        their respective tribes.
            ``(5) Negotiated rulemaking committee.--
                    ``(A) <<NOTE: Deadline.>>  In general.--Not later 
                than 6 months after the date on which the submission is 
                made under paragraph (4), the Secretary shall establish 
                a negotiated rulemaking committee pursuant to section 
                1138(b)(3). The negotiated rulemaking committee shall 
                prepare and submit to the Secretary the following:
                          ``(i) A catalog of the condition of school 
                      facilities at all Bureau-funded schools that--
                                    ``(I) incorporates the findings from 
                                the General Accounting Office study 
                                evaluating and comparing school systems 
                                of the Department of Defense and the 
                                Bureau of Indian Affairs;

[[Page 115 STAT. 2022]]

                                    ``(II) rates such facilities with 
                                respect to the rate of deterioration and 
                                useful life of structures and major 
                                systems;
                                    ``(III) establishes a routine 
                                maintenance schedule for each facility;
                                    ``(IV) identifies the complementary 
                                educational facilities that do not exist 
                                but that are needed; and
                                    ``(V) makes projections on the 
                                amount of funds needed to keep each 
                                school viable, consistent with the 
                                accreditation standards required 
                                pursuant to this Act.
                          ``(ii) A school replacement and new 
                      construction report that determines replacement 
                      and new construction need, and a formula for the 
                      equitable distribution of funds to address such 
                      need, for Bureau-funded schools. Such formula 
                      shall utilize necessary factors in determining an 
                      equitable distribution of funds, including--
                                    ``(I) the size of school;
                                    ``(II) school enrollment;
                                    ``(III) the age of the school;
                                    ``(IV) the condition of the school;
                                    ``(V) environmental factors at the 
                                school; and
                                    ``(VI) school isolation.
                          ``(iii) A renovation repairs report that 
                      determines renovation need (major and minor), and 
                      a formula for the equitable distribution of funds 
                      to address such need, for Bureau-funded schools. 
                      Such report shall identify needed repairs or 
                      renovations with respect to a facility, or a part 
                      of a facility, or the grounds of the facility, to 
                      remedy a need based on disabilities access or 
                      health and safety changes to a facility. The 
                      formula developed shall utilize necessary factors 
                      in determining an equitable distribution of funds, 
                      including the factors described in clause (ii).
                    ``(B) <<NOTE: Deadline.>>  Submission of reports.--
                Not later than 24 months after the negotiated rulemaking 
                committee is established under subparagraph (A), the 
                reports described in clauses (ii) and (iii) of 
                subparagraph (A) shall be submitted to the committees of 
                Congress referred to in paragraph (4), the national and 
                regional Indian education organizations, and to all 
                school boards of Bureau-funded schools and their 
                respective tribes.
            ``(6) Facilities information systems support database.--The 
        Secretary shall develop a Facilities Information Systems Support 
        Database to maintain and update the information contained in the 
        reports under clauses (ii) and (iii) of paragraph (5)(A) and the 
        information contained in the survey conducted under paragraph 
        (1). The system shall be updated every 3 years by the Bureau of 
        Indian Affairs and monitored by General Accounting Office, and 
        shall be made available to school boards of Bureau-funded 
        schools and their respective tribes, and Congress.

    ``(b) Compliance With Health and Safety Standards.--
            ``(1) In general.--The Secretary shall immediately begin to 
        bring all schools, dormitories, and other Indian education-

[[Page 115 STAT. 2023]]

        related facilities operated by the Bureau or under contract or 
        grant with the Bureau, into compliance with--
                    ``(A) all applicable tribal, Federal, or State 
                health and safety standards, whichever provides greater 
                protection (except that the tribal standards to be 
                applied shall be no greater than any otherwise 
                applicable Federal or State standards);
                    ``(B) section 504 of the Rehabilitation Act of 1973; 
                and
                    ``(C) the Americans with Disabilities Act of 1990.
            ``(2) No termination required.--Nothing in this subsection 
        requires termination of the operations of any facility that--
                    ``(A) does not comply with the provisions and 
                standards described in paragraph (1); and
                    ``(B) is in use on the date of enactment of the 
                Native American Education Improvement Act of 2001.

    ``(c) Compliance Plan.--At the time that the annual budget request 
for Bureau educational services is presented, the Secretary shall submit 
to the appropriate committees of Congress a detailed plan to bring all 
facilities covered under subsection (a) into compliance with the 
standards referred to in that subsection that includes--
            ``(1) detailed information on the status of each facility's 
        compliance with such standards;
            ``(2) specific cost estimates for meeting such standards at 
        each school; and
            ``(3) specific timelines for bringing each school into 
        compliance with such standards.

    ``(d) Construction Priorities.--
            ``(1) System <<NOTE: Federal Register, publication.>>  to 
        establish priorities.--On an annual basis, the Secretary shall 
        submit to the appropriate committees of Congress and cause to be 
        published in the Federal Register, the system used to establish 
        priorities for replacement and construction projects for Bureau-
        funded schools and home-living schools, including boarding 
        schools and dormitories. <<NOTE: Federal Register, 
        publication.>>  At the time any budget request for education is 
        presented, the Secretary shall publish in the Federal Register 
        and submit with the budget request the current list of all 
        Bureau-funded school construction priorities.
            ``(2) Long-term construction and replacement list.--In 
        addition to the plan submitted under subsection (c), the 
        Secretary shall--
                    ``(A) not later than 18 months after the date of 
                enactment of the Native American Education Improvement 
                Act of 2001, establish a long-term construction and 
                replacement list for all Bureau-funded schools;
                    ``(B) using the list prepared under subparagraph 
                (A), propose a list for the orderly replacement of all 
                Bureau-funded education-related facilities over a period 
                of 40 years to enable planning and scheduling of budget 
                requests;
                    ``(C) <<NOTE: Federal Register, publication.>>  
                cause the list prepared under subparagraph (B) to be 
                published in the Federal Register and allow a period of 
                not less than 120 days for public comment;
                    ``(D) make such revisions to the list prepared under 
                subparagraph (B) as are appropriate based on the 
                comments received; and

[[Page 115 STAT. 2024]]

                    ``(E) <<NOTE: Federal Register, publication.>>  
                cause the final list to be published in the Federal 
                Register.
            ``(3) Effect on other list.--Nothing in this section shall 
        interfere with or change in any way the construction priority 
        list as it existed on the day before the date of enactment of 
        the Native American Education Improvement Act of 2001.

    ``(e) Hazardous Condition at Bureau-Funded School.--
            ``(1) Closure, consolidation, or curtailment.--
                    ``(A) In general.--A Bureau-funded school may be 
                closed or consolidated, or the programs of a Bureau-
                funded school may be substantially curtailed, by reason 
                of facility conditions that constitute an immediate 
                hazard to health and safety only if a health and safety 
                officer of the Bureau and an individual designated at 
                the beginning of the school year by the tribe involved 
                under subparagraph (B) determine that such conditions 
                exist at a facility of the Bureau-funded school.
                    ``(B) Designation of individual by tribe.--To be 
                designated by a tribe for purposes of subparagraph (A), 
                an individual shall--
                          ``(i) be a licensed or certified facilities 
                      safety inspector;
                          ``(ii) have demonstrated experience in the 
                      inspection of facilities for health and safety 
                      purposes with respect to occupancy; or
                          ``(iii) have a significant educational 
                      background in the health and safety of facilities 
                      with respect to occupancy.
                    ``(C) Inspection.--After making a determination 
                described in subparagraph (A), the Bureau health and 
                safety officer and the individual designated by the 
                tribe shall conduct an inspection of the conditions of 
                such facility in order to determine whether conditions 
                at such facility constitute an immediate hazard to 
                health and safety. <<NOTE: Deadline.>>  Such inspection 
                shall be completed as expeditiously as practicable, but 
                not later than 20 days after the date on which the 
                action described in subparagraph (A) is taken.
                    ``(D) Failure to concur.--If the Bureau health and 
                safety officer, and the individual designated by the 
                tribe, conducting the inspection of a facility required 
                under subparagraph (C) do not concur that conditions at 
                the facility constitute an immediate hazard to health 
                and safety, such officer and individual shall 
                immediately notify the tribal governing body and provide 
                written information related to their determinations.
                    ``(E) Consideration by tribal governing body.--Not 
                later than 10 days after a tribal governing body 
                receives notice under subparagraph (D), the tribal 
                governing body shall consider all information relating 
                to the determinations of the Bureau health and safety 
                officer and the individual designated by the tribe and 
                make a determination regarding the closure, 
                consolidation, or curtailment involved.
                    ``(F) Agreement to close, consolidate, or curtail.--

[[Page 115 STAT. 2025]]

                          ``(i) In general.--If the Bureau health and 
                      safety officer and the individual designated by 
                      the tribe conducting the inspection of a facility 
                      required under subparagraph (C), concur that 
                      conditions at the facility constitute an immediate 
                      hazard to health and safety, or if the tribal 
                      governing body makes such a determination under 
                      subparagraph (E), the facility involved shall be 
                      closed immediately.
                          ``(ii) Reopening of facility if no immediate 
                      hazard found to exist.--If the Bureau health and 
                      safety officer or the individual designated by the 
                      tribe conducting the inspection of a facility 
                      required under subparagraph (C) determines that 
                      conditions at the facility do not constitute an 
                      immediate hazard to health and safety, any 
                      consolidation or curtailment that was made under 
                      this paragraph shall immediately cease and any 
                      school closed by reason of conditions at the 
                      facility shall be reopened immediately.
                    ``(G) General <<NOTE: Deadline.>>  closure report.--
                If a Bureau-funded school is temporarily closed or 
                consolidated or the programs of a Bureau-funded school 
                are temporarily substantially curtailed under this 
                subsection and the Secretary determines that the 
                closure, consolidation, or curtailment will exceed 1 
                year, the Secretary shall submit to the appropriate 
                committees of Congress, the affected tribe, and the 
                local school board, not later than 90 days after the 
                date on which the closure, consolidation, or curtailment 
                was initiated, a report that specifies--
                          ``(i) the reasons for such temporary action;
                          ``(ii) the actions the Secretary is taking to 
                      eliminate the conditions that constitute the 
                      hazard;
                          ``(iii) an estimated date by which the actions 
                      described in clause (ii) will be concluded; and
                          ``(iv) a plan for providing alternate 
                      education services for students enrolled at the 
                      school that is to be closed.
            ``(2) Nonapplication of certain standards for temporary 
        facility use.--
                    ``(A) Classroom activities.--The Secretary shall 
                permit the local school board to temporarily utilize 
                facilities adjacent to the school, or satellite 
                facilities, if such facilities are suitable for 
                conducting classroom activities. In permitting the use 
                of facilities under the preceding sentence, the 
                Secretary may waive applicable minor standards under 
                section 1121 relating to such facilities (such as the 
                required number of exit lights or configuration of 
                restrooms) so long as such waivers do not result in the 
                creation of an environment that constitutes an immediate 
                and substantial threat to the health, safety, and life 
                of students and staff.
                    ``(B) Administrative activities.--The provisions of 
                subparagraph (A) shall apply with respect to 
                administrative personnel if the facilities involved are 
                suitable for activities performed by such personnel.
                    ``(C) Temporary.--In this paragraph, the term 
                `temporary' means--
                          ``(i) with respect to a school that is to be 
                      closed for not more than 1 year, 3 months or less; 
                      and

[[Page 115 STAT. 2026]]

                          ``(ii) with respect to a school that is to be 
                      closed for not less than 1 year, a time period 
                      determined appropriate by the Bureau.
            ``(3) Treatment of closure.--Any closure of a Bureau-funded 
        school under this subsection for a period that exceeds 30 days 
        but is less than 1 year, shall be treated by the Bureau as an 
        emergency facility improvement and repair project.
            ``(4) Use of funds.--With respect to a Bureau-funded school 
        that is closed under this subsection, the tribal governing body, 
        or the designated local school board of each Bureau-funded 
        school, involved may authorize the use of funds allocated 
        pursuant to section 1127, to abate the hazardous conditions 
        without further action by Congress.

    ``(f) Funding Requirement.--
            ``(1) Distribution of funds.--Beginning with the first 
        fiscal year following the date of enactment of the Native 
        American Education Improvement Act of 2001, all funds 
        appropriated to the budget accounts for the operations and 
        maintenance of Bureau-funded schools shall be distributed by 
        formula to the schools. No funds from these accounts may be 
        retained or segregated by the Bureau to pay for administrative 
        or other costs of any facilities branch or office, at any level 
        of the Bureau.
            ``(2) Requirements for certain uses.--No funds shall be 
        withheld from the distribution to the budget of any school 
        operated under contract or grant by the Bureau for maintenance 
        or any other facilities or road-related purpose, unless such 
        school has consented, as a modification to the contract or in 
        writing for grants schools, to the withholding of such funds, 
        including the amount thereof, the purpose for which the funds 
        will be used, and the timeline for the services to be provided. 
        The school may, at the end of any fiscal year, cancel an 
        agreement under this paragraph upon giving the Bureau 30 days 
        notice of its intent to do so.

    ``(g) No Reduction in Federal Funding.--Nothing in this section 
shall diminish any Federal funding due to the receipt by the school of 
funding for facilities improvement or construction from a State or any 
other source.

``SEC. 1126. <<NOTE: 25 USC 2006.>>  BUREAU OF INDIAN AFFAIRS EDUCATION 
            FUNCTIONS.

    ``(a) Formulation and Establishment of Policy and Procedure; 
Supervision of Programs and Expenditures.--The Secretary shall vest in 
the Assistant Secretary for Indian Affairs all functions with respect to 
formulation and establishment of policy and procedure and supervision of 
programs and expenditures of Federal funds for the purpose of Indian 
education administered by the Bureau. The Assistant Secretary shall 
carry out such functions through the Director of the Office of Indian 
Education Programs.
    ``(b) Direction and Supervision of Personnel Operations.--
            ``(1) In <<NOTE: Deadline.>>  general.--Not later than 180 
        days after the date of enactment of the Native American 
        Education Improvement Act of 2001, the Director of the Office 
        shall direct and supervise the operations of all personnel 
        directly and substantially involved in the provision of 
        education program services by the Bureau, including school or 
        institution custodial or maintenance personnel, and personnel 
        responsible for contracting,

[[Page 115 STAT. 2027]]

        procurement, and finance functions connected with school 
        operation programs.
            ``(2) <<NOTE: Deadline.>>  Transfers.--The Assistant 
        Secretary for Indian Affairs shall, not later than 180 days 
        after the date of enactment of the Native American Education 
        Improvement Act of 2001, coordinate the transfer of functions 
        relating to procurements for, contracts of, operation of, and 
        maintenance of schools and other support functions to the 
        Director.

    ``(c) Inherent Federal Function.--For purposes of this Act, all 
functions relating to education that are located at the Area or Agency 
level and performed by an education line officer shall be subject to 
contract under the Indian Self-Determination and Education Assistance 
Act, unless determined by the Secretary to be inherently Federal 
functions as defined in section 1141(12).
    ``(d) Evaluation of Programs; Services and Support Functions; 
Technical and Coordinating Assistance.--Education personnel who are 
under the direction and supervision of the Director of the Office of 
Indian Education Programs in accordance with subsection (b)(1) shall--
            ``(1) monitor and evaluate Bureau education programs;
            ``(2) provide all services and support functions for 
        education programs with respect to personnel matters involving 
        staffing actions and functions; and
            ``(3) provide technical and coordinating assistance in areas 
        such as procurement, contracting, budgeting, personnel, 
        curriculum, and operation and maintenance of school facilities.

    ``(e) Construction, Improvement, Operation, and Maintenance of 
Facilities.--
            ``(1) Plan for construction.--The Assistant Secretary shall 
        submit as part of the annual budget a plan--
                    ``(A) for school facilities to be constructed under 
                section 1125(c);
                    ``(B) for establishing priorities among projects and 
                for the improvement and repair of educational 
                facilities, which together shall form the basis for the 
                distribution of appropriated funds; and
                    ``(C) for capital improvements to be made over the 5 
                succeeding years.
            ``(2) Program for operation and maintenance.--
                    ``(A) Establishment.--The Assistant Secretary shall 
                establish a program, including the distribution of 
                appropriated funds, for the operation and maintenance of 
                education facilities. Such program shall include--
                          ``(i) a method of computing the amount 
                      necessary for each educational facility;
                          ``(ii) similar treatment of all Bureau-funded 
                      schools;
                          ``(iii) a notice of an allocation of 
                      appropriated funds from the Director of the Office 
                      of Indian Education Programs directly to the 
                      education line officers and appropriate school 
                      officials;
                          ``(iv) a method for determining the need for, 
                      and priority of, facilities repair and maintenance 
                      projects, both major and minor (to be determined, 
                      through the conduct by the Assistant Secretary, of 
                      a series of meetings at the agency and area level 
                      with representatives of the Bureau-funded schools 
                      in those areas and

[[Page 115 STAT. 2028]]

                      agencies to receive comment on the lists and 
                      prioritization of such projects); and
                          ``(v) a system for the conduct of routine 
                      preventive maintenance.
                    ``(B) Local supervisors.--The appropriate education 
                line officers shall make arrangements for the 
                maintenance of education facilities with the local 
                supervisors of the Bureau maintenance personnel. The 
                local supervisors of Bureau maintenance personnel shall 
                take appropriate action to implement the decisions made 
                by the appropriate education line officers, except that 
                no funds under this chapter may be authorized for 
                expenditure unless such appropriate education line 
                officer is assured that the necessary maintenance has 
                been, or will be, provided in a reasonable manner.
            ``(3) Implementation.--This subsection shall be implemented 
        as soon as practicable after the date of enactment of the Native 
        American Education Improvement Act of 2001.

    ``(f) Acceptance of Gifts and Bequests.--
            ``(1) Guidelines.--Notwithstanding any other provision of 
        law, the Director of the Office shall promulgate guidelines for 
        the establishment and administration of mechanisms for the 
        acceptance of gifts and bequests for the use and benefit of 
        particular schools or designated Bureau-operated education 
        programs, including, in appropriate cases, the establishment and 
        administration of trust funds.
            ``(2) Monitoring and reports.--Except as provided in 
        paragraph (3), in a case in which a Bureau-operated education 
        program is the beneficiary of such a gift or bequest, the 
        Director shall--
                    ``(A) make provisions for monitoring use of the gift 
                or bequest; and
                    ``(B) submit a report to the appropriate committees 
                of Congress that describes the amount and terms of such 
                gift or bequest, the manner in which such gift or 
                bequest shall be used, and any results achieved by such 
                use.
            ``(3) Exception.--The requirements of paragraph (2) shall 
        not apply in the case of a gift or bequest that is valued at 
        $5,000 or less.

    ``(g) Definition of Functions.--For the purpose of this section, the 
term `functions' includes powers and duties.

``SEC. 1127. <<NOTE: 25 USC 2007.>>  ALLOTMENT FORMULA.

    ``(a) Factors Considered; Revision To Reflect Standards.--
            ``(1) Formula.--The <<NOTE: Regulations.>>  Secretary shall 
        establish, by regulation adopted in accordance with section 
        1137, a formula for determining the minimum annual amount of 
        funds necessary to sustain each Bureau-funded school. In 
        establishing such formula, the Secretary shall consider--
                    ``(A) the number of eligible Indian students served 
                and total student population of the school;
                    ``(B) special cost factors, such as--
                          ``(i) the isolation of the school;
                          ``(ii) the need for special staffing, 
                      transportation, or educational programs;
                          ``(iii) food and housing costs;

[[Page 115 STAT. 2029]]

                          ``(iv) maintenance and repair costs associated 
                      with the physical condition of the educational 
                      facilities;
                          ``(v) special transportation and other costs 
                      of isolated and small schools;
                          ``(vi) the costs of home-living (dormitory) 
                      arrangements, where determined necessary by a 
                      tribal governing body or designated school board;
                          ``(vii) costs associated with greater lengths 
                      of service by education personnel;
                          ``(viii) the costs of therapeutic programs for 
                      students requiring such programs; and
                          ``(ix) special costs for gifted and talented 
                      students;
                    ``(C) the cost of providing academic services which 
                are at least equivalent to those provided by public 
                schools in the State in which the school is located;
                    ``(D) whether the available funding will enable the 
                school involved to comply with the accreditation 
                standards applicable to the school under section 1121; 
                and
                    ``(E) such other relevant factors as the Secretary 
                determines are appropriate.
            ``(2) Revision of formula.--
                    ``(A) In general.--Upon the establishment of the 
                standards required in section 1122, the Secretary shall 
                revise the formula established under this subsection to 
                reflect the cost of funding such standards.
                    ``(B) <<NOTE: Deadline.>>  Review of formula.--Not 
                later than January 1, 2003, the Secretary shall review 
                the formula established under this section and shall 
                take such steps as are necessary to increase the 
                availability of counseling and therapeutic programs for 
                students in off-reservation home-living (dormitory) 
                schools and other Bureau-operated residential 
                facilities.
                    ``(C) Review of standards.--Concurrent with such 
                action, the Secretary shall review the standards 
                established under section 1122 to be certain that 
                adequate provision is made for parental notification 
                regarding, and consent for, such counseling and 
                therapeutic programs.

    ``(b) Pro Rata Allotment.--Notwithstanding any other provision of 
law, Federal funds appropriated for the general local operation of 
Bureau-funded schools shall be allotted pro rata in accordance with the 
formula established under subsection (a).
    ``(c) Annual Adjustment; Reservation of Amount for School Board 
Activities.--
            ``(1) Annual adjustment.--For fiscal year 2003, and for each 
        subsequent fiscal year, the Secretary shall adjust the formula 
        established under subsection (a) to ensure that the formula does 
        the following:
                    ``(A) Uses a weighted unit of 1.2 for each eligible 
                Indian student enrolled in the seventh and eighth grades 
                of the school in considering the number of eligible 
                Indian students served by the school.
                    ``(B) Considers a school with an enrollment of less 
                than 50 eligible Indian students as having an average 
                daily attendance of 50 eligible Indian students for 
                purposes of implementing the adjustment factor for small 
                schools.
                    ``(C) Takes into account the provision of 
                residential services on less than a 9-month basis at a 
                school when

[[Page 115 STAT. 2030]]

                the school board and supervisor of the school determine 
                that a less than 9-month basis will be implemented for 
                the school year involved.
                    ``(D) Uses a weighted unit of 2.0 for each eligible 
                Indian student that--
                          ``(i) is gifted and talented; and
                          ``(ii) is enrolled in the school on a full-
                      time basis,
                in considering the number of eligible Indian students 
                served by the school.
                    ``(E) Uses a weighted unit of 0.25 for each eligible 
                Indian student who is enrolled in a year-long credit 
                course in an Indian or Native language as part of the 
                regular curriculum of a school, in considering the 
                number of eligible Indian students served by such 
                school. The adjustment required under this subparagraph 
                shall be used for such school after--
                          ``(i) the certification of the Indian or 
                      Native language curriculum by the school board of 
                      such school to the Secretary, together with an 
                      estimate of the number of full-time students 
                      expected to be enrolled in the curriculum in the 
                      second school year for which the certification is 
                      made; and
                          (ii) the funds appropriated for allotment 
                      under this section are designated by the 
                      appropriations Act appropriating such funds as the 
                      amount necessary to implement such adjustment at 
                      such school without reducing allotments made under 
                      this section to any school by virtue of such 
                      adjustment.
            ``(2) Reservation of amount.--
                    ``(A) In general.--From the funds allotted in 
                accordance with the formula established under subsection 
                (a) for each Bureau school, the local school board of 
                such school may reserve an amount which does not exceed 
                the greater of--
                          ``(i) $8,000; or
                          ``(ii) the lesser of--
                                    ``(I) $15,000; or
                                    ``(II) 1 percent of such allotted 
                                funds,
                for school board activities for such school, including 
                (notwithstanding any other provision of law) meeting 
                expenses and the cost of membership in, and support of, 
                organizations engaged in activities on behalf of Indian 
                education.
                    ``(B) Training.--
                          ``(i) In general.--Each local school board, 
                      and any agency school board that serves as a local 
                      school board for any grant or contract school, 
                      shall ensure that each individual who is a new 
                      member of the school board receives, within 1 year 
                      after the individual becomes a member of the 
                      school board, 40 hours of training relevant to 
                      that individual's service on the board.
                          ``(ii) Types of training.--Such training may 
                      include training concerning legal issues 
                      pertaining to Bureau-funded schools, legal issues 
                      pertaining to school boards, ethics, and other 
                      topics determined to be appropriate by the school 
                      board.

[[Page 115 STAT. 2031]]

                          ``(iii) Recommendation.--The training 
                      described in this subparagraph shall not be 
                      required, but is recommended, for a tribal 
                      governing body that serves in the capacity of a 
                      school board.

    ``(d) Reservation of Amount for Emergencies.--
            ``(1) In general.--The Secretary shall reserve from the 
        funds available for distribution for each fiscal year under this 
        section an amount that, in the aggregate, equals 1 percent of 
        the funds available for such purpose for that fiscal year, to be 
        used, at the discretion of the Director of the Office of Indian 
        Education Programs, to meet emergencies and unforeseen 
        contingencies affecting the education programs funded under this 
        section.
            ``(2) Use of funds.--Funds reserved under this subsection 
        may be expended only for education services or programs, 
        including emergency repairs of educational facilities, at a 
        schoolsite (as defined by section 5204(c)(2) of the Tribally 
        Controlled Schools Act of 1988).
            ``(3) Availability of funds.--Funds reserved under this 
        subsection shall remain available without fiscal year limitation 
        until expended. However, the aggregate amount available from all 
        fiscal years may not exceed 1 percent of the current year funds.
            ``(4) Report.--When the Secretary makes funds available 
        under this subsection, the Secretary shall report such action to 
        the appropriate committees of Congress within the annual budget 
        submission.

    ``(e) Supplemental Appropriations.--Supplemental appropriations 
enacted to meet increased pay costs attributable to school level 
personnel shall be distributed under this section.
    ``(f) Eligible Indian Student Defined.--In this section, the term 
`eligible Indian student' means a student who--
            ``(1) is a member of, or is at least one-fourth degree 
        Indian blood descendant of a member of, a tribe that is eligible 
        for the special programs and services provided by the United 
        States through the Bureau to Indians because of their status as 
        Indians;
            ``(2) resides on or near a reservation or meets the criteria 
        for attendance at a Bureau off-reservation home-living school; 
        and
            ``(3) is enrolled in a Bureau-funded school.

    ``(g) Tuition.--
            ``(1) In general.--No eligible Indian student or a student 
        attending a Bureau school under paragraph (2)(C) may be charged 
        tuition for attendance at a Bureau school or contract or grant 
        school.
            ``(2) Attendance of non-indian students at bureau schools.--
        The Secretary may permit the attendance at a Bureau school of a 
        student who is not an eligible Indian student if--
                    ``(A) the Secretary determines that the student's 
                attendance will not adversely affect the school's 
                program for eligible Indian students because of cost, 
                overcrowding, or violation of standards or 
                accreditation;
                    ``(B) the school board consents;

[[Page 115 STAT. 2032]]

                    ``(C) the student is a dependent of a Bureau, Indian 
                Health Service, or tribal government employee who lives 
                on or near the school site; or
                    ``(D) tuition is paid for the student that is not 
                more than the tuition charged by the nearest public 
                school district for out-of-district students and shall 
                be in addition to the school's allocation under this 
                section.
            ``(3) Attendance of non-indian students at contract and 
        grant schools.--The school board of a contract or grant school 
        may permit students who are not eligible Indian students under 
        this subsection to attend its contract school or grant school. 
        Any tuition collected for those students shall be in addition to 
        funding received under this section.

    ``(h) Funds Available Without Fiscal Year Limitation.--
Notwithstanding any other provision of law, at the election of the 
school board of a Bureau school made at any time during the fiscal year, 
a portion equal to not more than 15 percent of the funds allocated with 
respect to a school under this section for any fiscal year shall remain 
available to the school for expenditure without fiscal year limitation. 
The Assistant Secretary shall take such steps as are necessary to 
implement this subsection.
    ``(i) Students at Richfield Dormitory, Richfield, Utah.--
            ``(1) In general.--Tuition for the instruction of each out-
        of-State Indian student in a home-living situation at the 
        Richfield dormitory in Richfield, Utah, who attends Sevier 
        County high schools in Richfield, Utah, for an academic year, 
        shall be paid from Indian school equalization program funds 
        authorized in this section and section 1129, at a rate not to 
        exceed the weighted amount provided for under subsection (b) for 
        a student for that year.
            ``(2) No administrative cost funds.--No additional 
        administrative cost funds shall be provided under this part to 
        pay for administrative costs relating to the instruction of the 
        students.

``SEC. 1128. <<NOTE: 25 USC 2008.>>  ADMINISTRATIVE COST GRANTS.

    ``(a) Definitions.--In this section:
            ``(1) Administrative cost.--
                    ``(A) In general.--The term `administrative cost' 
                means the cost of necessary administrative functions 
                which--
                          ``(i) the tribe or tribal organization incurs 
                      as a result of operating a tribal elementary or 
                      secondary educational program;
                          ``(ii) are not customarily paid by comparable 
                      Bureau-operated programs out of direct program 
                      funds; and
                          ``(iii) are either--
                                    ``(I) normally provided for 
                                comparable Bureau programs by Federal 
                                officials using resources other than 
                                Bureau direct program funds; or
                                    ``(II) are otherwise required of 
                                tribal self-determination program 
                                operators by law or prudent management 
                                practice.
                    ``(B) Inclusions.--The term `administrative cost' 
                may include--

[[Page 115 STAT. 2033]]

                          ``(i) contract or grant (or other agreement) 
                      administration;
                          ``(ii) executive, policy, and corporate 
                      leadership and decisionmaking;
                          ``(iii) program planning, development, and 
                      management;
                          ``(iv) fiscal, personnel, property, and 
                      procurement management;
                          ``(v) related office services and record 
                      keeping; and
                          ``(vi) costs of necessary insurance, auditing, 
                      legal, safety and security services.
            ``(2) Bureau elementary and secondary functions.--The term 
        `Bureau elementary and secondary functions' means--
                    ``(A) all functions funded at Bureau schools by the 
                Office;
                    ``(B) all programs--
                          ``(i) funds for which are appropriated to 
                      other agencies of the Federal Government; and
                          ``(ii) which are administered for the benefit 
                      of Indians through Bureau schools; and
                    ``(C) all operation, maintenance, and repair funds 
                for facilities and Government quarters used in the 
                operation or support of elementary and secondary 
                education functions for the benefit of Indians, from 
                whatever source derived.
            ``(3) Direct cost base.--
                    ``(A) In general.--Except as otherwise provided in 
                subparagraph (B), the direct cost base of a tribe or 
                tribal organization for the fiscal year is the aggregate 
                direct cost program funding for all tribal elementary or 
                secondary educational programs operated by the tribe or 
                tribal organization during--
                          ``(i) the second fiscal year preceding such 
                      fiscal year; or
                          ``(ii) if such programs have not been operated 
                      by the tribe or tribal organization during the 2 
                      preceding fiscal years, the first fiscal year 
                      preceding such fiscal year.
                    ``(B) Functions not previously operated.--In the 
                case of Bureau elementary or secondary education 
                functions which have not previously been operated by a 
                tribe or tribal organization under contract, grant, or 
                agreement with the Bureau, the direct cost base for the 
                initial year shall be the projected aggregate direct 
                cost program funding for all Bureau elementary and 
                secondary functions to be operated by the tribe or 
                tribal organization during that fiscal year.
            ``(4) Maximum base rate.--The term `maximum base rate' means 
        50 percent.
            ``(5) Minimum base rate.--The term `minimum base rate' means 
        11 percent.
            ``(6) Standard direct cost base.--The term `standard direct 
        cost base' means $600,000.
            ``(7) Tribal elementary or secondary educational programs.--
        The term `tribal elementary or secondary educational programs' 
        means all Bureau elementary and secondary functions, together 
        with any other Bureau programs or portions

[[Page 115 STAT. 2034]]

        of programs (excluding funds for social services that are 
        appropriated to agencies other than the Bureau and are funded 
        through the Bureau, funds for major subcontracts, construction, 
        and other major capital expenditures, and unexpended funds 
        carried over from prior years) which share common administrative 
        cost functions, that are operated directly by a tribe or tribal 
        organization under a contract, grant, or agreement with the 
        Bureau.

    ``(b) Grants; Effect Upon Appropriated Amounts.--
            ``(1) Grants.--Subject to the availability of funds, the 
        Secretary shall provide grants to each tribe or tribal 
        organization operating a contract school or grant school in the 
        amount determined under this section with respect to the tribe 
        or tribal organization for the purpose of paying the 
        administrative and indirect costs incurred in operating contract 
        or grant schools, provided that no school operated as a stand-
        alone institution shall receive less than $200,000 per year for 
        these purposes, in order to--
                    ``(A) enable tribes and tribal organizations 
                operating such schools, without reducing direct program 
                services to the beneficiaries of the program, to provide 
                all related administrative overhead services and 
                operations necessary to meet the requirements of law and 
                prudent management practice; and
                    ``(B) carry out other necessary support functions 
                which would otherwise be provided by the Secretary or 
                other Federal officers or employees, from resources 
                other than direct program funds, in support of 
                comparable Bureau-operated programs.
            ``(2) Effect upon appropriated amounts.--Amounts 
        appropriated to fund the grants provided under this section 
        shall be in addition to, and shall not reduce, the amounts 
        appropriated for the program being administered by the contract 
        or grant school.

    ``(c) Determination of Grant Amount.--
            ``(1) In general.--The amount of the grant provided to each 
        tribe or tribal organization under this section for each fiscal 
        year shall be determined by applying the administrative cost 
        percentage rate of the tribe or tribal organization to the 
        aggregate of the Bureau elementary and secondary functions 
        operated by the tribe or tribal organization for which funds are 
        received from or through the Bureau.
            ``(2) Direct cost base funds.--The Secretary shall--
                    ``(A) reduce the amount of the grant determined 
                under paragraph (1) to the extent that payments for 
                administrative costs are actually received by an Indian 
                tribe or tribal organization under any Federal education 
                program included in the direct cost base of the tribe or 
                tribal organization; and
                    ``(B) take such actions as may be necessary to be 
                reimbursed by any other department or agency of the 
                Federal Government for the portion of grants made under 
                this section for the costs of administering any program 
                for Indians that is funded by appropriations made to 
                such other department or agency.

    ``(d) Administrative Cost Percentage Rate.--

[[Page 115 STAT. 2035]]

            ``(1) In general.--For purposes of this section, the 
        administrative cost percentage rate for a contract or grant 
        school for a fiscal year is equal to the percentage determined 
        by dividing--
                    ``(A) the sum of--
                          ``(i) the amount equal to--
                                    ``(I) the direct cost base of the 
                                tribe or tribal organization for the 
                                fiscal year, multiplied by
                                    ``(II) the minimum base rate; plus
                          ``(ii) the amount equal to--
                                    ``(I) the standard direct cost base; 
                                multiplied by
                                    ``(II) the maximum base rate; by
                    ``(B) the sum of--
                          ``(i) the direct cost base of the tribe or 
                      tribal organization for the fiscal year; plus
                          ``(ii) the standard direct cost base.
            ``(2) Rounding.--The administrative cost percentage rate 
        shall be determined to the \1/100\ of a decimal point.
            ``(3) Applicability.--The administrative cost percentage 
        rate determined under this subsection shall not apply to other 
        programs operated by the tribe or tribal organization.

    ``(e) Combining Funds.--
            ``(1) In general.--Funds received by a tribe or contract or 
        grant school as grants under this section for tribal elementary 
        or secondary educational programs may be combined by the tribe 
        or contract or grant school into a single administrative cost 
        account without the necessity of maintaining separate funding 
        source accounting.
            ``(2) Indirect cost funds.--Indirect cost funds for programs 
        at the school which share common administrative services with 
        tribal elementary or secondary educational programs may be 
        included in the administrative cost account described in 
        paragraph (1).

    ``(f) Availability of Funds.--Funds received as grants under this 
section with respect to tribal elementary or secondary education 
programs shall remain available to the contract or grant school without 
fiscal year limitation and without diminishing the amount of any grants 
otherwise payable to the school under this section for any fiscal year 
beginning after the fiscal year for which the grant is provided.
    ``(g) Treatment of Funds.--Funds received as grants under this 
section for Bureau-funded programs operated by a tribe or tribal 
organization under a contract or agreement shall not be taken into 
consideration for purposes of indirect cost underrecovery and 
overrecovery determinations by any Federal agency for any other funds, 
from whatever source derived.
    ``(h) Treatment of Entity Operating Other Programs.--In applying 
this section and section 106 of the Indian Self-Determination and 
Education Assistance Act with respect to an Indian tribe or tribal 
organization that--
            ``(1) receives funds under this section for administrative 
        costs incurred in operating a contract or grant school or a 
        school operated under the Tribally Controlled Schools Act of 
        1988; and
            ``(2) operates one or more other programs under a contract 
        or grant provided under the Indian Self-Determination and 
        Education Assistance Act,

[[Page 115 STAT. 2036]]

the Secretary shall ensure that the Indian tribe or tribal organization 
is provided with the full amount of the administrative costs that are 
associated with operating the contract or grant school, and of the 
indirect costs, that are associated with all of such other programs, 
except that funds appropriated for implementation of this section shall 
be used only to supply the amount of the grant required to be provided 
by this section.
    ``(i) Studies for Determination of Factors Affecting Costs; Base 
Rates Limits; Standard Direct Cost Base; Report to Congress.--
            ``(1) Studies.--Not <<NOTE: Deadline.>>  later than 120 days 
        after the date of enactment of the Native American Education 
        Improvement Act of 2001, the Director of the Office of Indian 
        Education Programs shall--
                    ``(A) conduct such studies as may be needed to 
                establish an empirical basis for determining relevant 
                factors substantially affecting required administrative 
                costs of tribal elementary and secondary education 
                programs, using the formula set forth in subsection (c); 
                and
            ``(B) conduct a study to determine--
                    ``(i) a maximum base rate which ensures that the 
                amount of the grants provided under this section will 
                provide adequate (but not excessive) funding of the 
                administrative costs of the smallest tribal elementary 
                or secondary educational programs;
                    ``(ii) a minimum base rate which ensures that the 
                amount of the grants provided under this section will 
                provide adequate (but not excessive) funding of the 
                administrative costs of the largest tribal elementary or 
                secondary educational programs; and
                    ``(iii) a standard direct cost base which is the 
                aggregate direct cost funding level for which the 
                percentage determined under subsection (d) will--
                          ``(I) be equal to the median between the 
                      maximum base rate and the minimum base rate; and
                          ``(II) ensure that the amount of the grants 
                      provided under this section will provide adequate 
                      (but not excessive) funding of the administrative 
                      costs of tribal elementary or secondary 
                      educational programs closest to the size of the 
                      program.
            ``(2) Guidelines.--The studies required under paragraph (1) 
        shall--
                    ``(A) be conducted in full consultation (in 
                accordance with section 1131) with--
                          ``(i) the tribes and tribal organizations that 
                      are affected by the application of the formula set 
                      forth in subsection (c); and
                          ``(ii) all national and regional Indian 
                      organizations of which such tribes and tribal 
                      organizations are typically members;
                    ``(B) be conducted onsite with a representative 
                statistical sample of the tribal elementary or secondary 
                educational programs under a contract entered into with 
                a nationally reputable public accounting and business 
                consulting firm;

[[Page 115 STAT. 2037]]

                    ``(C) take into account the availability of skilled 
                labor commodities, business and automatic data 
                processing services, related Indian preference and 
                Indian control of education requirements, and any other 
                market factors found to substantially affect the 
                administrative costs and efficiency of each such tribal 
                elementary or secondary educational program studied in 
                order to ensure that all required administrative 
                activities can reasonably be delivered in a cost 
                effective manner for each such program, given an 
                administrative cost allowance generated by the values, 
                percentages, or other factors found in the studies to be 
                relevant in such formula;
                    ``(D) identify, and quantify in terms of percentages 
                of direct program costs, any general factors arising 
                from geographic isolation, or numbers of programs 
                administered, independent of program size factors used 
                to compute a base administrative cost percentage in such 
                formula; and
                    ``(E) identify any other incremental cost factors 
                substantially affecting the costs of required 
                administrative cost functions at any of the tribal 
                elementary or secondary educational programs studied and 
                determine whether the factors are of general 
                applicability to other such programs, and (if so) how 
                the factors may effectively be incorporated into such 
                formula.
            ``(3) Consultation with inspector general.--In carrying out 
        the studies required under this subsection, the Director shall 
        obtain the input of, and afford an opportunity to participate 
        to, the Inspector General of the Department of the Interior.
            ``(4) Consideration of delivery of administrative 
        services.--Determinations described in paragraph (2)(C) shall be 
        based on what is practicable at each location studied, given 
        prudent management practice, irrespective of whether required 
        administrative services were actually or fully delivered at 
        these sites, or whether other services were delivered instead, 
        during the period of the study.
            ``(5) Report.--Upon completion of the studies conducted 
        under paragraph (1), the Director shall submit to Congress a 
        report on the findings of the studies, together with 
        determinations based upon such studies that would affect the 
        definitions set forth under subsection (e) that are used in the 
        formula set forth in subsection (c).
            ``(6) Projection of costs.--The Secretary shall include in 
        the Bureau's justification for each appropriations request 
        beginning in the first fiscal year after the completion of the 
        studies conducted under paragraph (1), a projection of the 
        overall costs associated with the formula set forth in 
        subsection (c) for all tribal elementary or secondary education 
        programs which the Secretary expects to be funded in the fiscal 
        year for which the appropriations are sought.
            ``(7) Determination of program size.--For purposes of this 
        subsection, the size of tribal elementary or secondary 
        educational programs is determined by the aggregate direct cost 
        program funding level for all Bureau-funded programs which share 
        common administrative cost functions.

    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section such sums as may be necessary.

[[Page 115 STAT. 2038]]

            ``(2) Reductions.--If the total amount of funds necessary to 
        provide grants to tribes and tribal organizations in the amounts 
        determined under subsection (c) for a fiscal year exceeds the 
        amount of funds appropriated to carry out this section for such 
        fiscal year, the Secretary shall reduce the amount of each grant 
        determined under subsection (c) for such fiscal year by an 
        amount that bears the same relationship to such excess as the 
        amount of such grants determined under subsection (c) bears to 
        the total of all grants determined under subsection (c) section 
        for all tribes and tribal organizations for such fiscal year.

    ``(k) Applicability to Schools Operating Under Tribally Controlled 
Schools Act of 1988.--The provisions of this section shall apply to 
schools operating under the Tribally Controlled Schools Act of 1988.
    ``(l) Administrative Cost Grant Budget Requests.--
            ``(1) In general.--Beginning with President's annual budget 
        request under section 1105 of title 31, United States Code for 
        fiscal year 2002, and with respect to each succeeding budget 
        request, at the discretion of the Secretary, the Secretary shall 
        submit to the appropriate committees of Congress information and 
        funding requests for the full funding of administrative costs 
        grants required to be paid under this section.
            ``(2) Requirements.--
                    ``(A) Funding for new conversions to contract or 
                grant school operations.--With respect to a budget 
                request under paragraph (1), the amount required to 
                provide full funding for an administrative cost grant 
                for each tribe or tribal organization expected to begin 
                operation of a Bureau-funded school as contract or grant 
                school in the academic year funded by such annual budget 
                request, the amount so required shall not be less than 
                10 percent of the amount required for subparagraph (B).
                    ``(B) Funding for continuing contract and grant 
                school operations.--With respect to a budget request 
                under paragraph (1), the amount required to provide full 
                funding for an administrative cost grant for each tribe 
                or tribal organization operating a contract or grant 
                school at the time the annual budget request is 
                submitted, which amount shall include the amount of 
                funds required to provide full funding for an 
                administrative cost grant for each tribe or tribal 
                organization which began operation of a contract or 
                grant school with administrative cost grant funds 
                supplied from the amount described in subparagraph (A).

``SEC. 1129. <<NOTE: 25 USC 2009.>>  DIVISION OF BUDGET ANALYSIS.

    ``(a) <<NOTE: Deadline.>>  Establishment.--Not later than 1 year 
after the date of enactment of the Native American Education Improvement 
Act of 2001, the Secretary shall establish within the Office of Indian 
Education Programs a Division of Budget Analysis (hereafter in this 
section referred to as the `Division'). Such Division shall be under the 
direct supervision and control of the Director of the Office.

    ``(b) Functions.--In consultation with the tribal governing bodies 
and tribal school boards, the Director of the Office, through

[[Page 115 STAT. 2039]]

the Division, shall conduct studies, surveys, or other activities to 
gather demographic information on Bureau-funded schools and project the 
amount necessary to provide Indian students in such schools the 
educational program set forth in this part.
    ``(c) Annual <<NOTE: Deadline.>>  Reports.--Not later than the date 
on which the Assistant Secretary for Indian Affairs makes the annual 
budget submission, for each fiscal year after the date of enactment of 
the Native American Education Improvement Act of 2001, the Director of 
the Office shall submit to the appropriate committees of Congress 
(including the Appropriations committees), all Bureau-funded schools, 
and the tribal governing bodies of such schools, a report that 
contains--
            ``(1) projections, based upon the information gathered 
        pursuant to subsection (b) and any other relevant information, 
        of amounts necessary to provide Indian students in Bureau-funded 
        schools the educational program set forth in this part;
            ``(2) a description of the methods and formulas used to 
        calculate the amounts projected pursuant to paragraph (1); and
            ``(3) such other information as the Director of the Office 
        considers appropriate.

    ``(d) Use of Reports.--The Director of the Office and the Assistant 
Secretary for Indian Affairs shall use the annual report required by 
subsection (c) when preparing annual budget submissions.

``SEC. 1130. <<NOTE: 25 USC 2010.>>  UNIFORM DIRECT FUNDING AND SUPPORT.

    ``(a) Establishment of System and Forward Funding.--
            ``(1) In <<NOTE: Regulations.>>  general.--The Secretary 
        shall establish, by regulation adopted in accordance with 
        section 1136, a system for the direct funding and support of all 
        Bureau-funded schools. Such system shall allot funds in 
        accordance with section 1127. All amounts appropriated for 
        distribution in accordance with this section shall be made 
        available in accordance with paragraph (2).
            ``(2) Timing for use of funds.--
                    ``(A) Availability.--For the purposes of affording 
                adequate notice of funding available pursuant to the 
                allotments made under section 1127 and the allotments of 
                funds for operation and maintenance of facilities, 
                amounts appropriated in an appropriations Act for any 
                fiscal year for such allotments--
                          ``(i) shall become available for obligation by 
                      the affected schools on July 1 of the fiscal year 
                      for which such allotments are appropriated without 
                      further action by the Secretary; and
                          ``(ii) shall remain available for obligation 
                      through the succeeding fiscal year.
                    ``(B) Publications.--The Secretary shall, on the 
                basis of the amounts appropriated as described in this 
                paragraph--
                          ``(i) <<NOTE: Deadline.>>  publish, not later 
                      than July 1 of the fiscal year for which the 
                      amounts are appropriated, information indicating 
                      the amount of the allotments to be made to each 
                      affected school under section 1127, of 80 percent 
                      of such appropriated amounts; and

[[Page 115 STAT. 2040]]

                          ``(ii) <<NOTE: Deadline.>>  publish, not later 
                      than September 30 of such fiscal year, information 
                      indicating the amount of the allotments to be made 
                      under section 1127, from the remaining 20 percent 
                      of such appropriated amounts, adjusted to reflect 
                      the actual student attendance.
                    ``(C) Overpayments.--Any overpayments made to tribal 
                schools shall be returned to the Secretary not later 
                than 30 days after the final determination that the 
                school was overpaid pursuant to this section.
            ``(3) Limitation.--
                    ``(A) Expenditures.--Notwithstanding any other 
                provision of law (including a regulation), the 
                supervisor of a Bureau-operated school may expend an 
                aggregate of not more than $50,000 of the amount 
                allotted to the school under section 1127 to acquire 
                materials, supplies, equipment, operation services, 
                maintenance services, and other services for the school, 
                and amounts received as operations and maintenance 
                funds, funds received from the Department of Education, 
                or funds received from other Federal sources, without 
                competitive bidding if--
                          ``(i) the cost for any single item acquired 
                      does not exceed $15,000;
                          ``(ii) the school board approves the 
                      acquisition;
                          ``(iii) the supervisor certifies that the cost 
                      is fair and reasonable;
                          ``(iv) the documents relating to the 
                      acquisition executed by the supervisor of the 
                      school or other school staff cite this paragraph 
                      as authority for the acquisition; and
                          ``(v) the acquisition transaction is 
                      documented in a journal maintained at the school 
                      that clearly identifies when the transaction 
                      occurred, the item that was acquired and from 
                      whom, the price paid, the quantities acquired, and 
                      any other information the supervisor or the school 
                      board considers to be relevant.
                    ``(B) <<NOTE: Deadline.>>  Notice.--Not later than 6 
                months after the date of enactment of the Native 
                American Education Improvement Act of 2001, the 
                Secretary shall send notice of the provisions of this 
                paragraph to each supervisor of a Bureau school and 
                associated school board chairperson, the education line 
                officer of each agency and area, and the Bureau division 
                in charge of procurement, at both the local and national 
                levels.
                    ``(C) Application and guidelines.--The Director of 
                the Office shall be responsible for--
                          ``(i) determining the application of this 
                      paragraph, including the authorization of specific 
                      individuals to carry out this paragraph;
                          ``(ii) ensuring that there is at least one 
                      such individual at each Bureau facility; and
                          ``(iii) the provision of guidelines on the use 
                      of this paragraph and adequate training on such 
                      guidelines.
            ``(4) Effect of sequestration order.--If a sequestration 
        order issued under the Balanced Budget and Emergency Deficit 
        Control Act of 1985 reduces the amount of funds available for 
        allotment under section 1127 for any fiscal year by more

[[Page 115 STAT. 2041]]

        than 7 percent of the amount of funds available for allotment 
        under such section during the preceding fiscal year--
                    ``(A) to fund allotments under section 1127, the 
                Secretary, notwithstanding any other law, may use--
                          ``(i) funds appropriated for the operation of 
                      any Bureau-funded school that is closed or 
                      consolidated; and
                          ``(ii) funds appropriated for any program that 
                      has been curtailed at any Bureau school; and
                    ``(B) the Secretary may waive the application of the 
                provisions of section 1121(h) with respect to the 
                closure or consolidation of a school, or the curtailment 
                of a program at a school, during such fiscal year if the 
                funds described in clauses (i) and (ii) of subparagraph 
                (A) with respect to such school are used to fund 
                allotments made under section 1127 for such fiscal year.

    ``(b) Local Financial Plans for Expenditure of Funds.--
            ``(1) Plan required.--Each Bureau-operated school that 
        receives an allotment under section 1127 shall prepare a local 
        financial plan that specifies the manner in which the school 
        will expend the funds made available under the allotment and 
        ensures that the school will meet the accreditation requirements 
        or standards for the school pursuant to section 1121.
            ``(2) Requirement.--A local financial plan under paragraph 
        (1) shall comply with all applicable Federal and tribal laws.
            ``(3) Preparation and revision.--
                    ``(A) In general.--The financial plan for a school 
                under subparagraph (A) shall be prepared by the 
                supervisor of the school in active consultation with the 
                local school board for the school.
                    ``(B) Authority of school board.--The local school 
                board for each school shall have the authority to 
                ratify, reject, or amend such financial plan and, at the 
                initiative of the local school board or in response to 
                the supervisor of the school, to revise such financial 
                plan to meet needs not foreseen at the time of 
                preparation of the financial plan.
            ``(4) Role of supervisor.--The supervisor of the school--
                    ``(A) shall implement the decisions of the school 
                board relating to the financial plan under paragraph 
                (1);
                    ``(B) shall provide the appropriate local union 
                representative of the education employees of the school 
                with copies of proposed financial plans relating to the 
                school and all modifications and proposed modifications 
                to the plans, and at the same time submit such copies to 
                the local school board; and
                    ``(C) may appeal any such action of the local school 
                board to the appropriate education line officer of the 
                Bureau agency by filing a written statement describing 
                the action and the reasons the supervisor believes such 
                action should be overturned.
            ``(5) Statements.--
                    ``(A) In general.--A copy of each statement filed 
                under paragraph (4)(C) shall be submitted to the local 
                school board and such board shall be afforded an 
                opportunity to respond, in writing, to such appeal.

[[Page 115 STAT. 2042]]

                    ``(B) Overturned actions.--After reviewing such 
                written appeal and response, the appropriate education 
                line officer may, for good cause, overturn the action of 
                the local school board.
                    ``(C) Transmission of determination.--The 
                appropriate education line officer shall transmit the 
                determination of such appeal in the form of a written 
                opinion to such board and to such supervisor identifying 
                the reasons for overturning such action.

    ``(c) Tribal Division of Education, Self-Determination Grant and 
Contract Funds.--The Secretary may approve applications for funding 
tribal divisions of education and developing tribal codes of education, 
from funds made available pursuant to section 103(a) of the Indian Self-
Determination and Education Assistance Act.
    ``(d) Technical Assistance and Training.--In carrying out this 
section, a local school board may request technical assistance and 
training from the Secretary, and the Secretary shall, to the maximum 
extent practicable, provide those services and make appropriate 
provisions in the budget of the Office for the provision of those 
services.
    ``(e) Summer Program of Academic and Support Services.--
            ``(1) Plan.--
                    ``(A) In general.--A financial plan under subsection 
                (b) for a school may include, at the discretion of the 
                local administrator and the school board of such school, 
                a provision for a summer program of academic and support 
                services for students of the school.
                    ``(B) Prevention activities.--Any such program may 
                include activities related to the prevention of alcohol 
                and substance abuse.
                    ``(C) Summer use.--The Assistant Secretary for 
                Indian Affairs shall provide for the use of any such 
                school facility during any summer in which such use is 
                requested.
            ``(2) Use of other funds.--Notwithstanding any other 
        provision of law, funds authorized under the Act of April 16, 
        1934, and this Act may be used to augment the services provided 
        in each summer program at the option, and under the control, of 
        the tribe or Indian controlled school receiving such funds.
            ``(3) Technical assistance and program coordination.--The 
        Assistant Secretary for Indian Affairs, acting through the 
        Director of the Office, shall--
                    ``(A) provide technical assistance and coordination 
                for any program described in paragraph (1); and
                    ``(B) to the extent practicable, encourage the 
                coordination of such programs with any other summer 
                programs that might benefit Indian youth, regardless of 
                the funding source or administrative entity of any such 
                program.

    ``(f) Cooperative Agreements.--
            ``(1) Implementation.--
                    ``(A) In general.--From funds allotted to a Bureau 
                school under section 1127, the Secretary shall, if 
                specifically requested by the appropriate tribal 
                governing body, implement a cooperative agreement that 
                is entered into between the tribe, the Bureau, the local 
                school board, and a local

[[Page 115 STAT. 2043]]

                public school district that meets the requirements of 
                paragraph (2) and involves the school.
                    ``(B) Terms.--The tribe, the Bureau, the school 
                board, and the local public school district shall 
                determine the terms of an agreement entered into under 
                subparagraph (A).
            ``(2) Coordination provisions.--An agreement under paragraph 
        (1) may, with respect to the Bureau school and schools in the 
        school district involved, encompass coordination of all or any 
        part of the following:
                    ``(A) The academic program and curriculum, unless 
                the Bureau school is accredited by a State or regional 
                accrediting entity and would not continue to be so 
                accredited if the agreement encompassed the program and 
                curriculum.
                    ``(B) Support services, including procurement and 
                facilities maintenance.
                    ``(C) Transportation.
            ``(3) Equal benefit and burden.--
                    ``(A) In general.--Each agreement entered into under 
                paragraph (1) shall confer a benefit upon the Bureau 
                school commensurate with the burden assumed by the 
                school.
                    ``(B) Limitation.--Subparagraph (A) shall not be 
                construed to require equal expenditures, or an exchange 
                of similar services, by the Bureau school and schools in 
                the school district.

    ``(g) Product or Result of Student Projects.--Notwithstanding any 
other provision of law, in a case in which there is agreement on action 
between the superintendent and the school board of a Bureau-funded 
school, the product or result of a project conducted in whole or in 
major part by a student may be given to that student upon the completion 
of such project.
    ``(h) Matching Fund Requirements.--
            ``(1) Not considered federal funds.--Notwithstanding any 
        other provision of law, funds received by a Bureau-funded school 
        under this title for education-related activities (not including 
        funds for construction, maintenance, and facilities improvement 
        or repair) shall not be considered Federal funds for the 
        purposes of a matching funds requirement for any Federal 
        program.
            ``(2) Limitation.--In considering an application from a 
        Bureau-funded school for participation in a program or project 
        that requires matching funds, the entity administering such 
        program or project or awarding such grant shall not give 
        positive or negative weight to such application based solely on 
        the provisions of paragraph (1).

``SEC. 1131. <<NOTE: 25 USC 2011.>>  POLICY FOR INDIAN CONTROL OF INDIAN 
            EDUCATION.

    ``(a) Facilitation of Indian Control.--It shall be the policy of the 
United States acting through the Secretary, in carrying out the 
functions of the Bureau, to facilitate Indian control of Indian affairs 
in all matters relating to education.
    ``(b) Consultation With Tribes.--
            ``(1) In general.--All actions under this Act shall be done 
        with active consultation with tribes. The United States acting 
        through the Secretary and tribes shall work in a government-

[[Page 115 STAT. 2044]]

        to-government relationship to ensure quality education for all 
        tribal members.
            ``(2) Requirements.--
                    ``(A) Definition of consultation.--In this 
                subsection, the term `consultation' means a process 
                involving the open discussion and joint deliberation of 
                all options with respect to potential issues or changes 
                between the Bureau and all interested parties.
                    ``(B) Discussion and joint deliberation.--During 
                discussions and joint deliberations, interested parties 
                (including tribes and school officials) shall be given 
                an opportunity--
                          ``(i) to present issues (including proposals 
                      regarding changes in current practices or 
                      programs) that will be considered for future 
                      action by the Secretary; and
                          ``(ii) to participate and discuss the options 
                      presented, or to present alternatives, with the 
                      views and concerns of the interested parties given 
                      effect unless the Secretary determines, from 
                      information available from or presented by the 
                      interested parties during one or more of the 
                      discussions and deliberations, that there is a 
                      substantial reason for another course of action.
                    ``(C) Explanation by secretary.--The Secretary shall 
                submit to any Member of Congress, within 18 days of the 
                receipt of a written request by such Member, a written 
                explanation of any decision made by the Secretary which 
                is not consistent with the views of the interested 
                parties described in subparagraph (B).

``SEC. 1132. <<NOTE: 25 USC 2012.>>  INDIAN EDUCATION PERSONNEL.

    ``(a) In General.--Chapter 51, subchapter III of chapter 53, and 
chapter 63 of title 5, United States Code, relating to classification, 
pay and leave, respectively, and the sections of such title relating to 
the appointment, promotion, hours of work, and removal of civil service 
employees, shall not apply to educators or to education positions (as 
defined in subsection (p)).
    ``(b) <<NOTE: Deadline.>>  Regulations.--Not later than 60 days 
after the date of enactment of the Native American Education Improvement 
Act of 2001, the Secretary shall prescribe regulations to carry out this 
section. Such regulations shall provide for--
            ``(1) the establishment of education positions;
            ``(2) the establishment of qualifications for educators and 
        education personnel;
            ``(3) the fixing of basic compensation for educators and 
        education positions;
            ``(4) the appointment of educators;
            ``(5) the discharge of educators;
            ``(6) the entitlement of educators to compensation;
            ``(7) the payment of compensation to educators;
            ``(8) the conditions of employment of educators;
            ``(9) the leave system for educators;
            ``(10) the annual leave and sick leave for educators;
            ``(11) the length of the school year applicable to education 
        positions described in subsection (a); and
            ``(12) such additional matters as may be appropriate.

    ``(c) Qualifications of Educators.--

[[Page 115 STAT. 2045]]

            ``(1) Requirements.--In prescribing regulations to govern 
        the qualifications of educators, the Secretary shall require 
        that--
                    ``(A) lists of qualified and interviewed applicants 
                for education positions be maintained in each agency and 
                area office of the Bureau from among individuals who 
                have applied at the agency or area level for an 
                education position or who have applied at the national 
                level and have indicated in such application an interest 
                in working in certain areas or agencies;
                    ``(B) a local school board shall have the authority 
                to waive on a case-by-case basis, any formal education 
                or degree qualifications established by regulation 
                pursuant to subsection (b)(2), in order for a tribal 
                member to be hired in an education position to teach 
                courses on tribal culture and language and that subject 
                to subsection (e)(2), a determination by a school board 
                that such a person be hired shall be instituted by the 
                supervisor of the school involved; and
                    ``(C) that it shall not be a prerequisite to the 
                employment of an individual in an education position at 
                the local level that--
                          ``(i) such individual's name appear on a list 
                      maintained pursuant to subparagraph (A); or
                          ``(ii) such individual have applied at the 
                      national level for an education position.
            ``(2) Exception for certain temporary employment.--The 
        Secretary may authorize the temporary employment in an education 
        position of an individual who has not met the certification 
        standards established pursuant to regulations if the Secretary 
        determines that failure to do so would result in that position 
        remaining vacant.

    ``(d) Hiring of Educators.--
            ``(1) Requirements.--In prescribing regulations to govern 
        the appointment of educators, the Secretary shall require--
                    ``(A)(i)(I) that educators employed in a Bureau 
                school (other than the supervisor of the school) shall 
                be hired by the supervisor of the school; and
                    ``(II) in a case in which there are no qualified 
                applicants available to fill a vacancy at a Bureau 
                school, the supervisor may consult a list maintained 
                pursuant to subsection (c)(1)(A);
                    ``(ii) each supervisor of a Bureau school shall be 
                hired by the education line officer of the agency office 
                of the Bureau for the jurisdiction in which the school 
                is located;
                    ``(iii) each educator employed in an agency office 
                of the Bureau shall be hired by the superintendent for 
                education of the agency office; and
                    ``(iv) each education line officer and educator 
                employed in the office of the Director of the Office 
                shall be hired by the Director;
                    ``(B)(i) before an individual is employed in an 
                education position in a Bureau school by the supervisor 
                of the school (or, with respect to the position of 
                supervisor, by the appropriate agency education line 
                officer), the local school board for the school shall be 
                consulted; and

[[Page 115 STAT. 2046]]

                    ``(ii) that a determination by such school board, as 
                evidenced by school board records, that such individual 
                should or should not be so employed shall be instituted 
                by the supervisor (or with respect to the position of 
                supervisor, by the superintendent for education of the 
                agency office);
                    ``(C)(i) before an individual is employed in an 
                education position in an agency or area office of the 
                Bureau, the appropriate agency school board shall be 
                consulted; and
                    ``(ii) a determination by such school board, as 
                evidenced by school board records, that such individual 
                should or should not be employed shall be instituted by 
                the superintendent for education of the agency office; 
                and
                    ``(D) all employment decisions or actions be in 
                compliance with all applicable Federal, State, and 
                tribal laws.
            ``(2) Information regarding application at national level.--
                    ``(A) In general.--Any individual who applies at the 
                local level for an education position shall state on 
                such individual's application whether or not such 
                individual has applied at the national level for an 
                education position in the Bureau.
                    ``(B) Determination of accuracy.--If such individual 
                is employed at the local level, such individual's name 
                shall be immediately forwarded to the Secretary, who 
                shall, as soon as practicable but in no event in more 
                than 30 days, ascertain the accuracy of the statement 
                made by such individual pursuant to subparagraph (A).
                    ``(C) False statements.--Notwithstanding subsection 
                (e), if the individual's statement is found to have been 
                false, such individual, at the Secretary's discretion, 
                may be disciplined or discharged.
                    ``(D) Conditional appointment for national 
                provision.--If the individual has applied at the 
                national level for an education position in the Bureau, 
                the appointment of such individual at the local level 
                shall be conditional for a period of 90 days, during 
                which period the Secretary may appoint a more qualified 
                individual (as determined by the Secretary) from the 
                list maintained at the national level pursuant to 
                subsection (c)(1)(A)(ii) to the position to which such 
                individual was appointed.
            ``(3) Statutory construction.--Except as expressly provided, 
        nothing in this section shall be construed as conferring upon 
        local school boards authority over, or control of, educators at 
        Bureau-funded schools or the authority to issue management 
        decisions.
            ``(4) Appeals.--
                    ``(A) By supervisor.--
                          ``(i) In general.--The supervisor of a school 
                      may appeal to the appropriate agency education 
                      line officer any determination by the local school 
                      board for the school that an individual be 
                      employed, or not be employed, in an education 
                      position in the school (other than that of 
                      supervisor) by filing a written statement 
                      describing the determination and the reasons the 
                      supervisor believes such determination should be 
                      overturned.

[[Page 115 STAT. 2047]]

                          ``(ii) Action by board.--A copy of such 
                      statement shall be submitted to the local school 
                      board and such board shall be afforded an 
                      opportunity to respond, in writing, to such 
                      appeal.
                          ``(iii) Overturning of determination.--After 
                      reviewing such written appeal and response, the 
                      education line officer may, for good cause, 
                      overturn the determination of the local school 
                      board.
                          ``(iv) Transmission of determination.--The 
                      education line officer shall transmit the 
                      determination of such appeal in the form of a 
                      written opinion to such board and to such 
                      supervisor identifying the reasons for overturning 
                      such determination.
                    ``(B) By education line officer.--
                          ``(i) In general.--The education line officer 
                      of an agency office of the Bureau may appeal to 
                      the Director of the Office any determination by 
                      the local school board for the school that an 
                      individual be employed, or not be employed, as the 
                      supervisor of a school by filing a written 
                      statement describing the determination and the 
                      reasons the supervisor believes such determination 
                      should be overturned.
                          ``(ii) Action by board.--A copy of such 
                      statement shall be submitted to the local school 
                      board and such board shall be afforded an 
                      opportunity to respond, in writing, to such 
                      appeal.
                          ``(iii) Overturning of determination.--After 
                      reviewing such written appeal and response, the 
                      Director may, for good cause, overturn the 
                      determination of the local school board.
                          ``(iv) Transmission of determination.--The 
                      Director shall transmit the determination of such 
                      appeal in the form of a written opinion to such 
                      board and to such education line officer 
                      identifying the reasons for overturning such 
                      determination.
            ``(5) Other appeals.--
                    ``(A) In general.--The education line officer of an 
                agency office of the Bureau may appeal to the Director 
                of the Office any determination by the agency school 
                board that an individual be employed, or not be 
                employed, in an education position in such agency office 
                by filing a written statement describing the 
                determination and the reasons the supervisor believes 
                such determination should be overturned.
                    ``(B) Action by board.--A copy of such statement 
                shall be submitted to the agency school board and such 
                board shall be afforded an opportunity to respond, in 
                writing, to such appeal.
                    ``(C) Overturning of determination.--After reviewing 
                such written appeal and response, the Director may, for 
                good cause, overturn the determination of the agency 
                school board.
                    ``(D) Transmission of determination.--The Director 
                shall transmit the determination of such appeal in the 
                form of a written opinion to such board and to such 
                education line officer identifying the reasons for 
                overturning such determination.

[[Page 115 STAT. 2048]]

    ``(e) Discharge and Conditions of Employment of Educators.--
            ``(1) Regulations.--In promulgating regulations to govern 
        the discharge and conditions of employment of educators, the 
        Secretary shall require--
                    ``(A) that procedures shall be established for the 
                rapid and equitable resolution of grievances of 
                educators;
                    ``(B) that no educator may be discharged without 
                notice of the reasons for the discharge and an 
                opportunity for a hearing under procedures that comport 
                with the requirements of due process; and
                    ``(C) <<NOTE: Deadline.>>  that each educator 
                employed in a Bureau school shall be notified 30 days 
                prior to the end of an academic year whether the 
                employment contract of the individual will be renewed 
                for the following year.
            ``(2) Procedures for discharge.--
                    ``(A) Determinations.--
                          ``(i) In general.--Except as provided in 
                      clause (iii), the supervisor of a Bureau school 
                      may discharge (subject to procedures established 
                      under paragraph (1)(B)) for cause (as determined 
                      under regulations prescribed by the Secretary) any 
                      educator employed in such school.
                          ``(ii) Notification of board.--On giving 
                      notice to an educator of the supervisor's 
                      intention to discharge the educator, the 
                      supervisor shall immediately notify the local 
                      school board of the proposed discharge.
                          ``(iii) Determination by board.--If the local 
                      school board determines that such educator shall 
                      not be discharged, that determination shall be 
                      followed by the supervisor.
                    ``(B) Appeals.--
                          ``(i) In general.--The supervisor shall have 
                      the right to appeal to the education line officer 
                      of the appropriate agency office of the Bureau a 
                      determination by a local school board under 
                      subparagraph (A)(iii), as evidenced by school 
                      board records, not to discharge an educator.
                          ``(ii) Decision of agency education line 
                      officer.--Upon hearing such an appeal, the agency 
                      education line officer may, for good cause, issue 
                      a decision overturning the determination of the 
                      local school board with respect to the employment 
                      of such individual.
                          ``(iii) Form of decision.--The education line 
                      officer shall make the decision in writing and 
                      submit the decision to the local school board.
            ``(3) Recommendations of school boards for discharge.--Each 
        local school board for a Bureau school shall have the right--
                    ``(A) to recommend to the supervisor that an 
                educator employed in the school be discharged; and
                    ``(B) to recommend to the education line officer of 
                the appropriate agency office of the Bureau and to the 
                Director of the Office, that the supervisor of the 
                school be discharged.

    ``(f) Applicability of Indian Preference Laws.--

[[Page 115 STAT. 2049]]

            ``(1) Applicability.--
                    ``(A) In general.--Notwithstanding any provision of 
                the Indian preference laws, such laws shall not apply in 
                the case of any personnel action carried out under this 
                section with respect to an applicant or employee not 
                entitled to an Indian preference if each tribal 
                organization concerned--
                          ``(i) grants a written waiver of the 
                      application of those laws with respect to the 
                      personnel action; and
                          ``(ii) states that the waiver is necessary.
                    ``(B) No effect on responsibility of bureau.--This 
                paragraph shall not be construed to relieve the 
                responsibility of the Bureau to issue timely and 
                adequate announcements and advertisements concerning any 
                such personnel action if such action is intended to fill 
                a vacancy (no matter how such vacancy is created).
            ``(2) Definitions.--In this subsection:
                    ``(A) Indian preference laws.--
                          ``(i) In general.--The term `Indian preference 
                      laws' means section 12 of the Act of June 18, 1934 
                      (48 Stat. 986, chapter 576) or any other provision 
                      of law granting a preference to Indians in 
                      promotions and other personnel actions.
                          ``(ii) Exclusion.--The term `Indian preference 
                      laws' does not include section 7(b) of the Indian 
                      Self-Determination and Education Assistance Act.
                    ``(B) Tribal organization.--The term `tribal 
                organization' means--
                          ``(i) the recognized governing body of any 
                      Indian tribe, band, nation, pueblo, or other 
                      organized community, including a Native village 
                      (as defined in section 3(c) of the Alaska Native 
                      Claims Settlement Act); or
                          ``(ii) in connection with any personnel action 
                      referred to in this subsection, any local school 
                      board to which the governing body has delegated 
                      the authority to grant a waiver under this 
                      subsection with respect to a personnel action.

    ``(g) Compensation or Annual Salary.--
            ``(1) In general.--
                    ``(A) Compensation for educators and education 
                positions.--Except as otherwise provided in this 
                section, the Secretary shall establish the compensation 
                or annual salary rate for educators and education 
                positions--
                          ``(i) at rates in effect under the General 
                      Schedule for individuals with comparable 
                      qualifications, and holding comparable positions, 
                      to whom chapter 51 of title 5, United States Code, 
                      is applicable; or
                          ``(ii) on the basis of the Federal Wage System 
                      schedule in effect for the locality involved, and 
                      for the comparable positions, at the rates of 
                      compensation in effect for the senior executive 
                      service.
                    ``(B) Compensation or salary for teachers and 
                counselors.--
                          ``(i) In general.--The Secretary shall 
                      establish the rate of compensation, or annual 
                      salary rate, for the positions of teachers and 
                      counselors (including dormitory counselors and 
                      home-living counselors) at the

[[Page 115 STAT. 2050]]

                      rate of compensation applicable (on the date of 
                      enactment of the Native American Education 
                      Improvement Act of 2001 and thereafter) for 
                      comparable positions in the overseas schools under 
                      the Defense Department Overseas Teachers Pay and 
                      Personnel Practices Act.
                          ``(ii) Essential provisions.--The Secretary 
                      shall allow the local school boards involved 
                      authority to implement only the aspects of the 
                      Defense Department Overseas Teachers Pay and 
                      Personnel Practices Act pay provisions that are 
                      considered essential for recruitment and retention 
                      of teachers and counselors. Implementation of such 
                      provisions shall not be construed to require the 
                      implementation of that entire Act.
                    ``(C) Rates for new hires.--
                          ``(i) In general.--Beginning with the first 
                      fiscal year following the date of enactment of the 
                      Native American Education Improvement Act of 2001, 
                      each local school board of a Bureau school may 
                      establish a rate of compensation or annual salary 
                      rate described in clause (ii) for teachers and 
                      counselors (including academic counselors) who are 
                      new hires at the school and who had not worked at 
                      the school, as of the first day of such fiscal 
                      year.
                          ``(ii) Consistent rates.--The rates 
                      established under clause (i) shall be consistent 
                      with the rates paid for individuals in the same 
                      positions, with the same tenure and training, as 
                      the teachers and counselors, in any other school 
                      within whose boundaries the Bureau school is 
                      located.
                          ``(iii) Decreases.--In a case in which the 
                      establishment of rates under clause (i) causes a 
                      reduction in compensation at a school from the 
                      rate of compensation that was in effect for the 
                      first fiscal year following the date of enactment 
                      of the Native American Education Improvement Act 
                      of 2001, the new rates of compensation may be 
                      applied to the compensation of employees of the 
                      school who worked at the school as of such date of 
                      enactment by applying those rates at each contract 
                      renewal for the employees so that the reduction 
                      takes effect in three equal installments.
                          ``(iv) Increases.--In a case in which adoption 
                      of rates under clause (i) leads to an increase in 
                      the payment of compensation from that which was in 
                      effect for the fiscal year following the date of 
                      enactment of the Native American Education 
                      Improvement Act of 2001, the school board may make 
                      such rates applicable at the next contract renewal 
                      such that--
                                    ``(I) the increase occurs in its 
                                entirety; or
                                    ``(II) the increase is applied in 
                                three equal installments.
                    ``(D) Use of regulations; continued employment of 
                certain educators.--The establishment of rates of basic 
                compensation and annual salary rates under subparagraphs 
                (B) and (C) shall not--
                          ``(i) preclude the use of regulations and 
                      procedures used by the Bureau prior to April 28, 
                      1988, in making

[[Page 115 STAT. 2051]]

                      determinations regarding promotions and 
                      advancements through levels of pay that are based 
                      on the merit, education, experience, or tenure of 
                      the educator; or
                          ``(ii) affect the continued employment or 
                      compensation of an educator who was employed in an 
                      education position on October 31, 1979, and who 
                      did not make an election under subsection (p) as 
                      in effect on January 1, 1990.
            ``(2) Post differential rates.--
                    ``(A) In general.--The Secretary may pay a post 
                differential rate, not to exceed 25 percent of the rate 
                of compensation, for educators or education positions, 
                on the basis of conditions of environment or work that 
                warrant additional pay, as a recruitment and retention 
                incentive.
                    ``(B) Supervisor's authority.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), on the request of the supervisor and 
                      the local school board of a Bureau school, the 
                      Secretary shall grant the supervisor of the school 
                      authorization to provide one or more post 
                      differential rates under subparagraph (A).
                          ``(ii) Exception.--The Secretary shall 
                      disapprove, or approve with a modification, a 
                      request for authorization to provide a post 
                      differential rate if the Secretary determines for 
                      clear and convincing reasons (and advises the 
                      board in writing of those reasons) that the rate 
                      should be disapproved or decreased because the 
                      disparity of compensation between the appropriate 
                      educators or positions in the Bureau school, and 
                      the comparable educators or positions at the 
                      nearest public school, is--
                                    ``(I)(aa) at least 5 percent; or
                                    ``(bb) less than 5 percent; and
                                    ``(II) does not affect the 
                                recruitment or retention of employees at 
                                the school.
                          ``(iii) Approval of requests.--A request made 
                      under clause (i) shall be considered to be 
                      approved at the end of the 60th day after the 
                      request is received in the Central Office of the 
                      Bureau unless before that time the request is 
                      approved, approved with a modification, or 
                      disapproved by the Secretary.
                          ``(iv) Discontinuation of or decrease in 
                      rates.--The Secretary or the supervisor of a 
                      Bureau school may discontinue or decrease a post 
                      differential rate provided for under this 
                      paragraph at the beginning of an academic year 
                      if--
                                    ``(I) the local school board 
                                requests that such differential be 
                                discontinued or decreased; or
                                    ``(II) the Secretary or the 
                                supervisor, respectively, determines for 
                                clear and convincing reasons (and 
                                advises the board in writing of those 
                                reasons) that there is no disparity of 
                                compensation that would affect the 
                                recruitment or retention of employees at 
                                the school after the differential is 
                                discontinued or decreased.

[[Page 115 STAT. 2052]]

                          ``(v) Reports.--On or before February 1 of 
                      each year, the Secretary shall submit to Congress 
                      a report describing the requests and approvals of 
                      authorization made under this paragraph during the 
                      previous year and listing the positions receiving 
                      post differential rates under contracts entered 
                      into under those authorizations.

    ``(h) Liquidation of Remaining Leave Upon Termination.--Upon 
termination of employment with the Bureau, any annual leave remaining to 
the credit of an individual covered by this section shall be liquidated 
in accordance with sections 5551(a) and 6306 of title 5, United States 
Code, except that leave earned or accrued under regulations promulgated 
pursuant to subsection (b)(10) shall not be so liquidated.
    ``(i) Transfer of Remaining Sick Leave Upon Transfer, Promotion, or 
Reemployment.--In the case of any educator who is transferred, promoted, 
or reappointed, without break in service, to a position in the Federal 
Government under a different leave system, any remaining leave to the 
credit of such person earned or credited under the regulations 
promulgated pursuant to subsection (b)(10) shall be transferred to such 
person's credit in the employing agency on an adjusted basis in 
accordance with regulations which shall be promulgated by the Office of 
Personnel Management.
    ``(j) Ineligibility for Employment of Voluntarily Terminated 
Educators.--An educator who voluntarily terminates employment with the 
Bureau before the expiration of the existing employment contract between 
such educator and the Bureau shall not be eligible to be employed in 
another education position in the Bureau during the remainder of the 
term of such contract.
    ``(k) Dual Compensation.--In the case of any educator employed in an 
education position described in subsection (l)(1)(A) who--
            ``(1) is employed at the close of a school year;
            ``(2) agrees in writing to serve in such position for the 
        next school year; and
            ``(3) is employed in another position during the recess 
        period immediately preceding such next school year, or during 
        such recess period receives additional compensation referred to 
        in section 5533 of title 5, United States Code, relating to dual 
        compensation,

shall not apply to such educator by reason of any such employment during 
a recess period for any receipt of additional compensation.
    ``(l) Voluntary Services.--
            ``(1) In general.--Notwithstanding section 1342 of title 31, 
        United States Code, the Secretary may, subject to the approval 
        of the local school board concerned, accept voluntary services 
        on behalf of Bureau schools.
            ``(2) Federal employee protection.--Nothing in this part 
        requires Federal employees to work without compensation or 
        allows the use of volunteer services to displace or replace 
        Federal employees.
            ``(3) Federal status.--An individual providing volunteer 
        services under this section is a Federal employee only for 
        purposes of chapter 81 of title 5, United States Code, and 
        chapter 171 of title 28, United States Code.

    ``(m) Proration of Pay.--

[[Page 115 STAT. 2053]]

            ``(1) Election of employee.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, including laws relating to dual 
                compensation, the Secretary, at the election of the 
                employee, shall prorate the salary of an employee 
                employed in an education position for the academic 
                school year over the entire 12-month period.
                    ``(B) Election.--Each educator employed for the 
                academic school year shall annually elect to be paid on 
                a 12-month basis or for those months while school is in 
                session.
                    ``(C) No loss of pay or benefits.--No educator shall 
                suffer a loss of pay or benefits, including benefits 
                under unemployment or other Federal or federally 
                assisted programs, because of such election.
            ``(2) Change of election.--During the course of such year 
        the employee may change election once.
            ``(3) Lump sum payment.--That portion of the employee's pay 
        which would be paid between academic school years may be paid in 
        a lump sum at the election of the employee.
            ``(4) Nonapplicability.--This subsection applies to those 
        individuals employed under the provisions of section 1132 of 
        this title or title 5, United States Code.
            ``(5) Definitions.--For purposes of this subsection, the 
        terms `educator' and `education position' have the meanings 
        contained in paragraphs (1) and (2) of subsection (o).

    ``(n) Extracurricular Activities.--
            ``(1) Stipend.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, the Secretary may provide, for each 
                Bureau area, a stipend in lieu of overtime premium pay 
                or compensatory time off.
                    ``(B) Provision to employees.--Any employee of the 
                Bureau who performs additional activities to provide 
                services to students or otherwise support the school's 
                academic and social programs may elect to be compensated 
                for all such work on the basis of the stipend.
                    ``(C) Nature of stipend.--Such stipend shall be paid 
                as a supplement to the employee's base pay.
            ``(2) Election not to receive stipend.--If an employee 
        elects not to be compensated through the stipend established by 
        this subsection, the appropriate provisions of title 5, United 
        States Code, shall apply.
            ``(3) Applicability of subsection.--This subsection applies 
        to all Bureau employees, regardless of whether the employee is 
        employed under section 1132 of this title or title 5, United 
        States Code.

    ``(o) Definitions.--In this section:
            ``(1) Education position.--The term `education position' 
        means a position in the Bureau the duties and responsibilities 
        of which--
                    ``(A)(i) are performed on a school year basis 
                principally in a Bureau school; and
                    ``(ii) involve--
                          ``(I) classroom or other instruction or the 
                      supervision or direction of classroom or other 
                      instruction;

[[Page 115 STAT. 2054]]

                          ``(II) any activity (other than teaching) 
                      which requires academic credits in educational 
                      theory and practice equal to the academic credits 
                      in educational theory and practice required for a 
                      bachelor's degree in education from an accredited 
                      institution of higher education;
                          ``(III) any activity in or related to the 
                      field of education notwithstanding that academic 
                      credits in educational theory and practice are not 
                      a formal requirement for the conduct of such 
                      activity; or
                          ``(IV) support services at, or associated 
                      with, the site of the school; or
                    ``(B) are performed at the agency level of the 
                Bureau and involve the implementation of education-
                related programs other than the position for agency 
                superintendent for education.
            ``(2) Educator.--The term `educator' means an individual 
        whose services are required, or who is employed, in an education 
        position.

    ``(p) Covered Individuals; Election.--This section shall apply with 
respect to any educator hired after November 1, 1979 (and to any 
educator who elected for coverage under that provision after November 1, 
1979) and to the position in which such individual is employed. The 
enactment of this section shall not affect the continued employment of 
an individual employed on October 31, 1979, in an education position, or 
such person's right to receive the compensation attached to such 
position.
    ``(q) Furlough Without Consent.--
            ``(1) In general.--An educator who was employed in an 
        education position on October 31, 1979, who was eligible to make 
        an election under subsection (p) at that time, and who did not 
        make the election under such subsection, may not be placed on 
        furlough (within the meaning of section 7511(a)(5) of title 5, 
        United States Code, without the consent of such educator for an 
        aggregate of more than 4 weeks within the same calendar year, 
        unless--
                    ``(A) the supervisor, with the approval of the local 
                school board (or of the education line officer upon 
                appeal under paragraph (2)), of the Bureau school at 
                which such educator provides services determines that a 
                longer period of furlough is necessary due to an 
                insufficient amount of funds available for personnel 
                compensation at such school, as determined under the 
                financial plan process as determined under section 
                1129(b); and
                    ``(B) all educators (other than principals and 
                clerical employees) providing services at such Bureau 
                school are placed on furloughs of equal length, except 
                that the supervisor, with the approval of the local 
                school board (or of the agency education line officer 
                upon appeal under paragraph (2)), may continue one or 
                more educators in pay status if--
                          ``(i) such educators are needed to operate 
                      summer programs, attend summer training sessions, 
                      or participate in special activities including 
                      curriculum development committees; and

[[Page 115 STAT. 2055]]

                          ``(ii) such educators are selected based upon 
                      such educator's qualifications after public notice 
                      of the minimum qualifications reasonably necessary 
                      and without discrimination as to supervisory, 
                      nonsupervisory, or other status of the educators 
                      who apply.
            ``(2) Appeals.--The supervisor of a Bureau school may appeal 
        to the appropriate agency education line officer any refusal by 
        the local school board to approve any determination of the 
        supervisor that is described in paragraph (1)(A) by filing a 
        written statement describing the determination and the reasons 
        the supervisor believes such determination should be approved. A 
        copy of such statement shall be submitted to the local school 
        board and such board shall be afforded an opportunity to 
        respond, in writing, to such appeal. After reviewing such 
        written appeal and response, the education line officer may, for 
        good cause, approve the determination of the supervisor. The 
        educational line officer shall transmit the determination of 
        such appeal in the form of a written opinion to such local 
        school board and to the supervisor identifying the reasons for 
        approving such determination.

    ``(r) Stipends.--The Secretary is authorized to provide annual 
stipends to teachers who become certified by the National Board of 
Professional Teaching Standards, the National Council on Teacher 
Quality, or other nationally recognized certification or credentialing 
organizations.

``SEC. 1133. <<NOTE: 25 USC 2013.>>  COMPUTERIZED MANAGEMENT INFORMATION 
            SYSTEM.

    ``(a) In <<NOTE: Deadline.>>  General.--Not later than 12 months 
after the date of enactment of the Native American Education Improvement 
Act of 2001, the Secretary shall update the computerized management 
information system within the Office. The information to be updated 
shall include information regarding--
            ``(1) student enrollment;
            ``(2) curricula;
            ``(3) staffing;
            ``(4) facilities;
            ``(5) community demographics;
            ``(6) student assessment information;
            ``(7) information on the administrative and program costs 
        attributable to each Bureau program, divided into discrete 
        elements;
            ``(8) relevant reports;
            ``(9) personnel records;
            ``(10) finance and payroll; and
            ``(11) such other items as the Secretary determines to be 
        appropriate.

    ``(b) Implementation <<NOTE: Deadline.>>  of System.--Not later than 
July 1, 2003, the Secretary shall complete the implementation of the 
updated computerized management information system at each Bureau field 
office and Bureau-funded school.

``SEC. 1134. <<NOTE: 25 USC 2014.>>  RECRUITMENT OF INDIAN EDUCATORS.

    ``The Secretary shall institute a policy for the recruitment of 
qualified Indian educators and a detailed plan to promote employees from 
within the Bureau. Such plan shall include opportunities for acquiring 
work experience prior to actual work assignment.

[[Page 115 STAT. 2056]]

``SEC. 1135. <<NOTE: 25 USC 2015.>>  ANNUAL REPORT; AUDITS.

    ``(a) Annual Reports.--The Secretary shall submit to each 
appropriate committee of Congress, all Bureau-funded schools, and the 
tribal governing bodies of such schools, a detailed annual report on the 
state of education within the Bureau, and any problems encountered in 
Indian education during the period covered by the report, that 
includes--
            ``(1) suggestions for the improvement of the Bureau 
        educational system and for increasing tribal or local Indian 
        control of such system; and
            ``(2) information on the status of tribally controlled 
        community colleges.

    ``(b) Budget Request.--The annual budget request for the education 
programs of the Bureau, as submitted as part of the President's next 
annual budget request under section 1105 of title 31, United States 
Code, shall include the plans required by sections 1121(c), 1122(c), and 
1124(c).
    ``(c) Financial and Compliance Audits.--The Inspector General of the 
Department of the Interior shall establish a system to ensure that 
financial and compliance audits, based upon the extent to which a school 
described in subsection (a) has complied with the local financial plan 
under section 1130, are conducted of each Bureau-operated school at 
least once every 3 years.
    ``(d) Administrative Evaluation of Schools.--The Director shall, at 
least once every 3 to 5 years, conduct a comprehensive evaluation of 
Bureau-operated schools. Such evaluation shall be in addition to any 
other program review or evaluation that may be required under Federal 
law.

``SEC. 1136. <<NOTE: 25 USC 2016.>>  RIGHTS OF INDIAN STUDENTS.

    ``The <<NOTE: Regulations.>>  Secretary shall prescribe such rules 
and regulations as are necessary to ensure the constitutional and civil 
rights of Indian students attending Bureau-funded schools, including 
such students' rights to--
            ``(1) privacy under the laws of the United States;
            ``(2) freedom of religion and expression; and
            ``(3) due process in connection with disciplinary actions, 
        suspensions, and expulsions.

``SEC. 1137. <<NOTE: 25 USC 2017.>>  REGULATIONS.

    ``(a) Promulgation.--
            ``(1) In general.--The Secretary may promulgate only such 
        regulations--
                    ``(A) as are necessary to ensure compliance with the 
                specific provisions of this part; and
                    ``(B) as the Secretary is authorized to promulgate 
                pursuant to section 5211 of the Tribally Controlled 
                Schools Act of 1988 (25 U.S.C. 2510).
            ``(2) Publication.--In promulgating the regulations, the 
        Secretary shall--
                    ``(A) <<NOTE: Federal Register, publication.>>  
                publish proposed regulations in the Federal Register; 
                and
                    ``(B) <<NOTE: Deadline.>>  provide a period of not 
                less than 120 days for public comment and consultation 
                on the regulations.
            ``(3) Citation.--The regulations shall contain, immediately 
        following each regulatory section, a citation to any statutory

[[Page 115 STAT. 2057]]

        provision providing authority to promulgate such regulatory 
        section.

    ``(b) Miscellaneous.--The provisions of this Act shall supersede any 
conflicting provisions of law (including any conflicting regulations) in 
effect on the day before the date of enactment of this Act and the 
Secretary is authorized to repeal any regulation inconsistent with the 
provisions of this Act.

``SEC. 1138. <<NOTE: 25 USC 2018.>>  REGIONAL MEETINGS AND NEGOTIATED 
            RULEMAKING.

    ``(a) Regional Meetings.--Prior to publishing any proposed 
regulations under subsection (b)(1), and prior to establishing the 
negotiated rulemaking committee under subsection (b)(3), the Secretary 
shall convene regional meetings to consult with personnel of the Office 
of Indian Education Programs, educators at Bureau schools, and tribal 
officials, parents, teachers, administrators, and school board members 
of tribes served by Bureau-funded schools to provide guidance to the 
Secretary on the content of regulations authorized to be promulgated 
under this part and the Tribally Controlled Schools Act of 1988.
    ``(b) Negotiated Rulemaking.--
            ``(1) <<NOTE: Federal Register, publication.>>  In 
        general.--Notwithstanding sections 563(a) and 565(a) of title 5, 
        United States Code, the Secretary shall promulgate regulations 
        authorized under subsection (a) and under the Tribally 
        Controlled Schools Act of 1988, in accordance with the 
        negotiated rulemaking procedures provided for under subchapter 
        III of chapter 5 of title 5, United States Code, and shall 
        publish final regulations in the Federal Register.
            ``(2) Notification to congress.--If draft regulations 
        implementing this part and the Tribally Controlled Schools Act 
        of 1988 are not promulgated in final form within 18 months after 
        the date of enactment of the Native American Education 
        Improvement Act of 2001, the Secretary shall notify the 
        appropriate committees of Congress of which draft regulations 
        were not promulgated in final form by the deadline and the 
        reason such final regulations were not promulgated.
            ``(3) Rulemaking committee.--The Secretary shall establish a 
        negotiated rulemaking committee to carry out this subsection. In 
        establishing such committee, the Secretary shall--
                    ``(A) apply the procedures provided for under 
                subchapter III of chapter 5 of title 5, United States 
                Code, in a manner that reflects the unique government-
                to-government relationship between Indian tribes and the 
                United States;
                    ``(B) ensure that the membership of the committee 
                includes only representatives of the Federal Government 
                and of tribes served by Bureau-funded schools;
                    ``(C) select the tribal representatives of the 
                committee from among individuals nominated by the 
                representatives of the tribal and tribally operated 
                schools;
                    ``(D) ensure, to the maximum extent possible, that 
                the tribal representative membership on the committee 
                reflects the proportionate share of students from tribes 
                served by the Bureau-funded school system; and
                    ``(E) comply with the Federal Advisory Committee Act 
                (5 U.S.C. App.).

[[Page 115 STAT. 2058]]

            ``(4) Special rule.--The Secretary shall carry out this 
        section using the general administrative funds of the Department 
        of the Interior. In accordance with subchapter III of chapter 5 
        of title 5, United States Code, and section 7(d) of the Federal 
        Advisory Committee Act, payment of costs associated with 
        negotiated rulemaking shall include the reasonable expenses of 
        committee members.

    ``(c) Application of Section.--
            ``(1) Supremacy of provisions.--The provisions of this 
        section shall supersede any conflicting regulations in effect on 
        the day before the date of enactment of this part, and the 
        Secretary may repeal any regulation that is inconsistent with 
        the provisions of this part.
            ``(2) Modifications.--The Secretary may modify regulations 
        promulgated under this section or the Tribally Controlled 
        Schools Act of 1988, only in accordance with this section.

``SEC. 1139. <<NOTE: 25 USC 2019.>>  EARLY CHILDHOOD DEVELOPMENT 
            PROGRAM.

    ``(a) In General.--The Secretary shall provide grants to tribes, 
tribal organizations, and consortia of tribes and tribal organizations 
to fund early childhood development programs that are operated by such 
tribes, organizations, or consortia.
    ``(b) Amount of Grants.--
            ``(1) In general.--The total amount of the grants provided 
        under subsection (a) with respect to each tribe, tribal 
        organization, or consortium of tribes or tribal organizations 
        for each fiscal year shall be equal to the amount which bears 
        the same relationship to the total amount appropriated under the 
        authority of subsection (g) for such fiscal year (less amounts 
        provided under subsection (f)) as--
                  ``(A) the total number of children under 6 years of 
                age who are members of--
                          ``(i) such tribe;
                          ``(ii) the tribe that authorized such tribal 
                      organization; or
                          ``(iii) any tribe that--
                                    ``(I) is a member of such 
                                consortium; or
                                    ``(II) authorizes any tribal 
                                organization that is a member of such 
                                consortium; bears to
                    ``(B) the total number of all children under 6 years 
                of age who are members of any tribe that--
                          ``(i) is eligible to receive funds under 
                      subsection (a);
                          ``(ii) is a member of a consortium that is 
                      eligible to receive such funds; or
                          ``(iii) authorizes a tribal organization that 
                      is eligible to receive such funds.
            ``(2) Limitation.--No grant may be provided under subsection 
        (a)--
                    ``(A) to any tribe that has less than 500 members;
                    ``(B) to any tribal organization which is 
                authorized--
                          ``(i) by only one tribe that has less than 500 
                      members; or
                          ``(ii) by one or more tribes that have a 
                      combined total membership of less than 500 
                      members; or

[[Page 115 STAT. 2059]]

                    ``(C) to any consortium composed of tribes, or 
                tribal organizations authorized by tribes, that have a 
                combined total tribal membership of less than 500 
                members.

    ``(c) Application.--
            ``(1) In general.--A grant may be provided under subsection 
        (a) to a tribe, tribal organization, or consortium of tribes and 
        tribal organizations only if the tribe, organization, or 
        consortium submits to the Secretary an application for the grant 
        at such time and in such form as the Secretary shall prescribe.
            ``(2) Contents.--Applications submitted under paragraph (1) 
        shall set forth the early childhood development program that the 
        applicant desires to operate.

    ``(d) Requirement of Programs Funded.--The early childhood 
development programs that are funded by grants provided under subsection 
(a)--
            ``(1) shall coordinate existing programs and may provide 
        services that meet identified needs of parents and children 
        under 6 years of age which are not being met by existing 
        programs, including--
                    ``(A) prenatal care;
                    ``(B) nutrition education;
                    ``(C) health education and screening;
                    ``(D) family literacy services;
                    ``(E) educational testing; and
                    ``(F) other educational services;
            ``(2) may include instruction in the language, art, and 
        culture of the tribe; and
            ``(3) shall provide for periodic assessment of the program.

    ``(e) Coordination of Family Literacy Programs.--Family literacy 
programs operated under this section and other family literacy programs 
operated by the Bureau of Indian Affairs shall be coordinated with 
family literacy programs for Indian children under part B of title I of 
the Elementary and Secondary Education Act of 1965 in order to avoid 
duplication and to encourage the dissemination of information on quality 
family literacy programs serving Indians.
    ``(f) Administrative Costs.--The Secretary shall, out of funds 
appropriated under subsection (g), include in the grants provided under 
subsection (a) amounts for administrative costs incurred by the tribe, 
tribal organization, or consortium of tribes in establishing and 
maintaining the early childhood development program.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary.

``SEC. 1140. <<NOTE: 25 USC 2020.>>  TRIBAL DEPARTMENTS OR DIVISIONS OF 
            EDUCATION.

    ``(a) In General.--Subject to the availability of appropriations, 
the Secretary shall make grants and provide technical assistance to 
tribes for the development and operation of tribal departments or 
divisions of education for the purpose of planning and coordinating all 
educational programs of the tribe.
    ``(b) Applications.--For a tribe to be eligible to receive a grant 
under this section, the governing body of the tribe shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.

[[Page 115 STAT. 2060]]

    ``(c) Diversity.--The Secretary shall award grants under this 
section in a manner that fosters geographic and population diversity.
    ``(d) Use.--Tribes that receive grants under this section shall use 
the funds made available through the grants--
            ``(1) to facilitate tribal control in all matters relating 
        to the education of Indian children on reservations (and on 
        former Indian reservations in Oklahoma);
            ``(2) to provide for the development of coordinated 
        educational programs (including all preschool, elementary, 
        secondary, and higher or vocational educational programs funded 
        by tribal, Federal, or other sources) on reservations (and on 
        former Indian reservations in Oklahoma) by encouraging tribal 
        administrative support of all Bureau-funded educational programs 
        as well as encouraging tribal cooperation and coordination with 
        entities carrying out all educational programs receiving 
        financial support from other Federal agencies, State agencies, 
        or private entities; and
            ``(3) to provide for the development and enforcement of 
        tribal educational codes, including tribal educational policies 
        and tribal standards applicable to curriculum, personnel, 
        students, facilities, and support programs.

    ``(e) Priorities.--In making grants under this section, the 
Secretary shall give priority to any application that--
            ``(1) includes--
                    ``(A) assurances that the applicant serves three or 
                more separate Bureau-funded schools; and
                    ``(B) assurances from the applicant that the tribal 
                department of education to be funded under this section 
                will provide coordinating services and technical 
                assistance to all of such schools;
            ``(2) includes assurances that all education programs for 
        which funds are provided by such a contract or grant will be 
        monitored and audited, by or through the tribal department of 
        education, to ensure that the programs meet the requirements of 
        law; and
            ``(3) provides a plan and schedule that--
                    ``(A) provides for--
                          ``(i) the assumption, by the tribal department 
                      of education, of all assets and functions of the 
                      Bureau agency office associated with the tribe, to 
                      the extent the assets and functions relate to 
                      education; and
                          ``(ii) the termination by the Bureau of such 
                      functions and office at the time of such 
                      assumption; and
                    ``(B) provides that the assumption shall occur over 
                the term of the grant made under this section, except 
                that, when mutually agreeable to the tribal governing 
                body and the Assistant Secretary, the period in which 
                such assumption is to occur may be modified, reduced, or 
                extended after the initial year of the grant.

    ``(f) Time Period of Grant.--Subject to the availability of 
appropriated funds, a grant provided under this section shall be 
provided for a period of 3 years. If the performance of the grant 
recipient is satisfactory to the Secretary, the grant may be renewed for 
additional 3-year terms.
    ``(g) Terms, Conditions, or Requirements.--A tribe that receives a 
grant under this section shall comply with regulations

[[Page 115 STAT. 2061]]

relating to grants made under section 103(a) of the Indian Self-
Determination and Education Assistance Act that are in effect on the 
date that the tribal governing body submits the application for the 
grant under subsection (b). The Secretary shall not impose any terms, 
conditions, or requirements on the provision of grants under this 
section that are not specified in this section.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $2,000,000.

``SEC. 1141. <<NOTE: 25 USC 2021.>>  DEFINITIONS.

    ``For the purposes of this part, unless otherwise specified:
            ``(1) Agency school board.--The term `agency school board' 
        means a body--
                    ``(A) the members of which are appointed by all of 
                the school boards of the schools located within an 
                agency, including schools operated under contract or 
                grant; and
                    ``(B) the number of such members is determined by 
                the Secretary, in consultation with the affected tribes;
        except that, in agencies serving a single school, the school 
        board of such school shall fulfill these duties, and in agencies 
        having schools or a school operated under contract or grant, one 
        such member at least shall be from such a school.
            ``(2) Bureau.--The term `Bureau' means the Bureau of Indian 
        Affairs of the Department of the Interior.
            ``(3) Bureau-funded school.--The term `Bureau-funded school' 
        means--
                    ``(A) a Bureau school;
                    ``(B) a contract or grant school; or
                    ``(C) a school for which assistance is provided 
                under the Tribally Controlled Schools Act of 1988.
            ``(4) Bureau school.--The term `Bureau school' means a 
        Bureau-operated elementary or secondary day or boarding school 
        or a Bureau-operated dormitory for students attending a school 
        other than a Bureau school.
            ``(5) Complementary educational facilities.--The term 
        `complementary educational facilities' means educational program 
        functional spaces such as libraries, gymnasiums, and cafeterias.
            ``(6) Contract or grant school.--The term `contract or grant 
        school' means an elementary school, secondary school, or 
        dormitory that receives financial assistance for its operation 
        under a contract, grant, or agreement with the Bureau under 
        section 102, 103(a), or 208 of the Indian Self-Determination and 
        Education Assistance Act, or under the Tribally Controlled 
        Schools Act of 1988.
            ``(7) Director.--The term `Director' means the Director of 
        the Office of Indian Education Programs.
            ``(8) Education line officer.--The term `education line 
        officer' means a member of the education personnel under the 
        supervision of the Director of the Office, whether located in a 
        central, area, or agency office.
            ``(9) Family literacy services.--The term `family literacy 
        services' has the meaning given that term in section 8101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
            ``(10) Financial plan.--The term `financial plan' means a 
        plan of services provided by each Bureau school.

[[Page 115 STAT. 2062]]

            ``(11) Indian organization.--The term `Indian organization' 
        means any group, association, partnership, corporation, or other 
        legal entity owned or controlled by a federally recognized 
        Indian tribe or tribes, or a majority of whose members are 
        members of federally recognized tribes.
            ``(12) Inherently federal functions.--The term `inherently 
        Federal functions' means functions and responsibilities which, 
        under section 1126(c), are noncontractable, including--
                    ``(A) the allocation and obligation of Federal funds 
                and determinations as to the amounts of expenditures;
                    ``(B) the administration of Federal personnel laws 
                for Federal employees;
                    ``(C) the administration of Federal contracting and 
                grant laws, including the monitoring and auditing of 
                contracts and grants in order to maintain the continuing 
                trust, programmatic, and fiscal responsibilities of the 
                Secretary;
                    ``(D) the conducting of administrative hearings and 
                deciding of administrative appeals;
                    ``(E) the determination of the Secretary's views and 
                recommendations concerning administrative appeals or 
                litigation and the representation of the Secretary in 
                administrative appeals and litigation;
                    ``(F) the issuance of Federal regulations and 
                policies as well as any documents published in the 
                Federal Register;
                    ``(G) reporting to Congress and the President;
                    ``(H) the formulation of the Secretary's and the 
                President's policies and their budgetary and legislative 
                recommendations and views; and
                    ``(I) the nondelegable statutory duties of the 
                Secretary relating to trust resources.
            ``(13) Local educational agency.--The term `local 
        educational agency' means a board of education or other legally 
        constituted local school authority having administrative control 
        and direction of free public education in a county, township, or 
        independent or other school district located within a State, and 
        includes any State agency that directly operates and maintains 
        facilities for providing free public education.
            ``(14) Local school board.--The term `local school board', 
        when used with respect to a Bureau school, means a body chosen 
        in accordance with the laws of the tribe to be served or, in the 
        absence of such laws, elected by the parents of the Indian 
        children attending the school, except that, for a school serving 
        a substantial number of students from different tribes--
                    ``(A) the members of the body shall be appointed by 
                the tribal governing bodies of the tribes affected; and
                    ``(B) the number of such members shall be determined 
                by the Secretary in consultation with the affected 
                tribes.
            ``(15) Office.--The term `Office' means the Office of Indian 
        Education Programs within the Bureau.
            ``(16) Regulation.--
                    ``(A) In general.--The term `regulation' means any 
                part of a statement of general or particular 
                applicability of the Secretary designed to carry out, 
                interpret, or prescribe law or policy in carrying out 
                this Act.
                    ``(B) Rule of construction.--Nothing in subparagraph 
                (A) or any other provision of this title shall be

[[Page 115 STAT. 2063]]

                construed to prohibit the Secretary from issuing 
                guidance, internal directives, or other documents 
                similar to the documents found in the Indian Affairs 
                Manual of the Bureau of Indian Affairs.
            ``(17) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(18) Supervisor.--The term `supervisor' means the 
        individual in the position of ultimate authority at a Bureau 
        school.
            ``(19) Tribal governing body.--The term `tribal governing 
        body' means, with respect to any school, the tribal governing 
        body, or tribal governing bodies, that represent at least 90 
        percent of the students served by such school.
            ``(20) Tribe.--The term `tribe' means any Indian tribe, 
        band, nation, or other organized group or community, including 
        an Alaska Native Regional Corporation or Village Corporation (as 
        defined in or established pursuant to the Alaska Native Claims 
        Settlement Act), which is recognized as eligible for the special 
        programs and services provided by the United States to Indians 
        because of their status as Indians.''.

SEC. 1043. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.

    The Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et seq.) 
is amended by striking sections 5202 through 5212 and inserting the 
following new sections:

``SEC. 5202. <<NOTE: 25 USC 2501.>>  DECLARATION OF POLICY.

    ``(a) Recognition.--Congress recognizes that the Indian Self-
Determination and Education Assistance Act, which was a product of the 
legitimate aspirations and a recognition of the inherent authority of 
Indian nations, was and is a crucial positive step toward tribal and 
community control and that the United States has an obligation to assure 
maximum Indian participation in the direction of educational services so 
as to render the persons administering such services and the services 
themselves more responsive to the needs and desires of Indian 
communities.
    ``(b) Commitment.--Congress declares its commitment to the 
maintenance of the Federal Government's unique and continuing trust 
relationship with and responsibility to the Indian people for the 
education of Indian children through the establishment of a meaningful 
Indian self-determination policy for education that will deter further 
perpetuation of Federal bureaucratic domination of programs.
    ``(c) National Goal.--Congress declares that a national goal of the 
United States is to provide the resources, processes, and structure that 
will enable tribes and local communities to obtain the quantity and 
quality of educational services and opportunities that will permit 
Indian children--
            ``(1) to compete and excel in areas of their choice; and
            ``(2) to achieve the measure of self-determination essential 
        to their social and economic well-being.

    ``(d) Educational Needs.--Congress affirms--
            ``(1) true self-determination in any society of people is 
        dependent upon an educational process that will ensure the 
        development of qualified people to fulfill meaningful leadership 
        roles;
            ``(2) that Indian people have special and unique educational 
        needs, including the need for programs to meet the linguistic 
        and cultural aspirations of Indian tribes and communities; and

[[Page 115 STAT. 2064]]

            ``(3) that those needs may best be met through a grant 
        process.

    ``(e) Federal Relations.--Congress declares a commitment to the 
policies described in this section and support, to the full extent of 
congressional responsibility, for Federal relations with the Indian 
nations.
    ``(f) Termination.--Congress repudiates and rejects House Concurrent 
Resolution 108 of the 83d Congress and any policy of unilateral 
termination of Federal relations with any Indian nation.

``SEC. 5203. <<NOTE: 25 USC 2502.>>  GRANTS AUTHORIZED.

    ``(a) In General.--
            ``(1) Eligibility.--The Secretary shall provide grants to 
        Indian tribes, and tribal organizations that--
                    ``(A) operate contract schools under title XI of the 
                Education Amendments of 1978 and notify the Secretary of 
                their election to operate the schools with assistance 
                under this part rather than continuing the schools as 
                contract schools;
                    ``(B) operate other tribally controlled schools 
                eligible for assistance under this part and submit 
                applications (which are approved by their tribal 
                governing bodies) to the Secretary for such grants; or
                    ``(C) elect to assume operation of Bureau-funded 
                schools with the assistance under this part and submit 
                applications (which are approved by their tribal 
                governing bodies) to the Secretary for such grants.
            ``(2) Deposit of funds.--Grants provided under this part 
        shall be deposited into the general operating fund of the 
        tribally controlled school with respect to which the grant is 
        made.
            ``(3) Use of funds.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, grants provided under this part shall be 
                used to defray, at the discretion of the school board of 
                the tribally controlled school with respect to which the 
                grant is provided, any expenditures for education 
                related activities for which any funds that compose the 
                grant may be used under the laws described in section 
                5205(a), including expenditures for--
                          ``(i) school operations, academic, 
                      educational, residential, guidance and counseling, 
                      and administrative purposes; and
                          ``(ii) support services for the school, 
                      including transportation.
                    ``(B) Exception.--Grants provided under this part 
                may, at the discretion of the school board of the 
                tribally controlled school with respect to which such 
                grant is provided, be used to defray operations and 
                maintenance expenditures for the school if any funds for 
                the operation and maintenance of the school are 
                allocated to the school under the provisions of any of 
                the laws described in section 5205(a).

    ``(b) Limitations.--
            ``(1) One grant per tribe or organization per fiscal year.--
        Not more than one grant may be provided under this

[[Page 115 STAT. 2065]]

        part with respect to any Indian tribe or tribal organization for 
        any fiscal year.
            ``(2) Nonsectarian use.--Funds provided under any grant made 
        under this part may not be used in connection with religious 
        worship or sectarian instruction.
            ``(3) Administrative costs limitation.--Funds provided under 
        any grant under this part may not be expended for administrative 
        costs (as defined in section 1128(h)(1) of the Education 
        Amendments of 1978) in excess of the amount generated for such 
        costs under section 1128 of such Act.

    ``(c) Limitation on Transfer of Funds Among School Sites.--
            ``(1) In general.--In the case of a grantee that operates 
        schools at more than one school site, the grantee may expend at 
        any school site operated by the grantee not more than the lesser 
        of--
                    ``(A) 10 percent of the funds allocated for another 
                school site under section 1128 of the Education 
                Amendments of 1978; or
                    ``(B) $400,000 of the funds allocated for another 
                school site.
            ``(2) Definition of school site.--For purposes of this 
        subsection, the term `school site' means the physical location 
        and the facilities of an elementary or secondary educational or 
        residential program operated by, or under contract or grant 
        with, the Bureau for which a discreet student count is 
        identified under the funding formula established under section 
        1127 of the Education Amendments of 1978.

    ``(d) No Requirement To Accept Grants.--Nothing in this part may be 
construed--
            ``(1) to require a tribe or tribal organization to apply for 
        or accept; or
            ``(2) to allow any person to coerce any tribe or tribal 
        organization to apply for, or accept,

a grant under this part to plan, conduct, and administer all of, or any 
portion of, any Bureau program. Such applications and the timing of such 
applications shall be strictly voluntary. Nothing in this part may be 
construed as allowing or requiring any grant with any entity other than 
the entity to which the grant is provided.
    ``(e) No Effect on Federal Responsibility.--Grants provided under 
this part shall not terminate, modify, suspend, or reduce the 
responsibility of the Federal Government to provide a program.
    ``(f) Retrocession.--
            ``(1) In general.--Whenever a tribal governing body requests 
        retrocession of any program for which assistance is provided 
        under this part, such retrocession shall become effective upon a 
        date specified by the Secretary that is not later than 120 days 
        after the date on which the tribal governing body requests the 
        retrocession. A later date may be specified if mutually agreed 
        upon by the Secretary and the tribal governing body. If such a 
        program is retroceded, the Secretary shall provide to any Indian 
        tribe served by such program at least the same quantity and 
        quality of services that would have been provided under such 
        program at the level of funding provided under this part prior 
        to the retrocession.
            ``(2) Status after retrocession.--The tribe requesting 
        retrocession shall specify whether the retrocession is to status

[[Page 115 STAT. 2066]]

        as a Bureau-operated school or as a school operated under 
        contract under the Indian Self-Determination and Education 
        Assistance Act.
            ``(3) Transfer of equipment and materials.--Except as 
        otherwise determined by the Secretary, the tribe or tribal 
        organization operating the program to be retroceded must 
        transfer to the Secretary (or to the tribe or tribal 
        organization which will operate the program as a contract 
        school) the existing equipment and materials which were 
        acquired--
                    ``(A) with assistance under this part; or
                    ``(B) upon assumption of operation of the program 
                under this part, if the school was a Bureau-funded 
                school under title XI of the Education Amendments of 
                1978 before receiving assistance under this part.

    ``(g) Prohibition of Termination for Administrative Convenience.--
Grants provided under this part may not be terminated, modified, 
suspended, or reduced solely for the convenience of the administering 
agency.

``SEC. 5204. <<NOTE: 25 USC 2503.>>  COMPOSITION OF GRANTS.

    ``(a) In General.--The grant provided under this part to an Indian 
tribe or tribal organization for any fiscal year shall consist of--
            ``(1) the total amount of funds allocated for such fiscal 
        year under sections 1127 and 1128 of the Education Amendments of 
        1978 with respect to the tribally controlled schools eligible 
        for assistance under this part which are operated by such Indian 
        tribe or tribal organization, including, but not limited to, 
        funds provided under such sections, or under any other provision 
        of law, for transportation costs;
            ``(2) to the extent requested by such Indian tribe or tribal 
        organization, the total amount of funds provided from operations 
        and maintenance accounts and, notwithstanding section 105 of the 
        Indian Self-Determination Act, or any other provision of law, 
        other facilities accounts for such schools for such fiscal year 
        (including but not limited to those referenced under section 
        1126(d) of the Education Amendments of 1978 or any other law); 
        and
            ``(3) the total amount of funds that are allocated to such 
        schools for such fiscal year under--
                    ``(A) title I of the Elementary and Secondary 
                Education Act of 1965;
                    ``(B) the Individuals with Disabilities Education 
                Act; and
                    ``(C) any other Federal education law, that are 
                allocated to such schools for such fiscal year.

    ``(b) Special Rules.--
            ``(1) In general.--
                    ``(A) Applicability of certain laws.--Funds 
                allocated to a tribally controlled school by reason of 
                paragraph (1) or (2) of subsection (a) shall be subject 
                to the provisions of this part and shall not be subject 
                to any additional restriction, priority, or limitation 
                that is imposed by the Bureau with respect to funds 
                provided under--
                          ``(i) title I of the Elementary and Secondary 
                      Education Act of 1965;

[[Page 115 STAT. 2067]]

                          ``(ii) the Individuals with Disabilities 
                      Education Act; or
                          ``(iii) any Federal education law other than 
                      title XI of the Education Amendments of 1978.
                    ``(B) Applicability of bureau provisions.--Indian 
                tribes and tribal organizations to which grants are 
                provided under this part, and tribally controlled 
                schools for which such grants are provided, shall not be 
                subject to any requirements, obligations, restrictions, 
                or limitations imposed by the Bureau that would 
                otherwise apply solely by reason of the receipt of funds 
                provided under any law referred to in clause (i), (ii), 
                or (iii) of subparagraph (A).
            ``(2) Schools considered contract schools.--Tribally 
        controlled schools for which grants are provided under this part 
        shall be treated as contract schools for the purposes of 
        allocation of funds under sections 1126(e), 1127, and 1128 of 
        the Education Amendments of 1978.
            ``(3) Schools considered bureau schools.--Tribally 
        controlled schools for which grants are provided under this 
        chapter shall be treated as Bureau schools for the purposes of 
        allocation of funds provided under--
                    ``(A) title I of the Elementary and Secondary 
                Education Act of 1965;
                    ``(B) the Individuals with Disabilities Education 
                Act; and
                    ``(C) any other Federal education law, that are 
                distributed through the Bureau.
            ``(4) Accounts; use of certain funds.--
                    ``(A) Separate account.--
                          ``(i) In general.--Notwithstanding section 
                      5204(a)(2), with respect to funds from facilities 
                      improvement and repair, alteration and renovation 
                      (major or minor), health and safety, or new 
                      construction accounts included in the grant 
                      provided under section 5204(a), the grant 
                      recipient shall maintain a separate account for 
                      such funds.
                          ``(ii) Submission of accounting.--At the end 
                      of the period designated for the work covered by 
                      the funds received, the grant recipient shall 
                      submit to the Secretary a separate accounting of 
                      the work done and the funds expended.
                          ``(iii) Use of funds.--Funds received from 
                      those accounts may only be used for the purpose 
                      for which the funds were appropriated and for the 
                      work encompassed by the application or submission 
                      for which the funds were received.
                          ``(iv) Completion of project.--Upon completion 
                      of a project for which a separate account is 
                      established under this paragraph, the portion of 
                      the grant related to such project may be closed 
                      out upon agreement by the grantee and the 
                      Secretary.
                    ``(B) Requirements for projects.--
                          ``(i) Regulatory requirements.--With respect 
                      to a grant to a tribally controlled school under 
                      this part for new construction or facilities 
                      improvements and repair in excess of $100,000, 
                      such grant shall be subject to the Administrative 
                      and Audit Requirements and

[[Page 115 STAT. 2068]]

                      Cost Principles for Assistance Programs contained 
                      in part 12 of title 43, Code of Federal 
                      Regulations.
                          ``(ii) Exception.--Notwithstanding clause (i), 
                      grants described in such clause shall not be 
                      subject to section 12.61 of title 43, Code of 
                      Federal Regulations. The Secretary and the grantee 
                      shall negotiate and determine a schedule of 
                      payments for the work to be performed.
                          ``(iii) Applications.--In considering 
                      applications for a grant described in clause (i), 
                      the Secretary shall consider whether the Indian 
                      tribe or tribal organization involved would be 
                      deficient in ensuring that the construction 
                      projects under the proposed grant conform to 
                      applicable building standards and codes and 
                      Federal, tribal, or State health and safety 
                      standards as required under section 1124 of the 
                      Education Amendments of 1978 (25 U.S.C. 2005(a)) 
                      with respect to organizational and financial 
                      management capabilities.
                          ``(iv) Disputes.--Any disputes between the 
                      Secretary and any grantee concerning a grant 
                      described in clause (i) shall be subject to the 
                      dispute provisions contained in section 5209(e).
                    ``(C) New construction.--Notwithstanding 
                subparagraph (A), a school receiving a grant under this 
                part for facilities improvement and repair may use such 
                grant funds for new construction if the tribal governing 
                body or tribal organization that submits the application 
                for the grant provides funding for the new construction 
                equal to at least 25 percent of the total cost of such 
                new construction.
                    ``(D) Period.--In a case in which the appropriations 
                measure under which the funds described in subparagraph 
                (A) are made available or the application submitted for 
                the funds does not stipulate a period for the work 
                covered by the funds, the Secretary and the grant 
                recipient shall consult and determine such a period 
                prior to the transfer of the funds. A period so 
                determined may be extended upon mutual agreement of the 
                Secretary and the grant recipient.
            ``(5) Enforcement of request to include funds.--
                    ``(A) In general.--If the Secretary fails to carry 
                out a request filed by an Indian tribe or tribal 
                organization to include in such tribe or organization's 
                grant under this part the funds described in subsection 
                (a)(2) within 180 days after the filing of the request, 
                the Secretary shall--
                          ``(i) be deemed to have approved such request; 
                      and
                          ``(ii) immediately upon the expiration of such 
                      180-day period amend the grant accordingly.
                    ``(B) Rights.--A tribe or organization described in 
                subparagraph (A) may enforce its rights under subsection 
                (a)(2) and this paragraph, including rights relating to 
                any denial or failure to act on such tribe's or 
                organization's request, pursuant to the dispute 
                authority described in section 5209(e).

``SEC. 5205. <<NOTE: 25 USC 2504.>>  ELIGIBILITY FOR GRANTS.

    ``(a) Rules.--

[[Page 115 STAT. 2069]]

            ``(1) In general.--A tribally controlled school is eligible 
        for assistance under this part if the school--
                    ``(A) on April 28, 1988, was a contract school under 
                title XI of the Education Amendments of 1978 and the 
                tribe or tribal organization operating the school 
                submits to the Secretary a written notice of election to 
                receive a grant under this part;
                    ``(B) was a Bureau-operated school under title XI of 
                the Education Amendments of 1978 and has met the 
                requirements of subsection (b);
                    ``(C) is a school for which the Bureau has not 
                provided funds, but which has met the requirements of 
                subsection (c); or
                    ``(D) is a school with respect to which an election 
                has been made under paragraph (2) and which has met the 
                requirements of subsection (b).
            ``(2) New schools.--Any application which has been submitted 
        under the Indian Self-Determination and Education Assistance Act 
        by an Indian tribe for a school which is not in operation on the 
        date of enactment of the Native American Education Improvement 
        Act of 2001 shall be reviewed under the guidelines and 
        regulations for applications submitted under the Indian Self-
        Determination and Education Assistance Act that were in effect 
        at the time the application was submitted, unless the Indian 
        tribe or tribal organization elects to have the application 
        reviewed under the provisions of subsection (b).

    ``(b) Additional Requirements for Bureau-Funded Schools and Certain 
Electing Schools.--
            ``(1) Bureau-funded schools.--A school that was a Bureau-
        funded school under title XI of the Education Amendments of 1978 
        on the date of enactment of the Native American Education 
        Improvement Act of 2001 and any school with respect to which an 
        election is made under subsection (a)(2), meets the requirements 
        of this subsection if--
                    ``(A) the Indian tribe or tribal organization that 
                operates, or desires to operate, the school submits to 
                the Secretary an application requesting that the 
                Secretary--
                          ``(i) transfer operation of the school to the 
                      Indian tribe or tribal organization, if the Indian 
                      tribe or tribal organization is not already 
                      operating the school; and
                          ``(ii) make a determination as to whether the 
                      school is eligible for assistance under this part; 
                      and
                    ``(B) the Secretary makes a determination that the 
                school is eligible for assistance under this part.
            ``(2) Certain electing schools.--
                    ``(A) In general.--By not later than the date that 
                is 120 days after the date on which an application is 
                submitted to the Secretary under paragraph (1)(A), the 
                Secretary shall determine--
                          ``(i) in the case of a school which is not 
                      being operated by the Indian tribe or tribal 
                      organization, whether to transfer operation of the 
                      school to the Indian tribe or tribal organization; 
                      and
                          ``(ii) whether the school is eligible for 
                      assistance under this part.

[[Page 115 STAT. 2070]]

                    ``(B) Other determinations.--In considering 
                applications submitted under paragraph (1)(A), the 
                Secretary--
                          ``(i) shall transfer operation of the school 
                      to the Indian tribe or tribal organization, if the 
                      tribe or tribal organization is not already 
                      operating the school; and
                          ``(ii) shall determine that the school is 
                      eligible for assistance under this part, unless 
                      the Secretary finds by clear and convincing 
                      evidence that the services to be provided by the 
                      Indian tribe or tribal organization will be 
                      deleterious to the welfare of the Indians served 
                      by the school.
                    ``(C) Considerations.--In considering applications 
                submitted under paragraph (1)(A), the Secretary shall 
                consider whether the Indian tribe or tribal organization 
                would be deficient in operating the school with respect 
                to--
                          ``(i) equipment;
                          ``(ii) bookkeeping and accounting procedures;
                          ``(iii) ability to adequately manage a school; 
                      or
                          ``(iv) adequately trained personnel.

    ``(c) Additional Requirements for a School Which Is Not a Bureau-
Funded School.--
            ``(1) In general.--A school which is not a Bureau-funded 
        school under title XI of the Education Amendments of 1978 meets 
        the requirements of this subsection if--
                    ``(A) the Indian tribe or tribal organization that 
                operates, or desires to operate, the school submits to 
                the Secretary an application requesting a determination 
                by the Secretary as to whether the school is eligible 
                for assistance under this part; and
                    ``(B) the Secretary makes a determination that a 
                school is eligible for assistance under this part.
            ``(2) Deadline for determination by secretary.--
                    ``(A) In general.--By not later than the date that 
                is 180 days after the date on which an application is 
                submitted to the Secretary under paragraph (1)(A), the 
                Secretary shall determine whether the school is eligible 
                for assistance under this part.
                    ``(B) Considerations.--In making the determination 
                under subparagraph (A), the Secretary shall give equal 
                consideration to each of the following factors:
                          ``(i) With respect to the applicant's 
                      proposal--
                                    ``(I) the adequacy of facilities or 
                                the potential to obtain or provide 
                                adequate facilities;
                                    ``(II) geographic and demographic 
                                factors in the affected areas;
                                    ``(III) adequacy of the applicant's 
                                program plans;
                                    ``(IV) geographic proximity of 
                                comparable public education; and
                                    ``(V) the needs as expressed by all 
                                affected parties, including but not 
                                limited to students, families, tribal 
                                governments at both the central and 
                                local levels, and school organizations.
                          ``(ii) With respect to all education services 
                      already available--
                                    ``(I) geographic and demographic 
                                factors in the affected areas;

[[Page 115 STAT. 2071]]

                                    ``(II) adequacy and comparability of 
                                programs already available;
                                    ``(III) consistency of available 
                                programs with tribal education codes or 
                                tribal legislation on education; and
                                    ``(IV) the history and success of 
                                these services for the proposed 
                                population to be served, as determined 
                                from all factors including, if relevant, 
                                standardized examination performance.
                    ``(C) Geographic proximity.--The Secretary may not 
                make a determination under this paragraph that is 
                primarily based upon the geographic proximity of 
                comparable public education.
                    ``(D) Other information.--Applications submitted 
                under paragraph (1)(A) shall include information on the 
                factors described in subparagraph (B)(i), but the 
                applicant may also provide the Secretary such 
                information relative to the factors described in 
                subparagraph (B)(ii) as the applicant considers 
                appropriate.
                    ``(E) Deadline.--If the Secretary fails to make a 
                determination under subparagraph (A) with respect to an 
                application within 180 days after the date on which the 
                Secretary received the application, the Secretary shall 
                be treated as having made a determination that the 
                tribally controlled school is eligible for assistance 
                under the title and the grant shall become effective 18 
                months after the date on which the Secretary received 
                the application, or on an earlier date, at the 
                Secretary's discretion.

    ``(d) Filing of Applications and Reports.--
            ``(1) In general.--All applications and reports submitted to 
        the Secretary under this part, and any amendments to such 
        applications or reports, shall be filed with the education line 
        officer designated by the Director of the Office of Indian 
        Education Programs of the Bureau of Indian Affairs. The date on 
        which such filing occurs shall, for purposes of this part, be 
        treated as the date on which the application or amendment was 
        submitted to the Secretary.
            ``(2) Supporting documentation.--Any application that is 
        submitted under this chapter shall be accompanied by a document 
        indicating the action taken by the tribal governing body in 
        authorizing such application.

    ``(e) Effective Date for Approved Applications.--Except as provided 
by subsection (c)(2)(E), a grant provided under this part, and any 
transfer of the operation of a Bureau school made under subsection (b), 
shall become effective beginning the academic year succeeding the fiscal 
year in which the application for the grant or transfer is made, or at 
an earlier date determined by the Secretary.
    ``(f) Denial of Applications.--
            ``(1) In general.--Whenever the Secretary refuses to approve 
        a grant under this chapter, to transfer operation of a Bureau 
        school under subsection (b), or determines that a school is not 
        eligible for assistance under this part, the Secretary shall--
                    ``(A) state the objections in writing to the tribe 
                or tribal organization within the allotted time;

[[Page 115 STAT. 2072]]

                    ``(B) provide assistance to the tribe or tribal 
                organization to overcome all stated objections;
                    ``(C) at the request of the tribe or tribal 
                organization, provide the tribe or tribal organization a 
                hearing on the record under the same rules and 
                regulations that apply under the Indian Self-
                Determination and Education Assistance Act; and
                    ``(D) provide an opportunity to appeal the objection 
                raised.
            ``(2) Timeline for reconsideration of amended 
        applications.--The Secretary shall reconsider any amended 
        application submitted under this part within 60 days after the 
        amended application is submitted to the Secretary.

    ``(g) Report.--The Bureau shall submit an annual report to the 
Congress on all applications received, and actions taken (including the 
costs associated with such actions), under this section at the same time 
that the President is required to submit to Congress the budget under 
section 1105 of title 31, United States Code.

``SEC. 5206. <<NOTE: 25 USC 2505.>>  DURATION OF ELIGIBILITY 
            DETERMINATION.

    ``(a) In General.--If the Secretary determines that a tribally 
controlled school is eligible for assistance under this part, the 
eligibility determination shall remain in effect until the determination 
is revoked by the Secretary, and the requirements of subsection (b) or 
(c) of section 5205, if applicable, shall be considered to have been met 
with respect to such school until the eligibility determination is 
revoked by the Secretary.
    ``(b) Annual Reports.--
            ``(1) In general.--Each recipient of a grant provided under 
        this part shall complete an annual report which shall be limited 
        to--
                    ``(A) an annual financial statement reporting 
                revenue and expenditures as defined by the cost 
                accounting established by the grantee;
                    ``(B) an annual financial audit conducted pursuant 
                to the standards of the Single Audit Act of 1984;
                    ``(C) a biennial compliance audit of the procurement 
                of personal property during the period for which the 
                report is being prepared that shall be in compliance 
                with written procurement standards that are developed by 
                the local school board;
                    ``(D) an annual submission to the Secretary of the 
                number of students served and a brief description of 
                programs offered under the grant; and
                    ``(E) a program evaluation conducted by an impartial 
                evaluation review team, to be based on the standards 
                established for purposes of subsection (c)(1)(A)(ii).
            ``(2) Evaluation review teams.--Where appropriate, other 
        tribally controlled schools and representatives of tribally 
        controlled community colleges shall make up members of the 
        evaluation review teams.
            ``(3) Evaluations.--In the case of a school which is 
        accredited, evaluations will be conducted at intervals under the 
        terms of accreditation.
            ``(4) Submission of report.--

[[Page 115 STAT. 2073]]

                    ``(A) To tribal governing body.--Upon completion of 
                the report required under paragraph (1), the recipient 
                of the grant shall send (via first class mail, return 
                receipt requested) a copy of such annual report to the 
                tribal governing body (as defined in section 1132(f) of 
                the Education Amendments of 1978) of the tribally 
                controlled school.
                    ``(B) <<NOTE: Deadline.>>  To secretary.--Not later 
                than 30 days after receiving written confirmation that 
                the tribal governing body has received the report sent 
                pursuant to subparagraph (A), the recipient of the grant 
                shall send a copy of the report to the Secretary.

    ``(c) Revocation of Eligibility.--
            ``(1) Determination of eligibility for assistance.--The 
        Secretary shall not revoke a determination that a school is 
        eligible for assistance under this part if--
                    ``(A) the Indian tribe or tribal organization 
                submits the reports required under subsection (b) with 
                respect to the school; and
                    ``(B) at least one of the following clauses applies 
                with respect to the school:
                          ``(i) The school is certified or accredited by 
                      a State or regional accrediting association or is 
                      a candidate in good standing for such 
                      accreditation under the rules of the State or 
                      regional accrediting association, showing that 
                      credits achieved by the students within the 
                      education programs are, or will be, accepted at 
                      grade level by a State certified or regionally 
                      accredited institution.
                          ``(ii) The Secretary determines that there is 
                      a reasonable expectation that the certification or 
                      accreditation described in clause (i), or 
                      candidacy in good standing for such certification 
                      or accreditation, will be achieved by the school 
                      within 3 years. The school seeking accreditation 
                      shall remain under the standards of the Bureau in 
                      effect on the date of enactment of the Native 
                      American Education Improvement Act of 2001 until 
                      such time as the school is accredited, except that 
                      if the Bureau standards are in conflict with the 
                      standards of the accrediting agency, the standards 
                      of such agency shall apply in such case.
                          ``(iii) The school is accredited by a tribal 
                      department of education if such accreditation is 
                      accepted by a generally recognized regional or 
                      State accreditation agency.
                          ``(iv)(I) With respect to a school that lacks 
                      accreditation, or that is not a candidate for 
                      accreditation, based on circumstances that are not 
                      beyond the control of the school board, every 3 
                      years an impartial evaluator agreed upon by the 
                      Secretary and the grant recipient conducts 
                      evaluations of the school, and the school receives 
                      a positive assessment under such evaluations. The 
                      evaluations are conducted under standards adopted 
                      by a contractor under a contract for the school 
                      entered into under the Indian Self-Determination 
                      and Education Assistance Act (or revisions of such 
                      standards agreed to by the Secretary and the

[[Page 115 STAT. 2074]]

                      grant recipient) prior to the date of enactment of 
                      the Native American Education Improvement Act of 
                      2001.
                          ``(II) If the Secretary and a grant recipient 
                      other than a tribal governing body fail to agree 
                      on such an evaluator, the tribal governing body 
                      shall choose the evaluator or perform the 
                      evaluation. If the Secretary and a grant recipient 
                      that is a tribal governing body fail to agree on 
                      such an evaluator, subclause (I) shall not apply.
                          ``(III) A positive assessment by an impartial 
                      evaluator under this clause shall not affect the 
                      revocation of a determination of eligibility by 
                      the Secretary where such revocation is based on 
                      circumstances that were within the control of the 
                      school board.
            ``(2) Notice requirements for revocation.--The Secretary 
        shall not revoke a determination that a school is eligible for 
        assistance under this part, or reassume control of a school that 
        was a Bureau school prior to approval of an application 
        submitted under section 5206(b)(1)(A) until the Secretary--
                    ``(A) provides notice to the tribally controlled 
                school and the tribal governing body (within the meaning 
                of section 1141 of the Education Amendments of 1978) of 
                the tribally controlled school which states--
                          ``(i) the specific deficiencies that led to 
                      the revocation or resumption determination; and
                          ``(ii) the actions that are needed to remedy 
                      such deficiencies; and
                    ``(B) affords such authority an opportunity to 
                effect the remedial actions.
            ``(3) Technical assistance.--The Secretary shall provide 
        such technical assistance to enable the school and governing 
        body to carry out such remedial actions.
            ``(4) Hearing and appeal.--In addition to notice and 
        technical assistance under this subsection, the Secretary shall 
        provide to the school and governing body--
                    ``(A) at the request of the school or governing 
                body, a hearing on the record regarding the revocation 
                or reassumption determination, to be conducted under the 
                rules and regulations described in section 
                5206(f)(1)(C); and
                    ``(B) an opportunity to appeal the decision 
                resulting from the hearing.

    ``(d) Applicability of Section Pursuant to Election Under Section 
5208(b).--With respect to a tribally controlled school that receives 
assistance under this part pursuant to an election made under section 
5208(b)--
            ``(1) subsection (b) of this section shall apply; and
            ``(2) the Secretary may not revoke eligibility for 
        assistance under this part except in conformance with subsection 
        (c) of this section.

``SEC. 5207. <<NOTE: 25 USC 2506.>>  PAYMENT OF GRANTS; INVESTMENT OF 
            FUNDS.

    ``(a) Payments.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the Secretary shall make payments to grantees under 
        this part in two payments, of which--
                    ``(A) the first payment shall be made not later than 
                July 1 of each year in an amount equal to 80 percent

[[Page 115 STAT. 2075]]

                of the amount which the grantee was entitled to receive 
                during the preceding academic year; and
                    ``(B) the second payment, consisting of the 
                remainder to which the grantee is entitled for the 
                academic year, shall be made not later than December 1 
                of each year.
            ``(2) <<NOTE: Deadline.>>  Excess funding.--In a case in 
        which the amount provided to a grant recipient under paragraph 
        (1)(A) is in excess of the amount that the recipient is entitled 
        to receive for the academic year involved, the recipient shall 
        return to the Secretary such excess amount not later than 30 
        days after the final determination that the school was overpaid 
        pursuant to this section. The amount returned to the Secretary 
        under this paragraph shall be distributed equally to all schools 
        in the system.
            ``(3) Newly funded schools.--For any school for which no 
        payment under this part was made from Bureau funds in the 
        preceding academic year, full payment of the amount computed for 
        the first academic year of eligibility under this part shall be 
        made not later than December 1 of the academic year.
            ``(4) Late funding.--With regard to funds for grantees that 
        become available for obligation on October 1 of the fiscal year 
        for which such funds are appropriated, the Secretary shall make 
        payments to grantees not later than December 1 of the fiscal 
        year.
            ``(5) Applicability of certain title 31 provisions.--The 
        provisions of chapter 39 of title 31, United States Code, shall 
        apply to the payments required to be made by paragraphs (1), 
        (3), and (4).
            ``(6) Restrictions.--Paragraphs (1), (3), and (4) shall be 
        subject to any restriction on amounts of payments under this 
        part that are imposed by a continuing resolution or other Act 
        appropriating the funds involved.

    ``(b) Investment of Funds.--
            ``(1) Treatment of interest and investment income.--
        Notwithstanding any other provision of law, any interest or 
        investment income that accrues to any funds provided under this 
        part after such funds are paid to the Indian tribe or tribal 
        organization and before such funds are expended for the purpose 
        for which such funds were provided under this part shall be the 
        property of the Indian tribe or tribal organization and shall 
        not be taken into account by any officer or employee of the 
        Federal Government in determining whether to provide assistance, 
        or the amount of assistance, under any provision of Federal law. 
        Such interest income shall be spent on behalf of the school.
            ``(2) Permissible investments.--Funds provided under this 
        part may be invested by the Indian tribe or tribal organization 
        before such funds are expended for the purposes of this part so 
        long as such funds are--
                    ``(A) invested by the Indian tribe or tribal 
                organization only in obligations of the United States, 
                or in obligations or securities that are guaranteed or 
                insured by the United States, or mutual (or other) funds 
                registered with the Securities and Exchange Commission 
                and which only invest in obligations of the United 
                States, or securities that are guaranteed or insured by 
                the United States; or

[[Page 115 STAT. 2076]]

                    ``(B) deposited only into accounts that are insure 
                by and agency or instrumentality of the United States, 
                or are fully collateralized to ensure protection of the 
                funds, even in the event of a bank failure.

    ``(c) Recoveries.--For the purposes of underrecovery and 
overrecovery determinations by any Federal agency for any other funds, 
from whatever source derived, funds received under this part shall not 
be taken into consideration.

``SEC. 5208. <<NOTE: 25 USC 2507.>>  APPLICATION WITH RESPECT TO INDIAN 
            SELF-DETERMINATION AND EDUCATION ASSISTANCE ACT.

    ``(a) Certain Provisions To Apply to Grants.--The following 
provisions of the Indian Self-Determination and Education Assistance Act 
(and any subsequent revisions thereto or renumbering thereof), shall 
apply to grants provided under this part:
            ``(1) Section 5(f) (relating to single agency audit).
            ``(2) Section 6 (relating to criminal activities; 
        penalties).
            ``(3) Section 7 (relating to wage and labor standards).
            ``(4) Section 104 (relating to retention of Federal employee 
        coverage).
            ``(5) Section 105(f) (relating to Federal property).
            ``(6) Section 105(k) (relating to access to Federal sources 
        of supply).
            ``(7) Section 105(l) (relating to lease of facility used for 
        administration and delivery of services).
            ``(8) Section 106(f) (relating to limitation on remedies 
        relating to cost allowances).
            ``(9) Section 106(j) (relating to use of funds for matching 
        or cost participation requirements).
            ``(10) Section 106(k) (relating to allowable uses of funds).
            ``(11) Section 108(c) (Model Agreements provisions (1)(a)(5) 
        (relating to limitations of costs), (1)(a)(7) (relating to 
        records and monitoring), (1)(a)(8) (relating to property), and 
        (a)(1)(9) (relating to availability of funds).
            ``(12) Section 109 (relating to reassumption).
            ``(13) Section 111 (relating to sovereign immunity and 
        trusteeship rights unaffected).

    ``(b) Election for Grant in Lieu of Contract.--
            ``(1) In general.--Contractors for activities to which this 
        part applies who have entered into a contract under the Indian 
        Self-Determination and Education Assistance Act that is in 
        effect on the date of enactment of the Native American Education 
        Improvement Act of 2001 may, by giving notice to the Secretary, 
        elect to have the provisions of this part apply to such activity 
        in lieu of such contract.
            ``(2) Effective date of election.--Any election made under 
        paragraph (1) shall take effect on the first day of July 
        immediately following the date of such election.
            ``(3) Exception.--In any case in which the first day of July 
        immediately following the date of an election under paragraph 
        (1) is less than 60 days after such election, such election 
        shall not take effect until the first day of July of year 
        following the year in which the election is made.

    ``(c) No Duplication.--No funds may be provided under any contract 
entered into under the Indian Self-Determination and Education 
Assistance Act to pay any expenses incurred in providing

[[Page 115 STAT. 2077]]

any program or services if a grant has been made under this part to pay 
such expenses.
    ``(d) Transfers and Carryovers.--
            ``(1) Buildings, equipment, supplies, materials.--A tribe or 
        tribal organization assuming the operation of--
                    ``(A) a Bureau school with assistance under this 
                part shall be entitled to the transfer or use of 
                buildings, equipment, supplies, and materials to the 
                same extent as if it were contracting under the Indian 
                Self-Determination and Education Assistance Act; or
                    ``(B) a contract school with assistance under this 
                part shall be entitled to the transfer or use of 
                buildings, equipment, supplies, and materials that were 
                used in the operation of the contract school to the same 
                extent as if it were contracting under the Indian Self-
                Determination and Education Assistance Act.
            ``(2) Funds.--Any tribe or tribal organization which assumes 
        operation of a Bureau school with assistance under this part and 
        any tribe or tribal organization which elects to operate a 
        school with assistance under this part rather that to continue 
        as a contract school shall be entitled to any funds which would 
        carryover from the previous fiscal year as if such school were 
        operated as a contract school.
            ``(3) Funding for school improvement.--Any tribe or tribal 
        organization that assumes operation of a Bureau school or a 
        contract school with assistance under this part shall be 
        eligible for funding for the improvement, alteration, 
        replacement, and repair of facilities to the same extent as a 
        Bureau school.

    ``(e) Exceptions, Problems, and Disputes.--Any exception or problem 
cited in an audit conducted pursuant to section 5206(b)(1), any dispute 
regarding a grant authorized to be made pursuant to this part or any 
amendment to such grant, and any dispute involving an administrative 
cost grant under section 1128 of the Education Amendments of 1978 shall 
be administered under the provisions governing such exceptions, 
problems, or disputes in the case of contracts under the Indian Self-
Determination and Education Assistance Act. The Equal Access to Justice 
Act shall apply to administrative appeals filed after September 8, 1988, 
by grantees regarding a grant under this part, including an 
administrative cost grant.

``SEC. 5209. <<NOTE: 25 USC 2508.>>  ROLE OF THE DIRECTOR.

    ``Applications for grants under this part, and all application 
modifications, shall be reviewed and approved by personnel under the 
direction and control of the Director of the Office of Indian Education 
Programs. Required reports shall be submitted to education personnel 
under the direction and control of the Director of such Office.

``SEC. 5210. <<NOTE: 25 USC 2509.>>  REGULATIONS.

    ``The Secretary is authorized to issue regulations relating to the 
discharge of duties specifically assigned to the Secretary in this part. 
For all other matters relating to the details of planning, developing, 
implementing, and evaluating grants under this part, the Secretary shall 
not issue regulations.

[[Page 115 STAT. 2078]]

``SEC. 5211. <<NOTE: 25 USC 2510.>>  THE TRIBALLY CONTROLLED GRANT 
            SCHOOL ENDOWMENT PROGRAM.

    ``(a) In General.--
            ``(1) Establishment.--Each school receiving a grant under 
        this part may establish, at a federally insured financial 
        institution, a trust fund for the purposes of this section.
            ``(2) Deposits and use.--The school may provide--
                    ``(A) for deposit into the trust fund, only funds 
                from non-Federal sources, except that the interest on 
                funds received from grants provided under this part may 
                be used for that purpose;
                    ``(B) for deposit into the trust fund, any earnings 
                on funds deposited in the fund; and
                    ``(C) for the sole use of the school any noncash, 
                in-kind contributions of real or personal property, 
                which may at any time be used, sold, or otherwise 
                disposed of.

    ``(b) Interest.--Interest from the fund established under subsection 
(a) may periodically be withdrawn and used, at the discretion of the 
school, to defray any expenses associated with the operation of the 
school consistent with the purposes of this Act.

``SEC. 5212. <<NOTE: 25 USC 2511.>>  DEFINITIONS.

    ``In this part:
            ``(1) Bureau.--The term `Bureau' means the Bureau of Indian 
        Affairs of the Department of the Interior.
            ``(2) Eligible indian student.--The term `eligible Indian 
        student' has the meaning given such term in section 1127(f) of 
        the Education Amendments of 1978.
            ``(3) Indian.--The term `Indian' means a member of an Indian 
        tribe, and includes individuals who are eligible for membership 
        in a tribe, and the child or grandchild of such an individual.
            ``(4) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including an Alaska Native Village Corporation or 
        Regional Corporation (as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act), which is recognized as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians.
            ``(5) Local educational agency.--The term `local educational 
        agency' means a public board of education or other public 
        authority legally constituted within a State for either 
        administrative control or direction of, or to perform a service 
        function for, public elementary schools or secondary schools in 
        a city, county, township, school district, or other political 
        subdivision of a State or such combination of school districts 
        or counties as are recognized in a State as an administrative 
        agency for the State's public elementary schools or secondary 
        schools. Such term includes any other public institution or 
        agency having administrative control and direction of a public 
        elementary school or secondary school.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(7) Tribal governing body.--The term `tribal governing 
        body' means, with respect to any school that receives assistance

[[Page 115 STAT. 2079]]

        under this Act, the recognized governing body of the Indian 
        tribe involved.
            ``(8) Tribal organization.--
                    ``(A) In general.--The term `tribal organization' 
                means--
                          ``(i) the recognized governing body of any 
                      Indian tribe; or
                          ``(ii) any legally established organization of 
                      Indians that--
                                    ``(I) is controlled, sanctioned, or 
                                chartered by such governing body or is 
                                democratically elected by the adult 
                                members of the Indian community to be 
                                served by such organization; and
                                    ``(II) includes the maximum 
                                participation of Indians in all phases 
                                of the organization's activities.
                    ``(B) Authorization.--In any case in which a grant 
                is provided under this part to an organization to 
                provide services through a tribally controlled school 
                benefiting more than one Indian tribe, the approval of 
                the governing bodies of Indian tribes representing 80 
                percent of the students attending the tribally 
                controlled school shall be considered a sufficient 
                tribal authorization for such grant.
            ``(9) Tribally controlled school.--The term `tribally 
        controlled school' means a school that--
                    ``(A) is operated by an Indian tribe or a tribal 
                organization, enrolling students in kindergarten through 
                grade 12, including a preschool;
                    ``(B) is not a local educational agency; and
                    ``(C) is not directly administered by the Bureau of 
                Indian Affairs.''.

SEC. 1044. LEASE PAYMENTS BY THE OJIBWA INDIAN SCHOOL.

    (a) In General.--Notwithstanding the Tribally Controlled Schools Act 
of 1988 (25 U.S.C. 2501 et seq.), or the regulations promulgated under 
such Act, the Ojibwa Indian School located in Belcourt, North Dakota, 
may use amounts received under such Act to enter into, and make payments 
under, a lease described in subsection (b).
    (b) Lease.--A lease described in this subsection is a lease that--
            (1) is entered into by the Ojibwa Indian School for the use 
        of facilities owned by St. Ann's Catholic Church located in 
        Belcourt, North Dakota;
            (2) is entered into in the 2001-2002 school year, or any 
        other school year in which the Ojibwa Indian School will use 
        such facilities for school purposes;
            (3) requires lease payments in an amount determined 
        appropriate by an independent lease appraiser that is selected 
        by the parties to the lease, except that such amount may not 
        exceed the maximum amount per square foot that is being paid by 
        the Bureau of Indian Affairs for other similarly situated Indian 
        schools under the Indian Self-Determination and Education 
        Assistance Act (Public Law 93-638); and
            (4) contains a waiver of the right of St. Ann's Catholic 
        Church to bring an action against the Ojibwa Indian School,

[[Page 115 STAT. 2080]]

        the Turtle Mountain Band of Chippewa, or the Federal Government 
        for the recovery of any amounts remaining unpaid under leases 
        entered into prior to the date of enactment of this Act.

    (c) Method of Funding.--Amounts shall be made available by the 
Bureau of Indian Affairs to make lease payments under this section in 
the same manner as amounts are made available to make payments under 
leases entered into by Indian schools under the Indian Self-
Determination and Education Assistance Act (Public Law 93-638).
    (d) Operation and Maintenance Funding.--The Bureau of Indian Affairs 
shall provide funding for the operation and maintenance of the 
facilities and property used by the Ojibwa Indian School under the lease 
entered into under subsection (a) so long as such facilities and 
property are being used by the School for educational purposes.

SEC. 1045. ENROLLMENT AND GENERAL ASSISTANCE PAYMENTS.

    Section 5404(a) of the Augustus F. Hawkins-Robert T. Stafford 
Elementary and Secondary School Improvement Amendments of 1988 (25 
U.S.C. 13d-2(a)) is amended--
            (1) by striking the matter preceding paragraph (1) and 
        inserting the following:

    ``(a) In General.--The Secretary of the Interior shall not 
disqualify from continued receipt of general assistance payments from 
the Bureau of Indian Affairs an otherwise eligible Indian for whom the 
Bureau is making or may make general assistance payments (or exclude 
such an individual from continued consideration in determining the 
amount of general assistance payments for a household) because the 
individual is enrolled (and is making satisfactory progress toward 
completion of a program or training that can reasonably be expected to 
lead to gainful employment) for at least half-time study or training 
in--''; and
            (2) by striking paragraph (4), and inserting the following:
            ``(4) other programs or training approved by the Secretary 
        or by tribal education, employment or training programs.''.

                  PART E--HIGHER EDUCATION ACT OF 1965

SEC. 1051. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.

    Title II of the Higher Education Act of 1965 (20 U.S.C. 1021 et 
seq.) is amended--
            (1) by striking the title heading and inserting the 
        following:

                 ``TITLE II--TEACHER QUALITY ENHANCEMENT

      ``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
                             PARTNERSHIPS'';

            (2) <<NOTE: 20 USC 1021-1030.>>  by striking ``this title'' 
        each place it appears and inserting ``this part''; and
            (3) by adding at the end the following:

[[Page 115 STAT. 2081]]

        ``PART B--PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY

``SEC. 221. <<NOTE: 20 USC 1041.>>  PURPOSE AND PROGRAM AUTHORITY.

    ``(a) Purpose.--It is the purpose of this part to assist consortia 
of public and private entities--
            ``(1) to carry out programs that prepare prospective 
        teachers to use advanced technology to prepare all students to 
        meet challenging State and local academic content and student 
        academic achievement standards; and
            ``(2) to improve the ability of institutions of higher 
        education to carry out such programs.

    ``(b) Program Authority.--
            ``(1) In <<NOTE: Grants. Contracts.>>  general.--The 
        Secretary is authorized to award grants to eligible applicants, 
        or enter into contracts or cooperative agreements with eligible 
        applicants, on a competitive basis in order to pay for the 
        Federal share of the cost of projects to develop or redesign 
        teacher preparation programs to enable prospective teachers to 
        use advanced technology effectively in their classrooms.
            ``(2) Period of awards.--The Secretary may award grants, or 
        enter into contracts or cooperative agreements, under this part 
        for periods that are not more than 5 years in duration.

``SEC. 222. <<NOTE: 20 USC 1042.>>  ELIGIBILITY.

    ``(a) Eligible Applicants.--In order to receive a grant or enter 
into a contract or cooperative agreement under this part, an applicant 
shall be a consortium that includes the following:
            ``(1) At least one institution of higher education that 
        awards baccalaureate degrees and prepares teachers for their 
        initial entry into teaching.
            ``(2) At least one State educational agency or local 
        educational agency.
            ``(3) One or more of the following entities:
                    ``(A) An institution of higher education (other than 
                the institution described in paragraph (1)).
                    ``(B) A school or department of education at an 
                institution of higher education.
                    ``(C) A school or college of arts and sciences (as 
                defined in section 201(b)) at an institution of higher 
                education.
                    ``(D) A professional association, foundation, 
                museum, library, for-profit business, public or private 
                nonprofit organization, community-based organization, or 
                other entity, with the capacity to contribute to the 
                technology-related reform of teacher preparation 
                programs.

    ``(b) Application Requirements.--In order to receive a grant or 
enter into a contract or cooperative agreement under this part, an 
eligible applicant shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may require. Such application shall include the following:
            ``(1) A description of the proposed project, including how 
        the project would--
                    ``(A) ensure that individuals participating in the 
                project would be prepared to use advanced technology to 
                prepare

[[Page 115 STAT. 2082]]

                all students, including groups of students who are 
                underrepresented in technology-related fields and groups 
                of students who are economically disadvantaged, to meet 
                challenging State and local academic content and student 
                academic achievement standards; and
                    ``(B) improve the ability of at least one 
                participating institution of higher education described 
                in section 222(a)(1) to ensure such preparation.
            ``(2) A demonstration of--
                    ``(A) the commitment, including the financial 
                commitment, of each of the members of the consortium for 
                the proposed project; and
                    ``(B) the active support of the leadership of each 
                organization that is a member of the consortium for the 
                proposed project.
            ``(3) A description of how each member of the consortium 
        will participate in project activities.
            ``(4) A description of how the proposed project will be 
        continued after Federal funds are no longer awarded under this 
        part for the project.
            ``(5) A plan for the evaluation of the project, which shall 
        include benchmarks to monitor progress toward specific project 
        objectives.

    ``(c) Matching Requirements.--
            ``(1) In general.--The Federal share of the cost of any 
        project funded under this part shall not exceed 50 percent. 
        Except as provided in paragraph (2), the non-Federal share of 
        the cost of such project may be provided in cash or in kind, 
        fairly evaluated, including services.
            ``(2) Acquisition of equipment.--Not more than 10 percent of 
        the funds awarded for a project under this part may be used to 
        acquire equipment, networking capabilities, or infrastructure, 
        and the non-Federal share of the cost of any such acquisition 
        shall be provided in cash.

``SEC. 223. <<NOTE: 20 USC 1043.>>  USE OF FUNDS.

    ``(a) Required Uses.--A consortium that receives a grant or enters 
into a contract or cooperative agreement under this part shall use funds 
made available under this part for--
            ``(1) a project creating one or more programs that prepare 
        prospective teachers to use advanced technology to prepare all 
        students, including groups of students who are underrepresented 
        in technology-related fields and groups of students who are 
        economically disadvantaged, to meet challenging State and local 
        academic content and student academic achievement standards; and
            ``(2) evaluating the effectiveness of the project.

    ``(b) Permissible Uses.--The consortium may use funds made available 
under this part for a project, described in the application submitted by 
the consortium under this part, that carries out the purpose of this 
part, such as the following:
            ``(1) Developing and implementing high-quality teacher 
        preparation programs that enable educators--
                    ``(A) to learn the full range of resources that can 
                be accessed through the use of technology;
                    ``(B) to integrate a variety of technologies into 
                curricula and instruction in order to expand students' 
                knowledge;

[[Page 115 STAT. 2083]]

                    ``(C) to evaluate educational technologies and their 
                potential for use in instruction;
                    ``(D) to help students develop their technical 
                skills; and
                    ``(E) to use technology to collect, manage, and 
                analyze data to improve teaching and decisionmaking.
            ``(2) Developing alternative teacher development paths that 
        provide elementary schools and secondary schools with well-
        prepared, technology-proficient educators.
            ``(3) Developing achievement-based standards and assessments 
        aligned with the standards to measure the capacity of 
        prospective teachers to use technology effectively in their 
        classrooms.
            ``(4) Providing technical assistance to entities carrying 
        out other teacher preparation programs.
            ``(5) Developing and disseminating resources and information 
        in order to assist institutions of higher education to prepare 
        teachers to use technology effectively in their classrooms.
            ``(6) Subject to section 222(c)(2), acquiring technology 
        equipment, networking capabilities, infrastructure, software, 
        and digital curricula to carry out the project.

``SEC. 224. <<NOTE: 20 USC 1044.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of fiscal years 2002 and 2003.''.

SEC. 1052. <<NOTE: 20 USC 6301 note.>>  CONTINUATION OF AWARDS.

    Notwithstanding any other provision of this Act or the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), in the 
case of a person or entity that was awarded a grant, relating to 
preparing tomorrow's teachers to use technology, that was made pursuant 
to section 3122 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6832) prior to the date of enactment of this Act, the 
Secretary of Education shall continue to provide funds in accordance 
with the terms of such award until the date on which the award period 
terminates.

                PART F--GENERAL EDUCATION PROVISIONS ACT

SEC. 1061. STUDENT PRIVACY, PARENTAL ACCESS TO INFORMATION, AND 
            ADMINISTRATION OF CERTAIN PHYSICAL EXAMINATIONS TO MINORS.

    Section 445(b) of the General Education Provisions Act (20 U.S.C. 
1232h(b)) is amended--
            (1) by striking paragraphs (1) through (7) and inserting the 
        following new paragraphs:
            ``(1) political affiliations or beliefs of the student or 
        the student's parent;
            ``(2) mental or psychological problems of the student or the 
        student's family;
            ``(3) sex behavior or attitudes;
            ``(4) illegal, anti-social, self-incriminating, or demeaning 
        behavior;
            ``(5) critical appraisals of other individuals with whom 
        respondents have close family relationships;

[[Page 115 STAT. 2084]]

            ``(6) legally recognized privileged or analogous 
        relationships, such as those of lawyers, physicians, and 
        ministers;
            ``(7) religious practices, affiliations, or beliefs of the 
        student or student's parent; or
            ``(8) income (other than that required by law to determine 
        eligibility for participation in a program or for receiving 
        financial assistance under such program),'';
            (2) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively; and
            (3) by inserting after subsection (b) the following new 
        subsection:

    ``(c) Development of Local Policies Concerning Student Privacy, 
Parental Access to Information, and Administration of Certain Physical 
Examinations to Minors.--
            ``(1) Development and Adoption of Local Policies.--Except as 
        provided in subsections (a) and (b), a local educational agency 
        that receives funds under any applicable program shall develop 
        and adopt policies, in consultation with parents, regarding the 
        following:
                    ``(A)(i) The right of a parent of a student to 
                inspect, upon the request of the parent, a survey 
                created by a third party before the survey is 
                administered or distributed by a school to a student; 
                and
                    ``(ii) any applicable procedures for granting a 
                request by a parent for reasonable access to such survey 
                within a reasonable period of time after the request is 
                received.
                    ``(B) Arrangements to protect student privacy that 
                are provided by the agency in the event of the 
                administration or distribution of a survey to a student 
                containing one or more of the following items (including 
                the right of a parent of a student to inspect, upon the 
                request of the parent, any survey containing one or more 
                of such items):
                          ``(i) Political affiliations or beliefs of the 
                      student or the student's parent.
                          ``(ii) Mental or psychological problems of the 
                      student or the student's family.
                          ``(iii) Sex behavior or attitudes.
                          ``(iv) Illegal, anti-social, self-
                      incriminating, or demeaning behavior.
                          ``(v) Critical appraisals of other individuals 
                      with whom respondents have close family 
                      relationships.
                          ``(vi) Legally recognized privileged or 
                      analogous relationships, such as those of lawyers, 
                      physicians, and ministers.
                          ``(vii) Religious practices, affiliations, or 
                      beliefs of the student or the student's parent.
                          ``(viii) Income (other than that required by 
                      law to determine eligibility for participation in 
                      a program or for receiving financial assistance 
                      under such program).
                    ``(C)(i) The right of a parent of a student to 
                inspect, upon the request of the parent, any 
                instructional material used as part of the educational 
                curriculum for the student; and
                    ``(ii) any applicable procedures for granting a 
                request by a parent for reasonable access to 
                instructional material

[[Page 115 STAT. 2085]]

                within a reasonable period of time after the request is 
                received.
                    ``(D) The administration of physical examinations or 
                screenings that the school or agency may administer to a 
                student.
                    ``(E) The collection, disclosure, or use of personal 
                information collected from students for the purpose of 
                marketing or for selling that information (or otherwise 
                providing that information to others for that purpose), 
                including arrangements to protect student privacy that 
                are provided by the agency in the event of such 
                collection, disclosure, or use.
                    ``(F)(i) The right of a parent of a student to 
                inspect, upon the request of the parent, any instrument 
                used in the collection of personal information under 
                subparagraph (E) before the instrument is administered 
                or distributed to a student; and
                    ``(ii) any applicable procedures for granting a 
                request by a parent for reasonable access to such 
                instrument within a reasonable period of time after the 
                request is received.
            ``(2) Parental notification.--
                    ``(A) Notification of policies.--The policies 
                developed by a local educational agency under paragraph 
                (1) shall provide for reasonable notice of the adoption 
                or continued use of such policies directly to the 
                parents of students enrolled in schools served by that 
                agency. At a minimum, the agency shall--
                          ``(i) provide such notice at least annually, 
                      at the beginning of the school year, and within a 
                      reasonable period of time after any substantive 
                      change in such policies; and
                          ``(ii) offer an opportunity for the parent 
                      (and for purposes of an activity described in 
                      subparagraph (C)(i), in the case of a student of 
                      an appropriate age, the student) to opt the 
                      student out of participation in an activity 
                      described in subparagraph (C).
                    ``(B) Notification of specific events.--The local 
                educational agency shall directly notify the parent of a 
                student, at least annually at the beginning of the 
                school year, of the specific or approximate dates during 
                the school year when activities described in 
                subparagraph (C) are scheduled, or expected to be 
                scheduled.
                    ``(C) Activities requiring notification.--The 
                following activities require notification under this 
                paragraph:
                          ``(i) Activities involving the collection, 
                      disclosure, or use of personal information 
                      collected from students for the purpose of 
                      marketing or for selling that information (or 
                      otherwise providing that information to others for 
                      that purpose).
                          ``(ii) The administration of any survey 
                      containing one or more items described in clauses 
                      (i) through (viii) of paragraph (1)(B).
                          ``(iii) Any nonemergency, invasive physical 
                      examination or screening that is--
                                    ``(I) required as a condition of 
                                attendance;
                                    ``(II) administered by the school 
                                and scheduled by the school in advance; 
                                and

[[Page 115 STAT. 2086]]

                                    ``(III) not necessary to protect the 
                                immediate health and safety of the 
                                student, or of other students.
            ``(3) Existing policies.--A local educational agency need 
        not develop and adopt new policies if the State educational 
        agency or local educational agency has in place, on the date of 
        enactment of the No Child Left Behind Act of 2001, policies 
        covering the requirements of paragraph (1). The agency shall 
        provide reasonable notice of such existing policies to parents 
        and guardians of students, in accordance with paragraph (2).
            ``(4) Exceptions.--
                    ``(A) Educational products or services.--Paragraph 
                (1)(E) does not apply to the collection, disclosure, or 
                use of personal information collected from students for 
                the exclusive purpose of developing, evaluating, or 
                providing educational products or services for, or to, 
                students or educational institutions, such as the 
                following:
                          ``(i) College or other postsecondary education 
                      recruitment, or military recruitment.
                          ``(ii) Book clubs, magazines, and programs 
                      providing access to low-cost literary products.
                          ``(iii) Curriculum and instructional materials 
                      used by elementary schools and secondary schools.
                          ``(iv) Tests and assessments used by 
                      elementary schools and secondary schools to 
                      provide cognitive, evaluative, diagnostic, 
                      clinical, aptitude, or achievement information 
                      about students (or to generate other statistically 
                      useful data for the purpose of securing such tests 
                      and assessments) and the subsequent analysis and 
                      public release of the aggregate data from such 
                      tests and assessments.
                          ``(v) The sale by students of products or 
                      services to raise funds for school-related or 
                      education-related activities.
                          ``(vi) Student recognition programs.
                    ``(B) State law exception.--The provisions of this 
                subsection--
                          ``(i) shall not be construed to preempt 
                      applicable provisions of State law that require 
                      parental notification; and
                          ``(ii) do not apply to any physical 
                      examination or screening that is permitted or 
                      required by an applicable State law, including 
                      physical examinations or screenings that are 
                      permitted without parental notification.
            ``(5) General provisions.--
                    ``(A) Rules of construction.--
                          ``(i) This section does not supersede section 
                      444.
                          ``(ii) Paragraph (1)(D) does not apply to a 
                      survey administered to a student in accordance 
                      with the Individuals with Disabilities Education 
                      Act (20 U.S.C. 1400 et seq.).
                    ``(B) Student rights.--The rights provided to 
                parents under this section transfer to the student when 
                the student turns 18 years old, or is an emancipated 
                minor (under an applicable State law) at any age.

[[Page 115 STAT. 2087]]

                    ``(C) Information activities.--The Secretary shall 
                annually inform each State educational agency and each 
                local educational agency of the educational agency's 
                obligations under this section and section 444.
                    ``(D) Funding.--A State educational agency or local 
                educational agency may use funds provided under part A 
                of title V of the Elementary and Secondary Education Act 
                of 1965 to enhance parental involvement in areas 
                affecting the in-school privacy of students.
            ``(6) Definitions.--As used in this subsection:
                    ``(A) Instructional material.--The term 
                `instructional material' means instructional content 
                that is provided to a student, regardless of its format, 
                including printed or representational materials, audio-
                visual materials, and materials in electronic or digital 
                formats (such as materials accessible through the 
                Internet). The term does not include academic tests or 
                academic assessments.
                    ``(B) Invasive physical examination.--The term 
                `invasive physical examination' means any medical 
                examination that involves the exposure of private body 
                parts, or any act during such examination that includes 
                incision, insertion, or injection into the body, but 
                does not include a hearing, vision, or scoliosis 
                screening.
                    ``(C) Local educational agency.--The term `local 
                educational agency' means an elementary school, 
                secondary school, school district, or local board of 
                education that is the recipient of funds under an 
                applicable program, but does not include a postsecondary 
                institution.
                    ``(D) Parent.--The term `parent' includes a legal 
                guardian or other person standing in loco parentis (such 
                as a grandparent or stepparent with whom the child 
                lives, or a person who is legally responsible for the 
                welfare of the child).
                    ``(E) Personal information.--The term `personal 
                information' means individually identifiable information 
                including--
                          ``(i) a student or parent's first and last 
                      name;
                          ``(ii) a home or other physical address 
                      (including street name and the name of the city or 
                      town);
                          ``(iii) a telephone number; or
                          ``(iv) a Social Security identification 
                      number.
                    ``(F) Student.--The term `student' means any 
                elementary school or secondary school student.
                    ``(G) Survey.--The term `survey' includes an 
                evaluation.''.

SEC. 1062. TECHNICAL CORRECTIONS.

    The General Education Provisions Act (20 U.S.C. 1221 et seq.) is 
amended as follows:
            (1) Section 431.--Section 422 (the second place it appears) 
        (20 U.S.C. 1231a), relating to collection and dissemination of 
        information, is redesignated as section 431.
            (2) Section <<NOTE: 20 USC 1232d.>>  441.--Section 3501(c) 
        of the Augustus F. Hawkins-Robert T. Stafford Elementary and 
        Secondary School Improvement Amendments of 1988 (102 Stat. 357) 
        is amended by striking ``through `such Act)' '' and inserting 
        ``through `Act of 1965' '', effective as of the date of 
        enactment of that law.

[[Page 115 STAT. 2088]]

            (3) Section 444.--Section 444 (20 U.S.C. 1232g) is amended--
                    (A) in subsection (a)(1), by moving subparagraph (B) 
                four ems to the left;
                    (B) in subsection (b)(1)(J), by moving subparagraph 
                (J)(i) and clause (ii) of subparagraph (J) each two ems 
                to the left;
                    (C) in the undesignated text following subsection 
                (b)(1)(J)(ii), by striking ``clause (E)'' and inserting 
                ``subparagraph (E)''; and
                    (D) in subsection (b), by moving paragraph (7)(A) 
                and subparagraph (B) of paragraph (7) each two ems to 
                the left.
            (4) Section 447.--Section 447(b) (20 U.S.C. 1232j(b)) is 
        amended by striking ``et seq.''.
            (5) Section 475.--Section 475(b)(2) (20 U.S.C. 1235d) is 
        amended by striking ``section 4703(3)'' and inserting ``section 
        473(3)''.
            (6) Section 477.--Section 477 (20 U.S.C. 1235f) is amended 
        by striking ``section 4702'' and inserting ``472''.

                  PART G--MISCELLANEOUS OTHER STATUTES

SEC. 1071. TITLE 5 OF THE UNITED STATES CODE.

    (a) Compensation.--Section 5314 of title 5, United States Code, is 
amended by adding at the end the following:
            ``Under Secretary of Education''.

    (b) Effective <<NOTE: 5 USC 5314 note.>>  Date.--This section shall 
take effect on the first day of the first pay period on or after the 
date of enactment of this Act.

SEC. 1072. DEPARTMENT OF EDUCATION ORGANIZATION ACT.

    (a) Coordinator for the Outlying Areas.--Title II of the Department 
of Education Organization Act (20 U.S.C. 3411 et seq.) is amended by 
adding at the end the following new section:

                  ``coordinator for the outlying areas

    ``Sec. 220. <<NOTE: 20 USC 3427.>>  (a) Establishment.--The 
Secretary shall designate an office of the Department to coordinate the 
activities of the Department as they relate to the outlying areas.

    ``(b) Appointment.--Not later than 90 days after the date of 
enactment of the No Child Left Behind Act of 2001, the head of the 
office designated under subsection (a) shall appoint a coordinator for 
the outlying areas, who shall be a person with substantial experience in 
the operation of Federal programs in the outlying areas.
    ``(c) Duties.--The coordinator for the outlying areas shall--
            ``(1) serve as the principal advisor to the Department on 
        Federal matters affecting the outlying areas;
            ``(2) evaluate, on a periodic basis, the needs of education 
        programs in the outlying areas;
            ``(3) assist with the coordination of programs that serve 
        the outlying areas; and
            ``(4) provide guidance to programs within the Department 
        that serve the outlying areas.

    ``(d) Outlying Areas Defined.--As used in this section, the term 
`outlying areas' includes Guam, the Virgin Islands, American

[[Page 115 STAT. 2089]]

Samoa, and the Commonwealth of the Northern Marianas Islands, but does 
not include the freely associated states of the Republic of the Marshall 
Islands, the Federated States of Micronesia, and the Republic of 
Palau.''.
    (b) Renaming of Office.--The Department of Education Organization 
Act (20 U.S.C. 3401 et seq.) <<NOTE: 20 USC 3420, 3423d, 3473.>>  is 
amended by striking ``Office of Bilingual Education and Minority 
Languages Affairs'' and ``Office of Bilingual Education'' each place 
either such term appears and inserting ``Office of English Language 
Acquisition, Language Enhancement, and Academic Achievement for Limited 
English Proficient Students''.

    (c) Clerical Amendments.--The Department of Education Organization 
Act (20 U.S.C. 3401 et seq.) is amended as follows:
            (1) Table of contents.--The table of contents in section 1 
        (20 U.S.C. 3401 note) is amended--
                    (A) by amending the item relating to section 209 to 
                read as follows:

``Sec. 209. Office of English Language Acquisition, Language 
           Enhancement, and Academic Achievement for Limited English 
           Proficient Students.'';

                    (B) by amending the item relating to section 216 to 
                read as follows:

``Sec. 216. Office of English Language Acquisition, Language 
           Enhancement, and Academic Achievement for Limited English 
           Proficient Students.''; and

                    (C) by inserting after the item relating to section 
                217 the following new items:

``Sec. 218. Office of Educational Technology.
``Sec. 219. Liaison for Proprietary Institutions of Higher Education.
``Sec. 220. Coordinator for the Outlying Areas.''.

            (2) Section headings.--
                    (A) Section 209.--The section heading for section 
                209 of the Department of Education Organization Act (20 
                U.S.C. 3420) is amended to read as follows:

  ``office of english language acquisition, language enhancement, and 
     academic achievement for limited english proficient students''.

                    (B) Section 216.--The section heading for section 
                216 of the Department of Education Organization Act (20 
                U.S.C. 3423d) is amended to read as follows:

``SEC. 216. OFFICE OF ENGLISH LANGUAGE ACQUISITION, LANGUAGE 
            ENHANCEMENT, AND ACADEMIC ACHIEVEMENT FOR LIMITED ENGLISH 
            PROFICIENT STUDENTS.''.

    (d) Conforming amendments.--Sections 209 and 216 of the Department 
of Education Organization Act (20 U.S.C. 3420, 3423d) are amended by 
striking ``Director of Bilingual Education and Minority Languages 
Affairs'' each place such term appears and inserting ``Director of 
English Language Acquisition, Language Enhancement, and Academic 
Achievement for Limited English Proficient Students''.
    (e) Technical Corrections.--
            (2) Section 202.--Paragraph (3) of section 202(b) (20 U.S.C. 
        3412(b)(3)), relating to the Assistant Secretary for Educational 
        Research and Improvement (as added by section 913(2) of the 
        Goals 2000: Educate America Act (108 Stat. 223)), is 
        redesignated as paragraph (4).

[[Page 115 STAT. 2090]]

            (3) Section 218.--Section 216 (the second place it appears) 
        (20 U.S.C. 3425), relating to the Office of Educational 
        Technology (as added by section 233(a) of the Goals 2000: 
        Educate America Act (108 Stat. 154), is redesignated as section 
        218.

SEC. 1073. EDUCATION FLEXIBILITY PARTNERSHIP ACT OF 1999.

    Section 4(b) of the Education Flexibility Partnership Act of 1999 
(20 U.S.C. 5891b(b)) is amended to read as follows:
    ``(b) Included Programs.--The statutory or regulatory requirements 
referred to in subsection (a)(1)(A) are any such requirements for 
programs that are authorized under the following provisions and under 
which the Secretary provides funds to State educational agencies on the 
basis of a formula:
            ``(1) The following provisions of the Elementary and 
        Secondary Education Act of 1965:
                    ``(A) Part A (other than sections 1111 and 1116), 
                subpart 3 of part B, and parts C, D, and F of title I.
                    ``(B) Subparts 2 and 3 of part A of title II.
                    ``(C) Subpart 1 of part D of title II.
                    ``(D) Subpart 4 of part B of title III, if the 
                funding trigger in section 3001 of such Act is not 
                reached.
                    ``(E) Subpart 1 of part A of title IV.
                    ``(F) Part A of title V.
            ``(2) The Carl D. Perkins Vocational and Technical Education 
        Act of 1998 (20 U.S.C. 2301 et seq.).''.

SEC. 1074. EDUCATIONAL RESEARCH, DEVELOPMENT, DISSEMINATION, AND 
            IMPROVEMENT ACT OF 1994.

    The Educational Research, Development, Dissemination, and 
Improvement Act of 1994 (20 U.S.C. 6001 et seq.) is amended by adding 
after part I the following new part:

            ``PART J--CERTAIN MULTIYEAR GRANTS AND CONTRACTS

``SEC. 995. <<NOTE: 20 USC 6052.>>  CONTINUATION OF AWARDS.

    ``(a) In General.--Notwithstanding any other provision of law, from 
funds appropriated under subsection (b), the Secretary--
            ``(1) shall continue to fund any multiyear grant or contract 
        awarded under section 3141 and parts A and C of title XIII of 
        the Elementary and Secondary Education Act of 1965 (as such 
        provisions were in effect on the day preceding the date of 
        enactment of the No Child Left Behind Act of 2001), for the 
        duration of that multiyear award in accordance with its terms; 
        and
            ``(2) may extend, on a year-to-year basis, any multiyear 
        grant or contract awarded under an authority described in 
        paragraph (1) that expires after the enactment of the No Child 
        Left Behind Act of 2001, but before the enactment of successor 
        authority to this Act.

    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year such sums as may be necessary to carry 
out subsection (a).''.

SEC. 1075. NATIONAL CHILD PROTECTION ACT OF 1993.

    Section 5(9) of the National Child Protection Act of 1993 (42 U.S.C. 
5119c(9)) is amended--

[[Page 115 STAT. 2091]]

            (1) in subparagraph (A)(i), by inserting ``(including an 
        individual who is employed by a school in any capacity, 
        including as a child care provider, a teacher, or another member 
        of school personnel)'' before the semicolon at the end; and
            (2) in subparagraph (B)(i), by inserting ``(including an 
        individual who seeks to be employed by a school in any capacity, 
        including as a child care provider, a teacher, or another member 
        of school personnel)'' before the semicolon at the end.

SEC. 1076. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Legislative Branch Appropriations Act, 1997.--Section 5(d)(1) of 
the Legislative Branch Appropriations Act, 1997 (2 U.S.C. 117b-2(d)(1)) 
is amended--
            (1) by striking ``14101'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.

    (b) Legislative Branch Appropriations Act, 1987.--Section 
104(3)(B)(ii) of the Legislative Branch Appropriations Act, 1987 (as 
incorporated by reference in section 101(j) of Public Law 99-500 and 
Public Law 99-591) (2 U.S.C. 117e(3)(B)(ii)) is amended by striking 
``14101'' and inserting ``9101''.
    (c) National Agricultural Research, Extension, and Teaching Policy 
Act of 1977.--Section 1417(j)(1)(B) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3152(j)(1)(B)) is amended--
            (1) by striking ``14101(25)'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 8801(25))''.

    (d) Refugee Education Assistance Act of 1980.--Section 101(1) of the 
Refugee Education Assistance Act of 1980 (8 U.S.C. 1522 note) is amended 
by striking ``14101'' and inserting ``9101''.
    (e) Title 10, United States Code.--Section 2194(e)(2) of title 10, 
United States Code, is amended--
            (1) by striking ``14101'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.

    (f) Toxic Substances Control Act.--
            (1) Asbestos.--Paragraphs (7), (9) and (12) of section 202 
        of the Toxic Substances Control Act (15 U.S.C. 2642) are amended 
        by striking ``14101'' and inserting ``9101''.
            (2) Radon.--Section 302(1)(A) of the Toxic Substances 
        Control Act (15 U.S.C. 2662(1)(A)) is amended by striking 
        ``14101'' and inserting ``9101''.

    (g) Higher Education Act of 1965.--Paragraphs (4), (5), (6), (10), 
and (14) of section 103 of the Higher Education Act of 1965 (20 U.S.C. 
1003) are amended by striking ``14101'' and inserting ``9101''.
    (h) General Education Provisions Act.--Section 425(6) of the General 
Education Provisions Act (20 U.S.C. 1226c(6)) is amended by striking 
``14701'' and inserting ``9601''.
    (i) Individuals with Disabilities Education Act.--Section 613(f) of 
the Individuals with Disabilities Education Act (20 U.S.C. 1413(f)) is 
amended by striking paragraph (3).
    (j) Education Amendments of 1972.--Section 908(2)(B) of the 
Education Amendments of 1972 (20 U.S.C. 1687(2)(B)) is amended by 
striking ``14101'' and inserting ``9101''.
    (k) Carl D. Perkins Vocational and Technical Education Act of 
1998.--Section 3 of the Carl D. Perkins Vocational and Technical 
Education Act of 1998 (20 U.S.C. 2302) is amended--
            (1) in paragraph (5)--

[[Page 115 STAT. 2092]]

                    (A) by striking ``10306'' and inserting ``5206''; 
                and
                    (B) by striking ``(20 U.S.C. 8066)'';
            (2) in paragraph (8), by striking ``14101'' and inserting 
        ``9101''; and
            (3) in paragraphs (16) and (21)--
                    (A) by striking ``14101'' and inserting ``9101''; 
                and
                    (B) by striking ``(20 U.S.C. 8801)''.

    (l) Education for Economic Security Act.--
            (1) Economic security.--Section 3(3) of the Education for 
        Economic Security Act (20 U.S.C. 3902) is amended--
                    (A) in paragraph (3), by striking ``198(a)(7)'' and 
                inserting ``9101'';
                    (B) in paragraph (7), by striking ``198(a)(10)'' and 
                inserting ``9101''; and
                    (C) in paragraph (12), by striking ``198(a)(17)'' 
                and inserting ``9101''.
            (2) Asbestos.--Section 511 of the Education for Economic 
        Security Act (20 U.S.C. 4020) is amended--
                    (A) in paragraph (4)(A), by striking ``198(a)(10)'' 
                and inserting ``9101''; and
                    (B) in paragraph (5)(A), by striking ``198(a)(7)'' 
                and inserting ``9101''.

    (m) James Madison Memorial Fellowship Act.--Section 815(4) of the 
James Madison Memorial Fellowship Act (20 U.S.C. 4514(4)) is amended by 
striking ``14101'' and inserting ``9101''.
    (n) National Environmental Education Act.--Section 3(5) of the 
National Environmental Education Act (20 U.S.C. 5502(5)) is amended--
            (1) by striking ``14101'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 3381)''.

    (o) Education Flexibility Partnership Act of 1999.--Section 3(1) of 
the Education Flexibility Partnership Act of 1999 (20 U.S.C. 5891a(1)) 
is amended by striking ``14101'' and inserting ``9101''.
    (p) District of Columbia College Access Act of 1999.--Section 
3(c)(5) of the District of Columbia College Access Act of 1999 (Public 
Law 106-98; 113 Stat. 1323) is amended--
            (1) by striking ``14101'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.

    (q) School-to-Work Opportunities Act of 1994.--Paragraph (5) of 
section 502(b) of the School-to-Work Opportunities Act of 1994 (20 
U.S.C. 6212(b)(5)) is amended to read as follows:
            ``(5) parts K through N of the Educational Research, 
        Development, Dissemination, and Improvement Act of 1994; and''.

    (r) National Education Statistics Act of 1994.--Paragraphs (4) and 
(6) of section 402(c) of the National Education Statistics Act of 1994 
(20 U.S.C. 9001(c)) are amended by striking ``14101'' and inserting 
``9101''.
    (s) Adult Education and Family Literacy Act.--Section 203(13) of the 
Adult Education and Family Literacy Act (20 U.S.C. 9202(13)) is 
amended--
            (1) by striking ``14101'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.

    (t) <<NOTE: 26 USC 1397E.>>  Internal Revenue Code of 1986.--Section 
1397E(d)(4)(B) of the Internal Revenue Code of 1986 is amended by 
striking ``14101'' and inserting ``9101''.

    (u) Rehabilitation Act of 1973.--

[[Page 115 STAT. 2093]]

            (1) Research.--Section 202(b)(4)(A)(i) of the Rehabilitation 
        Act of 1973 (29 U.S.C. 762(b)(4)(A)(i)) is amended by striking 
        ``14101'' and inserting ``9101''.
            (2) Nondiscrimination.--Section 504(b)(2)(B) of the 
        Rehabilitation Act of 1973 (29 U.S.C. 794(b)(2)(B)) is amended 
        by striking ``14101'' and inserting ``9101''.

    (v) Family and Medical Leave Act of 1993.--Section 108(a)(1)(A) of 
the Family and Medical Leave Act of 1993 (29 U.S.C. 2618(a)(1)(A)) is 
amended--
            (1) by striking ``14101'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 2891(12))''.

    (w) Workforce Investment Act of 1998.--Paragraphs (23) and (40) of 
section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801) are 
amended--
            (1) by striking ``14101'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.

    (x) Safe Drinking Water Act.--Paragraphs (3)(A) and (6) of section 
1461 of the Safe Drinking Water Act (42 U.S.C. 300j-21) are amended by 
striking ``14101'' and inserting ``9101''.
    (y) Civil Rights Act of 1964.--Section 606(2)(B) of the Civil Rights 
Act of 1964 (42 U.S.C. 2000d-4a(2)(B)) is amended by striking ``14101'' 
and inserting ``9101''.
    (z) Age Discrimination Act of 1975.--Section 309(4)(B)(ii) of the 
Age Discrimination Act of 1975 (42 U.S.C. 6107(4)(B)(ii)) is amended by 
striking ``14101'' and inserting ``9101''.
    (aa) Hazardous and Solid Waste Amendments of 1989.--Section 
221(f)(3)(B)(i) of the Hazardous and Solid Waste Amendments of 1984 (42 
U.S.C. 6921 note) is amended by striking ``198(a)(7)'' and inserting 
``9101''.
    (bb) Albert Einstein Distinguished Educator Fellowship Act of 
1994.--Paragraphs (1), (2), and (3) of section 514 of the Albert 
Einstein Distinguished Educator Fellowship Act of 1994 (42 U.S.C. 7382b) 
are amended by striking ``14101'' and inserting ``9101''.
    (cc) Earthquake Hazards.--Section 2(c)(1)(A) of the Act entitled 
``An Act to authorize appropriations for carrying out the Earthquake 
Hazards Reduction Act of 1977 for fiscal years 1998 and 1999, and for 
other purposes'', approved October 1, 1997 (42 U.S.C. 7704 note) is 
amended--
            (1) by striking ``14101'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.

    (dd) State Dependent Care Development Grants Act.--Paragraphs (6) 
and (11) of section 670G of the State Dependent Care Development Grants 
Act (42 U.S.C. 9877) are amended by striking ``14101'' and inserting 
``9101''.
    (ee) Community Services Block Grant Act.--Section 682(b)(4) of the 
Community Services Block Grant Act (42 U.S.C. 9923(b)(4)) is amended--
            (1) by striking ``14101'' and inserting ``9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.

    (ff) National and Community Service Act of 1990.--Paragraphs (8), 
(14), (22), and (28) of section 101 of the National and Community 
Service Act of 1990 (42 U.S.C. 12511) are amended by striking ``14101'' 
and inserting ``9101''.
    (gg) Telecommunications Act of 1996.--Section 706(c)(2) of the 
Telecommunications Act of 1996 (47 U.S.C. 157 note) is amended--

[[Page 115 STAT. 2094]]

            (1) by striking ``paragraphs (14) and (25), respectively, of 
        section 14101'' and inserting ``section 9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.

    (hh) Communications Act of 1934.--Section 254(h)(7)(A) of the 
Communications Act of 1934 (47 U.S.C. 254(h)(7)(A)) is amended--
            (1) by striking ``paragraphs (14) and (25), respectively, of 
        section 14101'' and inserting ``section 9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.

    (ii) Transportation Equity Act for the 21st Century.--Section 4024 
of the Transportation Equity Act for the 21st Century (49 U.S.C. 31136 
note) is amended by striking ``14101'' and inserting ``9101''.

    Approved January 8, 2002.

LEGISLATIVE HISTORY--H.R. 1 (S. 1):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 107-63, Pt. 1 (Comm. on Education and the Workforce) 
and 107-334 (Comm. of Conference).
SENATE REPORTS: No. 107-7 accompanying S. 1 (Comm. on Health, Education, 
Labor, and Pensions).
CONGRESSIONAL RECORD, Vol. 147 (2001):
            May 17, 22, 23, considered and passed House.
            June 14, considered and passed Senate, amended, in lieu of 
                S. 1.
            Dec. 13, House agreed to conference report.
            Dec. 17, 18, Senate considered and agreed to conference 
                report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):
            Jan. 8, Presidential remarks.

                                  <all>
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